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MARCH 2015 INVESTOR PRESENTATION – Tetra Technologies Inc.

Tetra Technologies Inc. · Mar 24, 2015 · 34 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. MARCH 2015 INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 1
    TETRA Technologies, Inc. and CSI Compressco LP March 2015
  2. MARCH 2015 INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 2
    Corporate Profiles COMPANY OVERVIEW Stock Market NYSE: TTI NASDAQ: CCLP Recent Share Price(1) 5.34 17.03 Market Capitalization(1) 425M 564M Enterprise Value(1) 820M 1.1B Number of Shares/ 79.7M 33.1M Units Outstanding(2)…
  3. MARCH 2015 INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 3
    Business Segments COMPANY OVERVIEW FLUIDS SERVICES PRODUCTION CSI COMPRESSCO OFFSHORE MARITECH TESTING SERVICES Targeting to Only vertically The largest North Full service compression: A leading provider of complete our…
  4. MARCH 2015 INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 4
    Progress on Key Initiatives COMPANY OVERVIEW Achieved Free Cash Flow (1) ( millions) Free Cash Flow 80M 100 Q4-2014 EPS at top end of guidance 80 85.9 (2) Production Testing PBT Margin 15.5% in 81.3 60 Q4-2014 (2) Fluids PBT…
  5. MARCH 2015 INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 5
    Balance Sheet and Liquidity COMPANY OVERVIEW Millions As Of 12/31/2014 TETRA CSI Compressco Consolidated TETRA Cash 14 34 48 Revolver Availability 135 205 340 Liquidity 149 239 388 Revolver Outstanding(1) 90 195 285 Current…
  6. MARCH 2015 INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 6
    Leveraging the value of the integrated business units and service offerings to the oilfield and other industries 7
  7. MARCH 2015 INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 7
    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…
  8. MARCH 2015 INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 8
    Fluids Services Financial Overview FLUIDS SERVICES Revenue ( millions) EBITDA ( millions) and Margin(1) 500 24% 437 120 23% 25% 450 21% 100 400 383 17% 101 20% 16% 80 92 350 335 15% 305 60 70 300 276 10% 40 52 44 250 20…
  9. MARCH 2015 INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 9
    Production Testing PRODUCTION TESTING Flowback 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 of…
  10. MARCH 2015 INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 10
    Production Testing Financial Overview PRODUCTION TESTING Revenue ( millions) EBITDA ( millions) and Margin (1) 300 110 36% 40% Q4-14 EBITDA 35% 90 28% 31% Margins of 27.4% 208 196 193 30% 200 70 21% 25% 140 64 21% 104 50…
  11. MARCH 2015 INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 11
    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…
  12. MARCH 2015 INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 12
    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% 250 195 40 47 14% 200 42 12% 30 41 10% 150 38 8% 100…
  13. MARCH 2015 INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 13
    CSI Compressco CSI COMPRESSCO LP Compressco acquired CSI, for 825M Compressco (founded 1998, acquired in 2004) Compressco Partners LP (IPO 2011, GSJK) Compressor Systems, Inc. (founded 1971, acquired 2014) CSI Compressco 44 years…
  14. MARCH 2015 INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 14
    Compression Value Chain Wellhead and Gas Gathering Gas Processing Storage and Distribution Pipeline and Transmission Hydrocarbon production Delivery & Processing Distribution options Transportation efficiency Wellhead = Single…
  15. MARCH 2015 INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 15
    Compression Industry Comparatively Stable Fleet HP Through Macro Variables(1) vs. Fleet HP Utilization(2) Swings in Commodity Prices 20% 100% Macro Variables (% change from 2008) 10% 90% 0% 80% Stable Sector of Energy Service…
  16. MARCH 2015 INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 16
    CSI Compressco Serves the Entire Compression Value Chain 2014 Revenue(1) 2014 Revenue(1) Flexible Compression Services Fleet Wide spectrum of size (HP) AMS, 7% Intl. Geographically dispersed in U.S. 16% Large scope of…
  17. MARCH 2015 INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 17
    CSI Compressco Services Fleet Compression Fleet is well balanced: size, Fleet Composition(2) geographic, oil/gas & application HP by Application HP by Resource Play VR, 2% 4th Largest Compression Fleet Wellhead, 18% Homogenous…
  18. MARCH 2015 INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 18
    CSI Compressco Business Model Provides Predictable Cash Flow Stream 2015 Guidance Revenue of 460M - 480M EBITDA of 125M - 135M Capital expenditures of 100M 83M Fleet Growth 3M Growth, Non-Fleet 14M Maintenance 19
  19. MARCH 2015 INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 19
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  20. MARCH 2015 INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 20
    Focus On Free Cash Flow 2015 vs 2014 Sources & Uses of Cash ARO Cash Expenditures 2013 2014 2015* ARO expenditures 53M reduction (20) (40) In Millions Non-CCLP capex 25M reduction (60) (80) CCLP distributions to TTI…
  21. MARCH 2015 INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 21
    CSI Compressco Distribution Trend Quarterly Distribution (Annualized) 1.94 Focused on distribution growth while 1.95 maintaining strong balance sheet 1.84 1.85 1.81 1.75 1.78 Consistent and recurring cash flows 1.75…
  22. MARCH 2015 INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 22
    CSI Compresscos Distribution Impact to TETRA TETRA owns 42% of CSI Compressco units and 2% GP interest As the general partner, TETRA is entitled to IDRs (Incentive Distribution Rights) TETRAs cash distributions from CSI…
  23. MARCH 2015 INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 23
    Balance Sheet TETRA has secured financing to address 90M notes maturing on April 30, 2015 CSI Compresscos debt is long-term in nature Ample liquidity to fund growth for CCLP and manage through downturn for TTI TETRA leverage ratio is…
  24. MARCH 2015 INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 24
    TETRA & CSI Compressco as Investment Opportunities 2010: 0.94 Billion(1) 2014: 1.32 Billion (1) E&P Revenue Offshore 22% Services 15% Fluids, PT and CSI Compressco Fluids, PT and Offshore 49% CSI Services Compressco 29%…
  25. MARCH 2015 INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 25
    TETRA Technologies, Inc. and CSI Compressco LP March 2015
  26. MARCH 2015 INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 26
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  27. MARCH 2015 INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 27
    Potential Impact of Increased Distributions FINANCIAL OVERVIEW Opportunity to Create Significant Shareholder Value from CSI Acquisition CSI Compressco Valuation at Various Declared Distribution Levels Annualized Distribution 1.80 1.90…
  28. MARCH 2015 INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 28
    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 May…
  29. MARCH 2015 INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 29
    Leadership Team LEADERSHIP AT TETRA Highly qualified management with a broad range of experience from large multi-national and small service companies Keith Schilling SVP Energy Services Tim Knox President of CSI Compressco Joined…
  30. MARCH 2015 INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 30
    Non-GAAP Financial Measures DISCLOSURE This presentation includes non-GAAP financial measures EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, enterprise value, distributable cash flow, distribution coverage ratio and debt to Adjusted…
  31. MARCH 2015 INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 31
    Appendix FINANCIAL OVERVIEW (thousands, except per share amounts) Market Capitalization: TTI Market price per share on 3/16/2015 5.34 Shares outstanding (in thousands) as of 02/27/2015 79,650 CSI Compressco LP Market Capitalization…
  32. MARCH 2015 INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 32
    Appendix FINANCIAL OVERVIEW Reconciliation of EBITDA Reconciliation of EBITDA Production Testing Offshore Services in millions 2010 2011 2012 2013 2014 in millions 2010 2011 2012 2013 2014 Income(Loss) before Taxes Income(Loss)…
  33. MARCH 2015 INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 33
    Appendix FINANCIAL OVERVIEW CSI Compressco Adjusted EBITDA Reconciliation CSI CSI 2014 Unaudited 2014 In Millions Compressco Pro-Forma In Millions 2010 2011 2012 2013 2014 (1/1/14 to Q4 2014 Unaudited 8/3/14) Revenue 283 208…
  34. MARCH 2015 INVESTOR PRESENTATION – Tetra Technologies Inc. – slide 34
    TETRA Technologies, Inc. and CSI Compressco LP March 2015

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