TETRA Technologies (TTI) H.C. Wainwright 27th Annual Global Investment Conference summary

Business overview and performance

• Focuses on two core segments: completion fluids for deepwater oil and gas and water/flowback management for fracking operations.

• Maintains strong EBITDA margins (34%) in completion fluids, outperforming industry peers even during sector slowdowns.

• Water and flowback business generates low-teen margins, with plans to improve as new technologies are adopted.

• Combined, these segments delivered $100 million EBITDA, $600 million revenue, and $50 million free cash flow in the last year.

• Vertically integrated operations and proprietary chemistry provide competitive advantages and barriers to entry.

Growth initiatives and new markets

• Expanding into battery storage by supplying high-purity zinc bromide electrolyte to Eos Energy, with potential revenue of $100–$150 million by 2027.

• Developing water desalination technology to treat produced water for surface discharge, crop irrigation, and data center cooling.

• Extracting critical minerals (lithium, iodine, magnesium) from brine, leveraging 40,000 acres of mineral rights in Arkansas.

• New business models include per-barrel water treatment fees and mineral extraction revenue streams.

• Investor Day on September 25th will detail targets for plant construction, economics, and regulatory feedback.

Financial strategy and outlook

• Strengthened balance sheet with $68 million cash and over $200 million liquidity, net leverage ratio at 1.2x.

• Guidance for 2024 revenue and EBITDA above prior year despite sector slowdown.

• Long-term contracts (10–20 years) with major industry players expected for new water treatment facilities.

• Board expanded to include expertise in chemicals, specialty materials, and clean technology.

• Future targets for revenue, EBITDA, cash flow, and EPS to be announced at Investor Day, with expectations of material growth beyond 2025.