TETRA Technologies, Inc. (NYSE:TTI) Q4 2022 Earnings Call Transcript

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Samantha Hoh: Okay, and then if I could just squeeze one more in. I’m kind of curious on the deepwater completion fluid side, like you guys been, so kind to provide the breakout of fluid revenue mix. I was wondering if you had a similar type of pie chart, for example, for the margin trends like is it a similar type of profitability, depending on the three different like in markets that you guys apply to on the fluids business? And then how do you view like your market share amongst like the offshore like the deepwater rigs, for example? Can you provide any sort of, like share based on the data for us?

Brady Murphy: Yes. Samantha so for deepwater I think we gave an example in our press release yesterday our team estimates about 70% of the deepwater wells in the Gulf of Mexico as an example, require a bromine based completion fluid. And we have we estimate we have a roughly a 30% market share of the what we call high value completion fluids, which typically contain bromine and that would be North Sea deep water deepwater. That would be Gulf of Mexico deepwater. That would be a Brazil deepwater. A little less so in other markets, but overall, we think we have a very strong position with our what we call high value completion fluids business. If that’s helpful. On the margin side, I’m not sure we would share the details of a breakdown, family breakdown of our products. If I understood the question correctly. Was that the question?

Samantha Hoh: No, that’s super helpful. Thanks so much.

Brady Murphy: Okay.

Operator: The next question is a follow up from Martin Malloy with Johnson Rice. Please go ahead.

Martin Malloy: Thank you just had one follow up CarbonFree. I saw the announcement that they made with respect to collaborating with BP on developing solutions for industrial facilities. Anything to report there in terms of the potential demand for calcium chloride from for these type of projects?

Brady Murphy: Yes. We saw the announcement as well. And we know new the CarbonFree had been working with BP for some time is actually one of our investors in CarbonFree. And we continue to engage very carefully with CarbonFree as they look for the deployments of their plants. I know you have a stay in touch with their CFO quite a bit any update from your side?

Elijio Serrano: Yes, so CarbonFree from our dialogue with them continues to make progress with their pilot plant, whether the design of technology. Clearly the announcement with BP is further endorsement of their technology. We believe that their next step is to secure the proper capital, then launch their program. And once they get to that stage, we expect to participate from them with them. But practically speaking, we think that any significant calcium chloride sales to them is still quite a bit out a minimum of a year before they have any significant impact.

Martin Malloy: Thank you.

Operator: Again, This concludes our question-and-answer session. I would like to turn the conference back over to Mr. Murphy for any closing remarks.

Brady Murphy: Thank you very much for your joining us on our call. That concludes our Q4 earnings call. Thank you.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may all now disconnect.

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