Earnings per Share

9 Months Ended

Sep. 30, 2023

Basic earnings per share of Class A common stock is calculated by dividing the net income attributable to Cactus Inc. during the period by the weighted average number of shares of Class A common stock outstanding during the same period. Diluted earnings per share of Class A common stock is calculated by dividing the net income attributable to Cactus Inc. during that period by the weighted average number of common shares outstanding assuming all potentially dilutive shares were issued.

We use the if-converted method to determine the potential dilutive effect of outstanding CC Units (and corresponding shares of outstanding Class B common stock), the treasury stock method to determine the potential dilutive effect of unvested restricted stock units assuming that the proceeds will be used to purchase shares of Class A common stock and the contingently issuable share method to determine the potential dilutive effect of unvested performance stock units.

The following table summarizes the basic and diluted earnings per share calculations:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Numerator:
Net income attributable to Cactus Inc.—basic	$	52,580	$	31,425	$	120,224	$	79,185
Net income attributable to non-controlling interest (1)	—		—		24,874		19,686
Net income attributable to Cactus Inc.—diluted (1)	$	52,580	$	31,425	$	145,098	$	98,871
Denominator:
Weighted average Class A shares outstanding—basic	64,879		60,665		64,399		60,164
Effect of dilutive shares (2)	607		441		15,233		16,132
Weighted average Class A shares outstanding—diluted (2)	65,486		61,106		79,632		76,296

Earnings per Class A share—basic	$	0.81	$	0.52	$	1.87	$	1.32
Earnings per Class A share—diluted (1)(2)	$	0.80	$	0.51	$	1.82	$	1.30

(1)The numerator is adjusted in the calculation of diluted earnings per share under the if-converted method to include net income attributable to the non-controlling interest calculated as its pre-tax income adjusted for a corporate effective tax rate of 26.0% for the nine months ended September 30, 2023 and 25.0% for the nine months ended September 30, 2022.

(2)Diluted earnings per share for the three months ended September 30, 2023 and 2022 excludes 14.6 million and 15.2 million, respectively, of weighted average shares of Class B common stock as the effect would be anti-dilutive.