Baker Hughes (BKR) JP Morgan Energy, Power and Renewables Conference summary

Strategic evolution and business transformation

• Merged with GE Oil & Gas in 2017, creating a diversified portfolio and expanded capabilities.

• Fully separated from GE by end of 2022, enabling a new strategic direction focused on two segments: Oilfield Services & Equipment (OFSE) and Industrial & Energy Technology (IET).

• Navigated significant external challenges, including the pandemic and exit from Russia, leading to a renewed focus on growth.

Growth opportunities and market outlook

• Robust global energy demand, especially for natural gas, underpins growth in both OFSE and IET.

• IET segment offers long-cycle, industrial-like business with strong aftermarket and service opportunities.

• Significant growth in non-LNG gas infrastructure orders, with a 50% increase expected this year.

• Equipment and services are critical for LNG, gas, hydrogen, CO2, and geothermal infrastructure.

Industrial & energy technology (IET) differentiation

• IET operates on a long-term OEM model, with service contracts extending 20-30 years, providing stable revenue and high margins.

• Installed base in LNG expected to grow 70%, supporting future service revenue.

• Service contracts provide predictability and stability, with agreements extending to 2050.