THE WOODLANDS, Texas,
March 1, 2018 /PRNewswire/
-- TETRA Technologies, Inc. ("TETRA" or the "Company")
(NYSE:TTI) announced that it has signed definitive agreements to
divest its offshore heavy lift, plugging and abandonment,
decommissioning, cutting, diving and related consulting services
businesses and its Maritech operations, along with all of
Maritech's related asset retirement obligations. Through a
series of transactions, Orinoco Natural Resources, LLC ("Orinoco")
and Epic Offshore Specialty, LLC have agreed to purchase from TETRA
the remaining offshore leases of Maritech and TETRA's subsidiaries
involved in these offshore businesses – TETRA Applied Technologies,
LLC, TSB Offshore, Inc., Epic Diving & Marine Services, LLC,
and Maritech Resources, Inc. As part of these transactions
Orinoco has agreed to assume responsibility for completing all
remaining asset retirement obligations of Maritech.
As a result of these transactions, TETRA will exit the offshore
decommissioning services business and dispose of its Maritech
subsidiary. In addition to Orinoco's assumption of Maritech's
$47 million asset retirement
obligations, at the closings of the transactions, TETRA will keep
the working capital of the businesses being sold and receive
approximately $3 million in cash for
inventory and fuel, and a $7.5
million promissory note payable on December 31, 2019. Additionally, at closing
Orinoco has agreed to provide TETRA with $47
million in surety bonds to secure the satisfaction of the
Maritech asset retirement obligations.
"It has been our strategy to simplify our business model and
focus on those markets where TETRA's products and services have
competitive advantages, where greater market pricing and capital
allocation discipline exist, and where those businesses can
leverage each other's customer base, footprint and infrastructure,"
said Stuart M. Brightman, Chief
Executive Officer of TETRA Technologies. "Going forward, our
focus will be on offshore and onshore fluids where our chemistry
know-how and vertically integrated business model has proven to be
strong throughout the recent cycles, on water management and frac
flowback services in the shale plays, and on field compression,
supporting the industry's needs for equipment and services to
handle the significant volumes of associated gas coming from the
shale plays. The divestitures of the offshore services and Maritech
businesses are expected to reduce the volatility of TETRA's
earnings from the seasonality inherent in offshore operations and
eliminate the uncertainty of current or future cash outlays to
complete Maritech's asset retirement obligations.
"TETRA's offshore decommissioning operations weathered a
challenging period over the past three years. When many of
our competitors in this market went through restructurings or shut
down their operations, our offshore decommissioning business
continued to perform relatively well. We sincerely appreciate
the years of outstanding service of the management team. The
industry will continue to be well served by Peter Pintar and his team," added Brightman.
The transactions are expected to close within a short period of
time, subject to various customary closing conditions, approvals
and consents. After closing, TETRA will report the historical
results of the offshore decommissioning and Maritech businesses as
discontinued operations.
Company Overview
TETRA Technologies, Inc. (www.tetratec.com) is a geographically
diversified oil and gas services company, focused on completion
fluids and associated products and services, comprehensive water
management solutions, frac flowback, production well testing,
offshore rig cooling, and compression services and equipment.
TETRA owns an equity interest, including all of the general
partner interest, in CSI Compressco LP (NASDAQ: CCLP)
(www.csicompressco.com), a master limited partnership.
Investor Note
More detailed information about this transaction can be found in
TETRA's SEC Form 8-K, filed March 1,
2018, which is available in the SEC Filing & Financial
Information section of the company's Investor Relations website
http://ir.tetratec.com/SEC-Filings.
Forward-Looking Statements
This news 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," "assume," "could," "should," "plans," "targets" or
similar expressions that convey the uncertainty of future events,
activities, expectations or outcomes identify forward-looking
statements that TETRA Technologies, Inc. ("the Company") intends to
be included within the safe harbor protections provided by the
federal securities laws. These forward-looking statements include
statements concerning the anticipated recovery of the oil and gas
industry, expected results of operational business segments, the
ability to consummate the transactions involving the offshore
services and Maritech businesses; projections concerning the
Company's business activities and the expected impact of the
divestiture, 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, including the ability to recognize the anticipated
benefits of the divestiture. 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, 2016, 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.
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SOURCE TETRA Technologies, Inc.