Cactus, Inc. Class A Common Stock · NYSE:WHD
Cactus, Inc. Class A Common Stock — Investor Presentation (March 2024)
26 slides from Cactus, Inc. Class A Common Stock's investor presentation, Mar 18, 2024
Slide 1: Investor Presentation Cactus, Inc. March 2024
Investor Presentation Cactus, Inc. (NYSE: WHD) March 2024 Exhibit 99.1
Slide 2: Non-GAAP Measures
2 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 Adjusted EBITDA to ne
Slide 3: Management team biographies
3 ◼ 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. ◼ Mr. Bender successfully built and monet
Slide 4: Investment Highlights
4 Experienced Management Team with Significant Equity Ownership & Strong Industry Relationships Innovative and Differentiated Products & Services that Sustain Relative Margin Resilience A Leading Pure Play Equipment Solutions Provider for Onshore Markets Strong Margins and Free Cash Flow Generation
Slide 5: Products & Operations Overview
5 Products & Operations Overview Cactus designs, manufactures, sells and rents highly engineered products which generate improved drilling, completion and production efficiencies while enhancing safety 33.4% Margin 37.1% Margin Wellhead systems Production trees Spoolable pipe Frac Stacks Completion
Slide 6: Historical Financial Overview
6 39% 36% 35% 27% 33% 36% $757 $340 $544 $628 $349 $439 $688 $1,097 2018 2019 2020 2021 2022 2023 Revenue(1) ($ in millions) Historical Financial Overview Source: Company filings. Note: Historical financial data prior to March 2023 shown not inclusive of FlexSteel, which was acquired on Feb 28, 2023
Slide 7: Differentiated Margin Profile Through the Cycle
7 36% 21% 17% 12% 11% 11% 10% Peer C Peer A Peer E Peer D Peer B Peer F 34% 24% 20% 18% 13% 13% 12% Peer A Peer B Peer C Peer D Peer E Peer F Differentiated Margin Profile Through the Cycle Total Adjusted EBITDA Margin (2014 – 2023) (1)(2) Note: Historical Cactus data prior to February 28, 2023 not
Slide 8: SafeDrill Advantages
8 SafeDrill® Advantages Technologically Advanced Pad Drilling Wellhead Systems Eliminates time consuming BOP manipulation No waiting on cement after running casing strings - Mandrel hangers and pack offs run and set through BOPs Fewer trips into confined space (cellar) - No BOP manipulation aft
Slide 9: Technologically Advanced Spoolable Pipe Systems
9 Technologically Advanced Spoolable Pipe Systems Lower maintenance cost for operators Lower cost to install Reduces operating field failures / reinstallations Reduces need for special handling or bedding tools Captures permeated gases Higher flowrates Reliable in extreme conditions Durable
Slide 10: Spoolable Pipe Applications Across the Industry Value Chain
10 Spoolable Pipe Applications Across the Industry Value Chain Tank Battery Wellhead & Tree Midstream Sales Meter Refining / End Use Production Line Pipe Gathering Line Pipe Midstream / Takeaway Line Pipe Customer Diameter Typical Service E&P Small/Medium Multiphase production E&P Larger Oil / Gas /
Slide 11: Differentiated Offerings Enable Customers to Meet ESG-Related Goals
11 Differentiated Offerings Enable Customers to Meet ESG-Related Goals ◼ Equipment takes less time to install versus legacy offerings ◼ Enables customers to drill, complete and bring wells online faster ◼ Fewer people and less equipment on location ◼ Reduces carbon intensity per well ◼ Equipment enh
Slide 12: Operational Footprint
12 ◼ 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 repair services ◼ Located in all key producing basins ◼ Fl
Slide 13: Global Operations
13 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 tree sales in Middle East
Slide 14: A Dynamic Manufacturing Advantage
14 Bossier City Facility Suzhou Facility ◼ Rapid-response manufacturing ◼ 5-axis computer numerically controlled machines ◼ “Just-in-time” capabilities for fast delivery time & parachute orders ◼ Expanded in 2018 and 2022 ◼ Less time-sensitive, high-volume wellhead equipment ◼ Wholly foreign owned e
Slide 15: Management track record and ownership
15 Current ◼ Management is well incentivized as it owns over 18% of the business ◼ Performance-based stock compensation tied to Return on Capital Employed (“ROCE”) ◼ Management team has built the foundation of this company over more than four decades ◼ Track record of building and successfully monet
Slide 16: Margin and ROCE versus peers
16 FTI DRQ WEIR NCSM SBO OIS HTG FET NOV 0.0% 10.0% 20.0% 30.0% 40.0% (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 available annual data. Cactus’ computation of Adjusted EBITDA may not be comparable to other similarly ti
Slide 17: Share Price Performance of Cactus vs. the OSX since IPO
17 146% (40%) WHD OSX Share Price Performance of Cactus vs. the OSX since IPO Note: Data based on share price performance from 2/7/2018 to 3/12/2024. Cactus 2/7/2018 price set as IPO price of $19 per share. Source: Factset Share Price Outperformed the OSX in 4 of 6 years since IPO Execution Has Driv
Slide 18: Steadily Increasing Return of Capital Profile
18 $0 $10 $20 $30 $40 2018 2019 2020 2021 2022 2023 Cactus’ Dividends & Associated Distributions to Members Paid Since 2018 ($ in millions) Source: Company filings and annual reports. 1) Although we intend to continue paying the quarterly dividend at the current levels, Cactus' future dividend polic
Slide 19: Multiple Avenues of Growth for Spoolable Technologies
19 ◼ Growth In Core Production Products ◼ Transition from legacy offerings to spoolable technologies still underway ◼ Increase customer penetration for larger-diameter gathering-based technologies ◼ Expand customer penetration for under pad applications that connect to the wellhead ◼ Introduction of
Slide 20: Balance Sheet & Capital Summary
20 ◼ Year-end 2023 cash of approximately $134 million ◼ Approximately $216 million availability on revolving credit facility as of December 31, 2023 ◼ Full year 2024 net capital expenditure guidance of $45 to $55 million ◼ 2024 capital expenditure guidance driven by: ◼ ~$20 million for international
Slide 21: First Quarter Updates Outlook
21 ◼ Pressure Control Q1 2024 ◼ Revenue expected to be down mid-single digit percent versus Q4 2023 ◼ Expected Adjusted EBITDA margin of 33% - 35% ◼ Spoolable Technologies Q1 2024 ◼ Revenue expected to be up low single digit percent versus Q4 2023 ◼ Expected Adjusted EBITDA margin of 37 – 39% ◼ Expe
Slide 22: ESG and Governance
22 3 4 5 6 7 At IPO Current Independent Directors Environmental Social Governance ◼ Cactus, Inc. is committed to reducing its and its industry’s impact on the environment. We will continue to strive to improve our products over time and to initiate more projects and activities that will further redu
Slide 23: Appendix
Appendix
Slide 24: Ownership Profile and Organizational Structure
24 Public 82% Management, Board & Select Employees 18% Ownership Profile(4) Company Organizational Structure Source: Company filings. 1) As of March 12, 2024. Excludes effect of dilutive securities. 2) As of March 12, 2024. Market capitalization utilizes total shares outstanding. Our future dividend
Slide 25: EBITDA and Adjusted EBITDA Reconciliation
25 Year Ended ($ in thousands) December 31, 2023 2022 2021 2020 2019 2018 2017 2016 2015 Net income (loss) $214,840 $145,122 $67,470 $59,215 $156,303 $150,281 $66,547 ($8,176) $21,224 Interest expense (income), net 6,480 (3,714) 774 (701) (879) 3,595 20,767 20,233 21,837 Income tax expense 47,536 31
Slide 26: Investor Relations Contact
26 Alan Boyd Director of Corporate Development & Investor Relations 713-904-4669 IR@CactusWHD.com Investor Relations Contact