Baker Hughes Company provides a portfolio of technologies and services to energy and industrial value chain. Its Oilfield Services & Equipment segment designs and manufactures exploration, appraisal, development, production, rejuvenation, and decommissioning products and related services for onshore and offshore oilfield operations. This segment also provides drilling services, drill bits, and drilling and completions fluids; completions, intervention, measurements, pressure pumping, and wireline services; artificial lift systems, and oilfield and industrial chemicals; subsea projects and services, flexible pipe systems, and surface pressure control systems; and integrated well services and solutions. It serves oil and natural gas companies; the United States and international independent oil and natural gas companies; national or state-owned oil companies; engineering, procurement, and construction contractors; geothermal companies; and other oilfield service companies. The company's Industrial & Energy Technology segment offers gas technology equipment, such as drivers, driven equipment, and turnkey solutions for the mechanical and electric-drive, compression, and power-generation applications; aftermarket support and uptime gas technology services; non-destructive testing technologies, software, and services; pre-commissioning and maintenance services; flow control and safety solutions; mechanical and electromechanical gear transmission systems; Cordant, a software solution to optimize assets, processes, and energy use; Bently Nevada, a sensing and protection hardware for rack-based vibrating monitoring equipment and sensors; and climate technology solutions. It serves industrial, upstream, midstream, downstream, onshore, offshore, and small-to-large scale customers. The company was formerly known as Baker Hughes, a GE company and changed its name to Baker Hughes Company in October 2019. The company was incorporated in 2016 and is based in Houston, Texas.
Country
Sector
Themes
Also in
Price· split & dividend adjusted
No price history for this asset yet.
News & notes movingBKR
Artificial Intelligence▲impact 4
Baker Hughes Could Be Key AI Boom Winner
Baker Hughes Company is emerging as a key winner from the AI boom, with its Industrial & Energy Technology segment orders doubling year-over-year to a record $7.1 billion in the second quarter. The company raised its full-year 2026 IET orders guidance to $17.5 billion to $19.5 billion, and the segment has surpassed its 20% EBITDA margin target. Baker Hughes is expanding gas turbine and generator capacity, which could support nearly $5 billion in annual Power Systems revenue by 2029. It recently secured an order for 76 NovaLT16 gas turbines from Dynamis Power Solutions, capable of generating 1.3 gigawatts of mobile power. The acquisition of Chart Industries, completed in July, is expected to add $325 million in annualized cost synergies within three years. Morgan Stanley has named Baker Hughes its top pick in the energy services sector with a $70 price target. However, risks include potential declines in oil and gas spending and delays in data-center projects.
Baker Hughes reported second-quarter 2026 adjusted earnings of 64 cents per share, beating the Zacks Consensus Estimate of 51 cents by 25.5%, while revenues of $6.74 billion surpassed the consensus mark of $6.49 billion by 3.9% but declined 2% year over year. Orders across all business segments totaled $10.5 billion, up 49% from $7.03 billion a year ago, driven by record order intake from the Industrial & Energy Technology segment, and remaining performance obligations reached $40.06 billion, up 18% year over year. The company completed its acquisition of Chart Industries and expects Chart to become a third reporting segment beginning in the third quarter of 2026, with run-rate cost synergies projected at $95 million in year one, $230 million in year two, and $325 million in year three. For the third quarter of 2026, Baker Hughes expects revenues of $6.57 billion to $7.17 billion and adjusted EBITDA of $1.12 billion to $1.30 billion, while full-year 2026 guidance calls for revenues of $26.65 billion to $28.05 billion and adjusted EBITDA of $4.6 billion to $5.1 billion. The company raised its IET order guidance to $17.5 billion to $19.5 billion and increased its Horizon 2 IET order target to more than $45 billion for 2026 through 2028.
Crude oil prices extend gains as US prepares new sanctions on Iran
West Texas Intermediate and Brent crude prices rose for a sixth straight session after the United States prepared to announce a new round of sanctions on Iran. West Texas Intermediate stood at 87.06 dollars a barrel, up 0.23 dollars, while Brent stood at 94.39 dollars a barrel, up 0.61 dollars. Treasury Secretary Scott Bessent said the United States would announce details of economic sanctions against Iran on Monday, August 24, 2026, with President Donald Trump calling the plan Economic D-Day. The measures could extend to countries with trade ties to Iran, including China, the largest buyer of Iranian oil. Kpler said around 41 million barrels of Iranian crude remained stuck near the Strait of Hormuz, making deliveries to China likely to fall significantly. Meanwhile, Baker Hughes reported that the number of US oil rigs fell by 3 to 452, while natural gas rigs declined by 1 to 127.
Baker Hughes Secures Kuwait and Indonesia Technology Deals
Baker Hughes has secured a multi-year technology collaboration with Kuwait Oil Company and a substantial subsea systems contract for Indonesia's Kutei Northern Hub, including 17 deepwater trees, digital monitoring solutions, and a new research center in Kuwait's Ahmadi Innovation Valley. These awards deepen Baker Hughes' role in AI-enabled production optimization and large offshore gas developments, underscoring its push toward higher-tech, service-intensive energy infrastructure work. The Indonesia contract ties directly into the company's push toward digital, AI-enabled, and life cycle service contracts that feed backlog and recurring revenue. Baker Hughes' narrative projects $30.8 billion revenue and $3.3 billion earnings by 2029, requiring 3.3% yearly revenue growth and about a $0.2 billion earnings increase from $3.1 billion today. Some pessimistic analysts were assuming about US$34.7 billion of revenue and US$3.5 billion of earnings by 2029, showing how far opinions differ.
Kodiak Gas Posts Record Q2 Earnings, Raises Guidance
Kodiak Gas Services reported record second-quarter 2026 results, with revenue up 21% year-over-year to $391 million and adjusted EBITDA up 22% to a company record of $217 million. Adjusted net income was $54 million, or $0.55 per diluted share. Management raised full-year guidance for adjusted EBITDA to $830 million to $860 million and discretionary cash flow to $570 million to $600 million. The company also detailed plans to expand its power infrastructure business, having signed a multiyear turbine supply deal with Baker Hughes for 1 gigawatt of capacity by 2030, with an option to grow to 1.8 gigawatts, and secured about 1.8 gigawatts of power generation overall toward its 2-gigawatt target. Kodiak ended the quarter with 4.4 million revenue-generating horsepower and fleet utilization of 98.2%, while net debt stood at about $2.6 billion.
Kodiak Gas Services raises 2026 guidance on record Q2 results
Kodiak Gas Services raised its full-year 2026 adjusted EBITDA, compression infrastructure gross margin, and discretionary cash flow guidance after reporting record second-quarter results. Adjusted EBITDA rose 22% year-over-year to $217 million, while revenue increased 21% to $391 million, driven by the DPS acquisition and compression infrastructure growth. The company now expects adjusted EBITDA of $830 million to $860 million, compression infrastructure adjusted gross margin of 69% to 70.5%, and discretionary cash flow of $570 million to $600 million. Kodiak also announced a multiyear gas turbine supply agreement with Baker Hughes for 1 gigawatt of turbine power by 2030, with an option to increase to 1.8 gigawatts, and executed a limited notice to proceed for a West Texas data center project leased to a hyperscaler.
Baker Hughes Posts Record Orders but Warns of Modest Decline in 2026 Oil and Gas Spending
Baker Hughes Company beat second-quarter profit estimates and posted record orders, yet warned that global spending by oil and gas producers will decline modestly this year. Earnings per share came in at 64 cents, well above the 50 cents analysts expected, according to LSEG data. Orders rose 49% from a year earlier to a record $10.5 billion, including a record $7.1 billion for its industrial and energy technology segment, which serves LNG, power generation, and data centers. Backlog rose 19% to an all-time high, and remaining contracted work hit $40.1 billion. However, the company said annual global upstream spending will decline modestly, with weaker spending in Europe and the Middle East offsetting growth in Latin America, offshore Africa, and North America, as ongoing U.S.-Iran conflict makes producers more cautious. CEO Lorenzo Simonelli has been framing the firm's strategy around a demand decade for energy, pushing Baker Hughes further into power grids, LNG, and data centers beyond traditional oilfield services.
Baker Hughes wins contract for Kutei Northern Hub subsea systems
Baker Hughes has secured a contract from Searah North Ganal to supply subsea production systems and digital solutions for the Kutei Northern Hub development in Indonesian waters. The contract covers 17 deepwater horizontal tree systems, associated manifolds, connections, control, and distribution systems, as well as Cordant asset protection and condition monitoring systems. The equipment will support the integrated development of the Geng North and Gehem fields, aiming to boost natural gas production and contribute to Indonesia's LNG capacity and domestic energy supply. Baker Hughes will manufacture the subsea trees at its Batam facility and provide additional support from its Balikpapan facility, both in Indonesia. This award follows a 2025 order for flash gas compressors for a new FPSO at the same hub.
Baker Hughes Secures LNG and Gas Turbine Orders from Venture Global and Dynamis
Baker Hughes has secured a major order from Venture Global LNG for a comprehensive liquefaction solution to support an LNG expansion project in Louisiana, and a separate order from Dynamis Power Solutions for 76 NovaLT™16 gas turbines providing 1.3 GW of modular power solutions for data centers and the oil and gas sector. These contracts highlight Baker Hughes' role in large-scale LNG infrastructure and the growing power demand from digital and industrial clients. The Venture Global LNG contract underlines the company's position in major LNG projects, while the Dynamis award shows its gas turbine technology being applied to fast-growing data center and industrial power needs. Together, the wins support a more diversified order book across LNG and digital infrastructure.
SpaceX earnings call remarks jolt telecom and energy stocks
SpaceX's latest earnings call triggered sharp moves in telecom and energy stocks after executives outlined plans to build a terrestrial wireless network and massive power infrastructure. COO Gwynne Shotwell said Starlink would target customers of AT&T, Verizon, and T-Mobile, which together generate roughly $600 billion a year, causing shares of those carriers to drop. Deutsche Telekom CEO Timotheus Hottges acknowledged the market reaction, calling it overblown but saying the company takes SpaceX's ambitions seriously. Separately, Elon Musk's comments about building 20 gigawatts of power lifted natural gas equipment suppliers GE Vernova and Baker Hughes, as well as power providers Constellation Energy, NextEra Energy, Vistra, and EQT Corporation. The call also boosted Nvidia after Musk said SpaceX would build exclusively on its Vera Rubin architecture, and highlighted Echostar's 261.8 million share stake in SpaceX as a direct beneficiary.
SpaceX's 20-gigawatt power target is a 'clear positive' for equipment suppliers
SpaceX is targeting as much as 20 gigawatts of power, cooling, and electrical infrastructure online by the end of next year, a demand level that Melius Research calls a 'clear positive' for industrial equipment suppliers. Managing director James West highlighted that this massive requirement, nearly half of the 53 gigawatts of new US generation capacity added in 2025, will benefit companies already riding the AI infrastructure boom. Among the beneficiaries are natural gas power equipment makers GE Vernova and Baker Hughes, as well as power providers Constellation Energy, NextEra Energy, Vistra, and EQT Corporation. GE Vernova reported a 36% backlog increase to $176 billion in its second quarter, with power segment orders up 134% year on year, while Baker Hughes saw its industrial energy and technology orders double to over $7 billion. Elon Musk stated that even if forecasts fall short, SpaceX should still have around 15 gigawatts of capacity at the power plant level by the end of 2027.
Five Dividend Stocks Share an August 7 Ex-Date, Requiring Purchase by August 6
Five dividend-paying stocks—Alliance Resource Partners, Capitol Federal Financial, Baker Hughes, Citizens Community Bancorp, and ArcBest—all have an ex-dividend date of August 7, meaning investors must buy shares by the close of trading on August 6 to receive the upcoming quarterly payout. Alliance Resource Partners offers the highest yield at 9.2 percent with a 60-cent quarterly distribution, though its annualized payout of $2.40 exceeds trailing earnings per share of $2.06 and follows a distribution cut earlier in 2025. Capitol Federal Financial and Baker Hughes show the strongest coverage, with Capitol Federal’s 34-cent annualized payout well below its 66-cent full-year EPS and Baker Hughes’ 92-cent annualized dividend dwarfed by trailing EPS of $3.15 and second-quarter 2026 free cash flow of $1.109 billion. Citizens Community Bancorp’s payout is covered by full-year EPS of $1.31 but faces pressure after a weak second quarter, while ArcBest’s 48-cent annualized dividend is covered by trailing EPS of 73 cents amid a depressed freight cycle. The article cautions that buying solely for the dividend often results in a lower cost basis rather than extra income, and coverage quality matters more than yield.
Baker Hughes Completes All-Cash Acquisition of Chart Industries
Baker Hughes completed its all-cash acquisition of Chart Industries in July 2026, creating a third reporting segment and expanding beyond traditional oilfield markets. The deal adds thermal management, air and gas handling, compression, carbon-capture and lifecycle-service capabilities, strengthening Baker Hughes' position in gas infrastructure, industrial markets, data centers, geothermal and carbon capture. Management expects annual run-rate cost synergies of $95 million in year one, $230 million in year two and $325 million in year three, driven by nearly 300 initiatives across procurement, corporate costs, systems, operations and footprint optimization. The transaction increased balance-sheet risk, with long-term debt reaching $15.48 billion at June 30, 2026, compared with $5.40 billion at the end of 2025, and the company is targeting net debt to adjusted EBITDA of 1.0 to 1.5 times within 24 months of closing. Integration is being managed through 18 workstreams, with the first 90 days focused on customer continuity, employee retention, operating performance and early synergy actions, while the next phase emphasizes operating-model alignment, commercial integration and pilot customer solutions.
Baker Hughes Q2 Earnings Beat Estimates, Analysts Focus on IET Orders and Power Systems Expansion
Baker Hughes reported second-quarter results that surpassed Wall Street expectations, with revenue of $6.74 billion beating analyst estimates of $6.50 billion and adjusted EPS of $0.64 exceeding the $0.49 consensus. During the earnings call, analysts focused on the record orders in the Industrial & Energy Technology segment, the revenue ramp and capital allocation for power systems capacity expansion, and commercial synergies from the Chart acquisition. CEO Lorenzo Simonelli noted that paybacks for incremental capacity investments are expected to be below two years, with growth driven by gas turbines and a phased spend through 2028, while CFO Ahmed Moghal attributed OFSE outperformance to strong international activity and product mix. Management expressed confidence in margin and cash flow outlook, citing backlog quality and favorable pricing.
Dynamis Power Solutions awards Baker Hughes major order for 76 gas turbines totaling 1.3GW
Dynamis Power Solutions has awarded Baker Hughes a major order for 76 NovaLT 16 gas turbines paired with gearboxes and generators, totaling approximately 1.3 gigawatts for hypermobile power generation across data center projects and oil and gas applications. The turbines were booked in the second quarter, and the gearboxes and generators in the third. Dynamis will package the equipment into its proprietary DT17 hypermobile power units, which leverage Baker Hughes' multi-fuel turbine technology and BRUSH Power Generation components to deliver industry-leading power density in a compact footprint. The companies say the modular design provides flexibility and scalability while reducing construction timelines and civil costs. Baker Hughes Chairman and CEO Lorenzo Simonelli noted that power demand in North America is accelerating due to data center expansion, manufacturing growth, and energy infrastructure needs.
Baker Hughes raises Horizon 2 IET orders target above $45 billion and forecasts $27.35 billion 2026 revenue
Baker Hughes has raised its expectation for Horizon 2 Industrial and Energy Technology orders to exceed $45 billion, up from a prior forecast of more than $40 billion, while guiding for full-year 2026 revenue of $27.35 billion and adjusted EBITDA of $4.85 billion. Chairman and CEO Lorenzo Simonelli said the company delivered record IET orders of $7.1 billion in the second quarter, a 2.2x book-to-bill ratio, and an all-time high RPO of $37.1 billion. The company also completed its acquisition of Chart Industries, which will operate as a third reporting segment, and is expanding gas turbine and generator capacity to support an estimated $5 billion in annual Power Systems revenue opportunity by 2029. For the third quarter, Baker Hughes guided to revenue of $6.87 billion and adjusted EBITDA of $1.205 billion, while cautioning that any material change in geopolitical conditions could affect outcomes.
ASML slides on China chip tool report, Forte Bio surges on Argenx buyout
ASML dropped 8% after The Information reported China began mass production of domestically made deep ultraviolet chipmaking tools. Memory chip stocks were mixed as CXMT soared more than 466% in its Shanghai debut, while SK Hynix fell over 8%, SanDisk slid 11%, and Micron Technology lost 5%. SAP jumped more than 7% after announcing the second part of a 10 billion-euro stock buyback. Forte Biosciences rallied about 40% on a $2.2 billion cash acquisition by Argenx at $77 per share, a 40% premium to Friday's close. Brown-Forman climbed almost 4% after rejecting a $15 billion unsolicited takeover offer from Sazerac at $32 per share. Baker Hughes gained 6% on better-than-expected second-quarter earnings and revenue, while Amkor Technology fell 7% ahead of its quarterly report. D-Wave Quantum added 5% on a partnership with AT&T to use annealing quantum computers for AI, and MapLight Therapeutics plunged 68% after a Phase 2 schizophrenia trial missed its primary endpoint.
Micron, energy, and biotech stocks move premarket on chip debut, oil dip, and Forte buyout
Memory stocks rose broadly after Chinese chipmaker CXMT debuted on the Shanghai public market with its stock surging more than 466%, lifting U.S.-listed peers including Micron Technology which advanced 2.5%. Energy stocks followed oil prices lower after the U.S. and Iran agreed to pause attacks, with Chevron down 2.7%, ExxonMobil down 3.2%, and APA, Devon Energy, and Diamondback Energy each falling around 4%. Forte Biosciences rallied more than 39% on news it will be acquired by Netherlands-headquartered Argenx for $2.2 billion in cash, or $77 per share, a 40% premium to Friday's close. Baker Hughes gained nearly 2.2% after reporting better-than-expected second-quarter earnings and revenue, with the CEO citing favorable fundamentals and reaffirming full-year guidance. D-Wave Quantum rose more than 7% after announcing a partnership with AT&T to use its annealing quantum computers for AI, while IonQ gained nearly 4.5% and Rigetti Computing added 3.8%.
Baker Hughes Secures Major LNG Technology Order for Venture Global’s CP2 LNG Expansion
Baker Hughes has secured a major order from Venture Global LNG to supply a comprehensive liquefaction solution for the CP2 LNG expansion project in Louisiana. The award, booked in the second quarter, includes six liquefaction blocks for a total of 12 liquefaction modules, with each block based on two single mixed-refrigerant modules and related compression trains featuring Baker Hughes' advanced centrifugal compressor technology, as well as cold boxes, air coolers and integrated control systems. The order extends the companies' long-standing collaboration under an established master equipment supply agreement, reinforcing Baker Hughes' role as a strategic LNG technology provider across more than 100 million tonnes per annum of Venture Global's existing and planned production capacity, including the Calcasieu Pass and Plaquemines LNG facilities.
Baker Hughes declares quarterly cash dividend of 23 cents per share
Baker Hughes announced that its board of directors declared a quarterly cash dividend of $0.23 per share of Class A common stock. The dividend is payable on August 17, 2026, to shareholders of record as of August 7, 2026. The company expects to fund the dividend from cash generated from operations.
US Oil Drillers Take a Break as Oil Prices Hover Near $100
The total number of active drilling rigs for oil and gas in the United States fell this week, according to new data from Baker Hughes, bringing the total rig count to 587, up 45 from the same time last year. The number of active oil rigs fell by 2 to 450, which is 35 above year-ago levels, while gas rigs rose by 1 to 127, five more than last year, and miscellaneous rigs held at 10. Weekly US crude oil production averaged 13.798 million barrels per day in the week ending July 17, down slightly from 13.861 million barrels per day the prior week but up 525,000 barrels per day from a year ago, according to the latest EIA data. Primary Vision's Frac Spread Count, an estimate of crews completing wells, fell by 4 to 196 crews after losing 5 the week before. In the Permian Basin, the rig count fell by 1 to 258, two rigs below year-ago levels, while the Eagle Ford held steady at 47, eight more than the same time last year. Oil prices were down on Friday, with Brent trading at $95.96 per barrel, a drop of 4.70%, and WTI at $88.30 per barrel, down 4.22%, though Brent remained more than $8 per barrel higher than a week ago.
Chevron and Two Energy Stocks Poised to Beat Q2 Earnings Estimates
Chevron, Baker Hughes, and Cactus are expected to report better-than-expected second-quarter earnings, according to Zacks Investment Research. The favorable energy business environment in the June quarter, driven by high commodity prices amid the Iran war, is likely to have boosted results. Baker Hughes has an Earnings ESP of +1.34% and a Zacks Rank of 3, with results due on July 26. Chevron, scheduled to report on July 31, has an Earnings ESP of +1.84% and a Zacks Rank of 3. Cactus, reporting on July 29, has an Earnings ESP of +7.04% and a Zacks Rank of 3.
Baker Hughes Could Be 20% Below Fair Value After Chart Industries Deal
Baker Hughes has closed its acquisition of Chart Industries and appointed Jim Apostolides to lead the new segment, while its shares last closed at $57.25 against a narrative fair value of $71.24, implying a potential undervaluation of about 20%. The stock has pulled back 8.34% over the past 30 days, though longer-term returns remain strong with a one-year total shareholder return of 50.56% and a five-year return of 218.96%. The company's growing backlog in large-scale service contracts and technology-driven orders is supporting revenue visibility, but risks include possible oil and gas spending cuts and margin pressure from tariffs and supply chain disruptions.
Baker Hughes completes acquisition of Chart Industries
Baker Hughes has completed its acquisition of Chart Industries, marking a major milestone in its transformation into a higher-value industrialized energy solutions company. Chart will operate as a third reporting segment, reflecting the scale and strategic importance of its differentiated capabilities in air and gas handling, thermal management, and lifecycle services. Baker Hughes targets $325 million in annualized cost synergies by year three after close, with additional upside from commercial synergies. Jim Apostolides has been appointed senior vice president to lead the Chart segment. Chart reported $4.3 billion in revenue for fiscal year 2025 and serves customers in more than 50 countries.
US Oil and Gas Rig Count Rises to 581, Up 44 Year-Over-Year
The total number of active drilling rigs for oil and gas in the United States rose this week to 581, up 44 from the same time last year, according to Baker Hughes data. The number of active oil rigs held steady at 445, 21 above year-ago levels, while gas rigs also remained unchanged at 126, 18 more than last year. The increase came from the miscellaneous rig count, which added one to reach 10. In the Permian Basin, the rig count fell by five to 256, nine below year-ago levels, while the Eagle Ford added three rigs to reach 47, six more than last year. Primary Vision's Frac Spread Count, an estimate of crews completing wells, rose by five to 205 in the week ending July 2. Weekly US crude oil production averaged 13.860 million barrels per day in the week ending July 3, up from 13.810 million the prior week and 475,000 barrels per day higher than a year ago, according to the EIA. Oil prices were down on Friday, with Brent trading at $75.72 per barrel and WTI at $71.26.
Baker Hughes wins EU approval for Chart Industries deal after LNG divestitures
The European Union granted antitrust approval for Baker Hughes' acquisition of Chart Industries after Baker Hughes agreed to sell Chart's proprietary process technology and its small-scale process technology business to a suitable third-party purchaser approved by the European Commission. The Commission said the concessions addressed concerns about Baker Hughes' ability and incentive to favor Chart's LNG business. The $13.6 billion purchase ranks among the biggest by an oilfield services company and the most consequential since Baker Hughes merged with General Electric's oil and gas business.
Kodiak Gas Services Could Be 20% Below Fair Value Following Baker Hughes Deal
Kodiak Gas Services has agreed a multi-year power generation deal with Baker Hughes targeting up to 1.8 gigawatts for data centers and behind-the-meter projects. The stock last closed at $67.18 against a most-followed fair value estimate of $84.07, implying a potential undervaluation of about 20%. High fleet utilization above 97%, premium-rate contracting of new large-horsepower units, and long-term fee-based contracts support resilient recurring revenue and EBITDA stability. However, the current price-to-earnings ratio of 101.4 times sits well above the US Energy Services industry average of 26.5 times, raising valuation risk questions.
Baker Hughes Signs Multi-Year Power Deal With Kodiak Gas
Baker Hughes has signed a multi-year strategic agreement with Kodiak Gas Services to supply power generation technologies, starting with an equipment award capable of delivering approximately 1 gigawatt of power generation capacity by 2030. The broader framework provides a pathway to expand capacity to 1.8 gigawatts over time, with the initial order including NovaLT 16 gas turbines, Frame 5 gas turbines and BRUSH generators. The partnership targets behind-the-meter projects in key U.S. markets to meet surging electricity demand from artificial intelligence, cloud computing and data centers, and also includes technical training, spare parts support and a long-term service agreement. The agreement reinforces Baker Hughes' strategy of expanding beyond traditional oilfield services into energy infrastructure and power solutions.
Wolfe Research initiates SLB and Baker Hughes at Outperform, Halliburton at Peer Perform
Wolfe Research initiated coverage of three major oilfield services companies, assigning Outperform ratings to SLB and Baker Hughes while rating Halliburton at Peer Perform. Analyst Carlos Escalante said the industry faces a selective capital cycle favoring international exposure. On SLB, Wolfe set a $62 price target, citing margin upside from the ChampionX integration and growth in digital and data center business lines, which doubled from fiscal 2024 to 2025 and is expected to grow 13-15% annually over the next decade. Baker Hughes received a $70 price target, with Wolfe saying its free cash flow trajectory is being mispriced at an oilfield services multiple and its Industrial and Energy Technology business is set to exceed 50% of EBITDA for the first time. The pending $13.6 billion Chart Industries acquisition was flagged as a key catalyst. Halliburton was seen as largely macro dependent, carrying the largest North America exposure of the large-cap oilfield services group.
Baker Hughes shares rise 2.3% as oil prices surge on Strait of Hormuz attacks
Baker Hughes shares rose 2.3% to close at $54.45 after oil prices surged following attacks on commercial ships near the Strait of Hormuz. Multiple tankers were struck by projectiles in the critical shipping lane, pushing the August crude oil contract above $72 a barrel. A simultaneous drone attack on Russia's largest refinery further pressured prices upward. Higher oil prices typically boost revenues and profitability for oil and gas companies, lifting investor sentiment across the sector.
Dwell Officially Obtains Supply Qualification for Mitsubishi Overseas International Project
Dwell has recently officially obtained the supply qualification for a Mitsubishi overseas international project. The company's gas turbine business counts Baker Hughes and Mitsubishi, two major international original equipment manufacturers, as its core customers. Downstream industry demand is currently strong, with incremental orders steadily materializing and business revenue growing steadily. The gas turbine segment will leverage the convertible bond fundraising project to advance capacity expansion, focusing on high-value-added core components such as gas turbine main shafts and high-end precision forgings. In addition, the GH2070P superalloy header tee produced by the company using 350-meganewton multi-directional die forging, as a key core component for the world's first 650-degree Celsius ultra-supercritical unit at the Huaneng Yuhuan Power Plant Phase IV expansion project, has achieved mass production, and the company has been smoothly incorporated into the core supplier system of State Grid.
Baker Hughes lands Angola subsea deal and North America geothermal partnership
Baker Hughes secured a major contract to supply subsea production systems for Angola's Greater PAJ development and entered a new commercial agreement to support large-scale geothermal energy deployment in North America. The subsea award with Azule Energy expands the company's presence in Sub-Saharan Africa, supporting complex deepwater developments and related local supply chains. The geothermal agreement with Mantle Reach Power targets up to 500 megawatts of capacity in North America, giving Baker Hughes a clearer role in supplying technology and services for clean heat and power projects. These moves highlight how the company is balancing traditional energy work with projects linked to the growing clean energy sector.
Stryker praised for cash flow, Baker Hughes and Core Laboratories flagged as risky
StockStory highlights Stryker as a cash-producing stock worth watching, while flagging Baker Hughes and Core Laboratories as facing challenges. Stryker's trailing 12-month free cash flow margin stands at 18.1%, with organic revenue growth averaging 9.2% over the past two years and EPS compounding at 12.2% annually over five years. Baker Hughes, with a free cash flow margin of 8.9%, has seen annual sales growth of 6.8% over five years and a gross margin of 22.1% that trails competitors. Core Laboratories, at a 3.5% free cash flow margin, posted muted 3.4% annual revenue growth over five years and a gross margin of 20.4%.
Crude oil prices fell on Tuesday as global supply risks eased. August WTI crude closed down 1.25 dollars, or 1.77 percent, and August RBOB gasoline closed down 0.0063 dollars, or 0.22 percent. Morgan Stanley reported that 35 oil and gas tankers exited the Persian Gulf through the Strait of Hormuz last Thursday, the first time traffic returned to the typical pre-war range of 30 to 40 tankers. Bloomberg calculations show Persian Gulf crude exports have recovered to at least 75 percent of pre-war levels. Russian crude exports also rose, with the four-week average reaching 4.13 million barrels per day through June 28, the highest since Russia invaded Ukraine in 2022. Iraq warned last Thursday it might quit OPEC if it does not receive a higher output quota. The International Energy Agency on June 17 forecast world oil consumption will decline by 1.1 million barrels per day this year, a larger drop than its previous estimate of 420,000 barrels per day. The Department of Energy raised its US 2026 crude production estimate to 13.72 million barrels per day from a May estimate of 13.65 million barrels per day. Ukrainian drone attacks on Russian oil infrastructure continue, with Russian crude-processing rates averaging 4.32 million barrels per day in the first 10 days of June, the lowest in 20 years. OPEC delegates said on May 14 the cartel aims to continue a series of oil quota increases over the next few months, completing the return of halted production by the end of September. Vortexa reported that crude oil stored on tankers stationary for at least seven days fell 9.4 percent week-over-week to 82.24 million barrels in the week ended June 26. The consensus estimate for Wednesday's weekly EIA report is a decline of 2.25 million barrels in crude inventories and a decline of 861,000 barrels in gasoline supplies. Last Wednesday's EIA report showed US crude oil inventories as of June 19 were 6.5 percent below the seasonal five-year average, gasoline inventories were 5.6 percent below, and distillate inventories were 10.3 percent below. US crude oil production in the week ending June 19 rose 0.1 percent week-over-week to 13.819 million barrels per day. Baker Hughes reported the number of active US oil rigs rose by seven to a one-year high of 440 rigs in the week ended June 26.
NLNG awards Baker Hughes 13-year gas turbine services contract
Nigeria LNG has awarded Baker Hughes a 13-year contract for comprehensive life cycle services on turbomachinery at its Bonny Island liquefaction facility. The agreement extends a partnership of more than 20 years and covers maintenance and support for equipment linked to the new Train 7 LNG project, which will boost Nigeria LNG's production capacity from 22 million tonnes per annum to 30 million tonnes per annum. The scope includes servicing four heavy duty gas turbines and corresponding centrifugal compressors, plus two additional gas turbines for power generation, units previously awarded to Baker Hughes in 2021. Work will be carried out at the Baker Hughes Service Centre in Port Harcourt, using a local engineering team and iCenter digital services powered by the Cordant platform for remote diagnostics and improved reliability.
Baker Hughes Inks 500 MW Geothermal Deal as AI Drives Electricity Demand
Baker Hughes signed an agreement with geothermal developer Mantle Reach Power to deliver up to 500 megawatts of geothermal capacity in North America over the next five years. The deal comes as rising electricity demand from data centers and artificial intelligence increases interest in reliable, around-the-clock power sources such as geothermal energy. Under the phased agreement, Baker Hughes will serve as the integrated subsurface solutions provider, while Mantle Reach Power will lead project development, ownership, and financing. Mantle Reach Power is backed by EnCap Energy Transition Fund III, part of EnCap Investments, which has raised about $47 billion across 25 institutional funds.
Halliburton Outshines Baker Hughes as the Better Value Stock
Halliburton is currently the superior value pick over Baker Hughes in the Oil and Gas - Field Services sector. Halliburton holds a Zacks Rank of #2 (Buy) with a stronger earnings outlook, while Baker Hughes sits at #3 (Hold). Valuation metrics favor Halliburton, which trades at a forward P/E of 14.99 compared to Baker Hughes' 25.76, and a PEG ratio of 1.52 versus 2.12. Halliburton also has a lower price-to-book ratio of 2.71 against Baker Hughes' 2.99. These figures contribute to Halliburton earning a Value grade of B, while Baker Hughes receives a C.
Baker Hughes wins long-term service contract for Nigeria's ANOH gas plant
Baker Hughes has been awarded a long-term service agreement by the ANOH Gas Processing Company to support the operation of the ANOH Gas Processing Plant in Nigeria. The contract covers spare parts, repairs, engineering advisory services, and digital support for the facility's turbomachinery, including two NovaLT16 gas turbines, and includes iCenter digital services using the Cordant platform for remote monitoring and diagnostics. Engineering support will be delivered locally through the company's service centre in Port Harcourt. The ANOH plant is a midstream facility being developed in two phases, each with a capacity of 300 million standard cubic feet per day, for a total of 600 million standard cubic feet per day when fully operational, and phase one achieved first gas delivery in January 2026.
Oilfield Services Stocks Beat Q1 Revenue Estimates by 3.8% but Shares Fall 9.6%
Oilfield services stocks tracked by StockStory beat analysts' consensus revenue estimates by 3.8% in the first quarter, yet their share prices have fallen an average of 9.6% since reporting. Baker Hughes posted revenue of $6.59 billion, up 2.5% year on year and 4.1% above expectations, but its stock dropped 7.9%. Select Water Solutions delivered the best performance relative to estimates with revenue of $366 million, beating by 6.8%, and its shares rose 6.1%. Borr Drilling had the weakest quarter, missing revenue estimates by 2.1% with $247 million, and its stock tumbled 29.6%. Helmerich & Payne and Oceaneering also reported mixed results, with both missing EPS and EBITDA estimates despite Oceaneering beating on revenue.
Nat-Gas Prices Climb as US Weather Forecasts Turn Hotter
July Nymex natural gas prices closed sharply higher on Tuesday, rising 4.34% as updated weather forecasts called for hotter US temperatures. Maxar Technologies reported that forecasts shifted hotter for parts of the eastern and southern US from June 28 through July 2, boosting demand expectations from electricity providers for increased air-conditioning usage. The National Weather Service had previously indicated that the vast majority of the lower 48 states could see above-average temperatures over the next three months. Lower-48 dry gas production was 98.5 billion cubic feet per day, down 0.4% year-over-year, while gas demand reached 73.9 billion cubic feet per day, up 12.6% year-over-year, according to BNEF. US electricity output in the week ended June 8 rose 10.89% year-over-year to 84,405 gigawatt hours, further supporting demand. However, last Thursday’s EIA report showed a bearish inventory build of 74 billion cubic feet, above expectations of 72 billion cubic feet, with total inventories 23.9% above the five-year seasonal average. Baker Hughes reported that active US nat-gas drilling rigs held at a two-and-three-quarter-year low of 98 rigs.