THE MICROCAP RODEO The Best Ideas Bowl October 14, 2020 2020 TETRA Technologies, Inc. 1
Corporate Profiles NYSE: NASDAQ: Listing and Ticker Symbol TTI CCLP Recent Share Price(1) 0.53 0.87 Market Capitalization(1) 67M 41M Enterprise Value(1,5) 272M 679M Number of Shares/ 125.8M 47.3M Units Outstanding(2)…
TETRA Technologies 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…
Q2-2020 Highlights - TETRA Only, Excluding CSI Compressco Generated adjusted free cash flow of 31M and 68M improvement H1-2020 vs H1-2019 Also positive free cash flow excluding the benefit of monetizing working capital Five…
Outperforming Peers & Competitors Q2-2020 Adjusted EBITDA(1) (M) 10 9 6 6 Diversity of TETRAs market exposure (oil & gas, industrial, onshore and offshore, international and 5 domestic) provides financial stability during North…
Q2-2020 Highlights - CSI Compressco Adjusted EBITDA of 27.0M vs 27.8M in Q1, when the sequential decline in market activity was very significant Two largest customers have started bringing production back online in Q3-2020…
Environmental Focus We are at the forefront of addressing the industrys increasing water requirements. By recycling and re-using produced water, TETRA helps minimize the need for additional fresh water and the disposal of wastewater.…
Completion Fluids & Products 2020 TETRA Technologies, Inc. 9
Growing Share While Improving Financial Performance Completion Fluids & Products Revenue & Adjusted EBITDA (M) vs. Global Deepwater Rig Count High value, high density 300 280 284 completion fluids gaining market share. Revenue and…
TETRA Worldwide Operations Offshore Bases in Top Four Deepwater Markets North Sea & Europe Middle East Corporate Headquarters & All North America Technology Center Shale Basins Locations Manufacturing Locations Clear…
Diversity of Completion Fluids & Products TTM Revenue Ending Q2 2020 Only vertically integrated completion fluids Stable Non-Oil and Gas Revenue (M) provider 70 Onshore & Long-term raw material acid supply agreement to feed North…
TETRA CS Neptune Fluids Update Received prestigious E&P Special Meritorious for Engineering Award, Innovation for Drilling Fluids and Stimulation category Executed Q4-2019 deep water Gulf of Mexico project contributing to a 35%…
Completion Fluids & Products Diversified segment with the least dependency on North America shale market Revenue (M) 100 290 Key Financial Drivers 77 80 79 75 80 71 260 63 65 62 59 53 60 230 Q2-2020 Adjusted EBITDA margin of…
Water & Flowback Services 2020 TETRA Technologies, Inc. 15
Water Management Services Market Water Services Market (2019) Capital Intensity Service Segment Market Size % 2020 2025 CAGR Market Disposal 33% 2% 24.3 Billion Acquisition 8% 7% Focused on the highest Hauling 26% 1% growth,…
Integrated & Automated Water Management Solution Oil Recovery Recycling Sourcing Temporary Transfer Storage Pit Lining Poly Pipe & Pipeline Treatment Flowback Blending Distribution Automation (Real-Time…
Lowest Cost per Barrel Water Management Solution % Job Cost Savings Personnel savings 27% 150,000 Sourcing, Trucking, Disposal Savings 21% Automation & Recycle Costs +15% 95,000 Total Job Savings 33% 2 People 2 People 2 People…
Differentiating through Technology and Automation TETRA SteelTM 1200 BlueLinxTM Automated Leader in produced water market Control System Moved 100M bbls of produced Safer and improved service quality water in Permian in 2019, 40M…
Water & Flowback Services Adapting to current market conditions through automation, technology & cost-cutting Revenue (M) 100 1,500 Key Financial Drivers 84 80 79 79 80 73 73 1,200 61 57 57 60 900 Positive Adjusted EBITDA…
Compression 2020 TETRA Technologies, Inc. 21
Compression Market Despite a 2.9% forecasted dip in 2021 vs 2020, installed compression services HP remains relatively stable long term Centralized Gas Lift is now the largest segment of the compression services market Gas Lift…
CCLP is Well Positioned for the Coming Market Cycle Compression Services is a cost effective solution for producers to increase base production, both liquids and gas, E&Ps drastically reduce capital budgets in a capex constrained…
Compression Services Fleet Q2 2020 HP Deployed By Size 64% Utilization 88% Utilization 9% 1,000 HP 101-1,000 HP 0-100 HP 35% 56% 79% Utilization 1,000 HP 101-1000 HP 0-100 HP Deployed HP & Utilization Trends 1,100 100%…
Evolution of Compression Fleet Compression Services Margins % Migrating Towards Larger HP Units Total HP by Category (23)% (9)% +31% (1) Margin Improvement strategy based on unit clustering, Focused on Permian…
Focused on Most Prolific Producing Basins Focused on key shale oil plays with customers with strong balance sheets 75% of horsepower located in Permian, Eagle Ford, and SCOOP/STACK Bakken 6% 7% Niobrara 43% Utica Marcellus…
Compression Financial Summary Short-term outlook for compression has weakened but long-term fundamentals are intact Well positioned to capitalize on the growing compression market Revenue (M) 160 138 136 124 Key Financial Drivers…
Financial Overview 2020 TETRA Technologies, Inc. 28
Financial Overview Strong execution and the diversity of our end markets generate strong Adjusted EBITDA and free cash flow Revenue (M) 350 282 289 1,400 Key Financial Drivers 300 260 257 1,200 244 246 259 250 223 1,000 199…
Financial Overview Focused on cost management and differentiation through technology to drive results Revenue (M) TTI Only Adjusted Free Cash Flow (M) 1,200 1,200 60 46 999 1,038 28 31 1,000 40 723 900 14 800 617 10 20 36 600…
Debt Profiles TETRA Only CSI Compressco Only No near-term maturities Recent refinancing of 215M of bonds TTI asset-based credit agreement and term 81M, 7.25% unsecured notes due Aug 2022 loan with minimal maintenance covenants S&P…
Appendix Reconciliation Tables 2020 TETRA Technologies, Inc. 32
Market Capitalization and Enterprise Values (thousands, except per share amounts) (thousands, except per unit amounts) Market Capitalization: TTI Market Capitalization: CCLP Market price per share on 10/12/2020 0.53 Market price per…
Non-GAAP Reconciliation Completion Fluids & Products - Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation '( in Millions) Q1-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Income (Loss) Before Taxes 2.4 8.7 9.5 6.2 14.6…
Non-GAAP Reconciliation TTI Consol. - Continued Operations - Adj. EBITDA and Ad. EBITDA Margin Reconciliation '( in Mil) 2016 2017 2018 2019 Income (Loss) Before Taxes (223.2) (44.0) (36.4) (144.1) Interest Income/Expense 57.4 57.2…
Non-GAAP Reconciliation TETRA only Adjusted Free Cash Flow Reconciliation From Continuing Operations (in Millions) 2019-Q1 2020-Q1 2020-Q2 TTI Consolidated Cash from operations 7.4 22.2 38.2 Capital Expenditures, net of sales…
Non-GAAP Reconciliation TETRA only Adjusted Free Cash Flow Reconciliation From Continuing Operations (in Millions) 2020-Q2 2016 2017 2018 2019 YTD TTI Consolidated Cash from operations 55.7 64.6 46.6 90.2 60.4 ARO Setttlements…
Non-GAAP Reconciliation CSI Compressco - Adjusted EBITDA Reconciliation (In Millions) 2020-Q1 2020-Q2 Net Loss (13.6) (24.6) Interest expense, net 13.2 13.6 Provision of income taxes 0.2 1.0 Depreciation & amortization 19.9…
Non-GAAP Reconciliation CSI Compressco - Net Loss to Adjusted EBITDA fir Net Leverage Ratio Calculation 2019-Q3 Net Loss (43.8) Interest expense, net 53.8 Provision of income taxes 0.9 Depreciation & amortization 79.1 Non-cash…
Non-GAAP Reconciliation June 30, 2020 Net Debt - Reconciliation (In Millions) TETRA CCLP Consolidated Non-restricted cash 50.0 6.8 56.7 Carrying value of long-term debt: Asset-based credit agreement - 0.7 0.7 Term credit…
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