Group 1 - Baker Hughes Company (BKR) has secured a multi-year agreement with Expand Energy Corporation (EXE) to implement its Leucipa automated production technology across thousands of wells in the Marcellus, Utica, and Haynesville shales [2][5] - The deployment of Leucipa is expected to enhance production efficiency, thereby supporting higher cash flows for EXE [2][3] - The Leucipa platform utilizes AI, real-time data analytics, and machine learning to improve operational efficiency and reduce manual overheads in oil and gas field operations [4][7] Group 2 - The collaboration between BKR and EXE aims to streamline EXE's upstream workflows through modern digital technology, enhancing operational efficiency [5][6] - BKR's position in digital energy solutions is further strengthened by this implementation, making it more attractive to investors [3][5] - The current business environment for oil and gas exploration firms is improving, positively impacting the business models of other players in the industry, such as Cactus, Inc. (WHD) and Halliburton Company (HAL) [6]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q4 totaled $1.34 billion, contributing to a record full-year adjusted EBITDA of $4.83 billion, reflecting sustained momentum from the business system and positive performance in Industrial and Energy Technology (IET) [4][30] - Adjusted earnings per share rose to $0.78, resulting in a full-year adjusted EPS of $2.60, a 10% increase from 2024 [4] - Adjusted EBITDA margins for Q4 rose 30 basis points year-over-year to a record 18.1% [4] - For the full year, company-adjusted EBITDA margins increased by 90 basis points to a record of 17.4% [5] Business Line Data and Key Metrics Changes - IET achieved record fourth-quarter order bookings of $4 billion, contributing to a full-year total of $14.9 billion, exceeding guidance [6] - IET margins increased by 160 basis points to 20% in Q4, while OFSE margins declined due to market conditions [4][35] - OFSE revenue fell 8% to $14.3 billion for the full year, with EBITDA of $2.62 billion resulting in resilient margins of 18.3% [37] Market Data and Key Metrics Changes - LNG equipment orders in 2025 totaled $2.3 billion, with expectations for similar levels in 2026 [8] - New Energy orders reached a record $2 billion for the full year, well above the target of $1.4 billion to $1.6 billion [10] - Global LNG demand is expected to increase by at least 75% by 2040, primarily driven by growth across Asia [16] Company Strategy and Development Direction - The company is focused on scaling its power systems portfolio to capture growing demand, particularly in data centers and renewable energy [3][19] - The pending acquisition of Chart is expected to enhance the power generation portfolio and enable integrated trigeneration solutions [28][49] - The company aims to achieve a 20% adjusted EBITDA margin by 2028, supported by ongoing productivity improvements and cost management initiatives [45][49] Management's Comments on Operating Environment and Future Outlook - The global macro environment remains resilient despite geopolitical uncertainties, with expectations for modest GDP growth in 2026 [14] - The company anticipates continued investment in generative AI and digital infrastructure, which will drive energy demand [14][15] - Management expressed confidence in achieving the three-year IET orders target of at least $40 billion, supported by strong order momentum [47] Other Important Information - The company generated robust free cash flow of $1.3 billion in Q4, contributing to a record annual free cash flow of $2.7 billion [7] - The balance sheet remains strong, with cash increasing to $3.7 billion and a net debt to adjusted EBITDA ratio decreasing to 0.5 times [31] Q&A Session Summary Question: Can you elaborate on your strategy for further enhancing your current capabilities or sustaining growth from Power Systems? - Management highlighted a multi-year growth cycle in global power demand, driven by factors such as data centers and electrification, with a market opportunity of $100 billion annually for Power Systems by 2030 [52][54] Question: Can you walk through some of the moving pieces within the $14.5 billion IET order intake guide for 2026? - Management indicated that the order outlook reflects strength across the IET portfolio, with LNG, gas infrastructure, and power systems expected to drive growth [63][65] Question: Can you discuss the margin outlook for IET and OFSE? - Management expects IET margins to reach 20% in 2026, driven by higher-margin backlog conversion and productivity improvements, while OFSE margins are projected to remain resilient despite macro headwinds [70][73]

Core Insights - Computer Modelling Group Ltd. (CMG) has entered into an agreement with Baker Hughes to integrate their simulation and seismic technologies, enhancing software and consulting solutions for upstream energy development [1][3]. Group 1: Agreement Details - The collaboration aims to improve user experience and ease of use by enhancing integration across both companies' solution sets [3]. - The partnership will provide end-to-end workflows that include seismic to geology, geology to reservoir, reservoir to production, and production to surveillance [3]. - CMG and Baker Hughes will also explore further integration opportunities with Baker Hughes' Leucipa automated field production solution and CarbonEdge digital solution for CCUS operations [3]. Group 2: Industry Impact - The integration of CMG's seismic interpretation and reservoir simulation tools with Baker Hughes' JewelSuite subsurface and geomechanical modelling is expected to optimize asset recovery and mitigate operational risks [2]. - Experts from both companies will collaborate on consulting projects in subsurface and surface oil and gas, geothermal, and CCUS systems, providing specialized industry expertise [4]. Group 3: Company Statements - CMG's CEO emphasized the commitment to building an open ecosystem for technology integration, allowing customers to select best-in-class solutions [5]. - Baker Hughes' Chief Digital Officer highlighted the importance of collaboration in their digital strategy to enhance the customer experience from exploration to sustainable production optimization [5].