Activist Investor Calls on Baker Hughes to Spin Off Oilfield Services Unit

Activist investment firm Ananym Capital is urging Baker Hughes Company to spin off its oil‑field services and equipment business, arguing the move could unlock more than 50% upside for shareholders. At the 13D Monitor Active‑Passive Investment Summit, Ananym co‑founder Charlie Penner said the company’s current valuation — trading at about 9 × EBITDA — reflects a “sum‑of‑the‑parts” discount compared with the 13 × EBITDA target for 2026. Baker Hughes, formed in 2017 after merging with GE Oil & Gas, operates two main segments: an Industrial & Energy Technologies business focused on renewables, LNG and hydrogen infrastructure, and the legacy oil‑services unit. Penner noted that the oilfield services division has fundamentally different investor profiles and growth drivers than the technologies arm, and that separating the units would allow each to invest and operate more effectively. The activist group emphasised that the oil‑services arm, which has greater international exposure and a revenue base weighted toward existing production rather than new wells, could become a more dynamic standalone competitor. Meanwhile, Baker Hughes acknowledged the push, stating it values shareholder engagement and is currently conducting a “comprehensive evaluation” of capital allocation, business composition, cost structure and operations. Analysts at JPMorgan Chase & Co. praised Baker Hughes’ governance under CEO Lorenzo Simonelli and the management’s willingness to review strategy. But the core of Ananym’s argument remains: a spin‑off could bring clearer strategic focus, better alignment with investor categories, and a significantly higher valuation for both resulting entities. If Baker Hughes moves ahead, the shake‑up could reshape how investors view diversified energy plays. #activistinvesting #BakerHughes #spinoffstrategy #oilfieldservices #SlimScan #GrowthStocks #CANSLIM