Cactus(US:WHD)2024-10-31 20:12Revenue 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 $293.2 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 $857.7 million, an increase of $35.6 million, or 4.3%, compared to $822.1 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 $108.2 million[99][100]. - Pressure Control segment revenue decreased by $29.0 million, or 5.0%, to $547.3 million due to lower drilling and completion activity[105]. - Spoolable Technologies segment revenue increased by $65.1 million, or 26.5%, to $311.0 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 $32.9 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 $33.3 million, or 17.9%, compared to $185.8 million in 2023[105]. Net Income and Cash Flow - Net income attributable to Cactus Inc. was $138.7 million, an increase of $18.5 million, or 15.4%, from $120.2 million in the prior year[105]. - Cash provided by operating activities was $249.5 million, slightly up from $248.6 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 $645.2 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 $116.7 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 $2.11 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].