Baker Hughes Incorporated (BHI/NYSE) Baker Hughes is a top-tier oilfield service company that is headquartered in Houston, Texas. The company provides oil and gas exploration and production companies worldwide with products and services for drilling, formation valuation, production, and completion. Baker Hughes also provides services for downstream segments of the oil and gas industry. Technological innovation is at the center of Baker Hughes’ success. The company is over 100 years old, with 60,000 employees in more than 80 countries. Baker Hughes has a far larger market capitalization than Newpark. Baker Hughes has a higher P/E ratio (22.60) and lower EV/EBITDA (7.88) than Newpark, indicating mixed opinions on whether the firm is over or undervalued from the market’s perspective. However, it does have a higher diluted EPS of 2.88 and ROE of 7.16, which would show inferior performance but superior return to shareholders. Meanwhile, both companies have shown similar trends in their amount of debt carried by decreasing debt. Baker Hughes is not focused on Newpark’s niche mat segment. Baker Hughes’ main source of growth in revenue this past year in the Gulf of Mexico region is its drilling and completion fluids segment, which could be a problem for Newpark. However, these fluids are for both the drilling stage and the completion stage, where all the growth is due to gas, while Newpark only supplies fluids for drilling. Also, Baker Hughes’s growth in the U.S. onshore drilling
The Fortune 500 Company chosen for this paper is the Lockheed Martin Corporation. Lockheed Martin is a global securities and information technology company headquartered in Bethesda, MD. Lockheed Martin employs roughly 126,000 people in several facilities throughout the world. The company's main business is in research, design, development, manufacturing, integration and sustainment of advanced technology systems, products and services. Lockheed consists of four operating units, or business areas, which consist of Aeronautics, Electronic Systems, Information Systems and Global Solutions, and Space Systems (LMC, 2011).
Currently headquartered in London, BP is one of the largest producers of both oil and natural gas. BP provides its customers with fuel for transportation and energy for heat and light. BP’s core business is gas exploration and production division and their main sources of production include Angola, Argentina, Australia, Azerbaijan, Egypt, Trinidad, the United Arab Emirates, the United Kingdom and the United States (BP PLC (BP) Company Profile | Reuters.com. (n.d.). Retrieved October 27, 2015.). In 2013, BP produced 628,000 barrels of oil each day in the US and was the sixth largest producer of natural gas. Each day, BP sells 50 million gallons of fuel in the US consisting of 7,500 BP branded locations located in 13 states. BP is always seeking new opportunities for advancement in technology so that their operation is safer and more efficient. The company is leading the way in in the energy industry with the world’s largest supercomputer used for commercial research, located in Houston and also the first to use drones in the United States. To further place themselves ahead in the industry, BP has invested over $160 million in 2 dozen companies for advancements in technology. BP currently has 17,000 employees and on average, donates approximately $30 million each year to community
In the seven years (since 1994), that Lou Gerstner reigned over IBM, the company’s earnings per
First Data Corporation powers the global economy by making people and businesses to purchase products and services easily, quickly and securely, using virtually all types of electronic payments. No matter if a payment is made with a gift card, a credit or debit card, or even a check, First Data always processes the transaction and safely use the power of information in favor of millions of merchants and thousands card issuers distributed among 36 countries, offering them intelligent services and greater awareness of their customers. They also offers a set of solutions to help
Week 7 Chapter 6: Investors in the Share Market True/False QUESTIONS 1. Investing in shares of publicly listed corporations should, on average, over time provide a higher return than investing in fixed-interest securities. a. True b. False 2. Investments through a stock exchange are limited to ordinary shares issued by listed corporations. a. True b. False 3. Portfolio theory contends that a diversified share portfolio enables an investor to significantly reduce the portfolio’s exposure to systematic risk. a. True b. False 4. A share that has a beta of one is twice as risky as an average share listed on a stock market. a. True b. False 5. Shares that typically demonstrate a negative price correlation will usually move in the same direction
WellPoint Company is an independent licensee of the Blue Cross and Blue Shield Association (BCBSA) and the association of independent health benefit plans. WellPoint is headquartered in Indianapolis, Indiana and employs 48,200 people (Market Line, 2014). WellPoint’s total revenue was $71,023.5 million in 2013, operating profit was $4,588.2 million and net profit was $2,489.7 million. According to the Market Line (2014) research analysis, WellPoint’s strength is having a broad membership via affiliate medical plans and individual subsidiary plans. Through WellPoint’s deal making legacy in merger and acquisitions and has the potential to increase its portfolio and attract new markets.
Dow Chemical Company is a manufacturer and supplier of products used primarily as raw materials in the manufacture of customer products and services. Its product lines include chemicals, advanced materials, agro-sciences and plastics businesses. Attached are the excerpts from Dow Chemical’s Annual report for 2012. Based on the information in the financial statements and footnotes, please, answer the questions below. Assume a tax rate of 35%.
(BP) happens to be one of the largest oil and gas companies in the world. There operations include the exploration and production of natural gas and crude oil; to include the refining of crude oil; and the manufacturing of petroleum products.
Which classification system is available with EQS as a criteria for your screen of equities?
Among many companies presently operating in the US market, I choose to analyze the CVS Health Corporation (NYSE:CVS) and Omnicare, Inc. (NYSE: OCR). CVS Health Corp., formerly known as CVS Caremark Corporation is an American retail pharmacy company, established in 1963 with headquarters in Woonsocket, Rhode Island, which operates in the industry of Healthcare Services (Pharmacy services and Retail Drugstore). Stimulated by the aspiration of assisting its customers in improving their health and quality of life, CVS, through its owned subsidiaries and third-party organizations alongside its own stores provides a range of quality products and services, administering a business activity constituted of three major operating segments including:
BP is best known as a global leader providing oil and gas to customers. They also produce lubricants for use with engines and
The Kroger Co. (NYSE:KR) is a grocery retailer and is recognized as one of the largest in the world. As it states in the History of Kroger published by the Kroger Company Mr. Barney Kroger, a son of a merchant invested his life savings of 372.00 in 1883 to open a grocery store.
Bloomberg reports that Halliburton controls 6.40% of the market share for the “oil and gas services” industry while it’s two biggest competitors, Schlumberger and Baker Hughes, control 10.00% and 4.90% respectively ("Bloomberg Industry Market Leaders"). It is evident that the anticipated consolidation is the two companies’ attempt to dethrone Schlumberger as the company with the largest market share, or at the very least, gain a large portion of the market. Baker Hughes, a company serving the same customer base as Halliburton, has accrued in 2015 revenues nearing $8.56 billion, expenses of $9.48 billion, facing future liabilities of over $3.9 billion, and a total net loss nearing $800 million ("Baker Hughes Incorporated", p. 2, 4).
In 2010, Halliburton produced revenue of $17,973 billion and operating income of $3,009 billion, reflecting an operating margin of approximately 17%. Revenue increased by $3,298 billion, or 22% from 2009, while operating income increased $1,015 billion, or 51% from 2009. According to Halliburton’s 2010 Annual Report, “these increases were due to its customers’ higher capital spending throughout 2010, led by increased drilling activity and pricing improvements in North America” (Hal 2010 annual report). However, Halliburton remains cautious because of the shifts in oil and natural gas prices and supply/demand factors. These “shifts” are important for equipment and services providers in the oil and gas industry because it affects the
BP p.l.c. is an energy company with an upstream business of extracting crude oil and downstream business of providing processed energy to companies. It is listed in both the New York Stock Exchange (NYSE) based in the United States of America and the London Stock Exchange (LSE). BP is based in London and they carry out oil prospecting extraction and retail its product in more than 70 countries. Out of the companies operating in the oil industry, the biggest two competitor of BP is ExxonMobil and Chevron. ExxonMobil and Chevron are chosen due to their similarities to BP and they are ranked