It has been about a month since the last earnings report for Baker Hughes (BKR) . Shares have added about 19.8% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Baker Hughes due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Baker Hughes Q3 Earnings Beat EstimatesBake ...

New liquid mud plant is the largest in Namibia in terms of volume and capacityWalvis Bay Port location will enhance efficiencies for customers and support local employment WALVIS BAY, Namibia, Nov. 21, 2024 (GLOBE NEWSWIRE) -- Baker Hughes (NASDAQ: BKR), an energy technology company, announced Thursday the opening of its new liquid mud plant, cement bulk facility and integrated multi-modal facility to support Namibia’s burgeoning energy industry and increase localization opportunities. The facilities, inclu ...

Company Overview - Baker Hughes is an energy technology company operating in the energy and industrial markets, with two main segments: Oilfield Services & Equipment (OFSE) and Industrial & Energy Technology (IET) [3] - OFSE segment includes four product lines: Well Construction, Production Solutions, Subsea & Surface Pressure Systems, and Completions, Intervention, & Measurements [3] - IET segment provides technologies and services to various markets including LNG, refining, pipeline and gas storage, aviation, utilities, and mining [4] - The company operates in over 120 countries globally [4] Technology Activities - The report provides insights into Baker Hughes' digital transformation strategies and innovation programs [2][5] - It covers technology initiatives, including partnerships and product launches, with details on technology themes, objectives, and benefits [2][5] - The report includes information on estimated ICT budgets and major ICT contracts [2] Report Highlights - The report offers insights into Baker Hughes' tech operations, technology themes, product launches, and partnerships [6] - Key topics covered include Digital Transformation Strategy, Technology Focus, Technology Initiatives, Venture Arm, Investments, Acquisitions, and ICT Budget [6] - The report also provides a Partnership, Investment & Acquisition Network Map and details on key executives [6]

Baker Hughes to deliver integrated gas recovery and hydrogen sulfide (H2S) removal system Solution expected to recover flare gas equivalent up to 7 million Nm3 of methane per year, and further reduce CO2 emissions by up to 11,000 tons per year Recovered flare gas will be used as fuel within the refinery, improving efficiency and reducing consumption and operating costsContract signed at COP29 in Baku, Azerbaijan BAKU, Azerbaijan, Nov. 14, 2024 (GLOBE NEWSWIRE) -- Baker Hughes (NASDAQ: BKR), an energy techno ...

KEY TAKEAWAYSOil stocks, that helped lead the S&P 500 to a new record high Wednesday after Donald Trump's electoral victory, have given some of those gains.Initial stock optimism anticipating a friendly approach to the sector from the incoming Trump administration has faded as concerns emerge.Analysts believe that Trump's policies, including tariffs, may spur oil production, but that would drive down oil prices which would in turn weigh on oil stocks. Oil stocks are trading cautiously, giving up some of th ...

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In anticipation of the upcoming US Presidential election, we have a couple of divergent issues to deal with regarding how to play the energy market. As I try to be I'm a full time value investor and writer who enjoys using classical value ratios to pick my portfolio. Long-term focused on low P/B, P/FCF, Owner Earnings discounting, PEG ratios, the Graham Number and an occasional net-net hunter. I also believe tracking earnings growth versus price appreciation is an essential element to any quality evaluation ...

Company to support projects in Brazil's pre-salt fields, reinforcing position as a leading provider of flexible pipe for deepwater and high CO2 projects Local manufacturing boost Brazilian economy, strengthen energy supply chain HOUSTON and LONDON, Oct. 28, 2024 (GLOBE NEWSWIRE) -- Baker Hughes (NASDAQ: BKR), an energy technology company, announced Monday significant contracts with Petrobras to provide 77 km of flexible pipe systems to be deployed in Brazil's pre-salt fields. The agreement was signed Oct. 1 ...

Investment Rating - The report indicates a positive market reaction to Baker Hughes' Q3 2024 performance, with an adjusted net EBITDA of $1.208 billion, aligning with market expectations [1][3]. Core Insights - Baker Hughes is expected to achieve the midpoint of its fiscal year 2024 guidance, projecting revenues between $27.6 billion and $28.4 billion, and adjusted EBITDA between $4.4 billion and $4.65 billion [1]. - The company reported a revenue of $6.9 billion for Q3 2024, slightly below expectations driven by oilfield services, while the adjusted EBITDA margin was 17.5%, meeting market expectations [1][3]. - The oilfield services and equipment segment generated $3.963 billion in revenue, consistent with market expectations, while the industrial and energy technology segment reported $2.945 billion, which was below market expectations despite a 9% year-over-year growth [1][3]. Summary by Segment Oilfield Services & Equipment - Revenue for this segment was $3.963 billion, flat year-over-year, with an operating income of $547 million, reflecting an 18% increase year-over-year [3]. - The EBITDA margin for this segment was reported at 19.3%, indicating strong profitability [3]. Industrial & Energy Technology - Revenue for this segment was $2.945 billion, showing a 9% year-over-year increase but falling short of market expectations [3]. - The EBITDA margin improved to 17.9%, benefiting from increased sales and pricing power [1][3].

PART I - FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited Q3 2024 financial statements reflect increased revenue and net income, with stable cash flow and growing assets [Condensed Consolidated Statements of Income (Loss)](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Loss)) Q3 2024 revenue increased 4% to **$6.9 billion**, with net income rising 48% to **$766 million** and diluted EPS at **$0.77** Consolidated Income Statement Highlights (In Millions, except per share data) | Metric | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $6,908 | $6,641 | $20,465 | $18,671 | | **Operating Income** | $930 | $714 | $2,416 | $1,666 | | **Net Income Attributable to Baker Hughes** | $766 | $518 | $1,800 | $1,503 | | **Diluted EPS** | $0.77 | $0.51 | $1.80 | $1.48 | - The cash dividend per Class A common stock increased to **$0.21** in Q3 2024 from **$0.20** in Q3 2023[3](index=3&type=chunk) [Condensed Consolidated Statements of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Position) Total assets reached **$37.5 billion** as of September 30, 2024, with total equity increasing to **$16.3 billion** Key Financial Position Data (In Millions) | Account | September 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $2,664 | $2,646 | | Total current assets | $16,568 | $16,301 | | **Total Assets** | **$37,530** | **$36,945** | | Total current liabilities | $12,790 | $12,991 | | Long-term debt | $5,984 | $5,872 | | **Total Liabilities** | **$21,187** | **$21,426** | | **Total Equity** | **$16,343** | **$15,519** | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Nine-month operating cash flow remained stable at **$2.1 billion**, with increased cash usage in investing and financing activities Cash Flow Summary (Nine Months Ended Sep 30, In Millions) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash from operating activities | $2,142 | $2,130 | | Net cash used in investing activities | $(799) | $(503) | | Net cash used in financing activities | $(1,293) | $(861) | | **Increase in cash and cash equivalents** | **$18** | **$713** | - Key uses of cash in financing activities for the first nine months of 2024 included **$628 million** in dividends paid and **$476 million** for the repurchase of Class A common stock[12](index=12&type=chunk) [Notes to Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes provide detailed disclosures on accounting policies, segment performance, debt, and share repurchases, including **$33.4 billion** in remaining performance obligations - The company completed its annual goodwill impairment test during the third quarter of 2024 and concluded that the fair value of all reporting units exceeded their carrying value[18](index=18&type=chunk) - Total debt was approximately **$6.0 billion** as of September 30, 2024. The company has a **$3.0 billion** committed unsecured revolving credit facility, which was undrawn[32](index=32&type=chunk)[33](index=33&type=chunk) - During the first nine months of 2024, the company repurchased **15.0 million** shares of Class A common stock for **$476 million**. Approximately **$1.7 billion** remained authorized for future repurchases as of September 30, 2024[37](index=37&type=chunk) - As of September 30, 2024, the company had **$33.4 billion** in remaining performance obligations (RPO), with expectations to recognize approximately **61%** as revenue within two years[59](index=59&type=chunk) [Management's Discussion and Analysis (MD&A)](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q3 2024 performance to higher IET volume, positive pricing, and cost initiatives, with a positive outlook for natural gas and LNG - The company maintains a positive outlook for the global natural gas and LNG markets, supported by growing demand for projects across LNG, gas infrastructure, and production[84](index=84&type=chunk) - Global upstream spending in 2025 is expected to be similar to 2024, with producers shifting focus towards optimizing mature assets[83](index=83&type=chunk) - In Q3 2024, the company returned **$361 million** to shareholders through dividends and share repurchases, demonstrating a commitment to its capital allocation policy[86](index=86&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Q3 2024 consolidated revenue increased 4% to **$6.9 billion**, with operating income up 30% to **$930 million**, driven by IET growth Q3 2024 vs Q3 2023 Performance (In Millions) | Metric | Q3 2024 | Q3 2023 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $6,908M | $6,641M | +4% | | Operating Income | $930M | $714M | +30% | Nine Months 2024 vs 2023 Performance (In Millions) | Metric | YTD 2024 | YTD 2023 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $20,465M | $18,671M | +10% | | Operating Income | $2,416M | $1,666M | +45% | [Segment Performance](index=31&type=section&id=Segment%20Performance) Q3 2024 saw OFSE operating income rise to **$547 million** with a **13.8%** margin, and IET revenue grow 9% to **$2.9 billion** with a **16.1%** margin Oilfield Services & Equipment (OFSE) - Q3 Performance (In Millions) | Metric | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | $3,963M | $3,951M | +$12M | | Operating Income | $547M | $465M | +$83M | | Operating Margin | 13.8% | 11.8% | +2.0 pts | Industrial & Energy Technology (IET) - Q3 Performance (In Millions) | Metric | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | $2,945M | $2,691M | +$254M | | Operating Income | $474M | $346M | +$128M | | Operating Margin | 16.1% | 12.9% | +3.2 pts | [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$2.7 billion** cash and an undrawn **$3.0 billion** credit facility, generating **$2.1 billion** in operating cash flow - As of September 30, 2024, the company had cash and cash equivalents of **$2.7 billion** and a fully available **$3.0 billion** revolving credit facility maturing in November 2028[125](index=125&type=chunk)[126](index=126&type=chunk) Nine-Month Cash Flow Summary (In Millions) | Activity | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | | Operating Activities | $2,142 | $2,130 | | Investing Activities | $(799) | $(503) | | Financing Activities | $(1,293) | $(861) | - Capital expenditures for 2024 are expected to be up to **5%** of annual revenue[136](index=136&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk exposure has not materially changed since the end of fiscal year 2023, as detailed in its 2023 Annual Report - There have been no material changes in the company's market risk exposure since December 31, 2023[145](index=145&type=chunk) [Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2024, with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[145](index=145&type=chunk) - No changes in internal controls over financial reporting that materially affected, or are reasonably likely to materially affect, such controls were identified during the quarter ended September 30, 2024[146](index=146&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company refers to Note 16 of the financial statements and its 2023 Annual Report for details on legal proceedings - For information on legal proceedings, the report directs readers to Note 16 of the Notes to Unaudited Condensed Consolidated Financial Statements[146](index=146&type=chunk) [Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) The company remains subject to risk factors previously disclosed in its 2023 Annual Report on Form 10-K - There have been no material changes to the risk factors previously disclosed in the company's 2023 Annual Report[147](index=147&type=chunk) [Share Repurchases and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q3 2024, the company repurchased **4.5 million** shares for **$152 million**, with **$1.74 billion** remaining authorized for future repurchases Share Repurchases - Q3 2024 (In Dollars, except share count) | Period | Total Shares Purchased | Average Price Paid Per Share | Value of Shares Remaining for Repurchase | | :--- | :--- | :--- | :--- | | **Q3 2024 Total** | **4,520,095** | **$33.89** | **$1,741,865,699** | - The company's Board of Directors has authorized a total of **$4 billion** for its share repurchase program, which does not have a specified expiration date[150](index=150&type=chunk)