july 2005 ipaa’s 9th annual oil & gas investment symposium london

July 2005

IPAA’s 9th Annual Oil & Gas Investment Symposium

London

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Presenting Management

Neil G. RussellSr. Vice President Business Development &

Sr. Vice President Premium Connections

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Forward Looking Statements

To the extent this presentation reflects our expectations about Hydril’s business or performance for any future period, we are relying on the safe harbor protections afforded by federal law. We caution you that Hydril’s business or performance in the future may differ materially from those expectations. Forward-looking statements should be weighed in the context of the many risks, issues, and events that could cause Hydril’s actual performance to be different from that contemplated in this presentation, including, but not limited to, the impact of changes in oil and natural gas prices and worldwide and domestic economic conditions on drilling activity and demand for and pricing of Hydril’s products, the impact of geo-political and other events affecting international markets and trade, Hydril’s ability to remain on the leading edge of technology in its products and maintain and increase its market share, the impact of international and domestic trade laws, the loss of or change to distribution methods of premium connections in the U.S. and Canada, overcapacity in the pressure control industry, high fixed costs that could affect the pricing of Hydril’s products, and the other risk factors discussed in our most recent Quarterly Report on Form 10-Q for the first quarter of 2005 filed with the Securities and Exchange Commission.

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Today’s Presentation

• Overview• Premium Connections• Pressure Control• Financials• Investment Premise

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Hydril Summary

Founded 1933

IPO September 2000

Stock price - 52-week range* US$28.50 - $64.58

Stock price - 30-day average* US$52.12

Market Cap* US$1.2 billion

Float 82.8%

NASDAQ Ticker HYDL

* As of 6/21/2005

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• Leader in our segments

– Premium Connections

– Pressure Control

• Deep formation and offshore drilling leverage

• Technical innovator

• Global presence

• Brand name recognition

• Financial stability

Overview

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Business Segments

Premium Connection

• Revenue US$184.8 million*

• End users: E&P companies

• Manufacturing service

• Low working capital

• International & domestic manufacturing

Pressure Control

• Revenue US$100.6 million*

• End users: drilling contractors

• Capital equipment

• Aftermarket parts

• Domestic manufacturing

* 2004

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Revenue Distribution

TTM*

*TTM as of 3/31/05

Segments Geographic

Premium Connections 66%

Pressure Control 34%

International 68%

United States 32%

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Today’s Presentation

• Overview• Premium Connections• Pressure Control• Financials• Investment Premise

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Premium Connections

• Hydril invention

• Proprietary designs

• 30 U.S. patents

• End users: E&P companies

• Largest integral casing market share and threading capacity

• Early / middle cycle

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Deep Formation Leverage

US$125,000

US$320,000

US$600,000

10,000’ 15,000’ 20,000’

Note: potential premium connection revenue per well

Premium Connections

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Market Share

Premium Connections

Note: full length threading only; excludes accessory threading, pipe, etc.; excludes Russia and China Sources: Spears & Associates, and management estimates

OthersHunting

VAM

Grant Prideco

Hydril

Hydril

VAM

Others

Tenaris

Kawasaki

United States Ex-United States

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Earnings Growth Opportunities

• International markets growing• U.S. demand is strong

– Expanded N. American capacity • New products:

– GB connections– Big Wedge– Other large diameter connections

Premium Connections

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Today’s Presentation

• Overview• Premium Connections• Pressure Control• Financials• Investment Premise

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Pressure Control

• Hydril invented annular blowout preventer (BOP)

• 53 U.S. patents• End users: drilling

contractors• “Brand name” drilling

equipment franchise• Middle / late cycle

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Business Model

Capital Equipment Aftermarket

Pressure Control

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Market Share

Capital Equipment Aftermarket

Pressure Control

Note: capital equipment served markets only; aftermarket pertains to Hydril aftermarket products onlySource: management estimates

HydrilNon-OEM

Hydril

National Oilwell Varco

Others

Cooper Cameron

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Deepwater Leverage

Platform/Jackup

Land

DeepwaterPressure Control

US$0.5 – 1.0 million US$2.0 – 4.0 million US$14.0 – 18.0 million

Note: potential capital equipment revenue per rig

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Capital Equipment Backlog

Pressure Control(US$ Millions)

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Earnings Growth Opportunities

• Large installed base drives aftermarket revenue

• Offshore rig upgrades and newbuilds

• New technologies and products

– Quik-Loq™ - high pressure, ram blowout preventer

– New generation of surface MUX controls

– Flowguard™ pulsation dampeners

Pressure Control

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Today’s Presentation

• Overview• Premium Connections• Pressure Control• Financials• Investment Premise

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Operating Results Consolidated Company

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Financial Summary

Q4 Q1

Revenue 2002

$241.5 2003

$212.0 2004

$285.4 2004

$86.5 2005

$78.8

OperatingIncome

Net Income

44.3

26.5

34.2

25.6

66.4

46.5

22.8

15.2

22.1

15.0EPS* 1.16 0.96* 1.89* 0.64 0.63

*Note: excluding one-time tax benefits

(US$ Millions, except per share data )

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Today’s Presentation

• Overview• Premium Connections• Pressure Control• Financials• Investment Premise

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Investment Premise

• Leader in our segments

– Premium Connections

– Pressure Control

• Deep formation and offshore drilling leverage

• Technical innovator

• Global presence

• Brand name recognition

• Financial stability

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P.O. Box 60458 Houston, Texas 77205-0458 Sue Nutt, Manager Investor Relations & Corporate Communications (281) 985-3532

www.hydril.com

NASDAQ: HYDL