AND ACCOUNTS BUILDING MOMENTUM FROM …

1 2017 ANNUAL REPORT. AND ACCOUNTS BUILDING . MOMENTUM FROM. NEW TECHNOLOGY. HUNTING IS A SUPPLIER TO THE UPSTREAM CONTENTS. OIL AND GAS INDUSTRY. STRATEGIC REPORT. 1 Summary of the year OUR STRATEGY IS TO MANUFACTURE 2 Hunting at a glance PRODUCTS AND DELIVER SERVICES TO OUR 4 Chairman's statement 6 Chief Executive's statement CUSTOMERS WHEREVER IN THE WORLD 8 Market review THEY ARE OPERATING. 10 Key performance indicators 12 Group review HUNTING'S PRODUCT OFFERING EXTENDS 16 Outlook 20 Segmental review ACROSS THE LIFE CYCLE OF AN OIL AND 30 Our business strategy GAS WELL, AND THIS FOCUS ALLOWS US 32 Our business model TO CREATE, DISTRIBUTE AND SUSTAIN 47 Risk management VALUE FOR OUR SHAREHOLDERS. CORPORATE GOVERNANCE. 56 Board of Directors HUNTING IS QUOTED ON THE LONDON 58 Corporate governance report STOCK EXCHANGE AND IS A CONSTITUENT 63 Directors' report 64 Nomination committee report OF THE FTSE 250 INDEX.

2 66 Audit committee report 71 Remuneration committee report 73 Directors' remuneration policy 83 Annual report on remuneration FINANCIAL STATEMENTS. 93 Independent auditors' report 100 Consolidated income statement 101 Consolidated statement of comprehensive income 102 Consolidated balance sheet 103 Consolidated statement of changes in equity 104 Consolidated statement of cash flows 105 Notes to the consolidated financial statements 144 Company balance sheet 145 Company statement of changes in equity 146 Company statement of cash flows 147 Notes to the Company financial statements OTHER INFORMATION. 153 Non-GAAP measures 158 Financial record 159 Shareholder and statutory information 162 Glossary 164 Professional advisers SUMMARY OF THE YEAR. S T R AT E G I C R E P O R T. MARKET HIGHLIGHTS FINANCIAL HIGHLIGHTS. AVERAGE WTI CRUDE GLOBAL DRILLING AND REVENUE UNDERLYING PROFIT (LOSS).

3 OIL PRICE PRODUCTION EXPENDITURE FROM OPERATIONS*. $ per barrel $ $ $ 2016: $ per barrel 2016: $ 2016: $ 2016: $( )m AVERAGE GLOBAL ONSHORE AVERAGE GLOBAL offshore NET CASH (DEBT) UNDERLYING DILUTED. RIG COUNT RIG COUNT EARNINGS (LOSS) PER SHARE. 1,812 201 $ cents CO R P O R AT E G OV ER N A N CE. 2016: 1,348 2016: 220 2016: $( )m 2016: ( ) cents Source: Spears & Associates/Bloomberg * Non-GAAP measure ( NGM ). (see pages 153 to 157). OPERATIONAL AND CORPORATE FINANCIAL HIGHLIGHTS. HIGHLIGHTS. Strong operational and financial performance Revenue increases driven by improving industry spend FIN A N CI A L S TAT E M EN T S. by Hunting Titan in the year. and rig count in the US onshore market. Units of production exceeding 2014 levels. Total revenue of $ , increasing by 59% in the year. Strong sales of H-1 Perforating System. Hunting Titan segment revenue increased 115% to $ Utilisation of production capacity in US, Canada, China and Mexico to meet demand.

4 Underlying EBITDA of $ (2016 $( )m loss). Recommissioning of Oklahoma City manufacturing facility Underlying EBITDA margin of 8% (2016 (11)%). in Q1 2017. New distribution centre at Pleasanton, Texas, opened to Improving underlying Gross Margin to 24% (2016 11%). address new activity in the Eagle Ford shale basin. Filing of 13 new patents during the year, with one registered. Return to underlying profitability, driven by performance of Hunting Titan. Closure of Cape Town, South Africa, manufacturing Underlying profit from operations $ (2016 $( )m loss). facility commenced. All segments reported year-on-year improvements. OT H ER INF O R M AT I O N. $ charge recorded, reflecting an impairment to property, Reported loss from operations $( )m (2016 $( )m). plant and equipment and other closure costs. Sales presence in-country to be retained to support new Underlying profit before tax of $ business opportunities.

5 (2016 $( )m loss). Restructuring and cost containment initiatives continued Underlying Diluted Earnings Per Share of cents throughout the year. (2016 ( ) cents loss). Closure of five operating facilities in the Netherlands, Singapore, South Africa, UK and US. Strong cash generation in the year, with the Group ending Closure of five distribution centres. the year with net cash of $ (2016 $ net debt). Net tax refunds of $ received in the year (2016 $ ). Capital investment controls remain in place. $ refund of surplus received from UK pension scheme Capital investment in the year $ (2016 $ ). (2016 $nil). Senior leadership changes completed in the year. Lifting of suspension period bank covenants with removal Promotion of Jim Johnson to Chief Executive in September. of financial restrictions completed in January 2018. Appointment of Jay Glick as Chairman, also in September.

6 Underlying results for the year as reported under IFRS adjusted for the amortisation of acquired intangible assets and exceptional items. Reported results for the year under IFRS. 01 HUNTING PLC. 2017 ANNUAL REPORT AND ACCOUNTS . HUNTING AT A GLANCE. GROUP OVERVIEW SEGMENTAL REVENUE. OPERATING SITES DISTRIBUTION CENTRES SPLIT OF EXTERNAL REVENUE BY SEGMENT. 35 21 1 Hunting Titan 2 US 43%. 28%. 5 Asia Pacific 6 Middle East, Africa and Other 12%. 2%. (2016: 40) (2016: 25). 3 Canada 4 Europe DIVISIONS 4%. 11%. 7 Exploration and Production <1%. COUNTRIES OF OPERATION PATENTS 5 6 7. 12 440. (2016: 13) (2016: 428) 4. EMPLOYEES (YEAR END) MANUFACTURING REJECT RATE. 2,610 3. (2016: 2,107) (2016: ). 2. 1. WHERE WE OPERATE. Conventional oil and gas basin Unconventional oil and gas basin Key Operating Locations OUR OPERATING FACILITIES NEED TO BE CLOSE TO OUR CUSTOMERS AND ARE THEREFORE BASED IN OR NEAR THE MAIN OIL AND GAS.

7 PRODUCING REGIONS. 02 HUNTING PLC. 2017 ANNUAL REPORT AND ACCOUNTS . S T R AT E G I C R E P O R T. INVESTMENT HIGHLIGHTS. Robust long-term fundamentals for oil and gas Strategic focus on the wellbore Strong proprietary technologies and diverse product range World class manufacturing facilities located close to our customers Proven track record of manufacturing excellence and reliability CO R P O R AT E G OV ER N A N CE. Experienced core management team Focused on efficiency, cost control and cash generation Strong reputation with our customer base for delivering quality FIN A N CI A L S TAT E M EN T S. OUR PRODUCTS AND SERVICES OUR BUSINESS RELATIONSHIPS. OIL COUNTRY TUBULAR GOODS Hunting generates value through the manufacture of products, provision of related The Group owns proprietary connection technology services and supply of rental equipment to the upstream energy sector enabling including the SEAL-LOCK TM and WEDGE-LOCK TM the extraction of oil and gas.

8 Premium connections. The Group manufactures couplings, accessories and applies premium Our strategic focus is on the manufacture of products utilised in the wellbore. threads to pipe for its customers throughout its global facilities. Oil and gas extraction is a large sector of the economy and requires a diverse range of products and services. PERFORATING SYSTEMS The nature of the sector results in relationships with business partners who Hunting manufactures perforating guns, energetic can frequently be customers, suppliers and competitors at different points in the charges and instrumentation used in well value chain. completion activities. Products are manufactured at nine global facilities and sold through a network OT H ER INF O R M AT I O N. of distribution points in Canada, China, Indonesia, UK, US and UAE. ADVANCED MANUFACTURING GROUP. ( AMG ). Advanced Manufacturing includes precision Customers machining and electronics manufacturing, both utilised in MWD/LWD tools.

9 A range of non-oil and gas products are also provided for the power generation, aviation, military and space sectors. DRILLING TOOLS. Hunting's drilling tools business provides mud motor rental services for operators in the onshore oil and gas basins of the US. Hunting INTERVENTION TOOLS. The Group manufactures a range of tools Competitors including Thru-Tubing, Slickline and Wireline Suppliers tools and Pressure Control Equipment used for intervention activities. SUBSEA. Hunting's Subsea business manufactures hydraulic couplings, valves and accessories for application O il a n le d g a s ex t r a c t i o n c yc to deep water drilling activities. 03 HUNTING PLC. 2017 ANNUAL REPORT AND ACCOUNTS . CHAIRMAN'S STATEMENT. WE REMAIN CONFIDENT IN THE LONG- TERM FUNDAMENTALS OF THE INDUSTRY. AND CONTINUE TO POSITION THE. COMPANY FOR SUCCESS IN THIS DYNAMIC. ENVIRONMENT.

10 Introduction I am delighted to have the opportunity to present our Annual Report, following my appointment as Chairman in September 2017. 2017 remained a year of challenge for Hunting, as the Company's core energy markets showed early signs of recovering from a three-year downturn, driven in large part by the US onshore shale plays, and in particular, the Permian basin. This has led to increased revenue and a return to underlying profit for the Group in the year. This is a major milestone for the Company, however, the Board continues to believe that a full market recovery, including improvements to international and offshore drilling, will be a longer-term process. Fundamentals of oil supply and demand remain delicately balanced, limiting the upper range of oil prices at levels that present significant challenges to field economics offshore , and supply volatility that pose downside risks to prices JOHN F.