Baker Hughes (BKR) Signs Deal to Supply Gas Turbine Technology
Baker Hughes Company BKR signed an agreement with Commonwealth LNG to supply gas turbine technology for the latter’s liquefied natural gas (LNG) project in Cameron Parish, LA.
Baker Hughes will supply its LM9000 aeroderivative gas turbine technology. This will help Commonwealth LNG to maximize production at the liquefaction facility, which is being developed.
LM9000 is the most powerful and efficient aeroderivative gas turbine, with a 65-megawatt generation capability. In addition, the oilfield service player will supply other equipment, services and software, including compressor technology, spare parts and maintenance services.
The Cameron Parish facility is a 9.3-million-ton-per-annum LNG export terminal on the Calcasieu River in the Gulf of Mexico. The order will be placed along with the financial close of the project, which is expected in the first quarter of 2024.
Earlier this month, Commonwealth LNG announced a deal with Kimmeridge Energy Management Company to provide development capital for the project. Commonwealth LNG received the development money required to make the final investment decision for its LNG Cameron export facility.
Also, Kimmeridge and Commonwealth LNG agreed to an offtake deal, which covers the supply of 2 million tons per annum of LNG from the new facility for 20 years.
Price Performance
Shares of Baker Hughes have outperformed the industry in the past six months. The stock has gained 14.2% compared with the industry’s 7.6% growth.
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Zacks Rank & Stocks to Consider
BKR currently carries a Zack Rank #3 (Hold).
Some better-ranked players in the energy sector are USA Compression Partners, LP USAC, currently sporting a Zacks Rank of 1 (Strong Buy), and Global Partners GLP and Evolution Petroleum Corporation EPM, carrying a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
USA Compression Partners is one of the largest independent natural gas compression service providers across the United States in terms of fleet horsepower.
USA Compression Partners has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 30 days. The consensus estimate for USAC’s 2023 and 2024 earnings per share is pegged at 30 cents and 55 cents, respectively.
Global Partners is a leading operator of gasoline stations and convenience stores. Over the past 30 days, GLP has witnessed upward earnings estimate revisions for 2023 and 2024, respectively.
The Zacks Consensus Estimate for Global Partners’ 2023 and 2024 earnings per share is pegged at $3.46 and $3.69, respectively. GLP currently has a Zacks Style Score of A for Value and Growth.
Evolution Petroleum is an independent energy company. EPM has a Zacks Style Score of A for Growth and B for Value.
Evolution Petroleum has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 60 days. The consensus estimate for EPM’s 2023 and 2024 earnings per share is pegged at $1.11 and $1.08, respectively.
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