Baker Hughes: Management's Discussion and Analysis of Financial Condition and Results of Operations (Form 10-K) - Investing Activities

Source Press Release
Company General Electric CompanyADNOCBaker Hughes CompanyFirst Reserve Corporation 
Tags Asset Deals, Corporate Deals, Deals, Oil Services
Date February 19, 2019

Investing Activities

Cash flows from investing activities used cash of $578 million, $4,123 million and $472 million for the years ended December 31, 2018, 2017 and 2016, respectively.

Our principal recurring investing activity is the funding of capital expenditures to ensure that we have the appropriate levels and types of machinery and equipment in place to generate revenue from operations. Expenditures for capital assets totaled $995 million, $665 million and $424 million for 2018, 2017 and 2016, respectively, partially offset by cash flows from the sale of property, plant and equipment of $458 million, $172 million and $20 million in 2018, 2017 and 2016, respectively. Proceeds from the disposal of assets related primarily to equipment that was lost-in-hole, and to property, machinery and equipment no longer used in operations that was sold throughout the period. In 2018, the Company received $453 million from the sale of businesses primarily driven by the sale of its Natural Gas Solutions (NGS) business for $375 million. Also in 2018, the Company and ADNOC signed a strategic partnership agreement under which the Company acquired a five percent stake in  ADNOC Drilling for a cash consideration of $500 million.

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