Baker Hughes sees 'multi-decade growth opportunity' for natural gas
marketlan

Baker Hughes (NASDAQ:BKR) +4.2% to a six-week high in Wednesday's trading after beating Q1 expectations and forecasting decades-long growth in natural gas.
The current environment "remains unique, with a spending cycle that is more durable and less sensitive to commodity price swings relative to prior cycles," highlighted by the "continued shift toward the development of natural gas and LNG," CEO Lorenzo Simonelli said on the company's earnings conference call.
"As the world increasingly recognizes the crucial role natural gas will play in the energy transition, serving as both the transition and destination fuel, the case for a multi-decade growth opportunity and gas is steadily improving," the CEO said. "We are seeing the early stages of this shift through a step-up in the exploration and development of gas reserves in regions like Africa, the Middle East and the Eastern Mediterranean.
Based on conversations with existing and new customers, Baker Hughes (BKR) sees "the potential for this LNG cycle to extend for several years with a pipeline of new international opportunities, expanding project visibility out to 2026 and beyond."
CFO Nancy Buese said Baker Hughes (BKR) plans an unspecified number of additional job cuts by the end of this year, which will help the company surpass its $150M annual cost-reduction target.
Even though natural gas prices are more than 60% lower than last year, Baker Hughes (BKR) has "come out a lot stronger than many could have hoped for," Michael Wiggins de Oliveira writes in an analysis newly published on Seeking Alpha.