Cactus Takes Majority Stake In Baker Hughes' SPC For Global Reach
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
Joint Venture Announcement: Cactus Inc. will acquire a 65% stake in a new joint venture with Baker Hughes Co., taking control of its Surface Pressure Control business, while Baker Hughes retains a 35% stake. The deal aims to enhance both companies' global oilfield equipment presence and is valued at $530 million.
Financial Implications: The acquisition adds a $600 million order backlog for Cactus and reduces its U.S. market exposure, providing strong revenue visibility. The transaction is expected to close in the second half of 2025, with funding sourced from existing cash and potential credit facilities.
Analyst Views on XLE
Wall Street analysts forecast XLE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for XLE is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
