Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Cactus Announces Fourth Quarter and Full Year 2022 Results By: Cactus, Inc. via Business Wire February 22, 2023 at 19:00 PM EST Cactus, Inc. (NYSE: WHD) (“Cactus” or the “Company”) today announced financial and operating results for the fourth quarter and full year 2022. Fourth Quarter 2022 Highlights and Recent Events Revenue of $187.8 million and income from operations of $48.2 million; Net income of $40.7 million(1) and diluted earnings per Class A share of $0.50(1); Adjusted net income(3) of $43.5 million and diluted earnings per share, as adjusted(3) of $0.57; Net income margin of 21.7% and adjusted net income margin(3) of 23.2%; Adjusted EBITDA(4) and Adjusted EBITDA margin(4) of $66.4 million and 35.4%, respectively; Cash flow from operations of $39.3 million; Cash balance of $344.5 million with no bank debt outstanding as of December 31, 2022; Signed agreement to acquire HighRidge Resources, Inc. (“FlexSteel”); In January 2023, the Board of Directors (the “Board”) declared a quarterly cash dividend of $0.11 per Class A share; and In January 2023, Cactus closed an underwritten offering of Class A common stock for net proceeds of $165.6 million. Financial Summary Three Months Ended Twelve Months Ended December 31, September 30, December 31, December 31, December 31, 2022 2022 2021 2022 2021 ($ in thousands) ($ in thousands) Revenues $ 187,774 $ 184,481 $ 129,916 $ 688,369 $ 438,589 Income from operations $ 48,221 $ 51,296 $ 25,712 $ 174,748 $ 75,427 Net income(1)(2) $ 40,739 $ 41,520 $ 20,383 $ 145,122 $ 67,470 Net income margin 21.7 % 22.5 % 15.7 % 21.1 % 15.4 % Adjusted net income(3) $ 43,525 $ 40,062 $ 18,666 $ 140,163 $ 54,497 Adjusted net income margin(3) 23.2 % 21.7 % 14.4 % 20.4 % 12.4 % Adjusted EBITDA(4) $ 66,393 $ 63,693 $ 36,614 $ 227,925 $ 120,355 Adjusted EBITDA margin(4) 35.4 % 34.5 % 28.2 % 33.1 % 27.4 % (1) Net income during the fourth quarter of 2022 is inclusive of $7.4 million in expenses associated with the pending acquisition of FlexSteel (the “FlexSteel Acquisition”), $1.9 million in expense related to the revaluation of the tax receivable agreement (“TRA”) liability and a $1.8 million income tax benefit related to the revaluation of our deferred tax asset. Net income during the third quarter of 2022 is inclusive of $1.0 million in expenses associated with the pending FlexSteel Acquisition, $1.1 million in other income related to the revaluation of the TRA liability and $1.1 million of income tax expense related to the revaluation of our deferred tax asset. Net income during the fourth quarter of 2021 is inclusive of $1.9 million in other income related to the revaluation of the TRA liability as well as $1.3 million of income tax expense related to the revaluation of our deferred tax asset. (2) Net income for the full year 2022 is inclusive of $8.4 million in expenses associated with the pending FlexSteel Acquisition, $1.9 million in expense related to the revaluation of the TRA liability and $5.0 million of net income tax benefits associated with various non-routine items primarily comprised of benefits associated with stock-based compensation and the revaluation of our deferred tax asset. Net income for the full year 2021 is inclusive of $0.9 million in additional income related to the revaluation of the TRA liability, $0.4 million in offering related expenses and $8.6 million in net tax benefits associated with various non-routine items, primarily a partial release of a valuation allowance. (3) Adjusted net income, Adjusted net income margin and diluted earnings per share, as adjusted are non-GAAP financial measures. These figures assume Cactus, Inc. held all units in Cactus Wellhead, LLC (“Cactus LLC”), its operating subsidiary, at the beginning of the period. Additional information regarding non-GAAP measures and the reconciliation of GAAP to non-GAAP financial measures are in the Supplemental Information tables. (4) Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See definition of these measures and the reconciliation of GAAP to non-GAAP financial measures in the Supplemental Information tables. Scott Bender, President and CEO of Cactus, commented, “I am extremely proud of the Cactus team and our execution during the fourth quarter, which enabled us to deliver the highest recorded Adjusted EBITDA in Company history. In our Product revenue category, market share(1) increased to over 40% as rigs followed were up approximately 7% from the third quarter of 2022. Margins increased across all of our revenue categories during the period, showcasing our organization's continued focus on customer service and cost management. “Looking ahead to the first quarter of 2023, we anticipate continued revenue growth. While the overall level of U.S. onshore drilling activity has waned in recent months, we expect another increase in Cactus’ rigs followed during the first quarter. Since the second half of 2022, larger, well capitalized operators have increased activity, which has typically been a positive sign for Cactus. Additionally, our working capital outflows should meaningfully decline during early 2023. Mr. Bender concluded, “Regarding the pending FlexSteel Acquisition, we remain extremely excited about bringing this high-quality and differentiated business into Cactus. Significant progress around permanent financing for the transaction has been made and closing is on-track to occur during the first quarter. Following closing, we plan to share additional details regarding our near-term expectations for the combined business. The FlexSteel Acquisition represents a significant opportunity for Cactus. We believe our general operating philosophy, which is a focus on margins, returns and generating value for our shareholders, will enhance the FlexSteel business.” (1) Additional information regarding market share and rigs followed is located in the Supplemental Information tables. Revenue Categories Product Three Months Ended December 31, September 30, December 31, 2022 2022 2021 ($ in thousands) Product revenue $ 124,561 $ 121,782 $ 83,771 Gross profit $ 50,529 $ 48,035 $ 29,017 Gross margin 40.6 % 39.4 % 34.6 % Fourth quarter 2022 product revenue increased $2.8 million, or 2.3%, sequentially, as sales of wellhead and production related equipment improved primarily due to higher customer drilling activity. Gross profit increased $2.5 million, or 5.2%, sequentially, with margins increasing 120 basis points driven largely by operating leverage and lower branch costs in relation to revenue generated. Rental Three Months Ended December 31, September 30, December 31, 2022 2022 2021 ($ in thousands) Rental revenue $ 27,310 $ 27,105 $ 19,225 Gross profit (loss) $ 12,013 $ 10,782 $ 4,672 Gross margin 44.0 % 39.8 % 24.3 % Fourth quarter 2022 rental revenue increased $0.2 million, or 0.8%, sequentially, due to higher international revenue generation. Gross profit increased $1.2 million sequentially and margins improved by 420 basis points due largely to better asset management, lower repair costs and declining depreciation expense. Field Service and Other Three Months Ended December 31, September 30, December 31, 2022 2022 2021 ($ in thousands) Field service and other revenue $ 35,903 $ 35,594 $ 26,920 Gross profit $ 8,575 $ 8,449 $ 4,884 Gross margin 23.9 % 23.7 % 18.1 % Fourth quarter 2022 field service and other revenue increased $0.3 million, or 0.9%, sequentially, due to improved revenue mix and increased ancillary services activity. Gross profit increased $0.1 million, or 1.5%, sequentially, with margins increasing by 20 basis points due to lower supplies costs and branch related expenses, which offset higher labor costs during the period. Selling, General and Administrative Expenses (“SG&A”) SG&A for the fourth quarter of 2022 was $22.9 million (12.2% of revenues), compared to $16.0 million (8.7% of revenues) for the third quarter of 2022 and $12.9 million (9.9% of revenues) for the fourth quarter of 2021. The sequential increase was due primarily to higher fees and expenses associated with the pending FlexSteel Acquisition. Liquidity, Capital Expenditures and Other As of December 31, 2022, the Company had $344.5 million of cash and no bank debt outstanding. Operating cash flow was $39.3 million for the fourth quarter of 2022. During the fourth quarter, the Company made dividend payments and associated distributions of $8.4 million. Net cash used in investing activities represented $6.0 million during the fourth quarter of 2022. Net capital expenditures for the full year 2022 were $25.5 million. For the full year 2023, the Company expects net capital expenditures to be in the range of $35 million to $45 million, inclusive of capital directed toward international expansion and the potential purchase of a currently leased facility, but exclusive of capital expenditures associated with the FlexSteel business. On January 13, 2023, Cactus closed an underwritten offering of 3,224,300 shares of its Class A common stock for total net proceeds of approximately $166 million, net of underwriting discounts and selling commissions. The net proceeds from the sale of the Class A common stock in the offering are expected to be utilized to fund a portion of the initial closing price for the pending FlexSteel Acquisition. As of January 31, 2023, Cactus had 64,127,114 shares of Class A common stock outstanding (representing 81.1% of the total voting power) and 14,978,225 shares of Class B common stock outstanding (representing 18.9% of the total voting power). Quarterly Dividend In January 2023 the Board approved a quarterly cash dividend of $0.11 per share of Class A common stock with payment to occur on March 16, 2023 to holders of record of Class A common stock at the close of business on February 27, 2023. A corresponding distribution of up to $0.11 per CW Unit has also been approved for holders of CW Units of Cactus Wellhead, LLC. Conference Call Details The Company will host a conference call to discuss financial and operational results on Thursday, February 23, 2023 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time). The call will be webcast on Cactus’ website at www.CactusWHD.com. Please access the webcast for the call at least 10 minutes ahead of the start time to ensure a proper connection. Analysts and institutional investors may click here to pre-register for the conference call and obtain a dial-in number and passcode. An archived webcast of the conference call will be available on the Company’s website shortly after the end of the call. About Cactus, Inc. Cactus designs, manufactures, sells and rents a range of highly engineered wellhead and pressure control equipment. Its products are sold and rented principally for onshore unconventional oil and gas wells and are utilized during the drilling, completion and production phases of its customers’ wells. In addition, it provides field services for all its products and rental items to assist with the installation, maintenance and handling of the wellhead and pressure control equipment. Cactus operates service centers throughout the United States and Australia, while also providing equipment and services in select international markets. Cautionary Statement Concerning Forward-Looking Statements Certain statements contained in this press release and oral statements made regarding the matters addressed in this release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Cactus’ control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology including “may,” “believe,” “expect,” “intend,” “anticipate,” “estimate,” “continue,” “potential,” “will,” “hope” or other similar words and include the Company’s expectation of future performance contained herein. These statements discuss future expectations, contain projections of results of operations or of financial condition, or state other “forward-looking” information. You are cautioned not to place undue reliance on any forward-looking statements, which can be affected by assumptions used or by risks or uncertainties, including unanticipated challenges relating to the pending FlexSteel Acquisition and related financing. Consequently, no forward-looking statements can be guaranteed. When considering these forward-looking statements, you should keep in mind the risk factors and other factors noted in the Company’s Annual Report on Form 10-K, any Quarterly Reports on Form 10-Q and the other documents that the Company files with the Securities and Exchange Commission. The risk factors and other factors noted therein could cause actual results to differ materially from those contained in any forward-looking statement. Cactus disclaims any duty to update and does not intend to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release. Cactus, Inc. Condensed Consolidated Statements of Income (unaudited) Three Months Ended December 31, Twelve Months Ended December 31, 2022 2021 2022 2021 (in thousands, except per share data) Revenues Product revenue $ 124,561 $ 83,771 $ 452,615 $ 280,907 Rental revenue 27,310 19,225 100,453 61,629 Field service and other revenue 35,903 26,920 135,301 96,053 Total revenues 187,774 129,916 688,369 438,589 Costs and expenses Cost of product revenue 74,032 54,754 277,871 189,083 Cost of rental revenue 15,297 14,553 62,037 54,377 Cost of field service and other revenue 27,328 22,036 106,013 73,681 Selling, general and administrative expenses 22,896 12,861 67,700 46,021 Total costs and expenses 139,553 104,204 513,621 363,162 Income from operations 48,221 25,712 174,748 75,427 Interest (expense) income, net 2,370 (142 ) 3,714 (774 ) Other income (expense), net (1,920 ) 1,902 (1,910 ) 492 Income before income taxes 48,671 27,472 176,552 75,145 Income tax expense 7,932 7,089 31,430 7,675 Net income $ 40,739 $ 20,383 $ 145,122 $ 67,470 Less: net income attributable to non-controlling interest 9,750 5,359 34,948 17,877 Net income attributable to Cactus, Inc. $ 30,989 $ 15,024 $ 110,174 $ 49,593 Earnings per Class A share - basic $ 0.51 $ 0.25 $ 1.83 $ 0.90 Earnings per Class A share - diluted (a) $ 0.50 $ 0.25 $ 1.80 $ 0.83 Weighted average shares outstanding - basic 60,797 58,988 60,323 55,398 Weighted average shares outstanding - diluted (a) 76,410 76,148 76,337 76,107 (a) Dilution for the three and twelve months ended December 31, 2022 includes an additional $10.1 million and $36.3 million of pre-tax income attributable to non-controlling interest adjusted for a corporate effective tax rate of 25.0% and 15.1 million and 15.5 million weighted average shares of Class B common stock, respectively, plus the effect of dilutive securities. Dilution for the three and twelve months ended December 31, 2021 includes an additional $5.6 million and $18.8 million of pre-tax income attributable to non-controlling interest adjusted for a corporate effective tax rate of 27.0% and 16.7 million and 20.3 million weighted average shares of Class B common stock, respectively, plus the effect of dilutive securities. Cactus, Inc. Condensed Consolidated Balance Sheets (unaudited) December 31, 2022 2021 (in thousands) Assets Current assets Cash and cash equivalents $ 344,527 $ 301,669 Accounts receivable, net 138,268 89,205 Inventories 161,283 119,817 Prepaid expenses and other current assets 10,564 7,794 Total current assets 654,642 518,485 Property and equipment, net 129,998 129,117 Operating lease right-of-use assets, net 23,183 22,538 Goodwill 7,824 7,824 Deferred tax asset, net 301,644 303,074 Other noncurrent assets 1,605 1,040 Total assets $ 1,118,896 $ 982,078 Liabilities and Equity Current liabilities Accounts payable $ 47,776 $ 42,818 Accrued expenses and other current liabilities 30,619 28,240 Current portion of liability related to tax receivable agreement 27,544 11,769 Finance lease obligations, current portion 5,933 4,867 Operating lease liabilities, current portion 4,777 4,880 Total current liabilities 116,649 92,574 Deferred tax liability, net 1,966 1,172 Liability related to tax receivable agreement, net of current portion 265,025 269,838 Finance lease obligations, net of current portion 6,436 5,811 Operating lease liabilities, net of current portion 18,375 17,650 Total liabilities 408,451 387,045 Equity 710,445 595,033 Total liabilities and equity $ 1,118,896 $ 982,078 Cactus, Inc. Condensed Consolidated Statements of Cash Flows (unaudited) Twelve Months Ended December 31, 2022 2021 (in thousands) Cash flows from operating activities Net income $ 145,122 $ 67,470 Reconciliation of net income to net cash provided by operating activities Depreciation and amortization 34,124 36,308 Deferred financing cost amortization 165 168 Stock-based compensation 10,631 8,620 Provision for expected credit losses 406 310 Inventory obsolescence 2,739 3,490 Gain on disposal of assets (1,391 ) (1,386 ) Deferred income taxes 25,299 4,829 (Gain) loss from revaluation of liability related to tax receivable agreement 1,910 (898 ) Changes in operating assets and liabilities: Accounts receivable (49,349 ) (45,492 ) Inventories (44,891 ) (36,083 ) Prepaid expenses and other assets (3,108 ) (2,789 ) Accounts payable 5,803 22,281 Accrued expenses and other liabilities 2,090 16,628 Payments pursuant to tax receivable agreement (11,666 ) (9,697 ) Net cash provided by operating activities 117,884 63,759 Cash flows from investing activities Capital expenditures and other (28,291 ) (13,939 ) Proceeds from sale of assets 2,755 2,306 Net cash used in investing activities (25,536 ) (11,633 ) Cash flows from financing activities Payment of deferred financing costs (353 ) — Payments on finance leases (6,055 ) (5,205 ) Dividends paid to Class A common stock shareholders (26,719 ) (21,158 ) Distributions to members (9,692 ) (9,742 ) Repurchase of shares (4,563 ) (3,283 ) Net cash used in financing activities (47,382 ) (39,388 ) Effect of exchange rate changes on cash and cash equivalents (2,108 ) 272 Net increase in cash and cash equivalents 42,858 13,010 Cash and cash equivalents Beginning of period 301,669 288,659 End of period $ 344,527 $ 301,669 Cactus, Inc. – Supplemental Information Reconciliation of GAAP to non-GAAP Financial Measures Adjusted net income, diluted earnings per share, as adjusted and adjusted net income margin (unaudited) Adjusted net income and diluted earnings per share, as adjusted are not measures of net income as determined by GAAP. Adjusted net income and diluted earnings per share, as adjusted are supplemental non-GAAP financial measures that are used by management and external users of the Company’s consolidated financial statements. Cactus defines adjusted net income as net income assuming Cactus, Inc. held all units in Cactus LLC, its operating subsidiary, at the beginning of the period, with the resulting additional income tax expense related to the incremental income attributable to Cactus, Inc. Adjusted net income also includes certain other adjustments described below. Cactus defines diluted earnings per share, as adjusted as Adjusted net income divided by weighted average shares outstanding, as adjusted. Cactus defines Adjusted net income margin as Adjusted net income divided by Revenue. The Company believes this supplemental information is useful for evaluating performance period over period. Three Months Ended Twelve Months Ended December 31, December 31, September 30, December 31, 2022 2022 2021 2022 2021 ($ in thousands, except per share data) Net income $ 40,739 $ 41,520 $ 20,383 $ 145,122 $ 67,470 Adjustments: Other non-operating (income) expense, pre-tax(1) 1,920 (1,125 ) (1,902 ) 1,910 (898 ) Transaction related expenses, pre-tax(2) 7,442 980 — 8,422 406 Income tax expense differential(3) (6,576 ) (1,313 ) 185 (15,291 ) (12,481 ) Adjusted net income $ 43,525 $ 40,062 $ 18,666 $ 140,163 $ 54,497 Diluted earnings per share, as adjusted $ 0.57 $ 0.52 $ 0.25 $ 1.84 $ 0.72 Weighted average shares outstanding, as adjusted(4) 76,410 76,319 76,148 76,337 76,107 Revenue $ 187,774 $ 184,481 $ 129,916 $ 688,369 $ 438,589 Net income margin 21.7 % 22.5 % 15.7 % 21.1 % 15.4 % Adjusted net income margin 23.2 % 21.7 % 14.4 % 20.4 % 12.4 % (1) Represents non-cash adjustments for the revaluation of the liability related to the tax receivable agreement. (2) Reflects fees and expenses recorded in connection with the pending FlexSteel Acquisition and the 2021 offering of shares of our Class A common stock, excluding underwriting discounts and selling commissions. Fees and expenses related to the pending FlexSteel Acquisition shown for the three months ending September 30, 2022 were not previously included as an adjustment to net income. (3) Represents the increase or decrease in tax expense as though Cactus, Inc. owned 100% of Cactus LLC at the beginning of the period, calculated as the difference in tax expense recorded during each period and what would have been recorded, adjusted for pre-tax items listed above, based on a corporate effective tax rate of 25.0% for the three and twelve months ended December 31, 2022, 25.0% for the three months ended September 30, 2022, and 27.0% for the three and twelve months ended December 31, 2021. (4) Reflects 60.8, 60.7, and 59.0 million weighted average shares of basic Class A common stock and 15.1, 15.2 and 16.7 million of additional shares for the three months ended December 31, 2022, September 30, 2022, and December 31, 2021, and 60.3 and 55.4 million weighted average shares of basic Class A common stock and 15.5 and 20.3 million of additional shares for the twelve months ended December 31, 2022 and December 31, 2021, respectively, as if the weighted average shares of Class B common stock were exchanged and canceled for Class A common stock at the beginning of the period, plus the effect of dilutive securities. Cactus, Inc. – Supplemental Information Reconciliation of GAAP to non-GAAP Financial Measures EBITDA, Adjusted EBITDA and Adjusted EBITDA margin (unaudited) EBITDA and Adjusted EBITDA are not measures of net income as determined by GAAP. EBITDA and Adjusted EBITDA are supplemental non-GAAP financial measures that are used by management and external users of the Company’s consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. Cactus defines EBITDA as net income excluding net interest, income tax and depreciation and amortization. Cactus defines Adjusted EBITDA as EBITDA excluding the other items outlined below. Cactus management believes EBITDA and Adjusted EBITDA are useful because they allow management to more effectively evaluate the Company’s operating performance and compare the results of its operations from period to period without regard to financing methods or capital structure, or other items that impact comparability of financial results from period to period. EBITDA and Adjusted EBITDA should not be considered as alternatives to, or more meaningful than, net income or any other measure as determined in accordance with GAAP. The Company’s computations of EBITDA and Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. Cactus defines Adjusted EBITDA margin as Adjusted EBITDA divided by Revenue. Cactus presents EBITDA, Adjusted EBITDA and Adjusted EBITDA margin because it believes they provide useful information regarding the factors and trends affecting the Company’s business. Three Months Ended Twelve Months Ended December 31, December 31, September 30, December 31, 2022 2022 2021 2022 2021 ($ in thousands) ($ in thousands) Net income $ 40,739 $ 41,520 $ 20,383 $ 145,122 $ 67,470 Interest (income) expense, net (2,370 ) (1,140 ) 142 (3,714 ) 774 Income tax expense 7,932 12,041 7,089 31,430 7,675 Depreciation and amortization 8,133 8,399 8,828 34,124 36,308 EBITDA 54,434 60,820 36,442 206,962 112,227 Other non-operating (income) expense(1) 1,920 (1,125 ) (1,902 ) 1,910 (898 ) Transaction related expenses(2) 7,442 980 — 8,422 406 Stock-based compensation 2,597 3,018 2,074 10,631 8,620 Adjusted EBITDA $ 66,393 $ 63,693 $ 36,614 $ 227,925 $ 120,355 Revenue $ 187,774 $ 184,481 $ 129,916 $ 688,369 $ 438,589 Net income margin 21.7 % 22.5 % 15.7 % 21.1 % 15.4 % Adjusted EBITDA margin 35.4 % 34.5 % 28.2 % 33.1 % 27.4 % (1) Represents non-cash adjustments for the revaluation of the liability related to the tax receivable agreement. (2) Reflects fees and expenses recorded in connection with the pending FlexSteel Acquisition and the 2021 offering of shares of our Class A common stock, excluding underwriting discounts and selling commissions. Fees and expenses related to the pending FlexSteel Acquisition shown for the three months ended September 30, 2022 were not previously included as an adjustment to Adjusted EBITDA. Cactus, Inc. – Supplemental Information Depreciation and Amortization by Category (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, September 30, December 31, 2022 2022 2021 2022 2021 (in thousands) (in thousands) Cost of product revenue $ 783 $ 740 $ 758 $ 3,022 $ 3,176 Cost of rental revenue 5,442 5,802 6,272 23,663 25,812 Cost of field service and other revenue 1,773 1,738 1,705 6,986 6,863 Selling, general and administrative expenses 135 119 93 453 457 Total depreciation and amortization $ 8,133 $ 8,399 $ 8,828 $ 34,124 $ 36,308 Cactus, Inc. – Supplemental Information Estimated Market Share (unaudited) Market share represents the average number of active U.S. onshore rigs Cactus followed (which Cactus defines as the number of active U.S. onshore drilling rigs to which it was the primary provider of wellhead products and corresponding services during drilling) as of mid-month for each of the three months in the applicable quarter divided by the Baker Hughes U.S. onshore rig count quarterly average. Cactus believes that comparing the total number of active U.S. onshore rigs to which it was providing its products and services at a given time to the number of active U.S. onshore rigs during the same period provides Cactus with a reasonable approximation of its market share with respect to wellhead products sold and the corresponding services it provides. Three Months Ended December 31, September 30, December 31, 2022 2022 2021 Cactus U.S. onshore rigs followed 304 285 228 Baker Hughes U.S. onshore rig count quarterly average 757 741 543 Market share 40.2 % 38.5 % 42.0 % View source version on businesswire.com: https://www.businesswire.com/news/home/20230222005970/en/Contacts Cactus, Inc. John Fitzgerald, 713-904-4655 Director of Corporate Development and Investor Relations IR@CactusWHD.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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Cactus Announces Fourth Quarter and Full Year 2022 Results By: Cactus, Inc. via Business Wire February 22, 2023 at 19:00 PM EST Cactus, Inc. (NYSE: WHD) (“Cactus” or the “Company”) today announced financial and operating results for the fourth quarter and full year 2022. Fourth Quarter 2022 Highlights and Recent Events Revenue of $187.8 million and income from operations of $48.2 million; Net income of $40.7 million(1) and diluted earnings per Class A share of $0.50(1); Adjusted net income(3) of $43.5 million and diluted earnings per share, as adjusted(3) of $0.57; Net income margin of 21.7% and adjusted net income margin(3) of 23.2%; Adjusted EBITDA(4) and Adjusted EBITDA margin(4) of $66.4 million and 35.4%, respectively; Cash flow from operations of $39.3 million; Cash balance of $344.5 million with no bank debt outstanding as of December 31, 2022; Signed agreement to acquire HighRidge Resources, Inc. (“FlexSteel”); In January 2023, the Board of Directors (the “Board”) declared a quarterly cash dividend of $0.11 per Class A share; and In January 2023, Cactus closed an underwritten offering of Class A common stock for net proceeds of $165.6 million. Financial Summary Three Months Ended Twelve Months Ended December 31, September 30, December 31, December 31, December 31, 2022 2022 2021 2022 2021 ($ in thousands) ($ in thousands) Revenues $ 187,774 $ 184,481 $ 129,916 $ 688,369 $ 438,589 Income from operations $ 48,221 $ 51,296 $ 25,712 $ 174,748 $ 75,427 Net income(1)(2) $ 40,739 $ 41,520 $ 20,383 $ 145,122 $ 67,470 Net income margin 21.7 % 22.5 % 15.7 % 21.1 % 15.4 % Adjusted net income(3) $ 43,525 $ 40,062 $ 18,666 $ 140,163 $ 54,497 Adjusted net income margin(3) 23.2 % 21.7 % 14.4 % 20.4 % 12.4 % Adjusted EBITDA(4) $ 66,393 $ 63,693 $ 36,614 $ 227,925 $ 120,355 Adjusted EBITDA margin(4) 35.4 % 34.5 % 28.2 % 33.1 % 27.4 % (1) Net income during the fourth quarter of 2022 is inclusive of $7.4 million in expenses associated with the pending acquisition of FlexSteel (the “FlexSteel Acquisition”), $1.9 million in expense related to the revaluation of the tax receivable agreement (“TRA”) liability and a $1.8 million income tax benefit related to the revaluation of our deferred tax asset. Net income during the third quarter of 2022 is inclusive of $1.0 million in expenses associated with the pending FlexSteel Acquisition, $1.1 million in other income related to the revaluation of the TRA liability and $1.1 million of income tax expense related to the revaluation of our deferred tax asset. Net income during the fourth quarter of 2021 is inclusive of $1.9 million in other income related to the revaluation of the TRA liability as well as $1.3 million of income tax expense related to the revaluation of our deferred tax asset. (2) Net income for the full year 2022 is inclusive of $8.4 million in expenses associated with the pending FlexSteel Acquisition, $1.9 million in expense related to the revaluation of the TRA liability and $5.0 million of net income tax benefits associated with various non-routine items primarily comprised of benefits associated with stock-based compensation and the revaluation of our deferred tax asset. Net income for the full year 2021 is inclusive of $0.9 million in additional income related to the revaluation of the TRA liability, $0.4 million in offering related expenses and $8.6 million in net tax benefits associated with various non-routine items, primarily a partial release of a valuation allowance. (3) Adjusted net income, Adjusted net income margin and diluted earnings per share, as adjusted are non-GAAP financial measures. These figures assume Cactus, Inc. held all units in Cactus Wellhead, LLC (“Cactus LLC”), its operating subsidiary, at the beginning of the period. Additional information regarding non-GAAP measures and the reconciliation of GAAP to non-GAAP financial measures are in the Supplemental Information tables. (4) Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See definition of these measures and the reconciliation of GAAP to non-GAAP financial measures in the Supplemental Information tables. Scott Bender, President and CEO of Cactus, commented, “I am extremely proud of the Cactus team and our execution during the fourth quarter, which enabled us to deliver the highest recorded Adjusted EBITDA in Company history. In our Product revenue category, market share(1) increased to over 40% as rigs followed were up approximately 7% from the third quarter of 2022. Margins increased across all of our revenue categories during the period, showcasing our organization's continued focus on customer service and cost management. “Looking ahead to the first quarter of 2023, we anticipate continued revenue growth. While the overall level of U.S. onshore drilling activity has waned in recent months, we expect another increase in Cactus’ rigs followed during the first quarter. Since the second half of 2022, larger, well capitalized operators have increased activity, which has typically been a positive sign for Cactus. Additionally, our working capital outflows should meaningfully decline during early 2023. Mr. Bender concluded, “Regarding the pending FlexSteel Acquisition, we remain extremely excited about bringing this high-quality and differentiated business into Cactus. Significant progress around permanent financing for the transaction has been made and closing is on-track to occur during the first quarter. Following closing, we plan to share additional details regarding our near-term expectations for the combined business. The FlexSteel Acquisition represents a significant opportunity for Cactus. We believe our general operating philosophy, which is a focus on margins, returns and generating value for our shareholders, will enhance the FlexSteel business.” (1) Additional information regarding market share and rigs followed is located in the Supplemental Information tables. Revenue Categories Product Three Months Ended December 31, September 30, December 31, 2022 2022 2021 ($ in thousands) Product revenue $ 124,561 $ 121,782 $ 83,771 Gross profit $ 50,529 $ 48,035 $ 29,017 Gross margin 40.6 % 39.4 % 34.6 % Fourth quarter 2022 product revenue increased $2.8 million, or 2.3%, sequentially, as sales of wellhead and production related equipment improved primarily due to higher customer drilling activity. Gross profit increased $2.5 million, or 5.2%, sequentially, with margins increasing 120 basis points driven largely by operating leverage and lower branch costs in relation to revenue generated. Rental Three Months Ended December 31, September 30, December 31, 2022 2022 2021 ($ in thousands) Rental revenue $ 27,310 $ 27,105 $ 19,225 Gross profit (loss) $ 12,013 $ 10,782 $ 4,672 Gross margin 44.0 % 39.8 % 24.3 % Fourth quarter 2022 rental revenue increased $0.2 million, or 0.8%, sequentially, due to higher international revenue generation. Gross profit increased $1.2 million sequentially and margins improved by 420 basis points due largely to better asset management, lower repair costs and declining depreciation expense. Field Service and Other Three Months Ended December 31, September 30, December 31, 2022 2022 2021 ($ in thousands) Field service and other revenue $ 35,903 $ 35,594 $ 26,920 Gross profit $ 8,575 $ 8,449 $ 4,884 Gross margin 23.9 % 23.7 % 18.1 % Fourth quarter 2022 field service and other revenue increased $0.3 million, or 0.9%, sequentially, due to improved revenue mix and increased ancillary services activity. Gross profit increased $0.1 million, or 1.5%, sequentially, with margins increasing by 20 basis points due to lower supplies costs and branch related expenses, which offset higher labor costs during the period. Selling, General and Administrative Expenses (“SG&A”) SG&A for the fourth quarter of 2022 was $22.9 million (12.2% of revenues), compared to $16.0 million (8.7% of revenues) for the third quarter of 2022 and $12.9 million (9.9% of revenues) for the fourth quarter of 2021. The sequential increase was due primarily to higher fees and expenses associated with the pending FlexSteel Acquisition. Liquidity, Capital Expenditures and Other As of December 31, 2022, the Company had $344.5 million of cash and no bank debt outstanding. Operating cash flow was $39.3 million for the fourth quarter of 2022. During the fourth quarter, the Company made dividend payments and associated distributions of $8.4 million. Net cash used in investing activities represented $6.0 million during the fourth quarter of 2022. Net capital expenditures for the full year 2022 were $25.5 million. For the full year 2023, the Company expects net capital expenditures to be in the range of $35 million to $45 million, inclusive of capital directed toward international expansion and the potential purchase of a currently leased facility, but exclusive of capital expenditures associated with the FlexSteel business. On January 13, 2023, Cactus closed an underwritten offering of 3,224,300 shares of its Class A common stock for total net proceeds of approximately $166 million, net of underwriting discounts and selling commissions. The net proceeds from the sale of the Class A common stock in the offering are expected to be utilized to fund a portion of the initial closing price for the pending FlexSteel Acquisition. As of January 31, 2023, Cactus had 64,127,114 shares of Class A common stock outstanding (representing 81.1% of the total voting power) and 14,978,225 shares of Class B common stock outstanding (representing 18.9% of the total voting power). Quarterly Dividend In January 2023 the Board approved a quarterly cash dividend of $0.11 per share of Class A common stock with payment to occur on March 16, 2023 to holders of record of Class A common stock at the close of business on February 27, 2023. A corresponding distribution of up to $0.11 per CW Unit has also been approved for holders of CW Units of Cactus Wellhead, LLC. Conference Call Details The Company will host a conference call to discuss financial and operational results on Thursday, February 23, 2023 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time). The call will be webcast on Cactus’ website at www.CactusWHD.com. Please access the webcast for the call at least 10 minutes ahead of the start time to ensure a proper connection. Analysts and institutional investors may click here to pre-register for the conference call and obtain a dial-in number and passcode. An archived webcast of the conference call will be available on the Company’s website shortly after the end of the call. About Cactus, Inc. Cactus designs, manufactures, sells and rents a range of highly engineered wellhead and pressure control equipment. Its products are sold and rented principally for onshore unconventional oil and gas wells and are utilized during the drilling, completion and production phases of its customers’ wells. In addition, it provides field services for all its products and rental items to assist with the installation, maintenance and handling of the wellhead and pressure control equipment. Cactus operates service centers throughout the United States and Australia, while also providing equipment and services in select international markets. Cautionary Statement Concerning Forward-Looking Statements Certain statements contained in this press release and oral statements made regarding the matters addressed in this release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Cactus’ control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology including “may,” “believe,” “expect,” “intend,” “anticipate,” “estimate,” “continue,” “potential,” “will,” “hope” or other similar words and include the Company’s expectation of future performance contained herein. These statements discuss future expectations, contain projections of results of operations or of financial condition, or state other “forward-looking” information. You are cautioned not to place undue reliance on any forward-looking statements, which can be affected by assumptions used or by risks or uncertainties, including unanticipated challenges relating to the pending FlexSteel Acquisition and related financing. Consequently, no forward-looking statements can be guaranteed. When considering these forward-looking statements, you should keep in mind the risk factors and other factors noted in the Company’s Annual Report on Form 10-K, any Quarterly Reports on Form 10-Q and the other documents that the Company files with the Securities and Exchange Commission. The risk factors and other factors noted therein could cause actual results to differ materially from those contained in any forward-looking statement. Cactus disclaims any duty to update and does not intend to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release. Cactus, Inc. Condensed Consolidated Statements of Income (unaudited) Three Months Ended December 31, Twelve Months Ended December 31, 2022 2021 2022 2021 (in thousands, except per share data) Revenues Product revenue $ 124,561 $ 83,771 $ 452,615 $ 280,907 Rental revenue 27,310 19,225 100,453 61,629 Field service and other revenue 35,903 26,920 135,301 96,053 Total revenues 187,774 129,916 688,369 438,589 Costs and expenses Cost of product revenue 74,032 54,754 277,871 189,083 Cost of rental revenue 15,297 14,553 62,037 54,377 Cost of field service and other revenue 27,328 22,036 106,013 73,681 Selling, general and administrative expenses 22,896 12,861 67,700 46,021 Total costs and expenses 139,553 104,204 513,621 363,162 Income from operations 48,221 25,712 174,748 75,427 Interest (expense) income, net 2,370 (142 ) 3,714 (774 ) Other income (expense), net (1,920 ) 1,902 (1,910 ) 492 Income before income taxes 48,671 27,472 176,552 75,145 Income tax expense 7,932 7,089 31,430 7,675 Net income $ 40,739 $ 20,383 $ 145,122 $ 67,470 Less: net income attributable to non-controlling interest 9,750 5,359 34,948 17,877 Net income attributable to Cactus, Inc. $ 30,989 $ 15,024 $ 110,174 $ 49,593 Earnings per Class A share - basic $ 0.51 $ 0.25 $ 1.83 $ 0.90 Earnings per Class A share - diluted (a) $ 0.50 $ 0.25 $ 1.80 $ 0.83 Weighted average shares outstanding - basic 60,797 58,988 60,323 55,398 Weighted average shares outstanding - diluted (a) 76,410 76,148 76,337 76,107 (a) Dilution for the three and twelve months ended December 31, 2022 includes an additional $10.1 million and $36.3 million of pre-tax income attributable to non-controlling interest adjusted for a corporate effective tax rate of 25.0% and 15.1 million and 15.5 million weighted average shares of Class B common stock, respectively, plus the effect of dilutive securities. Dilution for the three and twelve months ended December 31, 2021 includes an additional $5.6 million and $18.8 million of pre-tax income attributable to non-controlling interest adjusted for a corporate effective tax rate of 27.0% and 16.7 million and 20.3 million weighted average shares of Class B common stock, respectively, plus the effect of dilutive securities. Cactus, Inc. Condensed Consolidated Balance Sheets (unaudited) December 31, 2022 2021 (in thousands) Assets Current assets Cash and cash equivalents $ 344,527 $ 301,669 Accounts receivable, net 138,268 89,205 Inventories 161,283 119,817 Prepaid expenses and other current assets 10,564 7,794 Total current assets 654,642 518,485 Property and equipment, net 129,998 129,117 Operating lease right-of-use assets, net 23,183 22,538 Goodwill 7,824 7,824 Deferred tax asset, net 301,644 303,074 Other noncurrent assets 1,605 1,040 Total assets $ 1,118,896 $ 982,078 Liabilities and Equity Current liabilities Accounts payable $ 47,776 $ 42,818 Accrued expenses and other current liabilities 30,619 28,240 Current portion of liability related to tax receivable agreement 27,544 11,769 Finance lease obligations, current portion 5,933 4,867 Operating lease liabilities, current portion 4,777 4,880 Total current liabilities 116,649 92,574 Deferred tax liability, net 1,966 1,172 Liability related to tax receivable agreement, net of current portion 265,025 269,838 Finance lease obligations, net of current portion 6,436 5,811 Operating lease liabilities, net of current portion 18,375 17,650 Total liabilities 408,451 387,045 Equity 710,445 595,033 Total liabilities and equity $ 1,118,896 $ 982,078 Cactus, Inc. Condensed Consolidated Statements of Cash Flows (unaudited) Twelve Months Ended December 31, 2022 2021 (in thousands) Cash flows from operating activities Net income $ 145,122 $ 67,470 Reconciliation of net income to net cash provided by operating activities Depreciation and amortization 34,124 36,308 Deferred financing cost amortization 165 168 Stock-based compensation 10,631 8,620 Provision for expected credit losses 406 310 Inventory obsolescence 2,739 3,490 Gain on disposal of assets (1,391 ) (1,386 ) Deferred income taxes 25,299 4,829 (Gain) loss from revaluation of liability related to tax receivable agreement 1,910 (898 ) Changes in operating assets and liabilities: Accounts receivable (49,349 ) (45,492 ) Inventories (44,891 ) (36,083 ) Prepaid expenses and other assets (3,108 ) (2,789 ) Accounts payable 5,803 22,281 Accrued expenses and other liabilities 2,090 16,628 Payments pursuant to tax receivable agreement (11,666 ) (9,697 ) Net cash provided by operating activities 117,884 63,759 Cash flows from investing activities Capital expenditures and other (28,291 ) (13,939 ) Proceeds from sale of assets 2,755 2,306 Net cash used in investing activities (25,536 ) (11,633 ) Cash flows from financing activities Payment of deferred financing costs (353 ) — Payments on finance leases (6,055 ) (5,205 ) Dividends paid to Class A common stock shareholders (26,719 ) (21,158 ) Distributions to members (9,692 ) (9,742 ) Repurchase of shares (4,563 ) (3,283 ) Net cash used in financing activities (47,382 ) (39,388 ) Effect of exchange rate changes on cash and cash equivalents (2,108 ) 272 Net increase in cash and cash equivalents 42,858 13,010 Cash and cash equivalents Beginning of period 301,669 288,659 End of period $ 344,527 $ 301,669 Cactus, Inc. – Supplemental Information Reconciliation of GAAP to non-GAAP Financial Measures Adjusted net income, diluted earnings per share, as adjusted and adjusted net income margin (unaudited) Adjusted net income and diluted earnings per share, as adjusted are not measures of net income as determined by GAAP. Adjusted net income and diluted earnings per share, as adjusted are supplemental non-GAAP financial measures that are used by management and external users of the Company’s consolidated financial statements. Cactus defines adjusted net income as net income assuming Cactus, Inc. held all units in Cactus LLC, its operating subsidiary, at the beginning of the period, with the resulting additional income tax expense related to the incremental income attributable to Cactus, Inc. Adjusted net income also includes certain other adjustments described below. Cactus defines diluted earnings per share, as adjusted as Adjusted net income divided by weighted average shares outstanding, as adjusted. Cactus defines Adjusted net income margin as Adjusted net income divided by Revenue. The Company believes this supplemental information is useful for evaluating performance period over period. Three Months Ended Twelve Months Ended December 31, December 31, September 30, December 31, 2022 2022 2021 2022 2021 ($ in thousands, except per share data) Net income $ 40,739 $ 41,520 $ 20,383 $ 145,122 $ 67,470 Adjustments: Other non-operating (income) expense, pre-tax(1) 1,920 (1,125 ) (1,902 ) 1,910 (898 ) Transaction related expenses, pre-tax(2) 7,442 980 — 8,422 406 Income tax expense differential(3) (6,576 ) (1,313 ) 185 (15,291 ) (12,481 ) Adjusted net income $ 43,525 $ 40,062 $ 18,666 $ 140,163 $ 54,497 Diluted earnings per share, as adjusted $ 0.57 $ 0.52 $ 0.25 $ 1.84 $ 0.72 Weighted average shares outstanding, as adjusted(4) 76,410 76,319 76,148 76,337 76,107 Revenue $ 187,774 $ 184,481 $ 129,916 $ 688,369 $ 438,589 Net income margin 21.7 % 22.5 % 15.7 % 21.1 % 15.4 % Adjusted net income margin 23.2 % 21.7 % 14.4 % 20.4 % 12.4 % (1) Represents non-cash adjustments for the revaluation of the liability related to the tax receivable agreement. (2) Reflects fees and expenses recorded in connection with the pending FlexSteel Acquisition and the 2021 offering of shares of our Class A common stock, excluding underwriting discounts and selling commissions. Fees and expenses related to the pending FlexSteel Acquisition shown for the three months ending September 30, 2022 were not previously included as an adjustment to net income. (3) Represents the increase or decrease in tax expense as though Cactus, Inc. owned 100% of Cactus LLC at the beginning of the period, calculated as the difference in tax expense recorded during each period and what would have been recorded, adjusted for pre-tax items listed above, based on a corporate effective tax rate of 25.0% for the three and twelve months ended December 31, 2022, 25.0% for the three months ended September 30, 2022, and 27.0% for the three and twelve months ended December 31, 2021. (4) Reflects 60.8, 60.7, and 59.0 million weighted average shares of basic Class A common stock and 15.1, 15.2 and 16.7 million of additional shares for the three months ended December 31, 2022, September 30, 2022, and December 31, 2021, and 60.3 and 55.4 million weighted average shares of basic Class A common stock and 15.5 and 20.3 million of additional shares for the twelve months ended December 31, 2022 and December 31, 2021, respectively, as if the weighted average shares of Class B common stock were exchanged and canceled for Class A common stock at the beginning of the period, plus the effect of dilutive securities. Cactus, Inc. – Supplemental Information Reconciliation of GAAP to non-GAAP Financial Measures EBITDA, Adjusted EBITDA and Adjusted EBITDA margin (unaudited) EBITDA and Adjusted EBITDA are not measures of net income as determined by GAAP. EBITDA and Adjusted EBITDA are supplemental non-GAAP financial measures that are used by management and external users of the Company’s consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. Cactus defines EBITDA as net income excluding net interest, income tax and depreciation and amortization. Cactus defines Adjusted EBITDA as EBITDA excluding the other items outlined below. Cactus management believes EBITDA and Adjusted EBITDA are useful because they allow management to more effectively evaluate the Company’s operating performance and compare the results of its operations from period to period without regard to financing methods or capital structure, or other items that impact comparability of financial results from period to period. EBITDA and Adjusted EBITDA should not be considered as alternatives to, or more meaningful than, net income or any other measure as determined in accordance with GAAP. The Company’s computations of EBITDA and Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. Cactus defines Adjusted EBITDA margin as Adjusted EBITDA divided by Revenue. Cactus presents EBITDA, Adjusted EBITDA and Adjusted EBITDA margin because it believes they provide useful information regarding the factors and trends affecting the Company’s business. Three Months Ended Twelve Months Ended December 31, December 31, September 30, December 31, 2022 2022 2021 2022 2021 ($ in thousands) ($ in thousands) Net income $ 40,739 $ 41,520 $ 20,383 $ 145,122 $ 67,470 Interest (income) expense, net (2,370 ) (1,140 ) 142 (3,714 ) 774 Income tax expense 7,932 12,041 7,089 31,430 7,675 Depreciation and amortization 8,133 8,399 8,828 34,124 36,308 EBITDA 54,434 60,820 36,442 206,962 112,227 Other non-operating (income) expense(1) 1,920 (1,125 ) (1,902 ) 1,910 (898 ) Transaction related expenses(2) 7,442 980 — 8,422 406 Stock-based compensation 2,597 3,018 2,074 10,631 8,620 Adjusted EBITDA $ 66,393 $ 63,693 $ 36,614 $ 227,925 $ 120,355 Revenue $ 187,774 $ 184,481 $ 129,916 $ 688,369 $ 438,589 Net income margin 21.7 % 22.5 % 15.7 % 21.1 % 15.4 % Adjusted EBITDA margin 35.4 % 34.5 % 28.2 % 33.1 % 27.4 % (1) Represents non-cash adjustments for the revaluation of the liability related to the tax receivable agreement. (2) Reflects fees and expenses recorded in connection with the pending FlexSteel Acquisition and the 2021 offering of shares of our Class A common stock, excluding underwriting discounts and selling commissions. Fees and expenses related to the pending FlexSteel Acquisition shown for the three months ended September 30, 2022 were not previously included as an adjustment to Adjusted EBITDA. Cactus, Inc. – Supplemental Information Depreciation and Amortization by Category (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, September 30, December 31, 2022 2022 2021 2022 2021 (in thousands) (in thousands) Cost of product revenue $ 783 $ 740 $ 758 $ 3,022 $ 3,176 Cost of rental revenue 5,442 5,802 6,272 23,663 25,812 Cost of field service and other revenue 1,773 1,738 1,705 6,986 6,863 Selling, general and administrative expenses 135 119 93 453 457 Total depreciation and amortization $ 8,133 $ 8,399 $ 8,828 $ 34,124 $ 36,308 Cactus, Inc. – Supplemental Information Estimated Market Share (unaudited) Market share represents the average number of active U.S. onshore rigs Cactus followed (which Cactus defines as the number of active U.S. onshore drilling rigs to which it was the primary provider of wellhead products and corresponding services during drilling) as of mid-month for each of the three months in the applicable quarter divided by the Baker Hughes U.S. onshore rig count quarterly average. Cactus believes that comparing the total number of active U.S. onshore rigs to which it was providing its products and services at a given time to the number of active U.S. onshore rigs during the same period provides Cactus with a reasonable approximation of its market share with respect to wellhead products sold and the corresponding services it provides. Three Months Ended December 31, September 30, December 31, 2022 2022 2021 Cactus U.S. onshore rigs followed 304 285 228 Baker Hughes U.S. onshore rig count quarterly average 757 741 543 Market share 40.2 % 38.5 % 42.0 % View source version on businesswire.com: https://www.businesswire.com/news/home/20230222005970/en/Contacts Cactus, Inc. John Fitzgerald, 713-904-4655 Director of Corporate Development and Investor Relations IR@CactusWHD.com
Cactus, Inc. (NYSE: WHD) (“Cactus” or the “Company”) today announced financial and operating results for the fourth quarter and full year 2022. Fourth Quarter 2022 Highlights and Recent Events Revenue of $187.8 million and income from operations of $48.2 million; Net income of $40.7 million(1) and diluted earnings per Class A share of $0.50(1); Adjusted net income(3) of $43.5 million and diluted earnings per share, as adjusted(3) of $0.57; Net income margin of 21.7% and adjusted net income margin(3) of 23.2%; Adjusted EBITDA(4) and Adjusted EBITDA margin(4) of $66.4 million and 35.4%, respectively; Cash flow from operations of $39.3 million; Cash balance of $344.5 million with no bank debt outstanding as of December 31, 2022; Signed agreement to acquire HighRidge Resources, Inc. (“FlexSteel”); In January 2023, the Board of Directors (the “Board”) declared a quarterly cash dividend of $0.11 per Class A share; and In January 2023, Cactus closed an underwritten offering of Class A common stock for net proceeds of $165.6 million. Financial Summary Three Months Ended Twelve Months Ended December 31, September 30, December 31, December 31, December 31, 2022 2022 2021 2022 2021 ($ in thousands) ($ in thousands) Revenues $ 187,774 $ 184,481 $ 129,916 $ 688,369 $ 438,589 Income from operations $ 48,221 $ 51,296 $ 25,712 $ 174,748 $ 75,427 Net income(1)(2) $ 40,739 $ 41,520 $ 20,383 $ 145,122 $ 67,470 Net income margin 21.7 % 22.5 % 15.7 % 21.1 % 15.4 % Adjusted net income(3) $ 43,525 $ 40,062 $ 18,666 $ 140,163 $ 54,497 Adjusted net income margin(3) 23.2 % 21.7 % 14.4 % 20.4 % 12.4 % Adjusted EBITDA(4) $ 66,393 $ 63,693 $ 36,614 $ 227,925 $ 120,355 Adjusted EBITDA margin(4) 35.4 % 34.5 % 28.2 % 33.1 % 27.4 % (1) Net income during the fourth quarter of 2022 is inclusive of $7.4 million in expenses associated with the pending acquisition of FlexSteel (the “FlexSteel Acquisition”), $1.9 million in expense related to the revaluation of the tax receivable agreement (“TRA”) liability and a $1.8 million income tax benefit related to the revaluation of our deferred tax asset. Net income during the third quarter of 2022 is inclusive of $1.0 million in expenses associated with the pending FlexSteel Acquisition, $1.1 million in other income related to the revaluation of the TRA liability and $1.1 million of income tax expense related to the revaluation of our deferred tax asset. Net income during the fourth quarter of 2021 is inclusive of $1.9 million in other income related to the revaluation of the TRA liability as well as $1.3 million of income tax expense related to the revaluation of our deferred tax asset. (2) Net income for the full year 2022 is inclusive of $8.4 million in expenses associated with the pending FlexSteel Acquisition, $1.9 million in expense related to the revaluation of the TRA liability and $5.0 million of net income tax benefits associated with various non-routine items primarily comprised of benefits associated with stock-based compensation and the revaluation of our deferred tax asset. Net income for the full year 2021 is inclusive of $0.9 million in additional income related to the revaluation of the TRA liability, $0.4 million in offering related expenses and $8.6 million in net tax benefits associated with various non-routine items, primarily a partial release of a valuation allowance. (3) Adjusted net income, Adjusted net income margin and diluted earnings per share, as adjusted are non-GAAP financial measures. These figures assume Cactus, Inc. held all units in Cactus Wellhead, LLC (“Cactus LLC”), its operating subsidiary, at the beginning of the period. Additional information regarding non-GAAP measures and the reconciliation of GAAP to non-GAAP financial measures are in the Supplemental Information tables. (4) Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See definition of these measures and the reconciliation of GAAP to non-GAAP financial measures in the Supplemental Information tables. Scott Bender, President and CEO of Cactus, commented, “I am extremely proud of the Cactus team and our execution during the fourth quarter, which enabled us to deliver the highest recorded Adjusted EBITDA in Company history. In our Product revenue category, market share(1) increased to over 40% as rigs followed were up approximately 7% from the third quarter of 2022. Margins increased across all of our revenue categories during the period, showcasing our organization's continued focus on customer service and cost management. “Looking ahead to the first quarter of 2023, we anticipate continued revenue growth. While the overall level of U.S. onshore drilling activity has waned in recent months, we expect another increase in Cactus’ rigs followed during the first quarter. Since the second half of 2022, larger, well capitalized operators have increased activity, which has typically been a positive sign for Cactus. Additionally, our working capital outflows should meaningfully decline during early 2023. Mr. Bender concluded, “Regarding the pending FlexSteel Acquisition, we remain extremely excited about bringing this high-quality and differentiated business into Cactus. Significant progress around permanent financing for the transaction has been made and closing is on-track to occur during the first quarter. Following closing, we plan to share additional details regarding our near-term expectations for the combined business. The FlexSteel Acquisition represents a significant opportunity for Cactus. We believe our general operating philosophy, which is a focus on margins, returns and generating value for our shareholders, will enhance the FlexSteel business.” (1) Additional information regarding market share and rigs followed is located in the Supplemental Information tables. Revenue Categories Product Three Months Ended December 31, September 30, December 31, 2022 2022 2021 ($ in thousands) Product revenue $ 124,561 $ 121,782 $ 83,771 Gross profit $ 50,529 $ 48,035 $ 29,017 Gross margin 40.6 % 39.4 % 34.6 % Fourth quarter 2022 product revenue increased $2.8 million, or 2.3%, sequentially, as sales of wellhead and production related equipment improved primarily due to higher customer drilling activity. Gross profit increased $2.5 million, or 5.2%, sequentially, with margins increasing 120 basis points driven largely by operating leverage and lower branch costs in relation to revenue generated. Rental Three Months Ended December 31, September 30, December 31, 2022 2022 2021 ($ in thousands) Rental revenue $ 27,310 $ 27,105 $ 19,225 Gross profit (loss) $ 12,013 $ 10,782 $ 4,672 Gross margin 44.0 % 39.8 % 24.3 % Fourth quarter 2022 rental revenue increased $0.2 million, or 0.8%, sequentially, due to higher international revenue generation. Gross profit increased $1.2 million sequentially and margins improved by 420 basis points due largely to better asset management, lower repair costs and declining depreciation expense. Field Service and Other Three Months Ended December 31, September 30, December 31, 2022 2022 2021 ($ in thousands) Field service and other revenue $ 35,903 $ 35,594 $ 26,920 Gross profit $ 8,575 $ 8,449 $ 4,884 Gross margin 23.9 % 23.7 % 18.1 % Fourth quarter 2022 field service and other revenue increased $0.3 million, or 0.9%, sequentially, due to improved revenue mix and increased ancillary services activity. Gross profit increased $0.1 million, or 1.5%, sequentially, with margins increasing by 20 basis points due to lower supplies costs and branch related expenses, which offset higher labor costs during the period. Selling, General and Administrative Expenses (“SG&A”) SG&A for the fourth quarter of 2022 was $22.9 million (12.2% of revenues), compared to $16.0 million (8.7% of revenues) for the third quarter of 2022 and $12.9 million (9.9% of revenues) for the fourth quarter of 2021. The sequential increase was due primarily to higher fees and expenses associated with the pending FlexSteel Acquisition. Liquidity, Capital Expenditures and Other As of December 31, 2022, the Company had $344.5 million of cash and no bank debt outstanding. Operating cash flow was $39.3 million for the fourth quarter of 2022. During the fourth quarter, the Company made dividend payments and associated distributions of $8.4 million. Net cash used in investing activities represented $6.0 million during the fourth quarter of 2022. Net capital expenditures for the full year 2022 were $25.5 million. For the full year 2023, the Company expects net capital expenditures to be in the range of $35 million to $45 million, inclusive of capital directed toward international expansion and the potential purchase of a currently leased facility, but exclusive of capital expenditures associated with the FlexSteel business. On January 13, 2023, Cactus closed an underwritten offering of 3,224,300 shares of its Class A common stock for total net proceeds of approximately $166 million, net of underwriting discounts and selling commissions. The net proceeds from the sale of the Class A common stock in the offering are expected to be utilized to fund a portion of the initial closing price for the pending FlexSteel Acquisition. As of January 31, 2023, Cactus had 64,127,114 shares of Class A common stock outstanding (representing 81.1% of the total voting power) and 14,978,225 shares of Class B common stock outstanding (representing 18.9% of the total voting power). Quarterly Dividend In January 2023 the Board approved a quarterly cash dividend of $0.11 per share of Class A common stock with payment to occur on March 16, 2023 to holders of record of Class A common stock at the close of business on February 27, 2023. A corresponding distribution of up to $0.11 per CW Unit has also been approved for holders of CW Units of Cactus Wellhead, LLC. Conference Call Details The Company will host a conference call to discuss financial and operational results on Thursday, February 23, 2023 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time). The call will be webcast on Cactus’ website at www.CactusWHD.com. Please access the webcast for the call at least 10 minutes ahead of the start time to ensure a proper connection. Analysts and institutional investors may click here to pre-register for the conference call and obtain a dial-in number and passcode. An archived webcast of the conference call will be available on the Company’s website shortly after the end of the call. About Cactus, Inc. Cactus designs, manufactures, sells and rents a range of highly engineered wellhead and pressure control equipment. Its products are sold and rented principally for onshore unconventional oil and gas wells and are utilized during the drilling, completion and production phases of its customers’ wells. In addition, it provides field services for all its products and rental items to assist with the installation, maintenance and handling of the wellhead and pressure control equipment. Cactus operates service centers throughout the United States and Australia, while also providing equipment and services in select international markets. Cautionary Statement Concerning Forward-Looking Statements Certain statements contained in this press release and oral statements made regarding the matters addressed in this release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Cactus’ control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology including “may,” “believe,” “expect,” “intend,” “anticipate,” “estimate,” “continue,” “potential,” “will,” “hope” or other similar words and include the Company’s expectation of future performance contained herein. These statements discuss future expectations, contain projections of results of operations or of financial condition, or state other “forward-looking” information. You are cautioned not to place undue reliance on any forward-looking statements, which can be affected by assumptions used or by risks or uncertainties, including unanticipated challenges relating to the pending FlexSteel Acquisition and related financing. Consequently, no forward-looking statements can be guaranteed. When considering these forward-looking statements, you should keep in mind the risk factors and other factors noted in the Company’s Annual Report on Form 10-K, any Quarterly Reports on Form 10-Q and the other documents that the Company files with the Securities and Exchange Commission. The risk factors and other factors noted therein could cause actual results to differ materially from those contained in any forward-looking statement. Cactus disclaims any duty to update and does not intend to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release. Cactus, Inc. Condensed Consolidated Statements of Income (unaudited) Three Months Ended December 31, Twelve Months Ended December 31, 2022 2021 2022 2021 (in thousands, except per share data) Revenues Product revenue $ 124,561 $ 83,771 $ 452,615 $ 280,907 Rental revenue 27,310 19,225 100,453 61,629 Field service and other revenue 35,903 26,920 135,301 96,053 Total revenues 187,774 129,916 688,369 438,589 Costs and expenses Cost of product revenue 74,032 54,754 277,871 189,083 Cost of rental revenue 15,297 14,553 62,037 54,377 Cost of field service and other revenue 27,328 22,036 106,013 73,681 Selling, general and administrative expenses 22,896 12,861 67,700 46,021 Total costs and expenses 139,553 104,204 513,621 363,162 Income from operations 48,221 25,712 174,748 75,427 Interest (expense) income, net 2,370 (142 ) 3,714 (774 ) Other income (expense), net (1,920 ) 1,902 (1,910 ) 492 Income before income taxes 48,671 27,472 176,552 75,145 Income tax expense 7,932 7,089 31,430 7,675 Net income $ 40,739 $ 20,383 $ 145,122 $ 67,470 Less: net income attributable to non-controlling interest 9,750 5,359 34,948 17,877 Net income attributable to Cactus, Inc. $ 30,989 $ 15,024 $ 110,174 $ 49,593 Earnings per Class A share - basic $ 0.51 $ 0.25 $ 1.83 $ 0.90 Earnings per Class A share - diluted (a) $ 0.50 $ 0.25 $ 1.80 $ 0.83 Weighted average shares outstanding - basic 60,797 58,988 60,323 55,398 Weighted average shares outstanding - diluted (a) 76,410 76,148 76,337 76,107 (a) Dilution for the three and twelve months ended December 31, 2022 includes an additional $10.1 million and $36.3 million of pre-tax income attributable to non-controlling interest adjusted for a corporate effective tax rate of 25.0% and 15.1 million and 15.5 million weighted average shares of Class B common stock, respectively, plus the effect of dilutive securities. Dilution for the three and twelve months ended December 31, 2021 includes an additional $5.6 million and $18.8 million of pre-tax income attributable to non-controlling interest adjusted for a corporate effective tax rate of 27.0% and 16.7 million and 20.3 million weighted average shares of Class B common stock, respectively, plus the effect of dilutive securities. Cactus, Inc. Condensed Consolidated Balance Sheets (unaudited) December 31, 2022 2021 (in thousands) Assets Current assets Cash and cash equivalents $ 344,527 $ 301,669 Accounts receivable, net 138,268 89,205 Inventories 161,283 119,817 Prepaid expenses and other current assets 10,564 7,794 Total current assets 654,642 518,485 Property and equipment, net 129,998 129,117 Operating lease right-of-use assets, net 23,183 22,538 Goodwill 7,824 7,824 Deferred tax asset, net 301,644 303,074 Other noncurrent assets 1,605 1,040 Total assets $ 1,118,896 $ 982,078 Liabilities and Equity Current liabilities Accounts payable $ 47,776 $ 42,818 Accrued expenses and other current liabilities 30,619 28,240 Current portion of liability related to tax receivable agreement 27,544 11,769 Finance lease obligations, current portion 5,933 4,867 Operating lease liabilities, current portion 4,777 4,880 Total current liabilities 116,649 92,574 Deferred tax liability, net 1,966 1,172 Liability related to tax receivable agreement, net of current portion 265,025 269,838 Finance lease obligations, net of current portion 6,436 5,811 Operating lease liabilities, net of current portion 18,375 17,650 Total liabilities 408,451 387,045 Equity 710,445 595,033 Total liabilities and equity $ 1,118,896 $ 982,078 Cactus, Inc. Condensed Consolidated Statements of Cash Flows (unaudited) Twelve Months Ended December 31, 2022 2021 (in thousands) Cash flows from operating activities Net income $ 145,122 $ 67,470 Reconciliation of net income to net cash provided by operating activities Depreciation and amortization 34,124 36,308 Deferred financing cost amortization 165 168 Stock-based compensation 10,631 8,620 Provision for expected credit losses 406 310 Inventory obsolescence 2,739 3,490 Gain on disposal of assets (1,391 ) (1,386 ) Deferred income taxes 25,299 4,829 (Gain) loss from revaluation of liability related to tax receivable agreement 1,910 (898 ) Changes in operating assets and liabilities: Accounts receivable (49,349 ) (45,492 ) Inventories (44,891 ) (36,083 ) Prepaid expenses and other assets (3,108 ) (2,789 ) Accounts payable 5,803 22,281 Accrued expenses and other liabilities 2,090 16,628 Payments pursuant to tax receivable agreement (11,666 ) (9,697 ) Net cash provided by operating activities 117,884 63,759 Cash flows from investing activities Capital expenditures and other (28,291 ) (13,939 ) Proceeds from sale of assets 2,755 2,306 Net cash used in investing activities (25,536 ) (11,633 ) Cash flows from financing activities Payment of deferred financing costs (353 ) — Payments on finance leases (6,055 ) (5,205 ) Dividends paid to Class A common stock shareholders (26,719 ) (21,158 ) Distributions to members (9,692 ) (9,742 ) Repurchase of shares (4,563 ) (3,283 ) Net cash used in financing activities (47,382 ) (39,388 ) Effect of exchange rate changes on cash and cash equivalents (2,108 ) 272 Net increase in cash and cash equivalents 42,858 13,010 Cash and cash equivalents Beginning of period 301,669 288,659 End of period $ 344,527 $ 301,669 Cactus, Inc. – Supplemental Information Reconciliation of GAAP to non-GAAP Financial Measures Adjusted net income, diluted earnings per share, as adjusted and adjusted net income margin (unaudited) Adjusted net income and diluted earnings per share, as adjusted are not measures of net income as determined by GAAP. Adjusted net income and diluted earnings per share, as adjusted are supplemental non-GAAP financial measures that are used by management and external users of the Company’s consolidated financial statements. Cactus defines adjusted net income as net income assuming Cactus, Inc. held all units in Cactus LLC, its operating subsidiary, at the beginning of the period, with the resulting additional income tax expense related to the incremental income attributable to Cactus, Inc. Adjusted net income also includes certain other adjustments described below. Cactus defines diluted earnings per share, as adjusted as Adjusted net income divided by weighted average shares outstanding, as adjusted. Cactus defines Adjusted net income margin as Adjusted net income divided by Revenue. The Company believes this supplemental information is useful for evaluating performance period over period. Three Months Ended Twelve Months Ended December 31, December 31, September 30, December 31, 2022 2022 2021 2022 2021 ($ in thousands, except per share data) Net income $ 40,739 $ 41,520 $ 20,383 $ 145,122 $ 67,470 Adjustments: Other non-operating (income) expense, pre-tax(1) 1,920 (1,125 ) (1,902 ) 1,910 (898 ) Transaction related expenses, pre-tax(2) 7,442 980 — 8,422 406 Income tax expense differential(3) (6,576 ) (1,313 ) 185 (15,291 ) (12,481 ) Adjusted net income $ 43,525 $ 40,062 $ 18,666 $ 140,163 $ 54,497 Diluted earnings per share, as adjusted $ 0.57 $ 0.52 $ 0.25 $ 1.84 $ 0.72 Weighted average shares outstanding, as adjusted(4) 76,410 76,319 76,148 76,337 76,107 Revenue $ 187,774 $ 184,481 $ 129,916 $ 688,369 $ 438,589 Net income margin 21.7 % 22.5 % 15.7 % 21.1 % 15.4 % Adjusted net income margin 23.2 % 21.7 % 14.4 % 20.4 % 12.4 % (1) Represents non-cash adjustments for the revaluation of the liability related to the tax receivable agreement. (2) Reflects fees and expenses recorded in connection with the pending FlexSteel Acquisition and the 2021 offering of shares of our Class A common stock, excluding underwriting discounts and selling commissions. Fees and expenses related to the pending FlexSteel Acquisition shown for the three months ending September 30, 2022 were not previously included as an adjustment to net income. (3) Represents the increase or decrease in tax expense as though Cactus, Inc. owned 100% of Cactus LLC at the beginning of the period, calculated as the difference in tax expense recorded during each period and what would have been recorded, adjusted for pre-tax items listed above, based on a corporate effective tax rate of 25.0% for the three and twelve months ended December 31, 2022, 25.0% for the three months ended September 30, 2022, and 27.0% for the three and twelve months ended December 31, 2021. (4) Reflects 60.8, 60.7, and 59.0 million weighted average shares of basic Class A common stock and 15.1, 15.2 and 16.7 million of additional shares for the three months ended December 31, 2022, September 30, 2022, and December 31, 2021, and 60.3 and 55.4 million weighted average shares of basic Class A common stock and 15.5 and 20.3 million of additional shares for the twelve months ended December 31, 2022 and December 31, 2021, respectively, as if the weighted average shares of Class B common stock were exchanged and canceled for Class A common stock at the beginning of the period, plus the effect of dilutive securities. Cactus, Inc. – Supplemental Information Reconciliation of GAAP to non-GAAP Financial Measures EBITDA, Adjusted EBITDA and Adjusted EBITDA margin (unaudited) EBITDA and Adjusted EBITDA are not measures of net income as determined by GAAP. EBITDA and Adjusted EBITDA are supplemental non-GAAP financial measures that are used by management and external users of the Company’s consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. Cactus defines EBITDA as net income excluding net interest, income tax and depreciation and amortization. Cactus defines Adjusted EBITDA as EBITDA excluding the other items outlined below. Cactus management believes EBITDA and Adjusted EBITDA are useful because they allow management to more effectively evaluate the Company’s operating performance and compare the results of its operations from period to period without regard to financing methods or capital structure, or other items that impact comparability of financial results from period to period. EBITDA and Adjusted EBITDA should not be considered as alternatives to, or more meaningful than, net income or any other measure as determined in accordance with GAAP. The Company’s computations of EBITDA and Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. Cactus defines Adjusted EBITDA margin as Adjusted EBITDA divided by Revenue. Cactus presents EBITDA, Adjusted EBITDA and Adjusted EBITDA margin because it believes they provide useful information regarding the factors and trends affecting the Company’s business. Three Months Ended Twelve Months Ended December 31, December 31, September 30, December 31, 2022 2022 2021 2022 2021 ($ in thousands) ($ in thousands) Net income $ 40,739 $ 41,520 $ 20,383 $ 145,122 $ 67,470 Interest (income) expense, net (2,370 ) (1,140 ) 142 (3,714 ) 774 Income tax expense 7,932 12,041 7,089 31,430 7,675 Depreciation and amortization 8,133 8,399 8,828 34,124 36,308 EBITDA 54,434 60,820 36,442 206,962 112,227 Other non-operating (income) expense(1) 1,920 (1,125 ) (1,902 ) 1,910 (898 ) Transaction related expenses(2) 7,442 980 — 8,422 406 Stock-based compensation 2,597 3,018 2,074 10,631 8,620 Adjusted EBITDA $ 66,393 $ 63,693 $ 36,614 $ 227,925 $ 120,355 Revenue $ 187,774 $ 184,481 $ 129,916 $ 688,369 $ 438,589 Net income margin 21.7 % 22.5 % 15.7 % 21.1 % 15.4 % Adjusted EBITDA margin 35.4 % 34.5 % 28.2 % 33.1 % 27.4 % (1) Represents non-cash adjustments for the revaluation of the liability related to the tax receivable agreement. (2) Reflects fees and expenses recorded in connection with the pending FlexSteel Acquisition and the 2021 offering of shares of our Class A common stock, excluding underwriting discounts and selling commissions. Fees and expenses related to the pending FlexSteel Acquisition shown for the three months ended September 30, 2022 were not previously included as an adjustment to Adjusted EBITDA. Cactus, Inc. – Supplemental Information Depreciation and Amortization by Category (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, September 30, December 31, 2022 2022 2021 2022 2021 (in thousands) (in thousands) Cost of product revenue $ 783 $ 740 $ 758 $ 3,022 $ 3,176 Cost of rental revenue 5,442 5,802 6,272 23,663 25,812 Cost of field service and other revenue 1,773 1,738 1,705 6,986 6,863 Selling, general and administrative expenses 135 119 93 453 457 Total depreciation and amortization $ 8,133 $ 8,399 $ 8,828 $ 34,124 $ 36,308 Cactus, Inc. – Supplemental Information Estimated Market Share (unaudited) Market share represents the average number of active U.S. onshore rigs Cactus followed (which Cactus defines as the number of active U.S. onshore drilling rigs to which it was the primary provider of wellhead products and corresponding services during drilling) as of mid-month for each of the three months in the applicable quarter divided by the Baker Hughes U.S. onshore rig count quarterly average. Cactus believes that comparing the total number of active U.S. onshore rigs to which it was providing its products and services at a given time to the number of active U.S. onshore rigs during the same period provides Cactus with a reasonable approximation of its market share with respect to wellhead products sold and the corresponding services it provides. Three Months Ended December 31, September 30, December 31, 2022 2022 2021 Cactus U.S. onshore rigs followed 304 285 228 Baker Hughes U.S. onshore rig count quarterly average 757 741 543 Market share 40.2 % 38.5 % 42.0 % View source version on businesswire.com: https://www.businesswire.com/news/home/20230222005970/en/
Cactus, Inc. John Fitzgerald, 713-904-4655 Director of Corporate Development and Investor Relations IR@CactusWHD.com