Subsequent Events

6 Months Ended

Jun. 30, 2018

Subsequent Events

Subsequent Events [Text Block]

11. Subsequent Events

Follow-on Offering

On July 16, 2018, we closed a public offering of 11,196,562 shares (including 10,000,000 base shares and 1,196,562 shares sold pursuant to the underwriters’ option to purchase additional shares) of Class A common stock at $33.25 per share and received $359.3 million of net proceeds after deducting underwriting discounts. Cactus Inc. contributed the net proceeds to Cactus LLC in exchange for CW Units. Cactus LLC then used the net proceeds to redeem 11,196,562 CW Units from certain of the other owners of Cactus LLC and canceled corresponding shares of Class B common stock. After these transactions, Cactus Inc. has outstanding 37,646,562 shares of Class A common stock (representing 50.3% of the total voting power) and 37,243,210 shares of Class B common stock (representing 49.7% of the total voting power).  There was no change in the total aggregate number of shares of Class A common stock and Class B common stock outstanding of 74,889,772 following the completion of the offering.

Offering expenses related to the follow-on offering were less than $1.0 million, which will be recorded within equity, and were borne by Cactus.

In connection with the follow-on offering and the associated redemption of CW Units, we will record: (i) a deferred tax asset related to a step-up in basis, (ii) a liability from the TRA representing 85% of the expected net cash tax savings from the step-up in basis that will be paid to TRA Holders and (iii) the remaining 15% as additional paid-in capital.