Fresh off positive Q1, wellhead supplier Cactus issues stock

By Luke Geiver | July 09, 2018

Following a positive first quarter, Catcus has issued pricing for 10 million shares of Class A common stock at price yet to be determined. The wellhead services and rental company that is active in the Bakken, Permian, SCOOP/STACK and other major U.S. shale plays, is currently traded on the New York Stock Exchange under the ticker symbol WHD.

According to the company, Cactus intends to contribute the net proceeds from the offering to its operating company subsidiary, Cactus Wellhead LLC. Cactus designs, manufactures, sells and rents a range of engineered wellhead and pressure control equipment.

During Q1 2018, the company showed an increase in revenue of nearly 10 percent from previous numbers to $115 million. The company also showed a 22.5 percent increase in operational income in comparison to the previous quarter. Across the U.S. onshore market, Cactus also recorded a wellhead product line growth increase of 26.4 percent.

At the time of the results, Scott Bender, president and CEO, said the increases were a result of the momentum of the company’s products, rentals and service offerings. Cactus also continues to benefit from more complex fracture and completion strategies that many operators are choosing to deploy in the U.S. onshore market.

Regarding the company’s February issuance of a public offering, Cactus including the following information:

On February 12, 2018, Cactus closed its initial public offering of Class A common stock. Including the exercise in full of the underwriters’ option to purchase an additional 15 percent of common shares, the Company issued a total of 26,450,000 shares of Class A common stock in the IPO at $19.00 per share, resulting in net proceeds of $469.6 million after deducting underwriting discounts and commissions and current offering expenses, but not deducting $2.2 million in offering expenses paid by Cactus in 2017.