Dril-Quip Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Dril-Quip Inc. has filed its comprehensive 2023 annual report (10-K) detailing financial performance, business operations, and risk factors.</b>

AI Summary

DRIL-QUIP INC (INVX) filed a Annual Report (10-K) with the SEC on February 27, 2024. Dril-Quip Inc. filed its 10-K report for the fiscal year ending December 31, 2023. The filing covers the company's financial performance and business operations. Key financial data and segment information are detailed within the report. The report includes information on executive compensation and equity plans. It also addresses risk factors and other disclosures relevant to investors.

Why It Matters

For investors and stakeholders tracking DRIL-QUIP INC, this filing contains several important signals. This 10-K filing provides investors with a detailed overview of Dril-Quip's financial health and strategic direction for the fiscal year 2023. Understanding the disclosed risk factors and operational segments is crucial for assessing the company's future performance and potential challenges in the oil and gas machinery sector.

Risk Assessment

Risk Level: medium — DRIL-QUIP INC shows moderate risk based on this filing. The company operates in the oil and gas industry, which is subject to significant price volatility and geopolitical risks, as evidenced by the nature of its business and the industry context provided.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess Dril-Quip's performance and outlook in the volatile energy market.

Key Numbers

• 2023-12-31 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 2024-02-27 — Filing Date (FILED AS OF DATE)
• 125 — Public Document Count (PUBLIC DOCUMENT COUNT)

Key Players & Entities

• DRIL-QUIP INC (company) — FILER
• 0001042893 (company) — CENTRAL INDEX KEY
• 3533 (company) — STANDARD INDUSTRIAL CLASSIFICATION
• DE (company) — STATE OF INCORPORATION
• 742162088 (company) — IRS NUMBER
• 2050 WEST SAM HOUSTON PARKWAY S. SUITE 1100 (company) — BUSINESS ADDRESS
• HOUSTON (company) — CITY
• TX (company) — STATE

FAQ

Industry Context

Dril-Quip Inc. operates in the Oil & Gas Machinery & Equipment industry, providing specialized equipment and services for oil and gas exploration and production.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to disclose material information about their business, financial condition, and operations.

What Investors Should Do

1. Review Dril-Quip's financial statements for the fiscal year ended December 31, 2023.
2. Analyze the disclosed risk factors to understand potential challenges and opportunities.
3. Examine segment information to assess the performance of different business units.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-27: Filing Date — Date the 10-K report was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial filing of the 2023 10-K report, providing the latest annual financial and operational data for Dril-Quip Inc.

Key Financial Figures

• $23.27 — ing price of such stock on such date of $23.27. At February 22, 2024, the number of
• $105 million — "Great North") for a purchase price of $105 million CAD, approximately $79.8 million, which
• $79.8 m — rice of $105 million CAD, approximately $79.8 million, which is subject to customary ad
• $97.10 — e oil prices fluctuated, with a high of $97.10 per barrel and a low of $71.03 per barr
• $71.03 — high of $97.10 per barrel and a low of $71.03 per barrel. According to the January 20
• $82.49 — crude oil prices averaged approximately $82.49 per barrel in 2023, and the price is fo
• $79.48 — o average $82.49 per barrel in 2024 and $79.48 per barrel in 2025. Even during periods

Filing Documents

• drq-20231231.htm (10-K) — 3174KB
• drq-ex19_1.htm (EX-19.1) — 87KB
• drq-ex21_1.htm (EX-21.1) — 27KB
• drq-ex23_1.htm (EX-23.1) — 4KB
• drq-ex31_1.htm (EX-31.1) — 15KB
• drq-ex31_2.htm (EX-31.2) — 12KB
• drq-ex32_1.htm (EX-32.1) — 7KB
• drq-ex32_2.htm (EX-32.2) — 7KB
• drq-ex97_1.htm (EX-97.1) — 13KB
• img17599144_0.jpg (GRAPHIC) — 214KB
• 0000950170-24-020662.txt (&nbsp;) — 15281KB
• drq-20231231.xsd (EX-101.SCH) — 1907KB
• drq-20231231_htm.xml (XML) — 3113KB

Business

Business 7 Item 1A.

Risk Factors

Risk Factors 21 Item 1B. Unresolved Staff Comments 32 Item 1C. Cybersecurity 33 Item 2.

Properties

Properties 34 Item 3.

Legal Proceedings

Legal Proceedings 35 Item 4. Mine Safety Disclosure 35 PART II Item 5. Market for Registrant's Common Stock, Related Stockholder Matters and Issuer Purchases of Equity Securities 36 Item 6. [Removed and Reserved] 38 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 39 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 50 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 51 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 84 Item 9A.

Controls and Procedures

Controls and Procedures 84 Item 9B. Other Information 84 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 84 PART III Item 10. Directors, Executive Officers and Corporate Governance 85 Item 11.

Executive Compensation

Executive Compensation 85 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 85 Item 13. Certain Relationships and Related Transactions, and Director Independence 85 Item 14. Principal Accountant Fees and Services 85 PART IV Item 15. Exhibits and Financial Statement Schedules 86 Item 16. Form 10-K Summary 89

Signatures

Signatures 90 3 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K includes certain statements that may be deemed to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Statements contained in all parts of this document that are not historical facts are forward-looking statements that involve risks and uncertainties that are beyond the control of Dril-Quip, Inc. (the "Company" or "Dril-Quip"). You can identify the Company's forward-looking statements by the words "anticipate," "estimate," "expect," "may," "project," "believe" and similar expressions, or by the Company's discussion of strategies or trends. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that these expectations will prove to be correct. These forward-looking statements include the following types of information and statements as they relate to the Company: the impact of actions taken by the Organization of Petroleum Exporting Countries and the expanded alliance (OPEC+) with respect to their production levels and the effects thereof; risks related to the acquisition of Great North, including the risk that the benefits of the transaction may not be fully realized or may take longer to realize than expected; the impact of general economic conditions, including inflationary pressures and interest rates, a general economic slowdown or recession or instability in financial institutions, on economic activity and on our operations; future operating results and cash flow; scheduled, budgeted and other future capital expenditures; planned or estimated cost savings; working capital requirements; the need for and the availability of expected sources of liquidity; the introduction into the market of the Company's future products; the Company's a

Business

Item 1. Business General Dril-Quip, Inc., a Delaware corporation (the "Company" or "Dril-Quip"), is a leading developer of innovative technologies for the energy industry, designing and manufacturing best-in-class products for traditional oil and gas, and certain energy transition applications. The Company designs, manufactures, sells and services highly engineered drilling and production equipment for both offshore and onshore applications. The Company's principal products consist of subsea and surface wellheads, specialty connectors and associated pipes, subsea production systems, mudline hanger systems, production riser systems, dry tree systems, subsea manifolds, line hangers and expandable liner systems, multi-frac well connections, conventional wellhead, thermal wellhead, completion packers and safety and kelly valves. Dril-Quip's products are used by major integrated, large independent and foreign national oil and gas companies and drilling contractors throughout the world. Dril-Quip also provides technical advisory assistance on an as-requested basis during installation of its products, as well as rework and reconditioning services for customer-owned Dril-Quip products. In addition, Dril-Quip's customers may rent or purchase running tools from the Company for use in the installation and retrieval of the Company's products. Dril-Quip has developed its broad line of subsea equipment, surface equipment and offshore rig equipment primarily through its internal product research and development efforts. The Company believes that it has achieved significant market share and brand name recognition with respect to its established products due to the technological capabilities, reliability, cost effectiveness and operational timesaving features of these products. On July 31, 2023, the Company acquired 100% of the issued and outstanding shares of 1185641 B.C. LTD (d/b/a Great North Wellhead and Frac, "Great North") for a purchase price of $105 million CAD, appr

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View this 10-K filing on SEC EDGAR