In the third area, in order to cope with the sharp decline rates that are the norm for unconventional shale wells, the company has developed a successfully tested a FleX pump series. The electric submersible pump can operate at low flow rates, down to 50 barrels per day. The pump has been field-tested in the Eagle Ford, the Bakken, and the Permian and Central basins.
In those key U.S. plays, it has demonstrated production increases of up to 35%. On those bases, it appears likely to expand Baker Hughes Incorporated (NYSE:BHI)’ electrical submersible pump market by more than $1 billion.
But that’s not all. Baker last year became the first company to introduce hydraulic fracturing pumps capable of operating on diesel and natural gas. Since that time, as has Schlumberger Limited. (NYSE:SLB), it’s progressed to the development of bi-fuel powered fracking pumps.
Given Baker Hughes Incorporated (NYSE:BHI)’ less than scintillating earnings report, I’d hardly recommend proverbially backing up the truck to acquire the company’s shares. Nevertheless, I wouldn’t argue with the notion that we’re dealing with a stronger company than its June 2013 performance would indicate. On that basis, I’d keep close tabs on its Western Hemisphere improvements and its new additions to the all-important technology arena.
The article Things Are Better at Baker Hughes Than You Might Think originally appeared on Fool.com.
Fool contributor David Smith has no position in any stocks mentioned. The Motley Fool recommends Chevron and Halliburton.
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