TETRA Technologies (TTI) The Stifel 2024 Cross Sector Insight Conference summary

Business overview and strategy

• Focused on two core segments: completion fluids (notably for deepwater offshore) and water management, with a shift toward produced water treatment and recycling for beneficial reuse.

• Divested non-core businesses to concentrate on aqueous fluids chemistry and transition into low-carbon, higher-growth markets.

• Reported $640 million in revenue and $107 million in EBITDA last year, with strong positioning for future growth.

Completion fluids segment

• Maintains mid-20s to high-20s% margins, with spikes above 30% on large Neptune jobs; expects further margin improvement as own bromine supply comes online.

• Well positioned in Gulf of Mexico, Brazil, North Sea, and Middle East, with vertical integration and unique technology (e.g., Neptune) providing competitive advantage.

• Neptune, a zinc-free bromine-based fluid, addresses regulatory and technical challenges in high-pressure, high-temperature wells.

Water management and desalination

• Shifted focus from water transfer to produced water treatment, leveraging technology like SandStorm and proprietary recycling processes.

• U.S. produces 23 billion barrels of produced water annually; regulatory and environmental pressures drive demand for beneficial reuse and desalination.

• Developed proprietary pretreatment and desalination technology, with successful pilots and first commercial plant targeting 24,000 barrels/day.