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Baker Hughes (BKR) to Deliver 3 Trains for Texas LNG Project

Zacks Equity Research
·3-min read

Baker Hughes Company BKR received a contract from Bechtel Energy to supply three liquefaction trains for NextDecade’s Rio Grande liquefied natural gas (“LNG”) project in Texas.

The liquefaction trains will have a production capacity of 17.61 million tons per annum (“Mtpa”). Notably, liquefaction trains convert natural gas into LNG for export.

Per the contract, Baker Hughes will supply six Frame 7 gas turbines, which will be associated with 18 centrifugal compressors across the Rio Grande facility’s first three LNG trains. This is expected to provide more operational flexibility.

The Frame 7 gas turbine is planned to deliver energy efficiency, availability, reliability and maintainability. The contract will be booked in the second quarter of 2023. Baker Hughes did not reveal any financial details of the contract.

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Baker Hughes’ gas technology solution has been selected for the Rio Grande LNG project. It will provide NextDecade with the highest production rates for the facility’s design. It will also offer operational flexibility and high availability.

BKR plans to conduct the packaging of the turbine/compressor train, and the assembly of the compressors and the testing of the trains at its Italy facilities. At maximum capacity, the Rio Grande LNG project is expected to produce 27 Mtpa of LNG.

Baker Hughes is recognized as an industry leader in the LNG space. The company continues to help address the global energy demand by providing advanced, efficient and reliable solutions for the U.S. natural gas export sector. BKR’s reliable technology solution will support LNG production in the United States.

The latest agreement expands Baker Hughes’ long-term relationship with Bechtel Energy. In March 2023, BKR won an order from Bechtel to supply two Main Refrigerant Compressors for Sempra Infrastructure’s Port Arthur LNG Phase 1 project in Texas.

Price Performance

Shares of Baker Hughes have outperformed the industry in the past three months. The stock has gained 13.5% compared with the industry’s 7.8% growth.

 

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

 

Zacks Rank & Stocks to Consider

BKR currently carries a Zack Rank #3 (Hold).

Some better-ranked players in the energy space are Oceaneering International, Inc. OII, Seadrill Limited SDRL and Evolution Petroleum Corporation EPM, currently sporting a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

One of the leading suppliers of integrated technology solutions, Oceaneering boasts an impressive portfolio of diversified products and services. OII has a Zacks Style Score of A for Momentum and B for Growth.

Oceaneering has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 30 days. The consensus estimate for SDRL’s 2023 and 2024 earnings per share is pegged at $1.12 and $1.29, respectively.

Seadrill is a market-leading international driller with strong exposure in key strategic basins like the U.S. Gulf of Mexico, Brazil and Angola. SDRL reported first-quarter 2023 earnings of 83 cents per share, beating the Zacks Consensus Estimate of earnings of 55 cents per share.

Seadrill has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 30 days. The consensus estimate for SDRL’s 2023 and 2024 earnings per share is pegged at $2.93 and $4.01, respectively.

Evolution Petroleum is an independent energy company. EPM reported first-quarter 2023 earnings of 42 cents per share, beating the Zacks Consensus Estimate of earnings of 17 cents.

Evolution Petroleum has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 60 days. The consensus estimate for EPM’s 2023 and 2024 earnings is pegged at $1.11 per share and $1.05 per share, respectively.

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Seadrill Limited (SDRL) : Free Stock Analysis Report

Baker Hughes Company (BKR) : Free Stock Analysis Report

Evolution Petroleum Corporation, Inc. (EPM) : Free Stock Analysis Report

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