Baker Hughes (BKR) risk factors, FY2024 10-K

OPERATIONAL RISKS

1. 01We operate in a highly competitive environment, which may adversely affect our ability to succeed. Our investments in new technologies, equipment, and facilities may not provide competitive returns
2. 02Baker Hughes Company 2024 Form 10-K | 14
3. 03There is increased focus by governments and our customers, investors and other stakeholders on climate change, sustainability, and energy transition matters. Transitioning to a lower-carbon economy will likely require extensive policy, legal, technology, and market changes
4. 04Disruptions in our supply chain, the high cost or unavailability of raw materials, equipment, and supplies essential to our business could adversely affect our ability to execute our operations on a timely basis
5. 05The partial or complete loss of GE Vernova or GE Aerospace as suppliers, as well as contracts with our aeroderivative joint venture (the "Aero JV") with GE Vernova may adversely affect our business, financial condition, results of operations and cash flows
6. 06If we are unable to attract and retain key personnel, we may not be able to execute our business strategy effectively and our operations could be adversely affected
7. 07The implementation of our plan to restructure our corporate organization and operating segments may not achieve the results we anticipate, which could adversely affect our business
8. 08Our business could be impacted by both geopolitical and terrorism threats, including armed conflict, in countries where we or our customers do business and our business operations may be impacted by civil unrest and/or government expropriations
9. 09Control of oil and natural gas reserves by national oil companies may impact the demand for our services and products and create additional risks in our operations
10. 10Our operations involve a variety of operating hazards and risks that could cause losses
11. 11Seasonal and weather conditions, including severe weather associated with climate change, could adversely affect demand for our services and operations
12. 12Baker Hughes Company 2024 Form 10-K | 17
13. 13Our business has previously and may in the future again be adversely affected by a public health emergency or outbreak of a contagious disease or virus
14. 14Providing services on an integrated, turnkey, or fixed price basis could require us to assume additional risks
15. 15We may not be able to satisfy technical requirements, testing requirements or other specifications required under our service contracts and equipment purchase agreements
16. 16We sometimes enter into consortium or similar arrangements for certain projects, which could impose additional costs and obligations on us
17. 17Our contracts may be terminated early in certain circumstances
18. 18The credit risks of having a concentrated customer base in the energy industry could result in losses
19. 19Our customers' activity levels and spending for our products and services and ability to pay amounts owed us could be impacted by the reduction of their cash flow, financial condition and the ability of our customers to access equity or credit markets
20. 20Baker Hughes Company 2024 Form 10-K | 19

LEGAL AND REGULATORY RISKS

1. 21Compliance with and changes in laws could be costly and could affect operating results. In addition, government disruptions could negatively impact our ability to conduct our business
2. 22Our failure to comply with the Foreign Corrupt Practices Act ("FCPA") and other similar laws could have a negative impact on our ongoing operations
3. 23Anti-money laundering and anti-terrorism financing laws could have adverse consequences for us
4. 24Baker Hughes Company 2024 Form 10-K | 20
5. 25We could be subject to litigation and environmental claims arising out of our products and services which could adversely affect our reputation, financial condition, results of operations and cash flows
6. 26We may be subject to litigation if another party claims that we have infringed upon, misappropriated or otherwise violated its intellectual property rights
7. 27Compliance with, and rulings and litigation in connection with, environmental regulations and the environmental impacts of our operations may adversely affect our business and operating results
8. 28Baker Hughes Company 2024 Form 10-K | 21
9. 29Investor and public perception related to the Company's ESG performance as well as current and future ESG reporting requirements may affect our business and our operating results
10. 30Baker Hughes Company 2024 Form 10-K | 22
11. 31Voluntary initiatives to reduce GHG emissions, as well as increased climate change awareness, may result in increased costs for the oil and gas industry to curb GHG emissions and could have an adverse impact on demand for oil and natural gas
12. 32Changes in laws or regulations relating to data privacy and security, or any actual or perceived failure by us to comply with such laws or regulations, or contractual or other obligations relating to data privacy or security, may adversely affect our business and operating results
13. 33Baker Hughes Company 2024 Form 10-K | 23

TECHNOLOGY RISKS

1. 34An inability to obtain, maintain, protect, defend or enforce our intellectual property rights could adversely affect our business
2. 35Increased cybersecurity vulnerabilities and threats, and more sophisticated and targeted cyber-attacks and other security incidents, pose risks to our systems, data and business, and our relationships with customers and other third parties
3. 36Baker Hughes Company 2024 Form 10-K | 24

INDUSTRY AND MARKET RISKS

1. 37Volatility of oil and natural gas prices can adversely affect demand for our products and services
2. 38Demand for our products and services is subject to factors beyond our control and depends substantially on expenditures by our customers. Changes in the global economy could impact our customers' spending levels and our financial condition, results of operations and cash flows
3. 39Supply of oil and natural gas is subject to factors beyond our control, which may adversely affect our operating results
4. 40Currency fluctuations or devaluations may impact our operating results
5. 41Changes in economic and/or market conditions may impact our ability to borrow and/or cost of borrowing

RISKS RELATED TO OUR STOCK

1. 42The market price and trading volume of our Class A common stock may be volatile, which could result in rapid and substantial losses for our shareholders
2. 43Baker Hughes Company 2024 Form 10-K | 26
3. 44Anti-takeover provisions in our organizational documents and Delaware law might discourage or delay acquisition attempts for us that might be considered favorable
4. 45Our second amended and restated certificate of incorporation designates the Court of Chancery of the State of Delaware as the exclusive forum for certain litigation that may be initiated by our shareholders, which could limit our shareholders' ability to obtain a favorable judicial forum for disputes with us