Focused. On expertise, efficiency, safety, service,
quality and technology.

2018
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In 2018, we leveraged our pipe, valve and fitting (PVF) expertise to improve our customers’ supply chain and improve efficiency, while maintaining our best-in-class commitment to safety. We distinguished ourselves with excellent customer service backed by our unmatched quality assurance program and e-commerce solutions. These priorities drive our long-term strategy and fuel our objectives for profitable growth and increased shareholder value. We are MRC Global, and we are focused.

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Expertise. Our employees bring indispensable capabilities that our customers value. Our customers rely on our product and application knowledge, global supply chain expertise and ability to mobilize 24/7 to support their operations.

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Efficiency. We bring value to our customers because we help them be more efficient. By relying on MRC Global to manage their PVF supply chain, our customers can focus on their operations.

Safety. We share our customers’ commitment to safety. We are proud of this deeply embedded part of our culture. We promote a safe workplace by providing ongoing training and resources.

Service. Our people are focused on serving customer needs, wherever, whenever, whatever it takes. We know customers count on us to help them keep their critical systems running, and they know we will deliver.

Quality. MRC Global sources trustworthy manufacturers to consistently provide high quality products for our customers. We perform on-site audits to thoroughly assess their processes, facilities and products so our customers can stay focused on their projects.

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Technology. MRC Global continually invests in tools and technologies that allow us to seamlessly connect with customers. Our versatility and flexibility reduces costs for our customers, improves efficiencies for both parties and strengthens our relationships.

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Revenue Generated
through E-Commerce($ in millions)

2015
$685
2016
$694
2017
$885
2018
$928

Focused. On growth, market position, strategy and results.
MRC Global is focused on serving customers. We believe this is exactly the same thing as being focused on shareholders. By creating value for our customers we are able to grow profitably in the most opportune geographies, deploy our capital to support our strategies, and get returns for our shareholders.

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Growth

New Houston
Operations Complex

Supporting Growth &
Operational Efficiencies

In 2018 we officially opened our new state-of-the-art Houston Operations Complex in La Porte, TX. This facility combines the resources and inventory of four previous service locations and supports major refining and petrochemical companies along the U.S. Gulf Coast.

Regional Distribution
Center (RDC)

415,000 Square Feet

This flagship distribution center boasts innovative safety and efficiency upgrades such as a three-story mezzanine and conveyor system, stainless steel and specialty alloy indoor storage, battery operated forklifts with high-efficiency recharging stations and forklifts designed to accommodate the 32-foot high rise racking safely.

Valve & Engineering
Center (VEC)

40,000 Square Feet

Located inside the distribution center, this 11-lift shop can handle pneumatic, hydraulic or electric actuation on valves with up to a 42-inch diameter and weighing up to 35 tons. In 2019, MRC Global will be opening a new 127,000-square-foot Valve Modification Center at a new building within this complex.

Pipe Yard

10 Acres

The complex includes a 10-acre paved pipeyard to fill day-to-day needs, and is supported by a nearby 27-acre third party yard dedicated specifically to MRC Global. Material from this third party yard arrives at the RDC daily.

Training Center &
Office Space

78,000 Square Feet

This is the company’s largest PVF facility and houses more than 350 employees at the complex.

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Market Position

We strive to capture and continually renew our contracts with the industry’s largest and best, most committed and most active customers. More than half of our sales come from our top 25 customers, who increasingly count on us for product expertise and integrated supply solutions.

2018 New and Renewed
Customer Contracts
Anadarko
Valero
South Jersey Gas
Enterprise Products
Pioneer Natural Resources
Dominion
Marathon Petroleum
BP (downstream)
TransCanada
CNRL
Duke
DCP Midstream
Southern Co Gas

Strategy

Every decision we make strengthens our business and builds shareholder value. These are the pillars that give MRC Global enduring stability in all market cycles.

Grow Market Share
Maximize Profitability
Maximize Working
Capital Efficiency
Optimize Capital Structure

Strategic Capital
Decisions Support Growth

MRC Global continues to strengthen and build an already solid balance sheet through prudent financial strategies and unwavering discipline, giving us the resources we need to fund our initiatives for profitable growth.

Effectively Positioned the Balance
Sheet
  • Advantageous debt agreements with favorable terms, low interest rates and maturities 2022+
  • Liquidity of $492 million – sufficient to support the business and capital needs
  • Net leverage decreased to 2.3x in 2018 from 2.7x in 2017
  • 1Q 2018 – entered into a 5-year interest rate swap fixing
    $250 million notional on the Term Loan at 5.71%
  • 2Q 2018 – repriced Term Loan lowering interest rate 50bps
For Capital Deployment Opportunities
  • Organic growth initiatives - Investments to drive share gains and efficiencies
  • Share repurchases of
    $300 million:
    • $75 million of shares repurchased in 4Q 2018
    • $100 million authorization completed in 2Q 2018
    • $125 million authorization completed in 1Q 2017
  • Debt repayment of more than $1 billion in 2015 and 2016

Results

In 2018, MRC Global achieved its second straight year of solid incremental growth. We grew revenue outpacing recovering markets while controlling costs to improve our profitability.

2018 Results

Revenue

$4,172 Million

Net Income Attributable to Common Stockholders

$50 Million

Adjusted EBITDA (1)

$280 Million

EPS - Diluted

$0.54

Working Capital

$896 Million

Total Assets

$2,434 Million

Revenue ($ in millions)

Net Income (Loss) Attributable to Common Stockholders ($ in millions)

Adjusted
EBITDA(1)($ in millions)

(1) Refer to the Company’s Annual Report on Form 10-K for reconciliation

Revenue by Geography

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Revenue by Industry Sector

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Revenue by Product Line

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