Cactus Inc Files For Mixed Shelf, Size Not Disclosed - Sec Filing

Cactus, Inc. WHD reported fourth-quarter 2024 adjusted earnings of 71 cents per share, which missed the Zacks Consensus Estimate of 73 cents. The bottom line declined from the year-ago quarter’s figure of 81 cents.

Total quarterly revenues of $272.1 million missed the Zacks Consensus Estimate of $276 million. The top line declined from the year-ago figure of $275 million.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The weak quarterly results can be attributed to decreased revenues from the Pressure Control segment and an overall lower segment EBITDA.

Cactus, Inc. Price, Consensus and EPS Surprise

Cactus, Inc. price-consensus-eps-surprise-chart | Cactus, Inc. Quote

Business Segments

Following the closure of the FlexSteel acquisition, Cactus started reporting under two business segments — Pressure Control and Spoolable Technologies.

WHD generated revenues of $176.7 million from the Pressure Control segment, down from $180.5 million reported in the year-ago quarter. The segment was partially affected by decreased customer drilling and completion activity. The top line was above our estimate of $174 million.

Adjusted Segment EBITDA for Pressure Control totaled $61.5 million, down from $64.7 million in the prior-year quarter. The reported figure beat our estimate of $60.3 million.

Revenues from the Spoolable Technologies segment totaled $96.1 million, up from $94.4 million in the prior-year quarter. The figure missed our estimate of $101.5 million. The segment was affected by reduced customer activity levels in the seasonally slow quarter.

Adjusted Segment EBITDA for the unit totaled $35.3 million, down from $39.2 million a year ago. The figure missed our estimate of $38.5 million.

Capex and Cash Flow

Cactus’ capital expenditure and other amount for the quarter totaled $11.3 million. Operating cash flow totaled $66.6 million.

Balance Sheet

Cactus had cash and cash equivalents of $342.8 million at the end of the fourth quarter of 2024. The company had no bank debt outstanding as of Dec. 31, 2024.

Outlook

The company expects U.S. land activity in the first quarter of 2025 to remain flat on a sequential basis, with Pressure Control revenues flat to slightly higher and Spoolable Technologies revenues softer.

For full-year 2025, WHD expects net capital expenditures to be in the range of $45-$55 million.

Zacks Rank and Key Picks

Currently, WHD carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector may look at some better-ranked stocks like Antero Resources Corporation AR, NextDecade Corporation NEXT and EOG Resources, Inc. EOG. While Antero Resources and NextDecade presently sport a Zacks Rank #1 (Strong Buy) each, EOG Resources carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Antero Resources, one of the fastest-growing natural gas producers in the United States, boasts a strategic acreage position in the low-risk properties of the Appalachian Basin. The company has more than two decades of premium low-cost drilling inventory in the prolific basin, securing a strong production outlook. AR is well-positioned to capitalize on the increasing demand for LNG, both in the United States and globally.

NextDecade is an emerging player in the LNG space with its Rio Grande LNG project in Texas. As demand for LNG continues to grow, the company’s strategic investments in infrastructure and its planned liquefaction capacity provide strong upside potential. With the global LNG market expanding, NEXT is well-positioned to tap into the increasing export demand from the United States.

EOG Resources is an oil and gas exploration and production company with an attractive growth profile, upper-quartile returns and a disciplined management team. With highly productive acreages in premier oil shale plays like the Permian and Eagle Ford, the company has numerous untapped high-quality drilling sites. Additionally, EOG maintains a strong balance sheet and continues to reward shareholders with regular and special dividends.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Energy stocks rose premarket Thursday with the Energy Select Sector SPDR Fund 0.4% higher recently.

The United States Oil Fund was up 1.7% and the United States Natural Gas Fund was 0.2% lower.

Front-month US West Texas Intermediate crude oil was up 1.3% at $69.53 per barrel at the New York Mercantile Exchange. Global benchmark North Sea Brent crude oil gained 1.2% to $73.43 per barrel, and natural gas futures were 0.2% lower at $3.95 per 1 million British Thermal Units.

TechnipFMC shares were up over 5% after the company reported higher Q4 adjusted earnings and revenue.

Crescent Energy shares were more than 2% higher after the company reported an increase in Q4 revenue, along with a swing to net loss during the period.

Cactus shares were up over 4% even after the company reported lower Q4 adjusted earnings and revenue.

Cactus Inc. (WHD) filed a Form 8K - Operations and Financial Condition - with the U.S Securities and Exchange Commission on February 27, 2025.

The following information is furnished pursuant to Item 2.02.

On February 26, 2025, Cactus, Inc. issued a press release announcing its results for the fourth quarter and full year ended December 31, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

The information being furnished pursuant to this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

The full text of this SEC filing can be retrieved at: https://www.sec.gov/Archives/edgar/data/1699136/000169913625000012/whd-20250226.htm

Any exhibits and associated documents for this SEC filing can be retrieved at: https://www.sec.gov/Archives/edgar/data/1699136/000169913625000012/0001699136-25-000012-index.htm

Public companies must file a Form 8-K, or current report, with the SEC generally within four days of any event that could materially affect a company's financial position or the value of its shares.