TETRA Technologies, Inc.
December 2022
Disclaimer
Forward-Looking Statements
This presentation includes certain statements that are deemed to be forward-looking statements. Generally, the use of words such as "may," "see," "expectation," "expect," "intend," "estimate," "projects," "anticipate," "believe," "assume," "could," "should," "plans," "targets" or similar expressions that convey the uncertainty of future events, activities, expectations or outcomes identify forward-looking statements that the Company intends to be included within the safe harbor protections provided by the federal securities laws. These forward-looking statements include statements concerning economic and operating conditions that are outside of our control, including statements concerning recovery of the oil and gas industry; customer delays for international completion fluids related to global shipping and logistics issues; potential revenue associated with prospective energy storage projects or our pending carbon capture partnership; inferred mineral resources of lithium and bromine, the potential extraction of lithium and bromine from the leased acreage, the economic viability thereof, the demand for such resources, and the timing and costs of such activities; the ability to obtain an initial economic assessment regarding our lithium and bromine acreage; projections concerning the Company's business activities, financial guidance, profitability, estimated earnings, earnings per share, and statements regarding the Company's beliefs, expectations, plans, goals, future events and performance, and other statements that are not purely historical. With respect to the Company's disclosures of inferred mineral resources, including bromine and lithium carbonate equivalent concentrations, it is uncertain if further exploration will ever result in the estimation of a higher category of mineral resource or a mineral reserve. Inferred mineral resources are considered to have the lowest level of geological confidence of all mineral resources. Investors are cautioned that mineral resources do not have demonstrated economic value. Inferred mineral resources have a high degree of uncertainty as to their existence and to whether they can be economically or legally commercialized. A significant amount of exploration must be completed in order to determine whether an inferred mineral resource may be upgraded to a higher category. Therefore, you are cautioned not to assume that all or any part of an inferred mineral resource exists, that it can be economically or legally commercialized, or that it will ever be upgraded to a higher category. These forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of risks and uncertainties, many of which are beyond the control of the Company. Investors are cautioned that any such statements are not guarantees of future performances or results and that actual results or developments may differ materially from those projected in the forward-looking statements. Some of the factors that could affect actual results are described in the section titled "Risk Factors" contained in the Company's Annual Reports on Form 10-K, as well as other risks identified from time to time in its reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission.
Industry and Market Data
This presentation has been prepared by TETRA and includes market data and other statistical information from third-party sources, including independent industry publications, government publications or other published independent sources. Although TETRA believes these third-party sources are reliable as of their respective dates, TETRA has not independently verified the accuracy or completeness of this information. Some data are also based on the TETRA's good faith estimates, which are derived from its review of internal sources as well as the third-party sources described above.
Trademarks and Logos
TETRA owns or has rights to various trademarks, service marks and trade names that is uses in connection with the operation of its business. This presentation also contains trademarks, service marks and trade names of third parties, which are the property of their respective owners. TETRA's use or display of third parties' trademarks, service marks, trade names or products in this presentation is not intended to and does not imply, a relationship with TETRA or an endorsement or sponsorship by or of TETRA. Solely for convenience, the trademarks, service marks and trade names referred to in this presentation may appear without the ©, ®, TM or SM symbols, but the omission of such references is not intended to indicate, in any way, that TETRA will not assert, to the fullest extent under applicable law, its rights or the right of the applicable owner of these trademarks, service marks and trade names.
©2022 TETRA Technologies, Inc. | 2 |
Investment Highlights
Global leader in high-value completion fluids, water management and related industrial chemicals. Our aqueous chemistry expertise and key mineral assets position us well for the growing energy transition market.
- Diverse revenue stream from O&G, industrial, US & international, onshore & offshore
- Industry innovation leader & vertically integrated Completions Fluids & Products
- Leading O&G water treatment and water management service provider
- Key mineral assets and chemistry R&D expertise for low carbon energy
Stock and Market Information | $519M TTM 2022-Q3 Revenue Mix | Improving and Stable Adjusted |
EBITDA Margins During Downturns | ||
Ticker | NYSE: TTI |
Market Cap (a) | $490M |
Net Debt (b) | $129M |
Enterprise Value (a) | $619M |
Shares Outstanding (c) | 129M |
Average Daily Trading Volume | 1,091,315 |
Completion | Water & | |||||||
Fluids & | Flowback | 13.0% | 12.9% | 13.7% | ||||
Products | Industrial | Services | 11.8% | |||||
11.0% | 11.5% | |||||||
$267M | $252M | |||||||
4.6% | ||||||||
Oil & Gas | ||||||||
2016 | 2017 | 2018 | 2019 | 2020 | 2021 | TTM |
2022-Q3
(a) As of 11/30/2022 (b) As of 9/30/2022 (c) As of 10/28/2022. Enterprise value, Net debt and Adjusted EBITDA margins are non-GAAP financial measures. See "Non-GAAP Reconciliation" in appendix for more information and reconciliation
©2022 TETRA Technologies, Inc. | 3 |
Financial Trends
Strong Revenue Growth
$ millions | Revenue | |||
$133 | ||||
$102 | $113 | |||
$96 | $95 | |||
$73 | $75 | $77 |
+41%
$130
$141 $135
Improving Liquidity(1) To Fund Expansion
Liquidity(1)
$ millions
$92 | $92 |
$79
$68
2020-Q12020-Q22020-Q32020-Q42021-Q12021-Q22021-Q32021-Q42022-Q12022-Q22022-Q3
Q3-2022
- Revenue growth of 41% from the third quarter of 2021 despite lower U.S. frac fleets and rig count
- Completion Fluids & Products revenue increased 22% year- over-year with Adjusted EBITDA margins consistently above 20%
- Water & Flowback Services revenue increased 62% year-over- year. Third quarter Adjusted EBITDA of 17.4% increased 230 bps sequentially.
2019 YE | 2020 YE | 2021 YE | 2022-Q3 |
- Reduced term loan by $57M since 2019-Q3
- Net leverage ratio of 1.7x at 2022-Q3, improved from 2.7x at year-end 2021
- 2022-YTDcash from operating activities of $25.9M
- Liquidity is defined as unrestricted cash plus availability under the ABL credit facility and Swedish credit facility
©2022 TETRA Technologies, Inc. | 4 |
Adjusted EBITDA margins and net leverage ratio are non-GAAP financial measures. See "Non-GAAP Reconciliation" in appendix for more information and reconciliation |
Strategy Update - Executing on Traditional Business While Entering Higher Growth New Markets from Existing Capabilities
Existing Business
Oil & Gas
BromineSodium Bromide, Calcium Bromide, Zinc Bromide, TETRA CS Neptune® Fluids
Calcium | Agriculture, Oil & Gas, De-icing, |
Industrial, Road Handling & Dust | |
Chloride | |
Control | |
Water | Oil & Gas |
Management | Recycling & Treatment |
Undeveloped | Aqueous Chemistry Expertise | |
Brine Assets | ||
New Markets
Energy Storage
Ultra-Pure Zinc Bromide,
Reclamation of Electrolytes
Carbon Capture Utilization
and Lithium Extraction
Calcium Chloride
Produced Water
Mineral Extraction &
Desalination
Lithium Carbonate
©2022 TETRA Technologies, Inc. | 5 |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Tetra Technologies Inc. published this content on 05 December 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 December 2022 20:02:07 UTC.