Stock Pulse
Baker Hughes (BKR) reported a decrease in the total US oil and gas rig count for the third consecutive week, dropping by 7 to 583, with oil rigs down 9 and gas rigs up 1 [1], [2]. This decline is attributed to lower oil and gas prices, prompting energy firms to prioritize shareholder returns and debt reduction [2]. Despite this, BKR is exploring new opportunities in the geothermal energy market [5] and has seen a substantial increase in its return on capital employed (ROCE) over the past five years [4]. While analysts recently lowered their earnings estimates for BKR [3], the company has consistently exceeded earnings estimates in the past two quarters [7] and is expected to report another earnings beat on April 22, 2025 [7]. The company is also considered undervalued based on discounted cash flow models [6]. Finally, BKR announced changes to its board of directors [11].