Cactus(US:WHD)2023-05-10 21:18Acquisition - Cactus completed the acquisition of FlexSteel on February 28, 2023, for approximately $624.2 million, with a potential earn-out of up to $75 million based on revenue growth targets[86]. - Net cash used in investing activities was $633.2 million in Q1 2023, primarily due to the acquisition of FlexSteel for $624.2 million[123]. - Spoolable Technologies revenue in Q1 2023 was $33.8 million, reflecting results from the FlexSteel acquisition from February 28, 2023, to March 31, 2023[114]. - Net cash provided by financing activities was $303.2 million in Q1 2023, compared to a net cash outflow of $14.2 million in Q1 2022, driven by equity and debt financing related to the FlexSteel acquisition[124]. Financial Performance - Total revenues for the first quarter of 2023 were $228.4 million, a 21.6% increase from $187.8 million in the fourth quarter of 2022[106]. - Net income attributable to Cactus Inc. for Q1 2023 was $42.9 million, a 38.4% increase from $31.0 million in Q4 2022[106]. - Operating income for Q1 2023 was $49.7 million, up 60.3% from $31.0 million in Q1 2022, primarily due to higher gross margins[115]. - Total revenues for Q1 2023 reached $228.4 million, a 56.6% increase compared to $145.9 million in Q1 2022[115]. - Net income attributable to Cactus Inc. for Q1 2023 was $42.9 million, a 108.1% increase from $20.6 million in Q1 2022[115]. Segment Performance - Pressure Control segment revenues increased by 3.7% to $194.7 million in Q1 2023, driven by higher sales of wellhead and production-related equipment[106]. - Pressure Control revenue for Q1 2023 was $194.7 million, a 33.4% increase from $145.9 million in Q1 2022, driven by higher sales due to increased drilling and completion activity[113]. - Operating income for the Pressure Control segment was $49.4 million in Q1 2023, a 2.5% increase from $48.2 million in Q4 2022[106]. Cash Flow and Expenditures - Net cash provided by operating activities was $60.5 million for Q1 2023, significantly up from $17.2 million in Q1 2022, due to increased income and reduced working capital outflows[122]. - Estimated net capital expenditures for the year ending December 31, 2023, are projected to be between $45 million and $55 million, focusing on rental fleet investments and facility enhancements[120]. - As of March 31, 2023, Cactus Inc. had $75.4 million in cash and cash equivalents, with $193.3 million of available borrowing capacity under its Amended ABL Credit Facility[118]. Market Conditions - Average WTI oil price decreased by approximately 8% from Q4 2022 to Q1 2023, averaging $75.93 per barrel[101]. - Average natural gas price dropped by 52% from Q4 2022 to Q1 2023, averaging $2.64 per MMBtu[99]. - The number of active U.S. land drilling rigs was 742 in Q1 2023, a slight decline of less than 2% from Q4 2022[99]. Interest Income - Interest income for Q1 2023 was $1.0 million, a decrease of 57.7% from $2.4 million in Q4 2022 due to acquisition-related borrowings[108].