TETRA TECHNOLOGIES, INC. ANNOUNCES FOURTH QUARTER AND TOTAL YEAR 2024 RESULTS AND PROVIDES FIRST-HALF 2025 GUIDANCE

Core Insights - TETRA Technologies, Inc. reported fourth quarter and total year 2024 results, highlighting a mixed performance with strong offshore activity but weaker U.S. onshore activity [1][2] - The company achieved an adjusted EBITDA margin of 17.0%, an improvement from previous quarters, despite a decrease in revenue [2][5] - TETRA's strategic focus on produced water led to record high treatment and recycling volumes, alongside the successful commercial launch of the TETRA Oasis Total Desalination Solution [2][8] Financial Performance - Fourth quarter 2024 revenue was $135 million, a decrease of 5% from the third quarter [5][16] - Net income from continuing operations was $102 million, significantly higher than $2.8 million in the previous quarter, largely due to non-recurring tax credits [5][10] - Adjusted EBITDA for the fourth quarter was $22.8 million, down 3% from the third quarter, with margins impacted by lower production volumes [6][9] Cash Flow and Investments - Cash flow from operating activities was $5.6 million, a decline from $19.9 million in the third quarter [7][10] - The company reported an adjusted free cash flow use of $9.3 million in the fourth quarter, compared to a positive $6.3 million in the third quarter [7][10] - TETRA monetized its equity investment in Kodiak Gas Services, generating approximately $19 million in cash proceeds [2][6] Strategic Initiatives - TETRA invested $22 million in strategic initiatives in Arkansas, focusing on engineering and reservoir studies for a bromine project [10][11] - The company anticipates a strong first half of 2025, with expected net income before taxes between $19 million and $34 million [3][12] - TETRA is prioritizing projects that can impact near-term results, including TETRA CS Neptune fluids and water desalination technologies [12][11] Tax and Deferred Assets - A favorable adjustment of $97.5 million to deferred tax assets was recognized, reflecting TETRA's profitable position and expectations of stronger future profits [4][15] - The company estimates that its U.S. federal tax loss carryforward can offset approximately $345 million of taxable pretax income in 2025 and beyond [4][15] Yearly Overview - Total year revenue for 2024 was $599 million, a decrease of $27 million from 2023, with international operations contributing to the decline [16][17] - Income from continuing operations improved to $113.6 million in 2024, compared to $25.5 million in 2023 [16][17] - Adjusted EBITDA for the full year was $99 million, down from $107 million in 2023, with margins decreasing slightly [16][17]