EX-99.1 2 a18-39319_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

Cactus Announces Third Quarter 2018 Results

 

HOUSTON — October 31, 2018 — Cactus, Inc. (NYSE: WHD) (“Cactus” or the “Company”) today announced financial and operating results for the third quarter of 2018.

 

Third Quarter 2018 Highlights

 

·                  Increased revenues 8.7% from second quarter 2018 to $150.7 million, with growth in all business lines;

 

·                  Grew income from operations 12.1% sequentially to $52.1 million;

 

·                  Generated net income of $43.6 million and net income, as adjusted(1) of $39.2 million;

 

·                  Reported diluted earnings per Class A share of $0.52 and diluted earnings per share, as adjusted(1) of $0.52;

 

·                  Increased Adjusted EBITDA(2) and related margin(3) to $61.3 million and 40.7%, respectively, from $55.1 million and 39.8%, respectively, in the second quarter of 2018; and

 

·                  Generated cash flow from operations during the third quarter of 2018 of $41.6 million.

 

Financial Summary

 

 

 

Three Months Ended

 

 

 

September 30,
2018

 

June 30,
2018

 

September 30,
2017

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

Revenues

 

$

150,658

 

$

138,543

 

$

96,027

 

Income from operations

 

$

52,133

 

$

46,487

 

$

28,059

 

Operating income margin

 

34.6

%

33.6

%

29.2

%

Net income

 

$

43,648

 

$

41,542

 

$

22,301

 

Net income, as adjusted (1)

 

$

39,157

 

$

34,910

 

$

17,199

 

Adjusted EBITDA (2)

 

$

61,261

 

$

55,117

 

$

34,133

 

Adjusted EBITDA margin (3)

 

40.7

%

39.8

%

35.5

%

 


(1)         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 company subsidiary, at the beginning of the period, with the resulting additional income tax expense related to the incremental income attributable to Cactus, Inc. 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.

(2)         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.

(3)         The percentage of Adjusted EBITDA to Revenues.

 

1


 

Scott Bender, President and CEO of Cactus, commented, “We continued to execute well in the third quarter, with sequential revenue growth across all of our business lines outpacing the U.S. onshore rig count growth and highlighting the differentiation of our products and the strength of our customer base.  The continued expansion in margins reflects our ability to execute, our operating leverage, and our differentiated supply chain capabilities.

 

“Looking ahead to the fourth quarter of 2018, we expect our Product business to remain strong as we believe our market share will continue to grow. While our Rental business has performed well, customer budget constraints and completions delays are resulting in reduced demand for frac-related assets and associated Field Service. In addition, we expect to see typical fourth quarter seasonality. Overall, given the differing margin profiles of our business lines, the anticipated strength in our Product business is not expected to compensate for declining completions activity in the fourth quarter.

 

“We continue to make progress with the commercialization of our new completions innovations, which complement our existing rental offerings. Initial trials will commence in the fourth quarter, and we are excited about the opportunity for customer adoption to provide additional growth for our business in 2019.

 

“Regarding tariffs, the USTR finalized tariffs on $200 billion of Chinese imports during the quarter with an initial rate of 10% taking effect in late September. We believe that we have the appropriate strategies in place to neutralize this impact.”

 

Mr. Bender concluded, “We accelerated our capital spending during the third quarter with the completion of our roofline expansion at Bossier City and the acquisition of a large facility in New Mexico to serve the Delaware Basin. In addition, we are pulling spending forward in response to anticipated year-end tariff changes, and we are directing additional capital toward our new completions innovations before the end of this year. As a result, capital expenditures for 2018 are now expected to be in the range of $65 to $70 million, above our prior indication of $60 million.”

 

Revenue Categories

 

Product

 

 

 

Three Months Ended

 

 

 

September 30,
2018

 

June 30,
2018

 

September 30,
2017

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

Product revenue

 

$

79,388

 

$

73,281

 

$

53,680

 

Gross profit

 

$

32,572

 

$

28,266

 

$

19,807

 

Gross margin

 

41.0

%

38.6

%

36.9

%

 

Third quarter 2018 product revenue increased $6.1 million, or 8.3%, sequentially, driven primarily by greater sales volume of higher value wellhead and production equipment. Gross profit increased $4.3 million sequentially with margins improving 240 basis points primarily due to leverage of the Company’s fixed cost base and more favorable supply chain execution.  Cactus’ estimated market share(4) was 27.4% for third quarter 2018 compared to 26.0% for second quarter 2018.

 

2


 

Rental

 

 

 

Three Months Ended

 

 

 

September 30,
2018

 

June 30,
2018

 

September 30,
2017

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

Rental revenue

 

$

38,135

 

$

34,944

 

$

21,199

 

Gross profit

 

$

22,786

 

$

20,992

 

$

10,513

 

Gross margin

 

59.8

%

60.1

%

49.6

%

 

Third quarter 2018 rental revenue increased $3.2 million, or 9.1%, sequentially, due to the Company’s investment in rental assets throughout 2018 and its enhanced ability to respond to continued strength in demand from its customers, particularly in West Texas. Gross profit increased $1.8 million sequentially, or 8.5%.

 

Field Service and Other

 

 

 

Three Months Ended

 

 

 

September 30,
2018

 

June 30,
2018

 

September 30,
2017

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

Field service and other revenue

 

$

33,135

 

$

30,318

 

$

21,148

 

Gross profit

 

$

7,826

 

$

7,080

 

$

4,835

 

Gross margin

 

23.6

%

23.4

%

22.9

%

 

Third quarter 2018 field service and other revenue increased $2.8 million, or 9.3%, sequentially, due to further increases in billable hours and ancillary services associated with greater volume of product sales and rental activity.  Gross profit increased $0.7 million sequentially, or 10.5%.

 

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

 

SG&A for third quarter 2018 was $11.1 million (7.3% of revenues), compared to $9.9 million (7.1% of revenues) for second quarter 2018 and $7.1 million (7.4% of revenues) for third quarter 2017. The sequential increase is primarily related to higher payroll expense associated with increased headcount, as well as higher public company costs.

 

Liquidity and Capital Expenditures

 

As of September 30, 2018, the Company had $42.0 million of cash on hand, no bank debt outstanding and the full $75.0 million of capacity available under the Company’s revolving credit facility.  Operating cash flow was $41.6 million for third quarter 2018 and $122.4 million for the first nine months of 2018, reflecting strong operating results.

 

Net capital expenditures for third quarter 2018 were $23.1 million, driven largely by $11.8 million directed toward the expansion of the Company’s fleet of frac rental assets and $3.0 million for other rental assets. $6.8 million was spent during the third quarter for the purchase of a new branch facility in Hobbs, NM and the expansion of the Company’s domestic manufacturing facility in Bossier City, LA. Net capital expenditures for the first nine months of 2018 were $54.4 million, with $40.3 million related to investment in rental assets, $10.1 million for facility expansion, and the balance related to tools for the Company’s service operations and other general expenditures.

 

3


 

Other Items

 

In August 2018, Cactus LLC, the operating subsidiary through which the Company operates, entered into a five-year $75 million senior secured asset-based revolving credit facility, maturing in 2023. The maximum amount that Cactus LLC may borrow under the facility is subject to a borrowing base, and Cactus LLC may request additional commitments up to $50 million, for a total of up to $125 million in revolving commitments. This facility replaced Cactus LLC’s prior credit facility.

 

As of September 30, 2018, Cactus had 37,646,562 shares of Class A common stock outstanding (representing 50.3% of the total voting power) and 37,243,210 shares of Class B common stock outstanding (representing 49.7% of the total voting power).

 

Conference Call Details

 

The Company will host a conference call to discuss financial and operational results tomorrow, Thursday, November 1, 2018 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 (800) 374-0232. International parties may dial (509) 844-0150. The access code is 2287649. 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 (including fracturing) 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 15 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, Eagle Ford and Bakken, among other areas, and one service center in Eastern Australia.

 

4


 

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,” 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 and any Quarterly Reports on Form 10-Q. 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.
John Fitzgerald, 713-904-4655
Director of Corporate Development and Investor Relations
IR@CactusWHD.com

 

Source: Cactus, Inc.

 

5


 

Cactus, Inc.

Condensed Consolidated Statements of Income

(unaudited)

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

 

2018

 

2017

 

2018

 

2017

 

 

 

(in thousands, except per share data)

 

Revenues

 

 

 

 

 

 

 

 

 

Product revenue

 

$

79,388

 

$

53,680

 

$

211,595

 

$

131,963

 

Rental revenue

 

38,135

 

21,199

 

102,224

 

52,979

 

Field service and other revenue

 

33,135

 

21,148

 

90,492

 

51,465

 

Total revenues

 

150,658

 

96,027

 

404,311

 

236,407

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

 

 

Cost of product revenue

 

46,816

 

33,873

 

128,897

 

86,564

 

Cost of rental revenue

 

15,349

 

10,686

 

41,477

 

28,173

 

Cost of field service and other revenue

 

25,309

 

16,313

 

70,084

 

41,011

 

Selling, general and administrative expenses

 

11,051

 

7,096

 

30,016

 

20,533

 

Total costs and expenses

 

98,525

 

67,968

 

270,474

 

176,281

 

Income from operations

 

52,133

 

28,059

 

133,837

 

60,126

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(270

)

(5,279

)

(3,370

)

(15,451

)

Other income (expense), net

 

 

 

(4,305

)

 

Income before income taxes

 

51,863

 

22,780

 

126,162

 

44,675

 

Income tax expense (a)

 

8,215

 

479

 

14,564

 

942

 

Net income

 

$

43,648

 

$

22,301

 

$

111,598

 

$

43,733

 

Pre-IPO net income

 

$

 

$

22,301

 

$

13,648

 

$

43,733

 

Post-IPO net income

 

$

43,648

 

$

 

$

97,950

 

$

 

 

 

 

 

 

 

 

 

 

 

Components of post-IPO net income:

 

 

 

 

 

 

 

 

 

Net income attributable to non-controlling interest

 

$

24,976

 

n/a

 

$

63,191

 

n/a

 

Net income attributable to Cactus Inc.

 

$

18,672

 

n/a

 

$

34,759

 

n/a

 

 

 

 

 

 

 

 

 

 

 

Earnings per Class A share - basic

 

$

0.52

 

n/a

 

$

1.15

 

n/a

 

Earnings per Class A share - diluted (b)

 

$

0.52

 

n/a

 

$

1.14

 

n/a

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic

 

35,821

 

n/a

 

30,182

 

n/a

 

Weighted average shares outstanding - diluted (b)

 

36,229

 

n/a

 

30,522

 

n/a

 

 


(a)         Cactus has historically not been subject to U.S. federal income tax at an entity level.  Subsequent to the IPO, which occurred on February 12, 2018, Cactus, Inc. incurs federal and state income tax on its share of income from Cactus LLC.

 

(b)         Dilution excludes 39.1 million and 44.7 million shares of Class B common stock for the three and nine months ended September 30, 2018, respectively, as the effect would be anti-dilutive.

 

6


 

Cactus, Inc.

Condensed Consolidated Balance Sheets

(unaudited)

 

 

 

September 30,

 

December 31,

 

 

 

2018

 

2017

 

 

 

(in thousands)

 

Assets

 

 

 

 

 

Current assets

 

 

 

 

 

Cash and cash equivalents

 

$

41,981

 

$

7,574

 

Accounts receivable, net

 

105,941

 

84,173

 

Inventories

 

85,321

 

64,450

 

Prepaid expenses and other current assets

 

9,336

 

7,732

 

Total current assets

 

242,579

 

163,929

 

 

 

 

 

 

 

Property and equipment, net

 

135,391

 

94,654

 

Goodwill

 

7,824

 

7,824

 

Deferred tax asset, net

 

179,265

 

 

Other noncurrent assets

 

613

 

49

 

Total assets

 

$

565,672

 

$

266,456

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

Current liabilities

 

 

 

 

 

Accounts payable

 

$

44,261

 

$

35,080

 

Accrued expenses and other current liabilities

 

17,442

 

10,559

 

Capital lease obligations, current portion

 

7,194

 

4,667

 

Current maturities of long-term debt

 

 

2,568

 

Total current liabilities

 

68,897

 

52,874

 

 

 

 

 

 

 

Capital lease obligations, net of current portion

 

9,021

 

7,946

 

Deferred tax liability, net

 

1,094

 

416

 

Liability related to tax receivable agreement

 

161,797

 

 

Long-term debt, net

 

 

241,437

 

Total liabilities

 

240,809

 

302,673

 

 

 

 

 

 

 

Equity (deficit)

 

324,863

 

(36,217

)

Total liabilities and equity

 

$

565,672

 

$

266,456

 

 

7


 

Cactus, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)

 

 

 

Nine Months Ended September 30,

 

 

 

2018

 

2017

 

 

 

(in thousands)

 

Cash flows from operating activities

 

 

 

 

 

Net income

 

$

111,598

 

$

43,733

 

Reconciliation of net income to net cash provided by operating activities

 

 

 

 

 

Depreciation and amortization

 

21,829

 

16,976

 

Debt discount and deferred loan cost amortization

 

229

 

1,314

 

Stock-based compensation

 

3,384

 

 

Inventory obsolescence

 

932

 

618

 

Loss on disposal of assets

 

1,759

 

115

 

Deferred income taxes

 

11,762

 

167

 

Loss on debt extinguishment

 

4,305

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

Accounts receivable

 

(21,761

)

(40,647

)

Inventories

 

(22,866

)

(25,630

)

Prepaid expenses and other assets

 

(3,835

)

(4,380

)

Accounts payable

 

8,108

 

20,834

 

Accrued expenses and other liabilities

 

6,906

 

6,410

 

Net cash provided by operating activities

 

122,350

 

19,510

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Capital expenditures

 

(55,720

)

(22,327

)

Patent expenditures

 

 

(8

)

Proceeds from sale of assets

 

1,313

 

908

 

Net cash used in investing activities

 

(54,407

)

(21,427

)

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

Principal payments on long-term debt

 

(248,529

)

(1,927

)

Payment of deferred financing costs

 

(576

)

 

Payments on capital leases

 

(4,456

)

(1,682

)

Net proceeds from IPO and Follow-on Offering

 

828,168

 

 

Distributions to members

 

(31,848

)

 

Redemption of CW Units

 

(575,681

)

 

Net cash used in financing activities

 

(32,922

)

(3,609

)

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

(614

)

62

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

34,407

 

(5,464

)

 

 

 

 

 

 

Cash and cash equivalents

 

 

 

 

 

Beginning of period

 

7,574

 

8,688

 

End of period

 

$

41,981

 

$

3,224

 

 

8


 

Cactus, Inc. — Supplemental Information

Reconciliation of GAAP to non-GAAP Financial Measures

Net income, as adjusted and diluted earnings per share, as adjusted(1)

(unaudited)

 

 

 

Three Months Ended

 

 

 

September 30,
2018

 

June 30,
2018

 

September 30,
2017

 

 

 

(in thousands, except per share data)

 

 

 

 

 

 

 

 

 

Net income

 

$

43,648

 

$

41,542

 

$

22,301

 

Adjustment:

 

 

 

 

 

 

 

Income tax expense differential (5)

 

(4,491

)

(6,632

)

(5,102

)

Net income, as adjusted (1)

 

$

39,157

 

$

34,910

 

$

17,199

 

 

 

 

 

 

 

 

 

Diluted earnings per share, as adjusted (1)

 

$

0.52

 

$

0.46

 

n/a

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding, as adjusted (6)

 

75,298

 

75,219

 

n/a

 

 


(1)         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, such as industry analysts, investors, lenders and rating agencies. Cactus defines net income, as adjusted as net income assuming Cactus, Inc. held all units in Cactus LLC, its operating company subsidiary, at the beginning of the period, with the resulting additional income tax expense related to the incremental income attributable to Cactus, Inc. The Company believes this supplemental information is useful for evaluating performance period over period.

(5)         Represents the increase 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 quarter and what would have been recorded based on a corporate effective tax rate of 24.5% on income before income taxes.

(6)         Reflects 37,647 and 26,450 shares of Class A common stock plus 37,243 and 48,440 additional shares for the three months ended September 30, 2018 and June 30, 2018, respectively, as if the Class B common stock was exchanged and canceled for Class A common stock at the beginning of the period, plus the dilutive effect of 408 and 329 shares for restricted stock unit awards for the periods ended September 30, 2018 and June 30, 2018 respectively.

 

9


 

Cactus, Inc. — Supplemental Information

Reconciliation of GAAP to non-GAAP Financial Measures

EBITDA and Adjusted EBITDA(2)

(unaudited)

 

 

 

 

Three Months Ended

 

 

 

September 30,
2018

 

June 30,
2018

 

September 30,
2017

 

 

 

(in thousands)

 

Net income

 

$

43,648

 

$

41,542

 

$

22,301

 

Interest expense, net

 

270

 

248

 

5,279

 

Income tax expense

 

8,215

 

4,697

 

479

 

Depreciation and amortization

 

7,841

 

7,367

 

6,074

 

EBITDA (2)

 

59,974

 

53,854

 

34,133

 

Loss on debt extinguishment

 

 

 

 

Stock-based compensation

 

1,287

 

1,263

 

 

Adjusted EBITDA (2)

 

$

61,261

 

$

55,117

 

$

34,133

 

 

 

 

Nine Months Ended

 

 

 

September 30,
2018

 

September 30,
2017

 

 

 

(in thousands)

 

Net income

 

$

111,598

 

$

43,733

 

Interest expense, net

 

3,370

 

15,451

 

Income tax expense

 

14,564

 

942

 

Depreciation and amortization

 

21,829

 

16,976

 

EBITDA (2)

 

151,361

 

77,102

 

Loss on debt extinguishment

 

4,305

 

 

Stock-based compensation

 

3,384

 

 

Adjusted EBITDA (2)

 

$

159,050

 

$

77,102

 

 


(2)         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 expense, income tax and depreciation and amortization. Cactus defines Adjusted EBITDA as EBITDA excluding (gain) loss on debt extinguishment and stock-based compensation.

 

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.

 

10


 

Cactus, Inc. — Supplemental Information

Depreciation and Amortization by Category

(unaudited)

 

 

 

Three Months Ended

 

 

 

September 30,
2018

 

June 30,
2018

 

September 30,
2017

 

 

 

(in thousands)

 

Cost of product revenue

 

$

792

 

$

793

 

$

796

 

Cost of rental revenue

 

4,671

 

4,433

 

3,814

 

Cost of field service and other revenue

 

2,269

 

2,039

 

1,365

 

Selling, general and administrative expenses

 

109

 

102

 

99

 

Total depreciation and amortization

 

$

7,841

 

$

7,367

 

$

6,074

 

 

 

 

Nine Months Ended

 

 

 

September 30,
2018

 

September 30,
2017

 

 

 

(in thousands)

 

Cost of product revenue

 

$

2,361

 

$

2,358

 

Cost of rental revenue

 

13,058

 

11,002

 

Cost of field service and other revenue

 

6,098

 

3,307

 

Selling, general and administrative expenses

 

312

 

309

 

Total depreciation and amortization

 

$

21,829

 

$

16,976

 

 

Cactus, Inc. — Supplemental Information

Estimated Market Share(4)

(unaudited)

 

 

 

Three Months Ended

 

 

 

September 30,
2018

 

June 30,
2018

 

September 30,
2017

 

 

 

 

 

 

 

 

 

Cactus U.S. onshore rigs followed

 

282

 

264

 

237

 

Baker Hughes U.S. onshore rig count quarterly average

 

1,029

 

1,017

 

924

 

Market share (4)

 

27.4

%

26.0

%

25.6

%

 


(4)         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.

 

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