FORWARD-LOOKING STATEMENTS 3 • uncertainties regarding future oil and gas exploration and production activities in the U.S. Gulf of Mexico and elsewhere, including new regulations, customs requirements and product testing requirements; • current and potential governmental regulatory actions in the United States and regulatory actions and political unrest in other countries; • uncertainties regarding political tensions in the Middle East, Africa and elsewhere; • uncertainties associated with the United States and worldwide economies; • the cyclical nature of the oil and gas industry; • the volatility of oil and natural gas prices; • future operations, financial results, business plans and cash needs. • changes in customers’ future product and service requirements that may not be cost effective or within the Company’s capabilities; and • effects of pending legal proceedings; • compliance with present and future environmental regulations and costs associated with environmentally related penalties, capital expenditures, remedial actions and proceedings; • the exploration, development and production activities of the Company’s customers; • the Company’s ability to develop new applications for its technologies; • the market for the Company’s existing and future products; • the introduction into the market of the Company’s future products; • the availability of expected sources of liquidity; • working capital requirements; • scheduled, budgeted and other future capital expenditures; • future operating results and cash flow; 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 assurances 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: These statements are based on assumptions and analyses in light of the Company’s experience and perception of historical trends, current conditions, expected future developments and other factors the Company believes were appropriate in the circumstances when the statements were made. Forward-looking statements by their nature involve substantial risks and uncertainties that could significantly impact expected results, and actual future results could differ materially from those described in such statements. While it is not possible to identify all factors, the Company continues to face many risks and uncertainties. Among the factors that could cause actual future results to differ materially are the risks and uncertainties discussed under “Item 1A. Risk Factors” in this report and the following: