Energy Biz Review: Baker Hughes Goes To NORWAY, Chesapeake Comes BACK
Baker Hughes Inc. (NYSE:BHI) has been awarded a two-year contract to supply Norway’s Statoil ASA (NYSE:STO) with integrated drilling services for 25 fields. The arrangement is worth 3 billion kroner, or $504.47 million, and includes an option for a two-year extension.
Royal Dutch Shell (NYSE:RDS.A)(NYSE:RDS.B) says again that it intends to spend a minimum of $1 billion a year exploiting China’s potentially huge resources of shale gas. Shell’s head China executive explains that “If there has been an adjustment to that pledge, it could only be an upward revision.” So far 11 wells are being drilled in Sichuan province, a number that represents more bores than by any other international firm.
Shares of Chesapeake Energy Corporation (NYSE:CHK) have quietly moved up by 34 percent during the past three months, at the same time that natural gas prices have increased by 45 percent from their April low. In reaction, Canaccord keeps its Buy rating, pointing out that CHK’s net debt should end the year at $1 billion less than the previous target of $9.5 billion.
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