Tetra Technologies Inc (TTI) 2024 Q2 法說會逐字稿

Good morning, and welcome to TETRA Technologies second-quarter 2024 results conference call. (Operator Instructions) Please note that this event is being recorded.

早安，歡迎參加 TETRA Technologies 2024 年第二季業績電話會議。（操作員說明）請注意，該事件正在被記錄。

I will now turn the conference over to Julian Higuera. Please go ahead.

我現在將會議交給朱利安·伊格拉。請繼續。

Good morning and thank you for joining TETRA's second-quarter 2024 results call. The speakers for today's call are Brady Murphy, Chief Executive Officer; and Elijio Serrano, Chief Financial Officer.

早安，感謝您參加 TETRA 2024 年第二季業績電話會議。今天電話會議的發言人是執行長布雷迪墨菲 (Brady Murphy)；塞拉諾 (Elijio Serrano)，財務長。

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. These 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 are 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.

我想提醒您，本次電話會議可能包含前瞻性陳述或可能被視為前瞻性陳述，包括預測、財務指導、獲利能力和預期收益。這些陳述是基於 TETRA 所做的某些假設和分析，並基於多個因素。這些陳述受到多種風險和不確定性的影響，其中許多風險和不確定性超出了公司的控制範圍。請注意，此類陳述並不能保證未來業績，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 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. These reconciliations are not a substitute for financial information prepared in accordance with GAAP and should be considered within the context of a complete financial results for the period.

此外，在電話會議過程中，我們可能會參考 EBITDA、調整後 EBITDA、調整後 EBITDA 利潤率、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，以了解非公認會計準則財務指標與最接近的公認會計準則財務指標的調節表。這些調節表不能取代根據公認會計原則準備的財務信息，應在該期間完整的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-Q that we also filed yesterday.

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-Q。

I will now turn it over to Brady.

我現在將把它交給布雷迪。

Thanks, Julian. Good morning, everyone, and welcome to TETRA's second-quarter 2024 earnings call.

謝謝，朱利安。大家早安，歡迎參加 TETRA 2024 年第二季財報電話會議。

I'll summarize some highlights from our second-quarter results and provide an update on our strategic initiatives before turning the call over to Elijio to discuss second-quarter financials and additional perspectives on our third quarter.

我將總結第二季度業績的一些亮點，並提供有關我們戰略舉措的最新信息，然後再將電話轉給 Elijio，討論第二季度的財務狀況和對第三季度的其他看法。

Our second-quarter results can be characterized as mostly consistent with the overall trending oil and gas markets during the second quarter, which was lower US completion activity with increasing activity in the international offshore market. This combined with our seasonal second-quarter peak for our European industrial chemicals business and lower deepwater project activity in the Gulf of Mexico contributed to our results of 14% sequential revenue growth and 32% increased adjusted EBITDA.

我們第二季的業績可以說與第二季石油和天然氣市場的整體趨勢基本一致，即美國完井活動減少，而國際離岸市場活動增加。再加上歐洲工業化學品業務第二季度的季節性高峰以及墨西哥灣深水項目活動的減少，導致我們的收入環比增長 14%，調整後 EBITDA 增長 32%。

Our completion fluids and products and water and flowback segments achieved adjusted EBITDA margins of 28.9% and 15.2%, respectively. Water and flowback adjusted EBITDA margins of 15.2% was an anticipated rebound from 9.6% in the first quarter, a sequential improvement of 560 basis points. Year-over-year, revenue was down 2% compared to US onshore rig activity down approximately 16%. Adjusted EBITDA of $30.2 million was 17.6% of total revenue and inclusive of $1.1 million of foreign exchange losses.

我們的完井液和產品以及水和返排業務部門的調整後 EBITDA 利潤率分別為 28.9% 和 15.2%。水和回流調整後的 EBITDA 利潤率為 15.2%，預計將較第一季的 9.6% 反彈，季增 560 個基點。與去年同期相比，收入下降了 2%，而美國陸上鑽機活動下降了約 16%。調整後 EBITDA 為 3,020 萬美元，佔總收入的 17.6%，其中包括 110 萬美元的外匯損失。

During the second quarter, we secured a three-well deepwater Gulf of Mexico CS Neptune fluids project for a super major oil and gas operator. This is an important milestone as this is the second super major operator in the Gulf of Mexico to select CS Neptune for their completions program and the first Gulf of Mexico deepwater CS Neptune fluids project since the fourth quarter of 2019.

第二季度，我們為一家超級大型油氣業者獲得了墨西哥灣三井深水CS Neptune流體專案。這是一個重要的里程碑，因為這是墨西哥灣第二家選擇 CS Neptune 進行完井計畫的超級大型營運商，也是自 2019 年第四季以來第一個墨西哥灣深水 CS Neptune 流體計畫。

Following a dramatic impact to the timing of potential CS Neptune deepwater projects due to the COVID pandemic in 2020 and 2021, we have since seen our pipeline of projects move forward and are pleased we have been successful, awarded this project. The first well is not expected to begin the completion phase until the fourth quarter of this year and the timing of the entire project is expected to be between Q4 2024 and the second quarter of 2025.

由於 2020 年和 2021 年的新冠疫情大流行，對潛在的 CS Neptune 深水專案的時間表產生了巨大影響，此後我們看到我們的專案不斷向前推進，我們很高興能夠成功並獲得該專案。第一口井預計要到今年第四季才會開始完成階段，整個專案的時間預計在 2024 年第四季至 2025 年第二季之間。

Unlike our prior CS Neptune fluid Gulf of Mexico projects, which were single wells spread out across several years, this program is a three-well batch, drill, and complete program with the completion phase expected to start in the fourth quarter. As a result, it is likely that the three wells will be completed between a six to nine month period, assuming things go as planned.

與我們之前的墨西哥灣CS Neptune流體項目不同的是，該項目是一個三井批量、鑽探和完整項目，預計將於第四季度開始完成階段。因此，假設一切按計劃進行，這三口井可能會在六到九個月內完成。

As demonstrated from the past, CS Neptune Gulf of Mexico projects, these wells represent a material revenue increase over our typical deepwater completions. Because of the back-to-back batch completion program, there is some efficiency on the inventory side planned for the project, but the overall project revenue numbers will also be very dependent on the fluid losses from each well. Obviously, we are excited for this award and we continue to have productive discussions with other operators for CS Neptune programs in the Gulf of Mexico.

正如過去的 CS Neptune 墨西哥灣計畫所證明的那樣，這些井比我們典型的深水完井計畫帶來了實質的收入成長。由於連續批量完井計劃，該項目計劃的庫存方面有一定的效率，但項目總體收入也將非常依賴每口井的流體損失。顯然，我們對這個獎項感到很興奮，並且我們將繼續與其他營運商就墨西哥灣的 CS Neptune 專案進行富有成效的討論。

For water and flowback, we previously announced that we expected second-quarter margins to recover in the mid-teens, and despite lower operator completion activity levels in the second quarter, we are pleased we achieved adjusted EBITDA margins of 15.2%, a 560-basis-point sequential improvement. Our strategy for water and flowback continues to be a two-pronged approach. Automation of every service aspect from BlueLinx automated movement and transfer of water to the Automated SandStorm and automated drillout systems. And secondly, the treatment of operator-produced water for frack reuse and desalination for beneficial reuse.

對於水和回流，我們之前宣布，我們預計第二季度的利潤率將在十幾歲左右恢復，儘管第二季度運營商完成活動水平較低，但我們很高興我們實現了15.2% 的調整後EBITDA利潤率，即560-基點連續改善。我們的水和回流策略仍然是雙管齊下的。從 BlueLinx 自動移動和輸水到自動 SandStorm 和自動鑽井系統，每個服務方面都自動化。其次，對營運商生產的水進行處理，以實現壓裂再利用和海水淡化，以實現有益的再利用。

Collectively, these strategies will reduce HSE exposure for our employees and our customers, lower labor costs per job, and provide an environmental benefit of less freshwater usage while reducing seismicity risk and providing a valuable water resource for agriculture and industrial applications. While this strategy is well underway with BlueLinx and water transfer, the number of automated systems deployed for SandStorm and auto drillout is only just beginning, but so far with exceptional results and customer acceptance.

總的來說，這些策略將減少我們的員工和客戶的HSE 暴露，降低每項工作的勞動力成本，並透過減少淡水使用帶來環境效益，同時降低地震風險，並為農業和工業應用提供寶貴的水資源。雖然這項策略在 BlueLinx 和輸水方面正在順利實施，但為 SandStorm 和自動鑽孔部署的自動化系統的數量才剛開始，但迄今為止取得了出色的成果和客戶認可度。

We're also deploying our first SandStorm to the Middle East market for a major national oil customer. If a successful trial is completed as anticipated, this could be a major new market opportunity for the company.

我們也在中東市場為一家主要的國家石油客戶部署了我們的第一個 SandStorm。如果試驗按預期成功完成，這可能是該公司的重大新市場機會。

With regards to water desalination and beneficial reuse, I would like to provide some color on where we are. We previously communicated that a South Texas commercial production facility was imminent. Unexpectedly, our customer was told that the permitting would be on hold and linked to results from a West Texas pilot program where urgency for a solution is a bigger priority. This is highlighted by the most recent earthquakes to hit West Texas, the largest of which hit 5.1 on the Richter scale and prompted the Texas Railroad Commission to open investigation.

關於海水淡化和有益的再利用，我想提供一些關於我們所處情況的資訊。我們之前曾表示，南德州的商業生產設施即將建成。出乎意料的是，我們的客戶被告知，許可證將被擱置，並與西德克薩斯州試點計劃的結果掛鉤，其中解決方案的緊迫性是更重要的優先事項。最近發生在西德克薩斯州的地震凸顯了這一點，其中最大的地震達到里氏 5.1 級，促使德克薩斯鐵路委員會展開調查。

Accordingly, we are working closely with our customer on the commercial terms for a beneficial reuse pilot project in the Permian Basin. In addition, we have ongoing discussions with three other major customers for pilot projects that in addition to West Texas and South Texas, include Mid-Continent and Appalachia regions. We currently have non-disclosure agreements with seven customers and have had many of them visiting our functioning pilot units at our research facility in Conroe, Texas.

因此，我們正與客戶就商業條款密切合作，在二疊紀盆地進行有益的再利用試點計畫。此外，我們正在與其他三個主要客戶就試點計畫進行討論，這些計畫除了西德克薩斯州和南德克薩斯州外，還包括中大陸和阿巴拉契亞地區。目前，我們與七家客戶簽訂了保密協議，其中許多客戶參觀了我們位於德克薩斯州康羅的研究設施中正在運行的試點單位。

While the delay of the launch of our first commercial project was unexpected, we realize our customers have to work with the regulatory bodies and focus on areas with the biggest impact to the environmental challenges the industry faces. We have demonstrated that our technology is able to treat oil and gas well produced water to the regulatory environmental specifications required and oftentimes to be of higher quality than what is found in rivers and in water wells with the ability to scale for commercial applications.

雖然我們的第一個商業專案的延遲啟動是出乎意料的，但我們意識到我們的客戶必須與監管機構合作，並專注於對產業面臨的環境挑戰影響最大的領域。我們已經證明，我們的技術能夠按照所需的監管環境規範處理石油和天然氣井產出水，並且通常比河流和水井中的水質量更高，並且能夠擴展用於商業應用。

Since utilizing operator oil and gas well produced water for agricultural purposes has been occurring in California for several years, we are optimistic that Texas and New Mexico will soon follow suit.

由於加州多年來一直將營運商石油和天然氣井產出的水用於農業目的，因此我們樂觀地認為德州和新墨西哥州很快也會跟進。

Moving on to our strategic initiatives, following our very recent visit with the Eos Executive Management to their plant in Turtle Creek, Pittsburgh, we are confident Eos is on the verge of materially higher production volumes requiring materially higher volumes for their electrolyte. Elijio and I were very encouraged with what we saw firsthand with their automated line and the excitement of their employees working to automate the line from start to finish. Eos recently completed a recapitalization that allowed them to source the capital to complete the first line and have the working capital required.

繼續我們的策略舉措，繼我們最近與 Eos 執行管理層參觀了他們位於匹茲堡 Turtle Creek 的工廠之後，我們相信 Eos 即將大幅提高產量，需要大幅提高電解液的產量。Elijio 和我對他們的自動化生產線的親眼所見以及他們的員工從頭到尾致力於自動化生產線的興奮感到非常鼓舞。Eos 最近完成了資本重組，使他們能夠籌集資金來完成第一條生產線並擁有所需的營運資金。

Seeing the automated line working at Eos facility is a vast improvement from what we have seen in our prior visits. As Eos ramps and brings the automated line up, the volumes of pure flow and electrolyte they require will increase materially over the minimal volumes that we have shipped them so far this year.

與我們之前訪問時看到的相比，Eos 工廠的自動化生產線有了巨大的進步。隨著 Eos 的發展和自動化生產線的建設，它們所需的純流量和電解液的數量將大大超過我們今年迄今為止發貨的最小數量。

We have increased our capacity in West Memphis to meet the expected Eos demand. We also continue to advance discussions with a second zinc bromide customer using pure flow for their electrolyte technology. On the Arkansas bromine side, we are in the final review of an SK-1300 Definitive Feasibility Report or DFS. The economic analysis is prepared based on the assumption that the bromine project is completed independent of the planned lithium project.

我們增加了西孟菲斯的產能，以滿足預期的 Eos 需求。我們也繼續與第二家使用純流電解液技術的溴化鋅客戶進行討論。在阿肯色州溴方面，我們正在進行 SK-1300 最終可行性報告（DFS）的最終審查。經濟分析是基於溴項目獨立於規劃的鋰項目完成的假設進行的。

As a reminder, the bromine project will allow us to achieve the following benefits. First, vertical integration for supply of elemental bromine at a lower cost than buying it from third parties, making this a margin enhancement project. Second, it gives us more volumes to meet the continued growth in oil and gas demand for high end, high value completion fluids and the growing zinc bromide long duration battery market requirements. And third, positions us for the long term, utilizing our Arkansas bromine leases estimated to be over 80 years of resource supply as our current long-term elemental supply agreement comes to an end at the end of 2029.

提醒一下，溴計畫將使我們實現以下效益。首先，垂直整合以比從第三方購買成本更低的成本供應元素溴，使該專案成為利潤提高專案。其次，它為我們提供了更多的產量，以滿足石油和天然氣對高端、高價值完井液的持續增長需求以及不斷增長的溴化鋅長壽命電池市場需求。第三，從長遠來看，利用我們阿肯色州的溴租賃估計可以提供超過 80 年的資源供應，因為我們目前的長期元素供應協議將於 2029 年底到期。

On the lithium side, we're continuing the feed engineering effort and are targeting a major milestone for the plus minus 10% project cost and economics by the fourth quarter of this year. At that time, we will also be able to quantify the cost synergies for having both lithium and bromine production from the same plant and upstream brine unit.

在鋰方面，我們正在繼續進行飼料工程工作，目標是在今年第四季之前實現專案成本和經濟效益正負 10% 的重要里程碑。屆時，我們也將能夠量化同一工廠和上游鹽水裝置生產鋰​​和溴的成本綜效。

Summarizing on the strategic initiative side of things, the desalination of produced water for beneficial reuse, pure flow electrolyte for long duration energy storage, Arkansas bromine and future lithium supply are all material financial benefit to the company that we will quantify as we complete key milestones for each throughout the year. Collectively, they are transformational for the company. It's also important to understand that the desalination of produced water, zinc bromide based electrolyte for energy storage and direct lithium extraction are not only new businesses for TETRA, but for the most part, are new and emerging markets for the United States.

總結策略舉措方面，採出水淡化以進行有益再利用、用於長期儲能的純流動電解質、阿肯色州溴和未來的鋰供應都是公司的重大財務利益，我們將在完成關鍵里程碑時對其進行量化全年每個。總的來說，他們對公司來說是變革性的。同樣重要的是要了解採出水淡化、用於儲能的溴化鋅基電解質和直接鋰提取不僅是 TETRA 的新業務，而且在很大程度上是美國的新興市場。

So predicting accurate timing on key events is more challenging than for existing and established businesses. Our processes have been very methodical and our focus is to get it right and not get it out before we're highly confident with our work and our analysis.

因此，預測關鍵事件的準確時間比現有和成熟的企業更具挑戰性。我們的流程非常有條理，我們的重點是把事情做好，而不是在我們對我們的工作和分析充滿信心之前把它搞砸。

With that, I'll turn it over to Elijio to provide some additional commentary on our financial results and then we'll take some time for questions.

接下來，我將把它交給 Elijio，對我們的財務表現提供一些額外的評論，然後我們將花一些時間回答問題。

Thank you, Brady.

謝謝你，布雷迪。

Second-quarter adjusted EBITDA of $30.2 million was negatively impacted by $1.1 million of foreign exchange losses. Nonetheless, this was below our expectations as the US onshore market was progressively weaker during the quarter, especially around water transfer. We are focused on the quality of our earnings and will not be chasing work at low margin. With our focus on returns on capital and free cash flow, we are not prepared to chase lower margin opportunities.

第二季調整後 EBITDA 為 3,020 萬美元，受到 110 萬美元外匯損失的負面影響。儘管如此，這仍低於我們的預期，因為本季美國陸上市場逐漸疲軟，尤其是在調水方面。我們專注於收入質量，不會追求低利潤的工作。由於我們專注於資本回報和自由現金流，因此我們不准備追逐較低利潤的機會。

We had committed to improve water and flowback adjusted EBITDA margins to the mid-teens in the second quarter and achieved that with a 560-basis-point improvement to 15.2%. We believe that revenue in the third and fourth quarters will be flat to the second quarter and we expect to continue our efforts on keeping our EBITDA margins above 15% in an environment where onshore activity is flat.

我們曾承諾在第二季將水和回流調整後的 EBITDA 利潤率提高到 15%左右，並實現了這一目標，提高了 560 個基點，達到 15.2%。我們相信第三季和第四季的營收將與第二季持平，我們預計在境內活動持平的環境下繼續努力將 EBITDA 利潤率保持在 15% 以上。

Brady mentioned that our efforts of leveraging technology and automation are pivotal towards gaining market share in a declining market without compromising margins. Completion of fluids and products revenue saw the expected higher revenue and earnings from the peak industrial chemical season in Europe. Recall that a few years ago, we expanded production capacity in Northern Europe and took advantage of this and of the available higher volumes this peak season.

布雷迪提到，我們利用技術和自動化的努力對於在不影響利潤率的情況下在不斷下滑的市場中獲得市場份額至關重要。流體和產品收入的完成看到了歐洲工業化學品旺季帶來的預期收入和收益的成長。回想一下，幾年前，我們擴大了北歐的產能，並利用了這一點以及這個旺季的可用產量。

Our second quarter could have been even stronger if we managed to do a few challenges. The first was a strike by port workers in Kokkola, Finland that restricted our ability to offload limestone to produce calcium chloride and also restricted our ability to load and ship product. This strike started in the first quarter and ended early in the second quarter.

如果我們能夠克服一些挑戰，我們的第二季可能會更加強勁。第一個是芬蘭科科拉港口工人的罷工，這限制了我們卸載石灰石生產氯化鈣的能力，也限制了我們裝載和運輸產品的能力。這次罷工從第一季開始，到第二季初結束。

Additionally, the quarter started with winter conditions harsher than normal with a frozen harbor making the movement of vessels in and out a challenge. Despite all this, our calcium chloride business continues to perform very well. The industrial calcium chloride business is just below $140 million in revenue on a trailing 12-month basis and represents a stable revenue, EBITDA, and cash flow stream.

此外，本季開始時，冬季條件比正常情況更惡劣，港口結冰，為船舶進出帶來挑戰。儘管如此，我們的氯化鈣業務仍然表現良好。工業氯化鈣業務過去 12 個月的收入略低於 1.4 億美元，代表著穩定的收入、EBITDA 和現金流。

While the onshore oil and gas industry has been slowing for now what appears to be a short period of time, the offshore oil and gas market continues to also do well. As Brady mentioned, we had a nice sequential improvement in Europe and Latin America that were partially offset by the timing of projects in the Gulf of Mexico. Due to the timing of deepwater completions activity, we expect the third-quarter revenue and EBITDA to be comparable to what we saw in the first quarter for the completion fluids and product segment. But the fourth quarter should then see a meaningful step up from the third quarter taking into account the first of the three CS Neptune wells.

雖然陸上石油和天然氣產業目前似乎在短時間內放緩，但海上石油和天然氣市場也持續表現良好。正如布雷迪所提到的，我們在歐洲和拉丁美洲取得了不錯的連續改進，但部分被墨西哥灣計畫的時間表所抵消。由於深水完井活動的時間安排，我們預計第三季的收入和 EBITDA 將與我們在第一季度看到的完井液和產品部門的收入和 EBITDA 相當。但考慮到 CS Neptune 三口井中的第一口，第四季應該會比第三季取得有意義的進步。

Based on all the information we are hearing from our client and assuming no delays in the work schedule, we should complete the first of the three CS Neptune wells in the fourth quarter, but there is a possibility it could move to the first quarter. Recall that we are in the middle of the hurricane season in the Gulf of Mexico that could impact project timing.

根據我們從客戶那裡聽到的所有信息，並假設工作計劃沒有延誤，我們應該在第四季度完成三個 CS Neptune 井中的第一口，但有可能會推遲到第一季。回想一下，我們正處於墨西哥灣颶風季節中期，這可能會影響專案時間。

The three well CS Neptune project is a major achievement for TETRA and is one of many projects that we have been following for a long period. Recall that we previously completed a five well project for ExxonMobil in the Julia Field between 2015 and 2019. These types of projects are on high revenue per well given the technical environmental challenges that Neptune can address, including in this case down hold conditions as high as 340 degrees Fahrenheit.

三井CS Neptune計畫是TETRA的重大成就，也是我們長期關注的眾多計畫之一。回想一下，我們之前在 2015 年至 2019 年期間為埃克森美孚在朱莉婭油田完成了一個五口井計畫。考慮到 Neptune 可以解決的技術環境挑戰（包括在本例中高達 340 華氏度的低溫條件），這些類型的專案每口井的收入很高。

For the second quarter, we are also committed to an improvement in free cash flow. In this press release, we are breaking up free cash flow between the base business and cash flow from our Arkansas investments. Free cash flow from a base business in the second quarter was $19 million, a sequential improvement of $45 million from the first quarter. We further expect the third-quarter free cash flow from the base business to again be strong as we monetize the inventory and receivables from the northern Europe industrial peak season.

對於第二季度，我們也致力於改善自由現金流。在本新聞稿中，我們將基礎業務之間的自由現金流和阿肯色州投資的現金流量分開。第二季基礎業務的自由現金流為 1,900 萬美元，比第一季季增 4,500 萬美元。我們進一步預計，隨著我們將北歐工業旺季的庫存和應收帳款貨幣化，第三季基礎業務的自由現金流將再次強勁。

During the second quarter, we invested $9.8 million for engineering, reservoir analysis, and other studies in Arkansas. This $9.8 million is net of what we were reimbursed by Saltwerx consistent with our memorandum of understanding. We continue to jointly invest in Arkansas and advance towards formalizing a more formal agreement. These investments are necessary to allow us to quantify the required capital for future bromine and lithium production. Once those economics are fully understood, we can move to a more formal arrangement.

第二季度，我們投資了 980 萬美元用於阿肯色州的工程、油藏分析和其他研究。這 980 萬美元是根據我們的諒解備忘錄由 Saltwerx 向我們報銷的淨額。我們繼續在阿肯色州共同投資，並推動更正式的協議。這些投資對於我們量化未來溴和鋰生產所需的資本是必要的。一旦完全了解這些經濟學，我們就可以採取更正式的安排。

Liquidity as of this week was approximately $187 million, inclusive of the $75 million delay draw feature that is available to TETRA for the bromine project. In addition to the noted liquidity, we're also holding slightly over $14 million of marketable securities in standard lithium and Kodiak, and this can be monetized at our convenience.

截至本週，流動資金約為 1.87 億美元，其中包括 TETRA 可用於溴項目的 7,500 萬美元延遲提款功能。除了所提到的流動性之外，我們還持有略高於 1400 萬美元的標準鋰和 Kodiak 的有價證券，並且可以在我們方便的時候將其貨幣化。

In May, we refinanced, extended, and expanded our asset-based loan facility or ABL at an equally attractive interest rate than our prior ABL facility. This further strengthens our balance sheet and provides us the flexibility to execute on our growth initiatives. The maturity of the ABL is May of 2029. Nothing is outstanding on this facility. All our debt is now 2029 or 2030 maturity dates.

5 月份，我們以與先前的 ABL 設施同樣有吸引力的利率進行了再融資、延期和擴大了我們的資產基礎貸款設施或 ABL。這進一步增強了我們的資產負債表，並為我們提供了執行成長計畫的靈活性。ABL 的到期日為 2029 年 5 月。這個設施沒有什麼突出的。我們所有的債務現在都在 2029 年或 2030 年到期。

At the end of the second quarter, our net leverage ratio was 1.6 times. Return on net capital employed for the 12-month period ending June 2024 is a very healthy 17.4%, materially above our cost of capital. The CS Neptune project, which we believe to be the first of several in the coming years, plus the continued recovery of the deepwater market that can be addressed with calcium bromide and zinc bromide, our market-leading position in the calcium chloride market and the expected requirements for zinc bromide battery electrolyte is positioning us for what we believe to be a very solid 2025.

截至第二季末，我們的淨槓桿率為1.6倍。截至 2024 年 6 月的 12 個月期間，已動用淨資本回報率為 17.4%，非常健康，遠高於我們的資本成本。我們認為 CS Neptune 項目是未來幾年中的第一個項目，加上可以透過溴化鈣和溴化鋅解決的深水市場的持續復甦，我們在氯化鈣市場的市場領先地位以及溴化鋅電池電解液的預期需求使我們能夠在2025 年實現非常穩健的目標。

Let me turn it over to Brady for closing comments, and we'll open it up for questions.

讓我將其轉交給布雷迪以徵求結束意見，然後我們將開放以供提問。

Thanks, Elijio.

謝謝，埃利吉奧。

In closing, we're pleased that we are achieving the goals that we've set out for the company. The CS Neptune Award is reflective of our strong market position in the deepwater market and will have a material impact on our financials over the next six to nine months. We're on track with our water and flowback business to continue margin progression, renew technology with the desalination for beneficial reuse continuing to gain momentum.

最後，我們很高興我們正在實現為公司設定的目標。CS 海王星獎反映了我們在深水市場的強大市場地位，並將對我們未來六到九個月的財務狀況產生重大影響。我們的水和回流業務正走上正軌，持續提高利潤率，透過海水淡化更新技術，實現有益的再利用，繼續獲得動力。

We have a solid balance sheet, close to $180 million of liquidity, and we expect to continue to generate strong free cash flow from our base business to fund our strategic growth initiatives. We expect a strong finish to the end of the year, but just as important, significant momentum and heading into 2025 and beyond.

我們擁有穩健的資產負債表和接近 1.8 億美元的流動資金，我們預計將繼續從我們的基礎業務中產生強勁的自由現金流，為我們的策略成長計畫提供資金。我們預計今年底將取得強勁的業績，但同樣重要的是，進入 2025 年及以後也將出現顯著的勢頭。

With that, we'll now open it up for questions.

現在，我們將開放提問。

(Operator Instructions) Bobby Brooks, Northland Capital Markets.

（操作員說明）Bobby Brooks，Northland Capital Markets。

Hi, guys. Good morning. Thank you for taking my question. My first question is just on the CS Neptune outlook. So great that you guys got the three projects nailed down with the one super major. But if I recall, in the first quarter, you guys talked about how the level of discussions for CS Neptune projects within the Gulf of Mexico was at the highest that you've ever seen, and that was occurring with multiple different operators. So I just wanted to get a sense of what -- how those conversations, obviously, these three you got, is there potential for more from this operator?

嗨，大家好。早安.感謝您回答我的問題。我的第一個問題是關於 CS Neptune 的前景。太棒了，你們把三個項目與一個超級專業確定下來了。但如果我記得，在第一季度，你們談到了墨西哥灣內的 CS Neptune 專案的討論程度是你們所見過的最高水平，而且這是與多個不同的運營商發生的。所以我只是想了解一下——這些對話，顯然，你得到的這三個對話，是否有可能從這個操作員那裡得到更多？

And then maybe just any -- how have discussions went with those other ones? I know that at the end there, talked about these might be the first of several in the coming years. So just kind of more detail on that.

然後也許只是任何一個 - 與其他人的討論進展如何？我知道最後討論的這些可能是未來幾年的第一個。所以請提供更多詳細資訊。

Yes, Bobby. So we have a pretty extensive pipeline of projects with operators that we've been tracking for many years. I think I've mentioned before that these types of projects come a long lead time in terms of the types of testings that's required. Last-minute testing, formation testing, fluid compatibility with everything the operator is doing with their completion. And so we've got a very healthy list of pipeline of projects.

是的，鮑比。因此，我們與營運商有相當廣泛的專案管道，我們多年來一直在追蹤這些項目。我想我之前已經提到過，就所需的測試類型而言，這些類型的專案需要很長的準備時間。最後一刻的測試、地層測試、流體相容性以及操作員在完成時所做的一切。因此，我們已經有了一份非常健康的項目清單。

Obviously, we're pleased with this award, but we are having multiple discussions with multiple operators that are part of that pipeline. Some of those could materialize before the end of the year in terms of new awards. Some of them may carry into the next year or beyond. It's difficult to say until you actually get the award. We want to be careful of how we communicate that. But I can tell you we are having multiple discussions with multiple operators regarding additional projects beyond just these first three.

顯然，我們對這個獎項感到滿意，但我們正在與該管道中的多個運營商進行多次討論。其中一些可能會在今年年底之前以新獎項的形式實現。其中一些可能會延續到明年或更長時間。在你真正獲獎之前很難說。我們要小心我們的溝通方式。但我可以告訴你，我們正在與多個運營商就除前三個之外的其他項目進行多次討論。

And just to clarify, that is specifically for these CS Neptune projects in the Gulf of Mexico, which obviously are very revenue intense and high EBITDA margins for you, right?

需要澄清的是，這是專門針對墨西哥灣的這些 CS Neptune 項目的，這些項目顯然對您來說收入非常密集且 EBITDA 利潤率很高，對吧？

That's correct. The Gulf of Mexico wells are quite unique just from the pure volume of the fluid that's involved in the completions and the technical requirements of the fluid to meet these ultra-deep water temperature and pressure conditions.

這是正確的。僅從完井所涉及的流體的純體積以及滿足這些超深水溫度和壓力條件的流體技術要求來看，墨西哥灣油井就非常獨特。

And Bobby, just to add, this is on top of our traditional completion fluids business in the Gulf of Mexico. Some of the bigger projects that can be addressed with the basic calcium bromide or zinc bromide could range anywhere from $2 million to $5 million per well for the basic completion fluids before we move to a Neptune-type well.

鮑比補充道，這是我們在墨西哥灣傳統完井液業務的基礎。在我們轉向海王星型井之前，一些可以使用鹼性溴化鈣或溴化鋅解決的較大項目可能會為每口井的基本完井液花費 200 萬至 500 萬美元。

Got it. Thanks for that color. And then jumping over to the beneficial reuse, as mentioned how you signed seven different NDAs with seven different operators, I think it could be helpful to just help frame that a little more, maybe contrast that with how many NDAs were signed at the beginning of the year versus now. Were any of the NDAs that you had signed at the beginning of the year, did those back out?

知道了。謝謝那個顏色。然後跳到有益的重用，正如所提到的，您如何與七個不同的運營商簽署了七個不同的NDA，我認為幫助構建更多一點可能會有所幫助，也許與在開始時簽署了多少個NDA 進行對比當年與現在。你們在年初簽署的保密協議是否已被撤銷？

We have not had any NDAs back out. And I don't know the exact number, Bobby, but I would tell you they have definitely increased as we've gone through the year. The nature of these discussions, obviously, we have some proprietary technology, some of which we have filed some patents for. But obviously, until we're issued the patents, we want to be very protective of the proprietary nature of our technology.

我們尚未撤銷任何保密協議。我不知道確切的數字，鮑比，但我會告訴你，隨著這一年的過去，它們肯定有所增加。顯然，這些討論的本質是我們擁有一些專有技術，其中一些我們已經申請了一些專利。但顯然，在我們獲得專利之前，我們希望充分保護我們技術的專有性質。

That's the reason for the NDAs. And that allows us to have very deep discussions with the operators, the customers, for their very specific requirements around their produced water and the treatment procedures and technologies we will use for their program, which obviously, we hope, evolves into a pilot program, which we've already done with the first customer we've been discussing for some time. But now we're in multiple, serious pilot commercial discussions with multiple operators.

這就是 NDA 的原因。這使我們能夠與營運商、客戶進行非常深入的討論，了解他們對產出水的非常具體的要求，以及我們將用於他們的專案的處理程序和技術，顯然，我們希望該專案能夠演變成一個試點項目，我們已經與第一位客戶完成了這項工作，我們已經討論了一段時間了。但現在我們正在與多家業者進行多次認真的試點商業討論。

Got it. Thanks for that color. And then just last one for me is, could you -- so $9.8 million in CapEx towards Arkansas. That's net of reimbursement from the partner. Are you able to disclose how much the reimbursement is total?

知道了。謝謝那個顏色。對我而言，最後一個問題是，您可以向阿肯色州投入 980 萬美元的資本支出嗎？這是扣除合作夥伴的報銷後的淨額。能透露一下總共報銷多少錢嗎？

Yes, those are covered by our NDA. So we'll obviously only report what impacts TETRA's financial statement. But assume that our partner continues to work side-by-side with us on all the initiatives around Arkansas.

是的，我們的保密協議涵蓋了這些內容。因此，我們顯然只會報告影響 TETRA 財​​務報表的因素。但假設我們的合作夥伴繼續與我們並肩致力於阿肯色州周圍的所有舉措。

Fair enough. Congrats on the solid quarter, and I'll return back to the queue. Thanks, guys.

很公平。恭喜這個季度的穩定表現，我將回到隊列中。謝謝，夥計們。

Josh Jayne, Daniel Energy Partners.

喬許‧傑恩，丹尼爾能源合夥人。

Thanks. Good morning. First one I wanted to ask, just on Sandstorm being deployed to the Middle East market. Could you talk about the total addressable market and what it looks like for you if this is successful, maybe over the next couple of years as a starting point?

謝謝。早安.我想問的第一個問題是關於 Sandstorm 部署到中東市場的問題。您能否談談整個潛在市場以及如果成功（也許在未來幾年作為起點）對您來說會是什麼樣子？

Yes, I mean, we're clearly seeing some activity increase in the Middle East, several markets for the unconventionals markets that are developing. And clearly there's an addressable market today.

是的，我的意思是，我們清楚地看到中東地區的一些活動增加，一些非常規市場正在發展。顯然，今天有一個潛在的市場。

I don't want to give specifics about the numbers in today's market. But as that unconventional activity continues to increase in several of the Middle East countries, it's a perfect application for Sandstorm. So we'll keep you posted as that market develops and we can quantify it. But it's a little early for us to do that at this point.

我不想詳細說明當今市場的數字。但隨著一些中東國家的非常規活動持續增加，它是 Sandstorm 的完美應用。因此，隨著市場的發展，我們會及時通知您，並且我們可以對其進行量化。但目前我們這樣做還為時過早。

Okay. And switching gears a little bit to offshore completions, fluid activity, you noted that it was stronger in Q2 than Q1. Maybe you could just walk through the markets outside of the Gulf of Mexico and how you're seeing those markets shape up over the next 12, 24 months would be helpful?

好的。稍微切換一下海上完井、流體活動，您注意到第二季比第一季更強。也許您可以瀏覽一下墨西哥灣以外的市場，了解一下這些市場在未來 12、24 個月內的發展情況，會對您有所幫助嗎？

Yes. So we clearly, outside the Gulf of Mexico, we have strong market positions in Brazil, in the North Sea, and to a lesser degree, West Africa and Asia Pacific. But certainly we see a very good growth going into 2025 in the Brazil market. And we are extremely well-positioned in the Brazil market for that growth, again, outside the Gulf of Mexico. North Sea, we continue to see steady improvement, steady progress, not just in the typical completion activity, but also opportunities for us for Neptune opportunities in the North Sea.

是的。因此，顯然，在墨西哥灣之外，我們在巴西、北海以及西非和亞太地區擁有強大的市場地位。但可以肯定的是，我們看到巴西市場到 2025 年將會出現非常好的成長。我們在墨西哥灣以外的巴西市場中處於非常有利的位置，能夠實現這一成長。北海，我們繼續看到穩步改善、穩定進展，不僅是典型的完井活動，而且還為我們在北海的海王星機會提供了機會。

Now, typically they're not as large of a size of projects, clearly not as large as in the Gulf of Mexico, but they are very profitable opportunities for us as that market continues to evolve. And then, we have spot markets around the world that we work with the major service providers on providing completion fluid technology for those markets. But overall, the international offshore market we see is a continuing trend, improving. And that obviously includes the Gulf of Mexico.

現在，它們的項目規模通常沒有墨西哥灣那麼大，但隨著市場的不斷發展，它們對我們來說是非常有利可圖的機會。然後，我們在世界各地都有現貨市場，我們與主要服務提供者合作，為這些市場提供完井液技術。但總體而言，我們看到的國際離岸市場持續呈現改善趨勢。這顯然包括墨西哥灣。

Okay, thanks. And then maybe just one last one to ask the Gulf of Mexico Neptune question a little bit differently. When we think about the margin uplift from this specific project that's going to happen for you in Q4 and early into 2025, is the margin profile different or better for this project than we might see from traditional projects?

好的，謝謝。然後也許是最後一個以稍微不同的方式問墨西哥灣海王星問題的人。當我們考慮這個特定項目將在第四季度和 2025 年初實現的利潤提升時，該項目的利潤狀況是否與我們從傳統項目中看到的不同或更好？

Because not only maybe is the pricing environment a little more constructive, but also just the fact that the wells are stacked back to back, I was just curious if you could elaborate on that a little bit more and to help frame your expectations for the first half of 2025. And then I'll turn it back. Thanks.

因為不僅定價環境可能更具建設性，而且井是背對背堆疊的，我只是好奇您是否可以詳細說明這一點，並幫助您構建對第一個的期望2025 年一半。然後我會把它轉回來。謝謝。

Josh, good question. The margin that we make on a Neptune project has many variables that go into it. It depends on how many volumes, how many thousands of volumes of fluid barrels we inject into the well. It depends on the duration of the fluid in the well, whether it's in there for a few weeks or many, many weeks, and also on how much fluid is lost in the well.

喬什，好問題。我們在海王星專案上獲得的利潤有很多變數。這取決於我們在井中註入多少體積、數千體積的流體桶。這取決於流體在井中的持續時間，無論是幾週還是許多週，取決於井中損失了多少流體。

The prior project that we did, the losses of the fluid in the well were quite significant. At this point, we're making an estimate as to how much fluid might be recovered from the well. But they will be higher than traditional offshore completion fluids projects. And they can move the entire segment meaningfully.

我們之前做的項目中，井內液體的損失相當大。此時，我們正在估計可以從井中回收多少液體。但它們將高於傳統的海上完井液項目。他們可以有意義地推動整個細分市場。

Okay, thanks. I'll turn it back.

好的，謝謝。我會把它轉回來。

Kurt Hallead, Benchmark.

庫爾特·哈勒德，基準。

Hi, good morning, everybody. I think I want to come back around to that, the water opportunity, recycling reuse and so on. And it's awesome to see that you guys are getting some traction with a number of different EMPs around it. I think it probably speaks to the value proposition.

嗨，大家早安。我想我想回到這個主題，水的機會、回收再利用等等。很高興看到你們透過許多不同的 EMP 獲得了一些關注。我認為這可能說明了價值主張。

Now, I'm kind of curious, when you think about the dynamics at play, and you think about how the customer base may be pursuing this, could you give us some sense as to is this being like supported by the governmental and regulators in Texas? And is that a key element of the driver? Or is it a combination of that and maybe the EMPs wanting to reduce their environmental exposure? Just kind of curious what the underlying drivers of this market will be that will help it make a reality?

現在，我有點好奇，當你考慮其中的動態，並考慮客戶群可能如何追求這一點時，你能給我們一些關於這是否得到政府和監管機構支持的感覺嗎？這是驅動程式的關鍵要素嗎？或者是這兩者的結合，也許 EMP 想要減少他們的環境暴露？只是有點好奇這個市場的潛在驅動因素是什麼，將有助於它成為現實？

Right. So the largest fundamental driver behind this, Kurt, is the fact that the seismicity events in West Texas are clearly linked to over-pressuring the disposal wells and formations in the region. I think we've seen the Railroad Commission put restrictive injection profiles around certain areas. I think there's three or four in effect today in term that are starting to restrict the amount of water that operators can dispose into these formations.

正確的。因此，庫爾特，這背後最大的根本驅動因素是，德州西部的地震活動顯然與該地區處理井和地層的超壓有關。我認為我們已經看到鐵路委員會在某些區域設置了限制性注入配置。我認為目前有三到四個有效措施開始限制營運商可以向這些地層中排放的水量。

There was just recently, as I mentioned in our comments, a number of fairly sizable earthquakes, one of them hitting a 5.1 Richter scale just last week, that there was an article out that the Railroad Commission was going to be investigating that. And so this problem is not going to go away until there is a solution to address the over-pressuring of disposal wells and lack of pore space to inject additional disposal water.

正如我在評論中提到的，最近發生了一些相當大的地震，其中一次上週就達到了里氏 5.1 級，有一篇文章稱鐵路委員會將對此進行調查。因此，除非找到解決處置井超壓和缺乏孔隙空間來注入額外處置水的解決方案，否則這個問題不會消失。

Now, there's a couple of solutions to that. Operators can truck water from the areas where it's being produced to other areas farther away that are not under pressure. That gets pretty expensive pretty quickly. We think that the best solution is to treat that water and turn it into a resource right in the general vicinity of where that water is being produced. And so operators are definitely looking at those options relative to their alternatives.

現在，有幾個解決方案。業者可以將水從產水地區運送到更遠、沒有壓力的其他地區。這很快就會變得非常昂貴。我們認為最好的解決方案是對水進行處理，並將其轉化為水產地附近的資源。因此，營運商肯定會考慮這些選項及其替代方案。

And we think the price point that we can achieve, the cost point that we can achieve with our technology, that it's going to be a sizable market opportunity for us. But that's really the drivers. The regulatory agencies are definitely tracking this extremely closely. They've actually visited our facilities, looked at our technology, given us very encouraging feedback as to the solutions that we're offering. But clearly, there's a lot that goes into permitting produced water that potentially has a lot of organics and nasty elements in it to allow for beneficial reuse.

我們認為我們可以達到的價格點，我們可以透過我們的技術實現的成本點，這對我們來說將是一個相當大的市場機會。但這確實是司機。監管機構肯定會非常密切地追蹤此事。他們實際上參觀了我們的設施，查看了我們的技術，並對我們提供的解決方案給予了非常令人鼓舞的反饋。但顯然，要允許含有大量有機物和有害元素的採出水進行有益的再利用，需要做很多工作。

As I mentioned in our comments, that's already happening in California today. That's been going on for several years now, where treating produced water for agricultural purposes has been in place. I just think it's a matter of time before Texas and New Mexico, quite frankly, get caught up with getting their regulatory guidelines and specifications in place.

正如我在評論中提到的，這種情況今天已經在加利福尼亞州發生。這種情況已經持續了好幾年，用於農業目的的採出水處理已經到位。坦白說，我只是認為德州和新墨西哥州遲早會趕上製定監管指南和規範。

Okay. That's really good color. So maybe shifting a bit in the context of the opportunity that you have going on in Arkansas and the investments that you've been making. I know you referenced there's a final review that's kind of underway right now. I guess my commentary is this, you guys have a royalty agreement with Standard Lithium for what they produce. It looks like Equinor has made an investment in what Standard Lithium is doing. That follows on with the joint venture that you have with Exxon on your acreage.

好的。這顏色確實不錯啊因此，也許會根據您在阿肯色州獲得的機會以及您一直在進行的投資進行一些調整。我知道您提到目前正在進行最終審查。我想我的評論是這樣的，你們與標準鋰公司就其生產的產品簽訂了特許權使用費協議。Equinor 似乎對 Standard Lithium 的業務進行了投資。接下來是您與埃克森美孚在您的土地上建立的合資企業。

So should we think about this dynamic at play now with Exxon and Equinor? Are these firm interest levels? Or do you think that this is more of from an oil company standpoint, we've got to get a sense of what's going on here, but we're really not fully committed? And I know what the answer is on Exxon, but I'm just kind of curious what your take is with respect to Equinor's investment in Standard Lithium's project. And do you think that makes that more real and the outcomes there more real?

那麼我們現在是否應該考慮一下埃克森美孚和挪威國家石油公司現在正在發揮的這種作用？這些是公司的興趣程度嗎？還是你認為這比較是從石油公司的角度來看，我們必須了解這裡發生的事情，但我們真的沒有完全投入？我知道埃克森美孚的答案是什麼，但我只是好奇你對 Equinor 對標準鋰計畫的投資有何看法。您認為這是否會讓事情變得更加真實，那裡的結果也更加真實？

I mean, we know Equinor quite well from our dealings with them in the oil and gas world. And we've met their project team that's based here in Houston for that project. And my perspective is they're every bit as committed as any other operator would be for this type of a project that's invested in this. I mean, obviously, things can change, but from what we can tell, they're very much committed.

我的意思是，我們透過在石油和天然氣領域與 Equinor 的往來對他們非常了解。我們已經會見了他們位於休士頓的該專案的專案團隊。我的觀點是，他們與任何其他運營商一樣致力於投資此類項目。我的意思是，顯然，事情可能會改變，但據我們所知，他們非常堅定。

I don't want to speak for them, but that's just our observation. I think at this point in time, we're still going through the engineering process and don't want to get ahead of ourselves until we get the final engineering and the economics of the project in place that we can publish and talk about.

我不想代表他們說話，但這只是我們的觀察。我認為目前，我們仍在經歷工程過程，並且不想超前，直到我們獲得可以發布和討論的最終工程和專案的經濟效益。

We expect to have that completed before the end of the year, and then we'll be able to publish, hopefully the results of that, both in terms of the CapEx, the OpEx, the financial returns, like we're getting ready to release, hopefully, as soon as next week on the bromine definitive feasibility study. But until we have all those numbers kind of pulled together, and each of, whether it's ourselves, whether it's Equinor and Standard and Lithium, and ourselves with Saltworks and ExxonMobil, we don't want to get ahead of ourselves until we have some economics to speak about.

我們預計在今年年底之前完成，然後我們將能夠發布希望的結果，無論是在資本支出、營運支出還是財務回報方面，就像我們準備好的那樣希望最快下週發布關於溴的最終可行性研究。但在我們將所有這些數字匯總在一起之前，無論是我們自己，還是 Equinor、Standard 和 Lithium，還是我們自己與 Saltworks 和埃克森美孚，我們都不想超越自己，直到我們掌握了一些經濟學原理。來談談。

Yes, that's all fair. All right. And then maybe just to kind of wrap on this one, you guys have an electrolyte supply agreement for battery energy storage systems, as you referenced. I think there was some opportunity or possibility to start delivering those electrolyzers in volumes before the end of the year. Do you have any updates for us on the timing of that?

是的，這很公平。好的。然後也許只是為了總結這一點，正如您所提到的，您有一份電池儲能係統的電解質供應協議。我認為有一些機會或可能性在今年年底之前開始批量交付這些電解槽。您能提供我們有關具體時間的最新消息嗎？

Yes. So Kurt, just as a reminder, we did ship and we have sold electrolyte to Eos in prior years. A lot of what they sold in 2022 and 2023 included our electrolyte. That's part of what's out in the market right now, both charging and discharging battery. Recall that last year they made a decision to transition to their latest version of the technology and then suspended activity as they were making that transition.

是的。所以庫爾特，提醒一下，我們確實發貨了，並且我們在前幾年已經向 Eos 出售了電解液。他們在 2022 年和 2023 年銷售的許多產品都包含我們的電解液。這是目前市場上的產品的一部分，包括充電和放電電池。回想一下，去年他們決定過渡到最新版本的技術，然後在過渡過程中暫停了活動。

Brady and I, a little over a week ago, made another trip to Turtle Creek and visited with the Eos management team. And it was very encouraging to see how they progressed the automation of the latest version of the battery, how they are now fully automating the assembly and production of the batteries.

一週多前，布雷迪和我再次前往 Turtle Creek，拜訪了 Eos 管理團隊。看到他們如何推進最新版本電池的自動化，以及現在如何完全自動化電池的組裝和生產，真是令人鼓舞。

When Brady and I were there, we saw how the electrolyte was automatically being injected into every battery. We think we're going to go from shipping them electrolyte in totes to full tanker trucks. And just as an example, one tote can contain around 4,200 pounds of electrolyte. A tanker truck can contain 45,000 pounds of electrolyte.

當布雷迪和我在那裡時，我們看到電解液如何自動注入每個電池。我們認為我們將把電解液裝在手提袋裡運送到滿載的油罐車上。舉例來說，一個手提袋可容納約 4,200 磅的電解液。一輛油罐車可容納 45,000 磅電解液。

And what Eos was doing was modifying their facility to take tanker trucks instead of totes. We believe, based on what we saw, that they will be up in full production in Q4. And at that point, the expectation is we're going to start shipping electrolyte in tanker trucks versus totes. And the volumes increase meaningfully. And the impact, we think, to us is going to be quite significant in 2025.

Eos 正在做的是修改他們的設施，以運載油罐車而不是手提箱。根據我們所看到的情況，我們相信它們將在第四季度全面投產。到那時，預計我們將開始用油罐車而不是手提袋運輸電解液。而且數量顯著增加。我們認為，到 2025 年，這對我們的影響將相當重大。

Okay. That's awesome. Appreciate that. That's it for me.

好的。太棒了。很欣賞這一點。對我來說就是這樣。

(Operator Instructions) Patrick Ouellette, Stifel.

（操作員說明）Patrick Ouellette，Stifel。

Hi. Good morning. It's Pat on for Steve Gengaro. Thanks for taking questions. I believe you had mentioned a potential second customer for the zinc bromide electrolyte. Could you just talk about your ability to meet that sort of demand or how margin changes if you need to source bromine from the open market?

你好。早安.這是 Steve Gengaro 的讚。感謝您提出問題。我相信您已經提到了溴化鋅電解質的潛在第二客戶。您能否談談您滿足此類需求的能力，或者如果您需要從公開市場採購溴，利潤率會如何變化？

Well, first part of the question, we've been working with the second customer for some time. I think they're clearly, in terms of their ramp-up manufacturing capacity, just really getting started in terms of developing that manufacturing capacity here in the United States. So well, time will tell how fast they're able to ramp up. But I don't see a big impact to us in terms of our overall bromine supply in 2025 or potentially into 2026. It just depends on how fast they scale up their manufacturing, certainly relative to what Eos has done, who put an entire automated assembly line with a battery coming off the line every 10 seconds or so.

嗯，問題的第一部分，我們已經與第二位客戶合作了一段時間。我認為，就製造能力的提升而言，他們顯然才真正開始在美國發展製造能力。那麼，時間會證明他們能夠以多快的速度提升。但我認為 2025 年或 2026 年的溴供應總量不會對我們產生太大影響。這只取決於他們擴大製造規模的速度，當然是相對於 Eos 所做的事情而言，Eos 建立了一條完整的自動化裝配線，每 10 秒左右就有一個電池下線。

So it's not really comparable yet at this point. But the fact that they're using zinc bromide, the technology works, they've got commercial installations at a pretty small scale, it gives us a lot of good confidence in the technology itself, as we have with Eos. So I don't think it's really going to be much of an impact for any third-party purchases that we would need over the next year or so to support that activity.

所以目前還沒有真正的可比較性。但事實上，他們使用的是溴化鋅，該技術有效，他們已經在相當小的規模上進行了商業安裝，這讓我們對技術本身充滿了信心，就像我們對 Eos 一樣。因此，我認為這不會對我們在未來一年左右需要支援該活動的任何第三方採購產生太大影響。

Okay, great. Thanks, Brad. And then -- so for the third quarter, could you just remind us of any seasonal impacts in completion fluids from Europe or maybe what you're expecting to see there?

好的，太好了。謝謝，布拉德。然後，對於第三季度，您能否提醒我們歐洲完井液的季節性影響，或者您期望在那裡看到什麼？

No seasonality beyond what we see in the second quarter for the calcium chloride business in Northern Europe. Obviously, we're hoping that there's no hurricanes in the Gulf of Mexico that disrupt activity. But that would be the only seasonality that might be out there.

除了我們在第二季度看到的北歐氯化鈣業務的季節性之外，沒有任何季節性。顯然，我們希望墨西哥灣沒有颶風擾亂活動。但這將是唯一可能存在的季節性。

Okay, great. That's all for me. Thank you.

好的，太好了。這就是我的全部。謝謝。

This concludes our question-and-answer session. I would 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。我想將會議轉回給墨菲先生做總結發言。

Well, thank you very much. Appreciate you joining us and appreciate your interest in TETRA Technologies. We look forward to our next discussion with you. Thank you.

嗯，非常感謝。感謝您加入我們並感謝您對 TETRA Technologies 的興趣。我們期待與您的下一次討論。謝謝。

Ladies and gentlemen, this concludes today's conference. We thank you for participating and ask that you please disconnect your lines.

女士們、先生們，今天的會議到此結束。我們感謝您的參與，並請您斷開線路。