Baker Hughes, Halliburton exploring merger

Two massive players in the Wyoming energy market are considering a merger as oil prices drop.

Halliburton Company and Baker Hughes Inc. are exploring a deal, though nothing concrete is on the table yet, according to Baker Hughes officials.

The company, beyond giving press and investors the indication that it is in talks, didn’t give much information on the potential transaction.

“These discussions may or may not lead to any transaction,” a company release stated. “Baker Hughes does not intend to comment further on market speculation or disclose any developments unless and until it otherwise deems further disclosure is appropriate or required.”

Baker Hughes has 61,000 employees worldwide, and is coming off a quarter with record revenue of $6.25 billion.

“We achieved these results despite several geopolitical events in the Eastern Hemisphere and a sharp reduction of activity in the Gulf of Mexico which caused margins to fall short of our expectations,” CEO Martin Craighead said in a recent statement. “Our outlook for the near-term remains positive based on increasingly favorable market conditions in our North American business and recent actions to increase profitability internationally.”

While statistics for Baker Hughes’ Wyoming presence weren’t immediately available, the company shows numerous rigs throughout the state, particularly in the northeast and southwest portions of the state.

Halliburton has stayed mum on the potential transaction, but the combination could face anti-trust concerns since Halliburton and Baker Hughes are the second- and third-largest providers of oilfield services in the world.

“The two gorillas in the room are getting together,” Bloomberg quoted Ed Hirs as saying. Hirs teaches energy economics at the University of Houston. “Halliburton and Baker Hughes would have been competing more strenuously to maintain market share in the downturn, but this will make that easier.”

Halliburton has more than 80,000 employees worldwide.

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