Section 1 Conflict Minerals Disclosure
Item 1.01 Conflict Minerals Disclosure and Report
Disclosure Requirement
This disclosure for the year ended
December 31, 2022 is presented to comply with Rule 13p-1 under the Securities Exchange Act of 1934 (the Rule). The Rule was adopted by the Securities and Exchange Commission (SEC)
to implement reporting and disclosure requirements related to Conflict Minerals (defined below) as directed by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Conflict Minerals are defined as cassiterite, columbite-tantalite,
gold, wolframite and their derivatives, which are limited to tin, tantalum and tungsten (collectively, the Conflict Minerals). The Rule imposes certain reporting obligations on SEC reporting companies whose manufactured products contain
Conflict Minerals that are necessary to the functionality or production of their products. If a company can establish that its necessary Conflict Minerals originated from sources other than the Democratic Republic of the Congo or an adjoining
country (the Covered Countries) or from recycled or scrap sources, or if the company has no reason to believe that its necessary Conflict Minerals may have originated in the Covered Countries or reasonably believes that its necessary
Conflict Minerals did come from recycled or scrap sources, it must disclose that determination, submitting a Form SD that includes a description of the Reasonable Country of Origin Inquiry it undertook in making its determination and the results of
that inquiry.
The Company
This disclosure has been
prepared by management of Dril-Quip, Inc. (the Company). Unless otherwise indicated, the terms Company, Dril-Quip, we, us and our refer to Dril-Quip, Inc., together with its
subsidiaries. The information in this disclosure includes the activities of all subsidiaries that are required to be consolidated.
The Company designs,
manufactures, sells and services highly engineered drilling and production equipment for both offshore and onshore applications. The Companys principal products consist of subsea and surface wellheads, subsea and surface production trees,
mudline hanger systems, specialty connectors and associated pipe, drilling and production riser systems, liner hangers, wellhead connectors, diverters and safety valves. Dril-Quips products are used by major integrated, large independent and
foreign national oil and gas companies and drilling contractors throughout the world. Dril-Quip also provides technical advisory assistance on an as-requested basis during installation of its products, as well
as rework and reconditioning services for customer-owned Dril-Quip products. In addition, Dril-Quips customers may rent or purchase running tools from the Company for use in the installation and retrieval of the Companys products.
Conflict Minerals Disclosure
Reasonable Country of
Origin Inquiry
Pursuant to the Rule, we conducted, in good faith, a reasonable country of origin inquiry concerning any Conflict Minerals that were
necessary to the functionality or production of products manufactured, or contracted to be manufactured, for sale by Dril-Quip during the year ended December 31, 2022. As part of our analysis, we assessed our manufactured products to identify
Conflict Minerals scope and risk. As a result of our analysis, we identified the following products containing Conflict Minerals:
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Pipe thermal coating spray, which contains tungsten; |
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Welding wire, which contains tantalum and tin; and |
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Control system electrical circuit connections, which contain gold. |
Our analysis concluded that these Conflict Minerals are contained in components of our products manufactured by and purchased from our suppliers. Our analysis
further determined that no other Conflict Mineral or Conflict Mineral derivative is contained as a necessary element to the functionality or production of any product manufactured for sale by the Company.