Baker Hughes (BHI)
General Electric Corporation (GE -Get Report)
With the development of oil and gas business, some analysts are increasingly optimistic about the benefits of the merger of oilfield service companies.
According to the company's miss earnings for the fourth quarter of 2016, Stephen analyst Matthew Marietta called Baker Hughes to give him a list of the best ways to think of stocks with technological advantages. "I think [the]
A strategic move that does not rely on commodity prices is the biggest uptick for the company's $26.
Marietta also pointed out that "investment in the whole industry has become exciting . " The market value is 2 billion.
Baker Hughes has become a competitive all-Stream company through integration.
Analysts at Stephens believe the company can compete with the oil field service giant Schlumberger. SLB -Get Report)
In the long run, consider the advantages of Baker Hughes in the downstream business.
Schlumberger holds Jim Kramer's action alert and Charitable Trust Portfolio.
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"This is an ability for comprehensive exploration and production (E&P)
"Call a company to get everything they need, from analyzing the reservoir to gas turbines that make electricity," Marietta said . ".
James Wicklund, analyst at Credit Suisse, said at the end of October that the entire oilfield service industry was moving towards the digital world, "predictive maintenance through big data analytics, smart rigs ,[
BOPs, haidishu wood and other equipment "added that the combination of GE and Baker Hughes" increased the stakes of competitors who needed to keep up with the pace.
"When the combination is closed, it is expected to be around the medium term
2017 Baker Hughes will have complementary technologies and the opportunity to take advantage of the GE Store, through which technology, product development and services are shared and accessed by each business unit.
"We use the technology of aviation and healthcare and we share service capabilities with Power," ge ceo Jeff Immelt said in October . ".
31 phone calls with analysts on the deal.
"Predix is a common platform where oil and gas are a key component of our global growth organization and our operations in healthcare, aviation, electricity, transportation and other General Electric.
Baker Hughes CEO Martin clarehead said in October that he was particularly impressed by GE's industrial Internet operating system, Predix.
"When we start to migrate it to well construction, well production and ultimately increase the recovery factor and move the downcurve further to the right, we can play some field experience here, I think this will revolutionize the conversation that any player in the industry can help customers, "Craighead said.
Jim Cramer, portfolio manager at Action Alerts PLUS, sees Predix as a "driving force" for the future ".
"We see Predix's opportunity as a driving force for GE's development," cramer wrote in October: "Not only in the oil and gas industry, but also in all industries operated by GE, big data is becoming more and more important, helps the business to operate actively, efficiently and effectively. ".
With these technological advantages, Stephens Marietta rated BHI shares at a price target of $73.
At noon on Monday, shares of BHI fell slightly.
However, Marietta points out that if investors are looking for games that are a little cheaper
Flotek Industries (cap)FTK -Get Report)
Energy recovery ERII introducing beneficial technologies.
Flotek offers chemical advantages through its patented composite nano-materialsFluid (CnF)technology.
Stephens rated FTK as overweight for $18. "(CnF)
This is not a traditional surface active agent that the industry has been selling for many years, it is just a surface tension reducer
Chief Advisor Ely & Associates told Marietta at an investor call on December.
"We found these things through our customers (
Conventional Surface Active Agents
Many times it is harmful. . .
The CnF product changes the nature of the surface of the rock, thus allowing the production of water and oil.
Marietta believes that China National Petroleum Corporation can "release huge oil and gas resources ".
"In addition, analysts at the Corker Palmer agency said that Parsley Energy (PE -Get Report)
After discussion with Flotek management, the use of CnF will begin on 2017.
"Assuming that PE used CnF for 30% wells in Midland and 100% Wells in Delaware in 2017, we believe that the CnF revenue potential of FTK in 2017 may exceed about $20 million, "The team of analysts at Corker Palmer's agency wrote in a report dated January. 26 note. Given that non-
Core asset sales are moving forward, and it may be announced in the first half of this year that CPI analysts said, "it is difficult to short stocks here.
"The company has a fair value rating of shares with a stock price target of $17.
As for energy recovery, Stephens Marietta said, it developed a mechanical process in 2015 in collaboration with Schlumberger to "significantly" improve the life of the hydraulic pump.
"VorTeq represents a step. . .
Marietta wrote in an article in January: "Entering the pump market, the goal is to transfer corrosive support and chemicals from the hydraulic pump, thereby reducing maintenance costs.
San Leandro, California-
There is also a pressure exchange for companies at headquarters (PX)product.
Analysts at Stephens note that the PX business holds the world's leading market share in the salt water reverse osmosis desalination market, and the company is "creatively applying this technology to other markets with a focus on the oil and gas industry.
"Stephens aims to hold an increase rating of ERII shares for $18.
For Marietta, with the global oil market looking to rebalance this year, Baker Hughes, Flucker and the energy recovery ---
Companies with technical advantages in oilfield services--
Is "investors should look for places in the energy industry to change the rules of the game.