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|                                                                                                                                                             |  |
|                                                                                                                                                             | News Release |
| Investor Contact:Alondra Oteyza, +1.713.439.8822, alondra.oteyza@bakerhughes.comMedia Contact:Melanie Kania, +1.713.439.8303, melanie.kania@bakerhughes.com | Baker Hughes Incorporated17021 Aldine WestfieldHouston, Texas 77073Phone: 713.439.8600Fax: 713.439.8280www.bakerhughes.com |

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| • | Revenue of $2.4 billion for the quarter, down 2% sequentially and 38% year-over-year |

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|---------|------------------------------------------------------------------------------------------------------|
| • | Operating losses were $321 million for the quarter, a sequential improvement of $249 million, or 44% |

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|---------|----------------------------------------------------------------------------------------------|
| • | GAAP net loss per share of $1.00 for the quarter includes $0.85 per share of adjusting items |

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|---------|------------------------------------------------------------------------|
| • | Cash flows from operating activities were $119 million for the quarter |

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| Baker Hughes Announces Third Quarter Results |   |

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| Baker Hughes Announces Third Quarter Results |   |

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| Baker Hughes Announces Third Quarter Results |   |

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| Baker Hughes Incorporated News Release                 | Page 5 |
| Baker Hughes Announces Third Quarter Results |   |

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|---------------------------------------------------------------|
|                                                               |  |  |  |  |  |  |  |  |  |  |  |
|                                                          | Three Months Ended |
|                                                          | September 30, |   | June 30, |
| (In millions, except per share amounts)                  | 2016 |   | 2015 |   | 2016 |
| Revenue                                                       | $ | 2,353 |  |   | $ | 3,786 |  |   | $ | 2,408 |  |
| Costs and expenses:                                           |   |   |   |   |   |
| Cost of revenue                                               | 2,059 |  |   | 3,375 |  |   | 3,112 |  |
| Research and engineering                                      | 91 |  |   | 110 |  |   | 99 |  |
| Marketing, general and administrative                         | 203 |  |   | 211 |  |   | 222 |  |
| Impairment and restructuring charges                          | 304 |  |   | 98 |  |   | 1,126 |  |
| Goodwill impairment                                           | 17 |  |   | — |  |   | 1,841 |  |
| Merger and related costs                                      | — |  |   | 93 |  |   | 78 |  |
| Merger termination fee                                        | — |  |   | — |  |   | (3,500 | ) |
| Total costs and expenses                                      | 2,674 |  |   | 3,887 |  |   | 2,978 |  |
| Operating loss                                                | (321 | ) |   | (101 | ) |   | (570 | ) |
| Loss on early extinguishment of debt                          | — |  |   | — |  |   | (142 | ) |
| Interest expense, net                                         | (39 | ) |   | (55 | ) |   | (48 | ) |
| Loss before income taxes                                      | (360 | ) |   | (156 | ) |   | (760 | ) |
| Income taxes                                                  | (70 | ) |   | — |  |   | (152 | ) |
| Net loss                                                      | (430 | ) |   | (156 | ) |   | (912 | ) |
| Net (income) loss attributable to noncontrolling interests    | 1 |  |   | (3 | ) |   | 1 |  |
| Net loss attributable to Baker Hughes                         | $ | (429 | ) |   | $ | (159 | ) |   | $ | (911 | ) |
|                                                          |   |   |   |   |   |
| Basic and diluted loss per share attributable to Baker Hughes | $ | (1.00 | ) |   | $ | (0.36 | ) |   | $ | (2.08 | ) |
|                                                          |   |   |   |   |   |
| Weighted average shares outstanding, basic and diluted        | 430 |  |   | 439 |  |   | 438 |  |
|                                                          |   |   |   |   |   |
| Depreciation and amortization expense                         | $ | 262 |  |   | $ | 432 |  |   | $ | 305 |  |
| Capital expenditures                                          | $ | 70 |  |   | $ | 178 |  |   | $ | 70 |  |

|   |
|---|
|   |  |  |
| 1 |  | Beginning in 2016, all merger and related costs are presented in a separate line item in the consolidated condensed statement of income (loss). Prior-year merger and related costs were reclassified to conform to the current year presentation. |

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| Baker Hughes Incorporated News Release                 | Page 6 |
| Baker Hughes Announces Third Quarter Results |   |

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|                                                               |  |  |  |  |  |  |  |
|                                                          | Nine Months Ended September 30, |
| (In millions, except per share amounts)                  | 2016 |   | 2015 |
| Revenue                                                       | $ | 7,431 |  |   | $ | 12,348 |  |
| Costs and expenses:                                           |   |   |   |
| Cost of revenue                                               | 7,829 |  |   | 11,301 |  |
| Research and engineering                                      | 292 |  |   | 366 |  |
| Marketing, general and administrative                         | 632 |  |   | 749 |  |
| Impairment and restructuring charges                          | 1,590 |  |   | 747 |  |
| Goodwill impairment                                           | 1,858 |  |   | — |  |
| Merger and related costs                                      | 180 |  |   | 204 |  |
| Merger termination fee                                        | (3,500 | ) |   | — |  |
| Total costs and expenses                                      | 8,881 |  |   | 13,367 |  |
| Operating loss                                                | (1,450 | ) |   | (1,019 | ) |
| Loss on early extinguishment of debt                          | (142 | ) |   | — |  |
| Interest expense, net                                         | (142 | ) |   | (162 | ) |
| Loss before income taxes                                      | (1,734 | ) |   | (1,181 | ) |
| Income taxes                                                  | (589 | ) |   | 242 |  |
| Net loss                                                      | (2,323 | ) |   | (939 | ) |
| Net loss attributable to noncontrolling interests             | 2 |  |   | 3 |  |
| Net loss attributable to Baker Hughes                         | $ | (2,321 | ) |   | $ | (936 | ) |
|                                                          |   |   |   |
| Basic and diluted loss per share attributable to Baker Hughes | $ | (5.31 | ) |   | $ | (2.13 | ) |
|                                                          |   |   |   |
| Weighted average shares outstanding, basic and diluted        | 437 |  |   | 438 |  |
|                                                          |   |   |   |
| Depreciation and amortization expense                         | $ | 921 |  |   | $ | 1,326 |  |
| Capital expenditures                                          | $ | 226 |  |   | $ | 751 |  |

|   |
|---|
|   |  |  |
| 1 |  | Beginning in 2016, all merger and related costs are presented in a separate line item in the consolidated condensed statement of income (loss). Prior-year merger and related costs were reclassified to conform to the current year presentation. |

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| Baker Hughes Incorporated News Release                 | Page 7 |
| Baker Hughes Announces Third Quarter Results |   |

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|                                                                                        |  |  |  |  |  |  |  |
|                                                                                   | September 30, |   | December 31, |
| (In millions)                                                                          | 2016 |   | 2015 |
| ASSETS                                                                                 |   |   |   |
| Current assets:                                                                        |   |   |   |
| Cash and cash equivalents                                                              | $ | 3,736 |  |   | $ | 2,324 |  |
| Accounts receivable - less allowance for doubtful accounts (2016 - $558,  2015 - $383) | 2,207 |  |   | 3,217 |  |
| Inventories, net                                                                       | 1,966 |  |   | 2,917 |  |
| Other current assets                                                                   | 1,093 |  |   | 810 |  |
| Total current assets                                                                   | 9,002 |  |   | 9,268 |  |
| Property, plant and equipment, net                                                     | 4,874 |  |   | 6,693 |  |
| Goodwill                                                                               | 4,216 |  |   | 6,070 |  |
| Intangible assets, net                                                                 | 407 |  |   | 583 |  |
| Other assets                                                                           | 992 |  |   | 1,466 |  |
| Total assets                                                                           | $ | 19,491 |  |   | $ | 24,080 |  |
| LIABILITIES AND EQUITY                                                                 |   |   |   |
| Current liabilities:                                                                   |   |   |   |
| Accounts payable                                                                       | $ | 951 |  |   | $ | 1,409 |  |
| Short-term debt and current portion of long-term debt                                  | 127 |  |   | 151 |  |
| Accrued employee compensation                                                          | 466 |  |   | 690 |  |
| Other accrued liabilities                                                              | 680 |  |   | 525 |  |
| Total current liabilities                                                              | 2,224 |  |   | 2,775 |  |
| Long-term debt                                                                         | 2,895 |  |   | 3,890 |  |
| Deferred income taxes and other tax liabilities                                        | 382 |  |   | 252 |  |
| Long-term liabilities                                                                  | 753 |  |   | 781 |  |
| Equity                                                                                 | 13,237 |  |   | 16,382 |  |
| Total liabilities and equity                                                           | $ | 19,491 |  |   | $ | 24,080 |  |

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| Baker Hughes Incorporated News Release                 | Page 8 |
| Baker Hughes Announces Third Quarter Results |   |

|                                                                                |
|--------------------------------------------------------------------------------|
|                                                                                |  |  |  |  |  |  |  |
|                                                                           | Nine Months Ended September 30, |
| (In millions)                                                                  | 2016 |   | 2015 |
| Cash flows from operating activities:                                          |   |   |   |
| Net loss                                                                       | $ | (2,323 | ) |   | $ | (939 | ) |
| Adjustments to reconcile net loss to net cash flows from operating activities: |   |   |   |
| Depreciation and amortization                                                  | 921 |  |   | 1,326 |  |
| Impairment of assets                                                           | 1,241 |  |   | 265 |  |
| Goodwill impairment                                                            | 1,858 |  |   | — |  |
| Other noncash items                                                            | 1,184 |  |   | (8 | ) |
| Other, primarily working capital                                               | 716 |  |   | 621 |  |
| Net cash flows provided by operating activities                                | 3,597 |  |   | 1,265 |  |
| Cash flows from investing activities:                                          |   |   |   |
| Expenditures for capital assets                                                | (226 | ) |   | (751 | ) |
| Proceeds from disposal of assets                                               | 199 |  |   | 269 |  |
| Proceeds from maturities of investment securities                              | 307 |  |   | — |  |
| Purchases of investment securities                                             | (308 | ) |   | (217 | ) |
| Other                                                                          | — |  |   | (14 | ) |
| Net cash flows used in investing activities                                    | (28 | ) |   | (713 | ) |
| Cash flows from financing activities:                                          |   |   |   |
| Net repayments of short-term debt and other borrowings                         | (57 | ) |   | (38 | ) |
| Repayment of long-term debt                                                    | (1,135 | ) |   | — |  |
| Repurchase of common stock                                                     | (763 | ) |   | — |  |
| Dividends                                                                      | (221 | ) |   | (222 | ) |
| Other                                                                          | 17 |  |   | 21 |  |
| Net cash flows used in financing activities                                    | (2,159 | ) |   | (239 | ) |
| Effect of foreign exchange rate changes on cash and cash equivalents           | 2 |  |   | (10 | ) |
| Increase in cash and cash equivalents                                          | 1,412 |  |   | 303 |  |
| Cash and cash equivalents, beginning of period                                 | 2,324 |  |   | 1,740 |  |
| Cash and cash equivalents, end of period                                       | $ | 3,736 |  |   | $ | 2,043 |  |

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| Baker Hughes Incorporated News Release                 | Page 9 |
| Baker Hughes Announces Third Quarter Results |   |

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|                                                                                   |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                              | Three Months Ended |
|                                                                              | September 30, | June 30, |
| (In millions, except per share amounts)                                      | 2016 | 2015 | 2016 |
| Net loss attributable to Baker Hughes (GAAP)                                      | $ | (429 | ) |   | $ | (159 | ) |   | $ | (911 | ) |   |
| Identified item:                                                                  |   |   |   |   |   |   |
|        Impairment and restructuring charges2   | 304 |  |   | 98 |  |   | 1,126 |  |   |
|        Goodwill impairment3                    | 17 |  |   | — |  |   | 1,841 |  |   |
|        Merger and related costs4               | — |  |   | 93 |  |   | 78 |  |   |
|        Merger termination fee5                 | — |  |   | — |  |   | (3,500 | ) |   |
|        Inventory adjustments6                  | (34 | ) |   | — |  |   | 621 |  |   |
|        Loss on early extinguishment of debt7   | — |  |   | — |  |   | 142 |  |   |
|        Loss on firm purchase commitment8       | — |  |   | — |  |   | (51 | ) |   |
| Litigation settlements9                                                           | 41 |  |   | — |  |   | — |  |   |
| Total identified items                                                            | 328 |  |   | 191 |  |   | 257 |  |   |
| Income taxes on identified items10                                                | 37 |  |   | (54 | ) |   | 262 |  |   |
| Identified items, net of income taxes                                             | 365 |  |   | 137 |  |   | 519 |  |   |
| Adjusted net loss (non-GAAP)1                                                     | $ | (64 | ) |   | $ | (22 | ) |   | $ | (392 | ) |   |
|                                                                              |   |   |   |   |   |   |
| Basic and diluted loss per share attributable to Baker Hughes (GAAP)              | $ | (1.00 | ) |   | $ | (0.36 | ) |   | $ | (2.08 | ) |   |
| Adjusted basic and diluted loss per share attributable to Baker Hughes (non-GAAP) | $ | (0.15 | ) |   | $ | (0.05 | ) |   | $ | (0.90 | ) |   |

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|----|
|    |  |  |
| 1  |  | Adjusted net loss is a non-GAAP measure comprised of net loss attributable to Baker Hughes, excluding the impact of certain identified items.  The Company believes that adjusted net loss is useful to investors because it is a consistent measure of the underlying results of the Company’s business.  Furthermore, management uses adjusted net loss as a measure of the performance of the Company’s operations. |
| 2  |  | Impairment and restructuring charges associated with asset impairments, workforce reductions, facility closures, and contract terminations. |
| 3  |  | Goodwill impairment in two of the operating segments: North America for $19 million and $1,530 million before-tax and Industrial Services for ($2) million and $311 million before-tax during the third and second quarters of 2016, respectively. |
| 4  |  | Merger and related costs recorded in 2016 and 2015 included amounts under our retention programs and obligations for minimum incentive compensation, which based on meeting eligibility criteria, have been treated as merger and related expenses. |
| 5  |  | Merger termination fee paid by Halliburton on May 4, 2016, representing the termination fee required to be paid pursuant to the Merger Agreement. |
| 6  |  | Inventory adjustments include costs to write off and dispose of certain excess inventory. |
| 7  |  | Loss on early extinguishment of debt associated with the purchase of outstanding bonds of $1 billion of face value. |
| 8  |  | During the second quarter of 2016, we reached a settlement with a third party on a firm purchase commitment resulting in a reversal of the loss recorded in the first quarter of 2016. |
| 9  |  | Costs related to litigation settlements were recorded in Corporate during the third quarter of 2016. |
| 10 |  | Represents the tax effect of the aggregate identified items, generally based on statutory tax rates, offset by valuation allowances and the benefits of certain tax credits. |

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| Baker Hughes Incorporated News Release                 | Page 10 |
| Baker Hughes Announces Third Quarter Results |   |

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|                                                                                |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                           | Three Months Ended |
|                                                                           | September 30, | June 30, |
| (In millions)                                                                  | 2016 | 2015 | 2016 |
| Cash flows from operating activities:                                          |   |   |   |   |   |   |
| Net loss                                                                       | $ | (430 | ) |   | $ | (156 | ) |   | $ | (912 | ) |   |
| Adjustments to reconcile net loss to net cash flows from operating activities: |   |   |   |   |   |   |
| Depreciation and amortization                                                  | 262 |  |   | 432 |  |   | 305 |  |   |
| Impairment of assets                                                           | 186 |  |   | — |  |   | 937 |  |   |
| Goodwill impairment                                                            | 17 |  |   | — |  |   | 1,841 |  |   |
| Other noncash items                                                            | 25 |  |   | 58 |  |   | 755 |  |   |
| Other, primarily working capital                                               | 59 |  |   | 94 |  |   | 651 |  |   |
| Net cash flows provided by operating activities (GAAP)                         | 119 |  |   | 428 |  |   | 3,577 |  |   |
|                                                                           |   |   |   |   |   |   |
| Expenditures for capital assets                                                | (70 | ) |   | (178 | ) |   | (70 | ) |   |
| Proceeds from disposal of assets                                               | 60 |  |   | 98 |  |   | 57 |  |   |
| Free cash flow (Non-GAAP)                                                      | $ | 109 |  |   | $ | 348 |  |   | $ | 3,564 |  |   |

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| Baker Hughes Incorporated News Release                 | Page 11 |
| Baker Hughes Announces Third Quarter Results |   |

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|                                                                                |  |  |  |  |  |  |  |  |  |  |  |
|                                                                           | Three Months Ended |
|                                                                           | September 30, |   | June 30, |
| (In millions)                                                                  | 2016 |   | 2015 |   | 2016 |
| Net loss attributable to Baker Hughes                                          | $ | (429 | ) |   | $ | (159 | ) |   | $ | (911 | ) |
| Net income (loss) attributable to noncontrolling interests                     | (1 | ) |   | 3 |  |   | (1 | ) |
| Income taxes                                                                   | 70 |  |   | — |  |   | 152 |  |
| Loss before income taxes                                                       | (360 | ) |   | (156 | ) |   | (760 | ) |
| Interest expense, net                                                          | 39 |  |   | 55 |  |   | 48 |  |
| Loss before interest and taxes (EBIT)1                                         | (321 | ) |   | (101 | ) |   | (712 | ) |
| Depreciation and amortization expense                                          | 262 |  |   | 432 |  |   | 305 |  |
| Earnings (loss) before interest, taxes, depreciation andamortization (EBITDA)1 | (59 | ) |   | 331 |  |   | (407 | ) |
| Adjustments to EBITDA:                                                         |   |   |   |   |   |
| Impairment and restructuring charges2                                          | 304 |  |   | 98 |  |   | 1,126 |  |
| Goodwill impairment3                                                           | 17 |  |   | — |  |   | 1,841 |  |
| Merger and related costs4                                                      | — |  |   | 93 |  |   | 78 |  |
| Merger termination fee5                                                        | — |  |   | — |  |   | (3,500 | ) |
| Inventory adjustments6                                                         | (34 | ) |   | — |  |   | 621 |  |
| Loss on early extinguishment of debt7                                          | — |  |   | — |  |   | 142 |  |
| Loss on firm purchase commitment8                                              | — |  |   | — |  |   | (51 | ) |
| Litigation settlements9                                                        | 41 |  |   | — |  |   | — |  |
| Adjusted EBITDA1                                                               | $ | 269 |  |   | $ | 522 |  |   | $ | (150 | ) |

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|--------------------------------------------------------------------------------|
|                                                                                |  |  |  |  |  |  |  |
|                                                                           | Nine Months Ended |
|                                                                           | September 30, |
| (In millions)                                                                  | 2016 |   | 2015 |
| Net loss attributable to Baker Hughes                                          | $ | (2,321 | ) |   | $ | (936 | ) |
| Net loss attributable to noncontrolling interests                              | (2 | ) |   | (3 | ) |
| Income taxes                                                                   | 589 |  |   | (242 | ) |
| Loss before income taxes                                                       | (1,734 | ) |   | (1,181 | ) |
| Interest expense, net                                                          | 142 |  |   | 162 |  |
| Loss before interest and taxes (EBIT)1                                         | (1,592 | ) |   | (1,019 | ) |
| Depreciation and amortization expense                                          | 921 |  |   | 1,326 |  |
| Earnings (loss) before interest, taxes, depreciation andamortization (EBITDA)1 | (671 | ) |   | 307 |  |
| Adjustments to EBITDA:                                                         |   |   |   |
| Impairment and restructuring charges2                                          | 1,590 |  |   | 747 |  |
| Goodwill impairment3                                                           | 1,858 |  |   | — |  |
| Merger and related costs4                                                      | 180 |  |   | 204 |  |
| Merger termination fee5                                                        | (3,500 | ) |   | — |  |
| Inventory adjustments6                                                         | 587 |  |   | 194 |  |
| Loss on early extinguishment of debt7                                          | 142 |  |   | — |  |
| Litigation settlements9                                                        | 41 |  |   | (13 | ) |
| Adjusted EBITDA1                                                               | $ | 227 |  |   | $ | 1,439 |  |

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|                                                        |  |
| Baker Hughes Incorporated News Release                 | Page 12 |
| Baker Hughes Announces Third Quarter Results |   |

|   |
|---|
|   |  |  |
| 1 |  | EBIT, EBITDA, and Adjusted EBITDA (as defined in the calculations above) are non-GAAP measures.  Management is providing these measures because it believes that such measures are widely accepted financial indicators used by investors and analysts to analyze and compare companies on the basis of operating performance. |
| 2 |  | Impairment and restructuring charges associated with asset impairments, workforce reductions, facility closures, and contract terminations. |
| 3 |  | Goodwill impairment in two of the operating segments: North America for $19 million and $1,530 million before-tax and Industrial Services for ($2) million and $311 million before and after-tax during the third and second quarters of 2016, respectively. |
| 4 |  | Merger and related costs recorded in 2016 and 2015 included amounts under our retention programs and obligations for minimum incentive compensation, which based on meeting eligibility criteria, have been treated as merger and related expenses. |
| 5 |  | Merger termination fee paid by Halliburton on May 4, 2016, representing the termination fee required to be paid pursuant to the Merger Agreement. |
| 6 |  | Inventory adjustments include costs to write off and dispose of certain excess inventory. |
| 7 |  | Loss on early extinguishment of debt associated with the purchase of outstanding bonds of $1 billion of face value. |
| 8 |  | During the second quarter of 2016, we reached a settlement with a third party on a firm purchase commitment resulting in a reversal of the loss recorded in the first quarter of 2016. |
| 9 |  | Costs related to litigation settlements were recorded in Corporate during the third quarter of 2016.  In the second quarter of 2015, a reversal was recorded in Corporate as the amount of claims made under a settlement agreement was less than originally expected. |

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| Baker Hughes Incorporated News Release                 | Page 13 |
| Baker Hughes Announces Third Quarter Results |   |

|                                              |
|----------------------------------------------|
|                                              |  |  |  |  |  |  |  |  |  |  |  |
|                                         | Three Months Ended |
|                                         | September 30, |   | June 30, |
| (In millions)                                | 2016 |   | 2015 |   | 2016 |
| Segment Revenue                              |   |   |   |   |   |
| North America                                | $ | 674 |  |   | $ | 1,368 |  |   | $ | 668 |  |
| Latin America                                | 243 |  |   | 439 |  |   | 235 |  |
| Europe/Africa/Russia Caspian                 | 519 |  |   | 791 |  |   | 581 |  |
| Middle East/Asia Pacific                     | 649 |  |   | 849 |  |   | 651 |  |
| Industrial Services                          | 268 |  |   | 339 |  |   | 273 |  |
| Total Operations                             | $ | 2,353 |  |   | $ | 3,786 |  |   | $ | 2,408 |  |
| Operating Profit (Loss) Before Tax2          |   |   |   |   |   |
| North America                                | $ | (65 | ) |   | $ | (153 | ) |   | $ | (311 | ) |
| Latin America                                | 20 |  |   | 51 |  |   | (243 | ) |
| Europe/Africa/Russia Caspian                 | 22 |  |   | 98 |  |   | (257 | ) |
| Middle East/Asia Pacific                     | 71 |  |   | 76 |  |   | (142 | ) |
| Industrial Services                          | 30 |  |   | 44 |  |   | (43 | ) |
| Total Operations                             | 78 |  |   | 116 |  |   | (996 | ) |
| Corporate and Other Profit (Loss) Before Tax |   |   |   |   |   |
| Corporate2                                   | (78 | ) |   | (26 | ) |   | (29 | ) |
| Loss on early extinguishment of debt         | — |  |   | — |  |   | (142 | ) |
| Interest expense, net                        | (39 | ) |   | (55 | ) |   | (48 | ) |
| Impairment and restructuring charges         | (304 | ) |   | (98 | ) |   | (1,126 | ) |
| Goodwill impairment                          | (17 | ) |   | — |  |   | (1,841 | ) |
| Merger and related costs2                    | — |  |   | (93 | ) |   | (78 | ) |
| Merger termination fee                       | — |  |   | — |  |   | 3,500 |  |
| Corporate, net interest and other            | (438 | ) |  | (272 | ) |   | 236 |  |
| Loss Before Income Tax                       | $ | (360 | ) |   | $ | (156 | ) |   | $ | (760 | ) |
| Operating Profit Before Tax Margin1,2        |   |   |   |   |   |
| North America                                | (9.6 | %) |   | (11.2 | %) |   | (46.6 | %) |
| Latin America                                | 8.2 | % |   | 11.6 | % |   | (103.4 | %) |
| Europe/Africa/Russia Caspian                 | 4.2 | % |   | 12.4 | % |   | (44.2 | %) |
| Middle East/Asia Pacific                     | 10.9 | % |   | 9.0 | % |   | (21.8 | %) |
| Industrial Services                          | 11.2 | % |   | 13.0 | % |   | (15.8 | %) |
| Total Operations                             | 3.3 | % |   | 3.1 | % |   | (41.4 | %) |

|   |
|---|
|   |  |  |
| 1 |  | Operating profit before tax margin is a non-GAAP measure defined as operating profit (loss) before tax divided by revenue.  Management uses the operating profit before tax margin because it believes it is a widely accepted financial indicator used by investors and analysts to analyze and compare companies on the basis of operating performance. |
| 2 |  | Beginning in 2016, we excluded merger and related costs from our operating segments. These costs are now presented as a separate line item in the consolidated condensed statement of income (loss).  Prior-year merger and related costs have been reclassified to conform to the current year presentation. |

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|                                                        |
|--------------------------------------------------------|
|                                                        |  |
| Baker Hughes Incorporated News Release                 | Page 14 |
| Baker Hughes Announces Third Quarter Results |   |

|                                              |
|----------------------------------------------|
|                                              |  |  |  |  |  |  |  |
|                                         | Nine Months Ended September 30, |
| (In millions)                                | 2016 |   | 2015 |
| Segment Revenue                              |   |   |   |
| North America                                | $ | 2,161 |  |   | $ | 4,872 |  |
| Latin America                                | 755 |  |   | 1,371 |  |
| Europe/Africa/Russia Caspian                 | 1,711 |  |   | 2,555 |  |
| Middle East/Asia Pacific                     | 2,018 |  |   | 2,621 |  |
| Industrial Services                          | 786 |  |   | 929 |  |
| Total Operations                             | $ | 7,431 |  |   | $ | 12,348 |  |
| Operating Profit (Loss) Before Tax2          |   |   |   |
| North America                                | $ | (601 | ) |   | $ | (512 | ) |
| Latin America                                | (289 | ) |   | 129 |  |
| Europe/Africa/Russia Caspian                 | (254 | ) |   | 135 |  |
| Middle East/Asia Pacific                     | (22 | ) |   | 198 |  |
| Industrial Services                          | (17 | ) |   | 86 |  |
| Total Operations                             | (1,183 | ) |   | 36 |  |
| Corporate and Other Profit (Loss) Before Tax |   |   |   |
| Corporate2                                   | (139 | ) |   | (104 | ) |
| Loss on early extinguishment of debt         | (142 | ) |   | — |  |
| Interest expense, net                        | (142 | ) |   | (162 | ) |
| Impairment and restructuring charges         | (1,590 | ) |   | (747 | ) |
| Goodwill impairment                          | (1,858 | ) |   | — |  |
| Merger and related costs2                    | (180 | ) |   | (204 | ) |
| Merger termination fee                       | 3,500 |  |   | — |  |
| Corporate, net interest and other            | (551 | ) |   | (1,217 | ) |
| Loss Before Income Tax                       | $ | (1,734 | ) |   | $ | (1,181 | ) |
| Operating Profit Before Tax Margin1,2        |   |   |   |
| North America                                | (27.8 | %) |   | (10.5 | %) |
| Latin America                                | (38.3 | %) |   | 9.4 | % |
| Europe/Africa/Russia Caspian                 | (14.8 | %) |   | 5.3 | % |
| Middle East/Asia Pacific                     | (1.1 | %) |   | 7.6 | % |
| Industrial Services                          | (2.2 | %) |   | 9.3 | % |
| Total Operations                             | (15.9 | %) |   | 0.3 | % |

|   |
|---|
|   |  |  |
| 1 |  | Operating profit before tax margin is a non-GAAP measure defined as operating profit (loss) before tax divided by revenue.  Management uses the operating profit before tax margin because it believes it is a widely accepted financial indicator used by investors and analysts to analyze and compare companies on the basis of operating performance. |
| 2 |  | Beginning in 2016, we excluded merger and related costs from our operating segments. These costs are now presented as a separate line item in the consolidated condensed statement of income (loss).  Prior-year merger and related costs have been reclassified to conform to the current year presentation. |

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|                                                        |
|--------------------------------------------------------|
|                                                        |  |
| Baker Hughes Incorporated News Release                 | Page 15 |
| Baker Hughes Announces Third Quarter Results |   |

|                                                    |
|----------------------------------------------------|
|                                                    |  |  |  |  |  |  |  |
|                                               | Three Months Ended |
|                                               | September 30, |   | June 30, |
| (In millions)                                      | 20162,4 |   | 20162,3 |
| Adjustments to Operating Profit (Loss) Before Tax1 |   |   |   |
| North America                                      | $ | (9 | ) |   | $ | 158 |  |
| Latin America                                      | (4 | ) |   | 88 |  |
| Europe/Africa/Russia Caspian                       | (9 | ) |   | 152 |  |
| Middle East/Asia Pacific                           | (8 | ) |   | 125 |  |
| Industrial Services                                | (4 | ) |   | 47 |  |
| Total Operations                                   | (34 | ) |   | 570 |  |
| Corporate                                          | 41 |  |   | — |  |
| Total                                              | $ | 7 |  |   | $ | 570 |  |

|                                                    |
|----------------------------------------------------|
|                                                    |  |  |  |  |  |  |  |
|                                               | Nine Months Ended September 30, |
| (In millions)                                      | 20162,4 |   | 20152,4 |
| Adjustments to Operating Profit (Loss) Before Tax1 |   |   |   |
| North America                                      | $ | 200 |  |   | $ | 182 |  |
| Latin America                                      | 84 |  |   | 12 |  |
| Europe/Africa/Russia Caspian                       | 143 |  |   | — |  |
| Middle East/Asia Pacific                           | 117 |  |   | — |  |
| Industrial Services                                | 43 |  |   | — |  |
| Total Operations                                   | $ | 587 |  |   | $ | 194 |  |
| Corporate                                          | 41 |  |   | (13 | ) |
| Total                                              | $ | 628 |  |   | $ | 181 |  |

|   |
|---|
|   |  |  |
| 1 |  | The company believes that adjusting these identified items from the segment operating profit (loss) before tax provides investors and analysts a measure to compare companies more consistently on the basis of operating performance. |
| 2 |  | Inventory adjustments to write off and dispose of certain excess inventory of ($34) million and $621 million during the third and second quarters of 2016, respectively, across all the segments. In 2015 we also recorded inventory adjustments of $194 million with $171 million during the first quarter and $23 million in the second quarter. |
| 3 |  | During the second quarter of 2016, we reached a settlement with a third party on a firm purchase commitment resulting in a reversal of the loss recorded in the first quarter of 2016 in North America for $51 million. |
| 4 |  | Costs related to litigation settlements were recorded in Corporate during the third quarter of 2016.  In the second quarter of 2015, a reversal was recorded in Corporate as the amount of claims made under a settlement agreement was less than originally expected. |

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|                                                        |
|--------------------------------------------------------|
|                                                        |  |
| Baker Hughes Incorporated News Release                 | Page 16 |
| Baker Hughes Announces Third Quarter Results |   |

|                                                |
|------------------------------------------------|
|                                                |  |  |  |  |  |  |  |  |  |  |  |
|                                           | Three Months Ended |
|                                           | September 30, |   | June 30, |
| (In millions)                                  | 2016 |   | 2015 |   | 2016 |
| Segment Revenue                                |   |   |   |   |   |
| North America                                  | $ | 674 |  |   | $ | 1,368 |  |   | $ | 668 |  |
| Latin America                                  | 243 |  |   | 439 |  |   | 235 |  |
| Europe/Africa/Russia Caspian                   | 519 |  |   | 791 |  |   | 581 |  |
| Middle East/Asia Pacific                       | 649 |  |   | 849 |  |   | 651 |  |
| Industrial Services                            | 268 |  |   | 339 |  |   | 273 |  |
| Total Operations                               | $ | 2,353 |  |   | $ | 3,786 |  |   | $ | 2,408 |  |
| Adjusted Operating Profit (Loss) Before Tax1,2 |   |   |   |   |   |
| North America                                  | $ | (74 | ) |   | $ | (153 | ) |   | $ | (153 | ) |
| Latin America                                  | 16 |  |   | 51 |  |   | (155 | ) |
| Europe/Africa/Russia Caspian                   | 13 |  |   | 98 |  |   | (105 | ) |
| Middle East/Asia Pacific                       | 63 |  |   | 76 |  |   | (17 | ) |
| Industrial Services                            | 26 |  |   | 44 |  |   | 4 |  |
| Total Operations                               | 44 |  |   | 116 |  |   | (426 | ) |
| Corporate                                      | (37 | ) |   | (26 | ) |   | (29 | ) |
| Total                                          | $ | 7 |  |   | $ | 90 |  |   | $ | (455 | ) |
| Adjusted Operating Profit Before Tax Margin1,2 |   |   |   |   |   |
| North America                                  | (11.0 | %) |   | (11.2 | %) |   | (22.9 | %) |
| Latin America                                  | 6.6 | % |   | 11.6 | % |   | (66.0 | %) |
| Europe/Africa/Russia Caspian                   | 2.5 | % |   | 12.4 | % |   | (18.1 | %) |
| Middle East/Asia Pacific                       | 9.7 | % |   | 9.0 | % |   | (2.6 | %) |
| Industrial Services                            | 9.7 | % |   | 13.0 | % |   | 1.5 | % |
| Total Operations                               | 1.9 | % |   | 3.1 | % |   | (17.7 | %) |

|   |
|---|
|   |  |  |
| 1 |  | Adjusted operating profit (loss) before tax is a non-GAAP measure defined as profit (loss) before income tax less interest expense and identified items as shown on Table 1a.  Adjusted operating profit before tax margin is a non-GAAP measure defined as adjusted operating profit (loss) before tax divided by revenue.  Management uses each of these measures because it believes they are widely accepted financial indicators used by investors and analysts to analyze and compare companies on the basis of operating performance and that these measures may be used by investors to make informed investment decisions. |
| 2 |  | Beginning in 2016, we excluded merger and related costs from our operating segments. These costs are now presented as a separate line item in the consolidated condensed statement of income (loss).  Prior-year merger and related costs have been reclassified to conform to the current year presentation. |

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|                                                        |
|--------------------------------------------------------|
|                                                        |  |
| Baker Hughes Incorporated News Release                 | Page 17 |
| Baker Hughes Announces Third Quarter Results |   |

|                                                |
|------------------------------------------------|
|                                                |  |  |  |  |  |  |  |
|                                           | Nine Months Ended September 30, |
| (In millions)                                  | 2016 |   | 2015 |
| Segment Revenue                                |   |   |   |
| North America                                  | $ | 2,161 |  |   | $ | 4,872 |  |
| Latin America                                  | 755 |  |   | 1,371 |  |
| Europe/Africa/Russia Caspian                   | 1,711 |  |   | 2,555 |  |
| Middle East/Asia Pacific                       | 2,018 |  |   | 2,621 |  |
| Industrial Services                            | 786 |  |   | 929 |  |
| Total Operations                               | $ | 7,431 |  |   | $ | 12,348 |  |
| Adjusted Operating Profit (Loss) Before Tax1,2 |   |   |   |
| North America                                  | $ | (401 | ) |   | $ | (330 | ) |
| Latin America                                  | (205 | ) |   | 141 |  |
| Europe/Africa/Russia Caspian                   | (111 | ) |   | 135 |  |
| Middle East/Asia Pacific                       | 95 |  |   | 198 |  |
| Industrial Services                            | 26 |  |   | 86 |  |
| Total Operations                               | (596 | ) |   | 230 |  |
| Corporate                                      | (98 | ) |   | (117 | ) |
| Total                                          | $ | (694 | ) |   | $ | 113 |  |
| Adjusted Operating Profit Before Tax Margin1,2 |   |   |   |
| North America                                  | (18.6 | %) |   | (6.8 | %) |
| Latin America                                  | (27.2 | %) |   | 10.3 | % |
| Europe/Africa/Russia Caspian                   | (6.5 | %) |   | 5.3 | % |
| Middle East/Asia Pacific                       | 4.7 | % |   | 7.6 | % |
| Industrial Services                            | 3.3 | % |   | 9.3 | % |
| Total Operations                               | (8.0 | %) |   | 1.9 | % |

|   |
|---|
|   |  |  |
| 1 |  | Adjusted operating profit (loss) before tax is a non-GAAP measure defined as profit (loss) before income tax less interest expense and identified items as shown on Table 1a.  Adjusted operating profit before tax margin is a non-GAAP measure defined as adjusted operating profit (loss) before tax divided by revenue.  Management uses each of these measures because it believes they are widely accepted financial indicators used by investors and analysts to analyze and compare companies on the basis of operating performance and that these measures may be used by investors to make informed investment decisions. |
| 2 |  | Beginning in 2016, we excluded merger and related costs from our operating segments. These costs are now presented as a separate line item in the consolidated condensed statement of income (loss).  Prior-year merger and related costs have been reclassified to conform to the current year presentation. |

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|                                                        |
|--------------------------------------------------------|
|                                                        |  |
| Baker Hughes Incorporated News Release                 | Page 18 |
| Baker Hughes Announces Third Quarter Results |   |

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|                                                        |  |
| Baker Hughes Incorporated News Release                 | Page 19 |
| Baker Hughes Announces Third Quarter Results |   |

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|                                                        |  |
| Baker Hughes Incorporated News Release                 | Page 20 |
| Baker Hughes Announces Third Quarter Results |   |

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|                                                        |  |
| Baker Hughes Incorporated News Release                 | Page 21 |
| Baker Hughes Announces Third Quarter Results |   |

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|                                                        |
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|                                                        |  |
| Baker Hughes Incorporated News Release                 | Page 22 |
| Baker Hughes Announces Third Quarter Results |   |