We're going to keep things moving. Again, Arun Jayaram from JP Morgan's E&P, OFS, and integrated oils teams. Really excited to welcome TETRA to the stage. I think this is one of the more unique companies that we have within the space, because they have some really, really interesting long-term growth drivers that are really differentiated. A lot of the companies within oilfield service maybe have a little bit of a commodity-type of feel to them, but this is one of the more differentiated stories within the sector, and that showed up in your equity performance. Really excited to have Brady Murphy, who's the CEO of TETRA. Brady, I was wondering if you could maybe just give investors today just a little bit of a brief background on the company. Sure. Yeah, thanks, Arun, and glad to be here. Thank you for hosting us today. As you said, I think we do have a unique story. We are 45 years old. The company was founded in 1981. The competency of the company really revolves around fluid chemistry, and we started in the completion fluids business, which is still a flagship part of our business today. Like a lot of oilfield service companies over the last 20, 30 years, got into segments, got out of a lot of segments, but we did maintain that fluid chemistry competency and expertise over the years, which several years ago, after being in the CEO seat, we really wanted to start a look at how do we leverage the fluid chemistry expertise that we have into other higher growth areas outside of oilfield services and energy spaces, particularly energy storage. We were able to evolve some of our completion fluids chemistry into electrolyte space for long duration energy storage. We have a very unique position in Arkansas with our brine resources, with critical minerals, whether it's bromine, lithium, and magnesium. All of those represent future growth opportunities for the company. Then, when the unconventional business started in North America, we got into the water management space to complement our completion fluids business, and evolved that now as water and flowback as one of our external segments. Again, with some differentiated technology. Again, looking forward with what we can do with that business is desalinating produced water and establishing a whole new business line, which doesn't exist today, but is really an industry need, particularly in the Permian Basin. Good, strong company today, performing very well, but with really three, we think, very strategic longer term growth opportunities that we have the skill sets to execute. These are not new businesses that we don't understand. This all evolves around the competency of fluid chemistry, and very confident we can execute on that. Yeah. Brady, you guys have described ONE TETRA 2030 as your plan to leverage these core fluids chemistry capabilities into these higher growth markets. What is the simplest way to describe the strategy today and that path towards ONE TETRA. Sure. In 2030? We have two external reporting segments today, our completion fluids business and our water and flowback segment. As we looked to these growth opportunities that we had and projected where we would be by 2030, we decided that really we would look differently. Instead of 70%-80% of our revenue today from oilfield services, 70%-80% in the future will be a third and a third and a third. It is three reporting segments. One on specialty chemicals and minerals, two on desalinating and treatment of produced water. Then we will keep, obviously, the high-value components of our current energy services, our completion fluids, our flowback business as part of our energy services segment. Between those three segments, we see them really kind of split a third and a third and a third, is kind of what we will look like in 2030. Each of them with very good EBITDA margin profiles, 25%-30% for some. Some of them we think get above 30% on the critical minerals piece. We laid all that out at our investor day. We got very good reception from our investors. I think we laid it out in a coherent way, with a very credible way of how we can execute on that plan. I think our investors have rewarded us accordingly. Yeah. I want to see if you can maybe talk a little bit about your calcium chloride business. What are some of the primary revenue drivers here? What's? Yeah. The competitive landscape? That's really the first business where TETRA started to take its, I say fluid chemistry expertise, and evolve it into the industrial outside of oilfield services. We developed a calcium chloride industrial business today, where we're number one in Europe, number one calcium chloride provider in Europe, and number two in the U.S. Those markets are very different than your traditional oilfield services. Food and beverage, de-icing during weather, dust binding during the spring and summer, in your water, mineralizing water. All industrial applications, we still have a piece of it associated with oil and gas. If you look at TETRA, that was kind of the first step of evolving the expertise that we have into industrial and other higher growth segments. Great. I think the future plan, and Kurt, maybe you could shed some light on this, is to report in three segments starting in 2027. What's the strategic rationale, and what do you hope investors will gain from this kind of new reporting structure? Brady, maybe you can kick that off, and I'll get back feel in. Yeah. We haven't decided it'll be for sure 2027. It could be 2028. We will be reporting three segments in the future. Again, it's to give investors a little bit more understanding of the composition of the company outside of just our oilfield service, especially chemicals and minerals, for instance. In addition to our calcium chloride business, we will layer in our electrolyte sales, and show the growth of that segment separately. Our desalination will marry up with our current recycling water for frack reuse, forming a whole new segment, again, showing our investment community what that business looks like on a discrete basis. Keeping our flagship completion fluids and energy services component separate. That's really the rationale behind it, is giving more transparency, more visibility of what these three growth strategies, how they materialize into future growth and earnings. I maybe just add to that with Brady, too. The whole concept is to leverage our fluids chemistry expertise into new growth end markets, right? One being the battery electrolyte, and the other one being the desalination for beneficial reuse. I think the other dynamic around that is these businesses and these segments all have very similar EBITDA margin profiles, all around that 30% EBITDA margin dynamic. We're looking to shed kind of a lower margin element of our water business right now. We'll see how that evolves. Ultimately, as we get through the end of the decade, we'll be closer to a 30% margin business across the board. Okay. I wanted now maybe to go down, maybe peel a layer of the onion on your businesses. Let's start with deep water completion fluids. This is where you compete at the high end of the market. We got a lot of very complicated deep water reservoirs, high pressure. Right. High temperature wells. Could you talk a little bit about your business there, and what are some of the growth drivers? Yeah. First of all, just the deep water in general. We have a very bullish outlook for what the next five years looks like from a deep water perspective. The good thing about the types of deep water projects that we're engaged in with our customers is we have almost a two-year window on those projects because we have to go through a very thorough testing of the metallurgy, how the fluid reacts with the casing of the metallurgy, the elastomers, the formation damage. We're involved in all these testing programs well ahead of these projects getting kicked off. That gives us excellent visibility, and that's why we feel really bullish about the coming years in the deep water overall. I think the trends are also helping TETRA in terms of deeper, hotter, more complex environments because that fits our higher profile, higher density, less corrosive completion fluids technology, which obviously Neptune fits into that portfolio as well. I think the combination of just a general up and to the right deep water market, coupled with some of the trends of deeper, hotter, higher pressure fits our sweet spot. I think adding to what Brady is saying, too, in terms of lead indicator. If you take a look at the subsea tree installation profile through the end of the decade, every subsea tree represents a completion fluid opportunity, right? We have generally, what, 30%-40% market share overall in the business. As I know you have TechnipFMC plc here, if you guys like TechnipFMC plc and their visibility, you kind of have to like our visibility as well. Great. I want to talk a little bit about the bromine project in Southwest Arkansas. Can you talk a little bit about what's exciting about this project? Yeah, absolutely. Bromine is a critical component for, number one, our completion fluids, our zinc bromide completion fluids, which again, is the same chemistry that we utilize to move into the electrolyte space. Zinc bromide electrolytes are the core part of the electrolytes that Eos Energy uses. The growth projections that we have for our deepwater business that we just talked about, and for what we see on the electrolyte side, requires us to really ramp up our capacity to acquire bromine. Fortunately, we have a great resource base in Arkansas. Brine leases in Southwest Arkansas, very rich in bromine. We've had this project on the radar for a long time. We've timed it to marry up with our long-term supply agreement that comes to an ending in 2029. This project will do two things. It allows us to grow our offshore business as well as our electrolyte business, and also gives us a lower cost base being vertically integrated with our own bromine supply and not relying on third-party purchases, again, as our long-term supply agreement comes to an end at the end of 2029. Very important project. We've communicated this project will add an estimated $100 million of EBITDA to TETRA's business by 2030. Combination of growth as well as cost reduction. The project financials are extremely attractive. Our board FID'd the project a month or so ago, we announced that. We did a capital raise to finalize the funding that we need for the project to be started, or completed at the end of 2027 and starting in 2028. First of what I would consider to be three really critical minerals in TETRA's future, bromine first, lithium we think will probably be second, and then magnesium the third, all of them the same brine. Each of them leveraging some of the investment that we're making in Arkansas today. Can you maybe unpack that $100 million of incremental EBITDA contribution? How much is that of cost and is on the revenue side? Yeah, we won't give discrete numbers on that. I would just think in rough terms, half of that will come through growth and half of that will come through some cost reduction opportunities. Okay. Speaking of growth markets, you've been leaning into electrolytes, and long duration battery demand as a major growth vector. Can you talk a little bit about the opportunity set? Yeah. Yeah, we really like zinc bromide electrolytes. Obviously, we're not a battery company, but we have the capability to produce very cost-effective, high purity electrolytes for the battery producers. Obviously, Eos is one of the first, Eos Energy is one of the first companies to get out there on a large commercial scale. There are others that are developing their own solutions around that, but they're not near to the level of commercial scale that Eos has achieved, so we're very happy with the relationship we have with Eos. There's really two key advantages to that technology. Number one is the long duration energy storage. You can cycle their batteries 10, 12 hours, compared to a typical lithium battery of four to six hours. Fits the utility applications very, very well having that long 12 hour charge-discharge cycle time. The other safety aspect of it. The largest market for bromine around the world is as a fire retardant. When you think of a large utility scale lithium ion, it has a fire risk associated with it. That still exists today in the amount of cost investment you have to put in place to mitigate that fire hazard. By nature, because of the zinc bromide chemistry, there is no fire hazard with these technologies. We like the technology. Eos is out and running, I think at first commercial scale, but there are others that are coming. What are the opportunities set to scale volumes of electrolytes over the next year to a couple of years? That's why this bromine project is quite important to us. Eos has announced just recently they have their second line, which will give them 4 GWh of manufacturing capacity up and running by the end of the year. I think their target is publicly stated. I am not sure they've changed yet, but it was 2027 they wanted to be at 8 GWh. Obviously, that's a meaningful volume of electrolyte for TETRA to keep pace with, which is another reason why we need the bromine plant. Okay. Just general commentary on the margin profile? Yeah, we won't obviously get into specific margins of different products, but in general, we think the electrolyte margin profile will be similar to our current completion fluids. Okay. Which they have to compete for product. Coming back to what we said earlier in our three segments. Electrolyte will be part of our specialty chemicals and minerals business. As we outlined in our investor day, we expect the margins in that business to be in that 30% EBITDA range. 25%-30%. 25%-30%. Okay. Brady, as you approach the end of the preferred supply window with Eos in 2027, what are the key priorities to extend or expand your commercial position? Yeah, we're having discussions with Eos today to extend that contract. Obviously, we're not going to get into the specific details of those discussions, but we like the partnership. They know they need a good, reliable provider, a U.S. provider. We're the only provider in the U.S. of zinc bromide, there's a security supply equation to that as well. Obviously, we want to help them be successful. We're optimistic that we'll get things agreed upon to extend the agreement. Okay. Are you in discussions with other OEMs as well? Yeah, well, not to the commercial scale that Eos is, but there are other providers out there that are investing in this technology. Okay. Yes. Let's talk about produced water, your kit for desalination. Can you talk a little bit about how the Oasis pilot performance has been doing? Yeah. We've announced publicly that we've partnered with EOG, actually quite a few years ago now, three, four years ago, we've started the partnership. We put our pilot in place in, I believe it was in October of last year, we've been running over six months now. We're under a nondisclosure agreement, so I can't provide a lot of details, but let's just say we're very happy with the results that we've been achieving. We feel confident EOG is happy with the results. We feel happy the regulatory agencies are happy with the results. We're going to continue that pilot. I think the plan is to go through several growing seasons of different grasslands and crops, et cetera. In the meantime, though, we're in discussions with other midstream companies, other operators for commercial scale applications. Very excited about that. I think that the data centers coming into West Texas have given some new push, as if there wasn't enough of a push to address the injection disposal problem in West Texas. You now have an end user that's interested in buying this treated water. That's become an exciting aspect of this. A lot more to come on that. We're doing our engineering design work for our 100,000 barrel per day plant. Once we have that, we'll be able to have deeper commercial discussions with our customers. Yeah, Chevron, at the conference, did announce a major agreement with Microsoft to build a over 2.5 GW power facility just- Yep. south of Pecos. Yeah. Can you talk a little bit about, not the business model, but how you could leverage these capabilities into- Yeah. into that data center market? Yeah. No, we've been talking about this coming. I think this is the first of many that you're going to see. Obviously Chevron can provide the natural gas for the power solution that these data centers need as they get behind the meter, have their own self-generated power. Obviously, land is not an issue in West Texas, but you do have a water issue in West Texas. Actually in all of Texas, 50% geographically of Texas is technically under a drought condition. Water is a valuable resource in the state of Texas. The state is producing 20 million barrels a day of produced water, which today is just treated as a waste because it's reinjected down hole. I think most people in the industry realize the challenge that's coming with disposing of all this produced water and the overpressuring of the formation. The operators needed a solution to address this water disposal problem for some time, which is really where TETRA started down this path, which was to provide a solution to our customers to treat this water to avoid disposal restrictions. Well, as you mentioned, Chevron and the other hyperscalers that are coming into West Texas now, they need water. They need water for cooling. There's power generation that needs water for their systems. This is, again, when we did our investor day in September last year, the data centers were not on the radar screen. We laid out our 2030 targets just on what we felt the oil and gas E&Ps would need to address their disposal issues. That's changed pretty rapidly now with this whole new demand of the hyperscalers and data centers coming in, like the Chevron announcement, and needing a water solution. That's where we come into play. Got it. May I put numbers around that? Yeah. Arun. We think, if you look at a one gigawatt data center, you have two opportunities. You got to cool the power gen unit, you got to cool the data center itself. A one gigawatt facility could be 600,000 barrels a day of water throughput for us. Right? In context of what Brady was saying on our 2030 plan, we had outlined maybe 500,000 barrels a day by 2030 for just ag and industrial use. The data center becomes a plus one to that. Got it. Are you seeing opportunities for this segment outside of the Permian Basin? I think any unconventional market in the future is going to see similar type challenges with water like the Permian is seeing now. It's just that the Permian's obviously well advanced from any other market. The volumes of water that are produced in the Permian per barrel of oil, and now just the pure volume of the Permian has it well ahead of any other market. Yeah. I think the future unconventional markets are going to face the same challenge. Okay. Water. Let's move to critical minerals. Talk to us about what you're doing in this space. Look, when we laid out our 2030 targets, we had a post-2030 objectives, which was really where most of the critical minerals for us were targeted at. As we look at things today, I would say we may likely try to accelerate the lithium side of that project. Lithium prices have rebounded nicely. They're now in the $25,000 a metric ton range. The synergies, capital synergies savings we will get from our bromine investment because all the upstream and the brine flow will be in place. A lot of the plant infrastructure around the bromine plant will be common to what we will need for lithium. Really we're talking about a direct lithium extraction plant on the backside of our bromine facility, really taking advantage of a lower CapEx, the CapEx synergies, a nice price environment, what we think could be a low OpEx environment. That project, we'll be talking more about that as we get closer. No decisions have been made, we think we'll probably accelerate that project. Magnesium is right behind it. Very interesting market. I know we're getting short on time, 95% of the world's magnesium comes from China. The U.S. has no commercial scale volume of magnesium, and of course it is relied upon by the defense industry, for whether it's helicopters, drones, whatever. It's a very lightweight, high strength metal. We think it's a critical mineral. We think we'll get good government support to help get our projects off the ground. By the way, the gift that keeps giving, the Smackover is rich in magnesium as well. That's clearly on our radar and our plans as well. Yep. Just maybe in closing, you guys held a recent analyst day. It's been a few months, maybe just kind of- Yeah. end with some of the key kind of financial targets and maybe the investment thesis and- Yeah. TETRA today. At our 2030 Investor Day, was September of last year, we said by 2030 we thought we would more than double revenue and triple EBITDA, over $300 million of EBITDA. A big part of the milestone for that is our bromine plant. As we said, that's $100 million of contribution to the company. The desalination opportunities that we have in front of us are another fairly significant contribution. The deep water market we think will continue to grow. Critical minerals, as I said, was not a big part of those 2030 targets, but as we think about it now, we may try to accelerate those. I'd say ever since our Investor Day presentation and we laid out our confidence level being able to deliver and execute that has only gotten higher. Maybe exceed those numbers. Great. Any last word? No, I think what Brady laid out is true. I think the critical springboard for us was getting the financing to fund the bromine project. That puts us well on pace and target to get the project up and running in 2028, and at that point in time, we'll be in a position to generate some higher levels of free cash flow to continue to invest in our future growth. Great. Why don't we end things there? Yeah. Thank you so much, gentlemen. Really appreciate it. Thank you. Thank you. Appreciate it. Well done. Thanks a lot.