Tetra Tech Exceeds Q3 Expectations, Raises Guidance

**Tetra Technologies Reports Strong Q3 Performance, Raises Full-Year Outlook on Robust Demand and Lithium Prospects**

**THE WOODLANDS, Texas – November 8, 2023** – Tetra Technologies, Inc. (NYSE: TTI), a leading provider of completion fluids, products, and water management services, yesterday announced a robust third-quarter 2023 performance, surpassing analyst expectations and prompting the company to raise its full-year financial guidance. The results, released on November 7, underscore strong demand across its core energy services and strategic advancements in its burgeoning critical minerals segment.

For the three months ended September 30, 2023, Tetra Technologies reported revenue of $170.8 million, marking a significant 10% increase compared to $155.1 million in the same period last year (Q3 2022). The company’s net income saw an even more dramatic surge, climbing 66% to $17.3 million, up from $10.4 million in Q3 2022. This translated to diluted earnings per share (EPS) of $0.13, a substantial improvement from $0.08 per share a year ago. These figures comfortably beat the consensus analyst estimates, which anticipated an EPS of $0.09 on revenues of $166.7 million.

Key operational metrics also reflected the positive momentum. Adjusted EBITDA, a crucial measure of operational profitability, increased by 15.7% to $31.0 million, compared to $26.8 million in Q3 2022. This consistent growth highlights the company’s efficient operations and favorable market conditions.

Brady Murphy, President and CEO of Tetra Technologies, attributed the strong results to several key drivers. “We delivered another quarter of excellent financial results driven by robust demand for our completion fluids and products, coupled with improved pricing and activity in our Water and Flowback services,” Murphy stated. He emphasized the continued strength in these segments as foundational to the company’s performance.

Looking ahead, Tetra Technologies is particularly optimistic about its Liquid End segment, especially as it prepares for 2024. This segment is strategically focused on the extraction of valuable minerals, notably lithium, from brines—a rapidly expanding market driven by global demand for electric vehicles and renewable energy storage solutions. The company highlighted ongoing progress on the Clearwater, Texas project with EnerGeo, which is specifically designed for lithium extraction from lithium-rich brines, positioning Tetra at the forefront of this critical industry.

Given its solid financial performance and positive outlook, Tetra Technologies has raised its full-year 2023 adjusted EBITDA guidance. The company now expects adjusted EBITDA to be between $120 million and $125 million, an increase from its previous estimate of $115 million to $120 million. This upward revision signals strong confidence from management in its ability to sustain growth and profitability through the remainder of the year and into the next.

Tetra Technologies, headquartered in The Woodlands, Texas, provides a diverse range of products and services crucial to the energy and industrial sectors. Its strategic pivot and continued investment in sustainable mineral extraction, alongside its established energy services, position the company for sustained growth in a dynamic global market. Investors and industry watchers will likely continue to monitor the progress of its Liquid End segment as the demand for critical minerals intensifies.