In This Article:
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Adjusted EBITDA: Record $32.3 million, with margins of 20.5%.
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Total Revenue: $157 million, up 17% sequentially and 4% year-over-year.
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Completion Fluids and Products Revenue: $93 million, increased 35% sequentially.
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Completion Fluids and Products Adjusted EBITDA: $33.2 million, up 77% sequentially, with margins of 35.7%.
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Water and Flowback Services Revenue: $64 million, decreased 2% sequentially, but up 13% year-over-year.
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Water and Flowback Services Adjusted EBITDA: $8.3 million, increased $1.2 million year-over-year.
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Free Cash Flow: $4.2 million, with $15.4 million from the base business.
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Capital Expenditures: $18 million in Q1, including $11 million for Arkansas bromine plant expansion.
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Liquidity: Approximately $219 million, including $75 million available for the bromine project.
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Net Leverage Ratio: Improved to 1.5 times from 1.8 times at the end of the previous year.
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Tetra Technologies Inc (NYSE:TTI) reported a record first quarter adjusted EBITDA of $32.3 million with margins of 20.5%, driven by strong performance in the completion fluids and product segment.
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Total revenue increased by 17% sequentially and 4% year-over-year, indicating solid growth.
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The company successfully completed the first of three scheduled Tetra CS Neptune wells and made significant progress on the second well.
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Tetra Technologies Inc (NYSE:TTI) saw a 60% increase in offshore deepwater operations, reflecting a steady increase in the deepwater market.
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The company generated strong free cash flow in the first quarter, with a year-over-year improvement of $41 million, including proceeds from the sale of Kodiak shares.
Negative Points
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Revenue for the water and flowback services segment declined by 2% sequentially, despite outperforming the US frac activity decline of approximately 10%.
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Margins on water and flowback services were down slightly from the fourth quarter, indicating some pressure in this segment.
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The current oil price environment creates uncertainty for US land activity, which could impact future performance.
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The deepwater market's lumpiness due to the timing of well completions can lead to variability in business results.
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There is uncertainty regarding the timing of future deepwater projects, which could be affected by prolonged lower oil prices.
Q & A Highlights
Q: What is the biggest hold-up for customers in adopting the Oasis technology for commercial use? A: Brady Murphy, CEO, explained that customers need to become comfortable with the technology and the evolving environmental framework. Regulatory and legislative developments are moving in a positive direction, particularly in Texas and Mexico. The company expects multiple pilot projects this year and anticipates commercial projects to start being negotiated in 2026, with potential acceleration in this timeline.