Here's Why This Hot Oil and Gas Services Stock Soared in July
Shares in oil and gas equipment and services company Baker Hughes (NASDAQ: BKR) rose by 10.1% in July, according to data provided by S&P Global Market Intelligence. The move comes after an impressive set of earnings that displayed a combination of good progress on operational improvements and margin expansion, alongside broad-based order strength in industrial and energy technology (IET) orders. Here's the lowdown.
The company operates in two segments. IET offers compression and power generation equipment for liquid natural gas (LNG), natural gas, and industrial applications. It also has a fast-growing new energy business (including carbon capture, hydrogen, and clean power solutions). The second segment, oilfield services and equipment (OFSE), offers drilling, well construction, and well maintenance and enhancement equipment and services.
Management aims to increase OFSE earnings before interest, taxes, depreciation, and amortization (EBITDA) from 16.9% to 20% by 2025. Similarly, management seeks to increase IET EBITDA margin from 15% to 20% by 2026.
Source Fool.com
