Cactus Inc. and Baker Hughes have signed a deal to create a joint venture consisting of the latter’s surface pressure control business.
Cactus will have operational control with a 65 percent stake. Baker Hughes will retain 35 percent. “The joint venture will operate independently from Cactus’ existing Pressure Control business and will focus on maintaining its leadership position in the international market for surface wellhead and production tree systems”, Baker Hughes said in an online statement.
The parties expect to close the transaction in the second half of 2025, subject to regulatory approvals and other customary conditions.
“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”, said Baker Hughes chair and chief executive Lorenzo Simonelli.
“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’ subsea and surface pressure systems product line has been the lowest contributor in the company’s oilfield services and equipment (OFSE) segment. In 2024 this product line generated $3.47 billion in revenue, compared to $4.15 billion for well construction, the highest OFSE contributor. Completions, intervention and measurements also logged $4.15 billion in revenue for 2024. The remaining OFSE product line, production solutions, collected $3.86 billion in revenue, according to Baker Hughes’ annual report.
In the first quarter of 2025 the subsea and surface pressure systems business generated $782 million in revenue. Meanwhile orders fell 34 percent quarter on quarter and 16 percent year on year to $532 million, reflecting an overall decline in OFSE volumes.
“In OFSE, EBITDA remained resilient as our margins saw noticeable improvement compared to last year even while segment revenue fell”, Baker Hughes said in its quarterly report April 22.
“Although our outlook is tempered by broader macro and trade policy uncertainty, we remain confident in our strategy and the resilience of our portfolio”, the company added.
Baker Hughes said in the annual report its subsea and surface pressure systems business would “continue to develop subsea production systems that improve performance and reduce emissions through lighter design, automated operations, and electrification”.
To contact the author, email jov.onsat@rigzone.com
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