GE and Baker Hughes have entered into an agreement to combine GE’s oil and gas business with Baker Hughes to create the second largest player in the oilfield equipment and services industry.
Baker Hughes entered into a new five-year $2.5 billion revolving credit facility that expires in July 2021. JP Morgan Chase served as administrative agent for the transaction.
Halliburton and Baker Hughes terminated their merger agreement. In connection with the termination, Halliburton will pay Baker Hughes a fee of $3.5 billion.
The Department of Justice filed a civil antitrust lawsuit seeking to block Halliburton’s proposed acquisition of Baker Hughes, alleging the transaction threatens to eliminate competition, raise prices and reduce innovation in the oilfield services industry.
Baker Hughes reported the average U.S. rig count for February 2016 was 532, down 816 or 61% from the 1,348 counted in February 2015. The worldwide rig count for February was down 41% year/year.
Baker Hughes said the average U.S. rig count for January 2016 of 654 was down 1,029 or 61% compared to 1,683 average rig count in January 2015.
Baker Hughes announced the international rig count for December was 1,095, down 16.6% from the 1,313 counted a year earlier. The average U.S. rig count took a bigger hit, falling 62% from 1,882 in December 2014 to 714 in December 2015.