![]() 30 report.Īt that price, the company appears to be divesting at “distressed-sale levels,” he said.īaker Hughes and analysts said there are virtues to be found in slimming down, however. Compared to roughly $1,000/hhp for a newbuild, Baker Hughes discounted its fleet by 85%, Kelly said in a Nov. That suggests that the company values the assets at $150 per hhp. Baker Hughes will retain a 46.7% ownership stake.Īssuming no value for other equipment, Baker Hughes’ transaction gives its 1.9 million hydraulic horsepower (hhp) and its land stimulation business a value of $281 million, said Mike Kelly, senior analyst with Seaport Global Securities LLC. In exchange, CSL Capital and West Street will own 53.3% of BJ Services. The remaining $175 million will be used to run BJ Services. Others said shedding a potential cash flow-losing segment works in the company's favor. ![]() Some analysts questioned whether Baker Hughes settled for too little for its North American fracking assets. The $325 million deal makes Baker Hughes a minority owner in its fleet, though just $150 million will go directly to its coffers. 29, Baker Hughes entered an agreement with private equity funds CSL Capital Management and Goldman Sachs’ West Street Energy Partners to form a new North American fracking company operating under the 144-year-old BJ Services brand. However, the deal for the company's pressure pumping fleet suggests Baker Hughes may be putting the cart before the horsepower. (NYSE: BHI) is unloading some of its capital-heavy operations in preparation for the company's mega-merger with GE Oil & Gas. Meritorious Awards for Engineering Innovation (MEAs)īaker Hughes Inc.Rextag database of energy infrastructure assets Prices for top E&P stocks and commodities. Information on assets, buyers and sellers, deal values, and more.Ī searchable database of oil and gas debt and equity offerings. ![]()
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