December 31, (In millions) 2025 2025 2024 Cash flows from operating activities: Net income $ 887 $ 2,624 $ 3,008 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation and amortization 327 1,188 1,136 Benefit for deferred income taxes (658 ) (702 ) (671 ) Change in fair value of equity securities 74 103 (367 ) Stock-based compensation cost 50 203 202 Working capital 747 713 7 Other operating items, net 235 (319 ) 17 Net cash flows provided by operating activities 1,662 3,810 3,332 Cash flows from investing activities: Expenditures for capital assets (377 ) (1,273 ) (1,278 ) Proceeds from disposal of assets 56 195 203 Proceeds from sale of equity securities — 1 92 Net cash paid for acquisitions (30 ) (830 ) — Other investing items, net (42 ) (137 ) (33 ) Net cash flows used in investing activities (393 ) (2,044 ) (1,016 ) Cash flows from financing activities: Repayment of long-term debt — — (143 ) Dividends paid (227 ) (910 ) (836 ) Repurchase of Class A common stock — (384 ) (484 ) Other financing items, net (31 ) (188 ) (64 ) Net cash flows used in financing activities (258 ) (1,482 ) (1,527 ) Effect of currency exchange rate changes on cash and cash equivalents 11 67 (71 ) Increase in cash and cash equivalents 1,022 351 718 Cash and cash equivalents, beginning of period 2,693 3,364 2,646 Cash and cash equivalents, end of period $ 3,715 $ 3,715 $ 3,364 Supplemental cash flows disclosures: Income taxes paid, net of refunds $ 402 $ 1,156 $ 1,040 Interest paid $ 97 $ 294 $ 298 Economic and political conditions - the impact of worldwide economic conditions; the impact of inflation and interest rates; the impact of tariffs, including the potential for significant increases in tariffs and changes in trade policy that could affect our supply chain costs, pricing, and customer demand; the effect that declines in credit availability may have on worldwide economic growth and demand for hydrocarbons; foreign currency exchange fluctuations and changes in the capital markets in locations where we operate; and the impact of government disruptions and sanctions. Oil and gas market conditions - the level of petroleum industry exploration, development and production expenditures; the price of, volatility in pricing of, and the demand for crude oil and natural gas; drilling activity; drilling permits for and regulation of the shelf and the deepwater drilling; excess productive capacity; crude and product inventories; liquefied natural gas supply and demand; seasonal and other adverse weather conditions that affect the demand for energy; severe weather conditions, such as tornadoes and hurricanes, that affect exploration and production activities; Organization of Petroleum Exporting Countries ("OPEC") policy and the adherence by OPEC nations to their OPEC production quotas.
Author: Baker Hughes Energy Services LLC
Published at: 2026-01-25 22:00:00
Still want to read the full version? Full article
