Baker Hughes and Cactus Forge Innovative Pressure Control Partnership
Baker Hughes and Cactus Establish Joint Venture
Baker Hughes, an esteemed energy technology company, has recently announced the creation of a joint venture with Cactus, Inc., a prominent manufacturer in pressure control equipment. Cactus will assume operational control with a 65% ownership stake in the venture, while Baker Hughes will maintain a 35% interest.
Strategic Partnership for Enhanced Services
This collaboration is set to enhance Baker Hughes’ existing surface pressure control (SPC) product line, aligning with the company’s strategic priority to optimize its portfolio. Cactus’s extensive expertise in pressure control for oil and gas drilling will combine with Baker Hughes’ innovative technologies, ensuring a superior offering in the international market.
Focused on Market Leadership and Innovation
The joint venture aims to operate independently, separate from Cactus’s current Pressure Control business, and is focused on maintaining a leadership position in the global market for surface wellhead and production tree systems. This new direction promises to deliver greater innovation, reliability, and efficiency in well control.
Commitment to Long-Term Value
Baker Hughes’ Chairman and CEO, Lorenzo Simonelli, emphasized the importance of this transaction in reinforcing their ongoing portfolio strategy. He remarked, "This joint venture enhances our delivery of innovation and reliability in the well control sector. Our commitment to our valued partners and customers continues unabated as we evolve this segment of our business. With Cactus bringing its unconventional expertise, we are poised to expand into international markets effectively."
Future Outlook for the Joint Venture
As the two companies prepare to finalize this venture in the latter half of the year, they are confident that this collaboration will attract higher returns and protect the durability of earnings and cash flow. The joint efforts will allow Baker Hughes to allocate resources to other high-return opportunities while strengthening their competitive edge in the energy sector.
About Baker Hughes
Baker Hughes (NASDAQ: BKR) is known for providing innovative solutions to both energy and industrial customers around the globe. With over a century of experience and operations in more than 120 countries, Baker Hughes is dedicated to pushing energy forward to be safer, cleaner, and more efficient for everyone.
Contact Information
If you require further information about this joint venture, please reach out to:
Media Relations
Adrienne M. Lynch
+1 713-906-8407
adrienne.lynch@bakerhughes.com
Investor Relations:
Chase Mulvehill
+1 346-297-2561
investor.relations@bakerhughes.com
Frequently Asked Questions
What is the purpose of the joint venture between Baker Hughes and Cactus?
The joint venture aims to enhance surface pressure control services while optimizing the portfolios of both companies.
How will the ownership structure of the joint venture work?
Cactus will hold a 65% ownership stake and operational control, while Baker Hughes will maintain a 35% interest in the venture.
When is the joint venture expected to finalize?
The transaction is expected to close in the latter half of 2025, pending regulatory approvals.
What are the key benefits of this collaboration?
This partnership will leverage their combined expertise to drive innovation and increase reliability in well control solutions, leading to enhanced offerings in the international market.
How does this venture align with Baker Hughes’ long-term strategy?
This joint venture supports Baker Hughes’ strategy to allocate capital toward higher-return opportunities while maintaining a disciplined approach to capital deployment.
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