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JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc.

Tetra Technologies Inc. · Jun 27, 2016 · 43 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. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 1
    TETRA Technologies, Inc. CSI Compressco LP June 2016
  2. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 2
    Corporate Profiles Stock Market NYSE: TTI NASDAQ: CCLP Recent Share Price(1) 5.81 7.92 Market Capitalization(1) 467.4M 262.8M Enterprise Value(1) 760.3M 843.3M Number of Shares/ 80.4M 33.2M Units Outstanding(2) Average…
  3. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 3
    Recent Accomplishments TETRA Completed 60M equity offering Free cash flow of: o Q1-2016 - 18M(1) o Total year 2016 guidance of 30M-50M Leverage ratio of 2.08X (pre-equity offering) Next CS Neptune Gulf of Mexico project scheduled…
  4. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 4
    Business Profile 2015 OFFSHORE SERVICES 122M 11% PRODUCTION TESTING 134M COMPRESSION 12% 458M 40% FLUIDS 424M 37% Compression, Fluids and PT represent 89% of revenue 5
  5. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 5
    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 Introducing…
  6. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 6
    Fluids - 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…
  7. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 7
    Fluids - 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 agreement Brazil TETRAs markets for…
  8. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 8
    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 Warehouse CBF Plant 10
  9. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 9
    Fluids Financial Overview Revenue (In Millions) 2015 Revenue Profile 150 123 117 105 105 110 111 99 91 100 59 International 50 28% 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 United States 2014 2015 2016 72% Adjusted EBITDA (In…
  10. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 10
    Production Testing
  11. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 11
    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…
  12. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 12
    Production Testing Focused on Key Markets United States one of the largest 2015 Geographic Revenue Footprint production testing companies operating in all shale basins Saudi Arabia 100% owned, 12 year presence, multiple…
  13. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 13
    Production Testing Financial Performance Revenue (In Millions) Strong Cost Discipline and Customer Diversification Tactics 60 50 57 50 44 42 37 US America Rig Count(1) -64% 40 35 33 29 30 20 Revenue 2016 Q1 -54% 20…
  14. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 14
    Offshore Services
  15. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 15
    Offshore Service Business Model Cutting Downhole Consulting Heavy Lift Diving Services Services Services Ability to reduce/flex costs 1 or 2 in all our key sectors Cash flow positive in the valley of the cycle Light asset…
  16. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 16
    CSI Compressco LP
  17. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 17
    Q1-2016 Highlights Cash Flow Positive Operations in Challenging Business Climate Q1 2016 Revenue of 81.7M Q1 2016 pre-distribution free cash flow [1] of 13.7M Q1 2016 adjusted EBITDA [1] of 25.4M Q1 2016 total distribution [1] of…
  18. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 18
    Compression Overview Physical Requirement for Compression is Disassociated from the Price of Oil and Natural Gas Compression is required multiple times throughout the value-chain from production to consumption Diversity of customer…
  19. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 19
    CCLP Business Model Vertically Integrated Flexibility for a Wide Range of Customer Compression Needs Fee-based services contracts utilizing CCLP Portion of Common management, inventory and compression services fleet equipment…
  20. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 20
    Compression Services Stability Most Profitable Product Line is also Most Stable Product Line Fleet Utilization and Composition [1] Fleet Application [1] Natural gas consumption in the U.S. continues to increase 0-100 Hp Compression…
  21. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 21
    Compression Services Geographic Diversity Operating in the Most Prolific Producing Basins in the U.S.A. HP Distribution by CCLP Region [1] Bakken International 4% East 10% South Texas 26% Niobrara Mid-Con Utica 18%…
  22. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 22
    Distribution and Cash Management Business Model Generates Cash to Cover Operations and Distributions CCLP Cash Flow Distribution Coverage Ratio [3] and Annualized Quarterly Distributions per Unit [3] 180 1.80x 3.50 160 Change in…
  23. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 23
    Market Position Compression Services Competitive Landscape 4th Largest Revenue Generating Hp [3] Compression Services 4,000 Fleet by Hp 3,500 3,354 3,000 11% GCA Market share U.S. and Canada [1] Hp in thousands 2,500…
  24. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 24
    Covenants, Debt & Liquidity Amended Credit Facility Leverage Covenants to Provide Additional Flexibility Minimal CapEx required to maintain cash flows Positive and predictable free cash flow generation No debt maturing before 2019…
  25. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 25
    Financial Overview
  26. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 26
    TETRA Earnings Trend TETRA Only Adjusted EBITDA(1) + CSI Compressco Distributions Trailing Twelve Months - Millions 190 170 150 130 110 90 70 TETRA adj. EBITDA CCLP Distributions Cumulative Impact of…
  27. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 27
    Two Distinct & Separate Capital Structures In Millions As of 3/31/2016 TETRA CSI Compressco Unrestricted Cash 16 10 (1) Brorrowing Capacity 129 55 Liquidity(2) 144 65 Revolver Outstanding 21 234 Current Portion of LT Debt 0 0…
  28. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 28
    TETRA Equity Issuance Completed equity offering of 11.5M shares at 5.50/share on June 16 60.4M of proceeds to retire 30M secured notes and 30M to reduce revolver balance simplifying our debt capital structure and reducing debt…
  29. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 29
    TETRA Debt Update Series of steps to simplify and improve our capital structure Tendered for and retired at par 100M of unsecured senior notes Q2-016 Equity proceeds fully retired our secured senior notes TETRA remaining debt consists…
  30. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 30
    TETRAs Credit Profile Debt and Liquidity(1) Leverage Ratio(2) 500 4.00x 430 450 3.38x 395 397 3.50x 379 400 358 358 2.94x 2.88x 331 3.00x 2.73x 350 293 2.42x 2.36x In Millions 275 2.50x 300 2.02x 2.08x 2.00x 1.86x 250…
  31. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 31
    No Debt Maturities Until 2019 TETRA excl. CSI Compressco CSI Compressco 400 400 350 350 300 300 In Millions In Millions 250 250 200 200 150 150 100 100 50 50 0 0 2015 2016 2017 2018 2019 2020 2021 2022 2015 2016…
  32. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 32
    2016 Outlook Initial signs of improving North America onshore environment Expecting uptick in major GoM projects in H2 Guiding towards 30M to 50M positive free cash flow in 2016 for TETRA Generated 18.5 M TETRA free cash flow in 2016…
  33. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 33
    TETRA Technologies, Inc. CSI Compressco LP June 2016
  34. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 34
    Non-GAAP Financial Measures This presentation includes non-GAAP financial measures, Adjusted EBITDA, Adjusted EBITDA margin, enterprise value, distributable cash flow liquidity, distribution coverage ratio and debt to Adjusted EBITDA.…
  35. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 35
    Non-GAAP Reconciliations TETRA Consolidated - 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 Q4-15 Q1-16 Income (Loss) Before Taxes (5.1) 3.2 (4.4) 18.7 (17.6)…
  36. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 36
    Non-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 Q4-15 Q1-16 Income (Loss) Before Taxes 17.8 8.1 19.3 34.1 2.6 (4.1)…
  37. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 37
    Non-GAAP Reconciliations TTI Free Cash Flow Reconciliation Q1-14 Q2-14 Q3-14 Q4-14 2014 Q1-15 Q2-15 Q3-15 Q4-15 2015 Q1-16 TTI Consolidated Cash from operations 36.1 4.6 11.3 56.7 108.7 27.8 54.3 36.1 77.7 195.9 25.3 ARO…
  38. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 38
    Non-GAAP Reconciliations Liquidity in millions Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 TTI excluding CSI Compressco TTM EBITDA per 151.8 141.9 129.5 136.8 140.8 155.9 168.9 164.8 140.7 Bank Agreement Long Term Debt…
  39. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 39
    Non-GAAP Reconciliations Fluids - Adjusted EBITDA Reconciliation '( in Millions) Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Income (Loss) Before Taxes 18.5 17.1 16.5 12.6 17.7 32.6 33.2 (2.7) (0.4) Interest Income/Expense…
  40. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 40
    Market Capitalization & Enterprise Value (thousands, except per share amounts) Market Capitalization: TTI Market price per share on 6/22/2016 5.81 Shares outstanding as of 5/10/2016 80,442 Market Capitalization 467,368…
  41. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 41
    Non-GAAP Reconciliations Distributable Cash Flow in millions Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Income (loss) before taxes 3.7 0.9 3.9 5.3 0.6 (0.1) 3.4 2.4 1.5 2.0 (152.6) (104.7) Depreciation…
  42. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 42
    Non-GAAP Reconciliations Adjusted EBITDA in millions Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Income (loss) before taxes 3.7 0.9 3.9 5.3 0.6 (0.1) 3.4 2.4 1.5 2.0 (152.6) (104.7) Depreciation and…
  43. JP Morgan Inaugural Energy Equity Investor Conference – Tetra Technologies Inc. – slide 43
    Non-GAAP Reconciliations Liquidity & Leverage in millions Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Market Capitalization Reconciliation Consolidated TTM EBITDA per Bank Agreement 136.7 138.5 135.9 129.0 122.4 and Units in thousands CCLP Senior…

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