Investor Presentaiton
TMK... Inventory Normalization, Higher Efficiency ...
US OCTG inventories have reached the normalized
levels of 2014 as shipments outpace consumption
Despite months of inventory having reached 2014
levels, the monthly absolute inventory is meaningfully
below pre-crisis levels due to higher industry efficiency:
Design has standardized resulting in more obsolete
inventory
the
E&P investment has spilled over into
management of inventory: the amount of pipe on the
ground that was typically required to maintain a
certain rig level has decreased from previous cycles
Standardized diameters of OCTG piping
Increased shipment levels bring months-of-inventory
back to pre-downturn levels
Absolute Inventory, mln tonnes
Monthly Absolute Inventory
Months of Inventory
4,0
18
3,5
3,0
2,5
15
12
9
Months of Inventory
Chevron Permian
■ Total Weight per well:
492 NT
13 3/8"
XTO Bakken
■ Total Weight per well:
323 NT
9 5/8"
7"
9 5/8"
Cabot Northeast
■ Total Weight per well:
267 NT
'
20"
13 3/8"
9 5/8"
5 1/2"
Source: Company data
2 7/8"
4 1/2"
2 7/8"
5 1/2"
2 7/8"
26
26
10
1,0
1,5
15
Jan-09
2,0
Sep-09
May-10
Jan-11
Sep-11
Source: Preston Pipe & Tube Report
May-12
Jan-13
Sep-13-
May-14
Jan-15
Sep-15
May-16
Jan-17
Sep-17
May-18
0
3
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