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TETRA Technologies Reports Solid Fourth Quarter Results

TETRA Technologies, Inc. has recently unveiled its financial results for the fourth quarter and the entire year of 2024, showcasing a robust operational performance that sets a positive trajectory for the upcoming year. The company, known for its commitment to sustainable energy solutions, reported a GAAP net income of $102 million for the fourth quarter, translating to earnings of $0.77 per share. This performance reflects several strategic initiatives and operational adjustments that have been implemented over recent months.

Solid Financial Performance

During the fourth quarter, TETRA generated a revenue of $134.5 million, a slight decrease from the prior quarter but still reflective of strong demand in offshore activities, particularly in the Gulf of Mexico. The company's Adjusted EBITDA stood at $22.8 million, boasting a margin improvement despite the slight revenue drop.

Brady Murphy, TETRA's President and CEO, remarked on the results, attributing the success to increased offshore activity and a resilient industrial chemicals sector. Despite facing challenges with the year-end U.S. onshore market, TETRA’s focus on produced water solutions has led to record treatment and recycling volumes, underscored by the successful launch of their TETRA Oasis Total Desalination Solution (TDS).

Strategic Developments

In January 2025, TETRA sold its shares in Kodiak Gas Services, generating approximately $19 million, an affirmation of its aggressive cash management strategies. The current year started strong, with projects like TETRA CS Neptune already showing promise in terms of both operational viability and cash flows. TETRA expects net income before taxes in the first half of 2025 to range between $19 million and $34 million, with anticipations for Adjusted EBITDA of $55 million to $65 million.

The first half of 2025 will see TETRA capitalize on its momentum from various key projects, including the deep-water initiatives in Brazil and the increased demand for its electrolyte product, TETRA PureFlow. These efforts will not only boost revenue but are also set to contribute significantly to free cash flow generation.

Looking Forward

TETRA’s outlook for 2025 indicates a forecasted revenue growth in the high single-digit to low double-digit percentage range, with expectations to generate over $50 million in free cash flow from its core business activities. With a stable balance sheet and the required liquidity to support its initiatives, TETRA remains poised to enhance shareholder value.

A notable highlight in the fourth quarter results was the favorable adjustment of $97.5 million regarding deferred tax assets, which CEO Murphy noted reflects TETRA's profitable performance in the U.S. over recent years. This positions the company to leverage significant tax benefits in the future, further supporting its strategic growth initiatives in both the water treatment and mineral sectors.

The completion of the TETRA CS Neptune wells is just the beginning as the company eyes growth opportunities, including a significant seasonal ramp-up expected in its industrial calcium chemicals operations later in the year.

TETRA’s commitment to sustainable practices and its innovative approaches to water treatment are not only critical responses to industry demands but also align with broader environmental goals, ensuring that the company remains competitive in a rapidly evolving market.

As the first half of 2025 unfolds, TETRA Technologies is set to maintain its focus on operational excellence, aiming to navigate market fluctuations while driving long-term growth and profitability through strategic planning and continuous innovation.