Please ensure Javascript is enabled for purposes of website accessibility

Will GE Eventually Become an Energy Company?

By Taylor Muckerman and Joel South - Apr 10, 2013 at 8:37AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The energy segment of General Electric's business has been the fastest-growing segment since 2009. What is the latest initiative to roll out?

Early Monday morning, General Electric (GE 2.27%) announced that it would be acquiring Lufkin Industries (NASDAQ: LUFK) for around $3.3 billion. This acquisition continues the trend that we have seen start with GE in 2007; since that time, it has spent $11 billion to purchase companies in the energy space.

Nothing artificial about what Lufkin brings to GE
What GE is getting with Lufkin Industries is a company that is heavily involved in artificial lift. This service has proven vital to the oil and natural gas industry due to its ability to increase well efficiency once pressure inside the well has dropped. Estimates are that 95% of wells worldwide utilize some form of artificial lift, so this segment could provide a nice boost to GE's business as global drilling continues to pick up.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

General Electric Company Stock Quote
General Electric Company
$78.76 (2.27%) $1.75
Baker Hughes Incorporated Stock Quote
Baker Hughes Incorporated

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/29/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.