Baker Hughes Company Announces $2 Billion Share Repurchase Authorization
30 Juli 2021 - 3:10PM
Business Wire
Baker Hughes Company (NYSE: BKR) ("Baker Hughes" or the
"Company") announced today that its Board of Directors has
authorized Baker Hughes Holdings LLC (“BHH LLC”) to repurchase up
to $2 billion of its common units. The Company will use the
proceeds from the sale of its BHH LLC common units to repurchase
its Class A shares.
“We are generating strong cash flow and are confident in our
short-term operational outlook and long-term strategic positioning.
Today’s announcement represents further confirmation on our
optimistic view of the future for the Company. We believe this
announced buyback is an attractive use of cash given the value of
our company and the highly accretive nature of this program,” said
Lorenzo Simonelli, Baker Hughes chairman and CEO.
“At the current share price, this repurchase represents over
nine percent of the Company's outstanding shares. We are pleased
that Baker Hughes’ strong balance sheet and robust cash flow
profile, which enables us to not only return value to shareholders
through our regular quarterly dividend and share repurchases, but
also enables us to invest for growth and position for new frontiers
to lead the energy transition," added Simonelli.
Baker Hughes and BHH LLC are also authorized to enter into an
agreement with GE whereby BHH LLC will repurchase its common units
from GE on a pro rata basis and on the same terms as it repurchases
common units from Baker Hughes. The proceeds distributed to Baker
Hughes will be used to repurchase Class A shares on the open market
or in privately negotiated transactions. The repurchases are not
expected to materially change Baker Hughes and GE’s relative
economic interests in BHH LLC or Baker Hughes’ Class A and Class B
stockholders’ relative voting interest.
Baker Hughes expects to fund the repurchase program from cash
generated from operations. The exact number of shares to be
repurchased by the Company is not guaranteed. The Company expects
to make share repurchases from time to time subject to the
Company’s capital plan, market conditions, and other factors,
including legal and regulatory restrictions and required approvals.
The repurchase program may be suspended or discontinued at any time
and does not have a specified expiration date.
About Baker Hughes:
Baker Hughes (NYSE: BKR) is an energy technology company that
provides solutions to energy and industrial customers worldwide.
Built on a century of experience and with operations in over 120
countries, our innovative technologies and services are taking
energy forward – making it safer, cleaner and more efficient for
people and the planet. Visit us at bakerhughes.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20210730005359/en/
Investor Relations Jud Bailey +1 281-809-9088
investor.relations@bakerhughes.com
Media Relations Thomas Millas +1 713-879-2862
thomas.millas@bakerhughes.com
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