Tetra Technologies Inc (TTI) 2023 Q4 法說會逐字稿

Good morning, and welcome to Tetra Technologies first fourth quarter 2023 results conference call. All participants will be in listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note this event is being recorded. I will now turn the conference over to Rigo Gonzalez.

早安，歡迎參加 Tetra Technologies 2023 年第四季第一次業績電話會議。所有參與者將處於僅聽模式。（操作員說明）今天的演示結束後，將有機會提問。（操作員說明）請注意此事件正在被記錄。我現在將會議交給里戈·岡薩雷斯。

So ahead they can Joel.

所以他們可以領先喬爾。

Good morning, and thank you for joining federal Fourth Quarter 2023 Results Call. Speakers for today's call are Brady Murphy, Chief Executive Officer, and Alicia Arnold, Chief Financial Officer. I would like to remind you that this conference call may contain statements that are or may be deemed to be forward looking including projections, financial guidance, profitability and estimated earnings statements are based on certain assumptions and analysis made by Tetra and are based on several factors. These statements are subject to several risks and uncertainties, many of which are beyond the control of the Company You're cautioned that such statements are not guarantees of future performance and that actual results may differ materially from those projected in the forward-looking statements.

早安，感謝您參加聯邦 2023 年第四季結果電話會議。今天電話會議的發言人是執行長 Brady Murphy 和財務長 Alicia Arnold。我想提醒您，本次電話會議可能包含前瞻性陳述，包括預測、財務指導、盈利能力和預計收益報表，這些陳述基於 Tetra 做出的某些假設和分析，並基於多個因素。這些陳述存在多種風險和不確定性，其中許多風險和不確定性超出了公司的控制範圍。請注意，此類陳述不能保證未來業績，實際結果可能與前瞻性陳述中的預測有重大差異。

In addition, in the course of the call, we may refer to EBITDA, adjusted EBITDA, adjusted EBITDA, gross margins, free cash flow, net debt, net leverage ratio, liquidity, returns on net capital employed or other non-GAAP financial measures, please refer to yesterday's press release or to our public website for reconciliations of non-GAAP financial measures to the nearest GAAP measures. And These reconciliations are not substitute for financial information prepared in accordance with GAAP and should be considered within the context of our complete financial results for the period.

此外，在電話會議過程中，我們可能會提及 EBITDA、調整後 EBITDA、調整後 EBITDA、毛利率、自由現金流、淨債務、淨槓桿率、流動性、淨資本回報率或其他非 GAAP 財務指標，請參閱昨天的新聞稿或我們的公共網站，以了解非GAAP 財務指標與最接近的GAAP 指標的調節表。這些調節表不能取代根據 GAAP 準備的財務訊息，應在我們當期完整財務業績的背景下考慮。

In addition to our press release announcement, we encourage you to refer to our 10-K that we also filed yesterday. I will now turn it over to Brady.

除了我們的新聞稿之外，我們還鼓勵您參考我們昨天提交的 10-K。我現在將把它交給布雷迪。

Thank you, Rigo, and good morning, everyone, and welcome to Tetra Technologies fourth quarter earnings call. 2023 was a historical year for the company. And despite higher than usual year ending activity slowdowns in a few of our segments, we are seeing good activity recovery in the first half of 2024 and expect another year of growth for 2023 achieved numerous historical financial highs for us also achieve some strategic milestones that will benefit the Company for many years to come.

謝謝 Rigo，大家早安，歡迎參加 Tetra Technologies 第四季財報電話會議。 2023年對公司來說是歷史性的一年。儘管我們的部分細分市場的年末活動放緩程度高於往常，但我們預計2024 年上半年的活動將出現良好復甦，並預計2023 年又將實現增長，實現眾多歷史財務新高，同時實現一些戰略里程碑，這將有助於使公司在未來多年受益。

Our full year 2023 adjusted EBITDA, excluding mark-to-market of $106 billion, grew by 37% from 2022 and nearly three times higher than that of 2021, as both of our segments posted another year of strong returns.

我們的 2023 年全年調整後 EBITDA（不包括按市值計算的 1,060 億美元）比 2022 年增長了 37%，比 2021 年增長了近三倍，因為我們的兩個部門又迎來了強勁回報。

Our full year 2023 adjusted free cash flow of $41.1 million was 61.6% higher than 2022 and was slightly above our guidance from the beginning of the year, representing approximately a 40% conversion rate of adjusted EBITDA to adjusted free cash flow. This was achieved despite significant investments made in Arkansas and investments made to finalize the engineering design for our first-ever commercial produced water for beneficial reuse project, a solution that we believe will be disruptive for the industry and transforming oil and gas well produced water from a waste into an important resource.

我們的 2023 年全年調整後自由現金流為 4,110 萬美元，比 2022 年高出 61.6%，略高於我們年初的指導，調整後 EBITDA 與調整後自由現金流的轉換率約為 40%。儘管我們在阿肯色州進行了大量投資，並為完成我們首個商業采出水有益再利用項目的工程設計而進行了投資，但我們仍然實現了這一目標，我們相信這一解決方案將對該行業產生顛覆性影響，並將石油和天然氣井採出水轉化為石油和天然氣井採出水。將廢棄物轉化為重要資源。

Our strong 2023 adjusted EBITDA growth was achieved despite little contributions from Tetra CS Neptune and Tetra Pure Flow, which we will believe will be catalysts for further growth in 2024. For the full year, our Completion Fluids & Products segment grew revenue by $40 million or 15%, while adjusted EBITDA grew $22 million or 32%, representing an EBITDA fall-through of nearly 55%, driven by strong performance in our Industrial Chemicals business and growth in our international offshore completion fluids operations, full year Completion Fluids & Products revenue of $313 million was the highest since 2015 when we completed two large central CS Neptune projects in the Gulf of Mexico. Our Industrial Chemicals business posted a historical year, achieving its highest revenue and adjusted EBITDA in our history with 2023 revenue growth over '22 of over 18%.

儘管 Tetra CS Neptune 和 Tetra Pure Flow 貢獻不大，我們仍實現了 2023 年調整後 EBITDA 的強勁增長，我們相信這將成為 2024 年進一步增長的催化劑。全年，我們的完井液和產品部門營收成長了4,000 萬美元，即15%，而調整後的EBITDA 成長了2,200 萬美元，即32%，這意味著EBITDA 下降了近55%，這得益於我們工業化學品業務的強勁表現以及我們國際海上完井液業務的成長，全年完井液和產品收入達到3.13 億美元，這是自2015 年我們在墨西哥灣完成兩個大型中央CS Neptune 項目以來的最高水準。我們的工業化學品業務迎來了歷史性的一年，實現了歷史上最高的收入和調整後 EBITDA，2023 年收入比 22 年增長超過 18%。

Our Industrial Chemicals business is now 22% of the company's total revenue. And as we ramp up deliveries of zinc bromide based electrolyte in the coming years, we expect this percentage to continue to increase our diversity and product offering, including grades for technology and food and superior product quality allows us to participate in a wide range of markets and applications, as evidenced by our recent entry into the lithium production process in South America and the chip manufacturing process in the United States. Our leading market positions in Northern Europe and US. gives us stable markets in which to operate with predictable revenue and earnings and strong free cash flow, allowing us to reinvest in our new high growth opportunities for Energy Services.

我們的工業化學品業務目前占公司總收入的 22%。隨著我們在未來幾年增加溴化鋅電解液的交付量，我們預計這一百分比將繼續增加我們的多樣性和產品供應，包括技術和食品等級，卓越的產品品質使我們能夠參與廣泛的市場和應用，我們最近進入南美的鋰生產流程和美國的晶片製造流程就證明了這一點。我們在北歐和美國的市場處於領先地位。為我們提供了穩定的市場，使我們能夠以可預測的收入和收益以及強勁的自由現金流進行運營，使我們能夠對能源服務新的高成長機會進行再投資。

Total revenue attributed to offshore projects increased 11% year over year, and we anticipate another another double-digit top line growth in 2024 as our pipeline of offshore projects continues to build. We've already recovered the investments made in recent years where we strategically expanded capacity in key deepwater offshore markets and expect to continue to generate positive momentum in those markets, we have intentionally built our inventory levels to capture the upcoming growth in deepwater activity. Although floater utilization shows increasing rig availability through 2024 price that expects operators will continue to exercise outstanding options and or continue to recontract rigs currently under contract marketed utilization is expected to peak in 2028 at 91% due to steady growth in project development activity centers well positioned to benefit from this multiyear growth trajectory.

離岸項目的總收入年增 11%，隨著我們的離岸項目管道的不斷建設，我們預計 2024 年收入將再次實現兩位數增長。我們已經收回了近年來的投資，策略性地擴大了關鍵深水離岸市場的產能，並預計將繼續在這些市場產生積極的勢頭，我們有意建立庫存水平，以抓住即將到來的深水活動的增長。儘管浮式設備利用率顯示到2024 年鑽機可用性不斷增加，但預計運營商將繼續行使未完成的選擇權，或繼續重新承包目前合約銷售的鑽機，由於項目開發活動中心定位良好，利用率預計將在2028 年達到91% 的峰值受益於這種多年的成長軌跡。

Our outlook for Tetra CS Neptune continues to improve, and we've secured a second quarter job in the North Sea. And we are in early discussions with two different supermajors for projects in the Gulf of Mexico that was scheduled for late 2024 or early 2025 earlier this month, the executive team and I visited uses state-of-the-art automated manufacturing line at the Actros, Wisconsin facility and came away with high confidence they will deliver to users' requirements earlier this year, you announced that it expanded its partnership with Tetra and designated the company as its preferred strategic supplier for the for electrolyte of its Z. three long duration energy storage cube.

我們對 Tetra CS Neptune 的前景繼續改善，並且我們已經在北海獲得了第二季度的工作。我們正在與兩家不同的超級巨頭就墨西哥灣的項目進行早期討論，該項目原定於本月早些時候於2024 年底或2025 年初進行，我和我參觀的執行團隊在Actros 使用了最先進的自動化生產線位於威斯康辛州的工廠，今年早些時候，您對他們將滿足用戶的要求充滿信心，宣布擴大與Tetra 的合作夥伴關係，並指定該公司為其Z. 3 長壽命能源電解液的首選策略供應商儲存立方體。

The company was previously only providing architecture Pure Flow zinc bromide solution, which was only a portion of the full electrolyte, the evolution of increasing Tetris participation with videos from only that's a pure flow through the full electrolyte will be accomplished without the need for incremental bromine as a good fit within our chemistry expertise. Central is expected to supply a minimum of 75% of the total electrolyte product demand going forward. And we anticipate deliveries to be meaningfully higher than 2023, mostly in the second half of the year. This relationship and the timing of their expected growth also dovetails nicely with our Arkansas bromine production plants.

該公司之前只提供架構純流溴化鋅溶液，這只是完整電解質的一部分，通過視頻增加俄羅斯方塊參與度的演變將通過僅通過完整電解質的純流來完成，而不需要增量溴非常適合我們的化學專業知識。Central預計未來將至少供應電解液產品總需求的75%。我們預計交付量將顯著高於 2023 年，主要是在今年下半年。這種關係及其預期成長的時間也與我們阿肯色州的溴生產工廠非常吻合。

Turning to our Water & Flowback Services segment, despite declining rig activity and active three frac fleets for most of 2023, while full year revenue was up $33 million or 12% and adjusted EBITDA was up $10 million or 23%. The majority of the growth was driven by continued market share gains and high utilization within our fleet of Tetra Sandstorm and an increasing part of our business dealing with produced water, which despite declining US drilling and completion activity in '23 is only increasing along with oil and gas production, the market share gains and benefits of shifting our focus to production rather than drillbit can be seen by our 2023 revenue, exceeding that of our previously year high in 2018.

轉向我們的水和返排服務部門，儘管2023 年大部分時間裡鑽機活動和活躍的三個壓裂船隊有所下降，但全年收入增長了3300 萬美元，即12%，調整後的EBITDA成長了1000 萬美元，即23%。成長的主要原因是我們的Tetra Sandstorm 船隊的市佔率持續成長和高利用率，以及我們越來越多的業務涉及採出水，儘管23 年美國鑽井和完井活動有所下降，但採出水僅隨著石油的增加而增加和天然氣生產方面，我們 2023 年的收入超過了 2018 年的高點，可以看出市場份額的增長以及將重點轉移到生產而不是鑽頭的好處。

But with 50% less rig activity, these market share gains were achieved as we improved our adjusted EBITDA margins from 15.5% to 17% in 2023. International business, mainly Argentina also drove some of the revenue increase. And although we strategically sold one of our EPS in the fourth quarter, we anticipate earnings to be flat year over year in that region. As previously mentioned, these projects are longer-term contracts with established day rates, which also provide a steady stream of cash flows over the last several years, we have deployed significant growth capital in this segment to build out our fleet for Tetra Sandstorm's, introduce new technology to help drive efficiencies, increase our capacity for water treatment and recycling and investments in EPS to grow beyond North America.

但隨著鑽機活動減少 50%，我們在 2023 年將調整後 EBITDA 利潤率從 15.5% 提高到 17%，從而實現了這些市場份額的成長。國際業務（主要是阿根廷）也推動了部分收入的成長。儘管我們在第四季度策略性地出售了一份每股收益，但我們預計該地區的收益將同比持平。如前所述，這些項目是具有既定日費率的長期合同，在過去幾年中也提供了穩定的現金流，我們在這一領域部署了大量的增長資本，為Tetra Sandstorm 建造我們的船隊，介紹新技術有助於提高效率、提高我們的水處理和回收能力以及 EPS 投資，以實現北美以外地區的成長。

These investments are paying off, as demonstrated by our improvement in return on net capital employed as we expect they will continue to drive higher returns as we move forward with this segment, we will continue to invest in technology and automation, but we'll maintain our focus on returns rather than additional growth as we plan to divert much of the growth capital to Arkansas and our produced water for beneficial reuse projects in November of 5.2 magnitude earthquake was recorded in the Permian Basin, marking the fourth strongest recorded in Texas vessels in the past few weeks, earthquakes over 4.0 magnitude were reported in New Mexico, South Texas and Oklahoma, as our tweets become more frequent and more intense in areas of produced water disposal regulators have increased sense of urgency to limit volumes of produced water disposal and find alternative solutions, multiple agencies across multiple states and are very active in defining regulatory specifications for using produced water for industrial farming and other applications sectors engaging with regulatory agencies as well as operators to ensure our solutions will meet these requirements.

這些投資正在得到回報，正如我們所使用的淨資本回報率的改善所證明的那樣，我們預計隨著我們推進這一領域，它們將繼續帶來更高的回報，我們將繼續投資於技術和自動化，但我們將保持我們的重點是回報而不是額外的增長，因為我們計劃將大部分增長資本轉移到阿肯色州，並且我們的產出水用於有益的再利用項目。11 月，二疊紀盆地發生了5.2 級地震，這是德克薩斯州船隻有記錄的第四強地震過去幾週，新墨西哥州、德克薩斯州南部和俄克拉荷馬州報告發生了4.0 級以上的地震，隨著我們在採出水處理領域發布的推文變得更加頻繁和強烈，監管機構增加了限制採出水處理量的緊迫感，並發現替代解決方案，多個州的多個機構非常積極地制定將產出水用於工業化農業和其他應用部門的監管規範，與監管機構和營運商合作，以確保我們的解決方案符合這些要求。

We met our year-end targets, Dave to complete the engineering design for our first commercial produced water for beneficial reuse projects. We are currently in advanced negotiations with one of the largest U.S. oil producers for their beneficial reuse project and have entered commercial discussions for a second high salinity Permian Basin demonstration project. We are on track to deploy our first commercial project in the second half of this year. Lastly, in 2023, we significantly advanced our Arkansas lithium and bromine brine project. In June, we announced an MOU with ThoughtWorks LLC, a wholly owned subsidiary of ExxonMobil to pull both of our acreage to form the evergreen brand unit, which is a subset subsequently unanimously approved by the AOGC. in September.

我們實現了年終目標，戴夫完成了我們第一個商業產水有益再利用專案的工程設計。我們目前正在與美國最大的石油生產商之一就其有益再利用項目進行深入談判，並已就第二個高鹽度二疊紀盆地示範項目進行商業討論。我們預計在今年下半年部署我們的第一個商業項目。最後，2023 年，我們顯著推進了阿肯色州鋰和溴鹵水計畫。6 月，我們宣布與埃克森美孚的全資子公司 ThoughtWorks LLC 簽署諒解備忘錄，將我們雙方的土地合併組成常青品牌部門，該部門隨後得到了 AOGC 的一致批准。在九月。

In the fourth quarter, we launched and completed a technical resource historic study for the evergreen brand unit, which advanced our prior inferred resources to include the measured and indicated category, reflecting higher confidence in the resources evaluated by the study. The study highlighted the highest lithium concentrations to date, many lithium brine resource in the US for which and S-K 1300 dash one one or JORC compliant technical report summary has been published. I'm also pleased to announce that yesterday we closed on 120-acre plant site that is ideally located just south of stamps Arkansas that is within our 35,000 leased acres and one mile north of our evergreen brand unit.

第四季度，我們啟動並完成了常青品牌單位的技術資源歷史研究，該研究將我們先前推斷的資源納入了測量和指示類別，反映出對研究評估的資源有更高的信心。該研究強調了迄今為止最高的鋰濃度，美國的許多鋰鹵水資源和 S-K 1300 dash 一一或符合 JORC 的技術報告摘要已發布。我還很高興地宣布，昨天我們關閉了佔地120 英畝的工廠，該工廠位於阿肯色州郵票南部，地理位置優越，位於我們的35,000 英畝租賃土地內，距我們的常青品牌單位以北一英里。

We are currently performing soil sampling before planning to break ground later this year filing. We're currently focused on completing the lithium FEED study as well as finalizing the negotiations for operating joint venture and or joint development agreements relating to the development of the Evergreen Brian unit. Based on that report, plus the engineering studies that were previously completed, we were able to secure the remaining financing required to complete the bromine processing facility once we get to FID, which we expect to be later this year.

我們目前正在進行土壤採樣，然後計劃在今年稍後破土動工備案。我們目前的重點是完成鋰 FEED 研究，並完成與 Evergreen Brian 裝置開發相關的合資企業和/或共同開發協議的談判。根據該報告，加上先前完成的工程研究，一旦我們獲得最終投資決定（我們預計將在今年稍後），我們就能夠獲得完成溴處理設施所需的剩餘融資。

Now I'll turn it over to Lidio to provide some additional commentary on the successful financing and our financial results. Then we'll open it up to questions.

現在我將把它交給 Lidio，對成功的融資和我們的財務表現提供一些額外的評論。然後我們將開放提問。

Thank you, Brady, and good morning. Everybody. 2023 with a strong year for Tetra, adjusted EBITDA was up 37% and operating income was up 183%. Adjusted EBITDA margin of 17.1% increased 300 basis points year over year. And more importantly, we generated over $40 million of free cash flow in 2023. We also significantly improved our balance sheet, ending the year with a net leverage ratio of 1.1 times and a 27% reduction in net debt. As of February 26, liquidity was $212 million, inclusive of the $35 million delayed draw feature that is available to Tetra for the bromine project.

謝謝你，布雷迪，早安。大家。 2023 年是 Tetra 強勁的一年，調整後的 EBITDA 成長了 37%，營業收入成長了 183%。調整後 EBITDA 利潤率為 17.1%，較去年同期成長 300 個基點。更重要的是，我們在 2023 年創造了超過 4,000 萬美元的自由現金流。我們也大幅改善了資產負債表，年底淨槓桿率為 1.1 倍，淨債務減少 27%。截至 2 月 26 日，流動資金為 2.12 億美元，其中包括 Tetra 可用於溴項目的 3,500 萬美元延遲提款功能。

In addition, based on Friday's closing prices, our holdings of Standard Lithium and CSI Compressco combined for a total market cap of approximately $12 million. And this investments can be monetized if necessary. Subsequent to the end of the quarter, we refinanced extended and expanded our term loan at a more attractive interest rate than our prior term loan. Further strengthening our balance sheet and providing us the flexibility to execute on our growth initiatives. We were very pleased with the reception we got on the refinancing, which we reached out to a significant number of potential capital providers, including those in the oil and gas mining and chemicals sector and received interest from over 60 capital providers.

此外，根據週五收盤價，我們持有的 Standard Lithium 和 CSI Compressco 的總市值約為 1,200 萬美元。如有必要，這些投資可以貨幣化。在本季末後，我們以比之前的定期貸款更具吸引力的利率進行了再融資，延長並擴大了我們的定期貸款。進一步加強我們的資產負債表，並為我們提供執行成長計畫的靈活性。我們對再融資獲得的反應感到非常滿意，我們聯繫了大量潛在的資本提供者，包括石油和天然氣開採以及化學工業的資本提供者，並收到了 60 多家資本提供者的興趣。

We received 11 term sheets and favorables wanted on the road to help us refinance the entire term loan without partners, providing us the capital to help us with the bromine initiatives and indicate a strong interest in supporting us with the required capital for the lithium initiatives and talking to those in the industry, getting five term sheets from capital providers willing to take on the entire opportunity on their own plus another six willing to be part of a consortium is where for a small or mid-cap oilfield services company in today's environment, we believe this demonstrates the value of a company like Tetra with over $100 million of adjusted EBITDA, a leverage ratio of 1.1 times free cash flow of over $40 million and working with a partner like ExxonMobil as an industrial chemicals revenue base of $130 million is not subject to the fluctuations of the oil and gas industry, plus our history of being free cash flow and EBITDA positive in the last two downturns makes us an attractive partner to raise capital.

我們收到了11 份條款清單和優惠，以幫助我們在沒有合作夥伴的情況下為整個定期貸款再融資，為我們提供資金來幫助我們實施溴計劃，並表明有強烈興趣支持我們提供鋰計劃所需的資本和與業內人士交談，從願意獨自承擔整個機會的資本提供者那裡獲得五份投資意向書，再加上另外六份願意成為財團一部分的投資意向書，這對於當今環境下的中小型油田服務公司來說是必要的，我們相信，這證明了像Tetra 這樣的公司的價值，其調整後EBITDA 超過1 億美元，槓桿率為1.1 倍的自由現金流，超過4000 萬美元，並與埃克森美孚這樣的合作夥伴合作，工業化學品收入基礎為1.3 億美元。受石油和天然氣行業波動的影響，加上我們在過去兩次經濟低迷時期保持自由現金流和EBITDA 為正值的歷史，使我們成為有吸引力的融資合作夥伴。

Our terminals. We financed 50 basis points below our prior term loan and the maturity is now January of 2013. Our balance sheet aside nicely said to invest in lithium and bromine in Arkansas between our current liquidity, expected free cash flow in 2024 and 2025 plus the $75 million delayed draw feature available to us. We believe we have the capital necessary to complete the bromine project without having to issue equity. Our focus will now shift towards finding the capital for our 49% of the expected lithium joint venture with ExxonMobil, just like we did with the bromine projects. Our objective is to source of capital for lithium will rock without relying on the equity market. We will evaluate project financing at the JV level and government loans and grants for a portion of the lithium project. From an outlook perspective, we expect 2024 revenue, adjusted EBITDA and free cash flow to be above 2023. And as mentioned, earlier 2023 cash flow was $41 million.

我們的終端。我們提供的貸款比上期貸款低 50 個基點，到期日為 2013 年 1 月。撇開資產負債表不談，我們很好地表示，在我們目前的流動性、2024 年和2025 年的預期自由現金流加上我們可用的7500 萬美元延遲提款功能之間投資阿肯色州的鋰和溴。我們相信我們擁有完成溴項目所需的資本，而無需發行股權。我們現在的重點將轉向為我們與埃克森美孚預計持有 49% 的鋰合資企業尋找資金，就像我們在溴項目上所做的那樣。我們的目標是在不依賴股市的情況下為鋰礦提供資金來源。我們將評估合資企業層面的專案融資以及部分鋰專案的政府貸款和贈款。從前景來看，我們預計 2024 年的營收、調整後 EBITDA 和自由現金流將高於 2023 年。如前所述，2023 年初的現金流為 4,100 萬美元。

Our base business free cash flow in 2024 is expected to be better than 2023 before investments in bromine and the lithium project in Arkansas. We don't expect our Arkansas investments in 2024 to be more than the free cash flow we generated from our base business and we don't expect to use our delayed-draw revolver until 2025. We believe we remain on plan to be generating revenue and EBITDA from the bromine and lithium projects in 2026. We also expect a ramp up in electrolyte sales into the stationary battery storage market in the second half of 2024. We also expect to be generating revenue and EBITDA from the first desalination project in the second half of 2023, 2024.

我們2024年的基礎業務自由現金流預計將優於投資阿肯色州溴和鋰計畫之前的2023年。我們預計 2024 年在阿肯色州的投資不會超過我們從基礎業務中產生的自由現金流，並且我們預計要到 2025 年才會使用我們的延遲提款左輪手槍。我們相信，我們仍計劃在 2026 年從溴和鋰項目中產生收入和 EBITDA。我們也預期 2024 年下半年固定電池儲存市場的電解液銷售量將會增加。我們也預計第一個海水淡化項目將在 2023 年下半年和 2024 年產生收入和 EBITDA。

These will be the catalyst or 2024 being stronger than 2023 in the first fourth quarter, we expect Water Management to be stronger than the fourth quarter due to the ramp up in fracking activity that we saw early this quarter. We expect full flowback services to be weaker in the first quarter relative to the fourth quarter as the flowback lags water management and fracking by two to three months sum total of this is a Q1 water management and flowback services EBITDA to be comparable to Q4 slipped and stronger in the second quarter of flowback services, we bounce on a stronger first quarter fracking activity?

這些將成為催化劑，即 2024 年第四季的表現將強於 2023 年，由於本季初我們看到水力壓裂活動的增加，我們預計水資源管理將強於第四季。我們預計第一季的全面回流服務將弱於第四季度，因為回流滯後於水管理和水力壓裂兩到三個月，第一季的水管理和回流服務 EBITDA 與第四季度的下滑相當，第二季回流服務走強，我們會因為第一季水力壓裂活動走強而反彈嗎？

Also remember that in the second quarter, we see a seasonal peak in industrial chemicals business in Northern Europe that has historically added approximately $50 million in revenue Q2 over Q1 and has added between $4 million to $6 million in EBITDA Q2 over Q1. We expect our second quarter of 2024 to be at or above the second quarter of last year. From an investor relations perspective, we have several events coming up to help us further communicate our initiatives. We will be hosting one or once tomorrow at the Scotia conference in Miami, Northland Capital who initiated coverage on Keppra last month.

請記住，在第二季度，我們看到北歐工業化學品業務出現季節性高峰，第二季度的收入比第一季度增加了約5000 萬美元，第二季度的EBITDA 比第一季增加了400 萬至600 萬美元。我們預計 2024 年第二季的業績將達到或高於去年第二季的水平。從投資者關係的角度來看，我們即將舉辦幾項活動來幫助我們進一步傳達我們的舉措。明天我們將在 Northland Capital 邁阿密舉辦 Scotia 會議，該會議上個月發起了對 Keppra 的報導。

We will be hosting us for our virtual fireside chat on March 14 and co-led with benchmark who also recently initiated coverage on Tetra will be hosting us for a non-deal roadshow in New York City, Philadelphia and Boston in the first week of April. This will include a group lunch on April first in New York City with Brady, myself and our Chairman of the Board, Jay Glick. Please reach out to me if you'd like to person participate in any of these events, strong performance by our base business. Our long-duration battery storage opportunity in our lithium arrangements with ExxonMobil has created a strong industry interest in Tetra. We now have six research analysts covering Tetra up from just a couple of years ago. I'll turn this back to Brady for closing comments before we open up the call to questions.

我們將在3 月14 日主持我們的虛擬爐邊聊天，並與最近也開始報道Tetra 的基準測試公司共同領導，並將於4 月的第一周在紐約市、費城和波士頓舉辦一場非交易路演。 。這將包括 4 月 1 日在紐約與 Brady、我本人以及我們的董事會主席 Jay Glick 共進午餐。如果您想參加任何這些活動，請與我聯繫，我們的基地業務表現強勁。我們與埃克森美孚的鋰電池安排中的長期電池儲存機會引起了業界對 Tetra 的濃厚興趣。我們現在有六位研究分析師，從幾年前開始就對 Tetra 進行研究。在我們開始提問之前，我會將其轉回布雷迪以徵求結束意見。

Thanks, Elijio. We're ending 2024 with a strong and growing base business, a solid balance sheet over $210 million of liquidity with a constructive outlook for our products and services. We anticipate further growth in 24 and expect to continue to generate strong free cash flow from our base business to fund our strategic growth investments. Combination of these plus advances in our produced water beneficial reuse solution. Our Arkansas resource position and strategic partnerships provides us with the opportunity to continue to drive long-term shareholder value. While '23 was a historical year for the company. We anticipate '24 to be both historic and transformational.

謝謝，埃利吉奧。到 2024 年，我們的基礎業務將強勁且持續成長，資產負債表穩健，流動性超過 2.1 億美元，我們的產品和服務前景樂觀。我們預計 24 年將進一步成長，並預計將繼續從我們的基礎業務中產生強勁的自由現金流，為我們的策略成長投資提供資金。這些優勢與我們的採出水再利用解決方案的進步相結合。我們在阿肯色州的資源地位和策略合作夥伴關係為我們提供了繼續推動長期股東價值的機會。23 年對公司來說是歷史性的一年。我們預期'24'將是歷史性的和變革性的。

With that, we'll now open up to questions.

至此，我們現在開始提問。

We will now begin the question-and-answer session. (Operator Instructions)

我們現在開始問答環節。（操作員說明）

Martin Malloy, Johnson Rice.

馬丁·馬洛伊，約翰遜·賴斯。

Good morning and congratulations on a strong '23 in the free cash flow generation. I think my earlier question and my first question, just wanted to see if maybe you could go over. I think I heard FID of the bromine project later this year, but could you go over maybe the timing of the CapEx requirements for the bromine project and also the associated and I guess, the amount and the associated wells and pipe.

早安，恭喜 23 年來自由現金流產生的強勁表現。我想我之前的問題和第一個問題只是想看看你是否可以再問一次。我想我今年稍後聽說了溴項目的 FID，但是您能否回顧一下溴項目的資本支出要求的時間安排以及相關的（我猜）金額以及相關的油井和管道。

Sure, Marty, I'll take the first part of that and then maybe ask Leo to talk about the capital outlay. But as far as timing goes. As you know, we completed the bromine FEED study last year, and we have been layering over the that FEED study with the lithium FEED study because they will be on the same plant site. And obviously, there are some synergies that we can gain by having two plants on the same site, which we mentioned. We just closed on yesterday, 100, 20 acres, just south of stamps, Arkansas. And so we hope to have the the lithium or sorry, the bromine cost analysis completed within the next couple of months to where we can take that proposal to the Board with updated economics and get approval to move forward with with the bromine as a portion of that project, the lithium as you know, is with our JV partner or hopefully to be JV partner. And that one, we think will follow after the bromine FID, probably late Q3, potentially Q4. And then we're obviously working with them once we get our final agreements in place to decide how the funding of that will be handled.

當然，馬蒂，我會先講第一部分，然後也許請利奧談談資本支出。但就時間而言。如您所知，我們去年完成了溴 FEED 研究，並且我們一直將該 FEED 研究與鋰 FEED 研究疊加在一起，因為它們將位於同一工廠現場。顯然，正如我們所提到的，我們可以透過在同一地點擁有兩家工廠來獲得一些協同效應。我們昨天剛關閉了 100、20 英畝的土地，位於阿肯色州郵票南面。因此，我們希望在接下來的幾個月內完成鋰或抱歉，溴的成本分析，以便我們可以將該提案提交給董事會，並提供最新的經濟數據，並獲得批准繼續將溴作為其中的一部分。如您所知，該專案是我們的合資夥伴或希望成為合資夥伴的鋰專案。我們認為這將在溴 FID 之後進行，可能是第三季末，也可能是第四季。一旦我們達成最終協議，我們顯然會與他們合作，以決定如何處理資金。

And with that, I'll ask Elijio to give some more comments.

接下來，我將請 Elijio 提供更多評論。

Yes, Marty, with respect to the capital for the bromine side, we'll start placing orders for long lead items. We will begin and finish soon. The detailed engineering design and they will begin doing a lot of the civil work during this year. We don't expect a significant amount of the construction to begin until next year.

是的，馬蒂，關於溴方面的資金，我們將開始為長交貨期項目下訂單。我們將很快開始並結束。詳細的工程設計和他們將在今年開始進行大量的土木工程。我們預計大量建設工作要到明年才會開始。

On the lithium side, once we and our partner agreed to approve the project and move forward. Any investments that we make remember are going to be shared between us and our partner.

在鋰方面，一旦我們和我們的合作夥伴同意批准該專案並繼續前進。我們記住的任何投資都將由我們和我們的合作夥伴共享。

The sum total of all bonuses that expenditures this year, we believe will be below the free cash flow that are at or below the free cash flow that we generate from base business, keeping us from borrowing any on the delayed draw or ABL facility this year.

我們認為今年支出的所有獎金總和將低於自由現金流，而自由現金流等於或低於我們從基礎業務產生的自由現金流，這使我們今年無法借用任何延遲提款或 ABL 設施。

Thank you. And my follow up question, wanted to ask about the desalinization of water reuse plant and the first one. Could you maybe talk about ownership and CapEx related to it and what the finished water after it comes out of this plant, what it is expect it to be used for?

謝謝。我的後續問題，想問中水回用廠和第一個海水淡化廠的狀況。您能否談談與之相關的所有權和資本支出，以及從該工廠出來的成品水的用途，預計其用途是什麼？

Sure. So a couple of pieces of that question. In terms of this particular project, our first project of the way we are outlining responsibilities for the project, we will own the desal technology and equipment that is on location. Our partner will be providing the capital for the civils works and the site construction costs. So it will be a bit of a combined offering, but this is a multi-year targeted for over five years types of project targeting between 20,000 and 25,000 barrels per day of produced water for desalination now the specifications of that water, if you remember, Marty, we completed last year a pilot project using the same technology where we were able to desalination 92% of the brine of produced water inflow to freshwater specifications that ourselves and the regulators would meet the current regulatory environment and ourselves and our customer very happy with. So that's the the commercial design that we have now built and as I said, will be will be shared, we'll be owning the equipment and the technology and our partner will be owning the site and the civil works for that particular location.

當然。這個問題有幾個部分。就這個特定項目而言，這是我們概述項目職責的第一個項目，我們將擁有現場的海水淡化技術和設備。我們的合作夥伴將為土建工程和現場建設成本提供資金。因此，這將是一個綜合產品，但這是一個多年期目標，目標是五年以上類型的項目，目標是每天生產20,000 至25,000 桶用於海水淡化的產出水，如果你還記得的話，現在是該水的規格，馬蒂，我們去年使用相同的技術完成了一個試點項目，我們能夠將採出水流入的92% 的鹽水淡化至淡水規格，我們自己和監管機構將滿足當前的監管環境，我們自己和我們的客戶對此非常滿意。這就是我們現在建造的商業設計，正如我所說，將被分享，我們將擁有設備和技術，我們的合作夥伴將擁有該特定地點的場地和土木工程。

Great. Thank you. I'll turn it back.

偉大的。謝謝。我會把它轉回來。

Bobby Brooks, Northland Capital Markets.

布魯克斯 (Bobby Brooks)，北國資本市場。

Hey, good morning, guys. Thanks for taking my question. So I kind of want to stick with the beneficial produced water project. So it seems to continue to progress really nicely, and that's the most near term and the emerging revenue opportunities you're pursuing. And I know you kind of just touched on it, but maybe to give some more color, could you remind those of, you know, maybe some of those key milestones achieved so far. Obviously, you already touched on those our preliminary results last year. And then secondly, maybe could you talk about the next steps investors should be watching for on this project and there maybe just talk about the size of the opportunity and how you would anticipate to scale into it.

嘿，早上好，夥計們。感謝您提出我的問題。所以我有點想堅持有益的採出水項目。因此，它似乎繼續取得非常好的進展，這是您正在追求的最近的和新興的收入機會。我知道您剛剛談到了這一點，但也許為了提供更多的色彩，您是否可以提醒一下，您知道，也許迄今為止已實現的一些關鍵里程碑。顯然，您已經提到了我們去年的初步結果。其次，也許您可以談談投資者應該關注這個項目的後續步驟，也許只是談談機會的規模以及您預計如何擴大規模。

Sure. So let me let me recap and highlight kind of the path that we've taken to get us to where we are. As you remember last year or maybe a year and a half ago, we announced two strategic partnerships, some that are kind of integral to the old total desalination solution that we have. A high risk was identified as a reverse osmosis technology that that met our requirements, along with our pretreatment technologies, proprietary pretreatment technology. We felt that was the optimum solution for what I'll call lower TDS., lower total dissolved solids solutions, 60,000 or so parts per million and below appropriate for South Texas, Colorado. Many different environments here in the US, but not for the Permian. Permian is very high total dissolved solids, TDS. for that partnership. We had chosen KMXI., both of those relationships that we have and that uses a backroom vacuum distillation technology for both of those relationships we have exclusive applications for the oil and gas produced water, beneficial reuse and have tailored our pretreatment, which remember this is very different than desalination water. This has a lot of very complex minerals of organics in the fluid. And so that pretreatment is very critical to the ultimate solution. So those two partnerships we've progressed. We've done significant testing of produced water samples from customers across the U.S. at our research facility and entered into negotiations with, again, a large oil producer, one of the largest in North America to put together a commercial project design and proposal for an application in South Texas. That is the first commercial project that we're in commercial discussions discussions with today that we expect to deploy during the second half of the year. That same customer is also very aware of what we're doing on the higher TDS. levels in the Permian Basin with the KMX. technology and we are now in commercial discussions with them for a pilot unit using that technology and our pretreatment for the Permian Basin. That project, we expect to also have launched this year. So we are hoping to have a full commercial production unit in place as well as a demonstrated pilot commercial unit in place for the Permian and the customer interest as you can imagine given the current environment is just a is quite significant for us to have to keep pace with. But those are two near-term focuses.

當然。因此，讓我回顧並強調我們為達到目前目標所採取的道路。正如您去年或一年半前所記得的那樣，我們宣布了兩項策略合作夥伴關係，其中一些是我們現有的舊總海水淡化解決方案不可或缺的一部分。符合我們要求的逆滲透技術以及我們的預處理技術、專有預處理技術被確定為高風險。我們認為這是最佳解決方案，我稱之為較低的 TDS、較低的總溶解固體溶液，即百萬分之 60,000 左右或更低，適合科羅拉多州南德克薩斯州。美國有許多不同的環境，但二疊紀卻不然。二疊紀的總溶解固體（TDS）非常高。為了這種夥伴關係。我們選擇了KMXI。，我們擁有的這兩種關係都使用幕後真空蒸餾技術，對於這兩種關係，我們對石油和天然氣產生的水有獨家應用，有益的再利用，並定制了我們的預處理，記住這是與淡化水有很大不同。流體中含有許多非常複雜的有機礦物質。因此預處理對於最終的解決方案非常關鍵。所以我們的這兩個夥伴關係已經取得了進展。我們在我們的研究設施中對來自美國各地客戶的採出水樣本進行了重要測試，並再次與一家大型石油生產商（北美最大的石油生產商之一）進行談判，以製定商業項目設計和提案。德克薩斯州南部的應用。這是我們今天正在進行商業討論的第一個商業項目，我們預計將在今年下半年部署。該客戶也非常了解我們在提高 TDS 方面所做的工作。二疊紀盆地與 KMX 的水平。我們現在正在與他們就使用該技術的試點裝置以及我們對二疊紀盆地的預處理進行商業討論。我們預計該項目也將於今年啟動。因此，我們希望擁有一個完整的商業生產裝置，以及一個針對二疊紀盆地的示範性試點商業裝置，正如你可以想像的那樣，考慮到當前的環境，我們必須保持客戶的利益，這一點非常重要。步伐與.但這是兩個近期焦點。

Thanks, Nan and non-op gain also Turning to the Industrial Chemicals segment, you know, so destocking was a headwind in the fourth quarter, but then you mentioned in the press release, you know that in the second quarter 24, you're expecting to see that traditional Northern European industrial chemical demand ramp up. I know you also already knows. I know you also mentioned you've already seen us start a sharp rebound to start 2024. But you know, aside from that, is there any more color on why you expect that rebound? And maybe just talk about the visibility you have on that trend in terms of the destocking headwinds of that phone?

謝謝，Nan 和非營運收益也轉向工業化學品領域，你知道，所以去庫存是第四季度的逆風，但你在新聞稿中提到，你知道在第二季度 24 ，你預計北歐傳統工業化學品需求將增加。我知道你也已經知道了。我知道您也提到您已經看到我們在 2024 年開始大幅反彈。但你知道，除此之外，還有什麼其他原因可以解釋為什麼你會預期會出現反彈嗎？也許只是談談您對該手機去庫存逆風的趨勢的了解？

Yes. So last year's we'd mentioned was was an historical high for our Industrial Chemicals business. I think we said it grew 18% year on year, our highest revenue and EBITDA numbers. We have seen in that in that business. But we did we did see some year-end destocking as customers kind of rebalanced their purchases that they had made with year-end targets to a higher level than probably we have seen in past years. But we're very pleased to see that the start of the year reverse that trend quite sharply. And the order flow has been has been very consistent in the upward direction. And as Leo said, we expect our Q2 be very much in line with the expectations, but we're also seeing, again, continued offshore completion fluids activity churn, and it's a little lumpier, obviously, than our industrial chemicals business. So we can see more fluctuations quarter by quarter, but we expect the first half of 2024 in our completion services business to be above the first half of 2023 at a double-digit pace. And combined with our Industrial Chemicals scale, it gives us a strong first half of the year outlook.

是的。所以去年我們提到的是我們工業化學品業務的歷史高點。我想我們說過它同比增長了 18%，這是我們最高的收入和 EBITDA 數字。我們已經在該行業中看到了這一點。但我們確實看到了一些年終去庫存，因為客戶重新平衡了他們的購買量，年終目標達到了比我們過去幾年可能看到的更高的水平。但我們很高興看到今年年初急劇扭轉了這一趨勢。而且訂單流一直非常一致地向上。正如 Leo 所說，我們預期第二季的業績與預期非常一致，但我們也再次看到海上完井液活動的持續波動，而且顯然比我們的工業化學品業務稍微不穩定。因此，我們可以看到每個季度都會有更多的波動，但我們預計 2024 年上半年我們的完井服務業務將以兩位數的速度高於 2023 年上半年。結合我們的工業化學品規模，我們對今年上半年的前景充滿信心。

Okay.

好的。

And just so first First Half 24 for completion fluids above first half 23 at a double digit pace. Did I hear that correctly?

同樣，上半場 24 場比賽的完成速度超過上半場 23 場，速度達到兩位數。我沒聽錯嗎？

That's correct.

這是正確的。

Okay.

好的。

And then last one for me, Alex. And sticking with the completion fluids business, you know it.

最後一個是我的，亞歷克斯。堅持完井液業務，你知道的。

Yes, highest revenue, highest EBITDA since I think it's I think you've mentioned since 2015 when there was when you guys completed two large CS Neptune projects in the Gulf of Mexico. Could you maybe just remind us how many CS Neptune projects you did in <unk> 2023? And maybe just give some directional color on where that goes in 2024 that you mentioned already the RD oh one in the North Sea and then talking to two super majors in the Gulf of Mexico but maybe just frame that up.

是的，最高的收入，最高的 EBITDA，因為我想你們自 2015 年以來就提到過，當時你們在墨西哥灣完成了兩個大型 CS Neptune 專案。您能否提醒我們您在 2023 年完成了多少個 CS Neptune 專案？也許只是對 2024 年的發展方向給出一些方向性的說明，您已經提到了北海的 RD，然後與墨西哥灣的兩個超級專業進行了交談，但也許只是將其框架化。

Yes, sure. So so the the Neptune jobs, some we did have some jobs in the North Sea, but they are typically smaller volume jobs and sometimes it's difficult to actually you'll see see the impact of those jobs from the North Sea perspective relative to on a normal large calcium bromide job, for instance, in the Gulf of Mexico. So but we're very pleased with the trend that we're seeing in terms of our outside of the Gulf of Mexico, Neptune, it's just that they're typical typically smaller jobs than what we see in the Gulf of Mexico. The jobs in the next in the Gulf of Mexico are just are just really quite different just due to the volume of the fluid, the jobs that we referenced in 2015, I think they were on the order of $15 million to 20 million apiece type types of jobs. Those are the types of jobs that we have in the Gulf of Mexico. We've had we don't know what the jobs that we're currently in discussions with will be of that size or magnitude because we're still in early discussions with those customers, but it just gives you a sense of the types of size and scale of those jobs versus versus the North Sea. But we're just we're just very pleased to see the traction we're getting with the technology and we know that the activity will will follow over the years.

是的，當然。因此，海王星工作，我們確實在北海有一些工作，但它們通常是規模較小的工作，有時很難真正從北海的角度看到這些工作相對於其他工作的影響。正常的大型溴化鈣作業，例如在墨西哥灣。因此，我們對在墨西哥灣海王星以外看到的趨勢感到非常滿意，只是它們的工作量通常比我們在墨西哥灣看到的要小。墨西哥灣的下一個工作崗位只是由於流體量的不同而非常不同，我們在 2015 年提到的工作崗位，我認為每種類型的工作崗位價值約為 1500 萬至 2000 萬美元的工作機會。這些就是我們在墨西哥灣擁有的工作類型。我們不知道我們目前正在討論的工作將會有什麼樣的規模或規模，因為我們仍在與這些客戶進行早期討論，但這只是讓您了解工作的類型這些工作的規模和規模與北海相比。但我們只是非常高興地看到我們對這項技術的關注，並且我們知道這項活動將持續多年。

Todd and I appreciate and premium look hard on looking forward to hosting you guys not before.

托德和我很感激並非常期待接待你們。

Yes.

是的。

Thank you, Bobby, very much. Look forward to it as well. Often a journey with you.

非常感謝你，鮑比。也敬請期待吧。常常和你一起旅行。

Your next question comes from Kurt Hallead with Benchmark. Please go ahead.

您的下一個問題來自 Benchmark 的 Kurt Hallad。請繼續。

Very glorious.

非常光榮。

Morning.

早晨。

I appreciate all that detail and info on. So just the legal view, you gave us some indications here that the first quarter may start off a little bit light, particularly in the Water & Flowback part of your business. But as you look out for the rest of the year and you kind of look at where I guess the consensus EBITDA numbers out there at $120 million plus side, you have you have good line of sight as to the progression that you feel confident that you can get to at least under $20 million in EBITDA for the year?

我很欣賞所有這些細節和訊息。因此，僅從法律角度來看，您在這裡向我們提供了一些跡象，表明第一季的開局可能會有點輕鬆，特別是在您業務的水和回流部分。但當你展望今年剩下的時間時，你會看到我猜一致的 EBITDA 數字在 1.2 億美元以上，你對進展有很好的視野，你對自己有信心今年的EBITDA 至少能低於2000 萬美元嗎？

Yes. I won't comment on the actual full year number because six months down the road is a long way down the road. I did say earlier that the combination of electrolyte sales into the stationary stationary battery market plus the desalination and the deepwater activity, especially the projects that Brady made reference to and give us confidence that 2024 is going to be stronger than 2023 for U.S. Pipe.

是的。我不會評論全年的實際數字，因為六個月的時間還有很長的路要走。我之前確實說過，固定式電池市場的電解液銷售加上海水淡化和深水活動，特別是 Brady 提到的項目，讓我們有信心 2024 年 U.S. Pipe 的業績將強於 2023 年。

Tom, so you are kind of curious in the context of your report that you had here on the lithium front that indicated that it has resource potential was three times your prior report? And just kind of what can you put that into context for us in the dynamic of how does that alter how much you think you might have to invest to ramp up production or get your facility going? And is it is it significantly larger in the context that's going to require more capital?

湯姆，所以你對你在鋰方面的報告感到好奇，該報告表明它的資源潛力是你之前報告的三倍？您可以為我們介紹一下這會如何改變您認為可能需要投資多少來提高產量或讓您的設施運作嗎？在需要更多資本的背景下，它的規模是否明顯較大？

So Bob, I'll speak to the resource and then touch on the capital and the fleet wants to add any more. So if you recall initially, Kurt, we had applied to the Arkansas Oil & Gas. So we're preparing to apply for the Arkansas Oil and Gas for our own acreage that Tetra had held as of, I think, between 45 hundred and 5,000 acres that we had applied for a unit and right before that our partnership evolved with ExxonMobil and we decided to combine acreage or a larger unit right now, that unit is the Evergreen unit with 61 hundred and 38 acres. And so there was an expansion of the original lithium in place, but also more importantly, the lithium concentrations after we completed the Evergreen number one well was well above expectations in terms of the concentration and then the reservoir rock quality turned out to be exceptional as well. So all those all those factors combined when you look at the resource report for lithium today versus what it was initially when we did our inferred study a couple of years ago was nearly three times the volume and obviously volume of lithium translates into how much Brian has to be processed, which also translates into financials. So again, we're quite encouraged by by what we see in terms of the capital that's still under evaluation. We don't have a firm number to be able to provide yet. That's part of the feed analysis. That's that's ongoing. But again, we think the synergies of having a bromine plant and a lithium plant on-site managed by one partnership is going to show some very attractive financials on both side of the equation there.

所以鮑勃，我將談談資源，然後談談資本和艦隊想要增加更多。所以，如果你還記得，庫爾特，我們最初申請的是阿肯色石油和天然氣公司。因此，我們正準備申請阿肯色石油和天然氣公司自己的土地，我認為，Tetra 已經擁有4500 到5,000 英畝的土地，我們已經申請了一個單位，就在我們與埃克森美孚和埃克森美孚的合作在關係發展之前。我們現在決定合併面積或更大的單位，該單位是長青單位，面積為 6100 38 英畝。因此，原始鋰的含量有所增加，但更重要的是，我們完成 Evergreen 一號井後的鋰濃度遠高於預期的濃度，然後儲層岩石質量變得異常出色，出色地。因此，當你查看今天的鋰資源報告時，所有這些因素綜合起來，與我們幾年前進行推斷研究時最初的情況相比，幾乎是其體積的三倍，顯然鋰的體積轉化為布萊恩擁有多少進行處理，也轉化為財務數據。同樣，我們對仍在評估中的資本所看到的情況感到非常鼓舞。我們還沒有能夠提供的確切數字。這是 Feed 分析的一部分。這就是正在進行中的。但我們再次認為，由一個合作夥伴在現場管理一座溴廠和一座鋰廠的協同效應將在等式兩邊展現出一些非常有吸引力的財務狀況。

And Kurt, I'll add that the upstream work, the work they were doing with the source wells and disposal wells and the pipelines to move the brine from the wells to and from the processing facility, iShared So pulling brine is going to feed both the lithium and bromine projects and also creating significant synergies on the upstream side that catch up that mine on again, focusing on the emerging growth opportunities you have again on lithium desalinization flash producers, you're flying those electrolytes into the battery energy storage system, right? Looks like you have some revenue opportunities on the battery storage front coming got this year yet in detail revenue opportunity starting this year.

庫爾特，我要補充一點，上游工作，他們在源井和處置井以及將鹽水從井中移入和移出加工設施的管道方面所做的工作，iShared 因此，拉出鹽水將供給兩者鋰和溴項目，並在上游方面創造顯著的協同效應，再次趕上該礦，重點關注鋰脫鹽閃蒸生產商再次出現的新興增長機會，你將這些電解質注入電池儲能係統，正確的？看起來今年你在電池儲存方面有一些收入機會，但從今年開始有詳細的收入機會。

So what do you what do you think the I think first revenue could be for for lithium first first, revenue for lithium is more likely a early 2027, late 2026 or early 2027 at this point.

那麼你覺得呢？我認為第一個收入可能首先來自鋰，目前鋰的收入更有可能是在 2027 年初、2026 年底或 2027 年初。

Okay, got you.

好的，明白了。

Thank you.

謝謝。

Your next question comes from Patrick will lead people. Please go ahead.

你的下一個問題來自帕特里克將領導人們。請繼續。

Hey, good morning. It's Pat on for Steve and Jerry, thanks for taking the questions. 40, you want to go out and good morning. Given the US land outlook right now, do you think you can grow the water business faster than activity? And then on the margin side, during 2023, you have strong margin regression in the water business. Obviously Q4 dropped off a bit. Just curious how you could think about this as a high 10s margin business going forward or more around the level seen in the fourth quarter?

嗨，早安。感謝史蒂夫和傑瑞提出問題。 40、你想出去，早安。考慮到目前美國的土地前景，您認為水務業務的成長速度能夠快於活動的成長速度嗎？然後在利潤方面，2023 年，水務業務的利潤率將大幅回歸。顯然第四季有所下降。只是好奇您如何將其視為未來 10 多倍利潤率的業務，或者更多接近第四季度的水平？

Yes. Well, I'll take that and ask Leo to add some color. So if you look at our business, as had mentioned, relative to rig count, we exceeded our revenue in 2023 over 2018, which was our previous high by 12% on 50% less rig count. So that shows on an ability to continue to grow in a period of declining completion activity. And a lot of that has to do with the technology that we've deployed that Sandstorm has gained significant market share continues to gain market share in North America. So that continues to be a growth catalyst for us, but also focus on produce drought and water weather rather than the basic water transfer type services, which is more of a completion related activity. Clearly, we won't get the benefit of the significant benefit of the desal project in 2024, but we do still do expect growth in our Water & Flowback segment in 24 over 2023. And then hopefully as things progress with our desal, we would see a step change in desalination revenue in 2025.

是的。好吧，我會接受並請 Leo 添加一些顏色。因此，如果你看看我們的業務，正如前面提到的，相對於鑽機數量，我們 2023 年的收入比 2018 年超出了我們之前的高點 12%，鑽機數量減少了 50%。因此，這表明了在完成活動下降的時期繼續增長的能力。這在很大程度上與我們部署的技術有關，Sandstorm 獲得了顯著的市場份額，並繼續在北美獲得市場份額。因此，這仍然是我們的成長催化劑，但也專注於生產乾旱和水天氣，而不是基本的調水類型服務，這更多的是與完成相關的活動。顯然，我們不會在 2024 年從海水淡化項目的顯著效益中受益，但我們仍然預計 2023 年水和回流業務領域將在 24 年內實現成長。希望隨著海水淡化工作的進展，我們將在 2025 年看到海水淡化收入發生重大變化。

And Pat, I'll add on the margin to your question on the margins. We have spent quite a bit of time on automation and reducing the number of personnel at the Web at the well site. We've also focused aggressively on introducing technology that we believe create some barriers to entry against some of our local and regional competitors such as with the Sandstorm technology.

帕特，我將在頁邊空白處添加您的問題。我們在自動化和減少井場網路人員數量上花費了相當多的時間。我們也積極致力於引進一些技術，我們認為這些技術會對我們的一些本地和區域競爭對手造成一定的進入壁壘，例如 Sandstorm 技術。

And just to give you a sense of a couple of weeks ago, I was out in the Permian Basin and we had one of the largest produced water treatment jobs going on. And we're operating that with one person on-site and the amount of revenue that we're generating relative to the amount of personnel that we have today versus what we had several years ago is a step change. The combination of those is what we think will make this a EBITDA margin business. It will be high. Thanks.

只是為了讓您了解幾週前，我在二疊紀盆地，我們正在進行最大的採出水處理工作之一。我們由一個人在現場進行操作，我們所產生的收入相對於我們今天擁有的人員數量與幾年前的情況相比是一個階躍變化。我們認為，這些因素的結合將使該業務成為 EBITDA 利潤率業務。會很高。謝謝。

All right. Thanks, both you. That's helpful. And this relates to an earlier question. So apologies if you had explicitly laid this out, I was just struggling to make out what you were saying as we think about the global deepwater market, you'd noted that revenue attributable offshore projects increased 11% year over year and expectations for continued expansion. Just curious, can the completions business deliver mid-teens growth in 2024 similar to that of 2023 as we go?

好的。謝謝，你們倆。這很有幫助。這與之前的一個問題有關。因此，如果您明確闡述了這一點，我很抱歉，當我們思考全球深水市場時，我只是很難理解您所說的內容，您注意到海上項目的收入同比增長了11％，並且對持續擴張的預期。只是好奇，竣工業務能否在 2024 年實現與 2023 年類似的十幾歲左右的增長？

Yes, we believe that it can Brady mentioned some Neptune opportunities. We only saw a handful of smaller opportunities in the North Sea. The opportunities that we're engaged with customers on are now in the Gulf of Mexico. And because of the depth and the volume fluid that those projects take that can be a significant contributor. Also, a lot of the new rigs that are being introduced that are coming online in the Gulf of Mexico are per customers that we've got the contracts in place with. So we think the combination of those we'll allow a double digit growth year over year on the completion fluids side.

是的，我們相信布雷迪可以提到一些海王星的機會。我們在北海只看到了一些較小的機會。我們與客戶合作的機會現在位於墨西哥灣。由於這些項目所採用的深度和流體體積，這可能是重要的貢獻者。此外，在墨西哥灣上線的許多新鑽井平台都是按照我們已簽訂合約的客戶提供的。因此，我們認為，將這些因素結合起來，我們將使完井液方面實現兩位數的同比增長。

Great.

偉大的。

Thanks for the color.

謝謝你的顏色。

Again, if you have a question, please press star then one.

再次強調，如果您有疑問，請先按星號，然後再按一個。

Your next question comes from Tim Moore with EF. Hutton. Please go ahead.

您的下一個問題來自 EF 的 Tim Moore。赫頓。請繼續。

Thanks, and congratulations on the overall 2023 organic sales growth and EBITDA margin expansion. It's really nice to see the free cash flow to. And I'm glad I thought versus helping out with that.

謝謝，並祝賀 2023 年整體有機銷售成長和 EBITDA 利潤率擴張。很高興看到自由現金流。我很高興我沒有幫忙解決這個問題。

Most of my questions have already been asked, but maybe let me just start off with their completion sales. It seems like double-digit growth is possible this year, depending on the Gulf of Mexico to Neptune project to the falls in the December quarter or not.

我的大部分問題已經被問到了，但也許讓我從他們的完工銷售開始。今年似乎有可能實現兩位數的成長，這取決於墨西哥灣到海王星對 12 月季度的下降的預測。

But just switching gears back to Water & Flowback sales growth this year I know Brady has just mentioned the expectation is that will grow. Do you think it could be mid-single digit growth? And is that dependent on kind of the earlier comments?

但今年，只要把話題轉向「水和回流」銷售成長，我知道布雷迪剛剛提到，預計這一數字將會成長。您認為可能會實現中個位數成長嗎？這是否取決於先前的評論？

Brady, mentioned about you're reallocating some growth CapEx to Arkansas and desalination, so that even if it is mid single digit growth this year, so the opportunity of Invigorate, if you reinvested more than have those other projects?

布雷迪提到，您正在將一些成長資本支出重新分配給阿肯色州和海水淡化，因此，即使今年的成長是中等個位數，那麼如果您的再投資比其他項目多，那麼Invigorate 的機會是什麼呢？

Yes. So I think strategically, we will continue to invest in automation technology and selective Sandstorm customers where we're getting the pricing, the premium pricing that that we want. So we are focused more on returns.

是的。因此，我認為從策略上講，我們將繼續投資自動化技術和選擇性的 Sandstorm 客戶，在那裡我們可以獲得我們想要的定價、溢價。所以我們更注重回報。

As far as your question, can we achieve single mid digit growth? Yes, we feel that's achievable in 2024. But again, we're really more focused on returns and margin enhancement with that business. We could grow more, but that's a strategic decision that we're taking at this point to use the free cash flow that we have discussed for what we think will be longer term, a much higher return and growth businesses for us.

至於你的問題，我們能否實現個位數成長？是的，我們認為這在 2024 年是可以實現的。但同樣，我們確實更關注該業務的回報和利潤率提高。我們可以成長更多，但這是我們目前採取的策略決策，利用我們已經討論過的自由現金流來實現我們認為的長期、更高回報和成長的業務。

That makes sense. Pretty I love the ROI aspect in the self-help.

這就說得通了。不錯，我喜歡自助的投資報酬率方面。

Yes, I enjoyed seeing all the sandstones when I was down in the Permian a year-and-a-half ago on-site. But I'm actually just switching gears to my favorite topic. They've been publishing on for maybe 15 months, the desalination at produced water opportunity. They've been putting an EBITDA estimate out there for it for over a year. But I'm I know that's more second half loaded and of what about the progress being made maybe with the railroad commission and the commission environmental quality, they have this established the purity levels of the TDS. I mean, I know you have the 92% desalination level of risk, but on top of it, zoned in and finalize the purity level TDS. hurdle?

是的，一年半前我在二疊紀現場時，我很高興看到所有的砂岩。但實際上我只是把話題轉向我最喜歡的話題。他們已經發布了大約 15 個月的關於採出水淡化機會的文章。一年多來，他們一直在對其 EBITDA 進行估算。但我知道這更多是下半年的事情，鐵路委員會和環境品質委員會可能取得了哪些進展，他們已經確定了 TDS 的純度水平。我的意思是，我知道您有 92% 的海水淡化風險，但除此之外，還要分割並最終確定 TDS 純度等級。欄？

Yes, so great question. I mean, I think with the more recent or earthquake activity and what they've been looking at this now for several years, but that I think I get working with these agencies, the sense of urgency has really ratcheted up. And I thought overall, TDS, we're well below the overall TDS level. Now we're into very discrete parts for millions of certain minerals on organics, those types of things. And we're working to understand the final regulatory requirements for each of those applications is going to have a different appetite, I think does different levels for industrial applications, different levels for farming. You've got very discrete now beneficial reuse applications that are being defined and the agencies are working with the operators and companies like ourselves who have the technology to help get those specifications. So it has become a very collaborative process more so than I've ever seen, certainly within the last six months, we've had several meetings with a New Mexico produced water consortium, for instance, the Railroad Commission and our customers to really nail down these these requirements on companies coming together quite rapidly at this point.

是的，很好的問題。我的意思是，我認為隨著最近的地震活動以及他們幾年來一直在關注這個問題，但我認為我正在與這些機構合作，緊迫感確實增強了。我認為總體而言，TDS，我們遠低於整體 TDS 水準。現在我們正在研究有機物中數百萬種特定礦物質的非常離散的部分，這些類型的東西。我們正在努力了解每種應用的最終監管要求將有不同的需求，我認為工業應用有不同的水平，農業有不同的水平。現在已經定義了非常離散的有益的重用應用程序，並且各機構正在與像我們這樣擁有技術來幫助獲得這些規範的運營商和公司合作。因此，它已經成為一個非常協作的過程，比我所見過的更加協作，當然在過去六個月內，我們與新墨西哥州的產水財團（例如鐵路委員會）和我們的客戶舉行了幾次會議，以真正解決問題來降低這些對公司的要求，在這一點上很快就會聚集在一起。

Great.

偉大的。

That's really helpful. I'm very excited about that, given I was on-site. And so what you can do with the pretreatment a year-and-a-half ago. But my last question is around the business. I think investors really aren't giving you any credit for and it's awfully stable if not growing quite nicely.

這真的很有幫助。鑑於我當時就在現場，我對此感到非常興奮。那麼一年半前的預處理可以做什麼呢？但我的最後一個問題是關於業務的。我認為投資者確實沒有給你任何信任，即使成長不是很好，它也非常穩定。

The industrial calcium chloride business, another banner year last year, I think you said it was up 18% yet. A little bit of that was lapping that that supply chain raw material impact in Finland from the UK and the year before but even when you strip that out and it's still double digits on, is there anything else you're doing now with the supply agreements and need to really keep that up? And it's something that almost like 30-year EBITDA. So I'm just love to hear a bit more about that business.

工業氯化鈣業務去年又是一個輝煌的一年，我想你說過它已經成長了 18%。其中一點是來自英國和前一年對芬蘭供應鏈原材料的影響，但即使你把它去掉，它仍然是兩位數，你現在在供應協議方面還有什麼其他的事情嗎？並且需要真正保持下去嗎？這幾乎相當於 30 年的 EBITDA。所以我很想聽到更多有關該業務的信息。

Yes, that business is running very, very well for us. A combination of good solid management teams that we have great infrastructure that we have in place, but also finding new markets. As I mentioned, we penetrated two new markets in 2023 that were not significant, but they have significant growth potential for the calcium chloride usage in the lithium processing in Latin America continues to have some traction, although lithium, obviously right now, pricing wise is down, but we still see a longer-term view, very positive, very constructive for lithium, and we see a role for calcium chloride with those operations.

是的，我們的業務運作得非常非常好。良好而堅實的管理團隊的結合，我們擁有良好的基礎設施，也尋找新的市場。正如我所提到的，我們在2023 年滲透了兩個並不重要的新市場，但它們具有巨大的成長潛力，因為拉丁美洲鋰加工中氯化鈣的使用仍然具有一定的吸引力，儘管鋰目前顯然定價明智下降，但我們仍然看到更長期的觀點，對鋰非常積極、非常有建設性，並且我們看到氯化鈣在這些業務中的作用。

And then the other one is chip manufacturing here in the United States. I'm not sure we fully appreciated until a lot of these chip manufacturers started coming online. They use a very high purity water in their process. They actually have to recount Safi or actually remember allies that water before it can be put back into various applications. And that's a great opportunity for us on our calcium chloride business as well. So a very well run business for us right now and some new market opportunities that we think has some high-growth potential prepayments that business over the time from investors, but I'm thankful and I hoping you catch up on sleeping have awfully busy here and Alberta and Exxon's.

另一個是美國的晶片製造。我不確定我們是否完全理解，直到許多晶片製造商開始上線。他們在加工過程中使用非常高純度的水。他們實際上必須重新敘述薩菲，或者實際上記住盟友，水才能重新投入各種應用中。這對我們的氯化鈣業務也是一個很好的機會。因此，現在對我們來說是一項運作良好的業務，我們認為一些新的市場機會具有一些高成長潛力的預付款，隨著時間的推移，這些業務可以從投資者那裡獲得，但我很感激，我希望你能趕上睡覺的時間，在這裡非常忙碌以及艾伯塔省和埃克森美孚。

I think we'll hopefully get read soon after the trip Thanks.

我想我們希望旅行結束後很快就會被閱讀，謝謝。

Thanks, Tim.

謝謝，蒂姆。

This concludes our question and answer session. I would now like to turn the conference back over to Mr. Murphy for any closing remarks.

我們的問答環節到此結束。我現在想把會議轉回給墨菲先生做閉幕詞。

We'll go and thank you very much, and we're very proud and pleased with what we accomplished in 2023 are we have a fantastic employee base management team and great strategic partnerships that we're very excited about with our our current business performing extremely well and a great outlook going forward. So thank you for listening, and thank you for your interest.

我們會非常感謝你們，我們對 2023 年所取得的成就感到非常自豪和高興，我們擁有出色的員工基礎管理團隊和良好的戰略合作夥伴關係，我們對我們當前的業務表現感到非常興奮非常好，未來前景廣闊。感謝您的聆聽，也感謝您的關注。

This concludes the conference call.

電話會議到此結束。

For today. You may now disconnect.

今天。您現在可以斷開連線。

Okay.

好的。

Yes.

是的。