TETRA Technologies, Inc. and CSI Compressco LP. March 2015

Transcription

1 TETRA Technologies, Inc. and CSI Compressco LP March 2015

2 Forward-Looking Statements DISCLOSURE Forward-Looking Statements: This presentation includes certain statements that are or may be deemed to be forward-looking statements. Generally, the use of words such as may, will, 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 we intend to be included within the safe harbor protections provided by the federal securities laws. These forward-looking statements include statements concerning expected results of operational business segments for 2014, anticipated benefits from our acquisitions of assets and businesses, projections concerning our business activities in the Gulf of Mexico, including potential future benefits from increased regulatory oversight of well abandonment and decommissioning activities, financial Guidance Mid-Point, estimated earnings, earnings per share, and statements regarding our 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 in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate in the circumstances. Such statements are subject to a number of risks and uncertainties, many of which are beyond our control. 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 Certain Business Risks contained in our Annual Report on Form 10-K for the year ended December 31, 2014, as well as other risks identified from time to time in our reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission. Further Disclosure Regarding the Use of Non-GAAP Measures: TETRA and CSI Compressco LP define net debt as the sum of long-term and short-term debt on its consolidated balance sheet, less cash, excluding restricted cash on the consolidated balance sheet and excluding the debt and cash of CSI Compressco LP. Management views net debt as a measure of our ability to reduce debt, add to cash balances, pay dividends, repurchase stock, and fund investing and financing activities. Management views revenue excluding Maritech, cash from operating activities excluding Maritech, and EBITDA excluding Maritech as useful measures to asses our performance in prior periods following the sale of substantially all of our Maritech segment operations. EBITDA excluding Maritech, a performance measure used by management, is defined as net income (loss) plus: (1) interest expense (net of interest income), (2) income tax provision, and (3) depreciation, depletion, amortization, accretion and impairments, all of which are calculated excluding our Maritech operations. EBITDA excluding Maritech is not defined under GAAP and does not purport to be an alternative to net income or other GAAP financial measures as a measure of operating performance. Because not all companies use identical calculations, our presentation of EBITDA excluding Maritech may not be comparable to other similarly titled measures of other companies. Management views EBITDA excluding Maritech as useful to investors and other external users of our consolidated financial statements as an additional tool to evaluate and compare our operating performance, because EBITDA is widely used by investors to measure a company s operating performance without regard to items such as interest expense, taxes, depreciation, depletion, and amortization, which can vary substantially from company to company. The reconciliation included in the Financial Data Appendix to this presentation is not a substitute for financial information prepared in accordance with GAAP, and should be considered within the context of our complete financial results for the periods indicated, which are available on our website at tetratec.com 2

3 Corporate Profiles COMPANY OVERVIEW Stock Market NYSE: TTI NASDAQ: CCLP Recent Share Price (1) $5.34 $17.03 Market Capitalization (1) $425M $564M Enterprise Value (1) $820M $1.1B Number of Shares/ Units Outstanding (2) 79.7M 33.1M Average volume (last 3 months) (1) 981, ,231 Distribution Annualized (3) $1.94 (+11%) (4) Distribution Yield (1) 11.6% % Owned by TTI 44% Headquarters The Woodlands, TX Midland, TX (1) As of 3/16/2015 (2) As of 11/09/2014 (3) Q Annualized (4) Q increase in distribution over Q

4 Business Segments COMPANY OVERVIEW FLUIDS SERVICES Only vertically integrated completion fluids based company for the oil & gas market PRODUCTION TESTING The largest North America production testing company CSI COMPRESSCO Full service compression: well head, gathering, midstream, processing and transportation OFFSHORE SERVICES A leading provider of decommissioning and well abandonment services in Gulf of Mexico MARITECH Targeting to complete our operated properties ARO obligations during 2016 $437M Revenue $193M Revenue $490M Revenue (1) $195M Revenue Phasing Out (1) CSI Compressco pro-forma 2014 for CSI acquisition 4

5 Progress on Key Initiatives Achieved Free Cash Flow >$80M Q EPS at top end of guidance Production Testing PBT Margin (2) 15.5% in Q Fluids PBT Margin (2) 17.3% in Q CSI Compressco results consistent with acquisition economics Structure in place to refinance $90M notes maturing on April 30, 2015 $100 $80 $60 $40 $20 $0 $60.0 COMPANY OVERVIEW Free Cash Flow (1) ($ millions) $14.6 $81.3 Production Testing (2) $ % $ % Significant Progress Cost structure aligned with activity levels (10% staff reductions since October 1 st ) Maritech ARO obligations $40.0 $30.0 $20.0 $10.0 $ Q Q Q Q Q Q Q3 Revenue ($M) PBT Margin % 2014 Q4 12.0% 7.0% 2.0% -3.0% -8.0% (1) Free cash flow = TETRA excluding CSI Compressco cash from operating activities - capital expenditures + decommissioning liabilities + distributions received from CSI Compressco. (2) PBT margins excludes unusual items 5

6 Balance Sheet and Liquidity COMPANY OVERVIEW $ Millions As Of 12/31/2014 TETRA CSI Compressco Consolidated TETRA Cash $14 $34 $48 Revolver Availability $135 $205 $340 Liquidity $149 $239 $388 Revolver Outstanding (1) $90 $195 $285 Current Portion of LT Debt $90 - $90 Long Term Debt $215 $345 $560 Total Debt $395 $540 $935 Leverage Ratio 2.9X 4.1X TETRA s and CSI Compressco s debt are separate and distinct with no cross guarantees, no cross defaults and no cross collateral Adequate liquidity to manage through a downturn Long-term debt at attractive rates of 4.0%-6.0% for TETRA and 7.25% for CSI Compressco (1) Excludes notes of credits 6

7 Leveraging the value of the integrated business units and service offerings to the oilfield and other industries 7

8 Fluids Services Completion Fluids FLUIDS SERVICES Only vertically integrated cost effective solutions provider of high-end clear brine fluids - Manufacturer of calcium bromide, zinc bromide and calcium chloride - Long-term bromine supply agreement provides secure sourcing and cost stability High value fluids franchise with a strong GOM position effectively competing against SLB, HAL and BHI Leveraged to the deepwater and North America unconventional onshore markets Significant sales into the non-us onshore shale market Water Management Unique cost effective solutions for frac water management Proprietary technology with exclusive supplier agreements Rapid deployment for shorter turnaround time between jobs Units deployed in most of the key U.S. shale basins 8

9 Fluids Services Financial Overview Revenue ($ millions) EBITDA ($ millions) and Margin (1) FLUIDS SERVICES $500 $450 $400 $350 $300 $250 $276 $305 $335 $383 $437 $120 $100 $80 $60 $40 $20 16% $44 17% $52 21% $70 24% $92 23% $101 25% 20% 15% 10% 5% $ $ % 2014 Revenue Profile O&G 21% Water Management 22% Offshore 30% 57% Nononshore drilling International 32% International 29% United States 68% Non-O&G 27% (1) EBITDA excludes unusual items 9

10 Production Testing Flowback pressure and volume testing provides data to optimize production and minimize reservoir damage PRODUCTION TESTING Production Testing used to access newly available production and extend productive life of wells Well Testing evaluates well performance under various conditions Rig Cooling suppresses heat generated by high-rate flaring One of the largest fleets of onshore flowback well testing in the US, focused on the shale basins Mobile equipment can be repositioned to the gas and liquids markets Customer base is the larger well capitalized operators Strong market positions in the US, particularly Permian Basin, Canada, Mexico, Argentina, Brazil and Saudi Arabia 10

11 Production Testing Financial Overview PRODUCTION TESTING Revenue ($ millions) EBITDA ($ millions) and Margin (1) $300 $200 $100 $104 $140 $208 $196 $193 $110 $90 $70 $50 $30 $10 28% $30 36% $50 31% $64 21% $42 40% Q4-14 EBITDA Margins 35% of 27.4% 30% 25% 21% 20% 15% $40 10% 5% $ $ % 2014 Revenue Profile Offshore, 16% United States, 47% International 40% International, 53% Onshore, 84% (1) EBITDA excludes unusual items 11

12 Offshore Services A leading GoM provider of decommissioning and well abandonment services OFFSHORE SERVICES - Largest provider of heavy lift platform removals with two derrick barges, including the newly built 1,700-T TETRA Hedron - Leading well plug and abandonment services - Leading provider of diving and cutting services, with two diving vessels including saturation systems Approximately 2,900 platforms on the shelf in the GOM Project management and consulting leverage highly complementary suite of services Expanding in GoM construction and maintenance projects including light subsea construction 12

13 Offshore Services Financial Overview $350 $300 $250 $200 $150 $100 $50 $0 $274 OFFSHORE SERVICES Revenue ($ millions) EBITDA ($ millions) and Margin (1) $287 $266 $256 $ $60 $50 $40 $30 $20 $10 $0 15% $41 13% $38 16% $42 18% $47 3% $ % 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Maritech Revenue Mix Third Party 300 GoM Structures Removed (2) 100% 80% % 40% % 0% (1) EBITDA excludes unusual items (2) Caissons and Platforms removed (Source: BSEE) Approx. 2,900 production platforms on US Outer Continental Shelf 13

14 CSI Compressco Compressco acquired CSI, for $825M Compressco (founded 1998, acquired in 2004) Compressco Partners LP (IPO 2011, GSJK) Compressor Systems, Inc. (founded 1971, acquired 2014) CSI COMPRESSCO LP CSI Compressco 44 years of history 950 Employees 6,400 compressor packages 1.1 million horsepower 35 locations, US & Canada Global footprint CSI Compressco operates as MLP Tax advantage Lower cost of capital Attractive yields Leverages TETRA infrastructure and back office support TETRA Technologies Acquired Compressco in 2004 Owns General Partner (2% interest) Owns 42% of Common Units Owns IDRs 14

15 Compression Value Chain Wellhead and Gas Gathering Gas Processing Storage and Distribution Pipeline and Transmission Hydrocarbon production Delivery & Processing Distribution options Transportation efficiency Wellhead = Single Well Gathering = Multiple Wells Gas Lift Vapor Recovery Units CO 2 Applications Inlet Compression Outlet Compression Refrigeration Injection and withdrawal Mainline Compression 25 to 2,500 HP 500 to 4,000 HP 2,000 to 8,000 HP 2,000 to 8,000 HP Compression Services Aftermarket Services Equipment Sales Equipment Sales Aftermarket Services Equipment Sales Equipment Sales 15

16 Utilization Compression Industry Comparatively Stable Fleet HP Through Swings in Commodity Prices Stable Sector of Energy Service Less susceptible to commodity price swings Gas production requires compression Compression is part of natural gas infrastructure Long life assets with flexibility in application End of life well applications Macro Variables (% change from 2008) 20% 10% 0% -10% -20% -30% -40% -50% -60% -70% -80% Macro Variables (1) vs. Fleet HP Utilization (2) Feb 2015 CSI Compresso Fleet Utilization HH Gas Price WTI Oil Price Rig Count (3) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% CSI Compressco s Position in the Industry 2 nd largest vertically integrated provider 4 th largest fleet (HP) 12% market share of US and Canada Compression Services (4) 9% market share of global compression services (5) (1) Macro Variables; Rig Count: Baker Hughes. HH Gas Price & WTI Oil Prices: EIA (2) Pro-forma YE HP utilization of combined CSI and Compressco Partners fleets prior to acquisition (3) 2015 data is as of February 28, 2015, with HP utilization estimated (4) Internal estimate based on data from Gas Compressor Association (5) Spears & Associates, Inc., Oilfield Market Report , January 2015 (6) CSI Compressco HP as of December , others per most recent data available for review 1,600 1,400 1,200 1, Packaging Capability Revenue Generating Horsepower (In 000s) (6) 3,700 Exterran Yes 1,351 1,303 USA Regency CDM Compression No No CSI J-W Operating Compressco Yes Yes 16

17 AMS, 7% CSI Compressco Serves the Entire Compression Value Chain Flexible Compression Services Fleet Wide spectrum of size (HP) Geographically dispersed in U.S. Large scope of applications Customer diversity Technology driven 2014 Revenue (1) Equipment Sales, 35% Compression & other Services 2014 Revenue (1) Intl. 16% United States 84% Equipment Sales (packaging) Capabilities State of the art facility for manufacturing Internal engineering and design Revenue & Adjusted EBITDA Margin (2) Compressors (and pumps) up to 8,000HP Capacity of 350,000HP per year Aftermarket Services (AMS) Add-on service to customers Balances use of facilities & personnel (1) Pro-forma 2014 revenue includes Compressor Systems, Inc., January 1, 2014 through August 3, 2014 unaudited results, occurring prior to acquisition (2) Adjusted EBITDA excludes unusual items and add backs non-cash equity compensation and amortization of financing costs; Mid-point of 2015 guidance as provided February 26, 2015 $500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $- $470 35% 32% 31% 28% 29% 28% $283 $81 $96 $109 $ Revenue (In $ Millions) Adjusted EBITDA Margin 40% 35% 30% 25% 20% 15% 10% 5% 0% 17

18 CSI Compressco Services Fleet Compression Fleet is well balanced: size, geographic, oil/gas & application Fleet Composition (2) HP by Application HP by Resource Play VR, 2% 4 th Largest Compression Fleet Homogenous internally build fleet 6,402 Compressor Packages 1,089,151 HP 2014 YE Utilization of 87.7% Average age of <7.5 years (1) Built primarily In House More stable and predictable cash flow Wellhead, 18% Gas Lift, 20% Gathering, 60% HP by Range Oil, 43% Gas, 57% HP by Region International, 3% Real time remote monitoring system Predictive maintenance Personnel management Reduced maintenance costs HP, 19% HP, 40% >800 HP, 41% Mid- Continent, 19% East, 10% South Texas, 25% Permian, 23% West, 20% (1) HP weighted average age of compression services fleet as of December 31, (2) Fleet composition as of December 31,

19 CSI Compressco Business Model Provides Predictable Cash Flow Stream 2015 Guidance Revenue of $460M - $480M EBITDA of $125M - $135M Capital expenditures of $100M $83M Fleet Growth $ 3M Growth, Non-Fleet $14M Maintenance 19

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21 In $ Millions In $ Millions In $ Millions Focus On Free Cash Flow 2015 vs 2014 Sources & Uses of Cash ARO expenditures $53M reduction $- $(20) ARO Cash Expenditures * Non-CCLP capex $25M reduction $(40) $(60) CCLP distributions to TTI $11M increase $(80) $(100) Total $86M $(120) CSI Compressco Distributions to TETRA TETRA Capital Expenditures $40 $35 $30 $25 $20 $15 $10 $5 $ * $- $(10) $(20) $(30) $(40) $(50) $(60) $(70) $(80) * * 2015 Estimate 21

22 CSI Compressco Distribution Trend Quarterly Distribution (Annualized) $1.95 $1.94 Focused on distribution growth while maintaining strong balance sheet $1.85 $1.75 $1.65 $1.55 $1.55 $1.59 $1.84 $1.81 $1.78 $1.75 $1.68 $1.70 $1.72 Consistent and recurring cash flows Increased distributions nine of last ten quarters Conservative distribution coverage ratio $1.45 Q4 YOY distribution growth of 11% 22

23 CSI Compressco s Distribution Impact to TETRA TETRA owns 42% of CSI Compressco units and 2% GP interest As the general partner, TETRA is entitled to IDR s (Incentive Distribution Rights) TETRA s cash distributions from CSI Compressco for 2014 are $24.2 million, including $0.7 million of GP IDR s CSI Compressco s distribution coverage ratio for twelve months ended 12/31/14, is 1.4x and for the quarter ended on 12/31/14 was 1.7x Achieved the 25% IDR threshold with the recent distribution announcement $2.50 $2.25 $2.00 $1.75 $1.50 $1.25 $1.00 $0.75 $0.50 TTI General Partner IDR Thresholds $2.33 $1.94 $1.94 $1.78 $1.55 2% 15% 25% 25% 50% Original 15% IDR 25% IDR Current 50% IDR 23

24 Balance Sheet TETRA has secured financing to address $90M notes maturing on April 30, 2015 CSI Compressco s debt is long-term in nature Ample liquidity to fund growth for CCLP and manage through downturn for TTI TETRA leverage ratio is 2.9X with a target of 2.5X CSI Compressco s leverage ratio is 4.1X with a target of 3.5X $ Millions At 12/31/2014 TETRA CSI Compressco $400 Debt Maturation Schedule CCLP Revolver $225 $400 Revolver Maturity Sep 30, 2019 Aug 4, 2019 Revolver $90 $195 outstanding (1) Availability $135 $205 Cash as of 12/31 $14 $34 Liquidity $149 $239 Senior Notes $305 $345 $300 $200 $100 $0 TETRA (2) 2020 (2) 2022 (1) Excludes notes of credits (2) In 2020, two senior notes will mature, one in 04/2020 and the other in 12/2020 CCLP debt rating of B (S&P) and B1 (Moody's) 24

25 TETRA & CSI Compressco as Investment Opportunities 2010: $0.94 Billion (1) 2014: $1.32 Billion (1) E&P Revenue 22% Offshore Services 15% Offshore Services 29% Fluids, PT and CSI Compressco 49% Fluids, PT and CSI Compressco 85% Investment Highlights Completed the next step of the transformation with CSI Compressco acquisition CSI Compressco, Fluids industrial and Fluids Offshore less dependent on Onshore drilling activity Executing on short-term tactical initiatives Have attained $80M free cash flow targets, $1.00/share, in the past 2 years Recent addition of industry leaders to board and management (1) Revenue excludes eliminations and Corporate overhead 25

26 TETRA Technologies, Inc. and CSI Compressco LP March 2015

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28 Potential Impact of Increased Distributions Opportunity to Create Significant Shareholder Value from CSI Acquisition CSI Compressco Valuation at Various Declared Distribution Levels FINANCIAL OVERVIEW Annualized Distribution $ 1.80 $ 1.90 $ 1.94 $ 2.00 $ 2.10 $ 2.20 $ 2.30 $ 2.40 $ 2.50 $ 2.60 Implied Unit 7% Yield $ $ $ $ $ $ $ $ $ $ Market Capitalization ($M) $ 852 $ 900 $ 919 $ 947 $ 994 $ 1,042 $ 1,089 $ 1,136 $ 1,184 $ 1,231 Cash Distribution at Various Levels TETRA Cash From LP Ownership ($M) $ 25.4 $ 26.8 $ 27.3 $ 28.2 $ 29.6 $ 31.0 $ 32.4 $ 33.8 $ 35.2 $ 36.6 Cash to TETRA for GP ($M) $ 1.3 $ 1.9 $ 2.1 $ 2.8 $ 3.9 $ 5.0 $ 6.1 $ 8.9 $ 12.2 $ 15.5 Total Cash to TETRA ($M) $ 26.7 $ 28.7 $ 29.5 $ 31.0 $ 33.5 $ 36.0 $ 38.5 $ 42.7 $ 47.4 $ 52.1 Potential Value Creation to TETRA TETRA Implied Ownership Valuation of GSJK on 7% $ 362 $ 383 $ 391 $ 403 $ 423 $ 443 $ 463 $ 483 $ 503 $ 523 GP Potential 25X ($M) $ 33 $ 47 $ 53 $ 70 $ 98 $ 125 $ 153 $ 222 $ 305 $ 388 Total Potential Value to TTI ($M) $ $ $ $ $ $ $ $ $ $ Highlights Current distributions at $1.94/unit Total cash distributions of $24.2 million ($0.7 million from GP interest) in growth capital of $80 million to $90 million could result in significant incremental distributions 28

29 Leadership Team Highly qualified management with a broad range of experience from large multi-national and small service companies LEADERSHIP AT TETRA Stu Brightman President & CEO President & CEO since May 2009 COO during years of domestic and international assignments with Cameron Iron Works and Dresser in finance, operations, general management and executive positions Wharton School of Business Elijio Serrano SVP & CFO Joined TTI August 2012 CFO of two private equity energy service companies Public company CFO of a $3.1B high growth global logistics and transportation company 17+ year veteran of Schlumberger with global operations and financial leadership experience Joseph Elkhoury SVP & COO Joined TTI June years of North America and International experience with Schlumberger, most recently as VP and General Manager, Microseismic Services Previous to this role, he served in various other management, supply chain, technical, marketing, operations, personnel positions with Schlumberger Peter Pintar SVP Offshore Services Joined TTI November years of experience in corporate strategy and development with Smith International and DTE Energy 8 years of experience as a management consultant with McKinsey & Company 29

30 Leadership Team Highly qualified management with a broad range of experience from large multi-national and small service companies LEADERSHIP AT TETRA Keith Schilling SVP Energy Services Joined TTI December 2014 Over 20 years of oil and gas services experience with Schlumberger, most recently as VP Artificial Lift North America Previous to this role, he served in various other management positions within Schlumberger Tim Knox President of CSI Compressco President CSI Compressco since August 2014 President & COO of CSI since October 2010 Over 23 years of compression experience with CSI and Dresser-Rand Spears School of Business Bass C. Wallace, Jr. SVP & General Counsel Served as General Counsel since 1994 Practiced law for 11 years J.D. degree from the University of Texas School of Law Elisabeth K. Evans VP Human Resources Joined TTI January 2013 Over 25 years of human resources and corporate communications experience with Boardwalk Pipeline, AGL Resources, Aramark, British Petroleum 30

31 Non-GAAP Financial Measures DISCLOSURE This presentation includes non-gaap financial measures EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, enterprise value, distributable cash flow, distribution coverage ratio and debt to Adjusted EBITDA. EBITDA and Adjusted EBITDA are used as a supplemental financial measured by the management to: assess ability to generate available cash sufficient to make distributions to the CSI Compressco s unit holders and general partner; evaluate the financial performance of assets without regard to financing methods, capital structure or historical cost basis; measure operating performance and return on capital as compared to competitors; and determine the ability to incur and service debt and fund capital expenditures. EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as sum of EBITDA, non-cash equity compensation expense, and amortization of financing costs, less unusual items. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenue. Enterprise value is defined as market capitalization plus the sum of long-term and short-term debt on the consolidated balance sheet, less cash, excluding restricted cash on the consolidated balance sheet. Management uses enterprise value as a measure of the market value of the company if it were free of debt. Distributable cash flow is used as a supplemental financial measure by management as it provides important information relating to the relationship between our financial operating performance and our cash distribution capability. Additionally, distributable cash flow is used in setting forward expectations. Distributable cash flow is defined as EBITDA less current income tax expense, maintenance capital expenditures, and interest expense, plus the non-cash cost of compressors sold and equity compensation expense. The distribution coverage ratio is defied as the ratio of distributable cash flow to the quarterly distribution payable on all outstanding common and subordinated units and the general partner interest. Distribution coverage ratio provides important information relating to the relationship between financial operating performance and cash distribution capability. Debt to Adjusted EBITDA is defined as balance of debt at the end of the period divided by last twelve months of Adjusted EBITDA. These non-gaap financial measures should not be considered an alternative to net income, operating income, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP. These non-gaap financial measures may not be comparable to EBITDA, distributable cash flow or other similarly titled measures of other entities, as other entities may not calculate these non-gaap financial measures in the same manner. Management compensates for the limitation of these non-gaap financial measures as an analytical tool by reviewing the comparable GAAP measures, understanding the differences between the measures and incorporating this knowledge into management's decision making process. Furthermore, these non-gaap measures should not be viewed as indicative of the actual amount of cash that is available for distributions or planned distribution for a given period, nor should they be equated to available cash as defined in the Partnership's partnership agreement. 31

32 Appendix FINANCIAL OVERVIEW (thousands, except per share amounts) Market Capitalization: TTI Market price per share on 3/16/2015 $ 5.34 Shares outstanding as of 02/27/ ,650 Market Capitalization $ 425,331 Enterprise Value: TTI Market capitalization based on 3/16/2015 stock price $ 425,331 Total debt, excluding CSI Compressco LP debt, as of 12/31/14 395,074 Enterprise Value $ 820,405 Market Capitalization: CCLP Market price per unit on 3/16/2015 $ Units outstanding as of 11/13/14 33,142 Market Capitalization $ 564,414 Enterprise Value: CCLP Market capitalization based on 3/16/2015 stock price $ 564,414 Total CSI Compressco LP debt, as of 12/31/14 539,961 Enterprise Value $ 1,104,375 (in thousands) CSI Compressco LP Distributable Cash Flow Twelve Months Ended December 31, 2014 Net income $ 11,258 Provision for income taxes (1,172) Depreciation and amortization 41,158 Interest (income) expense, net 12,964 EBITDA $ 64,208 Less: Current income tax benefit (expense) (3,459) Maintenance capital expenditures (4,974) Interest expense (12,964) Plus: Non-cash cost of compressors sold 6,529 Equity compensation 1,544 Amortization of finance costs 1,163 CSI transaction related expenses 13,258 Distributable cash flow $ 65,305 32

33 Appendix FINANCIAL OVERVIEW Reconciliation of EBITDA Production Testing in $ millions Income(Loss) before Taxes and Disc. Operations $ 15 $ 36 $ 40 $ 14 $ (66) Interest Expense (0) Depreciation Equity Compensation Unusal items EBITDA $ 30 $ 50 $ 64 $ 42 $ 40 Reconciliation of EBITDA Offshore Services in $ millions Income(Loss) before Taxes and Disc. Operations $ 5 $ 18 $ 22 $ 23 $ (26) Interest Expense Depreciation Equity Compensation Unusual items EBITDA $ 41 $ 38 $ 42 $ 47 $ 7 Fluids in $ millions Income(Loss) before Taxes and Disc. Operations $ 16 $ 32 $ 51 $ 69 $ 65 Interest Expense (0) Depreciation Equity Compensation Unusal items EBITDA $ 44 $ 52 $ 70 $ 92 $ 101 ($ thousands) Reconciliation of Free Cash Flow excluding Maritech Cash from operating activities $ (13,440) $ 20,521 $ 63,827 Add: Decommisioning Liabilities $ 94,419 $ 114,109 $ 63,319 Add: Compressco Distributions $ 20,219 $ 22,123 $ 23,526 Less: Capital Expenditures $ (86,577) $ (75,451) $ (64,767) Free Cash Flow $ 14,621 $ 81,302 $ 85,905 NOTE: Free cash flow is for TETRA excluding CSI Compressco for all line items other than distributions paid to TETRA 33

34 Appendix FINANCIAL OVERVIEW CSI Compressco Adjusted EBITDA Reconciliation In $Millions Q Net Income $ 14 $ 7 $ 16 $ 18 $ 4 $ 11 Provision of Income Taxes (1) (1) Profit Before Taxes $ 16 $ 9 $ 20 $ 20 $ 3 $ 10 Interest Expense DD&A Equity Comprensation Amortization of financing costs Unusual Items Adjusted EBITDA $ 29 $ 27 $ 35 $ 37 $ 35 $ 81 Adjusted EBITDA Margin 35% 28% 32% 31% 28% 29% In $Millions CSI Compressco 2014 CSI Unaudited (1/1/14 to 8/3/14) 2014 Pro-Forma Unaudited Revenue $ 283 $ 208 $ 491 COGS DD&A G&A Interest Expense Other Income Profit Before Taxes $ 10 $ 28 $ 38 Pro-Forma Adjusted EBITDA Reconciliation Profit Before Taxes Interest Expense DD&A Stock Option Expense 2-2 Amortization of Financing Costs 1-1 Unusual Items Adjusted EBITDA $ 81 $ 51 $

35 TETRA Technologies, Inc. and CSI Compressco LP March 2015