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Cowen and Co Energy and Natural Resources Conference – Tetra Technologies Inc.

Tetra Technologies Inc. · Nov 29, 2018 · 33 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. Cowen and Co Energy and Natural Resources Conference – Tetra Technologies Inc. – slide 1
    Investor Presentation December 2018 1
  2. Cowen and Co Energy and Natural Resources Conference – Tetra Technologies Inc. – slide 2
    Corporate Profiles Listing and Ticker Symbol NYSE: TTI NASDAQ: CCLP Recent Share Price(1) 2.31 4.22 Market Capitalization(1) 290.4M 192.8M Enterprise Value(1) 481M 868M Number of Shares/ 125.7M 44.8M Units Outstanding(2)…
  3. Cowen and Co Energy and Natural Resources Conference – Tetra Technologies Inc. – slide 3
    Highlights Committed to Efficient Capital Allocation Divested operations not generating consistent and predictable free cash flow Directing capital towards quick payback shale services and predictable and consistent contract…
  4. Cowen and Co Energy and Natural Resources Conference – Tetra Technologies Inc. – slide 4
    Business Segments Focused on high growth, higher margin segments Water & Flowback Services Completion Fluids & Products Compression Differentiated offerings Industry leaders, 30% market Wide range of HP to address for produced…
  5. Cowen and Co Energy and Natural Resources Conference – Tetra Technologies Inc. – slide 5
    Recent Events Third Quarter 2018 Financial Performance All segments generating 20% adjusted EBITDA margins Compression revenue up 15% sequentially, adjusted EBITDA margins of 21.3% Water & Flowback Services revenue down 6%…
  6. Cowen and Co Energy and Natural Resources Conference – Tetra Technologies Inc. – slide 6
    Actions to Simplify & Focus on Higher Returns Businesses 2018 Revenue (M) 2007 Revenue (M) 2017 Revenue (M) (Mid-Point Guidance) Discontinued Ops. Discontinued Completion Fluids & Completion Fluids & Completion Fluids & Ops.…
  7. Cowen and Co Energy and Natural Resources Conference – Tetra Technologies Inc. – slide 7
    Strategy on a Page Completion Water & Flowback Compression Fluids & Products Services* Market Size Est 1B 9B 3B(1) Leverage vertical integration, new unit Leverage innovation, vertical Leverage differentiated offerings in sales…
  8. Cowen and Co Energy and Natural Resources Conference – Tetra Technologies Inc. – slide 8
    Water & Flowback Services 9
  9. Cowen and Co Energy and Natural Resources Conference – Tetra Technologies Inc. – slide 9
    Water & Flowback Services SwiftWater acquisition, integrated water solutions and high ROIC investments Revenue (M) Key Financial Drivers 100 1,500 84 79 80 1,200 61 61 60 900 SwiftWater performing above acquisition guidance of…
  10. Cowen and Co Energy and Natural Resources Conference – Tetra Technologies Inc. – slide 10
    TETRAs Integrated Water Solutions Post Job Full Offering Treatment Water for Frac Services Only no asset ownership Transfer Re-use No Offering Fresh Pre-Frac Water Flowback/ Fluids Final Water Treatment & Frac Job…
  11. Cowen and Co Energy and Natural Resources Conference – Tetra Technologies Inc. – slide 11
    TETRAs Integrated Water Solutions 12
  12. Cowen and Co Energy and Natural Resources Conference – Tetra Technologies Inc. – slide 12
    Completion Fluids & Products 13
  13. Cowen and Co Energy and Natural Resources Conference – Tetra Technologies Inc. – slide 13
    Completion Fluids & Products Multiple opportunities to capture growing demand w/out incremental capital investment Revenue (M) Key Financial Drivers 100 1,200 80 74 77 1,000 71 63 Identified multiple opportunities through the…
  14. Cowen and Co Energy and Natural Resources Conference – Tetra Technologies Inc. – slide 14
    CBFs Applications 1.1 Billion Completion & Workover Fluid Density (well control) Casing and reservoir friendly Market Packer Fluid Maintains well hydrostatic pressure Requires temperature stability and low corrosion 30%+…
  15. Cowen and Co Energy and Natural Resources Conference – Tetra Technologies Inc. – slide 15
    Unique Position to Exploit Global Market Opportunities Preferred supplier agreements for completion fluids Exposure to large-scale, multi-year/service projects Leveraging global infrastructure and commercial organizations…
  16. Cowen and Co Energy and Natural Resources Conference – Tetra Technologies Inc. – slide 16
    TETRA Chemicals Highlights Industrial market growth during the downturn helped offset energy market decline Low annual maintenance CapEx Currently operating at 60% of capacity with room to grow at no incremental investment…
  17. Cowen and Co Energy and Natural Resources Conference – Tetra Technologies Inc. – slide 17
    18
  18. Cowen and Co Energy and Natural Resources Conference – Tetra Technologies Inc. – slide 18
    Financial Summary 4M sequential Adjusted EBITDA (1,2) growth in 2018 Well positioned to capitalize on the growing compression market Revenue (M) Key Financial Drivers Guidance of 150 125 - 135 M 120 100 115 Increasing pricing up to…
  19. Cowen and Co Energy and Natural Resources Conference – Tetra Technologies Inc. – slide 19
    Served Markets Gas Supply Chain Percentage of Revenue and Gross Profit by Product Line Q3 2018 Actuals We are a Compression Solutions provider focused on E&P and Midstream Companies in the major Revenue 17% Gross Profit associated…
  20. Cowen and Co Energy and Natural Resources Conference – Tetra Technologies Inc. – slide 20
    Focused on Most Prolific Producing Basins in USA 5% Bakken 9% 34% Niobrara Utica 22% Marcellus Woodford SCOOP/Stack 11% Monterey 19% San Juan Barnett Haynesville HP Distribution by CCLP Region as of 9/30/2018 Permian &…
  21. Cowen and Co Energy and Natural Resources Conference – Tetra Technologies Inc. – slide 21
    Served Markets The Gas Value Chain Since 1971 CCLP has delivered over 5.2M HP to these markets Sizes for Solutions Compression Services offerings from 20-2,500HP from wellhead, gas lift and gas gathering applications. New…
  22. Cowen and Co Energy and Natural Resources Conference – Tetra Technologies Inc. – slide 22
    Connected Enterprise Business Strategy Model SALES OPPORTUNITY Automation and efficiency REPORTING AND INVOICING CONFIGURE, PRICE AND QUOTE delivering 4M in yearly savings Operational Excellence Maximize efficiencies by…
  23. Cowen and Co Energy and Natural Resources Conference – Tetra Technologies Inc. – slide 23
    Financial 24
  24. Cowen and Co Energy and Natural Resources Conference – Tetra Technologies Inc. – slide 24
    Financial Overview 2018 Guidance 2018 Adjusted EBITDA reflects lack of CS Neptune and significant deepwater activity Guidance Key Financial Drivers s in M 2014 2015 2016 2017 2018 High utilization of all assets in the shale play…
  25. Cowen and Co Energy and Natural Resources Conference – Tetra Technologies Inc. – slide 25
    Two Distinct & Separate Capital Structures TETRA Only CSI Compressco Only Ample liquidity to capitalize on No near-term maturities acquisitions and growth capital 296M, 7.25% unsecured notes due 2022 opportunities 350M 7.5% senior…
  26. Cowen and Co Energy and Natural Resources Conference – Tetra Technologies Inc. – slide 26
    Capital Allocation Considerations TETRA Focused on high return and quick payback Water & Flowback Services Will evaluate additional tuck-in acquisitions at attractive valuations Fluids network fully developed and built out requiring…
  27. Cowen and Co Energy and Natural Resources Conference – Tetra Technologies Inc. – slide 27
    Appendix Reconciliation Tables 28
  28. Cowen and Co Energy and Natural Resources Conference – Tetra Technologies Inc. – slide 28
    Market Capitalization and Enterprise Values (thousands, except per share amounts) (thousands, except per share amounts) Market Capitalization: TTI Market Capitalization: CCLP Market price per share on 11/29/2018 2.31 Market price per…
  29. Cowen and Co Energy and Natural Resources Conference – Tetra Technologies Inc. – slide 29
    Non-GAAP Reconciliation Completion Fluids & Products - Adjusted EBITDA Reconciliation '( in Millions) Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Income (Loss) Before Taxes 2.1 3.8 10.8 1.0 19.5 16.6 21.4 6.4…
  30. Cowen and Co Energy and Natural Resources Conference – Tetra Technologies Inc. – slide 30
    Non-GAAP Reconciliation CSI Compressco - Adjusted EBITDA Reconciliation (In Millions) 2018-Q4 2018-Q4 2018-Q4 2017-Q1 2017-Q2 2017-Q3 2017-Q4 2018-Q1 2018-Q2 2018-Q3 (Mid- (Low ) (High) point) TTINet Consolidated Loss (15.6)…
  31. Cowen and Co Energy and Natural Resources Conference – Tetra Technologies Inc. – slide 31
    Non-GAAP Reconciliation TTI Continued Operations - Adjusted EBITDA Reconciliation '( in Millions) 2018(Mid- 2014 2015 2016 2017 2018(Low ) 2018(High) point) Income (Loss) Before Taxes (60.5) (197.7) (223.2) (44.0) (53.1) (45.1)…
  32. Cowen and Co Energy and Natural Resources Conference – Tetra Technologies Inc. – slide 32
    Non-GAAP Reconciliation TTI Only Free Cash Flow Reconciliation Q3-18 TTI Consolidated Cash from operations 13.8 ARO Settlements - Capital Expenditures, net of sales proceeds (39.2) Free Cash Flow before ARO settlements (25.4)…
  33. Cowen and Co Energy and Natural Resources Conference – Tetra Technologies Inc. – slide 33
    Investor Presentation December 2018 35

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