THE WOODLANDS, Texas,
April 1, 2020 /PRNewswire/ -- TETRA
Technologies, Inc. ("TETRA" or the "Company") (NYSE:TTI) today
announced that on March 26, 2020, it received formal
notice from the New York Stock Exchange ("NYSE") that the average
closing price of the Company's shares of common stock had fallen
below $1.00 per share over a period
of 30 consecutive trading days, which is the minimum average share
price for continued listing on the NYSE under Rule 802.01C of the
NYSE Listed Company Manual.
TETRA intends to notify the NYSE of its intent to cure the
deficiency and return to compliance with the NYSE continued listing
requirements within the six-month cure period. During the cure
period, TETRA's shares of common stock will continue to trade on
the NYSE, subject to compliance with other continued listing
requirements.
TETRA can regain compliance at any time during the six-month
cure period if on the last trading day of any calendar month during
the cure period, its common stock has a closing share price of at
least $1.00 and an average closing
share price of at least $1.00 over
the 30 trading-day period ending on the last trading day of that
month. Failure to regain compliance during the cure period or
to maintain other listing requirements could lead to a
delisting.
The NYSE notification does not affect TETRA's ongoing business
operations or its Securities and Exchange Commission reporting
requirements, nor does it result in any violation of its debt
obligations. TETRA is considering all available options to regain
compliance with the NYSE's continued listing standards, which may
include a reverse stock split, subject to approval of the Company's
board of directors and stockholders.
Company Update To Address Current Industry Environment and
Give Financial Guidance
To address the current environment with the COVID-19 virus
pandemic and the anticipated significant reduction in oil and gas
activity and demand as a result of lower oil prices, TETRA
announced the following:
- The Company has developed and implemented a series of
guidelines and practices to continue to safely service all
customers, safely operate all plants and facilities and to ensure
that all employees perform their functions in a safe manner.
- Steps are being taken to reduce corporate and related expenses
by approximately 40% by the second half of 2020, when compared to
the fourth quarter 2019 annualized run rate.
- Projected 2020 capital expenditures for TETRA, excluding our
compression segment, have been reduced by approximately 40% from
the prior mid-point guidance of $25
million.
- SG&A and field operating expenses are being reduced through
a combination of staff reductions and lower variable operating
expenses.
TETRA was also recently awarded two significant high-value
completion fluids projects. The first one is a multi-well deepwater
Gulf of Mexico project for a
supermajor oil company and the second one is a multi-year
Middle East project for a major
National Oil Company. Both of these projects will start in the
second quarter of this year.
In its fourth quarter and full year 2019 results press release
dated February 27, 2020 TETRA noted
that it expects TETRA only adjusted free cash flow from continuing
operations to improve by more than $25
million over first quarter 2019, which would be a use of
approximately $10 million in the
first quarter of 2020. TETRA now projects to outperform this
guidance as a result of stronger than expected first quarter
adjusted EBITDA and improvements in working capital. No
reconciliation of the forecasted TETRA only adjusted free cash flow
from continuing operations in the first quarter of 2020 to the
nearest GAAP measure is included in this release because the
reconciliation would require presenting forecasted information for
CSI Compressco that is not otherwise publicly disclosed.
Company Overview and Forward-Looking Statements
TETRA Technologies, Inc. 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, and compression services and equipment. TETRA
owns an equity interest, including all of the general partner
interest, in CSI Compressco LP (NASDAQ:CCLP), a master limited
partnership. The capital structures, including long-term
debts, of TETRA and CSI Compressco LP are distinct and separate
with no cross-default provisions, no cross-collateralization
provisions, and no cross-guarantees.
Cautionary Statement Regarding 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," "see," "expectation," "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 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 customer drilling activity and
capital spending for 2020 and 2021, projections concerning the
Company's business activities, financial guidance, estimated
earnings, earnings per share, the availability and terms of
capital, any statements regarding COVID-19, the recent oil and gas
price declines, our cost reduction plans, restoring compliance with
NYSE continued listing standards, 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 Reports on Form 10-K, 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.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/tetra-technologies-inc-receives-continued-listing-standard-notice-from-nyse-and-provides-update-to-address-the-industry-downturn-301033671.html
SOURCE TETRA Technologies, Inc.