Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (MARK ONE) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number 001-13439 DRIL-QUIP, INC. (Exact name of registrant as specified in its charter) | Delaware | 74-2162088 | | --- | -- ...

Exhibit 99.1 DRIL-QUIP, INC. ANNOUNCES FOURTH QUARTER AND FULL YEAR 2023 RESULTS Annual revenue increases double digits year-over-year Full year cash provided by operations increases $44.5 million year-over-year Company provides fiscal 2024 financial outlook HOUSTON, February 26, 2024 — Dril-Quip, Inc. (NYSE: DRQ), (the "Company" or "Dril-Quip"), a developer, manufacturer and provider of highly engineered equipment, service, and innovative technologies for use in the energy industry, today reported operatio ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-13439 DRIL-QUIP, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) 2050 West Sam Hous ...

Dril-Quip, Inc. (NYSE:DRQ) Q3 2023 Results Conference Call October 27, 2023 10:00 AM ET Company Participants Erin Fazio - Corporate Finance Director Jeff Bird - President and CEO Kyle McClure - VP and CFO Conference Call Participants Eddie Kim - Barclays Operator Good morning, and welcome to Drill-Quip's Third Quarter 2023 Earnings Call. [Operator Instructions] As a reminder, this call is being recorded. At this time, I will turn the call over to Erin Fazio, Corporate Finance Director for Drill-Quip. Pleas ...

Investor Presentation Second Quarter 2023 Disclaimer | Cautionary Statement Although Dril-Quip believes that all such statements contained in this presentation are based on reasonable assumptions, there are numerous variables of an unpredictable nature or outside of Dril-Quip's control that could affect Dril-Quip's future results and the value of its shares. Each investor must assess and bear the risk of uncertainty inherent in the forward-looking statements contained in this presentation. Use of Website MI ...

Dril-Quip, Inc. (NYSE:DRQ) Q2 2023 Earnings Conference Call August 1, 2023 9:00 AM ET Company Participants Erin Fazio - Corporate Finance Director Jeff Bird - President, Chief Executive Officer Kyle McClure - Vice President, Chief Financial Officer Conference Call Participants Operator Good morning, and welcome to Dril-Quip's Second Quarter 2023 Earnings and Great North Acquisition Update Call. At this time, all participants are in a listen-only mode and there will be a question-and-answer session opportuni ...

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I) [Item 1. Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) Presents Q2 2023 unaudited condensed consolidated financial statements, detailing financial position, performance, and cash flows, with accompanying notes - In Q1 2023, the company reorganized its structure, changing reportable business segments from geographic to three product and service lines: **Subsea Products, Subsea Services, and Well Construction**, with prior year data restated[28](index=28&type=chunk)[70](index=70&type=chunk) - Accounting errors from prior periods, related to an indemnification receivable and duplicate billings, were corrected and revised in the current report to avoid material misstatement of interim results[30](index=30&type=chunk)[31](index=31&type=chunk)[50](index=50&type=chunk) - Post-period, on July 31, 2023, a Dril-Quip subsidiary acquired **Great North Wellhead** for **CAD $105 million** cash, with potential earnout payments up to **CAD $30 million**[83](index=83&type=chunk) [Condensed Consolidated Balance Sheets](index=3&type=section&id=Balance%20Sheets) As of June 30, 2023, total assets increased slightly to $979.7 million, total liabilities rose to $100.3 million, and stockholders' equity reached $879.4 million, while cash decreased Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $755,156 | $750,024 | | Cash and cash equivalents | $236,490 | $264,804 | | Trade receivables, net | $135,504 | $90,861 | | Inventories, net | $164,523 | $146,004 | | **Total Assets** | **$979,666** | **$969,951** | | **Total Current Liabilities** | $88,124 | $87,555 | | **Total Liabilities** | **$100,257** | **$97,599** | | **Total Stockholders' Equity** | **$879,409** | **$872,352** | [Condensed Consolidated Statements of Income (Loss)](index=4&type=section&id=Statements%20of%20Income%20(Loss)) The company achieved a net income of $3.5 million in Q2 2023, a turnaround from a $5.6 million loss in Q2 2022, driven by lower charges and gains on asset sales Statement of Income (Loss) Highlights (in thousands, except per share data) | Metric | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $89,607 | $93,978 | $180,472 | $177,115 | | **Operating Income (Loss)** | $3,606 | $(3,869) | $6,794 | $(9,460) | | **Net Income (Loss)** | **$3,483** | **$(5,570)** | **$5,794** | **$(14,508)** | | **Diluted EPS** | $0.10 | $(0.16) | $0.17 | $(0.42) | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Statements%20of%20Comprehensive%20Income%20(Loss)) Q2 2023 saw a total comprehensive loss of $1.0 million, primarily due to a $4.5 million foreign currency translation loss offsetting net income Comprehensive Income (Loss) (in thousands) | Metric | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | Net Income (Loss) | $3,483 | $(5,570) | $5,794 | $(14,508) | | Foreign currency translation adjustments | $(4,454) | $(12,228) | $(3,880) | $(9,342) | | **Total Comprehensive Income (Loss)** | **$(971)** | **$(17,798)** | **$1,914** | **$(23,850)** | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Statements%20of%20Cash%20Flows) Net cash used in operating activities increased to $41.6 million in H1 2023, while investing activities provided $14.1 million, leading to a $28.3 million decrease in cash Cash Flow Summary for Six Months Ended June 30 (in thousands) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | $(41,638) | $(20,209) | | Net cash provided by (used in) investing activities | $14,066 | $(2,847) | | Net cash used in financing activities | $(22) | $(9,740) | | **Decrease in cash and cash equivalents** | **$(28,314)** | **$(34,667)** | [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Statements%20of%20Stockholders'%20Equity) Total stockholders' equity increased to $879.4 million by June 30, 2023, driven by net income and stock-based compensation, partially offset by foreign currency adjustments - For the six months ended June 30, 2023, the company did not repurchase any common shares, compared to repurchasing **430,730 shares** for **$9.7 million** in the same period of 2022[24](index=24&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Financial%20Statements) Notes detail strategic reorganization, prior period error revisions, revenue recognition, restructuring charges, and significant subsequent events including an acquisition and tax refund - The aggregate transaction price for remaining performance obligations from over-time product lines was **$55.4 million** as of June 30, 2023, with **85.3%** expected to be recognized within the next 12 months[57](index=57&type=chunk) - In Q2 2023, the company recorded a net credit of **$0.6 million** in restructuring charges, primarily due to a **$2.3 million** release of a restructuring liability related to its Well Construction business[64](index=64&type=chunk)[66](index=66&type=chunk) - In July 2023, the company received a **$16.8 million** income tax refund, with an additional **$5.4 million** refund approved and being processed[85](index=85&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's return to profitability in Q2 and H1 2023, driven by product mix, cost savings, and asset sales, alongside increased backlog and liquidity - The company's product backlog increased to approximately **$252.0 million** at June 30, 2023, up from **$240.9 million** at December 31, 2022[111](index=111&type=chunk) Backlog and Bookings (in thousands) | Metric | Q2 2023 | Q1 2023 | | :--- | :--- | :--- | | Beginning Backlog | $235,145 | $240,865 | | Total Bookings | $106,443 | $85,145 | | Total Revenue | $89,607 | $90,865 | | **Ending Backlog** | **$251,981** | **$235,145** | Adjusted EBITDA Reconciliation (in thousands) | Metric | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | $3,483 | $(5,570) | $5,794 | $(14,508) | | **Adjusted EBITDA** | **$8,787** | **$9,340** | **$17,625** | **$12,499** | - Net cash used in operating activities increased to **$41.6 million** in H1 2023 from **$20.2 million** in H1 2022, primarily due to changes in working capital, including a significant increase in trade receivables[168](index=168&type=chunk)[169](index=169&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks involve interest rate changes on investments and foreign exchange rate fluctuations, with no material changes since year-end 2022 - The company is exposed to foreign exchange rate risk, which resulted in a pre-tax gain of **$4.8 million** in Q2 2023 and **$3.7 million** for the first six months of 2023[180](index=180&type=chunk)[181](index=181&type=chunk) [Item 4. Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) As of June 30, 2023, the CEO and CFO concluded that disclosure controls and procedures were effective, with no material changes in internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were **effective** as of June 30, 2023[184](index=184&type=chunk) - No changes occurred in the company's internal control over financial reporting during Q2 2023 that materially affected, or are reasonably likely to materially affect, these controls[185](index=185&type=chunk) [PART II - OTHER INFORMATION](index=32&type=section&id=PART%20II) [Item 1. Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) The company is defending a favorable jury verdict on appeal in a trade secret lawsuit against FMC Technologies, with other legal actions deemed immaterial - In the FMC Technologies lawsuit, a jury found in favor of Dril-Quip, and the company intends to vigorously defend the verdict on appeal[80](index=80&type=chunk)[188](index=188&type=chunk) [Item 1A. Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2022 [Item 5. Other Information](index=33&type=section&id=Item%205.%20Other%20Information) During Q2 2023, no director or officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements [Item 6. Exhibits](index=34&type=section&id=Item%206.%20Index%20to%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate governance documents, CEO/CFO certifications, and Inline XBRL documents

Dril-Quip, Inc. (NYSE:DRQ) Q1 2023 Earnings Conference Call May 9, 2023 11:30 AM ET Company Participants Jeff Bird - President, Chief Executive Officer Kyle McClure - Vice President, Chief Financial Officer Erin Fazio - Finance Director Conference Call Participants David Smith - Pickering Energy Partners Operator Good morning, and welcome to the Dril-Quip First Quarter 2023 Fireside Chat. At this time all participants are on a listen-only mode and there will be no question-and-answer opportunity at the end ...

Financial Performance - Total revenues for the three months ended March 31, 2023, increased by $7.7 million, or approximately 9.3%, to $90.9 million compared to $83.1 million for the same period in 2022[111]. - Product revenues accounted for 65.2% of total revenues for the three months ended March 31, 2023, down from 66.9% in the same period of 2022[99]. - Service revenues increased by approximately $2.1 million due to customer-specific increases in technical advisory services and maintenance requests[112]. - Net income for the three months ended March 31, 2023, was approximately $2.3 million, a significant improvement from a net loss of $8.9 million in the same period in 2022[124]. - Adjusted EBITDA for the three months ended March 31, 2023, was $8.8 million, compared to $3.2 million for the same period in 2022[127]. Operational Metrics - The average contracted Mobile Offshore Drilling Units (MODU) increased by 8.8% from 491 rigs in Q1 2022 to 534 rigs in Q1 2023[90]. - As of March 31, 2023, the Company reported 146 floating rigs and 391 jack-up rigs contracted, compared to 135 floating rigs and 357 jack-up rigs in Q1 2022[89]. - Approximately 62.8% of the Company's revenues were derived from foreign sales for the three months ended March 31, 2023, consistent with the previous year[99]. Cost and Expenses - Cost of sales increased by $1.5 million, or approximately 2.4%, to $65.5 million for the three months ended March 31, 2023, while the cost of sales as a percentage of revenue decreased to 72.1% from 77.0%[114]. - Engineering and product development expenses decreased by approximately $0.3 million, or 7.5%, to $3.4 million for the three months ended March 31, 2023[116]. - The Company incurred additional restructuring costs of approximately $1.7 million under the 2021 global strategic plan during the three months ended March 31, 2023[117]. - Capital expenditures for the three months ended March 31, 2023, were $5.4 million, up from $2.1 million in the same period in 2022[133]. Foreign Exchange and Cash Flow - Foreign exchange loss for the three months ended March 31, 2023, was $1.1 million compared to a gain of $1.3 million for the same period in 2022[119]. - The company experienced a foreign currency pre-tax loss of approximately $1.1 million during the three months ended March 31, 2023, compared to a gain of $1.3 million in the same period in 2022[141]. - Cash flows used in operating activities for the three months ended March 31, 2023, were $52.9 million, an increase from $10.9 million in the same period in 2022[131]. - The company has a cash balance of approximately $5.4 million in a cash collateral account as of March 31, 2023[134]. Market and Economic Conditions - Dril-Quip's average Brent Crude oil price per barrel for Q1 2023 was $81.07, down from $100.87 in Q1 2022, with a projected average of $85 per barrel for 2023[85]. - The Company expects continued pressure on crude oil and natural gas prices, which may affect drilling and production activities[82]. - The Company continues to monitor the impact of the COVID-19 pandemic and inflationary pressures on its operations and financial position[81]. - The Company has minimal operational exposure in Russia but is monitoring the potential impacts of sanctions and the ongoing conflict in Ukraine[80]. - The Company is subject to risks associated with international operations, including political instability and changes in foreign regulations[83]. Product and Service Performance - Subsea product operating income increased for the three months ended March 31, 2023, compared to the same period in 2022, due to a favorable product mix and overall price increases[120]. - Subsea services operating income also rose for the three months ended March 31, 2023, primarily due to a gain on the sale of the Houston aftermarket facility and increased utilization[121]. - Well Construction operating income decreased for the three months ended March 31, 2023, mainly due to unfavorable foreign exchange movements and costs related to market entry preparations[122]. Backlog and Future Outlook - The Company's product backlog as of March 31, 2023, was approximately $235.1 million, a decrease from $240.9 million at December 31, 2022, and an increase from $220.9 million at March 31, 2022[95]. - The Inflation Reduction Act of 2022 includes a 15% corporate alternative minimum tax for corporations with average adjusted financial statement income over $1 billion[78]. - The company has authorized a $100.0 million share repurchase plan, but no shares were purchased during the three months ended March 31, 2023[135].

Dril-Quip, Inc. (NYSE:DRQ) Q4 2022 Earnings Conference Call February 28, 2023 10:00 AM ET Company Participants Erin Fazio - Finance Director Jeff Bird - President and Chief Executive Officer Kyle McClure - VP & CFO Conference Call Participants Eddie Kim - Barclays Operator Good day, and thank you for standing by. Welcome to the Dril-Quip Q4 Full Year 2022 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference call is being recorded. I'd now like to hand the conference ca ...