Financial Data and Key Metrics Changes - Total revenue for Q3 2023 was $288 million, with adjusted EBITDA of $103 million and adjusted EBITDA margins of 35.8% [7][12] - GAAP net income increased to $68 million from $32 million in Q2, driven by lower inventory step-up expense and decreased interest expense [16] - Adjusted net income for Q3 was $64 million, or $0.80 per share, compared to $67 million and $0.84 per share in Q2 [16] Business Line Data and Key Metrics Changes - Pressure Control revenues were $182 million, down 8.4% sequentially due to decreased customer activity [8][9] - Spoolable Technologies revenues were $105 million, down 1.2% sequentially due to product mix [9] - Adjusted segment EBITDA for Pressure Control decreased by 15% sequentially, while Spoolable Technologies saw a decrease of 3.9% [9][11] Market Data and Key Metrics Changes - The U.S. land rig count declined during the period, impacting Pressure Control revenues [6] - Despite the decline, October's preliminary results showed total revenues up over 10% from September [20] Company Strategy and Development Direction - The company is focused on introducing new product enhancements in the first half of next year to support customer productivity and address market shifts towards longer laterals [22][28] - There is an ongoing effort to diversify the supply chain to mitigate geopolitical risks and solidify the company's position as a low-cost manufacturer [28] - The company aims to pursue inorganic growth opportunities while maintaining shareholder returns through dividends and share buybacks [48] Management's Comments on Operating Environment and Future Outlook - Management noted a pullback from private customers but expressed confidence in larger customers' plans for 2024 activity [34][36] - The company expects Pressure Control revenue to decline slightly in Q4 but anticipates a 5% increase in U.S. land drilling activity in Q1 2024 [20] - Management is optimistic about the consolidation among E&P customers, which could benefit the company by attracting investor capital [30] Other Important Information - The company has no bank debt after repaying the last of the $155 million raised for the FlexSteel acquisition [7] - Net CapEx for Q3 was approximately $8 million, with a full-year CapEx outlook of $35 million to $40 million [18] Q&A Session Summary Question: Expectations for Pressure Control margins in 2024 - Management indicated that mid-30% margins could be reasonable with recovery in activity and cost initiatives [31][32] Question: Status of the earnout liability for FlexSteel - The earnout liability currently stands at $18.9 million and is due for payment in Q3 2024 [32] Question: Changes in customer behavior and budget exhaustion - Management noted that private customers are pulling back, but larger customers remain positive about their plans [34][36] Question: Revenue opportunities in a mature shale environment - Management discussed new products aimed at enhancing productivity in response to longer laterals, which could improve market share [37][38] Question: Product enhancements for next year - Management revealed plans for new frac valve designs and wellhead products that are more value-engineered [40] Question: Capital allocation strategy moving forward - The company prioritizes dividends and share buybacks while focusing on international inorganic growth opportunities [48][49]

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 ...

Revenue Growth - Product revenue for 2022 was $452.6 million, a 61.1% increase from $280.9 million in 2021, driven by higher sales of wellhead and production-related equipment [167]. - Rental revenue increased to $100.5 million in 2022, up 63.0% from $61.6 million in 2021, primarily due to higher drilling and completion activity [169]. - Field service and other revenue rose to $135.3 million, a 40.9% increase from $96.1 million in 2021, attributed to increased customer activity and higher billable hours [169]. - Total revenues for 2022 reached $688.4 million, reflecting a 57.0% increase from $438.6 million in 2021 [167]. - Total revenues for 2022 reached $688.369 million, a 56.9% increase from $438.589 million in 2021 [225]. - Product revenue increased to $452.615 million in 2022, up 60.9% from $280.907 million in 2021 [225]. - Net income attributable to Cactus Inc. for 2022 was $110.174 million, representing a 121.4% increase from $49.593 million in 2021 [225]. - Earnings per Class A share - diluted rose to $1.80 in 2022, compared to $0.83 in 2021 [225]. Expenses and Costs - Cost of product revenue was $277.9 million in 2022, a 47.0% increase from $189.1 million in 2021, mainly due to increased sales and higher material costs [170]. - Selling, general and administrative expenses increased to $67.7 million, a 47.1% rise from $46.0 million in 2021, largely due to higher personnel costs and transaction costs associated with the Merger [173]. - In 2022, the United States experienced the highest inflation in decades, impacting costs related to freight, materials, vehicle-related expenses, and personnel [198]. - Stock-based compensation increased to $10,631,000 in 2022 from $8,620,000 in 2021, reflecting a rise of 23.3% [233]. - Cactus recognized approximately $8.4 million in transaction costs related to the merger for the year ended December 31, 2022 [323]. Cash Flow and Capital Expenditures - Net cash provided by operating activities increased to $117.9 million in 2022 from $63.8 million in 2021, primarily due to higher income and increased working capital [187]. - Net cash used in investing activities rose to $25.5 million in 2022 from $11.6 million in 2021, mainly due to investments in the rental fleet and expansion of the Bossier City location [188]. - Net cash used in financing activities increased to $47.4 million in 2022 from $39.4 million in 2021, driven by higher dividend payments and share repurchases [189]. - Estimated net capital expenditures for 2023 are projected to be between $35 million and $45 million, focusing on rental fleet investments and international expansion [181]. - Cash and cash equivalents at year-end 2022 were $344.527 million, compared to $301.669 million at the end of 2021, marking a 14.2% increase [223]. Tax and Liabilities - Income tax expense for 2022 was $31.4 million, with an effective tax rate of 17.8%, compared to $7.7 million and 10.2% in 2021 [176]. - The total liability from the Tax Receivable Agreement (TRA) was $292.6 million as of December 31, 2022, with $27.5 million reflected in current liabilities [299]. - The TRA provides for the payment of 85% of net cash savings in income tax realized by the company, retaining 15% for itself [183]. - The blended tax rate used for calculating the TRA liability consists of the U.S. federal income tax rate and an assumed combined state and local income tax rate [218]. Market Conditions - Oil prices peaked at over $123 per barrel in March 2022, but dropped below $80 per barrel by late November 2022, averaging approximately $78 per barrel through February 2023 [160]. - Natural gas prices increased from an average of $3.76 per MMBtu in December 2021 to a high of $8.14 per MMBtu in May 2022, before declining to $2.07 per MMBtu by February 24, 2023 [161]. - The U.S. onshore rig count increased to 762 rigs at the end of 2022, up from 570 at the end of 2021, representing a 33.6% increase [163]. Acquisitions and Mergers - The acquisition of FlexSteel was completed on February 28, 2023, enhancing the company's capabilities in engineered spoolable pipe technologies [159]. - Cactus Inc. entered into a definitive agreement to acquire HighRidge Resources, Inc. and its subsidiary FlexSteel, enhancing its capabilities in onshore spoolable pipe technologies [320]. - The merger with HighRidge closed on February 28, 2023, with a purchase price of approximately $621.2 million, subject to adjustments [322]. Financial Position - Total assets increased to $1,118.896 million in 2022, up from $982.078 million in 2021, reflecting a growth of 13.9% [223]. - Total stockholders' equity attributable to Cactus Inc. grew to $571.917 million in 2022, a 22.1% increase from $468.644 million in 2021 [223]. - The company had no outstanding debt as of December 31, 2022, and maintained compliance with all covenants under the ABL Credit Facility [271]. Stock and Dividends - The company declared cash dividends of $0.44 per share in 2022, up from $0.36 per share in 2021 [229]. - Basic earnings per share for Class A common stock increased to $1.83 in 2022 from $0.90 in 2021, while diluted earnings per share rose to $1.80 from $0.83 [318]. - Cash dividends declared per share of Class A common stock were $0.44, $0.38, and $0.36 for the years ended December 31, 2022, 2021, and 2020, totaling $26.9 million, $21.2 million, and $17.4 million respectively [310].

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 ...

Cactus, Inc. (NYSE:WHD) Q2 2022 Results Conference Call August 4, 2022 10:00 AM ET Company Participants John Fitzgerald - IR Scott Bender - CEO Stephen Tadlock - CFO Conference Call Participants Cameron Lochridge - Stephens Connor Lynagh - Morgan Stanley David Smith - Pickering Energy Partners David Anderson - Barclays Scott Gruber - Citigroup Stephen Gengaro - Stephens Operator Good morning, and thank you for standing by. Welcome to the Cactus Second Quarter 2022 Earnings Call. [Operator Instructions] Ple ...