Core Insights - Analysts expect Cactus, Inc. (WHD) to report quarterly earnings of $0.73 per share, reflecting a year-over-year decline of 9.9% [1] - Revenue projections stand at $275.89 million, indicating a slight increase of 0.4% from the previous year [1] - The consensus EPS estimate has been revised down by 1.5% over the last 30 days, showing a collective reevaluation by analysts [1][2] Revenue Projections - Revenue from Spoolable Technologies is projected to reach $100.73 million, representing a year-over-year increase of 6.7% [4] - Revenue from Pressure Control is estimated at $175.18 million, indicating a decline of 2.9% from the prior year [4] Operating Income Estimates - The consensus estimate for Operating Income from Spoolable Technologies is $27.35 million, down from $28.17 million in the previous year [4] - Analysts expect Operating Income from Pressure Control to be $50.62 million, compared to $56.05 million a year ago [5] Stock Performance - Cactus shares have decreased by 7.9% over the past month, contrasting with a minor decline of 0.5% in the Zacks S&P 500 composite [5] - Cactus holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the overall market in the near term [5]

Core Insights - The Lead-Lag Report aims to assist investors in outperforming in various market conditions through a tactical, data-driven investment approach [1] - The report emphasizes the importance of understanding risk-on/risk-off signals and identifying high-yield opportunities amidst increasing market volatility [1] Group 1 - The Lead-Lag Report is managed by Lead-Lag Publishing, LLC, and reflects the judgments of its authors as of the writing date, subject to change [2] - The report's trading signals are independent and may differ from other services provided by Lead-Lag Publishing, LLC [2] - The information provided is not intended as a primary basis for investment decisions and does not constitute personalized investment advice [2] Group 2 - The report highlights the necessity for investors to leverage award-winning research to maximize returns in uncertain market conditions [1] - The author, Michael A. Gayed, has a strong academic background and experience in market anomalies and investing [1] - The report does not guarantee future performance and emphasizes that past performance may not be indicative of future results [3]

Industry Overview - The Zacks Oil & Gas US Integrated industry includes companies involved in upstream and midstream energy businesses, focusing on oil and natural gas exploration and production, as well as transportation and storage [3] - The upstream business is positively correlated to oil and gas prices, while midstream operations generate stable fee-based revenues from long-term contracts [3] Current Market Conditions - Upstream companies are benefiting from favorable oil prices, with West Texas Intermediate (WTI) crude prices around $80 per barrel, which is advantageous for exploration and production activities [4] - The U.S. Energy Information Administration projects WTI and Brent average prices to be $70.31 and $74.31 per barrel, respectively, in 2025, indicating a continued favorable environment for integrated players [4] Revenue Stability - Integrated companies' midstream segments are less exposed to commodity price volatility due to long-term contracts securing stable fee-based revenues [5] Environmental Focus - Companies in the industry are increasingly focused on reducing greenhouse gas emissions and flaring rates, recognizing climate change as a significant risk [6] Industry Performance - The Zacks Oil & Gas US Integrated industry has a Zacks Industry Rank of 57, placing it in the top 23% of over 250 Zacks industries, indicating a bullish outlook [7][8] - However, the industry has underperformed compared to the broader Zacks Oil - Energy sector and the S&P 500, gaining only 1.2% over the past year compared to 16.8% and 25.4% for the sector and S&P 500, respectively [9] Valuation Metrics - The industry is currently trading at an EV/EBITDA ratio of 4.91X, lower than the S&P 500's 18.23X but higher than the sector's 3.86X [12] - Over the past five years, the industry's EV/EBITDA has ranged from 3.33X to 14.35X, with a median of 5.02X [12] Key Players - ConocoPhillips (COP) has a strong production outlook and lower debt exposure, positioning it well for adverse business scenarios [14] - Occidental Petroleum (OXY) is addressing its debt burden, reducing it from $47.6 billion in 2019 to $25.5 billion by 2024 [17] - Berry Corporation (BRY) operates in low-decline, long-lived reserves and has a strong balance sheet to navigate volatility [19] - Cactus Inc (WHD) benefits from high crude prices and is focused on minimizing environmental impact [21]

Cactus Inc. (NYSE:WHD) Q3 2024 Earnings Conference Call October 31, 2024 10:00 AM ET Company Participants John Fitzgerald - Director of Corporate Development & Investor Relations Scott Bender - Chief Executive Officer & Chairman of the Board Jay Nutt - Executive Vice President, Chief Financial Officer and Treasurer Stephen Tadlock – Chief Executive Officer, Flex Steel Joel Bender - President Conference Call Participants Arun Jayaram - J.P. Morgan Securities LLC Scott Gruber - Citigroup Stephen Gengaro - Sti ...

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 $293.2 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].

Core Insights - Cactus, Inc. (WHD) reported third-quarter 2024 adjusted earnings of 79 cents per share, exceeding the Zacks Consensus Estimate of 74 cents, but down from 80 cents in the same quarter last year [1] - Total revenues for the quarter were $293.2 million, surpassing the Zacks Consensus Estimate of $283 million and increasing from $288 million year-over-year [1] Revenue Performance - The improved quarterly results were driven by increased revenues from both Pressure Control and Spoolable Technologies segments, although lower customer drilling activity in the Pressure Control segment partially offset this growth [2] - Pressure Control segment revenues reached $185.1 million, up from $182.5 million in the prior year, and exceeded the estimate of $178 million [3] - Spoolable Technologies segment revenues were $108.2 million, an increase from $103.7 million year-over-year, also above the estimate of $100.6 million [4] Segment EBITDA - Adjusted Segment EBITDA for Pressure Control was $61.9 million, down from $65.3 million in the prior year but above the estimate of $61.2 million [4] - Adjusted Segment EBITDA for Spoolable Technologies remained flat year-over-year at $42.5 million, exceeding the estimate of $40 million [5] Capital Expenditure and Cash Flow - Cactus' capital expenditure for the quarter totaled $10 million, while operating cash flow was reported at $85.3 million [6] Balance Sheet - At the end of Q3 2024, Cactus had cash and cash equivalents of $303.4 million and no outstanding bank debt [7] Outlook - The company anticipates subdued U.S. land drilling activity levels, with the U.S. land rig count expected to remain stable but may face reductions due to seasonal factors and budget constraints [8] - Cactus expects net capital expenditures for the full year 2024 to be in the range of $32-$37 million, down from the previous guidance of $35-$45 million [9]

Cactus, Inc. (WHD) came out with quarterly earnings of $0.79 per share, beating the Zacks Consensus Estimate of $0.74 per share. This compares to earnings of $0.80 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 6.76%. A quarter ago, it was expected that this company would post earnings of $0.70 per share when it actually produced earnings of $0.81, delivering a surprise of 15.71%. Over the last four quarters, the company has ...

Exhibit 99.1 Cactus Announces Third Quarter 2024 Results HOUSTON – October 30, 2024 – Cactus, Inc. (NYSE: WHD) ("Cactus" or the "Company") today announced financial and operating results for the third quarter of 2024. Third Quarter Highlights • Revenue of $293.2 million and operating income of $76.8 million; • Net income of $62.4 million and diluted earnings per Class A share of $0.74; • Adjusted net income of $63.5 million and diluted earnings per share, as adjusted of $0.79; • Net income margin of 21.3% a ...

Cactus Inc (NYSE:WHD) Q2 2024 Results Conference Call August 1, 2024 10:00 AM ET Company Participants Alan Boyd - Director of Corporate Development & Investor Relations Scott Bender - Chief Executive Officer & Chairman of the Board Jay Nutt - Executive Vice President, Chief Financial Officer and Treasurer Stephen Tadlock - EVP and Chief Executive Officer of Spoolable Pipe Conference Call Participants Luke Lemoine - Pipe Sandler David Anderson - Barclays Jeff Lee blank - TPH Amer Jayaram - JP Morgan Securiti ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________________________________________ FORM 10-Q ______________________________________________________________________________ (MARK ONE) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transi ...