Baker Hughes, a leading American energy technology company, announced that it entered an agreement with Cactus Inc., a U.S.-based manufacturer of pressure control equipment, to establish a joint venture (JV) that provides surface pressure control (SPC) services. SPC services include oilfield services and equipment used to safely manage and contain pressure during drilling, well intervention, completion, and production operations at the surface.

Baker Hughes will share its surface pressure control (SPC) product line, retaining a 35% stake of the JV, while Cactus will assume operational control, owning a stake of 65%. The new venture will operate apart from Cactus’ existing Pressure Control business.

This project is aligned with Baker Hughes’ strategy to enhanced the durability of earnings and cash flow. It is expected to enable the company to reallocate capital toward higher-return opportunities, all while maintaining a strategic and disciplined approach to capital deployment, Baker Hughes said in the statement. The transaction is pending the regulatory approvals and it is expected to be completed during the second half (H2) of 2025.

“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 Chairman and CEO Lorenzo Simonelli. He added, “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.”