Baker Hughes declared that the Baker Hughes Board of Directors declared an increased quarterly cash dividend of $0.19 per share of Class A common stock payable on November 18, 2022, to holders of record on November 7, 2022. The dividend increase represents a 5.5% growth rate, or $0.01, above the payout from the prior quarter.
Additionally, Baker Hughes reported today that its Board of Directors increased its previously announced $4 billion share repurchase authorization by $2 billion by allowing Baker Hughes Holdings LLC to buy up to $2 billion more in common units. The company will repurchase its Class A shares with the money received from the sale of its BHH LLC common units. As of September 30, 2022, Baker Hughes has repurchased Class A shares for about $1.2 billion under the current share repurchase authority.
“Our dividend increase, and share repurchase authorization upsizing is a further step in our commitment to return cash to shareholders and complement our growth strategy. 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 see in our portfolio as well as our ability to transform our operations to enhance profitability. We are proud our strong balance sheet continues to allow us to deliver our shareholder goals while we invest for growth in the energy, new energy and industrial sectors.”
The cash generated from operations is expected to be used by Baker Hughes to pay for the repurchase program. The company does not guarantee the precise quantity of shares that will be repurchased. The company anticipates occasionally repurchasing shares, subject to its capital plan, market conditions, and other variables, such as legal and regulatory limitations and required clearances. The repurchase program has no set end date and may be suspended or terminated whenever it chooses.