Maverick Tube CEO Discusses Growth in the Oil Tube Market (MVK)

| About: Maverick Tube (MVK)

Maverick Tube Corporation (MVK) is the largest US manufacturer of oil country tubular goods, tubing and casing products for oil and gas wells. Excerpt from The Wall Street Transcript's 4/10/06 interview with CEO C. Robert Bunch:

TWST: In what particular parts of the chain are you seeing more growth or more activity today?

Mr. Bunch: We are seeing again a significant increase in demand for what we call our premium alloy oil country tubular goods. This is a result of deeper and more complicated wells that are being drilled in the US and abroad. Deeper wells generally mean more severe underground conditions that require stronger, more corrosion resistant products. Additionally, we are seeing an increase in wells drilled in tighter formations. These wells require higher pressure completions.

Our coiled tubing business is growing quite rapidly through a combination of growth in our core products and the addition of new products that we've developed in conjunction with some of our oil company customers. That's a significant growth area for us. On the transmission side, we are seeing steady growth in the line pipe business. Line pipe is used generally to connect a wellhead to a gathering system or other end location, and so the demand for transmission pipe is increasing quite rapidly as well.