Baker Hughes Company BKR, a leading energy services provider, recently announced the sale of Waygate Technologies to Hexagon in an all-cash deal worth approximately $1.45 billion. The divestment reflects Baker Hughes’ focus on portfolio optimization, as BKR intends to concentrate on businesses that better align with its long-term goals and priorities.
Waygate Technologies was part of BKR’s Industrial and Energy Technology (IET) business segment. The deal covers Waygate Technologies’ entire portfolio of inspection-related technologies and solutions, including remote visual inspection, radiography and other imaging solutions. These technologies enable the inspection of critical assets without causing any disruptions. The deal also includes other business assets, including the associated intellectual property, operations, resources, its network and other facilities.
Baker Hughes stated that this move aligns with its larger objective of focusing on its core businesses. The sale of Waygate Technologies should also free up capital that it can use to increase investment in high-growth businesses that create greater shareholder value and improve returns. The deal is anticipated to close in the second half of this year.
BKR recently reported its third-quarter results with adjusted earnings per share (EPS) of 70 cents, topping the Zacks Consensus Estimate of 63 cents. Its revenues also surpassed the prior-year levels, reflecting a recovery in international oilfield activity and incremental contributions from the Chart acquisition.
BKR’s Zacks Rank and Key Picks
BKR currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are PBF Energy PBF, HF Sinclair Corporation DINO and Galp Energia SGPS SA GLPEY, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks Rank #1 stocks here.
PBF Energy has a geographically diverse refining network with large-scale processing capacity and a highly complex refining system. It operates six refineries, including Delaware City Refinery, Paulsboro Refinery, Toledo Refinery, Chalmette Refinery, Torrance Refinery and Martinez Refinery, with a combined throughput capacity of 1 million barrels per day and the ability to process a wide range of feedstocks. The diversified refining footprint provides the company exposure to several regional refining markets, supporting higher margins. PBF reported an earnings beat in the third quarter.
HF Sinclair Corporation is a leading downstream energy player operating across five segments: Refining, Renewables, Marketing, Lubricants & Specialties, and Midstream. The company’s primary earnings driver is its robust network of seven complex refineries across the Mid-Continent, Southwest, Rocky Mountains and Pacific Northwest. The outlook for the company’s refining business remains constructive due to tightening supplies of refined products and a supportive crack environment. DINO beat the Zacks Consensus Estimate in the third quarter by 43.8%.
Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
