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Financial Data and Key Metrics Changes - Total revenue for Q4 2023 was $126.3 million, representing a 31% year-over-year increase and an 8% sequential increase, driven by activity increases in subsea services and the full quarter contribution from Great North [30] - For the full year 2023, revenue was $424.1 million, an increase of 17% year-over-year, with Great North contributing $35.2 million [30] - Adjusted EBITDA for Q4 2023 was $16.5 million, an increase of $4.2 million sequentially and $6.3 million year-over-year, while full year adjusted EBITDA was $46.5 million, a 56% increase year-over-year [32] - Free cash flow for Q4 2023 was $14.5 million, an improvement of $37.3 million year-over-year, while free cash flow for the full year was negative $24.9 million [33] Business Line Data and Key Metrics Changes - Subsea Products revenue increased by 2% year-over-year, while Subsea Services revenue grew by 7% [12] - The Well Construction segment revenue grew 70% year-over-year, reflecting increased activity in Latin America and Saudi Arabia, with a $100 million annual run rate for the legacy TIW business [13] Market Data and Key Metrics Changes - The Canadian onshore market is expected to grow due to increased production from operators and market share expansion, particularly in the Grand Prairie region [9] - International growth is anticipated in key areas such as the Middle East, Latin America, and the U.S., with investments in new facilities and technologies [10][11] Company Strategy and Development Direction - The company is reorganizing its business into product lines, optimizing its footprint, and investing in manufacturing capabilities to drive growth [8] - Strategic investments are being made in key growth markets globally, including Saudi Arabia and Mexico, to support anticipated demand [10][11] - The company plans to discontinue the inclusion of well construction bookings in future disclosures, focusing solely on subsea product bookings [24] Management's Comments on Operating Environment and Future Outlook - The macroeconomic outlook for 2024 and beyond is positive, with expectations for increased offshore project FIDs [27] - Management expressed confidence in accelerating contract awards in 2024 as rig capacity constraints are resolved [9] - The company expects revenue to increase by 15% to 20% in 2024, with Q1 revenue projected between $105 million and $110 million [15] Other Important Information - The company completed the sale of its Houston administration building, generating approximately $23 million, which funded investments in subsea wellhead manufacturing equipment [25] - The investment in upgrading subsea wellhead manufacturing equipment is on schedule and expected to go live in Q2 2024 [26] Q&A Session Summary Question: Can you provide the subsea product bookings for full year 2022 and 2023? - The subsea product bookings for both 2022 and 2023 were approximately $215 million to $217 million, with the 2024 guidance being $200 million to $225 million [18] Question: Will the 24 wells announced for the Woodside Trion development offshore Mexico be included in subsea bookings for Q1? - The MSA for the 24 wells was signed in Q4 and will be called off over the next 1 to 2 years, thus not contributing to immediate bookings [19] Question: Can you clarify the margin guidance for this year? - The difference in margin guidance is attributed to timing on productivity initiatives, which may have been pushed out a quarter [37]

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 ...

Financial Data and Key Metrics Changes - Revenue for Q3 2023 was $117.2 million, an increase of 33% year-over-year and 31% sequentially, driven by strong organic growth and the addition of Great North [36][17] - Adjusted EBITDA for the quarter was $12.4 million, an increase of $5.3 million from the previous year and up $3.6 million sequentially [23][44] - Gross margins improved to 27%, up approximately 150 basis points year-over-year, attributed to the addition of Great North and operational efficiency initiatives [8][44] - Cash provided by operations was $26.8 million, an improvement of $15.5 million sequentially and $26 million from the prior year [49] - Free cash flow for the third quarter was positive at $21.4 million, marking the highest figure since 2017 [49] Business Line Data and Key Metrics Changes - Subsea Products revenue increased 15% year-over-year and 25% sequentially, driven by customer milestones in Europe [7] - Subsea Services revenue increased 6% year-over-year and 3% sequentially, although growth was expected to be double digits sequentially [7] - Well Construction segment grew 117% year-over-year and 76% sequentially, reflecting the addition of Great North and increased activity in key regions [22] Market Data and Key Metrics Changes - The company ended the quarter with approximately $200 million in backlog, supported by over 70 open Master Service Agreements (MSAs) [18] - Key markets showing strength included Latin America, the Middle East, and Africa, with notable wins in the Ivory Coast [17][5] Company Strategy and Development Direction - The company completed its first acquisition since 2016 with Great North, which has been financially accretive and adds exposure to a top-producing region [4] - The integration of Great North is largely complete, with supply chain optimization plans underway [4] - The company is focused on cross-selling opportunities between Great North and Drill-Quip products, anticipating incremental revenue [19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged customer-specific headwinds due to rig availability and FPSO delivery timing, impacting higher-margin service segment revenue [58] - The outlook for Q4 2023 includes expected revenue in the range of $115 million to $125 million and bookings of $75 million to $100 million [24] - Management expressed optimism for 2024, citing constructive market conditions and positive early indications from customers [14] Other Important Information - The company expects to see a strong revenue ramp in Q4, driven by large orders including subsea trees [10][53] - Selling, general, and administrative expenses increased 22% sequentially to $27 million, driven by Great North expenses and an increase in bad debt reserve [34] - The company anticipates approximately $10 million in CapEx for Q4 2023, concluding investments in Houston manufacturing equipment [40] Q&A Session Summary Question: Can you expand on the FPSO delivery timing and its impact? - Management noted that FPSO delivery timing delays were primarily related to Brazil, affecting call-offs [26] Question: What gives confidence in the fourth quarter bookings guidance of $75 million to $100 million? - Management indicated good visibility to the ramp, largely dependent on FID timing for several customers [28] Question: Any preliminary thoughts on bookings for 2024? - Management expressed optimism for increased bookings in 2024 as rig availability improves and FPSOs are delivered [31]

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 ...