TETRA Technologies (TTI) The MicroCap Rodeo Fall Conference 2024 summary

Company overview and strategic direction

• Over 40 years in completion fluids, now expanded into industrial chemicals, water management, and sand management.

• Focus on leveraging core competencies to enter high-growth, low-carbon energy markets.

• Global presence in key deepwater and unconventional oil and gas markets, including Gulf of Mexico, Brazil, North Sea, US, Argentina, and Middle East.

• Two main business segments: completion fluids and water/flowback, with nearly equal revenue contribution.

• Continuous improvement in EBITDA margins, remaining cash flow positive through industry downturns.

Recent highlights and innovation

• Delivered first full electrolyte for long-duration energy storage to Eos, with optimism for next year's financials.

• Advancing water desalination for beneficial reuse, with a successful pilot recovering 92% desalinated water.

• Launched TETRA X, a corrosion inhibitor with 35x improvement for high-temperature wells, targeting 175 wells in 2025.

• Market penetration in water/flowback segment led to a 57% increase in revenue per rig since 2018.

• Automation initiatives (BlueLinx, Automated SandStorm, Automated Drillout) increasing efficiency and safety.

Market trends and growth opportunities

• Deepwater market projected to grow at 7% CAGR through 2028; company outpacing market growth since 2021.

• Produced water volumes rising, with regulatory restrictions on disposal due to seismicity, driving demand for desalination.

• Beneficial reuse of treated water for agriculture, irrigation, and industrial applications seen as a step change for the industry.

• Partnership with Eos for energy storage electrolytes and with Saltwerx (ExxonMobil) and Standard Lithium for lithium extraction.

• Smackover Formation acreage in Arkansas provides access to critical minerals, including bromine and lithium.