TETRA Technologies, Inc. Announces First Quarter Results And Provides Total Year Guidance

THE WOODLANDS, Texas, May 8, 2018

TETRA's adjusted per share results attributable to TETRA stockholders for the first quarter of 2018, from continuing operations excluding special items, were a loss per share of $0.06, which compares to adjusted loss per share of $0.02 in the fourth quarter of 2017 and adjusted loss per share of $0.04 in the first quarter of 2017, also from continuing operations and excluding special items. First quarter 2018 revenue from continuing operations were $199 million, a decrease of 0.4% from the fourth quarter of 2017 and increase of 25% from the first quarter of last year. 

(Adjusted earnings/loss per share is a non-GAAP financial measure that is reconciled to the nearest GAAP measure in the accompanying schedules.)

First Quarter 2018 Results
	Three Months Ended
	March 31, 2018 ARIVA.DE Börsen-Geflüster Kurse CSI Compressco LP 2,40 $ 0,00% Tetra Techs 4,26 € +2,90%				December 31, 2017				March 31, 2017
	(In Thousands, Except per Share Amounts)
Revenue	$	199,381			$	200,081			$	159,409
Net loss before discontinued operations	(21,057)				(31,727)				(4,245)
Adjusted EBITDA before discontinued operations(1)	26,222				29,632				21,820
GAAP EPS before discontinued operations attributable to TETRA stockholders	(0.10)				(0.22)				0.04
Adjusted EPS attributable to TETRA stockholders(1)	(0.06)				(0.02)				(0.04)
GAAP Net cash provided (used) by operating activities		(31,261)				27,761				(20,538)
TETRA only adjusted free cash flow from continuing operations(1)	$	(29,917)			$	4,360			$	(8,484)

First Quarter Highlights include:

• Completed the acquisition of SwiftWater Energy Services to expand its Permian Basin water management operations.
• Completed the divestiture of TETRA's Offshore Decommissioning Services and Maritech business.
• CSI Compressco LP completed a $350 million offering of senior secured notes to retire its bank revolver and increase liquidity for growth capital.
• Announced the addition of Brady Murphy as TETRA's President and Chief Operating Officer.
• Following the acquisition of SwiftWater and divestiture of the decommissioning and Maritech operations, TETRA will report its financial results through three operating divisions: Completion Fluids & Products,  Water & Flowback Services, and Compression. The results of the decommissioning and Maritech operations are now reported as discontinued operations.
• Water & Flowback Services adjusted EBITDA increased 18% from the fourth quarter of 2017 to $11.6 million, and was 18.9% of revenue reflecting the acquisition of SwiftWater on February 28^th, in addition to strong improvements in the legacy TETRA water management operations.  Profit before taxes was $6.5 million, 10.7% of revenue. 

Stuart M. Brightman, TETRA's Chief Executive Officer, stated, "During the first quarter we brought to conclusion several initiatives to streamline our business model and expand our focus on the U.S. shale plays.    With the acquisition of SwiftWater Energy Services, we significantly increased our presence in the Permian Basin water management operations, where currently more than 45% of the U.S. operating land rigs are operating. Our exposure to the rapidly recovering U.S. shale plays is now much greater across all of our business segments.  We are well positioned to participate in the stronger onshore market with improved pricing and utilization driven higher margin. 

"The divestiture of the offshore decommissioning operations and the Maritech operations will allow us to focus our resources and capital on those businesses where we have a competitive advantage and the returns on capital are more attractive.  Going forward, our focus will be on offshore and onshore fluids where our chemistry know-how and vertically integrated business model have proven to be strong throughout the full cycle, on water management and frac flowback services in the shale plays, and on field compression, supporting the industry's needs for equipment and services to handle the significant volumes of associated gas coming from the shale plays.

"CSI Compressco successfully completed a $350 million secured bond offering to provide capital to participate in the recovering markets, eliminated ongoing maintenance covenant requirements, and retired the maturing bank revolver.  Following this bond offering, the next debt maturity for CSI Compressco is in August 2022.  CSI Compressco has increased the 2018 targeted capital investments to between $90 million and $110 million to take advantage of stronger demand for gathering system compression on improved pricing and higher utilization rates.

"Operationally, the first quarter of 2018 reflected a strong improvement in Water and Flowback Services that led total TETRA consolidated adjusted EBITDA of $26.2 million on revenues of $199 million.  The first quarter was impacted by weather delays, particularly in our Completion Fluids & Product Division where we experienced some plant shut-downs from river flooding and our Compression Division where we experienced higher field costs to restart equipment from the unusually freezing weather conditions in January in Texas.

"Completion Fluids & Products revenue was $53.1 million for the first quarter of 2018, a decline of 5.6% from the first quarter of 2017.  Although the first quarter of 2018 did not include any CS Neptune^® fluids projects, we are advancing several CS Neptune^® opportunities that are currently targeted for the second half of the year.  Our chemical plants experienced some weather-related delays in the quarter, which forced temporary facility shutdowns.  We are currently in the midst of the traditionally strong second quarter and are seeing volumes rebound to expected levels. Completion Fluids & Products Division profit before taxes was $2.4 million (4.6% of revenue), while adjusted EBITDA was $6.2 million (11.6% of revenue).

"Water & Flowback Services first quarter 2018 revenue decreased slightly to $61.1 million sequentially, but was 60% above the same quarter of 2017, led by one month of SwiftWater operations and significantly stronger activity in the U.S. shale plays.  In the month of March, SwiftWater generated $8.1 million of revenue and $1.8 million of PBT, inclusive of $0.5 million of depreciation expense.  We continue to see significant opportunities in this division, particularly in the water management services, as U.S. operators struggle with the volumes of water needed for fracking operations and then handling those same volumes during the flowback phase of the completion.  The U.S. Energy Information Administration has estimated that U.S. crude oil production is now over 10 million barrels per day.  The SwiftWater acquisition has resulted in a significant amount of cross-selling opportunities that we are taking advantage of as the addition of SwiftWater has made us one of the largest water management companies in the Permian Basin.  Water & Flowback Services profit before taxes was $6.5 million (10.7% of revenue), while adjusted EBITDA was $11.6 million (18.9% of revenue).

"First quarter 2018 Compression revenue increased 2.8% sequentially to $85.4 million.  Total service fleet utilization at the end of the quarter increased 100 basis points (bps) compared to the end of the fourth quarter, to 84.2%.  Utilization for large horsepower equipment, greater than 1000 hp per unit, increased to 92.9%. New equipment orders of $71.5 million were received in the first quarter, resulting in a backlog of $102.5 million at the end of the first quarter after a record $67 million order to fabricate and sell 45 large horsepower compressors to a midstream operator in the Permian Basin.  Compression loss before tax for the quarter ended March 31, 2018 was $14.0 million compared to a $9.7 million loss for the fourth quarter of 2017 and $14.3 million loss for the first quarter of 2017.  Adjusted EBITDA was $18.9 million, compared to $19.2 million in the fourth quarter.  During the quarter we incurred approximately $1 million of costs for weather related events.  On April 20, 2018, CSI Compressco LP declared a cash distribution attributable to the first quarter of 2018 of $0.1875 per outstanding common unit, which will be paid on May 15, 2018 to common unitholders of record as of the close of business on May 1, 2018.  The distribution coverage ratio for the first quarter of 2018 was 0.64X."

Free Cash Flow and Balance Sheet

Consolidated net use of cash from operating activities for the first quarter of 2018 was $31.3 million, compared to $27.8 million cash generated in the fourth quarter of 2017.  TETRA only adjusted free cash flow in the first quarter was a net use of $31.2 million reflecting an unusually high increase in working capital that we expect to monetize during the second and third quarters.  Consolidated net debt was $719 million, while TETRA only net debt was $177 million.  At the end of the first quarter TETRA only cash on hand was $14.0 million.  With a strong balance sheet, TETRA is positioned to invest opportunistically into the recovering market.  

Special items

Special items, including Discontinued Operations, that were incurred in the first quarter, as detailed on Schedule E, include the following:

• Discontinued operations pre-tax loss of $44.0 million from Offshore Decommissioning and Maritech
• $3.5 million non-cash prior debt issuance expense associated with the termination of CSI Compressco revolver
• $2.0 million non-cash income for a fair value adjustment of the outstanding TETRA warrants
• $1.4 million non-cash expense for a fair value adjustment of the CSI Compressco Series A Convertible Preferred units
• $1.0 million charge for transaction related expenses and other special charges

Additionally, a normalized tax rate of 21% is reflected in Adjusted Net Income, as shown on Schedule E.

Total Year 2018 Guidance

We expect total year 2018 revenue from continuing operations to be between $945 million and $985 million with consolidated adjusted EBITDA of between $168 million and $188 million. Total year projected loss before taxes is expected to be between $7.5 and $27.5 million. The table below reflects our total year expectations by division.  Completions Fluids & Products is projecting two CS Neptune^® projects in the second half of the year.  Water & Flowback Services are expected to be driven by strong activity levels in the Permian Basin and other shale play markets.  The improvement in Compression from the first quarter levels is projected to reflect a stronger price environment, higher equipment sales from the $102.5 million backlog, the deployment of incremental capital, and higher aftermarket services activity.

Projected total year capital expenditures for TETRA only are expected to be between $40 million and $50 million. CSI Compressco capital expenditures are expected to be between $90 million and $110 million inclusive of maintenance capital expenditures of between $15 million and $20 million.

Projected total year TETRA only free cash flow is expected to be between $15 million and $25 million inclusive of distributions from CSI Compressco.

Schedule J reconciles projected adjusted EBITDA to profit before taxes.

Conference Call

E-Mail-Adresse

Bitte überprüfe deine die E-Mail-Adresse.

Benachrichtigungen von ARIVA.DE
(Mit der Bestellung akzeptierst du die Datenschutzhinweise)

-1

Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink.

Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte.

Andere Nutzer interessierten sich auch für folgende News

11:46 - dpa-AFX

ROUNDUP: Hamborner Reit startet mit Gewinnplus ins Jahr - Indexmieten helfen

22.04.24 - ARIVA.DE Redaktion

US-Börsen: Nasdaq 100 tritt auf der Stelle (17.118 Pkt.)

22.04.24 - PR Newswire

Fidelity Emerging Markets Ltd - Transaction in Own Shares