Dril-Quip (DRQ) Scores Larger Than Expected Share of Shell Malikai TLP Contract

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This morning Dril-Quip, Inc. (NYSE: DRQ) announced it has been awarded a contract to supply drilling and production equipment services to Sabah Shell Petroleum Company Limited for the Shell Malikai TLP project located offshore Malaysia in approximately 1,800 feet of water.

Commenting on the news, analyst Tom Curran of Wells Fargo said "[We were] surprised with a much larger share of its total accessible market (TAM). Shell awarded DRQ not only the subsea wellheads, but also the tensioner systems, risers, production trees, injection trees and tieback connectors."

Curran estimates revenue of $100 to 130MM.

"That compares to an estimated TAM on Malikai of $135-170MM, and our far too conservative assumption that DRQ would claim $35MM of it," added the analyst.

Wells Fargo has an Outperform rating on Dril-Quip.

For an analyst ratings summary and ratings history on Dril-Quip (NYSE: DRQ) click here. For more ratings news on Dril-Quip click here.

Shares of Dril-Quip closed at $83.37 yesterday, with a 52 week range of $57.27-$85.55.

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