Cactus & Capital: A $60M Bet on Drilling (and Not Just Oil)

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So, Webs Creek Capital Management just dropped $57.73 million on Cactus (WHD 0.19%). Let’s be honest, that’s a lot of money. It’s the kind of money that makes you wonder if someone accidentally added an extra zero. But no, apparently they meant to do that. And it’s a move that’s slightly more interesting than the usual “let’s just buy more of whatever’s already going up” strategy.

What Happened?

Webs Creek, in a filing that probably required a very large stapler, announced they snagged 1,263,873 shares of Cactus. That’s a full 10.33% of their reportable assets. Which means if this goes south, the partners will be blaming each other over organic kombucha and gluten-free bagels for weeks. It’s now their biggest holding. Talk about commitment.

Let’s Break It Down

Here’s the thing: Webs Creek’s portfolio usually looks like a greatest hits album of exploration and production (E&P) firms. You know, the companies that basically gamble on oil prices. Cactus? They’re different. They facilitate the gambling. They make the stuff that lets those E&P companies actually, you know, drill. It’s a subtle but important distinction. Like the difference between being a contestant on Jeopardy! and Alex Trebek. One is taking a risk, the other is just…there.

Here’s a peek at their top holdings, for those of you keeping score at home:

  • NYSE:WHD: $57.73 million (10.3% of AUM)
  • NYSE:AR: $51.83 million (9.3% of AUM)
  • NYSE:OVV: $51.07 million (9.1% of AUM)
  • NASDAQ:WFRD: $49.30 million (8.8% of AUM)
  • NYSE:MTZ: $43.88 million (7.9% of AUM)

As of Wednesday, Cactus shares were hovering around $46.41, which, honestly, feels…stable. The S&P 500 is up 19%, but hey, nobody ever got rich chasing indexes. (Okay, a lot of people got rich chasing indexes, but let’s not dwell.)

Cactus: The Nitty Gritty

Just in case you were wondering what Cactus actually does, they design, manufacture, and rent wellheads and pressure control equipment. It’s not glamorous, but it’s essential. Think of them as the plumbers of the oil industry. And plumbers, let’s be real, are always in demand.

Metric Value
Price (as of Wednesday) $46.41
Market Capitalization $3.2 billion
Revenue (TTM) $1.08 billion
Net Income (TTM) $166.01 million

They serve clients in the US, Australia, China, and Saudi Arabia. Basically, anywhere people are still trying to extract fossil fuels. Which, let’s face it, is pretty much everywhere.

So What Does This Mean For Investors?

Cactus generated $261 million in quarterly revenue, with operating income near $60 million and an adjusted EBITDA margin of roughly 33%. Net income was $48 million, translating to an 18.5% margin. Those are numbers that even a cynical analyst like myself can appreciate. But, and there’s always a “but,” revenue declined year-over-year, and margins have compressed. It’s like a perfectly good avocado – looks great on the outside, slightly bruised on the inside.

However, they recently acquired Baker Hughes’ surface pressure control business. That could be a game changer. Or it could be a logistical nightmare. Only time will tell. But it’s definitely something to watch. Because in the world of oilfield services, a little disruption can go a long way. And sometimes, just sometimes, it can actually make you money.

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2026-03-18 19:33