Tetra Technologies, Inc. · NYSE:TTI
Tetra Technologies — Winter Wonderland Best Ideas Virtual Investor Conference 2022
28 slides from Tetra Technologies's conference presentation, Feb 8, 2022
Slide 1: Winter Wonderland Best Ideas Virtual Investor Conference
Winter Wonderland Best Ideas Virtual Investor Conference February 8-11, 2022 ©2021 TETRA Technologies, Inc. 1
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements The information in this presentation includes “forward-looking statements.” All statements, other than statements of historical fact included in this presentation, regarding our management, strategy, future operations, financial position, estimated revenues and
Slide 3: Investment Highlights
Investment Highlights Global leader in high-value completion fluids, water management, and related industrial chemicals. Uniquely positioned for a recovering oil and gas market and an accelerating energy transition market • Diverse revenue stream from O&G, industrial, US & international, onshore & o
Slide 4: Agenda
Agenda Water & Flowback 01 Recent Highlights 04 Services ESG Story & Financial Overview 02 Low Carbon Energy 05 & Summary Opportunities Completion Fluids & 03 Products ©2021 TETRA Technologies, Inc. 4
Slide 5: Recent Highlights
Recent Highlights • Final technical report issued for TETRA bromine and lithium-brine property in the Smackover Formation in Arkansas » Exploration target estimated to contain between 2.54 and 8.58 million tons elemental bromine » Exploration target estimated to contain between 85,000 and 286,000 to
Slide 6: Recent Highlights
Recent Highlights Signed a strategic term sheet regarding a long- Joint intellectual property agreement with CarbonFree, term agreement with EOS Energy, an energy a CO2 capture and mineralization technology company, storage technology company, to provide TETRA for CO2 free calcium chloride productio
Slide 7: Compelling Sustainability Story
Compelling Sustainability Story Operations Low Carbon Energy Governance Health & Safety • Strong environmental • Separate chair and CEO • Strong culture of QHS&E offering in our existing • Significant bromine businesses drives product & service assets with high • Additions of strong delivery quantit
Slide 8: Leveraging Resources & Capabilities for Energy Transition
Leveraging Resources & Capabilities for Energy Transition Mineral Assets Chemistry Manufacturing Capabilities TETRA’s mineral assets, chemistry R&D strength and patented manufacturing capability has created a clear path to Low Carbon Energy Solutions in carbon capture, energy storage and ESG-friendl
Slide 9: Energy Storage – Zinc Bromide Electrolyte
1 Energy Storage – Zinc Bromide Electrolyte • Partnering with energy storage technology companies for zinc-bromide as a key electrolyte for safe, long duration energy storage Eos Energy uses 12,500 lbs » Eos has $151M booked orders and $3.7B of of bromine per MWh project pipeline energy storage » $3
Slide 10: TETRA Lithium & Bromine Assets in Smackover
2 TETRA Lithium & Bromine Assets in Smackover Over 40,000 gross acres of mineral rights leases in the Smackover Formation in Southwest Arkansas • Not currently extracting bromine from our acreage Market Cap $27 B • Long-term supply agreement with LANXESS meeting our $5 B $0.4 B current bromine deman
Slide 11: Lithium - Best Environmental Solution
Lithium - Best Environmental Solution Existing Lithium Production Operations Direct Lithium Extraction Extracted from downhole brine production. Lithium is directly Hard Rock Mining extracted and the tail brine is re-injected to preserve reservoir pressures and properties Solar Evaporation ©2021 TET
Slide 12: Carbon Capture
1 Carbon Capture • TETRA is partnering with CarbonFree, a private CO2 technology company, to bring to market a second-generation carbon mineralization technology » CO2 capture at the point of emission and crystalizes to produce precipitated calcium carbonate (PCC) » Requires massive volumes of calci
Slide 13: Current Business Segments
Current Business Segments 2021-Q3 TTM Completion Fluids & Products Revenue • Over 30% market share* for high value completion Deepwater fluids Onshore & 16% Shallow Water • Innovation leader with TETRA CS Neptune® fluids 34% • Global infrastructure with 20-year bromine Industrial supply agreement 50
Slide 14: Completion Fluids Global Network
Completion Fluids Global Network Revenue $378 Million Top Four Countries for Projected Number of Deepwater Wells Between 2021-2025* 403 North Sea & Europe 229 157 136 Middle East All North America Shale Basins Norway Brazil U.S. UK Corporate Headquarters & Technology Center • Approximately 291 globa
Slide 15: TETRA's Industrial Revenue Streams
TETRA’s Industrial Revenue Streams • Significant Industrial Chemicals Business » Calcium chloride is a major industrial chemical with a durable demand profile » Largest producer of calcium chloride in Europe • Increasing the capacity of calcium chloride plant in Finland by over 25% by mid-2022 » 2nd
Slide 16: Water & Flowback Services Business Segment
Water & Flowback Services Business Segment Revenue and Adjusted EBITDA Margins Market share gains due to our technologies, $79 $80 $70 $73 $73 30% digitizing operations and integrated solutions $57 $57 25% $60 • Leading water treatment and recycling business in the Permian $ millions $50 $47 20% $38
Slide 17: Digitized Integrated Water Management Solution
Digitized Integrated Water Management Solution Oil Recovery Recycling Sourcing Temporary Transfer Storage Pit Lining Poly Pipe & Pipeline Treatment Flowback Blending Distribution Automation (Real-Time Monitoring & Control) ©2021 TETRA Technologies, Inc. 17
Slide 18: TETRA Financial Profile
TETRA Financial Profile $ millions Trailing 12 Months (as of 9/30/21) Improving Balance Sheet Net Debt $189 Revenue $351M $133 $122 Adjusted EBITDA $ 48M Adjusted EBITDA Margin 13.7% Adjusted Free Cash Flow $ 18M 2019 2020 09/30/21 Adjusted EBITDA and adjusted free cash flow positive in the recent d
Slide 19: TETRA's Enhanced Capital Structure
TETRA’s Enhanced Capital Structure Balance Sheet and Liquidity(1) • Generated $17.6M of cash flow from monetizing SLI shares $ millions, except ratios and %s Cash $ 42 • Deconsolidation of CSI Compressco allows Debt ABL ( May, 2025 maturity) $ - TETRA to “screen” better Term Loan (2) $ 164 Net Debt
Slide 20: Market Performance & Capital Allocation
Market Performance & Capital Allocation Ending As of 2/4/2021 Share Performance vs OSX 600% TTI-USQ OSX-USQ Capital Allocation Priorities 500% • Focused on two core segments targeting 400% 339% organic investments with cash paybacks 300% < 18 months 200% 151% 100% 100% OSX • Reduce outstanding debt,
Slide 21: Investment Highlights
Investment Highlights • Build on core competencies of fluids and Moving TETRA’s Earnings Profile to Low Carbon Energy Market Opportunities With Higher Growth aqueous chemistry in a Recovering Market Rates and Higher EBITDA Valuations » Industry leading position on high value completion 40% Low Carbo
Slide 22: Winter Wonderland Best Ideas Virtual Investor Conference
Winter Wonderland Best Ideas Virtual Investor Conference February 8-11, 2022 ©2021 TETRA Technologies, Inc. 22
Slide 23: Appendix
Appendix ©2021 TETRA Technologies, Inc. 23
Slide 24: Market Capitalization and Enterprise Value
Market Capitalization and Enterprise Value (thousands, except per share amounts) Market Capitalization: TTI Market price per share on 02/04/2022 $ 2.92 Shares outstanding as of 10/29/2021 126,940 Market Capitalization $ 370,665 Enterprise Value: TTI Market capitalization based on 02/04/2022 Stock Pr
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation Completion Fluids & Products - Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation '($ in Millions) Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Income (Loss) Before Taxes $6.2 $14.6 $11.3 ($66.1) $19.4 $13.2 $11.8 $11.0 $9.0 $16.4 $14.7 Interest In
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation TTI excl. Disc. Operations - Adj. EBITDA and Ad. EBITDA Margin Reconciliation '($ in Mil) TTM 2021- 2019-Q1 2019-Q2 2019-Q3 2019-Q4 2020-Q1 2020-Q2 2020-Q3 2020-Q4 2021-Q1 2021-Q2 2021-Q3 Q3 Income (Loss) Before Taxes ($9.3) ($2.2) ($4.0) ($112.6) $3.7 ($12.1) ($9.5) ($7.2) (
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation TETRA Net Debt - Reconciliation (In $ Millions) 9/30/21 2020 YE 2019 YE Non-restricted cash $ 41.9 $ 67.3 $ 15.3 Carrying value of long-term debt: Asset-based credit agreement $ - $ - $ - Term credit agreement $ 164.2 $ 199.9 $ 204.6 Net Debt $ 122.4 $ 132.6 $ 189.3 ©2021 TET
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation TETRA only Adjusted Free Cash Flow Reconciliation From Continuing Operations (in $ Millions) 2019-Q1 2019-Q2 2019-Q3 2019-Q4 2020-Q1 2020-Q2 2020-Q3 2020-Q4 2021-Q1 2021-Q2 2021-Q3 TTI Consolidated Cash from operations $ 7.4 $ 31.0 $ 46.6 $ 5.3 $ 22.2 $ 38.2 $ 4.4 $ 12.1 $ 5.
TETRA Technologies — Winter Wonderland Best Ideas Virtual Investor Conference 2022 on 6ix