Core Insights - Baker Hughes Company (BKR) has secured a multi-year contract with Exxon Mobil Corporation (XOM) to provide specialty chemicals and related services for offshore developments in Guyana's Stabroek Block, specifically for the Uaru and Whiptail projects [1][2] Group 1: Contract Details - Under the contract, BKR will supply all necessary chemicals for the Errea Wittu and Jaguar floating production storage and offloading (FPSO) vessels, which are set to commence production in 2026 and 2027 respectively [2] - The Uaru and Whiptail projects are ExxonMobil Guyana's fifth and sixth developments in the Stabroek Block, with a combined capacity of 500,000 barrels per day, contributing to an expected overall production of approximately 1.3 million barrels per day for Guyana [3] Group 2: Strategic Positioning - BKR has an established presence in Guyana, having previously supplied turbomachinery and production chemicals for ExxonMobil's FPSO fleet, which strengthens its role as a key service provider in ExxonMobil's operations [4] - The contract reinforces BKR's strategic position in the offshore energy sector and indicates continued growth opportunities in Guyana, recognized as one of the world's fastest-emerging oil frontiers [6] Group 3: Industry Context - The Errea Wittu FPSO is being developed by Offshore Frontier Solutions, a joint venture between MODEC and Toyo Engineering Corporation, while SBM Offshore is overseeing the Jaguar FPSO's construction and installation, highlighting the importance of FPSO technology in deepwater oil production [5]

Financial Performance - In 2024, the company generated revenues of $27.8 billion, a 9% increase from $25.5 billion in 2023, primarily driven by a $2.1 billion increase in IET revenue[200]. - Operating income rose to $3.1 billion in 2024, up $0.8 billion or 33% from $2.3 billion in 2023, due to higher volume and cost optimization efforts[200][226]. - Revenues for the year ended December 31, 2024, were $27,829 million, with net income of $2,645 million[284]. - The Oilfield Services & Equipment (OFSE) segment revenue increased by $268 million, or 2%, to $15,628 million in 2024, driven by Subsea & Surface Pressure Systems (SSPS) growth[232]. - The Industrial & Energy Technology (IET) segment revenue increased by $2,055 million, or 20%, to $12,201 million in 2024, primarily due to growth in Gas Technology Equipment[235]. Shareholder Returns - The company returned a total of $1.3 billion to shareholders in 2024 through dividends and share repurchases, with a quarterly dividend increase to $0.21 per share[202]. - Dividends paid to Class A stockholders increased to $836 million in 2024 from $786 million in 2023[269]. - The company repurchased 15.2 million shares of Class A common stock for $484 million in 2024, compared to 16.3 million shares for $538 million in 2023[270]. Orders and Backlog - Total orders decreased to $28.24 billion in 2024 from $30.52 billion in 2023, with a notable decline in Oilfield Services & Equipment orders[222]. - The remaining performance obligations (RPO) totaled $33.1 billion as of December 31, 2024, with $30.1 billion attributed to IET[223]. Cash Flow and Capital Expenditures - Operating cash flows for 2024 were $3,332 million, an increase of 8.8% from $3,062 million in 2023 and a significant increase from $1,888 million in 2022[258]. - Cash flows used in investing activities were $1,016 million in 2024, compared to $817 million in 2023 and $1,564 million in 2022[263]. - Capital expenditures for 2024 amounted to $1,278 million, up from $1,224 million in 2023 and $989 million in 2022[264]. Debt and Liquidity - The company maintained cash and cash equivalents of $3.4 billion as of December 31, 2024, up from $2.6 billion in 2023[250]. - The company has a $3 billion committed unsecured revolving credit facility maturing in November 2028, with no borrowings under the agreement as of December 31, 2024[252]. - The company repaid long-term debt of $143 million in 2024, following a repayment of $651 million in 2023[269]. - The company’s long-term debt as of December 31, 2024, totaled $5.706 billion, with a weighted average interest rate of 4.18%[309]. Tax and Impairment - In 2024, the company recorded income taxes of $257 million, a decrease from $685 million in 2023, primarily due to a $664 million reversal of a valuation allowance[229]. - The effective tax rate is influenced by the repatriation of foreign earnings, with $455 million of gross unrecognized tax benefits reported as of December 31, 2024[299]. - The company performs annual impairment tests of goodwill, with significant estimates and assumptions involved in determining fair value[293]. Market Conditions and Outlook - The global LNG project pipeline remains strong, supporting the shift towards natural gas and LNG development[199]. - The average Brent oil price in 2024 was $80.52 per barrel, while WTI oil prices averaged $76.63 per barrel, reflecting a decrease from previous years[211]. - The company expects a muted outlook for global upstream spending in 2025 due to oil price volatility and a well-supplied oil market[198]. Segment Performance - The OFSE segment operating income rose to $1,988 million in 2024, up from $1,746 million in 2023, reflecting higher prices and cost-out initiatives[233]. - The IET segment operating income improved to $1,830 million in 2024, compared to $1,310 million in 2023, driven by higher volume and cost-out initiatives[236]. - The OFSE segment's operating margin improved to 12.7% in 2024, up from 11.4% in 2023, indicating enhanced operational efficiency[231]. - The IET segment's operating margin increased to 15.0% in 2024, compared to 12.9% in 2023, reflecting better cost management[235]. Risk Management - The company is subject to interest rate risk on its debt and investment portfolio, with interest rate swaps converting $500 million of fixed-rate debt into floating rate instruments[307]. - As of December 31, 2024, a 1% appreciation or depreciation in the U.S. dollar would impact pre-tax earnings by less than $15 million[313]. - The company had outstanding foreign currency forward contracts with notional amounts of $3.0 billion and $3.6 billion to hedge exposure to currency fluctuations at December 31, 2024 and 2023, respectively[312].

Core Insights - Argent LNG has selected Baker Hughes as the liquefaction solution provider for its LNG export facility in Port Fourchon, Louisiana, targeting a production capacity of approximately 24 million tonnes per annum (MTPA) [1][9] - The project will utilize Baker Hughes' advanced technologies, including the NMBL™ modularized LNG solution and LM9000 gas turbine, to ensure scalable and reliable LNG production [2][9] - Phase 1 construction is expected to begin in 2026, with commercial operations anticipated by 2030, while Phase 2 aims to expand capacity and is progressing through critical milestones [4] Company Overview - Baker Hughes is an energy technology company with over a century of experience, providing innovative solutions to energy and industrial customers globally [6] - Argent LNG is a privately held energy company focused on developing LNG export solutions to meet the rising global demand for clean energy, emphasizing cost-effective and sustainable energy solutions [7] Strategic Collaboration - The collaboration between Argent LNG and Baker Hughes highlights a commitment to technical excellence, cost-effective execution, and energy security, enhancing the project's bankability [4] - Baker Hughes expects to receive orders related to this agreement as the Argent LNG project progresses towards its Final Investment Decision [5]

Core Insights - Baker Hughes, Hanwha Power Systems, and Hanwha Ocean have signed a Joint Development and Collaboration Agreement (JDCA) to develop a new small-size turbine for ammonia applications, which will utilize Baker Hughes' gas turbine technology and Hanwha's ammonia combustion system [1][2] - The new ammonia turbine is designed for marine, onshore, and offshore applications, including electric generation and mechanical drive [1][2] Group 1: Ammonia as a Fuel - Ammonia is identified as a critical fuel for decarbonizing hard-to-abate sectors such as marine, oil and gas, and power [2][8] - Hanwha Ocean will primarily benefit from the JDCA by adopting the new ammonia turbine as a propulsion system for future vessels, contributing to maritime decarbonization [2][4] Group 2: Development Timeline and Goals - Hanwha has successfully tested a proof-of-concept combustor using 100% ammonia, while Baker Hughes completed initial turbine feasibility studies in 2024 [3][6] - The companies aim to complete full engine testing with ammonia by the end of 2027, after which the turbine, expected to have a power range of approximately 16MW, will be commercially available for orders [3][6] Group 3: Industry Impact and Statements - The collaboration is seen as a significant step towards accelerating the transition to low-carbon fuel propulsion in the global maritime industry [4][5] - Executives from both companies emphasize the importance of partnerships in achieving emissions reductions and enhancing the adoption of ammonia as a fuel [4][5]

Core Insights - Baker Hughes has secured a significant multi-year contract from ExxonMobil Guyana to supply specialty chemicals and related services for the Uaru and Whiptail offshore developments in Guyana's Stabroek Block [1][2] - The contract encompasses all necessary chemicals for the Errea Wittu and Jaguar FPSO vessels, which are expected to commence production in 2026 and 2027, respectively [2][3] - Each FPSO will have a production capacity of 250,000 barrels per day, contributing to a total production capacity of approximately 1.3 million barrels per day for Guyana [3] Company Background - Baker Hughes is an energy technology company with a century of experience, operating in over 120 countries, and focuses on providing innovative solutions to energy and industrial customers [5] - The company has established a strong local presence in Guyana, including the opening of a multimodal supercenter in Georgetown in 2022 [4] Industry Context - The Uaru and Whiptail projects represent ExxonMobil Guyana's fifth and sixth developments in the country, which will include up to 20 drill centers and 92 production and injection wells [3] - Baker Hughes' expertise in oilfield and industrial chemicals positions it well to support complex FPSO operations in the region [3]

Core Viewpoint - Baker Hughes Company is conducting its Q4 2024 earnings conference call, highlighting its financial performance and future outlook [1][3]. Group 1: Company Overview - The conference call is hosted by Chase Mulvehill, Vice President of Investor Relations, with participation from Lorenzo Simonelli, Chairman & CEO, and Nancy Buese, CFO [2][3]. - The earnings release for Q4 2024 is available on the company's website, along with a presentation for the conference call [3]. Group 2: Financial Performance - The call will include forward-looking statements regarding the company's performance, which are subject to various risks and assumptions [4].

Core Insights - Baker Hughes Company (BKR) reported fourth-quarter 2024 adjusted earnings of 70 cents per share, exceeding the Zacks Consensus Estimate of 63 cents and improving from 51 cents a year ago [1][2] - Total quarterly revenues reached $7,364 million, surpassing the Zacks Consensus Estimate of $7,094 million and increasing from $6,835 million in the previous year [2] Dividend Announcement - As of January 31, 2025, Baker Hughes declared a quarterly cash dividend of 23 cents per share, a 10% increase from the previous dividend of 21 cents per share, payable on February 21, 2025 [3] Segment Performance - The company reorganized into two operating segments: Oilfield Services and Equipment, and Industrial and Energy Technology, effective October 1, 2022 [4] - Revenues from the Oilfield Services and Equipment unit were $3,871 million, down 2% from $3,956 million a year ago, and below the estimate of $3,884 million [4] - Operating income from this segment increased to $526 million, up 7% from $492 million in the fourth quarter of 2023, driven by favorable pricing and efficiency gains [5] - Revenues from the Industrial & Energy Technology unit amounted to $3,492 million, up 21% from $2,879 million a year ago, exceeding the estimate of $3,223 million [5] - Operating income from this segment rose to $584 million, a 42% increase from $412 million in the previous year, attributed to higher volumes and improved productivity [6] Costs and Expenses - Total costs and expenses for the fourth quarter were $6,699 million, up from $6,183 million a year ago, and higher than the projected $6,134.4 million [7] Orders and Free Cash Flow - Total orders from all business segments reached $7,496 million, a 9% increase year over year from $6,904 million, although below the expected $9,753.7 million [8] - Free cash flow generated in the quarter was $894 million, compared to $633 million a year ago [9] Capital Expenditure and Balance Sheet - Net capital expenditure for the fourth quarter was $295 million, with cash and cash equivalents of $3,364 million as of December 31, 2024 [11] - Long-term debt stood at $5,970 million, resulting in a debt-to-capitalization ratio of 26.1% [11]

4Q & FY 2024 Results January 31, 2025 Copyright 2025 Baker Hughes Company. All rights reserved. This presentation (and oral statements made regarding the subjects of this presentation) may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, (each a "forward-looking statement"). The words "anticipate," "believe," "ensure," "expect," "if," "intend," "estimate," "project," "foresee," ...

Core Insights - Baker Hughes reported strong fourth-quarter results, highlighting its strategic initiatives in energy transition technologies [2][6] - The company achieved a 37.3% year-over-year increase in adjusted EPS, reaching $0.70, and a 7.7% rise in revenue to $7.364 billion, surpassing analyst expectations [2][3] - The focus on low-carbon solutions and technological innovation positions Baker Hughes favorably within the evolving energy sector [4][5] Financial Performance - Adjusted EPS for Q4 2024 was $0.70, compared to $0.62 consensus and $0.51 in Q4 2023, reflecting a 37.3% increase [3] - Revenue increased to $7.364 billion, exceeding the $7.069 billion estimate and up from $6.835 billion in Q4 2023, marking a 7.7% growth [3] - Adjusted EBITDA rose by 20.1% to $1.310 billion, while free cash flow jumped 41.2% to $894 million, driven by improved operational performance [3][7] Strategic Initiatives - The company is focusing on energy transition, with a 24% year-over-year increase in industrial and energy technology orders [6] - The industrial & energy technology segment saw a revenue increase of 21%, with gas technology solutions demand surging by 44% [6] - Baker Hughes is leading in hydrogen-fueled power systems and carbon capture technology, aiming to capture market share in alternative energy [5] Future Outlook - Management is optimistic about maintaining focus on energy transition technologies, anticipating growth driven by the industrial & energy technology segment [8] - The company aims for a 20% EBITDA margin from its oilfield services & equipment segment by 2025 [8] - Investors should monitor developments in strategic energy transition projects, including partnerships in hydrogen energy and carbon capture initiatives [9]

Core Insights - Baker Hughes (BKR) reported quarterly earnings of $0.70 per share, exceeding the Zacks Consensus Estimate of $0.63 per share, and up from $0.51 per share a year ago, representing an earnings surprise of 11.11% [1] - The company achieved revenues of $7.36 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.81%, compared to $6.84 billion in the same quarter last year [2] - Baker Hughes has outperformed the S&P 500, gaining about 5% since the beginning of the year, while the S&P 500 has gained 2.7% [3] Earnings Outlook - The future performance of Baker Hughes' stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][5] - Current consensus EPS estimate for the upcoming quarter is $0.51 on revenues of $6.58 billion, and for the current fiscal year, it is $2.55 on revenues of $27.95 billion [7] Industry Context - The Oil and Gas - Field Services industry, to which Baker Hughes belongs, is currently ranked in the bottom 16% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Baker Hughes' stock may also be influenced by the overall outlook for the industry [8]