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## Letter to Our Stockholders 

2014 was an extraordinary year at Dril-Quip . The year began with business activity at an all-time high as we executed our strategic plans to respond to customers with innovative products, aggressive delivery schedules, and the quality customer service for which the Company is known, and ended with the most rapid and significant drop in oil prices in recent history. 

We were successful in maintaining market share with our core products while obtaining contracts for several field development projects that position us favorably in new markets. In 2014, we focused on setting new industry standards, improving our on- time delivery performance, and implementing Advanced Product Quality Planning tools to improve our processes and reduce non-conformances. I am proud to say that we have exceeded expectations for these initiatives. The net result is the Company continued to experience revenue growth for the 5th consecutive year. 

## Total stockholder return 

This comparison of the cumulative total stockholder return on Dril-Quip  common stock to the cumulative total return on the Standard & Poor’s 500 Stock Index and PHLX Oil Service Sector Index assumes $100.00 invested on December 31, 2009 and the reinvestment of all dividends. 

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