Cactus will acquire majority control of Baker Hughes' surface pressure control line, maintaining a 35% stake in a joint venture.
Quiver AI Summary
Baker Hughes has announced a joint venture with Cactus, Inc., where Cactus will take a 65% ownership and operational control of Baker Hughes' surface pressure control product line, while Baker Hughes will retain a 35% stake. This collaboration aims to merge their complementary portfolios to enhance technological innovation in the international market for wellhead and production tree systems. The joint venture is part of Baker Hughes' strategy to optimize its portfolio, allowing it to focus on core growth areas and allocate capital toward higher-return opportunities. The deal is expected to close in the second half of 2025, pending regulatory approvals.
Potential Positives
- Cactus will become the majority owner (65%) and operator of Baker Hughes’ surface pressure control product line, enhancing its market position.
- The joint venture combines complementary portfolios, which could lead to technological innovations and improved offerings in the industry.
- This strategic move aligns with Baker Hughes' efforts to optimize its portfolio and focus on higher-return opportunities, reaffirming its commitment to long-term shareholder value.
- The transaction underscores Baker Hughes’ commitment to maintaining strong relationships with its SPC partners and customers, potentially enhancing customer satisfaction and loyalty.
Potential Negatives
- Formation of a joint venture results in Baker Hughes losing majority control over its surface pressure control product line, potentially leading to reduced influence in strategic decisions related to this portfolio.
- The need for regulatory approvals before the transaction can close may introduce uncertainty and delays, which could impact future operational plans.
- Focus on portfolio optimization and reallocating capital towards higher-return opportunities may indicate underlying issues with existing product lines or financial performance that necessitate such a shift.
FAQ
What is the joint venture between Cactus and Baker Hughes?
The joint venture will see Cactus become the majority owner and operator of Baker Hughes’ surface pressure control product line.
What percentage of the joint venture will Baker Hughes retain?
Baker Hughes will retain a 35% stake in the new joint venture.
How will the joint venture impact Baker Hughes’ operations?
The joint venture allows Baker Hughes to focus on enhancing its portfolio and reallocating capital towards higher-return opportunities.
When is the expected closing date for the joint venture?
The transaction is expected to close in the second half of 2025, pending regulatory approvals.
What benefits does this joint venture bring to customers?
This partnership will enhance innovation and reliability in well control, leveraging Cactus' expertise in international markets.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$BKR Congressional Stock Trading
Members of Congress have traded $BKR stock 1 times in the past 6 months. Of those trades, 1 have been purchases and 0 have been sales.
Here’s a breakdown of recent trading of $BKR stock by members of Congress over the last 6 months:
- REPRESENTATIVE TIM MOORE purchased up to $50,000 on 03/04.
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$BKR Insider Trading Activity
$BKR insiders have traded $BKR stock on the open market 6 times in the past 6 months. Of those trades, 0 have been purchases and 6 have been sales.
Here’s a breakdown of recent trading of $BKR stock by insiders over the last 6 months:
- NANCY BUESE (EVP & Chief Financial Officer) sold 80,000 shares for an estimated $3,709,600
- MARIA C BORRAS (EVP, Oilfield Services & Equip) has made 0 purchases and 2 sales selling 75,250 shares for an estimated $3,282,190.
- JAMES E APOSTOLIDES (SVP, Enterprise Op Excellence) has made 0 purchases and 3 sales selling 16,141 shares for an estimated $693,679.
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$BKR Hedge Fund Activity
We have seen 536 institutional investors add shares of $BKR stock to their portfolio, and 406 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- ARTISAN PARTNERS LIMITED PARTNERSHIP added 16,510,623 shares (+inf%) to their portfolio in Q1 2025, for an estimated $725,641,880
- JPMORGAN CHASE & CO added 14,981,627 shares (+18.1%) to their portfolio in Q1 2025, for an estimated $658,442,506
- D. E. SHAW & CO., INC. removed 4,712,097 shares (-95.3%) from their portfolio in Q1 2025, for an estimated $207,096,663
- FMR LLC added 4,212,391 shares (+26.8%) to their portfolio in Q1 2025, for an estimated $185,134,584
- AMUNDI removed 4,209,093 shares (-29.8%) from their portfolio in Q1 2025, for an estimated $184,989,637
- HOTCHKIS & WILEY CAPITAL MANAGEMENT LLC removed 4,096,795 shares (-44.4%) from their portfolio in Q1 2025, for an estimated $180,054,140
- PACER ADVISORS, INC. added 3,713,301 shares (+2585.6%) to their portfolio in Q1 2025, for an estimated $163,199,578
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$BKR Analyst Ratings
Wall Street analysts have issued reports on $BKR in the last several months. We have seen 8 firms issue buy ratings on the stock, and 0 firms issue sell ratings.
Here are some recent analyst ratings:
- Morgan Stanley issued a "Overweight" rating on 05/16/2025
- Barclays issued a "Overweight" rating on 02/04/2025
- RBC Capital issued a "Outperform" rating on 02/03/2025
- Susquehanna issued a "Positive" rating on 02/03/2025
- Cowen & Co. issued a "Buy" rating on 02/03/2025
- Piper Sandler issued a "Overweight" rating on 02/03/2025
- Goldman Sachs issued a "Buy" rating on 01/22/2025
To track analyst ratings and price targets for $BKR, check out Quiver Quantitative's $BKR forecast page.
$BKR Price Targets
Multiple analysts have issued price targets for $BKR recently. We have seen 3 analysts offer price targets for $BKR in the last 6 months, with a median target of $50.0.
Here are some recent targets:
- Stephen Gengaro from Stifel Nicolaus set a target price of $50.0 on 04/24/2025
- Neil Mehta from Goldman Sachs set a target price of $52.0 on 01/22/2025
- Lloyd Byrne from Jefferies set a target price of $50.0 on 01/03/2025
Full Release
Cactus to become majority owner and operator of Baker Hughes’ surface pressure control product line, with Baker Hughes retaining 35% stake
Joint venture combines complementary portfolios to lead technological innovation
Aligns with Baker Hughes’ ongoing strategy to optimize its portfolio
HOUSTON and LONDON, June 02, 2025 (GLOBE NEWSWIRE) -- Baker Hughes (NASDAQ: BKR), an energy technology company, announced Monday an agreement to form a new joint venture with a subsidiary of Cactus, Inc. (NYSE: WHD, “Cactus”), in which Baker Hughes will contribute 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, will assume operational control, owning 65% of the joint venture, while Baker Hughes will retain a 35% stake.
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.
This targeted portfolio refinement is aligned with Baker Hughes’ focus on enhancing the durability of earnings and cash flow and will enable the company to reallocate capital toward higher-return opportunities, all while maintaining a strategic and disciplined approach to capital deployment.
“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. “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.”
The closing of the transaction is subject to customary conditions, including regulatory approvals, and is expected to close in the second half of 2025.
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
This article was originally published on Quiver News, read the full story.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
