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Investor Relations TETRA Technologies , Inc. Announces First Quarter 2021 Results THE WOODLANDS , Texas , May 4 , 2021 / PRNewswire / -- TETRA Technologies , Inc. ( " TETRA " or the " Company " ) ( NYSE : TTI ) today announced first quarter 2021 results . First quarter 2021 revenue was $ 77 million , a sequential increase of 2 % over the fourth quarter of 2020. Net loss before discontinued operations was $ 11.9 million , inclusive of $ 6.6 million of non - recurring charges and expenses . This compares to a net loss before discontinued operations of $ 7.1 million in the fourth quarter , inclusive of $ 3.4 million of non - recurring charges and expenses . Net income per share attributable to TETRA stockholders in the first quarter was $ 0.86 , which includes a $ 121 million gain following the deconsolidation of CSI Compressco LP ( " CSI Compressco " ) , approximately $ 107 million of which was non - cash . Excluding the non - recurring charges and expenses , the net loss per share attributable to TETRA stockholders was $ 0.04 . Adjusted EBITDA excluding non- recurring charges , was $ 9.0 million , which includes a $ 4.0 million benefit from the increase in TETRA's equity ownership in Standard Lithium and CSI Compressco . Cash flow from operating activities was $ 5.8 million in the first quarter of 2021 and compares to $ 12.1 million in the fourth quarter of 2020 , while adjusted free cash flow from continuing operations was $ 5.4 million , compared to $ 15.6 million in the fourth quarter of 2020. Total debt of $ 171 million at the end of the first quarter 2021 was reduced by $ 29 million from the fourth quarter of 2020. Net debt at the end of the first quarter was $ 117 million . Brady Murphy , TETRA's Chief Executive Officer , stated , " The first quarter of 2021 represents a full year since the start of the global COVID - 19 pandemic and despite the February winter storm impacting our quarterly financial results , I am pleased with the critical milestones we achieved during the quarter that are accelerating our opportunities in low carbon energy markets and positioning us very well for an improving oil and gas market . During the quarter we accomplished a successful deconsolidation of CSI Compressco , reduced our total debt by $ 29 million , achieved eight straight quarters of positive adjusted free cash flow from continuing operations , maintained positive adjusted EBITDA for our Water and Flowback segment despite the historical February winter storm impact , and advanced several of our low carbon initiatives ahead of schedule including our announcement yesterday on our strategic partnership with CarbonFree for Carbon Capture Utilization and Storage ( CCUS ) . As oil prices reached pre - COVID - 19 levels and stabilized for the past few months , we believe both the U.S. and international markets will continue with meaningful recovery for the rest of 2021 with continuing momentum into 2022 . " In the first quarter , we generated $ 9.0 million of adjusted EBITDA which was inclusive of an estimated unfavorable impact of $ 3.1 million due to the severe weather conditions during February that shut down fracking activity in several of our key markets and negatively impacted the supply chain for our industrial chemicals operations . In March we saw a strong rebound of activity with double digit adjusted EBITDA margins in our Water & Flowback Services segment and over 25 % adjusted EBITDA margins for our Completion Fluids & Products segment . As we enter the second quarter , we see stronger activity levels that are well above our March run rate . We are optimistic for delivering a very solid second quarter that will be representative of what we can achieve in the current market environment as we leverage our strong industrial chemicals business , proprietary automation technology , and strong international and offshore market position for completion fluids . Although we are seeing some inflationary costs for fuel and wages , we have been successful pushing across price increases which will allow us to further improve our margins in the US onshore business . Since the issuance of our prior press release , we secured a second project in Argentina for a fully automated sand recovery using our proprietary Sandstrom TM advanced cyclone technology . Our TETRA BlueLinxtm digitized control system solution continues to be a key enabler for our integrated water management projects as we achieved a record high 47 integrated water management projects with 22 different customers in the first quarter , up from 35 projects in the fourth quarter . Our Northern Europe industrial chemicals business is off to a strong start in the second quarter , as they have also been able to successfully secure price increases . " Adjusted EBITDA in the first quarter included $ 4.0 million in gains on the increased equity value of our holdings in CSI Compressco LP and Standard Lithium where we own approximately 11 % and 1 % , respectively . Following the earlier announcement on the deconsolidation of CSI Compressco and reflecting the $ 77 million of cash from operating activities and the $ 59 million of adjusted free cash flow from continuing operations that we generated in 2020 , we have reduced our term loan by $ 36 million from $ 220.5 million as of September 30 , 2020 to $ 184.2 million as of March 31 , 2021. Additionally , at the end of March no amounts were outstanding under our bank revolver . " We continue to invest significant management time and technical expertise to evolve our low carbon opportunities with meaningful advancements in each of the key areas of Carbon Capture Utilization and Storage as well as zinc bromide and lithium for energy storage . We are pleased to announce that we reached an agreement with CarbonFree yesterday in which we believe is a step change for the technical and commercial model for Carbon Capture Utilization and Storage . We have also qualified our " TETRA PureFlow " ultra - pure zinc bromide with two technology leaders in the energy storage space , with first revenues expected as early as this year . In April we received our additional Standard Lithium shares per our agreement . We expect to continue to make meaningful progress on these initiatives in the coming quarters to further evolve our diverse revenue stream and to accelerate our entry into low carbon energy . " This press release includes the following financial measures that are not presented in accordance with generally accepted accounting principles in the United States ( " GAAP " ) : Adjusted earnings per share attributable to TETRA stockholders , Adjusted EBITDA , and Adjusted EBITDA Margin ( Adjusted EBITDA as a percent of revenue ) on consolidated and segment basis , Adjusted income / ( loss ) before tax , adjusted free cash flow from continuing operations , and net debt . Please see Schedules E through I for reconciliations of these non - GAAP financial measures to the most directly comparable GAAP measures . First Quarter Results and Highlights A summary of key financial metrics for the first quarter are as follows : First Quarter 2021 Results Revenue ( Loss ) / income before discontinued operations Adjusted EBITDA before discontinued operations GAAP EPS before discontinued operations attributable to TETRA stockholders Adjusted EPS attributable to TETRA stockholders GAAP net cash provided by operating activities Adjusted free cash flow from continuing operations March 31 , 2020 Three Months Ended December 31 , 2020 ( In Thousands , Except per Share Amounts ) 77,324 $ 132,704 ( 11,943 ) March 31 , 2021 $ 2,992 21,832 $ 75,458 ( 7,097 ) 8,981 11,001 ( 0.10 ) ( 0.06 ) 0.02 ( 0.04 ) ( 0.03 ) 0.04 $ 5,819 5,369 12,085 $ 15,585 22,176 $ 4,495 Completion Fluids & Products first quarter of 2021 revenue of $ 46.5 million increased 5 % from the fourth quarter of 2020 driven by higher calcium chloride sales on the winter weather conditions and improving oil and gas demand , somewhat offsetting lower sales for our high value completion fluids for international and offshore oil and gas markets . Completion Fluids & Products income before taxes was $ 9.0 million in the first quarter ( 19.4 % of revenue ) compared to $ 11.0 million ( 24.9 % of revenue ) in the fourth quarter of 2020. Adjusted EBITDA of $ 11.0 million decreased $ 3.4 million sequentially . First quarter Adjusted EBITDA included $ 1.1 million favorable impact from the Company's agreement with Standard Lithium . We estimate that the first quarter adverse weather conditions negatively impacted our chemical operations by approximately by $ 0.8 million in adjusted EBITDA , mainly on a disruption to our chemicals supply chain and onshore fluids . Water & Flowback Services revenue was $ 30.8 million in the first quarter of 2021 , a decrease of 2 % from the fourth quarter of 2020 , and loss before taxes was $ 5.5 million . Adjusted EBITDA of $ 0.9 million ( 2.9 % of revenue ) decreased $ 2.8 million sequentially as the winter storms resulted in activity shutting down for a period of time in certain regions of the Southwest United States . We estimate that the impact from the adverse weather conditions reduced adjusted EBITDA by approximately $ 2.3 million during the first quarter . Free Cash Flow and Balance Sheet Cash from operating activities was $ 5.8 million in the first quarter while adjusted free cash flow from continuing operations was $ 5.4 million . Liquidity at the end of first quarter was $ 81 million , an improvement of $ 18 million from the same period last year . Liquidity is defined as unrestricted cash plus availability under the revolving credit facility . At the end of the first quarter unrestricted cash was $ 54 million and availability under our credit facility was $ 27 million . Long - term