Did Baker Hughes' (BKR) New LNG and Upstream Wins Just Shift Its Investment Narrative?

• Earlier this week, Baker Hughes announced it received a Full Notice To Proceed from Technip Energies, on behalf of Commonwealth LNG, to supply six LM9000-powered refrigerant turbo compressors for a 9.5 million tonnes per annum export facility under development in Cameron, Louisiana.
• This LNG equipment award, alongside Baker Hughes’ recent multi-year artificial lift and digital optimization contract with Kuwait Oil Company, underscores how its gas technology and production solutions are being embedded into large, long-duration energy projects across both LNG and upstream markets.
• We’ll now examine how winning the Commonwealth LNG liquefaction equipment award could influence Baker Hughes’ investment narrative and future cash-flow visibility.

These 12 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.

Baker Hughes Investment Narrative Recap

To own Baker Hughes, you need to believe that LNG, natural gas and gas technology will remain central in meeting global energy demand, and that the company can keep converting that demand into profitable, long-duration equipment and service backlogs. The Commonwealth LNG award solidifies near to medium term cash flow visibility within its gas technology franchise; it does not, however, fundamentally reduce Baker Hughes’ biggest near term risk around policy driven shifts toward renewables and potential pressure on gas centric growth assumptions.

Among the recent updates, the multi year artificial lift and digital optimization agreement with Kuwait Oil Company stands out as highly relevant. Together with the Commonwealth LNG order, it reinforces one of Baker Hughes’ key catalysts: building a larger base of contractually backed, technology heavy work across LNG and upstream production, which can support backlog resilience even if shorter cycle oilfield spending and rig activity remain choppy.

Yet even with these new contracts, investors still need to watch the risk that faster policy shifts toward renewables and electrification could...

Read the full narrative on Baker Hughes (it's free!)

Baker Hughes' narrative projects $29.1 billion revenue and $2.9 billion earnings by 2028.

Uncover how Baker Hughes' forecasts yield a $53.14 fair value, a 17% upside to its current price.

Exploring Other Perspectives

Four members of the Simply Wall St Community currently see Baker Hughes’ fair value between US$50 and about US$74.8, highlighting a wide span of individual expectations. Set against that, the company’s growing backlog of large LNG and production technology contracts ties its prospects closely to how durable gas centric energy demand ultimately proves to be for future returns.

Explore 4 other fair value estimates on Baker Hughes - why the stock might be worth just $50.00!

Build Your Own Baker Hughes Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Baker Hughes research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Baker Hughes research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Baker Hughes' overall financial health at a glance.

Interested In Other Possibilities?

Our top stock finds are flying under the radar-for now. Get in early:

• AI is about to change healthcare. These 29 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.
• Trump's oil boom is here - pipelines are primed to profit. Discover the 22 US stocks riding the wave.
• Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 37 best rare earth metal stocks of the very few that mine this essential strategic resource.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com