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Jun 30, 2020
TETRA Q2 2020 Earnings Report
Announced second quarter 2020 results with $38 million of cash generated from operating activities.
Key Takeaways
TETRA Technologies reported a decrease in revenue by 14% compared to the previous quarter, with a net loss of $34.3 million. However, the company generated $38 million in cash from operating activities and $31 million of TETRA only adjusted free cash flow, showing improvements in working capital.
Completion Fluids & Products income before taxes was $16.0 million, representing 22.4% of revenue.
Water & Flowback Services maintained positive Adjusted EBITDA at $400,000 despite a 57% sequential decline in revenue.
TETRA only adjusted free cash flow from continuing operations was $31.2 million, a $26.8 million improvement from the first quarter of 2020.
Compression segment performance exceeded internal expectations with Adjusted EBITDA of $26.3 million.
Revenue by Segment
Forward Guidance
The company is on track to achieve its objective of being well-positioned after the pandemic, due to strong execution and diversity of end markets.
Positive Outlook
- Strong execution of strategies worked on for the past two years.
- Quick and decisive cost reduction actions.
- Diversity of end markets, including industrial chemicals, offshore, and international.
- Technology differentiated North America water and flowback business.
- Maintaining positive Adjusted EBITDA and generating free cash flow in a difficult environment.
Challenges Ahead
- Economic and operating conditions that are outside of our control
- The current significant surplus in the supply of oil and the ability of the OPEC and other oil producing nations to agree on and comply with supply limitations
- The duration and magnitude of the unprecedented disruption in the oil and gas industry currently, which is negatively impacting our business
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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