10 Best Oil and Gas Penny Stocks To Buy

04. TETRA Technologies, Inc. (NYSE:TTI)

Number of Hedge Fund Holders: 22

Share Price: $2.90

TETRA Technologies, Inc. (NYSE:TTI) is an energy services and solutions company that operates through two primary segments: Completion Fluids & Products and Water & Flowback Services. The Completion Fluids & Products division manufactures and markets clear brine fluids, additives, and associated products for use in well drilling and workover operations. It serves clients in the United States and international markets, including Latin America, Europe, Asia, the Middle East, and Africa. The Water & Flowback Services segment provides water management solutions for onshore oil and gas operators, including frac flowback, well testing, and other services.

In Q2 2024, TETRA Technologies, Inc. (NYSE:TTI) reported a solid performance, driven by robust growth across its business segments. Revenue increased by 14% sequentially, and the company’s adjusted EBITDA rose by 32%. The Completion Fluids & Products segment achieved an impressive adjusted EBITDA margin of 28.9%, while the Water & Flowback Services segment saw a notable improvement in margins, rebounding from 9.6% in Q1 to 15.2% in Q2. This sequential improvement of 560 basis points reflects the company’s focus on optimizing operations and cost efficiency. Despite lower U.S. onshore rig activity, which declined 16% year-over-year, TETRA Technologies, Inc. (NYSE:TTI) revenue was only down 2%, indicating its resilience in a challenging market environment.

One of the key drivers of TETRA Technologies, Inc. (NYSE:TTI) future growth is its CS Neptune project in the Gulf of Mexico. The company secured a three-well deepwater fluids project for a major oil and gas operator, marking a significant milestone. This project is expected to generate material revenue starting in Q4 2024 and throughout 2025. Furthermore, TETRA is actively pursuing strategic initiatives in water desalination and beneficial reuse, positioning itself as a leader in environmental solutions for the oil and gas industry.

Hedge fund interest in TETRA Technologies, Inc. (NYSE:TTI) remains stable, with 22 hedge funds holding the stock as of Q2 2024, compared to 23 in the previous quarter. This demonstrates consistent institutional confidence in the company’s long-term potential. Overall, TETRA Technologies, Inc. (NYSE:TTI) focus on high-margin projects, strategic expansions in emerging markets, and strong fundamentals make it a compelling investment in the oil and gas sector.