[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The financial statements for the period ended September 30, 2023, reflect significant changes primarily due to the FlexSteel acquisition, impacting assets and overall financial performance [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (unaudited) | (in thousands) | September 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $63,738 | $344,527 | | Inventories | $203,517 | $161,283 | | Property and equipment, net | $345,222 | $129,998 | | Intangible assets, net | $183,974 | $— | | Goodwill | $200,723 | $7,824 | | **Total assets** | **$1,464,150** | **$1,118,896** | | **Liabilities & Equity** | | | | Total current liabilities | $177,367 | $116,649 | | Total liabilities | $454,079 | $408,451 | | Total stockholders' equity | $1,010,071 | $710,445 | | **Total liabilities and equity** | **$1,464,150** | **$1,118,896** | - The balance sheet reflects the impact of the FlexSteel acquisition, with significant increases in Property and equipment, Intangible assets, and Goodwill compared to year-end 2022. Cash and cash equivalents decreased substantially, reflecting the use of cash for the acquisition[14](index=14&type=chunk) [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Condensed Consolidated Statements of Income Highlights (unaudited) | (in thousands, except per share data) | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Total revenues** | **$287,870** | **$184,481** | **$822,094** | **$500,595** | | Operating income | $87,603 | $51,296 | $185,813 | $126,527 | | Net income | $68,019 | $41,520 | $152,766 | $104,383 | | **Net income attributable to Cactus Inc.** | **$52,580** | **$31,425** | **$120,224** | **$79,185** | | Earnings per Class A share - diluted | $0.80 | $0.51 | $1.82 | $1.30 | - Total revenues for Q3 2023 increased by **56.0% YoY**, and for the nine months ended September 30, 2023, revenues increased by **64.2% YoY**, largely driven by the inclusion of FlexSteel's results[17](index=17&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows Highlights (unaudited) | (in thousands) | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $248,602 | $78,605 | | Net cash used in investing activities | ($645,242) | ($19,496) | | Net cash provided by (used in) financing activities | $116,651 | ($37,187) | | **Net decrease in cash and cash equivalents** | **($280,789)** | **$18,954** | - The significant use of cash in investing activities (**$645.2 million**) reflects the acquisition of FlexSteel. This was partially funded by cash from financing activities, including **$169.9 million** net proceeds from a Class A common stock issuance and **$155.0 million** in debt proceeds (which was subsequently repaid)[26](index=26&type=chunk)[132](index=132&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail significant accounting policies and events, primarily focusing on the FlexSteel acquisition, its funding, and the resulting new business segment - On February 28, 2023, the company completed the acquisition of FlexSteel for total cash consideration of **$621.5 million**, plus a potential earn-out payment of up to **$75.0 million**[34](index=34&type=chunk) - The acquisition was funded through a combination of **$165.6 million** in net proceeds from a public stock offering, **$155.0 million** in borrowings under an Amended ABL Credit Facility, and available cash[35](index=35&type=chunk) - As a result of the acquisition, the company now operates in two business segments: **Pressure Control** and **Spoolable Technologies**[30](index=30&type=chunk)[86](index=86&type=chunk) Preliminary Purchase Price Allocation for FlexSteel Acquisition | (in thousands) | Amount | | :--- | :--- | | Net assets acquired | $434,566 | | Goodwill | $192,899 | | **Fair value of consideration transferred** | **$627,465** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes significant revenue growth to the FlexSteel acquisition and Pressure Control segment activity, while noting sequential declines in Q3 revenue and strong liquidity [Executive Summary and Business Segments](index=26&type=section&id=Executive%20Summary%20and%20Business%20Segments) - Cactus is an equipment solutions provider for onshore oil and gas markets. The company acquired FlexSteel, a leading provider of spoolable pipe technologies, on February 28, 2023[94](index=94&type=chunk) - The company now operates in two segments: - **Pressure Control:** Designs, manufactures, sells, and rents wellhead and pressure control equipment[99](index=99&type=chunk) - **Spoolable Technologies:** Designs, manufactures, and sells spoolable pipe and associated fittings under the FlexSteel brand[100](index=100&type=chunk)[103](index=103&type=chunk) [Recent Developments and Trends](index=27&type=section&id=Recent%20Developments%20and%20Trends) Key Industry Indicators | | Q3 2023 | Q2 2023 | 9M 2023 | 9M 2022 | | :--- | :--- | :--- | :--- | :--- | | WTI Oil Price ($/bbl) | $82.25 | $73.54 | $77.27 | $98.96 | | Natural Gas Price ($/MMBtu) | $2.59 | $2.16 | $2.46 | $6.74 | | U.S. Land Drilling Rigs | 627 | 698 | 689 | 688 | - Drilling and completion activity levels declined in Q3 2023, with the average U.S. land drilling rig count decreasing. However, oil prices rose **12%** in Q3 compared to Q2 2023[107](index=107&type=chunk) [Consolidated Results of Operations](index=28&type=section&id=Consolidated%20Results%20of%20Operations) Q3 2023 vs Q2 2023 Results (Sequential) | (in thousands) | Q3 2023 | Q2 2023 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$287,870** | **$305,819** | **($17,949)** | **(5.9)%** | | Pressure Control Revenue | $182,484 | $199,134 | ($16,650) | (8.4)% | | Spoolable Tech. Revenue | $105,386 | $106,685 | ($1,299) | (1.2)% | | **Total Operating Income** | **$87,603** | **$48,522** | **$39,081** | **80.5%** | - The sequential decrease in Pressure Control revenue was due to reduced activity. The significant increase in total operating income was mainly due to a **$5.1 million** gain on the earn-out liability in Q3, compared to an **$18.1 million** loss in Q2, for the Spoolable Technologies segment[113](index=113&type=chunk)[114](index=114&type=chunk) Nine Months 2023 vs 2022 Results (YoY) | (in thousands) | 9M 2023 | 9M 2022 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$822,094** | **$500,595** | **$321,499** | **64.2%** | | Pressure Control Revenue | $576,273 | $500,595 | $75,678 | 15.1% | | Spoolable Tech. Revenue | $245,821 | $— | $245,821 | nm | | **Total Operating Income** | **$185,813** | **$126,527** | **$59,286** | **46.9%** | - The year-over-year increase in revenue and operating income was driven by the inclusion of the Spoolable Technologies segment (**$245.8 million** in revenue) and a **15.1%** increase in Pressure Control revenue from higher activity[119](index=119&type=chunk)[120](index=120&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) - As of September 30, 2023, the company had **$63.7 million** in cash and cash equivalents[124](index=124&type=chunk) - The company had **$222.9 million** of available borrowing capacity under its Amended ABL Credit Facility with no outstanding borrowings[124](index=124&type=chunk) - In June 2023, the board authorized a share repurchase program for up to **$150 million** of its Class A common stock[125](index=125&type=chunk) - Estimated net capital expenditures for the full year 2023 are expected to range from **$35 million** to **$40 million**[128](index=128&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes to market risk exposure since year-end 2022, except for previously disclosed interest rate risk - There have been no material changes in the company's exposure to market risk since year-end 2022, other than previously disclosed changes to interest rate risk[133](index=133&type=chunk) [Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls were effective as of September 30, 2023, excluding the recently acquired FlexSteel business from the assessment - The principal executive officer and principal financial officer concluded that disclosure controls and procedures were effective as of September 30, 2023[134](index=134&type=chunk) - The assessment of internal controls over financial reporting excluded the recently acquired FlexSteel business, which is permissible for up to one year following an acquisition[135](index=135&type=chunk) [PART II - OTHER INFORMATION](index=32&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal disputes, none of which are expected to have a material adverse impact on its financial condition - The company is party to lawsuits arising in the ordinary course of business but does not expect them to have a material adverse impact on its financial condition[138](index=138&type=chunk) [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) The company reports no material changes to existing risk factors, but adds a new one concerning the Middle East conflict and its potential impact on oil prices and global conditions - A new risk factor has been added regarding the recent conflict in the Middle East, which may cause volatility in oil prices and adversely affect the business[142](index=142&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item is not applicable for the current reporting period - Not applicable[143](index=143&type=chunk) [Other Information](index=33&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the third quarter of 2023 - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended September 30, 2023[144](index=144&type=chunk) [Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Form 10-Q report, including required CEO and CFO certifications - The report includes required exhibits such as CEO and CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act[146](index=146&type=chunk)

Cactus, Inc. (NYSE:WHD) Q3 2023 Earnings Conference Call November 9, 2023 10:00 AM ET Company Participants Alan Boyd - Director of Corporate Development and Investor Relations Scott Bender - Chairman and Chief Executive Officer Steve Tadlock - Chief Financial Officer and Chief Executive Officer of FlexSteel Conference Call Participants Scott Gruber - Citigroup David Anderson - Barclays Kurt Hallead - Benchmark Stephen Gengaro - Stifel Operator Good day, and thank you for standing by. Welcome to the Cactus, ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________________________________________ FORM 10-Q ______________________________________________________________________________ (MARK ONE) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transi ...

Financial Data and Key Metrics Changes - Total Q2 revenues were $306 million, with adjusted EBITDA of $115 million and adjusted EBITDA margins of 37.7% [8][14] - GAAP net income was $32 million in Q2, down from $52 million in Q1, primarily due to higher tax and interest expenses [18] - Adjusted net income for Q2 was $67 million, or $0.84 per share, compared to $51 million and $0.64 per share in Q1 [19] - The company paid a quarterly dividend of $0.11 per share, which has been increased by 9% to $0.12 per share [9][20] Business Line Data and Key Metrics Changes - Pressure Control revenues were $199 million, up 2.3% sequentially, with operating income increasing by 10.3% [10] - Adjusted segment EBITDA for Pressure Control was $69.9 million, a slight increase of 1.2% sequentially [11] - Spoolable Technologies revenues were $106.7 million, with an operating loss of $6 million due to various costs associated with the acquisition [12] - Adjusted segment EBITDA for Spoolable Technologies was $45.5 million, with margins of 42.6%, reflecting improved operating leverage [13] Market Data and Key Metrics Changes - The US land rig count is down 17% from year-end 2022 levels and down 14% from Q1 2023 average levels [24] - The company expects Pressure Control revenue to decline approximately 10% in Q3 due to reduced drilling activity [24] - The Spoolable Technologies segment is expected to remain stable, driven by market penetration and share of wallet [28] Company Strategy and Development Direction - The company aims to leverage its differentiated offerings in both Pressure Control and Spoolable Technologies to outperform market declines [25][35] - The integration of FlexSteel is a key focus, with expectations to introduce new products and services in 2024 [33][34] - The company is committed to maintaining a strong balance sheet while pursuing organic and inorganic growth opportunities [34] Management's Comments on Operating Environment and Future Outlook - Management noted a resilient performance despite a weakening US land market, with expectations for stabilization in rig counts by late Q3 [24][39] - The company anticipates that larger, well-capitalized customers will continue to invest through commodity cycles [25] - Management expressed confidence in the ability to maintain margins in the Spoolable Technologies segment despite market fluctuations [49][50] Other Important Information - The company has repaid the full $155 million of debt related to the FlexSteel acquisition, returning to a net cash position [9][20] - Changes in management roles were announced, with Scott Bender assuming the role of Chairman and Joel Bender becoming President [30][31] Q&A Session Summary Question: Market share growth expectations - Management confirmed record market share for the quarter but did not provide specific figures on pricing or market share changes [37][38] Question: Rig count stabilization - Management revised the expected trough of US land rig count down to approximately 600, with indications of stabilization and potential increases in Q4 [39][40] Question: Customer activity and 2024 outlook - Management noted that larger customers have maintained robust activity in certain areas, but there is no current visibility into 2024 budgets [44][45] Question: Spoolable Technologies margins - Management indicated that the impressive margins in Spoolable Technologies are expected to be maintained due to the competitive advantages of the business [48][49] Question: Lag in Spoolable revenue impact - Management acknowledged a historical lag of about three to four months in revenue impact from rig count changes, but noted that increased market penetration may offset this [68]

Financial Data and Key Metrics Changes - Total Q1 revenues were $228 million, which includes one month of FlexSteel results, representing a 20% increase from $66 million in the previous quarter [22][28] - Adjusted EBITDA for the quarter was $79 million, up from $66 million in Q4 2022, with adjusted EBITDA margins at nearly 35% [22][28] - GAAP net income increased to $52 million in Q1 2023 from $41 million in Q4 2022, driven by lower income tax expense and higher other income [28] Business Line Data and Key Metrics Changes - Pressure Control product revenues were $130 million, up 4% sequentially, with U.S. wellhead market share increasing to 43.3% [14][15] - Pressure Control rental revenues were $27 million, down 2% sequentially, primarily due to lower revenue from Australian operations [16] - Pressure Control field service revenues were approximately $38 million, up 6% sequentially, representing about 24% of combined Pressure Control revenues [17] Market Data and Key Metrics Changes - The U.S. land rig count is expected to decline by 3% to 5% sequentially in Q2, with an anticipated drop in rig count from Q1 exit to Q2 exit of 8% to 10% [33] - Customer balance sheets are reported to be in better shape than in previous years, which may support Cactus's performance despite the pullback in commodity prices [42] Company Strategy and Development Direction - The company plans to report legacy Cactus as the Pressure Control segment and FlexSteel as the Spoolable Technologies segment moving forward [12] - Cactus aims to leverage FlexSteel's technology to expand its customer base and enhance product offerings, particularly in international markets [40][61] - The company is focused on maintaining strong free cash flow and aims to return to a net cash position this year, allowing for further evaluation of return of capital strategies [41] Management's Comments on Operating Environment and Future Outlook - Management anticipates that the rig count could bottom out towards the end of Q2, estimating a range of 650 to 675 rigs [49] - The company expects adjusted EBITDA margins in the Pressure Control segment to be between 33% and 35% for Q2, excluding certain expenses [35] - Management remains optimistic about the combined business's growth potential, particularly in international markets, despite challenges in indigenous manufacturing requirements [61] Other Important Information - The company paid a quarterly dividend of $0.11 per share, resulting in a cash outflow of approximately $9 million [30] - Net CapEx was approximately $14 million during Q1 2023, with a revised full-year capital expenditure budget of $45 million to $55 million due to the FlexSteel acquisition [31] Q&A Session Summary Question: Can you expand on the rig count weakness extending beyond the gas basin? - Management indicated that lower gas prices lead to reduced cash flow for customers, affecting both private and public operators, with expectations of a rig count bottoming out between 650 to 675 rigs [49][50] Question: What is the overlap between Cactus's wellhead business and FlexSteel? - Management noted that all customers purchasing Cactus production trees ultimately need to buy a FlexSteel product, indicating significant overlap and opportunities for cross-selling [52] Question: What are the hurdles to expanding the international business? - Major roadblocks include countries requiring indigenous manufacturing, but management believes there is no structural reason why international business cannot return to previous levels [61][63]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________________________________________ FORM 10-Q ______________________________________________________________________________ (MARK ONE) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission Fi ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K Cactus, Inc. (Mark One) (Exact name of registrant as specified in its charter) Delaware 35-2586106 (State or other jurisdiction of incorporation or organization) 920 Memorial City Way, Suite 300 ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT ...

Cactus, Inc. (NYSE:WHD) Q4 2022 Earnings Conference Call February 23, 2023 10:00 AM ET Company Participants John Fitzgerald - Director, Corporate Development and IR Scott Bender - CEO Steve Tadlock - CFO Joel Bender - SVP and COO Steven Bender – VP, Operations Conference Call Participants David Anderson - Barclays Steve Gengaro - Stifel David Smith - Pickering Energy Partners Operator Good day and thank you for standing by. Welcome to the Cactus Q4 2022 Earnings Conference Call. [Operator Instructions] Plea ...

FORM 10-Q ______________________________________________________________________________ (MARK ONE) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 or Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________________________________________ ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the t ...

Cactus, Inc. (NYSE:WHD) Q3 2022 Earnings Conference Call November 7, 2022 10:00 AM ET Corporate Participants John Fitzgerald - Investor Relations Scott Bender - Chief Executive Officer Stephen Tadlock - Chief Financial Officer Conference Call Participants Stephen Gengaro - Stifel Connor Lynagh - Morgan Stanley David Smith - Pickering Energy Operator Good day and thank you for standing by and welcome to Cactus Third Quarter 2022 Earnings Call. [Operator Instructions] Please be advised that today's conference ...