Investor Presentation Cactus, Inc. (NYSE: WHD) November 2019
Important Disclosures Non-GAAP Measures This presentation includes references to EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, and EBIT, which are not measures calculated in accordance with accounting principles generally accepted in…
Executive Team Mr. Bender has served as President and CEO since co-founding Cactus Wellhead, LLC (Cactus LLC) in 2011. Mr. Bender previously was President of Wood Group Pressure Control from 2000 to 2011. Scott Bender Mr. Bender…
Investment Highlights A Leading Pure Play Wellhead and Pressure Control 1 Equipment Solutions Provider for Onshore Activity Innovative and Differentiated Products with 2 Presence Across Various Geographies Consistent 3 Dynamic…
Company Overview Cactus designs, manufactures, sells and rents highly engineered products which yield greater pad drilling and completions efficiencies while enhancing safety LTM Q3 2019 Revenue by Type Revenue ( in millions) 628.0…
Proprietary Equipment Across Drilling, Completion, and Production Phases of a Well Technologically advanced wellhead and frac solutions deliver greater reliability and time savings Designed for pad drilling and intense completion…
Technologically Advanced Pad Drilling Wellhead Systems Cactus SafeDrill SafeDrill Advantages Safety Time Savings Fewer trips into Eliminates time confined space (cellar) consuming BOP - manipulation No BOP manipulation No waiting…
Well Counts and Pad Drilling Drive Our Product Business Operations & Trends % of Wells Drilled on a Pad (Delaware Basin) Well-diversified across all key producing basins Pct 100% 2019 YTD Marcellus: 93% Service centers support field…
Operator Drilling Efficiencies Translate Into More Wells Drilled Per Rig U.S. Drilling Days Per 1,000 Lateral Foot Days 7.1 7.0 6.4 6.4 5.4 5.5 5.4 5.3 4.7 4.8 4.6 4.6 4.1 4.0 4.0 4.0 3.3 3.3 3.2 3.1 3.0 2.9 2.9…
Cactus Generating More Revenue Per Rig Followed Drivers For Increased Revenue Per Rig Cactus Product Revenue Per U.S. Onshore Rig Followed(1) (Data Indexed to 100) Increased rig efficiencies 178 E&Ps drilling more wells per rig…
Small Expenditures Can Have a Big Impact on Operators Cactus Value Proposition Components of Onshore Well Costs(1) Cactus offerings make up a Other relatively small portion of the overall 15% cost to drill & complete a well…
Focus on Completions Efficiency Drives Our Rental Business Growth opportunity for Cactus Priced on per diem basis More wells per pad and/or stages per well generally translates into more rental equipment on location for greater…
Recent Innovations Strengthen Moat in Rental Business Complement & enhance legacy rental offerings while requiring no additional personnel Designed to significantly reduce non-productive time by increasing reliability and automation…
A Dynamic Manufacturing Advantage; Responsive, Highly Scalable and Lower Cost Responsive manufacturing in the U.S. supplemented by high volume production in China Bossier City Facility Suzhou Facility Facilityhas 16 5-axis computer…
Highly Experienced and Well Incentivized Team with Strong Industry Relationships Management team is well incentivized as it owns more than 25% of the business Management team has built the foundation of this company over four decades…
Well Established Relationships with High-Quality Customer Base 3Q 2019 YTD Total Revenue by 3Q 2019 YTD Product Revenue by 3Q 2019 YTD Rental Revenue by Customer Type Customer Type Customer Type Other Majors Other Majors 1% 1% 2%…
Compelling Value Opportunity in Relation to Select Industrial Companies Better Margins Returns And Growth Avg. EBITDA Margin ROCE Consensus Revenue Growth (2015 - YTD 2019) (2015 - YTD 2019) (1) (2018 - 2020E) (2) 37% 13% 34% 8%…
Clean Balance Sheet & Low Capital Intensity Strong balance sheet with track record of cash flow generation Adjusted EBITDA(1) Net Capital Expenditures(2) ( in Balance Sheet & Capital Summary millions) September 30, 2019 cash balance…
Continued Outperformance in 2019 Third Quarter Performance Product revenue continued to outperform the trajectory of the U.S. onshore rig count Improved margins in Rental business despite reduced completion activity from customers…
Additional Growth Avenues with Modest Capital Requirements Product Continued market share gains Continued gains in rig efficiency (wells drilled per rig) New features and technology for wellhead systems Shift to higher pressure…
Appendix
Company Organizational Structure Company Profile Organizational Structure (1) Ticker WHD (NYSE) Class A Shares Outstanding (1) 47.1mm CW Unit Public Class B Shares Outstanding (1) 28.0mm Holders Investors Total Shares Outstanding…
Cactus Equipment Positioned on a 4-Well Pad 1 2 4 4 3 4 1 1 Product Sold 2 Equipment Rented 3 Equipment Rented 4 Services Provided Product Sold Wellheads are required Frac stacks are Zipper manifolds used Variety…
Non-GAAP Reconciliation LTM Year Ended Three Months Ended ( in thousands) September 30, December 31, December 31, December 31, December 31, September 30, June 30, September 30, 2019 2018 2017 2016 2015 2019 2019 2018 Net income…
Investor Relations Contact John Fitzgerald Director of Corporate Development & Investor Relations 713-904-4655 IRCactusWHD.com 28
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