baker hughes inc (BHI) Key Developments
Baker Hughes Incorporated Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2014; Provides Earnings Guidance for Third Quarter of 2014 and Effective Tax Rate Guidance for 2014 and 2015
Jul 17 14
Baker Hughes Incorporated reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2014. For the quarter, revenue was $5,935 million against $5,487 million a year ago. Operating income was $631 million against $436 million a year ago. Income before income taxes was $572 million against $376 million a year ago. Net income was $359 million against $245 million a year ago. Net income attributable to the company was $353 million or $0.80 per diluted share against $240 million or $0.54 per basic and diluted share a year ago. Capital expenditures were $424 million against $551 million a year ago. Adjusted EBITDA was $1,159 million against $860 million a year ago. Adjusted net income (non-GAAP) was $404 million or $0.92 per share against $240 million or $0.54 per share a year ago.
For the six months, revenue was $11,666 million against $10,717 million a year ago. Operating income was $1,183 million against $891 million a year ago. Income before income taxes was $1,067 million against $776 million a year ago. Net income was $695 million against $513 million a year ago. Net income attributable to the company was $681 million or $1.55 per diluted share against $507 million or $1.14 per basic and diluted share a year ago. Capital expenditures were $863 million against $1,041 million a year ago. Net cash flows provided by operating activities were $696 million against $1,078 million a year ago. Expenditures for capital assets were $863 million against $1,041 million a year ago. Adjusted EBITDA was $2,206 million against $1,753 million a year ago.
The company predicts continued revenue growth in all of the operating segments, including strong growth in North America. As a result, the company is forecasting profit from operations to increase in the third quarter by about 15%. With respect to nonoperational items for the third quarter, corporate and interest expenses are expected to be similar to the second quarter.
The 2014 effective tax rate is now expected to be about 35% for the second half of the year.
In 2015, the company expects tax rate to return to a range of 32% to 33%. And finally, capital expenditures for the year have been revised down slightly to be about $1.9 billion.
Baker Hughes Incorporated Announces Production Results for the Second Quarter of 2014
Jul 11 14
Baker Hughes Incorporated announced that the U.S. onshore well count for the second quarter 2014 was 9,394 wells, up 428 wells or 5% compared to the first quarter 2014. Compared to the second quarter 2013, the well count was up 383 wells or 4%. Compared to the first quarter 2014, the well count increased most notably in the Permian basin (up 265 wells or 11%), Marcellus (up 78 wells or 16%), and Granite Wash (up 31 wells or 23%) basins. This increase was slightly offset by decreases predominately in the Barnett (down 57 wells or 18%) and Cana Woodford (down 23 wells or 26%). The average US onshore rig count for the second quarter 2014 was 1,796 rigs, up 72 rigs or 4% from the first quarter 2014 and up 87 rigs or 5% from the second quarter 2013. On average, the US onshore rig fleet produced 5.23 new wells during the quarter, which represents a slight improvement in drilling efficiencies compared to the same quarter in 2013.
Baker Hughes Incorporated Approves an Amendment of the Restated Bylaws
Jun 10 14
On June 5, 2014, the Board approved an amendment of the Restated Bylaws of the Baker Hughes Incorporated, effective as of June 5, 2014, that revised Article III, Section 1, to provide that the Board shall consist of 13 directors instead of 11 directors as had previously been provided in the Bylaws.
Baker Hughes Incorporated Announces Board Appointments
Jun 10 14
Baker Hughes Incorporated announced the appointment of Greg Brenneman, chairman of CCMP Capital Advisors, LLC (CCMP Capital), and W.H. "Bill" Easter III, retired chairman, president, and chief executive officer of DCP Midstream, to its board of directors. Prior to his role as chairman, president, and CEO of DCP Midstream, Easter served in several leadership, operating, and commercial roles at ConocoPhillips, including areas related to gas and natural gas liquids as well as petroleum refining, marketing, and transportation_domestically and internationally. Before serving as chairman of CCMP Capital, Brenneman held a variety of senior-level management positions, including chairman and CEO of Quiznos and Burger King, CEO of PWC Consulting, and president of Continental Airlines. Brenneman also serves on the board of directors of Automatic Data Processing.
Baker Hughes Incorporated Declares Regular Quarterly Cash Dividend, Payable August 15, 2014
May 9 14
Baker Hughes Incorporated announced that the Board of Directors declared the regular quarterly cash dividend of $0.17 per share of common stock payable August 15, 2014, to holders of record on August 4, 2014. This represents a $0.02 or 13% increase per share over the previous quarter's dividend of $0.15 per share of common stock.