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Baker Hughes (BKR) Teams up to Electrify Oil & Gas Facilities

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Baker Hughes Company (BKR - Free Report) partnered with Marine Power Systems to provide integrated solutions for electrifying oil and gas facilities, and their supporting subsea systems, per an Offshore Energy report.

The latest partnership involves Marine Power Systems’ PelaFlex offshore wind platform solution, which is capable of maximizing energy production and reducing lifecycle costs in electrifying applications.

The platform’s design provides system stability, minimal seabed footprint and zero tilt, thereby reducing the damage resulting from the use of the turbine and maximizing energy yields. This will allow PelaFlex to access several wind turbine generator OEM products.

PelaFlex’s ability to maximize energy yields at low cost in the world’s most hostile offshore environments makes it an optimum solution for electrifying oil and gas applications. Marine Power Systems’ partnership with Baker Hughes will help decarbonize offshore operations for a sustainable energy future.

The energy industry participants are facing immense pressure to demonstrate the significance of energy transitions for their operations and business models. Infrastructure electrification and the deployment of all-electric systems will help deliver low-cost and low-carbon energy.

In April, Baker Hughes also formed a partnership with marine construction and operations contractor Ocean Installer to deliver an integrated subsea engineering solution, designed to provide efficiencies from project appraisal through to operations.

The agreement will help minimize the costs and delivery time of offshore developments, including energy transition projects.

Price Performance

Shares of Baker Hughes have outperformed the industry in the past six months. The stock has gained 14% compared with the industry’s 11.1% growth.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Zacks Rank & Stocks to Consider

BKR currently carries a Zack Rank #3 (Hold).

Investors interested in the energy sector might look at the following companies that presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Crestwood Equity Partners LP  projects an adjusted EBITDA of $780-$860 million for this year.

In the past three months, Crestwood’s shares have risen 3.9%. The Zacks Consensus Estimate for CEQP’s 2023 and 2024 earnings per share is pegged at $1.55 and $1.85, respectively.

Dril-Quip Inc.  is valued at more than $930 million. In the past three months, its shares have risen 17%.

The Zacks Consensus Estimate for Dril-Quip’s 2023 and 2024 earnings per share is pegged at 34 cents and 85 cents, respectively.

Evolution Petroleum (EPM - Free Report) is worth $320 million. In the past three months, its shares have risen 24.9%.

The Zacks Consensus Estimate for EPM’s 2023 and 2024 earnings per share is pegged at $1.11 and $1.08, respectively.


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