About Baker Hughes, A GE Company, LLC
Baker Hughes, a GE Company reserves its products and services for the global petroleum market. Through its Drilling and Evaluation segment, Baker Hughes makes products and services used to drill oil and natural gas wells. It also makes bits and drilling fluids and submersible pumps. Through its Completion and Production segment, the firm provides equipment and services used from the completion phase through the productive life of oil and natural gas wells. Its Industrial Service segment provides equipment and services for the refining, process, and pipeline industries. In 2014 the company agreed to be bought by
Change in Company Type
Looking to see a rebound from the major slump in crude prices, in 2017
Baker Hughes is a supplier of oilfield services, products, technology and systems to the worldwide oil and natural gas business. It also provides services and products to the downstream chemicals, and process and pipeline services, referred to as Industrial Services.
The company's oilfield operations include Drilling and Evaluation and Completion and Production.
Completion and Production (almost 60% of revenues) consists of Completion Systems, Wellbore Intervention, Intelligent Production Systems, Artificial Lift, Upstream Chemicals, Pressure Pumping.
Drilling and Evaluation (more than 30%) consists of Drill Bits, Drilling Services, Wireline Services, and Drilling and Completion Fluids.
Industrial Services (10%) consists of downstream chemicals (which provides products and services that help to increase refinery production and improve plant safety and equipment reliability) and process and pipeline services (which if engaged in the inspection, pre-commissioning, and commissioning of new and existing pipeline systems and process plants).
Baker Hughes operates in more than 80 countries. It divides its business into four regions: North America, Latin America, Europe/Africa/Russia Caspian (EARC), and Middle East/Asia Pacific (MEAP). North America is its largest market, generating 30% of net sales.
Its Industrial Services segment has locations in Houston, Texas; Barnsdall, Oklahoma; and in the UK.
Sales and Marketing
The company markets its products and services through its own sales organizations. Customers include integrated major and super-major oil and natural gas firms and independent oil and natural gas companies, as well as national or state-owned oil companies.
Baker Hughes' revenues are generated from the sale of products and services to major, national, and independent oil and natural gas companies worldwide.
In 2016, Baker Hughes' revenues declined 37% from $15.7 billion in 2015 to $9.8 billion in 2016 due to a drop in revenues from all of the company's reportable segments. The company also suffered net losses of $2 billion and $2.7 billion in 2015 and 2016, respectively.
The declines in 2016 were attributed to a sharp reduction in commodity prices, which severely impacted onshore North America exploration and production companies as a result of the higher lifting cost per barrel of many of these producers.
Despite the net loss and revenue declines, Baker Hughes' operating cash flow skyrocketed from $1.8 billion in 2015 to $4.2 billion in 2016 mainly due to a $3.5 billion merger termination fee from Halliburton.
Baker Hughes is facing daunting challenges as the oil sector has been forced to cut costs and find ways to boost efficiency since the price of oil collapsed from nearly $120 a barrel in June 2014. Throughout 2015 and 2016, the company aligned its cost structure with near-term activity levels. This included closing several facilities across the world and cutting its global workforce by 7,000, as well as the write-down of excess machinery and equipment.
17021 ALDINE WESTFIELD RD
Houston, TX 77073-5101
Phone: 1 (713) 439-8600
Employer Type: Publicly Owned
Chief Global Operations Officer: Belgacem Chariag
President and CEO: Lorenzo Simonelli
CFO: Brian Worrell
Employees (This Location): 130
Employees (All Locations): 64,000
Huntington Beach, CA
Grand Junction, CO
Baton Rouge, LA
Bossier City, LA
Golden Meadow, LA
Mount Pleasant, MI
Saint Louis, MO
Oklahoma City, OK
Sand Springs, OK
Mount Pleasant, PA
Corpus Christi, TX
Fort Worth, TX
San Antonio, TX
Sugar Land, TX
The Woodlands, TX
Salt Lake City, UT