Baker Hughes Company (BKR - Free Report) recently agreed to power its Texas facilities from renewable sources. Through a 10-year power purchase agreement with the French private power company EDF Energy, Baker Hughes will receive electricity from wind and solar firms for its 170 facilities in the state.
Per the deal, the oilfield service provider will receive renewable power from the White Mesa Wind Farm of Apex Clean Energy, located near Ozona, a West Texas town. A solar farm of 7X Energy will also supply electricity to the facilities. This deal is expected to cheer investors, who are pushing energy companies to comply with the Paris Agreement.
The deal is expected to reduce Baker Hughes’ emissions by 1.2 million metric tons of CO2 equivalent through the next 10 years. This is as significant as 27,000 cars disappearing from roads. The latest move is estimated to reduce the company’s global carbon emission by 12%. Notably, this is not the first step by the firm toward achieving a greener future, as is evident from its 24 facilities in the United Kingdom that are already using wind power since 2014.
The move marks the company’s efforts to reach the net-zero emissions landmark. Notably, last January, it had set a target to reduce CO2 equivalent emissions by 50% by 2030 from 2012 levels. Moreover, Baker Hughes plans to reach net-zero CO2 emissions by 2050. Markedly, the company is committed to help upstream energy clients reduce emissions via providing advanced technologies and low-carbon energy solutions that incorporate decreasing venting, flaring and fugitive emissions.
Houston, TX-based Baker Hughes has gained 3% in the past year, underperforming the 12.1% rally of the industry it belongs to.
Zacks Rank and Stocks to Consider
Currently, Baker Hughes carries a Zacks Rank #5 (Strong Sell). Some better-ranked stocks in the energy sector include Antero Midstream Corporation (AM - Free Report) , Phillips 66 (PSX - Free Report) and Enbridge Inc. (ENB - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Antero Midstream’s bottom line for the current quarter is expected to skyrocket 130% year over year.
Phillips 66’s 2019 earnings per share have witnessed nine upward estimate revisions and no downward movement in the past 60 days.
Enbridge’s 2019 earnings per share have witnessed two upward estimate revisions and no downward movement in the past 60 days.
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