Cactus (WHD) 10-Q 5 May 22 2022 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2022	May 03, 2022
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Document Transition Report	false
Entity File Number	001-38390
Entity Registrant Name	Cactus, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	35-2586106
Entity Address, Address Line One	920 Memorial City Way, Suite 300
Entity Address, City or Town	Houston,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77024
City Area Code	713
Local Phone Number	626-8800
Title of 12(b) Security	Class A Common Stock, par value $0.01
Trading Symbol	WHD
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001699136
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Amendment Flag	false
Class A Common Stock
Entity Common Stock, Shares Outstanding		60,451,746
Class B Common Stock
Entity Common Stock, Shares Outstanding		15,420,660

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	$ 297,741	$ 301,669
Accounts receivable, net of allowance of $616 and $741, respectively	104,211	89,205
Inventories	136,201	119,817
Prepaid expenses and other current assets	8,212	7,794
Total current assets	546,365	518,485
Property and equipment, net	132,746	129,117
Operating lease right-of-use assets, net	21,678	22,538
Goodwill	7,824	7,824
Deferred tax asset, net	316,526	303,074
Other noncurrent assets	1,052	1,040
Total assets	1,026,191	982,078
Current liabilities
Accounts payable	51,168	42,818
Accrued expenses and other current liabilities	28,746	28,240
Current portion of liability related to tax receivable agreement	11,769	11,769
Finance lease obligations, current portion	5,593	4,867
Operating lease liabilities, current portion	5,181	4,880
Total current liabilities	102,457	92,574
Deferred tax liability, net	1,432	1,172
Liability related to tax receivable agreement, net of current portion	283,620	269,838
Finance lease obligations, net of current portion	7,009	5,811
Operating lease liabilities, net of current portion	16,571	17,650
Total liabilities	411,089	387,045
Commitments and contingencies
Stockholders’ equity
Preferred stock, $0.01 par value, 10,000 shares authorized, none issued and outstanding	0	0
Additional paid-in capital	298,893	289,600
Retained earnings	192,493	178,446
Accumulated other comprehensive income	335	8
Total stockholders’ equity attributable to Cactus Inc.	492,323	468,644
Non-controlling interest	122,779	126,389
Total stockholders’ equity	615,102	595,033
Total liabilities and equity	1,026,191	982,078
Class A Common Stock
Stockholders’ equity
Common stock, $0.01 par value	602	590
Class B Common Stock
Stockholders’ equity
Common stock, $0.01 par value	$ 0	$ 0

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Allowance for accounts receivable	$ 616	$ 741
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Class A Common Stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	300,000,000	300,000,000
Common stock, shares issued (in shares)	60,197,000	59,035,000
Common stock, shares outstanding (in shares)	60,197,000	59,035,000
Class B Common Stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	215,000,000	215,000,000
Common stock, shares issued (in shares)	15,674,000	16,674,000
Common stock, shares outstanding (in shares)	15,674,000	16,674,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenues
Total revenues	$ 145,899	$ 84,417
Costs and expenses
Selling, general and administrative expenses	14,094	9,627
Total costs and expenses	114,909	72,782
Income from operations	30,990	11,635
Interest expense, net	(100)	(152)
Other expense, net	(1,115)	(406)
Income before income taxes	29,775	11,077
Income tax expense (benefit)	2,692	(4,059)
Net income	27,083	15,136
Less: net income attributable to non-controlling interest	6,467	3,577
Net income attributable to Cactus Inc.	$ 20,616	$ 11,559
Class A Common Stock
Earnings per share and weighted average shares outstanding
Earnings per Class A share - basic (in dollars per share)	$ 0.35	$ 0.24
Earnings per Class A share - diluted (in dollars per share)	$ 0.34	$ 0.19
Weighted average Class A shares outstanding - basic (in shares)	59,288	49,166
Weighted average Class A shares outstanding - diluted (in shares)	76,162	75,774
Product revenue
Revenues
Total revenues	$ 94,040	$ 51,956
Costs and expenses
Cost of revenue	60,920	36,521
Rental revenue
Revenues
Total revenues	22,343	12,489
Costs and expenses
Cost of revenue	15,089	12,171
Field service and other revenue
Revenues
Total revenues	29,516	19,972
Costs and expenses
Cost of revenue	$ 24,806	$ 14,463

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 27,083	$ 15,136
Foreign currency translation adjustments	436	(193)
Comprehensive income	27,519	14,943
Less: comprehensive income attributable to non-controlling interest	6,576	3,459
Comprehensive income attributable to Cactus Inc.	$ 20,943	$ 11,484

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Non-controlling Interest	Class A Common StockCommon stock	Class B Common StockCommon stock
Balance at the beginning of the period (in shares) at Dec. 31, 2020						47,713	27,655
Balance at the beginning of the period at Dec. 31, 2020	$ 550,770	$ 202,077	$ 150,086	$ 330	$ 197,800	$ 477	$ 0
Statement of Stockholders'/Members' Equity
Member distributions	(1,674)				(1,674)
Effect of CW Unit redemptions (in shares)						6,272	(6,272)
Effect of CW Unit redemptions	0	44,999			(45,062)	$ 63
Tax impact of equity transactions	505	505
Equity award vestings (in shares)						332
Equity award vestings	(3,138)	(1,048)			(2,093)	$ 3
Other comprehensive loss (income)	(193)			(75)	(118)
Stock-based compensation	2,003	1,342			661
Cash dividends declared	(4,359)		(4,359)
Net income	15,136		11,559		3,577
Balance at the end of the period (in shares) at Mar. 31, 2021						54,317	21,383
Balance at the end of the period at Mar. 31, 2021	559,050	247,875	157,286	255	153,091	$ 543	$ 0
Balance at the beginning of the period (in shares) at Dec. 31, 2021						59,035	16,674
Balance at the beginning of the period at Dec. 31, 2021	595,033	289,600	178,446	8	126,389	$ 590	$ 0
Statement of Stockholders'/Members' Equity
Member distributions	(1,654)				(1,654)
Effect of CW Unit redemptions (in shares)						1,000	(1,000)
Effect of CW Unit redemptions	0	7,878			(7,888)	$ 10
Tax impact of equity transactions	2,531	2,531
Equity award vestings (in shares)						162
Equity award vestings	(4,424)	(3,212)			(1,214)	$ 2
Other comprehensive loss (income)	436			327	109
Stock-based compensation	2,666	2,096			570
Cash dividends declared	(6,569)		(6,569)
Net income	27,083		20,616		6,467
Balance at the end of the period (in shares) at Mar. 31, 2022						60,197	15,674
Balance at the end of the period at Mar. 31, 2022	$ 615,102	$ 298,893	$ 192,493	$ 335	$ 122,779	$ 602	$ 0

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Stockholders' Equity [Abstract]
Cash dividend declared (in dollars per share)	$ 0.11	$ 0.09

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities
Net income	$ 27,083	$ 15,136
Reconciliation of net income to net cash provided by operating activities:
Depreciation and amortization	8,677	9,193
Deferred financing cost amortization	42	42
Stock-based compensation	2,666	2,003
Provision for expected credit losses	(110)	66
Inventory obsolescence	480	1,308
(Gain) loss on disposal of assets	(293)	4
Deferred income taxes	1,919	(4,691)
Loss from revaluation of liability related to tax receivable agreement	1,115	0
Changes in operating assets and liabilities:
Accounts receivable	(14,681)	(13,575)
Inventories	(16,648)	1,012
Prepaid expenses and other assets	(463)	(17)
Accounts payable	6,934	791
Accrued expenses and other liabilities	488	4,475
Net cash provided by operating activities	17,209	15,747
Cash flows from investing activities
Capital expenditures and other	(7,652)	(2,428)
Proceeds from sale of assets	358	400
Net cash used in investing activities	(7,294)	(2,028)
Cash flows from financing activities
Payments on finance leases	(1,438)	(1,174)
Dividends paid to Class A common stock shareholders	(6,664)	(4,497)
Distributions to members	(1,654)	(1,674)
Repurchases of shares	(4,424)	(3,138)
Net cash used in financing activities	(14,180)	(10,483)
Effect of exchange rate changes on cash and cash equivalents	337	75
Net increase (decrease) in cash and cash equivalents	(3,928)	3,311
Cash and cash equivalents
Beginning of period	301,669	288,659
End of period	297,741	291,970
Supplemental disclosure of cash flow information
Right-of-use assets obtained in exchange for new lease obligations	3,984	4,274
Property and equipment in accounts payable	$ 1,574	$ 362

Preparation of Interim Financia

Preparation of Interim Financial Statements and Other Items	3 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Preparation of Interim Financial Statements and Other Items	Preparation of Interim Financial Statements and Other Items Basis of Presentation The financial statements presented in this report represent the consolidation of Cactus, Inc. (“Cactus Inc.”) and its subsidiaries (the “Company”), including Cactus Wellhead, LLC (“Cactus LLC”). Cactus Inc. is a holding company whose only material asset is an equity interest consisting of units representing limited liability company interests in Cactus LLC (“CW Units”). Cactus Inc. is the sole managing member of Cactus LLC and operates and controls all of the business and affairs of Cactus LLC and conducts its business through Cactus LLC and its subsidiaries. As a result, Cactus Inc. consolidates the financial results of Cactus LLC and its subsidiaries and reports a non-controlling interest related to the portion of CW Units not owned by Cactus Inc., which reduces net income attributable to holders of Cactus Inc.’s Class A common stock, par value $0.01 per share (“Class A common stock”). Except as otherwise indicated or required by the context, all references to “Cactus,” “we,” “us” and “our” refer to Cactus Inc. and its consolidated subsidiaries. The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Accordingly, these consolidated financial statements do not include all information or notes required by generally accepted accounting principles for annual financial statements and should be read together with our Annual Report on Form 10-K for the year ended December 31, 2021. The consolidated financial statements include all adjustments, which are of a normal recurring nature, unless otherwise disclosed, necessary for a fair statement of the consolidated financial statements for the interim periods. The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year. Use of Estimates In preparing our consolidated financial statements in conformity with GAAP, we make numerous estimates and assumptions that affect the accounting for and recognition and disclosure of assets, liabilities, equity, revenues and expenses. We must make these estimates and assumptions because certain information that we use is dependent on future events, cannot be calculated with a high degree of precision from available data or is not otherwise capable of being readily calculated based on accepted methodologies. In some cases, these estimates are particularly difficult to determine, and we must exercise significant judgment. Actual results could differ materially from the estimates and assumptions that we use in the preparation of our consolidated financial statements. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation.

Concentrations, Risks and Uncer

Concentrations, Risks and Uncertainties	3 Months Ended
	Mar. 31, 2022
Risks and Uncertainties [Abstract]
Concentrations, Risks and Uncertainties	Concentrations, Risks and Uncertainties Significant Customers Our customers are primarily oil and natural gas E&P companies representing private operators, publicly-traded independents, majors and other companies with operations in the key U.S. oil and gas producing basins as well as Australia and the Kingdom of Saudi Arabia. For the three months ended March 31, 2022 and 2021, one customer represented approximately 10% and 12%, respectively, of our consolidated revenues. Significant Vendors

Accounts Receivable and Allowan

Accounts Receivable and Allowance for Credit Losses	3 Months Ended
	Mar. 31, 2022
Receivables [Abstract]
Accounts Receivable and Allowance for Credit Losses	Accounts Receivable and Allowance for Credit Losses We extend credit to customers in the normal course of business. Our customers are predominantly oil and gas E&P companies located in the U.S. Our receivables are short-term in nature and typically due in 30 to 45 days. We do not accrue interest on delinquent receivables. Accounts receivable includes amounts billed and currently due from customers and unbilled amounts for products delivered and services performed for which billings have not yet been submitted to the customers. Total unbilled revenue included in accounts receivable as of March 31, 2022 and December 31, 2021 was $22.8 million and $24.1 million, respectively. We maintain an allowance for credit losses to provide for the amount of billed receivables we believe to be at risk of loss. In our determination of the allowance for credit losses, we pool receivables with similar risk characteristics based on customer size, credit ratings, payment history, bankruptcy status and other factors known to us and apply an expected credit loss percentage. The expected credit loss percentage is determined using historical loss data adjusted for current conditions and forecasts of future economic conditions. Accounts deemed uncollectible are applied against the allowance for credit losses. The following is a rollforward of our allowance for credit losses. Balance at Expense (Credit) Write off Balance at Three Months Ended March 31, 2022 $ 741 $ (110) $ (15) $ 616 Three Months Ended March 31, 2021 598 66 (34) 630

Inventories

Inventories	3 Months Ended
	Mar. 31, 2022
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using standard cost (which approximates average cost) and weighted average methods. Costs include an application of related material, direct labor, duties, tariffs, freight and overhead costs. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Reserves are made for excess and obsolete items based on a range of factors, including age, usage and technological or market changes that may impact demand for those products. Inventories consist of the following: March 31, December 31, Raw materials $ 2,148 $ 1,870 Work-in-progress 5,465 4,288 Finished goods 128,588 113,659 $ 136,201 $ 119,817

Property and Equipment, net

Property and Equipment, net	3 Months Ended
	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Property and Equipment, net	Property and Equipment, net Property and equipment are stated at cost. We manufacture or construct most of our rental assets. During the manufacture of these assets, they are reflected as construction in progress until complete. Property and equipment consists of the following: March 31, December 31, Land $ 5,590 $ 3,203 Buildings and improvements 23,927 22,532 Machinery and equipment 57,467 56,937 Vehicles under finance lease 26,425 23,450 Rental equipment 186,418 180,704 Furniture and fixtures 1,757 1,755 Computers and software 3,520 3,495 Gross property and equipment 305,104 292,076 Less: Accumulated depreciation (184,128) (175,992) Net property and equipment 120,976 116,084 Construction in progress 11,770 13,033 Total property and equipment, net $ 132,746 $ 129,117

Debt

Debt	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
Debt	Debt We had no debt outstanding as of March 31, 2022 and December 31, 2021. On August 21, 2018, Cactus LLC entered into a five-year senior secured asset-based revolving credit facility with a syndicate of lenders and JPMorgan Chase Bank, N.A., as administrative agent for such lenders and as an issuing bank and swingline lender (the “ABL Credit Facility”). The ABL Credit Facility was amended in September 2020 and provides for up to $75.0 million in revolving commitments, up to $15.0 million of which is available for the issuance of letters of credit. The maximum amount that Cactus LLC may borrow under the ABL Credit Facility is subject to a borrowing base, which is based on a percentage of eligible accounts receivable and eligible inventory, subject to reserves and other adjustments. We were in compliance with all covenants under the ABL Credit Facility as of March 31, 2022.

Revenue

Revenue	3 Months Ended
	Mar. 31, 2022
Revenue from Contract with Customer [Abstract]
Revenue	Revenue The majority of our revenues are derived from short-term contracts for fixed consideration or in the case of rentals, for a fixed charge per day while the equipment is in use by the customer. Product sales generally do not include right of return or other significant post-delivery obligations. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Revenues are recognized when we satisfy a performance obligation by transferring control of the promised goods or providing services to our customers at a point in time, in an amount specified in the contract with our customer and that reflects the consideration to which we expect to be entitled in exchange for those goods or services. The majority of our contracts with customers contain a single performance obligation to provide agreed upon products or services. For contracts with multiple performance obligations, we allocate revenue to each performance obligation based on its relative standalone selling price. We do not assess whether promised goods or services are performance obligations if they are immaterial in the context of the contract with the customer. We do not incur any material costs of obtaining contracts. We do not adjust the amount of consideration per the contract for the effects of a significant financing component when we expect, at contract inception, that the period between the transfer of a promised good or service to a customer and when the customer pays for that good or service will be one year or less, which is in substantially all cases. Payment terms and conditions vary, although terms generally include a requirement of payment within 30 to 45 days. Revenues are recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. We treat shipping and handling associated with outbound freight as a fulfillment cost instead of as a separate performance obligation. We recognize the cost for the associated shipping and handling when incurred as an expense in cost of sales. We disaggregate revenue into three categories: product revenues, rental revenues and field service and other revenues. We have predominately domestic operations with a small amount of sales in Australia and the Kingdom of Saudi Arabia. The following table presents our revenues disaggregated by category: Three Months Ended 2022 2021 Product revenue $ 94,040 65 % $ 51,956 61 % Rental revenue 22,343 15 % 12,489 15 % Field service and other revenue 29,516 20 % 19,972 24 % Total revenues $ 145,899 100 % $ 84,417 100 % At March 31, 2022, we had a deferred revenue balance of $1.2 million compared to the December 31, 2021 balance of $1.8 million. Deferred revenue represents our obligation to transfer products to or perform services for a customer for which we have received cash or billed in advance. The revenue that has been deferred will be recognized upon product delivery or as services are performed. As of March 31, 2022, we did not have any contracts with an original length of greater than a year from which revenue is expected to be recognized in the future related to performance obligations that are unsatisfied.

Tax Receivable Agreement (TRA)

Tax Receivable Agreement (TRA)	3 Months Ended
	Mar. 31, 2022
Tax Receivable Agreement
Tax Receivable Agreement (TRA)	Tax Receivable Agreement (TRA) In connection with our initial public offering (“IPO”) in February 2018, we entered into the TRA which generally provides for payment by Cactus Inc. to the TRA Holders of 85% of the net cash savings, if any, in U.S. federal, state and local income tax and franchise tax that Cactus Inc. actually realizes or is deemed to realize in certain circumstances. Cactus Inc. will retain the benefit of the remaining 15% of these net cash savings. The TRA liability is calculated by determining the tax basis subject to the TRA (“tax basis”) and applying a blended tax rate to the basis differences and calculating the resulting iterative impact. The blended tax rate consists of the U.S. federal income tax rate and an assumed combined state and local income tax rate driven by the apportionment factors applicable to each state. Subsequent changes to the measurement of the TRA liability are recognized in the statements of income as a component of other expense, net. As of March 31, 2022, the total liability from the TRA was $295.4 million with $11.8 million reflected in current liabilities based on the expected timing of our next payment. The payments under the TRA will not be conditional on a holder of rights under the TRA having a continued ownership interest in either Cactus LLC or Cactus Inc. The term of the TRA commenced upon completion of our IPO and will continue until all tax benefits that are subject to the TRA have been utilized or expired, unless we exercise our right to terminate the TRA. If we elect to terminate the TRA early (or it is terminated early due to certain mergers, asset sales, other forms of business combinations or other changes of control), our obligations under the TRA would accelerate and we would be required to make an immediate payment equal to the present value of the anticipated future payments to be made by us under the TRA and such payment is expected to be substantial. The calculation of anticipated future payments will be based upon certain assumptions and deemed events set forth in the TRA, including the assumptions that (i) we have sufficient taxable income to fully utilize the tax benefits covered by the TRA and (ii) any CW Units (other than those held by Cactus Inc.) outstanding on the termination date are deemed to be redeemed on the termination date. Any early termination payment may be made significantly in advance of the actual realization, if any, of the future tax benefits to which the termination payment relates. We may elect to defer payments due under the TRA if we do not have available cash to satisfy our payment obligations under the TRA. Any such deferred payments under the TRA generally will accrue interest from the due date for such payment until the payment date.

Equity

Equity	3 Months Ended
	Mar. 31, 2022
Equity [Abstract]
Equity	Equity As of March 31, 2022, Cactus Inc. owned 79.3% of Cactus LLC as compared to 78.0% as of December 31, 2021. As of March 31, 2022, Cactus Inc. had outstanding 60.2 million shares of Class A common stock (representing 79.3% of the total voting power) and 15.7 million shares of Class B common stock (representing 20.7% of the total voting power). Redemptions of CW Units Pursuant to the First Amended and Restated Limited Liability Company Operating Agreement of Cactus Wellhead, LLC (the “Cactus Wellhead LLC Agreement”), holders of CW Units are entitled to redeem their CW Units, which results in additional Class A common stock outstanding. Since our IPO in February 2018, 44.9 million CW Units and a corresponding number of shares of Class B common stock have been redeemed in exchange for shares of Class A common stock. During the three months ended March 31, 2022, one million CW Units, together with a corresponding number of shares of Class B common stock, were redeemed in exchange for Class A common stock in accordance with the Cactus Wellhead LLC Agreement. There was no change in the combined number of Cactus Inc. voting shares outstanding as a result of the redemptions. On March 9, 2021, Cactus Inc. entered into an underwriting agreement with Cactus LLC, certain selling stockholders of Cactus (the “Selling Stockholders”) and the underwriters named therein, providing for the offer and sale by the Selling Stockholders (the “2021 Secondary Offering”) of up to 6,325,000 shares of Class A common stock at a price to the underwriters of $30.555 per share. On March 12, 2021, in connection with the 2021 Secondary Offering, certain of the Selling Stockholders exercised their right to redeem 6,272,500 CW Units, together with a corresponding number of shares of Class B common stock, as provided in the Cactus Wellhead LLC Agreement. Upon the closing of the 2021 Secondary Offering, Cactus Inc. acquired the redeemed CW Units and a corresponding number of shares of Class B common stock (which shares of Class B common stock were then cancelled) and issued 6,272,500 new shares of Class A common stock to the underwriters at the direction of the redeeming Selling Stockholders, as provided in the Cactus Wellhead LLC Agreement. In addition, certain other Selling Stockholders sold 52,500 shares of Class A common stock in the 2021 Secondary Offering, which shares were owned by them directly as of the time of the 2021 Secondary Offering. Cactus did not receive any of the proceeds from the sale of common stock in the 2021 Secondary Offering and incurred $0.4 million in expenses which were recorded in other expense, net, in the consolidated statements of income. There was no change in the combined number of Cactus Inc. voting shares outstanding as a result of the 2021 Secondary Offering. We recorded an increase in additional paid-in capital with a corresponding decrease in the non-controlling interest in equity of approximately $45.0 million and an increase in the TRA liability of $46.7 million resulting from the redemption of CW Units pursuant to the 2021 Secondary Offering. Additionally, we recognized a $5.1 million tax benefit for a partial valuation allowance release related to the realizable portion of the deferred tax asset. Dividends Aggregate cash dividends of $0.11 and $0.09 per share of Class A common stock were declared during the three months ended March 31, 2022 and 2021 totaling $6.6 million and $4.4 million, respectively. Cash dividends paid during the three months ended March 31, 2022 and 2021 totaled $6.7 million and $4.5 million, respectively. Dividends accrue on unvested equity-based awards on the date of record and are paid upon vesting. Dividends are not paid to our Class B common stockholders; however, a corresponding distribution up to the same amount per share as our Class A common stockholders is paid to the owners of CW Units other than Cactus Inc. for any dividends declared on our Class A common stock. See further discussion of the distributions below under “Member Distributions.” Member Distributions Distributions made by Cactus LLC are generally required to be made pro rata among all its members. For the three months ended March 31, 2022, Cactus LLC distributed $6.3 million to Cactus Inc. to fund its dividend payments and made pro rata distributions to the other members totaling $1.7 million over the same period. During the three months ended March 31, 2021, Cactus LLC distributed $4.2 million to Cactus Inc. to fund its dividend payments and made pro rata distributions to the other members totaling $1.7 million. Limitation of Members’ Liability Under the terms of the Cactus Wellhead LLC Agreement, the members of Cactus LLC are not obligated for debt, liabilities, contracts or other obligations of Cactus LLC. Profits and losses are allocated to members as defined in the Cactus Wellhead LLC Agreement.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and ContingenciesWe are involved in various disputes arising in the ordinary course of business. Management does not believe the outcome of these disputes will have a material adverse effect on our consolidated financial position or consolidated results of operations.

Earnings per Share

Earnings per Share	3 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Earnings per Share	Earnings per Share Basic earnings per share of Class A common stock is calculated by dividing the net income attributable to Cactus Inc. during the period by the weighted average number of shares of Class A common stock outstanding during the same period. Diluted earnings per share of Class A common stock is calculated by dividing the net income attributable to Cactus Inc. during that period by the weighted average number of common shares outstanding assuming all potentially dilutive shares were issued. We use the if-converted method to determine the potential dilutive effect of outstanding CW Units (and corresponding shares of outstanding Class B common stock), the treasury stock method to determine the potential dilutive effect of unvested restricted stock units assuming that the proceeds will be used to purchase shares of Class A common stock and the contingently issuable share method to determine the potential dilutive effect of unvested performance stock units. The following table summarizes the basic and diluted earnings per share calculations: Three Months Ended 2022 2021 Numerator: Net income attributable to Cactus Inc.—basic $ 20,616 $ 11,559 Net income attributable to non-controlling interest (1) 4,953 2,874 Net income attributable to Cactus Inc.—diluted (1) $ 25,569 $ 14,433 Denominator: Weighted average Class A shares outstanding—basic 59,288 49,166 Effect of dilutive shares 16,874 26,608 Weighted average Class A shares outstanding—diluted 76,162 75,774 Earnings per Class A share—basic $ 0.35 $ 0.24 Earnings per Class A share—diluted (1) $ 0.34 $ 0.19 (1) The numerator is adjusted in the calculation of diluted earnings per share under the if-converted method to include net income attributable to the non-controlling interest calculated as its pre-tax income adjusted for a corporate effective tax rate of 26.0% for the three months ended March 31, 2022 and 25.0% for the three months ended March 31, 2021.

Preparation of Interim Financ_2

Preparation of Interim Financial Statements and Other Items (Policies)	3 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The financial statements presented in this report represent the consolidation of Cactus, Inc. (“Cactus Inc.”) and its subsidiaries (the “Company”), including Cactus Wellhead, LLC (“Cactus LLC”). Cactus Inc. is a holding company whose only material asset is an equity interest consisting of units representing limited liability company interests in Cactus LLC (“CW Units”). Cactus Inc. is the sole managing member of Cactus LLC and operates and controls all of the business and affairs of Cactus LLC and conducts its business through Cactus LLC and its subsidiaries. As a result, Cactus Inc. consolidates the financial results of Cactus LLC and its subsidiaries and reports a non-controlling interest related to the portion of CW Units not owned by Cactus Inc., which reduces net income attributable to holders of Cactus Inc.’s Class A common stock, par value $0.01 per share (“Class A common stock”). Except as otherwise indicated or required by the context, all references to “Cactus,” “we,” “us” and “our” refer to Cactus Inc. and its consolidated subsidiaries. The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Accordingly, these consolidated financial statements do not include all information or notes required by generally accepted accounting principles for annual financial statements and should be read together with our Annual Report on Form 10-K for the year ended December 31, 2021. The consolidated financial statements include all adjustments, which are of a normal recurring nature, unless otherwise disclosed, necessary for a fair statement of the consolidated financial statements for the interim periods. The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year.
Use of Estimates	Use of Estimates In preparing our consolidated financial statements in conformity with GAAP, we make numerous estimates and assumptions that affect the accounting for and recognition and disclosure of assets, liabilities, equity, revenues and expenses. We must make these estimates and assumptions because certain information that we use is dependent on future events, cannot be calculated with a high degree of precision from available data or is not otherwise capable of being readily calculated based on accepted methodologies. In some cases, these estimates are particularly difficult to determine, and we must exercise significant judgment. Actual results could differ materially from the estimates and assumptions that we use in the preparation of our consolidated financial statements.
Reclassifications	Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation.

Accounts Receivable and Allow_2

Accounts Receivable and Allowance for Credit Losses (Tables)	3 Months Ended
	Mar. 31, 2022
Receivables [Abstract]
Schedule of rollforward of allowance for credit losses	The following is a rollforward of our allowance for credit losses. Balance at Expense (Credit) Write off Balance at Three Months Ended March 31, 2022 $ 741 $ (110) $ (15) $ 616 Three Months Ended March 31, 2021 598 66 (34) 630

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2022
Inventory Disclosure [Abstract]
Schedule of inventories	Inventories consist of the following: March 31, December 31, Raw materials $ 2,148 $ 1,870 Work-in-progress 5,465 4,288 Finished goods 128,588 113,659 $ 136,201 $ 119,817

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	3 Months Ended
	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Schedule of property and equipment net	Property and equipment consists of the following: March 31, December 31, Land $ 5,590 $ 3,203 Buildings and improvements 23,927 22,532 Machinery and equipment 57,467 56,937 Vehicles under finance lease 26,425 23,450 Rental equipment 186,418 180,704 Furniture and fixtures 1,757 1,755 Computers and software 3,520 3,495 Gross property and equipment 305,104 292,076 Less: Accumulated depreciation (184,128) (175,992) Net property and equipment 120,976 116,084 Construction in progress 11,770 13,033 Total property and equipment, net $ 132,746 $ 129,117

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2022
Revenue from Contract with Customer [Abstract]
Schedule of revenues disaggregated by category	The following table presents our revenues disaggregated by category: Three Months Ended 2022 2021 Product revenue $ 94,040 65 % $ 51,956 61 % Rental revenue 22,343 15 % 12,489 15 % Field service and other revenue 29,516 20 % 19,972 24 % Total revenues $ 145,899 100 % $ 84,417 100 %

Earnings per Share (Tables)

Earnings per Share (Tables)	3 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Schedule of basic and diluted earnings per share	The following table summarizes the basic and diluted earnings per share calculations: Three Months Ended 2022 2021 Numerator: Net income attributable to Cactus Inc.—basic $ 20,616 $ 11,559 Net income attributable to non-controlling interest (1) 4,953 2,874 Net income attributable to Cactus Inc.—diluted (1) $ 25,569 $ 14,433 Denominator: Weighted average Class A shares outstanding—basic 59,288 49,166 Effect of dilutive shares 16,874 26,608 Weighted average Class A shares outstanding—diluted 76,162 75,774 Earnings per Class A share—basic $ 0.35 $ 0.24 Earnings per Class A share—diluted (1) $ 0.34 $ 0.19 (1) The numerator is adjusted in the calculation of diluted earnings per share under the if-converted method to include net income attributable to the non-controlling interest calculated as its pre-tax income adjusted for a corporate effective tax rate of 26.0% for the three months ended March 31, 2022 and 25.0% for the three months ended March 31, 2021.

Preparation of Interim Financ_3

Preparation of Interim Financial Statements and Other Items (Details) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
Class A Common Stock
Organization and Nature of Operations
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01

Concentrations, Risks and Unc_2

Concentrations, Risks and Uncertainties (Details)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
One vendor | Significant vendors | Purchases
Concentrations, Risks and Uncertainties
Concentration risk	10.00%	12.00%
One customer | Customer | Total revenues
Concentrations, Risks and Uncertainties
Concentration risk	10.00%	12.00%

Accounts Receivable and Allow_3

Accounts Receivable and Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Accounts Receivable
Unbilled revenue	$ 22,800		$ 24,100
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at Beginning of Period	741	$ 598
Expense (Credit)	(110)	66
Write off	(15)	(34)
Balance at End of Period	$ 616	$ 630

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Summary of inventories
Raw materials	$ 2,148	$ 1,870
Work-in-progress	5,465	4,288
Finished goods	128,588	113,659
Total inventory	$ 136,201	$ 119,817

Property and Equipment, net (De

Property and Equipment, net (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Gross property and equipment	$ 305,104	$ 292,076
Less: Accumulated depreciation	(184,128)	(175,992)
Net property and equipment	120,976	116,084
Total property and equipment, net	132,746	129,117
Land
Property, Plant and Equipment [Line Items]
Gross property and equipment	5,590	3,203
Buildings and improvements
Property, Plant and Equipment [Line Items]
Gross property and equipment	23,927	22,532
Machinery and equipment
Property, Plant and Equipment [Line Items]
Gross property and equipment	57,467	56,937
Vehicles under finance lease
Property, Plant and Equipment [Line Items]
Vehicles under finance lease	26,425	23,450
Rental equipment
Property, Plant and Equipment [Line Items]
Gross property and equipment	186,418	180,704
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Gross property and equipment	1,757	1,755
Computers and software
Property, Plant and Equipment [Line Items]
Gross property and equipment	3,520	3,495
Construction in progress
Property, Plant and Equipment [Line Items]
Gross property and equipment	$ 11,770	$ 13,033

Debt (Details)

Debt (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021	Aug. 21, 2018
Long-term Debt
Long-term debt outstanding	$ 0	$ 0
Cactus LLC | ABL Credit Facility | Line of Credit
Long-term Debt
Term of long term debt			5 years
Maximum borrowing capacity			$ 75,000,000
Cactus LLC | Letters of credit | Line of Credit
Long-term Debt
Maximum borrowing capacity			$ 15,000,000

Revenue - Disaggregated by Cate

Revenue - Disaggregated by Category (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Disaggregation of Revenue [Line Items]
Total revenues	$ 145,899	$ 84,417
Revenue as a percentage	100.00%	100.00%
Product revenue
Disaggregation of Revenue [Line Items]
Total revenues	$ 94,040	$ 51,956
Revenue as a percentage	65.00%	61.00%
Rental revenue
Disaggregation of Revenue [Line Items]
Total revenues	$ 22,343	$ 12,489
Revenue as a percentage	15.00%	15.00%
Field service and other revenue
Disaggregation of Revenue [Line Items]
Total revenues	$ 29,516	$ 19,972
Revenue as a percentage	20.00%	24.00%

Revenue - Contracts with Custom

Revenue - Contracts with Customers (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Contract Balances
Deferred revenue	$ 1.2	$ 1.8

Tax Receivable Agreement (TRA)

Tax Receivable Agreement (TRA) (Details) - USD ($) $ in Thousands	1 Months Ended
	Feb. 28, 2018	Mar. 31, 2022	Dec. 31, 2021
Tax Receivable Agreement
Tax savings payable to TRA Holders	85.00%
Tax savings benefit retained by Cactus Inc	15.00%
Total TRA liability		$ 295,400
Current portion of liability related to tax receivable agreement		$ 11,769	$ 11,769

Equity (Details)

Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	Mar. 12, 2021	Mar. 09, 2021	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	Mar. 31, 2022
Equity
Effect of CW Unit redemptions			$ 0	$ 0
TRA Liability Increase				46,700
Tax benefit for partial valuation allowance				$ 5,100
Cash dividend declared (in dollars per share)			$ 0.11	$ 0.09
Pro rata distributions made to other members			$ 1,654	$ 1,674
Additional Paid-In Capital
Equity
Effect of CW Unit redemptions			7,878	44,999
Non-controlling Interest
Equity
Effect of CW Unit redemptions			$ (7,888)	(45,062)
Cactus LLC
Equity
Ownership interest			79.30%		78.00%
Cactus Inc
Equity
Cash distributions to unit holders			$ 6,300	4,200
CW Unit Holders other than Cactus, Inc.
Equity
Pro rata distributions made to other members			$ 1,700	$ 1,700
March 2021 Secondary Offering | Additional Paid-In Capital
Equity
Effect of CW Unit redemptions	$ 45,000
March 2021 Secondary Offering | Non-controlling Interest
Equity
Effect of CW Unit redemptions	(45,000)
March 2021 Secondary Offering | Other Nonoperating Income (Expense)
Equity
Offering expenses	$ 400
Class A Common Stock
Equity
Common stock, shares outstanding (in shares)			60,197,000		59,035,000	60,197,000
Shares outstanding, percentage of total voting power			79.30%			79.30%
Cash dividend declared (in dollars per share)			$ 0.11	$ 0.09
Dividends declared			$ 6,600	$ 4,400
Dividends paid			$ 6,700	$ 4,500
Class A Common Stock | Cactus Wellhead LLC Agreement
Equity
CW Unit redemptions (in shares)			1,000,000			44,900,000
Class A Common Stock | March 2021 Secondary Offering
Equity
CW Unit redemptions (in shares)	6,272,500
Shares sold (in shares)		6,325,000
Price of stock (in dollars per share)		$ 30.555
Other shares sold (in shares)	52,500
Class B Common Stock
Equity
Common stock, shares outstanding (in shares)			15,674,000		16,674,000	15,674,000
Shares outstanding, percentage of total voting power			20.70%			20.70%

Earnings per Share (Details)

Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Numerator:
Net income attributable to Cactus Inc.	$ 20,616	$ 11,559
Net income attributable to non-controlling interest	4,953	2,874
Net income attributable to Cactus Inc. - diluted	$ 25,569	$ 14,433
Denominator:
Effect of dilutive shares (in shares)	16,874	26,608
Corporate effective income tax rate, if-converted method	26.00%	25.00%
Class A Common Stock
Denominator:
Weighted average Class A Shares Outstanding - basic (in shares)	59,288	49,166
Weighted average Class A shares outstanding - diluted (in shares)	76,162	75,774
Earnings per Class A share - basic (in dollars per share)	$ 0.35	$ 0.24
Earnings per Class A share - diluted (in dollars per share)	$ 0.34	$ 0.19