Financial Performance and Strategic Outlook
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 the United States of America ("GAAP"). A reconciliation of EBITDA, Adjusted EBITDA and EBIT to net income, the most directly comparable measure calculated in
accordance with GAAP, is provided in the Appendix included in this presentation. While management believes such measures are useful for investors, these measures should not be
used as a replacement for financial measures that are calculated in accordance with GAAP.
Forward-Looking Statements
The information in this presentation includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. All statements, other than statements of historical fact included in this presentation, regarding our strategy, future operations, financial position,
estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this presentation, the words "may,"
"hope," "potential," "could," "believe," "anticipate,” “intend," "estimate,” “expect,” “project” and similar expressions are intended to identify forward-looking statements, although not all
forward-looking statements contain such identifying words. These forward-looking statements are based on Cactus' current expectations and assumptions about future events and are
based on currently available information as to the outcome and timing of future events. We caution you that these forward-looking statements are subject to all of the risks and
uncertainties, most of which are difficult to predict and many of which are beyond our control, incident to the operation of our business. When considering forward-looking statements, you
should keep in mind the risk factors and other cautionary statements described under the heading "Risk Factors" included in our SEC filings. These forward-looking statements are based
on management's current belief, based on currently available information, as to the outcome and timing of future events. Important factors that could cause actual results to differ
materially from those in the forward-looking statements include, but are not limited to: demand for our products and services, which is affected by, among other things, changes in the
price of crude oil and natural gas in domestic and international markets; the number of rigs, pad sizes, drilling and completion efficiencies, well spacings and associated well counts;
availability of takeaway and storage capacity; the number of workover rigs; availability of capital and the associated capital spending discipline exercised by customers; overall service
cost inflation; the financial health of our customers and our credit risk of customer non-payment; changes in the number of drilled but uncompleted wells and the level of well completion
activity; the size and timing of orders; availability and cost of raw materials, components and imported items; increased inland and ocean shipping costs; the availability of containers and
vessels from Asia as well as port congestion and domestic trucking capacity; transportation differentials associated with reduced capacity in and out of the storage hub in Cushing,
Oklahoma; expectations regarding overhead and operating costs and margins; availability and cost of skilled and qualified workers; potential liabilities such as warranty and product
liability claims arising out of the installation, use or misuse of our products; the possibility of cancellation of orders; our business strategy; our financial strategy, operating cash flows,
liquidity and capital required for our business; our future revenue, income and operating performance; our ability to pay dividends and the amount of any such dividends; corporate
consolidation activity involving our customers; the addition or termination of relationships with major customers or suppliers; laws and regulations, including environmental regulations, that
may increase our costs, limit the demand for our products and services or restrict our operations; disruptions in political, regulatory, economic and social conditions domestically or
internationally; the severity and duration of the ongoing outbreak of coronavirus (COVID-19) and the extent of its impact on our business, including employee absenteeism; outbreaks of
other pandemic or contagious diseases that may disrupt our operations, suppliers or facilities or impact demand for oil and gas; the impact of actions taken by the Organization of
Petroleum Exporting Countries (OPEC) and other oil and gas producing countries affecting the supply of oil and natural gas; the impact of potential disruptions in Russian gas deliveries
into Europe resulting from the conflict in Ukraine; increases in import tariffs or duties assessed on products and imported raw materials used in the production and assembly of our goods
which could negatively impact margins and our working capital; the significance of future liabilities under the tax receivable agreement (the "TRA") we entered into with certain current or
past direct and indirect owners of Cactus LLC in connection with our initial public offering; a failure of our information technology infrastructure or any significant breach of security;
potential uninsured claims and litigation against us; competition and capacity within the oilfield services industry; our dependence on the continuing services of certain of our key
managers and employees; currency exchange rate fluctuations associated with our international operations; and plans, objectives, expectations and intentions contained in this
presentation that are not historical. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this presentation. We disclaim
any duty to update and do not intend to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances
after the date of this presentation.
Industry and Market Data
This presentation has been prepared by Cactus and includes market data and other statistical information from third-party sources, including independent industry publications,
government publications or other published independent sources. Some data is also based on Cactus' good faith estimate. Although Cactus believes these third-party sources are reliable
as of their respective dates, Cactus has not independently verified the accuracy or completeness of this information.
Information Presented
Except as otherwise indicated or required by the context, references in this presentation to the "Company," "Cactus," "we,” “us” and “our” refer to (i) Cactus Wellhead, LLC ("Cactus LLC")
and its consolidated subsidiaries prior to the completion of our IPO and (ii) Cactus, Inc. ("Cactus Inc.") and its consolidated subsidiaries (including Cactus LLC) following the completion of
our IPO on February 12, 2018. Cactus LLC is our accounting predecessor.
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