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U. S. Steel Tubular Products and Butch Gilliam Enterprises Announce Joint Venture to Serve Permian Basin

PITTSBURGH, Dec. 3, 2012 /PRNewswire/ -- U. S. Steel Tubular Products, Inc., a subsidiary of United States Steel Corporation (NYSE: X), and Butch Gilliam Enterprises LLC of Midland, Texas, announced today the signing of a definitive agreement to form a joint venture to provide tubular services to the energy industry in the Permian Basin. 

The joint venture, Patriot Premium Threading Services, has operations located in the heart of the Permian Basin in Midland. 

The new state-of-the-art facility will be a comprehensive service provider licensed to thread U. S. Steel tubular products as well as to provide accessories, repair services, technical assistance and rig site services.  The facility's threading capability is 2-3/8" to 11-3/4" and it will be licensed to thread all of U. S. Steel Tubular Products' premium connections including the recently introduced USS-LIBERTY FJM™ premium connection.  USS-LIBERTY FJM™ is a premium flush connection designed for the clearance-critical applications in the Permian Basin.

"We are very excited to join with Butch Gilliam Enterprises to establish a production location in the Permian Basin to better serve our customers in this rapidly growing region," said Douglas R. Matthews, senior vice president – Tubular Operations for United States Steel.  "Butch Gilliam's extensive knowledge in this area combined with our capabilities to deliver premium energy tubulars is a great combination to service the growing needs of the energy market and our customers in this area." 

"We are proud and honored to partner with such a great American company and we look forward to combining our strengths to provide world-class service to our customers," said Butch Gilliam, president of Patriot Premium Threading Services.  "Joining with U. S. Steel Tubular Products allows us to offer the solutions necessary to meet the growing requirements of this market."

Day-to-day operations management will be by Butch Gilliam and operations are ramping-up in December. Equity participation will be 50 percent for each partner. 

U. S. Steel Tubular Products, Inc., a subsidiary of United States Steel Corporation, is the largest fully integrated tubular products manufacturer in North America, with total annual production capability of 2.8 million net tons.  Energy industry customers utilize U. S. Steel Tubular Products' casing, tubing, line pipe and couplings to help them locate, retrieve, transport and refine the oil and natural gas products that fuel the world.

Butch Gilliam Enterprises is a privately owned Texas corporation created by Butch Gilliam and his partners for the purpose of offering premium threading services, field services and accessories to the Permian Basin. 

Future performance and financial results of Patriot Premium Threading Services will be subject to market and other factors that cannot be identified at this time.

For more information about U. S. Steel and U. S. Steel Tubular Products, visit www.ussteel.com.

SOURCE United States Steel Corporation

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