This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
Dril-Quip designs and manufactures specialized subsea wellhead systems, surface equipment, and related components specifically for offshore oil and gas drilling and production. Its engineered products, such as its VXTe system, are marketed to reduce the carbon footprint of drilling operations by improving efficiency, but their exclusive application is to enable and extend the life of fossil fuel extraction. The company’s core business is providing critical, high-reliability equipment to upstream offshore operators, with no material revenue from non-fossil fuel activities.
The company has been involved in litigation concerning the alleged misappropriation of trade secrets from a competitor, FMC Technologies, for use in its offshore equipment designs. A 2024 ruling by the Texas Fourteenth Court of Appeals found in Dril-Quip's favor, overturning a prior jury verdict. This legal history underscores the competitive and proprietary nature of its fossil fuel services technology. In September 2024, Dril-Quip completed a merger with Innovex Downhole Solutions to form Innovex International, consolidating its position as a specialized equipment provider for the offshore energy sector.
Dril-Quip designs, manufactures, and services highly engineered drilling and production equipment for the upstream oil and gas sector. Its core product portfolio includes subsea and surface wellheads, production trees, and associated control systems essential for offshore and onshore hydrocarbon extraction. The company's business is entirely dependent on fossil fuel exploration and production activity.
Following its 2024 merger with Innovex Downhole Solutions, the combined entity provides a comprehensive suite of upstream technologies, from drilling to completion. This strategic consolidation underscores a commitment to serving the fossil fuel industry's need for advanced extraction equipment. There is no evidence of a strategic pivot away from fossil fuels or a material revenue stream from renewable energy.
Dril-Quip designs, manufactures, and sells highly engineered drilling and production equipment for the offshore oil and gas industry. Its product portfolio includes subsea wellheads, production trees, and safety systems critical for deepwater exploration and production. This business model is intrinsically linked to the upstream and midstream segments of the fossil fuel value chain.
The company was the subject of a significant trade secrets lawsuit brought by competitor FMC Technologies. A 2023 appellate opinion details allegations that a former FMC employee communicated trade secrets to Dril-Quip, which were then used in Dril-Quip's operations. While the court found insufficient evidence for some claims, the litigation underscores the competitive, proprietary nature of the offshore equipment sector. Dril-Quip's products enable and depend on continued offshore fossil fuel extraction.
Research Sources
13 organizations
Related Exclusions
Wondering what we do invest in?
The Naughty List
A digest of changes to our exclusion list — new additions, removals, and the evidence behind them. We review the list continuously as new evidence surfaces.
Companies appear on our exclusion list based on our investment judgment — not because they've done anything illegal. This is a difference of values and opinion, not an accusation of wrongdoing. Exclusion does not constitute a recommendation against investing in any company, and absence from the list does not constitute a recommendation to invest.
This information is provided for educational and transparency purposes only and should not be relied upon as investment advice. Data is drawn from independent watchdogs, NGOs, government registries, and Ethical Capital's ongoing research — see Research Sources for the full list.
Ethical Capital LLC is a state-registered investment adviser in Utah (CRD #316032). Registration does not imply a certain level of skill or training.