Strategic Expansion: Baker Hughes Secures Major LNG Contract and Nears Chart Industries Acquisition

Baker Hughes a GE is advancing on two significant strategic fronts, combining a substantial new liquefied natural gas (LNG) equipment order with the impending closure of a major acquisition. These concurrent developments are currently shaping the company's market valuation and long-term direction.

Shares of Baker Hughes were recently trading at $45.19. The consensus price target among analysts stands at $53.53, implying a potential upside of approximately 17.5%. The company's forward price-to-earnings (P/E) ratio is approximately 16.61, with a current P/E of around 15.71.

A Key Milestone in U.S. LNG

The company has received a Full Notice to Proceed (FNTP) from Technip Energies for the Commonwealth LNG project. This contract involves supplying the primary liquefaction technology for the facility located in Cameron, Louisiana. Baker Hughes will provide six mixed-refrigerant turbo-compressor trains, powered by LM9000 gas turbines boasting an efficiency rate exceeding 44%. This core equipment is designed for an export capacity of 9.5 million tonnes per annum (MTPA). The comprehensive scope of supply includes hardware, commissioning services, spare parts, and string testing. Project developer Caturus authorized the full order release on December 22.

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The Chart Industries Acquisition: Scale and Synergy

In a parallel move, Baker Hughes is nearing the completion of its acquisition of Chart Industries, a transaction valued at an enterprise value of roughly $13.6 billion, or $210 per share. The deal is expected to close in the spring of 2026. Company management has projected annual synergies of about $325 million from the integration. Notably, investment firm Athos Capital Ltd. recently established an $11.6 million position in Chart Industries.

The acquisition's impact on the balance sheet is a focal point for investors. Upon deal closure, Baker Hughes's net debt is anticipated to rise to approximately $15.8 billion. The company has outlined a plan to reduce this leverage within 24 months following the transaction's completion. A strong order backlog in its Industrial & Energy Technology segment, valued at around $31.3 billion, provides near-term revenue visibility and financial stability. Chart Industries itself brings expected revenues of about $4.29 billion (TTM).

Performance Benchmarks and Forward Look

In the short term, the timely delivery and commissioning of the equipment for the Commonwealth LNG project will serve as a critical performance indicator. Looking further ahead to the second half of 2026, the market will closely monitor the finalization of the Chart Industries acquisition. The realization of the targeted $325 million in synergies and the execution of the stated 24-month debt reduction plan will be key metrics for evaluating the success of this strategic expansion.