A Brief History of Baker Hughes Company (BKR)

The Baker Hughes Company, commonly referred to as Baker Hughes, is an international industrial service company and one of the world's largest oil field services companies. Its history is marked by significant milestones, mergers, and acquisitions that have shaped its evolution over the years.

The origins of Baker Hughes can be traced back to 1907 when Reuben C. Baker founded Baker International. Reuben Baker created a casing shoe that revolutionized drilling operations, setting the stage for the company's growth. Meanwhile, in 1909, Howard Hughes Sr. established the Hughes Tool Company, known for its innovative drilling bits.

In 1987, Baker International and Hughes Tool Company merged to form Baker Hughes Incorporated. This merger combined Baker's completion technologies with Hughes' drilling products, creating a comprehensive suite of services and products for the oil and gas industry.

Throughout the 1990s and early 2000s, Baker Hughes expanded its service offerings and technological capabilities through a series of strategic acquisitions and innovations. Noteworthy developments include:

• Acquisition of Western Atlas in 1998, enhancing its wireline and seismic capabilities.
• Introduction of the AutoTrak rotary steerable drilling system, which revolutionized directional drilling.
• Expansion into the global market, establishing a significant presence in regions such as the Middle East and Africa.

In 2017, Baker Hughes underwent a significant transformation by merging with GE Oil & Gas, forming "Baker Hughes, a GE company" (BHGE). This partnership aimed to combine GE's industrial expertise with Baker Hughes' oilfield services. However, by 2019, GE reduced its stake, leading to the rebranding of the company as Baker Hughes Company (BKR).

Today, Baker Hughes continues to innovate in areas such as energy transition and digital solutions, maintaining its position as a leader in the oilfield services sector while diversifying into new markets and technologies.

Who Owns Baker Hughes Company (BKR)

Baker Hughes Company (BKR) is a leading global industrial service company and one of the world's largest oil field services companies. The ownership structure of Baker Hughes is diverse and includes a mix of institutional investors, mutual funds, and individual shareholders.

Here are some of the key stakeholders and owners of Baker Hughes:

• General Electric (GE): General Electric had a significant ownership stake in Baker Hughes through its subsidiary, GE Oil & Gas. However, GE has been gradually reducing its ownership in recent years. As of the latest available data, GE no longer holds a controlling interest in Baker Hughes but retains a minority stake.
• Institutional Investors: A substantial portion of Baker Hughes' shares is held by institutional investors. These include large asset management firms, pension funds, and endowments. Prominent institutional investors in Baker Hughes include:
  • Vanguard Group: Vanguard is one of the largest asset managers in the world and holds a significant number of shares in Baker Hughes.
  • BlackRock: Another major institutional shareholder, BlackRock, owns a substantial stake in the company through various funds and investment vehicles.
  • State Street Corporation: State Street is also a notable institutional investor with a considerable ownership stake in Baker Hughes.
• Mutual Funds: Various mutual funds have invested in Baker Hughes, providing individual investors with indirect ownership stakes in the company. These mutual funds include those managed by firms like Vanguard, Fidelity, and T. Rowe Price.
• Individual Shareholders: In addition to institutional and mutual fund ownership, individual investors also own shares of Baker Hughes. These shareholders include both retail investors and company insiders, such as executives and board members.

The ownership structure of Baker Hughes reflects a broad base of institutional and individual stakeholders, which is typical for many publicly traded companies. The company's stock is listed on the New York Stock Exchange under the ticker symbol BKR.

Baker Hughes Company (BKR) Mission Statement

Baker Hughes Company (BKR) is a global leader in the oilfield services industry, providing integrated oilfield products, services, and digital solutions. The mission statement of Baker Hughes centers around a commitment to fostering innovation, efficiency, and sustainability within the energy sector. Key elements of their mission statement include:

• Innovation: At the core of Baker Hughes's mission is a relentless focus on driving forward technological advancements. They aim to stay at the forefront of industry innovation through continuous research and development, ensuring that their solutions remain cutting-edge and relevant.
• Efficiency: Baker Hughes strives to enhance the operational efficiency of their clients. By delivering products and services that optimize performance and reduce costs, they help their partners achieve greater productivity and profitability.
• Sustainability: A strong commitment to sustainability is embedded in their mission. Baker Hughes is dedicated to reducing environmental impact through responsible and ethical practices, promoting the use of cleaner energy sources, and supporting global efforts to combat climate change.
• Safety and Reliability: Ensuring the safety and reliability of their operations and those of their clients is paramount. Baker Hughes is committed to maintaining the highest standards of safety in all their activities.
• Customer Focus: The company places a high priority on building strong, lasting relationships with their clients. By understanding and addressing the unique needs of each customer, Baker Hughes aims to provide tailored solutions that deliver exceptional value.

How Baker Hughes Company (BKR) Works

Baker Hughes Company (BKR) operates as a leading energy technology company, providing solutions to the energy and industrial sectors. The company leverages a rich history of innovation to deliver products and services that help optimize energy production and improve operational efficiencies.

The company's operations are divided into several segments, each geared towards addressing specific needs within the energy and industrial landscape.

• Oilfield Services (OFS): This segment provides products and services for drilling, evaluation, completion, and production. It includes drilling tools, wellbore construction, and completion solutions, all designed to ensure efficient extraction of hydrocarbons.
• Oilfield Equipment (OFE): OFE offers a full suite of solutions for the Subsea and Surface Drilling sectors. This segment includes subsea production systems, flexible pipe systems, and pressure control equipment. OFE is critical for deepwater exploration and production.
• Turbomachinery & Process Solutions (TPS): This division provides equipment and related services for mechanical-drive, compression, and power-generation applications across various industries, including oil & gas and renewable energy. Its products include gas turbines, compressors, and digital solutions that enhance productivity and reduce downtime.
• Digital Solutions (DS): Focused on leveraging data and analytics, this segment offers a range of digital tools and software to optimize operations. DS provides asset performance management, machine diagnostics, and advanced analytics to drive efficiency and reliability.
• Industrial & Energy Technology (IET): This segment combines advanced technology across the industrial and energy sectors to deliver innovative solutions. IET focuses on emission reduction technologies, electrification, and next-generation energy solutions.

Baker Hughes also emphasizes its commitment to sustainability and carbon reduction. The company is actively involved in developing technologies that promote cleaner energy production, such as carbon capture, utilization, and storage (CCUS) and hydrogen solutions. By integrating advanced technologies and sustainability practices, Baker Hughes aims to drive the energy transition and help its customers reduce their environmental footprint.

Global Reach: Baker Hughes operates in over 120 countries, providing a broad geographic footprint that allows it to serve diverse markets and customers effectively. The company's global reach ensures that it can deliver solutions and support wherever needed, helping industries worldwide achieve their energy and operational goals.

How Baker Hughes Company (BKR) Makes Money

Baker Hughes Company (BKR) is a prominent player in the energy sector, providing a wide range of products and services that cater to the oil and gas industry. The company's revenue streams are diversified across several core business segments.

• Oilfield Services: This segment is one of the primary revenue drivers for Baker Hughes. It includes a variety of services such as drilling, formation evaluation, completion, and production services. The company leverages advanced technology and expertise to enhance operational efficiency and reduce costs for its clients.

• Oilfield Equipment: Baker Hughes designs, manufactures, and supplies a wide range of equipment used in both onshore and offshore oil and gas production. This segment includes subsea production systems, pressure control equipment, and wellbore intervention tools.

• Turbomachinery & Process Solutions: This segment offers equipment and services for mechanical-drive, compression, and power-generation applications across the oil and gas industry. The portfolio includes gas turbines, compressors, and pumps, which are critical components for energy infrastructure.

• Digital Solutions: In an era of digital transformation, Baker Hughes provides software and analytics solutions that help clients optimize their operations and improve asset performance. This includes condition monitoring, industrial automation, and real-time data analytics services.

• Industrial & Energy Technology: This segment focuses on advanced technology solutions for various industrial applications, including renewables. It encompasses advanced manufacturing techniques, materials science, and digital technologies to support energy transition and sustainability initiatives.

Baker Hughes generates revenue by leveraging its comprehensive portfolio to address the needs of the oil and gas sector, from exploration and extraction to refining and distribution. The company's focus on innovation and technology integration helps maintain its competitive edge in the market.