|                                                                                                                                                                                                                     |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                     |  |
|                                                                                                                                                                                                                     | News Release |
| Investor Contacts:Trey Clark, +1.713.439.8039, trey.clark@bakerhughes.comAlondra Oteyza, +1.713.439.8822, alondra.oteyza@bakerhughes.comMedia Contact:Melanie Kania, +1.713.439.8303, melanie.kania@bakerhughes.com | Baker Hughes Incorporated2929 Allen ParkwayHouston, Texas 77019Phone: 713.439.8600Fax: 713.439.8280www.bakerhughes.com |

|         |                                                                          |
|---------|--------------------------------------------------------------------------|
| • | Record revenue of $5.9 billion for the quarter, up 8% year over year |

|         |                                                                                 |
|---------|---------------------------------------------------------------------------------|
| • | Adjusted profit before tax from operations of $778 million, up 15% sequentially |

|         |                                                         |
|---------|---------------------------------------------------------|
| • | Repurchase of $200 million of shares during the quarter |

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |  |  |  |  |
|                                             | Q2 2014 |   | Q2 2013 |   | Q1 2014 |
| Revenue (millions)                               | $ | 5,935 |  |   | $ | 5,487 |  |   | $ | 5,731 |  |
| Adjusted net income (non-GAAP, millions)         | 404 |  |   | 240 |  |   | 369 |  |
| Net income (GAAP, millions)                      | 353 |  |   | 240 |  |   | 328 |  |
| Adjusted net income per diluted share (non-GAAP) | 0.92 |  |   | 0.54 |  |   | 0.84 |  |
| Net income per diluted share (GAAP)              | 0.80 |  |   | 0.54 |  |   | 0.74 |  |

----

|                                                         |
|---------------------------------------------------------|
|                                                         |  |
| Baker Hughes Incorporated News Release                  | Page 2 |
| Baker Hughes Announces Second Quarter Results |   |

----

|                                                         |
|---------------------------------------------------------|
|                                                         |  |
| Baker Hughes Incorporated News Release                  | Page 3 |
| Baker Hughes Announces Second Quarter Results |   |

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |  |  |  |  |
|                                                    | Three Months Ended |
|                                                    | June 30, |   | March 31, |
| (In millions, except per share amounts)            | 2014 |   | 2013 |   | 2014 |
| Revenue                                                 | $ | 5,935 |  |   | $ | 5,487 |  |   | $ | 5,731 |  |
| Costs and expenses:                                     |   |   |   |   |   |
| Cost of revenue                                         | 4,745 |  |   | 4,591 |  |   | 4,720 |  |
| Research and engineering                                | 159 |  |   | 131 |  |   | 143 |  |
| Marketing, general and administrative                   | 338 |  |   | 329 |  |   | 316 |  |
| Litigation settlements                                  | 62 |  |   | — |  |   | — |  |
| Total costs and expenses                                | 5,304 |  |   | 5,051 |  |   | 5,179 |  |
| Operating income                                        | 631 |  |   | 436 |  |   | 552 |  |
| Interest expense, net                                   | (59 | ) |   | (60 | ) |   | (57 | ) |
| Income before income taxes                              | 572 |  |   | 376 |  |   | 495 |  |
| Income taxes                                            | (213 | ) |   | (131 | ) |   | (159 | ) |
| Net income                                              | 359 |  |   | 245 |  |   | 336 |  |
| Net income attributable to noncontrolling interests     | (6 | ) |   | (5 | ) |   | (8 | ) |
| Net income attributable to Baker Hughes                 | $ | 353 |  |   | $ | 240 |  |   | $ | 328 |  |
|                                                    |   |   |   |   |   |
| Basic earnings per share attributable to Baker Hughes   | $ | 0.81 |  |   | $ | 0.54 |  |   | $ | 0.75 |  |
| Diluted earnings per share attributable to Baker Hughes | $ | 0.80 |  |   | $ | 0.54 |  |   | $ | 0.74 |  |
|                                                    |   |   |   |   |   |
| Weighted average shares outstanding, basic              | 437 |  |   | 443 |  |   | 439 |  |
| Weighted average shares outstanding, diluted            | 440 |  |   | 444 |  |   | 441 |  |
|                                                    |   |   |   |   |   |
| Depreciation and amortization expense                   | $ | 454 |  |   | $ | 424 |  |   | $ | 437 |  |
| Capital expenditures                                    | $ | 424 |  |   | $ | 551 |  |   | $ | 439 |  |

----

|                                                         |
|---------------------------------------------------------|
|                                                         |  |
| Baker Hughes Incorporated News Release                  | Page 4 |
| Baker Hughes Announces Second Quarter Results |   |

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |
|                                                    | Six Months Ended June 30, |
| (In millions, except per share amounts)            | 2014 |   | 2013 |
| Revenue                                                 | $ | 11,666 |  |   | $ | 10,717 |  |
| Costs and expenses:                                     |   |   |   |
| Cost of revenue                                         | 9,465 |  |   | 8,917 |  |
| Research and engineering                                | 302 |  |   | 258 |  |
| Marketing, general and administrative                   | 654 |  |   | 651 |  |
| Litigation settlements                                  | 62 |  |   | — |  |
| Total costs and expenses                                | 10,483 |  |   | 9,826 |  |
| Operating income                                        | 1,183 |  |   | 891 |  |
| Interest expense, net                                   | (116 | ) |   | (115 | ) |
| Income before income taxes                              | 1,067 |  |   | 776 |  |
| Income taxes                                            | (372 | ) |   | (263 | ) |
| Net income                                              | 695 |  |   | 513 |  |
| Net income attributable to noncontrolling interests     | (14 | ) |   | (6 | ) |
| Net income attributable to Baker Hughes                 | $ | 681 |  |   | $ | 507 |  |
|                                                    |   |   |   |
| Basic earnings per share attributable to Baker Hughes   | $ | 1.56 |  |   | $ | 1.14 |  |
| Diluted earnings per share attributable to Baker Hughes | $ | 1.55 |  |   | $ | 1.14 |  |
|                                                    |   |   |   |
| Weighted average shares outstanding, basic              | 438 |  |   | 443 |  |
| Weighted average shares outstanding, diluted            | 440 |  |   | 444 |  |
|                                                    |   |   |   |
| Depreciation and amortization expense                   | $ | 891 |  |   | $ | 839 |  |
| Capital expenditures                                    | $ | 863 |  |   | $ | 1,041 |  |

----

|                                                         |
|---------------------------------------------------------|
|                                                         |  |
| Baker Hughes Incorporated News Release                  | Page 5 |
| Baker Hughes Announces Second Quarter Results |   |

|                                                                                        |
|----------------------------------------------------------------------------------------|
|                                                                                        |  |  |  |  |  |  |  |
|                                                                                   | June 30, |   | December 31, |
| (In millions)                                                                          | 2014 |   | 2013 |
| ASSETS                                                                                 |   |   |   |
| Current Assets:                                                                        |   |   |   |
| Cash and cash equivalents                                                              | $ | 1,163 |  |   | $ | 1,399 |  |
| Accounts receivable - less allowance for doubtful accounts (2014 - $215,  2013 - $238) | 5,361 |  |   | 5,138 |  |
| Inventories, net                                                                       | 4,075 |  |   | 3,884 |  |
| Other current assets                                                                   | 948 |  |   | 874 |  |
| Total current assets                                                                   | 11,547 |  |   | 11,295 |  |
| Property, plant and equipment, net                                                     | 9,087 |  |   | 9,076 |  |
| Goodwill                                                                               | 5,999 |  |   | 5,966 |  |
| Intangible assets, net                                                                 | 836 |  |   | 883 |  |
| Other assets                                                                           | 808 |  |   | 714 |  |
| Total assets                                                                           | $ | 28,277 |  |   | $ | 27,934 |  |
| LIABILITIES AND EQUITY                                                                 |   |   |   |
| Current Liabilities:                                                                   |   |   |   |
| Accounts payable                                                                       | $ | 2,536 |  |   | $ | 2,574 |  |
| Short-term debt and current portion of long-term debt                                  | 657 |  |   | 499 |  |
| Accrued employee compensation                                                          | 569 |  |   | 778 |  |
| Other accrued liabilities                                                              | 833 |  |   | 727 |  |
| Total current liabilities                                                              | 4,595 |  |   | 4,578 |  |
| Long-term debt                                                                         | 3,900 |  |   | 3,882 |  |
| Deferred income taxes and other tax liabilities                                        | 773 |  |   | 821 |  |
| Long-term liabilities                                                                  | 758 |  |   | 741 |  |
| Equity                                                                                 | 18,251 |  |   | 17,912 |  |
| Total liabilities and equity                                                           | $ | 28,277 |  |   | $ | 27,934 |  |

----

|                                                         |
|---------------------------------------------------------|
|                                                         |  |
| Baker Hughes Incorporated News Release                  | Page 6 |
| Baker Hughes Announces Second Quarter Results |   |

|                                                                                  |
|----------------------------------------------------------------------------------|
|                                                                                  |  |  |  |  |  |  |  |
|                                                                             | Six Months Ended June 30, |
| (In millions)                                                                    | 2014 |   | 2013 |
| Cash flows from operating activities:                                            |   |   |   |
| Net income                                                                       | $ | 695 |  |   | $ | 513 |  |
| Adjustments to reconcile net income to net cash flows from operating activities: |   |   |   |
| Depreciation and amortization                                                    | 891 |  |   | 839 |  |
| Other, primarily working capital                                                 | (890 | ) |   | (274 | ) |
| Net cash flows provided by operating activities                                  | 696 |  |   | 1,078 |  |
| Cash flows from investing activities:                                            |   |   |   |
| Expenditures for capital assets                                                  | (863 | ) |   | (1,041 | ) |
| Proceeds from disposal of assets                                                 | 203 |  |   | 183 |  |
| Other                                                                            | (26 | ) |   | (4 | ) |
| Net cash flows used in investing activities                                      | (686 | ) |   | (862 | ) |
| Cash flows from financing activities:                                            |   |   |   |
| Net proceeds from issuance of debt                                               | 178 |  |   | — |  |
| Repurchase of common stock                                                       | (400 | ) |   | — |  |
| Dividends                                                                        | (131 | ) |   | (132 | ) |
| Other                                                                            | 108 |  |   | 29 |  |
| Net cash flows used in financing activities                                      | (245 | ) |   | (103 | ) |
| Effect of foreign exchange rate changes on cash and cash equivalents             | (1 | ) |   | (5 | ) |
| (Decrease) increase in cash and cash equivalents                                 | (236 | ) |   | 108 |  |
| Cash and cash equivalents, beginning of period                                   | 1,399 |  |   | 1,015 |  |
| Cash and cash equivalents, end of period                                         | $ | 1,163 |  |   | $ | 1,123 |  |

----

|                                                         |
|---------------------------------------------------------|
|                                                         |  |
| Baker Hughes Incorporated News Release                  | Page 7 |
| Baker Hughes Announces Second Quarter Results |   |

|                                                                           |
|---------------------------------------------------------------------------|
|                                                                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                      | Three Months Ended |
|                                                                      | June 30, |   | March 31, |
|                                                                           | 2014 |   | 2014 |
| (In millions, except per share amounts)                              | NetIncome |  | Diluted EarningsPer Share |   | NetIncome |   | Diluted EarningsPer Share |
| Net income attributable to Baker Hughes (GAAP)                            | $ | 353 |  |   | $ | 0.80 |  |   | $ | 328 |  |   | $ | 0.74 |  |
| Identified item:                                                          |   |   |   |   |   |   |   |
| Severance charges2                                                        | — |  |   | — |  |   | 21 |  |   | 0.05 |  |
|        Technology royalty agreement3   | — |  |   | — |  |   | 20 |  |   | 0.05 |  |
|        Litigation settlements4         | 39 |  |   | 0.09 |  |   | — |  |   | — |  |
|        Venezuela currency devaluation5 | 12 |  |   | 0.03 |  |   | — |  |   | — |  |
| Adjusted net income (non-GAAP)1                                           | $ | 404 |  |   | $ | 0.92 |  |   | $ | 369 |  |   | $ | 0.84 |  |

|   |
|---|
|   |  |  |
| 1 |  | Adjusted net income is a non-GAAP measure comprised of net income attributable to Baker Hughes excluding the impact of certain identified items.  The Company believes that adjusted net income is useful to investors because it is a consistent measure of the underlying results of the Company's business.  Furthermore, management uses adjusted net income as a measure of the performance of the Company’s operations. |
| 2 |  | Severance charges of $29 million before-tax ($21 million after-tax) were incurred in North America during the first quarter of 2014. |
| 3 |  | Costs related to a technology royalty agreement of $29 million before-tax ($20 million after-tax) were incurred during the first quarter of 2014. |
| 4 |  | Costs related to litigation settlements for labor claims of $62 million before-tax ($39 million after-tax) were recorded during the second quarter of 2014. |
| 5 |  | Foreign exchange loss of $12 million before and after-tax in Venezuela was recorded in the second quarter of 2014 as a result of changing from the official exchange rate of 6.3 Bolivars Fuertes per U.S. Dollar to the SICAD 2 rate of approximately 50 Bolivars Fuertes per U.S. Dollar. The SICAD 2 rate is most representative of the economics in which we operate. |

----

|                                                         |
|---------------------------------------------------------|
|                                                         |  |
| Baker Hughes Incorporated News Release                  | Page 8 |
| Baker Hughes Announces Second Quarter Results |   |

|                                                                        |
|------------------------------------------------------------------------|
|                                                                        |  |  |  |  |  |  |  |  |  |  |  |
|                                                                   | Three Months Ended |
|                                                                   | June 30, |   | March 31, |
| (In millions)                                                          | 2014 |   | 2013 |   | 2014 |
| Net income attributable to Baker Hughes                                | $ | 353 |  |   | $ | 240 |  |   | $ | 328 |  |
| Net income attributable to noncontrolling interests                    | 6 |  |   | 5 |  |   | 8 |  |
| Income taxes                                                           | 213 |  |   | 131 |  |   | 159 |  |
| Income before income taxes                                             | 572 |  |   | 376 |  |   | 495 |  |
| Interest expense, net                                                  | 59 |  |   | 60 |  |   | 57 |  |
| Earnings before interest and taxes (EBIT)                              | 631 |  |   | 436 |  |   | 552 |  |
| Depreciation and amortization expense                                  | 454 |  |   | 424 |  |   | 437 |  |
| Earnings before interest, taxes, depreciation andamortization (EBITDA) | 1,085 |  |   | 860 |  |   | 989 |  |
| Adjustments to EBITDA:                                                 |   |   |   |   |   |
| Severance charges2                                                     | — |  |   | — |  |   | 29 |  |
| Technology royalty agreement3                                          | — |  |   | — |  |   | 29 |  |
| Venezuela currency devaluation4                                        | 12 |  |   | — |  |   | — |  |
| Litigation settlements5                                                | 62 |  |   | — |  |   | — |  |
| Adjusted EBITDA                                                        | $ | 1,159 |  |   | $ | 860 |  |   | $ | 1,047 |  |

|                                                                        |
|------------------------------------------------------------------------|
|                                                                        |  |  |  |  |  |  |  |
|                                                                   | Six Months Ended June 30, |
| (In millions)                                                          | 2014 |   | 2013 |
| Net income attributable to Baker Hughes                                | $ | 681 |  |   | $ | 507 |  |
| Net income attributable to noncontrolling interests                    | 14 |  |   | 6 |  |
| Income taxes                                                           | 372 |  |   | 263 |  |
| Income before income taxes                                             | 1,067 |  |   | 776 |  |
| Interest expense, net                                                  | 116 |  |   | 115 |  |
| Earnings before interest and taxes (EBIT)                              | 1,183 |  |   | 891 |  |
| Depreciation and amortization expense                                  | 891 |  |   | 839 |  |
| Earnings before interest, taxes, depreciation andamortization (EBITDA) | 2,074 |  |   | 1,730 |  |
| Adjustments to EBITDA:                                                 |   |   |   |
| Severance charges2                                                     | 29 |  |   | — |  |
| Technology royalty agreement3                                          | 29 |  |   | — |  |
| Venezuela currency devaluation4                                        | 12 |  |   | 23 |  |
| Litigation settlements5                                                | 62 |  |   | — |  |
| Adjusted EBITDA                                                        | $ | 2,206 |  |   | $ | 1,753 |  |

----

|                                                         |
|---------------------------------------------------------|
|                                                         |  |
| Baker Hughes Incorporated News Release                  | Page 9 |
| Baker Hughes Announces Second 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 |  | Severance charges of $29 million before-tax ($21 million after-tax) were incurred in North America during the first quarter of 2014. |
| 3 |  | Costs related to a technology royalty agreement of $29 million before-tax ($20 million after-tax) were incurred during the first quarter of 2014. |
| 4 |  | Foreign exchange loss of $12 million before and after-tax in Venezuela was recorded in the second quarter of 2014 as a result of changing from the official exchange rate of 6.3 Bolivars Fuertes per U.S. Dollar to the SICAD 2 rate of approximately 50 Bolivars Fuertes per U.S. Dollar. The SICAD 2 rate is most representative of the economics in which we operate. Also, reflected is a loss of $23 million before and after-tax in the first quarter of 2013 due to the devaluation of Venezuela’s currency from the prior exchange rate of 4.3 Bolivars Fuertes per U.S. Dollar to 6.3 Bolivars Fuertes per U.S. Dollar. |
| 5 |  | Costs related to litigation settlements for labor claims of $62 million before-tax ($39 million after-tax) were recorded during the second quarter of 2014. |

----

|                                                         |
|---------------------------------------------------------|
|                                                         |  |
| Baker Hughes Incorporated News Release                  | Page 10 |
| Baker Hughes Announces Second Quarter Results |   |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |
|                                  | Three Months Ended |
|                                  | June 30, |   | March 31, |
| (In millions)                         | 2014 |   | 2013 |   | 2014 |
| Segment Revenue                       |   |   |   |   |   |
| North America                         | $ | 2,843 |  |   | $ | 2,677 |  |   | $ | 2,776 |  |
| Latin America                         | 544 |  |   | 557 |  |   | 530 |  |
| Europe/Africa/Russia Caspian          | 1,066 |  |   | 966 |  |   | 996 |  |
| Middle East/Asia Pacific              | 1,149 |  |   | 971 |  |   | 1,108 |  |
| Industrial Services                   | 333 |  |   | 316 |  |   | 321 |  |
| Total Operations                      | $ | 5,935 |  |   | $ | 5,487 |  |   | $ | 5,731 |  |
| Profit Before Tax                     |   |   |   |   |   |
| North America                         | $ | 340 |  |   | $ | 211 |  |   | $ | 258 |  |
| Latin America                         | 46 |  |   | (18 | ) |   | 55 |  |
| Europe/Africa/Russia Caspian          | 178 |  |   | 151 |  |   | 142 |  |
| Middle East/Asia Pacific              | 168 |  |   | 115 |  |   | 135 |  |
| Industrial Services                   | 34 |  |   | 39 |  |   | 27 |  |
| Total Operations                      | $ | 766 |  |   | $ | 498 |  |   | $ | 617 |  |
| Corporate and Other Profit Before Tax |   |   |   |   |   |
| Corporate and other                   | (73 | ) |   | (62 | ) |   | (65 | ) |
| Interest expense, net                 | (59 | ) |   | (60 | ) |   | (57 | ) |
| Litigation settlements                | (62 | ) |   | — |  |   | — |  |
| Corporate, net interest and other     | (194 | ) |  | (122 | ) |   | (122 | ) |
| Profit Before Tax                     | $ | 572 |  |   | $ | 376 |  |   | $ | 495 |  |
| Profit Before Tax Margin1             |   |   |   |   |   |
| North America                         | 12 | % |   | 8 |  % |   | 9 | % |
| Latin America                         | 8 | % |   | (3 | )% |   | 10 | % |
| Europe/Africa/Russia Caspian          | 17 | % |   | 16 |  % |   | 14 | % |
| Middle East/Asia Pacific              | 15 | % |   | 12 |  % |   | 12 | % |
| Industrial Services                   | 10 | % |   | 12 |  % |   | 8 | % |
| Total Operations                      | 13 | % |   | 9 |  % |   | 11 | % |

|   |
|---|
|   |  |  |
| 1 |  | Profit before tax margin is a non-GAAP measure defined as profit before tax (“income before income taxes”) divided by revenue.  Management uses the 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. |

----

|                                                         |
|---------------------------------------------------------|
|                                                         |  |
| Baker Hughes Incorporated News Release                  | Page 11 |
| Baker Hughes Announces Second Quarter Results |   |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |
|                                  | Six Months Ended June 30, |
| (In millions)                         | 2014 |   | 2013 |
| Segment Revenue                       |   |   |   |
| North America                         | $ | 5,619 |  |   | $ | 5,280 |  |
| Latin America                         | 1,074 |  |   | 1,147 |  |
| Europe/Africa/Russia Caspian          | 2,062 |  |   | 1,820 |  |
| Middle East/Asia Pacific              | 2,257 |  |   | 1,865 |  |
| Industrial Services                   | 654 |  |   | 605 |  |
| Total Operations                      | $ | 11,666 |  |   | $ | 10,717 |  |
| Profit Before Tax                     |   |   |   |
| North America                         | $ | 598 |  |   | $ | 446 |  |
| Latin America                         | 101 |  |   | 31 |  |
| Europe/Africa/Russia Caspian          | 320 |  |   | 244 |  |
| Middle East/Asia Pacific              | 303 |  |   | 231 |  |
| Industrial Services                   | 61 |  |   | 63 |  |
| Total Operations                      | $ | 1,383 |  |   | $ | 1,015 |  |
| Corporate and Other Profit Before Tax |   |   |   |
| Corporate and other                   | (138 | ) |   | (124 | ) |
| Interest expense, net                 | (116 | ) |   | (115 | ) |
| Litigation settlements                | (62 | ) |   | — |  |
| Corporate, net interest and other     | (316 | ) |   | (239 | ) |
| Profit Before Tax                     | $ | 1,067 |  |   | $ | 776 |  |
| Profit Before Tax Margin1             |   |   |   |
| North America                         | 11 | % |   | 8 | % |
| Latin America                         | 9 | % |   | 3 | % |
| Europe/Africa/Russia Caspian          | 16 | % |   | 13 | % |
| Middle East/Asia Pacific              | 13 | % |   | 12 | % |
| Industrial Services                   | 9 | % |   | 10 | % |
| Total Operations                      | 12 | % |   | 9 | % |

|   |
|---|
|   |  |  |
| 1 |  | Profit before tax margin is a non-GAAP measure defined as profit before tax (“income before income taxes”) divided by revenue.  Management uses the 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. |

----

|                                                         |
|---------------------------------------------------------|
|                                                         |  |
| Baker Hughes Incorporated News Release                  | Page 12 |
| Baker Hughes Announces Second Quarter Results |   |

|                                            |
|--------------------------------------------|
|                                            |  |  |  |  |  |  |  |
|                                       | Three Months Ended |
|                                       | June 30, |   | March 31, |
| (In millions)                              | 20143 |   | 20142 |
| Adjustments to Operating Profit Before Tax |   |   |   |
| North America                              | $ | — |  |   | $ | 42 |  |
| Latin America                              | 12 |  |   | 3 |  |
| Europe/Africa/Russia Caspian               | — |  |   | 6 |  |
| Middle East/Asia Pacific                   | — |  |   | 6 |  |
| Industrial Services                        | — |  |   | 1 |  |
| Total Operations                           | $ | 12 |  |   | $ | 58 |  |

|                                            |
|--------------------------------------------|
|                                            |  |  |  |  |  |  |  |
|                                       | Six Months Ended June 30, |
| (In millions)                              | 20142,3 |   | 20133 |
| Adjustments to Operating Profit Before Tax |   |   |   |
| North America                              | $ | 42 |  |   | $ | — |  |
| Latin America                              | 15 |  |   | 23 |  |
| Europe/Africa/Russia Caspian               | 6 |  |   | — |  |
| Middle East/Asia Pacific                   | 6 |  |   | — |  |
| Industrial Services                        | 1 |  |   | — |  |
| Total Operations                           | $ | 70 |  |   | $ | 23 |  |

|   |
|---|
|   |  |  |
| 1 |  | There were no identified adjustments in the second quarter of 2013. |
| 2 |  | Severance charges of $29 million before-tax in North America and costs related to a technology royalty agreement of $29 million before-tax were incurred during the first quarter of 2014. The costs associated with the technology royalty agreement pertain to our global operations and have therefore been allocated to all segments. |
| 3 |  | Foreign exchange loss of $12 million before and after-tax in Venezuela was recorded in the second quarter of 2014 as a result of changing from the official exchange rate of 6.3 Bolivars Fuertes per U.S. Dollar to the SICAD 2 rate of approximately 50 Bolivars Fuertes per U.S. Dollar. The SICAD 2 rate is most representative of the economics in which we operate. Also, reflected is a loss of $23 million before and after-tax in the first quarter of 2013 due to the devaluation of Venezuela’s currency from the prior exchange rate of 4.3 Bolivars Fuertes per U.S. Dollar to 6.3 Bolivars Fuertes per U.S. Dollar. |

----

|                                                         |
|---------------------------------------------------------|
|                                                         |  |
| Baker Hughes Incorporated News Release                  | Page 13 |
| Baker Hughes Announces Second Quarter Results |   |

|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |  |  |  |  |  |  |
|                                | Three Months Ended |
|                                | June 30, |   | March 31, |
| (In millions)                       | 2014 |   | 2013 |   | 2014 |
| Segment Revenue                     |   |   |   |   |   |
| North America                       | $ | 2,843 |  |   | $ | 2,677 |  |   | $ | 2,776 |  |
| Latin America                       | 544 |  |   | 557 |  |   | 530 |  |
| Europe/Africa/Russia Caspian        | 1,066 |  |   | 966 |  |   | 996 |  |
| Middle East/Asia Pacific            | 1,149 |  |   | 971 |  |   | 1,108 |  |
| Industrial Services                 | 333 |  |   | 316 |  |   | 321 |  |
| Total Operations                    | $ | 5,935 |  |   | $ | 5,487 |  |   | $ | 5,731 |  |
| Operating Profit Before Tax1        |   |   |   |   |   |
| North America                       | $ | 340 |  |   | $ | 211 |  |   | $ | 300 |  |
| Latin America                       | 58 |  |   | (18 | ) |   | 58 |  |
| Europe/Africa/Russia Caspian        | 178 |  |   | 151 |  |   | 148 |  |
| Middle East/Asia Pacific            | 168 |  |   | 115 |  |   | 141 |  |
| Industrial Services                 | 34 |  |   | 39 |  |   | 28 |  |
| Total Operations                    | $ | 778 |  |   | $ | 498 |  |   | $ | 675 |  |
| Operating Profit Before Tax Margin1 |   |   |   |   |   |
| North America                       | 12 | % |   | 8 | % |   | 11 | % |
| Latin America                       | 11 | % |   | (3 | )% |   | 11 | % |
| Europe/Africa/Russia Caspian        | 17 | % |   | 16 | % |   | 15 | % |
| Middle East/Asia Pacific            | 15 | % |   | 12 | % |   | 13 | % |
| Industrial Services                 | 10 | % |   | 12 | % |   | 9 | % |
| Total Operations                    | 13 | % |   | 9 | % |   | 12 | % |

|   |
|---|
|   |  |  |
| 1 |  | Operating profit before tax is a non-GAAP measure defined as profit before tax (“income before income taxes”) less certain identified costs.  Operating profit before tax margin is a non-GAAP measure defined as operating profit 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. |

----

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

|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |  |  |
|                                | Six Months Ended June 30, |
| (In millions)                       | 2014 |   | 2013 |
| Segment Revenue                     |   |   |   |
| North America                       | $ | 5,619 |  |   | $ | 5,280 |  |
| Latin America                       | 1,074 |  |   | 1,147 |  |
| Europe/Africa/Russia Caspian        | 2,062 |  |   | 1,820 |  |
| Middle East/Asia Pacific            | 2,257 |  |   | 1,865 |  |
| Industrial Services                 | 654 |  |   | 605 |  |
| Total Operations                    | $ | 11,666 |  |   | $ | 10,717 |  |
| Operating Profit Before Tax1        |   |   |   |
| North America                       | $ | 640 |  |   | $ | 446 |  |
| Latin America                       | 116 |  |   | 54 |  |
| Europe/Africa/Russia Caspian        | 326 |  |   | 244 |  |
| Middle East/Asia Pacific            | 309 |  |   | 231 |  |
| Industrial Services                 | 62 |  |   | 63 |  |
| Total Operations                    | $ | 1,453 |  |   | $ | 1,038 |  |
| Operating Profit Before Tax Margin1 |   |   |   |
| North America                       | 11 | % |   | 8 | % |
| Latin America                       | 11 | % |   | 5 | % |
| Europe/Africa/Russia Caspian        | 16 | % |   | 13 | % |
| Middle East/Asia Pacific            | 14 | % |   | 12 | % |
| Industrial Services                 | 9 | % |   | 10 | % |
| Total Operations                    | 12 | % |   | 10 | % |

|   |
|---|
|   |  |  |
| 1 |  | Operating profit before tax is a non-GAAP measure defined as profit before tax (“income before income taxes”) less certain identified costs.  Operating profit before tax margin is a non-GAAP measure defined as operating profit 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. |

----

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

----

----

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

----

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

----

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