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Our stockholder rights plan could also make it more difficult for a third party to acquire, or could discourage a third party from acquiring, our company or a large block of our common stock. In addition, the Delaware General Corporation Law imposes restrictions on mergers and other business combinations between us and any holder of 15% or more of our outstanding common stock. 

## Item 1B. Unresolved Staff Comments 

None. 

## Item 2. Properties 

## Major Manufacturing Facilities 

<img src='content_image/253930.jpg'>

Dril-Quip has manufacturing facilities in Houston, Aberdeen, Singapore and Macae. The Houston facility at Eldridge produces in-house a majority of the Company’s forging and heat treatment requirements. 

## Sales, Service and Reconditioning Facilities 

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(1) All facilities are leased except Stavanger, Norway, which is owned. 

The Company also performs sales, service and reconditioning activities at its facilities in Houston, Aberdeen, Singapore and Macae. 

