Q3 2024 Tetra Technologies Inc Earnings Call Transcript
Key Points
- Tetra Technologies Inc (TTI) achieved adjusted EBITDA margins of 31.7% for completion fluids and products, and 14.6% for water and flowback services, indicating strong operational efficiency.
- The company secured a major Deepwater Completion Fluid Award in Brazil, establishing itself as a leader in the deep water heavy fluids market in the region.
- Tetra Technologies Inc (TTI) set an all-time record for produced water recycling for frac reuse, showcasing its commitment to sustainable practices.
- The company is advancing its strategic initiatives, including the introduction of Tetra X, a new corrosion inhibitor for high-temperature downhole well environments.
- Tetra Technologies Inc (TTI) has a strong financial position with a trailing 12 months adjusted EBITDA of $101 million and a net leverage ratio of 1.5 times, indicating financial stability and capacity for future investments.
- Third quarter revenue of $142 million was down 6% year-on-year and from the first quarter of 2024, reflecting challenges in maintaining growth.
- The decline in US onshore frac crew activity has lowered completion-related revenues, putting pressure on margins in the water and flowback services segment.
- Hurricanes in the Gulf of Mexico impacted deepwater completion schedules, causing delays in projects and affecting revenue projections.
- The company anticipates a fourth-quarter slowdown in the water and flowback services segment due to seasonal factors and reduced activity levels.
- Tetra Technologies Inc (TTI) faces uncertainties related to the timing and approval of permits for its water desalination projects, which could impact the rollout of these initiatives.
Good morning and welcome to Tetra Technologies third quarter, 2024 results conference call. All participants will be in listen-only mode. Should you need assistance? Please signal a conference specialist by pressing the star key followed by zero.
After today's presentation, there will be an opportunity to ask questions to ask a question. You may press star then one on your Touchstone phone to withdraw your question. Please press star. Then two.
Please note that this event is being recorded.
I will now turn the conference over to Julian Higuera. Please go ahead.
Thank you, Vincent. Good morning and thank you for joining Tetra's third quarter. 2024. Results call the speakers for today's call are Brady Murphy, Chief Executive Officer and Alicia Serrano, Chief Financial Officer. I would like to remind you that this conference call may contain statements that are or may be deemed to be forward-looking including projections, financial guidance,
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