Maverick Tube Corporation Reports Fourth Quarter and Fiscal 2005 Results

Maverick Tube Corporation (NYSE:MVK) announced today its
results of operations for the quarter and year ended December 31,
2005. The Company reported net income of $63.2 million, or $1.54 per
diluted share, for the fourth quarter of 2005. This represents an
increase of $24.7 million, or $0.64 per diluted share, from the fourth
quarter of 2004, and an increase of $24.1 million, or $0.64 per
diluted share, from the third quarter of 2005. For the year, the
Company'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 diluted
share. Net sales were $484.7 million for the fourth quarter and $1.8
billion for the twelve months ended December 31, 2005, up from $361.3
million and $1.3 billion for the quarter and year ended December 31,
2004, respectively.
   Sales of energy products recorded in the fourth quarter of 2005
increased 2.5% sequentially to $409.7 million from $399.5 million in
the third quarter of 2005. This increase reflects higher energy
product prices partially offset by lower volumes. Total energy
products shipments decreased from about 300,000 tons in the third
quarter to 286,000 tons in the fourth quarter of 2005. The decline was
primarily attributable to an unusually large volume of line pipe
project shipments in the third quarter.
   For the year ended December 31, 2005, sales of energy products
grew 53.2% to a record $1.5 billion compared to sales of $954.4
million for the prior year. This year-over-year increase was primarily
due to continued growth in the U.S., another record year in the
Canadian energy market, seven months of net sales contribution from
Tubos del Caribe S.A., along with growing revenues from our Precision
Tube and Texas Arai businesses.
   Sales of electrical products recorded in the fourth quarter 2005
were $75.0 million compared to $89.6 million in the third quarter
2005. This 16.3% revenue decrease was primarily due to lower shipment
volumes in the seasonally weaker fourth quarter.
   C. Robert Bunch, the Company's Chairman, President and Chief
Executive Officer, said, "We are very pleased with Maverick's fourth
quarter performance. Activity levels continue to be strong in all of
our energy markets. A substantial portion of our sequential revenue
growth came from Prudential, Texas Arai, and TuboCaribe, all
acquisitions we've completed in the last five years. Precision Tube,
our coiled tubing business unit acquired in 2002, continues to operate
at capacity. Additionally, we've worked off our higher cost steel
inventories, improving our consolidated gross margin to 26.6% for the
quarter and setting the stage for what we expect will be a robust
2006."
   Mr. Bunch continued, "Looking forward, we expect drilling and
workover activity in 2006 to continue to increase in the markets we
serve. Building on our excellent fourth quarter, we expect to
demonstrate the benefits of actions taken in 2005 such as our
acquisition of TuboCaribe, the substantial increase in our premium
alloy OCTG capacity, our coiled tubing expansion and the consolidation
of our electrical conduit manufacturing capacity. Steel costs have
declined from their highs in early 2005. And, most importantly, we
expect the nimbleness and energy of our people unleashed by our new
business 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 based
manufacturer of tubular products in the energy industry for
exploration, production, and transmission, as well as industrial
tubing products (steel electrical conduit, HSS, standard pipe, pipe
piling, and mechanical tubing) used in various applications.

   This news release may contain forward-looking information that is
based on assumptions that are subject to numerous business risks, many
of which are beyond the control of the Company. There is no assurance
that such assumptions will prove to be accurate. Actual results may
differ from these forward-looking statements due to numerous factors,
including those described under "Risk Factors" and elsewhere in
Maverick's Form 10-K for its year ended December 31, 2004.
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                       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
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