Baker Hughes Company
Baker Hughes Company provides a portfolio of technologies and services to energy and industrial value chain. Its Oilfield Services & Equipment segment designs and manufactures exploration, appraisal, development, production, rejuvenation, and decommissioning products and related services for onshore and offshore oilfield operations. This segment also provides drilling services, drill bits, and drilling and completions fluids; completions, intervention, measurements, pressure pumping, and wireline services; artificial lift systems, and oilfield and industrial chemicals; subsea projects and services, flexible pipe systems, and surface pressure control systems; and integrated well services and solutions. It serves oil and natural gas companies; the United States and international independent oil and natural gas companies; national or state-owned oil companies; engineering, procurement, and construction contractors; geothermal companies; and other oilfield service companies. The company's Industrial & Energy Technology segment offers gas technology equipment, such as drivers, driven equipment, and turnkey solutions for the mechanical and electric-drive, compression, and power-generation applications; aftermarket support and uptime gas technology services; non-destructive testing technologies, software, and services; pre-commissioning and maintenance services; flow control and safety solutions; mechanical and electromechanical gear transmission systems; Cordant, a software solution to optimize assets, processes, and energy use; Bently Nevada, a sensing and protection hardware for rack-based vibrating monitoring equipment and sensors; and climate technology solutions. It serves industrial, upstream, midstream, downstream, onshore, offshore, and small-to-large scale customers. The company was formerly known as Baker Hughes, a GE company and changed its name to Baker Hughes Company in October 2019. The company was incorporated in 2016 and is based in Houston, Texas.
What does it do?
Baker Hughes makes the tools and technology that oil and gas companies use to drill for and extract energy from the ground. Think of them as the hardware store for the energy industry — if ExxonMobil or Shell needs specialized drilling equipment, sensors, or software to find oil deep underground, Baker Hughes is one of the companies they call. They also make industrial equipment like gas turbines and compressors used in liquefied natural gas (LNG) plants, which are the facilities that turn natural gas into a form that can be shipped by sea. They operate in over 120 countries, making them one of the most global names in the energy services business.
Baker Hughes sits at the intersection of two big trends: the ongoing global demand for oil and gas, and the energy transition, since the same LNG infrastructure they support is seen as a 'bridge fuel' as the world moves away from coal. With LNG demand surging in Europe after Russia's invasion of Ukraine reshaped energy supply chains, Baker Hughes's industrial technology division has become increasingly strategic. Investors are also watching whether the company can grow its exposure to cleaner energy technologies like carbon capture and hydrogen, giving it a potential second act beyond fossil fuels.
How does it make money?
Baker Hughes earns money through two main divisions. The first, Oilfield Services and Equipment, sells and rents drilling tools, provides on-site technical services, and offers software to oil companies — this is the traditional bread-and-butter of the business. The second, Industrial and Energy Technology, sells gas turbines, compressors, and related services primarily used in LNG terminals and industrial facilities worldwide. Total revenue came in at $27.7 billion in the latest year, essentially flat from $27.8 billion the prior year, suggesting the business is stable but not yet in a high-growth phase. A meaningful chunk of revenue is recurring — through long-term service contracts — which gives the company relatively predictable cash flows.
Why do investors care?
The growth story for Baker Hughes has two engines. First, global LNG investment is booming as countries in Europe and Asia seek alternatives to Russian gas and want energy security, and Baker Hughes is a key supplier of the compression and turbine equipment that makes LNG terminals work. Second, international oil and gas drilling activity is picking up outside North America, where Baker Hughes has strong market share, meaning more demand for their core oilfield tools and services. For the thesis to work, LNG project orders need to keep flowing, oil prices need to stay high enough that energy companies keep spending on new wells, and Baker Hughes needs to successfully grow its new energy offerings — carbon capture, hydrogen — before the long-term energy transition erodes its core market.
Deep Dive
MemberA full investor briefing on Baker Hughes Company — history, leadership, risks, and outlook.