Attached files
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| 8-K - FORM 8-K - DRIL-QUIP INC | d323119d8k.htm |
 Howard Weil
40
th
Annual
Energy Conference
March 26, 2012
Howard Weil
40
th
Annual
Energy Conference
March 26, 2012
Exhibit 99.1
Dril-Quip, Inc. |
 The
information furnished in this presentation contains “forward-looking statements”
within the meaning of the Federal Securities laws. Forward-looking statements
include goals, projections, estimates, expectations, forecasts, plans and
objectives, and are based on assumptions, estimates and risk analysis made
by management of Dril-Quip in light of its experience and perception of
historical trends, current conditions, expected future
developments
and
other
factors.
No
assurance
can
be
given
that
actual
future
results will not differ materially from those contained in the forward-looking
statements in this presentation.
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.
Please refer to Dril-Quip’s filings with the SEC for additional discussion
of risks and uncertainties that may affect Dril-Quip’s actual
future results. Dril-Quip undertakes no obligation to update the
forward-looking statements contained herein. Forward-Looking
Statements |
 •
Pure play in worldwide offshore market
•
Emphasis on deep water
•
Strong balance sheet
•
Strong backlog
•
Superior margins
•
Positioned for growth
DRQ -
Investment Highlights |
 Rig
Count Source: ODS-Petrodata Active Floating Rigs
Revenue
Consistent Track Record of Growth
$0
$100
$200
$300
$400
$500
$600
$700
-
50
100
150
200
250
300
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011 |
 Strong Global Presence
Worldwide offices located near key demand centers
Worldwide offices located near key demand centers
Dril-Quip manufacturing,
sales and service
Dril-Quip sales
and/or service
World Headquarters
Houston, Texas
Asia Pacific Headquarters
Singapore
Brazil
Dril-Quip sales
representatives
Eastern Hemisphere Headquarters
Aberdeen,
Scotland |
 Suppliers | Offshore Operators |
 Subsea Equipment
Specialty Connectors
Mudline Suspension
Subsea Wellheads
Tie-Back Connectors
Template Systems
Subsea Trees
Control Systems
Subsea Manifolds
Production Risers
Liner Hangers
Completion Risers
Surface Equipment
Surface Wellheads
Surface Trees
Riser Tensioners
Offshore Rig Equipment
Drilling Risers
Wellhead Connectors
Diverters
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
12
13
Platform
Jack-Up
FPSO
TLP
Spar
Drillship
Semi
4
5
2
1
10
12
17
2
1
10
9
4
9
4
3
1
10
17
15
7
6
13
12
14
3
8
1
10
13
12
17
9
4
3
1
10
17
15
16
3
1
10
8
7
6
17
14
Services
Reconditioning,
Rental Tools, Field Installation
15
14
Product and Services Summary
11
11
16 |
 Utilized on subsea wells
drilled by floating rigs
•
Specialty Connectors
•
Subsea Wellheads
•
Liner Hangers
Subsea Well Systems |
 Utilized by Spars and TLPs
Surface Trees
Surface Wellheads
Riser Tensioners
Production Risers
Tie-Back Connectors
Subsea Wellheads
Specialty Connectors
Liner Hangers
Dry Tree Completion Systems |
 Utilized with FPSO and
Subsea Developments
•
Subsea Trees
•
Control Systems
•
Subsea Manifolds
•
Subsea Wellheads
•
Specialty Connectors
•
Liner Hangers
Subsea Completion Systems |
 Utilized on Drilling Rigs
•
Drilling Risers
•
Wellhead Connectors
•
Diverters
Offshore Rig Equipment |
 Source: IHS Petrodata, BofA Merrill Lynch, Quest QSDB
Total Subsea Wells Drilled
Working Floating Rigs
0
50
100
150
200
250
300
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
0
100
200
300
400
500
600
700
800
Total Floating Rigs
Wells Drilled from Floating Rigs
Tree Startups |
 Growth of Floating Rig Fleet
Source: IHS Petrodata, March 21, 2012
Assumes no attrition of rig fleet |
 Source: Quest Floating Production Database, Mar 21, 2012
FPSO, SPAR and TLP Awards
Worldwide Floating Production
Units Forecast |
 Source: Quest Subsea Forecast Awards, Feb 20, 2012
Subsea Tree Awards Forecast Base Case
Worldwide Subsea Tree Forecast |
 Assets
Current assets
$ 799
$
688
Property, plant and equipment, net
275
247
Other assets
12
13
Total assets
$ 1,086
$ 948
Liabilities and Stockholders’
Equity
Current liabilities
$ 151
$ 111
Long-term debt
-
-
Deferred taxes
10
9
Total liabilities
161
120
Stockholders’
equity
925
828
$ 1,086
$ 948
(Millions of USD)
Dec. 31, Dec. 31,
2011
2010 Condensed
Consolidated Balance Sheets |
 •
Consistent revenue
and backlog
growth
Revenue
($mm)
Worldwide Revenues and Backlog
Backlog
($mm)
601
566
540
543
496
2011
2010
2009
2008
2007
0
200
400
600
800
2011
2010
2009
2008
2007
0
200
400
600
800
716
627
563
603
429 |
 EBIT
(Operating
Income)
Margin
*
(%)
Net
Income
Margin
**
(%)
* Represents Operating Income divided by Revenue
** Represents Net Income divided by Revenue
•
Superior margins due
to:
-
Vertical
integration
-
Machine
rebuilding
Proven Track Record of Profitability
21.6
24.5
26.3
26.1
27.9
2011
2010
2009
2008
2007
0
5
10
15
20
25
30
2011
2010
2009
2008
2007
0
5
10
15
20
25
21.8
19.5
19.5
18.1
15.8 |
 Finishing
Operations
Houston
Finishing
Operations
Finishing
Operations
Finishing
Operations
Purchase Raw
Materials
Forge
Heat Treat
Rough
Machine
Aberdeen
Singapore
Brazil
Vertically Integrated Manufacturing |
 Machine Rebuilding
Purchase used
Rebuild in-house with
new CNC controls
Purpose built machines
Resulting in reduced
capital expenditures
machines |
 Macaé, Brazil (11 acres)
Houston Eldridge
(218 acres)
Manufacturing Locations
Nine new machines
planned for 2012
Additional machine shop
complete
Brazil
Four new machines
planned for 2012
Additional forge
expansion in process
Headquarters expansion
complete
Houston |
 Singapore (11 acres)
Aberdeen, Scotland (24
acres)
Manufacturing Locations
Four new machines
planned for 2012
All machines relocated
by Q2 2012
New facilities complete
Singapore
Two new machines
planned for 2012
Seven acre site added in
Q4
2010
-
Integrated
into Operation in 2011
Aberdeen |
 Machines and Machinists
1.00
1.10
1.20
1.30
1.40
150
200
250
300
350
400
1.50
Dec-09
Dec-10
Dec-11
Dec-08
Dec-06
Dec-07
Machines
Machinists
Ratio
Dec-12E |
 2012 Planned Capital Expenditures
•
Machines
•
Rental Tools
•
Buildings
•
R&D Facilities
•
Other
Total
$60
(Millions of USD)
$28
17
7
3
5 |
 •
Continued emphasis on the growing
deep water offshore sector
•
Increase market share of dry tree and subsea
completion systems
–
Expand engineering staff
–
Expand project management and sales staff
–
Utilization of recent facility expansions
•
Continue introduction of new products
•
Maintain strong financial position
Looking Ahead |