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August 2016 Company Presentation – Tetra Technologies Inc.

Tetra Technologies Inc. · Aug 31, 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. August 2016 Company Presentation – Tetra Technologies Inc. – slide 1
    TETRA Technologies, Inc. CSI Compressco LP August 2016
  2. August 2016 Company Presentation – Tetra Technologies Inc. – slide 2
    Corporate Profiles Stock Market NYSE: TTI NASDAQ: CCLP Recent Share Price(1) 5.83 8.62 Market Capitalization(1) 540.5M 286.4M Enterprise Value(1) 759.5M 855.6M Number of Shares/ 92.7M 33.2M Units Outstanding(2) Average…
  3. August 2016 Company Presentation – Tetra Technologies Inc. – slide 3
    Recent Accomplishments TETRA Free cash flow of: Q2 YTD-2016 - 10M(1) Total year 2016 guidance of 30M-50M Leverage ratio of 2.27X on covenant of 4.00X Issued 60M of equity to reduce debt Amended covenants to 4.00X from 6/30/2016 to…
  4. August 2016 Company Presentation – Tetra Technologies Inc. – slide 4
    Transformation and Evolution 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. August 2016 Company Presentation – Tetra Technologies Inc. – slide 5
    Fluids
  6. August 2016 Company Presentation – Tetra Technologies Inc. – slide 6
    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…
  7. August 2016 Company Presentation – Tetra Technologies Inc. – slide 7
    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…
  8. August 2016 Company Presentation – Tetra Technologies Inc. – slide 8
    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…
  9. August 2016 Company Presentation – Tetra Technologies Inc. – slide 9
    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
  10. August 2016 Company Presentation – Tetra Technologies Inc. – slide 10
    Fluids Financial Overview Revenue (In Millions) 2015 Revenue Profile 150 117 123 105 105 110 111 99 100 91 59 61 International 50 28% 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 United States 2014 2015 2016 72% Adjusted EBITDA (In…
  11. August 2016 Company Presentation – Tetra Technologies Inc. – slide 11
    Production Testing
  12. August 2016 Company Presentation – Tetra Technologies Inc. – slide 12
    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…
  13. August 2016 Company Presentation – Tetra Technologies Inc. – slide 13
    Production Testing Revenue (In Millions) Balanced domestically and internationally 60 57 50 Saudi Arabia and Permian Basin represent 50 44 42 40 37 biggest areas of concentration 35 29 33 30 20 Customer base is the better…
  14. August 2016 Company Presentation – Tetra Technologies Inc. – slide 14
    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…
  15. August 2016 Company Presentation – Tetra Technologies Inc. – slide 15
    Offshore Services
  16. August 2016 Company Presentation – Tetra Technologies Inc. – slide 16
    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…
  17. August 2016 Company Presentation – Tetra Technologies Inc. – slide 17
    Offshore Services Financial Performance A strong culture of cost discipline with Revenue (In Millions) a variable cost model 70 62 60 56 Superior HSE&Q culture and 50 42 36 38 37 40 35 operating performance 30 26 20 12 10…
  18. August 2016 Company Presentation – Tetra Technologies Inc. – slide 18
    CSI Compressco LP
  19. August 2016 Company Presentation – Tetra Technologies Inc. – slide 19
    Q2-2016 Highlights Cash Flow Positive Operations in Challenging Business Climate Q2 2016 distribution coverage ratio [1] of 1.19x Q2 2016 Revenue of 76.1M Q2 2016 adjusted EBITDA margin [1] of 32.6% Q2 2016 adjusted EBITDA [1] of…
  20. August 2016 Company Presentation – Tetra Technologies Inc. – slide 20
    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…
  21. August 2016 Company Presentation – Tetra Technologies Inc. – slide 21
    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…
  22. August 2016 Company Presentation – Tetra Technologies Inc. – slide 22
    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…
  23. August 2016 Company Presentation – Tetra Technologies Inc. – slide 23
    Compression Services Geographic Diversity Operating in the Most Prolific Producing Basins in the U.S.A. Bakken Niobrara Utica HP Distribution by CCLP Region [1] Marcellus International Monterey 4% East South Texas 10%…
  24. August 2016 Company Presentation – Tetra Technologies Inc. – slide 24
    Financial Overview Predictable Cash Flow not as Susceptible to Commodity Price Downturns Compared to many Other OFS Revenues and compression services margins have been relatively resilient despite 77% decline in drilling activity…
  25. August 2016 Company Presentation – Tetra Technologies Inc. – slide 25
    Market Position Compression Services Competitive Landscape 4th Largest Revenue Generating Hp [3] Compression Services 3,500 Fleet by Hp 3,187 3,000 11% GCA Market share 2,500 U.S. and Canada [1] 2,000 Hp in thousands…
  26. August 2016 Company Presentation – Tetra Technologies Inc. – slide 26
    Distribution and Cash Management Business Model Generates Cash to Cover Operations and Distributions CCLP Cash Flow Distribution Coverage Ratio and Annualized Quarterly Distributions per Unit [3] 1.80x 180 3.50 1.60x 160 Change…
  27. August 2016 Company Presentation – Tetra Technologies Inc. – slide 27
    Covenants, Debt & Liquidity Amended Leverage Covenants and 50M Equity Offering to Provide Additional Flexibility to CCLP Minimal CapEx required to maintain cash flows Positive and predictable free cash flow generation No debt maturing…
  28. August 2016 Company Presentation – Tetra Technologies Inc. – slide 28
    Financial Overview
  29. August 2016 Company Presentation – Tetra Technologies Inc. – slide 29
    TETRA Earnings Trend TETRA Only Adjusted EBITDA(1) + CSI Compressco Distributions Trailing Twelve Months - Millions 190 170 150 130 110 90 70 50 TETRA adj. EBITDA CCLP Distributions Cumulative Impact of Many…
  30. August 2016 Company Presentation – Tetra Technologies Inc. – slide 30
    Two Distinct & Separate Capital Structures In Millions As of 6/30/2016 TETRA CSI Compressco Unrestricted Cash 7 17 Borrowing Capacity(1) 114 54 Liquidity(2) 121 71 Revolver Outstanding 103 236 Current Portion of LT Debt 0 0 Long…
  31. August 2016 Company Presentation – Tetra Technologies Inc. – slide 31
    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…
  32. August 2016 Company Presentation – Tetra Technologies Inc. – slide 32
    TETRAs Credit Profile Debt and Liquidity(1) Leverage Ratio(2) 500.0 4.50x 430 450.0 4.00x 395 394 379 3.38x 400.0 358 355 3.50x 328 2.94x 2.88x 350.0 3.00x 287 275 2.73x In Millions 300.0 2.42x 2.36x 2.50x 2.27x 250.0…
  33. August 2016 Company Presentation – Tetra Technologies Inc. – slide 33
    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…
  34. August 2016 Company Presentation – Tetra Technologies Inc. – slide 34
    2016 Outlook Anticipating depressed operating environment throughout 2016 Guiding towards 30M to 50M positive free cash flow in 2016 for TETRA Generated 9.7 M TETRA free cash flow in 2016 Q2 YTD Generated 31.8 M CCLP free cash flow…
  35. August 2016 Company Presentation – 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 Q2-16 Income (Loss) Before Taxes (5.1) 3.2 (4.4) 18.7…
  36. August 2016 Company Presentation – 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 Q2-16 Income (Loss) Before Taxes 17.8 8.1 19.3 34.1 2.6…
  37. August 2016 Company Presentation – Tetra Technologies Inc. – slide 37
    Non-GAAP Reconciliations Liquidity in millions Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 TTI excluding CSI Compressco TTM EBITDA per 151.8 141.9 129.5 136.8 140.8 155.9 168.9 164.8 140.7 105.6 Bank Agreement Long…
  38. August 2016 Company Presentation – 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 Q2-16 TTI excluding CSI Compressco TTM EBITDA per 151.8 141.9 129.5 136.8 140.8 155.9 168.9 164.8 140.7 105.6 Bank Agreement Long…
  39. August 2016 Company Presentation – 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 Q2-16 Income (Loss) Before Taxes 18.5 17.1 16.5 12.6 17.7 32.6 33.2 (2.7) (0.4) 0.5 Interest…
  40. August 2016 Company Presentation – Tetra Technologies Inc. – slide 40
    Market Capitalization & Enterprise Value (thousands, except per share amounts) Market Capitalization: TTI Market price per share on 8/3/2016 5.83 Shares outstanding as of 8/4/2016 92,706 Market Capitalization 540,476…
  41. August 2016 Company Presentation – Tetra Technologies Inc. – slide 41
    Non-GAAP Reconciliations Distributable Cash Flow in millions Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Income (loss) before taxes 0.9 3.9 5.3 0.6 (0.1) 3.4 2.4 1.5 2.0 (152.6) (104.7) (4.1) [1] Interest…
  42. August 2016 Company Presentation – Tetra Technologies Inc. – slide 42
    Non-GAAP Reconciliations Adjusted EBITDA in millions Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Income (loss) before taxes 0.9 3.9 5.3 0.6 (0.1) 3.4 2.4 1.5 2.0 (152.6) (104.7) (4.1) [1] Interest expense,…
  43. August 2016 Company Presentation – Tetra Technologies Inc. – slide 43
    Non-GAAP Reconciliations Liquidity & Leverage Market Capitalization Reconciliation in millions Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 and Units in thousands CCLP Consolidated TTM EBITDA per Credit Agreement 136.7 138.5 135.9 129.0 122.4…

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