Baker Hughes Co 8-K, filed Nov 18, 2022
Baker Hughes Co (BKR)
8-K
2022-11-18
For: 2022-11-18
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Added on
April 07, 2026
About this 8-K
Baker Hughes Co filed this 8-K on November 18, 2022.
Items reported
- Item 8.01: Other events
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 18, 2022
(Exact name of registrant as specified in charter)
| (State of Incorporation) | (Commission File No.) | (I.R.S. Employer Identification No.) | (State of Incorporation) | (Commission File No.) | (I.R.S. Employer Identification No.) | |||||||||||||||||||||||||||
| (Address of Principal Executive Offices) | (Zip Code) | |||||||
Registrant’s telephone number, including area code: (713 ) 439-8600
(former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
| - | ||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 8.01 Other Events.
Baker Hughes Company (“Baker Hughes”, “the Company”, “we”, or “our”) and its main operating subsidiary, Baker Hughes Holdings LLC (“BHH LLC”), have reorganized to create two operating segments focused on different growth profiles and to simplify our operations to enhance profitability. Effective October 1, 2022, the two operating segments, which will also be our reportable segments, are: Oilfield Services & Equipment (“OFSE”) and Industrial & Energy Technology (“IET”). We previously operated the Company through four segments. Through this reorganization, we merged the Oilfield Services segment with the Oilfield Equipment segment to form the OFSE segment, and we merged the Turbomachinery & Process Solutions segment with the Digital Solutions segment to form the IET segment. The new organization will combine and integrate certain technologies, enhancing the portfolio of capabilities that support the emerging long-term growth opportunities in each of these segments. We believe the new structure will allow each segment to better adapt to the quickly changing energy markets, and by removing the product company layers, will upgrade a number of key operational processes across our businesses and enhance their economies of scale.
OFSE will operate through four product lines – Well Construction, Completions Intervention & Measurements, Production Solutions, and Subsea & Surface Pressure Systems. IET will operate through six product lines - Gas Technology Equipment and Gas Technology Services, collectively referred to as Gas Technology, and Condition Monitoring, Inspection, Pumps Valves & Gears, and PSI & Controls, collectively referred to as Industrial Technology.
Baker Hughes and BHH LLC have prepared unaudited historical consolidated financial information ("Financial Supplement") based on the new segment reporting structure and product lines. In addition, we have provided OFSE revenue by geographic region. Such information is filed as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
This Financial Supplement includes non-GAAP measures. We believe these non-GAAP measures are useful to investors and users of our financial information as they provide an alternate measurement of our performance and assist in assessing our capital adequacy and the level of return generated. These non-GAAP measures should not be viewed as a substitute for reported results determined in accordance with generally accepted accounting principles in the U.S. (“GAAP”), nor are they necessarily comparable to non-GAAP measures that may be presented by other companies. Segment EBITDA (a non-GAAP measure) is defined as segment operating income (loss) excluding segment depreciation & amortization. EBITDA (a non-GAAP measure) is defined as operating income (loss) excluding depreciation and amortization.
The information in this Current Report on Form 8-K should be read in conjunction with Baker Hughes’ and BHH LLC’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, and its Quarterly Reports on Form 10-Q for the fiscal quarters ended March 31, 2022, June 30, 2022, and September 30, 2022. BHH LLC is a Securities and Exchange Commission registrant with separate filing requirements.
Item 9.01 Financial Statements and Exhibits. (Information furnished in this Item 9.01 is furnished pursuant to Item 9.01.)
(d) Exhibits.
| 101.SCH* | Inline XBRL Schema Document | ||||
| 101.CAL* | Inline XBRL Calculation Linkbase Document | ||||
| 101.LAB* | Inline XBRL Label Linkbase Document | ||||
| 101.PRE* | Inline XBRL Presentation Linkbase Document | ||||
| 101.DEF* | Inline XBRL Definition Linkbase Document | ||||
| 104* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | ||||
* Furnished herewith.
Page 2
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| BAKER HUGHES COMPANY | ||||||||||||||
| Dated: November 18, 2022 | By: | /s/ Fernando Contreras | ||||||||||||
| Fernando Contreras Executive Counsel and Corporate Secretary | ||||||||||||||
| BAKER HUGHES HOLDINGS LLC | ||||||||||||||
| Dated: November 18, 2022 | By: | /s/ Fernando Contreras | ||||||||||||
| Fernando Contreras Executive Counsel and Corporate Secretary | ||||||||||||||
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EXHIBIT INDEX
| Exhibit No. | Description | |||||||
| 101.SCH | Inline XBRL Schema Document | |||||||
| 101.CAL | Inline XBRL Calculation Linkbase Document | |||||||
| 101.LAB | Inline XBRL Label Linkbase Document | |||||||
| 101.PRE | Inline XBRL Presentation Linkbase Document | |||||||
| 101.DEF | Inline XBRL Definition Linkbase Document | |||||||
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |||||||
Page 4
1 Copyright 2022 Baker Hughes Company. All rights reserved. Financial Supplement - Baker Hughes and Baker Hughes Holdings LLC (unaudited) FY 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 Well Construction $ 4,222 $ 1,023 $ 767 $ 731 $ 736 $ 3,257 $ 743 $ 800 $ 844 $ 914 $ 3,301 $ 883 $ 936 $ 991 Completions, Intervention & Measurements 4,491 1,112 882 832 788 3,614 716 782 791 817 3,106 781 886 920 Production Solutions 4,175 1,004 762 745 758 3,269 740 777 783 835 3,135 825 866 931 Subsea & Surface Pressure Systems 2,921 712 696 726 712 2,844 628 637 603 619 2,486 528 541 561 Oilfield Services & Equipment 15,809 3,851 3,106 3,034 2,993 12,984 2,827 2,995 3,021 3,185 12,028 3,017 3,230 3,403 Gas Technology - Equipment 1,958 328 402 663 1,028 2,421 733 795 703 686 2,916 543 556 610 Gas Technology - Services 2,710 557 588 625 704 2,475 573 636 661 829 2,700 581 542 629 Total Gas Technology 4,668 885 990 1,289 1,732 4,896 1,306 1,431 1,364 1,516 5,616 1,124 1,098 1,239 Condition Monitoring 647 136 141 141 163 581 136 147 129 149 562 126 133 131 Inspection 1,189 215 197 220 233 865 204 236 249 259 949 212 257 259 Pumps, Valves & Gears 868 200 172 224 214 809 179 197 198 226 801 221 194 199 PSI & Controls 656 138 130 142 160 570 130 136 131 149 546 136 135 138 Total Industrial Technology 3,360 689 640 727 769 2,824 648 717 708 784 2,857 694 718 728 Industrial & Energy Technology 8,028 1,574 1,629 2,016 2,501 7,721 1,954 2,148 2,072 2,300 8,473 1,818 1,816 1,967 Total Revenue $ 23,838 $ 5,425 $ 4,736 $ 5,049 $ 5,495 $ 20,705 $ 4,782 $ 5,142 $ 5,093 $ 5,485 $ 20,502 $ 4,835 $ 5,047 $ 5,369 Table 1. Consolidated Revenue by Reporting Segment and Product Line (in millions) Exhibit 99.1 Table 2. Oilfield Services & Equipment Geographic Revenue (in millions) FY 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 North America $ 5,095 $ 1,139 $ 706 $ 637 $ 625 $ 3,107 $ 681 $ 719 $ 753 $ 751 $ 2,904 $ 823 $ 925 $ 986 Latin America 1,677 454 307 311 374 1,447 379 411 436 454 1,681 440 509 549 Europe/CIS/Sub-Saharan Africa 3,138 768 676 718 684 2,846 649 695 726 795 2,865 660 660 586 Middle East/Asia 5,900 1,489 1,417 1,368 1,310 5,584 1,118 1,170 1,106 1,185 4,579 1,094 1,136 1,282 Oilfield Services & Equipment $ 15,809 $ 3,851 $ 3,106 $ 3,034 $ 2,993 $ 12,984 $ 2,827 $ 2,995 $ 3,021 $ 3,185 $ 12,028 $ 3,017 $ 3,230 $ 3,403 North America $ 5,095 $ 1,139 $ 706 $ 637 $ 625 $ 3,107 $ 681 $ 719 $ 753 $ 751 $ 2,904 $ 823 $ 925 $ 986 International $ 10,714 $ 2,712 $ 2,400 $ 2,397 $ 2,369 $ 9,877 $ 2,146 $ 2,275 $ 2,269 $ 2,434 $ 9,124 $ 2,194 $ 2,305 $ 2,417 Certain columns and rows in our tables may not sum up due to the use of rounded numbers.
2 Copyright 2022 Baker Hughes Company. All rights reserved. Financial Supplement - Baker Hughes and Baker Hughes Holdings LLC (unaudited) FY 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 Oilfield Services & Equipment $ 16,419 $ 3,639 $ 3,110 $ 2,728 $ 2,827 $ 12,304 $ 2,544 $ 3,040 $ 3,136 $ 3,077 $ 11,798 $ 3,270 $ 3,392 $ 3,707 Industrial & Energy Technology 10,555 1,893 1,778 2,378 2,361 8,410 1,996 2,053 2,242 3,579 9,870 3,567 2,467 2,357 Total Orders $ 26,973 $ 5,532 $ 4,888 $ 5,106 $ 5,188 $ 20,714 $ 4,541 $ 5,093 $ 5,378 $ 6,656 $ 21,668 $ 6,837 $ 5,860 $ 6,063 Table 3. Orders by Reporting Segment (in millions) Exhibit 99.1 Certain columns and rows in our tables may not sum up due to the use of rounded numbers.
3 Copyright 2022 Baker Hughes Company. All rights reserved. Financial Supplement - Baker Hughes (unaudited) Operating Income (loss) by Segment (GAAP) FY 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 Oilfield Services & Equipment $ 972 $ 198 $ 31 $ 112 $ 165 $ 506 $ 147 $ 199 $ 204 $ 280 $ 830 $ 213 $ 249 $ 324 Industrial & Energy Technology 1,062 163 190 237 408 998 231 245 304 397 1,177 241 236 282 Segment operating income 2,035 361 221 349 573 1,504 379 444 508 676 2,006 453 485 606 Corporate (433) (122) (117) (115) (111) (464) (109) (111) (105) (106) (429) (105) (108) (103) Inventory impairment — (160) (16) (42) (27) (246) — — — — — — (31) — Goodwill impairment — (14,773) — — — (14,773) — — — — — — — — Restructuring, impairment and other (342) (1,325) (103) (209) (229) (1,866) (80) (125) (14) 11 (209) (61) (362) (230) Separation related (184) (41) (37) (32) (24) (134) (27) (15) (11) (8) (60) (9) (9) (5) Operating income (loss) $ 1,074 $ (16,059) $ (52) $ (49) $ 182 $ (15,978) $ 164 $ 194 $ 378 $ 574 $ 1,310 $ 279 $ (25) $ 269 Add: Depreciation & Amortization Oilfield Services & Equipment $ 1,160 $ 294 $ 282 $ 252 $ 244 $ 1,072 $ 233 $ 221 $ 205 $ 215 $ 874 $ 222 $ 221 $ 204 Industrial & Energy Technology 219 53 51 57 55 216 52 53 52 52 208 51 49 45 Segment depreciation and amortization 1,379 347 333 309 300 1,288 285 273 257 267 1,082 272 270 249 Corporate 39 8 7 6 7 29 7 5 5 6 23 4 5 5 Total depreciation and amortization $ 1,418 $ 355 $ 340 $ 315 $ 307 $ 1,317 $ 292 $ 278 $ 262 $ 273 $ 1,105 $ 277 $ 275 $ 254 EBITDA by Segment (non-GAAP) Oilfield Services & Equipment $ 2,132 $ 492 $ 313 $ 364 $ 409 $ 1,578 $ 380 $ 420 $ 409 $ 495 $ 1,704 $ 434 $ 470 $ 528 Industrial & Energy Technology 1,281 216 241 293 464 1,214 283 297 356 449 1,385 291 285 327 Segment EBITDA (non-GAAP) 3,413 708 554 657 873 2,792 664 717 765 944 3,088 725 755 855 Corporate (394) (114) (110) (109) (104) (435) (102) (106) (100) (100) (407) (101) (103) (98) Inventory impairment — (160) (16) (42) (27) (246) — — — — — — (31) — Goodwill impairment — (14,773) — — — (14,773) — — — — — — — — Restructuring, impairment and other (342) (1,325) (103) (209) (229) (1,866) (80) (125) (14) 11 (209) (61) (362) (230) Separation related (184) (41) (37) (32) (24) (134) (27) (15) (11) (8) (60) (9) (9) $ (5) EBITDA (non-GAAP) $ 2,493 $ (15,705) $ 288 $ 267 $ 489 $ (14,661) $ 456 $ 472 $ 640 $ 847 $ 2,415 $ 555 $ 250 $ 523 Table 4. Reconciliation of Operating Income (Loss) by Segment (GAAP) to EBITDA (non-GAAP) (in millions) Exhibit 99.1 Certain columns and rows in our tables may not sum up due to the use of rounded numbers.
4 Copyright 2022 Baker Hughes Company. All rights reserved. Financial Supplement - Baker Hughes Holdings LLC (unaudited) Operating Income (loss) by Segment (GAAP) FY 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 Oilfield Services & Equipment $ 972 $ 198 $ 31 $ 112 $ 165 $ 506 $ 147 $ 199 $ 204 $ 280 $ 830 $ 213 $ 249 $ 324 Industrial & Energy Technology 1,062 163 190 237 408 998 231 245 304 397 1,177 241 236 282 Segment operating income 2,035 361 221 349 573 1,504 379 444 508 676 2,006 453 485 606 Corporate (433) (122) (117) (115) (111) (464) (109) (111) (105) (106) (429) (105) (108) (103) Inventory impairment — (160) (16) (42) (27) (246) — — — — — — (31) — Goodwill impairment — (14,717) — — — (14,717) — — — — — — — — Restructuring, impairment and other (342) (1,325) (103) (209) (229) (1,866) (80) (125) (14) 11 (209) (61) (362) (230) Separation related (184) (41) (37) (32) (24) (134) (27) (15) (11) (8) (60) (9) (9) (5) Operating income (loss) $ 1,074 $ (16,003) $ (52) $ (49) $ 182 $ (15,922) $ 164 $ 194 $ 378 $ 574 $ 1,310 $ 279 $ (25) $ 269 Add: Depreciation & Amortization Oilfield Services & Equipment $ 1,160 $ 294 $ 282 $ 252 $ 244 $ 1,072 $ 233 $ 221 $ 205 $ 215 $ 874 $ 222 $ 221 $ 204 Industrial & Energy Technology 219 53 51 57 55 216 52 53 52 52 208 51 49 45 Segment depreciation and amortization 1,379 347 333 309 300 1,288 285 273 257 267 1,082 272 270 249 Corporate 39 8 7 6 7 29 7 5 5 6 23 4 5 5 Total depreciation and amortization $ 1,418 $ 355 $ 340 $ 315 $ 307 $ 1,317 $ 292 $ 278 $ 262 $ 273 $ 1,105 $ 277 $ 275 $ 254 EBITDA by Segment (non-GAAP) Oilfield Services & Equipment $ 2,132 $ 492 $ 313 $ 364 $ 409 $ 1,578 $ 380 $ 420 $ 409 $ 495 $ 1,704 $ 434 $ 470 $ 528 Industrial & Energy Technology 1,281 216 241 293 464 1,214 283 297 356 449 1,385 291 285 327 Segment EBITDA (non-GAAP) 3,413 708 554 657 873 2,792 664 717 765 944 3,088 725 755 855 Corporate (394) (114) (110) (109) (104) (435) (102) (106) (100) (100) (407) (101) (103) (98) Inventory impairment — (160) (16) (42) (27) (246) — — — — — — (31) — Goodwill impairment — (14,717) — — — (14,717) — — — — — — — — Restructuring, impairment and other (342) (1,325) (103) (209) (229) (1,866) (80) (125) (14) 11 (209) (61) (362) (230) Separation related (184) (41) (37) (32) (24) (134) (27) (15) (11) (8) (60) (9) (9) $ (5) EBITDA (non-GAAP) $ 2,493 $ (15,649) $ 288 $ 267 $ 489 $ (14,605) $ 456 $ 472 $ 640 $ 847 $ 2,415 $ 555 $ 250 $ 523 Table 5. Reconciliation of Operating Income (Loss) by Segment (GAAP) to EBITDA (non-GAAP) (in millions) Exhibit 99.1 Certain columns and rows in our tables may not sum up due to the use of rounded numbers. The Financial Supplement for BHH LLC is the same for all periods presented as compared to Baker Hughes, except for 1Q 2020 and FY 2020.