Baker Hughes 2014 Annual Report Download - page 9

public with the information it wants
and deserves. As part of our
ongoing commitment to operating
in a transparent and responsible
way, we became the first company
in the industry to disclose
the composition of our hydraulic
fracturing fluids.
Environmental stewardship and
social responsibility are a part of
our culture, and we are committed
to the ongoing expansion of envi-
ronmental and sustainable practices
across our operations. This
dedication earned Baker Hughes the
highest rating of any public company
in the energy sector in Newsweek’s
2014 Green Rankings.
HALLIBURTONAGREEMENT
Late in 2014, we announced a
merger agreement between Baker
Hughes and Halliburton. The pending
merger, when closed, will bring our
stockholders a meaningful premium
to the trading price of Baker Hughes
common stock on November 17, 2014
(the day the merger was announced)
in the short term; and the long-term
opportunity to own a valuable share
in a larger, highly capable global
combined company.
By combining two great companies
that have delivered cutting-edge
solutions to customers in the
worldwide oil and gas industry for
more than a century, we will
create a new world of opportunities
to advance the development of
technologies for our customers.
We envision a combined company
capable of achieving opportunities
that neither company would
have realized as effectively – or
as quickly – on its own, all while
creating exciting new opportunities
for employees.
LOOKINGAHEAD
Two thousand fourteen was also
pivotal from a macro perspective.
Late in the year, commodity prices
began to fall, and we could see
the early rumblings of an industry
downturn ahead.
We’ve been through rapidly evolving
market conditions before, and
we know that the key to success
is to act swiftly and decisively.
We plan to leverage the talents and
fresh perspectives of Kimberly Ross,
who joined the executive team as
chief financial officer, and Andrew
Esparza, our new chief human
resources officer, as we navigate
the coming year. We also welcome
Greg Brenneman and Bill Easter,
both of whom joined the board of
directors in 2014.
Although 2015 is going to be a
challenging year for our industry,
Baker Hughes is well-positioned
both financially and strategically.
Our plan is to remain so by
proactively adapting to changing
market conditions and by rapidly
aligning our cost structure
with near-term activity levels.
We have already taken several
deliberate steps to ensure this
alignment, making the difficult
decisions to close several facilities
across the world and to reduce our
global workforce by approximately
7,000. We will continue to monitor
market conditions closely and adjust
quickly, never losing our focus
on delivering safe, reliable service.
Longer term, the outlook for our
industry is strong. The world’s
demand for energy will continue to
climb and the methods of supplying
it to the world will continue
to grow in complexity, requiring
greater service intensity and more
advanced technology.
Baker Hughes remains dedicated
to relentlessly pursuing positive
outcomes for the coming year
and beyond.
Martin Craighead
Chairman and Chief Executive Officer
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TOTALREVENUE INMILLIONS
BYQUARTER
TOTALADJUSTEDNET
INCOMEPERSHARE
DILUTED
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