Baker Hughes increased quarterly dividend.
Baker Hughes Board of Directors declared an increased quarterly cash dividend of $.19 per share of Class A common stock payable on November 18, 2022, to holders of record on November 7, 2022. This increase reflects a 5.5% growth rate, or $.01, over the previous quarter’s dividend. And they also announced changes of chief financial office.
Also, they authorized Baker Hughes Holdings LLC to repurchase up to $2 billion of additional common units. These proceeds will be used to repurchase its Class A shares. Under the current share repurchase authorization, Baker Hughes has repurchased approximately $1.2 billion of Class A shares.
“Our dividend increase and share repurchase authorization upsizing is a step in our commitment to return cash to shareholders. We remain committed to delivering 60 to 80% of free cash flow to shareholders through the cycle and are on track to return over $1.5 billion to shareholders in 2022,” said Lorenzo Simonelli, chairman & CEO of Baker Hughes. “Our Board of Directors remains confident in the structural growth. We are proud our strong balance sheet continues to allow us to deliver our goals.”
They expected to fund the repurchase program with the cash generated from operations. The exact number of shares is not guaranteed. The Company expects to make share repurchases subject to the Company’s capital plan, market conditions, and legal and regulatory restrictions.
Nancy Buese as Chief Financial Officer.
In addition to these announcements, the Company revealed changes of chief financial office puting Nancy Buese, effective November 2, 2022. Buese brings more than 30 years of financial and leadership experience to the role, previously serving as EVP & CFO of global mining company Newmont Corporation.
“Nancy is a proven CFO and business leader, delivering impressive results throughout her career in the energy and mining sectors. She brings diversified and valued experience leading finance teams for public companies, and I am excited to welcome her to Baker Hughes,” said Lorenzo Simonelli, chairman & CEO of Baker Hughes.
Prior to her role at Newmont, Buese spent more than a decade as EVP & CFO of MarkWest Energy Partners, a leader in gathering, processing, and transportation of hydrocarbons. She began her career in public accounting, starting as an accountant for Arthur Andersen and rising to be a partner at Ernst & Young until 2003.
With Buese’s appointment, Brian Worrell, CFO of Baker Hughes, will move to a strategic advisor role.
“I want to thank Brian personally and professionally for his many years of service to the company,” said Simonelli. “Our entire team remains grateful for his leadership through many important milestones in our company’s history, including the 2017 merger with GE Oil & Gas, the COVID-19 pandemic, and our ESG progress. We wish Brian well on his future endeavors.”
It can be of your interest: Energy Capital The Magazine, October edition.