Baker Hughes, a GE company BHGE recently received a contract from Cheniere Energy, Inc. LNG to provide turbomachinery equipment for the latter’s Corpus Christi LNG facility expansion. Notably, last month Cheniere announced its intention of moving forward with its South Texas gas terminal’s expansion plans.
Baker Hughes has been awarded the contract through Cheniere’s Engineering, Procurement and Construction (EPC) partner for the project, Bechtel Oil, Gas & Chemicals, Inc. The final investment decision from Cheniere for the expansion project is the first in the United States since 2015.
The project includes an addition of a third liquefied natural gas processing train to its existing facility. Baker Hughes will provide six gas turbines and several compressors for the third train. The products and services that the company will provide are similar to what it had supplied for the first two trains at Corpus Christi, which are expected to come online in 2019.
Following the completion of the three trains, the facility will have a total production capacity of around 13.5 metric tons per annum of liquefied natural gas.
For the expansion project, the field service provider is planning to combine its engineering, manufacturing and project management from its offices in Evendale, OH; Houston, TX and Florence, Italy.
Houston, TX-based Baker Hughes has lost 40.2% in the past year compared with 6.5% fall of its industry.
Zacks Rank and Stocks to Consider
Baker Hughes currently carries a Zacks Rank #3 (Hold). Investors interested in the Energy sector can opt for some better-ranked stocks like Delek US Holdings, Inc. DK and HollyFrontier Corporation HFC, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Brentwood, TN-based Delek is an energy company. The company’s top line for 2018 is anticipated to improve 39.2% year over year, while its bottom line is expected to increase 248.4%.
Dallas, TX-based HollyFrontier is an independent refining company. For 2018, its bottom line is likely to be up 148.7%. In the last four reported quarters, the company delivered an average positive earnings surprise of 41.3%.
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Delek US Holdings, Inc. (DK): Free Stock Analysis Report
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Cheniere Energy, Inc. (LNG): Free Stock Analysis Report
Baker Hughes Incorporated (BHGE): Free Stock Analysis Report
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