Company Overview - Baker Hughes is well-positioned for the energy future with strength in gas technology and LNG portfolios within their Industrial & Energy Technology Segment [2] - The company has found resilience in enhanced oil recovery and subsea & surface pressure systems despite global rig utilization decline [3] - Management has confirmed a margin enhancement strategy targeting 20% for both OFSE & IET by 2025 & 2026 respectively [2] Financial Performance - Gas Technology Revenue increased from $6,730 million in FY 2021 to $10,372 million in FY 2023 [12] - Adjusted EBITDA is forecasted to reach $4.55 billion in eFY24 and $4.96 billion in eFY25 [56] - Free Cash Flow is projected to be $1,832 million in eFY24 [45] Operational Highlights - Baker Hughes booked $3.5 billion in projects in the IET segment in Q2 '24, including $1 billion from the Master Gas System with Aramco [13] - The company anticipates gas tech excluding LNG to bring a total value of $100-120 billion through 2030 [13] - Management forecasts LNG demand to increase in mid-single digits annually through the end of the decade, with installed nameplate capacity reaching 800MTPA by 2030 [14] Market Trends - Domestic production is declining due to fewer land rigs being utilized, with operators focusing more on enhanced oil recovery [6] - US rigs are down while Canadian rigs are up, indicating a shift in drilling programs to the Alberta-Montney Basin [10] - The Permian Basin has seen a decline in rigs due to enhanced drilling and recovery programs [11] Strategic Initiatives - Management is driving cost-cutting measures to eliminate overlap and redundancies, aiming for 20% EBITDA margin in OFSE & IET by 2025 & 2026 [56] - The company is focusing on high-margin backlog and supply chain optimization to improve margins [56] - Baker Hughes is refocusing on gas tech and LNG segments, with significant projects booked in these areas [13] Global Outlook - Gas demand is expected to grow at a 20% rate through 2040, with LNG trade playing a significant role [16] - Offshore markets, particularly in Latin America, West Africa, and the Middle East, are expected to drive upstream growth [53] - The Gulf of Mexico remains a strong area for offshore activity, with companies like Chevron and Occidental Petroleum focusing on these assets [54] Shareholder Value - Baker Hughes returned $375 million to shareholders in Q2 '24 through dividends and share repurchases [64] - The company aims to return 60-80% of free cash flow to shareholders, with incremental improvements in dividend rates and share buybacks [64] - BKR shares have outperformed the S&P 500 by 54% since 2021 [68] Future Prospects - Management anticipates significant cash generation, with OFSE expected to generate $3.2 billion in EBITDA in eFY25 [59] - The company is well-positioned for growth in areas outside hydrocarbons, including electrification and turbines for small modular reactors [68] - Natural gas is expected to supply most power during the 2020s, with nuclear capacity taking over in the 2030s, benefiting Baker Hughes [69]

CarbonEdge™ connects subsurface and surface data across carbon capture, utilization and storage (CCUS) infrastructure Solution draws on Baker Hughes' technology, long-standing domain expertise across its diverse portfolio ready to serve entire CCUS value chain Wabash Valley Resources will leverage CarbonEdge for measurement, monitoring, and verification of CO2 and collaborate with Baker Hughes on the solution's continued development HOUSTON and LONDON, Sept. 12, 2024 (GLOBE NEWSWIRE) -- Baker Hughes (NASDAQ ...

Core Viewpoint - Baker Hughes will announce its third quarter results for the period ending September 30, 2024, on October 22, 2024, with a subsequent webcast to discuss these results on October 23, 2024 [1]. Group 1 - The press release for the third quarter results will be available at 5 p.m. Eastern Time on October 22, 2024 [1]. - The webcast to discuss the results will take place at 9:30 a.m. Eastern Time on October 23, 2024 [1]. - Listeners can access the webcast through the Baker Hughes investor relations website, with an archived version available afterward [2]. Group 2 - Baker Hughes is an energy technology company that provides solutions to energy and industrial customers globally [3]. - The company has over a century of experience and operates in more than 120 countries [3]. - Baker Hughes focuses on innovative technologies and services aimed at making energy safer, cleaner, and more efficient [3].

Summary of Baker Hughes Company Conference Call Company Overview - **Company**: Baker Hughes Company (NASDAQ: BKR) - **Event**: Barclays 38th Annual CEO Energy-Power Conference Call - **Date**: September 4, 2024 - **Participants**: Lorenzo Simonelli (CEO), Dave Anderson (Barclays) Key Points Company Transformation and Strategy - Since the merger with GE Oil & Gas in 2017, Baker Hughes has undergone significant transformation, improving execution and operational efficiency, which was previously a challenge [2][3] - The company has focused on three strategic pillars: 1. **Transform the Core**: Enhancing operational execution and simplifying the organization [4] 2. **Invest in Profitable Growth**: Developing a differentiated portfolio in gas turbines, compression, and digital capabilities [4] 3. **New Frontiers**: Engaging in energy transition initiatives such as CCUS (Carbon Capture, Utilization, and Storage), hydrogen, and geothermal energy [5][6] Financial Performance - Baker Hughes reported an EBITDA margin of 16%, which is above historical levels, with an expected EBITDA of approximately $4.5 billion, representing over 50% growth since 2019 [4] - The company anticipates non-LNG orders to increase by 50% this year, indicating strong growth in non-LNG segments [20] Cultural and Organizational Changes - A cultural shift has been pivotal in the company's transformation, emphasizing a unified purpose of providing clean and efficient energy [8][10] - The company has made significant management changes to align with its strategic goals, including the appointment of Amerino Gatti to enhance capabilities in oilfield services and equipment [11][15] Future Growth Opportunities - The next horizon for growth includes: - **CCUS**: Addressing emissions reduction and energy transition [17] - **Data Centers**: Anticipated doubling of electrical consumption by data centers by 2026, presenting a significant opportunity for power generation solutions [17] - **Geothermal Energy**: Leveraging product breadth to support energy generation in new sectors like mining [18] - Baker Hughes aims to expand its presence in emerging LNG markets, with a target of 800 million tons per annum of installed capacity by 2030 [23][24] Market Outlook - The company expects continued growth in international markets, particularly in production and chemical sectors, while North America may experience a slowdown [42][43] - Baker Hughes is strategically positioned to benefit from the increasing demand for mature asset solutions, focusing on operational expenditure rather than exploration [48] Investment and Shareholder Returns - The company plans to return 60% to 80% of free cash flow to shareholders through dividends and buybacks, maintaining a strong focus on shareholder value [53] Additional Insights - Baker Hughes has developed a "in-Kingdom for-Kingdom" strategy in Saudi Arabia, enhancing local manufacturing capabilities and exporting to neighboring regions [50][52] - The company is actively involved in various end markets, including gas infrastructure, petrochemicals, and power generation, with a molecule-agnostic approach to equipment [31][30] This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting Baker Hughes' commitment to growth, operational excellence, and shareholder value.

Amerino Gatti appointed as executive vice president of Oilfield Services & Equipment (OFSE) business segment Maria Claudia Borras appointed as chief growth & experience officer Muzzamil Khider Ahmed appointed as chief people & culture officer HOUSTON and LONDON, Sept. 03, 2024 (GLOBE NEWSWIRE) -- Baker Hughes Company (NASDAQ: BKR) ("Baker Hughes" or the "Company") announced Tuesday several changes to its leadership team, effective by Oct. 1. These changes are designed to continue delivering Baker Hughes' su ...

Baker Hughes (BKR) closed the last trading session at $34.51, gaining 1% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $43.25 indicates a 25.3% upside potential. The mean estimate comprises 20 short-term price targets with a standard deviation of $2.92. While the lowest estimate of $37 indicates a 7.2% increase from the current price level, the most optimistic analyst expects the ...

Core Viewpoint - Baker Hughes experienced a significant stock increase of 10.1% in July, driven by strong earnings reflecting operational improvements and margin expansion, alongside robust order growth in industrial and energy technology [2] Margin Expansion - Baker Hughes operates in two segments: Industrial and Energy Technology (IET) and Oilfield Services and Equipment (OFSE) [3] - Management aims to increase OFSE EBITDA margin from 16.9% to 20% by 2025 and IET EBITDA margin from 15% to 20% by 2026 [4] - Recent margin performance showed year-over-year and sequential expansion in both segments, with Q2 2023 OFSE margin at 16.4% and IET margin at 14.9% [5] Order Growth - The company reported $7.5 billion in orders for the quarter, surpassing revenue of $7.1 billion, with $3.5 billion in IET orders [6] - Non-LNG orders reached a record of $1.4 billion this quarter, while new energy orders hit a record $445 million, totaling $684 million for the first half of the year [7] Future Outlook - With ongoing margin expansion and strong order growth, Baker Hughes is positioned for a robust 2024, particularly in LNG investments and new energy solutions [8]

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers. Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by th ...

Baker Hughes (BKR) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company. The upward trend in estimate revisions for this oilfield services company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation ...

The Oils-Energy group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Baker Hughes (BKR) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Oils-Energy sector should help us answer this question. Baker Hughes is one of 247 companies in the Oils-Energy group. The Oil ...