Baker Hughes Co (BKR)

SLB Ltd. is set to acquire German cooling equipment manufacturer Kelvion from investors including Apollo Global Management Inc. for $3.4 billion in cash. This acquisition, which includes the assumption of $700 million in debt, is aimed at expanding SLB's presence in data center services and is expected to close in the first half of 2027. Kelvion is majority-owned by Apollo-managed funds, with Triton holding a minority stake.

SLB has secured a significant role as a reservoir partner for the Havstjerne carbon storage project and launched its ExaCT electrical coiled tubing control system, highlighting its commitment to technology-driven energy transition services. Despite strong recent share price performance, with a 17.1% one-month and 42.61% year-to-date return, the stock is still considered undervalued by analysts, trading below the average price target and one intrinsic value estimate. The company's digital business, including the DELFI platform, is experiencing double-digit growth, contributing to strong net margins and a stable recurring revenue stream, though potential risks include declines in global upstream spending and integration challenges with ChampionX.

Baker Hughes (BKR) reported mixed but resilient Q4 2023 earnings, beating EPS estimates with $0.51 while narrowly missing revenue expectations at $6.83 billion. The company saw significant growth in its Industrial & Energy Technology segment, particularly in Gas Technology Equipment, and realized $150 million in structural cost reductions. Despite broader sector caution, Baker Hughes highlighted its strong backlog and sustained double-digit adjusted EBITDA growth.

Sempra Infrastructure announced plans for a significant third phase expansion of its Port Arthur LNG export project. This expansion aims to add 27 million tons per year of capacity along the US Gulf Coast. The company targets completion of this massive project by the mid-2030s.

BP has awarded Halliburton an integrated drilling and evaluation services contract for an appraisal campaign at its Bumerangue discovery offshore Brazil. The appraisal aims to gather dynamic reservoir data to assess how the estimated 8 billion barrels of liquids in place can be developed. Drilling is expected to commence in late 2026 or early 2027 to understand fluid flow within the high-quality pre-salt carbonate reservoir.