ENP Newswire -
Release date- 18072014 -
Adjusted net income for the second quarter of 2014 excludes
'This quarter we delivered record revenue and a 15% sequential increase in adjusted profit from operations,' said
'In North America, newly introduced well construction and production technologies, such as the Kymera hybrid drill bit and Production Wave production solution, are seeing unprecedented demand resulting in record revenue in our drilling services, drill bits, upstream chemicals, and artificial lift product lines. The rising sales of these products, along with an increase in onshore and offshore activity in
'Internationally, we are leveraging new logging-while-drilling and wireline technologies to gain share within several critical offshore markets, including the
'Around the world, the fundamentals of our business continue to strengthen. We anticipate increased activity for the remainder of the year in the form of higher international rig counts, and increased North American well counts. As a result, we project strong earnings growth as we fulfill the industry's growing need for innovative new technologies.'
Share repurchases amounted to
Total dividend payments were
The effective tax rate on net income for the second quarter of 2014 increased to 37.2%, primarily attributed to the geographic mix of earnings.
Capital expenditures were
Adjusted EBITDA (a non-GAAP measure) in the second quarter of 2014 was
Innovations to Earnings
The following section provides operational and technical highlights outlining the successes aligned to our strategy.
Since its introduction to the market, the FASTrak LWD service has been deployed in more than 50 critical deepwater projects. During the second quarter, the FASTrak service was used in one project in
The AutoTrak Curve rotary steerable system drills more than one mile on a well in a single day. A service value combination of the AutoTrak Curve system with the NEXT-DRILL drilling fluid system and HCC AT505 drill bit technology safely drilled more than 5,870 ft (1789 m) in one day while maintaining 100% reservoir contact. During the quarter, the AutoTrak Curve system also surpassed 12.5 million cumulative feet drilled in
Optimizing Well Production
This trajectory surpasses the range of coil tubing. The SHADOW plug technology enables our customers to construct wellbores and access reserves that would not have been possible with conventional completions technology. Based on growing sales across every
Rapid adoption of the Production Wave production solution is exceeding expectations and continues to drive
Increasing Ultimate Recovery
Numerous downhole sensors were deployed throughout the tubing and the annulus to allow real-time monitoring of production performance. Active flow control devices installed in each zone are actuated remotely to restrict production in high-water cut zones, increasing production from hydrocarbon rich zones and enabling greater recovery over the life of the well.
The entire network of flow control devices is deployed and operated using one single electric control line, as opposed to traditional systems requiring multiple hydraulic control lines. This significantly simplifies the installation process, improves system reliability, and enables highly accurate remote control, not possible before.
Leading in Sustainability
The fluids are compatible with total dissolved solids, to create effective fracturing fluids and reduce the consumption of potable water without sacrificing performance. Recent deployments of the BrineCare system in
This news release (and oral statements made regarding the subjects of this release, including on the conference call announced herein) contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, (each a 'forward-looking statement').
The words 'anticipate,' 'believe,' 'ensure,' 'expect,' 'if,' 'intend,' 'estimate,' 'project,' 'foresee,' 'forecasts,' 'predict,' 'outlook,' 'aim,' 'will,' 'could,' 'should,' 'potential,' 'would,' 'may,' 'probable,' 'likely,' and similar expressions, and the negative thereof, are intended to identify forward-looking statements. There are many risks and uncertainties that could cause actual results to differ materially from our forward-looking statements.
These forward-looking statements are also affected by the risk factors described in the Company's Annual Report on Form 10-K for the year ended
The documents are available through the Company's website at: www.bakerhughes.com/investor or through the
Our expectations regarding our business outlook and business plans; the business plans of our customers; oil and natural gas market conditions; cost and availability of resources; economic, legal and regulatory conditions and other matters are only our forecasts regarding these matters.
These forward looking statements, including forecasts, may be substantially different from actual results, which are affected by many risks including the following risk factors and the timing of any of these risk factors:
Economic and political conditions - the impact of worldwide economic conditions; the effect that declines in credit availability may have on worldwide economic growth and demand for hydrocarbons; the ability of our customers to finance their exploration and development plans; foreign currency exchange fluctuations and changes in the capital markets in locations where we operate and the impact of government disruptions such as a U.S. government shutdown.
In addition, market conditions, such as the trading prices for our stock, as well as the terms of any stock purchase plans may impact stock repurchases. At our discretion, we may engage in or discontinue stock repurchases at any time.
Oil and gas market conditions - the level of petroleum industry exploration, development and production expenditures; the price of, volatility in pricing of, and the demand for crude oil and natural gas; drilling activity; drilling permits for and regulation of the shelf and the deepwater drilling; excess productive capacity; crude and product inventories; LNG supply and demand; seasonal and other adverse weather conditions that affect the demand for energy; severe weather conditions, such as tornadoes and hurricanes, that affect exploration and production activities;
Terrorism and geopolitical risks - war, military action, terrorist activities or extended periods of international conflict, particularly involving any petroleum-producing or consuming regions; labor disruptions, civil unrest or security conditions where we operate; expropriation of assets by governmental action; cybersecurity risks and cyber incidents or attacks.
Price, market share, contract terms, and customer payments - our ability to obtain market prices for our products and services; the ability of our competitors to capture market share; our ability to retain or increase our market share; changes in our strategic direction; the effect of industry capacity relative to demand for the markets in which we participate; our ability to negotiate acceptable terms and conditions with our customers, especially national oil companies, to successfully execute these contracts, and receive payment in accordance with the terms of our contracts with our customers; our ability to manage warranty claims and improve performance and quality; our ability to effectively manage our commercial agents.
Costs and availability of resources - our ability to manage the costs, availability, distribution and delivery of sufficient raw materials and components (especially steel alloys, chromium, copper, carbide, lead, nickel, titanium, beryllium, barite, synthetic and natural diamonds, sand, gel, chemicals, and electronic components); our ability to manage energy-related costs; our ability to manage compliance-related costs; our ability to recruit, train and retain the skilled and diverse workforce necessary to meet our business needs and manage the associated costs; the effect of manufacturing and subcontracting performance and capacity; the availability of essential electronic components used in our products; the effect of competition, particularly our ability to introduce new technology on a forecasted schedule and at forecasted costs; potential impairment of long-lived assets; unanticipated changes in the levels of our capital expenditures; the need to replace any unanticipated losses in capital assets; labor-related actions, including strikes, slowdowns and facility occupations; our ability to maintain information security.
Litigation and changes in laws or regulatory conditions - the potential for unexpected litigation or proceedings and our ability to obtain adequate insurance on commercially reasonable terms; the legislative, regulatory and business environment in the U.S. and other countries in which we operate; outcome of government and legal proceedings, as well as costs arising from compliance and ongoing or additional investigations in any of the countries where the Company does business; new laws, regulations and policies that could have a significant impact on the future operations and conduct of all businesses; laws, regulations or restrictions on hydraulic fracturing; any restrictions on new or ongoing offshore drilling or permit and operational delays or program reductions as a result of the regulations in the
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