TETRA Technologies, Inc. (NYSE:TTI) Q4 2023 Results Conference Call February 28, 2024 10:30 AM ET Company Participants Rigo Gonzalez - Manager of Corporate Finance and Investor Relations Brady Murphy - President and Chief Executive Officer Elijio Serrano - Senior Vice President and CFO Conference Call Participants Martin Malloy - Johnson Rice Bobby Brooks - Northland Capital Markets Kurt Hallead - Benchmark Patrick Ouellette - Stifel Tim Moore - EF Hutton Operator Good morning, and welcome to TETRA Technolo ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON D.C. 20549 FORM 10-K (Mark One) OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO . COMMISSION FILE NUMBER 1-13455 TETRA Technologies, Inc. (Exact name of registrant as specified in its charter) (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.) 24955 Interstate 45 North The Woodlands, Texas 77380 (Address of Principal Exec ...

Financial Performance - Fourth quarter revenue was $153.1 million, a 4% increase year-over-year[4] - Fourth quarter adjusted EBITDA was $24.1 million, reflecting a 19% year-over-year increase[4] - Total year 2023 income from continuing operations was $25.5 million, a 235% increase compared to 2022[4] - Adjusted free cash flow for 2023 was $41 million, an improvement of $62 million year-over-year[4] - Total year revenue for 2023 was $626 million, a 13% increase from 2022, with international operations contributing 65% to the revenue growth[22] - Income from continuing operations improved to $25.5 million in 2023, up 2.4 times from $7.6 million in 2022[22] - Adjusted EBITDA increased by $28.7 million to $106.8 million in 2023, representing a 37% growth year-over-year[23] - Adjusted EBITDA margin rose to 17.1% in 2023, an increase of 300 basis points from 14.1% in 2022[23] - Cash flow from operations reached $70.2 million, a significant increase of 269% from $19.0 million in 2022[23] - Net income for the twelve months ended December 31, 2023, was $25,757 thousand, a substantial increase from $7,796 thousand in the previous year[35] - Net income before taxes and discontinued operations for 2023 was $31,699,000, up from $11,166,000 in 2022, reflecting a significant increase of 184.5%[50] Revenue Breakdown - Water & Flowback Services revenue for the fourth quarter was $81 million, a 12% increase for the total year[10] - Completion Fluids & Products revenue for the fourth quarter was $73 million, a 10% increase year-over-year[13] - Completion Fluids & Products revenue for 2023 was $313 million, up $39.7 million from 2022, with an income before taxes of $78.3 million[24] - Water & Flowback Services revenue for 2023 was $313 million, an increase of $33.4 million from 2022, with an income before taxes of $25.7 million[25] Debt and Liquidity - As of December 2023, the net leverage ratio was 1.13X and liquidity was $126 million[19] - A $265 million credit facility was secured in January 2024 to advance the Arkansas bromine processing project[20] - Net debt decreased by 27% to $105 million from $142.9 million in 2022[23] - Unrestricted cash increased to $52,485,000 in 2023 from $13,592,000 in 2022, showing a substantial improvement in liquidity[52] - Net debt decreased to $105,020,000 in 2023 from $142,866,000 in 2022, indicating a reduction in leverage[52] Asset Management - Total assets increased to $478,961 thousand in December 2023, up from $434,366 thousand in December 2022, representing an increase of 10.1%[34] - Total current liabilities increased slightly to $125,962 thousand in December 2023 from $124,267 thousand in December 2022, an increase of 1.4%[34] - Long-term debt, net, was $157,505 thousand in December 2023, a marginal increase from $156,455 thousand in December 2022, indicating a growth of 0.7%[34] - Consolidated total assets increased to $478,961 thousand as of December 31, 2023, up from $434,366 thousand in the previous year[55] - Consolidated current liabilities stood at $125,962 thousand, compared to $124,267 thousand in the previous year[55] Operational Efficiency - Adjusted EBITDA is used by management to assess financial performance, excluding certain special or other charges, and is a key metric for evaluating operational efficiency[40] - Adjusted net income per share is utilized to evaluate financial performance, excluding special charges, providing a clearer view of operational results[39] - The company aims to enhance its capacity for further investment and growth, as indicated by its financial strategies and performance metrics[46] Market Expansion - The Arkansas Oil and Gas Commission approved the 6,138-acre Evergreen Brine Unit for future bromine and lithium production[3] - The resource report estimated 22 tons per acre of total lithium resources for the Evergreen Brine Unit, the highest for any lithium brine resource in the U.S.[5] - The company is expanding into the low-carbon energy market, focusing on lithium and bromine resources development[31] Quarterly Performance - For the three months ended December 31, 2023, the company reported an adjusted income from continuing operations of $3.777 million, compared to $9.166 million in the previous quarter, reflecting a decrease of approximately 59.8%[47] - The total revenues for the three months ended December 31, 2023, were $153.126 million, slightly down from $151.464 million in the previous quarter, indicating a marginal decline of about 1.1%[48] - Adjusted EBITDA for the three months ended December 31, 2023, was $24.142 million, representing an adjusted EBITDA margin of 15.8% of revenue, compared to 17.2% in the previous quarter[48] - The net loss before taxes and discontinued operations for the three months ended December 31, 2023, was $(3.631) million, a significant decline from a profit of $6.716 million in the previous quarter[47] - The diluted loss per share from continuing operations for the three months ended December 31, 2023, was $(0.03), compared to a profit of $0.04 in the previous quarter[47] - The company reported total impairments and other charges of $2.189 million for the three months ended December 31, 2023, consistent with the previous quarter's charges[48] - The company experienced an unusual foreign exchange loss of $2.444 million for the three months ended December 31, 2023, which was not present in the previous quarter[48]

TETRA Technologies, Inc. (NYSE:TTI) Q3 2023 Earnings Conference Call October 31, 2023 10:30 AM ET Company Participants Rigo Gonzalez - Manager of Corporate Finance and Investor Relations Brady Murphy - President and Chief Executive Officer Elijio Serrano - Senior Vice President and CFO Conference Call Participants Martin Malloy - Johnson Rice Stephen Gengaro - Stifel Tim Moore - EF Hutton Operator Good morning and welcome to TETRA Technologies Third Quarter 2023 Results Conference Call. All participants wil ...

Washington D.C. 20549 UNITED STATES SECURITIES AND EXCHANGE COMMISSION (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.) 24955 Interstate 45 North The Woodlands, Texas 77380 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ...

TETRA Technologies, Inc. (NYSE:TTI) Q2 2023 Earnings Conference Call August 1, 2023 10:30 AM ET Company Participants Rigo Gonzalez - Corporate Finance & IR Manager Brady Murphy - President, CEO & Director Elijio Serrano - SVP & CFO Conference Call Participants Martin Malloy - Johnson Rice & Company Stephen Gengaro - Stifel, Nicolaus & Company Operator Good morning, and welcome to TETRA Technologies Second Quarter 2023 Results Conference Call. [Operator Instructions] I would now like to turn the conference ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number 1-13455 TETRA Technologies, Inc. (Exact name of registrant as specified in its charter) Delaware 74-2148293 (State or Other Jurisdic ...

Financial Data and Key Metrics Changes - Adjusted EBITDA increased by 6% quarter-over-quarter and by 8% year-over-year, marking the highest adjusted EBITDA since Q1 2020 [4][5] - Cash flow from operating activities was $9 million in Q1 2023, compared to cash used of $7 million in Q4 2022 [14] - Net leverage was 2.0x at the end of Q1 2023, with unrestricted cash of $17 million and liquidity of $86 million [15] Business Line Data and Key Metrics Changes - Completion Fluids & Products revenue was $69 million, a 4% sequential increase, with adjusted EBITDA of $18 million and margins of 26.1% [8] - Water & Flowback Services revenue improved by 36% year-over-year to $77 million, with adjusted EBITDA of $12.9 million, reflecting a 57% year-over-year increase [9][10] Market Data and Key Metrics Changes - Revenue from international markets grew by 17% compared to Q1 2022, driven by stronger activity in Latin America [5] - The European industrial chemicals business has nearly returned to pre-Russia-Ukraine conflict levels, contributing to a strong second quarter forecast [9] Company Strategy and Development Direction - The company is focused on margin expansion, maximizing returns on capital, and generating meaningful cash flow in 2023 [7][20] - Investments in international markets and completion fluids businesses are expected to contribute to earnings as the deepwater market recovers [20] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the deepwater market upcycle and anticipates a strong second quarter, projecting revenue between $165 million and $175 million [16][20] - The company is working on low carbon energy initiatives and evaluating lithium and bromine resources in Arkansas, with a focus on strategic partnerships [12][29] Other Important Information - The company completed a completion fluids investment in Brazil, which will more than double its deepwater operational capacity [5] - The third early production facility in Argentina is expected to come online in Q2 2023, supporting growth in the Water & Flowback Services segment [11] Q&A Session Summary Question: Overview of water technology and competitive environment - Management provided updates on exclusive technology agreements for water desalination and expressed confidence in completing a commercial plant design by year-end [21][22] Question: Market opportunities for Neptune products - Management highlighted strong opportunities in the North Sea and potential projects in the Gulf of Mexico, with expectations for execution in 2024 [24][25] Question: EBITDA headwinds in Q3 - Management indicated that strong market conditions in deepwater completion fluids could mitigate seasonal drops in Q3 [27] Question: Impact of IRA on lithium projects - Management acknowledged the importance of the U.S. lithium market and expressed optimism about future partnerships for lithium and bromine projects [28][29] Question: Factors affecting Water & Flowback EBITDA margins - Management identified margin enhancement initiatives, including automation and new applications for SandStorm technology, as key drivers [32][33] Question: Timeline for bromine project construction - Management indicated readiness to begin construction immediately upon board approval, having already identified long lead items [37] Question: Free cash flow expectations - Management expects strong free cash flow in the second half of the year as inventory is converted to receivables [40] Question: Calcium chloride sales outlook - Management anticipates year-over-year growth in calcium chloride sales, with preparations for inventory build-up post-peak season [41][42]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number 1-13455 FORM 10-Q TETRA Technologies, Inc. (Exact name of registrant as specified in its charter) Delaware 74-2148293 24955 Interstate 45 Nor ...

Financial Data and Key Metrics Changes - The company reported a sequential revenue growth of 9% in Q4 2022 compared to Q3 2022 and a 42% increase for the full year over 2021 [4] - Adjusted EBITDA for Q4 2022 was $20.3 million, up from $18.6 million in Q3 2022, with a full-year adjusted EBITDA increase of 112% over 2021 [4][5] - Cash from operating activities was a use of $7 million in Q4, while adjusted free cash flow from continuing operations was a use of $14 million [15] Business Line Data and Key Metrics Changes - Completion fluids and products segment revenue for Q4 2022 was $66 million, a 12% increase from Q3 2022, with adjusted EBITDA of $16 million [7] - Water and Flowback segment revenues reached $81 million, growing 52% year-on-year and 7% quarter-on-quarter, marking the highest quarterly revenue since Q2 2018 [8][9] - The Water and Flowback segment achieved a full-year revenue growth of 66% and adjusted EBITDA increased by 191% [9] Market Data and Key Metrics Changes - The combined markets of the Gulf of Mexico and international offshore businesses saw a 20% sequential revenue increase and over 50% year-on-year growth [5] - The company expects a 25% increase in deepwater floater rigs by 2025, indicating a strengthening offshore market [6] Company Strategy and Development Direction - The company is entering a multiyear growth cycle for offshore markets, supported by increased floater day rates and contract durations [6] - Investments were made to strengthen the offshore completion fluids business, including acquisitions that will increase fluid capacity by 70% in the UK and 15% in the Gulf of Mexico [6][7] - The company is focused on margin expansion and cash generation while continuing to invest in capital projects with short-term returns [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the offshore market's growth and the potential for increased demand for completion fluids [6][31] - The company is committed to evaluating the Arkansas brine resource and expects to provide updates as the project progresses [31][32] Other Important Information - The company holds significant marketable securities, including shares of Standard Lithium and CSI Compressed Gas, valued at approximately $15 million [19] - The company has accumulated approximately $411 million of tax loss carryforwards, which will be beneficial as profitability improves [20] Q&A Session All Questions and Answers Question: Can you talk about the offshore completion fluids market and visibility with customers? - Management noted that they are seeing traction in the North Sea and expect more repetitive jobs in the offshore business, with a meaningful uptick in Neptune opportunities likely in 2024 and beyond [33] Question: How do you view the ability to ramp up production of PureFlow? - Management indicated that there is plenty of capacity at the West Memphis facility to ramp up production with little to no capital required [34] Question: What should be considered for sequential performance in Q1 2023? - Management expects a rebound in margins for the Water and Flowback business and plans to ramp up in Q2 with the European chemicals business recovering [37][39] Question: Is the target for $100 million EBITDA in 2023 reasonable? - Management refrained from providing full-year guidance due to unpredictable economic factors [41] Question: Where do you see the company in 24 months? - Management highlighted growth opportunities in produced water and completion fluids, with expectations for the Arkansas project to be fully evaluated [42][43] Question: How should we think about free cash flow generation for this year? - Management expects to be strongly free cash flow positive in 2023, with lower capital expenditures compared to 2022 [45] Question: Any updates on the regulatory review for desalination and produced water? - Management stated that each operator will need their own permits, and they are confident their technology will meet regulatory requirements [50] Question: How do you view your market share in the deepwater completion fluids market? - Management estimated a 30% market share in high-value completion fluids, with 70% of deepwater wells in the Gulf of Mexico requiring bromine-based fluids [56]