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Cactus(WHD) - 2024 Q3 - Quarterly Report
WHDCactus(WHD)2024-10-31 20:12
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Revenue Performance - For the nine months ended September 30, 2024, Cactus derived 76% of total revenues from product sales, 9% from rentals, and 15% from field services, compared to 74%, 10%, and 16% respectively for the same period in 2023[85]. - Total revenues for the third quarter of 2024 were 293.2million,a1.0293.2 million, a 1.0% increase from 290.4 million in the second quarter of 2024[98]. - Total revenues for the first nine months of 2024 were 857.7million,anincreaseof857.7 million, an increase of 35.6 million, or 4.3%, compared to 822.1millioninthesameperiodof2023[105].SegmentPerformance−PressureControlsegmentrevenueforQ32024was822.1 million in the same period of 2023[105]. Segment Performance - Pressure Control segment revenue for Q3 2024 was 185.1 million, a decrease of 1.1% from Q2 2024, while Spoolable Technologies revenue increased by 4.3% to 108.2million[99][100].−PressureControlsegmentrevenuedecreasedby108.2 million[99][100]. - Pressure Control segment revenue decreased by 29.0 million, or 5.0%, to 547.3millionduetolowerdrillingandcompletionactivity[105].−SpoolableTechnologiessegmentrevenueincreasedby547.3 million due to lower drilling and completion activity[105]. - Spoolable Technologies segment revenue increased by 65.1 million, or 26.5%, to 311.0million,benefitingfromtheFlexSteelacquisition[106].OperatingIncome−OperatingincomeforthePressureControlsegmentdecreasedby5.6311.0 million, benefiting from the FlexSteel acquisition[106]. Operating Income - Operating income for the Pressure Control segment decreased by 5.6% to 52.5 million in Q3 2024, primarily due to miscellaneous charges[99]. - Spoolable Technologies operating income increased by 9.5% to 32.9millioninQ32024,attributedtodecreasedexpensesrelatedtotheFlexSteelacquisition[100].−Totaloperatingincomeforthefirstninemonthsof2024was32.9 million in Q3 2024, attributed to decreased expenses related to the FlexSteel acquisition[100]. - Total operating income for the first nine months of 2024 was 219.2 million, an increase of 33.3million,or17.933.3 million, or 17.9%, compared to 185.8 million in 2023[105]. Net Income and Cash Flow - Net income attributable to Cactus Inc. was 138.7million,anincreaseof138.7 million, an increase of 18.5 million, or 15.4%, from 120.2millionintheprioryear[105].−Cashprovidedbyoperatingactivitieswas120.2 million in the prior year[105]. - Cash provided by operating activities was 249.5 million, slightly up from 248.6millioninthesameperiodlastyear[119].InvestmentandFinancingActivities−Netcashusedininvestingactivitiesdecreasedsignificantlyto248.6 million in the same period last year[119]. Investment and Financing Activities - Net cash used in investing activities decreased significantly to 24.1 million from 645.2million,primarilyduetothenon−recurrenceoftheFlexSteelacquisition[120].−Netcashusedinfinancingactivitieswas645.2 million, primarily due to the non-recurrence of the FlexSteel acquisition[120]. - Net cash used in financing activities was 56.4 million, a decrease from net cash provided of 116.7millionintheprioryear,mainlyduetofinancingactivitiesrelatedtotheFlexSteelacquisition[121].MarketConditions−AverageWTIoilpriceforQ32024was116.7 million in the prior year, mainly due to financing activities related to the FlexSteel acquisition[121]. Market Conditions - Average WTI oil price for Q3 2024 was 76.43 per barrel, while natural gas price was 2.11perMMBtu,reflectingmarketvolatilityandgeopoliticalrisks[92][93].−U.S.landdrillingrigcountdecreasedto565inQ32024,downapproximately152.11 per MMBtu, reflecting market volatility and geopolitical risks[92][93]. - U.S. land drilling rig count decreased to 565 in Q3 2024, down approximately 15% from the 2023 full year average, indicating a decline in industry activity levels[93]. Capital Expenditures - Estimated net capital expenditures for the year ending December 31, 2024, are projected to range from 32 million to 37 million, focusing on rental fleet investments and manufacturing enhancements[116]. Acquisition - Cactus completed the acquisition of FlexSteel on February 28, 2023, enhancing its position in the E&P industry and expanding its product offerings[82][91]. Cash Position - As of September 30, 2024, the company had 303.4 million in cash and cash equivalents and $220.7 million of available borrowing capacity under its Amended ABL Credit Facility[112].