BKR

Baker Hughes Co - Ordinary Shares - Class A

Industrial/Transportation


Presented:03/08/2024
Price:$30.60
Cap:$30.63B
Current Price:$36.32
Cap:$36.08B

Presented

Date03/08/2024
Price$30.60
Market Cap$30.63B
Ent Value$37.77B
P/E Ratio15.99x
Book Value$15.40
Div Yield2.61%
Shares O/S1,000.88M
Ave Daily Vol9,118,055
Short IntN/A

Current

Price$36.32
Market Cap$36.08B
Baker Hughes Co. is a holding company, which engages in the provision of oilfield products, services, and digital solutions. It operates through the Oilfield Services and Equipment (OFSE) and industrial and Energy Technology (IET) segments. The OFSE segment designs and manufactures products and provides services for onshore and offshore oilfield operations. The IET segment combines expertise, technologies, and services for industrial and energy customers including on and off-shore, LNG, pipeline and gas storage, refining, petrochemical, distributed gas, flow and process control, and industrial segments such as nuclear, aviation, automotive, marine, food and beverage, mining, cement and utilities. The company was founded in April 1987 and is headquartered in Houston, TX.

Publicly traded companies mentioned herein: Baker Hughes Co (BKR), Halliburton Company (HAL), Schlumberger Limited (SLB)

Highlights

The presenter is long shares of Baker Hughes (BKR) seeing both a short term dislocation as well as longer-term opportunities for the company to grow revenue and FCF. The impacts from the cancellation of the maximum sustained capacity (MSC) expansion by the Saudis and the Biden administration's pause on LNG export permits have been overstated on Baker Hughes' core operations. Additionally, the company has the potential for revenue growth and significant FCF generation from potential energy transition dynamics (e.g., hydrogen). He sees the current ~$30 per share as an attractive entry point for investors seeking exposure to the energy sector and believes the company can achieve $4 of FCF in the back half of the decade. 

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Idea Discussion

Commentor 1 - 2 weeks ago

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