DRIL-QUIP, INC. CONSOLIDATED BALANCE SHEETS December 31, 2014 2013 (In thousands) ASSETS Current assets: Cash and cash equivalents ............................................ $ 298,705 $ 384,356 Trade receivables, net ............................................... 373,993 279,253 Inventories, net .................................................... 392,559 368,354 Deferred income taxes ............................................... 23,569 20,491 Prepaids and other current assets ...................................... 38,314 28,552 Total current assets ............................................. 1,127,140 1,081,006 Property, plant and equipment, net ......................................... 309,525 304,806 Other assets ........................................................... 12,586 10,993 Total assets ................................................... $1,449,251 $1,396,805 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable .................................................. $ 53,837 $ 45,454 Accrued income taxes ............................................... 16,903 13,628 Customer prepayments .............................................. 71,177 45,025 Accrued compensation .............................................. 21,527 21,556 Other accrued liabilities ............................................. 35,198 23,780 Total current liabilities .......................................... 198,642 149,443 Deferred income taxes ................................................... 5,417 5,344 Total liabilities ................................................ 204,059 154,787 Commitments and contingencies (Note 9) Stockholders’ equity: Preferred stock: 10,000,000 shares authorized at $0.01 par value (none issued) ......................................................... — — Common stock: 100,000,000 and 50,000,000 shares authorized at $0.01 par value at December 31, 2014 and 2013, 38,932,508 and 40,822,627 issued and outstanding at December 31, 2014 and 2013 ....................... 388 407 Additional paid-in capital ............................................ 16,480 191,965 Retained earnings .................................................. 1,278,528 1,069,816 Accumulated other comprehensive losses ............................... (50,204) (20,170) Total stockholders’ equity ........................................ 1,245,192 1,242,018 Total liabilities and stockholders’ equity ............................ $1,449,251 $1,396,805 The accompanying notes are an integral part of these consolidated financial statements. 48