Cactus, Inc. Class A Common Stock · NYSE:WHD
Cactus, Inc. Class A Common Stock — Investor Presentation (May 2022)
30 slides from Cactus, Inc. Class A Common Stock's investor presentation, May 2022
Slide 1: Cactus, Inc. Presentation May 2022
Exhibit 99.1 Je actas: Inc: rresantaty May 2022
Slide 2: Important Disclosures
Important Disclosures Non-GAAP Measures This presentation includes references to EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, and EBIT, which are not measures calculated in accordance with accounting principles generally accepted in the United States of America (“GAAP”). A reconciliation of EBIT
Slide 3: Experienced Executive Team
Experienced Executive Team ◼ Mr. Bender has served as President and CEO since co-founding Cactus Wellhead, LLC (“Cactus LLC”) in 2011. ◼ Mr. Bender previously was President of Wood Group Pressure Control from 2000 to 2011. Scott Bender ◼ Mr. Bender successfully built and monetized Ingram Cactus Comp
Slide 4: Investment Highlights
Investment Highlights A Leading Pure Play Pressure Control Equipment 1 Solutions Provider for Onshore Markets Innovative and Differentiated Products & Services 2 that Sustain Relative Margin Resilience 3 Dynamic Operating and Manufacturing Capabilities Through-Cycle Outperformance 4 Returns Focused
Slide 5: Company Overview
Company Overview Cactus designs, manufactures, sells and rents highly engineered products which generate improved drilling and completions efficiencies while enhancing safety 2021 Revenue by Type Revenue ($ in millions) $628.4 $544.1 $583.6 Field $438.6 Service $341.2 $348.6 and Other 22% Rental 201
Slide 6: Proprietary Equipment Across Drilling, Completion, and Production Phases of a Well
Proprietary Equipment Across Drilling, Completion, and Production Phases of a Well Technologically advanced wellhead and frac solutions deliver greater reliability and time savings ◼ Designed for pad drilling and intense completion environments ◼ Principal products: SafeDrill® wellheads, frac relate
Slide 7: Market Leader with Strong Market Share Growth
Market Leader with Strong Market Share Growth Historical U.S. Onshore Market Share(1) 350 45.0% 41.8% 40.0% 300 Cactus Rigs Followed 272 270 34.8% (1) Market Share 35.0% 250 211 30.0% 29.5% 200 193 26.9% 25.0% 169 19.9% 24.8% 145 20.0% 150 110 109 15.0% 99 100 14.4% 61 10.0% 9.4% 50 6.4% 5.0% 15 0.8
Slide 8: Differentiated Margin Profile Through the Cycle
Differentiated Margin Profile Through the Cycle Total Adjusted EBITDA Margin (2014 – 2021) (1)(2) 2021 Adjusted EBITDA Margin (1)(2) 33% 27% 26% 22% 18% 18% 15% 14% 13% 13% 13% 9% 8% 7% 5% 4% Peer A Peer B Peer C Peer D Peer E Peer F Peer G Peer A Peer C Peer G Peer D Peer E Peer B Peer F Strength o
Slide 9: Technologically Advanced Pad Drilling Wellhead Systems
Technologically Advanced Pad Drilling Wellhead Systems Cactus SafeDrill® SafeDrill® Advantages Safety Time Savings Fewer trips into Eliminates time confined space (cellar) consuming BOP - manipulation No BOP manipulation No waiting on cement after intermediate after running casing casing has
Slide 10: Favorable Macro Trends Benefit Cactus
Favorable Macro Trends Benefit Cactus Improving Activity Environment Average Active U.S. Onshore Rigs(1) ◼ Recovery in energy demand driving 811 increased need for oil & gas production 700 ◼ Industry underinvestment in 2020 and 2021 driving potential multi-year growth in rig and 419 460 well counts
Slide 11: Unique Technologies Enhance Rental Business Value Proposition
Unique Technologies Enhance Rental Business Value Proposition ◼ High-end offerings attractive to customers focused on efficiency & reliability ◼ In-house design and manufacture of specialized equipment differentiates Cactus from industry peers ◼ Cactus equipment meaningfully reduces non- productive
Slide 12: Differentiated Offerings Enable Customers to Meet ESG-Related Goals
Differentiated Offerings Enable Customers to Meet ESG-Related Goals Faster Safer Cleaner ◼ Cactus enables customers to ◼ Cactus’ equipment increases ◼ Recently began deploying drill and complete wells faster employee safety by enabling: equipment allowing for: ◼ Translates to fewer rig and frac ◼ Au
Slide 13: Small Expenditures Can Have a Big Impact on Operators
Small Expenditures Can Have a Big Impact on Operators Cactus Value Proposition Components of Onshore Well Costs(1) ◼ Cactus offerings make up a Other relatively small portion of the 15% overall cost to drill & complete a well Completion 54% ◼ Efficiency and reliability can cause a disproportionate a
Slide 14: Flexible and Scalable Operating Footprint
Flexible and Scalable Operating Footprint U.S. Operations United States ◼ Service centers support field services and provide repair services Bossier City, Louisiana Manufacturing Facility ◼ Spread across all key producing basins ◼ Flexible cost structure at branches & Bossier City ◼ Ability to scale
Slide 15: A Dynamic Manufacturing Advantage; Responsive, Highly Scalable and Lower Cost
A Dynamic Manufacturing Advantage; Responsive, Highly Scalable and Lower Cost Responsive manufacturing in the U.S. supplemented by high volume production in China Bossier City Facility Suzhou Facility ◼ Rapid-response manufacturing of equipment ◼ Less time-sensitive, high-volume wellhead equipment ◼
Slide 16: Experienced and Well Aligned Management Team with Strong Industry Relationships
Experienced and Well Aligned Management Team with Strong Industry Relationships ◼ Management is well incentivized as it owns approximately 20% of the business ◼ Over 80% of executive compensation deemed “at risk” ◼ Performance-based stock compensation tied to Return on Capital Employed (“ROCE”) ◼ Ma
Slide 17: Well Established Relationships With High-Quality Customer Base
Well Established Relationships With High-Quality Customer Base 2021 Total Revenue by Customer Type 2021 Product Revenue by Customer Type 2021 Rental Revenue by Customer Type Majors Majors 8% 5% Majors Private 19% Private Private 27% 27% 29% SMID SMID SMID E&P E&P E&P 3% 4% 1% Large Large Large E&P E
Slide 18: Returns & Margins Have Outperformed Peers
Returns & Margins Have Outperformed Peers 2021 Adjusted EBITDA Margin (%) 40.0% 30.0% NCSM (1) SBO 20.0% FTI OIS WEIR NOV FET HTG 10.0% ROCE(2) 0.0% DRQ (2017 – 2021) (%) (10.0%) 0.0% 10.0% 20.0% 30.0% 40.0% Source: Company filings and Factset. Note: Adj. EBITDA Margins based on latest publicly avai
Slide 19: Execution Has Driven Equity Outperformance
Execution Has Driven Equity Outperformance Share Price Performance of Cactus vs. the OSX since IPO 157% 0% (45%) WHD OSX Share Price Outperformed the OSX in 2018, 2019, 2020 and 2021 Note: Data based on share price performance from 2/7/2018 to 5/5/2022.Cactus 2/7/2018 price set as IPO price of $19 p
Slide 20: History of Prudent Investment Strategy
History of Prudent Investment Strategy Goodwill, Intangible, Long-Lived & Other Asset Impairment Expenses ($mm) (2015 – 2021) ($mm) $10,597 $7,722 $1,000 $750 $664 $656 $500 $251 $250 $133 $37 $0 $- WHD Peer A Peer B Peer C Peer D Peer E Peer F Peer G Cactus Has Recorded Zero Impairment Charges Thro
Slide 21: Steadily Increasing Return of Capital Profile
Steadily Increasing Return of Capital Profile Dividends & Associated Distributions to Members Paid Since 2018 ($ in millions) $35 $- (1) 2018 2019 2020 2021 1Q 2022 Annualized Cactus Has Increased Shareholder Returns in Every Year Since Going Public Source: Company filings and annual reports. 1. Ann
Slide 22: Clean Balance Sheet & Low Capital Intensity
Clean Balance Sheet & Low Capital Intensity Adjusted EBITDA(1) – Net Capital Expenditures(2) ($ in Balance Sheet & Capital Summary millions) ◼ March 31, 2022 cash balance of approximately $173.1 $298 million $144.4 ◼ Full year 2022 net capital expenditure guidance $108.7 $102.9 of $20 million to $30
Slide 23: Recent Performance & Outlook
Recent Performance & Outlook First Quarter 2022 Performance ◼ Revenues up 12% sequentially ◼ Product market share(1) of 41% ◼ Adjusted EBITDA margin(2) increased to approximately 29% Outlook & Recent Developments ◼ Q2 2022 Product revenues expected to be up approximately 10% sequentially ◼ Rigs foll
Slide 24: Significant Growth Potential Through Geographic Expansion
Significant Growth Potential Through Geographic Expansion Percentage of 2021 Global Rig Count (Excluding Russia & Central Asia) 24% Countries where Cactus provided wellhead equipment prior to Areas of 2022 potential expansion 76% (1) U.S. & Australia Rest-of-World Cactus has not yet sold into region
Slide 25: Cactus Is Committed to ESG
Cactus Is Committed to ESG Environmental Social ◼ Cactus, Inc. is committed to reducing its impact on the ◼ Cactus, Inc. is dedicated to improving lives and protecting human environment. We will continue to strive to improve our rights. We seek to make the world a better place by encouraging environ
Slide 26: Appendix
Appendix y
Slide 27: Company Organizational Structure
Company Organizational Structure Company Profile Organizational Structure(1) Ticker WHD (NYSE) Class A Shares Outstanding(1) 60.5mm CW Unit Public Class B Shares Outstanding(1) 15.4mm Holders Investors Total Shares Outstanding(1) 75.9mm Market Capitalization(2) ~$3.7bn Class B Common Stock Class A C
Slide 28: Cactus Equipment Positioned on a Multi-Well Pad
Cactus Equipment Positioned on a Multi-Well Pad 1 2 3 4 1 4 3 1 1 Product Sold 2 Equipment Rented 3 Equipment Rented 4 Services Provided ▪ Wellheads are required ▪ Frac stacks are ▪ Zipper manifolds, mono- ▪ Assist with the by each well over connected to the bore flowline and remote installation, ma
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation Important Disclosure Regarding Non-GAAP Measures EBITDA and Adjusted EBITDA are not measures calculated in accordance with GAAP. EBITDA and Adjusted EBITDA are supplemental non-GAAP financial measures that are used by management and external users of our consolidated financia
Slide 30: Investor Relations Contact
Investor Relations Contact John Fitzgerald Director of Corporate Development & Investor Relations 713-904-4655 IR@CactusWHD.com 30