16 slides from Cactus, Inc. Class A Common Stock's merger presentation, Aug 1, 2023
Slide 1: RnR ry 3; 2023
RnR ry 3; 2023
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: FlexSteel Meets Cactus' Acquisition Criteria
FlexSteel Meets Cactus’ Acquisition Criteria Manufacturer of a Unique Highly Engineered Product Sold Directly to End-Users Variable Cost Business With A Strong Margin Profile Modest Capital Requirements Enhance Free Cash Flow Leverages Cactus’ Infrastructure & Customer Base Attractive Growth Potenti
Slide 4: FlexSteel Investment Highlights
FlexSteel Investment Highlights Innovative & Differentiated Technology With Unique 1 Manufacturing Capabilities Complementary Products at the Wellsite and Sold to 2 Similar End-Users 3 Industry Leader in a Growing Segment of the Market Through-Cycle Outperformance Strong Through-Cycle Margins With M
Slide 5: Transaction Overview
Transaction Overview Strategic Rationale ◼ Increased product diversification supports higher future growth potential ◼ Differentiated product, manufacturing capabilities and service execution supported by IP portfolio ◼ Highly complementary consumable product offering to Cactus’ products and service
Slide 6: FlexSteel at a Glance
FlexSteel at a Glance About FlexSteel ◼ FlexSteel is a market leading provider of spoolable pipe technologies for the onshore North American market ◼ Customer base includes some of the largest exploration & production companies in North America ◼ 100% of products manufactured in-house at ISO & API-c
Slide 7: FlexSteel's Proprietary Equipment Across the Industry Value Chain
FlexSteel’s Proprietary Equipment Across the Industry Value Chain Production Lines / Pipe-Under-Pad Gathering Lines Takeaway Lines Wellhead Tank Battery Midstream Sales Refining / End Use Meter Multiphase Production Oil / Gas / Water Oil / Gas / Water Gas Lift / CO2 CO2 / CCUS CO2 / CCUS Customer E&
Slide 8: 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 Reduced operating field loading
Slide 9: FlexSteel Offerings Enable Customers to Meet ESG-Related Goals
FlexSteel Offerings Enable Customers to Meet ESG-Related Goals Faster Safer Cleaner ◼ FlexSteel equipment takes less ◼ FlexSteel’s equipment ◼ FlexSteel product enables time to install versus legacy increases employee safety capturing and managing of offerings, resulting in faster ◼ Prefabricated fi
Slide 10: Differentiated Margin Profile Through the Cycle
Differentiated Margin Profile Through the Cycle Total Adjusted EBITDA Margin (2020 – 2021) (1)(2) YTD 2022 Adjusted EBITDA Margin (1)(2) 32% 31% 29% 24% 18% 15% 15% 14% 10% 10% 9% 8% 7% 7% 5% 5% Peer A Peer B Peer C Peer D Peer E Peer F Peer B Peer A Peer C Peer E Peer F Peer D Strong margin profile
Slide 11: Year-to-Date Financial Profile
Year-to-Date (“YTD”) Financial Profile YTD 9/30/2022 Financial Information Cactus & Cactus FlexSteel FlexSteel(1) Revenue $501 million $265 million $766 million Adj. EBITDA(2) $161 million $78 million $239 million Adj. EBITDA 32% 29% 31% Margin(2) Net Capital $19 million $7 million $26 million Expen
Slide 12: Compatible North American Operating Footprint
Compatible North American Operating Footprint Operational Footprint ◼ Cactus U.S. manufacturing facility located in Bossier City, LA ◼ Both headquarters located in Houston, TX ◼ FlexSteel manufacturing facility located in Baytown, TX ◼ Majority of service centers & yards located in areas with existi
Slide 13: Multiple Avenues for Growth
Multiple Avenues for Growth ◼ Continued Share Gains For 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 on-pad applications that con
Slide 14: Appendix Non-GAAP Reconciliation (Cactus)
Appendix Non-GAAP Reconciliation (Cactus) 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 con
Slide 15: Appendix Non-GAAP Reconciliation (FlexSteel)
Appendix Non-GAAP Reconciliation (FlexSteel) 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 FlexSteel management. We define FlexS
Slide 16: Investor Relations Contact
Investor Relations Contact John Fitzgerald Director of Corporate Development & Investor Relations 713-904-4655 IR@CactusWHD.com 16