DRQ Overview

Merger Proposal: Dril-Quip's Board of Directors recommends stockholders vote in favor of the merger with Innovex Downhole Solutions, highlighting strategic benefits such as market expansion, cost synergies of approximately $30 million annually, and improved earnings stability.

Stockholder Information: Stockholders are encouraged to review the filed proxy statement/prospectus for detailed information regarding the merger, which has been declared effective by the SEC, and can access relevant documents through the SEC website or Dril-Quip’s official site.

Merger Proposal: Dril-Quip's Board of Directors unanimously recommends stockholders vote "FOR" the merger with Innovex Downhole Solutions, highlighting significant benefits such as enhanced market presence, cost synergies of approximately $30 million annually, and improved earnings stability.

Stockholder Information: Stockholders are encouraged to review the filed proxy statement/prospectus for detailed information regarding the merger, which is set for a special meeting on September 5, 2024.

Energy Sector Performance: Energy stocks saw a decline, with the NYSE Energy Sector Index down 0.8% and crude oil prices dropping; US crude oil stocks fell by 100,000 barrels, while natural gas futures rose by 1.4%.

Corporate Developments: Dominion Energy received a 20-year license extension for its North Anna Power Station, TotalEnergies faced a $48 million fine, and Texas Pacific Land completed acquisitions in the Permian Basin, boosting its shares by 1.6%.

Energy Market Trends: Energy stocks are experiencing a decline, with the NYSE Energy Sector Index and the Energy Select Sector SPDR Fund both down 0.9%. Crude oil prices are also falling, while natural gas futures are rising.

Corporate Developments: TotalEnergies faces a $48 million fine, Dril-Quip disputes a merger report, and Texas Pacific Land has made acquisitions in the Permian Basin, resulting in a slight increase in its stock price.

Dril-Quip's Response to Glass Lewis Report: Dril-Quip, Inc. strongly disagrees with the recommendations made by Glass Lewis regarding its proposed merger with Innovex Downhole Solutions, arguing that the report is misguided and fails to acknowledge the strategic benefits and financial rationale of the transaction.

Merger Benefits and Stockholder Engagement: The Board of Directors emphasizes that the merger will enhance long-term growth and resilience for stockholders, while also highlighting their commitment to corporate governance by withdrawing certain proposals based on stockholder feedback.

Dril-Quip's Response to Glass Lewis: Dril-Quip strongly disagrees with the report issued by Glass Lewis, which they believe contains unsubstantiated conclusions regarding their proposed merger with Innovex. The Dril-Quip Board unanimously recommends that stockholders vote "FOR" the transaction, citing significant strategic and financial benefits.

Merger Details and Stockholder Engagement: The proposed merger follows a comprehensive assessment of alternatives and aims to enhance Dril-Quip's market presence and financial stability. In response to stockholder feedback, Dril-Quip has withdrawn certain proposals related to governance, demonstrating their commitment to strong corporate governance practices.