Baker Hughes vs Targa Resources
This page compares Baker Hughes Company and Targa Resources Corp to examine business models, financial performance, and market context in a neutral, accessible way. It outlines how each company operates within its sector and the factors shaping their strategies. Educational content, not financial advice.
This page compares Baker Hughes Company and Targa Resources Corp to examine business models, financial performance, and market context in a neutral, accessible way. It outlines how each company operat...
Why It's Moving
BKR jumps as Baker Hughes inks major Alaska LNG equipment and investment deals, signaling bigger LNG backlog and transition-tech momentum.
- Strategic Alaska LNG agreement — Baker Hughes will supply main refrigerant compressors and power‑generation equipment for the Alaska LNG terminal and North Slope gas treatment plant and committed a strategic investment in the project, boosting its LNG equipment pipeline and potential long‑term service revenue.
- Backlog and revenue visibility implication — Large, multi‑year LNG equipment contracts typically bring upfront engineering and manufacturing revenue plus follow‑on service and spare‑parts sales, increasing near‑term revenue visibility and recurring aftermarket cash flows for an equipment‑heavy provider like Baker Hughes.
- Transition‑tech signal for investors — Management framed the deal as supporting lower‑carbon LNG exports, reinforcing Baker Hughes’s positioning in both traditional oilfield services and energy‑transition technologies (compression, power generation, and emissions‑reducing solutions), which can help diversify growth drivers beyond cyclical upstream spending.
Targa Resources Bolsters Delaware Basin Dominance with $1.25B Stakeholder Midstream Acquisition
- Acquisition includes 460 miles of gathering pipe and 180 MMcf/d processing capacity at 60% utilization, offering leverage for rising production from key operators like Burk Royalty and Hilcorp.
- Brings ~15 Mb/d NGL output plus sour gas treating and carbon-capture assets eligible for 45Q tax credits, enhancing Targa's ability to fill its Speedway system and tap export demand.
- Priced at ~6x 2026 unlevered FCF, the deal creates optionality for non-core asset sales while integrating seamlessly with Targa's existing Permian systems.
BKR jumps as Baker Hughes inks major Alaska LNG equipment and investment deals, signaling bigger LNG backlog and transition-tech momentum.
- Strategic Alaska LNG agreement — Baker Hughes will supply main refrigerant compressors and power‑generation equipment for the Alaska LNG terminal and North Slope gas treatment plant and committed a strategic investment in the project, boosting its LNG equipment pipeline and potential long‑term service revenue.
- Backlog and revenue visibility implication — Large, multi‑year LNG equipment contracts typically bring upfront engineering and manufacturing revenue plus follow‑on service and spare‑parts sales, increasing near‑term revenue visibility and recurring aftermarket cash flows for an equipment‑heavy provider like Baker Hughes.
- Transition‑tech signal for investors — Management framed the deal as supporting lower‑carbon LNG exports, reinforcing Baker Hughes’s positioning in both traditional oilfield services and energy‑transition technologies (compression, power generation, and emissions‑reducing solutions), which can help diversify growth drivers beyond cyclical upstream spending.
Targa Resources Bolsters Delaware Basin Dominance with $1.25B Stakeholder Midstream Acquisition
- Acquisition includes 460 miles of gathering pipe and 180 MMcf/d processing capacity at 60% utilization, offering leverage for rising production from key operators like Burk Royalty and Hilcorp.
- Brings ~15 Mb/d NGL output plus sour gas treating and carbon-capture assets eligible for 45Q tax credits, enhancing Targa's ability to fill its Speedway system and tap export demand.
- Priced at ~6x 2026 unlevered FCF, the deal creates optionality for non-core asset sales while integrating seamlessly with Targa's existing Permian systems.
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Explore BasketPowering Production: The Oil Services Surge
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Explore BasketWhich Baskets Do They Appear In?
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As Nigeria pivots to leverage its vast natural gas reserves for economic growth, this resource is becoming central to its energy transition strategy. This basket offers potential exposure to globally-listed energy companies, infrastructure providers, and technology firms participating in this development.
Published: September 24, 2025
Explore BasketBrazil's Offshore Oil Renaissance
BP's massive oil discovery in Brazil's Santos Basin has renewed excitement in the region's energy potential. This theme focuses on companies, including competitor Equinor, that are positioned to benefit from the increased investment and upcoming auctions in one of the world's most promising offshore oil frontiers.
Published: August 6, 2025
Explore BasketPowering Production: The Oil Services Surge
Exxon Mobil's recent earnings beat, driven by higher production volumes in a low-price environment, highlights a key industry strategy. This creates an investment opportunity in companies that provide essential equipment and services for oil and gas exploration and production.
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Explore BasketInvestment Analysis
Baker Hughes
BKR
Pros
- Baker Hughes has secured significant subsea contract wins, particularly in deepwater regions, supporting international revenue stability.
- The company maintains a strong return on equity and invested capital, outperforming many peers in the energy equipment sector.
- Strategic portfolio moves, including acquisitions and divestitures, are helping Baker Hughes focus on higher-margin gas and digital technologies.
Considerations
- Baker Hughes remains highly exposed to oil price volatility, with any sustained drop likely to reduce demand for its oilfield services.
- Rising material costs, especially from tariffs on steel and aluminum, are pressuring margins in both equipment and services segments.
- Long-cycle LNG projects carry risks of delays and cost overruns, which could impact the timing and profitability of major contracts.
Targa Resources
TRGP
Pros
- Targa Resources benefits from a diversified portfolio of midstream assets, providing stable cash flows from gathering, processing, and logistics.
- The company has secured long-term contracts with major producers, supporting predictable revenue and high utilisation rates.
- Targa Resources maintains a strong balance sheet with manageable leverage and solid interest coverage ratios.
Considerations
- Targa Resources is exposed to commodity price swings, which can affect producer activity and volumes flowing through its infrastructure.
- Regulatory scrutiny and environmental risks in the midstream sector could increase compliance costs and delay expansion projects.
- The company faces competition from other midstream operators, which may pressure fee structures and limit pricing power.
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