Maverick Tube Corporation Reports Fourth Quarter and Fiscal 2005 Results

Maverick Tube Corporation (NYSE:MVK) announced today itsresults of operations for the quarter and year ended December 31,2005. The Company reported net income of $63.2 million, or $1.54 perdiluted share, for the fourth quarter of 2005. This represents anincrease of $24.7 million, or $0.64 per diluted share, from the fourthquarter of 2004, and an increase of $24.1 million, or $0.64 perdiluted share, from the third quarter of 2005. For the year, theCompany's net income was $172.3 million, or $4.02 per diluted share,below the prior year's level by $21.5 million, or $0.52 per dilutedshare. Net sales were $484.7 million for the fourth quarter and $1.8billion for the twelve months ended December 31, 2005, up from $361.3million and $1.3 billion for the quarter and year ended December 31,2004, respectively.

Sales of energy products recorded in the fourth quarter of 2005increased 2.5% sequentially to $409.7 million from $399.5 million inthe third quarter of 2005. This increase reflects higher energyproduct prices partially offset by lower volumes. Total energyproducts shipments decreased from about 300,000 tons in the thirdquarter to 286,000 tons in the fourth quarter of 2005. The decline wasprimarily attributable to an unusually large volume of line pipeproject shipments in the third quarter.

For the year ended December 31, 2005, sales of energy productsgrew 53.2% to a record $1.5 billion compared to sales of $954.4million for the prior year. This year-over-year increase was primarilydue to continued growth in the U.S., another record year in theCanadian energy market, seven months of net sales contribution fromTubos del Caribe S.A., along with growing revenues from our PrecisionTube and Texas Arai businesses.

Sales of electrical products recorded in the fourth quarter 2005were $75.0 million compared to $89.6 million in the third quarter2005. This 16.3% revenue decrease was primarily due to lower shipmentvolumes in the seasonally weaker fourth quarter.

C. Robert Bunch, the Company's Chairman, President and ChiefExecutive Officer, said, "We are very pleased with Maverick's fourthquarter performance. Activity levels continue to be strong in all ofour energy markets. A substantial portion of our sequential revenuegrowth came from Prudential, Texas Arai, and TuboCaribe, allacquisitions we've completed in the last five years. Precision Tube,our coiled tubing business unit acquired in 2002, continues to operateat capacity. Additionally, we've worked off our higher cost steelinventories, improving our consolidated gross margin to 26.6% for thequarter and setting the stage for what we expect will be a robust2006."

Mr. Bunch continued, "Looking forward, we expect drilling andworkover activity in 2006 to continue to increase in the markets weserve. Building on our excellent fourth quarter, we expect todemonstrate the benefits of actions taken in 2005 such as ouracquisition of TuboCaribe, the substantial increase in our premiumalloy OCTG capacity, our coiled tubing expansion and the consolidationof our electrical conduit manufacturing capacity. Steel costs havedeclined from their highs in early 2005. And, most importantly, weexpect the nimbleness and energy of our people unleashed by our newbusiness structure to continue propelling our operating performance.We believe we are very well positioned for 2006 and beyond."

Maverick Tube Corporation is a St. Louis, Missouri basedmanufacturer of tubular products in the energy industry forexploration, production, and transmission, as well as industrialtubing products (steel electrical conduit, HSS, standard pipe, pipepiling, and mechanical tubing) used in various applications.

This news release may contain forward-looking information that isbased on assumptions that are subject to numerous business risks, manyof which are beyond the control of the Company. There is no assurancethat such assumptions will prove to be accurate. Actual results maydiffer from these forward-looking statements due to numerous factors,including those described under "Risk Factors" and elsewhere inMaverick's Form 10-K for its year ended December 31, 2004.
Maverick Tube Corporation
Selected Consolidated Financial Data
For the Fourth Quarter and Twelve Months Ended December 31, 2005
(In thousands, except rig count and per share data)
(Unaudited)

Quarter Ended Twelve Months Ended
December 31, December 31,
2005 2004 2005 2004
-----------------------------------------------

Net sales $484,650 $361,268 $1,785,233 $1,287,573
Cost of goods sold 355,855 280,697 1,434,250 923,178
-----------------------------------------------
Gross profit 128,795 80,571 350,983 364,395

Selling, general and
administrative 25,780 20,159 83,025 68,232
Sales commissions 2,552 2,285 10,137 11,238
Impairment of
intangible assets 2,100 - 2,100 -
Trade case relief 121 (2,893) (679) (3,633)
-----------------------------------------------
Income from operations 98,242 61,020 256,400 288,558

Interest expense 3,744 2,812 14,222 9,795
-----------------------------------------------
Income from continuing
operations before
provision for income
taxes 94,498 58,208 242,178 278,763

Provision for income
taxes 31,113 21,313 77,529 105,101
-----------------------------------------------
Income from continuing
operations 63,385 36,895 164,649 173,662

Income (loss) from
operations of
discontinued
businesses (net of
tax) (154) 1,630 (3,570) 20,134
Gain on sale of HSS
business (net of tax) - - 11,201 -
-----------------------------------------------
Net income $63,231 $38,525 $172,280 $193,796
===============================================

Diluted earnings per
share
Income from continuing
operations $1.54 $0.86 $3.84 $4.06
Income (loss) from
discontinued
operations $0.00 $0.04 $0.18 $0.47
Net income $1.54 $0.90 $4.02 $4.54

Average shares deemed
outstanding 41,149,949 42,994,072 42,861,812 42,751,303
===============================================

Other Data:
Depreciation and
amortization $8,813 $7,135 $32,007 $26,756
Capital expenditures 30,792 15,415 84,577 34,465




December 31, December 31,
2005 2004
-------------------------
Balance Sheet Data:
Working capital $308,011 $471,083
Property, plant & equipment - net 307,289 211,534
Goodwill & intangibles 218,647 120,506
Total assets 1,230,262 1,002,437
Current maturities of long-term debt 187,902 3,298
Long-term revolving credit facility 25,483 54,660
Convertible debt 250,000 120,000
Other long-term debt (less current
maturities) 1,704 2,981
Stockholders' equity 566,855 595,664




Quarter Ended Twelve Months Ended
December 31, December 31,
2005 2004 2005 2004
---------------------------------------

Average U.S. rig count (1) 1,478 1,249 1,380 1,190
Average Canadian rig count (1) 576 420 458 369
Average U.S. & Canadian
workover rigs (1) 2,234 2,032 2,008 1,850
Latin America rig count (1) 313 306 316 290
International rig count (1) 929 862 908 836

(1) Source: Baker Hughes