General Electric (GE) may be aiming to add to its rapidly growing oil and gas business, this time with Dresser-Rand (DRC) or Dril-Quip (DRQ) in its sights, Bloomberg reported.
The diversified giant, which has expanded its oil and gas unit primarily via acquisitions, could spend part of its $19.3 billion cash stockpile to buy more companies as U.S. drilling takes off, according to Sanford C. Bernstein & Co.
Global Financial Private Capital sees Houston-based Dresser-Rand and Dril-Quip as attractive takeover candidates for GE.
Dresser-Rand is expected to grow sales by 51% in the next three years, Bloomberg says, and Dril-Quip by 63%. Dresser-Rand, which makes compressors, turbines and other oil and gas production gear, has a $4.7 billion market cap. Offshore drilling equipment maker Dril-Quip's market cap is $4.4 billion.
It's not the first time both companies have been seen as possible targets for GE or another big suitor. Analysts think a Dresser-Rand or Dril-Quip play by GE could attract antitrust regulators' attention.
GE completed its most recent acquisition, Lufkin Industries, in July. When that buyout was announced in April, Tesco (TESO) and Weatherford International's (WFT) were named as possible next targets. Other oil and gas buys included John Wood's well-support unit and Wellstream, both in 2011.
U.S. crude oil output has been growing at a record pace. The Energy Department said production in July increased to a 20-year high of 7.5 million barrels per day in July. The Energy Information Administration has said crude oil imports have been steadily declining since 2005, when U.S. oil production rose above 12 million BPD.
GE shares were trading marginally higher at 23.22 in afternoon trading on the stock market today. Dresser-Rand was up 0.8% to 61.61 and Dril-Quip 0.2% to 107.03.
The diversified giant, which has expanded its oil and gas unit primarily via acquisitions, could spend part of its $19.3 billion cash stockpile to buy more companies as U.S. drilling takes off, according to Sanford C. Bernstein & Co.
Global Financial Private Capital sees Houston-based Dresser-Rand and Dril-Quip as attractive takeover candidates for GE.
Dresser-Rand is expected to grow sales by 51% in the next three years, Bloomberg says, and Dril-Quip by 63%. Dresser-Rand, which makes compressors, turbines and other oil and gas production gear, has a $4.7 billion market cap. Offshore drilling equipment maker Dril-Quip's market cap is $4.4 billion.
It's not the first time both companies have been seen as possible targets for GE or another big suitor. Analysts think a Dresser-Rand or Dril-Quip play by GE could attract antitrust regulators' attention.
GE completed its most recent acquisition, Lufkin Industries, in July. When that buyout was announced in April, Tesco (TESO) and Weatherford International's (WFT) were named as possible next targets. Other oil and gas buys included John Wood's well-support unit and Wellstream, both in 2011.
U.S. crude oil output has been growing at a record pace. The Energy Department said production in July increased to a 20-year high of 7.5 million barrels per day in July. The Energy Information Administration has said crude oil imports have been steadily declining since 2005, when U.S. oil production rose above 12 million BPD.
GE shares were trading marginally higher at 23.22 in afternoon trading on the stock market today. Dresser-Rand was up 0.8% to 61.61 and Dril-Quip 0.2% to 107.03.
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