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Dec 31, 2020
TETRA Q4 2020 Earnings Report
Announced full year and fourth quarter results, which were within the range of the preliminary results that were pre-announced.
Key Takeaways
TETRA Technologies reported a total revenue of $75 million for Q4 2020, reflecting a 3% increase from the previous quarter. The company's adjusted EBITDA, excluding non-recurring charges, reached $11.0 million, compared to $7.4 million in the third quarter. Adjusted free cash flow from continuing operations was $15.6 million, including a $14.2 million benefit from the sale of compressors.
Delivered positive Adjusted EBITDA and free cash flow in every quarter of 2020 and successfully executed on key strategies, including the deconsolidation of CSI Compressco.
Reduced operating cost by 34%, greater than the 33% decline in revenue.
Water & Flowback Services Division achieved 46% sequential revenue growth.
Completion Fluids & Products Division achieved a 32.6% Adjusted EBITDA margin, a record high without the benefit of TETRA CS Neptune® fluids activity.
Forward Guidance
In the first quarter of 2021, we continue to see strong demand for our calcium chloride business driven from extreme weather as we prepare to enter our seasonally high second quarter period in our Europe operations. Recent weather conditions will have an impact on the first quarter 2021 results as frac crews shut down due to roads not being passable. The magnitude of these curtailments are currently being quantified.
Positive Outlook
- Strong demand for calcium chloride business
- Seasonally high second quarter period in Europe operations
- Secured the first project outside the United States, in Argentina, for a fully automated sand recovery project using Sandstrom technology.
- Investing additional capital to increase the Sandstorm technology fleet by approximately 40%.
- Continued to deploy TETRA BlueLinx automated control system solution which is a key enabler for our integrated water management projects which peaked at a record 35 in the fourth quarter.
Challenges Ahead
- Weather conditions will have an impact on the first quarter 2021 results
- Frac crews shut down due to roads not being passable.
Historical Earnings Impact
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