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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)

Baker Hughes Company (NASDAQ: BKR ) just reported Q3 results that were a mixed bag, in my opinion, but the markets seem to love the robust backlog and continual improvement in margins. I wanted to take a look at the numbers in MSc in Finance. Long-term horizon investor mostly with 5-10 year horizon. I like to keep investing simple. I believe a portfolio should consist of a mix of growth, value, and dividend-paying stocks but usually end up looking for value more than anything. I also sell options from time ...

Financial Data and Key Metrics - The company achieved a record quarterly EBITDA with a 23% year-over-year increase, reaching approximately $1.21 billion [23] - EBITDA margins improved by 2.7 percentage points year-over-year to 17.5%, the highest since 2017 [3] - Free cash flow for the quarter was $754 million, bringing year-to-date free cash flow to nearly $1.4 billion [4][24] - GAAP diluted earnings per share were $0.77, with adjusted earnings per share at $0.67, a 59% increase compared to the same quarter last year [23] - The adjusted tax rate declined to 26%, with expectations for the year-end tax rate to be slightly below the midpoint of the full-year guidance range [23] Business Segment Performance - Industrial and Energy Technology (IET) orders remained strong at $2.9 billion, driven by FPSO and gas infrastructure orders [26] - IET revenue for the quarter was $2.9 billion, up 9% year-over-year, with EBITDA of $528 million, a 31% increase [27] - Oilfield Services & Equipment (OFSE) revenue was $4 billion, with EBITDA of $765 million, up 14% year-over-year [28][29] - OFSE EBITDA margins reached 19.3%, up 2.3 percentage points year-over-year, driven by higher pricing and cost efficiencies [29] Market and Strategic Outlook - The company expects global primary energy demand to grow by 10% between now and 2040, driven by population growth and increasing energy intensity in developing countries [9] - Natural gas demand is expected to grow by almost 20% by 2040, with LNG demand increasing by 75% [10] - The company anticipates 800 MTPA of liquefaction capacity by 2030 to meet global LNG demand, with over 200 MTPA currently under construction [11] - The company is focusing on decarbonization technologies, including CCUS, hydrogen, geothermal, and clean power, with new energy orders expected to exceed $1 billion for the first time [6][12] Management Commentary on Operating Environment - The company remains confident in achieving the midpoint of its full-year EBITDA guidance, driven by strong operational performance and margin expansion [4][23] - Management highlighted the shift in customer spending towards global gas and mature fuels, with oil demand fundamentals softening [13] - The company expects global upstream spending in 2025 to be similar to 2024 levels, with a focus on optimizing production from existing assets [14][16] Other Important Information - The company returned $361 million to shareholders in Q3, including $209 million in dividends and $152 million in share repurchases [25] - The company is investing in new technology to extend equipment life and improve efficiency, with over 2,000 upgrade projects executed globally [18][19] - The serviceable equipment base for Gas Technology Services has doubled from 4,400 units in 2000 to 9,000 units in 2023, with expectations for a 20% increase by 2030 [20][21] Q&A Session Summary Question: Global gas infrastructure and IET positioning - The company highlighted the interconnectivity between equipment and services, with recurring service revenue generating 1x to 2x the original equipment revenue over the life cycle [39][40] - LNG service revenue is expected to grow significantly, with the installed base projected to increase by 70% by 2030 [41][42] Question: Margin improvement cadence in IET - The company is confident in achieving a 20% EBITDA margin target in IET by 2026, driven by cost efficiencies, productivity gains, and supply chain improvements [45][47] - Over half of the year-over-year margin improvement is attributed to self-help initiatives, including corporate cost reductions and process improvements [46][47] Question: Revenue growth relative to installed base in Gas Technology Services - Revenue growth is expected to outpace the 20% increase in the installed base by 2030, driven by higher pricing, mix improvement, advanced service solutions, and upgrade opportunities [52][53] Question: IET order outlook for 2024 and 2025 - The company feels confident about achieving the $12.5 billion order target for 2024, with strong momentum in gas infrastructure, FPSO, and new energy orders [57][58] - For 2025, the company expects similar order levels to 2024, with potential growth in LNG FIDs and gas infrastructure projects [59][60] Question: IET revenue rebound in Q4 - The Q3 revenue miss was attributed to timing delays in large projects, with the revenue expected to rebound in Q4 and Q1 [63][64] - The company remains confident in its full-year guidance, with GTE revenue up 33% year-to-date and margins improving significantly [64] Question: IET backlog conversion in 2025 - The company expects robust activity in 2025, with backlog conversion continuing at the same pace as 2024, supported by record RPO levels [68]

LINEA INCO 3Q 2024 Results October 23, 2024 e Baker Hughes Copyright 2024 Baker Hughes Company. All rights reserved. The information contained in this document is company confidential and proprietary property of Baker Hughes and its affiliates. It is used only for the benefit of Baker Hughes and may not be distributed, transmitted, reproduced, altered, or used for any purpose without the express written consent of Baker Hughes. This presentation (and oral statements made regarding the subjects of this prese ...

Baker Hughes Company (BKR) reported third-quarter 2024 adjusted earnings of 67 cents per share, which beat the Zacks Consensus Estimate of 60 cents. The bottom line also improved from the year-ago level of 42 cents. Total quarterly revenues of $6,908 million missed the Zacks Consensus Estimate of $7,193 million. However, the top line increased from the year-ago quarter's $6,641 million. The strong quarterly earnings were primarily driven by higher operational performance across both segments and improving E ...

Baker Hughes (BKR) came out with quarterly earnings of $0.67 per share, beating the Zacks Consensus Estimate of $0.60 per share. This compares to earnings of $0.42 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 11.67%. A quarter ago, it was expected that this oilfield services company would post earnings of $0.49 per share when it actually produced earnings of $0.57, delivering a surprise of 16.33%. Over the last four quarte ...