8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): March 1, 2006

DRIL-QUIP, INC.

(Exact name of registrant as specified in its charter)

Delaware	001-13439	74-2162088
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

13550 Hempstead Highway Houston, Texas	77040
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (713) 939-7711

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On March 1, 2006, Dril-Quip, Inc. (“Dril-Quip”) reported full year 2005 and fourth quarter 2005 earnings. For additional information regarding Dril-Quip’s full year 2005 and fourth quarter 2005 earnings, please refer to Dril-Quip’s press release attached to this report as Exhibit 99.1 (the “Press Release”), which Press Release is incorporated by reference herein. The information in the Press Release is being furnished, not filed, pursuant to Item 2.02. Accordingly, the information in the Press Release will not be incorporated by reference into any registration statement filed by Dril-Quip under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

The following exhibit is filed as part of this report:

Exhibit No.	Description
99.1	Press Release issued March 1, 2006 regarding full year 2005 and fourth quarter 2005 earnings of Dril-Quip, Inc.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

DRIL-QUIP, INC.
By:	/s/ Gary D. Smith
	Gary D. Smith
	Co-Chairman and Co-Chief Executive Officer

Date: March 2, 2006

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EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release issued March 1, 2006 regarding full year 2005 and fourth quarter 2005 earnings of Dril-Quip, Inc.

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EX-99.1

Exhibit 99.1

Contact: Jerry M. Brooks, Chief Financial Officer, (713) 939-7711

DRIL-QUIP, INC. ANNOUNCES RESULTS FOR YEAR END 2005

HOUSTON, March 1, 2006 — Dril-Quip, Inc. (NYSE: DRQ) today announced net income of $11.7 million, or $0.63 per diluted share for the three months ended December 31, 2005, versus net income of $3.9 million, or $0.22 per diluted share for the fourth quarter of 2004. Total revenues increased approximately 66% to $94.9 million for the quarter ended December 31, 2005 from $57.1 million for the same period in 2004 as the Company continued to experience strong worldwide demand for its products and services. Operating income increased to $17.8 million in the fourth quarter of 2005 from $5.2 million in the fourth quarter of 2004. As a percentage of revenues, operating income increased to approximately 19% in 2005 from approximately 9% in 2004.

For the twelve months ended December 31, 2005, net income was $32.6 million, or $1.80 per diluted share, compared with net income of $12.5 million, or $0.72 per diluted share, for the same period in 2004. Revenues for the twelve months ended December 31, 2005 were $340.8 million, up approximately 54% when compared to revenues of $221.6 million for the same period last year. Operating income increased to $49.2 million for the twelve months ended December 31, 2005 from $18.3 million during the same period of 2004.

In addition, the Company announced that its backlog at December 31, 2005 was approximately $248 million, compared to its December 31, 2004 backlog of approximately $127 million. Based upon the increased number of shares outstanding resulting from the Company’s recent common stock offering, the Company expects its earnings per share for the quarter ending March 31, 2006 to approximate $0.55 to $0.65 per share, excluding any unusual or special charges.

Dril-Quip is a leading manufacturer of highly engineered offshore drilling and production equipment, which is well suited for use in deepwater, harsh environment and severe service applications.

Statements contained herein relating to future operations and financial results that are forward looking statements are based upon certain assumptions and analyses made by the management of the Company in light of its experience and perception of historical trends, current conditions, expected future developments and other factors. These statements are subject to risks beyond the Company’s control, including, but not limited to, the volatility of oil and natural gas prices and cyclicality of the oil and gas industry, the Company’s international operations, operating risks, and other factors detailed in the Company’s public filings with the Securities and Exchange Commission. Investors are cautioned that any such statements are not guarantees of future performance and actual outcomes may vary materially from those indicated.

Dril-Quip, Inc.

Comparative Consolidated Statements of Income

(in thousands, except per share amounts)

(Unaudited)

	Three months ended December 31,				Twelve months ended December 31,
	2004		2005		2004		2005
Revenues	$	57,065	$	94,885	$	221,586	$	340,829
Cost and expenses:
Cost of sales		37,963		60,964		153,433		229,849
Selling, general and administrative		9,267		11,191		32,749		40,916
Engineering and product development		4,615		4,903		17,090		20,867
		51,845		77,058		203,272		291,632
Operating income		5,220		17,827		18,314		49,197
Interest expense		271		464		1,100		1,787
Income before income taxes		4,949		17,363		17,214		47,410
Income tax provision		1,063		5,647		4,741		14,843
Net income	$	3,886	$	11,716	$	12,473	$	32,567
Diluted earnings per share	$	0.22	$	0.63	$	0.72	$	1.80
Weighted average shares – diluted		17,476		18,508		17,370		18,103
Depreciation and amortization	$	3,116	$	3,378	$	11,779	$	13,426
Capital expenditures	$	3,883	$	5,846	$	17,061	$	20,557