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INVESTOR PRESENTATION – Tetra Technologies Inc.

Tetra Technologies Inc. · Oct 1, 2014 · 36 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 1
    TETRA Technologies, Inc. October 2014
  2. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 2
    Corporate Profiles COMPANY OVERVIEW Stock Market NYSE: TTI NASDAQ: GSJK Recent Share Price(1) 11.19 24.09 Market Capitalization(1) 878.7M 798.4M Enterprise Value(1) 1.3B 1.3B Number of Shares/ 78.5M 33.1M Units…
  3. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 3
    Business Segments COMPANY OVERVIEW FLUIDS SERVICES PRODUCTION COMPRESSCO OFFSHORE MARITECH TESTING SERVICES Targeting to Only vertically The largest North Full service compression: A leading provider of complete our operated…
  4. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 4
    Key Market Drivers COMPANY OVERVIEW 55 GoM Working Floaters(1) 1,600 US Unconventional Rig Count(1) 90% 50 1,400 80% 45 1,200 70% 40 60% 1,000 35 50% 800 30 40% 25 600 30% 20 400 20% 15 200 10% 10 0 0% 5 2000A 2002A 2004A…
  5. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 5
    TETRA is well positioned to leverage synergies and provide services through a global infrastructure 6
  6. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 6
    TETRAs Transformation Divestiture of Maritech Recent Investments ( millions) 350 300 CSI acquisition completed August 4, 2014 250 122 200 30M in water management & Saudi Arabia JV 150 buy-out 100 170 50 Capacity addition to…
  7. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 7
    TETRA is Evolving EVOLUTION AND STRATEGY TETRA is a pure play oilfield services company following the divestiture of Maritech 2009 Revenue (1) Oilfield Services vs E&P Revenue(1) ( millions) Compressco 10% Production Testing 9%…
  8. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 8
    Global Footprint, Growing International Presence 2013 Revenue Mix COMPANY excl. Offshore Services OVERVIEW Intl. 36% US 64% 9
  9. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 9
    Developing Synergies EVOLUTION AND STRATEGY TETRA has evolved into a harmonized infrastructure with multiple service offerings Successfully cross selling services Leveraging local nationals in management to enhance customer…
  10. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 10
    Strategic Evolution 2009: 0.93 Billion(1) Short Term Tactical Right sized Offshore Services and G&A Complete Maritech decommissioning Fluids, PT and Compressco 43% Accelerate growth in Frac water management Offshore Services…
  11. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 11
    Leveraging the value of the integrated business units and service offerings to the oilfield and other industries 12
  12. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 12
    Fluids Services FLUIDS SERVICES Completion Fluids Only vertically integrated cost effective solutions provider of high-end clear brine fluids - Manufacturer of calcium bromide, zinc bromide and calcium chloride - Long-term bromine…
  13. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 13
    Fluids Services Financial Overview FLUIDS SERVICES Revenue ( millions) EBITDA ( millions) and Margin(1) 450 24% 120 25% 21% 400 383 100 17% 20% 16% 350 335 80 92 15% 305 60 70 300 276 10% 40 52 44 250 5% 20 200 0 0%…
  14. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 14
    Production Testing PRODUCTION TESTING Flow back pressure and volume testing provides data to optimize production and minimize reservoir damage Production Testing used to access newly available production and extend productive life…
  15. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 15
    Production Testing Financial Overview PRODUCTION TESTING Revenue ( millions) (2) EBITDA ( millions) and Margin (1) 300 110 36% 40% 31% 35% 90 28% 208 196 30% 200 21% 70 25% 140 64 104 50 20% 50 100 15% 30 30 42 10% 10…
  16. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 16
    Offshore Services OFFSHORE SERVICES A leading GoM provider of decommissioning and well abandonment services - Largest provider of heavy lift platform removals with two derrick barges, including the newly built 1,700-T TETRA…
  17. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 17
    Offshore Services Financial Overview OFFSHORE SERVICES Revenue ( millions) EBITDA ( millions) and Margin (1) 350 60 18% 20% 300 287 16% 274 266 18% 256 50 15% 13% 16% 250 47 14% 40 200 42 12% 30 41 10% 150 38 8% 100 20…
  18. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 18
    Compressco Acquisition of CSI 19
  19. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 19
    Strategic Rationale Provides capability to meet demand for larger scale production, gathering and processing compression with little product overlap between companies (mean HP per compressor is 46 HP for Compressco Complementary…
  20. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 20
    Strategic Rationale Combined Compressco and CSI has a strong engineering and manufacturing team focusing on packaging natural gas compression equipment Packaging designed to meet specific customer requirements Extensive design…
  21. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 21
    Compressco Profile Compressco will provide compression services across the entire Value Chain Ending Number of Units (1) 6,295 Ending HP (1) 1,045,000 HP Range 20 to 2,370 Employees 1,017 Conventional and unconventional wellhead…
  22. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 22
    Competitive Landscape Compressco & CSI will be well-positioned to capitalize on significant market opportunities Service Fleet & International Total Utilized Company Name Service Fleet Fabrication Fabrication Presence Rental Fleet…
  23. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 23
    Pro Forma Financials ( in thousands) 12 Months Ended March 31, 2014 Compressco CSI Compressco Historical Pro Forma Revenues Compression and other services 111,185 182,371 293,556 Sales of compressors and parts 9,159 128,476…
  24. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 24
    Compresscos Distribution Trend FINANCIAL OVERVIEW Quarterly Distribution (Annualized) TETRA owns 44% of Compressco 1.85 1.81 1.80 1.78 1.75 1.75 As the general partner TETRA is entitled to 1.68 1.70 1.72 1.70 IDRs (Incentive…
  25. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 25
    Potential Impact of Increased Distributions FINANCIAL OVERVIEW Opportunity to Create Significant Shareholder Value from CSI Acquisition Compressco Valuation at Various Declared Distribution Levels Annualized Distribution 1.80 1.90…
  26. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 26
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  27. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 27
    Tactical Initiatives FINANCIAL OVERVIEW Strong focus on cost reductions: Focus on core areas: - Improvement in Production Testing - Offshore Services - 19 million profitability and customer expansion - G&A - 16.5 million -…
  28. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 28
    Strong Balance Sheet FINANCIAL OVERVIEW Completing Asset Retirement Obligations with a strong balance sheet Long-term debt at attractive rates of 4.0%-6.5% for TETRA and 7.25% for Compressco Ample liquidity to fund growth Debt…
  29. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 29
    TETRA as an Investment Opportunity 2009: 0.93 Billion (1) 2013: 0.96 Billion (1) Offshore Fluids, PT and Services Compressco 27% 43% Offshore Services 38% Fluids, PT and Compressco 73% E&P Revenue 19% Investment…
  30. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 30
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  31. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 31
    TETRA Leadership Team LEADERSHIP AT TETRA Highly qualified management with a broad range of experience from large multi-national and small service companies Stu Brightman President & CEO Elijio Serrano SVP & CFO President & CEO since…
  32. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 32
    TETRA Leadership Team LEADERSHIP AT TETRA Highly qualified management with a broad range of experience from large multi-national and small service companies Edwin Goldman SVP Offshore Services Tim Knox President of Compressco Joined…
  33. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 33
    Appendix FINANCIAL OVERVIEW (thousands, except per share amounts) Market Capitalization: TTI Market price per share on 9/26/2014 11.19 Average number of diluted shares outstanding (in thousands) for three months ended 06/30/14…
  34. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 34
    Appendix FINANCIAL OVERVIEW ( thousands) ( thousands) Reconciliation of Net Debt and Net Debt/ EBITDA Excluding Reconciliation of Free Cash Flow excluding Maritech(1) Maritech(1) 2011 2012 2013 Net Debt components as of…
  35. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 35
    Appendix FINANCIAL OVERVIEW Reconciliation of EBITDA Reconciliation of EBITDA Compressco Production Testing in millions 2010 2011 2012 2013 in millions 2010 2011 2012 2013 Income(Loss) before Taxes and Income(Loss) before Taxes…
  36. INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 36
    TETRA Technologies, Inc. October 2014

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