Baker Hughes (BKR) Signs Deal to Acquire Altus Intervention
Baker Hughes Company BKR entered an agreement to acquire Altus Intervention as part of its strategy to transform its core oil and gas operations by enhancing technological capabilities and providing high-efficiency solutions.
Norway-based Altus Intervention is a leading provider of fully integrated well intervention services, and downhole oil and gas technology. The company’s services and digital technologies provide customers with more efficient solutions than other technologies. The technology and techniques are important components to improve production, well intervention, and plug and abandonment.
Technology and solutions enable lighter and less-invasive well intervention, allowing customers to efficiently maximize production. Altus Intervention provides crucial capabilities and technologies, including industry-leading tractor and power mechanical application solutions, to perform well intervention to help repair damaged and underperforming wells.
The acquisition adds to Baker Hughes’ existing portfolio of oilfield technologies and integrated solutions. It will enhance the company’s life-of-well capabilities as operators seek to improve efficiencies from mature oil and gas fields. The acquisition involves all intellectual property, workers and business agreements.
Altus Intervention is committed to working smarter on well intervention operations to deliver real change operationally and commercially. The transaction, expected to complete in the second half of 2022, will be integrated into Baker Hughes’ Oilfield Services segment.
Company Profile & Price Performance
Headquartered in Houston, TX, Baker Hughes is one of the leading oilfield service providers.
Shares of BKR have outperformed the industry in the past six months. The stock has gained 52.8% compared with the industry’s 17.5% growth.
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Zacks Rank & Stocks to Consider
Baker Hughes currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Houston, TX-based Occidental Petroleum OXY is an integrated oil and gas company, with significant exploration and production exposure. OXY’s 2021-end proved reserves were 3.51 billion barrels of oil equivalent (Bboe), up 2.9 Bboe from 2020-end.
OXY’s earnings for 2021 are expected to surge 96.5% year over year. As of Dec 31, 2021, Occidental had cash and cash equivalents of $2,764 million compared with $2,008 million in the corresponding period of 2020.
PDC Energy, Inc. PDCE is an independent upstream operator that engages in the exploration, development and production of natural gas, crude oil and natural gas liquids. As of Dec 31, 2021, PDCE's total proved reserves were 213,845 thousand barrels of oil, 240,389 MBbls of natural gas liquids and 2,159,725 million cubic feet of natural gas.
PDC Energy’s earnings for 2022 are expected to grow 67.8% year over year. As of Dec 31, PDC Energy had $33.8 million in cash and cash equivalents, and $942.1 million in long-term debt, representing a debt-to-capitalization of 24.5%.
ConocoPhillips COP primarily engages in the exploration and production of oil and natural gas. Considering proved reserves and production, COP is the largest explorer and producer globally. The company ended 2021 with proved reserves of 6.1 billion barrels of oil equivalent and a reserve replacement ratio of 377%.
ConocoPhillips is projected to see a year-over-year earnings surge of 74% in 2022. The company hiked its expected 2022 return of capital to shareholders. The new guidance is pegged at $8 billion, reflecting an increase from the prior projection of $7 billion.
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