Baker Hughes, Cactus Announce Closing of Surface Pressure Control Joint Venture

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.

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

Argus Jan 2 session

+3.51% close to close Open Argus

Details

News Market Reaction – BKR

In the Jan 2 session, BKR gained 3.51%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement details Baker Hughes’ joint venture for its surface pressure control business with...

Analysis

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.

Key Figures

Cash proceeds: $344.5 million JV equity stake: 35% Partner equity stake: 65% +5 more

Cash proceeds

$344.5 million

Cash received from SPC joint venture before closing adjustments

JV equity stake

35%

Baker Hughes retained stake in surface pressure control JV

Partner equity stake

65%

Cactus ownership in the surface pressure control JV

Q3 2025 revenue

$7,010 million

Quarterly revenue vs $6,908 million a year ago

Q3 2024 revenue

$6,908 million

Prior-year quarter revenue comparator

Q3 2025 net income

$609 million

Net income vs $766 million a year ago

Q3 2025 diluted EPS

$0.61

Diluted EPS vs $0.77 a year ago

Operating cash flow YTD

$2,148 million

Year-to-date operating cash flow in Q3 2025 10-Q

Historical Context

5 past events · Latest: Dec 29

5 events

1. Dec 29

   Earnings schedule

   24h Move

   +0.3%

   Announced dates and webcast details for Q4 and full-year 2025 results.

2. Dec 22

   LNG equipment award

   24h Move

   +1.9%

   Full Notice To Proceed to supply liquefaction equipment for Commonwealth LNG export facility.

3. Dec 17

   Artificial lift contract

   24h Move

   +0.6%

   Multi-year agreement to supply ESPs and digital solutions to Kuwait Oil Company.

4. Nov 10

   LNG project agreements

   24h Move

   +0.3%

   Definitive agreements with Glenfarne to advance Alaska LNG with compressors and power equipment.

5. Nov 06

   LNG expansion order

   24h Move

   +0.5%

   Additional order to supply liquefaction equipment for Rio Grande LNG Train 5 in Texas.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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• 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 65% equity in the joint venture, with Baker Hughes retaining a 35% stake.

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

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Baker Hughes (BKR) announce on January 2, 2026 about the SPC joint venture?

Baker Hughes closed a joint venture with a Cactus subsidiary, contributing its SPC product line and receiving $344.5 million in cash proceeds before customary closing adjustments.

How much cash did Baker Hughes (BKR) receive from the SPC joint venture closing?

Baker Hughes received $344.5 million in cash proceeds before customary closing adjustments.

What equity split did Baker Hughes (BKR) and Cactus agree to in the SPC joint venture?

Cactus holds 65% equity and Baker Hughes retains 35% of the joint venture.

How will the SPC joint venture closing affect Baker Hughes' balance sheet and capital plans?

The company said the transaction strengthens the balance sheet and liquidity and enables redeployment of capital toward higher-return opportunities.

Did Baker Hughes (BKR) fully divest the SPC product line in the Jan. 2, 2026 transaction?

Baker Hughes contributed the SPC product line to the joint venture while retaining a 35% stake, not a full divestiture.