“The U.S. shale industry is facing its biggest test since the 2015 downturn," Halliburton CEO Jeff Miller told analysts.
The company said Stuart Spence left to “pursue other opportunities” and was replaced by Chris Krummel, formerly chief accounting officer.
GE had been exploring "exit options" but CFO Jamie Miller says it now sees "a lot of upside" for Baker Hughes.
The companies believe the combined entity will be positioned to benefit from the expected recovery in oil prices.
The oilfield services giant will use its $3.5 billion breakup fee from Halliburton to fund a $1.5 billion share buyback.
"What we are experiencing today [in the energy industry] is far beyond headwinds; it is unsustainable," Halliburton's president says.
"I have never seen [a merger] that poses so many antitrust problems in so many markets," a top Justice Department official says.
The U.S. Justice Department reportedly is concerned over whether other oilfield-services companies will provide credible competition.
The proposed merger of oilfield services companies is the latest example of industry consolidation driven by the decline in oil prices.
