Baker Hughes Company BKR is planning to expand its presence beyond oil and gas field services since upstream players around the world are transitioning to low carbon footprint, as said by Lorenzo Simonelli – the company’s Chairman and CEO.
Energy majors are under pressure from investors to lower carbon emissions. With renewables being the fastest-growing energy source in the global market, many of the big oil energy firms are increasing the weightage of clean energy in their portfolio. Thus, with growth in renewable energy like wind and solar, there has been a decline in demand for oilfield services.
To capitalize on clean energy’s growing trend, Baker Hughes is divesting oilfield assets and is putting more emphasis on investing in technologies that will help customers to lower emissions. Notably, the oilfield service player targets to become a net-zero emissions company by 2050.
Baker Hughes is well positioned to gain since it can deliver proprietary post-combustion carbon capture solutions. At a large scale, the company designs and executes integrated carbon capture, use, and storage developments, helping its customers to achieve their carbon reduction targets.
Simonelli said that with big oil firms set for energy transition, Baker Hughes will emphasize on cost-cutting measures at its oilfield services and oilfield equipment businesses. Importantly, Simonelli is not foreseeing massive recovery in the company’s oilfield equipment business next year.
Baker Hughes Company Price
Baker Hughes Company price | Baker Hughes Company Quote
Based in Houston, TX, Baker Hughes currently carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space are Pioneer Natural Resources Company PXD, Concho Resources Inc. CXO and EOG Resources, Inc. EOG, each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Pioneer Natural has seen upward earnings estimate revisions for 2020 in the past 30 days.
Concho is likely to see earnings growth of 21.6% in 2020.
EOG Resources’ 2020 bottom-line estimates have risen more than 200% over the past 30 days.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Pioneer Natural Resources Company (PXD) : Free Stock Analysis Report
EOG Resources, Inc. (EOG) : Free Stock Analysis Report
Concho Resources Inc. (CXO) : Free Stock Analysis Report
Baker Hughes Company (BKR) : Free Stock Analysis Report
To read this article on Zacks.com click here.