According to Baker Hughes’ latest weekly report, U.S. energy firms added seven oil and gas rigs in the period ending January 24, reversing a three-week decline. The total active rig count now stands at 772, comprising 654 oil rigs and 118 natural gas rigs. The incremental additions were driven by firms in the Permian Basin and Eagle Ford, where higher completion activity and favorable service costs have encouraged operators to bring idle assets back online. This modest uptick signals growing confidence among exploration and production companies as they position for potential spring turnaround programs and continuing strong domestic demand for hydrocarbons.

Baker Hughes is set to report fourth-quarter results on February 2, with analysts forecasting revenue near $6.8 billion and adjusted EBITDA around $1.2 billion. The company’s recently completed acquisition of a precision measurement services business for $1.7 billion is expected to contribute approximately $100 million of incremental revenue in the quarter and bolster its services segment margins by 50 basis points. However, weaker international oil prices and cost inflation in materials and labor could pressure overall margins by 100 to 150 basis points year-over-year. Management commentary will be closely watched for guidance on capital expenditure plans—currently projected at $1.1 to $1.3 billion for 2024—and any revisions to full-year free cash flow targets, which are modeled at roughly $2.2 billion.