Baker Hughes

US Natural Gas Prices Fall for 6th Straight Week Amid Higher Storage, Softer Demand

US natural gas prices ended another week in the red following a higher-than-expected gas injection into storage and milder weather forecasts.In the futures market, the Nymex front-month contract closed the week at $2.67 per million British thermal units on Friday, down from $2.79/MMBtu on July 31.Natural gas spot prices, however, increased $0.04/MMBtu to $2.60/MMBtu on Wednesday, according to the US Energy Information Administration's Weekly Gas Storage Supplement, released on Thursday.This comes amid below-average temperatures across most of Central and Eastern US this week, which sapped demand for gas-fired power burn.Total gas demand for the week dropped by 0.2 billion cubic feet per day, or less than 1%, led by a 0.4 Bcf/d decline in LNG feedgas over the prior week, according to LSEG data.Meanwhile, gas output fell by 0.8 Bcf/d, or 1%, with dry gas output dropping 0.6 Bcf/d, while imports from Canada dropped 3% during the week.US LNG feedgas flows averaged around 17.5 Bcf/d during the first week of August, which is below the Summer peak of 19 Bcf/d in April, according to a report by Natural Gas Intelligence.This was largely due to the Freeport LNG facility in Texas entering into scheduled maintenance on July 10, which is set to last until early August.The net injection into storage for the week ended July 31 was 33 Bcf, up from last week's 28 Bcf, bringing total gas inventories to 3,117 Bcf, according to weekly EIA inventory data.Storage injections were above forecasts, which had expected a net build of 30 Bcf, and were significantly above the prior year's net injection of just 13 Bcf into storage, as well as the five-year average for this period, at 23 Bcf, according to data compiled by Investing.com.Only two regions reported a net injection into storage for the week ended July 31, the East and the Midwest, reporting 24 Bcf and 20 Bcf, resulting in a 5% and 7% surplus to their five-year averages, respectively.Meanwhile, the Pacific and Mountain regions reported withdrawals of 3 Bcf and 1 Bcf, respectively, while South Central and Salt regions saw withdrawals of 6 Bcf and 11 Bcf, respectively.At 3,117 Bcf, total US working gas in storage was 12 Bcf, or less than 1% below the same period last year, but 195 Bcf, or 7% above the five-year average for this period.Weather forecasts turned bearish over the week, with the northern and eastern parts of the country expected to see near-normal temperatures, while the northeastern regions are set to see below-normal temperatures from August 14 through August 20, according to the National Weather Service.This marks a sharp shift from the above-normal temperatures that blanketed the whole of the country in recent weeks, with persistent heatwaves sending temperatures north of 40 degrees in Celcius across certain key regions.According to Pinebrook Energy Advisors, temperature forecasts "are largely unsupportive," aside from a brief heatwave set to last "over the next five days."A total of 31 LNG carriers departed US ports during the week, down four from the prior week, with a total combined capacity of 119 Bcf, down 16 Bcf from last week.The US gas rig count decreased by three from 127 the previous week to 124 in the week ending Aug. 7, according to data from Baker Hughes (BKR) released Friday. That compares with 123 gas rigs in operation in the US a year earlier.The consolidated North American oil and gas rig count, a key early indicator of future production levels, decreased by three to 804 from 807 the previous week.In international markets, European TTF gas prices averaged $19.14/MMBtu for the week ended August 05, $1.03/MMBtu below the prior week. Meanwhile, the Japan-Korea Marker averaged $21.23/MMBtu, about $0.37/MMBtu above the prior week.

Oil & Energy37d ago

Oil Benchmarks Mark 2nd Straight Weekly Slide Amid Shifting Geopolitical, Supply Risks

Global oil benchmarks posted their second straight weekly loss on Friday in a volatile week marked by shifting US-Iran tensions, stalled Strait of Hormuz navigation talks, and an OPEC+ decision to lift production quotas for September.West Texas Intermediate settled at $77.08 per barrel, down from $86.80/bbl the previous week, while Brent closed at $82.35/bbl, down from $90.09/bbl a week earlier.While WTI futures shed 7.7% over the week, Brent lost 8.6%.The week opened under downward pressure following reports that President Donald Trump had held off on new military strikes against Iran, triggering optimism over potential de-escalation.Hopes were further fueled by discussions between Iran and Oman regarding a framework to reopen commercial shipping through the Strait of Hormuz.However, market sentiment quickly turned skeptical as talks hit roadblocks.Conflicting stances emerged when Iranian state media and officials clarified that any navigation deal would not immediately reopen the vital waterway, outlining strict conditions, such as barring specific vessels and proposing heavy cargo passage fees or tolls.According to Reuters, a senior Iranian official said Iran wants to charge ships 5% to 7% of their cargo value to use the strait. Oman is looking at a 3% fee, but Washington is pushing for free passage with no fees, the report added.Physical transit through the corridor remained severely constrained due to heightened security risks, vessel inspections, and reported strikes on targets within the strait.Amid the transit chaos, eight major international shipping associations submitted a joint petition to the United Nations and International Maritime Organization, warning that any compulsory transit tolls violate international law."The absence of US and Iranian consensus paired with a cessation of military actions around the strait could render any agreement without core long-term utility, even if it can limit incidents of targeting ships such as those that were trying to exit through Omani waters," said Samer Hasn, Senior Market Analyst at XS.com.On the supply front, core OPEC+ members approved a production quota increase of about 188,000 barrels per day for September, completing the phased unwinding of voluntary cuts.Despite the quota increase, analysts noted that physical delivery remains hindered by regional blockades and infrastructure bottlenecks.Meanwhile, Ukrainian drone strikes targeted the Caspian Pipeline Consortium terminal on Russia's Black Sea coast and regional oil refineries, prompting Moscow to extend its domestic diesel export ban through Sept. 1.In response to shifting trade flows and competitive pressures, Saudi Arabia lowered its official selling prices for September loadings, cutting Arab Light for Asian buyers by $0.50 to $2/bbl below benchmark averages.Domestic inventory data added further bearish weight mid-week, with the American Petroleum Institute and the US Energy Information Administration reporting an increase of 2.5 million barrels and 2.7 mmbbls in US commercial crude inventories for the week ending July 31, respectively.The US oil rig count increased by three from 451 the previous week to 454 in the week ending Aug. 7, according to data from Baker Hughes (BKR) released Friday. The US had 411 oil rigs in operation a year earlier.The consolidated North American oil and gas rig count, a key early indicator of future production levels, decreased by three to 804 from 807 the previous week.Money managers in the WTI crude futures and options markets remained net long in the week ended Aug. 4, according to the Commodity Futures Trading Commission's latest Commitments of Traders report released on Friday.The data showed that money managers reported 191,726 long positions, down 3,309 from July 28, while short positions were up 3,948 to 90,676. Their net long position fell by 7,257 contracts to 101,050.

Sectors37d ago

Sector Update: Energy Stocks Decline Friday Afternoon

Energy stocks were lower Friday afternoon, with the NYSE Energy Sector Index decreasing 0.5% and the State Street Energy Select Sector SPDR ETF (XLE) down 0.4%.The Philadelphia Oil Service Sector Index was shedding 0.4%, and the Dow Jones US Utilities Index rose 1%.In geopolitical news, an Iranian official said a framework on the Strait of Hormuz has been agreed with Oman, with "a final decision to be made at higher levels," Al Jazeera, a Middle Eastern broadcaster, cited Iranian state media reports. The deal would not automatically reopen the waterway, Tehran's deputy foreign minister said, according to CNN.Front-month West Texas Intermediate crude oil rose 1% to $78.08 a barrel, and the global benchmark Brent crude contract added 1% to $83.32 a barrel. Henry Hub natural gas futures increased 1.1% to $2.67 per 1 million BTU.In corporate news, Vistra's (VST) shares were slightly lower after it reported Q2 results that fell short of consensus expectations.Calumet (CLMT) shares were down 3.8% after the company reported Friday it narrowed its Q2 loss to $1.09 per basic share, from a loss of $1.70 a year earlier. Analysts expected earnings of $0.07.Baker Hughes' (BKR) industrial and energy technology segment is expected to be its main growth engine, supported by strong project flow, record orders and rising power demand, Morgan Stanley said in a report. Morgan Stanley resumed coverage of Baker Hughes with an overweight rating and top pick and a $70 price target. Baker Hughes shares were down 0.3%.

$BKR$CLMT$VST

Update: US Active Rig Count Stays Flat, Baker Hughes Says

(Updated with additional details.)The combined count of crude oil, natural gas, and miscellaneous rigs in the US held steady at 588 in the week ending Aug. 7, according to data from Baker Hughes (BKR) released Friday.The US oil rig count increased by three from 451 the previous week to 454, while the number of gas rigs decreased by three from 127 the previous week to 124, the data showed.The number of miscellaneous rigs in the US remained the same at 10. The US had 411 oil, 123 gas, and five miscellaneous rigs in operation a year earlier.The consolidated North American oil and gas rig count, a key early indicator of future production levels, decreased by three to 804 from 807 the previous week.Price: $62.39, Change: $-0.36, Percent Change: -0.57%

US Active Rig Count Stays Flat, Baker Hughes Says

The combined count of crude oil, natural gas, and miscellaneous rigs in the US held steady at 588 in the week ending Aug. 7, according to data from Baker Hughes (BKR) released Friday.The US oil rig count increased by three from 451 the previous week to 454, while the number of gas rigs decreased by three from 127 the previous week to 124, the data showed.Price: $62.35, Change: $-0.40, Percent Change: -0.64%

US Active Rig Count Remains Unchanged, Baker Hughes (BKR) Says

Equities37d ago

Baker Hughes' Industrial & Energy Technology to Spur Growth, Morgan Stanley Says

Baker Hughes' (BKR) industrial and energy technology segment is expected to be its main growth engine, supported by strong project flow, record orders and rising power demand, Morgan Stanley said Friday in a report.The segment recently topped its objective of 20% EBITDA margin, boosting confidence that "continued growth can translate into attractive incremental profitability," the report said.Baker Hughes' oilfield services and equipment portfolio mix carries a more "durable" earnings profile than peers, Morgan Stanley said. The business is weighted toward natural gas, international land and offshore activity, as well as production optimization, supporting higher growth prospects, the report said.Morgan Stanley resumed coverage of Baker Hughes with an overweight rating and top pick and a $70 price target.Price: $62.23, Change: $-0.52, Percent Change: -0.84%

$AESI$BKR$CHRD$COP$CRGY$CVX$DVN$EOG$HP$LBRT$NBR$OXY$PTEN$XOM

Commodities41d ago

US Land Rig Count Holds at 572 While Oilfield Services Stocks Decline, RBC Says

US active land drilling rigs held steady at 572 last week as the Permian added rigs, while oilfield services stocks declined and basin activity remained mixed, RBC Capital Markets said in a Monday note.The Baker Hughes (BKR) US land rig count remained unchanged at 572. Oil rigs held at 436 and gas rigs stayed at 127, while oil rigs increased by four over the month and gas rigs rose by one.The Permian added two rigs to 260, accounting for 59% of Lower 48 oil rigs and 45% of total US land rigs, according to RBC.Among drillers, Helmerich & Payne (HP) operated 90 Permian rigs, or 32% of the total, followed by Patterson-UTI (PTEN) with 32 rigs, or 11%, and Nabors Industries (NBR) with 29 rigs, or 10%, RBC said.Among operators, ExxonMobil (XOM) led the Permian with 35 rigs, followed by Devon Energy (DVN) and Occidental Petroleum (OXY) with 21 rigs each. Private operators accounted for 45% of active Permian rigs, up from 42% a year earlier.The Eagle Ford also added two rigs to 49. Among drillers, Helmerich & Payne operated 17 rigs, Nabors Industries had 12 and Patterson-UTI had seven, RBC said.Among operators, ConocoPhillips (COP) led the Eagle Ford with seven rigs, followed by EOG Resources (EOG) with six and Crescent Energy (CRGY) with four. Private operators accounted for 54% of active Eagle Ford rigs, up from 36% a year earlier, RBC said.The Williston rig count remained unchanged at 27. Among drillers, Nabors Industries operated 16 rigs, Patterson-UTI had seven and Helmerich & Payne had five, according to RBC.Among operators, Chord Energy (CHRD) led the Williston with five rigs, while Chevron (CVX) and ConocoPhillips each operated three. Public operators accounted for 37% of active rigs, compared with 38% a year earlier, RBC said.Oilfield services stocks under RBC coverage declined 3.3% over the week, while West Texas Intermediate crude fell 3.8%. Liberty Energy (LBRT) gained 7.8%, Baker Hughes rose 5.7% and Nabors Industries advanced 2.8%.The weakest performers were Atlas Energy Solutions (AESI), down 9.8%, Trican Well Service, down 11%, and Ensign Energy Services, down 11.6%.RBC added that its oilfield services coverage group has gained 30.1% year to date, compared with a 10.1% gain for the S&P 500 Index.Price: $60.46, Change: $-0.03, Percent Change: -0.05%

Commodities41d ago

US Rig Counts Show Mixed Signals as Horizontal Activity Modestly Recovers, TPH Says

US land drilling activity showed conflicting signals last week, though a modest recovery in horizontal rigs offered a stabilizing counterweight to ongoing data volatility, TPH Energy strategists said in a note Monday.TPH analysts said that data trackers presented a split picture for the week. The Enverus rig count fell by 3 rigs over the week to 613, bringing its trailing four-week average to a net gain of three.On the contrary, Baker Hughes (BKR) reported an unchanged count of 572 rigs, flat from the prior week with a trailing four-week addition of one.Jeff Leblanc, analyst at TPH, said that Enverus data showed horizontal activity climbing by four rigs, clawing back the bulk of the previous week's six-rig drop.Public operators drove the rebound, adding four rigs to their active count. However, TPH analysts said that the fluctuations point more toward routine data volatility rather than a broader structural shift in upstream spending.Regionally, activity held steady across three major basins, while the Permian Basin added four rigs and the Niobrara lost three.TPH analysts forecast modest gains in active rig counts in the coming weeks, buoyed by commentary from major contract drillers Patterson-UTI (PTEN) and Nabors Industries (NBR), both of which indicated expectations for higher corporate activity during recent earnings calls.Offshore, drilling in the Gulf of Mexico remained unchanged over the week, holding at 15 floating rigs and three jackups currently online.Rig activity in Canada surged by 15 rigs over the week to reach 217 rigs, outpacing the 176 rigs working during the same period last year.Price: $10.33, Change: $-0.15, Percent Change: -1.43%

$BKR$NBR$PTEN

US Natural Gas Prices Log Weekly Slide as Soft Demand, Lower LNG Feedgas Flows Weigh on Market

US natural gas prices ended another week lower despite a smaller-than-expected storage injection, as weaker demand and reduced liquefied natural gas feedgas flows pressured the market.In the futures market, the Nymex front-month contract closed the week at $2.792 per million British thermal unit, down from $2.833/MMBtu on July 24.Natural gas spot prices fell $0.39/MMBtu to $2.56/MMBtu during the week ended July 29, from $2.95/MMBtu the prior week, according to the US Energy Information Administration's Weekly Gas Storage Supplement, released Thursday.Amid warmer-than-average temperatures that persisted across most of the country, total natural gas demand rose slightly by 0.3 billion cubic feet per day, or less than 1%, driven by a 0.3 Bcf/d increase in exports to Mexico, while gas-fired power burn declined by 0.4 Bcf/d.Prices dropped across most regional hubs during the week, ranging from a $0.79/MMBtu decrease at the Waha Hub to $0.01/MMBtu at PG&E Citygate.Even Texas, which experienced a heat dome and record-breaking electricity demand during the week, saw prices dip to $1.70/MMBtu on Wednesday, as solar generation across the region set multiple daily and hourly records throughout the past week.Low average LNG export feedgas flows, at 17.2 Bcf/d, also weighed on demand during this period, compared to the record monthly high of 18.8 Bcf/d in April.This is primarily due to the Freeport LNG in Texas, a major facility, undergoing scheduled maintenance starting July 10 and set to last until August.The net injection into storage for the week ended July 24 was 28 Bcf, down from last week's 32 Bcf, bringing total gas inventories to 3,084 Bcf, according to EIA data.Storage injections were significantly below forecasts, which had expected a net build of 37 Bcf. They were also below the prior year's net injection of 44 Bcf, but were ahead of the five-year average for this period at 26 Bcf, according to data compiled by Investing.com.Regional changes in storage were mixed, with only two regions reporting a net injection, the East and the Midwest, both seeing a net build of 23 Bcf.Meanwhile, the Mountain and Pacific regions reported a withdrawal of 2 Bcf and 9 Bcf, respectively, for the week, followed by South Central, which also reported a 9 Bcf draw.At 3,084 Bcf, total US working gas in storage was 32 Bcf, or 1% below the same period last year, but 185 Bcf, or 6% above the five-year average for this period.According to Pinebrook Energy Advisors, the markets have largely shrugged off the warmer prevailing temperatures, as the demand gets offset by "strong production and reduced LNG feedgas flows helping to keep prices under pressure."Weather forecasts remained bearish, with above-normal temperatures expected to blanket most of the country from Aug. 7 through Aug. 13, according to the National Weather Service, keeping space-cooling demand and gas-fired power burn elevated.A total of 35 LNG carriers departed US ports during the week, up one from the prior week, with a total combined capacity of 135 Bcf, up 9 Bcf from last week.The US gas rig count remained unchanged at 127 in the week ending July 31, according to data from Baker Hughes (BKR) released Friday. That compares with 124 gas rigs in operation in the US a year earlier.In international markets, European TTF gas prices averaged $20.17/MMBtu for the week ended July 29, $0.54/MMBtu higher than the previous week.Meanwhile, the Japan-Korea Marker averaged $21.60/MMBtu, about $0.55/MMBtu above the prior week.

Oil & Energy44d ago

Crude Posts Weekly Loss Despite Middle East Tensions, July Gains Top 20%

Global oil benchmarks ended the week lower as markets trimmed geopolitical risk premiums despite ongoing tensions in the Middle East, while market attention also turned to the OPEC meeting this weekend.West Texas Intermediate settled at $86.80 per barrel, down from $90.47/bbl the previous week, while Brent closed at $90.09/bbl, down from $98.70/bbl a week earlier.WTI futures posted a weekly decline of 5.2%, while Brent futures fell nearly 7%. On a monthly basis, however, both WTI and Brent soared over 20%, capping a volatile July marked by supply disruptions."October Brent dropped toward $85.0 early Friday after Thursday's high above $89 per barrel and September WTI traded near $81.60, still on pace for a large monthly advance as the US-Iran conflict continues to strain shipping through the Strait of Hormuz," Saxo Bank analysts said.The ongoing US-Iran conflict and associated maritime flare-ups kept commercial shipping through the Strait of Hormuz under severe pressure, punctuated by naval interventions, targeted tanker incidents, and Houthi embargo threats against Saudi energy infrastructure.These chokepoint disruptions forced energy markets to continually reprice systemic supply risks, outweighing temporary diplomatic pauses and early-month recovery signals from Persian Gulf flows, analysts noted.The supply squeeze also spread across refined products and export terminals.Global middle distillate margins climbed to fresh multi-month highs as regional conflicts tightened diesel availability ahead of winter, compounded by Russian export bans following refinery disruptions and temporary loading suspensions at the Caspian Pipeline Consortium's Black Sea terminal."The ICE gasoil crack remains near record highs, trading above $70/bbl," ING analysts said.On the supply front, US commercial crude oil inventories fell by 7.2 million barrels to 404.5 mmbbls in the week ended July 24, the Energy Information Administration said in its weekly report on Wednesday.Crude inventories were about 7% below the five-year average for this time of year, the EIA said. The decrease was larger than Macquarie's estimate of a 2.5-million-barrel draw for the week ended July 24.US Strategic Petroleum Reserve inventories dropped to 307.7 mmbbls in the week ended July 24, down from 311.4 mmbbls a week earlier, marking a weekly decline of 3.8 mmbbls, EIA data showed.The weekly US oil rig count increased by one, to 451 in the week ended July 31 from 450 a week earlier, according to data from Baker Hughes (BKR) released Friday. That compared with 410 oil rigs in operation a year earlier.Meanwhile, money managers in the WTI crude futures and options markets increased their net long positions in the week ended July 28, according to the Commodity Futures Trading Commission's latest Commitments of Traders report released Friday.The data showed money managers held 195,035 long positions, up 5,550 from July 21, while short positions fell by 15,852 to 86,728.Meanwhile, the UAE's Abu Dhabi National Oil Company said Friday that it plans to implement changes to the pricing mechanism for its flagship crude grades, in a move that could reshape Middle Eastern crude benchmarks over the longer term.Effective Nov. 1, Adnoc will price its Murban, Das, Umm Lulu and Upper Zakum crude grades using the prompt-month Platts Dubai benchmark and an Adnoc-announced differential, replacing the current methodology based on ICE Futures Abu Dhabi Murban futures.Although late-month developments, including ongoing backchannel peace negotiations, preliminary Persian Gulf supply recoveries, and prospective diplomatic talks, helped trigger short-term price consolidation and weekly pullbacks, cumulative geopolitical risks left both crude benchmarks with strong double-digit percentage gains for the month.In a Cabinet meeting on Friday, US President Donald Trump said American military forces would soon launch attacks on Iran."We'll be hitting them very hard...," Trump said about future plans, warning Iran to expect sustained US military action.The US and Israel were reportedly preparing to launch operations targeting Iran's energy infrastructure over the weekend, according to several media reports late Friday.Market attention has also shifted to the upcoming Organization of the Petroleum Exporting Countries meeting this weekend for clues on potential policy and production decisions.OPEC and its allies are largely expected to stick to their strategy to incrementally raise oil output when seven members meet virtually on Sunday, with the alliance nearing the final stages of completely unwinding production curbs agreed in April 2023, according to sector experts.

Update: US Active Rig Count Rises by 1, Baker Hughes Says

(Updated with additional details.)The combined count of crude oil, natural gas, and miscellaneous rigs in the US rose by one to 588 in the week ending July 31, according to data from Baker Hughes (BKR) released Friday.The US oil rig count increased by one from 450 the previous week to 451, while the number of gas rigs remained unchanged at 127, the data showed.The number of miscellaneous rigs in the US remained the same at 10. The US had 410 oil, 124 gas, and six miscellaneous rigs in operation a year earlier.The consolidated North American oil and gas rig count, a key early indicator of future production levels, increased by 16 to 807 from 791 the previous week.Price: $60.42, Change: $+0.52, Percent Change: +0.87%

US Active Rig Count Rises by 1, Baker Hughes Says

The combined count of crude oil, natural gas, and miscellaneous rigs in the US rose by one to 588 in the week ending July 31, according to data from Baker Hughes (BKR) released Friday.The US oil rig count increased by one from 450 the previous week to 451, while the number of gas rigs remained unchanged at 127, the data showed.Price: $60.40, Change: $+0.50, Percent Change: +0.83%

US Active Rig Count Rises by 1, Baker Hughes (BKR) Says

Sectors46d ago

Sector Update: Energy Stocks Gain Late Afternoon

Energy stocks rose late Wednesday afternoon, with the NYSE Energy Sector Index gaining 2.3% and the State Street Energy Select Sector SPDR ETF (XLE) adding 1.8%.The Philadelphia Oil Service Sector Index fell 0.8%, and the Dow Jones US Utilities Index shed 1.3%.In geopolitical news, President Donald Trump said Iran will be hit hard, according to Fox News. The US Central Command said it joined Saudi Arabian Armed Forces to conduct strikes in Iraq against Iran-aligned terrorists that the Islamic Revolutionary Guard Corps directed to attack US forces and Saudi energy infrastructure.West Texas Intermediate crude oil jumped 6.3% to $84.28 a barrel, and global benchmark Brent surged 7.4% to $90.32 a barrel. Henry Hub natural gas futures rose 2.4% to $2.73 per 1 million BTU.In corporate news, Shell (SHEL) and Phillips 66 (PSX) are exploring a sale of their combined stakes in the Explorer refined products pipeline in a deal that may value the asset at $3.5 billion, Reuters reported. Shell shares rose 2.5%, and Phillips 66 added 0.2%.Baker Hughes (BKR) shares were up 1.6% after the company said it secured a major order for 76 NovaLT 16 gas turbines from Dynamis Power Solutions.Woodside Energy (WDS) shares rose 4.9% after it reported higher Q2 operating revenue.Carlyle (CG), Energean, Dragon Oil, and Artemis Energy are among the companies that are anticipated to bid for BP's (BP) West Nile Delta natural gas development off Egypt this week, Reuters reported. BP shares were up 4.2%.

$BKR$BP$PSX$SHEL$WDS

Wire46d ago

Baker Hughes Shares Rise After Major Gas Turbine Order Secured From Dynamis Power Solutions

Baker Hughes (BKR) shares were up 2.5% in afternoon trading on Wednesday after the company said it secured a major order for 76 NovaLT 16 gas turbines from Dynamis Power Solutions.The gas turbines, which will be paired with gearboxes and generators, total around 1.3 gigawatts of mobile power generation and will be used for data center projects as well as oil and gas applications, the company said.Financial terms of the deal were not provided.Price: $59.94, Change: $+1.48, Percent Change: +2.53%

Oil & Energy47d ago

Baker Hughes Boosts Long-Term Outlook as LNG, Power Orders Fuel Growth, RBC Says

Baker Hughes (BKR) reported a stronger-than-expected Q2 and raised its long-term industrial energy technology order outlook, supported by surging demand for power-generation equipment and liquefied natural gas infrastructure, RBC Capital Markets strategists said in a note on Monday.RBC analysts said the oilfield services and energy technology firm posted adjusted earnings before interest, taxes, depreciation and amortization of $1.23 billion in Q2, up 6% from the previous quarter and above the top end of its guidance range for the second consecutive period.Free cash flow reached $1.05 billion, more than double RBC's estimate of $498 million, reinforcing management's expectation that cash conversion will approach 50% for the year.Baker Hughes shares gained support from strong momentum in its Industrial & Energy Technology division, which has become a key growth driver as global demand rises for LNG capacity, data-center power and energy infrastructure.RBC said that the company secured $7.1 billion in IET orders during the quarter, exceeding expectations.Power Systems accounted for $2.6 billion of the new orders, covering 2.7 gigawatts of generation capacity. The contracts included turbine and generator equipment for oil and gas operations as well as data-center applications in North America.The company also booked $1.8 billion in LNG equipment orders across projects involving Venture Global's (VG) CP2 facility, Golar LNG's (GLNG) FLNG project and Cheniere Energy's (LNG) Sabine Pass LNG facility.Following the strong order intake, Baker Hughes increased its IET Horizon 2 order target for 2026/28 to more than $45 billion, from a previous target of $40 billion.The energy firm also said it plans to expand power systems revenue capacity to $5 billion per year by 2029, compared with about $1 billion generated in 2025.RBC analysts expect the company's multi-year growth and margin expansion to be driven primarily by IET.For Q3, Baker Hughes forecasted EBITDA of about $1.21 billion, while reaffirming its full-year 2026 EBITDA midpoint of $4.85 billion.The company's implied Q4 outlook assumes Middle East activity remains at Q2 levels, a more cautious stance compared with some industry peers.RBC raised its 2026 EBITDA estimate for Baker Hughes to $4.85 billion, while trimming its 2027 forecast by 1% to $5.39 billion due to modestly lower margin expectations.The research firm introduced a 2028 EBITDA forecast of $5.95 billion, representing growth of about 11% year over year.Price: $58.11, Change: $-2.48, Percent Change: -4.09%

$BKR$GLNG$LNG$VG

Wire47d ago

UBS Adjusts Price Target on Baker Hughes to $71 From $73, Maintains Neutral Rating

Baker Hughes (BKR) has an average rating of overweight and mean price target of $70.76, according to analysts polled by FactSet.Price: $59.71, Change: $-0.89, Percent Change: -1.46%

Oil & Energy47d ago

Baker Hughes Warns Oilfield Spending May Slow Amid Middle East Uncertainty

Baker Hughes Company (BKR), a critical equipment and services provider for the oil and gas industry, has warned of a potential slowdown in capital expenditure within the sector this year.During the company's Q2 earnings call, Chairman and CEO Lorenzo Simonelli said that customers remained "focused on maximizing production from existing assets while preserving flexibility to respond to evolving market conditions" due to repeated flare-ups between the US and Iran in the Middle East.Simonelli noted that the company expects year-over-year growth across Latin America, offshore Africa, and North America, but this is expected to be offset by slower growth in Europe and the Middle East.CFO Ahmed Moghal, however, said that he expects the impact of the conflict in the Middle East to be minimal, adding that the supply dip would be offset by other parts of the world, such as Brazil, Mexico and North America.The company said that it was also relying on resilience in other parts of the industry, such as LNG infrastructure and power grid upgrades, which are helping cushion a slowdown in oilfield contracts.