The U.S. energy sector has outperformed in 2026, driven primarily by geopolitical-related supply fears, elevated oil prices, and rising demand from the AI infrastructure buildout. While broad energy funds have also surged, investors can potentially enhance exposure by targeting specific segments of the energy market.
Key Takeaways Geopolitical supply concerns, elevated crude oil prices, and AI infrastructure energy demand have driven the U.S. energy sector’s strong 2026 performance. While broad market ETFs like the State Street Energy Select Sector SPDR ETF (XLE) and the Vanguard Energy ETF (VDE) provide core exposure, investors can potentially capture higher returns by specifically targeting different segments of the oil and gas value chain. Upstream firms capitalize on rising crude prices, while midstream companies generate steady income through fee-based models. Downstream refiners capture gains when widening crack spreads boost refining margins. Broad Market Energy Funds The State Street Energy Select Sector SPDR ETF (XLE) covers the broader oil and gas value chain by tracking the S&P Energy Select Sector Index (IXE). Integrated majors ExxonMobil (XOM) and Chevron Corporation (CVX) make up over 35% of portfolio allocations. The fund has generated a year-to-date total return of 32.63% through July 21, with inflows of $3.5 billion.
The Vanguard Energy ETF (VDE) takes a similar broad market approach, tracking the MSCI US Investable Market Energy 25/50 Index. ExxonMobil and Chevron Corporation also collectively make up roughly 35% of the portfolio. VDE has risen 33.09% so far this year, receiving inflows of $720.25 million.
Capitalizing on Elevated Crude Oil Prices Exploration & production (E&P) firms have benefited significantly from elevated crude oil prices. These upstream firms focus on finding, extracting, and selling the oil, making their performance heavily dependent on crude oil prices. The U.S. crude oil benchmark (WTI) is up 47.88% year to date through July 21, allowing E&P firms to sell the same crude oil at higher prices, directly boosting cash flows.
Funds such as the State Street SPDR S&P Oil & Gas Exploration & Production ETF (XOP) provide exposure to these upstream firms. XOP tracks the S&P Oil & Gas Exploration & Production Select Industry Index, which provides equal-weighted exposure across over 50 U.S. E&P firms. XOP has climbed 38.90% in 2026 and has seen inflows of $889.62 million.
For targeted exposure to E&P producers in Texas, investors can turn to the Texas Capital Texas Oil Index ETF (OILT). This fund tracks the Alerian Texas Weighted Oil and Gas Index (ATXWO), using an economic-value weighted strategy. Individual holdings are weighted by the volume and value of oil and gas produced in Texas, with a cap of 10% for any single holding. OILT has gained 30.91% year to date as oil prices remain elevated.
The VanEck Oil Services ETF (OIH) targets the 25 most liquid companies involved in upstream oil and gas services. The fund tracks the MVIS US Listed Oil Services 25 Index (MVOIH), with heavy weighting towards the fund’s top holdings. Its top holding, SLB Limited (SLB), sits at a 19.00% portfolio weight as of July 21, while the second largest holding, Baker Hughes Company (BKR), maintains a 11.93% weight. OIH primarily invests in U.S. companies, with approximately a quarter allocated to U.S. listed foreign companies. The fund has returned 34.67% in 2026, seeing inflows of $193.89 million over the same period.
Midstream Income and Stability While upstream producers directly benefit from elevated oil prices, midstream firms maintain stable cash flows from their fee-based business models, largely insulated from commodity price volatility. The midstream sector has performed strongly in 2026, driven by stable income, power demand from AI infrastructure projects, and record liquefied natural gas (LNG) exports.
The Alerian Energy Infrastructure ETF (ENFR) delivers midstream exposure through the Alerian Midstream Energy Select Index (AMEI), a composite of North American energy infrastructure companies. ENFR maintains a portfolio of roughly 30 holdings with larger firms holding higher portfolio weights. The fund has gained 29.38% with inflows of approximately $70 million year to date.
For investors seeking pure exposure to midstream MLPs, the Alerian MLP ETF (AMLP) is composed of 100% MLPs. The fund tracks the Alerian MLP Infrastructure Index (AMZI), which is a capped, float-adjusted, capitalization-weighted composite of energy infrastructure MLPs that earn most of their cash flow from midstream activities. AMLP has climbed 20.30% year to date with inflows of $604 million. MLPs have attracted significant investor interest due to their track record of providing generous quarterly distributions, which provide a stable stream of income.
Capturing Crack Spreads Downstream Looking downstream, oil refiners have performed strongly in 2026. Global supply constraints are widening the crack spread between crude oil and refined fuels, creating elevated profit margins for oil refiners. However, it’s important to note that if crude oil prices spike too quickly, refiners often can’t pass the full cost on to consumers, causing their margins to shrink.
The VanEck Oil Refiners ETF (CRAK) captures this elevated crack spread by tracking the MVIS Global Oil Refiners Index (MVCRAK). The index provides global pure-play exposure to roughly 30 to 35 oil refiners, excluding integrated majors.
For inclusion in the fund, firms must generate at least 50% of revenues from crude oil refining and production of petrochemicals. Holdings are weighted using a modified market capitalization weighting, limiting individual holdings to a maximum portfolio weight of 8%. CRAK has climbed 48.43% in 2026, with inflows of approximately $100 million.
For more news, information, and analysis visit the Thematic Investing Content Hub.
vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for OILT, AMLP, and ENFR for which it receives an index licensing fee. However, OILT, AMLP, and ENFR are not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of OILT, AMLP, or ENFR.
Aureus Asset Management LLC acquired a new stake in Baker Hughes Company (NASDAQ:BKR – Free Report) during the first quarter, according to its most recent filing with the SEC. The firm acquired 27,998 shares of the company’s stock, valued at approximately $1,709,000.
A number of other institutional investors and hedge funds also recently made changes to their positions in BKR. Pinion Investment Advisors LLC bought a new position in shares of Baker Hughes in the 4th quarter valued at about $778,000. OP Asset Management Ltd acquired a new position in Baker Hughes in the first quarter valued at approximately $6,049,000. USA Financial Formulas acquired a new position in Baker Hughes in the fourth quarter valued at approximately $830,000. Ninety One UK Ltd boosted its stake in Baker Hughes by 28.6% in the fourth quarter. Ninety One UK Ltd now owns 469,329 shares of the company’s stock valued at $21,373,000 after acquiring an additional 104,428 shares during the last quarter. Finally, Mirae Asset Global Investments Co. Ltd. grew its holdings in Baker Hughes by 17.7% during the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 484,310 shares of the company’s stock worth $22,055,000 after acquiring an additional 72,714 shares during the period. Institutional investors own 92.06% of the company’s stock.
Wall Street Analyst Weigh In A number of research analysts have recently weighed in on the company. Stifel Nicolaus increased their price target on Baker Hughes from $63.00 to $74.00 and gave the company a “buy” rating in a research note on Monday, April 27th. Royal Bank Of Canada upped their price objective on Baker Hughes from $68.00 to $71.00 and gave the company an “outperform” rating in a report on Monday, April 27th. Citigroup increased their target price on Baker Hughes from $74.00 to $75.00 and gave the company a “buy” rating in a research note on Wednesday, July 8th. BMO Capital Markets raised their target price on Baker Hughes from $70.00 to $80.00 and gave the stock an “outperform” rating in a report on Monday, April 27th. Finally, Barclays decreased their target price on Baker Hughes from $74.00 to $72.00 and set an “equal weight” rating for the company in a research report on Thursday, July 16th. Eighteen research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $70.00.
View Our Latest Stock Analysis on BKR
Baker Hughes Trading Up 0.4% NASDAQ BKR opened at $56.60 on Thursday. Baker Hughes Company has a one year low of $41.15 and a one year high of $70.41. The company has a debt-to-equity ratio of 0.79, a current ratio of 2.13 and a quick ratio of 1.77. The firm has a market cap of $56.15 billion, a P/E ratio of 18.08, a P/E/G ratio of 2.35 and a beta of 0.96. The stock’s 50-day moving average is $60.31 and its 200-day moving average is $59.85.
Baker Hughes (NASDAQ:BKR – Get Free Report) last posted its quarterly earnings data on Thursday, April 23rd. The company reported $0.58 EPS for the quarter, beating the consensus estimate of $0.49 by $0.09. The business had revenue of $6.59 billion for the quarter, compared to analysts’ expectations of $6.71 billion. Baker Hughes had a net margin of 11.17% and a return on equity of 14.17%. The firm’s revenue was up 2.5% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.51 EPS. Sell-side analysts anticipate that Baker Hughes Company will post 2.26 earnings per share for the current fiscal year.
Insider Buying and Selling In related news, CEO Lorenzo Simonelli sold 181,411 shares of the stock in a transaction on Monday, June 22nd. The shares were sold at an average price of $58.43, for a total transaction of $10,599,844.73. Following the completion of the transaction, the chief executive officer owned 703,444 shares in the company, valued at approximately $41,102,232.92. This represents a 20.50% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Rebecca L. Charlton sold 5,088 shares of the stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $64.22, for a total transaction of $326,751.36. Following the transaction, the chief accounting officer owned 15,997 shares of the company’s stock, valued at approximately $1,027,327.34. This represents a 24.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 367,910 shares of company stock valued at $22,420,797. Insiders own 0.19% of the company’s stock.
Baker Hughes Company Profile (Free Report)
Baker Hughes is an energy technology company that provides a broad portfolio of products, services and digital solutions for the oil and gas and industrial markets. Its offerings span oilfield services and equipment — including drilling, evaluation, completion and production technologies — as well as turbomachinery, compressors and related process equipment used in midstream and downstream operations. The company also supplies aftermarket services, field support and integrated solutions designed to improve asset performance and uptime across the energy value chain.
The firm’s roots trace back to the merger of Baker International and Hughes Tool Company, and more recently it combined with GE’s oil and gas business in 2017 to form Baker Hughes, a GE company (BHGE); subsequent changes in ownership restored Baker Hughes as an independent publicly traded company.
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Key Takeaways Baker Hughes has beaten earnings estimates in four straight quarters, averaging a 14.61% surprise.Q2 EPS is pegged at 51 cents and revenue at $6.49B, down 19.1% and 6.1% year over year, respectively.Higher oil prices and the Iran war are expected to have supported demand for Baker Hughes' services. Baker Hughes (BKR - Free Report) is set to report second-quarter 2026 results on July 26.
In the last reported quarter, its earnings of 58 cents per share beat the Zacks Consensus Estimate of 50 cents, driven by solid performance from the Industrial & Energy Technology business segment. The oilfield service player’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 14.61%. This is depicted in the graph below:
Estimate Trend for BKRThe Zacks Consensus Estimate for second-quarter earnings per share of 51 cents has been revised upward over the past seven days. The estimated figure indicates a 19.1% decline from the prior-year reported number.
The Zacks Consensus Estimate for revenues of $6.49 billion implies a 6.1% decrease from the year-ago recorded figure.
Factors to Consider for BKRTo have an idea of how oil prices behaved in the June quarter, let's analyze the commodity prices from the data provided by the U.S. Energy Information Administration (“EIA”). The average Cushing, OK, WTI spot prices for April, May and June of this year were $100.32 per barrel, $102.13 per barrel and $84.81 per barrel, respectively, per EIA data. Commodity prices were $63.54 per barrel, $62.17 per barrel and $68.17 per barrel, respectively, in April, May and June of 2025, according to the EIA.
A constructive oil-price backdrop, driven by the Iran war, aided the exploration and production businesses in the June quarter of this year. This, in turn, is expected to have backed demand for Baker Hughes’ oilfield services.
Earnings WhispersOur proven model indicates an earnings beat for BKR this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is the case here, as you will see below.
Earnings ESP: BKR has an Earnings ESP of +1.84%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: BKR currently carries a Zacks Rank #3.
Other Stocks to ConsiderHere are some other stocks that you may want to consider, as these too have the right combination of elements to post an earnings beat this reporting cycle.
NOV Inc. (NOV - Free Report) currently has an Earnings ESP of +19.69% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
NOV is scheduled to release second-quarter earnings on July 28. The Zacks Consensus Estimate for NOV’s earnings is pegged at 16 cents per share, implying a 44.8% decrease from the prior-year reported figure.
Enbridge Inc. (ENB - Free Report) currently has an Earnings ESP of +2.27% and a Zacks Rank #3.
Enbridge is scheduled to release second-quarter earnings on July 31. The Zacks Consensus Estimate for ENB’s earnings is pegged at 44 cents per share, indicating a 6.4% decline from the prior-year reported figure.
Cactus, Inc. (WHD - Free Report) currently has an Earnings ESP of +7.04% and a Zacks Rank #2.
WHD is scheduled to release second-quarter earnings on July 29. The Zacks Consensus Estimate for Cactus’ earnings is pegged at 71 cents per share, implying a 7.58% increase from the prior-year reported figure.
Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.
The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.
The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.
The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.
Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.
In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.
Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.
Should You Consider Baker Hughes?Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. Baker Hughes (BKR - Free Report) earns a #3 (Hold) right now and its Most Accurate Estimate sits at $0.52 a share, just four days from its upcoming earnings release on July 26, 2026.
By taking the percentage difference between the $0.52 Most Accurate Estimate and the $0.51 Zacks Consensus Estimate, Baker Hughes has an Earnings ESP of +1.84%. Investors should also know that BKR is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
BKR is part of a big group of Oils and Energy stocks that boast a positive ESP, and investors may want to take a look at Halliburton (HAL - Free Report) as well.
Halliburton is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on October 20, 2026. HAL's Most Accurate Estimate sits at $0.61 a share 90 days from its next earnings release.
For Halliburton, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.60 is +1.18%.
Because both stocks hold a positive Earnings ESP, BKR and HAL could potentially post earnings beats in their next reports.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
In its upcoming report, Baker Hughes (BKR - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $0.51 per share, reflecting a decline of 19.1% compared to the same period last year. Revenues are forecasted to be $6.49 billion, representing a year-over-year decrease of 6.1%.
The consensus EPS estimate for the quarter has undergone a downward revision of 2.5% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
With that in mind, let's delve into the average projections of some Baker Hughes metrics that are commonly tracked and projected by analysts on Wall Street.
The combined assessment of analysts suggests that 'Revenue- Oilfield Services & Equipment' will likely reach $3.23 billion. The estimate indicates a change of -10.7% from the prior-year quarter.
Analysts expect 'Revenue- Industrial & Energy Technology' to come in at $3.26 billion. The estimate points to a change of -1.1% from the year-ago quarter.
It is projected by analysts that the 'Revenue- Gas Technology Services' will reach $820.21 million. The estimate suggests a change of +9.1% year over year.
The consensus among analysts is that 'Revenue- Climate Technology Solutions' will reach $216.18 million. The estimate indicates a year-over-year change of +38.6%.
According to the collective judgment of analysts, 'Revenue- Oilfield Services & Equipment- North America' should come in at $936.27 million. The estimate indicates a change of +0.9% from the prior-year quarter.
Analysts forecast 'Revenue- Oilfield Services & Equipment- International' to reach $2.29 billion. The estimate indicates a year-over-year change of -14.9%.
The collective assessment of analysts points to an estimated 'Revenue- Oilfield Services & Equipment- International- Middle East/Asia' of $1.09 billion. The estimate points to a change of -22.1% from the year-ago quarter.
The average prediction of analysts places 'Revenue- Oilfield Services & Equipment- International- Europe/CIS/Sub-Saharan Africa' at $567.14 million. The estimate suggests a change of -13.2% year over year.
Analysts' assessment points toward 'Orders - Industrial & Energy Technology - Gas Technology Services' reaching $918.38 million. The estimate compares to the year-ago value of $986.00 million.
Analysts predict that the 'Orders - Climate Technology Solutions' will reach $292.21 million. The estimate is in contrast to the year-ago figure of $923.00 million.
Based on the collective assessment of analysts, 'Orders - Industrial & Energy Technology' should arrive at $3.66 billion. The estimate is in contrast to the year-ago figure of $3.53 billion.
The consensus estimate for 'Orders - Industrial & Energy Technology - Gas Technology Equipment' stands at $1.64 billion. The estimate is in contrast to the year-ago figure of $781.00 million.
View all Key Company Metrics for Baker Hughes here>>>
Over the past month, shares of Baker Hughes have returned -6.8% versus the Zacks S&P 500 composite's -0.6% change. Currently, BKR carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
We are now at the beginning of the second-quarter earnings season, with the energy giants yet to report results. Since the energy business environment was favorable in the June quarter, thanks to high commodity prices, driven by the Iran war, Baker Hughes (BKR - Free Report) , Chevron Corporation (CVX - Free Report) and Cactus, Inc. (WHD - Free Report) are likely to report better-than-expected earnings.
High Q2 Oil PricesTo have an idea of how oil prices behaved in the June quarter, let's analyze the commodity prices from the data provided by the U.S. Energy Information Administration (“EIA”). The average Cushing, OK, WTI spot prices for April, May and June of this year were $100.32 per barrel, $102.13 per barrel and $84.81 per barrel, respectively, per EIA data. Commodity prices were $63.54 per barrel, $62.17 per barrel and $68.17 per barrel, respectively, in April, May and June of 2025, according to the EIA.
Importantly, a constructive oil-price backdrop, driven by the Iran war, is expected to have aided the exploration and production businesses in the June quarter of this year. This, in turn, might have aided demand for oilfield services and drilling activities. However, the high crude price is likely to have weighed on refiners in the second quarter, since they buy raw crude to produce final products.
How to Pick the Right Stocks?Given the backdrop, it is by no means an easy task for investors to arrive at picks that have the potential to deliver better-than-expected earnings from the vast universe of energy stocks.
While there is no fool-proof method of picking outperformers, our proprietary methodology — the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — helps identify stocks that have high chances of delivering a surprise in their upcoming earnings announcement. Our research shows that for stocks with this combination, the chance of an earnings surprise is as high as 70%.
The Earnings ESP shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Our ChoicesBaker Hughes, a leading oilfield service player, is likely to have benefited from favorable commodity prices.
BKR has an Earnings ESP of +1.34% and currently carries a Zacks Rank #3. It is scheduled to release second-quarter results on July 26. You can see the complete list of today’s Zacks #1 Rank stocks here.
Chevron is a large-cap energy player with an integrated business model. The firm is scheduled to report earnings on July 31, has an Earnings ESP of +1.84% and a Zacks Rank of 3.
Cactus is a leading manufacturer and provider of engineered pressure-control and spoolable-pipe technologies. The company is likely to have gained from favorable oil prices. The firm, scheduled to release second-quarter earnings on July 29, has an Earnings ESP of +7.04% and a Zacks Rank #3.
Drilling rigs operate at sunset in Midland, Texas, U.S., February 13, 2019. Picture taken February 13, 2019. REUTERS/Nick Oxford Purchase Licensing Rights, opens new tab
CompaniesNEW YORK, July 17 (Reuters) - U.S. energy firms this week added rigs for a fifth week in a row for the first time since early June, boosting the total count to its highest since April 2025, energy services firm Baker Hughes (BKR.O), opens new tab said in its closely followed report on Friday.
The total rig count, an early indicator of future output, rose by seven to 588 in the week to July 17. , , , (USGSRC=ECI), opens new tab, (USOIRC=ECI), opens new tab
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Baker Hughes said this week's increase puts the total rig count up 44 rigs, or 8% above this time last year.
Baker Hughes said oil rigs rose by seven to 452 this week, the highest since May 2025, while gas rigs held at 126 and other miscellaneous rigs held at 10.
The oil and gas rig count declined by 7% in 2025, 5% in 2024, and 20% in 2023 as lower U.S. oil prices prompted energy firms to focus more on boosting shareholder returns and paying down debt rather than increasing output.
But now with spot U.S. West Texas Intermediate (WTI) crude prices expected to rise in 2026 due to supply disruptions from the Iran war after declining in 2023, 2024, and 2025, the U.S. Energy Information Administration (EIA) projected crude output will rise from a record 13.6 million barrels per day (bpd) in 2025 to 13.8 million bpd in 2026.
On the gas side, the EIA projected output will jump from a record 107.7 billion cubic feet per day (bcfd) in 2025 to 111.3 bcfd in 2026 as demand for the fuel rises to produce electricity for power-hungry data centers and for export as liquefied natural gas (LNG).
Reporting by Scott DiSavino; Editing by Daniel Wallis
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Covers the North American power and natural gas markets.
Represents a major milestone in Baker Hughes’ ongoing portfolio management strategy to become a higher-value, leading industrialized energy solutions companyExpect $325 million in annualized cost synergies by year three after close; commercial synergy opportunities represent additional upsideChart Industries will be a third operating segment, reflecting the scale and strategic importance of its differentiated capabilities
HOUSTON and LONDON, July 16, 2026 (GLOBE NEWSWIRE) -- Baker Hughes Company (NASDAQ: BKR) (“Baker Hughes” or “the Company”) today announced the successful completion of its acquisition of Chart Industries, Inc. (NYSE: GTLS) (“Chart”). This strategic transaction is a major milestone in Baker Hughes’ transformation into a higher-value, leading industrialized energy solutions company. The acquisition is expected to enhance Baker Hughes’ ability to deliver durable earnings and cash flow, driven by an expanded industrial portfolio and enhanced recurring aftermarket services.
“Chart’s thermal management solutions bring complementary capabilities and aftermarket service offerings that accelerate our portfolio strategy,” said Baker Hughes Chairman and Chief Executive Officer Lorenzo Simonelli. “Together, we will expand the solutions we deliver across a broader range of energy and industrial markets and create greater value for customers and shareholders. We welcome our new colleagues to Baker Hughes and look forward to working with them to deliver disciplined execution and maximize synergies as we move forward.”
Baker Hughes Chief Infrastructure & Performance Officer Jim Apostolides has been appointed senior vice president to lead the Chart segment. Since July 2025, Apostolides has led a seamless and effective integration program to support strategic growth and operational synergy readiness. Apostolides has more than 25 years of operational and multi-industry leadership, previously serving as senior vice president of Enterprise Operational Excellence for Baker Hughes since 2020.
“Congratulations to Jim on his well-deserved appointment as segment leader,” Simonelli added. “Jim’s business rigor, demonstrated through decades of global supply chain experience and operational leadership of large complex facilities around the world, makes him well-suited to lead implementation of the Baker Hughes Business System within Chart. We look forward to his leadership and continued success, quickly delivering value for our customers and shareholders as one company.”
Chart will operate as a new reporting segment within Baker Hughes, reflecting the scale and strategic importance of its differentiated capabilities in air and gas handling, thermal management, and lifecycle services. The segment structure is intended to preserve Chart’s commercial and operational focus while enabling full integration and synergy capture across Baker Hughes. Chart reported $4.3 billion in revenue for fiscal year 2025 and currently serves customers in more than 50 countries, spanning sectors including gas infrastructure, nuclear, data centers, carbon capture and storage, space, geothermal and other high-growth industrial markets.
Baker Hughes has launched a comprehensive integration program, leveraging its Business System to support operational alignment. The focus is on harmonizing product and technology platforms, engineering and commercial practices, and lifecycle and digital services. Early synergy capture in supply chain, functional support, and manufacturing is a priority, with a target of $325 million in annualized cost synergies within three years.
The acquisition of Chart marks a significant step in Baker Hughes’ portfolio optimization and growth strategy. By streamlining non-core businesses and expanding into industrial and lifecycle-driven markets, Baker Hughes is committed to sustainable, long-term growth, improved capital efficiency, and enhanced value for shareholders.
The Baker Hughes Board will continue its comprehensive evaluation, guided by progress in integration and operational execution. Baker Hughes remains committed to disciplined capital allocation, targeting a net leverage range of 1.0-1.5x within 24 months.
This news release (and oral statements made regarding the subjects of this release) may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (each a “forward-looking statement”). All statements, other than historical facts, including statements regarding the presentation of Baker Hughes’ operations in future reports and any assumptions underlying any of the foregoing, are forward-looking statements. Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words “may,” “will,” “should,” “potential,” “intend,” “expect,” “would,” “seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “could,” “project,” “predict,” “continue,” “target,” “goal,” or other similar words or expressions. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Factors that could cause actual results to differ include, but are not limited to: Baker Hughes’ indebtedness, including the indebtedness Baker Hughes has incurred in connection with the transaction with Chart and the need to generate sufficient cash flows to service and repay such debt; Baker Hughes’ ability to meet expectations regarding the accounting and tax treatments of the transaction with Chart; the possibility that Baker Hughes may be unable to achieve expected synergies and operating efficiencies within the expected time-frames or at all and to successfully integrate Chart’s operations with those of Baker Hughes; that such integration may be more difficult, time-consuming, or costly than expected; that operating costs, customer loss, and business disruption (including, without limitation, difficulties in maintaining relationships with employees, customers, or suppliers) may be greater than expected following the transaction; the retention of certain key employees of Chart may be difficult; that Baker Hughes and Chart are subject to intense competition and increased competition is expected in the future; and general economic conditions that are less favorable than expected. Other important factors that could cause actual results to differ materially from such plans, estimates, or expectations include, among others, the risk factors identified in the “Risk Factors” section of Part I of Item 1A of Baker Hughes’ Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 5, 2026, and those set forth from time-to-time in other filings by Baker Hughes with the SEC. These documents are available through Baker Hughes’ website or through the SEC’s Electronic Data Gathering and Analysis Retrieval (EDGAR) system at http://www.sec.gov.
Any forward-looking statements speak only as of the date of this news release. Baker Hughes does not undertake any obligation to update any forward-looking statements, whether as a result of new information or developments, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.
About Baker Hughes
Baker Hughes (NASDAQ: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward – making it safer, cleaner and more efficient for people and the planet. Visit us at bakerhughes.com.
, /PRNewswire/ -- S&P SmallCap 600 constituent BrightSpring Health Services Inc. (NASD: BTSG) will replace Chart Industries Inc. (NYSE: GTLS) in the S&P MidCap 400, and Karman Holdings Inc. (NYSE: KRMN) will replace BrightSpring Health Services in the S&P SmallCap 600 effective prior to the opening of trading on Friday, July 17. S&P 500 constituent Baker Hughes Co. (NASD: BKR) is to acquire Chart Industries in a deal expected to close July 16, pending final closing conditions.
Following is a summary of the changes that will take place prior to the open of trading on the effective date:
Effective Date
Index Name
Action
Company Name
Ticker
GICS Sector
July 17, 2026
S&P MidCap 400
Addition
BrightSpring Health Services
BTSG
Health Care
July 17, 2026
S&P MidCap 400
Deletion
Chart Industries
GTLS
Industrials
July 17, 2026
S&P SmallCap 600
Addition
Karman Holdings
KRMN
Industrials
July 17, 2026
S&P SmallCap 600
Deletion
BrightSpring Health Services
BTSG
Health Care
ABOUT S&P DOW JONES INDICES
S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets.
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The AI buildout has a power problem, and most investors are still looking in the wrong place for the fix. Nuclear gets the headlines. Solar and batteries get the subsidies. But the fastest, cheapest new power source hitting the grid right now is one most portfolios don't own at all: geothermal.
That gap is exactly why it matters. Dylan Jovine, CEO of Behind the Markets, argues that every major tech cycle has been driven by an energy breakthrough, and this one is no different. He's laid out the full case in his dedicated geothermal energy report, and the short version is that data center demand is outpacing the grid, with the companies solving that bottleneck first positioned to capture outsized value before Wall Street catches up.
Get Fervo Energy alerts:
Why the AI Race Is Really an Energy RaceHyperscalers need power now, not in a decade. Nuclear plants can cost upward of $14 billion and take years to permit, which puts them years away from meeting today's data center load. Geothermal energy projects, by contrast, can come online for a fraction of that cost and in a fraction of the time.
Jovine frames the stakes in geopolitical terms, too. China has built a commanding lead in battery and clean energy manufacturing, while the United States still holds the edge in oil and gas infrastructure built up over more than a century. Geothermal, in his view, is one of the few energy categories still up for grabs, which is exactly why the companies moving fastest right now matter more than the headlines suggest.
That math is why Alphabet NASDAQ: GOOGL, NVIDIA NASDAQ: NVDA and Berkshire Hathaway NYSE: BRK.B have been signing multibillion-dollar geothermal partnerships with little public attention. The technology draws on heat from the earth's core, a resource that doesn't fluctuate with commodity prices and produces a cleaner emissions profile than coal or gas. It just hasn't had its moment in the headlines yet.
Fervo Energy Locks in Billions Before It Earns a DimeFervo Energy Today
$24.97 -0.89 (-3.44%)
As of 01:21 PM Eastern
52-Week Range$23.10▼
$42.65Price Target$46.25
Fervo Energy NASDAQ: FRVO went public earlier this year and, like many fresh IPOs, has spent recent months working through post-listing volatility as early lockup-related selling pressure works its way out of the stock. That volatility says little about the underlying business.
What stands out is the customer list. Fervo has already secured contracts with Google and other major technology players tied to its Cape Station project in Utah, with additional plants expected to come online through 2026 and 2027. Jovine expects those contracts to begin flowing through the income statement in the back half of 2026, which he argues could force a re-rating as the stock moves from a story to one backed by reported earnings. He puts the window for that shift at 12 to 18 months, the timeline he sees as most worth tracking.
Ormat Technologies Shows What Fervo Could BecomeOrmat Technologies Today
ORA
Ormat Technologies
$108.67 +1.86 (+1.74%)
As of 01:40 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$84.13▼
$146.39Dividend Yield0.44%
P/E Ratio52.68
Price Target$131.67
Ormat Technologies NYSE: ORA has been building geothermal plants for years, and its results offer a preview of where a maturing operator can land. The company has been growing its top line by roughly 50% and its bottom line by about 30%, evidence that hyperscaler demand for geothermal power is translating into real financial performance, not just headlines.
Shares have pulled back from their 2026 highs, which could make for a more attractive entry for investors who missed the initial run.
Jovine sees Ormat's bigger, more established hyperscaler contracts as a preview of where Fervo could land in a few years, and views scale and a multi-decade track record as Ormat's real edge when hyperscalers are choosing long-term power partners.
Baker Hughes Sells the Equipment Behind the BuildoutBaker Hughes Today
BKR
Baker Hughes
$57.32 -0.34 (-0.59%)
As of 01:40 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$38.37▼
$70.41Dividend Yield1.60%
P/E Ratio18.32
Price Target$70.09
Not every way to invest in geothermal means picking the operator. Baker Hughes NASDAQ: BKR supplies the drilling technology and equipment that companies like Fervo rely on to build new plants, giving it exposure to the entire sector's growth rather than any single project's execution risk.
Shares pulled back sharply this year alongside a broader rotation out of momentum sectors, and Jovine argues the stock now trades at a discount to its underlying cash flow. He frames it as a classic value setup, a picks-and-shovels position in a growing niche trading below what the opportunity is worth.
What Investors Should Watch NextGeothermal doesn't need to replace nuclear or solar to matter. It just needs to keep winning contracts every time a hyperscaler needs power fast and cheap. The risk is execution: drilling projects can run into delays, and newer entrants like Fervo still carry more uncertainty than established names like Ormat. It's also worth remembering this isn't a winner-take-all race. Demand for power is so large right now that multiple energy sources, from geothermal to natural gas to solar, are all finding buyers at once.
The upside is that almost nobody is pricing this in yet. Stay focused on how quickly these contracts convert into reported revenue, because that's what will ultimately move these stocks.
Should You Invest $1,000 in Fervo Energy Right Now?Before you consider Fervo Energy, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Fervo Energy wasn't on the list.
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The logo of energy services firm Baker Hughes is displayed during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. REUTERS/Chris Helgren/File Photo Purchase Licensing Rights, opens new tab
SummaryCompaniesTotal oil and gas rig count rose by one to 581, highest since May 2025Oil rigs held at 445 and gas rigs held at 126, Baker Hughes saidTotal rig count was up 44 rigs, or 8%, from a year earlierNEW YORK, July 10 (Reuters) - U.S. energy firms this week added rigs for a fourth week in a row for the first time since early June, energy services firm Baker Hughes (BKR.O), opens new tab said in its closely followed report on Friday.
The report, which Baker Hughes usually releases around 1 p.m. EDT (1700 GMT) on Fridays, was delayed by around 49 minutes. Officials at Baker Hughes had no comment on the reason for the delay.
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The total oil and gas rig count, an early indicator of future output, rose by one to 581 in the week to July 10, its highest since May 2025. , , , (USGSRC=ECI), opens new tab, (USOIRC=ECI), opens new tab
Baker Hughes said this week's increase put the total rig count up 44 rigs, or 8% above this time last year.
Baker Hughes said oil rigs held steady at 445 and gas rigs held at 126 this week, while other miscellaneous rigs rose by one to 10.
In the Eagle Ford shale in South Texas, the rig count rose by three to 47, the highest since April 2025.
In Texas, the nation's biggest oil- and gas-producing state, the rig count rose by one to 272, the most since May 2025.
The oil and gas rig count declined by 7% in 2025, 5% in 2024, and 20% in 2023 as lower U.S. oil prices prompted energy firms to focus more on boosting shareholder returns and paying down debt rather than increasing output.
But now with spot U.S. West Texas Intermediate (WTI) crude prices expected to rise in 2026 due to supply disruptions from the Iran war after declining in 2023, 2024, and 2025, the U.S. Energy Information Administration (EIA) projected crude output will rise from a record 13.6 million barrels per day (bpd) in 2025 to 13.8 million bpd in 2026.
On the gas side, EIA projected output will jump from a record 107.7 billion cubic feet per day (bcfd) in 2025 to 111.3 bcfd in 2026 as demand for the fuel rises to produce electricity for power-hungry data centers and for export as liquefied natural gas (LNG).
Reporting by Scott DiSavino; Editing by Mark Porter and Chizu Nomiyama
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Covers the North American power and natural gas markets.
The logo of energy services firm Baker Hughes is displayed during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. REUTERS/Chris Helgren/File Photo Purchase Licensing Rights, opens new tab
CompaniesBRUSSELS, July 10 (Reuters) - U.S. oilfield services firm Baker Hughes BKR.O, opens new tab secured EU antitrust approval on Friday for its of Chart Industries GTLS.N, opens new tab after agreeing to sell a Chart business.
Baker Hughes announced the deal in July last year to boost its presence in industrial technology servicing liquefied natural gas and data centres and to leverage its industrial and energy technology portfolio.
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The European Commission, which acts as the EU competition enforcer, said concessions offered by Baker Hughes addressed its concerns about the company's ability and incentive to favour Chart's LNG business.
It said the companies will divest Chart's proprietary process technology and its small-scale process technology business and will also ensure the interoperability of their equipment with third parties' LNG equipment. The remedies will be valid for 10 years.
Chart makes industrial equipment such as valves and measurement technology for gas and liquid molecule handling and has 65 manufacturing locations with more than 50 service centres globally.
Reporting by Foo Yun Chee
Our Standards: The Thomson Reuters Trust Principles., opens new tab
An agenda-setting and market-moving journalist, Foo Yun Chee is a 21-year veteran at Reuters. Her stories on high profile mergers have pushed up the European telecoms index, lifted companies' shares and helped investors decide on their next move. Her knowledge and experience of European antitrust laws and developments helped her break stories on Microsoft, Google, Amazon, Meta and Apple, numerous market-moving mergers and antitrust investigations. She has previously reported on Greek politics and companies, when Greece's entry into the eurozone meant it punched above its weight on the international stage, as well as on Dutch corporate giants and the quirks of Dutch society and culture that never fail to charm readers.
THE WOODLANDS, Texas--(BUSINESS WIRE)--Kodiak Gas Services, Inc. (NYSE: KGS) (“Kodiak”), a leading provider of critical energy infrastructure, and Baker Hughes (NASDAQ: BKR), an energy technology company, announced a multi-year strategic agreement under which Baker Hughes will provide power generation solutions to support Kodiak's expanding energy infrastructure initiatives. The agreement is anchored by an initial equipment award that will enable approximately 1 gigawatt (GW) of reliable, scala.
Baker Hughes (BKR) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near term.
Key Takeaways Baker Hughes signed a multi-year agreement with Kodiak Gas to supply power generation technologies.The initial award supports about 1 GW of power capacity by 2030, with expansion potential to 1.8 GW.The partnership includes equipment, training, spare parts support and a long-term service agreement. Baker Hughes Company (BKR - Free Report) has strengthened its position in the rapidly growing power infrastructure market by signing a multi-year strategic agreement with Kodiak Gas Services, Inc. (KGS - Free Report) . Under the agreement, Baker Hughes will supply power generation technologies to support KGS' expanding energy infrastructure projects, beginning with an equipment award capable of delivering approximately 1 gigawatt (GW) of power generation capacity by 2030.
The broader framework also provides a pathway to expand capacity to 1.8 GW over time, paving the way for enhanced cash flow generation. The initial order includes NovaLT 16 gas turbines, Frame 5 gas turbines and BRUSH generators, highlighting the strength of BKR’s diversified power technology portfolio.
The agreement positions Baker Hughes to benefit from surging electricity demand driven by the rapid expansion of artificial intelligence (AI), cloud computing and data centers. KGS plans to deploy these technologies in behind-the-meter projects across key U.S. markets where grid constraints are increasing demand for flexible and quickly deployable power solutions. Beyond commercial collaboration, the partnership includes technical training, spare parts support and a long-term service agreement, enabling BKR to capture higher margins throughout the equipment lifecycle.
The agreement reinforces Baker Hughes' strategy of expanding beyond traditional oilfield services into energy infrastructure and power solutions. The flexible multi-year framework enables capacity additions to align with rising data center power demand while supporting the gradual execution of new energy infrastructure projects. With the rapid expansion of digital infrastructure creating a critical need for reliable power, BKR is well-positioned to capture growing demand for gas turbine technology. This trend allows the company to strengthen its business model while generating stronger cash flow from both equipment sales and recurring service streams, increasing its overall appeal to investors.
Baker Hughes and Kodiak Gas carry a Zacks Rank #3 (Hold) each at present.
Some better-ranked stocks in the energy sector are National Energy Services Reunited Corp. (NESR - Free Report) and Cenovus Energy Inc. (CVE - Free Report) . NESR and CVE currently sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Operating across the Middle East, North Africa and Asia Pacific, National Energy Services Reunited empowers producers with integrated drilling and reservoir services to maximize energy output more efficiently. As rising global electricity demand drives the need for reliable natural gas, NESR is well-positioned to capitalize on increased upstream infrastructure investment.
Cenovus leverages its integrated upstream and downstream operations across Canada and the United States to generate cash flow. CVE is investing in Christina Lake North, Sunrise, West White Rose and Foster Creek optimization projects to increase production and enhance cash flow.
Contracts awarded by Bechtel and Cheniere to supply primary liquefaction equipment, including main refrigerant compressors and gas turbines, for the first phase of the Sabine Pass Expansion ProjectTechnology packages support an additional nameplate capacity of over 6 million tons per annum (MTPA) for Train 7 and boil-off gas re-liquefaction unitServices award provides fleet-wide gas turbine upgrades to enhance power, driving LNG production
HOUSTON and LONDON, July 09, 2026 (GLOBE NEWSWIRE) -- Baker Hughes (NASDAQ: BKR), an energy technology company, announced Thursday three substantial awards for Cheniere’s Sabine Pass LNG facility in Cameron Parish, Louisiana. The awards, booked in the second quarter, comprise orders from Bechtel Energy Inc. (Bechtel) and Cheniere to supply liquefaction equipment for Train 7 and for a boil-off gas re-liquefaction unit, as well as an award for fleet-wide gas turbine technology upgrades.
The equipment orders for Phase 1 of the Sabine Pass expansion project include seven PGT25+ G4 gas turbines driving 15 centrifugal compressors, enabling approximately 6 million tons per annum (MTPA) of additional LNG production capacity.
Additionally, Baker Hughes will deliver upgrades across the entire fleet of installed aeroderivative PGT25+ G4 gas turbines at the Sabine Pass facility over a four-year period. These upgrades will help to increase the power output of the turbines to enhance LNG production capabilities, helping deliver efficiency across the facility’s current approximate 30 MTPA capacity. These upgrades, together with Train 7 and the boil-off gas re-liquefaction unit, are expected to add over 6 MTPA of capacity at Sabine Pass.
The expansion and upgrade of the Sabine Pass LNG terminal support growing global demand for natural gas in energy and industrial applications, helping to deliver affordable energy supply.
“These comprehensive technology solutions, from advanced liquefaction equipment to lifecycle services, help our customers expand LNG production and meet growing energy demand,” said Baker Hughes Chairman and CEO Lorenzo Simonelli. “Our differentiated portfolio of equipment, technologies and services enables us to deliver comprehensive solutions that help customers accelerate project execution, enhance reliability and unlock long-term value.”
“We are pleased to continue our decades-long collaboration with Baker Hughes, a key partner in the development of Sabine Pass into one of the largest LNG facilities in the world,” said Cheniere Chairman, President and CEO Jack Fusco. “These equipment orders, lifecycle services and technology upgrades are critical to facilitate further optimization and efficiency upgrades throughout the Cheniere platform.”
About Baker Hughes
Baker Hughes (NASDAQ: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward – making it safer, cleaner and more efficient for people and the planet. Visit us at bakerhughes.com.
This strategic partnership aims to enhance Kodiak’s energy infrastructure initiatives, providing scalable power generation solutions to meet increasing demand.
• Kodiak Gas Services shares are advancing steadily. Why is KGS stock trading higher?
Kodiak Gas Services entered a multi-year agreement with Baker Hughes, which includes an initial order for gas turbines and generators expected to deliver approximately one gigawatt of power capacity by 2030.
The initial order includes NovaLT16 and Frame 5 gas turbines, along with BRUSH generators, to support growing power demand from data centers and energy infrastructure.
The equipment will be deployed in key U.S. markets to provide flexible behind-the-meter power amid rising electricity demand and grid constraints.
This collaboration is designed to support the growing energy infrastructure needs, particularly for data centers, highlighting the importance of flexible and efficient power solutions.
KGS Technical Outlook: Key Levels and MomentumFrom a technical perspective, Kodiak Gas Services has shown a strong performance over the past year, with a notable 12-month gain of 109.58%. Currently, the stock is trading about 1.2% above its 20-day simple moving average (SMA) of $69.88 and 0.8% above its 50-day SMA of $70.16. The 200-day SMA, at $50.17, indicates a significant bullish trend, with the stock trading 41% above this level.
The Relative Strength Index (RSI) currently sits at 45.90, indicating a neutral momentum phase, suggesting that the stock is neither overbought nor oversold at this time. This level of RSI reflects a balanced market sentiment, while the moving averages indicate a potential bearish crossover with the 20-day SMA below the 50-day SMA.
Key Resistance: $77 — Nearby level where rebounds can stall. Key Support: $65 — Nearby level where buyers previously stepped in. KGS Earnings Preview And Analyst Price TargetsKodiak Gas Services is slated to provide its next financial update on Aug. 5 (estimated).
EPS Estimate: 75 cents (Up from 43 cents) Revenue Estimate: $385.56 million (Up from $322.84 million) Valuation: P/E of 89.5x (Indicates premium valuation) Analyst Consensus & Recent Actions: The stock carries a Buy rating with a consensus price target of $59.62. Recent analyst moves include:
Barclays: Overweight (Lowers target to $72 on July 8) Jefferies: Initiated with Buy (target $79 on June 4) Wells Fargo: Initiated with Overweight (Target $93 on May 27) How KGS Ranks On Momentum and ValuationBelow is the Benzinga Edge scorecard for Kodiak Gas Services, highlighting its strengths and weaknesses compared to the broader market:
Momentum: Bullish (Score: 94.96) — Stock is outperforming the broader market. Value: Weak (Score: 43.35) — Trading at a steep premium relative to peers. The Verdict: Kodiak Gas Services’ Benzinga Edge signal reveals a momentum-driven story, indicating strong performance in the market despite a weak value score. This suggests that while the stock is currently performing well, it may be trading at a premium compared to its peers.
KGS ETF Exposure and Passive Fund Flow Risk WisdomTree US SmallCap Dividend Fund (NYSE:DES): 1.03% Weight Significance: Because Kodiak Gas Services carries significant weight in this fund, any significant inflows or outflows will likely force automatic buying or selling of the stock.
KGS Stock Trades on WednesdayKGS Stock Price Activity: Kodiak Gas Services shares were up 1.47% at $68.01 at publication on Wednesday, according to Benzinga Pro data.
Photo via Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Strategic agreement establishes framework for deployment of up to 1.8 GW of power generation capacity Initial major award includes approximately 1 GW of gas turbines and generators delivered by 2030 to support scalable, behind-the-meter power solutions
HOUSTON and LONDON, July 08, 2026 (GLOBE NEWSWIRE) -- Kodiak Gas Services, Inc. (NYSE: KGS) (“Kodiak”), a leading provider of critical energy infrastructure, and Baker Hughes (NASDAQ: BKR), an energy technology company, announced Wednesday a multi-year strategic agreement under which Baker Hughes will provide power generation solutions to support Kodiak’s expanding energy infrastructure initiatives. The agreement is anchored by an initial equipment award that will enable approximately 1 gigawatt (GW) of reliable, scalable power generation capacity to be delivered by 2030, with the broader framework providing a pathway for up to 1.8 GW of power over time.
The initial major order includes NovaLT™16 gas turbines, Frame 5 gas turbines and BRUSH™ Power Generation generators, providing core technologies to deliver dependable power for growing data center and energy infrastructure demand.
Baker Hughes’ high-efficiency power generation technologies are expected to support behind-the-meter projects in key U.S. markets where accelerating electricity demand and grid constraints are increasing the need for flexible, rapidly deployable power infrastructure.
"We are excited to embark on our relationship with Baker Hughes through this strategic agreement," said Kodiak’s President and CEO Mickey McKee. "Our customers require dependable, efficient and rapidly deployable power solutions, and access to Baker Hughes' industry-leading technology, training and support enhances our ability to meet that demand at scale. This framework supports our long-term strategy of expanding Kodiak's energy infrastructure capabilities while delivering exceptional reliability and value to our customers."
"As demand for power continues to accelerate, driven by the rapid expansion of digital infrastructure and data centers, the ability to deliver reliable, efficient and scalable power solutions quickly is critical," said Baker Hughes Chairman and CEO Lorenzo Simonelli. "This agreement reflects the growing need for flexible power generation technologies; together, our gas turbines and generator technologies will help customers bring new capacity online faster to support the continued buildout of critical digital and energy infrastructure."
The multi-year rolling agreement provides flexibility to align capacity commitments with evolving data center demand and phased project development schedules. Through the agreement, Kodiak expects to leverage Baker Hughes' power generation portfolio to support both existing operations and future growth opportunities. The framework is designed to foster closer commercial and technical collaboration between the companies, streamline project execution and reduce lead times for critical power infrastructure deployments. It also sets forth the companies’ commitments to technical training, the provision of spare parts and a mutual interest in entering into a long-term services arrangement for the equipment.
About Baker Hughes
Baker Hughes (NASDAQ: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward – making it safer, cleaner and more efficient for people and the planet.
About Kodiak
Kodiak is a leading contract compression, distributed power, and energy infrastructure services provider in the United States. It serves as a critical link in the infrastructure chain that enables the safe, reliable and efficient production of energy. Headquartered in The Woodlands, Texas, Kodiak provides contract compression, distributed power, and related services to oil and gas producers, midstream customers, and digital infrastructure operators.
Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Baker Hughes (BKR - Free Report) , which belongs to the Zacks Oil and Gas - Field Services industry.
This oilfield services company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 16.21%.
For the last reported quarter, Baker Hughes came out with earnings of $0.58 per share versus the Zacks Consensus Estimate of $0.5 per share, representing a surprise of 16.00%. For the previous quarter, the company was expected to post earnings of $0.67 per share and it actually produced earnings of $0.78 per share, delivering a surprise of 16.42%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for Baker Hughes lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Baker Hughes currently has an Earnings ESP of +12.38%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on July 26, 2026.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
The logo of energy services firm Baker Hughes is displayed during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. REUTERS/Chris Helgren Purchase Licensing Rights, opens new tab
CompaniesJuly 2 (Reuters) - U.S. energy firms this week added rigs for a third week in a row, energy services firm Baker Hughes (BKR.O), opens new tab said in its closely followed report on Thursday.
The total oil and gas rig count, an early indicator of future output, rose by 7 to 580 in the week to July 2, its highest since May 2025. , , , (USGSRC=ECI), opens new tab, (USOIRC=ECI), opens new tab
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Baker Hughes released the rig count report a day earlier than usual due to the U.S. July 4th holiday, which is being recognized on Friday, July 3.
Baker Hughes said this week's increase puts the total rig count up 41 rigs, or 7.6% above this time last year.
Baker Hughes said oil rigs rose by five to 445 this week, their highest since late May, 2025, while gas rigs rose one to 126, their highest since mid-May 2026, and other miscellaneous rigs rose by one to nine.
The oil and gas rig count declined by 7% in 2025, 5% in 2024, and 20% in 2023 as lower U.S. oil prices prompted energy firms to focus more on boosting shareholder returns and paying down debt rather than increasing output.
But now with spot U.S. West Texas Intermediate (WTI) crude prices expected to rise in 2026 due to supply disruptions from the Iran war after declining in 2023, 2024, and 2025, the U.S. Energy Information Administration (EIA) projected crude output would rise from a record 13.6 million barrels per day (bpd) in 2025 to 13.7 million bpd in 2026.
On the gas side, EIA projected output would jump from a record 107.7 billion cubic feet per day (bcfd) in 2025 to 111.0 bcfd in 2026 as demand for the fuel rises to produce electricity for power-hungry data centers and for export as liquefied natural gas (LNG).
Reporting by Scott DiSavino and Anjana Anil; Editing by Daniel Wallis
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Covers the North American power and natural gas markets.
Key Takeaways BKR won a subsea production systems contract for Azule Energy's Greater PAJ project in Angola.The award includes deepwater trees, control systems, installation, commissioning and production services.Delivery of BKR's subsea trees is expected to begin in 2027, boosting order backlog & its presence in Africa. Baker Hughes Company (BKR - Free Report) has secured a significant contract from Azule Energy to provide subsea production systems for the Greater PAJ offshore development in Angola, strengthening its position in the global deepwater services market. The award underscores BKR’s industry leadership in offshore production technologies while broadening its presence across one of Sub-Saharan Africa's premier energy-producing regions.
Under the agreement, Baker Hughes will supply deepwater horizontal tree systems, subsea control modules, intervention workover control systems and associated connection, distribution and topside equipment. The company will also provide integrated tooling, installation support, commissioning and ongoing production services through its established facilities in Angola. This broad scope allows BKR to generate revenues not only from equipment sales but also from services throughout the project's operating life.
The contract highlights Baker Hughes' technological advantage in ultra-deepwater developments. Its horizontal tree systems are engineered to operate at pressures of up to 10,000 pounds per square inch and water depths of 10,000 feet, while their modular design supports faster deployment and improved long-term production efficiency.
The award also reinforces BKR’s long-standing footprint in Angola, where it already maintains the largest installed subsea equipment base in Sub-Saharan Africa. Leveraging its local infrastructure and supply chain is expected to improve execution efficiency and strengthen customer relationships.
With subsea trees delivery scheduled to begin in 2027, the contract enhances Baker Hughes' future order backlog and revenue visibility. The agreement strengthens BKR’s business model and customer base while enhancing investor appeal by highlighting robust demand for its offshore production technologies.
Baker Hughes currently carries a Zacks Rank #4 (Sell).
The business models of oilfield equipment and service providers, including BKR, are closely linked to the capital spending of upstream players. With Brent prices trading above the $70-per-barrel mark and West Texas Intermediate (“WTI”) crude prices trading around the $70-per-barrel mark, according to oilprice.com, players like Vista Energy, S.A.B. de C.V. (VIST - Free Report) , YPF Sociedad Anónima (YPF - Free Report) and W&T Offshore, Inc. (WTI - Free Report) which have presence in upstream operations are benefiting from the elevated crude pricing environment. WTI and VIST currently carry a Zacks Rank #2 (Buy) each, while YPF sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Vista operates 205,600 acres within the Vaca Muerta Basin, widely recognized as Argentina's premier shale basin. Supported by this massive footprint, VIST expects to achieve production of 200 thousand barrels of oil equivalent per day by 2030.
Argentina’s integrated energy company, YPF, has an extensive footprint in the Vaca Muerta formation to fuel production growth. YPF anticipates increased spending and activity in the coming quarters to bolster oil and gas production in the second half of 2026.
W&T Offshore’s robust offshore footprint in the Gulf of America spans approximately 605,000 acres and supports a large reserve base. WTI's 1P and 2P reserves provide 20 years of production potential and resource longevity.
HOUSTON and LONDON, June 26, 2026 (GLOBE NEWSWIRE) -- Baker Hughes (NASDAQ: BKR) will announce the results of the second quarter ending June 30, 2026, via press release at 5 p.m. Eastern Time (4 p.m. Central Time) on Sunday, July 26, 2026. A webcast to discuss the results will be held Monday, July 27, 2026, at 9:30 a.m. Eastern Time (8:30 a.m. Central Time).
To access the webcast, listeners should visit the Baker Hughes website at: investors.bakerhughes.com. An archived version will be available on the website following the webcast.
About Baker Hughes
Baker Hughes (NASDAQ: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward – making it safer, cleaner and more efficient for people and the planet. Visit us at bakerhughes.com.
Key Takeaways Baker Hughes signed a geothermal development agreement with Mantle Reach Power across North America.The partnership targets up to 500 MW of geothermal capacity using BKR's subsurface and digital technologies.The collaboration aims to improve project economics and support growing demand for reliable low-carbon power. Baker Hughes Company (BKR - Free Report) has entered into a commercial agreement with Mantle Reach Power, a geothermal developer backed by EnCap Energy Transition Fund III, to accelerate large-scale geothermal energy deployment across North America. The partnership is designed to deploy the reliable, round-the-clock clean energy necessary to fuel the future of electrification, artificial intelligence and hyperscale data centers. By participating in the fast-growing geothermal market, BKR is expanding its exposure to the energy transition sector while creating new avenues for long-term revenue growth.
Per the agreement, Baker Hughes will serve as the integrated subsurface solution provider. Mantle Reach Power will oversee project development, ownership and financing, leveraging EnCap's extensive expertise and financial resources. The agreement is intended to improve project economics, optimize risk allocation and enhance financing prospects, thereby addressing one of the key barriers that has limited geothermal development at scale.
The collaboration could create a meaningful growth opportunity for Baker Hughes as geothermal projects advance toward commercialization. BKR expects to support the development of up to 500 megawatts of geothermal capacity by supplying its portfolio of subsurface, power generation and digital technologies, providing a potential source of additional cash flow. As demand for dependable, low-carbon baseload power continues to rise, geothermal energy is increasingly viewed as an attractive solution due to its reliability and minimal emissions profile.
Through this agreement, Baker Hughes is expanding its presence in the fast-growing geothermal energy sector, creating a new avenue for revenue growth beyond the traditional oilfield services business. This demonstrates BKR's ability to leverage its existing energy technology expertise for high-growth, clean-energy applications, thereby strengthening the business model and enhancing its appeal to investors. The partnership helps BKR diversify revenue streams, expand its participation in energy transition opportunities and enhance long-term shareholder value through scalable, technology-driven growth initiatives.
Baker Hughes currently carries a Zacks Rank #3 (Hold).
Business models in the oilfield services sector, including BKR, are closely linked to the capital spending of upstream players. With West Texas Intermediate crude prices trading around the $70-per-barrel mark and Brent prices trading above the $70-per-barrel mark, according to oilprice.com, players like Vista Energy, S.A.B. de C.V. (VIST - Free Report) , YPF Sociedad Anónima (YPF - Free Report) and W&T Offshore, Inc. (WTI - Free Report) , which have a presence in upstream operations are benefiting from the elevated crude pricing environment. WTI and VIST currently carry a Zacks Rank #2 (Buy) each, while YPF sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Vista operates 205,600 acres in Argentina's Vaca Muerta Basin, one of the world's premier unconventional shale basins. Supported by its Vaca Muerta footprint, VIST expects its daily production to reach 200 thousand barrels of oil equivalent by 2030.
Argentina’s integrated energy company YPF has an extensive footprint in the Vaca Muerta Basin to fuel production growth. YPF anticipates increased spending and activity in the coming quarters to bolster oil and gas production in the second half of 2026.
W&T Offshore’s offshore footprint in the Gulf of America spans approximately 605,000 acres and supports a large reserve base. WTI's 1P and 2P reserves have a production potential and resource longevity of 20 years.
Subsea horizontal tree systems engineered to support reliable, optimized production in remote, ultra-deepwater environments Agreement expands Baker Hughes’ offshore operations in Angola, reinforcing its global subsea tree position HOUSTON and LONDON, June 25, 2026 (GLOBE NEWSWIRE) -- Baker Hughes (NASDAQ: BKR), an energy technology company, announced Thursday a significant award from Azule Energy to provide subsea production systems to support safe, efficient operations in Angola’s Greater PAJ development.
Under the agreement, Baker Hughes will supply its deepwater horizontal tree systems to optimize production in the ultra-deepwater, greenfield development. In addition, the company will supply subsea control modules and intervention workover control systems, along with associated connection, distribution and topside equipment. Baker Hughes will also provide integrated tooling and services to support installation, commissioning and ongoing production performance from its facilities in Angola, leveraging its local supply chain to increase efficiencies.
“Ultra-deepwater developments demand unmatched reliability and performance to ensure that production is safe, efficient and sustained over the life of the field,” said Baker Hughes Executive Vice President of Oilfield Services & Equipment Amerino Gatti. “By combining Baker Hughes’ industry-leading offshore production technology with expertise honed through decades of experience of operating Angola’s deepwater fields, we can help Azule optimize production and deliver energy more effectively across Sub-Saharan Africa.”
The company’s deepwater horizontal tree systems are engineered for ultra-deepwater environments with an operating threshold of up to 10,000 psi and depths of 10,000 feet. The system’s modular, configurable design allows for fit-for-purpose configuration and short-cycle deliveries that help accelerate first production and support long-term field performance.
Baker Hughes has extensive experience in Angola’s offshore energy sector, and the country is home to its largest subsea installed base in Sub-Saharan Africa.
Delivery of subsea trees is expected to begin in 2027.
About Baker Hughes
Baker Hughes (NASDAQ: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward – making it safer, cleaner and more efficient for people and the planet. Visit us at bakerhughes.com.
Investors interested in stocks from the Oil and Gas - Field Services sector have probably already heard of Halliburton (HAL) and Baker Hughes (BKR). But which of these two stocks offers value investors a better bang for their buck right now?
U.S. oilfield services firm Baker Hughes has offered remedies in an effort to secure EU antitrust approval for its $13.6 billion acquisition of Chart Industries , a European Commission filing showed on Monday.
Service agreement covers parts, services and technical support for critical turbomachinery, including 2 NovaLT™16 gas turbinesScope includes iCenter™ digital services and engineering advisory to enhance equipment reliability and availability Agreement reinforces Baker Hughes’ commitment to supporting West Africa’s energy infrastructure and domestic supply HOUSTON and LONDON, June 23, 2026 (GLOBE NEWSWIRE) -- Baker Hughes (NASDAQ: BKR), an energy technology company, announced Tuesday an award from ANOH Gas Processing Company (AGPC) to provide comprehensive lifecycle services [that covers parts, repair services, engineering advisory] and iCenter™ digital services for turbomachinery equipment at the greenfield ANOH Gas Processing Plant in Nigeria, one of the nation’s critical onshore gas projects. The agreement underscores Baker Hughes’ role as a lifecycle solutions provider.
The agreement builds on Baker Hughes’ relationship with ANOH Gas Processing Company. In 2019, Baker Hughes supplied an integrated power island solution for the facility, inclusive of two NovaLT™ 16 gas turbines – the first supplied in Sub-Saharan Africa – along with compressors and gears.
The service agreement covers essential maintenance and repairs for the plant’s critical equipment, including two NovaLT™16 gas turbines. In addition to providing local engineering support, Baker Hughes will deploy iCenter™ digital services, powered by Cordant™, for remote monitoring and diagnostics to enhance equipment reliability, availability and optimized operations.
“It is a pleasure to collaborate with a globally trusted energy technology leader like Baker Hughes on this critical project,” said James Makinde, Managing Director at ANOH Gas Processing Company. “The reliable performance of critical turbomachinery equipment is essential to the successful operation of the ANOH Plant and to delivering on Nigeria’s domestic energy supply goals.”
“This long-term agreement is a testament to our successful collaboration with ANOH Gas Processing Company and the trust placed in our lifecycle service capabilities,” said Baker Hughes Chief Growth & Experience Officer and interim Executive Vice President of Industrial & Energy Technology Maria Claudia Borras. “We are leveraging our regional expertise and pairing it with our advanced digital technologies and services, supporting the delivery of reliable, efficient and affordable power solutions and helping Nigeria realize its goal to move to lower-carbon fuel sources.”
The ANOH Gas Processing Plant is key to Nigeria’s strategy to develop its natural gas resources to support power generation and industrial use, along with accelerating the transition from traditional oil to cleaner-burning hydrocarbons. Work under the agreement will be delivered through the Baker Hughes Service Center in Port Harcourt, Nigeria, that employs local talent and delivers comprehensive lifecycle services.
About Baker Hughes
Baker Hughes (NASDAQ: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward – making it safer, cleaner and more efficient for people and the planet. Visit us at bakerhughes.com.
Collaboration aims to remove historical hurdles to scaling geothermal energy, targets installation of up to 500 megawatts of power in the next five yearsProjects will utilize Baker Hughes’ integrated portfolio of scalable, lower-carbon energy solutions HOUSTON and LONDON, June 24, 2026 (GLOBE NEWSWIRE) -- Baker Hughes (NASDAQ: BKR), an energy technology company, and Mantle Reach Power, a dedicated geothermal development company backed by EnCap Energy Transition Fund III, announced Wednesday a new commercial agreement to facilitate the economically viable, financially sustainable large-scale deployment of geothermal energy in North America.
The agreement underscores the parties’ shared commitment to advance the next generation of clean and reliable baseload power needed to meet the demand driven by electrification and the rapid growth of artificial intelligence and hyperscale computing – which require reliable, around-the-clock energy.
Under this pioneer arrangement, Baker Hughes will act as an integrated subsurface solution provider, while Mantle Reach Power – drawing on EnCap’s deep bench of power and E&P expertise – will lead project development, ownership and financing. One of the most experienced energy investment platforms in North America, EnCap Investments has approximately $47 billion raised across 25 institutional funds. By combining Baker Hughes’ integrated subsurface and surface technologies with Mantle Reach Power’s geothermal development capabilities, the collaboration aims to dramatically accelerate project development and execution, optimize risk allocation, and materially enhance pre-construction bankability – historically one of the most significant barriers to scaling geothermal energy.
The phased structure of the agreement integrates advanced technologies applicable to geothermal development, construction and operation, and supports the delivery of secure and renewable energy capacity. As the projects materialize, Baker Hughes anticipates it will provide its comprehensive portfolio of subsurface technologies, surface power generation and digital solutions to help de-risk, build and deliver up to 500MW of installed capacity, providing geothermal energy at an industrial scale and on competitive terms.
“Geothermal is a clean power solution that is proving to be a vital contributor to advancing sustainable energy development, with incredible potential to enhance U.S. energy security, support digital infrastructure, and ensure energy remains accessible and affordable. We are proud that Baker Hughes’ integrated portfolio can help de-risk and deliver the technology and solutions required to provide reliable, affordable and clean energy,” said Baker Hughes Chairman and CEO Lorenzo Simonelli. “Today’s announcement celebrates the commercial architecture the industry has been missing: a repeatable, financeable model that can be deployed at the speed and scale to meet global energy demands.”
“By aligning development capital, project finance expertise, and world-class technology, this collaboration addresses the fundamental challenges that have prevented large amounts of private capital from participating in geothermal deployment,” said Tim Rebhorn, Managing Partner, EnCap Energy Transition. “Together, we are creating a scalable model capable of delivering clean, firm power to the markets that need it most.”
“Integrating Baker Hughes’ subsurface-to-surface expertise with our capabilities in project development, finance, and execution positions Mantle Reach Power to commercialize geothermal assets at scale,” said Nick Karambelas, CEO of Mantle Reach Power. “This structure provides the construction and operating certainty necessary to access conventional project financing and accelerate our growth as an independent power producer.”
About Baker Hughes
Baker Hughes (NASDAQ: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward – making it safer, cleaner and more efficient for people and the planet. Visit us at bakerhughes.com.
About EnCap Investments
Since 1988, EnCap Investments has been a leading provider of growth capital to the independent sector of the U.S. energy industry. The firm has raised 25 institutional investment funds totaling approximately $47 billion and currently manages capital on behalf of more than 350 U.S. and international investors. Founded in 2019, the EnCap Energy Transition platform is led by three Managing Partners, each with 30-35 years of experience in the development and operations of renewables and power generation. For more information, see encapinvestments.com.
About Mantle Reach Power
Mantle Reach Power is an independent power producer that develops, owns, and operates geothermal power projects across North America. The company is advancing a scalable, financeable portfolio to deliver clean, firm power to the grid. Mantle Reach Power is a portfolio company of EnCap Energy Transition Fund III.
Key Takeaways Baker Hughes secured a lifecycle services contract for Nigeria's ANOH Gas Processing Plant.The agreement covers maintenance, engineering support & iCenter digital solutions for critical turbomachinery.Baker Hughes will deploy remote monitoring technology to improve reliability and reduce operational downtime. Baker Hughes Company (BKR - Free Report) secured a long-term service agreement from ANOH Gas Processing Company (“AGPC”) to provide comprehensive lifecycle and digital services for the ANOH Gas Processing Plant in Nigeria, strengthening its revenue stream and expanding its presence in Africa's natural gas market. The contract covers maintenance, repairs, engineering support and the deployment of Baker Hughes' iCenter digital solutions for critical turbomachinery equipment, including two NovaLT16 gas turbines previously supplied by the company.
The agreement builds on Baker Hughes' longstanding relationship with AGPC. In 2019, BKR supplied an integrated power island solution for the ANOH facility, including compressors, gears and two NovaLT 16 gas turbines, which were the first to be deployed in Sub-Saharan Africa. By securing equipment and long-term service contracts, BKR is able to strengthen its business model by generating additional cash flows while deepening customer relationships over the lives of its assets.
A key component of the contract is the deployment of Baker Hughes' iCenter digital platform powered by Cordant, which provides remote monitoring and diagnostics capabilities. These digital solutions are expected to improve equipment reliability, optimize plant performance and reduce operational downtime, enhancing the value of BKR’s industrial and energy technology portfolio.
The award also strengthens Baker Hughes' strategic position in Nigeria, where natural gas development remains a national priority. The ANOH Gas Processing Plant is critical part of Nigeria's efforts to expand domestic gas supply, support power generation and encourage a transition toward cleaner-burning fuels. Services will be delivered through BKR’s Port Harcourt service center, reinforcing its local presence and regional expertise.
This award boosts Baker Hughes’ cash flow and exposure to natural gas infrastructure. The agreement not only solidifies BKR’s customer base and earnings visibility but also enhances investor appeal by highlighting strong demand for its digital solutions.
Baker Hughes currently carries a Zacks Rank #3 (Hold).
The business models of BKR and other players providing oilfield services to upstream companies are closely linked to the capital spending of upstream players. With West Texas Intermediate (“WTI”) crude prices trading above the $70-per-barrel mark and Brent prices trading above the $75-per-barrel mark, according to oilprice.com, players like Vista Energy, S.A.B. de C.V. (VIST - Free Report) , YPF Sociedad Anónima (YPF - Free Report) and W&T Offshore, Inc. (WTI - Free Report) , which have a presence in upstream operations, are benefiting from elevated crude prices. WTI and VIST currently carry a Zacks Rank #2 (Buy), whereas YPF sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Vista operates 205,600 acres within Argentina's Vaca Muerta formation, one of the world's premier shale basins. Supported by this massive footprint, VIST expects its production to reach 200 thousand barrels of oil equivalent per day by 2030.
Argentina’s integrated energy company YPF has an extensive footprint in the Vaca Muerta formation to fuel production growth. YPF anticipates increased spending and activity in the coming quarters to bolster oil and gas production in the second half of 2026.
W&T Offshore’s robust offshore footprint in the Gulf of America spans approximately 605,000 acres and supports a large reserve base. WTI's 1P and 2P reserves provide 20 years of production potential and resource longevity.
Drilling rigs are seen in Helmerich & Payne's stack yard in Odessa, Texas, U.S., October 7, 2025. REUTERS/Arathy Somasekhar/File Photo Purchase Licensing Rights, opens new tab
CompaniesNEW YORK, June 18 (Reuters) - U.S. energy firms this week added rigs for the eighth time in nine weeks, energy services firm Baker Hughes (BKR.O), opens new tab said in its closely followed report on Thursday.
The total oil and gas rig count, an early indicator of future output, rose by one to 563 in the week to June 18, its highest since early June. , , ,
The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here.
Baker Hughes released the report a day early due to the U.S. Juneteenth holiday on Friday.
With this week's rig increase, Baker Hughes said the total count was up nine rigs, or 2% above this time last year.
Baker Hughes said oil rigs held steady at 433 this week, while gas rigs rose by one to 122, their highest since early June, and other miscellaneous rigs held steady at eight.
The oil and gas rig count declined by 7% in 2025, 5% in 2024, and 20% in 2023 as lower U.S. oil prices prompted energy firms to focus more on boosting shareholder returns and paying down debt rather than increasing output.
But now with spot U.S. West Texas Intermediate (WTI) crude prices expected to rise in 2026 due to supply disruptions from the Iran war after declining in 2023, 2024, and 2025, the U.S. Energy Information Administration (EIA) projected crude output would rise from a record 13.6 million barrels per day (bpd) in 2025 to 13.7 million bpd in 2026.
On the gas side, EIA projected output would jump from a record 107.7 billion cubic feet per day (bcfd) in 2025 to 111.0 bcfd in 2026 as demand for the fuel rises to produce electricity for power-hungry data centers and for export as liquefied natural gas (LNG).
Reporting by Scott DiSavino; Editing by Franklin Paul and Daniel Wallis
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Covers the North American power and natural gas markets.
The logo of energy services firm Baker Hughes is displayed during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. REUTERS/Chris Helgren Purchase Licensing Rights, opens new tab
CompaniesJune 12 (Reuters) - U.S. energy firms cut the number of rigs operating for the first time in eight weeks, energy services firm Baker Hughes (BKR.O), opens new tab said in a closely followed report on Friday.
The total oil and gas rig count, an early indicator of future output, fell by 1 to 562 in the week to June 12. , , ,
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Baker Hughes said this week's decline puts the total rig count up 7, or 1.3% higher, compared to this time last year.
Baker Hughes said the number of oil rigs rose by 2 to 433 this week, the highest total since June 2025, while gas rigs fell by 3 to 121, the lowest since October 2025.
The oil and gas rig count declined by 7% in 2025, 5% in 2024 and 20% in 2023 as lower U.S. oil prices prompted energy firms to focus more on boosting shareholder returns and paying down debt rather than increasing output.
But with spot U.S. West Texas Intermediate (WTI) crude prices expected to rise in 2026 due to supply disruptions from the Iran war, after declines in 2023, 2024, and 2025, the U.S. Energy Information Administration (EIA) projected crude output would rise to 13.7 million barrels per day in 2026 from a record 13.6 million bpd in 2025.
On the gas side, EIA projected output would jump to 111.0 billion cubic feet per day in 2026 from a record 107.7 bcfd in 2025 as demand for the fuel rises to produce electricity for power-hungry data centers and for export as liquefied natural gas (LNG).
Reporting by Scott DiSavino and Anjana Anil; Editing by Paul Simao
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Covers the North American power and natural gas markets.
Baker Hughes is set to transform materially with the imminent acquisition of Chart Industries. The combined entity will benefit from post-Iranian crisis repair demand and elevated commodity prices. Strategic focus will be on integrating Chart's decentralized factory model and leveraging a unified sales effort to drive quality control and rapid growth.
The energy sector has significantly outperformed the broader stock market this year. It's up about 32% year to date, while the S&P 500 index has climbed about 4.2%. Energy is also the best-performing sector this year.
But over the past week or so, one energy stock has beaten them all. I'm talking about Baker Hughes (BKR +0.24%), the oil and gas equipment and services company based in Houston. The stock soared 10% over the past five trading days, beating the broader energy sector, which rose about 4.4% as measured by the State Street Energy Select Sector SPDR ETF, which tracks the S&P 500 energy sector.
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The primary reason Baker Hughes shares have skyrocketed is the company's unexpectedly good first-quarter results. Last week, it reported those results, beating Wall Street expectations for both revenue and profits.
Revenue of $6.6 billion during the quarter was better than the $6.34 consensus analyst estimate. And adjusted earnings of $0.58 a share handily beat the consensus estimate of $0.49.
Image source: Getty Images.
The company reported record order volume in the first quarter and expanded margins. Both were driven in part by a surge in electricity demand from data centers and increased investment in liquefied natural gas infrastructure and grid equipment.
Management did say, however, that the ongoing conflict in the Middle East is disrupting business, with a 19% decrease in revenue from the Middle East/Asia region.
Still, with oil prices expected to remain elevated through the remainder of 2026, no matter when or how the war is resolved, the stocks of oilfield services companies like Baker Hughes remain attractive.
Matthew Benjamin has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
For the last two years, investors were trained to chase anything tied to artificial intelligence. Semiconductor stocks. Cloud stocks. Power-grid plays. If it touched a data center, Wall Street wanted in.
Then 2026 happened.
Suddenly, the market’s leadership changed. The flashy growth names cooled off while one of the market’s oldest industries started printing gains again: energy.
The surprise isn’t just that energy stocks are outperforming. It’s how decisively they’re doing it. The S&P 500 Energy sector has become one of the market’s best-performing groups this year as oil prices climbed, geopolitical tensions tightened supply expectations, and investors rotated toward companies generating real cash flow today — not promises five years from now.
And now investors are asking the obvious question: Could President Donald Trump’s policy agenda push the rally even further?
Refiners Are Leading the Charge The biggest winners inside the energy trade have not been the oil majors. Surprisingly, refiners and energy service companies have stolen the spotlight.
Here’s how three of the sector’s top performers stack up so far in 2026:
Company YTD Return Dividend Yield Forward P/E Marathon Petroleum (NYSE:MPC | MPC Price Prediction) 52.3% 1.6% ~13 Valero Energy (NYSE:VLO) 51.5% 1.9% ~13 Baker Hughes (NYSE:BKR) 51.4% 1.3% ~24 That says investors are suddenly willing to pay more for businesses tied to energy production, fuel demand, and drilling infrastructure.
Let’s start with Marathon Petroleum. The refiner is benefiting from stronger refining margins as gasoline and diesel spreads widened during the first quarter. Marathon also continued aggressively returning capital to shareholders. It repurchased billions in stock over the past year while maintaining one of the strongest balance sheets in the refining industry.
Valero followed a similar path. Refiners tend to thrive when crude supply disruptions create volatility because fuel prices often rise faster than input costs. In short, chaos can actually help margins — at least temporarily.
Then there’s Baker Hughes, which gives investors a different angle on the trade. Instead of refining fuel, Baker Hughes sells the equipment, services, and technology energy producers need to drill, transport, and process oil and natural gas. As exploration budgets expanded globally, Baker Hughes captured higher orders across its LNG and oilfield services segments.
Why Trump Could Add More Fuel to the Rally Markets do not move on politics alone. Earnings still matter. Cash flow still matters. But policy absolutely shapes industries — and energy investors know it.
Trump has consistently pushed for expanded domestic energy production, faster permitting approvals, reduced environmental restrictions, and increased LNG exports. Whether investors agree politically is almost beside the point. Markets care about what policies could mean for profits.
More drilling activity generally benefits companies like Baker Hughes. More pipeline approvals can improve transport economics. Expanded refining demand can support companies like Marathon and Valero.
According to the U.S. Energy Information Administration, U.S. crude production already reached record levels above 13 million barrels per day entering 2026. Additional deregulation could keep that trend moving higher.
Granted, there are risks. Oil remains cyclical. A recession could reduce fuel demand quickly. OPEC production changes could pressure prices — the UAE just quit OPEC+, which could introduce significant price volatility. And if inflation stays sticky, the Federal Reserve may keep interest rates elevated longer than investors expect.
That said, energy stocks look far different than they did during previous commodity booms.
Many companies spent the last several years reducing debt, cutting unnecessary expansion spending, and focusing on shareholder returns instead of reckless production growth. That discipline matters.
The AI bubble just met its match. Investors are ditching speculative tech promises for the massive cash flow of the energy sector’s new era. This Rally Looks Different From Past Energy Booms Back in the shale boom years, many energy companies chased production growth at any cost. Investors got rising oil output but weak returns.
Today’s market looks more restrained.
For example:
Marathon Petroleum generated $8.3 billion in free cash flow in 2025 while reducing share count. Valero had refining utilization rates between 97% and 98% of capacity last year.. Baker Hughes’ Industrial & Energy Technology expanded margins to its 20% target while growing internationally in LNG infrastructure. Regardless, this is not simply a speculative oil spike trade anymore. Investors are rewarding profitability, balance-sheet strength, and capital returns.
And compared to many technology stocks still trading above 25 or 30 times forward earnings, several energy leaders remain valued near 11 to 17 times earnings. That valuation gap matters.
Key Takeaway In any case, 2026 has reminded investors that market leadership changes faster than most people expect. Energy stocks entered the year rising a moderate 7.9%. Now they’re leading the S&P 500.
Could the rally continue? Yes — especially if Trump’s energy policies accelerate domestic production and infrastructure investment. But smart investors should also recognize this remains a cyclical industry tied closely to oil prices and global demand.
Still, companies like Marathon Petroleum, Valero, and Baker Hughes are giving investors something Wall Street increasingly values in this market: strong cash flow, shareholder returns, and businesses built around real-world demand instead of hype alone.
A drone view shows drilling rigs sit in storage at an equipment yard in Odessa, Texas, U.S. June 10, 2025. REUTERS/Eli Hartman/File Photo Purchase Licensing Rights, opens new tab
CompaniesNEW YORK, May 8 (Reuters) - U.S. energy firms this week added oil and natural gas rigs for a third week in a row, the first three-week streak of increases since early February, energy services firm Baker Hughes (BKR.O), opens new tab said in its closely followed report on Friday.
The oil and gas rig count, an early indicator of future output, rose by one to 548 in the week to May 8, its highest since early April. , ,
The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here.
Despite this week's rig increase, Baker Hughes said the total count was still down 30 rigs, or 5% below this time last year.
Baker Hughes said oil rigs rose by two to 410 this week, their highest since mid-April, while gas rigs fell by one to 129, their lowest since late April, and other miscellaneous rigs held steady at nine.
The oil and gas rig count declined by 7% in 2025, 5% in 2024, and 20% in 2023 as lower U.S. oil prices prompted energy firms to focus more on boosting shareholder returns and paying down debt rather than increasing output.
Even though U.S. West Texas Intermediate (WTI) spot crude prices were expected to rise in 2026 due to the Iran war after declining in 2023, 2024, and 2025, the U.S. Energy Information Administration (EIA) projected crude output would slide from a record 13.6 million barrels per day (bpd) in 2025 to 13.5 million bpd in 2026.
On the gas side, EIA projected output would rise from a record 107.7 billion cubic feet per day (bcfd) in 2025 to 109.6 bcfd in 2026, with spot prices at the U.S. Henry Hub benchmark in Louisiana forecast to climb by about 4% in 2026.
Reporting by Scott DiSavino; Editing by David Gregorio
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Covers the North American power and natural gas markets.
U.S. energy firms this week added oil and natural gas rigs for a fourth week in a row for the first time since September 2025, energy services firm Baker Hughes said in its closely followed report on Friday.
On May 18, 2026, Baker Hughes Co (BKR) shares rose 3.2% to a current price of $66.20. The stock has seen a significant price increase in the past year, with a 7
A drone view shows the European Union flags outside the European Commission headquarters, known as the Berlaymont building in Brussels, Belgium, April 29, 2026. REUTERS/Yves Herman Purchase Licensing Rights, opens new tab
CompaniesBRUSSELS, May 22 (Reuters) - EU antitrust regulators will decide by June 26 whether to clear oilfield services firm Baker Hughes' (BKR.O), opens new tab $13.6 billion acquisition of Chart Industries (GTLS.N), opens new tab, according to a European Commission filing.
Baker Hughes announced the deal in July last year to boost its presence in industrial technology servicing liquefied natural gas and data centres and also leverage its industrial and energy technology portfolio.
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The Commission, which acts as the EU competition enforcer, can either clear the deal with or without demanding concessions after the end of its preliminary review or it can open a full-scale investigation if it has serious concerns.
Chart manufactures industrial equipment such as valves and measurement technology for gas and liquid molecule handling and operates 65 manufacturing locations with over 50 service centres globally.
Reporting by Foo Yun Chee; Editing by Kirsten Donovan
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Expansion of well construction solutions utilizing advanced technologies to support oil & gas developments in pre-salt offshore fields Integrated solutions approach unlocks incremental value for complex operationsHOUSTON and LONDON, May 26, 2026 (GLOBE NEWSWIRE) -- Baker Hughes (NASDAQ: BKR), an energy technology company, announced Tuesday a major contract extension with Petrobras to provide integrated solutions for well construction across Brazil’s Santos Basin.
Baker Hughes will expand the company’s comprehensive well construction operations in several of the basin’s oilfields. The company’s advanced portfolio – including the AutoTrak™ rotary steerable system, cutting-edge logging-while-drilling tools, and Dynamus™ extended-life drill bits – will be deployed across the construction portfolio of deepwater wells, enabling efficient access to subsurface reservoirs and supporting the ongoing development of Brazil's pre-salt oil & gas resources.
This latest agreement builds on a well construction services award announced in early 2024, further extending the scope and impact of Baker Hughes’ integrated drilling solutions in the region. The company’s integrated approach unlocks incremental value for complex operations, enhancing efficiency and innovation in offshore developments.
“The success of this critical project illustrates the strength and capabilities of Baker Hughes’ comprehensive portfolio, offering an integrated, solutions-focused approach,” said Baker Hughes Executive Vice President of Oilfield Services & Equipment Amerino Gatti. “By combining innovative technology with a holistic view of project management, we are setting new standards for efficiency and safety in well construction.”
The project will be executed through Baker Hughes’ Integration & Solutions team alongside Petrobras’ wells team, with the joint expertise enabling greater operational efficiency in Petrobras’ offshore well construction operations. In addition to specialized drilling solutions, the team will leverage technologies and expertise across wireline, cementing, wellbore clean up, fishing, remedial tools, fluids, services and geosciences.
About Baker Hughes
Baker Hughes (NASDAQ: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward – making it safer, cleaner and more efficient for people and the planet. Visit us at bakerhughes.com.
SLB’s Tough Quarter Masks a Powerful Long-Term ShiftBaker Hughes NASDAQ: BKR Chairman and Chief Executive Officer Lorenzo Simonelli said the company has become “very different” from the traditional oilfield services business it was a decade ago, emphasizing a broader strategy focused on industrial energy solutions, natural gas, power generation and lower-emissions technologies.
Speaking at Bernstein’s 42nd Annual Strategic Decisions Conference in a fireside chat with Bob Brackett, co-head of Energy and Transition and Global Metals and Mining at Bernstein, Simonelli said Baker Hughes has spent recent years reshaping its portfolio and reducing exposure to the volatility of upstream oil and gas cycles.
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3 ETFs to Benefit From Oil Price Surge Without Direct InvestmentSimonelli said the company’s 2022 strategic plan was built around a “three-horizon” framework. He described the first phase, from 2022 to 2025, as focused on improving profitability, streamlining processes and cleaning up the portfolio. By the end of that period, he said Baker Hughes had increased margins by more than 300 basis points and nearly doubled EBITDA.
The company has now moved into what Simonelli called “Horizon Two,” centered on expanding Baker Hughes as an “industrialized energy solutions company.” He said the strategy includes not only oil and gas extraction and production, but also technologies tied to nitrogen, oxygen, liquefied natural gas, geothermal energy, carbon capture, utilization and storage, and other industrial applications.
Portfolio Shift Away From Traditional Oilfield Services 3 Targeted Oil Plays as the Iran Crisis Lifts CrudeSimonelli said Baker Hughes still has an Oilfield Services & Equipment segment, but he argued that it differs from traditional peers because it is 75% international, 50% offshore and more focused on production-related activities such as chemicals and artificial lift. Those businesses are tied more closely to ongoing operating expenditures than to cyclical upstream capital spending, he said.
The other major segment, Industrial & Energy Technology, includes turbines, pumps, valves, compressors, condition monitoring and digital applications. Simonelli said the segment is used in power generation, LNG, geothermal, carbon capture, hydrogen, midstream and downstream markets, as well as off-grid data center power applications.
“Baker Hughes today is not your typical Oilfield Services & Equipment company,” Simonelli said, adding that the July announcement of the Chart Industries acquisition further moves the company into industrial markets and lowers exposure to oil and gas volatility.
When asked what Baker Hughes will not do strategically, Simonelli said the company does not intend to become an exploration and production company, compete with its customers, operate assets or move into areas such as wind turbines, solar panels or nuclear reactors. He said Baker Hughes will remain focused on areas where it has technical relevance, particularly in extracting, moving and monetizing molecules for customers.
Strait of Hormuz Risks and Energy Security Simonelli also addressed geopolitical risks around the Strait of Hormuz, saying Baker Hughes has “considerable employees” in the region and that employee safety and business continuity are the company’s priorities. He said activity is ongoing and that the company is working with customers to maintain operations.
He said a prolonged closure of the Strait of Hormuz would burden the global economy by constraining oil barrels and affecting downstream products, including fertilizers and helium. “I can just hope, like everybody, that the Straits of Hormuz open quickly,” Simonelli said.
Looking beyond the immediate disruption, Simonelli said the aftermath is likely to lead to increased investment in upstream production and energy infrastructure. He pointed to activity in Libya, Nigeria, other parts of Africa and Alaska, and said he does not believe the U.S. oil market is “finished” because technology continues to advance.
He also said energy security will drive investment in pipelines, including Middle East infrastructure that could bypass the Strait of Hormuz, and in additional LNG plants located across a broader set of geographies.
LNG and Data Centers Drive Industrial Technology Demand Simonelli reiterated Baker Hughes’ positive view on LNG, calling natural gas and LNG “clear winners” in providing energy security. He said Baker Hughes continues to expect the world will need 800 million tons per annum of installed LNG capacity by 2030 and 950 million tons by 2035.
He said LNG development is becoming more geographically diversified, citing Argentina, Algeria, the U.S. Gulf Coast and Mozambique as areas with potential or ongoing activity. He also said QatarEnergy continues to move forward with expansion plans, though he noted that supply chains can be constrained when facilities require immediate repairs.
In the Industrial & Energy Technology segment, Simonelli said LNG represented less than 15% of order intake in 2025 and the first quarter, meaning 85% of the segment’s orders came from outside LNG. He said power generation and data centers are becoming increasingly important. In the first quarter, Baker Hughes booked $1.4 billion in power systems orders, including $1 billion tied to data centers, he said. In 2025, the company booked $1 billion in data center orders.
Baker Hughes had previously set a target of $3 billion in data center orders between 2025 and 2027, but Simonelli said the company plans to revise that target upward because intake has been significant.
Simonelli said Baker Hughes’ turbines and generators fit a “sweet spot” for off-grid immediate power in the 150-megawatt to 300-megawatt range, including the NovaLT16, Frame 5 and BRUSH generator. He said the demand for data center power is not a one-year event, but a multi-year opportunity as grid infrastructure and alternative power solutions take time to develop.
New Energy, Services and Chart Acquisition Simonelli said Baker Hughes’ new energy offerings include carbon capture, geothermal, emissions management, de-flaring, hydrogen and clean integrated power solutions. He said the company generated more than $2 billion in new energy revenue last year and expects $2.4 billion to $2.6 billion this year, compared with an initial base of only a few hundred million in 2022.
He also emphasized the importance of the service and aftermarket business tied to installed equipment. Baker Hughes has more than 9,000 installed units that require maintenance and servicing over 20- to 30-year lifespans, he said. Simonelli described the model as part of the company’s effort to shift from volatility toward predictability and consistency.
On the pending all-cash acquisition of Chart Industries, Simonelli said Chart’s cryogenics and cold-box capabilities are complementary to Baker Hughes’ existing portfolio and support its strategy of linking energy sources to industrial outcomes. He acknowledged that the transaction will increase debt-to-EBITDA at the outset, but said Baker Hughes intends to bring leverage down while protecting dividends and capital investment.
Simonelli said Baker Hughes has continued to evaluate its portfolio and pointed to the planned disposition of Waygate Technologies as part of its effort to maintain a strong balance sheet.
Asked for the value proposition of owning Baker Hughes stock, Simonelli said the company is positioned for a “decade-long growth trajectory” tied to rising energy demand, data centers, infrastructure, power generation, carbon capture and continued oil and gas production. He said Baker Hughes is targeting a 20% EBITDA margin profile by 2028 as a combined company with Chart.
About Baker Hughes NASDAQ: BKRBaker Hughes is an energy technology company that provides a broad portfolio of products, services and digital solutions for the oil and gas and industrial markets. Its offerings span oilfield services and equipment — including drilling, evaluation, completion and production technologies — as well as turbomachinery, compressors and related process equipment used in midstream and downstream operations. The company also supplies aftermarket services, field support and integrated solutions designed to improve asset performance and uptime across the energy value chain.
The firm's roots trace back to the merger of Baker International and Hughes Tool Company, and more recently it combined with GE's oil and gas business in 2017 to form Baker Hughes, a GE company (BHGE); subsequent changes in ownership restored Baker Hughes as an independent publicly traded company.
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Integrated drilling and well services solutions support developments offshore NorwayIntervention services extend the life and performance of existing wells in the North Sea HOUSTON and LONDON, May 28, 2026 (GLOBE NEWSWIRE) -- Baker Hughes (NASDAQ: BKR), an energy technology company, announced Thursday two significant contract extensions with Equinor to provide integrated drilling and well services solutions, as well as wireline intervention services. These multi-year extensions will support Equinor’s offshore hydrocarbon production goals in the North Sea.
Under the integrated drilling and well services contract, Baker Hughes will deploy holistic solutions for projects in both mature and greenfield developments. Baker Hughes will leverage capabilities across its Well Construction and Completions, Intervention and Measurement portfolios to support development on the Norwegian continental shelf. Advanced technologies, including Kantori™ autonomous well construction solution and TRU-ARMS™ advanced reservoir mapping services, will be used to efficiently develop offshore resources.
Under the intervention contract, Baker Hughes will provide fully integrated intervention services that combine its suite of surface and downhole solutions with complementary technologies from service partners to extend the life and performance of offshore wells in the North Sea. The contract extension will expand the scope of service delivery of the Baker Hughes technology portfolio centered around the PRIME Technology Platform, supporting production optimization and emissions reduction across the Norwegian Continental Shelf.
“Baker Hughes’ ability to provide holistic solutions that unlock incremental value for our customers has been proven through decades of operation in the North Sea,” said Baker Hughes Executive Vice President of Oilfield Services & Equipment Amerino Gatti. “From greenfield well construction operations to interventions that extend the life of mature fields, our innovative technologies and ability to integrate our services can help create a more secure energy future for Norway and all of Europe. We look forward to being part of this new chapter of collaboration with Equinor.”
Baker Hughes has played a key role in Norway’s energy sector for decades, with thousands of employees and facilities across the country. Earlier this year, the company opened its new Subsea Services Center of Excellence and manufacturing plant in Dusavik, and it operates a Center of Excellence for Plug & Abandonment in Stavanger.
About Baker Hughes
Baker Hughes (NASDAQ: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward – making it safer, cleaner and more efficient for people and the planet. Visit us at bakerhughes.com.
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If you put $10,000 into the VanEck Oil Services ETF (NYSEARCA:OIH) at the closing bell on December 31, 2025, you were sitting on roughly $15,100 five months later. The fund opened the year at $285 and closed June 2 at $430, a 51% year-to-date gain. Over the same window, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) returned 11%. The headline number on the cover of this piece (47%) is already stale on the upside. Oil services have been the trade of 2026 so far, and the gap is not subtle.
Before getting to why, one piece of texture worth keeping in mind. OIH has given back a little of that gain. The fund is down 3% over the past week and 3% over the past month, tracking a sharp pullback in crude. WTI fell 12.9% in the week ending May 26 to $98 per barrel. That softness matters for the forward look. It does not erase the YTD story.
What Actually Did the Work OIH is a concentrated bet on the picks-and-shovels side of the energy patch, and three names carry most of the weight. Schlumberger (NYSE:SLB | SLB Price Prediction) is up 48% YTD, Halliburton (NYSE:HAL) is up 43%, and Baker Hughes (NASDAQ:BKR) is up 43%. When the top three constituents of a sector ETF all rip more than 40% in five months, the ETF will follow.
The catalyst is not subtle either. The Strait of Hormuz, which moved nearly 20% of global oil supply before military action that began February 28, has been effectively closed to shipping traffic since. Brent spiked to $138/b on April 7 and averaged $117/b for the month, the highest monthly print since June 2022. The EIA now estimates global oil inventories will fall by 8.5 million barrels per day in Q2 2026. When inventories drain that fast, upstream operators do two things at once. They squeeze every existing well harder, and they bid for the equipment and services that bring future barrels online. That bid lands directly in OIH.
The earnings season confirmed the through-line. SLB reported Q1 2026 revenue of $8.72 billion and committed to returning more than $4 billion to shareholders in 2026, even as CEO Olivier Le Peuch acknowledged “widespread disruptions in the Middle East impacted our business”. Halliburton beat EPS by 11% with net income jumping to $461 million from $204 million a year earlier, and CEO Jeff Miller told the call “In North America, I see clear signs that we are in the early innings of a recovery.”
Baker Hughes is the cleanest version of the structural story. The company exited fiscal 2025 with a record Industrial & Energy Technology backlog of $32.4 billion, including roughly 7 GW of power systems orders tied to data center infrastructure. That last number is the AI capex burst showing up inside an oil services ETF, and it is why BKR’s IET segment hit its 20% EBITDA margin target while the oilfield segment shrank 8% year over year. The OIH rally combines several stories: a geopolitical risk premium stacked on top of an LNG infrastructure buildout stacked on top of data center power demand stacked on top of a tentative North American drilling recovery.
What Has to Hold for the Trade to Keep Working This is where honesty matters. The single biggest driver of the YTD move (oil at $100+) is the piece of the thesis most likely to fade. The EIA’s May Short-Term Energy Outlook projects Brent at $106/b in May and June, $89/b in Q4 2026, and $79/b in 2027. That is the agency’s base case for a world where the Strait of Hormuz traffic gradually resumes and shut-in production returns later this year. A reader holding OIH today is, whether they realize it or not, betting either that the resumption takes longer than the EIA assumes or that the structural pieces are large enough to carry the fund when the war premium bleeds out.
The structural pieces are real. SLB now does $141 million per quarter in Data Center Solutions revenue, up 45% year over year, with digital annualized recurring revenue above $1 billion. Baker Hughes has booked LNG equipment awards across NextDecade Rio Grande LNG Train 5, Commonwealth LNG, and Alaska LNG, and management is guiding to similar organic IET order levels in 2026. Halliburton flagged North America activity bottoming. SLB expects broad-based upstream recovery in 2027 and 2028. None of those depend on oil staying north of $100.
What to watch from here, in order of importance. First, Strait of Hormuz traffic data and any indication that shut-in barrels in Iraq and Qatar are coming back online. Second, the WTI tape against the EIA’s glide path. WTI sitting at $98 is already in the 86th percentile of its 12-month range, so the asymmetry on price from here favors the downside. Third, the IET orders line at Baker Hughes when it reports next, because that is the cleanest read on whether AI power demand is still pulling forward. Fourth, North American rig count and stimulation activity, the leading indicator on whether Miller’s “early innings” line holds.
A reasonable read on OIH today is that the easy money has been made, the war premium that drove ~half the move is forecast to fade, and what remains is a more interesting but lower-octane structural story about LNG, data center power, and a North American recovery that has not actually arrived yet. The headline number was real. The conditions that produced it are partly mean-reverting by design. If you came late looking for another 50%, the math now requires Brent to stay stuck above the EIA’s path, and that is a thinner thesis than the one that delivered the chart.
CompaniesNEW YORK, June 5 (Reuters) - U.S. energy firms this week added rigs for a seventh week in a row for the first time since May 2022, energy services firm Baker Hughes (BKR.O), opens new tab said in its closely followed report on Friday.
The oil and natural gas rig count, an early indicator of future output, rose by one to 563 in the week to June 5, its highest since May 2025. , ,
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With this week's rig increase, Baker Hughes said the total count was up four rigs, or 1% above this time last year.
Baker Hughes said oil rigs rose by two to 431 this week, the highest since June 2025, while gas rigs fell by one to 124, the lowest since January 2026. Other miscellaneous rigs held at eight.
The oil and gas rig count declined by 7% in 2025, 5% in 2024, and 20% in 2023 as lower U.S. oil prices prompted energy firms to focus more on boosting shareholder returns and paying down debt rather than increasing output.
Now, spot U.S. West Texas Intermediate (WTI) crude prices are expected to rise in 2026 due to the Iran War after declining in 2023, 2024, and 2025. The U.S. Energy Information Administration (EIA) projected crude output would rise from a record 13.6 million barrels per day (bpd) in 2025 to 13.7 million bpd in 2026.
On the gas side, EIA projected output would rise from a record 107.7 billion cubic feet per day (bcfd) in 2025 to 110.6 bcfd in 2026, even though spot prices at the U.S. Henry Hub benchmark in Louisiana were expected to ease by about 1% in 2026.
Reporting by Scott DiSavino; Editing by David Gregorio
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Covers the North American power and natural gas markets.
