Cactus : June Investor Presentation 2021

Investor Presentation

Cactus, Inc. (NYSE: WHD) June 2021

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 level of growth or decline in the number of rigs, pad sizes, well spacings and associated well count; availability of takeaway and storage capacity; availability of capital and the associated capital spending discipline exercised by customers; 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 completion activity; the size and timing of orders; availability of raw materials and imported items; shipping costs and availability of ocean freight from China; transportation differentials associated with reduced capacity in and out of the storage hub in Cushing, Oklahoma; expectations regarding raw materials, overhead and operating costs and margins; availability 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 the political, regulatory, economic and social conditions domestically or internationally; the ultimate severity and duration of the ongoing outbreak of coronavirus (COVID-19) and the extent of its impact on our business; outbreaks of other pandemic or contagious diseases that may disrupt our operations, suppliers or customers 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; increases in import tariffs assessed on products from China and imported raw materials used in the manufacture of our goods in the United States 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 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.	2

Experienced Executive Team

Scott Bender

President & CEO

Joel Bender

Senior Vice President & Chief Operating Officer

Steven Bender

Vice President of

Operations

Steve Tadlock

Vice President, Chief

Financial Officer &

Treasurer

David Isaac

Vice President of

Administration and

General Counsel

• Mr. Bender has served as President and CEO since co-founding Cactus Wellhead, LLC ("Cactus LLC") in 2011.
• Mr. Bender previously was President of Wood Group Pressure Control from 2000 to 2011.
• Mr. Bender successfully built and monetized Ingram Cactus Company (sold to Cameron in 1996) and led Wood Group
  Pressure Control's profitable expansion until its sale to General Electric in 2011.
• Mr. Bender graduated from Princeton University in 1975 with a Bachelor of Science in Engineering and from the University of Texas at Austin in 1977 with a Master of Business Administration.
• Mr. Bender has served as Senior Vice President and COO since co-founding Cactus LLC in 2011.
• Mr. Bender previously was Senior Vice President of Wood Group Pressure Control from 2000 to 2011.
• Mr. Bender successfully built and monetized Ingram Cactus Company (sold to Cameron in 1996) and led Wood Group
  Pressure Control's profitable expansion until its sale to General Electric in 2011.
• Mr. Bender graduated from Washington University in 1981 with a Bachelor of Science in Engineering and from the University of Houston in 1985 with a Master of Business Administration.
• Mr. Bender has served as Vice President of Operations of Cactus LLC since 2011, managing all US service center and field operations.
• Mr. Bender previously was Rental Business Manager of Wood Group Pressure Control from 2005 to 2011.
• Mr. Bender graduated from Rice University in 2005 with a Bachelor of Arts in English and Hispanic Studies and from the University of Texas at Austin in 2010 with a Master of Business Administration.
• Mr. Tadlock has served as Vice President, Chief Financial Officer & Treasurer, since March 2019.
• Mr. Tadlock previously served as Vice President and Chief Administrative Officer since March 2018 and has also served as VP of Corporate Services since June 2017. He has worked with Cactus LLC since its founding in 2011 as a Board observer.
• Mr. Tadlock previously worked at Cadent Energy Partners, where he served as a Partner from 2014 to 2017.
• Mr. Tadlock graduated from Princeton University in 2001 with a Bachelor of Science in Engineering and from the Wharton School at the University of Pennsylvania in 2007 with a Master of Business Administration.
• Mr. Isaac has served as Vice President of Administration and General Counsel since September 2018.
• Mr. Isaac previously worked at Rockwater Energy Solutions, Inc. and most recently served as Senior Vice President of Human Resources and General Counsel.
• Mr. Isaac previously was the Vice President of Human Resources and General Counsel of Inmar, Inc.
• Mr. Isaac graduated from The College of William & Mary in 1983 with a Bachelor of Arts in Economics and from The Ohio State University in 1986 with a Juris Doctor.

3

Investment Highlights

	1	A Leading Pure Play Wellhead and Pressure Control
	Equipment Solutions Provider for Onshore Markets

	2	Innovative & Differentiated Products & Services That
	Drive Relative Margin Stability Through the Cycle

3 Dynamic Operating and Manufacturing Capabilities

4 Returns Focused with Large Net Cash Balance

	5	Experienced Management Team with Significant
	Equity Ownership & Strong Industry Relationships

Through-Cycle Outperformance

4

Company Overview

Cactus designs, manufactures, sells and rents highly engineered products which generate

improved drilling and completions efficiencies while enhancing safety

2020 Revenue by Type

Field

Service

and

Other

22%

Rental	Product
59%
19%

*Product Revenue Includes Drilling and Production

Consumables

Selected Active Basins

• Bakken ◼ DJ / Powder River
• Eagle Ford ◼ Marcellus / Utica

◼ Permian

◼ Haynesville

• Cooper, Australia

Revenue ($ in millions)

					$544.1	$628.4
				$341.2			$348.6
			$155.0
			2016	2017	2018	2019	2020
	Adjusted EBITDA(1) ($ in millions)
					$212.6	$229.0
				$112.1			$121.0
			$32.2
			2016	2017	2018	2019	2020
Adj. EBITDA(1)
as % of	20.8%	32.9%	39.1%	36.4%	34.7%
Revenue
	Adjusted EBITDA(1) - Net Capital Expenditures(2) as % of Revenue
				23.9%	26.5%	27.5%	29.5%
			9.6%
			2016	2017	2018	2019	2020

Source: Company filings.	5

1. EBITDA and Adjusted EBITDA are non-GAAP financial measures. The Appendix at the back of this presentation contains a reconciliation of EBITDA and Adjusted EBITDA to net income, the most comparable financial measure calculated in accordance with GAAP.
2. Net Capital Expenditures equals net cash flows from investing activities.