Maverick Tube Corp. announced net income of $38.5 million on net sales of $396.2 million for the quarter and net income of $193.8 million on net sales of $1.456 billion for the year ended December 31, 2004.

Fourth Quarter Results—Net income of $38.5 million ($0.90 per diluted share) compares to net income in the same quarter last year of $13.0 million ($0.31 per diluted share) and net income of $68.5 million ($1.60 per diluted share) in the third quarter of 2004. Net sales of $396.2 million were up from net sales of $243.2 million in the prior-year fourth quarter.

Revenues from the sale of energy products increased 15.4% sequentially to $295.9 million from $256.4 million in the third quarter. Energy revenues reflect a 2.9% increase in tons shipped compared to the third quarter, from 209,635 tons to 215,667 tons, as well as increased selling prices. Rigs running in the United States increased by 2% compared to the third quarter of 2004, with a 1% increase in gas-related drilling and a 7% increase in oil-related drilling. In Canada, drilling activity increased 2% sequentially and 3% compared to the fourth quarter of 2003.

Revenues from the sale of non-energy products decreased 30.5% sequentially to $100.3 million from $144.3 million in the third quarter. Non-energy shipments reflect a 34.2% decrease as compared to the third quarter, from 93,212 tons to 61,377 tons, but an increase in average selling price.

Full Year Results—Net income of $193.8 million ($4.54 per diluted share) compares to net income of $23.0 million ($0.55 per diluted share) for 2003. Net sales, $1,456.3 million, compare with net sales of $884.3 million in 2003.

Sales of energy products increased 53.5% to $954.4 million compared to $622.0 million in 2003. Sales of non-energy products increased 91.3% to $501.8 million compared to $262.4 million in 2003.

Management Comments—C. Robert Bunch, the company's Chairman and CEO, said, "We are very pleased with our fourth quarter and annual results. As anticipated, our fourth quarter profits reflect the higher steel costs incurred earlier in the year. Energy sales reflect the continuing robust drilling environment in both the United States and Canada. In both of these markets, we have worked diligently to ensure that our selling prices reflect not only our increased steel costs but also the current competitive environment in these markets. Despite substantial price increases, we have maintained our OCTG market shares in both the United States and Canada. In addition to our strong OCTG performance throughout the year, we are also pleased by the contributions from our line pipe, couplings, coiled tubing and umbilical products. Sales of our non-energy products in the fourth quarter reflected seasonal declines typical during this period as well as some impact from our increased selling prices."

Mr. Bunch continued, "2004 was a record year for Maverick in both revenues and profits. For this, we are grateful to our customers, fellow employees and suppliers. Faced with the challenge of unprecedented increases in the cost of steel, we have collectively maintained the financial vitality of our business while supplying our customers with the products and service they expect from Maverick. Our financial results also reflect the positive effects of our substantial geographic and product diversification over the past few years. As we move into 2005, U.S. OCTG inventories are relatively low, at about 4.1 months supply or 1.2 million tons at the end of 2004. We anticipate another strong year in 2005 for North American drilling activity. We believe that Maverick is well positioned to take advantage of any opportunities."

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.