Oil rigs down six as crude prices resume fall

The gap between the per-share value of Halliburton’s offer and the share price of Baker Hughes’ stock swelled to 22 percent this week, Bloomberg reported, heaping fresh doubt that the deal will come together. The 52-week low of the share price is $44.11.

Baker Hughes Incorporated (NYSE:BHI) Chairman and Chief Executive Officer Martin S. Craighead announced today that the Baker Hughes Board of Directors announced the regular quarterly cash dividend of $0.17 per share of common stock payable December 24, 2015 to holders of record on December 3, 2015. The stock witnessed a net inflow of $8.18 million at the end of the block trade.

Among the analysts, the highest EPS was $0.34 and the lowest was $-0.07. Oppenheimer reaffirmed a “hold” rating on shares of Baker Hughes in a report on Wednesday, July 22nd.

Baker Hughes Incorporated (NYSE:BHI) dropped by -5.33 or -2.9 points during the last session to $51.56 per share. Jefferies Group analyst B. Handler now anticipates that the firm will earn $0.05 per share for the quarter, down from their prior forecast of $0.09.

The most recent peak-to-trough rig count decline is more pronounced than the previous three (see chart), according to Oklahoma-based Seventy Seven Energy, a provider of drilling, pressure-pumping and oilfield rental tools. The firm’s revenue was down 39.4% compared to the same quarter past year.

In its most recent quarter Baker Hughes Incorporated had actual sales of $ 3786M.

Shares of Halliburton Company closed yesterday at $38.41. The company has a 50 day moving average of $53.85 and a 200 day moving average of $58.98.

United States of America oil services company Halliburton said it was offering five tranches of senior notes, using the proceeds to help finance the acquisition of Baker Hughes.

Baker Hughes Incorporated is engaged in the oilfield services industry. It also provides industrial and other products and services to the downstream refining, and the process and pipeline industries. The Company conducts its operations through subsidiaries, affiliates, ventures and alliances. The Company operates in five segments: North America, Latin America, Europe/Africa/Russia Caspian, Middle East/Asia Pacific and Industrial Services.

The long wait to get the deal done with Halliburton may be starting to grind on a few, but the merger agreement does allow the two companies to extend the deal into 2016.

A few analysts have started to question whether Halliburton can complete the acquisition as the company continues to work with domestic and global regulators to gain approval for the merger.