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Analyst Meeting 2015 – Tetra Technologies Inc.

Tetra Technologies Inc. · Nov 16, 2015 · 102 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. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 1
    CEO Message Stu Brightman D EDICATED TO THE CRE UR T UR N SN S R R ER E T R TOM OM E RESR S U SU S C T E t o C LOY C C Z E Z EO O to R IV LOY M PM P E EESE S E E R R RI…
  2. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 2
    Safety Moment Hand/Finger Injury Rates - YTD 2015 0.60 0.47 0.50 0.37 0.36 0.40 0.32 0.28 0.30 0.24 0.24 0.20 0.21 0.20 0.10 0.00 Jul-15 Apr-15 Sep-15 Jan-15 Feb-15 Mar-15 Jun-15 May-15 Aug-15…
  3. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 3
    Strong 2015 Financial Performance Q3 In Millions YTD Q3 2015 2014 2015 2014 305 305 Revenue(1) 870 758 - % Change 15% 75 57 Adjusted EBITDA(1) 200 123 32% % Change 63% 25% 19% % of Revenue 23% 16% 21 12 Adjusted Profit…
  4. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 4
    TETRAs Improving Credit Profile In Millions Debt and Liquidity(1) Leverage Ratio(2) 500 430 4.00x 397 3.38x 379 395 3.50x 400 358 358 2.94x 2.88x 331 3.00x 2.73x 2.42x 2.36x 300 2.50x 2.02x 2.00x 190 178 200 149 166 1.50x…
  5. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 5
    Realizing Our Vision WHERE WE WERE WHERE WE ARE WHERE WERE GOING Transformation of TETRA Long-Term Fluids Strategy Allocated Capital to Areas of Strength and Divested Non-Core Businesses DEDICATED TO THE CRE Enhanced…
  6. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 6
    Transformation and Evolution 2007 COMPRESSION Where We Were 83M 8% PRODUCTION TESTING 93M WHERE WE WERE OFFSHORE SERVICES 9% 341M 34% 55% Total Offshore Svcs & FLUIDS MRI 283M 28% Revenue MARITECH 214M 21%…
  7. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 7
    Transformation and Evolution Key Milestones Purchased TETRA IPO of Completed Acquisition of Guiding Towards Chemicals Europe Compressco Acquisition Compressor 80M+ of FCF, of 3 PT Systems, Inc. 1.00/share Businesses Acquired…
  8. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 8
    Transformation and Evolution 1 and 2 in all key TTM 2015 services segments As of 9/30/15 millions OFFSHORE One of the largest Where We Are Today SERVICES North American 128M production testing 10% companies WHERE WE WERE The…
  9. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 9
    Successfully Executing Significant Competitive Allocation of Capital Two Separate Capital Advantage in our Two Towards Higher Structures to Support Largest and Core Return Fluids and And Grow the Two Businesses Compression Core…
  10. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 10
    Uniquely Positioned for Continued Growth Solid Financial Results, Strong 77% of Revenue is from Free Cash Flow Generation, Segments with Competitive Debt Reductions, Strong Advantages with Smaller Balance Sheet Competitive…
  11. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 11
    COO Perspective Going Beyond the Tactical Execution Joseph Elkhoury D EDICATED TO THE CRE UR T UR N SN S R R ER E T R TOM OM E RESR S U SU S C T E t o C LOY C C Z E Z EO O to R IV…
  12. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 12
    The Tactical Execution Journey What did we Why did we What did Can we achieve do it we do sustain it D EDICATED TO THE CRE T UR UR 13 N SN S R R ER E T R TOM OM E RESR S U SU S C T E t o C LOY C…
  13. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 13
    YTD Q3 2015 Key achievements OVER OVER OVER TARGETING 55M 38% 20% 100M in documented Reduction in OPEX Total Headcount In Revenue from cost savings dollars spend reduction in 2015 New Business From cost reduction Over 13%…
  14. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 14
    The Outlook entering 2015 Oil prices to average The continued drop in The 2014 fourth Prolonged oil price 70 to 80 in 2015 Oil prices to reduce quarter O&G equities weakness to have visibility to E&P spend sell-off to change severe…
  15. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 15
    The Impact has been severe Over 55% drop in Oil Continued lack of Lower for Longer Little M&A activity prices since last year, visibility to 2016 E&P (other than HAL/BHI, mainly driven by: Budgets and Spend All seem to have…
  16. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 16
    What did we do Started earlier with our Tactical Execution Continued our pro-active engagement Aggressively drove the process at all levels Assigned tasks and meaningful cost targets Monitored the progress and tracked the…
  17. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 17
    The Tactical Execution playbook Fix financial performance Restore Improve utilization Profitability Reposition crews Focus on profitable jobs Optimize footprint Eliminate Streamline operations Redundancy Fit equipment to market…
  18. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 18
    YTD Q3 2015 Documented impact 2015 PBT To Be Achieved Restore Profitability Achieved 2.8M 2015 PBT To Be Achieved Eliminate Redundancy Achieved 24.2M 2015 PBT To Be Optimize Achieved Costs Achieved…
  19. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 19
    Eliminating Redundancy (example) Headcount reductions 20% Total HC reduction in 2015 (24% from peak 2014) 15% G&A HC reduction in 2015 (18% from peak 2014) 5000 Headcount 4000 24% Total HC reduction from peak 2014 3000 28%…
  20. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 20
    Optimizing Costs (examples) Impact from some documented savings and cost avoidance actions Achieved by 9/30/15 To be achieved Property Price Reductions Lube oil savings for Compression fleet Acid Pricing savings…
  21. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 21
    Can we sustain these results How can we go beyond the Tactical Execution D EDICATED TO THE CRE T UR UR 22 N SN S R R ER E T R TOM OM E RESR S U SU S C T E t o C LOY C C Z E Z EO O to R…
  22. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 22
    What was our reputation* Commodity services Well Maintained Equipment Safety focused Good Service quality Not cheap Little differentiation * Feedback from 2014 Customer interviews and the 2014 PT customer survey 23 D…
  23. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 23
    The Tactical Execution playbook Fix financial performance Restore Improve utilization Profitability Reposition crews Focus on profitable jobs Optimize footprint Eliminate Streamline operations Redundancy Fit equipment to market…
  24. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 24
    Can these tactics lead to a Continuous Improvement Framework D EDICATED TO THE CRE T UR UR 25 N SN S R R ER E T R TOM OM E RESR S U SU S C T E t o C LOY C C Z E Z EO O to R IV LOY M PM…
  25. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 25
    Tactics to Continuous Improvement Framework Market analysis Safety Utilization Training Service delivery Stop Loading Communication Restore Portfolio Profitability management Risk Assessment Resources Requirements Diversity…
  26. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 26
    Can this Framework be part of our Culture D EDICATED TO THE CRE T UR UR 27 N SN S R R ER E T R TOM OM E RESR S U SU S C T E t o C LOY C C Z E Z EO O to R IV LOY M PM P E EESE S…
  27. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 27
    Framework to Culture Market analysis Safety Utilization Training Service delivery Stop Loading Communication Restore Portfolio Profitability management Risk Assessment Resources Requirements Diversity Policies Suppliers…
  28. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 28
    Our Customer-Centric Culture DEDICATED TO THE CRE D EDICATED TO THE CRE T UR UR 29 N SN S R R ER E T R TOM OM E RESR S U SU S C T E t o C LOY C C Z E Z EO O to R IV LOY M PM P E…
  29. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 29
    Our behaviors should help drive significant change D EDICATED TO THE CRE T UR UR 30 N SN S R R ER E T R TOM OM E RESR S U SU S C T E t o C LOY C C Z E Z EO O to R IV LOY M PM P E…
  30. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 30
    Our Key Behaviors Build internal and external customer relationships Understand customer needs to provide solutions Exceed the customers expectations Grow revenue with new business opportunities Drive to ZERO incidents Stop the…
  31. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 31
    We are DEDICATED TO THE CUSTOMER R DEDICATED TO THE DRIVE TO ZER C DEDICATED TO THE RETURNS E DEDICATED TO THE EMPLOYEES Our TETRA Customer-Centric framework is allowing us to drive key Behaviors to build an Accountability…
  32. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 32
    DEDICATED TO THE CRE (examples) Introduced multiple Products and Services that provide Fit- For-Customer Solutions Achieved diversification through targeted Customer tactics TTI HSE KPIs - YTD 2015 TETRA Incident Cost 1.80…
  33. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 33
    DEDICATED TO THE CRE (examples) Aggressively pursued cost buckets and drove cost avoidance Achieved good financial performance in difficult market conditions Secured financing with respected partner as we continue to execute our…
  34. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 34
    Can we sustain our performance Stay laser-focused with our Tactical Execution Manage what we control to safeguard and improve margins Leverage our Franchise to continue to diversify our customer base Continue to invest in…
  35. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 35
    Fluids Jim Funke, Vice President and General Manager Keith Schilling, Senior Vice President D EDICATED TO THE CRE UR T UR N SN S R R ER E T R TOM OM E RESR S U SU S C T E t o C LOY C C Z E Z EO…
  36. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 36
    Highlights Vertically integrated service provider of Clear Brine Fluids Significant investment and footprint Diversity of revenue Delivering customer solutions D EDICATED TO THE CRE T UR UR 37 N SN S R R ER E T…
  37. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 37
    Fluids Chemicals/Completion Fluids Only vertically integrated service provider globally Seamless supply channel from manufacturing plants to CBF blending facilities Significant infrastructure Strong global competitor Advantaged…
  38. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 38
    Calcium Chloride Strengths Leading producer and marketer o Europe o North America Significant footprint and capabilities Amboy, California Plant o Manufacturing o Logistics Diverse customer base o Oil and Gas: Drilling and…
  39. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 39
    Brominated Clear Brine Fluids Strengths Long-term agreements o Bromine supply o Toll manufacturing State-of-the-art manufacturing plant Unique technologies o Patented manufacturing processes o Rework fluids A leading global…
  40. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 40
    Recent Capital Improvements West Memphis, AR Kokkola, Finland El Dorado, AR Expanded CaBr capacity Replaced filter press Added brine storage tank Production Reduced filter cake 66% Increased utilization Storage Resulted in…
  41. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 41
    Calcium Chloride Footprint Leading supplier in Europe and North America Production Capacity 1.5 Million Tons Liquid 200,000 Tons Flake Liquid CaCl2 Plant Liquid/Dry CaCl2 Plant Third Party Supply Agreements New Supply…
  42. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 42
    Brominated Clear Brine Fluids Footprint Long-term bromine supply agreement North Sea Stable, predictable cost advantage Middle East Gulf of Mexico Co-producer swap and toll agreements Brazil TETRAs markets for CBFs…
  43. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 43
    Chemicals/Fluids North America Footprint Strong Market Network and Presence 280 Leased Cars12 Barges13 Terminals 5 Warehouses Liquid CaCl2 Plant Liquid/Dry CaCl2 Plant Liquid Terminal Dry Terminal CBF Plant D EDICATED…
  44. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 44
    Chemicals Competencies Significant market presence o Europe and North America Q3 2015 Revenue YTD o Brominated CBFs and CaCl2 Water Balanced revenue diversification Management Oil & Gas 12% Long-term secure supply agreements…
  45. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 45
    Value Proposition Utilize global network Cost advantaged delivery Bundled service offerings Differentiated technology advantage D EDICATED TO THE CRE T UR UR 46 N SN S R R ER E T R TOM OM E RESR S…
  46. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 46
    Completions Fluids Invested in Technology Invested in technological differentiation across the fluids business Technology Center proves the focus on research and development TETRA CS Neptune System - potential to change offshore…
  47. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 47
    Recent Innovative Product Introductions TETRA CS Neptune Completion o Developed as customized solution Fluids o Zinc free solution for deepwater and high-pressure wells TETRACleanTM o Environmentally friendly displacement system…
  48. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 48
    Fluid Management Around the Wellhead 4. 3. 1. Water Transfer Flow Line 2. BioRid / TETRAClean Treatment 2. 3. Blending Manifold 1. 4. Working Tanks 5. Well Live Water Transfer 5. 6. 6. Flow Back 7. Recycle 7. 8. Water…
  49. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 49
    Market Infrastructure Leverage international footprint for expansion Fluid management around the wellhead North Sea Bundling services Utilize differentiated technology Solid position for activity recovery Middle East Gulf…
  50. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 50
    Fluids Financial Overview Revenue 2015 YTD Revenue Profile 140 123.0 116.7 120 110.3 110.6 105.1 105.3 100.2 99.6 99.3 94.0 100 88.8 80 International 60 28% 40 20 0 United States Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 72%…
  51. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 51
    Production Testing Keith Schilling, Senior Vice President D EDICATED TO THE CRE UR T UR N SN S R R ER E T R TOM OM E RESR S U SU S C T E t o C LOY C C Z E Z EO O to R IV LOY M PM P…
  52. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 52
    Highlights Balanced domestically and internationally Saudi Arabia and Permian Basin represent biggest areas of concentration Customer base is the better capitalized operators that value HSE&Q Focused on completions that will…
  53. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 53
    Production Testing Frac Flowback Production Testing Optima Early Production Facilities Remove residual sand Access and evaluate Offshore Rig Cooling Deliver engineered and debris to allow well performance suppresses heat customized…
  54. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 54
    Service and Technology Differentiators Focused on regions where multiple products and services offerings or Global Operations long-term contracts are available Innovative technology protects the rig and personnel Rig Cooling Global…
  55. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 55
    Focused on Key Markets United States one of the largest production testing companies operating in all shale basins YTD 2015 Geographic Footprint Saudi Arabia 100% owned, 12 year presence, multiple onshore/offshore contracts…
  56. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 56
    Customer Base TETRAs HSE&Q standards represent a competitive advantage Balanced customer base: 2015 Q3 Production Testing o National oil companies Revenue Mix by Customer o Majors o Independents 15% 17% National Oil o Service…
  57. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 57
    Financial Performance Revenue(In Millions) Strong Cost Discipline and Customer Diversification Tactics North America Rig Count -58% Revenue (YTD 2015 Q3) -26% YTD Adjusted EBITDA Margins(1) 2014 2015 17.8% 18.0% Decremental Margins…
  58. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 58
    Offshore Services Peter Pintar, Senior Vice President D EDICATED TO THE CRE UR T UR N SN S R R ER E T R TOM OM E RESR S U SU S C T E t o C LOY C C Z E Z EO O to R IV LOY M PM P E…
  59. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 59
    Highlights Leading single source provider of offshore well abandonment Ability to reduce/flex costs and decommissioning services in the Gulf of Mexico 1 or 2 in all our key sectors Largest provider of heavy lift Cash flow positive…
  60. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 60
    Offshore Services Turnaround Strengthened link across sales and operations Restore Profitability Inserted higher profitability jobs into schedule Eliminate Reduced management layers, combined operating units Redundancy…
  61. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 61
    Gulf of Mexico Shelf Decommissioning Market Multi-Year Known Market D EDICATED TO THE CRE T UR UR Source: Decomworld Offshore Decommissioning Report 2015 62 N SN S R R ER E T R TOM OM E RESR S U SU…
  62. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 62
    Business Model Heavy Lift Cutting Downhole Diving Consulting Services Services Services Superior HSE&Q culture and operating performance Advanced engineering and project management capability Unique integrated service…
  63. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 63
    Financial Performance A strong culture of cost discipline with a variable cost model Q3 In Millions YTD Q3 2015 2014 2015 2014 38 62 Revenue 85 153 (39)% % Change (44)% 30 58 Adjusted Operating Costs(1) 79 146 (48)% % Change…
  64. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 64
    CSI Compressco LP Tim Knox, President and Director D EDICATED TO THE CRE UR T UR N SN S R R ER E T R TOM OM E RESR S U SU S C T E t o C LOY C C Z E Z EO O to R IV LOY M PM P E EESE…
  65. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 65
    Highlights Tied to production and consumption, not drilling Predictable revenue and profit Stable asset utilization Continued opportunities for growth 66
  66. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 66
    Company Profile CSI Compressco LP (NASDAQ: CCLP) Stock Market / Symbol NASDAQ: CCLP 44 year history in natural gas compression industry Over 800 employees and 35 locations Recent Unit Price(1) 14.50 Market Capitalization(1)…
  67. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 67
    Business Model YTD September 2015 Vertically Integrated Compression Provider YTD September 2015 Revenue Contribution Margin Compression Services AMS o Fee based service, utilizing our assets and personnel Equipment 2% o Equipment…
  68. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 68
    Markets We Serve Wellhead Gas Lift Processing, Storage and Midstream Gathering Consumer Vapor Recovery Pipeline Transportation Compression is required at the Compressors gather natural Compression is utilized in the In 2014,…
  69. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 69
    Compression Services Driven by Production and Consumption Consumption in the U.S. continues to increase U.S. produces roughly 72,000 MMSCFD, requiring roughly 19 million Hp for production alone(5) Compression fleet…
  70. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 70
    Compression Services Fleet Composition Business line with the largest portion of revenue, Utilized Fleet Composition(1) highest contribution margin, and most stable cash Hp by Application Hp by Hp Range flow for the partnership…
  71. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 71
    Compression Services Market Position Revenue Generating Hp(3) 4,000 3,618 3,500 3,000 2,500 In Thousands 4th largest fleet (Hp) 2,000 1,411 1,338 1,500 951 1,000 510 500 11% GCA market share U.S. and Canada(1) 0 9%…
  72. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 72
    Compression Services Fleet Deployment Continued investment in midstream services fleet 90% utilization of 800+ Hp fleet Highest profitability comes Wellhead Gas Lift Gathering - Midstream from 800+ Hp segment of Vapor…
  73. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 73
    Compression Services Fleet Growth Hp by Region International 4% Since 2012: East 10% o Invested over 350 million o Added over 300,000 Hp South Texas Low maintenance capital 25% Mid-Continent o 14 million in 2015 budget for over…
  74. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 74
    Equipment Sales Experienced in building for many compression applications Niche business of engine drive oil field pump systems Sinkontai Pump Station Myanmar Project lead-time lends to visibility, allows Southeast Asia Crude…
  75. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 75
    Growth Strategy Strategic geographic footprint expansion Strategic customer base expansion Acquisition Unwavering commitment to quality equipment Focus on long-term value proposition Allocate CapEx to most highly utilized…
  76. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 76
    Distribution Trend Distributable Cash Flow and Annualized Quarterly Distributions(1) 100 2.45 90 Price in 90 Millions 80 80 Flow &inUnit 2.25 70 70 Millions 60 Distribution Per Unit 60 DCFinCash…
  77. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 77
    Financial Overview Business model provides relatively predictable cash Revenue(2) (In Millions) flow, not as susceptible to commodity price swings When compared to many other oil field services 180 144.5 150 133.4 124.8 126.5…
  78. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 78
    Approach to Downturn Keep assets utilized Serve new customers Serve existing customers with additional products and services Grow market share Aggressively attack costs D EDICATED TO THE CRE T UR UR 79 N SN…
  79. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 79
    Credit Profile Debt and Liquidity Leverage Ratio 700 6.00x 578 588 600 540 553 510 5.00x 4.41x 4.11x 4.13x 4.25x 500 4.00x 4.00x 400 3.00x 300 256 239 217 200 175 2.00x 200 100 1.00x - 0.00x Liquidity Debt Leverage…
  80. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 80
    Financial Overview Elijio Serrano Chief Financial Officer D EDICATED TO THE CRE UR T UR N SN S R R ER E T R TOM OM E RESR S U SU S C T E t o C LOY C C Z E Z EO O to R IV LOY M PM P…
  81. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 81
    Strong 2015 Financial Performance Q3 In Millions YTD Q3 2015 2014 2015 2014 305 305 Revenue(1) 870 758 - % Change 15% 75 57 Adjusted EBITDA(1) 200 123 32% % Change 63% 25% 19% % of Revenue 23% 16% 21 12 Adjusted Profit…
  82. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 82
    TETRA Earnings Trending Up TETRA Adjusted EBITDA(1) + CSI Compressco Distributions Trailing Twelve Months - Millions 190 170 150 130 110 90 70 13-Q3 13-Q4 14-Q1 14-Q2 14-Q3 14-Q4 15-Q1 15-Q2 15-Q3 TETRA adj.…
  83. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 83
    Two Distinct & Separate Capital Structures Millions As of 09/30/2015 TETRA CSI Compressco Unrestricted Cash 7 18 Revolver Availability(1) 159 157 Liquidity(2) 166 175 Revolver Outstanding(1) 66 243 Current Portion of LT Debt 90…
  84. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 84
    TETRAs Improving Credit Profile In Millions Debt and Liquidity(1) Leverage Ratio(2) 500 430 4.00x 397 3.38x 379 395 3.50x 400 358 358 2.94x 2.88x 331 3.00x 2.73x 2.42x 2.36x 300 2.50x 2.02x 2.00x 190 178 200 149 166 1.50x…
  85. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 85
    No Significant Short-Term Maturities, Projected for 125M Refinancing TETRA excl. CSI Compressco CSI Compressco 400 400 350 350 300 300 250 250 200 200 150 150 100 100 50 50 0 0 2015 2016 2017 2018 2019 2020 2021…
  86. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 86
    Capital Allocation Philosophy Organic growth targeting mid-teen returns and quick payback Reduce outstanding debt, leverage ratio targets: o TETRAs 2.0X . but comfortable increasing to 2.5X for the appropriate investments o CSI…
  87. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 87
    Management Perspective - Valuation TETRA Projected EBITDA of the individual business units (Fluids, Production Testing and Offshore Services) at peer multiples (Adjusted for corporate G&A, ebitda equivalent) Adjusted for TETRAs…
  88. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 88
    Closing Remarks Stu Brightman D EDICATED TO THE CRE UR T UR N SN S R R ER E T R TOM OM E RESR S U SU S C T E t o C LOY C C Z E Z EO O to R IV LOY M PM P E EESE S E E R R RI…
  89. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 89
    Closing Comments Key themes for TETRA in 2015 and beyond: o Strong free cash flow generation o Strength in fluids o CCLP provides stable cash flow o Flexible Offshore services cost structure o Production testing geographically…
  90. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 90
    Closing Comments Geographically diversified with < 34% of revenue dependent on U.S. onshore shales Technology focused developing differentiated, value-added products Diverse group of blue chip customers in oil and gas, industrial…
  91. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 91
    Closing Comments Ability to execute Demonstrated results Strong leadership Delivers results D EDICATED TO THE CRE T UR UR 92 N SN S R R ER E T R TOM OM E RESR S U SU S C T E t o C LOY C C Z…
  92. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 92
    Appendix D EDICATED TO THE CRE T UR UR 93 N SN S R R ER E T R TOM OM E RESR S U SU S C T E t o C LOY C C Z E Z EO O to R IV LOY M PM P E EESE S E E R R RI V E D…
  93. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 93
    GAAP Reconciliations T TETRA Consolidated - Adjusted EBITDA Reconciliation '( in Millions) E Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Income (Loss) Before Taxes (5.1) 3.2 (4.4) 18.7 (17.6) (10.7) (2.5)…
  94. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 94
    GAAP Reconciliations TETRA excl. Maritech- Adjusted EBITDA Reconciliation '( in Millions) Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Income (Loss) Before Taxes 17.8 8.1 19.3 34.1 2.6 (4.1) 8.2 (1.9) (88.9)…
  95. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 95
    GAAP Reconciliations TTI Free Cash Flow Reconciliation Q1-14 Q2-14 Q3-14 Q1-15 Q2-15 Q3-15 TTI Consolidated Cash from operations 36.1 4.6 11.3 27.8 54.3 36.1 ARO settlements 13.3 16.5 10.5 0.6 3.8 0.8 Capital Expenditures, net of…
  96. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 96
    GAAP Reconciliations TTI excluding CCLP Liquidity Reconciliation Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Senior Notes 305.0 305.0 305.0 305.0 305.0 265.0 265.0 Revolver Outstanding 52.8 74.2 125.3 90.1 91.7 92.9 66.1 Total Debt…
  97. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 97
    Reconciliations Fluids - Adjusted EBITDA Reconciliation '( in Millions) Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Income (Loss) Before Taxes 17.0 17.8 20.9 13.7 18.5 17.1 16.5 12.6 17.7 32.6 33.2 Interest…
  98. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 98
    Reconciliations D EDICATED TO THE CRE T UR UR 99 N SN S R R ER E T R TOM OM E RESR S U SU S C T E t o C LOY C C Z E Z EO O to R IV LOY M PM P E EESE S E E R R RI V…
  99. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 99
    Reconciliations Distributable Cash Flow (Thousands,except unit price) YTD Sept In Millions 2015 Market Capitalization Reconciliation: Net Income 5 CCLP Provision for Income Taxes 1 Depreciation and Amortization 61 Market price…
  100. Analyst Meeting 2015 – Tetra Technologies Inc. – slide 100
    Appendix D EDICATED TO THE CRE T UR UR 101 N SN S R R ER E T R TOM OM E RESR S U SU S C T E t o C LOY C C Z E Z EO O to R IV LOY M PM P E EESE S E E R R RI V E D…

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