Baker Hughes, Cactus Announce Closing of Surface Pressure Control Joint Venture
Rhea-AI Summary
Baker Hughes (NASDAQ: BKR) announced the closing of its joint venture with a Cactus subsidiary dated Jan. 2, 2026, contributing Baker Hughes' surface pressure control (SPC) product line to the new entity.
The transaction delivers $344.5 million in cash proceeds before customary closing adjustments, with Cactus holding 65% equity and Baker Hughes retaining 35%. The company said the deal strengthens its balance sheet and liquidity, enhances earnings and cash flow durability, and enables redeployment of capital toward higher-return opportunities under its returns-focused capital allocation approach.
Positive
- $344.5 million cash proceeds before customary closing adjustments
- Baker Hughes retains a 35% equity stake in the joint venture
- Transaction intended to strengthen balance sheet and liquidity
Negative
- Baker Hughes holds a minority (35%) stake, ceding majority control to Cactus
- SPC product line contributed to JV, reducing Baker Hughes' direct ownership of that business
Key Figures
Market Reality Check
Peers on Argus
Ahead of this JV news, BKR was down 1.19% with key peers also slightly lower (e.g., SLB -0.44%, HAL -0.88%, FTI -1.52%), suggesting a modest sector softness rather than stock-specific momentum.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 29 | Earnings schedule | Neutral | +0.3% | Announced dates and webcast details for Q4 and full-year 2025 results. |
| Dec 22 | LNG equipment award | Positive | +1.9% | Full Notice To Proceed to supply liquefaction equipment for Commonwealth LNG export facility. |
| Dec 17 | Artificial lift contract | Positive | +0.6% | Multi-year agreement to supply ESPs and digital solutions to Kuwait Oil Company. |
| Nov 10 | LNG project agreements | Positive | +0.3% | Definitive agreements with Glenfarne to advance Alaska LNG with compressors and power equipment. |
| Nov 06 | LNG expansion order | Positive | +0.5% | Additional order to supply liquefaction equipment for Rio Grande LNG Train 5 in Texas. |
Recent company news—mainly contract wins and LNG-related awards—has typically seen small positive next-day moves, indicating constructive but measured market responses to operational updates.
Over the last few months, Baker Hughes reported several commercially focused milestones. LNG equipment awards for Commonwealth LNG and Rio Grande LNG Trains 4–5, artificial lift contracts in Kuwait, and agreements to advance Alaska LNG all supported its energy infrastructure positioning. Earnings-related disclosures and webcast notices produced modest positive reactions. Against this backdrop, the new surface pressure control joint venture, which brings $344.5 million of cash proceeds and retains a 35% stake, fits the pattern of portfolio-focused, capital-efficient initiatives.
Market Pulse Summary
This announcement details Baker Hughes’ joint venture for its surface pressure control business with Cactus, yielding $344.5 million of cash proceeds while keeping a 35% stake. It follows earlier portfolio actions disclosed in recent filings, reinforcing a strategy centered on capital efficiency and focused growth. Investors may watch how redeployed capital affects revenue, margin trends, and cash flow in upcoming quarters, and how retained JV earnings compare with the contribution from the previously fully owned business.
AI-generated analysis. Not financial advice.
- Transaction strengthens balance sheet and liquidity with
$344.5 million of cash proceeds before customary closing adjustments
HOUSTON and LONDON, Jan. 02, 2026 (GLOBE NEWSWIRE) -- Baker Hughes (NASDAQ: BKR, “the Company”), an energy technology company, announced Friday the final closing of its previously announced joint venture with a subsidiary of Cactus, Inc., in which Baker Hughes has contributed its surface pressure control (SPC) product line.
Cactus, a global manufacturer and service provider of pressure control equipment for oil and gas drilling, completion and production, holds a
The completion of this transaction represents an important milestone in Baker Hughes’ value-creation strategy, reinforcing the Company’s commitment to disciplined portfolio management, operational execution and capital efficiency. This transaction enhances earnings and cash flow durability, enables the redeployment of capital toward higher-return opportunities, and provides cash proceeds to further strengthen the balance sheet, all within a rigorous, returns-focused approach to capital allocation.
About Baker Hughes
Baker Hughes (NASDAQ: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward – making it safer, cleaner and more efficient for people and the planet. Visit us at bakerhughes.com.
For more information, please contact:
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
FAQ
What did Baker Hughes (BKR) announce on January 2, 2026 about the SPC joint venture?
How much cash did Baker Hughes (BKR) receive from the SPC joint venture closing?
What equity split did Baker Hughes (BKR) and Cactus agree to in the SPC joint venture?
How will the SPC joint venture closing affect Baker Hughes' balance sheet and capital plans?
Did Baker Hughes (BKR) fully divest the SPC product line in the Jan. 2, 2026 transaction?
