Feb. 10, 2006 — Maverick Tube Corp. reported net income of $63.2 million on net sales of $484.7 million for the quarter and net income of $172.3 million on net sales of $1785.2 million for the year ended December 31, 2005.

Fourth Quarter Results—The $63.2 million net income ($1.54 per diluted share) represents an increase of $24.7 million ($0.64 per diluted share) from the fourth quarter of 2004, and an increase of $24.1 million ($0.64 per diluted share) from the third quarter of 2005. Net sales of $484.7 million are up from $361.3 million for the quarter ended December 31, 2004.

Sales of energy products increased 2.5% sequentially to $409.7 million from $399.5 million in the third quarter of 2005. This increase reflects higher energy product prices partially offset by lower volumes. Total energy products shipments decreased from about 300,000 tons in the third quarter to 286,000 tons in the fourth quarter of 2005. The decline was primarily attributable to an unusually large volume of line pipe project shipments in the third quarter.

Sales of electrical products were $75.0 million compared to $89.6 million in the third quarter 2005. This 16.3% revenue decrease was primarily due to lower shipment volumes in the seasonally weaker fourth quarter.

Full Year Results—The $172.3 million net income ($4.02 per diluted share) was, below the prior year's level by $21.5 million ($0.52 per diluted share). Net sales of $1.8 billion compare with $1.3 billion for the year ended December 31, 2004.

Sales of energy products grew 53.2% to a record $1.5 billion compared to sales of $954.4 million for the prior year. This year-over-year increase was primarily due to continued growth in the U.S., another record year in the Canadian energy market, seven months of net sales contribution from Tubos del Caribe SA, along with growing revenues from the company’s Precision Tube and Texas Arai businesses.

Management Comments—C. Robert Bunch, the company's Chairman, President and CEO, said, "We are very pleased with Maverick's fourth quarter performance. Activity levels continue to be strong in all of our energy markets. A substantial portion of our sequential revenue growth came from Prudential, Texas Arai, and TuboCaribe, all acquisitions we've completed in the last five years. Precision Tube, our coiled tubing business unit acquired in 2002, continues to operate at capacity. Additionally, we've worked off our higher cost steel inventories, improving our consolidated gross margin to 26.6% for the quarter and setting the stage for what we expect will be a robust 2006."

Mr. Bunch continued, "Looking forward, we expect drilling and workover activity in 2006 to continue to increase in the markets we serve. Building on our excellent fourth quarter, we expect to demonstrate the benefits of actions taken in 2005 such as our acquisition of TuboCaribe, the substantial increase in our premium alloy OCTG capacity, our coiled tubing expansion and the consolidation of our electrical conduit manufacturing capacity. Steel costs have declined from their highs in early 2005. And, most importantly, we expect the nimbleness and energy of our people unleashed by our new business structure to continue propelling our operating performance. We believe we are very well positioned for 2006 and beyond."

Maverick Tube Corp. is a St. Louis, Mo., 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.