Earnings Per Share

12 Months Ended

Dec. 31, 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 (CW Units prior to the CC Reorganization) and corresponding shares of outstanding Class B common stock. We use the treasury stock method to determine the potential dilutive effect of our unvested stock-based compensation awards assuming that the proceeds will be used to purchase shares of Class A common stock. For our unvested performance stock units, we first apply the criteria for contingently issuable shares before determining the potential dilutive effect using the treasury stock method.

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


	Year Ended December 31,
	2023		2022		2021
Numerator:
Net income attributable to Cactus Inc.—basic	$	169,171	$	110,174	$	49,593
Net income attributable to non-controlling interest(1)	35,075		27,235		13,744
Net income attributable to Cactus Inc.—diluted(1)	$	204,246	$	137,409	$	63,337
Denominator:
Weighted average Class A shares outstanding—basic	64,641		60,323		55,398
Effect of dilutive shares	14,819		16,014		20,709
Weighted average Class A shares outstanding—diluted	79,460		76,337		76,107

Earnings per Class A share—basic	$	2.62	$	1.83	$	0.90
Earnings per Class A share—diluted(1)	$	2.57	$	1.80	$	0.83

(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%, 25% and 27% for the years ended December 31, 2023, 2022 and 2021, respectively.