Tag: strategy

Posted on

The Grapevine: Baker Hughes

OIlfield Grapevine

Earlier this week, Baker Hughes reported financial results for the final quarter of 2012. As had been telegraphed, earnings were down compared to the same period a year ago. Revenues were off as well. Below are some thoughts regarding what we’ve read and heard from the company’s management and its customers, as well as some input from others in the oilfield:

  • We get the sense Baker Hughes is beginning to re-evaluate some of its strategic assumptions and decisions. For one, management is now rationalizing certain operations in global geo-markets whose prospects are questionable. This seems a smart, if overdue, move. Continue reading “The Grapevine: Baker Hughes”
Posted on

Baker Hughes Remains A Work In Progress

Under Construction

Transitions are hard, especially big ones. They’re even more challenging when they take a company from a well-plotted, successful path to an more uncertain one. Such is the story with Baker Hughes.

It’s been over three years since Baker Hughes embarked on its high-profile effort to transform from a relatively decentralized oilfield products and services provider to one determined to compete more widely and deftly via an expanded and deepened global footprint, along with a more integrated suite of products and services. To date, the promise of the strategy has yet to fully materialize. Continue reading “Baker Hughes Remains A Work In Progress”

Posted on

Gardner Denver’s Dance Card to Fill Up Fast

Dance Card

Late last week, Gardner Denver acknowledged it has engaged investment bankers at Goldman Sachs to help evaluate potential strategic alternatives, including sale of the company.

The company’s stock price jumped with the news. However, there’s reason to believe an eventual sale of Gardner Denver could be done at a price materially above current stock-price levels, especially since its shares seem to have been trading at a discount prior to the run-up. Continue reading “Gardner Denver’s Dance Card to Fill Up Fast”

Posted on

Suppliers’ Lockstep Strategies Not the Answer

Marching

Within the upstream oil and gas industry, there’s a limited number of oilfield suppliers possessing the size and scope to be considered fully integrated and/or global in nature. On the services side, the roll (listed alphabetically) includes Baker Hughes, Halliburton, Schlumberger and Weatherford International. For capital equipment, it’s Aker Solutions, Cameron International, FMC Technologies, GE Oil & Gas and National Oilwell Varco.

On a combined basis, these nine super suppliers (did we just coin a new term?) currently represent about a quarter of all supplier-segment sales to the global upstream. Yet, none of these companies currently enjoy above-average ratings in EnergyPoint Research’s independent customer satisfaction surveys. And the latest trends don’t suggest the situation will significantly change anytime soon.

Continue reading “Suppliers’ Lockstep Strategies Not the Answer”

Posted on

Positive Change Underway at Nabors Industries

Nabors Industries Featured Image

Are positive changes are underway at Nabors Industries? The company, which currently rates Low overall but is trending Upward in EnergyPoint’s oilfield customer satisfaction ratings, seems to be undergoing a cultural and strategic transformation under the leadership of Tony Petrello, who recently replaced Gene Isenberg as CEO.

As COO, Petrello was seen by many as complicit in the strategies and ways of Isenberg. So, were not sure if these transformational steps Petrello’s own initiative, or if they stem from specific directives from an increasingly proactive board. Continue reading “Positive Change Underway at Nabors Industries”

Posted on

Oilfield Suppliers as Changes Agents?

Oilfield Suppliers As Change Agents

If there’s one truth that data from EnergyPoint Research’s independent studies reveals, it is that upstream oil and gas customers respond to steady quality and reliable support from suppliers.

Despite these customer entreats, our latest survey suggests many high-profile equipment and material suppliers continue to repeat performance-killing mistakes: design flaws, lack of quality controls, poor commissioning practices, and a disproportionate focus on acquisitions. Continue reading “Oilfield Suppliers as Changes Agents?”