8 Most Profitable Natural Gas Stocks To Invest In

4. Baker Hughes Company (NASDAQ:BKR)

Number of Hedge Fund Investors: 45

5-Year Net Income CAGR: 60.40%

TTM Net Income: $2.24 Billion

Baker Hughes Company (NASDAQ:BKR) is a leading provider of technologies and services to the energy and industrial sector. The company operates through two primary segments: Oilfield Services & Equipment (OFSE) and Industrial & Energy Technology (IET). The IET segment is particularly focused on gas technology and offers a wide range of equipment and solutions including flow control systems, and turnkey solutions for mechanical drive, compression, and power-generation applications.

Baker Hughes Company (NASDAQ:BKR) is focusing on growth and margin improvement by leveraging its robust portfolio of natural gas, LNG, and gas infrastructure. The company is committed to expanding its installed base of gas technology equipment, driven by a combination of new projects, infrastructure developments, and offshore and onshore production. Additionally, Baker Hughes Company (NASDAQ:BKR) is investing in advanced service solutions, including digital capabilities and upgrades to enhance its services. These upgrades are focused on improving efficiency, reliability, and emissions, which in return are expected to drive additional revenue and margin expansion.

Baker Hughes Company (NASDAQ:BKR) is also focusing on enhancing its aftermarket service offerings as the company’s Gas Technology Services (GTS) segment is expected to benefit from the recurring revenue stream generated by installed units, which can generate 1x to 2x the revenue over the life of the equipment compared to the original sale. This recurring revenue is characterized by higher margins and long-term contractual agreements, which provide stable and predictable revenue.