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Maverick Tube Reports
4th Quarter Results

Jan. 22, 2004 — Maverick Tube Corp. announced net income of $13.0 million on net sales of $243.2 million for the quarter and net income of $23.0 million on net sales of $884.3 million for the year ended December 31, 2003.

Fourth Quarter Results — Net income, $13.0 million ($0.31 per share), compares to a net loss in the same quarter last year of $569,000 ($0.01 per share). Income during the quarter was reduced by $1.1 million ($0.02 per share) due to adjustments associated with the disposition of idled assets, severance costs and certain internal reorganization costs. Differences between actual and expected tax benefits increased the quarterly effective tax rate by 4 percentage points, which reduced net income by $0.02 per share. Net sales, $243.2 million, were up from net sales of $124.8 for the fourth quarter of 2002.

Total tons of U.S. energy-related products shipped during the fourth quarter increased to 143,229 tons, up 52%, compared to the fourth quarter of 2002. This increase was primarily due to a 31% increase in drilling rates in the U.S. during the quarter compared to the fourth quarter of fiscal 2002, with a 36% increase in gas related drilling, a 10% increase in oil related drilling and increased exports to Canada. Energy shipments in Canada increased 53%, up to 92,521 tons, during the fourth quarter over last year's rate, with drilling levels increasing 46% from the fourth quarter of last year. Fourth quarter shipments of the company's industrial products increased to 95,085 tons (177% compared to the fourth quarter of fiscal 2002) primarily attributable to the company's acquisition at the end of 2002. Excluding shipments associated with this acquisition, industrial products increased 24% compared to the fourth quarter of 2002.

Fiscal 2003 Results — Net income, $23.0 million ($0.55 per share), compares to net income of $3.4 million ($0.09 per share) in the prior year. Net sales, $884.3 million, were up from net sales of $452.9 million for the full year of 2002.

Management Comments — Gregg Eisenberg, President and CEO said, "The rig count moved ahead 31% in the U.S. and 46% in Canada compared to last year. However, imports into the U.S. were up 81% from a year ago and 18% from last quarter. Inventory held by distributors and end users declined 8% from the prior quarter. As a result, domestic OCTG shipments in the U.S. were up 39% and down 20% from last year and from last quarter, respectively. In Canada, domestic shipments of OCTG products increased 46% from last year and 3% from the last quarter."

Eisenberg went on to say, "Maverick's energy business was very strong during the quarter, benefiting from higher volumes and market shares across the board. Product prices improved slightly and operating costs were reduced. Maverick's industrial business, was also improved due to the earlier acquisition of the conduit division, but seasonally weak on a "same stores" basis from the prior quarter. Despite the previously announced raw material cost pressures, we expect profitability in our business to remain strong into 2004."

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

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