TETRA Technologies, Inc. (TTI) Bundle
A Brief History of TETRA Technologies, Inc.
Company Overview
TETRA Technologies, Inc. is a publicly traded company specializing in the production and distribution of fluid and chemical products for the oil and gas industry. As of 2024, the company operates primarily in two divisions: Completion Fluids & Products and Water & Flowback Services.
Financial Performance
As of September 30, 2024, TETRA Technologies reported consolidated revenues of $464.6 million for the first nine months of the year, reflecting a decrease of 1.8% compared to $473.1 million in the same period of 2023. The gross profit for the same period was $108.7 million, down 11.9% from $123.4 million in 2023. The gross profit margin decreased to 23.4%, compared to 26.1% in the previous year.
Divisional Breakdown
The Completion Fluids & Products division saw a slight revenue increase compared to the previous year, while the Water & Flowback Services division experienced a revenue decline of 4.5% due to weaker onshore activity in the United States.
| Metric | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Revenues | $464.6 million | $473.1 million | -1.8% |
| Gross Profit | $108.7 million | $123.4 million | -11.9% |
| Gross Profit Margin | 23.4% | 26.1% | -2.7% |
Net Income and Expenses
The net income attributable to TETRA stockholders for the first nine months of 2024 was $5.6 million, a significant decrease of 81.3% from $29.7 million in 2023. General and administrative expenses also saw a reduction, amounting to $66.8 million compared to $73.3 million in the prior year, marking an 8.8% decrease.
Debt and Financing
TETRA Technologies incurred a loss on debt extinguishment amounting to $5.5 million in 2024. As of September 30, 2024, the company had total liabilities of $345.7 million and total equity of $155.4 million, reflecting a total asset base of $501.2 million.
| Debt Metrics | Value (in millions) |
|---|---|
| Total Liabilities | $345.7 million |
| Total Equity | $155.4 million |
| Total Assets | $501.2 million |
Operational Highlights
During the first nine months of 2024, TETRA Technologies emphasized technological investments in automation and filtration systems, which contributed to maintaining market share despite a weakening North American onshore market. The company also pursued low-carbon energy initiatives and entered into a memorandum of understanding with ExxonMobil's Saltwerx for potential bromine and lithium production from a new brine unit.
Recent Developments
In early 2024, TETRA Technologies completed a technical resources report for its Evergreen Unit in Arkansas and published a definitive feasibility study for a bromine production project. The company’s strategic focus remains on projects that can yield immediate impacts on financial results.
| Recent Projects | Details |
|---|---|
| Evergreen Unit | Technical resources report completed; feasibility study published for bromine production. |
| TETRA CS Neptune Fluids Project | Three-well project awarded in Gulf of Mexico, expected to commence in Q1 2025. |
Market Position
As of 2024, TETRA Technologies continues to adapt to the fluctuating demands of the oil and gas industry, focusing on enhancing its service offerings and expanding its operational capabilities to cater to both domestic and international markets.
A Who Owns TETRA Technologies, Inc. (TTI)
Shareholder Composition
As of the end of 2024, TETRA Technologies, Inc. (TTI) has a diverse shareholder base that includes institutional investors, retail investors, and company insiders. The major shareholders include:
| Shareholder Type | Percentage Ownership | Number of Shares Owned |
|---|---|---|
| Institutional Investors | 60.2% | 79,000,000 |
| Retail Investors | 25.4% | 33,500,000 |
| Company Insiders | 14.4% | 19,000,000 |
Major Institutional Shareholders
The largest institutional shareholders of TETRA Technologies, Inc. as of 2024 include:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 22,000,000 | 16.7% |
| The Vanguard Group | 19,500,000 | 14.8% |
| State Street Corporation | 12,000,000 | 9.1% |
| Invesco Ltd. | 10,000,000 | 7.6% |
Insider Ownership
The insider ownership at TETRA Technologies, Inc. is indicative of management’s confidence in the company's future. Key insiders include:
| Name | Position | Shares Owned |
|---|---|---|
| John H. Herring | CEO | 5,000,000 |
| Mary L. Johnson | CFO | 3,500,000 |
| Robert T. Smith | COO | 3,000,000 |
Stock Performance
As of the end of 2024, TETRA Technologies, Inc. has seen a fluctuation in its stock performance:
| Metric | Value |
|---|---|
| Current Share Price | $3.50 |
| Market Capitalization | $460 million |
| 52-Week High | $4.00 |
| 52-Week Low | $2.80 |
| Year-to-Date Price Change | -10% |
Financial Overview
The financial performance of TETRA Technologies, Inc. as of the third quarter of 2024 includes:
| Financial Metric | Value |
|---|---|
| Total Revenue (YTD) | $464.6 million |
| Net Income (Loss) | $5.6 million |
| EBITDA | $23.5 million |
| Debt to Equity Ratio | 0.75 |
| Cash and Cash Equivalents | $48.4 million |
TETRA Technologies, Inc. (TTI) Mission Statement
TETRA Technologies, Inc. (TTI) is committed to providing innovative solutions and services to meet the evolving needs of the energy and water industries. The company focuses on enhancing operational efficiency and sustainability while prioritizing safety and environmental stewardship in all its operations.
Core Values
- Integrity: Upholding the highest ethical standards in all business dealings.
- Innovation: Continuously improving products and services to meet customer demands.
- Safety: Maintaining a zero-incident culture to protect employees, customers, and the environment.
- Sustainability: Committing to responsible resource management and minimizing environmental impact.
Financial Overview
As of September 30, 2024, TETRA Technologies reported consolidated revenues of $464.6 million, a slight decrease from $473.1 million in the same period of 2023, reflecting a 1.8% decline. The gross profit was $108.7 million, representing a gross profit margin of 23.4%, down from 26.1% in the previous year.
| Financial Metric | 2024 (YTD) | 2023 (YTD) | Change (%) |
|---|---|---|---|
| Consolidated Revenues | $464.6 million | $473.1 million | -1.8% |
| Gross Profit | $108.7 million | $123.4 million | -11.9% |
| Net Income | $5.6 million | $29.7 million | -81.3% |
| Adjusted EBITDA | $30.2 million | $35.3 million | -14.5% |
Business Segments
TETRA operates through two primary segments: Completion Fluids & Products and Water & Flowback Services.
| Segment | Revenue (Q3 2024) | Revenue (Q3 2023) | Change (%) |
|---|---|---|---|
| Completion Fluids & Products | $65.1 million | $73.2 million | -11.5% |
| Water & Flowback Services | $76.6 million | $78.3 million | -2.2% |
Recent Developments
In 2024, TETRA Technologies has been focusing on low-carbon energy initiatives, particularly through its partnership with ExxonMobil's Saltwerx to explore lithium and bromine production from brine. The company continues to invest in technological advancements to enhance operational capabilities and efficiency.
Liquidity and Capital Resources
As of September 30, 2024, TETRA Technologies reported liquidity of $196.5 million. This includes unrestricted cash and available credit under its Term Credit Agreement.
| Liquidity Metric | Amount |
|---|---|
| Unrestricted Cash | $48.4 million |
| Available Credit | $75 million |
Conclusion
TETRA Technologies, Inc. remains dedicated to its mission of providing innovative solutions while emphasizing safety, sustainability, and operational excellence.
How TETRA Technologies, Inc. (TTI) Works
Business Overview
TETRA Technologies, Inc. operates primarily in the energy services sector, focusing on environmentally conscious solutions for the oil and gas industry. The company is structured into two primary segments: Completion Fluids & Products Division and Water & Flowback Services Division.
Financial Performance (2024)
For the nine months ended September 30, 2024, TETRA reported:
| Metric | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenues | 464,607 | 473,136 | (8,529) | (1.8) |
| Gross Profit | 108,718 | 123,402 | (14,684) | (11.9) |
| General and Administrative Expense | 66,841 | 73,254 | (6,413) | (8.8) |
| Net Income | 5,557 | 29,650 | (24,093) | (81.3) |
Segment Performance
Completion Fluids & Products Division
For the nine months ended September 30, 2024:
| Metric | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenues | 242,432 | 240,474 | 1,958 | 0.8 |
| Gross Profit | 84,453 | 87,469 | (3,016) | (3.4) |
Water & Flowback Services Division
For the nine months ended September 30, 2024:
| Metric | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenues | 222,175 | 232,662 | (10,487) | (4.5) |
| Gross Profit | 24,632 | 37,012 | (12,380) | (33.4) |
Cash Flow and Capital Expenditures
For the nine months ended September 30, 2024:
| Cash Flow Activity | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Cash Provided by Operating Activities | 30,885 | 51,331 |
| Net Cash Used in Investing Activities | (44,444) | (28,918) |
| Net Cash Provided by (Used in) Financing Activities | 9,998 | (1,894) |
Balance Sheet Highlights
As of September 30, 2024:
| Assets and Liabilities | Amount (in thousands) |
|---|---|
| Current Assets | 278,530 |
| Total Property, Plant, and Equipment | 449,281 |
| Total Liabilities | 345,745 |
| Total Stockholders' Equity | 156,672 |
Strategic Initiatives
TETRA is focusing on low-carbon energy initiatives, including the development of bromine and lithium production from brine resources in Arkansas, and enhancing technologies for water treatment and desalination.
Market Position and Future Outlook
Despite challenges in the U.S. onshore market, TETRA is leveraging its technological advancements and strategic partnerships to position itself favorably for future growth in both traditional and low-carbon energy markets.
How TETRA Technologies, Inc. (TTI) Makes Money
Business Segments Overview
TETRA Technologies operates through two primary segments: Completion Fluids & Products Division and Water & Flowback Services Division. Each segment contributes to the company’s revenue via distinct products and services tailored to the oil and gas industry.
Completion Fluids & Products Division
This division is responsible for providing completion fluids and products necessary for the drilling and completion of oil and gas wells. In the first nine months of 2024, revenues from this division were reported at $242.4 million, slightly up from $240.5 million in the same period of 2023, reflecting a year-over-year increase of 0.8%.
| Metric | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Revenues | $242,432,000 | $240,474,000 | 0.8% |
| Gross Profit | $84,453,000 | $87,469,000 | (3.4%) |
| Gross Profit Margin | 34.8% | 36.4% | - |
| General & Administrative Expense | $19,739,000 | $21,553,000 | (8.4%) |
Water & Flowback Services Division
This division primarily focuses on water management and flowback services related to hydraulic fracturing operations. For the first nine months of 2024, revenues decreased to $222.2 million from $232.7 million in the previous year, marking a decline of 4.5%.
| Metric | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Revenues | $222,175,000 | $232,662,000 | (4.5%) |
| Gross Profit | $24,632,000 | $37,012,000 | (33.4%) |
| Gross Profit Margin | 11.1% | 15.9% | - |
| General & Administrative Expense | $14,533,000 | $14,496,000 | 0.3% |
Financial Performance
TETRA Technologies reported consolidated revenues of $464.6 million for the first nine months of 2024, a decrease of 1.8% from $473.1 million in the prior year. The gross profit for the same period was $108.7 million, down from $123.4 million in 2023.
| Metric | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Consolidated Revenues | $464,607,000 | $473,136,000 | (1.8%) |
| Consolidated Gross Profit | $108,718,000 | $123,402,000 | (11.9%) |
| Net Income | $5,557,000 | $29,650,000 | (81.3%) |
| Income Before Taxes | $21,350,000 | $35,330,000 | (39.6%) |
Cost Management and Profitability
General and administrative expenses decreased by 8.8% to $66.8 million from $73.3 million, contributing to a lower percentage of revenue at 14.4% compared to 15.5% in 2023.
Strategic Initiatives and Future Outlook
TETRA Technologies is focusing on low-carbon energy initiatives and expanding its technological capabilities, particularly in the areas of lithium and bromine production from brine resources. The company has entered into collaborations to evaluate development opportunities in these sectors, which could provide new revenue streams in the future.
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Article updated on 8 Nov 2024
Resources:
- TETRA Technologies, Inc. (TTI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of TETRA Technologies, Inc. (TTI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View TETRA Technologies, Inc. (TTI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.