Baker Hughes Company (NASDAQ:BKR) Q2 2020 Results Earnings Conference Call July 22, 2020 9:00 AM ET Company Participants Judson Bailey - VP, IR Lorenzo Simonelli - Chairman and CEO Brian Worrell - Chief Financial Officer Conference Call Participants James West - Evercore ISI Sean Meakim - JPMorgan Angie Sedita - Goldman Sachs Chase Mulvehill - Bank of America Bill Herbert - Simmons David Anderson - Barclays Scott Gruber - Citigroup Kurt Hallead - RBC Operator Good day, ladies and gentlemen, and welcome to t ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 1-38143 Baker Hughes Company (Exact name of registrant as specified in its charter) Delaware 81-4403168 (State or other jurisdiction (I.R.S. Employer Identification No.) of inco ...

Financial Data and Key Metrics Changes - The first quarter of 2020 saw a revenue decline of 15% sequentially and 3% year-over-year, totaling $5.4 billion, driven by declines in TPS, Digital Solutions, and OFE, partially offset by growth in OFS [50][51] - Operating loss for the quarter was $16.1 billion, which included a $14.8 billion goodwill impairment and $1.5 billion in restructuring charges [51][52] - Free cash flow generated was $152 million, with strong receivables performance contributing to $183 million from working capital [55][56] Business Line Data and Key Metrics Changes - Oilfield Services (OFS) revenue was $3.1 billion, down 5% sequentially, with North America revenue down 2% and international revenue down 6% [60][61] - Oilfield Equipment (OFE) revenue was $712 million, down 3% year-over-year, with orders down 36% year-over-year due to no major subsea tree awards [65][66] - Turbo Machinery (TPS) revenue was $1.1 billion, down 17% year-over-year, but operating income increased by 13% year-over-year to $134 million [72][73] - Digital Solutions (DS) revenue was $489 million, down 17% year-over-year, with operating income down 57% due to lower volumes related to Covid-19 [75][77] Market Data and Key Metrics Changes - The Covid-19 pandemic is expected to negatively impact global oil demand by 20 million to 30 million barrels per day in the second quarter and by 9 million to 10 million barrels per day for the entire year [9][13] - North America drilling and completion spending is projected to contract by at least 50% in 2020 compared to 2019 [15][63] - Internationally, spending is expected to decline by double digits, with Latin America and Sub-Saharan Africa facing the sharpest declines [17][64] Company Strategy and Development Direction - The company is focusing on cost-cutting measures, including a restructuring plan expected to drive around $700 million in annualized savings [24][43] - There is an emphasis on transitioning the portfolio to a higher mix of industrial and chemical end-markets while capitalizing on energy transition-related growth opportunities [31][29] - The company aims to maintain financial strength and liquidity during the downturn, with cash and cash equivalents totaling $3 billion at the end of the quarter [46][47] Management's Comments on Operating Environment and Future Outlook - Management expressed that the current downturn is different from previous ones, with improved systems and processes in place to respond quickly [85][88] - The outlook for oil supply and demand remains uncertain, with expectations of a significant decline in activity levels and project delays [14][15] - The company remains positive on the medium to long-term outlook for natural gas and LNG prices, despite the challenges faced in 2020 [13][120] Other Important Information - The company has taken decisive actions to cut costs and optimize processes, including reducing capital expenditures by over 20% compared to prior estimates [24][47] - The company is leveraging technology for remote operations and virtual testing to enhance efficiency and reduce costs for customers [26][90] Q&A Session Summary Question: How does Baker Hughes' current situation differ from past downturns? - Management highlighted that the company has better visibility and improved processes since the last downturn, allowing for a more agile response to market conditions [85][88] Question: What is the outlook for margins in Oilfield Services? - Management indicated that despite headwinds, they expect to maintain strong margins through cost efficiency measures [97][102] Question: What is the medium to long-term outlook for LNG orders? - Management expects fewer LNG FIDs in 2020 but remains optimistic about the long-term growth outlook for LNG demand [120][121]

Baker Hughes > Investor Overview | --- | --- | --- | --- | |------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------|-------| | | | | | | | | | | | March 2020 | | | | | | uches and its affiliates. It is to be used only for the benefit of Baker Hughes and may not be distributed, ed for any purpose without the express written consent of Baker H ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 1-38143 Baker Hughes Company (Exact name of registrant as specified in its charter) Delaware 81-4403168 (State or other jurisdiction of incorporation or organization) (I.R.S. Employe ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 1-38143 Baker Hughes Company (Exact name of registrant as specified in its charter) Delaware 81-4403168 (State or other jurisdiction (I.R.S. Employer Identification No.) of ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 1-38143 Baker Hughes, a GE company (Exact name of registrant as specified in its charter) Delaware 81-4403168 (State or other jurisdiction (I.R.S. Employer Identification No.) of ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 1-38143 | --- | --- | |-----------------------------------|-----------------------------------------------------------------------------------| | | | | | Baker Hughes, a GE comp ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2018 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 1-38143 Baker Hughes, a GE company (Exact name of registrant as specified in its charter) Delaware 81-4403168 (State or other jurisdiction of incorporation or organization) (I.R. ...