THE
WOODLANDS, Texas, July 5, 2023
/PRNewswire/ -- TETRA Technologies, Inc. ("TETRA" or the "Company")
(NYSE:TTI) announced today that as a result of strong performance
by the Company's industrial calcium chloride business, strong
offshore completion fluids activity and improved Water and Flowback
Services margins, net income before taxes and discontinued
operations and Adjusted EBITDA are expected be above the guidance
range previously provided for the second quarter. TETRA had
previously anticipated in the second quarter net income before
taxes and discontinued operations to be between $11.5 million and $13.5
million. Second quarter Adjusted EBITDA was previously
anticipated to be between $27 million
and $30 million. Anticipated Adjusted
EBITDA excludes mark-to-market gains or losses from investments and
non-recurring charges and expenses.
Revenue is expected to be at the high end of the previously
provided guidance range of between $165
million and $175 million.
Further, TETRA expects second quarter cash flow from operating
activities and adjusted free cash flow from continuing operations
to be meaningfully above that same measure versus the first quarter
of 2023. TETRA's results for the second quarter have not been
finalized and are subject to any changes which may occur as a
result of the finalization of those results that are to be
contained in our Report on Form 10-Q to be filed for the second
quarter.
Additionally, the second test well TETRA was drilling in the
Smackover Formation in Southwest
Arkansas has been completed with fluid sampling tests
underway. The results from this well will be used to update the
previously reported Inferred Resources Study for bromine and
lithium. TETRA has also engaged Hargrove and Associates to execute
a front-end engineering and design study ("FEED") for a lithium
production facility. The lithium plant design will be optimized to
share the production wells, injection wells, and pipelines
consistent with the previously completed FEED study for the bromine
plant, which was completed during the first quarter of 2023.
Company Overview
TETRA Technologies, Inc. is an energy services and solutions
company operating on six continents with a focus on bromine-based
completion fluids, calcium chloride, water management solutions,
frac flowback, and production well testing services. Calcium
chloride is used in the oil and gas, industrial, agricultural,
road, food, and beverage markets. TETRA is evolving its business
model by expanding into the low carbon energy markets with its
chemistry expertise, key mineral acreage, and global
infrastructure. Low carbon energy initiatives include
commercialization of TETRA PureFlow® ultra-pure zinc
bromide clear brine fluid that is used for stationary batteries and
energy storage; advancing an innovative carbon capture utilization
and storage technology with CarbonFree to capture CO2
and mineralize emissions to make commercial, carbon-negative
chemicals; and development of TETRA's lithium and bromine mineral
acreage to meet the growing demand for oil and gas products and
energy storage. Visit the Company's website at
www.tetratec.com for more information or connect with us on
LinkedIn.
Cautionary Statement Regarding Forward Looking
Statements
This news release 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 projections
or forecasts concerning the Company's business activities,
financial guidance, profitability, estimated earnings, earnings per
share; the finalization of our financial results for the second
quarter of 2023, the development of our brine leases in
Arkansas as well as 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 indicated or
measured resources report and initial economic assessment regarding
our lithium and bromine acreage; 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. Investors should not place
undue reliance on forward-looking statements. Each forward-looking
statement speaks only as of the date of the particular statement,
and the Company undertakes no obligation to update or revise any
forward-looking statements, except as may be required by law.
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SOURCE TETRA Technologies, Inc.