Dril-Quip, Inc. Cowen & Company 5th Annual Ultimate Energy Conference New York, N.Y. December 1, 2015
DRQ - Investment Highlights Pure play in worldwide offshore market Technically differentiated products Superior margins Strong balance sheet Experienced management team Well positioned to navigate industry downturn and exploit…
DRQ - Things You May Not Know 17 product lines internally developed Vertically integrated manufacturing operations Capability to manufacture subsea trees and controls in Houston, Aberdeen and Singapore Approximately 300 subsea…
DRQ - Setting a Global Standard First Subsea Wellhead System fully qualified to API 17D, 2nd Edition up to 20,000 psi First company to perform a full-scale system level validation test on a Subsea Wellhead System First company…
Subsea Well Systems Utilized on all subsea wells drilled with floating rigs Subsea Wellheads Specialty Connectors Liner Hangers
Dry Tree Completion Systems Utilized by SPARs and TLPs Surface Trees Surface Wellheads Riser Tensioners Production Risers Tie-Back Connectors Subsea Wellheads Specialty Connectors Liner Hangers
Subsea Completion Systems Utilized in subsea field developments Subsea Trees Control Systems Subsea Manifolds Subsea Wellheads Specialty Connectors Liner Hangers
Strong Global Presence Located worldwide to serve key demand centers Eastern Hemisphere Headquarters Aberdeen, Scotland World Headquarters Houston, Texas Asia-Pacific Headquarters Singapore Maca, Brazil Dril-Quip…
Suppliers Offshore Operators
Consistent Track Record of Growth 400 1,000 350 900 300 800 Number of Working Floating Rigs Revenue (millions) 250 700 200 600 150 500 100 400 50 300 0 200 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Working…
DRQ Revenues, Wells Drilled and Day Rates 1,000 800 DRQ Revenue (Millions) & Floating Rig 875 700 750 600 Day Rate (Thousands) 625 500 Number of Wells 500 400 375 300 250 200 125 100 0 0 2005 2006 2007…
Contracted Floating Rig Fleet 2008 2017E 300 280 High Case Average Number 260 of Rigs 240 Base Case 220 200 Low Case 180 160 2008 2009 2010 2011 2012 2013 2014 2015E 2016E 2017E Projected Floaters Contracted…
Floating Rig Fleet by Water Depth 2010 2016E By year end 2015, there will be more ultra-deepwater rigs than all other floating rigs combined. 350 300 Floating Rigs 250 139 160 111 127 ofFleet 84 187 Ultra-deepwater…
Machinery and Equipment Rebuilding Purchase used equipment Refurbish in-house with new CNC controls Purpose-built machine tools Resulting in reduced capital expenditures
Depreciation as a % of Revenue DRQ depreciation compares favorably with members of Peer Group 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 1H 2015 2014 2013 2012 DRQ CAM FTI
Strong Balance Sheet Offers Flexibility (millions of US) Sept. 30, Dec. 31, Assets 2015 2014 Cash 397 299 Other current assets 737 828 Property, plant and equipment, net 292 310 Other assets 12 12 Total assets 1,438 1,449…
Condensed Consolidated Statements of Income Nine months ended Sept. 30, (000s of US) 2015 2014 Revenues 642,680 676,138 Cost and expenses: Cost of sales 54.6% 350,934 54.9% 371,030 S, G & A 67,871 70,300 Engineering 35,348…
Superior Margins vs. Peers* 35.0% EBIT (Operating Income) Margin ** (%) 29.9% 28.2% 30.0% 25.6% 25.0% 21.6% 22.1% 20.0% 15.0% 10.0% 5.0% 0.0% 2011 2012 2013 2014 1H 2015 Dril-Quip Average of Peer Group Superior…
Capital Allocation Overview 397 million cash-on-hand 09/30/2015 0 (zero) long-term debt 09/30/2015 241 million in stock buybacks: 4Q 2013 3Q 2015 59 million buy-back authorization remaining 09/30/2015 Significant positive cash…
Looking Ahead Utilize free cash flow and balance sheet to enhance share- holder value through stock repurchase and potential M&As Utilize superior margins to maintain / grow market share Leverage engineering resources for new…
DRIL-QUIP, Inc. DRIL-QUIP (Europe), Ltd. DRIL-QUIP Asia Pacific Pte., Ltd DRIL-QUIP do Brasil, Ltda. 6401 N. Eldridge Pkwy. Stoneywood Park 80 Tuas West Drive Estrada de Imboassica, 853 Houston, Texas, 77041 Dyce, Aberdeen, AB21 7DZ,…
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