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Raymond James Institutional Investors Conference – Tetra Technologies Inc.

Tetra Technologies Inc. · Mar 3, 2015 · 35 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. Raymond James Institutional Investors Conference – Tetra Technologies Inc. – slide 1
    TETRA Technologies, Inc. and CSI Compressco LP March 2015
  2. Raymond James Institutional Investors Conference – Tetra Technologies Inc. – slide 2
    Corporate Profiles COMPANY OVERVIEW Stock Market NYSE: TTI NASDAQ: CCLP Recent Share Price(1) 5.97 17.17 Market Capitalization(1) 475M 569M Enterprise Value(1) 870M 1.1B Number of Shares/ 79.6M 33.1M Units Outstanding(2)…
  3. Raymond James Institutional Investors Conference – Tetra Technologies Inc. – slide 3
    Business Segments COMPANY OVERVIEW FLUIDS SERVICES PRODUCTION CSI COMPRESSCO OFFSHORE MARITECH TESTING SERVICES Targeting to Only vertically The largest North Full service compression: A leading provider of complete our operated…
  4. Raymond James Institutional Investors Conference – Tetra Technologies Inc. – slide 4
    Progress on Key Initiatives COMPANY OVERVIEW Achieved Free Cash Flow (1) ( millions) Free Cash Flow of 80M 100 Q4-2014 EPS at top end of guidance 80 81.3 85.9 Production Testing PBT Margins 15.5% (2) 60 Fluids PBT Margins…
  5. Raymond James Institutional Investors Conference – Tetra Technologies Inc. – slide 5
    Balance Sheet and Liquidity COMPANY OVERVIEW Millions As Of 12/31/2014 TETRA CSI Compressco Consolidated TETRA Cash 14 34 48 Revolver Availability 135 205 340 Liquidity 149 239 388 Revolver Outstanding 90 195 285 Current…
  6. Raymond James Institutional Investors Conference – Tetra Technologies Inc. – slide 6
    TETRA is well positioned to leverage synergies and provide services through a global infrastructure 7
  7. Raymond James Institutional Investors Conference – Tetra Technologies Inc. – slide 7
    TETRA is Evolving EVOLUTION AND STRATEGY TETRA has evolved to be a pure play oilfield services company with the divestiture of Maritech and is much less dependent on drilling activity after the CSI Acquisition 2010 Revenue (1)…
  8. Raymond James Institutional Investors Conference – Tetra Technologies Inc. – slide 8
    Global Footprint, Growing International Presence 2014 Revenue Mix excl. Offshore Services Intl. 33% US 67% 9
  9. Raymond James Institutional Investors Conference – Tetra Technologies Inc. – slide 9
    Leveraging Synergies EVOLUTION AND STRATEGY TETRA has evolved into a harmonized infrastructure with multiple service offerings Successfully cross selling services Leveraging local nationals in management to enhance customer…
  10. Raymond James Institutional Investors Conference – Tetra Technologies Inc. – slide 10
    Leveraging the value of the integrated business units and service offerings to the oilfield and other industries 11
  11. Raymond James Institutional Investors Conference – Tetra Technologies Inc. – slide 11
    Fluids Services FLUIDS SERVICES Completion Fluids Only vertically integrated cost effective solutions provider of high-end clear brine fluids - Manufacturer of calcium bromide, zinc bromide and calcium chloride - Long-term bromine…
  12. Raymond James Institutional Investors Conference – Tetra Technologies Inc. – slide 12
    Fluids Services Financial Overview Revenue ( millions) EBITDA ( millions) and Margin(1) FLUIDS SERVICES 500 24% 437 120 23% 25% 450 21% 100 400 383 17% 101 20% 16% 80 92 350 335 15% 305 60 70 300 276 10% 40 52 44 250 20…
  13. Raymond James Institutional Investors Conference – Tetra Technologies Inc. – slide 13
    Production Testing PRODUCTION TESTING Flowback pressure and volume testing provides data to optimize production and minimize reservoir damage Production Testing used to access newly available production and extend productive life of…
  14. Raymond James Institutional Investors Conference – Tetra Technologies Inc. – slide 14
    Production Testing Financial Overview PRODUCTION TESTING Revenue ( millions) EBITDA ( millions) and Margin (1) 300 Q4-14 EBITDA 110 36% Margins of402%7.4% 35% 90 31% 208 196 28% 193 30% 200 21% 70 25% 140 64 21% 104 50…
  15. Raymond James Institutional Investors Conference – Tetra Technologies Inc. – slide 15
    Offshore Services OFFSHORE SERVICES A leading GoM provider of decommissioning and well abandonment services - Largest provider of heavy lift platform removals with two derrick barges, including the newly built 1,700-T TETRA…
  16. Raymond James Institutional Investors Conference – Tetra Technologies Inc. – slide 16
    Offshore Services Financial Overview OFFSHORE SERVICES Revenue ( millions) EBITDA ( millions) and Margin (1) 350 60 18% 20% 300 287 16% 274 266 18% 256 50 15% 13% 16% 250 47 14% 195 40 200 42 12% 30 41 10% 150 38 8% 100 20…
  17. Raymond James Institutional Investors Conference – Tetra Technologies Inc. – slide 17
    CSI Compressco CSI COMPRESSCO LP Compressco acquired CSI, for 825M Compressco (founded 1998, acquired in 2004) Compressco Partners LP (IPO 2011, GSJK) Compressor Systems, Inc. (founded 1971, acquired 2014) CSI Compressco 44 year…
  18. Raymond James Institutional Investors Conference – Tetra Technologies Inc. – slide 18
    Compression Value Chain Wellhead and Gas Gathering Gas Processing Storage and Distribution Pipeline and Transmission Hydrocarbon production Delivery & Processing Distribution options Transportation efficiency Wellhead = Single…
  19. Raymond James Institutional Investors Conference – Tetra Technologies Inc. – slide 19
    Compression Industry Stable Performance Through Swings in Fleet Utilization(1) vs. Macro Variables(2) (2008 as base) Commodity Prices 20% 100% 10% 90% 0% 80% Stable Sector of Energy Service -10% 70% -20% 60% Less susceptible to…
  20. Raymond James Institutional Investors Conference – Tetra Technologies Inc. – slide 20
    CSI Compressco Services Fleet 2014 Revenue(1) 2014 Revenue(1) Wide spectrum of size (HP) Geographically dispersed AMS, 7% Intl. Large scope of applications 16% Customer diversity Equipment Compressi Technology driven Sales…
  21. Raymond James Institutional Investors Conference – Tetra Technologies Inc. – slide 21
    CSI Compressco Services Fleet Compression Fleet is well balanced: size, Fleet Composition geographic, oil/gas & application Hp by Application Hp by Resource Play VR, 2% 4th Largest Compression Services Wellhead, 18% Fleet Oil,…
  22. Raymond James Institutional Investors Conference – Tetra Technologies Inc. – slide 22
    CSI Compressco Growth Opportunities 205 Billion Investment Required by 2035(1). 13 Million Hp of new compression for gathering and transmission Domestic International Product Cross Selling Leverage Compressco Presence for CSI…
  23. Raymond James Institutional Investors Conference – Tetra Technologies Inc. – slide 23
    CSI Compressco Business Model Provides Predictable Cash Flow Stream 2015 Guidance Revenue of 460M - 480M EBITDA of 125M - 135M Capital expenditures of 100M 83M Fleet Growth 3M Growth, Non-Fleet 14M Maintenance 24
  24. Raymond James Institutional Investors Conference – Tetra Technologies Inc. – slide 24
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  25. Raymond James Institutional Investors Conference – Tetra Technologies Inc. – slide 25
    Focus On Free Cash Flow 2015 vs 2014 Sources & Uses of Cash ARO Cash Expenditures 140 ARO expenditures 53M reduction 120 100 80 Non-CCLP capex 25M reduction 60 40 CCLP distributions to TTI 11M increase 20 - 2013 2014…
  26. Raymond James Institutional Investors Conference – Tetra Technologies Inc. – slide 26
    CSI Compressco Distribution Trend Quarterly Distribution (Annualized) Focused on distribution 1.94 growth while maintaining 1.95 strong balance sheet 1.84 1.85 1.81 1.75 1.78 Consistent and recurring cash 1.75 1.72 1.68…
  27. Raymond James Institutional Investors Conference – Tetra Technologies Inc. – slide 27
    CSI Compresscos Distribution Impact to TETRA TETRA owns 44% of CSI Compressco As the general partner, TETRA is entitled to IDRs (Incentive Distribution Rights) TETRAs cash distributions from CSI Compressco for 2014 are 24.2…
  28. Raymond James Institutional Investors Conference – Tetra Technologies Inc. – slide 28
    Balance Sheet TETRA have secured financing to address maturing 90M notes CSI Compresscos Debt is long-term in nature Ample liquidity to fund growth TETRA leverage ratio is less than 3.0X with a target of 2.5X CSI Compresscos…
  29. Raymond James Institutional Investors Conference – Tetra Technologies Inc. – slide 29
    TETRA & CSI Compressco as Investment Opportunities 2010: 0.94 Billion(1) 2014: 1.32 Billion (1) Fluids, PT and CSI Compressco Offshore 49% Services Fluids, PT and 15% Offshore CSI Services Compressco 29% 85% E&P Revenue…
  30. Raymond James Institutional Investors Conference – Tetra Technologies Inc. – slide 30
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  31. Raymond James Institutional Investors Conference – Tetra Technologies Inc. – slide 31
    Potential Impact of Increased Distributions FINANCIAL OVERVIEW Opportunity to Create Significant Shareholder Value from CSI Acquisition CSI Compressco Valuation at Various Declared Distribution Levels Annualized Distribution 1.80 1.90…
  32. Raymond James Institutional Investors Conference – Tetra Technologies Inc. – slide 32
    Leadership Team LEADERSHIP AT TETRA Highly qualified management with a broad range of experience from large multi-national and small service companies Stu Brightman President & CEO Elijio Serrano SVP & CFO President & CEO since May…
  33. Raymond James Institutional Investors Conference – Tetra Technologies Inc. – slide 33
    Leadership Team LEADERSHIP AT TETRA Highly qualified management with a broad range of experience from large multi-national and small service companies Keith Schilling SVP Energy Services Tim Knox President of CSI Compressco Joined…
  34. Raymond James Institutional Investors Conference – Tetra Technologies Inc. – slide 34
    Appendix FINANCIAL OVERVIEW (thousands, except per share amounts) Market Capitalization: TTI Market price per share on 2/27/2015 5.97 Shares outstanding (in thousands) as of 11/09/2014 79,599 CSI Compressco LP Market Capitalization…
  35. Raymond James Institutional Investors Conference – Tetra Technologies Inc. – slide 35
    Appendix FINANCIAL OVERVIEW Reconciliation of EBITDA Reconciliation of EBITDA Production Testing Offshore Services in millions 2010 2011 2012 2013 2014 in millions 2010 2011 2012 2013 2014 Income(Loss) before Income(Loss) before…

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