Baker Hughes Inc. (BHI, Financial) filed Quarterly Report for the period ended 2010-06-30.
Baker Hughes Inc. has a market cap of $17.9 billion; its shares were traded at around $41.73 with a P/E ratio of 27.3 and P/S ratio of 1.9. The dividend yield of Baker Hughes Inc. stocks is 1.4%. Baker Hughes Inc. had an annual average earning growth of 16.3% over the past 10 years. GuruFocus rated Baker Hughes Inc. the business predictability rank of 2.5-star.BHI is in the portfolios of Robert Rodriguez of FPA Capital, T Boone Pickens of BP Capital, Andreas Halvorsen of Viking Global Investors LP, First Pacific Advisors of First Pacific Advisors, LLC, Manning & Napier Advisors, Inc, Dodge & Cox, Brian Rogers of T Rowe Price Equity Income Fund, John Buckingham of Al Frank Asset Management, Inc., Bruce Kovner of Caxton Associates, Jeremy Grantham of GMO LLC, Steven Cohen of SAC Capital Advisors.
We reported net income of $93 million in the second quarter of 2010, which included $51 million of after-tax acquisition-related costs. This compares to net income of $87 million reported for the second quarter of 2009. For the first six months of 2010, we reported net income of $222 million, which included $58 million of after-tax acquisition-related costs, compared to net income of $282 million reported for the first six months of 2009.
During the quarter, we completed the acquisition of BJ Services, a leading provider of pressure pumping and other oilfield services, for $6.9 billion in cash and stock. This acquisition provides us with a proven leader in the areas of pressure pumping, stimulation and fracturing and compliments our existing product portfolio, allowing us to provide a full suite of products and services to meet the needs of our customers. For the second quarter of 2010, our results are inclusive of BJ Services results from April 28, 2010 through June 30, 2010. For the year ended September 30, 2009, BJ Services revenues were $4.1 billion, BJ Services employed approximately 14,000 people and operated in over 50 countries.
Oil prices averaged $77.88/Bbl in the second quarter of 2010. Prices ranged from a high of $86.84/Bbl in early April to a low of $65.96/Bbl in late May. Oil prices strengthened from the low in late May through the end of the quarter driven by expectations of worldwide economic recovery and energy demand growth, particularly in Asia and the Middle East. The International Energy Agency (IEA) estimated in its July 2010 Oil Market Report that worldwide demand would increase 2.1% to 86.5 million barrels per day in 2010, up from an estimated 84.7 million barrels per day in 2009.
Natural gas prices averaged $4.33/mmBtu in the second quarter of 2010. Natural gas prices varied from a low of $3.72/mmBtu in early April to a high of $5.17/mmBtu in mid-June. At quarter-end, working natural gas in storage was 2,684 Bcf, 37 Bcf or 1% below the corresponding week in 2009.
North America profit before tax was $204 million in the second quarter of 2010, an increase of $218 million from a loss of $14 million in the second quarter of 2009. The primary drivers include improved tool utilization, improved absorption of manufacturing and other overhead, and higher pricing driven by activity increases primarily in the U.S. Land and Canada geomarkets and the acquisition of BJ Services. This improvement was partially offset by the negative impact to our business in June 2010 from the drilling moratorium in the Gulf of Mexico.
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Baker Hughes Inc. has a market cap of $17.9 billion; its shares were traded at around $41.73 with a P/E ratio of 27.3 and P/S ratio of 1.9. The dividend yield of Baker Hughes Inc. stocks is 1.4%. Baker Hughes Inc. had an annual average earning growth of 16.3% over the past 10 years. GuruFocus rated Baker Hughes Inc. the business predictability rank of 2.5-star.BHI is in the portfolios of Robert Rodriguez of FPA Capital, T Boone Pickens of BP Capital, Andreas Halvorsen of Viking Global Investors LP, First Pacific Advisors of First Pacific Advisors, LLC, Manning & Napier Advisors, Inc, Dodge & Cox, Brian Rogers of T Rowe Price Equity Income Fund, John Buckingham of Al Frank Asset Management, Inc., Bruce Kovner of Caxton Associates, Jeremy Grantham of GMO LLC, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
Total revenue for the second quarter of 2010 was $3.4 billion, an increase of $1.1 billion or 44% over the same quarter a year ago. Total revenue for the first six months of 2010 was $5.9 billion, an increase of $0.9 billion or 18% over the same period a year ago. These increases are primarily due to the acquisition of BJ Services on April 28, 2010, which provided $0.8 billion of revenue in the second quarter of 2010.We reported net income of $93 million in the second quarter of 2010, which included $51 million of after-tax acquisition-related costs. This compares to net income of $87 million reported for the second quarter of 2009. For the first six months of 2010, we reported net income of $222 million, which included $58 million of after-tax acquisition-related costs, compared to net income of $282 million reported for the first six months of 2009.
During the quarter, we completed the acquisition of BJ Services, a leading provider of pressure pumping and other oilfield services, for $6.9 billion in cash and stock. This acquisition provides us with a proven leader in the areas of pressure pumping, stimulation and fracturing and compliments our existing product portfolio, allowing us to provide a full suite of products and services to meet the needs of our customers. For the second quarter of 2010, our results are inclusive of BJ Services results from April 28, 2010 through June 30, 2010. For the year ended September 30, 2009, BJ Services revenues were $4.1 billion, BJ Services employed approximately 14,000 people and operated in over 50 countries.
Oil prices averaged $77.88/Bbl in the second quarter of 2010. Prices ranged from a high of $86.84/Bbl in early April to a low of $65.96/Bbl in late May. Oil prices strengthened from the low in late May through the end of the quarter driven by expectations of worldwide economic recovery and energy demand growth, particularly in Asia and the Middle East. The International Energy Agency (IEA) estimated in its July 2010 Oil Market Report that worldwide demand would increase 2.1% to 86.5 million barrels per day in 2010, up from an estimated 84.7 million barrels per day in 2009.
Natural gas prices averaged $4.33/mmBtu in the second quarter of 2010. Natural gas prices varied from a low of $3.72/mmBtu in early April to a high of $5.17/mmBtu in mid-June. At quarter-end, working natural gas in storage was 2,684 Bcf, 37 Bcf or 1% below the corresponding week in 2009.
North America profit before tax was $204 million in the second quarter of 2010, an increase of $218 million from a loss of $14 million in the second quarter of 2009. The primary drivers include improved tool utilization, improved absorption of manufacturing and other overhead, and higher pricing driven by activity increases primarily in the U.S. Land and Canada geomarkets and the acquisition of BJ Services. This improvement was partially offset by the negative impact to our business in June 2010 from the drilling moratorium in the Gulf of Mexico.
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