Baker Hughes Inc. (NYSE: BHI) said on April 27 that U.S. rig count will likely stabilize in the second half of the year after falling in the current quarter.
The oilfield services provider, which also reported a bigger quarterly loss, said it expected the North American rig count to fall 30% in the second quarter from the prior quarter.
The results from Baker Hughes, which is to be bought by bigger rival Halliburton Co. (NYSE: HAL), come three days ahead of a deadline set by the companies to get regulatory approval for the deal.
However, Baker Hughes said it did not expect drilling activity to increase meaningfully this year, even if the rig count held steady.
Globally, rig count is expected to drop steadily through the end of the year due to limited new projects in the pipeline, Baker Hughes said on April 27.
Net loss attributable to Baker Hughes widened to $981 million, or $2.22 per share, in the first quarter ended March 31 from $589 million, or $1.35 per share, a year earlier.
Revenue fell 41.9% to $2.67 billion.
"During the quarter, the industry faced another precipitous decline in activity, exceeding even the most pessimistic predictions, as E&P companies further cut spending in an effort to protect cash flows," said Martin Craighead, Baker Hughes' CEO, in a statement.
RELATED: DOJ Antitrust Suit Hands Halliburton, Baker Hughes Deal Grim Prognosis
Recommended Reading
E&P Highlights: March 4, 2024
2024-03-04 - Here’s a roundup of the latest E&P headlines, including a reserves update and new contract awards.
Valaris Updates Fleet Status
2024-02-19 - The backlog of these contracts and extensions is valued at $1.2 billion.
Despite GoM Struggles, 2024 is Still Ripe for Offshore Rigs
2024-01-07 - Though industry experts are predicting 2024 to be a slow year for rigs in the Gulf of Mexico, there is plenty of opportunity for contracts to be awarded in other markets.
Comstock Continues Wildcatting, Drops Two Legacy Haynesville Rigs
2024-02-15 - The operator is dropping two of five rigs in its legacy East Texas and northwestern Louisiana play and continuing two north of Houston.
E&P Highlights: March 15, 2024
2024-03-15 - Here’s a roundup of the latest E&P headlines, including a new discovery and offshore contract awards.