Oilfield services provider Baker Hughes Co. posted its second quarterly loss for the year on July 22 and warned it was preparing for longer volatility after a slump in oil prices crushed demand for its services.
Net loss attributable to the company widened to $201 million, or 31 cents per class A share, in the second quarter ended June 30, from $9 million, or 2 cents per share, a year earlier.
Excluding charges, Baker Hughes lost 5 cents per share.
Although Pickering Energy Partners’ Dan Pickering believes the industry is in for a couple of tough years ahead, he also believes the survivors are due for a bounty: Assets will be available for prices not seen in 30 years.
Despite the loss, Pioneer Natural Resources generated $165 million of free cash flow for the quarter, which President and CEO Scott D. Sheffield attributed to significant cost reductions and operational efficiency improvements.
Continental Resources, which shut 70% of its oil output when prices and fuel demand collapsed, said U.S. production growth will stay moderate unless oil reaches $50-$60/bbl.