Morningstar Rating

Stock Research and Analysis

by Jason Stevens

Bulls Say

Bulls cheer the merger with Halliburton, which would create a powerhouse number-two player in oil services and create the opportunity for significant synergies and margin capture.
Baker Hughes has made solid strides in both its core U.S. unconventionals market and internationally and is well positioned to see margins expand after oil prices recover.
More focus on precision products rather than commodified pressure-pumping services is lifting U.S. margins. Read more 

Bears Say

The current downturn in oil prices may put the proposed merger with Halliburton at risk, should investors demand greater compensation for stock market losses suffered due to lower oil prices and E&P spending.
Baker Hughes' North American business is struggling with efficiency issues, while its international markets are struggling to keep up with peers.
Baker Hughes' growing success in Russia over the past years is now a headwind, given sanctions. Read more 

Management

For years, Baker Hughes struggled to keep up with its larger peers because of its product rather than geo-market focus. In 2009, former CEO Chad Deaton finally reorganized the company along geo-market lines and purchased BJ Services, a pressure-pumping   Read more 

Profile

Baker Hughes provides a wide variety of oil field services, such as directional drilling, oil field chemicals, drill bits, and electronic submersible pumping systems. It   Read more 

Friday Five: A $100 Billion Week of M&A 
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