Energy
How Baker Hughes and Halliburton Would Stack Up Against Schlumberger
Published:
Last Updated:
The Wall Street Journal cites unnamed sources who say that talks between Halliburton and Baker Hughes are “moving quickly, and they could reach an agreement soon.” The report sparked a late afternoon burst in Baker Hughes stock, sending shares up 15.24% for the day after trading in the red for most of the day. According to the WSJ, Halliburton would be the acquirer.
How would a combined Halliburton-Baker Hughes stack up with Schlumberger? In 2012, the two companies posted combined net income of $3.97 billion and revenues of $49.86 billion, compared with Schlumberger’s net income total of $5.52 billion on revenues of $41.73 billion. For 2013, the combined companies reported net income of $3.24 billion on revenues of $51.76. Schlumberger posted net income of $6.77 billion on revenues of $45.27 billion for 2013.
A combined Halliburton-Baker Hughes would likely top Schlumberger’s revenues, but the combined company would have to make some big changes to match Schlumberger’s profitability. For example, cutting costs to wring more profit out of the revenue dollars. That’s where the magic word — synergies — comes in, and we could expect to see some sizeable cuts to headcounts. Halliburton reports 80,000 employees and Baker Hughes reports 61,100 for a total of 141,100. Schlumberger reports 123,000 employees. That offers some idea of where more profits will have to come from.
Schlumberger’s shares traded down 2.65% on Thursday to close at $94.85, in a 52-week range of $84.91 to $118.76.
Halliburton’s shares rose 1.05% to close at $53.79, in a 52-week range of $47.60 to $74.33.
And, as we noted, Baker Hughes closed at $58.75, up 15.24%, in a 52-week range of $47.51 to $75.64.
ALSO READ: Early Signs of a Pullback in Drilling Activity
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
