Financial Performance - Total revenue for the three months ended September 30, 2021, was $82.997 million, an increase from $80.797 million for the previous quarter [123]. - Total revenues decreased by $8.3 million, or approximately 9.1%, to $83.0 million for the three months ended September 30, 2021, compared to $91.3 million for the same period in 2020 [140]. - For the nine months ended September 30, 2021, revenues decreased by $32.7 million, or approximately 11.8%, to $245.0 million from $277.7 million for the same period in 2020 [147]. - The company recorded a net loss of approximately $64.6 million for the nine months ended September 30, 2021, compared to a net loss of $19.5 million for the same period in 2020 [154]. - Net loss was approximately $11.1 million for the three months ended September 30, 2021, compared to a net income of $14.3 million for the same period in 2020 [146]. - Adjusted EBITDA for the nine months ended September 30, 2021 was $14.6 million, down from $22.7 million for the same period in 2020, reflecting a decrease of approximately 35.7% [156]. Revenue Breakdown - For the nine months ended September 30, 2021, the company derived 67.4% of its revenues from product sales, 22.3% from services, and 10.3% from leasing [126]. - Approximately 64.5% of the company's revenues for the nine months ended September 30, 2021, were derived from foreign sales [126]. - The company accounted for 29 projects using over-time accounting for the three months ended September 30, 2021, representing approximately 24.9% of total revenues [129]. Operational Challenges - The ongoing COVID-19 pandemic has significantly reduced global economic activity and demand for oil and gas, impacting the Company's operations and supply chain [96]. - The Company expects the constraints imposed by the pandemic to slow research and development activities and qualification efforts with customers [102]. - The Company continues to face risks and uncertainties that could materially affect its operational and financial performance, including potential contract terminations and market volatility [97]. - The Company has taken steps to implement safety measures and retain employees during the pandemic, including on-site vaccination administration [98]. - The company adjusted its workforce in response to ongoing market conditions related to the COVID-19 pandemic [161]. Tax and Financial Management - The Company deferred approximately $2.9 million in FICA cash tax payments to 2021 and 2022 due to the Payroll Tax Deferral provided by the CARES Act [99]. - The effective income tax rate fluctuates based on changes in pretax income in jurisdictions with varying statutory tax rates [136]. Cost Management - Cost of sales decreased by $4.4 million, or approximately 6.5%, to $62.8 million for the three months ended September 30, 2021 [140]. - Selling, general and administrative expenses increased by $4.4 million, or 21.2%, to $25.3 million for the three months ended September 30, 2021 [141]. - Selling, general and administrative expenses increased by $15.6 million, or approximately 22.6%, to $84.4 million for the nine months ended September 30, 2021 [147]. - Engineering and product development expenses decreased by approximately $3.6 million, or 24.3%, to $11.3 million for the nine months ended September 30, 2021 [149]. Cash Flow and Liquidity - Cash flows from operating activities for the nine months ended September 30, 2021 were $33.7 million, a significant improvement compared to cash used in operating activities of $4.3 million for the same period in 2020 [165]. - The company had approximately $375.2 million in cash and cash equivalents as of September 30, 2021, with an additional availability of $31.1 million under the ABL Credit Facility [160]. Market Conditions and Future Outlook - The average Brent Crude oil price is projected to be approximately $71 per barrel in 2021 and $72 per barrel in 2022, compared to an average of $41.69 per barrel in 2020 [104]. - The Company anticipates that the uncertainty in the sustainability of current oil prices will continue to negatively impact oil and gas activities [102]. - The Company continues to explore potential acquisitions and joint ventures, although the timing and success of such efforts remain unpredictable [172]. Foreign Exchange Risks - The Company does not engage in any material hedging transactions, forward contracts, or currency trading to mitigate foreign exchange risks [175]. - The Company’s foreign subsidiaries may have monetary assets and liabilities not denominated in their functional currency, exposing them to currency exchange rate fluctuations [176]. - There is no assurance that the Company will be able to protect itself against future currency fluctuations [176]. - The Company has operations in various countries and conducts business in multiple currencies, increasing exposure to foreign exchange rate risk [176]. - There have been no material changes in market risks for the Company since December 31, 2020 [175].

Dril-Quip, Inc. (NYSE:DRQ) Q2 2021 Earnings Conference Call July 30, 2021 11:00 AM ET Company Participants Blake DeBerry - CEO & Director Raj Kumar - CFO & VP Conference Call Participants Daniel Burke - Johnson Rice & Company Operator Good day and thank you for standing by. Welcome to Drill-Quip Second Quarter 2021 Fireside Chat. At this time all participants' lines are open. [Operator Instructions]. I would now like to hand the call over to your speaker today. Mr. Daniel Burke. Please go ahead. Daniel Burk ...

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 June 30, 2021 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) DELAWARE 74-2162088 (State or other jurisdiction of incorporation or organization) (I. ...

Dril-Quip, Inc. (NYSE:DRQ) Q1 2021 Earnings Conference Call April 30, 2021 11:00 AM ET Company Participants Luke Lemoine - Capital One Securities Blake DeBerry - CEO & Director Raj Kumar - CFO & VP Conference Call Participants Luke Lemoine Good morning everyone. Thanks for joining. My name is Luke Lemoine with Capital One Securities. And I am joined with Dril-Quip’s CEO Blake DeBerry, and CFO Raj Kumar. Blake and Raj thanks for taking the time to chat about Dril-Quip in the quarter today. Blake DeBerry Than ...

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 March 31, 2021 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) DELAWARE 74-2162088 (State or other jurisdiction of incorporation or organization) (I ...

Dril-Quip, Inc. (NYSE:DRQ) Q4 2020 Earnings Conference Call February 26, 2021 10:00 AM ET Company Participants Blake Holcomb - Director, IR & Corporate Planning Blake DeBerry - CEO & Director Raj Kumar - CFO & VP Jeffrey Bird - President & COO Conference Call Participants Sean Meakim - JPMorgan Chase & Co. James West - Evercore ISI Taylor Zurcher - Tudor, Pickering, Holt & Co. John Anderson - Barclays Bank Connor Lynagh - Morgan Stanley Operator Good morning, and welcome to Dril-Quip's Year-End 2020 Confere ...

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, 2020 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 (State or other ...

Dril-Quip, Inc. (NYSE:DRQ) Fireside Chat Webcast Call October 30, 2020 11:00 AM ET Company Participants Blake DeBerry - President and Chief Executive Officer Raj Kumar - Chief Financial Officer Conference Call Participants George O'Leary - Tudor Pickering Holt & Company Taylor Zurcher - Tudor Pickering Holt & Company Operator Good morning ladies and gentlemen, and welcome to the Drill-Quip Fireside Chat Webcast. At this time, all participants have been placed on listen only mode. It is now my pleasure to tu ...

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, 2020 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) DELAWARE 74-2162088 (State or other jurisdiction of incorporation or organization ...

Summary of Dril-Quip, Inc. Conference Call Company Overview - **Company**: Dril-Quip, Inc. (NYSE: DRQ) - **Participants**: - Blake DeBerry - President & CEO - Raj Kumar - Chief Financial Officer - **Analyst**: Sean Meakim - Oil Services Analyst at JP Morgan Key Points Industry Context - The conference call was held following the release of Dril-Quip's 2Q results, amidst a challenging environment for the offshore oil services industry due to COVID-19 impacts [2][12]. Financial Performance - **2Q Results**: - Top line slightly better than consensus, EBITDA in line with expectations despite a challenging quarter [12][25]. - Booked approximately $40 million in orders, below expectations of $50 to $60 million per quarter [21][22]. - The company is targeting a total of $200 million in bookings for the full year [22][23]. COVID-19 Impact - Implemented a business continuity plan in mid-March, allowing 700 employees to work from home while essential personnel continued operations [13][14]. - Production output was affected due to social distancing measures and COVID-related quarantines, leading to lost hours in production [15][26]. Cost Management and Transformation - Achieved $11.5 million in cost savings in Q2, with a target of an additional $9 million for the second half of the year [16][17]. - Focus on capital allocation and working capital management moving forward [11][30]. Product Development and Innovation - Emphasis on developing differentiated products to provide cost savings for customers, particularly in subsea wellhead and connectors [5][6][8]. - New products like the VXTe subsea tree have generated significant interest, with ongoing discussions with peers for potential monetization [8][54]. Market Outlook - Anticipates a challenging market environment for the next few quarters, with recovery expected around 2022 or 2023 [42]. - Differentiation in behavior observed among independent oil companies (IOCs), national oil companies (NOCs), and independents, with independents cutting CapEx more dramatically [44][45]. Strategic Partnerships - Collaboration with Proserv to enhance subsea controls business, reducing the need for R&D spending and leveraging each other's customer bases [35][36][38]. Capital Allocation Strategy - Plans to maintain a cash balance of approximately $350 million, with a focus on maintenance-level CapEx and strategic investments in R&D [57][58]. - Open to M&A opportunities but will require creative financing solutions due to current cash levels [58]. Conclusion - Dril-Quip remains optimistic about its position in the market, emphasizing the resilience of its workforce and the potential for recovery post-pandemic [60][61]. Additional Important Points - The company has successfully adapted to the pandemic, maintaining customer engagement through virtual presentations and online marketing efforts [60]. - The focus on lean operating philosophy has allowed Dril-Quip to monetize excess real estate assets rather than exiting leases [20]. This summary encapsulates the key discussions and insights from the conference call, highlighting Dril-Quip's strategic direction, financial performance, and market outlook amidst ongoing challenges in the oil services industry.