Financial Performance - First quarter 2025 total revenue was $157 million, a 17% sequential increase and a 4% year-over-year increase[3] - Adjusted EBITDA for the first quarter reached $32.3 million, up 41% sequentially from $22.8 million[3] - Revenues for the three months ended March 31, 2025, were $157,140,000, an increase of 16.8% compared to $134,504,000 for the previous quarter[29] - Gross profit for the same period was $42,906,000, representing a gross margin of 27.3%[29] - Adjusted net income for the three months ended March 31, 2025, was $14,336,000, significantly higher than $3,889,000 in the previous quarter[33] - Adjusted net income per share increased to $0.11 for the three months ended March 31, 2025, compared to $0.03 in the previous quarter[33] - Revenues for the three months ended March 31, 2025, totaled $157,140,000, representing an increase from $150,972,000 in the same period of 2024[34] - Adjusted EBITDA for the three months ended March 31, 2025, was $32,267,000, with an adjusted EBITDA margin of 20.5%[34] - Net income before taxes and discontinued operations for the three months ended March 31, 2025, was $5,086,000, compared to $1,295,000 in the same period of 2024[35] - Total Adjusted Free Cash Flow for the three months ended March 31, 2025, was $4,241,000, a significant improvement from a negative $29,617,000 in the same period of 2024[36] - Adjusted EBIT for the twelve months ended March 31, 2025, was $65,902,000, reflecting a significant increase from previous periods[42] Cash Flow and Liquidity - Net cash provided by operating activities was $3.9 million, with free cash flow from the base business at $15.4 million[5] - Liquidity at the end of the first quarter was $208 million, improving to $220 million by April 28, 2025[19] - Net cash provided by operating activities for the three months ended March 31, 2025, was $3,935,000, compared to $5,635,000 in the previous quarter[31] - Cash and cash equivalents increased to $41,000,000 from $36,987,000 in the previous quarter[30] Capital Expenditures and Assets - Capital expenditures totaled $18 million, including $11.2 million for the Arkansas bromine facility[5] - Total current assets rose to $291,054,000 as of March 31, 2025, up from $269,628,000 at the end of the previous quarter[30] - Consolidated total assets increased to $614,085,000 as of March 31, 2025, up from $491,325,000 a year earlier[42] Debt and Leverage - The company reported a net leverage ratio of 1.5X as of March 31, 2025[20] - Net debt as of March 31, 2025, was $139,095,000, a decrease from $142,709,000 as of December 31, 2024[38] - The net leverage ratio as of March 31, 2025, was 1.5, indicating the company's ability to manage its debt relative to its adjusted EBITDA[40] Future Projections - The company expects first half 2025 Adjusted EBITDA to be between $57 million and $65 million, up from previous guidance of $55 million to $65 million[6] - Projected revenues for the first half of 2025 are estimated to be between $315,000,000 and $345,000,000, compared to $322,907,000 for the first half of 2024[44] - Adjusted EBITDA for the projected first half of 2025 is expected to range from $57,000,000 to $65,000,000[44] - Adjusted net income before taxes and discontinued operations for the first half of 2025 is projected to be between $24,000,000 and $35,000,000[44] - Interest expense for the first half of 2024 was $12,137,000, with a projected decrease to between $9,000,000 and $10,000,000 for the first half of 2025[44] Operational Strategy - The company plans to continue focusing on operational efficiency and cost management to enhance profitability in future quarters[32] - The company is exploring potential joint ventures for lithium and bromine extraction, with uncertainties regarding successful negotiations and economic viability[46] Regulatory and Market Conditions - The Arkansas Oil and Gas Commission approved the expansion of the Evergreen Unit for bromine and potential lithium extraction[17] - Forward-looking statements indicate potential risks related to economic conditions and regulatory changes that may impact future performance[45] - The company is positioned to benefit from the growth of Eos Energy Enterprises' battery production, enhancing electrolyte sales[16]

Financial Performance - TETRA Technologies reported a record first-quarter Adjusted EBITDA of $32.3 million, a 41% increase sequentially and year-over-year, driven by strong performance in Completion Fluids and Products [2][3] - Total revenue for the first quarter was $157 million, reflecting a 17% sequential increase and a 4% increase compared to the previous year [2][8] - Net income before taxes and discontinued operations was $5.1 million, down from $7.4 million in the prior quarter due to unrealized mark-to-market gains [8] Segment Performance - Completion Fluids & Products generated revenue of $93 million, with adjusted EBITDA margins increasing to 35.7% from 27.3% in the previous quarter, supported by stronger deepwater activity [3][9] - Water & Flowback Services experienced a 2% decline in revenue sequentially, but adjusted EBITDA margins improved year-over-year by 340 basis points despite lower frac activity levels [3][11] Outlook and Guidance - The company anticipates a strong second quarter, expecting to benefit from seasonal peaks in European industrial chemicals and the completion of multiple deepwater projects [4] - Adjusted EBITDA guidance for the first half of 2025 has been revised to between $57 million and $65 million, with revenue guidance adjusted to between $315 million and $345 million [4] Cash Flow and Capital Expenditures - TETRA generated $3.9 million in cash from operating activities and $4.2 million in free cash flow during the first quarter, after investing $11.2 million in the Arkansas bromine project [5][18] - Total capital expenditures for the quarter were $18 million, with significant investments directed towards the Arkansas bromine facility [18][20] Balance Sheet and Liquidity - As of March 31, 2025, the company had cash and cash equivalents of $41 million and long-term debt of $180 million, resulting in a net leverage ratio of 1.5X [20][19] - Liquidity improved to $220 million as of April 28, 2025, including an unused $75 million delayed draw feature under the Term Credit Agreement [19] Emerging Growth Initiatives - TETRA is advancing its desalination project, TETRA Oasis TDS, in collaboration with EOG Resources, targeting the recycling of produced water for beneficial reuse [13] - The company is positioned to benefit from increased sales of battery electrolytes to Eos Energy Enterprises as they ramp up production [14]

Core Viewpoint - Tetra Technologies is expected to report a year-over-year increase in earnings and revenues, but actual results compared to estimates will significantly impact its stock price [1][2]. Earnings Expectations - The consensus estimate for Tetra Technologies is an earnings per share (EPS) of $0.08, reflecting a year-over-year increase of +60% [3]. - Expected revenues are $155.83 million, which is a 3.2% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 3.85% over the last 30 days, indicating a bearish sentiment among analysts [4]. - The Most Accurate Estimate for Tetra Technologies is lower than the Zacks Consensus Estimate, leading to an Earnings ESP of -25% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with a strong predictive power for positive readings [6][7]. - Tetra Technologies currently has a Zacks Rank of 3, making it challenging to predict an earnings beat [11]. Historical Performance - In the last reported quarter, Tetra Technologies was expected to post earnings of $0.04 per share but delivered only $0.03, resulting in a surprise of -25% [12]. - Over the past four quarters, the company has only beaten consensus EPS estimates once [13]. Industry Comparison - FMC Technologies, a peer in the oil and gas services industry, is expected to report an EPS of $0.36, indicating a year-over-year change of +63.6% and revenues of $2.27 billion, up 11.1% [17]. - FMC Technologies has a consensus EPS estimate that has been revised up by 0.1% over the last 30 days, but it also has a negative Earnings ESP of -0.92% [18].

Company Announcement - TETRA Technologies, Inc. will release its first quarter 2025 results after the market closes on April 29, 2025 [1] - A conference call to discuss the results will be held on April 30, 2025, at 10:30 a.m. Eastern Time, hosted by the President and CEO, Brady M. Murphy, and Senior Vice President and CFO, Elijio V. Serrano [1] Conference Call Details - Interested parties can listen to the conference call by calling the toll-free number 1-800-836-8184 or via live audio webcast [2] - A replay of the conference call will be available for one week following the call, and an archived webcast will be accessible for thirty days on the company's website [2] Company Overview - TETRA Technologies, Inc. is an energy services and solutions company focused on environmentally conscious services and solutions [3] - The company operates on six continents and has a portfolio that includes Energy Services, Industrial Chemicals, and Critical Minerals [3] - TETRA is expanding into the low-carbon energy market, leveraging its chemistry expertise, key mineral acreage, and global infrastructure to meet the demand for sustainable energy [3]

Core Insights - TETRA Technologies, Inc. has announced a pilot project with EOG Resources, Inc. to utilize TETRA Oasis Total Desalination Solution (TDS) for treating produced water from oil and gas wells [1][2] - The TETRA Oasis TDS has demonstrated a 92% recovery rate of desalinated water with total dissolved solids levels between 40 ppm and 200 ppm, surpassing municipal drinking water standards [2] - The pilot project will commence in the first half of 2025 and will include a study on rangeland grass growth using TETRA Oasis TDS processed water [2] Company Overview - TETRA Technologies, Inc. is an energy services and solutions company focused on environmentally conscious services and solutions across six continents [3] - The company's portfolio includes Energy Services, Industrial Chemicals, and Critical Minerals, with a commitment to expanding into the low-carbon energy market [3]

Core Viewpoint - TETRA Technologies, Inc. is committed to refreshing its Board of Directors to enhance value creation and maintain effective governance, amidst ongoing challenges from activist shareholder Brad Radoff [1][2][5]. Board Refreshment and Governance - TETRA plans to nominate Julie Sloat, a former CEO of American Electric Power, for election to its Board, while independent director Mark E. Baldwin will retire [2][3]. - Over the past five years, TETRA has proactively refreshed its Board with five retirements and four new additions, ensuring a diverse and experienced leadership team [3][4]. - The Board has focused on maintaining clear disclosures regarding governance policies and strategic planning, aiming for a well-rounded Board with expertise in various relevant fields [3][4]. Performance and Strategy - Since the appointment of CEO Brady Murphy in 2019, TETRA has achieved a total shareholder return of approximately 60%, with a five-year total shareholder return of 1117%, significantly outperforming industry indices [11][17]. - The company’s long-term strategy includes leveraging synergies between its Completion Fluids & Products and Water & Flowback Services segments, while also expanding into energy storage and desalination markets [11][7]. - TETRA has maintained disciplined capital allocation, achieving a record Return on Net Capital Employed (RONCE) of 17.8% over the last two years, up from 13.4% in 2022 [11][19]. Activist Campaign and Response - Brad Radoff has initiated an activist campaign to replace a majority of the Board's independent members, despite TETRA's efforts to engage in good faith discussions [5][6]. - The Board's Nominating, Governance and Sustainability Committee is assessing Radoff's proposed candidates, noting that some have poor records of delivering shareholder value [6][7]. - TETRA emphasizes that destabilizing the current Board would not be in the best interests of shareholders, as it continues its director refreshment approach [6][7].

Core Viewpoint - The Radoff-Torok Group, owning over 4.9% of TETRA Technologies, Inc. (TTI), is advocating for significant changes to the Board of Directors due to long-term underperformance, lack of strategy, and poor governance, believing that new independent directors are essential for creating long-term value for stockholders [1][2][5]. Group 1: Board Performance and Governance - The current TTI Board is perceived as more focused on preserving the positions of its long-tenured members rather than addressing corporate strategy and governance failures [1][4]. - The Radoff-Torok Group has attempted to engage constructively with the Board over the past five months but has faced rejection of their proposals for board refreshment and improved governance [3][4]. - The Board's refusal to acknowledge its underperformance, evidenced by a nearly 43% decline in TTI's stock price over the last decade compared to a 66% return for the Russell 2000, highlights a disconnect with stockholder interests [6][10]. Group 2: Proposed Changes and Nominees - The Radoff-Torok Group has nominated four independent director candidates—Simon Bates, Evan Behrens, Bradley L. Radoff, and Andrew K. Ruben—believing their expertise will help transition TTI into a more focused and profitable business [5][11]. - The nominees collectively possess extensive experience in relevant industries and public company governance, which the Radoff-Torok Group believes is necessary for effective oversight and strategic direction [11][12]. Group 3: Strategic Recommendations - The Radoff-Torok Group recommends the formation of a Strategy Committee of independent directors to review TTI's business portfolio and capital structure, aiming to unlock value and reduce corporate overhead [7][8]. - Addressing succession planning and capital allocation flaws is deemed critical for restoring TTI's credibility in the market, especially given the current leadership's inability to create stockholder value [8][10].

Core Viewpoint - TETRA Technologies, Inc. has appointed Kurt Hallead as Treasurer and Vice President of Investor Relations, bringing extensive experience in the energy sector [1][2]. Company Overview - TETRA Technologies, Inc. is an energy services and solutions company focused on environmentally conscious services and solutions, operating on six continents [3]. - The company's portfolio includes Energy Services, Industrial Chemicals, and Critical Minerals, with a commitment to expanding into the low-carbon energy market [3]. - TETRA provides products and services to the oil and gas industry and calcium chloride for various applications, aiming to meet the demand for sustainable energy in the 21st century [3].

Company Overview - TETRA Technologies, Inc. is an energy services and solutions company focused on environmentally conscious services and solutions [2] - The company operates on six continents and has a portfolio that includes Energy Services, Industrial Chemicals, and Critical Minerals [2] - TETRA provides products and services to the oil and gas industry and calcium chloride for diverse applications [2] - The company is expanding into the low-carbon energy market, leveraging chemistry expertise, key mineral acreage, and global infrastructure to meet sustainable energy demands [2] Conference Participation - TETRA's senior management will participate in the Roth 37th Annual Conference in Dana Point, California on March 17 and 18, 2025 [1] - CEO Brady Murphy and VP of Investor Relations Kurt Hallead will host one-on-one meetings with institutional investors during the conference [1]

Financial Data and Key Metrics Changes - The fourth quarter adjusted EBITDA margins improved to 17% from 16.6% in the third quarter and 15.8% in the fourth quarter of 2023, despite lower revenue quarter on quarter and year on year [8] - The company achieved a record volume of 89 million barrels of treated and recycled produced water for frac reuse in the fourth quarter [10] - For the first half of 2025, the company projects net income before taxes between $19 million and $34 million and adjusted EBITDA between $55 million and $65 million, approaching or exceeding a ten-year record high [21][22] Business Line Data and Key Metrics Changes - The Water and Flowback segment achieved EBITDA margins of 13.8%, impacted by a year-end completion slowdown, with rig count and frac fleet count down more than double digits from last year [10] - The Completion Fluids and Products segment revenue was down 1% for the full year but grew EBITDA by 2% year over year, with total revenue of $311 million, the second highest since 2015 [11] - The industrial chemicals business achieved its highest revenue and adjusted EBITDA in the company's history, with 2024 revenue growth over 2023 of over 9% [12] Market Data and Key Metrics Changes - The company noted a decline in rig count and frac fleets by 17% and 30%, respectively, over the past two years, while the volume of produced water continues to increase [16] - The company expects to ramp up meaningful volumes of zinc bromide-based electrolyte, which is anticipated to increase its contribution to total revenue [12] Company Strategy and Development Direction - The company is focusing on solutions for produced water treatment and recycling, including desalination for beneficial reuse, as part of its capital allocation strategy [10][14] - Strategic investments in Brazil and the Gulf of America are expected to support increased deepwater activity and contribute to strong free cash flow in the first half of 2025 [14][34] - The company is exploring capital-light solutions for bromine production and lithium opportunities, aiming to fund projects through free cash flow without taking on debt [24][26][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the performance of the U.S. business, driven by strong activity in the Gulf of Mexico and the growing long-duration battery electrolyte business [30] - The company anticipates a strong start to 2025, projecting significant year-over-year increases in both revenue and EBITDA in the first half of 2025 [21][22] - Management highlighted the importance of addressing the industry's challenge of produced water disposal and the potential for regulatory restrictions [18][19] Other Important Information - The company eliminated the valuation allowance for deferred taxes, reflecting confidence in utilizing net operating loss carryforwards in the coming years [30] - Cash on hand at the end of December was $37 million, with total liquidity of almost $207 million as of the conference call date [38] Q&A Session Summary Question: Insights on 2025 growth opportunities - Management indicated that the first half of 2025 will benefit from longer-term projects, with a focus on the CS Neptune pipeline and increased electrolyte volumes from Eos [49][50] Question: Guidance for second half of 2025 - Management expressed caution regarding visibility for the second half of 2025 but noted confidence in ongoing deepwater projects and electrolyte sales [58] Question: Capacity for pilot projects in desalination - Management confirmed the ability to place orders for additional pilot units in 2025, with ongoing discussions for several pilots [66] Question: Revenue contribution from Brazil deepwater program - Management stated that the Brazil deepwater program is expected to contribute significantly over the next two years, with a focus on heavier brine completion projects [68] Question: Bromine project timeline - Management indicated that the lead time for the bromine project is longer than a few months, with significant progress already made in engineering and site preparation [72] Question: Demand for recycled water and customer discussions - Management noted increasing momentum for the Oasis solution, with ongoing discussions with operators and the need to address regulatory and logistical challenges [80][82]