{"id":424472,"date":"2021-01-29T07:03:35","date_gmt":"2021-01-29T12:03:35","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=424472"},"modified":"2021-01-29T07:03:35","modified_gmt":"2021-01-29T12:03:35","slug":"tetra-technologies-inc-announces-divestment-of-interests-in-csi-compressco-lp-and-related-assets-for-30-7-million-and-announces-preliminary-tetra-only-fourth-quarter-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/tetra-technologies-inc-announces-divestment-of-interests-in-csi-compressco-lp-and-related-assets-for-30-7-million-and-announces-preliminary-tetra-only-fourth-quarter-results\/","title":{"rendered":"TETRA Technologies, Inc. Announces Divestment Of Interests In CSI Compressco LP And Related Assets For $30.7 Million And Announces Preliminary TETRA Only Fourth Quarter Results"},"content":{"rendered":"
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PR Newswire<\/p>\n<\/p><\/div>\n

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\n THE WOODLANDS, Texas<\/span>, Jan. 29, 2021<\/span> \/PRNewswire\/ —\u00a0TETRA Technologies, Inc. (“TETRA” or the “Company”) (NYSE: TTI) announced today a series of transactions related to CSI Compressco including (i) the sale to Spartan Energy Partners (“Spartan”) of its General Partner (“GP”) interests, incentive distribution rights (“IDRs”) and 10.95 million of the 16.19 million common units TETRA owned in CSI Compressco LP (“CSI Compressco” or “CCLP”) for $13.95 million<\/span>, plus a contingent payment that could increase the proceeds to $17.1 million<\/span> if certain financial targets are met; (ii) the sale of 15 large compressor units for $14.2 million<\/span> that are subject to a lease arrangement with CSI Compressco and (iii) the settlement of outstanding intercompany balances for which CCLP paid TETRA $2.5 million<\/span>, resulting in combined proceeds of approximately $30.7 million<\/span>, or $33.8 million<\/span> if the contingent payment is earned.\u00a0 As a result of these transactions, TETRA will reflect CSI Compressco as an asset held for sale and a discontinued operation in its financial statements to be included in its 2020 Form 10K, and will not consolidate CSI Compressco in TETRA’s financial statements beginning in the first quarter of 2021.<\/p>\n

TETRA’s President and Chief Executive Officer, Brady Murphy<\/span>, commented, “The TETRA Board and management team continue to focus on taking the necessary actions to unlock shareholder value.\u00a0 TETRA continues to perform well in difficult market conditions, but the consolidated debt of CSI Compressco has represented an overhang and limited the transparency of TETRA’s financial position.\u00a0 Following our divestment of CSI Compressco’s general partner, the Company will focus on our capital efficient business model that has continued to generate positive free cash flow throughout the cycles, including one of the worst our industry has ever experienced in 2020 due to COVID-19.\u00a0 Our vertically integrated completion fluids business continues to generate adjusted EBITDA margins (Adjusted EBITDA as a percentage of revenue) in the high 20% to low 30% range and as mentioned in our press release earlier this month, we are leveraging the business segment’s calcium chloride market position and key mineral resources to grow into the carbon capture and energy storage markets.\u00a0 Additionally, recent advancements in automation and the introduction of new technologies in Water Management and Flowback Services present an opportunity for this segment to generate strong returns from an ongoing rebound in the US onshore market.”<\/p>\n

TETRA is selling its controlling interests in CSI Compressco to Spartan, a Texas<\/span>-based private company founded in 2010 that is a global provider of gas treating, compression and processing solutions.\u00a0 The management team of Spartan includes energy industry veterans from Hanover Compressor, Exterran and Ariel Corporation.\u00a0 Spartan’s private equity financial partner is Silverhawk Capital.\u00a0 <\/p>\n

The details of the transactions include:<\/p>\n