TETRA Technologies, Inc. (NYSE:TTI) Q2 2024 Earnings Conference Call August 1, 2024 10:30 AM ET

Company Participants

Julian Higuera - Director of FP&A and Investor Relations
Brady Murphy - CEO
Elijio Serrano - CFO

Conference Call Participants

Bobby Brooks - Northland Capital Markets
Josh Jayne - Daniel Energy Partners
Kurt Hallead - Benchmark
Patrick Ouellette - Stifel

Operator

Good morning, and welcome to TETRA Technologies' Second Quarter 2024 Results Conference Call. [Operator Instructions] Please note that this event is being recorded.

I will now turn the conference over to Julian Higuera. Please go ahead.

Julian Higuera

Good morning and thank you for joining TETRA's second quarter 2024 results call. The speakers for today's call are Brady Murphy, Chief Executive Officer; and Elijio Serrano, Chief Financial Officer.

I would like to remind you that this conference call may contain statements that are or may be deemed to be forward looking, including projections, financial guidance, profitability and estimated earnings. These statements are based on certain assumptions and analysis made by TETRA and are based on several factors. These statements are subject to several 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 margins, free cash flow, net debt, net leverage ratio, liquidity, returns on net capital employed or other non-GAAP financial measures. Please refer to yesterday's press release or to our public website for reconciliations of non-GAAP financial measures to the nearest GAAP measures. These reconciliations are not a substitute for financial information prepared in accordance with GAAP and should be considered within the context of a complete financial results for the period.

In addition to our press release announcement, we encourage you to refer to our 10-Q that we also filed yesterday.

I will now turn it over to Brady.

Brady Murphy

Thanks, Julian. Good morning, everyone and welcome to TETRA's second quarter 2024 earnings call.

I'll summarize some highlights from our second quarter results and provide an update on our strategic initiatives before turning the call over to Elijio to discuss second quarter financials and additional perspectives on our third quarter.

Our second quarter results can be characterized as mostly consistent with the overall trending oil and gas markets during the second quarter, which was lower U.S. completion activity with increasing activity in the international offshore market. This combined with our seasonal second quarter peak for our European industrial chemicals business and lower deepwater project activity in the Gulf of Mexico contributed to our results of 14% sequential revenue growth and 32% increased adjusted EBITDA.