Cactus reduces U.S. associate headcount by ~30%, implements salary reductions » 16:1204/0304/03/20
Cactus announced that as…
Cactus announced that as part of the company's comprehensive response to the weakened macroeconomic environment, Cactus reduced its total U.S. associate headcount by approximately 30% effective April 1 in anticipation of the activity declines expected by early in Q2. Cactus also implemented large-scale salary reductions for its workforce beginning in March, inclusive of a 50% reduction to the CEO's base salary, and salary reductions ranging from 25%-50% for its other named executive officers. Board member remuneration has also been reduced by 25%. As a result of the cost rationalization efforts, Cactus will record approximately $1M in non-routine charges primarily related to severance benefits as of March 31. These salary and headcount reductions are estimated to result in approximately $35M of annualized cost savings, $5M of which are associated with selling, general and administrative expenses. In light of the recent macroeconomic events, Cactus has also withdrawn its full year net capital expenditure guidance for 2020. Net capital expenditures are now expected to be in the range of $20M-$30M in 2020, representing a reduction of more than 50% from 2019's level. A majority of this spend will be allocated to the first half of the year. The company's cash balance rose to approximately $230M as of March 31, and its $75M revolver remains fully available.
|Over a week ago|
Cactus upgraded to Outperform from Peer Perform at Wolfe Research » 10:0103/1903/19/20
Wolfe Research analyst…
Wolfe Research analyst Blake Gendron upgraded Cactus to Outperform from Peer Perform.
Citi downgrades nine oilfield services names 'until dust settles' in oil market » 13:0603/0903/09/20
HAL, SLB, NOV, WHD, LBRT, NEX, NINE, SOI, WTTR, BKR, GTLS
As previously reported,…
As previously reported, Citi analyst Scott Gruber downgraded Halliburton (HAL), Schlumberger (SLB), National Oilwell (NOV), Cactus (WHD), Liberty Oilfield Services (LBRT), NexTier Oilfield (NEX), Nine Energy Service (NINE), Solaris Oilfield (SOI) and Select Energy Services (WTTR), all to Neutral, as he steps to the sidelines on many oilfield services stock "until the dust settles" with U.S. shale "under siege" and growth now in question abroad as well. He keeps a Buy rating on top pick Baker Hughes (BKR), citing its balance sheet strength, "robust" equipment backlog and more limited U.S. shale exposure. He also keeps a Buy rating on Chart Industries (GTLS), stating that half of its exposure is outside of energy and that the company has a large infrastructure related backlog within energy.
Cactus downgraded to Neutral from Buy at Citi » 12:3203/0903/09/20
Citi analyst Scott Gruber…
Citi analyst Scott Gruber downgraded Cactus to Neutral from Buy.
Oil-linked stocks see mass of downgrades on potential 'Energy Armageddon' » 11:2303/0903/09/20
HAL, SLB, HP, HLX, CLB, FET, WHD, AMNA, APA, CHK, DVN, OVV, EOG, MRO, OXY, CDEV, CPE, ESTE, FANG, MTDR, PE, PXD, REI, ROSE, WPX, XEC, CLR, ERF, NOG, WLL, MGY, WTI, SM, PDCE, NBL, BCEI, AXAS, VET, AM, ENLC, ET, OKE, PAA, PAGP, TELL, TRGP, BRY, GPOR, QEP
Oil exploration and…
Oil-linked stock downgrades dominate top calls on Wall Street » 10:2003/0903/09/20
HAL, SLB, HP, HLX, CLB, FET, WHD, XEC, WTI, SM, ROSE, PDCE, NBL, MTDR, EOG, BCEI, AXAS, APA, OVV, CPE, VET, TRP, AM, ENLC, ET, OKE, PAA, PAGP, TELL, TRGP, BUD, GRUB
Check out today's top…
Cactus downgraded to Underperform from Neutral at BofA » 08:4203/0903/09/20
BofA analyst Chase…
BofA analyst Chase Mulvehill downgraded Cactus to Underperform from Neutral. Over the longer-term he sees Cactus' U.S. shale franchise as one of the eventual winners, but in the near-term there is too much downside risk, the analyst tells investors.
|Over a month ago|
Cactus reports Q4 adj. EPS 38c, consensus 36c » 20:0202/2602/26/20
Reports Q4 revenue…
Reports Q4 revenue $140.2M, consensus $141.69M. Reports Q4 adj. EBITDA $48.4M vs. $58.8M last year. CEO Scott Bender says: "2019 was a record year for Cactus. Despite a larger than anticipated decline in the overall U.S. onshore rig count during the fourth quarter, our results were generally consistent with our expectations. The overall margin profile of the business remained strong, notwithstanding the typical seasonal slowdown in Field Service due in part to lower completions activity driven by E&P budget exhaustion. The quarter highlighted the Company's ability to generate significant free cash flow, with cash growing by over $35 million during the period, net of nearly $7 million in dividend payments and associated distributions. Looking to the first quarter of 2020, customers have again shown a willingness to quickly increase completion activity following the reset of budgets in January. We currently anticipate that revenue across all our business lines will increase relative to the fourth quarter of 2019. Additionally, the adoption of our new frac innovations has continued to progress during the first quarter. During our time as a public entity, Cactus has demonstrated its ability to perform well in the face of a challenging market environment. Going forward, we believe the capital-light nature of the business will further separate us from our peers, and we expect 2020 to highlight our ability to gain market share at attractive margins and generate substantial free cash flow."
|Over a quarter ago|
Stephens releases Best Ideas list for 2020 » 13:0401/0201/02/20
AAN, AGCO, AME, AVLR, WHD, ELY, KMX, TAST, CI, CMP, CXO, CSGP, HUBG, INGR, NXST, PWR, RP, SNDR, STAA, STL, TCF, VBTX, VG, VMC, ZNGA, NBHC, UMPQ
Before the open, Stephens…
Before the open, Stephens released its annual Best Ideas list, noting, "For 2020, we hope our Best Ideas list outperforms the Russell 2000 and as the case every year, our goal is to drive Alpha-each of our 30 industry teams identifies the one stock they expect to outpace the performance of their industry, the Russell 2000 and the markets in general." The stocks mentioned were Aaron's (AAN), AGCO Corporation (AGCO), AMETEK (AME), Avalara (AVLR), Cactus (WHD), Callaway Golf (ELY), CarMax (KMX), Carrols Restaurant Group (TAST), Cigna (CI), Compass Minerals (CMP), Concho Resources (CXO), CoStar Group (CSGP), Hub Group (HUBG), Ingredion (INGR), National Bank Holdings (NBHC), Nexstar Media Group (NXST), Quanta Services (PWR), RealPage (RP), Schneider National (SNDR), STAAR Surgical (STAA), Sterling Bancorp (STL), TCF Financial (TCF), Umpqua Holdings (UMPQ), Veritex Holdings (VBTX), Vonage Holdings (VG), Vulcan Materials (VMC), and Zynga (ZNGA).
Cactus initiated with a Peer Perform at Wolfe Research » 09:3311/2111/21/19
Wolfe Research analyst…
Wolfe Research analyst Blake Gendron initiated coverage of Cactus with a Peer Perform rating and $33 price target. The analyst said margin stability in a "lower growth" US shale market, potentially uncertain E&P/frac consolidation trends, and fair valuation keep him on the sidelines.