Baker Hughes Company (NASDAQ:BKR) Q3 2023 Earnings Conference Call October 26, 2023 9:30 AM ET

Company Participants

Chase Mulvehill - Vice President of Investor Relations

Lorenzo Simonelli - Chairman and Chief Executive Officer

Nancy Buese - Chief Financial Officer

Conference Call Participants

James West - Evercore ISI

Arun Jayaram - JPMorgan

Marc Bianchi - TD Cowen

Scott Gruber - Citigroup

Neil Mehta - Goldman Sachs

David Anderson - Barclays

Luke Lemoine - Piper

Operator

Good day, ladies, and gentlemen. Welcome to the Baker Hughes Third Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. As a reminder, the conference call is being recorded.

I’d now like to introduce your host for today’s conference Mr. Chase Mulvehill, Vice President of Investor Relations. Sir, you may begin.

Chase Mulvehill

Thank you Justin. Good morning everyone, and welcome to the Baker Hughes third quarter 2023 earnings conference call. Here with me are our Chairman and CEO, Lorenzo Simonelli; and our CFO, Nancy Buese. The earnings release we issued yesterday evening can be found on our website at bakerhughes.com. We will also be using a presentation with our prepared remarks during this webcast, which can also be found on our website.

As a reminder, during the course of this conference call, we will provide forward-looking statements. These statements are not guarantees of future performance and involve a number of risks and assumptions. Please review our SEC filings and website for a discussion of the factors that could cause actual results to differ materially.

Reconciliations of operating income and other GAAP to non-GAAP measures can be found in our earnings release.

With that I will turn the call over to Lorenzo.

Lorenzo Simonelli

Thank you, Chase. Good morning, everyone, and thanks for joining us. We were pleased with our third quarter results and remain optimistic on the outlook.

As you can see on Slide 4, we maintain strong orders performance in both IET and SSPS, with large awards coming from Venture Global in LNG and VAR's Energy in subsea. We also delivered strong operating results at the upper end of our EBITDA guidance range, booked almost $100 million of new energy orders, and generated $592 million of free cash flow. We continue to see positive momentum across our portfolio despite persisting global uncertainty.

Turning to the macro on Slide 5, oil prices have rebounded as the combination of resilient oil demand and production cuts have tightened the market. As a result, the oil market is likely to see inventory draws through the rest of 2023. Continued discipline from the world's largest producers, the pace of oil demand growth in the face of economic uncertainty, and geopolitical risk will be important factors to monitor as we look into 2024.