Baker Hughes Co. (NYSE:BKR) Q1 2019 Earnings Conference Call - Final Transcript
Apr 30, 2019 • 09:30 am ET
Good day, ladies and gentlemen, and welcome to the Baker Hughes, a GE company, First Quarter 2019 Earnings Call. At this time all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions) As a reminder, this conference call is being recorded. I would now like to introduce your host for today's conference, Mr. Phil Mueller, Vice President, Investor Relations. Sir, you may begin.
Thank you, Kevin. Good morning, everyone, and welcome to the Baker Hughes, a GE company, first quarter 2019 earnings conference call. Here with me today are our Chairman and CEO, Lorenzo Simonelli; and our CFO, Brian Worrell. Today's presentation and the earnings release that was issued earlier today can be found on our website at bhge.com.
As a reminder, during the course of this conference call, we will provide predictions, forecasts and other forward-looking statements. These statements are not guarantees of future performance and involve a number of risks and assumptions. Please review our SEC filings for some of the factors that could cause actual results to differ materially. As you know, reconciliations of operating income and other non-GAAP to GAAP measures can be found in our earnings release.
With that, I will turn the call over to Lorenzo.
Thank you, Phil. Good morning, everyone, and thanks for joining us. On the call today, I will give a brief overview of our first quarter results, update you on our view of the market and some key themes and take you through the quarter highlights. Brian will then review our first quarter financial results in more detail before we open the call for questions.
In the first quarter, we booked $5.7 billion in orders. We delivered $5.6 billion in revenue. Adjusted operating income in the quarter was $273 million. Free cash flow for the quarter was negative $419 million. Earnings per share for the quarter was $0.06 and adjusted EPS was $0.15. Importantly, our financial outlook for the second quarter and the total year 2019 is unchanged from what we communicated at the end of the fourth quarter 2018.
Let me take a few moments to share our view on the market. The first quarter proved to be a period of stabilization for the global oil and gas markets. Oil prices rose during the quarter with Brent up 34% and WTI up 33%, rebounding from fourth quarter 2018 lows. OPEC and Russian production cuts and continued challenges in Venezuela are balancing the markets. U.S. production growth remained strong, but the lower CapEx budgets announced by our U.S. customers will likely have an impact on supply over the medium term. Rig counts in the U.S. was down 3% or 29 rigs in the first quarter, slightly less than previously expected. The U.S. DUC inventory hit a new all-time high in February at just over 8,500 DUCs. U.S. production is expected to be up more than 1 million barrels per day in 2019. While our independent customers focus