Maverick Tube Corp. reported net income of $39.2 million on net sales of $489.1 million for the third quarter ended September 30, 2005.

The $39.2 million net income ($0.90 per diluted share) compares to net income of $38.7 million ($0.89 per diluted share) for the second quarter 2005. Net income included the negative impact of Hurricane Rita, severance costs, expenses associated with the company's consolidation of its electrical conduit manufacturing facilities and losses from discontinued operations. These items aggregate approximately $6.8 million ($0.16 per diluted share). Net income from the second quarter of 2005 included a $0.23 gain on the sale of the company's hollowed structural sections (HSS) industrial business and a $0.01 loss from discontinued operations.

Income from continuing operations was $40.6 million ($0.93 per diluted share) compared to $28.9 million ($0.67 per diluted share) for the second quarter 2005, as adjusted for discontinued operations. Net sales from continuing operations were $489.1 million compared to $400.6 million for the second quarter 2005.

Sales of energy products were $399.5 million compared to $319.6 million in the second quarter 2005, due to very robust Canadian activity, continued strength in the U.S. market, and a full quarter of net sales contribution from Tubos del Caribe and Colmena SA. Total energy products shipments increased 71,504 tons (31.2%) from the second quarter of 2005. Energy products revenue increased 25.0%, reflecting higher volumes partially offset by a lower average selling price attributable to a higher percentage of line pipe in the mix. U.S. active rigs running increased 6.9% over the second quarter while the Canadian rig count more than doubled over the same period.

Sales of industrial products were $89.6 million compared to $81.1 million in the second quarter 2005. This 10.5% revenue increase is attributable to a 16.0% increase in shipments partially offset by lower average selling prices.

Comments—C. Robert Bunch, Maverick's Chairman and CEO, said, "We are very pleased with the performance of our energy segment in the third quarter. Our participation in the explosive growth experienced by the Canadian oilpatch was a key driver to this quarter's results, along with continued strong demand in the U.S. energy markets. In addition, we believe the performance of our recently acquired Latin American operation, Tubos del Caribe, validates our strategic growth initiatives. Further, our coiled tubing and coupling businesses made significant contributions to our results. Finally, energy gross margins improved over last quarter primarily due to the anticipated impact of reduced steel costs flowing through cost of goods sold."

Mr. Bunch continued, "We believe we have made substantial progress on the major initiatives in place for the year. Our premium alloy expansion, expected to double our ability to provide premium alloy OCTG to our customers in 2006, has begun. When completed early next year, we expect our U.S. OCTG sales mix will be about one-half premium alloy products. In addition, our coiled tubing expansion, which should allow us to meet current demand and to continue to develop new products that address our customers' needs, is well underway. Further, we are currently installing equipment in our new electrical conduit plant in Louisville, Ky. We expect to begin realizing the cost savings associated with this consolidation sometime in the second quarter of 2006. Finally, the realignment of our company into smaller, more nimble business units supported by a lean, efficient corporate office, is just about complete."

"These are exciting times for all the stakeholders of Maverick," Mr. Bunch continued, "We believe the company is now properly structured and aligned to fully capitalize on current market opportunities and pursue our growth strategy. Global drilling activity is expected to continue to grow in 2006 and beyond, which should drive demand for all of our energy products. As we move into the fourth quarter, we expect to see our cost of sales more closely reflect current steel prices, which should result in improved operating margins. All in all, we believe Maverick is ideally positioned for continued growth."

Maverick Tube Corp. is a St. Louis, Missouri, based manufacturer of tubular products in the energy industry for exploration, production, and transmission, as well as industrial tubing products (steel electrical conduit, HSS, standard pipe, pipe piling, and mechanical tubing) used in various applications.