North America’s oil and gas business improved for Baker Hughes Inc. in the quarter preceding its merger with General Electric’s oil and gas unit, carried by a strong showing in the Lower 48 and the Gulf of Mexico, the company said Friday.

The $23 billion merger, creating Baker Hughes, a GE Company, was completed in early July. Before the deal was done, Baker’s North American 2Q2017 revenue increased 9% sequentially to $778 million “as a result of improved activity in the U.S., most notably onshore.

“U.S. onshore revenues grew 17% sequentially, more predominantly in the well construction product lines,” management said. “In the Gulf of Mexico, revenue was up 12% with increased drilling activity and higher stimulation vessel utilization.”

The gains were partially offset by reduced activity in Canada from the seasonal spring break-up, which reduced revenue by 26% sequentially.

Net losses in the quarter totaled $179 million (minus 42 cents/share) from 1Q2017 losses of $129 million (minus 30 cents). Total revenue was $2.4 billion in 2Q2017, a 6% increase from the first quarter.

During 2Q2017, capital expenditures totaled $129 million, a 48% increase over the first three months of this year. The sequential increase was attributed mostly to revenue generating assets to meet increased activity levels. Depreciation and amortization expense for the quarter was $216 million, a decline of $2 million, or 1%, sequentially.

Latin America revenue in 2Q2017 totaled $208 million, up 3% from 1Q2017, driven mostly by a shallow-water project award in Mexico and artificial lift revenue growth in Argentina.