TETRA Technologies(TTI)2025-04-30 14:30Financial Data and Key Metrics Changes - TETRA reported a record first quarter adjusted EBITDA of 157 million, reflecting a 17% sequential increase and a 4% year-over-year increase [5][11] - Adjusted EBITDA increased by 41% sequentially and year-over-year [5] Business Line Data and Key Metrics Changes - Completion Fluids and Products segment revenue was 33.2 million, a 77% sequential increase [21] - Water and Flowback Services segment revenue declined by 2% sequentially to 8.3 million [21][22] Market Data and Key Metrics Changes - Offshore deepwater operations saw a 60% year-over-year increase, with 24 deepwater projects worked on in the quarter compared to 15 in the same period last year [6] - The U.S. Frac activity declined approximately 10%, but TETRA's Water and Flowback Services outperformed this decline [7] Company Strategy and Development Direction - TETRA is focusing on emerging growth initiatives, including desalination of produced water and energy storage solutions [12][14] - The company plans to self-fund its bromine project without issuing equity or increasing debt, balancing investments with demand projections [18][19] - TETRA is prioritizing automation in its Water and Flowback segment to improve margins and operational efficiency [9][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong second quarter outlook despite macroeconomic uncertainties, adjusting the lower end of adjusted EBITDA guidance for the first half of 2025 to 219 million, with a net leverage ratio improved to 1.5 times [24] - The company is actively engaging with regulatory bodies to support beneficial reuse of produced water, indicating a positive trend in regulatory support [36][37] Q&A Session Summary Question: What are the biggest holdups for customers on commercial pilots for Oasis? - Management indicated that customers need to be comfortable with the technology and evolving environmental regulations, with expectations for multiple pilot projects in 2026 [34] Question: Can you provide specifics on regulatory support for beneficial reuse? - Management highlighted engagement with the Texas Railroad Commission and legislative movements supporting surface discharge and beneficial reuse of produced water [36] Question: Will the first production well for Evergreen be left uncompleted until the processing facility is ready? - Yes, the first well will be drilled and put on standby until the bromine processing facility is operational [40] Question: What is the outlook for the deepwater market compared to previous quarters? - Management noted that there have been no changes to scheduled deepwater projects, indicating resilience despite commodity price fluctuations [98][101]