How GE is boosting its oil and gas portfolio

GE's acquisition of a Lufkin significantly boosts GE’s oil and gas portfolio, which was worth $15.2 billion of its total $147 billion in revenues for 2012, Alic writes. Over the past three years, GE’s oil and gas segment has realized annual growth of 16 percent due to an ambitious acquisition drive. 

|
Paul Sakuma/AP/File
The General Electric (GE) logo is shown on a microwave oven at Best Buy in Mountain View, Calif. GE announced last week that it would acquire Lufkin, whose primary business is providing artificial lift technology used in almost all oil wells worldwide.

General Electric (NYSE: GE) has announced plans to expand its oil and gas business by acquiring Lufkin Industries (LUFK) in a $3.3 billion deal that boost its market share for oil and gas equipment and strengthen its turbo-machinery supply chain.

GE announced last week that it would acquire Lufkin, whose primary business is providing artificial lift technology used in almost all oil wells worldwide, and whose secondary business is industrial gears and bearings used in energy applications.

The acquisition significantly boosts GE’s oil and gas portfolio, which was worth $15.2 billion of its total $147 billion in revenues for 2012. Over the past three years, GE’s oil and gas segment has realized annual growth of 16% due to an ambitious acquisition drive.  (Related article: GE to Buy Oil Pump Makers Lufkin for $2.98 Billion)

For Lufkin, we’re looking at $1.3 billion in revenues last year, up 37% from the previous year. The $3.3 billion acquisition price tag on Lufkin represents about 13 times its 2013 estimated earnings before interest, taxes, depreciation and amortization, according to Forbes

It will be pointed out that the purchase price for Lufkin represents only 1.25% of GE’s market cap, and therefore isn’t likely to have a huge impact on GE’s earnings overall. But we’re concerned here more with GE’s ongoing and longer-term strategy, which demonstrates a voracious appetite for oil and gas equipment diversity and a solid path towards increased market share.

Original source: http://oilprice.com/Energy/Energy-General/Lufkin-Acquisition-Boosts-GEs-Oil-Gas-Market-Share.html

You've read  of  free articles. Subscribe to continue.
Real news can be honest, hopeful, credible, constructive.
What is the Monitor difference? Tackling the tough headlines – with humanity. Listening to sources – with respect. Seeing the story that others are missing by reporting what so often gets overlooked: the values that connect us. That’s Monitor reporting – news that changes how you see the world.

Dear Reader,

About a year ago, I happened upon this statement about the Monitor in the Harvard Business Review – under the charming heading of “do things that don’t interest you”:

“Many things that end up” being meaningful, writes social scientist Joseph Grenny, “have come from conference workshops, articles, or online videos that began as a chore and ended with an insight. My work in Kenya, for example, was heavily influenced by a Christian Science Monitor article I had forced myself to read 10 years earlier. Sometimes, we call things ‘boring’ simply because they lie outside the box we are currently in.”

If you were to come up with a punchline to a joke about the Monitor, that would probably be it. We’re seen as being global, fair, insightful, and perhaps a bit too earnest. We’re the bran muffin of journalism.

But you know what? We change lives. And I’m going to argue that we change lives precisely because we force open that too-small box that most human beings think they live in.

The Monitor is a peculiar little publication that’s hard for the world to figure out. We’re run by a church, but we’re not only for church members and we’re not about converting people. We’re known as being fair even as the world becomes as polarized as at any time since the newspaper’s founding in 1908.

We have a mission beyond circulation, we want to bridge divides. We’re about kicking down the door of thought everywhere and saying, “You are bigger and more capable than you realize. And we can prove it.”

If you’re looking for bran muffin journalism, you can subscribe to the Monitor for $15. You’ll get the Monitor Weekly magazine, the Monitor Daily email, and unlimited access to CSMonitor.com.

QR Code to How GE is boosting its oil and gas portfolio
Read this article in
https://www.csmonitor.com/Environment/Energy-Voices/2013/0417/How-GE-is-boosting-its-oil-and-gas-portfolio
QR Code to Subscription page
Start your subscription today
https://www.csmonitor.com/subscribe