TETRA (TTI) investor relations material

Strategic transformation and future vision

• Launched OneTETRA 2030 to double revenue to $1.25 billion by 2030, with a balanced portfolio across energy services, specialty chemicals and minerals, and water treatment and desalination, targeting a 15% CAGR and $325M adjusted EBITDA (26% margin).

• Transitioned from traditional oilfield services to high-growth, high-margin sectors, leveraging core fluid chemistry expertise, vertical integration in bromine supply, and a diversified, global customer base.

• Board and executive team enhanced with expertise in specialty chemicals, water solutions, and new energy, supporting the transformation.

• Reporting segments will transition to energy services, specialty chemicals and minerals, and water treatment and desalination, with segment realignment beginning in 2027 and historical results restated for comparability.

• The business model emphasizes internally generated cash flow, non-dilutive project-level capital, and maintaining a net leverage ratio below 2.0x during the investment period, with a return of capital program post-2027.

Financial performance and growth targets

• Revenue increased 56%, EBITDA 129%, and cash flow from operations 544% since 2021, with share price appreciating nearly 440% since the strategy shift.

• By 2030, energy services and specialty chemicals/minerals are each expected to contribute 36% of revenue, with water treatment/desalination at 28%.

• Energy services targets 5–8% revenue CAGR and 25–30% adjusted EBITDA margin; specialty chemicals/minerals aim for 25–30% revenue CAGR and 28–32% margin; water treatment/desalination expects 55–60% revenue CAGR and 28–32% margin.

• Water treatment/desalination targets processing 500,000 barrels/day by 2030 through 10 plants, with a 25,000-barrel/day facility in engineering design.

• Most infrastructure investments already made, supporting margin expansion and strong returns, with free cash flow expected to exceed $100M annually.

Business segment highlights and innovation

• Energy services focus on completion fluids and flowback, with automation and technology driving market share, margin gains, and doubling revenue per rig since 2021.

• Automated drill-out and sandstorm technologies deliver superior safety, efficiency, and 99.4% sand recovery, with automation only 10% penetrated, leaving room for growth.

• International expansion in Argentina and the Middle East, leveraging U.S. shale learnings and technology, with global operations in over 13 countries.

• Completion fluids segment benefits from deepwater market growth, high-density wells, and proprietary Neptune fluids for markets where zinc is restricted.

• Specialty chemicals and minerals segment includes calcium chloride, battery electrolytes, and critical minerals from Arkansas brine leases, with a new bromine plant and lithium royalty streams supporting growth.