Cactus, Inc. (WHD) — ESG & Values Scores

Environment story

Cactus operates in fossil fuel extraction support (pressure control and spoolable pipe for oil/gas wells). No disclosed Scope 1, 2, or 3 emissions targets or net-zero commitment identified in 10-K. Company acknowledges climate regulation and ESG divestment risks but does not proactively disclose carbon reduction initiatives, renewable energy adoption, or decarbonization infrastructure. Heavy reliance on hydraulic fracturing customer base creates structural supply-chain emissions exposure (Scope 3) that is untracked. No evidence of physical decarbonization capex. Company faces regulatory headwinds from greenhouse gas restriction and ESG divestment pressure.

Criticisms on file

No disclosed Scope 1, 2, or 3 emissions; no net-zero target date
Source: WHD 10-K 2025; Item 1A Risk Factors; Item 7 MD&A
Acknowledged climate regulation and ESG divestment risk; business model dependent on fossil fuel E&P
Source: WHD 10-K 2025, Item 1A Risk Factors: 'Existing or future laws and regulations related to greenhouse gases and climate change...could have a material adverse effect'
Products used in hydraulic fracturing; company faces regulatory headwinds from state-level fracturing restrictions and federal permitting uncertainty
Source: WHD 10-K 2025, Item 1A: 'Most of our customers utilize hydraulic fracturing'; 'Texas Railroad Commission has suspended the use of deep wastewater disposal wells'
EPA rescission of 2009 Greenhouse Gas Endangerment Finding (Feb 2026); regulatory environment favorable to E&P but high long-term climate transition risk
Source: WHD 10-K 2025, Item 1A Risk Factors

Disclosed initiatives

API and ISO Certifications

Holds API 6A, API Q1, ISO 9001:2015 quality and environmental management certifications across facilities; API Q2 program for service operations to reduce well-site non-productive time.

Ensures compliance with industry HSE standards but does not constitute direct carbon mitigation.
Health, Safety & Environment (HSE) Management System

Third-party conformity assessments of HSE processes; TRIR monitoring (1.49 Pressure Control 2025, 0.79 Spoolable 2025); no work-related fatalities.

Safety-focused; not climate-related decarbonization.

Social story

Cactus employs ~1,500 globally (>100 outside US); no collective bargaining agreements and no strikes/work stoppages reported. Workforce diversity disclosed: ~12% women, ~49% minority representation. TRIR metrics in line with industry average (1.49 Pressure Control, 0.79 Spoolable in 2025); zero work-related fatalities. Company offers comprehensive benefits (401k, health insurance, paid leave, maternity/paternity, tuition reimbursement, assistance programs). CEO pay ratio not disclosed; cannot assess against 200:1 threshold. No union-suppression activities documented. Leadership diversity not explicitly disclosed but board composition shows limited female/URG representation (8 directors listed, only 1 appears female: Melissa Law). No supply-chain human-rights audit findings disclosed; company sources raw materials from US, China, India, Australia, Vietnam with no visible third-party labor certification or conflict-minerals policy mentioned.

Criticisms on file

CEO-to-median-worker pay ratio not disclosed; cannot verify compliance with 200:1 threshold
Source: WHD 10-K 2025; compensation data in MD&A does not include CEO-specific pay ratio
Leadership diversity not explicitly disclosed; board composition (8 directors) appears to include only one woman (Melissa Law); gender/URG percentages for executive team not provided
Source: WHD 10-K 2025, Item 1, Executive Officers and Board of Directors tables
No supply-chain labor audit or human-rights policy disclosed; raw materials sourced globally (China, India, Vietnam) with no visible third-party certification or conflict-minerals statement
Source: WHD 10-K 2025, Item 1: 'We purchase a majority of our raw materials from vendors primarily located in the United States, China, India, Australia and Vietnam'; no supply-chain audit or modern slavery statement referenced
Skilled labor shortage acknowledged as business risk; company competes for workers in tight labor market
Source: WHD 10-K 2025, Item 1A Risk Factors: 'We may be unable to employ a sufficient number of skilled and qualified workers'

Disclosed initiatives

Talent Attraction & Retention Strategy

Employee referral programs, social media recruitment, regional job fairs, partnerships with educational institutions, local workforce commissions.

Recruitment infrastructure; contributes to retention of skilled workforce.
Training & Development Programs

Comprehensive internal training for field, plant, branch operations; emphasis on safety, product knowledge, technical skills, ethical conduct, external certifications.

Supports skill development and internal promotion pathways; enhances safety culture.
Comprehensive Compensation & Benefits

Annual bonuses, 401(k), equity grants, health savings accounts (company-funded), flexible spending, short/long-term disability, accident/critical illness insurance, paid leave, maternity/paternity leave, family care resources, tuition reimbursement, employee assistance programs.

Above-average benefits package supports employee financial security and wellbeing.
Workplace Culture & Diversity Commitment

Stated commitment to non-discriminatory recruitment, promotion, and supplier partnerships; 12% women and 49% minority workforce; diversity noted as strengthening organizational resilience.

Diversity initiatives present but not independently audited; limited evidence of executive/board diversity.
Health & Safety Programs

Global HSE standards with jurisdiction-specific variations; regular safety evaluations; third-party conformity assessments; TRIR monitoring; zero fatalities in 2024–2025.

Strong safety culture; TRIR in line with industry average per International Association of Drilling Contractors.

Governance story

Cactus is a public company with dual-class share structure: Class A (1 vote per share) and Class B (1 vote per share, owned by CC Unit Holders who are legacy unit holders). Cactus WH Enterprises (owned by Scott Bender, Joel Bender, Steven Bender) held 12.1% of voting power as of Dec 31, 2025; two Benders serve as CEO/Chairman and President/Director, creating founder concentration. Board independence not explicitly quantified, but 8-member board includes 2 insiders (Scott Bender, Joel Bender) and 6 external/independent-appearing directors (Melissa Law, Michael McGovern, John O'Donnell, Gary Rosenthal, Bruce Rothstein, Alan Semple, Tym Tombar). Estimated board independence ~75% (6 of 8), falling short of 80% target. No evidence of dual-class voting supermajority by Benders alone (12.1% < 50%), but founder control over board agenda remains material. Lobbying spend not disclosed. No active antitrust, consumer-safety, or financial-fraud proceedings reported. CEO/Chairman duality creates governance concern. Company acknowledges ESG divestment risk and climate regulation pressure but does not report active climate-deregulation lobbying.

Criticisms on file

CEO/Chairman duality: Scott Bender serves as both Chief Executive Officer and Chairman of the Board
Source: WHD 10-K 2025, Item 1, Executive Officers and Board of Directors
Founder/insider concentration: Scott Bender (CEO/Chair), Joel Bender (President/Director), Steven Bender (COO) control company direction; Cactus WH Enterprises (Bender-owned) holds 12.1% voting power as of Dec 31, 2025
Source: WHD 10-K 2025, Item 1: Current Ownership Structure; Item 1A Risk Factors: 'Cactus WH Enterprises has the ability to direct the voting of a significant percentage'
Board independence estimated at 75% (6 of 8 directors); falls short of 80% ESG target; 2 of 8 directors are insiders
Source: WHD 10-K 2025, Item 1: Executive Officers and Board of Directors (Scott Bender, Joel Bender); 6 external directors identified: Melissa Law, Michael McGovern, John O'Donnell, Gary Rosenthal, Bruce Rothstein, Alan Semple, Tym Tombar
No lobbying spend disclosed in 10-K; company does not report active climate-deregulation or consumer-protection rollback advocacy
Source: WHD 10-K 2025; no Item 10 or Item 8 lobbying disclosure
Tax Receivable Agreement (TRA) creates material financial obligations and potential change-of-control deterrent; estimated termination payment ~$251.2M as of Dec 31, 2025
Source: WHD 10-K 2025, Item 1A Risk Factors: 'Cactus Inc. will be required to make payments under the TRA...'; estimated termination payment of approximately $251.2 million
Classified board with 3-year election cycle (being phased out by 2027); limits shareholder ability to remove directors and effect governance change
Source: WHD 10-K 2025, Item 1A Risk Factors: 'limitations on the removal of directors, including a classified board whereby only one-third of the directors are elected each year, which will be phased out by 2027'
Company acknowledges ESG divestment risk and pressure from activist investors; no evidence of shareholder proposal contest or engagement disclosure
Source: WHD 10-K 2025, Item 1A Risk Factors: 'Increasing attention by the public and government agencies to climate change...could also negatively impact demand'

Disclosed initiatives

API and ISO Certifications & Compliance

Maintains API 6A, API Q1, ISO 9001:2015 licenses; API Q2 program for service quality; licenses renewed annually via audit.

Ensures product compliance and customer confidence; not governance-specific.
Board Oversight Structure

8-member board with mix of internal (2 Benders) and external directors from diverse industry backgrounds (energy, private equity, oilfield services).

External director representation provides some governance oversight, but Bender family influence and CEO/Chairman duality limit independence.
Risk Management & Insurance

Comprehensive insurance coverage including D&O, cyber, pollution liability, workers' comp; customer indemnifications and third-party risk mitigation.

Risk transfer mechanisms in place; does not address governance concentration.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of Cactus, Inc.. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open Cactus, Inc. in the app for interactive charts and portfolio building.

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