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Press release content from Business Wire. The AP news staff was not involved in its creation.

Cactus Announces Third Quarter 2020 Results

November 4, 2020 GMT

HOUSTON--(BUSINESS WIRE)--Nov 4, 2020--

Cactus, Inc. (NYSE: WHD) (“Cactus” or the “Company”) today announced financial and operating results for the third quarter of 2020.

Third Quarter Highlights

  • Revenue of $59.8 million;
  • Income from operations of $12.6 million;
  • Net income of $10.9 million (1) and diluted earnings per Class A share of $0.13 (1);
  • Net income, as adjusted (2) of $9.5 million and diluted earnings per share, as adjusted (2) of $0.13;
  • Adjusted EBITDA (3) and related margin (4) of $24.6 million and 41.1%, respectively;
  • Cash flow from operations of $18.9 million;
  • Reduced 2020 net capital expenditure guidance to between $17.5 and $22.5 million;
  • Cash balance of $273.9 million and no bank debt outstanding as of September 30, 2020; and
  • The Board of Directors declared a quarterly cash dividend of $0.09 per share.

     

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Financial Summary

 

Three Months Ended

 

September 30,

 

June 30,

 

September 30,

 

2020

 

2020

 

2019

 

(in thousands)

Revenues

$

59,789

 

 

$

66,548

 

 

$

160,808

 

Income from operations

$

12,556

 

 

$

8,875

 

 

$

47,123

 

Operating income margin

21.0

%

 

13.3

%

 

29.3

%

Net income (1)

$

10,886

 

 

$

9,095

 

 

$

35,833

 

Net income, as adjusted (2)

$

9,517

 

 

$

7,367

 

 

$

36,097

 

Adjusted EBITDA (3)

$

24,550

 

 

$

22,483

 

 

$

58,819

 

Adjusted EBITDA margin (4)

41.1

%

 

33.8

%

 

36.6

%

(1)

Net income during the third quarter of 2020 is inclusive of $1.9 million in expense related to the revaluation of the tax receivable agreement liability. Net income during the second quarter of 2020 is inclusive of $0.9 million in non-routine charges related to severance and $1.3 million in additional income related to the revaluation of the tax receivable agreement liability. Net income during the third quarter of 2019 is inclusive of $4.1 million in additional tax expenses related to the write-off of foreign tax credits and the reduction in expected future state tax benefits.

(2)

Net income, as adjusted and diluted earnings per share, as adjusted are non-GAAP financial measures. These figures assume Cactus, Inc. held all units in Cactus Wellhead, LLC (“Cactus LLC”), its operating subsidiary, at the beginning of the period. Additional information regarding net income, as adjusted and diluted earnings per share, as adjusted and the reconciliation of GAAP to non-GAAP financial measures are in the Supplemental Information tables.

(3)

Adjusted EBITDA is a non-GAAP financial measure. See definition of Adjusted EBITDA and the reconciliation of GAAP to non-GAAP financial measures in the Supplemental Information tables.

(4)

The percentage of Adjusted EBITDA to Revenues.

Scott Bender, President and CEO of Cactus, commented, “The third quarter once again showcased our ability to outperform the U.S. rig count while maintaining strong margins during what we believe was the bottom of the current U.S. industry cycle. Cactus achieved record Product market share (1) of approximately 38% during the third quarter, highlighting the resiliency of our customer base and our track record of winning new customers. I am also pleased to report that Cactus has now generated positive free cash flow in all eleven quarters since going public in early 2018.

“Looking to the fourth quarter, we expect further gains in rigs followed and associated market share will benefit our Product business. While the near-term focus for our Rental business will continue to be on returns and margins, we are encouraged by the recent improvement in industry completion activity. We believe that total Company quarterly revenues have bottomed and expect an improvement going forward.”

Mr. Bender concluded, “Cactus has proven its ability to generate significant free cash flow and income through the downcycle. In the same vein, management has also further reduced its full year 2020 net capital expenditure budget. We believe the industry’s most pronounced activity decline in decades is behind us and we are now turning our attention to the recovery. This team is excited to see the potential benefits that greater operating leverage provides our business as activity levels increase, both in the U.S. and internationally.”

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(1)

Additional information regarding market share and rigs followed is located in the Supplemental Information tables.

Revenue Categories

Product

 

Three Months Ended

 

September 30,

 

June 30,

 

September 30,

 

2020

 

2020

 

2019

 

(in thousands)

Product revenue

$

35,857

 

 

$

40,893

 

 

$

92,582

 

Gross profit

$

15,978

 

 

$

14,931

 

 

$

34,814

 

Gross margin

44.6

%

 

36.5

%

 

37.6

%

Third quarter 2020 product revenue decreased $5.0 million, or 12.3%, sequentially, as sales of wellhead and production related equipment decreased primarily due to lower drilling activity in the U.S., which was partially offset by market share gains. Gross profit increased $1.0 million, or 7.0%, sequentially, with margins increasing 810 basis points driven largely by $5.4 million in credits related to tariff refunds, up from $3.1 million during the second quarter of 2020.

Rental

 

Three Months Ended

 

September 30,

 

June 30,

 

September 30,

 

2020

 

2020

 

2019

 

(in thousands)

Rental revenue

$

9,881

 

 

$

11,535

 

 

$

35,528

 

Gross profit

$

234

 

 

$

860

 

 

$

18,334

 

Gross margin

2.4

%

 

7.5

%

 

51.6

%

Third quarter 2020 rental revenue decreased $1.7 million, or 14.3%, sequentially, as our customers’ level of completion activity was lower during the quarter. Gross profit decreased $0.6 million sequentially and margins decreased 510 basis points due largely to depreciation expense representing a higher percentage of revenue during the period.

Field Service and Other

Three Months Ended

 

September 30,

 

June 30,

 

September 30,

 

2020

 

2020

 

2019

 

(in thousands)

Field service and other revenue

$

14,051

 

 

$

14,120

 

 

$

32,698

 

Gross profit

$

4,728

 

 

$

2,634

 

 

$

7,323

 

Gross margin

33.6

%

 

18.7

%

 

22.4

%

Third quarter 2020 field service and other revenue decreased $0.1 million, or 0.5%, sequentially, as lower customer activity drove a slight decrease in associated billable hours and ancillary services. Gross profit increased $2.1 million, or 79.5%, sequentially, with margins increasing by 1,490 basis points sequentially due to lower depreciation, tooling and payroll-related expenses, improved labor and equipment utilization and the rationalization of the Company’s field service vehicle fleet.

Selling, General and Administrative Expenses (“SG&A”)

SG&A for the third quarter of 2020 was $8.4 million (14.0% of revenues), compared to $8.7 million (13.1% of revenues) for the second quarter of 2020 and $13.3 million (8.3% of revenues) for the third quarter of 2019. The sequential decrease was primarily due to lower payroll expenses.

Liquidity, Capital Expenditures and Other

As of September 30, 2020, the Company had $273.9 million of cash and no bank debt outstanding. Operating cash flow was $18.9 million for the third quarter of 2020. During the third quarter, the Company made dividend payments and associated distributions of $6.8 million. The Company also made tax receivable agreement payments and associated distributions of $22.6 million during the third quarter stemming from 2019 imputed tax liabilities.

Net cash used in investing activities represented a cash inflow of $0.1 million during the third quarter of 2020 as capital expenditures were more than offset by proceeds from the sale of assets. The Company reduced its full year 2020 net capital expenditure guidance to between $17.5 and $22.5 million.

During the third quarter, Cactus recognized $6.0 million in refunds pursuant to tariff exclusions granted by the U.S. Trade Representative. The refunds reduced cost of revenue during the period. As previously disclosed, a majority of the Company’s tariff exclusions were not extended past August 2020.

Quarterly Dividend

The Board of Directors (the “Board”) has approved the payment of a cash dividend of $0.09 per share of Class A common stock to be paid on December 17, 2020 to holders of record of Class A common stock at the close of business on November 30, 2020. A corresponding distribution of up to $0.09 per CW Unit has also been approved for holders of CW Units of Cactus Wellhead, LLC.

Conference Call Details

The Company will host a conference call to discuss financial and operational results tomorrow, Thursday, November 5, 2020 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time).

The call will be webcast on Cactus’ website at www.CactusWHD.com. Institutional investors and analysts may participate by dialing (866) 670-2203. International parties may dial (630) 489-9861. The access code is 9195227. Please access the webcast or dial in for the call at least 10 minutes ahead of start time to ensure a proper connection.

An archived webcast of the conference call will be available on the Company’s website shortly after the end of the call.

About Cactus, Inc.

Cactus designs, manufactures, sells and rents a range of highly engineered wellhead and pressure control equipment. Its products are sold and rented principally for onshore unconventional oil and gas wells and are utilized during the drilling, completion and production phases of its customers’ wells. In addition, it provides field services for all its products and rental items to assist with the installation, maintenance and handling of the wellhead and pressure control equipment. Cactus operates service centers in the United States, which are strategically located in the key oil and gas producing regions, including the Permian, SCOOP/STACK, Marcellus, Utica, Haynesville, Eagle Ford and Bakken, among other areas, and in Eastern Australia.

Cautionary Statement Concerning Forward-Looking Statements

Certain statements contained in this press release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Cactus’ control, that could cause actual results to differ materially from the results discussed in the forward-looking statements.

Forward-looking statements can be identified by the use of forward-looking terminology including “may,” “believe,” “expect,” “intend,” “anticipate,” “estimate,” “continue,” “potential,” “will,” “hope” or other similar words and include the Company’s expectation of future performance contained herein. These statements discuss future expectations, contain projections of results of operations or of financial condition, or state other “forward-looking” information. You are cautioned not to place undue reliance on any forward-looking statements, which can be affected by assumptions used or by known risks or uncertainties. Consequently, no forward-looking statements can be guaranteed. When considering these forward-looking statements, you should keep in mind the risk factors and other factors noted in the Company’s Annual Report on Form 10-K, any Quarterly Reports on Form 10-Q and the other documents that the Company files with the Securities and Exchange Commission. The risk factors and other factors noted therein could cause actual results to differ materially from those contained in any forward-looking statement.

Cactus, Inc.

Condensed Consolidated Statements of Income

(unaudited)

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2020

 

2019

 

2020

 

2019

 

(in thousands, except per share data)

Revenues

 

 

 

 

 

 

 

Product revenue

$

35,857

 

 

$

92,582

 

$

163,781

 

 

$

273,716

 

Rental revenue

 

9,881

 

 

 

35,528

 

 

57,579

 

 

 

113,601

 

Field service and other revenue

 

14,051

 

 

 

32,698

 

 

59,116

 

 

 

100,859

 

Total revenues

 

59,789

 

 

 

160,808

 

 

280,476

 

 

 

488,176

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

Cost of product revenue

 

19,879

 

 

 

57,768

 

 

101,976

 

 

 

168,303

 

Cost of rental revenue

 

9,647

 

 

 

17,194

 

 

39,661

 

 

 

54,435

 

Cost of field service and other revenue

 

9,323

 

 

 

25,375

 

 

44,620

 

 

 

79,105

 

Selling, general and administrative expenses

 

8,384

 

 

 

13,348

 

 

30,739

 

 

 

39,268

 

Severance expenses

 

 

 

 

 

 

1,864

 

 

 

 

Total costs and expenses

 

47,233

 

 

 

113,685

 

 

218,860

 

 

 

341,111

 

Income from operations

 

12,556

 

 

 

47,123

 

 

61,616

 

 

 

147,065

 

 

 

 

 

 

 

 

 

Interest income, net

 

218

 

 

 

373

 

 

851

 

 

 

489

 

Other income (expense), net

 

(1,865

)

 

 

558

 

 

(555

)

 

 

(484

)

Income before income taxes

 

10,909

 

 

 

48,054

 

 

61,912

 

 

 

147,070

 

Income tax expense

 

23

 

 

 

12,221

 

 

8,833

 

 

 

22,041

 

Net income

$

10,886

 

 

$

35,833

 

$

53,079

 

 

$

125,029

 

Less: net income attributable to non-controlling interest

 

4,653

 

 

 

16,494

 

 

21,835

 

 

 

57,475

 

Net income attributable to Cactus, Inc.

$

6,233

 

 

$

19,339

 

$

31,244

 

 

$

67,554

 

 

 

 

 

 

 

 

 

Earnings per Class A share - basic

$

0.13

 

 

$

0.41

 

$

0.66

 

 

$

1.53

 

Earnings per Class A share - diluted (a)

$

0.13

 

 

$

0.41

 

$

0.64

 

 

$

1.50

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic

 

47,510

 

 

 

47,095

 

 

47,406

 

 

 

44,260

 

Weighted average shares outstanding - diluted (a)

 

75,622

 

 

 

47,322

 

 

75,427

 

 

 

75,337

 

(a)

Dilution for the three and nine months ended September 30, 2020 includes $4.7 million and $23.2 million, respectively, of additional pre-tax income attributable to non-controlling interest adjusted for a corporate effective tax rate of 25.5%, and 27.9 million weighted average shares of Class B common stock plus the dilutive effect of restricted stock unit awards. Dilution for the three months ended September 30, 2019 excludes 28.0 million shares of Class B common stock as the effect would be anti-dilutive. Dilution for the nine months ended September 30, 2019 includes an additional $60.1 million of pre-tax income attributable to non-controlling interest adjusted for a corporate effective tax rate of 24%, and 30.8 million weighted average shares of Class B common stock plus the dilutive effect of restricted stock unit awards.

Cactus, Inc.

Condensed Consolidated Balance Sheets

(unaudited)

 

 

September 30,

 

December 31,

 

2020

 

2019

 

(in thousands)

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

273,941

 

 

$

202,603

 

Accounts receivable, net

40,290

 

 

87,865

 

Inventories

87,702

 

 

113,371

 

Prepaid expenses and other current assets

9,961

 

 

11,044

 

Total current assets

411,894

 

 

414,883

 

 

 

 

 

Property and equipment, net

148,696

 

 

161,748

 

Operating lease right-of-use assets, net

24,167

 

 

26,561

 

Goodwill

7,824

 

 

7,824

 

Deferred tax asset, net

217,659

 

 

222,545

 

Other noncurrent assets

1,248

 

 

1,403

 

Total assets

$

811,488

 

 

$

834,964

 

 

 

 

 

Liabilities and Equity

 

 

 

Current liabilities

 

 

 

Accounts payable

$

15,573

 

 

$

40,957

 

Accrued expenses and other current liabilities

14,565

 

 

22,067

 

Current portion of liability related to tax receivable agreement

8,902

 

 

14,630

 

Finance lease obligations, current portion

4,009

 

 

6,735

 

Operating lease liabilities, current portion

4,948

 

 

6,737

 

Total current liabilities

47,997

 

 

91,126

 

 

 

 

 

Deferred tax liability, net

792

 

 

1,348

 

Liability related to tax receivable agreement, net of current portion

194,616

 

 

201,902

 

Finance lease obligations, net of current portion

2,286

 

 

3,910

 

Operating lease liabilities, net of current portion

19,237

 

 

20,283

 

Total liabilities

264,928

 

 

318,569

 

 

 

 

 

Equity

546,560

 

 

516,395

 

Total liabilities and equity

$

811,488

 

 

$

834,964

 

Cactus, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)

 

 

Nine Months Ended September 30,

 

2020

 

2019

 

(in thousands)

Cash flows from operating activities

 

 

 

Net income

$

53,079

 

 

$

125,029

 

Reconciliation of net income to net cash provided by operating activities

 

 

 

Depreciation and amortization

 

31,262

 

 

 

28,264

 

Deferred financing cost amortization

 

126

 

 

 

126

 

Stock-based compensation

 

6,436

 

 

 

5,257

 

Provision for expected credit losses

 

341

 

 

 

255

 

Inventory obsolescence

 

3,376

 

 

 

1,708

 

(Gain) loss on disposal of assets

 

(1,810

)

 

 

820

 

Deferred income taxes

 

5,182

 

 

 

15,072

 

(Gain) loss from revaluation of liability related to tax receivable agreement

 

555

 

 

 

(558

)

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

48,190

 

 

 

(8,326

)

Inventories

 

19,188

 

 

 

(14,513

)

Prepaid expenses and other assets

 

1,127

 

 

 

4,032

 

Accounts payable

 

(23,753

)

 

 

(4,334

)

Accrued expenses and other liabilities

 

(7,607

)

 

 

4,694

 

Payments pursuant to tax receivable agreement

 

(14,207

)

 

 

(9,335

)

Net cash provided by operating activities

 

121,485

 

 

 

148,191

 

 

 

 

 

Cash flows from investing activities

 

 

 

Capital expenditures and other

 

(21,908

)

 

 

(40,526

)

Proceeds from sale of assets

 

5,414

 

 

 

2,811

 

Net cash used in investing activities

 

(16,494

)

 

 

(37,715

)

 

 

 

 

Cash flows from financing activities

 

 

 

Payments on finance leases

 

(4,298

)

 

 

(5,660

)

Dividends paid to Class A common stock shareholders

 

(12,847

)

 

 

 

Distributions to members

 

(15,560

)

 

 

(5,853

)

Repurchase of shares

 

(1,385

)

 

 

(1,529

)

Net cash used in financing activities

 

(34,090

)

 

 

(13,042

)

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

437

 

 

 

(730

)

 

 

 

 

Net increase in cash and cash equivalents

 

71,338

 

 

 

96,704

 

 

 

 

 

Cash and cash equivalents

 

 

 

Beginning of period

 

202,603

 

 

 

70,841

 

End of period

$

273,941

 

 

$

167,545

 

Cactus, Inc. – Supplemental Information

Reconciliation of GAAP to non-GAAP Financial Measures

Net income, as adjusted and diluted earnings per share, as adjusted

(unaudited)

 

Net income, as adjusted and diluted earnings per share, as adjusted are not measures of net income as determined by GAAP. Net income, as adjusted and diluted earnings per share, as adjusted are supplemental non-GAAP financial measures that are used by management and external users of the Company’s consolidated financial statements. Cactus defines net income, as adjusted as net income assuming Cactus, Inc. held all units in Cactus LLC, its operating subsidiary, at the beginning of the period, with the resulting additional income tax expense related to the incremental income attributable to Cactus, Inc. Net income, as adjusted, also includes certain other adjustments described below. Cactus defines diluted earnings per share, as adjusted as net income, as adjusted divided by weighted average shares outstanding, as adjusted. The Company believes this supplemental information is useful for evaluating performance period over period.

 

 

Three Months Ended

 

September 30,

 

June 30,

 

September 30,

 

2020

 

2020

 

2019

 

(in thousands, except per share data)

Net income

$

10,886

 

 

$

9,095

 

 

$

35,833

 

Adjustments:

 

 

 

 

 

Severance expenses, pre-tax (1)

 

 

 

 

857

 

 

 

 

Other non-operating (income) expense, pre-tax (2)

 

1,865

 

 

 

(1,310

)

 

 

(558

)

Income tax expense differential (3)

 

(3,234

)

 

 

(1,275

)

 

 

822

 

Net income, as adjusted

$

9,517

 

 

$

7,367

 

 

$

36,097

 

 

 

 

 

 

 

Diluted earnings per share, as adjusted

$

0.13

 

 

$

0.10

 

 

$

0.48

 

 

 

 

 

 

 

Weighted average shares outstanding, as adjusted (4)

 

75,622

 

 

 

75,367

 

 

 

75,340

 

(1)

Represents non-routine charges related to severance benefits.

(2)

Represents non-cash adjustments for the revaluation of the liability related to the tax receivable agreement.

(3)

Represents the increase or decrease in tax expense as though Cactus, Inc. owned 100% of Cactus LLC at the beginning of the period, calculated as the difference in tax expense recorded during each period and what would have been recorded, adjusted for pre-tax items listed above, based on a corporate effective tax rate of 25.5% on income before income taxes for the three months ended September 30, 2020, 26.0% for the three months ended June 30, 2020 and 24.0% for the three months ended September 30, 2019.

(4)

Reflects 47.5, 47.4, and 47.1 million weighted average shares of basic Class A common stock and 27.9, 27.9 and 28.0 million of additional shares for the three months ended September 30, 2020, June 30, 2020 and September 30, 2019, respectively, as if the weighted average shares of Class B common stock were exchanged and canceled for Class A common stock at the beginning of the period, plus the effect of dilutive securities.

Cactus, Inc. – Supplemental Information

Reconciliation of GAAP to non-GAAP Financial Measures

EBITDA and Adjusted EBITDA

(unaudited)

 

EBITDA and Adjusted EBITDA are not measures of net income as determined by GAAP. EBITDA and Adjusted EBITDA are supplemental non-GAAP financial measures that are used by management and external users of the Company’s consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. Cactus defines EBITDA as net income excluding net interest, income tax and depreciation and amortization. Cactus defines Adjusted EBITDA as EBITDA excluding the other items outlined below.

 

Cactus management believes EBITDA and Adjusted EBITDA are useful because they allow management to more effectively evaluate the Company’s operating performance and compare the results of its operations from period to period without regard to financing methods or capital structure, or other items that impact comparability of financial results from period to period. EBITDA and Adjusted EBITDA should not be considered as alternatives to, or more meaningful than, net income or any other measure as determined in accordance with GAAP. The Company’s computations of EBITDA and Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. Cactus presents EBITDA and Adjusted EBITDA because it believes they provide useful information regarding the factors and trends affecting the Company’s business.

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

2020

 

2020

 

2019

 

2020

 

2019

 

(in thousands)

 

(in thousands)

Net income

$

10,886

 

 

$

9,095

 

 

$

35,833

 

 

$

53,079

 

 

$

125,029

 

Interest income, net

 

(218

)

 

 

(223

)

 

 

(373

)

 

 

(851

)

 

 

(489

)

Income tax expense

 

23

 

 

 

1,313

 

 

 

12,221

 

 

 

8,833

 

 

 

22,041

 

Depreciation and amortization

 

9,762

 

 

 

10,520

 

 

 

10,007

 

 

 

31,262

 

 

 

28,264

 

EBITDA

 

20,453

 

 

 

20,705

 

 

 

57,688

 

 

 

92,323

 

 

 

174,845

 

Severance expenses (1)

 

 

 

 

857

 

 

 

 

 

 

1,864

 

 

 

 

Other non-operating (income) expense (2)

 

1,865

 

 

 

(1,310

)

 

 

(558

)

 

 

555

 

 

 

(558

)

Secondary offering related expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

1,042

 

Stock-based compensation

 

2,232

 

 

 

2,231

 

 

 

1,689

 

 

 

6,436

 

 

 

5,257

 

Adjusted EBITDA

$

24,550

 

 

$

22,483

 

 

$

58,819

 

 

$

101,178

 

 

$

180,586

 

(1)

Represents non-routine charges related to severance benefits.

(2)

Represents non-cash adjustments for the revaluation of the liability related to the tax receivable agreement.

Cactus, Inc. – Supplemental Information

Depreciation and Amortization by Category

(unaudited)

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

2020

 

2020

 

2019

 

2020

 

2019

 

(in thousands)

 

(in thousands)

Cost of product revenue

$

802

 

 

$

863

 

 

$

884

 

 

$

2,693

 

 

$

2,411

 

Cost of rental revenue

6,936

 

 

7,121

 

 

6,384

 

 

21,399

 

 

17,867

 

Cost of field service and other revenue

1,803

 

 

2,286

 

 

2,558

 

 

6,474

 

 

7,486

 

Selling, general and administrative expenses

221

 

 

250

 

 

181

 

 

696

 

 

500

 

Total depreciation and amortization

$

9,762

 

 

$

10,520

 

 

$

10,007

 

 

$

31,262

 

 

$

28,264

 

Cactus, Inc. – Supplemental Information

Estimated Market Share

(unaudited)

 

Market share represents the average number of active U.S. onshore rigs Cactus followed (which Cactus defines as the number of active U.S. onshore drilling rigs to which it was the primary provider of wellhead products and corresponding services during drilling) as of mid-month for each of the three months in the applicable quarter divided by the Baker Hughes U.S. onshore rig count quarterly average. Cactus believes that comparing the total number of active U.S. onshore rigs to which it was providing its products and services at a given time to the number of active U.S. onshore rigs during the same period provides Cactus with a reasonable approximation of its market share with respect to wellhead products sold and the corresponding services it provides.

 

 

Three Months Ended

 

September 30,

 

June 30,

 

September 30,

 

2020

 

2020

 

2019

Cactus U.S. onshore rigs followed

91

 

 

112

 

 

256

 

Baker Hughes U.S. onshore rig count quarterly average

240

 

 

378

 

 

894

 

Market share

37.9

%

 

29.6

%

 

28.6

%

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20201104005769/en/

CONTACT: Cactus, Inc.

John Fitzgerald, 713-904-4655

Director of Corporate Development and Investor Relations

IR@CactusWHD.com

KEYWORD: UNITED STATES NORTH AMERICA TEXAS

INDUSTRY KEYWORD: ENERGY OTHER MANUFACTURING MANUFACTURING OIL/GAS

SOURCE: Cactus, Inc.

Copyright Business Wire 2020.

PUB: 11/04/2020 05:15 PM/DISC: 11/04/2020 05:15 PM

http://www.businesswire.com/news/home/20201104005769/en