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Leucipa Rollout Strengthens Baker Hughes' Digital Energy Footprint

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Key Takeaways

  • EXE signs a multi-year deal with BKR to deploy Leucipa across wells in Marcellus, Utica, and Haynesville.
  • BKR will deliver AI-powered Leucipa as a SaaS platform on AWS using real-time data and machine learning.
  • BKR deployment targets higher production efficiency, reduced manual overheads, and smarter field decisions.

Baker Hughes Company (BKR - Free Report) , a leading energy equipment and service provider, has won a multi-year award from North America’s top natural gas producer, Expand Energy Corporation (EXE - Free Report) . To optimize field operations, Baker Hughes will implement its Leucipa automated production technology for Expand Energy, covering thousands of wells in the Marcellus, Utica and Haynesville shales in the multi-year agreement. Improved production efficiency driven by BKR should support higher cash flows for EXE.

Notably, this implementation further strengthens Baker Hughes’ position in digital energy solutions, along with its other proven technologies. It also enhances customers’ operating capabilities, reinforcing its business stability and attractiveness to investors.

AI-powered Leucipa uses real-time data analytics, machine learning, and digital workflows to improve production efficiency while reducing manual overheads, and support smarter decision-making in oil and gas field operations. BKR will deploy Leucipa as Software as a Service (SaaS) platform on AWS, ensuring EXE scalability, security, and straightforward system integration for EXE.

EXE plans to test “Lucy” — an AI-powered production assistant designed to interpret real-time data and streamline field decision-making through a conversational user interface.

Furthermore, collaboration with BKR streamlines EXE's upstream workflows through modern digital technology, thereby lifting EXE’s operational efficiency. BKR and EXE carry a Zacks Rank #3 (Hold) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BKR and other oil and gas equipment and service players’ businesses are highly dependent on capital spending by upstream energy companies, which is driven by oil price volatility. Two other players in the oil and gas equipment and service Industry are Cactus, Inc. (WHD - Free Report) and Halliburton Company (HAL - Free Report) . With West Texas Intermediate crude oil prices trailing just below $65 per barrel, though up from $57.95 a month ago (according to oilprice.com), the business environment for oil and gas exploration firms is easing out, positively impacting the business models of Cactus and Halliburton. HAL currently carries a Zacks Rank #3, whereas WHD has a Zacks Rank #4 (Sell).

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