HOUSTON, TEXAS (Ofelia Paredes, Energy Analytics Institute, 2.Jun.2025, Words: 281) — Baker Hughes will form a new joint venture (JV) with a subsidiary of Cactus, Inc., in which the former will contribute its surface pressure control (SPC) product line.
Cactus — a manufacturer and service provider of pressure control equipment — will assume operational control, owning 65% of the JV, while Baker Hughes will hold a 35% stake.
Closing of the transaction is subject to customary conditions, including regulatory approvals, and is expected to close in the second-half 2025, Baker Hughes announced on 2 Jun. 2025 in an official statement.
“We remain committed to our valued SPC partners and customers whose operations we have proudly supported, and we believe this joint venture only enhances delivery of innovation and reliability in well control as the combined business will leverage Cactus’ unconventional expertise and agility into international markets,” Baker Hughes chairman and CEO Lorenzo Simonelli said in the statement.
The JV will operate independently from Cactus’ existing pressure control business and focus on maintaining its leadership position in the international market for surface wellhead and production tree systems, according to Baker Hughes.
“This transaction marks an important step in our ongoing portfolio optimization strategy, enabling us to sharpen our focus on core growth areas while continuing to drive higher returns, reinforcing our commitment to long-term value for our shareholders,” Simonelli said.
This targeted portfolio refinement is aligned with Baker Hughes’ focus on enhancing the durability of earnings and cash flow and will enable the company to reallocate capital toward higher-return opportunities, all while maintaining a strategic and disciplined approach to capital deployment.
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By Ofelia Paredes reporting from Houston. © 2025 Energy Analytics Institute (EAI). All Rights Reserved.