NYSE$TTI

TETRA Technologies Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Announced second quarter 2022 financial results and lithium and bromine brine sampling results from exploratory well

TETRA Technologies reported a strong second quarter in 2022 with revenue of $141 million, an 8% increase from the previous quarter and a 38% increase year-over-year. Net income before discontinued operations was $1.8 million, and adjusted EBITDA was $18.7 million. The company also made significant progress on its low carbon energy opportunities, including positive results from lithium and bromine brine sampling.

  • Second quarter revenue increased 38% year-over-year, reaching $141 million.
  • Net income before discontinued operations was $1.8 million, inclusive of $4.9 million of non-recurring charges and expenses.
  • Adjusted EBITDA was $18.7 million for the quarter.
  • The company saw positive results from lithium and bromine brine sampling, with higher concentration levels compared to previously reported exploration targets.

Headline financials

Total Revenue

$141M

Previous: $102M+37.5%
EPS (adj)

$0.05

Previous: -$0.02+350.0%
Adjusted EBITDA Margin

13.3%

No prior period
Net Leverage Ratio

1.8

No prior period
Capital Expenditures

-$20.4M

Previous: -$12.5M-63.4%
Free Cash Flow

-$18.7M

Previous: -$19.2M+3.0%
Net Income

$1.75M

Previous: -$6.75M+125.8%
Operating Income

$2.07M

Previous: -$86.6M+102.4%
Gross Profit

$28.1M

Previous: $16.4M+71.0%
Cash & Equivalents

$36.3M

Previous: $50.3M-27.8%
Total Assets

$417M

Previous: $417M-0.0%
Stock-Based Comp

$1.16M

Previous: $76K+1425.0%

Revenue & EPS history

TETRA · Revenue · Quarterly

$141M

Q2 2022+37.5%vs Q2 2021
Beat estimate in 7 of 14 quarters(50%)
ActualEstimate

Revenue by segment

TETRA · $175M total across 2 segments · Q2 2023

  • Completion Fluids & Products
    $98.2M
  • Water & Flowback Services
    $77.2M

Forward guidance

Company did not provide specific forward guidance, but expressed optimism about the oil and gas sector, low carbon energy opportunities and broader earnings base.

Tailwinds

  • Strong results in the early stages of a longer term up cycle for the oil and gas sector.
  • Significant progress on low carbon energy opportunities.
  • Gaining market share with broad customer acceptance of our integrated water management business model.
  • Strong utilization and higher pricing for the TETRA Sandstorm technology.
  • New automated drill out technology is expected to reduce well site personnel by more than 30%, reduce rig up/down time by approximately 40%, and reduce HSE exposure.

Headwinds

  • Unprecedented inflation challenges for fuel, labor and equipment in the U.S.
  • The Russia/Ukraine war impacting European supply chain.
  • U.S. market growth is limited by availability of additional frac fleets.
  • Adjusted EBITDA margins were down from the first quarter and down year-on-year due to revenue mix and some inflationary costs on our European industrial chemicals business.
  • Force majeure declaration from a key raw materials supplier, resulting in lower production levels and under absorption at our Kokkola, Finland plant.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+1.8%

Avg return

Earnings day

+0.1%

Avg return

5 days after

-1.8%

Avg return

30 days after

52%

35 / 67 earnings

Positive

+37.4%

Q2 2015

Best reaction

-18.7%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.4%-4.5%+5.0%
Q4 2025-18.7%-23.9%-22.6%
Q3 2025-7.6%-7.8%-0.1%
Q1 2025+3.3%-1.4%-2.9%
Q4 2024-4.1%-11.5%-12.0%
Q3 2024+14.2%+3.5%+21.5%
Q2 2024-0.6%-13.0%-12.2%
Q1 2024-18.0%-12.4%-18.2%
Q4 2023+5.7%+2.3%+14.8%
Q3 2023-14.6%-17.8%-15.3%
Q2 2023+14.4%+20.5%+26.7%
Q1 2023-1.8%+2.5%-8.8%
Q4 2022-8.0%-7.0%-33.1%
Q3 2022-16.0%-12.1%-20.8%
Q2 2022-10.7%-15.1%-9.1%
Q1 2022+19.6%+22.6%+48.6%
Q4 2021+5.4%+18.4%+32.0%
Q3 2021+12.1%+19.2%-22.6%
Q2 2021+9.1%+7.1%+1.6%
Q1 2021+30.1%+38.6%+51.0%
Q4 2020+9.1%+3.3%+14.0%
Q3 2020-1.5%-1.8%+50.9%
Q2 2020-0.8%-15.5%-14.1%
Q1 2020+14.3%+12.2%-2.4%
Q4 2019-11.9%-24.5%-74.8%
Q3 2019-16.3%-21.2%-31.0%
Q2 2019+23.0%+33.1%+18.0%
Q1 2019-2.8%-2.8%-31.1%
Q3 2018-10.8%-21.3%-40.8%
Q2 2018+13.4%+18.2%+1.7%
Q1 2018+8.3%+10.0%+3.3%
Q4 2017-3.7%+2.4%+0.3%
Q3 2017+17.8%+13.3%+26.9%
Q2 2017-15.6%-16.9%-15.6%
Q1 2017+11.7%+7.1%-1.9%
Q4 2016-0.4%-3.8%-9.4%
Q3 2016-5.4%+6.2%+13.7%
Q2 2016-1.7%-1.9%-0.3%
Q1 2016-11.3%
Q4 2015-6.0%
Q3 2015+13.8%
Q2 2015+37.4%
Q1 2015+7.0%
Q4 2014+10.2%
Q3 2014-7.0%
Q2 2014+1.5%
Q1 2014-5.6%
Q4 2013-1.7%
Q3 2013-3.1%
Q2 2013+14.4%
Q1 2013-3.8%
Q4 2012-0.3%
Q3 2012+8.4%
Q2 2012+0.1%
Q1 2012+3.7%
Q4 2011-6.5%
Q3 2011-4.2%
Q2 2011+8.9%
Q1 2010+8.9%
Q1 2011+3.8%
Q4 2010+2.1%
Q4 2008+2.1%
Q3 2009+0.8%
Q3 2010+0.8%
Q2 2009+3.2%
Q4 2009+3.2%
Q2 2010+3.2%

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