HOUSTON, July 30, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE:MDR) and Baker Hughes, a GE company (NYSE: BHGE) announced today that the companies were awarded contracts to provide a joint URF and SPS solution for the INPEX-operated Ichthys Liquefied Natural Gas (LNG) field development, located off the northwest coast of Western Australia. 

The award includes a joint URF and SPS EPCI solution, comprising a new subsea well gathering system (GS4), tied back to the existing central processing facility. In addition to the GS4 scope, the award includes in-fill URF EPCI scope involving the development of new subsea wells tied-in to the existing gathering systems. Water depths in the field range from 787 to 885 feet (240 to 270 meters).

McDermott and BHGE will lead the project from the joint Project Management and Engineering office in Perth, Australia. Fabrication of the subsea URF equipment will be carried out at McDermott's fabrication facility in Batam, Indonesia. Utilizing the Subsea Connect execution model, BHGE will deliver the SPS scope, including vertical christmas trees, associated production control systems, distribution equipment and topside controls as well as associated installation and commissioning support services. This award follows an earlier award granted to BHGE in 1Q 2019, including four christmas trees and associated SPS equipment for in-fill development. Offshore installation of the URF and SPS equipment will commence in 2020 and be completed in 2023. The field development will be carried out using state-of-the-art assets, including McDermott's derrick lay vessel, DLV 2000.

"McDermott's alliance with BHGE is a combination of two leaders in subsea development. McDermott's majority share of this award is a testament to our expertise in executing large and complex subsea EPCI projects. Our experience will ensure delivery during the next phase of this key gas field development," said Ian Prescott, McDermott's Senior Vice President for Asia Pacific.

Graham Gillies, BHGE Regional OFE Vice President, said, "We have brought together core elements of our Subsea Connect approach, leveraging early engagement, advanced technology, and our flexible partnership model to deliver improved project economics and certainty for Ichthys LNG. This award is a true example of how the industry is changing its approach to subsea projects."

About Ichthys LNG

Ichthys LNG is one of the largest and most complex resource developments in the world. Located about 136 miles (220 kilometers) off the northwest coast of Western Australia, Ichthys LNG is effectively three mega-projects in one. The development has an expected operational life of 40 years and involves some of the largest offshore facilities in the industry and state-of-the-art onshore LNG processing and exporting facilities. 

About McDermott

McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.

About Baker Hughes, a GE company

Baker Hughes, a GE company (NYSE: BHGE) is the world's first and only fullstream provider of integrated oilfield products, services and digital solutions. We deploy minds and machines to enhance customer productivity, safety and environmental stewardship, while minimizing costs and risks at every step of the energy value chain. With operations in over 120 countries, we infuse over a century of experience with the spirit of a start-up – inventing smarter ways to bring energy to the world. Visit us at BHGE.com

Forward-Looking Statements

In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected scope, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.

Contacts:
McDermott International Inc.

Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com

Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com

Asia Pacific Media Relations
Miki O'Farrell
Manager, Marketing
Asia Pacific
+60 12 305 3609
mofarrell@mcdermott.com

Baker Hughes, a GE company

Investor Relations 
+1 281 809 9088 
investor.relations@BHGE.com

OFE Media Relations
Kelly Russell
+1 713 548 4176
kelly.russell2@bhge.com

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SOURCE McDermott International, Inc.; Baker Hughes, a GE company

HOUSTON, April 8, 2019 /PRNewswire/ -- KBR, Inc. (NYSE: KBR) announced today that it has selected Baker Hughes, a GE company (NYSE: BHGE), as part of the ongoing development of KBR's standardized mid-scale Liquefied Natural Gas (LNG) design. The design utilizes ConocoPhillips' (NYSE: COP) Optimized Cascade® technology as part of a broader partnership previously announced by KBR and COP.

The mid-scale LNG facilities designed under the agreement between KBR and BHGE will standardize around BHGE's proven gas turbine driver technologies, featuring BHGE's LM2500+G5 and LM6000PF gas turbines. Installed in KBR LNG facilities, these gas turbine technologies will provide ideal power ratings, speed and power flexibility, long maintenance intervals, and industry leading efficiencies.

Further enhancing client value, KBR and BHGE will leverage their unique experiences and service portfolios to provide standardized, low CAPEX LNG solutions for grassroots and existing LNG assets.

"BHGE and KBR have a well-established 40-year history and partnership successfully delivering LNG projects," said Farhan Mujib, KBR President, Hydrocarbons - Delivery Solutions. "This allows us to further enhance our cost effective standardized approach to LNG design, minimizing CAPEX and OPEX for our clients."

"We are delighted that KBR has selected our highly efficient and reliable gas turbine technology as part of the development of its standardized mid-scale LNG design," said Rod Christie, President & CEO Turbomachinery Process & Solutions – BHGE. "We welcome the opportunity to strategically work together with key partners like KBR, looking at our collective solutions across the value chain to develop a more competitive solution for customers."

For more than 40 years, KBR has been a recognized pioneer in the LNG industry, designing and constructing one-third of the world's LNG production.

About KBR, Inc.

KBR is a global provider of differentiated professional services and technologies across the asset and program lifecycle within the Government Services and Hydrocarbons sectors. KBR employs approximately 36,000 people worldwide (including our joint ventures), with customers in more than 75 countries, and operations in 40 countries, across three synergistic global businesses:

• Government Services, serving government customers globally, including capabilities that cover the full lifecycle of defense, space, aviation and other government programs and missions from research and development, through systems engineering, test and evaluation, program management, to operations, maintenance, and field logistics
• Technology, including proprietary technology focused on the monetization of hydrocarbons (especially natural gas and natural gas liquids) in ethylene and petrochemicals; ammonia, nitric acid and fertilizers; oil refining and gasification
• Hydrocarbons Services, including onshore oil and gas; LNG (liquefaction and regasification)/GTL; oil refining; petrochemicals; chemicals; fertilizers; differentiated EPC; maintenance services (Brown & Root Industrial Services); offshore oil and gas (shallow-water, deep-water, subsea); floating solutions (FPU, FPSO, FLNG & FSRU); program management and consulting services

KBR is proud to work with its customers across the globe to provide technology, value-added services, integrated EPC delivery and long term operations and maintenance services to ensure consistent delivery with predictable results. At KBR, We Deliver.

Visit www.kbr.com

Forward Looking Statement

The statements in this press release that are not historical statements, including statements regarding future financial performance, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond the company's control that could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: the outcome of and the publicity surrounding audits and investigations by domestic and foreign government agencies and legislative bodies; potential adverse proceedings by such agencies and potential adverse results and consequences from such proceedings; the scope and enforceability of the company's indemnities from its former parent; changes in capital spending by the company's customers; the company's ability to obtain contracts from existing and new customers and perform under those contracts; structural changes in the industries in which the company operates; escalating costs associated with and the performance of fixed-fee projects and the company's ability to control its cost under its contracts; claims negotiations and contract disputes with the company's customers; changes in the demand for or price of oil and/or natural gas; protection of intellectual property rights; compliance with environmental laws; changes in government regulations and regulatory requirements; compliance with laws related to income taxes; unsettled political conditions, war and the effects of terrorism; foreign operations and foreign exchange rates and controls; the development and installation of financial systems; increased competition for employees; the ability to successfully complete and integrate acquisitions; and operations of joint ventures, including joint ventures that are not controlled by the company.

KBR's most recently filed Annual Report on Form 10-K, any subsequent Form 10-Qs and 8-Ks, and other U.S. Securities and Exchange Commission filings discuss some of the important risk factors that KBR has identified that may affect the business, results of operations and financial condition. Except as required by law, KBR undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

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SOURCE KBR, Inc.

HOUSTON, March 11, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) and Baker Hughes, a GE company (NYSE: BHGE) have announced today that they have been awarded subsea umbilicals, risers and flowlines (SURF) and subsea production system (SPS) equipment contracts by BP for the Greater Tortue Ahmeyim natural gas project, located offshore Mauritania and Senegal. BP, BHGE and McDermott are working together to realize efficiencies, synergies and enhanced delivery times.

McDermott was awarded a substantial* engineering, procurement, construction and installation (EPCI) SURF contract. McDermott plans to use its upgraded Amazon vessel, DLV 2000, North Ocean 102 (NO 102) and third-party vessels to support installation scheduled to begin in late 2020. The Amazon modifications are scheduled to be completed before the installation campaign begins and will include a multi-joint (hex) J-Lay system to handle the most challenging ultra-deepwater projects as well as the addition of a multi-joint facility, dual pipe loading cranes and additional power generation. McDermott-designed pipeline and riser structures will be fabricated at its yard in Batam, Indonesia.

BHGE is demonstrating the benefits of early-engagement and collaboration – some of the key components of Subsea Connect – as well as bringing its expertise in deepwater, long-offset gas projects. The company will provide five large-bore deepwater horizonal xmas trees (DHXTs), a 6-slot dual bore manifold, a pipeline end manifold, subsea distribution units (SDUs), three subsea isolation valves (SSIVs), diverless connections and subsea production control systems, specifically designed to enable the future integration of additional wells for the first phase of the development.

"This contract marks a number of firsts: our first significant subsea EPCI project in West Africa; the first project using our state of the art pipelay vessel Amazon; and our support of BP's first entry into Senegal and Mauritania. This project is also of significant importance in support of our aspirations in this region," said Tareq Kawash, McDermott's Senior Vice President for Europe, Africa, Russia and Caspian. "Our collaboration with BHGE allows us to offer BP an integrated approach that builds on our proven solutions. We look forward, along with BHGE, to deliver this landmark project to BP with the highest levels of safety and quality."

"Together with McDermott, we will deliver the best-in-class solution to BP with cost-efficiency and industry-leading safety. These awards demonstrate the value of early-engagement, collaborative partnerships and holistic project planning, which are very much central to our new approach to subsea developments, Subsea Connect," said Graham Gillies, BHGE's Vice President, Subsea Production Systems & Services. "This major deepwater gas development is strategically important for Mauritania and Senegal's domestic and global gas supply, and supports the industry's drive for a more sustainable, lower carbon future."

These latest awards follow an initial front-end engineering and design (FEED) phase, awarded in March 2018, during which BHGE and McDermott worked together to define the technology and equipment scope for a four-well development phase. Project management and engineering teams from BP, BHGE and McDermott will remain co-located at McDermott's London offices for this next phase.

BHGE has also signed an agreement to become a "Country Partner" of Invest in Africa's (IIA) Senegal chapter, of which BP is a founding member. The IIA helps local suppliers to connect with international oil and gas companies, increasing the opportunities for local businesses to support large-scale projects, and training African suppliers on core business skills and entrepreneurship.

Project Details
The initial subsea infrastructure connects the first four of 12 wells consolidated through production pipelines leading to a floating production, storage, and offloading (FPSO) vessel. From here liquids are removed and the export gas is transported via a pipeline to the floating liquid natural gas (FLNG) hub terminal where the gas is liquefied.

* - McDermott defines a substantial contract as between $500 million to $750 million. The contract award will be reflected in McDermott's first quarter 2019 backlog.

About McDermott

McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.

About Baker Hughes, a GE company

Baker Hughes, a GE company (NYSE: BHGE) is the world's first and only fullstream provider of integrated oilfield products, services and digital solutions. We deploy minds and machines to enhance customer productivity, safety and environmental stewardship, while minimizing costs and risks at every step of the energy value chain. With operations in over 120 countries, we infuse over a century of experience with the spirit of a start-up – inventing smarter ways to bring energy to the world. Visit us at BHGE.com

Forward-Looking Statements

In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and statements about the expected value, scope, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.

McDermott International, Inc.

Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com

Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269                                                
Gentry.Brann@McDermott.com

Baker Hughes, a GE company

Investor Relations
Philipp Mueller
+1 281 809 9088
investor.relations@BHGE.com

Media Relations
Lynne Turnbull
+44 7771996140
lynne.turnbull@bhge.com 

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SOURCE McDermott International, Inc.; Baker Hughes, a GE company

HOUSTON, June 27, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) and Baker Hughes, a GE company (NYSE: BHGE), today announced the award of a contract by POSCO DAEWOO Corp. for phase two of the Shwe gas field development offshore Western Myanmar.

The McDermott-led consortium took part in a FEED competition in 2017.  The successful execution of the FEED followed by the EPCIC tender led to the award of this project.

The EPCIC scope covers SURF and SPS for an eight-subsea-well development at a water depth of between 279 feet (85 meters) and 466 feet (142 meters). It also covers brownfield modifications to tie-back the new subsea facilities to the existing Shwe platform.

"McDermott's strategic alliance with BHGE is a combination of two leaders in subsea development," said Ian Prescott, McDermott Senior Vice President for Asia Pacific. "Together, we offer comprehensive, cost-efficient and advanced technical solutions for our customers. McDermott's expertise in executing large and complex EPCIC projects in Asia will help us deliver certainty during the next phase of this important gas field development."

Graham Gillies, Vice President-Subsea Production Systems & Services at BHGE, said, "Cost efficiency and productivity are top priorities for our customers and are fundamentally changing the way we work and partner across the industry to deliver the solutions they need. Through early engagement and close collaboration with POSCO DAEWOO, the consortium was able to offer the optimum solution. This win demonstrates the value the consortium can create through early engagement with customers, adoption of standardized technology solutions and efficiency of project execution."    

McDermott will undertake the EPCIC of SURF and brownfield modification scopes, using its regional center of excellence for project management and engineering in Kuala Lumpur, Malaysia. The SURF structures and production manifolds will be fabricated in the Asia Pacific region. McDermott also will execute the installation and commissioning phase, with Field Service Engineering expertise and tooling support from BHGE's base in Singapore.  Installation of SURF and SPS components will be carried out using McDermott's state of the art pipelay assets, including the Derrick Lay Vessel 2000.

BHGE will supply the SPS scope, including eight Medium-water Horizontal Xmas Trees (MHXT), eight subsea production control systems and distribution equipment, and topside controls.

McDermott's portion of this award is classified as a large *contract, which will be reflected in its second quarter 2018 backlog.  The contract's final delivery is scheduled for 2022.

The Shwe field development consists of the Shwe, Shwe Phyu and Mya offshore gas fields, located in blocks A-1 and A-3 of the Bay of Bengal, Myanmar. The project is operated by POSCO DAEWOO Corp. and is being developed by a consortium of five companies, including POSCO DAEWOO Corp., Myanma Oil and Gas Enterprise, Oil and Natural Gas Corp. Videsh Limited, Gas Authority of India and Korea Gas Corporation.

* - McDermott defines a large contract as between USD $50 million and USD $250 million.

About McDermott

McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions—from the wellhead to the storage tank—to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees and engineers, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.

About BHGE

Baker Hughes, a GE company (NYSE:BHGE) is the world's first and only fullstream provider of integrated oilfield products, services and digital solutions. We deploy minds and machines to enhance customer productivity, safety and environmental stewardship, while minimizing costs and risks at every step of the energy value chain. With operations in over 120 countries, we infuse over a century of experience with the spirit of a startup – inventing smarter ways to bring energy to the world. Visit us at BHGE.com.

Forward-Looking Statements

In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected scope, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.

Contacts:

Investor Relations

Scott Lamb
Vice President, Investor Relations
+1 832-513-1068
Scott.Lamb@McDermott.com

Global Media Relations

Gentry Brann
Global Vice President, Communications
+1 281-870-5269                                                         
Gentry.Brann@McDermott.com

Local Asia Contact

Philip Ng
Communications Manager, Asia
+6017 200 4238 (mobile, Kuala Lumpur, Malaysia)
Fng2@McDermott.com

Baker Hughes, a GE company (BHGE)

Media Relations

• Chris Lim, +65 68646264, chris.lim@bhge.com
• Gavin Roberts, +44 1224 349679, gavin.roberts@bhge.com

Investor Relations:
Philipp Mueller, +1 281 809 9088, investor.relations@bhge.com

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SOURCE McDermott International, Inc.

HOUSTON, May 6, 2016 /PRNewswire/ -- Baker Hughes Incorporated (NYSE:BHI) announced today that the international rig count for April 2016 was 946, down 39 from the 985 counted in March 2016, and down 256 from the 1,202 counted in April 2015. The international offshore rig count for April 2016 was 220, up 9 from the 211 counted in March 2016, and down 80 from the 300 counted in April 2015.

The average U.S. rig count for April 2016 was 437, down 41 from the 478 counted in March 2016, and down 539 from the 976 counted in April 2015. The average Canadian rig count for April 2016 was 41, down 47 from the 88 counted in March 2016, and down 49 from the 90 counted in April 2015.

The worldwide rig count for April 2016 was 1,424, down 127 from the 1,551 counted in March 2016, and down 844 from the 2,268 counted in April 2015.

April 2016 Rotary Rig Counts

About the Baker Hughes Rig Counts

The Baker Hughes Rotary Rig Counts are counts of the number of drilling rigs actively exploring for or developing oil or natural gas in the U.S., Canada and international markets. Baker Hughes has issued the rotary rig counts as a service to the petroleum industry since 1944, when Hughes Tool Company began weekly counts of the U.S. and Canadian drilling activity. Baker Hughes initiated the monthly international rig count in 1975.

The North American rig count is scheduled to be released at noon Central time on the last working day of each week. The international rig count is scheduled to be released on the fifth working day of the month at 5:00 a.m. Central time. Additional detailed information on the Baker Hughes rig counts is available from our website.

Baker Hughes is a leading supplier of oilfield services, products, technology and systems to the worldwide oil and natural gas industry. The company's 39,000 employees today work in more than 80 countries helping customers find, evaluate, drill, produce, transport and process hydrocarbon resources. For more information about Baker Hughes, visit: www.bakerhughes.com.

CONTACTS:
Media Relations: Melanie Kania, + 1.713.439.8303, melanie.kania@bakerhughes.com
Investor Relations: Alondra Oteyza, +1.713.439.8822, alondra.oteyza@bakerhughes.com

SOURCE Baker Hughes Incorporated

HOUSTON, May 2, 2016 /PRNewswire/ -- Following the termination of its merger agreement, Baker Hughes Incorporated (NYSE: BHI) today outlined a series of actions to reduce costs and simplify its business, enhance its commercial strategy, and optimize its capital structure.

The steps are intended to strengthen the company's competitive position, financial performance and shareholder returns during the ongoing industry challenges of today and for the additional opportunities that will be available when the market recovers.

Baker Hughes Chairman and CEO Martin Craighead said that the company is well positioned to build on its heritage as a product innovator, focusing on the development of products that lower costs and maximize production for operators in the oil and gas industry.

"Innovation is what we do best and what our customers need the most. It is an enviable capability that is part of our culture and continues to differentiate us in the market. Baker Hughes also has an experienced and exceptionally talented team of people, a global footprint, and industry-leading products, services and technology expertise," Craighead said. "More than ever, our customers need to lower their costs and maximize production. These objectives align with our strengths in Well Construction, where we have leading capabilities in drilling services, drill bits and completions, and Well Production, where we have a unique portfolio with artificial lift systems, wireline services and production chemicals. We intend to build on our strong foundation and market position by simplifying the structure of our business and evolving our commercial strategy to deliver significant value to shareholders."

Actions outlined by the company include:

Improving operational efficiency and effectiveness

Baker Hughes is taking immediate steps to remove significant costs that were retained in compliance with the former merger agreement. In addition to removing those previously disclosed costs, the company is evaluating broader structural changes to further significantly reduce costs and improve efficiency, which will allow it to better serve the rapidly shifting global market.

The initial phase of the cost reduction efforts is expected to result in $500 million of annualized savings by the end of 2016.  

Evolving the company's go-to-market strategy

As it seeks to further capitalize on its leadership position as a product innovator, the company is evolving its go-to-market strategy to align with a changing marketplace and maximize its return on invested capital. The company will be rationalizing where it provides its current full-service model and will build a broader range of global sales channels for select countries, including tailored operating models. These new channels will allow Baker Hughes to take its products to market more efficiently and participate differently in existing markets with lower investment and fewer risks.

In an effort to improve its return on invested capital the company has decided to retain a selective footprint in its U.S. onshore pressure pumping business, while preserving the flexibility to expand for the right opportunities. This approach will allow the company to achieve cash-positive operations in a capital-intensive segment that is expected to remain challenging due to overcapacity, commoditized pricing and low barriers to entry.

Optimizing the company's capital structure

The company also is taking actions to optimize its capital structure to achieve the right balance between returning capital to shareholders, maintaining strong investment grade ratings and having the necessary cash to fund cost efficiency initiatives, while preserving its financial flexibility.

As part of these plans, the company intends to buy back shares totaling $1.5 billion and debt totaling $1 billion, from proceeds of the $3.5 billion breakup fee. In addition, the company intends to refinance its $2.5 billion credit facility, which expires in September 2016.

"The company will approach these actions thoughtfully, decisively and swiftly to position the company for success and to maximize shareholder value," Craighead said. "As we implement these changes, we remain focused on running the business efficiently while capitalizing on our strengths as a product innovator to create new growth opportunities. We are extremely appreciative of our customers and their loyalty to Baker Hughes, and our employees are energized to turn our technology expertise into the latest game-changing product innovations that create even more value for them."

Baker Hughes will provide more details on its plans when Craighead and Senior Vice President and Chief Financial Officer Kimberly Ross host a webcast on Tuesday, May 3 at 7:00 a.m. Central Time (8:00 a.m. Eastern Time). To access the webcast, go to our Events and Presentations page on the Company's website at: www.bakerhughes.com/investor.

Forward-Looking Statements

This news release (and oral statements made regarding the subjects of this release, including on the conference call announced herein) 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," "forecasts," "predict," "outlook," "aim," "will," "could," "should," "potential," "would," "may," "probable," "likely," and similar expressions, and the negative thereof, are intended to identify forward-looking statements.  There are many risks and uncertainties that could cause actual results to differ materially from our forward-looking statements.  These forward-looking statements are also affected by the risk factors described in the Company's Annual Report on Form 10-K/A for the year ended December 31, 2015, Quarterly Report on Form 10-Q for the quarter ended March 31, 2016, recent Current Reports on Form 8-K, and other Securities and Exchange Commission filings available through the Company's website at:  www.bakerhughes.com/investor or through the SEC's Electronic Data Gathering and Analysis Retrieval ("EDGAR") system at:  www.sec.gov.  We undertake no obligation to publicly update or revise any forward-looking statement.

Our expectations regarding our business outlook and business plans; share and debt repurchases; the business plans of our customers; oil and natural gas market conditions; cost and availability of resources; economic, legal and regulatory conditions, and other matters are only our forecasts regarding these matters.

Baker Hughes is a leading supplier of oilfield services, products, technology and systems to the worldwide oil and natural gas industry. The company's 39,000 employees today work in more than 80 countries helping customers find, evaluate, drill, produce, transport and process hydrocarbon resources. For more information about Baker Hughes, visit: www.bakerhughes.com.

SOURCE Baker Hughes Incorporated

HOUSTON, April 27, 2016 /PRNewswire/ -- Baker Hughes Incorporated (NYSE: BHI) announced today results for the first quarter of 2016.

"During the quarter, the industry faced another precipitous decline in activity, exceeding even the most pessimistic predictions, as E&P companies further cut spending in an effort to protect cash flows," said Martin Craighead, Baker Hughes Chairman and Chief Executive Officer. "As a result of this steep decrease in customer spending, our revenue for the first quarter was down 21% sequentially. Compared to the prior year, revenue declined 42%, driven by lower activity as evident by the 41% global rig count drop, reduced pricing across most markets, and the strategic decision to continue limiting our exposure to unprofitable onshore pressure pumping business in North America.

"Despite the severity of these headwinds, decremental operating margins sequentially and year-over-year were contained to 28% and 13%, respectively. Although we have taken significant actions to manage our cost structure during the downturn, we are retaining costs in our operating profit margins in compliance with the merger agreement. Additionally, the unique circumstances in which we are operating limit our ability to consider and action a broader range of measures required to align the company with the current and near-term market conditions.

"In North America, revenue declined 28% compared to the fourth quarter of 2015, driven primarily by reduced U.S. onshore activity and the associated price erosion. Additionally, due to the unsustainable pricing in onshore pressure pumping, we continue to limit the pursuit of certain opportunities as we strive for cash-flow-positive operations in this business. In spite of the drop in revenue, decremental operating margins of 15% were achieved in the region as a result of cost-saving measures and lower depreciation expense from prior-year impairments. Internationally, revenue fell 19% sequentially for the quarter as activity declined significantly in important markets for us, such as Brazil, Southeast Asia, North Sea, West Africa, and Argentina. The reduction in revenue was exacerbated by unfavorable product mix and pricing, and resulted in a contraction of our international margins.

"In the second quarter, we forecast the North America rig count to fall 30% compared to the first quarter average. For the second half of the year, we project the U.S. rig count will begin to stabilize, although we do not expect activity to meaningfully increase in 2016. Conversely, the international rig count is predicted to drop steadily through the end of the year as we see limited new projects in the pipeline.

"In this environment, helping our customers maximize production while lowering overall costs is more critical than ever before. Our products and services put us in a remarkable position to lower the cost of well construction, optimize well production, and increase ultimate recovery as we continue to leverage opportunities to convert our capabilities into earnings."

2016 First Quarter Results

Revenue for the quarter was $2.7 billion, a decrease of $724 million, or 21% sequentially, and down $1.9 billion, or 42% compared to the first quarter of 2015.

Adjusted EBITDA (a non-GAAP measure) was $108 million for the quarter, a decrease of $268 million, or 71% sequentially, and down $350 million, or 76% compared to the first quarter of 2015.

On a GAAP basis, net loss attributable to Baker Hughes for the first quarter was $981 million, or $2.22 per diluted share. Included in our net income was tax valuation allowances of $502 million ($1.14 per diluted share), adjusting items of $280 million after-tax ($0.64 per diluted share) and merger retained costs in excess of $110 million after-tax ($0.25 per diluted share).

Adjusted net loss (a non-GAAP measure) for the quarter was $701 million, or $1.58 per diluted share. Adjusted net loss excludes impairment and restructuring charges of $145 million after-tax ($0.33 per diluted share), merger and related costs of $92 million after-tax ($0.21 per diluted share), and a loss on a firm purchase commitment of $43 million after-tax ($0.10 per diluted share). These adjustments total $280 million after-tax ($0.64 per diluted share).

Free cash flow (a non-GAAP measure) for the quarter was ($103) million. Excluding merger-related and restructuring payments of $296 million, free cash flow was $193 million for the quarter.

For the quarter, capital expenditures were $86 million, a decrease of $128 million, or 60% sequentially, and down $229 million, or 73% compared to the first quarter of 2015. The reduction in capital expenditures is attributable to lower activity levels and our continued focus on capital discipline. Depreciation and amortization expense for the quarter was $354 million, a decline of $62 million, or 15% sequentially, and down $106 million, or 23% compared to the same quarter last year. The decline in depreciation and amortization is primarily related to the prior-year impairment and restructuring actions.

Corporate costs were $32 million, compared to $29 million in the prior quarter and $49 million in the first quarter of 2015. The year-over-year reduction in corporate costs is mainly due to workforce reductions and lower spend.

Income tax expense for the quarter of $367 million includes $502 million of valuation allowances recorded primarily against U.S. and non-U.S. tax loss carryforwards and other deferred tax assets, given the uncertainty as to when, or if, in certain jurisdictions, we will generate sufficient future taxable income to utilize such carryforwards and other deferred tax assets in light of the prolonged downturn.

North America

North America revenue of $819 million for the quarter decreased 28% sequentially. The decline was driven primarily by a steep drop in U.S. onshore activity as the rig count dropped 26% compared to the prior quarter. Revenue also was impacted by share losses in onshore pressure pumping as we strive for cash-flow-positive operations in unsustainable market conditions, and increased pricing pressure, mainly in the completion and production product lines. Activity also declined in Canada, as evident in the 6% sequential rig count drop, as most projects remain uneconomical at current oil prices.

North America adjusted operating profit margin (a non-GAAP measure) was (21.2%) for the first quarter, compared to (11.2%) in the prior quarter. Despite the erosion of margins driven by the sharp decline in activity and an increasingly unfavorable pricing environment, a sequential 15% decremental operating margin was achieved as a result of ongoing cost reduction measures, lower depreciation and amortization from prior-year impairments, and reduced liquidated damages and other costs related to sand supply contracts.

Compared to the same quarter last year, revenue declined 59% as a result of a steep drop in activity, as reflected in the 58% year-over-year rig count decline, and deteriorating pricing conditions as operators further adjust their spending in 2016.  All product lines have been unfavorably impacted by the activity drop, with production chemicals, deepwater operations, and artificial lift showing the most resilience. Revenue also has been impacted by onshore pressure pumping share reductions. Year-over-year operating margins decreased from (2.5%) in the prior year to (21.2%) in the current year as a result of reduced activity and ongoing price erosion. Actions taken to reduce operating costs, combined with reduced depreciation and amortization from the prior-year impairments, helped mitigate the impact on margins of the precipitous decline in revenue.

Latin America

First quarter revenue for Latin America was $277 million, down 35% sequentially. The decline in revenue was driven mainly by the steep activity reduction in offshore Brazil, Argentina, and the Andean area, as reflected in the 33% sequential rig count decline for these critical markets. Activity also declined in Mexico as a result of ongoing budgetary constraints in the country.

Adjusted operating profit margin for Latin America for the quarter was (23.8%), compared to 3.5% for the prior quarter. The sequential decrease in operating profit was driven by the abrupt reduction in activity and an unfavorable product mix as a result of lower activity in offshore and artificial lift markets. The current quarter included $42 million of provisions for doubtful accounts, mostly as a result of ongoing collection challenges from a cash-constrained customer in Ecuador, an $8 million increase from the prior quarter. Also, the first quarter results include an expense of $15 million related to local non-income taxes.

Compared to the prior year, revenue decreased 44%, primarily driven by activity declines, as evident in the 46% rig count drop, exclusive of Venezuela, where we have limited presence. Activity has declined swiftly across the entire region, with the Andean area experiencing the largest decline. Year over year, margins decreased from 9.1% in the first quarter of 2015 to (23.8%) in the current quarter. The impact on margins from lower revenue was exacerbated by an unfavorable product mix from reduced offshore and artificial lift activity. The first quarter of 2016 also included an additional $33 million of provisions for doubtful accounts and an expense of $15 million related to local non-income taxes, which have reduced the benefit of implemented cost reduction measures.

Europe/Africa/Russia Caspian

Europe/Africa/Russia Caspian revenue of $611 million for the quarter decreased 15% sequentially, primarily as a result of reduced activity and price deterioration in the North Sea and West Africa, as customers reduce spending. Revenue also was unfavorably impacted by foreign exchange rates, particularly in the European and Russian currencies.

Adjusted operating profit margins were (3.1%) for the first quarter of 2016, compared to 6.6% for the prior quarter. In addition to reduced activity and pricing, margins were negatively impacted by an unfavorable product and geographic mix resulting from lower offshore activity in key markets. Margins for the quarter also were unfavorably impacted by foreign exchange losses and provisions for doubtful accounts, which impacted margins by 260 bps.

Compared to the prior year, revenue declined $284 million, or 32%. The decrease can be attributed to activity reductions across all markets, primarily in West Africa, the UK, and Continental Europe; price deterioration throughout the region; and the unfavorable change in exchange rates, mainly in the European and Russian currencies. Year over year, margins decreased 88 bps, as the decline in operating profit from reduced activity and unfavorable pricing was entirely offset by improved profitability from implemented cost-saving actions and a $60 million decline in provisions for doubtful accounts, primarily in Africa.

Middle East/Asia Pacific

Middle East/Asia Pacific revenue of $718 million for the quarter declined 12% sequentially. The reduction in revenue is driven primarily by lower activity in Southeast Asia and Australia, where the rig count has dropped 18% compared to the prior quarter. Revenue was also negatively impacted by unfavorable pricing across the region.

Adjusted operating profit margin was 6.8%, a 304 bps improvement compared to the fourth quarter. Despite reduced activity and pricing, profit margins improved as a result of cost-saving measures implemented throughout the region and of prior-quarter one-time charges in Iraq and in Asia Pacific not repeating.

Compared to the prior year, revenue decreased $198 million, or 22%, predominantly as a result of reduced activity in Southeast Asia, Australia, and Iraq, and significant pricing pressure across the region. Year over year, margins remained unchanged, despite lower activity levels and unfavorable pricing, due to the benefit from cost-saving actions and from $22 million of provisions for doubtful accounts in the prior year that did not repeat in the current quarter.

Industrial Services

Industrial Services revenue of $245 million for the quarter decreased 14% sequentially. The decline in revenue was related mainly to ongoing project delays in the process and pipeline services business stemming from reduced customer spending associated with the lower commodity pricing environment. Revenue also was negatively impacted by the seasonal drop in activity that occurs in the first quarter.

Adjusted operating profit margins were (1.6%), compared to 7.7% in the prior quarter. The decline in margins was attributable to the drop in activity and an increase in environmental costs.

Compared to the prior year, revenue decreased 14% due to activity declines across all business lines as a result of customers reducing spending and delaying projects. Revenue also was negatively impacted by pricing and the unfavorable change in foreign exchange rates. Year-over-year operating profit margins declined 515 bps from 3.5% in the prior year, due primarily to activity reductions and price concessions.

Please see Table 1 for a reconciliation of GAAP to non-GAAP financial measures. A reconciliation of net income (loss) attributable to Baker Hughes to Adjusted EBITDA is provided in Table 2. Supplemental segment financial information for revenue, adjusted operating profit (loss) before tax (a non-GAAP measure), and adjusted operating profit before tax margin is provided in Table 5. Decremental operating margin (a non-GAAP measure) is the decrease of adjusted operating profit (loss) before interest expense and income taxes between two periods, divided by the increase or decrease in revenue between the same two periods (see Table 5). Free cash flow is defined as net cash flows provided by operating activities less disbursements for capital expenditures plus proceeds from disposal of assets.

Innovations to Earnings

The following section provides operational and technical highlights outlining the successes aligned to our strategy.

Efficient Well Construction

Baker Hughes saves trip costs with GaugePro™ concentric reamer for super major in Nigeria. A customer planned to drill the 12 ¼-in. x 14 ¾-in. hole section in three runs using a pilot bit and reamer. After the original service provider was unsuccessful, the customer awarded the work to Baker Hughes. Using the GaugePro™ XPR-D expandable reamer with premium cutter technology, Baker Hughes reamed the interval with minimal vibration to deliver a uniformly in-gauge hole.

Baker Hughes awarded drilling and completions fluids contracts in the Middle East. Baker Hughes won eight large awards ranging from specialty products, such as the PERFORMAX™ and MAXBRIDGE™ water-based systems, to commodity items, such as UNI-CAL™ CF chrome-free lignosulfonate. The award demonstrates Baker Hughes' leading capabilities in reservoir remediation fluids and high-overbalance specialty water-based muds.

Baker Hughes achieves drilling record in U.S. Eagle Ford. After drilling more than a mile a day in one customer's Northeast operations in 2014/15, the operator challenged Baker Hughes to drill at the same pace in its newly acquired Eagle Ford acreage. On the second well, more than a mile—5,633 ft (1717 m)—was drilled in a 24-hour period, averaging 5,559 ft (1694 m) per day throughout the lateral. The well was drilled using the AutoTrak™ Curve rotary steerable system with an Ultra MS motor and an AT 505F Baker Hughes bit. These marks established 24-hour drilling records for Baker Hughes; Webb County, Texas; and the customer.

Baker Hughes achieves drilling efficiencies in U.S. Gulf of Mexico. A Gulf of Mexico customer requested that Baker Hughes drill an 8,300-ft (2580-m) intermediate well section within seven days to avoid a separate trip for a BOP function test. Even with issues on the customer's new rig that postponed the start of work for two days, Baker Hughes completed the well section with more than 24 hours to spare. The Kymera™ hybrid bit drilled at an average rate of penetration of 150 ft/hr (46 m/hr) and achieved large savings for the customer.

Baker Hughes sets presalt drilling record in Brazil's Santos Basin. Baker Hughes has successfully drilled the fastest presalt well in the Santos Basin of Brazil. The well was drilled to the planned total depth of 16,486 ft (5025 m) with flawless execution and zero non-productive-time in only 25.3 days. To date, the Baker Hughes team has participated in the three fastest presalt wells and seven of the 10 fastest wells in the area.

Baker Hughes installs 18-stage completion in Argentinian unconventional well. Baker Hughes has successfully installed the first FracPoint™ cemented multipoint sleeve completion system in a shale oil well in Argentina. Baker Hughes deployed the 18-stage completion system by placing 54 clusters along 4,921 ft (1500 m) of lateral. The cemented sleeve should help protect the well against collapse during the stimulation phase. The customer plans to stimulate this well along with a parallel lateral to be completed using plug-and-perf technology and later compare the production results from the two wells.

Optimizing Well Production and Increasing Ultimate Recovery

Baker Hughes secures strategic artificial lift system awards in Russia. Baker Hughes was awarded a large share of a three-year high-temperature cable tender for the largest national oil company in Russia. In addition, Baker Hughes signed a five-year contract with the largest independent oil company in Sakhalin to provide electrical submersible pumping (ESP) systems for water production. This project has an opportunity for extension and is the first artificial lift systems contract awarded to Baker Hughes by this customer. In addition, the contract awards Baker Hughes drilling services and drill bits work for 2016 and 2017.

Baker Hughes receives three-year production chemicals contract in Argentina. Baker Hughes was awarded a three-year contract to provide production chemicals and associated services to treat the produced water from Argentina's Malargue field, south of the Mendoza province. This contract, which started in February, represents a strategic win that further supports the continued growth of upstream chemicals in Argentina.

Baker Hughes awarded demulsifier supply and related services in three offshore Congo fields. Baker Hughes recently was awarded a contract to supply TRETOLITE™ demulsifiers to three offshore Congo fields. The award to the first field was made after the Baker Hughes TRETOLITE demulsifier program improved performance over the incumbent's treatment program. The operator later expanded the supply of TRETOLITE demulsifiers to two additional fields and expanded the application of the first field to include downhole and remote satellite applications.

Baker Hughes receives sole-source contract for all process chemicals, water treatment, and finished fuel additives. Baker Hughes was awarded an exclusive, multiyear, multimillion-dollar contract for all process chemicals, water treatment, and finished fuel additives at a northern California refinery. In addition to the benefits from the TOPGUARD™ corrosion risk monitor and VIVID™ smart controller for water treatment, the customer valued the downstream chemicals team's responsiveness and alignment with the customer's priorities.

Baker Hughes wins reservoir simulation contract in Mexico's Ayatsil-Tekel block. Baker Hughes secured a significant win to perform four projects in the shallow-water Ayatsil-Tekel block. The scope of the project includes performing a dynamic simulation on nine fields, developing a seismic interpretation and performing velocity modeling of high-resolution 3D seismic data, and constructing a fracture network analysis.

Supplemental Financial Information

Supplemental financial information can be found on the Company's website at: www.bakerhughes.com/investor in the Financial Information section under Quarterly Results.

Additional Information

As previously announced in Baker Hughes' Current Report on Form 8-K filed with the SEC on November 18, 2014, Baker Hughes and Halliburton Company ("Halliburton") have entered into an Agreement and Plan of Merger (the "Merger Agreement"), pursuant to which, subject to the satisfaction or waiver of certain conditions, Baker Hughes will be merged with and into a wholly-owned subsidiary of Halliburton (the "Merger").  In connection with this proposed Merger, Halliburton filed with the SEC a registration statement on Form S-4, including Amendments No. 1 and 2 thereto, and a definitive joint proxy statement/prospectus of Baker Hughes and Halliburton and other documents related to the proposed transaction.  The registration statement was declared effective by the SEC on February 17, 2015, and the definitive proxy statement/prospectus was mailed to stockholders of Baker Hughes and Halliburton.

On March 27, 2015, Halliburton's stockholders approved the proposal to issue shares of Halliburton common stock as contemplated by the Merger Agreement.  In addition, Baker Hughes' stockholders adopted the Merger Agreement and thereby approved the proposed combination of the two companies.  On July 10, 2015, Baker Hughes and Halliburton entered into a timing agreement with the Antitrust Division of the Department of Justice (the "DOJ") and the companies subsequently announced an amendment to the timing agreement on September 28, 2015. Pursuant to the amended timing agreement, both companies agreed to extend the period of the DOJ's review of the Merger to the later of December 15, 2015, or 30 days following the date on which both companies have certified final, substantial compliance with the DOJ's prior request for additional information under the U.S. Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. On December 16, 2015, Baker Hughes' and Halliburton's timing agreement with the DOJ expired. On April 6, 2016, the DOJ filed suit seeking to permanently enjoin completion of the Merger. Baker Hughes and Halliburton previously agreed to extend the period for the parties to obtain required competition approvals to April 30, 2016, as permitted under the Merger Agreement. In addition, the transaction is still subject to regulatory approvals in other countries and to customary closing conditions. If, as expected, the DOJ's lawsuit and review by relevant competition authorities extends beyond April 30, 2016, the Merger Agreement does not terminate automatically; the parties may continue to defend against the DOJ's lawsuit and seek relevant competition approvals or either of the parties may terminate the Merger Agreement. Baker Hughes cannot predict when, or if, the pending Merger will be completed.

Forward-Looking Statements

This news release contains 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," "forecasts," "predict," "outlook," "aim," "will," "could," "should," "potential," "would," "may," "probable," "likely," and similar expressions, and the negative thereof, are intended to identify forward-looking statements.  There are many risks and uncertainties that could cause actual results to differ materially from our forward-looking statements.  These forward-looking statements are also affected by the risk factors described in the Company's Annual Report on Form 10-K/A for the year ended December 31, 2015; and those set forth from time-to-time in other filings with the Securities and Exchange Commission ("SEC").  The documents are available through the Company's website at:  www.bakerhughes.com/investor or through the SEC's Electronic Data Gathering and Analysis Retrieval ("EDGAR") system at:  www.sec.gov.  We undertake no obligation to publicly update or revise any forward-looking statement.

Our expectations regarding our business outlook and business plans; the business plans of our customers; oil and natural gas market conditions; cost and availability of resources; economic, legal and regulatory conditions, and other matters are only our forecasts regarding these matters.

These forward looking statements, including forecasts, may be substantially different from actual results, which are affected by many risks including the impact of the pending Merger with Halliburton, along with the following risk factors and the timing of any of these risk factors:

Baker Hughes - Halliburton pending Merger - the ability to obtain regulatory approvals for the transaction; the impact of the pending transaction making it more difficult to obtain relationships with customers, employees or suppliers; the inability to retain key personnel; the diversion of the attention of our management; the suspension of our stock repurchase program pursuant to the terms of the Merger Agreement.

Restructuring activities - the ability to successfully implement and adjust the restructuring activities and achieve their intended results.

Economic and political conditions - the impact of worldwide economic conditions; the effect that declines in credit availability may have on worldwide economic growth and demand for hydrocarbons; the ability of our customers to finance their exploration and development plans, coupled with their liquidity constraints; foreign currency exchange fluctuations and changes in the capital markets in locations where we operate; and the impact of government disruptions.

Oil and gas market conditions - the level of petroleum industry exploration, development and production expenditures; the price of, volatility in pricing of, and the demand for crude oil and natural gas; drilling activity; drilling permits for and regulation of the shelf and the deepwater drilling; excess productive capacity; crude and product inventories; LNG supply and demand; seasonal and other adverse weather conditions that affect the demand for energy; severe weather conditions, such as tornadoes and hurricanes, that affect exploration and production activities; Organization of Petroleum Exporting Countries ("OPEC") policy and the adherence by OPEC nations to their OPEC production quotas.

Terrorism and geopolitical risks - war, military action, terrorist activities or extended periods of international conflict, particularly involving any petroleum-producing or consuming regions; labor disruptions, civil unrest or security conditions where we operate; expropriation of assets by governmental action; cybersecurity risks and cyber incidents or attacks; epidemic outbreaks.

Price, market share, contract terms, and customer payments - our ability to obtain market prices for our products and services; the ability of our competitors to capture market share; our ability to retain or increase our market share; changes in our strategic direction; the effect of industry capacity relative to demand for the markets in which we participate; our ability to negotiate acceptable terms and conditions with our customers, especially national oil companies, to successfully execute these contracts, and receive payment in accordance with the terms of our contracts with our customers; our ability to manage warranty claims and improve performance and quality; our ability to effectively manage our commercial agents.

Costs and availability of resources - our ability to manage the costs, availability, distribution and/or delivery of sufficient raw materials and components (especially steel alloys, chromium, copper, carbide, lead, nickel, titanium, beryllium, barite, synthetic and natural diamonds, sand, gel, chemicals, and electronic components); our ability to manage energy-related costs; our ability to manage compliance-related costs; our ability to recruit, train and retain the skilled and diverse workforce necessary to meet our business needs and manage the associated costs; the effect of manufacturing and subcontracting performance and capacity; the availability of essential electronic components used in our products; the effect of competition, particularly our ability to introduce new technology on a forecasted schedule and at forecasted costs; potential impairment of assets; unanticipated changes in the levels of our capital expenditures; the need to replace any unanticipated losses in capital assets; labor-related actions, including strikes, slowdowns and facility occupations; our ability to maintain information security.

Litigation and changes in laws or regulatory conditions - the potential for litigation or proceedings and our ability to obtain adequate insurance on commercially reasonable terms; the legislative, regulatory and business environment in the U.S. and other countries in which we operate; outcome of government and legal proceedings, including with respect to the pending Merger, as well as costs arising from compliance and ongoing or additional investigations in any of the countries where the Company does business; new laws, regulations and policies that could have a significant impact on the future operations and conduct of all businesses; laws, regulations or restrictions on hydraulic fracturing; any restrictions on new or ongoing offshore drilling or permit and operational delays or program reductions as a result of the regulations in the Gulf of Mexico and other areas of the world; changes in export control laws or exchange control laws; the discovery of new environmental remediation sites; changes in environmental regulations; the discharge of hazardous materials or hydrocarbons into the environment; restrictions on doing business in countries subject to sanctions; customs clearance procedures; changes in accounting standards; changes in tax laws or tax rates in the jurisdictions in which we operate; resolution of tax assessments or audits by various tax authorities; and the ability to fully utilize our tax loss carry forwards and tax credits.

Baker Hughes is a leading supplier of oilfield services, products, technology and systems to the worldwide oil and natural gas industry. The Company's 39,000 employees today work in more than 80 countries helping customers find, evaluate, drill, produce, transport and process hydrocarbon resources. For more information about Baker Hughes, visit:  www.bakerhughes.com.

Investor Contact:
Alondra Oteyza, +1.713.439.8822, alondra.oteyza@bakerhughes.com

Media Contact:
Melanie Kania, +1.713.439.8303, melanie.kania@bakerhughes.com

SOURCE Baker Hughes Incorporated

HOUSTON, April 18, 2016 /PRNewswire/ -- Baker Hughes Incorporated (NYSE: BHI) Chairman and Chief Executive Officer Martin S. Craighead announced today that the Baker Hughes Board of Directors declared the regular quarterly cash dividend of $0.17 per share of common stock payable June 22, 2016 to holders of record on June 1, 2016.

Baker Hughes is a leading supplier of oilfield services, products, technology and systems to the worldwide oil and natural gas industry. The company's 39,000 employees today work in more than 80 countries helping customers find, evaluate, drill, produce, transport and process hydrocarbon resources. For more information about Baker Hughes, visit: www.bakerhughes.com.

CONTACTS:

Investor Relations:   Alondra Oteyza, +1.713.439.8822, alondra.oteyza@bakerhughes.com

Media Relations:      Melanie Kania, +1.713.439.8303, melanie.kania@bakerhughes.com

SOURCE Baker Hughes Incorporated

HOUSTON, April 07, 2016 /PRNewswire/ -- Baker Hughes Incorporated (NYSE:BHI) announced today that the international rig count for March 2016 was 985, down 33 from the 1,018 counted in February 2016, and down 266 from the 1,251 counted in March 2015. The international offshore rig count for March 2016 was 211, down 14 from the 225 counted in February 2016, and down 105 from the 316 counted in March 2015.

The average U.S. rig count for March 2016 was 478, down 54 from the 532 counted in February 2016, and down 632 from the 1,110 counted in March 2015. The average Canadian rig count for March 2016 was 88, down 123 from the 211 counted in February 2016, and down 108 from the 196 counted in March 2015.

The worldwide rig count for March 2016 was 1,551, down 210 from the 1,761 counted in February 2016, and down 1,006 from the 2,557 counted in March 2015.

March 2016 Rotary Rig Counts

About the Baker Hughes Rig Counts
The Baker Hughes Rotary Rig Counts are counts of the number of drilling rigs actively exploring for or developing oil or natural gas in the U.S., Canada and international markets. Baker Hughes has issued the rotary rig counts as a service to the petroleum industry since 1944, when Hughes Tool Company began weekly counts of the U.S. and Canadian drilling activity. Baker Hughes initiated the monthly international rig count in 1975.

The North American rig count is scheduled to be released at noon Central time on the last working day of each week. The international rig count is scheduled to be released on the fifth working day of the month at 5:00 a.m. Central time. Additional detailed information on the Baker Hughes rig counts is available from our website.

Baker Hughes is a leading supplier of oilfield services, products, technology and systems to the worldwide oil and natural gas industry. The company's 43,000 employees today work in more than 80 countries helping customers find, evaluate, drill, produce, transport and process hydrocarbon resources. For more information about Baker Hughes, visit: www.bakerhughes.com.

CONTACTS:
Media Relations: Melanie Kania, + 1.713.439.8303, melanie.kania@bakerhughes.com
Investor Relations: Alondra Oteyza, +1.713.439.8822, alondra.oteyza@bakerhughes.com

SOURCE Baker Hughes Incorporated

HOUSTON, March 29, 2016 /PRNewswire/ -- Baker Hughes Incorporated (NYSE: BHI) announced today that it will release its financial results for the first quarter of 2016 before the market opens on Wednesday, April 27, 2016.

Baker Hughes is a leading supplier of oilfield services, products, technology and systems to the worldwide oil and natural gas industry. The company's 43,000 employees today work in more than 80 countries helping customers find, evaluate, drill, produce, transport and process hydrocarbon resources. For more information on Baker Hughes, visit: www.bakerhughes.com.

CONTACTS:
Investor Relations: Alondra Oteyza, +1.713.439.8822, alondra.oteyza@bakerhughes.com

Media Relations: Melanie Kania, +1.713.439.8303, melanie.kania@bakerhughes.com

SOURCE Baker Hughes Incorporated

HOUSTON, March 9, 2016 /PRNewswire/ -- Baker Hughes announced today that it is the first service company to have enrolled in the new Regional Operational Integrity Program™ (ROIP) for the petroleum and natural gas industry and to receive Gold Recognition for its Gulf of Mexico (GoM) Center of Excellence from the Wollam Petroleum Advisory Group (WPAG). Baker Hughes and WPAG, an oil and gas consulting firm, helped develop and pilot the new program that was implemented in late 2015. ROIP incorporates API Q2 standards and extends that specification's purpose of driving consistency, risk mitigation and service quality in upstream operations beyond the facility, to the regional level.

API Q2 was developed in 2010 to ensure that service providers implement quality controls at the facility level, based on identifying, assessing and managing risk. ROIP goes beyond facility certification to ensure consistency in all aspects of quality and risk mitigation control throughout a region. It is the industry's first program to incorporate global supply chain, manufacturing, drilling contractors, service providers and operators into one program to collaborate on a broader scale. The controls encompassed by the program include, but are not limited to, risk assessment and management; contingency planning; service design, quality plans and performance validation; identification and qualification of mission-critical suppliers; and change management based on risk factors. ROIP comprises six steps based on these controls in which a company must complete before receiving recognition for a region as Platinum, Gold, Silver or Bronze. 

 "Our responsibility as an industry is to 'do things right the first time.' We have learned from past incidents that moving the industry toward safer, more reliable operations requires that all aspects of quality programs be interrelated, interdependent and consistent," said Steve Ellison, Vice President, Quality at Baker Hughes. "Baker Hughes has taken a lead position with standards such as API Q2, and now ROIP, to support procedural controls, guidelines, risk mitigation and other aspects of quality that will help our clients reduce risk and ensure safe, trouble-free operations on the broadest scale possible."

"Beyond the products, services and expertise we provide our customers, one of the most important elements we must continue to deliver as an industry is trust," said Richard Ward, President, Global Products and Services at Baker Hughes. "Collaborative efforts such as ROIP demonstrate the industry's commitment in this area, and I want to thank the Baker Hughes' team as well as our partners for their efforts to strengthen quality and reliability standards and practices worldwide."

In 2015, Baker Hughes received API Q2 certification for its Completion Centers of Excellence in Houma and Broussard, Louisiana and for multiple product lines in Oman. It also successfully passed API Q2 certification audits in Brunei. The company is continuing to participate in the API Q2 review and certification process for its facilities globally and plans to apply for enrollment in the ROIP for operations in all of its regions.   

Baker Hughes' recent enrollment and recognition in ROIP and API Q2 certifications are the latest examples of its commitment to quality and reliability. Other milestones in this area include the following.

• Helped develop the API Q2 specification, participated in the pilot program, and was the first service provider to train and certify employees as API Q2 registered professionals
• First company in the industry to receive the International Association of Drilling Contractors (IADC) - Drilling Industry Training Accreditation for its Design for Reliability program
• First service company to achieve IADC's accredidation for its Competency Management Program and successfully complete its third annual recertification in September 2015  

The recent quality achievements are important components of Baker Hughes strategy to improve well efficiency, optimize production and increase ultimate recovery.

Baker Hughes is a leading supplier of oilfield services, products, technology and systems to the worldwide oil and natural gas industry. The company's 43,000 employees today work in more than 80 countries helping customers find, evaluate, drill, produce, transport and process hydrocarbon resources. For more information on Baker Hughes, visit: www.bakerhughes.com. 

CONTACTS:

Media Relations:      Melanie Kania, +1.713.439.8303, melanie.kania@bakerhughes.com  

Investor Relations:   Alondra Oteyza, +1.713.439.8822, alondra.oteyza@bakerhughes.com

SOURCE Baker Hughes Incorporated

HOUSTON, March 7, 2016 /PRNewswire/ -- Baker Hughes Incorporated (NYSE:BHI) announced today that the international rig count for February 2016 was 1,018, down 27 from the 1,045 counted in January 2016, and down 257 from the 1,275 counted in February 2015. The international offshore rig count for February 2016 was 225, down 17 from the 242 counted in January 2016, and down 99 from the 324 counted in February 2015.

The average U.S. rig count for February 2016 was 532, down 122 from the 654 counted in January 2016, and down 816 from the 1,348 counted in February 2015. The average Canadian rig count for February 2016 was 211, up 19 from the 192 counted in January 2016, and down 152 from the 363 counted in February 2015.

The worldwide rig count for February 2016 was 1,761, down 130 from the 1,891 counted in January 2016, and down 1,225 from the 2,986 counted in February 2015.

February 2016 Rotary Rig Counts

About the Baker Hughes Rig Counts

The Baker Hughes Rotary Rig Counts are counts of the number of drilling rigs actively exploring for or developing oil or natural gas in the U.S., Canada and international markets. Baker Hughes has issued the rotary rig counts as a service to the petroleum industry since 1944, when Hughes Tool Company began weekly counts of the U.S. and Canadian drilling activity. Baker Hughes initiated the monthly international rig count in 1975.

The North American rig count is scheduled to be released at noon Central time on the last working day of each week. The international rig count is scheduled to be released on the fifth working day of the month at 5:00 a.m. Central time. Additional detailed information on the Baker Hughes rig counts is available from our website.

Baker Hughes is a leading supplier of oilfield services, products, technology and systems to the worldwide oil and natural gas industry. The company's 43,000 employees today work in more than 80 countries helping customers find, evaluate, drill, produce, transport and process hydrocarbon resources. For more information about Baker Hughes, visit: www.bakerhughes.com.

SOURCE Baker Hughes Incorporated

HOUSTON, Feb. 5, 2016 /PRNewswire/ -- Baker Hughes Incorporated (NYSE:BHI) announced today that the international rig count for January 2016 was 1,045, down 50 from the 1,095 counted in December 2015, and down 213 from the 1,258 counted in January 2015. The international offshore rig count for January 2016 was 242, down 8 from the 250 counted in December 2015, and down 72 from the 314 counted in January 2015.

The average U.S. rig count for January 2016 was 654, down 60 from the 714 counted in December 2015, and down 1,029 from the 1,683 counted in January 2015. The average Canadian rig count for January 2016 was 192, up 32 fom the 160 counted in December 2015, and down 176 from the 368 counted in January 2015.

The worldwide rig count for January 2016 was 1,891, down 78 from the 1,969 counted in December 2015, and down 1,418 from the 3,309 counted in January 2015.

January 2016 Rotary Rig Counts