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Investor Relations TETRA Technologies , Inc. Announces Third Quarter 2021 Income Before Discontinued Operations Of $ 2.5 Million And Adjusted EBITDA Of $ 15.0 Million THE WOODLANDS , Texas , Nov. 1 , 2021 / PRNewswire / -- TETRA Technologies , Inc. ( " TETRA " or the " Company " ) ( NYSE : TTI ) today announced third quarter 2021 results . Third quarter 2021 revenue increased 30 % from the same quarter a year ago , to $ 95 million . Compared to the second quarter of 2021 , revenue declined 7 % as the second quarter reflects the seasonal peak in our Europe industrial calcium chloride business . Excluding the $ 14 million of incremental revenue from this seasonal peak , revenue increased sequentially by 8 % on stronger Water & Flowback Services activity . The Company estimates that third quarter revenue was negatively impacted by approximately $ 11 million due to Hurricane Ida in the Gulf of Mexico and delayed international completion fluids deliveries due to global logistics and shipping challenges . Net income before discontinued operations was $ 2.5 million , including the benefit of $ 6.2 million of mark - to - market gains from TETRA's equity ownership in Standard Lithium Ltd. and CSI Compressco LP and including $ 1.3 million of non - recurring credits , net of charges . This compares to a net loss before discontinued operations of $ 6.7 million in the second quarter , including $ 4.7 million of non - recurring charges and expenses . Net income per share from continuing operations in the third quarter was $ 0.02 . Excluding the non - recurring credits , net income per share from continuing operations was $ 0.01 in the third quarter . Adjusted EBITDA was $ 15.0 million , inclusive of the mark - to - market gains of $ 6.2 million and excluding non - recurring credits , net of charges of $ 1.3 million . The mark - to - market gains were largely offset by lower earnings resulting from delays on completion fluid projects in the Gulf of Mexico due to Hurricane Ida , delays on international deliveries due to global shipping issues , and inflationary costs on our chemicals production which are expected to continue at least into the fourth quarter . Third quarter adjusted EBITDA increased $ 2.1 million , or 16 % , over the second quarter of 2021 reflecting higher mark - to- market gains and stronger operational performance from Water & Flowback Services . Cash flow from operating activities was $ 2.8 million in the third quarter of 2021 , compared to $ 1.8 million in the second quarter of 2021. Adjusted free cash flow from continuing operations was $ 1.0 million . This compares to a use of cash of $ 4.5 million of adjusted free cash flow from continuing operations in the second quarter of 2021 . Brady Murphy , TETRA's Chief Executive Officer , stated , " Our third quarter results reflect continued success in executing our strategies in an improving oil and gas market and the rapidly evolving low carbon energy markets . Our 30 % year - on - year revenue growth would have been even higher without the impact of Hurricane Ida and the well - known global logistics challenges that delayed multiple completion fluid deliveries to international customers . With the third quarter product deliveries delayed into the fourth quarter , in addition to the return of Gulf of Mexico activity plus the recent Brazil offshore awards , we expect materially higher fourth quarter revenues for Completion Fluids & Products . Despite the challenges presented by Hurricane Ida and the global logistics issues , we were able to generate $ 15 million of adjusted EBITDA - the highest since the start of the global pandemic in the first quarter of 2020 , and $ 1.0 million of positive adjusted free cash flow . Adjusted free cash flow improved sequentially by $ 5.5 million reflecting aggressive working capital management and the stronger earnings from Water & Flowback Services . We again reduced long term debt , by $ 8 million in the third quarter . We do not have any amounts drawn on our asset - based loan ( ABL ) facility . Furthermore , we amended our ABL to increase availability by more than $ 10 million and extended the maturity to 2025 , both to create financial flexibility to capitalize on a recovering oil and gas market and our low carbon initiatives . " As anticipated , Water & Flowback Services adjusted EBITDA margins improved sequentially from 5.3 % in the second quarter to 10.9 % in the third quarter - an improvement of 560 basis points on a sequential revenue increase of 24 % . Multiple factors contributed to this improvement , including fully mobilized and operational TETRA SandStorm ™ projects in Argentina , pricing improvements from many of our U.S. operations and customers , and profitable market penetration through our integrated water management projects - which reached a record high in the third quarter of 55 projects for 27 different customers . This reflects the continued acceptance of this highly efficient and differentiated offering . During the third quarter we were awarded additional work in Argentina with an early production facility and additional TETRA SandStorm ™ units , which we will build and operate on a multi - year contract starting in early 2022 . " Completion Fluids & Products adjusted EBITDA margins were 35.1 % in the third quarter including the benefit of mark - to - market gains from our equity holdings in Standard Lithium . Excluding the mark - to - market gains , adjusted EBITDA margins were 21.9 % reflecting the impact of Hurricane Ida during the quarter and inflationary pressures in certain raw materials and logistics costs . We were awarded another deepwater completion fluids project in Brazil with a major integrated service company , which is in addition to the project we previously mentioned in our last earnings press release . Despite a pause in Gulf of Mexico activity from Hurricane Ida , we continue to benefit from the recently announced three - year completion fluids and services contract for a super major oil and gas operator . These market share gains reflect our consistently strong services levels across the globe , differentiated offerings for high value complex wells and competitive advantages from our vertically integrated business model which is especially important in today's challenging supply chain environment . " We continue to make good progress with our low carbon energy initiatives . In the third quarter we received and shipped our second TETRA PureFlow ™ high purity zinc bromide order to a publicly traded energy storage technology company . We anticipate having a long - term strategic supplier agreement in place with this customer before year - end , which is expected to include material orders for 2022 and collaborative planning for longer term product supply and demand based on the significant compound annual growth rate ( CAGR ) anticipated for energy storage . Standard Lithium completed the preliminary engineering assessment ( PEA ) study to extract lithium from brine from our acreage in the Smackover Formation in Arkansas . As a reminder TETRA maintains a royalty stream from the commercial production of lithium by Standard Lithium after they exercise the option and all the mineral rights to the bromine on this acreage , which we estimate to have exploration targets of 2.54 million to 8.58 million tons of bromine . The Standard Lithium PEA indicates very attractive economics as the acreage has an estimated 1,317,262 tons of Lithium Carbonate Equivalent at the inferred resource category , which is 49 % higher from what was previously estimated . In addition to the Standard Lithium option agreement , TETRA has previously communicated that we estimate an exploration target between 85,000 and 286,000 tons of lithium on acreage not included in the Standard Lithium agreement , where TETRA holds 100 % of the lithium rights not subject to any option . We intend to drill a well in the fourth quarter on our dedicated acreage to obtain lithium and bromines samples , allowing us to move from an exploration target to an inferred resources target phase . We then intend to move towards a PEA study in early 2022 and believe there is significant value in our mineral rights in the Smackover Formation in Arkansas from a combination of our option agreement with Standard Lithium , our bromine assets to meet the growing demands for completion fluids and energy storage , and our 100 % TETRA lithium assets that are not subject to any option . We will continue to evolve these assets to create shareholder value . " We have reduced our term loan by over $ 44 million from $ 220 million on September 30 , 2020 to $ 176 million as of September 30 , 2021. We repaid $ 8 million in the third quarter of 2021 and expect to repay at least an additional $ 10 million in the fourth quarter of 2021. During the third quarter of 2021 , we recorded mark - to - market gains of $ 6.2 million on our equity holdings of CSI Compressco LP and Standard Lithium . As of September 30 , 2021 , the market value of these investments was $ 22 million , with no holding restrictions on our ability to monetize these investments . 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 from continuing operations , 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 H for reconciliations of these non - GAAP financial measures to the most directly comparable GAAP measures . Third Quarter Results and Highlights A summary of key financial metrics for the third quarter are as follows : Third Quarter 2021 Results Three Months Ended September 30 , June 30 , 2021 September 30 ,