23.31 0.00 (0.00%)
After hours: 4:50PM EDT
|Bid||23.26 x 2200|
|Ask||23.29 x 2900|
|Day's Range||22.59 - 23.33|
|52 Week Range||20.09 - 35.55|
|Beta (3Y Monthly)||0.88|
|PE Ratio (TTM)||69.17|
|Earnings Date||Jul 31, 2019|
|Forward Dividend & Yield||0.72 (3.10%)|
|1y Target Est||29.86|
Arcline Investment Management, a U.S. private equity firm founded by former Golden Gate dealmaker Rajeev Amara, said on Thursday it would buy a unit of Baker Hughes, General Electric Co's oil-servicing subsidiary. The deal comes after Arcline said in March it had raised $1.5 billion for a fund targeted at buying small to midsize industrial businesses, which the company defines as companies with less than $1 billion in revenue. Arcline has agreed to acquire Baker Hughes' reciprocating comprehension division, which makes and services industrial engines and compressors built into natural gas pipelines operated by oil and gas companies.
Today we'll look at Baker Hughes, a GE company (NYSE:BHGE) and reflect on its potential as an investment...
Baker Hughes A GE Co NYSE:BHGEView full report here! Summary * Perception of the company's creditworthiness is negative * ETFs holding this stock are seeing positive inflows * Bearish sentiment is low * Economic output in this company's sector is contracting Bearish sentimentShort interest | PositiveShort interest is low for BHGE with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Money flowETF/Index ownership | PositiveETF activity is positive. Over the last month, ETFs holding BHGE are favorable, with net inflows of $6.67 billion. Additionally, the rate of inflows is increasing. Economic sentimentPMI by IHS MarkitThere is no PMI sector data available for this security. Credit worthinessCredit default swap | NegativeThe current level displays a negative indicator. BHGE credit default swap spreads are near their highest levels for the past 1 year, which indicates the market's more negative perception of the company's credit worthiness.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
If the waivers to operate in Venezuela are discontinued, it is likely to trigger huge losses for Chevron (CVX), which has spent billions in the Venezuelan business.
Baker Hughes on Friday reported that the number of active U.S. rigs drilling for oil fell by 4 to 784 this week. That followed a decline of 5 oil rigs a week earlier. The total active U.S. rig count, meanwhile, also fell by 5 to 958, according to Baker Hughes. August West Texas Intermediate crude continued to climb, trading up 27 cents, or 0.5%, at $60.47 a barrel.
For General Electric (NYSE:GE), it has been a dreadful few years. GE stock, which reliably traded around $30 in 2016, sells for just a third of that value today. The company had to slash the dividend to nearly zero, and even that hasn't totally resolved concerns about the company's balance sheet and fiscal health going forward.Source: Shutterstock If you're a trader, you might be pleased with GE stock. It is up from $7 earlier this year to $10 now, which is a big move off the lows. But don't forget that a year ago, GE stock price was still $14. The move back to $10 has hardly repaired the colossal damage that shareholders have suffered over the past three years. With the stock market now at fresh all-time highs, the stock has continued to disappoint by comparison.GE's dismal stock performance is in the past, however. Is the recent move up from the low the start of a new recovery phase for General Electric? Or is this simply another little bounce before General Electric stock resumes its slump?InvestorPlace - Stock Market News, Stock Advice & Trading Tips A Company In TransitionNine months ago, GE got a new star CEO, Larry Culp. This wasn't GE's first attempt at fixing the executive suite. In 2017, General Electric elevated John Flannery to the top post to try to reverse the firm's sliding fortunes. But Flannery barely lasted a year. The company missed guidance quarter after quarter under his watch. The GE Board wasted no time in bringing yet another new chief executive. And in Larry Culp, it looks like they got a most capable leader.Culp previously served as CEO of Danaher (NYSE:DHR) from 2001 to 2014. During his time there, Danaher stock produced a total return of almost 500% for shareholders. Culp is the first outsider CEO to take the reins in GE's history and shows the company's willingness to do a total reboot to try to get back on track. For a company of GE's pedigree, it's quite a statement that they were willing to hire from outside the firm.Culp has shown plenty of willingness to make big moves in his young tenure. Already, General Electric spun off and then merged its transportation business, which has become Wabtec (NYSE:WAB). Culp made a huge sale in healthcare, unloading the biopharma operations for a huge payday. GE raised a few billion from selling part of its stake in GE Baker Hughes (NYSE:BHGE). And the list goes on.But there's plenty more left to do. As the GE stock price shows, the market isn't convinced that Culp has found the right formula to revive General Electric just yet. Let's take a deep look at GE stock's pluses and minuses as we are almost a year into Culp's turnaround efforts with the industrial giant. A Good Deal With DanaherIf General Electric is to return to its past glory, the first order of business is staying in business. The company needs to make it through this horrid stretch without selling or mortgaging away all its best assets. However, given the company's difficult financial situation, investors have rightly worried about what all GE will have to sell to make it through this down period. * 10 Best ETFs for 2019: The Race for 1 Intensifies On that note, General Electric should be commended for its recent biopharma sale. It managed to unload its biopharma division to Danaher for $21 billion. That appeared to be fully valued. Danaher shareholders weren't particularly ecstatic when they announced the deal, indicating that GE got a solid price. Don't forget that Culp used to be the head executive at Danaher, which likely gave him some flexibility while negotiating the deal.The $21 billion is in and of itself great news, giving the company the funds to tackle more than a third of its net industrial debt position. And, of arguably equal importance, by selling biopharma, it allowed GE to stay in healthcare. Previously, analysts had worried that GE would have to exit healthcare altogether in order to raise enough funds to right the balance sheet. GECAS: A Big Test Going ForwardOne of General Electric's most valuable assets is its jet engine leasing business. Returns in aircraft and engine leasing have historically been very attractive.Airlines tend to be hard-up for cash. And given the history of vast numbers of bankruptcies in the airline industry, banks tend to be cautious in their lending to airlines. Thus, for airlines to get capital at reasonable prices, they often have to engage with non-traditional lenders.GE is ideally suited for this. As the manufacturer of jet engines, it knows its industry about as well as anyone. It directly influences supply in the market, and has excellent information about the demand picture as well. Also, in the event of an airline default or bankruptcy, GE is ideally positioned to get its engines back into use at another airline. By contrast, a bank would be clueless about how to monetize an asset like that.Put all that together, and GE has built a fantastic business in engine leasing. However, many analysts have suggested that General Electric will have to sell it to raise funds. Also, leasing is a rather capital intensive business; it'd likely do a lot to boost GE's credit rating if they got out of the market.Thus, leasing is an interesting test of management. Larry Culp has said repeatedly that the leasing business is not for sale. If GE can make it through the cash crunch without selling leasing, it'd be a sign of strength. If they end up selling it over Culp's protestations, however, it'd be somber news for General Electric stock. Negative Free Cash FlowIn March, GE stunned investors when it warned that the company's free cash flow would turn negative for 2019. Even in a year as dour as 2018, GE still managed to bring in more than $4 billion of FCF. So going negative altogether was truly a huge surprise.With more reflection, however, it makes sense. The company's negative free cash flow is a culmination of many issues. These include the lost revenue related to Boeing's (NYSE:BA) plane crashes, the plunge in renewable power demand and the fall of GE Power's prospects, among other matters.GE expects its cash flow picture to look better in 2020 and especially in 2021 and beyond. But that may not be soon enough to salvage things for GE stock. As discussed below, GE is starting to run into issues in the credit market. The company's balance sheet has been questioned, ratings agencies have downgraded the stock, and funding costs are going up. Running negative free cash flow is a very bad look for General Electric as it tries to reassure its investors and creditors.However, the cash flow crunch may not be as bad as people fear. At least one analyst thinks so. Nicholas Heymann of William Blair came out with an analyst note this week that made the case for GE stock. Among Heymann's points, he expects GE's cash flow to surprise to the upside this quarter. Overall, Heymann sees the GE stock price as being worth between $14 and $16 per share. That'd be roughly 50% upside from today's prices. GE's Fiscal DifficultiesIn October 2018, Moody's downgraded GE debt by two notches to Baa1 from A2. That was a big blow for both the firm's reputation and access to capital going forward. And that downgrade came less than a month after S&P's own ratings action against GE.The next month, GE reacted by abandoning its use of the commercial paper market. Large companies with good credit can borrow short-term in commercial paper at attractive rates to fund temporary liquidity needs. When GE stopped using commercial paper, it made the market reassess the company's overall credit-worthiness.Since that point, the yields on GE Capital's various longer-term bonds have moved higher. That's in sharp contrast to the overall fall in interest rate yields as the Fed sets up to cut interest rates. This suggests that GE's credit worthiness continues to decline, even after the blockbuster sale of biopharma to Danaher.It also puts GE in a difficult place going forward with its capital division. A finance operation can't generate good sound profits if it doesn't have consistent reliable access to cheap funds. If GE can't reassure the market that it is a money good creditor, the capital division's value will be sharply impaired. The Shrinking GE PowerOne of the key building blocks of the new leaner General Electric was supposed to be GE Power. But these efforts have quickly run into trouble. That's because the demand from utilities for GE's products has slumped far more than folks had expected.Utility companies are now looking for just 25-30 gigawatts of capacity. That's way down from estimates of nearly 50 gigawatts as recently as 2016. The global economic slowdown and trade war worries have done little to help reverse this slump in sentiment. Plus, it turns out, electricity use simply isn't growing as fast as models had predicted years ago. More efficient appliances combined with slowing population growth has really cut into future electricity demand.As a result, GE has taken aggressive action to shrink GE Power down to size. It reduced the division's work force by 10,000 employees. In a related move, it has cut almost $1 billion a year in costs from GE Power. This will all help make GE Power more profitable -- or at least stem the losses from shrinking end demand. The division remains stuck with lawsuits, cost overruns and other headaches from previous management regimes, however. If GE stock is going to rebound sharply, GE Power has to perform better in the future. GE Power Faces An Explosive IssueFacing these difficulties, GE Power ran into a poorly timed public relations issue. After a large number of explosions, Brazil's grid operator suggested that GE's equipment was defective. Reuters reported that:"There are close to 700 pieces of that equipment in Brazil's grid, each costing up to 100,000 reais ($26,000). Power transmission companies have already launched tenders to buy replacement transformers while they discuss the costs and a schedule for the changes with GE and regulators."GE continues to claim that its equipment is not at fault. However, Brazil doesn't seem convinced of GE's innocence in the matter. China's State Grid corporation has expanded significantly in Brazil in recent years and could take a share of GE's business in that large country. Notably, Brazil is part of Mercosur -- a South American economic union -- that just reached a historic free trade agreement with the EU. This could bring in yet more competition for GE in that market. In any case, with GE Power already struggling, this Brazilian issue comes at a most unfortunate time. Don't Expect A Healthy Dividend Anytime SoonLast year, GE slashed its dividend to a mere penny per quarter. That move came on top of another previous dividend cut. You might be asking, why didn't GE get rid of the dividend altogether, as so many struggling companies do? For one thing, General Electric used to be a storied blue chip dividend payer. The company was viewed as a stable secure source of income for retirees and other risk averse folks. General Electric has a history of paying dividends continuously for decades, and by keeping a payment -- even a meager one -- it can keep at least some semblance of its past history going.Also, importantly, many mutual funds and exchange-traded funds have strict rules about what sorts of stocks they own. Many growth and income funds, for example, can't buy stocks that have no dividend. Many income-focused ETFs would also have to dump GE stock if the company eliminates the dividend entirely. So, in a weird way, even a tiny dividend is useful for keeping GE stock from slumping even farther.That said, don't look for GE to bring back a more robust dividend within the next few years. It is largely keeping the dividend for mechanical and sentimental reasons. It's not sticking with the dividend because it's a good use of capital. At this point, GE needs all the money it can muster to survive this horrid stretch of business that it is suffering through. Paying out a fatter dividend to shareholders would be irresponsible given the state of GE's balance sheet. If you want an industrial stock that provides a solid and steady stream of income, the 2019 version of General Electric stock is a bad choice. Forget Sunk Costs: Would You Buy GE Stock Now?In investing, it's always useful to think about what you'd do if you had no position already. If you were a neutral observer of General Electric, and had the option of buying it or rival industrial companies, what would you do? Most likely, you wouldn't buy General Electric stock right now.So if you hold GE, you should really pause and consider that. Do you believe GE stock is fundamentally a solid choice for your portfolio today? Or are you hoping that it recovers to its past glories, and that you are able to sell it for a profit? * 7 of The Best Schwab ETFs for Low Fees The stock market doesn't care what price we buy an investment at -- there's nothing magical about the cost basis for a position. Holding stocks simply to try to get back to break-even is a classic investor error that leads to massive opportunity cost and sometimes results in holding stocks all the way until they go bust.You get no extra reward for holding a losing stock for many years before it (hopefully) turns around. In the meantime, you suffer a large opportunity cost. With the stock market zooming higher, there are so many better investments that the average person could own instead of General Electric stock. Bottom Line on General Electric StockIf you believe in General Electric's turnaround story, $10 might still be a compelling price to buy at. It's not a fire sale, like it was at $7, but there's still a clear path to $15 or higher if management is able to execute and the economy remains strong. But I don't see the risk/reward for GE stock being particularly compelling at this price. If you're on the sidelines, there's no reason to get involved here.And if you do own GE stock, you should think about whether you are holding it because it has strong prospects, or if you own it hoping to recover losses or some other emotional reason. The General Electric that exists today is far different from the firm that existed in 2007, let alone back in Jack Welch's glory days.While Immelt, Flannery and Culp haven't totally broken up the old GE, the firm has lost so many pieces that had formerly made it great. GE's financials and banking business in particular was a huge boost to earnings. That's largely gone now, with small pieces left here and there. Even if General Electric recovers, it's unlikely to regain its former glory.As a much more pure-play industrial firm, there's simply not the sort of upside that you had when GE was an industry-spanning conglomerate. And with this economic recovery already so well-advanced in years, it's worth asking: What will happen when industrial-heavy GE stock faces the next recession? For now, General Electric doesn't offer enough reward to justify the risk.At the time of this writing, Ian Bezek held no positions in any of the aforementioned securities. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy on College Students' Radars * 7 Retail Stocks to Buy for the Second Half of 2019 * The S&P 500's 5 Best Highest-Yielding Dividend Stocks The post Can Larry Culp Really Save General Electric Stock? appeared first on InvestorPlace.
The decline in count for oil drilling rigs in the United States reflects conservative capital spending by domestic explorers and producers.
Baker Hughes on Wednesday reported that the number of active U.S. rigs drilling for oil fell by 5 to 788 this week. That followed two consecutive weeks of increases. The total active U.S. rig count, meanwhile, also fell by 4 to 963, according to Baker Hughes. Data came out ahead of the usual release date on Friday, given Thursday's Independence Day holiday. August West Texas Intermediate crude continued to climb, trading up 61 cents, or 1.1%, at $56.86 a barrel.
Baker Hughes, a GE company will hold a webcast on Wednesday, July 31, 2019 to discuss the results for the second quarter ending June 30, 2019. The webcast is scheduled to begin at 9:30 a.m.
Baker Hughes, a GE company announced today that the Baker Hughes international rig count for June 2019 was 1,138, up 12 from the 1,126 counted in May 2019, and up 179 from the 959 counted in June 2018.
The considerable rise in oil price over the past month has likely prompted crude drillers to add rigs despite plans of conservative investments.
Baker Hughes on Friday reported that the number of active U.S. rigs drilling for oil rose by 4 to 793 this week. That followed a modest 1-rig increase a week earlier. The total active U.S. rig count, meanwhile, was unchanged at 967, according to Baker Hughes. August West Texas Intermediate crude continued to decline, trading down 17 cents, or 0.3%, at $59.26 a barrel.
General Electric (GE) is likely to gain from restructuring efforts, organic growth opportunities in some segments, reduction of debt levels and expansion in emerging markets.
Per Rystad Energy, big oilfield services players like Halliburton (HAL) have already begun raising prices for products and services. This is expected to boost their earnings going forward.
Baker Hughes, a GE Company has entered into a joint venture with Artificial Intelligence software provider C3.ai to accelerate the digital transformation in the oil and gas industry.
Baker Hughes, a GE company (BHGE) and C3.ai today announced a joint venture agreement that brings together BHGE’s fullstream oil and gas expertise with C3.ai’s unique AI software suite to deliver digital transformation technologies that will drive new levels of productivity for the oil and gas industry.
Is Baker Hughes, a GE company (NYSE:BHGE) a good stock to buy right now? We at Insider Monkey like to examine what billionaires and hedge funds think of a company before doing days of research on it. Given their 2 and 20 payment structure, hedge funds have more incentives and resources than the average investor. […]
There's hope for General Electric (NYSE:GE). Asset sales, a new CEO, and the promise of improved execution have brought investors back into GE stock. General Electric stock has risen 43% so far this year, handily outpacing the stock market.Source: Shutterstock I've been skeptical of the gains since GE stock hit $10, and I was bearish on GE stock long before that. For all the coverage GE receives, many aspects of its business aren't that attractive. GE Power serves declining end markets. Baker Hughes (NYSE:BHGE) is again challenging a 19-year low. Renewable energy hasn't proven to be a winner. GE Capital is still dealing with errors made years ago. * 5 Stocks to Buy for $20 or Less GE Healthcare and GE Aviation are certainly attractive. But with GE's heavily indebted balance sheet, and with its free cash flow expected to be negative this year, those two businesses simply are not attractive enough to make me upbeat on GE stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAll that said, I do understand why some are bullish on GE stock, and, truthfully, I would love to see the bullish thesis play out. GE is an iconic American company. Many investors lost a large amount of money on GE stock in recent years; they deserve a rebound.And there are reasons to be bullish on GE stock now. As I wrote just last month, GE management clearly is being more transparent. New CEO Larry Culp has sparked optimism. And to some extent, bad news is priced into GE stock. If Culp can turn around GE, General Electric stock is going to rise.I still believe that's too big an "if'," however. In that context, a few recent developments need to be monitored closely. GE Gets Transparent-ishCulp clearly has made a point of giving investors and analysts news when possible, whether it's good or bad. He told investors in March that GE would be cash flow-negative this year (excluding GE Capital) - and then reiterated that guidance last month. That's a noted departure from what InvestorPlace columnist Will Healy wisely called a "constant drip" of bad news, including lowered guidance, surprising charges by GE Capital, and execution missteps that weren't quickly revealed.But as Bloomberg noted last month, old habits are tough to break. CFO Jamie Miller admitted that the company had created "confusion" by touting the growth of GE Power's orders on its Q1 conference call in late April. That growth was questioned by JPMorgan Chase (NYSE:JPM) analyst Stephen Tusa, a prescient and longtime bear on General Electric stock.At a conference three weeks after the call, Miller said the company was referencing a report from a third-party. But as Bloomberg pointed out, the report included joint-venture orders and some orders that were already in the company's backlog before the quarter.For any other company, this would be a minor slip-up. For a company that's spent years seemingly twisting all news in its favor, it's a concerning step. GE Aviation StumblesAgain, the company's attractive businesses are Aviation and Healthcare. Those two segments can help keep GE afloat while it repairs its Power business and waits for a rebound in oil and gas and other smaller markets.But the GE9x engine is taking criticism by one of GE's key customers, Boeing (NYSE:BA). That manufacturer's 777x is facing potential delays after a second issue with GE's engine. Testing of the GE9x originally was delayed by three months due to a compressor issue. Further mechanical issues are delaying testing again, and GE is the "long pole in the tent," as Boeing CFO Greg Smith put it.This, too, isn't major news. Neither Boeing nor Airbus (OTCMKTS:EADSY) is going to abandon GE Aviation over these delays. But - as with the transparency issue - GE's history colors everything. A delay involving a key customer in a key business can't be seen as good news. GE's China ProblemThere's another major issue with buying GE stock: the economy needs to cooperate. A recession would interrupt the company's plans and offset Culp's optimism about 2020 and beyond.The trade war with China is a potential catalyst for a global slowdown. But even if that doesn't play out, China seems to be a significant risk for GE. For GE Healthcare, China was "a source of growth" last year, as the company put it in its 10-K. But that growth may have come from unsavory methods: the SEC is investigating GE, along with Philips (NYSE:PHG) and Siemens (OTCMKTS:SIEGY) for bribery.Moreover, Tusa and another analyst both have noted that China could create a new competitor for GE Power in the region. That market is too large, and GE Power too wobbly, to handle that type of blow.On top of all that, tariffs already are increasing GE's costs. And a prolonged trade war could undercut GE's brand. The problem with an industrial company like General Electric is that it can do everything right and still be upended by external factors. Culp's plans may not come to fruition if the news from China doesn't improve. On the Sidelines on General Electric StockTo those who are bullish on GE stock, these concerns probably seem like nit-picking. But that's what happens when a company loses trust.That aside, GE's turnaround path is not easy. It's facing real challenges now. GE stock didn't plunge just because of poor execution, bearish analysts, or uneven communication. Its fundamentals have been headed in the wrong direction for some time. It's going to take some time, and some help, for that to change.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Red-Hot IPO Stocks to Buy for the Long Run * 5 Stocks to Buy for $20 or Less * 4 Dow Jones Stocks Ready to Rise Compare Brokers The post The Turnaround of General Electric Stock Takes a Few Hits appeared first on InvestorPlace.
The consolidation drive in the oilfield service space is reflected in the recent decision of C&J Energy (CJ) & Keane Group (FRAC) to merge and create a diversified oilfield services firm.
The US drilling rig count fell 6 units, reaching 969 rigs working for the week ended June 14, according to Baker Hughes data. The count is down 90 units from the 1,059 rigs working this time a year ago.
Baker Hughes on Friday reported that the number of active U.S. rigs drilling for oil fell by 1 to 788 this week. That followed a decline of 11 rigs last week. The total active U.S. rig count, meanwhile, decreased by 6 to 969, according to Baker Hughes. July West Texas Intermediate crude held onto its gains, up 43 cents, or 0.8%, at $52.71 a barrel.