Baker Hughes

Halliburton Is Buying Baker Hughes

November 19, 2014 in Companies, E&P Operations by Rich Piellisch  |  No Comments

$34.6 Billion Deal Is Expected to Close Next Year

Halliburton and Baker Hughes have announced a definitive agreement under which Halliburton will acquire all the outstanding shares of Baker Hughes via a stock and cash transaction valued at $34.6 billion.

The new Halliburton will account for an estimated 75% of all hydraulic fracturing operations. It will have annual sales totaling upwards of $50 billion, and reportedly will be second only to Schlumberger in the oilfield services arena.

Baker Hughes acquired pressure pumping technology through the acquisition of BJ Services in 2010.

Baker Hughes acquired pressure pumping technology through the acquisition of BJ Services in 2010.

“The transaction combines two highly complementary suites of products and services into a comprehensive offering to oil and natural gas customers,” Halliburton said, describing a “bellwether global oilfield services company [offering] compelling benefits for the stockholders, customers and other stakeholders.”

‘We Know How’

Also according to reports, the agreement follows a hostile takeover attempt by Halliburton and disclosure last week of negotiation details by Baker Hughes.

“We know how to create value, how to execute, and how to integrate in order to make this combination successful,” Halliburton chairman and CEO Dave Lesar said in the acquisition announcement.

“The transaction will combine the companies’ product and service capabilities to deliver an unsurpassed depth and breadth of solutions to our customers, creating a Houston-based global oilfield services champion, manufacturing and exporting technologies, and creating jobs and serving customers around the globe,” Lesar said.

“We expect the combination to yield annual cost synergies of nearly $2 billion.”

‘A Larger, More Competitive Global Company’

The buy by Halliburton “brings our stockholders a significant premium and the opportunity to own a meaningful share in a larger, more competitive global company,” said Baker Hughes chairman and CEO Martin Craighead.

“By combining two great companies that have delivered cutting-edge solutions to customers in the worldwide oil and gas industry for more than a century, we will create a new world of opportunities.”

The new Halliburton will employ upwards of 136,000 employees in more than 80 countries around the world. Divestitures to head off antitrust objections are expected – one reason the acquisition deal won’t close until the second half of 2015.

Source: Halliburton with HHP Insight follow-up

Ferus LNG for Frack Engines

November 29, 2012 in E&P Operations, LNG by Rich Piellisch  |  No Comments

South Texas Eagle Ford Shale Project a Success,
Cummins QSK50 Engines with Controls by ComAp

LNG is becoming increasingly common as a fuel for drill rig engines. And it’s beginning to be used for the larger and more numerous engines at frack sites.

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