Baker Hughes, a provider of oilfield services, sells a stake in Cactus

Baker Hughes is selling 65% of the surface pressure control division to Cactus, a maker of equipment. The oilfield services company will focus on its core business amid volatile oil price fluctuations.

They said that the companies would form a joint-venture to run the business. Baker Hughes will retain a 35% share after the transaction closes.

Baker Hughes is relying on portfolio refinement to increase earnings and cash flow stability as the oilfield industry struggles with low spending.

Arun Jayaram, J.P. Morgan's analyst, said: "We believe that this is a sign of a more aggressive approach by the new CFO Moghal to the portfolio."

Baker "has refined its capital allocation framework by including portfolio optimization which was a major theme from CFO Moghal," said he.

The purchase will transform Cactus’ geographic footprint by providing a more stable and diverse revenue profile, with 85% coming from the Middle East.

The SPC unit is responsible for the design, manufacturing and servicing of specialized wellheads as well as production tree equipment on international markets.

In morning trading, shares of Cactus as well as Baker Hughes rose by nearly 1%.

The transaction should close by the second half 2025. Reporting by Pooja menon in Bengaluru, editing by Shilpa Majumdar and Srirajkalluvila

(source: Reuters)