Baker Hughes BHI

1
Baker Hughes (BHI)

• Industry Oil Gas Equipment Services
• Sector Basic Materials

2
Table of Contents

• I. Fundamentals
• II. Price Charts
• III. Comparable Company Analysis
• IV. Financial Features
• V. Conclusions

3
Business Profile

• Headquarters Houston, TX
• Operates in 92 countries
• Founded 1972
• Merger of Hughes Tool Co. Baker Intl
• Brown Oil Tools, CTC, Edeco, Elder Oil, Milchem,
  Newpark, Exlog, Eastman Christenesen, Drilex,
  Teleco, Tri-State Wilson, Aquaness, Chemlink,
  Petrolite, Western Atlas
• Technology Drilling Evaluation Completion
  Production

4
Divisions

• Baker Hughes Drilling Fluids
• Hughes Christensen
• INTEQ
• Baker Atlas
• Baker Oil Tools
• Baker Petrolite
• Centrilift

5
I. Core Earnings Drivers

• North America revenue up 32
• Thermo-Coil unit for liquid loading
• Rate of penetration and total footage increases
• Latin American revenue up 10
• Mud system in Peruvian jungle
• Venezuela depth record
• Europe Africa revenue up 21
• Libya, Kazakhstan, Nigeria depth records
• Middle East Asia Pacific up 23
• Improved drilling time from 6 months to 40 days

6
Price Charts
7
Comps. Analysis
8
III. Comps. analysis

•    

9
Financial Features

•    

10
V. Conclusions

• Sustained market growth
• Particularly in Eastern Hemisphere
• Increasing drilling depth and accuracy
• Reducing drilling time, costs, and risks
• North America short-term decline
• BUY 75 shares for at least 12 months and at most
  48 months
• Stop / Loss 55
• Absolute Sell Target 110

11

• http//quicktake.morningstar.com/Stock/Diagnostics
  .asp?CountryUSASymbolBHIstocktabinterpretpgi
  dqtqnnavinterpret