Back to top

Image: Shutterstock

Chevron (CVX) Signs a 20-Year Agreement With Baker Hughes

Read MoreHide Full Article

Chevron Corporation’s (CVX - Free Report) Australian unit and Baker Hughes (BKR - Free Report) have entered into a 20-year framework agreement. This strategic partnership marks a significant commitment to innovation and efficiency, aimed at unlocking new energy resources while minimizing environmental impact.

Let's delve deeper into the key aspects of this long-term partnership.

Details of the Agreement

The agreement focuses on the deployment of Baker Hughes' advanced Aptara Subsea production systems across Chevron Australia's future offshore projects. Aptara boasts a suite of innovative subsea equipment, including lightweight and compact subsea trees, wellheads and control systems, designed to optimize performance, reduce costs and enhance environmental sustainability.

Key Benefits

This partnership promises a multitude of benefits for both Chevron and Baker Hughes, as well as the broader energy sector.

Enhanced Efficiency and Cost Reduction: Aptara's innovative design minimizes project complexity and streamlines operations, leading to significant cost savings for Chevron.

Environmental Sustainability: The lightweight and compact nature of Aptara systems reduces the environmental footprint of offshore developments, contributing to Chevron's broader sustainability goals.

Technological Advancement: The agreement fosters collaboration and knowledge sharing between the two industry leaders, accelerating the development of even more advanced subsea technologies.

Local Economic Development: The agreement prioritizes the Australian industry’s participation, ensuring that local businesses and workforce benefit from the partnership.

Conclusion

The Chevron-Baker Hughes agreement marks a milestone in the evolution of offshore energy exploration. This long-term partnership paves the way for the development of sustainable, efficient and cost-effective solutions, ensuring access to vital natural gas resources for Australia and beyond.

As both companies leverage their combined expertise and technological prowess, this collaboration holds immense potential to shape the future of the energy landscape.

Zacks Rank and Key Picks

Currently, both CVX and BKR carry a Zacks Rank #3 (Hold).

Investors interested in the energy sector might look at some better-ranked stocks like The Williams Companies (WMB - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and Liberty Energy Inc. (LBRT - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Williams Companies is valued at $41.86 billion. The company currently pays a dividend of $1.79 per share, or 5.20%, on an annual basis.

WMB, the U.S.-based energy infrastructure company, operates through Transmission & Gulf of Mexico, Northeast G&P, West and Gas & NGL Marketing Services segments.

Liberty Energy is valued at $2.99 billion. LBRT currently pays a dividend of 28 cents per share, or 1.58%, on an annual basis.

LBRT is a leading provider of hydraulic fracturing and other auxiliary services to the North American onshore exploration and production companies.

Published in