Baker Hughes Shares Surge 2.7% on Landmark Saudi Deal Despite 278th-Ranked $440M Trading Volume

Market Snapshot

Baker Hughes (BKR) closed on October 28, 2025, with a 2.70% increase in share price, reflecting strong investor sentiment. The stock saw a trading volume of $440 million, ranking 278th in market activity for the day. While the volume was below the company’s historical average, the upward price movement suggests renewed interest in the stock, potentially linked to the announcement of a major contract. The trading data underscores the stock’s responsiveness to strategic business developments, particularly in the energy services sector.

Strategic Expansion in Saudi Arabia

Baker Hughes announced a landmark multi-year agreement with Saudi Aramco to expand its underbalanced coiled tubing drilling (UBCTD) operations across the Kingdom’s natural gas fields. The contract, booked in Q3 2025, will see the company increase its active UBCTD fleet from four to ten units beginning in 2026. This expansion, spanning both greenfield and re-entry drilling projects, is designed to accelerate Aramco’s access to gas reserves while enhancing production efficiency. The agreement builds on a 19-year partnership between the two entities, positioning Baker Hughes as a critical player in Saudi Arabia’s energy transition goals.

Central to the deal is the integration of Baker Hughes’ advanced technologies, including the CoilTrak™ bottomhole assembly (BHA) system and GaffneyCline™ energy advisory services. These tools enable precise navigation of complex reservoir conditions during horizontal drilling and re-entry operations, reducing formation damage and improving operational safety. By combining real-time data analytics with cutting-edge hardware, the company aims to streamline project timelines and costs compared to traditional drilling methods. This technological edge not only strengthens Baker Hughes’ competitive positioning but also aligns with global trends toward digitization and automation in oil and gas production.

The agreement underscores Saudi Arabia’s strategic focus on gas as a cornerstone of its domestic energy supply and industrial growth. With natural gas projected to play a pivotal role in decarbonizing energy systems, the expanded UBCTD operations will help Aramco optimize reservoir recovery and unlock bypassed hydrocarbons. For Baker Hughes, the contract reinforces its long-term presence in the Middle East, where it has maintained operational excellence in UBCTD since 2008. The company’s emphasis on health, safety, and environmental (HSE) standards further aligns with Saudi Arabia’s broader sustainability objectives, enhancing the project’s appeal to stakeholders.

Looking ahead, the expansion sets the stage for broader innovation in UBCTD, a method with potential to redefine global drilling practices. By scaling its fleet and refining its integrated solutions, Baker Hughes aims to establish a new benchmark for efficiency and safety in the sector. The project also highlights the company’s ability to secure large-scale contracts in high-growth markets, a critical factor for its future revenue streams. As operations under the new agreement commence in 2026, the success of this initiative could serve as a catalyst for further partnerships and technological advancements, solidifying Baker Hughes’ role as a leader in next-generation energy solutions.

The news follows another recent contract win for Baker Hughes, this time in Louisiana, where it will supply equipment for a $4 billion ammonia production facility. While this project is distinct from the Aramco agreement, it illustrates the company’s diversified approach to energy infrastructure and its capacity to deliver end-to-end solutions across multiple markets. Together, these developments reinforce Baker Hughes’ strategic pivot toward gas technologies and long-term energy transition projects, offering investors a glimpse into its evolving business model.