PR Newswire | Aug 7, 2020 07:00AM EDT

08/07 06:00 CDT

TETRA Technologies, Inc. Announces Update To Second Quarter 2020 Results THE WOODLANDS, Texas, Aug. 7, 2020

THE WOODLANDS, Texas, Aug. 7, 2020 /PRNewswire/ -- On August 4, 2020, TETRA Technologies, Inc. ("TETRA" or the "Company") (NYSE:TTI), after TETRA had released earnings but before the Company had filed its Form 10-Q for the three and six months ended June 30, 2020, one of TETRA's offshore completion fluids customers announced it had filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code (the "Customer Bankruptcy"). As a result of the Customer Bankruptcy, TETRA recorded bad debt expense of approximately $2.8 million in the three and six months ended June 30, 2020 to reflect TETRA's assessment of the collectability of the outstanding receivable from that customer. TETRA recorded this charge in the general and administrative expense line of the Consolidated Statements of Operations. Due to the timing of the Customer Bankruptcy announcement, our August 4th earnings release did not take into account this significant unusual bad debt expense. Please note such bad debt expense does not impact the Company's previously reported revenues, Adjusted EBITDA, Adjusted EBITDA margins, cash from operations or adjusted free cash flow.

The attached schedules have been updated from what was previously released to reflect this bad debt reserve.

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, TETRA-only adjusted free cash flow from continuing operations, and net debt. Please see Schedules E-K for reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures.

Investor ContactFor further information: Elijio Serrano, CFO, TETRA Technologies, Inc., The Woodlands, Texas, Phone: 281.367.1983, www.tetratec.com

Financial Statements, Schedules and Non-GAAP Reconciliation Schedules (Unaudited)Schedule A: Consolidated Income StatementSchedule B: Financial Results By SegmentSchedule C: Consolidated Balance SheetSchedule D: Long-Term DebtSchedule E: Statement Regarding Use of Non-GAAP Financial MeasuresSchedule F: Special ItemsSchedule G: Non-GAAP Reconciliation to GAAP FinancialsSchedule H: Non-GAAP Reconciliation of TETRA Net DebtSchedule I: Non-GAAP Reconciliation to TETRA Only Adjusted Free Cash FlowSchedule J: Non-GAAP Reconciliation to TETRA Only Adjusted Free Cash Flow From Continuing OperationsSchedule K: Non-GAAP Reconciliation to TETRA Adjusted EBITDA Margins and Adjusted Income (Loss) Before Tax Margins

Company Overview and Forward-Looking StatementsTETRA Technologies, Inc. is a geographically diversified oil and gas services company, focused on completion fluids and associated products and services, water management, frac flowback, production well testing, and compression services and equipment. TETRA owns an equity interest, including all of the general partner interest, in CSI Compressco LP (NASDAQ:CCLP), a master limited partnership.

Schedule A: Consolidated Income Statement (Unaudited)

Three Months Ended Six Months Ended

Jun 30, 2020 Mar 31, 2020 Jun 30, 2019 Jun 30, 2020 Jun 30, 2019

(In Thousands, Except per Share Amounts)

Revenues $ 192,441 $ 222,942 $ 288,796 $ 415,383 $ 532,524

Cost of sales,services, and 133,892 148,694 206,302 282,586 383,046rentals

Depreciation,amortization, 29,842 29,460 31,817 59,302 62,445and accretion

Impairmentsand other 8,977 5,371 2,311 14,348 2,457charges

Insurance (591) - - (591) -recoveries

Total cost of 172,120 183,525 240,430 355,645 447,948revenues

Gross profit 20,321 39,417 48,366 59,738 84,576

General andadministrative 34,014 30,537 36,295 64,551 70,572expense

Interest 17,586 17,856 18,529 35,442 36,908expense, net

Warrants fairvalueadjustment 11 (338) (1,520) (327) (1,113)(income)expense

CCLP Series APreferredUnits fairvalue - - 146 - 1,309adjustment(income)expense

Other (income) 3,839 439 627 4,278 (324)expense, net

Loss beforetaxes and (35,129) (9,077) (5,711) (44,206) (22,776)discontinuedoperations

Provision for 2,001 1,154 2,490 3,155 4,099income taxes

Loss beforediscontinued (37,130) (10,231) (8,201) (47,361) (26,875)operations

Discontinuedoperations:

Loss fromdiscontinued 163 (145) (345) 18 (771)operations,net of taxes

Net loss (36,967) (10,376) (8,546) (47,343) (27,646)

Less: lossattributableto 15,712 8,825 1,633 24,537 9,895noncontrollinginterest

Net lossattributable $ (21,255) $ (1,551) $ (6,913) $ (22,806) $ (17,751)to TETRAstockholders

Basic pershareinformation:

Loss beforediscontinuedoperations $ (0.17) $ (0.01) $ (0.06) $ (0.18) $ (0.13)attributableto TETRAstockholders

Income (loss)fromdiscontinuedoperations $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ (0.01)attributableto TETRAstockholders

Net lossattributable $ (0.17) $ (0.01) $ (0.06) $ (0.18) $ (0.14)to TETRAstockholders

Weightedaverage shares 125,886 125,587 125,612 125,736 125,646outstanding

Diluted pershareinformation:

Loss beforediscontinuedoperations $ (0.17) $ (0.01) $ (0.06) $ (0.18) $ (0.13)attributableto TETRAstockholders

Income (loss)fromdiscontinuedoperations $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ (0.01)attributableto TETRAstockholders

Net lossattributable $ (0.17) $ (0.01) $ (0.06) $ (0.18) $ (0.14)to TETRAstockholders

Weightedaverage shares 125,886 125,587 125,612 125,736 125,646outstanding

Schedule B: Financial Results By Segment (Unaudited)

Three Months Ended Six Months Ended

Jun 30, 2020 Mar 31, 2020 Jun 30, 2019 Jun 30, 2020 Jun 30, 2019

(In Thousands)

Revenues bysegment:

CompletionFluids & $ 71,346 $ 75,237 $ 79,767 $ 146,583 $ 141,348ProductsDivision

Water &Flowback 24,723 57,467 73,124 82,190 151,802ServicesDivision

Compression 96,372 90,238 135,905 186,610 239,374Division

Eliminations - - - - -and other

Total $ 192,441 $ 222,942 $ 288,796 $ 415,383 $ 532,524revenues

Gross profit(loss) bysegment:

CompletionFluids & $ 20,819 $ 25,964 $ 19,809 $ 46,783 $ 30,472ProductsDivision

Water &Flowback (4,836) 3,267 7,490 (1,569) 16,341ServicesDivision

Compression 4,511 10,380 21,235 14,890 38,094Division

Corporateoverhead and (173) (194) (168) (366) (331)eliminations

Total gross $ 20,321 $ 39,417 $ 48,366 $ 59,738 $ 84,576profit

Income(loss)before taxesby segment:

CompletionFluids & $ 13,202 $ 19,396 $ 14,614 $ 32,598 $ 20,800ProductsDivision

Water &Flowback (8,418) (2,244) 2,460 (10,662) 4,691ServicesDivision

Compression (23,006) (12,790) (3,483) (35,796) (11,284)Division

Corporateoverhead and (16,907) (13,439) (19,302) (30,346) (36,983)eliminations

Total income(loss) $ (35,129) $ (9,077) $ (5,711) $ (44,206) $ (22,776)before taxes



Please note that the above results by Segment include special charges and expenses. Please see Schedule F for details of those special charges and expenses.

(1) Excludes discontinued operations

Schedule C: Consolidated Balance Sheet (June 30, 2020 Unaudited)

June 30, 2020 December 31, 2019

(In Thousands)

Balance Sheet:

Cash (excluding restricted cash) $ 56,722 $ 17,704

Accounts receivable, net 114,306 175,918

Inventories 115,506 136,510

Other current assets 22,453 21,222

PP&E, net 713,584 758,637

Operating lease right-of-use assets 75,524 68,131

Other assets 90,499 93,800

Total assets $ 1,188,594 $ 1,271,922

Liabilities of discontinued operations $ 1,873 $ 2,098

Other current liabilities 145,454 186,625

Long-term debt ^(1) 843,292 842,871

Long-term portion of asset retirement obligations 12,862 12,762

Warrants liability 123 449

Operating lease liabilities 60,693 53,919

Other long-term liabilities 11,611 10,372

Equity 112,686 162,826

Total liabilities and equity $ 1,188,594 $ 1,271,922



(1) Please see Schedule D for the individual debt obligations of TETRA and CSI Compressco LP.

Schedule D: Long-Term Debt (Unaudited)

TETRA Technologies Inc. and its subsidiaries, other than CSI Compressco LP and its subsidiaries, are obligated under an asset-based bank credit agreement and a term credit agreement, neither of which are obligations of CSI Compressco LP and its subsidiaries. CSI Compressco LP and its subsidiaries are obligated under a separate asset-based bank credit agreement and two series of senior notes, neither of which are obligations of TETRA and its other subsidiaries. Amounts presented exclude deferred financing costs.

June 30, 2020 December 31, 2019 June 30, 2019

(In Thousands)

TETRA

Asset-Based Credit Agreement $ - $ 1,000 $ 20,000

Term Credit Agreement 220,500 220,500 220,500

TETRA total debt 220,500 221,500 240,500

Less current portion - - -

TETRA total long-term debt $ 220,500 $ 221,500 $ 240,500

CSI Compressco LP

CCLP Credit Agreement 1,477 3,500 -

7.25% Senior Notes 80,722 295,930 295,930

7.50% Senior Notes 400,000 350,000 350,000

Second Lien Notes 155,529 - -

Total debt 637,728 649,430 645,930

Less current portion - - -

CCLP total long-term debt $ 637,728 $ 649,430 $ 645,930

Consolidated total long-term debt $ 858,228 $ 870,930 $ 886,430

Schedule E: Statement Regarding Use of Non-GAAP Financial Measures

In addition to financial results determined in accordance with GAAP, this press release may include the following non-GAAP financial measures for the Company: net debt; adjusted consolidated and segment income (loss) before taxes and special charges; adjusted diluted earnings (loss) per share before discontinued operations; consolidated and segment adjusted EBITDA; net income (loss) before taxes, Adjusted income (loss) before tax, Adjusted income (loss) before tax as a % of revenue, TETRA only adjusted free cash flow and TETRA only free cash flow from continuing operations; and segment adjusted EBITDA as a percent of revenue ("Adjusted EBITDA margin"). The following schedules provide reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures. The non-GAAP financial measures should be considered in addition to, not as a substitute for, financial measures prepared in accordance with GAAP, as more fully discussed in the Company's financial statements and filings with the Securities and Exchange Commission.

Management believes that the exclusion of the special charges from the historical results of operations enables management to evaluate more effectively the Company's operations over the prior periods and to identify operating trends that could be obscured by the excluded items.

Adjusted income (loss) before taxes (and adjusted income (loss) before taxes as a percent of revenue) is defined as the Company's (or the Segment's) income (loss) before taxes excluding certain special or other charges (or credits). Adjusted income (loss) before taxes (and adjusted income (loss) before taxes as a percent of revenue) is used by management as a supplemental financial measure to assess financial performance, without regard to charges or credits that are considered by management to be outside of its normal operations.

Adjusted diluted earnings (loss) per share before discontinued operations is defined as the Company's diluted earnings (loss) per share excluding certain special or other charges (or credits). Adjusted diluted earnings (loss) per share is used by management as a supplemental financial measure to assess financial performance, without regard to charges or credits that are considered by management to be outside of its normal operations.

Adjusted EBITDA before discontinued operations (and Adjusted EBITDA before discontinued operations as a percent of revenue) is defined as earnings before interest, taxes, depreciation, amortization, impairments and certain non-cash charges and non-recurring adjustments. Adjusted EBITDA before discontinued operations (and Adjusted EBITDA margin) is used by management as a supplemental financial measure to assess the financial performance of the Company's assets, without regard to financing methods, capital structure or historical cost basis and to assess the Company's ability to incur and service debt and fund capital expenditures.

Adjusted income before tax is defined as earnings (loss) before interest, taxes, impairments and certain non-cash charges and non-recurring adjustments. Adjusted income before tax (and Adjusted income before tax as a percent of revenue or Adjusted income before tax margin which is Adjusted income before tax divided by revenue) is used by management as a supplemental financial measure to assess the financial performance of the Company's normalized profitability while excluding any unusual, non-recurring items and tax benefits or detriment.

TETRA only adjusted free cash flow is a non-GAAP measure that the Company defines as cash from TETRA's operations, less capital expenditures net of sales proceeds and cost of equipment sold and including cash distributions to TETRA from CSI Compressco LP. TETRA only adjusted free cash flow from continuing operations is defined as TETRA only adjusted free cash flow less discontinued operations EBITDA and discontinued operations capital expenditures. Management uses this supplemental financial measure to:

* assess the Company's ability to retire debt; * evaluate the capacity of the Company to further invest and grow; and * to measure the performance of the Company as compared to its peer group.

TETRA only adjusted free cash flow and TETRA only adjusted free cash flow from continuing operations do not necessarily imply residual cash flow available for discretionary expenditures, as they exclude cash requirements for debt service or other non-discretionary expenditures that are not deducted.

TETRA net debt is defined as the sum of the carrying value of long-term and short-term debt on its consolidated balance sheet, less cash, excluding restricted cash on the consolidated balance sheet and excluding the debt and cash of CSI Compressco LP. Management views TETRA net debt as a measure of TETRA's ability to reduce debt, add to cash balances, pay dividends, repurchase stock, and fund investing and financing activities.

Schedule F: Special Items (Unaudited)

Three Months Ended

June 30, 2020

Income (loss) Net Income before taxes Provision Non-cont. Attributable and (Benefit) for Interest to TETRA Diluted EPS discontinued Tax Stockholders operations

(In Thousands, Except per Share Amounts)

Income (loss)attributableto TETRAstockholders,excluding $ (14,258) $ 2,001 $ (5,171) $ (11,088) $ (0.09)special itemsanddiscontinuedoperations

Stock Warrantfair value (11) - - (11) 0.00adjustment

Transactionand other (895) - (475) (420) 0.00expenses

Impairmentsand other (8,922) - (5,977) (2,945) (0.02)charges

Restructuring (486) - (179) (307) 0.00charges

Debt (4,754) - (3,184) (1,570) (0.01)Refinancing

Severance (3,003) - (726) (2,277) (0.02)

Bad Debt (2,800) - - - (2,800) (0.02)

Net income(loss) before (35,129) 2,001 (15,712) (21,418) (0.17)discontinuedoperations

Loss fromdiscontinued 163 0.00operations

Net Income(loss)attributable $ (21,255) $ (0.17)to TETRAstockholders,as reported

Three Months Ended

March 31, 2020

Income (loss) Provision Net Income before taxes (Benefit) Non-cont. Attributable and for Interest to TETRA Diluted EPS discontinued Tax Stockholders operations

(In Thousands, Except per Share Amounts)

Income (loss)attributableto TETRAstockholders,excluding $ (976) $ 1,154 $ (4,892) $ 2,762 $ 0.02special itemsanddiscontinuedoperations

Stock Warrantfair value 338 - - 338 0.00adjustment

Transactionand other (457) - (216) (241) 0.00expenses

Impairmentsand other (5,371) - (3,538) (1,833) (0.01)charges

Restructuring (259) - - (259) 0.00charges

Severance (1,334) - (179) (1,155) (0.01)

Bad debt (1,018) - - (1,018) (0.01)

Net income(loss) before (9,077) 1,154 (8,825) (1,406) (0.01)discontinuedoperations

Loss fromdiscontinued (145) 0.00operations

Net Income(loss)attributable $ (1,551) $ (0.01)to TETRAstockholders,as reported

Three Months Ended

June 30, 2019

Income (loss) Provision Net Income before taxes (Benefit) Non-cont. Attributable and for Interest to TETRA Diluted EPS discontinued Tax Stockholders operations

(In Thousands, Except per Share Amounts)

Income (loss)attributableto TETRAstockholders, $ (2,545) $ (530) $ (11) $ (2,004) $ (0.02)excludingunusualcharges

Stock warrantfair value 1,520 319 - 1,201 0.01adjustment

ConvertibleSeries Apreferred (146) (35) (74) (37) 0.00fair valueadjustments

5% CashRedemption on (546) (115) (278) (153) 0.00CCLP Series APreferred

Earnout 400 84 - 316 0.00Adjustment

Lee PlantFacility 289 61 - 228 0.00Expenses

CEO (1,843) (387) - (1,456) (0.01)Retirement

Transaction (376) (79) (168) (129) 0.00Expense

Inventory (153) (32) (68) (53) 0.00Adjustment

Impairmentsand other (2,311) (485) (1,034) (792) (0.01)charges

Effect ofdeferred taxvaluationallowance and - 3,689 - (3,689) (0.03)other relatedtaxadjustments

Net income(loss) before (5,711) 2,490 (1,633) (6,568) (0.06)discontinuedoperations

Loss fromdiscontinued (345) 0.00operations

Net Income(loss)attributable $ (6,913) $ (0.06)to TETRAstockholders,as reported

Schedule G: Non-GAAP Reconciliation to GAAP Financials (Unaudited)*

Three Months Ended

June 30, 2020

Net Income Adjusted Adjusted Income Tax (Loss) Impairments Income Interest Depreciation Equity Adjusted (Loss), Provision Before & Special (Loss) Expense & Comp. EBITDA as Tax, as Charges Before Amortization Expense reported Reported Tax

(In Thousands)

CompletionFluids & $ 13,202 $ 3,310 $ 16,512 $ (143) $ 1,934 $ - $ 18,303ProductsDivision

Water &Flowback (8,418) 1,203 (7,215) (2) 7,617 - 400ServicesDivision

Compression (23,006) 15,736 (7,270) 12,982 20,116 488 26,316Division

Eliminations 2 - 2 - - - 2and other

Subtotal (18,220) 20,249 2,029 12,837 29,667 488 45,021

Corporate (16,909) 621 (16,288) 4,749 175 1,602 (9,762)and other

TETRAexcluding $ (37,130) $ 2,001 $ (35,129) $ 20,870 $ (14,259) $ 17,586 $ 29,842 $ 2,090 $ 35,259DiscontinuedOperations

March 31, 2020

Net Income Adjusted Adjusted Adjusted Income Tax (Loss) Impairments Income Interest Depreciation Equity Adjusted (Loss), Provision Before & Special (Loss) Expense, & Comp. EBITDA as Tax, as Charges Before Net Amortization Expense reported Reported Tax

(In Thousands)

CompletionFluids & $ 19,396 $ 450 $ 19,846 $ (154) $ 1,934 $ - $ 21,626ProductsDivision

Water &Flowback (2,244) 1,607 (637) (9) 7,425 - 6,779ServicesDivision

Compression (12,790) 5,971 (6,819) 12,564 19,908 324 25,977Division

Eliminations 5 - 5 - (4) - 1and other

Subtotal 4,367 8,028 12,395 12,401 29,263 324 54,383

Corporate (13,444) 73 (13,371) 5,455 197 1,145 (6,574)and other

TETRAexcluding $ (10,231) $ 1,154 $ (9,077) $ 8,101 $ (976) $ 17,856 $ 29,460 $ 1,469 $ 47,809DiscontinuedOperations

Three Months Ended

June 30, 2019

Net Income Adjusted Adjusted Income Tax (Loss) Impairments Income Interest Depreciation Equity Adjusted (Loss), Provision Before & Special (Loss) Expense & Comp. EBITDA as Tax, as Charges Before Amortization Expense reported Reported Tax

(In Thousands)

CompletionFluids & $ 14,614 $ (289) $ 14,325 $ (157) $ 3,723 $ - $ 17,891ProductsDivision

Water &Flowback 2,460 (400) 2,060 (8) 8,871 - 10,923ServicesDivision

Compression (3,483) 3,607 124 12,998 19,054 590 32,766Division

Eliminations 1 - 1 - (3) - (2)and other

Subtotal 13,592 2,918 16,510 12,833 31,645 590 61,578

Corporate (19,303) 268 (19,035) 5,696 172 1,673 (11,494)and other

TETRAexcluding $ (8,201) $ 2,490 $ (5,711) $ 3,186 $ (2,525) $ 18,529 $ 31,817 $ 2,263 $ 50,084DiscontinuedOperations



* Excludes the impact from discontinued operations.

Schedule H: Non-GAAP Reconciliation of TETRA Net Debt (Unaudited)

The cash and debt positions of TETRA and CSI Compressco LP as of June 30, 2020, are shown below. TETRA and CSI Compressco LP's debt agreements are distinct and separate with no cross-default provisions. Management believes that the most appropriate method to analyze the debt positions of each company is to view them separately, as noted below.

The following reconciliation of net debt is presented as a supplement to financial results prepared in accordance with GAAP. Amounts presented are net of deferred financing costs.

June 30, 2020

TETRA CCLP Consolidated

(In Millions)

Non-restricted cash $ 50.0 $ 6.8 $ 56.7

Carrying value of long-term debt:

Asset-Based Credit Agreement - 0.7 0.7

Term Credit Agreement 205.7 - 205.7

Senior Notes outstanding - 636.8 636.8

Net debt $ 155.7 $ 630.7 $ 786.5

Schedule I: Non-GAAP Reconciliation to TETRA Only Adjusted Free Cash Flow (Unaudited)

Three Months Ended Six Months Ended

Jun 30, 2020 Mar 31, 2020 Jun 30, 2019 Jun 30, 2020 Jun 30, 2019

(In Thousands)

Consolidated

Net cashprovided(used) by $ 38,211 $ 22,176 $ 30,965 $ 60,387 $ 38,377operatingactivities

Capitalexpenditures, (3,332) (10,965) (27,345) (14,297) (59,390)net of salesproceeds

Consolidatedadjusted free $ 34,879 $ 11,211 $ 3,620 46,090 (21,013)cash flow

CSICompressco LP

Net cashprovided(used) by $ 4,823 $ 13,357 $ 8,710 18,180 40,342operatingactivities

Capitalexpenditures, (1,125) (6,483) (16,434) (7,608) (39,586)net of salesproceeds

CSICompressco $ 3,698 $ 6,874 $ (7,724) 10,572 756free cashflow

TETRA Only

Cash fromoperating $ 33,388 $ 8,819 $ 22,255 42,207 (1,965)activities

Investment inCCLP - - (8,740) - (11,142)Compressors

Capitalexpenditures, (2,207) (4,482) (10,911) (6,689) (19,804)net of salesproceeds

Free cash 31,181 4,337 2,604 35,518 (32,911)flow

Distributionsfrom CSI 169 169 168 338 337Compressco LP

TETRA OnlyAdjusted Free $ 31,350 $ 4,506 $ 2,772 35,856 (32,574)Cash Flow

Schedule J: Non-GAAP Reconciliation to TETRA Only Adjusted Free Cash Flow From Continuing Operations (unaudited)

Three Months Ended Six Months Ended

Jun 30, 2020 Mar 31, 2020 Jun 30, 2019 Jun 30, 2020 Jun 30, 2019

(In Thousands)

TETRA Only

Cash fromoperating $ 33,388 $ 8,819 $ 22,255 $ 42,207 $ (1,965)activities

Less:Discontinuedoperationsoperating 163 (145) (345) 18 (771)activities(adjustedEBITDA)

Cash fromcontinued 33,225 8,964 22,600 42,189 (1,194)operatingactivities

Less:Continuingoperations (2,207) (4,482) (10,911) (6,689) (19,804)capitalexpenditures

Less: Investment in - - (8,740) - (11,142)CCLPCompressors

Distributionsfrom CSI 169 169 168 338 337Compressco LP

TETRA OnlyAdjusted FreeCash Flow $ 31,187 $ 4,651 $ 3,117 $ 35,838 $ (31,803)FromContinuingOperations

Schedule K: Non-GAAP Reconciliation to TETRA Adjusted EBITDA Margins and Adjusted Income (Loss) before tax margins (Unaudited)

Three Months Ended

Jun 30, 2020 Mar 31, 2020 Jun 30, 2019

(In Thousands)

Consolidated

Revenue $ 192,441 $ 222,942 $ 288,796

Income (loss) before tax (35,129) (9,077) (5,711)

Adjusted income (loss) before tax (14,259) (976) (2,525)(Schedule G)

Adjusted EBITDA (Schedule G) 35,259 47,809 50,084

Income (Loss) Before Tax Margin (18.3) % (4.1) % (2.0) %

Adjusted Income (Loss) Before Tax (7.4) % (0.4) % (0.9) %Margin

Adjusted EBITDA Margin 18.3 % 21.4 % 17.3 %

Completion Fluids & Products

Revenue $ 71,346 $ 75,237 $ 79,767

Income (loss) before tax 13,202 19,396 14,614

Adjusted income (loss) before tax 16,512 19,846 14,325(Schedule G)

Adjusted EBITDA (Schedule G) 18,303 21,626 17,891

Income (Loss) Before Tax Margin 18.5 % 25.8 % 18.3 %

Adjusted Income (Loss) Before Tax 23.1 % 26.4 % 18.0 %Margin

Adjusted EBITDA Margin 25.7 % 28.7 % 22.4 %

Water & Flowback Services

Revenue $ 24,723 $ 57,467 $ 73,124

Income (loss) before tax (8,418) (2,244) 2,460

Adjusted income (loss) before tax (7,215) (637) 2,060(Schedule G)

Adjusted EBITDA (Schedule G) 400 6,779 10,923

Income (Loss) Before Tax Margin (34.0) % (3.9) % 3.4 %

Adjusted Income (Loss) Before Tax (29.2) % (1.1) % 2.8 %Margin

Adjusted EBITDA Margin 1.6 % 11.8 % 14.9 %

Compression

Revenue $ 96,372 $ 90,238 $ 135,905

Income (loss) before tax (23,006) (12,790) (3,483)

Adjusted income (loss) before tax (7,270) (6,819) 124(Schedule G)

Adjusted EBITDA (Schedule G) 26,316 25,977 32,766

Income (Loss) Before Tax Margin (23.9) % (14.2) % (2.6) %

Adjusted Income (Loss) Before Tax (7.5) % (7.6) % 0.1 %Margin

Adjusted EBITDA Margin 27.3 % 28.8 % 24.1 %

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SOURCE TETRA Technologies, Inc.