Baker Hughes 2004 Annual Report Download - page 12

Download and view the complete annual report

Please find page 12 of the 2004 Baker Hughes annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 128

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128

advantages฀of฀metal-sealed฀bearings฀to฀
slim-hole฀wells.฀The฀unique฀HedgeHogTM฀
impregnated฀diamond฀bit฀line฀continued฀to฀
improve฀drilling฀performance฀in฀Algeria฀and฀
other฀areas฀with฀hard฀and฀abrasive฀rock.฀
The฀division฀also฀had฀its฀initial฀successful฀
runs฀with฀the฀EZ-CaseTM฀bit฀for฀drilling฀฀
well฀liners฀into฀place฀in฀problem฀forma-
tions.฀Hughes฀Christensen’s฀performance฀
was฀strong฀in฀all฀geographic฀areas,฀with฀
exceptional฀growth฀in฀the฀Middle฀East.
Baker฀Oil฀Tools’฀revenues฀increased฀
16.4%฀in฀2004.฀During฀the฀year,฀the฀divi-
sion฀successfully฀installed฀the฀first฀inte-
grated฀multilateral,฀intelligent฀well฀and฀
sand฀control฀completion฀system฀in฀Norway,฀
and฀it฀set฀horizontal฀gravel฀pack฀records฀฀
in฀a฀deepwater฀well฀in฀the฀U.K.฀In฀Egypt,฀
Baker฀Oil฀Tools฀provided฀high฀pressure/high฀
temperature฀completion฀systems฀in฀a฀deep-
water฀field,฀and฀ran฀its฀first฀expandable฀
liner฀extension฀to฀isolate฀a฀gas฀zone.฀The฀
division฀also฀introduced฀new฀techniques฀to฀
sidetrack฀wells฀to฀renew฀their฀productivity.฀
These฀innovations฀included฀through-tubing฀
casing฀exit฀systems฀for฀exotic฀alloys฀and฀
underbalanced฀operations,฀and฀the฀Path-
MakerTM฀mill฀to฀drill฀through฀casing฀and฀
into฀the฀formation,฀which฀Baker฀Oil฀Tools฀
co-developed฀with฀Hughes฀Christensen.
Baker฀Altas฀had฀an฀exceptional฀year฀in฀
2004,฀building฀upon฀prior฀success฀by฀intro-
ducing฀new฀technologies฀and฀expanding฀
into฀new฀markets.฀The฀new฀Magnetic฀฀
Resonance฀ExplorerSM฀service฀uses฀next-
generation฀NMR฀technology฀to฀evaluate฀
rock฀formations฀and฀the฀fluids฀they฀con-
tain.฀The฀EARTH฀ImagerSM฀service฀acquires฀
high฀resolution฀borehole฀images฀in฀oil-
based฀mud฀to฀help฀clients฀understand฀the฀
stratigraphic฀layers฀along฀the฀well.฀The฀new฀
Predator฀XPSM฀perforating฀system฀improves฀
productivity฀by฀penetrating฀deeply฀into฀the฀
formation.฀And฀the฀new฀WellLinkSM฀
Livewire฀service฀uses฀the฀Internet฀to฀deliver฀
wellbore฀data฀to฀clients฀so฀they฀can฀make฀
better฀decisions,฀faster.฀Baker฀Atlas฀also฀
began฀new฀service฀operations฀in฀Equatorial฀
Guinea,฀India,฀Kazakhstan฀and฀Russia฀dur-
ing฀the฀year.
Corporate฀Culture฀
I฀have฀been฀impressed฀with฀the฀฀
company’s฀commitment฀to฀building฀a฀
High฀Performance฀Culture,฀particularly฀its฀
dedication฀to฀integrity฀and฀compliance.฀
Baker฀Hughes฀remains฀committed฀to฀the฀
highest฀ethical฀standards฀in฀all฀that฀we฀do,฀
and฀we฀will฀continue฀to฀abide฀by฀applica-
ble฀laws฀and฀regulations฀in฀all฀jurisdictions฀
in฀which฀we฀do฀business.
Over฀the฀past฀year,฀we฀have฀devoted฀
significant฀resources฀to฀review฀our฀business฀
practices฀and฀procedures฀as฀part฀of฀our฀
certification฀under฀the฀Sarbanes-Oxley฀Act฀
of฀2002.฀We฀believe฀that฀transparency฀is฀
an฀essential฀element฀in฀any฀successful฀cor-
porate฀governance฀program,฀and฀we฀have฀
made฀it฀integral฀to฀ours.
Financial฀Flexibility
During฀the฀year,฀Baker฀Hughes฀contin-
ued฀to฀strengthen฀its฀balance฀sheet.฀We฀
retired฀$350฀million฀in฀debt฀that฀matured฀
in฀the฀second฀quarter.฀As฀a฀result,฀the฀com-
pany฀has฀reduced฀debt฀by฀over฀$1.7฀billion฀
from฀peak฀levels฀in฀2000.฀Our฀total฀debt-
to-capitalization฀ratio฀now฀stands฀at฀23%,฀
providing฀the฀company฀significant฀financial฀
flexibility฀to฀pursue฀its฀strategic฀initiatives฀฀
and฀to฀leverage฀opportunities฀that฀may฀฀
arise฀in฀our฀industry.
We฀continue฀to฀exercise฀discipline฀in฀the฀
evaluation฀of฀our฀capital฀projects.฀Significant฀฀
8฀฀฀฀Baker฀Hughes฀Incorporated