THE WOODLANDS, Texas,
Dec. 8, 2016 /PRNewswire/
-- TETRA Technologies, Inc. (NYSE:TTI) (TETRA or the Company)
today announced that it is considering capital raise alternatives
to strengthen its balance sheet to address potential weakness in
2017 deep water Gulf of Mexico
activity and to address the deferral of certain projects from the
fourth quarter of 2016 into early 2017. The delay in these projects
is expected to result in the Company not being in compliance with
one of its debt covenants as of December
31, 2016. Additionally, the Company announced that it
has obtained an interim arbitration award of $7 million plus legal fees on a long-standing
claim. The arbitration panel is expected to rule in the fourth
quarter on the amount of legal fees that TETRA should be awarded as
part of this arbitration process. Both awards are anticipated to be
settled in the first half of 2017.
The Company believes it has been proactive in preparing for
changes in the market environment by managing its cost structure,
reducing capital expenditures and strengthening its balance
sheet. The Company intends to continue taking the actions it
believes appropriate to strengthen TETRA financially as it
addresses the timing of certain projects in what it believes to be
a recovering market. The Company intends to pursue
opportunities to raise the capital necessary to strengthen its
balance sheet in order to capitalize on opportunities in the fluids
market and strengthening its market position in fluids.
Company Overview and Forward Looking Statements
TETRA is a geographically diversified oil and gas services
company, focused on completion fluids and associated products and
services, water management, frac flowback, production well testing,
offshore rig cooling, compression services and equipment, and
selected offshore services including well plugging and abandonment,
decommissioning, and diving. TETRA owns an equity interest,
including all of the general partner interest, in CSI Compressco LP
(NASDAQ:CCLP), a master limited partnership.
This press release includes certain statements that are deemed
to be forward-looking statements. Generally, the use of words such
as "may," "expect," "intend," "estimate," "projects," "anticipate,"
"believe," "could," "should," or similar expressions that convey
the uncertainty of future events, activities, expectations or
outcomes identify forward-looking statements that the Company
intends to be included within the safe harbor protections provided
by the federal securities laws. These forward-looking statements
include statements concerning expected results or projections
concerning the Company's business activities, financial guidance,
estimated earnings, earnings per share, and statements regarding
the Company's beliefs, expectations, plans, goals, future events
and performance, and other statements that are not purely
historical. These forward-looking statements are based on certain
assumptions and analyses made by the Company in light of its
experience and its perception of historical trends, current
conditions, expected future developments and other factors it
believes are appropriate in the circumstances. Such statements are
subject to a number of risks and uncertainties, many of which are
beyond the control of the Company. Investors are cautioned that any
such statements are not guarantees of future performances or
results and that actual results or developments may differ
materially from those projected in the forward-looking statements.
Some of the factors that could affect actual results are described
in the section titled "Risk Factors" contained in the Company's
Annual Report on Form 10-K for the year ended December 31, 2015, as well as other risks
identified from time to time in its reports on Form 10-Q and Form
8-K filed with the Securities and Exchange Commission.
TETRA has filed a registration statement (including a
prospectus) on Form S-3 (File No. 333-210335), which became
effective on April 13, 2016, with the
SEC for the offering to which this communication relates. Before
you invest, you should read the prospectus in that registration
statement and other documents the Company has filed with the SEC
for more complete information about the Company and this offering.
You may get these documents for free by visiting EDGAR on the SEC
Web site at www.sec.gov. Alternatively, the Company will arrange to
send you the prospectus if you request it by calling (281)
367-1983.
This press release shall not constitute an offer to sell or the
solicitation of any offer to buy, nor shall there be any sale of
these securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of such jurisdiction.
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SOURCE TETRA Technologies, Inc.