Energy Sector Review: Baker Hughes Earnings, Australia Joins EU Iranian Oil Ban

Bill Barrett Corporation (NYSE:BBG): Bill Barrett stated “We enter 2012 with eight of nine drilling rigs targeting oil and NGLs, focusing our capital expenditures on the highest return programs in the face of natural gas forward strip prices at a 10-year low. Our capital expenditure budget for 2012 is $900M-$1,000M, yet our plan offers flexibility to be adjusted to meet macro-industry trends. Capital expenditures beyond expected cash flows represent an operational transition to higher margin liquids growth. Our three-year plan will ultimately allow us to closer align capital expenditures and cash flow while maintaining double digit production growth. Our 2012 capital budget includes approximately 15% for exploration, where we have built an exciting and active portfolio of prospects, all of which are horizontal oil targets. Our production guidance for 2012 is 126B-130B cubic feet equivalent offering 18% to 22% growth, including nearly 80% growth in oil production. Currently, we have approximately 50% of natural gas production hedged at an average price of $4.33 per million British thermal units, partially mitigating our exposure to the current negative commodity price environment for natural gas. We expect approximately 13% of 2012 production to be oil and approximately 16% of production to benefit from NGL pricing.”

The shares closed at $28.40, down $1.91, or 6.3%, on the day. Its market capitalization is $1.35 billion.

Exxon Mobil Corporation (NYSE:XOM): Australia will follow the EU in banning oil imports from Iran, Reuters reports, citing comments from the country’s foreign minister, Kevin Rudd. Rudd says “On the question of Iran, let me be absolutely clear (regarding) the actions taken in Brussels yesterday on sanctions by the European Union — we in Australia will undertake precisely the same parallel action for Australia.”

The shares closed at $87.18, down $0.29, or 0.33%, on the day. Its market capitalization is $417.87 billion.

Baker Hughes Incorporated (NYSE:BHI): Martin Craighead, President and CCO commented: “We are pleased with our international margins of 16% in Q4, with contributions across all regions. Our business continues to improve and we benefited from increased activity, a favorable product mix as well as typical seasonal product sales. For 2012, we expect international growth to continue, particularly in the Latin America, Middle East, and deepwater markets.”

The shares closed at $47.44, down $0.29, or 0.61%, on the day. Its market capitalization is $20.71 billion.

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