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 ...

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 ...