TETRA Technologies, Inc. (NYSE:TTI) Q2 2022 Results Conference Call August 2, 2022 10:30 AM ET

Company Participants

Brady Murphy - CEO

Elijio Serrano - CFO

Conference Call Participants

Martin Malloy - Johnson Rice

Stephen Gengaro - Stifel

Tim Moore - EF Hutton

Samantha Hoh - Evercore ISI

Operator

Good morning, and welcome to TETRA Technologies Second Quarter 2022 Results Conference Call. The speakers for today's call are Brady Murphy, Chief Executive Officer; and Elijio Serrano, Chief Financial Officer. [Operator Instructions] Please note that this event is being recorded.

I would now like to turn the conference over to Mr. Serrano. Please go ahead, sir.

Elijio Serrano

Thank you, Joe. Good morning, and thank you for joining TETRA's Second Quarter 2022 Results Call.

I would like to remind you that this conference call may contain statements that are or may be deemed to be forward-looking. These statements are based on certain assumptions and analysis made by TETRA and are based on a number of factors. These statements are subject to a number of risks and uncertainties, many of which are beyond the control of the company. You are cautioned that such statements are not guarantees of future performance, and that actual results may differ materially from those projected in the forward-looking statements.

In addition, in the course of the call, we may refer to EBITDA, adjusted EBITDA, adjusted EBITDA gross margins, adjusted free cash flow, net debt, net leverage ratio, liquidity or other non-GAAP financial numbers. Please refer to yesterday's press release or to our public website for reconciliations of non-GAAP financial numbers to the nearest GAAP number.

These reconciliations are not a substitute for financial information prepared in accordance with GAAP and as should be considered within the context of our complete financial results for the period. In addition to our press release announcement that went out yesterday, we would also encourage you to refer to our 10-Q that will be filed later today.

I will now turn the call over to Brady.

Brady Murphy

Thanks, Elijio, and good morning, everyone. Welcome to TETRA's Second Quarter 2022 Earnings Call.

I'll summarize some highlights for the second quarter, provide an update on our exploratory well fluid sample results and discuss the current outlook before turning it back to Elijio to discuss cash flow, the balance sheet and liquidity.

For the second quarter, financial results were in line with our expectations, while some key milestones on our low carbon energy opportunities well exceeded our expectations. Our Water & Flowback business continues to grow faster than the active rig and frac crew count, while expanding margins for the fifth straight quarter.