Cactus, Inc. Class A Common Stock · NYSE:WHD
Cactus, Inc. Class A Common Stock — Investor Presentation (June 2018)
21 slides from Cactus, Inc. Class A Common Stock's investor presentation, Jun 18, 2018
Slide 1: Important Disclosures
Important Disclosures Non-GAAP Measures This presentation includes references to EBITDA, Adjusted EBITDA and EBIT, which are not measures calculated in accordance with accounting principles generally accepted in the United States of America (“GAAP”). A reconciliation of EBITDA, Adjusted EBITDA and E
Slide 2: Investment Highlights
Investment Highlights Delivering Significant Growth Across All Businesses In 2018 3 Highly Experienced Management and Operating 5Team with Strong Industry Relationships 4Substantial Cash Flow Generation 3Dynamic Manufacturing Capabilities Product Innovations and Execution Across 2Major Basins Leadin
Slide 3: Company Overview
Company Overview Quarter Ended March 31, 2018 Operations Snapshot Revenue by Type(1) Selected Active Basins(2) Bakken DJ / Powder River Eagle Ford Marcellus / Utica Permian SCOOP / STACK * Field Service & Other, 24% Product, 51% Rental, 25% Q3 YTD Actual $236.4 Q3 YTD Actual $77.1 1) Product revenue
Slide 4: Continued Revenue Expansion Across All Businesses
Continued Revenue Expansion Across All Businesses Wellhead market share(1) averaged 26.4% in Q1 2018 versus an average of 22.7% in Q1 2017 Rental market share estimated to be below 10% as of Q1 2018 Future Growth: SafeDrill 4T Wellhead (Product) addresses the customer requirement to suspend more cas
Slide 5: Differentiated Equipment Across Drilling, Completion, and Production Phases of a Well
Differentiated Equipment Across Drilling, Completion, and Production Phases of a Well Designed for intense pad drilling and completion environments Principal products: SafeDrill™ wellheads, frac stacks, zipper manifolds, and production trees Time savings can exceed 30 hours of rig time per well Comp
Slide 6: Increasing Well Counts Drive Our Product Business
Increasing Well Counts Drive Our Product Business Total U.S. Onshore Wells Drilled Bakken Powder River Basin 24,679 Marcellus Utica DJ / Niobrara SCOOP / STACK Barnett Permian Haynesville Gulf Coast Eagle Ford 2016A 2017A 2018E Source: Spears and Associates May Report. Average Active U.S. Onshore Ri
Slide 7: Technically Advanced Pad Drilling Wellhead Systems
Technically Advanced Pad Drilling Wellhead Systems SafeDrillTM Advantage Conventional Wellhead Safety Reduced leak paths due to elimination of lock screws Time Savings Eliminates BOP Nipple up & Nipple down No waiting on cement No “hot work” required to cut casing with torch Quick connect BOP adapto
Slide 8: Increasing Completions Intensity Drives Our Largest Growth Opportunity
Increasing Completions Intensity Rental Business Drives Our Largest growth opportunity for Cactus Market share currently less than 10% (1) Less than 50% share of frac rentals for top 10 rental customers in Q1(1) Expanded capacity in Q1 2018 to capture missed opportunities Further additions throughou
Slide 9: Cactus Completions Equipment Advantage
Cactus Completions Equipment Advantage SB Series Frac Valves Designs, manufactures, and rents a range of highly engineered and internally-developed products Built-for-purpose frac valve Designed for high-intensity frac applications Redundant sealing at pressure exposure Reduced price sensitivity due
Slide 10: A Dynamic Manufacturing Advantage
A Dynamic Manufacturing Advantage; Responsive, Highly Scalable and Lower Cost Responsive manufacturing in the U.S. supplemented by high volume production in China U.S. Facility China Facility Industry Leading Product Quality (API 6A / ISO 9001) Highly Engineered Products Cactus Employees HSE Focus R
Slide 11: Clean Balance Sheet & Low Capital Intensity
Clean Balance Sheet & Low Capital Intensity Strong balance sheet with track record of cash flow generation Adjusted EBITDA(1) – Net Capital Expenditures ($ in millions)(2) Balance Sheet & Capital Summary $101.6 2015 2016 2017 LTM Q1 2018 Q1 2018 Net Capital Expenditures ($ in millions)(2) $37.9 2015
Slide 12: 2017 was a Breakout Year for Cactus
2017 was a Breakout Year for Cactus Revenues up 120% Adjusted EBITDA rose 248% Generated free cash flow U.S. onshore wellhead market share (1) increased from 21.2% during Q4 2016 to 26.0% during Q4 2017 Commercialized frac rental innovations to reduce repair time and enhance reliability Expanded Suz
Slide 13: Solid Start to 2018
Solid Start to 2018 Strong Q1 Results 9.9% sequential revenue growth 22% sequential Adjusted EBITDA growth Adjusted EBITDA margin rose to 37.1% from 33.4% in Q4 2017 Growth across all business lines Current Performance Expect continued strong revenue performance in Q2 with sustained margin profile v
Slide 14: Summary
Summary Delivering Significant Growth Across All Businesses In 2018 16 Highly Experienced Management and Operating 5Team with Strong Industry Relationships 4Substantial Cash Flow Generation 3Dynamic Manufacturing Capabilities Product Innovations and Execution Across 2Major Basins Leading Pure Play W
Slide 15: Summary
Summary Leading Pure Play Wellhead and Pressure Control Equipment Solutions Provider for U.S. Onshore Product Innovations and Execution Across Major Basins Dynamic Manufacturing Capal Substantial Cash Flow Generation Highly Experienced Management and Operating Team with Strong Industry Relationships
Slide 16: Highly Experienced and Well Incentivized Team with Strong Industry Relationships
Highly Experienced and Well Incentivized Team with Strong Industry Relationships Management team is well incentivized as it owns ~33% of the business Track record of building & successfully monetizing similar businesses Strength of leadership is attested by management and operating teams that joined
Slide 17: Building a Leading Equipment Company
Building a Leading Equipment Company Management team has built the foundation of this company over four decades with a proven track record of success. GE Oil and Gas Company (“ICC”) become President respectively, of 1959 1975 1980 1985 1990 1995 2000 2005 2010 2018 Bender found with 18 key (2011) le
Slide 18: Cactus Equipment Positioned on a 4-Well Pad
Cactus Equipment Positioned on a 4-Well Pad Product Sold Product Sold Product Rented Product Rented Services Provided Wellheads are required by each well over production life One of the first pieces of equipment to be installed Cactus wellheads installed below surface Frac stacks are connected to th
Slide 19: Non-GAAP Reconciliation
Non-GAAP Reconciliation LTM March 31, 2018 Year Ended December 31, 2016 Three Months Ended December 31, 2017 ($ in thousands) December 31, 2017 December 31, 2015 March 31, 2018 March 31, 2017 Net income (loss) Interest expense, net Income tax expense EBIT Depreciation and amortization EBITDA (Gain)
Slide 20: Investor Relations Contact
Investor Relations Contact Stephen Tadlock VP and Chief Administrative Officer 713-396-5748 IR@CactusWHD.com 22
Slide 21: Investor Relations Contact
Investor Relations Contact Stephen Tadlock VP and Chief Administrative Officer 713-396-5748 IR@CactusWHD.com