BHGE and NOV: Upstream Capex Impacted the Operating Margins

From 1Q17 to 1Q18, the companies in the Energy Select Sector SPDR ETF (XLE) increased the capex 8.1% in aggregate. XLE tracks an index of US energy companies in the S&P 500 Index. Baker Hughes, a GE Company (BHGE), accounts for 1.2% of XLE. In the past year, crude oil prices increased ~52%. Higher crude oil prices can lead to higher exploration and production activities for upstream producers, which could boost OFS (oilfield equipment and services) companies’ revenues and earnings in 2Q18. Baker Hughes’s EBITDA margin