Cactus, Inc. Class A Common Stock · NYSE:WHD
Cactus, Inc. Class A Common Stock — Investor Presentation (May 2024)
26 slides from Cactus, Inc. Class A Common Stock's investor presentation, May 2024
Slide 1: Investor Presentation
Investor Presentation Cactus, Inc. (NYSE: WHD) May 2024
Slide 2: Important Disclosures
Important Disclosures Non-GAAP Measures This presentation includes references to EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin, which are not measures calculated in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Reconciliations of EBITDA and A
Slide 3: Experienced Executive Team
Experienced Executive Team ◼ Mr. Bender has served as Chairman and CEO since August 2023 and previously 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 ◼ M
Slide 4: Investment Highlights
Investment Highlights A Leading Pure Play Equipment Solutions Provider 1 for Onshore Markets Innovative and Differentiated Products & Services 2 that Sustain Relative Margin Resilience 3 Dynamic Operating and Manufacturing Capabilities Through-Cycle Outperformance 4 Strong Margins and Free Cash Flow
Slide 5: Products & Operations Overview
Products & Operations Overview Cactus designs, manufactures, sells and rents highly engineered products which generate improved drilling, completion and production efficiencies while enhancing safety Cactus Provides Service, 33.4% Margin 37.1% Margin Installation & Maintenance for its Wellhead syste
Slide 6: Historical Financial Overview
Historical Financial Overview Q1’24 Ann.(1) Rev. by Segment Revenue(1) ($ in millions) 10 months of Spoolable $1,097 $1,096 Technologies $340 $396 $628 $688 $439 $349 Spoolable $757 $700 Technologies 36% Pressure Control 2019 2020 2021 2022 2023 Q1 2024 Ann. 64% Adjusted EBITDA(1,2) ($ in millions)
Slide 7: Differentiated Margin Profile Through the Cycle
Differentiated Margin Profile Through the Cycle Total Adjusted EBITDA Margin (2014 – 2023) (1)(2) 2023 Adjusted EBITDA Margin (1)(2) 36% 34% 24% 21% 20% 18% 17% 13% 13% 12% 12% 11% 11% 10% Peer A Peer B Peer C Peer D Peer E Peer F Peer C Peer A Peer E Peer D Peer B Peer F Strength of margin profile
Slide 8: 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 9: Technologically Advanced Spoolable Pipe Systems
Technologically Advanced Spoolable Pipe Systems FlexSteel Spoolable Pipe FlexSteel Advantages Features Operator Savings Durable and corrosion- Lower maintenance cost resistant for operators Faster installation times Lower cost to install Withstands cyclic Reduces operating field loading
Slide 10: Spoolable Pipe Applications Across the Industry Value Chain
Spoolable Pipe Applications Across the Industry Value Chain Midstream Refining / Tank Battery Sales Meter End Use Midstream / Wellhead & Production Gathering Takeaway Tree Line Pipe Line Pipe Line Pipe Customer E&P E&P Midstream Diameter Small/Medium Larger Largest Typical Service Multiphase product
Slide 11: Differentiated Offerings Enable Customers to Meet ESG-Related Goals
Differentiated Offerings Enable Customers to Meet ESG-Related Goals Faster Safer Cleaner ◼ Equipment takes less time to ◼ Equipment enhances ◼ Switching from diesel to solar install versus legacy offerings employee safety powered generation in certain ◼ Enables customers to drill, ◼ Automation of hu
Slide 12: North American Operating Footprint
North American Operating Footprint Operational Footprint ◼ Headquarters located in Houston, TX ◼ U.S. manufacturing facilities located in Bossier City, LA and Baytown, TX ◼ Significant overlap in Cactus and FlexSteel service centers & yards ◼ Service centers support field operations and provide repa
Slide 13: Global Operating Footprint
Global Operating Footprint Global Operations ◼ Manufacturing facilities located in the U.S.A and China ◼ Established legacy business in Australia ◼ Cactus started to provide rental equipment in the Middle East in late 2021 ◼ Approved as vendor in key Middle East markets ◼ First wellhead/production t
Slide 14: A Dynamic Manufacturing Advantage; Responsive, Scalable and Low Cost
A Dynamic Manufacturing Advantage; Responsive, Scalable and Low Cost Bossier City Facility Suzhou Facility Baytown Facility ◼ Rapid-response manufacturing ◼ Less time-sensitive, high-volume ◼ Produces 100% of FlexSteel wellhead equipment equipment ◼ 5-axis computer numerically controlled machines ◼
Slide 15: 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 17% of the business ◼ Performance-based stock compensation tied to Return on Capital Employed (“ROCE”) ◼ Management team has built the foundation of this company
Slide 16: Returns & Margins Have Outperformed Peers
Returns & Margins Have Outperformed Peers 2023 Adjusted EBITDA Margin (%) 40.0% (1) 30.0% NCSM SBO 20.0% FTI OIS WEIR NOV FET HTG 10.0% ROCE(2) 0.0% DRQ (2017 – 2023) (%) (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 17: Execution Has Driven Equity Outperformance
Execution Has Driven Equity Outperformance Share Price Performance of Cactus vs. the OSX since IPO 171% 0% (39%) WHD OSX Share Price Outperformed the OSX in 4 of 6 years since IPO Note: Data based on share price performance from 2/7/2018 to 5/7/2024. Cactus 2/7/2018 price set as IPO price of $19 per
Slide 18: Steadily Increasing Return of Capital Profile
Steadily Increasing Return of Capital Profile Cactus’ Dividends & Associated Distributions to Members Paid Since 2018 ($ in millions) $40 Announced inaugural share repurchase program in June 2023 and 9% quarterly dividend increase in August 2023 $30 $20 $10 $0 (1) 2018 2019 2020 2021 2022 2023 Cactu
Slide 19: Multiple Avenues of Growth for Spoolable Technologies
Multiple Avenues of Growth for Spoolable Technologies Growth in Core Production Products ◼ Market transition from traditional stick steel line pipe to spoolable products still in early stages ◼ Increase customer penetration for larger diameter gathering-focused products ◼ Expand customer penetration
Slide 20: Strong Balance Sheet & Low Capital Intensity
Strong Balance Sheet & Low Capital Intensity Balance Sheet & Capital Summary Adjusted EBITDA – Net Capital Expenditures ($ in millions)(1)(2) ◼ Q1 2024 cash of approximately $194 million $359 ◼ Approximately $217 million availability on revolving credit facility as of March 31, 2024 $202 $173 ◼ Full
Slide 21: Second Quarter Outlook
Second Quarter Outlook Outlook ◼ Affirming prior guide provided on the first quarter conference call in May 2024 ◼ Pressure Control Q2 2024 ◼ Revenue expected to be relatively flat versus Q1 2024 ◼ Expected Adjusted EBITDA margin of 33% – 35% ◼ Spoolable Technologies Q2 2024 ◼ Revenue expected to be
Slide 22: Cactus Is Committed to ESG
Cactus Is Committed to ESG Environmental Social ◼ Cactus, Inc. is committed to reducing its and its industry’s impact on the ◼ Cactus, Inc. is dedicated to improving lives of our employees and the communities environment. We will continue to strive to improve our products over time and to where they
Slide 23: Appendix
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Slide 24: Company Organizational Structure
Company Organizational Structure Company Profile Organizational Structure(1) Ticker WHD (NYSE) Class A Shares Outstanding(1) ~66mm CC Unit Public Class B Shares Outstanding(1) ~14mm Holders Investors Total Shares Outstanding(1) ~80mm Market Capitalization(2) ~$4.1bn Class B Common Stock Class A Comm
Slide 25: 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 26: Investor Relations Contact
Investor Relations Contact Alan Boyd Director of Corporate Development & Investor Relations 713-904-4669 IR@CactusWHD.com 26