Tetra Technologies Inc (TTI) 2024 Q4 法說會逐字稿

Good morning and welcome to Tetra Technologies 4th quarter 2024 results conference call. All participants are in listen-only mode. [operator instruction]

早安，歡迎參加 Tetra Technologies 2024 年第四季業績電話會議。所有參與者都處於只聽模式。[操作員指令]

I would like to turn the conference over to Julian Higuera. Please go ahead, sir.

我想將會議交給朱利安·伊格拉 (Julian Higuera)。先生，請繼續。

Thank you, John. Good morning and thank you for joining Tetra's 4th quarter and full year 2024 results call. Speakers for today's call are Brady Murphy, Chief Executive Officer, and Elijio Serrano, 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. These statements are based on certain assumptions and analysis made.

謝謝你，約翰。早安，感謝您參加 Tetra 2024 年第四季和全年業績電話會議。今天電話會議的發言人是執行長布雷迪墨菲 (Brady Murphy) 和財務長埃利吉奧塞拉諾 (Elijio Serrano)。我想提醒您，本次電話會議可能包含或可能被視為前瞻性的陳述，包括預測、財務指導、盈利能力和預計收益。這些表述都是基於一定的假設和分析而做出的。

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. In addition, in the course of the call, we may refer to EBITDA, adjusted EBITDA margins, free cash flow, net debt, net leverage, ratio, liquidity, returns on net capital employed. Or other non-gap financial measures, please refer to yesterday's press release or to our public website for reconciliation of non-gap 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 our complete financial results for the period. In addition to our press release announcement, we encourage you to refer to our 10K that we filed yesterday. I'll now turn it over to Brady.

由 Tetra 提供，並基於多種因素。這些聲明受到多種風險和不確定性的影響，其中許多超出了公司的控制範圍。請注意，此類聲明並不能保證未來的業績，實際結果可能與前瞻性聲明中預測的結果有重大差異。此外，在通話過程中，我們可能會參考 EBITDA、調整後的 EBITDA 利潤率、自由現金流、淨負債、淨槓桿、比率、流動性、淨資本使用報酬率。或其他非差距財務指標，請參閱昨天的新聞稿或造訪我們的公開網站，以了解非差距財務指標與最近的 GAAP 指標的對帳。這些對帳不能取代根據 GAAP 編制的財務信息，應結合我們該期間的完整財務結果進行考慮。除了我們的新聞稿公告外，我們還鼓勵您參考我們昨天提交的 10K。現在我將把發言權交給布雷迪。

Thank you, Julian. Good morning, everyone, and welcome to Tetra's 4th quarter and full year 2024 earnings call. I'll summarize some highlights from our 4th quarter and full year results, discuss the current outlook, and provide an update on our strategic initiatives before turning the call over to Elijio to discuss more details on the 4th quarter and some views on 2025.

謝謝你，朱利安。大家早安，歡迎參加 Tetra 2024 年第四季和全年財報電話會議。我將總結我們第四季度和全年業績的一些亮點，討論當前的前景，並提供我們戰略舉措的最新信息，然後將電話轉給 Elijio，討論第四季度的更多細節和對 2025 年的一些看法。

Our fourth quarter results were overall in line with our expectations that strong offshore and industrial chemicals performance mostly offset a weaker than expected year-end slowdown for our US land operations. Adjusted the EBITDA margins of 17%, improved from 16.6% in the third quarter and from 15.8% in the fourth quarter of 2023, despite lower revenue quarter on quarter and year on year. Contributing to our strong offshore performance in the 4th quarter, we executed 13 deepwater completion jobs compared to 11 in the 3rd quarter.

我們的第四季業績整體符合我們的預期，強勁的海上和工業化學品業績基本上抵消了我們美國陸地業務年底低於預期的放緩。調整後的 EBITDA 利潤率為 17%，高於第三季的 16.6% 和 2023 年第四季的 15.8%，儘管營收季減和年比均有所下降。由於我們第四季強勁的海上業績，我們執行了 13 項深水完井作業，而第三季為 11 項。

While our industrial chemicals business achieved a record revenue and adjusted EBITDA for the 4th quarter. Our water and flowback segment achieved even on margins of 13.8% and was impacted by a more severe than normal year in the completion slowdown. And although both rig count and frac fleet count are down more than double digits from last year, the volume of produced water continues to increase. In the fourth quarter, we achieved a record volume of $89 million barrels of treated and recycled produced water for frac reuse. Our primary focus and capital allocation for this segment will continue to be on solutions for produced water treatment and recycle, including desalination for beneficial reuse.

我們的工業化學品業務在第四季度實現了創紀錄的收入和調整後EBITDA。我們的水和回流部門實現了 13.8% 的利潤率，但因完井放緩而受到比正常年份更嚴重的影響。儘管鑽機數量和壓裂船隊數量較去年同期均下降了兩位數以上，但產水量仍在持續增加。第四季度，我們實現了創紀錄的 8,900 萬桶處理和回收採出水用於壓裂再利用。我們對這一部門的主要關注點和資本配置將繼續放在采出水處理和回收利用的解決方案上，包括海水淡化以實現有益再利用。

For the full year, our completion fluids and product segment revenue was down 1% but grew even down by 2% year over year, driven by a strong performance in our industrial chemicals business. Total year completion fluids and products revenue of $311 million was the second highest since 2015 when we completed two large CS Neptune projects in the Gulf of America. Our industrial chemicals business had an excellent year, achieving its highest revenue and adjusted EBITDA in our company's history. With 2024 revenue growth over 2023 of over 9%. Our industrial chemicals business represents 22% of Tetras's total revenue.

全年來看，我們的完井液和產品部門營收下降了 1%，但年成長甚至下降了 2%，這得益於我們工業化學品業務的強勁表現。全年完井液和產品總收入為 3.11 億美元，是自 2015 年我們在美國灣完成兩個大型 CS Neptune 專案以來的第二高收入。我們的工業化學品業務今年表現出色，實現了公司歷史上最高的收入和調整後 EBITDA。2024 年營收將比 2023 年成長 9% 以上。我們的工業化學品業務佔 Tetras 總收入的 22%。

This year and into the future we expect to ramp up meaningful volumes of zinc bromide-based electrolyte, and so we expect this percentage to continue to increase. Our diversification of calcium chloride markets continues to increase, including grades for food, agriculture, paper, industrial applications, the more seasonal demand for de-icing and dust binding, plus a growing demand for technology, including chip manufacturing. The superior purity level of our zinc bromide allows us to participate in the long duration energy storage electrolyte market, as evidenced by our first batch of pure flow-based electrolyte shipments to EOS Energy enterprises in the 4th quarter.

今年及未來，我們預計溴化鋅電解液的產量將大幅增加，因此我們預計這一比例將持續增加。我們的氯化鈣市場多樣化程度不斷提高，包括食品、農業、造紙、工業應用的等級，除冰和除塵的季節性需求，以及包括晶片製造在內的技術需求的不斷增長。我們的溴化鋅純度較高，這使我們能夠參與長時儲能電解質市場，而第四季度我們向 EOS Energy 企業運送的第一批純流電解質就證明了這一點。

Our leading market positions in Northern Europe and the 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 business opportunities.

我們在北歐和美國的領先市場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開展運營，從而使我們能夠對新的高成長業務機會進行再投資。

Looking back on 2024, we made some strategic investments that are paying off as we head into 2025. Capital investments and the expansion of our capacity in Brazil is supporting a large deep water completion fluids award, which will start in the second quarter of 2025. Investments in the Gulf of America has led to increased deep water activity for us, including a three-we Tetris CS Neptune project currently ongoing. We just completed the 1st of the 3 wells, and we'll be getting the 2nd well shortly. Inventory ramp up for both of these projects contributed to a year on year working capital increase of $21 million but the combined CapEx and working capital investments are expected to be earned back more than $1 for dollar in the first six months of 2025.

回顧 2024 年，我們進行了一些策略性投資，這些投資在邁向 2025 年時將獲得回報。我們在巴西的資本投資和產能擴張正在支持一項大型深水完井液合同，將於 2025 年第二季度開始。在美國灣的投資使我們的深水活動增加，包括目前正在進行的為期三年的俄羅斯方塊 CS 海王星計畫。我們剛剛完成了三口井中的第一口，很快就會完成第二口井。這兩個項目的庫存增加導致營運資本年增了 2,100 萬美元，但預計到 2025 年上半年，資本支出和營運資本投資總額將收回 1 美元以上的成本。

Turning to our water and flowback services segment, 2024 proved to be a challenging year. Operator consolidation, as well as low natural gas prices, contributed to a decline in the rig count and frac leaks by 17% and 30% respectively over the past two years. Our water and flowback focus remains in two areas. First is deploying relatively low dollar capital to automate our existing fleet of water management and flowback assets, including sandstorm that lower labour costs and increase margins, and to focus on recycling, treatment, and desalination of produced water for beneficial reuse. We believe that we're industry leaders in both of these areas which we expect over time will improve margins and give us a significant path to grow through desalination.

談到我們的水和回流服務部門，2024 年被證明是充滿挑戰的一年。營運商合併以及天然氣價格低迷，導致過去兩年鑽機數量和壓裂洩漏分別下降了 17% 和 30%。我們的水和回流重點仍然集中在兩個領域。首先是部署相對較低的美元資本來自動化我們現有的水管理和回流資產，包括降低勞動力成本和提高利潤率的沙塵暴，並專注於回收、處理和淡化采出水以實現有益的再利用。我們相信，我們在這兩個領域都是行業領導者，我們預計隨著時間的推移，利潤率將會提高，並為我們透過海水淡化實現成長提供重要的途徑。

Looking ahead to 2025 for water and flowback, we expect revenue to remain flattish while increasing margins by enhancing operational efficiencies, including automation, enabling us to maximize capital returns and generate substantial cash flow. Earlier this month, I had the pleasure of being a keynote speaker at the well-attended 35th annual Produced Water Society conference in Houston. The main topic of focus for the conference is the industry's challenge dealing with over $23 million barrels per day of produced water in the Permian Basin.

展望2025年的供水和回流業務，我們預計收入將保持平穩，同時透過提高營運效率（包括自動化）來提高利潤率，使我們能夠最大限度地提高資本回報並產生大量現金流。本月初，我很榮幸成為休士頓第 35 屆年度生產水協會會議的主旨發言人。會議主要關注的議題是該產業如何應對二疊紀盆地每天價值超過 2,300 萬桶的採出水。

It is clear that downhole pool pressure in water disposable wells is filling up. Disposable pressures are increasing, and potentially more regulatory restrictions are coming. The best long-term solution for this problem is reducing the volumes of water for disposal and desalinating the water for beneficial reuse, including industrial agriculture, and irrigation purposes. I discussed Tetra's commercial offering Tetra Oasis Total Desalination Solution, or TDS as a comprehensive end to end desalination solution for beneficial reuse and emphasized the added benefit of recovering essential minerals from produced water as part of the process.

顯然，水處理井的井下池壓力正在增加。一次性用品的壓力正在增加，而且可能會有更多的監管限制出台。解決這個問題的最佳長期方法是減少廢水量，並對水進行淡化以便進行有益的再利用，包括工業農業和灌溉用途。我討論了 Tetra 的商業產品 Tetra Oasis 全海水淡化解決方案 (TDS)，作為一項全面的端到端海水淡化解決方案，以實現有益的再利用，並強調了作為該過程的一部分從采出水中回收必需礦物質的額外好處。

Our recent announcement of Tetra Oasis PDS has been very well received, and our blue-chip customer engagement continues to grow broader and deeper. Although we expect favourable gas prices will contribute to pockets of increased activity in 2025, we will limit our capital investment to automating our current business assets and expect to deploy multiple pilot projects for desalination.

我們最近發布的 Tetra Oasis PDS 獲得了廣泛好評，我們與藍籌客戶的合作也不斷擴大和深入。儘管我們預計有利的天然氣價格將有助於 2025 年部分地區的活動增加，但我們將限制資本投資，以實現現有業務資產的自動化，並期望部署多個海水淡化試點項目。

In total, we're expecting a very strong start to the year in 2025. The combination of a strong Gulf of Mexico market, three well Neptune project, the start of the Brazil Deepwater work, increased EOS electrolyte deliveries, and our seasonal second quarter European peak has us projecting a significant year over year increase in both revenue and EBITDA in the first half of 2025, as detailed in our Q4 press release.

總的來說，我們預計 2025 年將有一個非常強勁的開局。墨西哥灣市場的強勁表現、海王星計畫的三口井、巴西深水作業的啟動、EOS 電解質交付量的增加以及我們第二季度歐洲的季節性高峰，這些因素綜合作用，讓我們預計 2025 年上半年的收入和 EBITDA 都將同比大幅增長，正如我們在第四季度新聞稿中所述。

We project net income before taxes between $19 million and $34 million dollars and adjust the EBITDA between $55 million and $65 million dollars for the first half of 2025, levels approaching or exceeding a 10-year record high for the company.

我們預計 2025 年上半年的稅前淨收入將在 1,900 萬美元至 3,400 萬美元之間，並將 EBITDA 調整為 5,500 萬美元至 6,500 萬美元之間，接近或超過公司 10 年來的最高紀錄。

Moving on to our strategic initiatives regarding our roaming Arkansas project, we have secured power for the project. We've completed the plus or minus 10% front end engineering design and prepared the plant site for the next phase of construction. As communicated previously, we're in discussions with multiple elemental bromine suppliers for a bridging supply agreement. The purpose of the bridging supply would give us more flexibility on timing for capital spend, give us more opportunity to accumulate cash from operations, and allow us to execute a staged approach targeting initial roaming production of approximately two third' s of the published definitive feasibility study volumes.

繼續執行我們關於漫遊阿肯色州項目的戰略舉措，我們已經為該項目確保了電力。我們已經完成了±10%的前端工程設計，並為下一階段的建設做好了工廠場地準備。正如之前所傳達的，我們正在與多家元素溴供應商討論過渡供應協議。過渡性供應的目的是讓我們在資本支出的時間安排上擁有更大的靈活性，讓我們有更多機會從營運中累積現金，並允許我們採取分階段的方法，將初始漫遊生產定為已發布的最終可行性研究量的三分之二左右。

To ensure that we find the most capital efficient alternative, we're also exploring scenarios where we could dovetail our upstream operations and investments. With our lithium neighbours, which could significantly reduce our overall project capital investment. We will continue to communicate our progress and actions with this critical long-term low-cost roaming supply investment as we achieve various milestones. For our lithium opportunity and project, we and our partners have completed the plus or minus 10% feed studies as well. We believe the lithium capEx from the plant could be more competitive than current hard rock mining operations, but as owners of 65% of the lithium resources in our evergreen unit, we're waiting for the royalty decision and a firm review of future lithium prices before publishing financial studies.

為了確保找到最具資本效率的替代方案，我們也正在探索能夠將我們的上游營運和投資結合的方案。與我們的鋰鄰居合作可以顯著減少我們的整體專案資本投資。隨著我們實現各種里程碑，我們將繼續傳達我們在這項關鍵的長期低成本漫遊供應投資方面的進展和行動。對於我們的鋰機會和項目，我們和我們的合作夥伴也完成了正負 10% 的飼料研究。我們相信，該工廠的鋰資本支出可能比目前的硬岩採礦業務更具競爭力，但作為我們常青單位 65% 鋰資源的所有者，我們正在等待特許權使用費決定和對未來鋰價格的嚴格審查，然後再發布財務研究。

Longer term, we anticipate a rebound in lithium prices that will support our increased investment in supply, particularly from the US. Our team, along with our Evergreen unit partners remain focused on completing all necessary engineering studies to fully define the economics of this opportunity.

從長遠來看，我們預計鋰價將反彈，這將支持我們增加對供應的投資，尤其是來自美國的投資。我們的團隊和我們的 Evergreen 單位合作夥伴將繼續致力於完成所有必要的工程研究，以充分確定此機會的經濟效益。

In the meantime, we're prioritizing strategic initiatives that can immediately impact our near term results. These initiatives include deploying CS Neptune in the Gulf of America, shipping tetra pure flow to EOS Energy Enterprises, and further advancing our water desalination commercial pilot units initiatives that we expected to evolve into longer term contracts for commercial desalination plants. Now I'll turn over to Elijio to provide some additional commentary on successful financing on our financial results, then we'll open it up for questions.

同時，我們正在優先考慮能夠立即影響我們近期業績的策略性舉措。這些舉措包括在美國灣部署 CS Neptune、向 EOS Energy Enterprises 運送四純流，以及進一步推進我們的海水淡化商業試點單位計劃，我們預計這些計劃將發展為商業海水淡化廠的長期合約。現在，我將請 Elijio 就成功融資對我們的財務表現提供一些補充評論，然後我們將開始提問。

Thank you, Brady. In the 4th quarter, we booked a favourable adjustment to the valuation allowance for our deferred taxes. We've mentioned in the past that we have tax laws carried forward that can offset taxable income in the United States. We had previously established a reserve against that asset given our prior uncertainty in the timing of using those NOLs or net operating loss carried forwards.

謝謝你，布雷迪。在第四季度，我們對遞延稅項的估值準備金進行了有利的調整。我們過去曾提到過，我們有可以抵銷美國應稅收入的稅法。由於我們先前對於使用這些淨營業虧損或結轉淨營業虧損的時間存在不確定性，我們先前已針對該資產建立了儲備金。

Our taxable income in the United States over the past three years has been almost $100 million following the recovery from COVID and strong performance of our US business. Without the NOL, we would have likely paid over $20 million in US cash income taxes in the past three years.

隨著新冠疫情的復甦和美國業務的強勁表現，過去三年我們在美國應稅收入已接近 1 億美元。如果沒有 NOL，我們在過去三年中可能要繳納超過 2000 萬美元的美國現金所得稅。

Given the three-year cumulative profits, we performed an analysis, and we reviewed our projections with our auditors and came to the conclusion. That there's a high likelihood that we will be using our NOLs in the coming years. Therefore, we eliminated the valuation allowance we had previously established. Our NOLs can offset approximately $345 million of US taxable income in the coming years. And save us approximately $97.5 million of cash taxes in the United States.

考慮到三年的累積利潤，我們進行了分析，並與審計師審查了我們的預測並得出結論。我們很有可能在未來幾年使用我們的 NOL。因此，我們取消了先前設立的估值準備金。我們的淨營業虧損可在未來幾年抵銷約 3.45 億美元的美國應稅收入。並為我們節省了美國約9750萬美元的現金稅。

This assessment and adjustment reflect our confidence in the performance of our US business driven by the strong activity in the Gulf of America. Our strong US calcium chloride business in the US. Profitability, profitable results from a US onshore oil and gas business, and the growing long duration battery electrolyte business. On a go forward basis with modelling our projections, one should assume a tax rate of between 31% to 33% in computing tetra net income and earnings per share.

這項評估和調整反映了我們對美國業務表現的信心，這得益於美國灣的強勁活動。我們在美國擁有強大的氯化鈣業務。獲利能力、美國陸上石油和天然氣業務的獲利結果以及不斷增長的長效電池電解質業務。在對我們的預測進行建模的基礎上，在計算四淨收入和每股收益時，應該假設稅率在 31% 到 33% 之間。

However, our cash taxes will only be around $6 million to $7 million per year for taxes we pay overseas. We'll provide periodic updates on how rapidly we are using our deferred tax assets to offset the $345 million of NOLs. The more profitable we become in the United States, the higher the fall through is to cash flow from utilizing our NOL. For example, we mentioned that we sold our investment in Kodiak in the first quarter for approximately $19 million. The tax bases for our shares in Kodiak were quite low and therefore we realized the entire $19 million in cash proceeds by partially using our NOL without any taxes due to that capital gain.

然而，我們在海外繳納的現金稅每年只有約 600 萬至 700 萬美元。我們將定期更新我們使用遞延稅務資產抵銷 3.45 億美元 NOL 的速度。我們在美國獲得的利潤越多，利用 NOL 對現金流造成的損失就越大。例如，我們提到我們在第一季以約 1900 萬美元的價格出售了對 Kodiak 的投資。我們在 Kodiak 的股份的稅基很低，因此我們透過部分使用我們的 NOL 實現了全部 1900 萬美元的現金收益，並且由於該資本收益而無需繳納任何稅款。

On cash flow, we made significant investment in fixed assets and inventory for our offshore business. Those CapEx and working capital investments were higher than what we would normally have made. They contribute to a slightly negative base business free cash flow in 2024. Those were those investments were to prepare us for the CS Neptune 3 well project. And the Brazil multi-we multi-year project are expected to contribute to a strong free cash flow in the first half of 2025.

在現金流方面，我們對離岸業務的固定資產和庫存進行了大量投資。這些資本支出和營運資本投資高於我們通常的投資水準。它們導致 2024 年基礎業務自由現金流略為負值。這些投資是為了讓我們為 CS Neptune 3 井專案做好準備。巴西多年期計畫預計將在 2025 年上半年貢獻強勁的自由現金流。

For 2025 we expect interest expense of approximately $20 million. Capital expenditures for the base business of between $30million and $35 million dollars, which are below the amounts of 2024. And as I mentioned, cash taxes of approximately $6 million to $7 million. Depending on your assumptions for our total year 2025 EBITDA, we have the opportunity to generate over $50 million of free cash flow in 2025 from the base business.

我們預計 2025 年的利息支出約為 2,000 萬美元。基礎業務的資本支出在 3,000 萬美元至 3,500 萬美元之間，低於 2024 年的金額。正如我所提到的，現金稅約為 600 萬至 700 萬美元。根據您對我們 2025 年全年 EBITDA 的假設，我們有機會在 2025 年從基礎業務中產生超過 5000 萬美元的自由現金流。

We provided guidance for the first half of 2025 as we believe that when others in the industry are looking at weaker first half, 2025 results versus the second half of 2024, we are we are showing a strong sequential improvement in our adjusted EBITDA.

我們提供了 2025 年上半年的指引，因為我們相信，當業內其他公司認為 2025 年上半年的業績較 2024 年下半年疲軟時，我們的調整後 EBITDA 卻顯示出強勁的連續改善。

Our first half projections are underpinned by the Three Well Neptune project. The start of the Brazil Deepwater project. Our seasonally strong European calcium chloride business and the continuing improvements in the other businesses. On the Neptune project, the first wall has been completed and will soon shift fluid to the second well.

我們上半年的預測以海王星三井計畫為基礎。巴西深水計畫啟動。我們的歐洲氯化鈣業務季節性強勁，其他業務持續改善。在海王星計畫中，第一道牆已經完工，很快就會將流體轉移到第二口井。

The timing of the projects between the first quarter and the second quarter are uncertain, and that is why we gave first half of the year guidance instead of guidance individually for the first or second quarters. With respect to Arkansas, we reduced our investments in Arkansas in the fourth quarter to less than $1 million. From the free cash flow being generated from the base bid that we will make a determination of how much of that we will spend in Arkansas in 2025. As Brady mentioned, we're looking for the most cap li solution to source additional effective volumes, cost-effective roaming volumes to meet our deep water demands and to meet the ramp up in electrolytes required by EOS.

第一季和第二季之間的專案時間尚不確定，這就是為什麼我們給出了上半年的指導，而不是分別針對第一季或第二季提供指導。就阿肯色州而言，我們在第四季將對阿肯色州的投資減少至不到 100 萬美元。根據基礎投標產生的自由現金流，我們將確定 2025 年在阿肯色州的支出金額。正如布雷迪所提到的，我們正在尋找最具上限的解決方案來獲取額外的有效容量和具有成本效益的漫遊容量，以滿足我們的深水需求並滿足 EOS 所需的電解質需求。

If we source adequate volumes in the immediate years, we will delay or defer building a broing plant in Arkansas, or we'll space it out over multiple years, allowing us to fund it from the base business free cash flow without taking on any debt. Our objective is to keep our leverage ratio below two times and invest with base business free cash flow. As we make progress on our roaming bridging agreements, we will communicate what firm arrangements have been agreed upon in the meantime, we'll continue to negotiate for the best alternatives. At the end of December, cash on hand was $37 million and to liquid as of yesterday was almost $207 million.

如果我們在未來幾年採購到足夠的數量，我們將推遲或延期在阿肯色州建造一個滾筒廠，或者我們將把它分散到多年時間，這樣我們就可以從基礎業務自由現金流中為其提供資金，而無需承擔任何債務。我們的目標是將槓桿率保持在兩倍以下，並利用基礎業務自由現金流進行投資。隨著我們的漫遊橋接協議取得進展，我們將傳達已達成的確定安排，同時，我們將繼續協商以尋求最佳替代方案。截至 12 月底，庫存現金為 3,700 萬美元，截至昨日的流動現金已接近 2.07 億美元。

We sold our Kodiak shares at a near record high. For Kodiak's share price and above yesterday's closing price. This is the second time that we've been able to appropriately time the sale of shares that we've held in publicly traded companies. I'll turn this back over to Brady for closing comments before we open it up to questions.

我們以接近歷史最高價出售了科迪亞克股票。對科迪亞克的股價來說，也比昨日的收盤價高。這是我們第二次能夠適時出售所持有的上市公司股票。在我們開始提問之前，我會把這個問題交還給布雷迪，請他發表最後評論。

Thank you, Elijio. As you can see, we're very excited about what we have in front of us as we enter 2025. We're pleased with the decisions that we've made for the business in the past few years that sometimes take patience but are paying off in a big way. Expanding our deepwater presence and market share in key markets, staying diligent. On the Neptune pipeline of projects that slowed to a crawl during COVID but are now moving forward, expanding our core aqueous chemistry in the long duration energy storage electrolyte and focusing on produced water treatment and recycling. All of these are paying off in the first half of 25 and beyond. But still to come is the benefit of expanding our water recycling offering for desalinating produced water. Positioning ourselves for a high volume low cost supply of bromine to meet our growing opportunities and developing partnerships for future lithium production. With that, we'll open the call for questions.

謝謝你，Elijio。如您所見，我們對 2025 年即將面臨的一切感到非常興奮。我們對過去幾年為業務所做的決策感到滿意，這些決策有時需要耐心，但卻能帶來巨大的回報。擴大我們在主要市場的深水業務和市場份額，保持勤奮。海王星專案管道在新冠疫情期間進展緩慢，但現在正在向前推進，擴大我們在長時儲能電解質中的核心水性化學，並專注於採出水的處理和回收。所有這些都將在 25 年上半年及以後得到回報。但擴大我們的水循環利用服務以淡化採出水的效益仍有待觀察。我們致力於以低成本提供大量溴，以滿足我們日益增長的機遇，並為未來的鋰生產建立合作關係。接下來，我們將開始提問。

Thank you, ladies and gentlemen, we will now begin the question-and-answer session. [operator instruction]

謝謝女士們、先生們，我們現在開始問答環節。[操作員指令]

And we will now take the first question. And this comes from the line of Kurt Stroyer from a benchmark company. Please go ahead your lines now.

現在我們來回答第一個問題。這是來自一家基準公司的 Kurt Stroyer 的觀點。現在請繼續你們的隊伍。

Great. Hey, good morning, guys. Thanks for that summary, hey, Brady, question for you, right? There's been a lot of, other fitness starts and maybe some, frustrations with respect to, timing on some of these emerging growth opportunities that you guys have, over the past year kind of year or so, right, so as you kind of, maybe rub off the crystal ball a little bit here for 2025. And as we've had, follow on discussions with a number of different potential customers or whether it's water desal or what's going on with the electrolytes. How do you kind of think about the evolution of those businesses for this year and which one do you think, without giving specific numbers around it, but which one do you think has the opportunity to have some element of a meaningful contribution to the 2025 results?

偉大的。嘿，大家早安。謝謝你的總結，嘿，布雷迪，你問這個問題，對吧？在過去一年左右的時間裡，你們在新興成長機會的時機上遇到了許多其他健身新創公司的挫折，所以，你們或許可以藉此預測 2025 年的前景。正如我們之前所做的那樣，我們與許多不同的潛在客戶進行了討論，討論的主題包括海水淡化或電解質的進展。您如何看待這些業務今年的發展？您認為哪一項業務​​有機會對 2025 年的業績做出有意義的貢獻？雖然我不願意給出具體的數字。

Yes, thanks, Kurt. So, I mean, clearly in the first half of 2025 we're seeing some of the benefits of these longer-term projects that we've been pursuing. I mean, obviously CF Neptune is something we've done in the past, but we've been talking about the pipeline of projects that we've been tracking, and now that's coming into focus and fruition for us. EOS, I don't want to speak for them, but if you look at their, I think their investor presentation in January, they're projecting to meaningfully ramp up their volumes of their batteries and obviously that's material for us as we go through 2025.

是的，謝謝，庫爾特。所以，我的意思是，顯然在 2025 年上半年，我們將看到我們一直在追求的這些長期項目的一些好處。我的意思是，顯然 CF Neptune 是我們過去做過的事情，但我們一直在談論我們一直在追蹤的專案管道，現在這些專案開始成為我們的焦點並取得成果。EOS，我不想代表他們發言，但如果你看一下他們在一月份的投資者演示，他們計劃大幅增加電池產量，顯然這對我們到 2025 年來說很重要。

On the water desal, we know this is a long-term venture. We are very encouraged with the blue-chip customers that we're in discussions with. As we've said before, we will be operating several pilots in 2025. We think that that's where the industry is at right now is that we will be one of several providers operating pilot operations in 2025, but we really don't expect Commercial scale type of desalination for beneficial reuse projects until we get into 2026. That's our current expectation.

關於海水淡化，我們知道這是一項長期的事業。我們對正在與藍籌客戶進行洽談感到非常鼓舞。正如我們之前所說，我們將在 2025 年開展多項試點。我們認為，目前該行業的情況是，我們將成為 2025 年開展試點運營的幾家供應商之一，但我們真的不期望在 2026 年之前實現商業規模的海水淡化，以實現有益的再利用項目。這是我們目前的期望。

But again, couldn't be happier with the quality of the blue-chip customers we're discussing since we've last talked around our 7 NDAs with major operators in the Permian, we've extended that to a new major midstream player. As they're clearly looking at this as part of their future offering. So that's kind of the cadence, Kurt, that I would respond to. The longer term, we're still, very much intent on getting our bromine plant constructed.

但是，自從我們上次與二疊紀盆地的主要營運商討論 7 份保密協議以來，我們對所討論的藍籌客戶的品質感到非常滿意，我們已將其擴展到一家新的大型中游參與者。因為他們顯然將此視為其未來產品的一部分。所以這就是我要回應的節奏，寇特。從長遠來看，我們仍然非常熱衷於建造我們的溴工廠。

As Elijio said, we are looking at some alternatives to make sure we can fund that through our own cash flow. That may mean deferring a little bit, that may mean getting some additional supply arrangements in place that will allow us to give us a few more years. To accumulate cash from operations, but once that plan is in operation, it is going to be a tremendous benefit, not just for the volumes of bromine, but the cost of the bromine, low cost of the bromine that we will be able to access and then of course lithium following that. So, you know that's kind of the cadence, Kurt, we're pleased where we're at and we see a bright future ahead.

正如 Elijio 所說，我們正在尋找一些替代方案，以確保我們能夠透過自己的現金流來為此提供資金。這可能意味著稍微推遲一下，這可能意味著要製定一些額外的供應安排，以便我們可以再多幾年時間。透過營運累積現金，但一旦該計劃投入運營，它將帶來巨大的利益，不僅僅是溴的數量，還有溴的成本，我們將能夠獲得的溴的低成本，當然還有鋰。所以，你知道這是一種節奏，庫爾特，我們對目前的狀況感到滿意，並且看到了光明的未來。

That's great. I appreciate that colour, Brady. Now, for Olio, if you going to take the numbers you provided in terms of, free cash flow and back that up into, EBITDA, that would get you to at least $100 million of EBITDA on a full year basis, right? You're looking at something around $60 million in the first half, so that would suggest at least right, $40 million in in the back half. What are the what are the variances, as you look into the second half of the EUR that could. I mean you got it differently. You have high degree conviction in that and at least$40 million in the back half and what could be the variances that could push you higher than that.

那太棒了。我很欣賞那個顏色，布雷迪。現在，對於 Olio，如果您要將您提供的自由現金流數字轉換為 EBITDA，那麼全年的 EBITDA 將至少達到 1 億美元，對嗎？您所看到的是上半年的收入約為 6,000 萬美元，因此這意味著下半年的收入至少為 4,000 萬美元。當你觀察歐元下半年可能出現的情況時，差異是什麼？我的意思是你理解得不一樣。您對此有高度的信心，並且後半部分至少有 4000 萬美元，還有什麼差異可以推動您實現更高的目標。

Yes, we don't traditionally provide guidance as Kurt, unless we're moving in a direction different from the rest of the industry. In the first half, we clearly have visibility with the best backlog that we've had in the company's history on the offshore side. We're very comfortable with what's occurring in the first half of the year by those projects. I think it's foolish to believe that anyone in the industry has full visibility to what's going to happen in the second half of the year. But with the initiatives that we have with the Deepwater projects including the Brazil multiyear program, the ramp up of electrolyte sales that we have a high degree of confidence is occurring, plus all the initiatives that we've taken, we think that we'll continue to perform better than the industry and Brady mentioned that for the full year, we expect high single digits, low double digits, top line growth. And we think our margins will continue to hold in the range that we're at, if not slightly above that.

是的，我們傳統上不會像庫爾特那樣提供指導，除非我們朝著與行業其他部分不同的方向發展。在上半年，我們清楚地看到了公司在離岸方面歷史上最好的積壓訂單。我們對這些項目上半年的進展感到非常滿意。我認為相信業內任何人都能完全了解下半年將會發生什麼事是愚蠢的。但是，隨著我們在深水項目（包括巴西多年期計劃）中採取的舉措，我們高度相信電解質銷售正在增加，再加上我們採取的所有舉措，我們認為我們的表現將繼續優於行業，布雷迪提到，對於全年而言，我們預計營收將實現高個位數、低兩位數的增長。我們認為我們的利潤率將繼續保持在目前的範圍內，甚至略高於這一水平。

Appreciate that thank you guys.

非常感謝你們。

Thanks, Kurt.

謝謝，庫爾特。

John, you want to bring on the next question?

約翰，你想提出下一個問題嗎？

Yes, sir. Thank you. I will now take the next question, and this comes from the line of Tim Moore from Clear Street. Please go ahead.

是的，先生。謝謝。我現在回答下一個問題，這個問題來自 Clear Street 的 Tim Moore。請繼續。

Oh, thanks so much. I really like the branding of your desalination Oasis solution, done a lot of analysis on that, but I'm just wondering, Brady mentioned, I think you mentioned maybe 7 NDAs and maybe that midstream potential customer. I'm just wondering what is your capacity for Pilot count this year? I mean, can you do 4 or 5 pilots and is there any constraints, on the side from KMX or Hire their side?

哦，非常感謝。我真的很喜歡你們的海水淡化 Oasis 解決方案的品牌，對此做了很多分析，但我只是想知道，Brady 提到過，我認為您提到了可能有 7 個 NDA 以及那個中游潛在客戶。我只是想知道今年你們的飛行員數量是多少？我的意思是，您能搭載 4 或 5 名飛行員嗎？ KMX 或 Hire 方面有什麼限制嗎？

Right, yes, good morning, Tim. Yes, so the lead time for the pilots really is predominantly based on the high rec membrane system or the KMex membrane systems. We are obviously in very close communication with both of them, and as I said, we are actually confident enough where we are right now to be placing orders for additional pilot units for the year in 2025. If we had to start from scratch and get additional, pilots say in mid-year, that might be a stretch to get them into the year in 2025, but we've got some room between now and then to add to that capacity.

是的，早上好，提姆。是的，因此試驗的準備時間實際上主要取決於高回收率膜系統或 KMex 膜系統。我們顯然與他們兩家都保持著非常密切的溝通，正如我所說，我們現在有足夠的信心在 2025 年訂購更多的試點單位。飛行員表示，如果我們必須從零開始並在年中增加容量，那麼到 2025 年可能就會有些困難，但從現在到那時我們還有一些空間來增加容量。

That's helpful commentary, rating. And then just going back to your Brazil, the Deepwater multi-year program, I think investors clearly understand CS Neptune pretty well, but you know what, as you look out to next year and the potential for that program beyond this year, I mean, do you think the revenue contribution next year could be as large as this year and, probably larger than the North Sea usually?

這是很有幫助的評論和評級。然後回到你們在巴西的深水多年期計劃，我認為投資者清楚地了解 CS Neptune，但是你知道嗎，當你展望明年以及今年以後該計劃的潛力時，我的意思是，你認為明年的收入貢獻會和今年一樣大，並且可能比北海通常還要大？

Yes, the Brazil market is typically not a heavyweight brine market, but the contract that we have is in fact we're really the only heavy brine. A completion fluid provider in the Brazil market, so we're very well positioned with how we've positioned ourselves and the investments we've made there. So Yes, that's a 2 year contract. There's a number of wells that are due to be executed this year and next, so we think that'll be pretty evenly spaced out over the next two years, but we're really encouraged by, what we see as a trend for potentially heavier brine completion projects in Brazil and we'll see how they develop.

是的，巴西市場通常不是重量級的鹽水市場，但我們簽訂的合約實際上是唯一的重鹽水市場。作為巴西市場的完井液供應商，我們的定位和投資都非常有利。是的，這是一份為期兩年的合約。今年和明年將有多口井要實施，因此我們認為未來兩年​​內這些井的實施間隔會相當均勻，但我們真正感到鼓舞的是，我們看到了巴西潛在的更重鹽水完井項目的趨勢，我們將觀察它們如何發展。

That's great. And my only other question is the switching gears to the potential Bromine development project. You had commentary about, maybe getting close to finalizing the supply agreements. I'm just kind of curious, without putting words in your mouth, how long is maybe the lead time, many months lead time between, if the board does approve the brine project and you go forward with it versus kind of the plant startup construction. You know that 3 or 4 or 5 months just kind of curious.

那太棒了。我唯一的另一個問題是轉換潛在的溴開發項目。您曾評論說，供應協議可能即將敲定。我只是有點好奇，我不想強加於您，如果董事會確實批准了鹽水項目並且您繼續推進該項目，那麼與工廠啟動建設相比，準備時間可能是多長時間，可能需要幾個月的時間。你知道，3、4 或 5 個月只是有點好奇。

Yes, no, the lead time to get the full roaming project in place is longer than that, Tim. It's, but we've done quite a bit of work already. We've completed the engineering, as we've secured the plant site. We've prepared the plant site for the next days of construction. We've sourced the power. I mean, so we've made considerable progress advancing the bromine project. But at this point in time, we're not at a point where willing to definitively say when the project will be FID by our board. we're looking at some, options in terms of timing, as I said previously in terms of, we'd like to fund it through our own free cash flow, while we're monitoring the demand needs that we have and at this point in time, we're balancing that and we'll keep you posted as we get to a final investment decision.

是的，不，完成整個漫遊項目的準備時間比這要長，蒂姆。是的，但我們已經做了相當多的工作。我們已經完成了工程，因為我們已經確定了工廠地點。我們已經為接下來幾天的施工做好了工廠現場的準備。我們已經獲得了電力。我的意思是，我們在推進溴項目方面取得了相當大的進展。但目前，我們還不願意明確說明董事會何時會做出該專案的最終決定。我們正在考慮一些時間方面的選擇，正如我之前所說，我們希望透過自己的自由現金流來為其提供資金，同時我們正在監控我們的需求，目前，我們正在平衡這一點，我們會在做出最終投資決定後隨時向大家通報。

Oh great, Brady. Oh, thanks for that colour. That's my question.

哦，太好了，布雷迪。哦，謝謝你的顏色。這就是我的問題。

Thanks Tim.

謝謝蒂姆。

Thank you. And the next question comes from the line of Bobby Brooks from Northland Capital Markets. Please go ahead.

謝謝。下一個問題來自 Northland Capital Markets 的 Bobby Brooks。請繼續。

Hey, good morning, guys. Thank you for taking my question. So, I just wanted to start with the beneficial reuse project Oasis. I mean this is literally turning a waste stream into a scarce resource in a region that is desperate for more water, so I have to imagine that the demand for the recycled water, that can pass all types of wet testing is very high, especially when I think about conversations of data centres being co-located near Wellhead and along with the fact that data centres have a big demand for water as well. So just taking that all into account how are discussions with potential customers going and maybe could you compare that versus what those conversations were like last year is the announcement in mid-December of the commercial launch of Oasis is that, has that, created any more traction or different type of conversation with customers and you also, but I'll stop there and have a follow up.

嘿，大家早安。感謝您回答我的問題。所以，我只是想從有益的再利用專案 Oasis 開始。我的意思是，這實際上是將廢水流變成了一個急需更多水資源的地區的稀缺資源，因此我不得不想像，對能夠通過所有類型濕法測試的再生水的需求非常高，特別是當我想到數據中心位於 Wellhead 附近，而且數據中心對水的需求也很大時。因此，考慮到所有這些因素，與潛在客戶的討論進展如何，也許您可以將其與去年 12 月中旬宣布的 Oasis 商業發布進行比較，這是否產生了更多的吸引力或與客戶以及您之間的不同類型的對話，但我會就此打住並進行跟進。

Yes, sure, Bobby. I mean, the momentum is clearly building for this solution. The more discussions that we have with operators but remember this is also a fairly complex. A problem to solve and solution to put in place just because of the regulatory issues that come into play with this as well. You mentioned data centres and uses of the water. There's a logistics challenge that the operators have to work with as well because, once they or once we desalinate the water for beneficial reuse, there's got to be a logistics solution. To get that that beneficial water where it needs to be used. And so that's all part of the equation that is being worked on. There's no question in my mind the momentum is building.

是的，當然，鮑比。我的意思是，這項解決方案的勢頭顯然正在增強。我們與運營商進行了更多的討論，但請記住這也是相當複雜的。正是由於涉及監管問題，才需要解決這個問題並實施解決方案。您提到了資料中心和水的用途。營運商還必須應對物流挑戰，因為一旦他們或我們淡化海水以實現有益的再利用，就必須有一個物流解決方案。將有益的水送到需要的地方去使用。這就是正在研究的方程式的一部分。我毫不懷疑這種勢頭正在增強。

As I mentioned, I had the opportunity to speak at the Produced Water Society conference, and everyone's on the same page that this is, one of the highest priorities for the industry. And now it's just a question of working through the details, getting everybody comfortable with the quality of the product, the commercials of the projects, the regulatory framework, and the end use destinations for this. And when you throw it all together, it's, it takes time to work through this, but it's definitely coming.

正如我所提到的，我有機會在生產水協會會議上發言，每個人都一致認為這是該行業的最高優先事項之一。現在只需要解決細節問題，讓每個人都對產品的品質、專案的商業廣告、監管框架以及最終用途感到滿意。當你把所有事情放在一起時，雖然你需要花費一些時間，但肯定會成功。

Got it. And then just to follow up, you mentioned, expecting a couple different pilots to kick off this year. I just wanted to confirm it seems like none of those have one of the none of those have locked in yet, right? Those are still in discussions or have you actually locked in any of these pilots?

知道了。然後，為了跟進，您提到，預計今年將啟動幾個不同的試點計畫。我只是想確認一下，好像其中任何一個都還沒有鎖定，對嗎？這些仍在討論中，還是你們實際上已經確定了其中任何一項試點？

I would say, our confidence level is extremely high for multiple pilots, the biggest started in the first half of 2025.

我想說，我們對多個試點計畫充滿信心，其中規模最大的一個試點計畫將於 2025 年上半年開始。

Got it. And then so you had three Neptune job wins in 2024, internally how many shots on that per se are you guys mapping out on Neptune opportunities in 2025? Does the first half guy bake in any additional wins?

知道了。那麼，你們在 2024 年贏得了三項海王星工作，從內部來看，你們對 2025 年海王星機會的規劃有多少？上半場的球員是否還贏得了任何額外的勝利？

Yes did you say the first half of 2025?

是的，您說的是 2025 年上半年嗎？

Yes, just like that first half guide, is there any, is it just, are you guys baking in any additional Neptune wins into that and more broadly, and then more broadly.

是的，就像上半部的指南一樣，有沒有，有沒有，你們是否將任何額外的海王星勝利融入其中，以及更廣泛地，然後更廣泛地。

Okay, so 2025 really the first half of 2025 that we've got it on really. Includes the three well project that we have ongoing right now in the Gulf of America. I mean we do have, as we mentioned quite a few times, a pipeline of projects that we track, we're engaged with customers and as those projects move forward, we don't really want to announce any of those projects until we're actually given the award and we have the kind of a definitive drill time for those wells. But, the pipeline is clearly more visible and clear to us than it's been in a very long time, certainly since COVID.

好的，那麼 2025 年實際上就是我們真正實現這一目標的 2025 年上半年。包括我們目前在美國灣正在進行的三個油井專案。我的意思是，正如我們多次提到的那樣，我們確實有一系列正在追蹤的項目，我們正在與客戶接觸，隨著這些項目的推進，我們實際上並不想宣布任何項目，直到我們真正獲得合約並且確定這些油井的鑽探時間。但是，與很長一段時間以來（尤其是自 COVID 以來）相比，這條管道對我們來說顯然更加清晰可見。

Okay, and then just like talking about that pipeline, I can appreciate you guys not wanting to give any colour on it before, counting your chickens before they hatch, but just like high level is the if you had, let's say if you had 5 opportunities in 2024 for Neptune jobs, is the opportunities for Neptune jobs in 2020 is that like double this year? Is it or is it kind of the same pace just trying to get a sense of like the size of that pipeline.

好的，然後就像談論那個管道一樣，我可以理解你們之前不想對它做出任何評論，而是在未孵化之前就打定主意，但就像高層一樣，假設你在 2024 年有 5 個海王星工作機會，那麼 2020 年海王星工作機會是否會比今年翻一番？它是或它是以相同的速度只是想了解管道的大小。

Yes, I wouldn't say the timing of these projects are going to double year on year, but they will definitely our expectation is they will increase year on year.

是的，我不會說這些項目的時間會逐年翻一番，但我們的預期是它們肯定會逐年增加。

Got it. I appreciate it. Thank you guys. Congrats on the great 2024 results and I'll return to the queue.

知道了。我很感激。謝謝你們。恭喜您在 2024 年取得優異成績，我會重返隊伍。

Thank you, Bobby.

謝謝你，鮑比。

Thank you. And the next question comes from the line of Stephen Jangaru from Stifo. Your line is now open. Please go ahead.

謝謝。下一個問題來自 Stifo 的 Stephen Jangaru。您的線路現已開通。請繼續。

Thanks. Good morning, everybody.

謝謝。大家早安。

Morning, Stephen.

早安，史蒂芬。

So, a couple for me, I think maybe the first just to follow up on the previous question. So, over the last, I don't know, 5, 6, 7 years, the CS Neptune work has, we sort of thought about as sort of episodic, and obviously a big plus when it happened, but not kind of part of our model because they were kind of few and far between and that seems to be changing. So maybe another way to ask the prior questions when we think about 2025, 2026, 2027, like at a high level, given the activity level of deep work, can we think about that business and that product line being kind of a more consistent contributor on either a quarterly or half year basis? Like how do we think about it at the higher level?

所以，對我來說有幾個問題，我想也許第一個問題只是為了跟進上一個問題。所以，在過去的 5、6、7 年裡，CS Neptune 的工作，我們有點把它看作是偶發性的，當它發生時顯然是一個很大的優勢，但它並不屬於我們的模型，因為它們很少見，而且這種情況似乎正在改變。因此，當我們考慮 2025 年、2026 年、2027 年時，也許可以用另一種方​​式來提出前面的問題，例如在高層次上，考慮到深度工作的活動水平，我們是否可以認為該業務和該產品線在季度或半年的基礎上成為更一致的貢獻者？例如，我們如何從更高層次思考這個問題？

Yes absolutely, Stephen, just remind our followers, the last CS Neptune job in the Gulf of America that we executed was the 4th quarter of 2019 before the current jobs that we have ongoing, and of course right after the 4th quarter of 2019, COVID hit. And as I said, when COVID hit in 2020 and 2021, we essentially lost two years of that pipeline coming to pretty much a halt. Started, we saw it started moving again in 2022 and 2023. And so now as that pipeline moves forward, and more Gulf of America will start going into the lower tertiary. Which are the high pressure, high temperature, sweet spot for CS Neptune. We absolutely believe that the future of CS Neptune projects will increase, and we're also getting some attraction now in deep water markets outside of the Gulf of Mexico. We've been successful in the UK. And Norway to some degree, but those have typically been smaller jobs, but now we are getting visibility of larger scale projects outside of the Gulf of Mexico. And so yes, I would fully expect our CS Neptune projects and work to be certainly at a faster cadence than where we have been.

是的，史蒂芬，請提醒我們的追蹤者，我們在美國灣執行的最後一次 CS Neptune 工作是在 2019 年第四季度，在我們正在進行的當前工作之前，當然就在 2019 年第四季度之後，COVID 來襲。正如我所說，當 2020 年和 2021 年新冠疫情來襲時，我們基本上失去了兩年的管道，幾乎陷入停滯。開始時，我們看到它在 2022 年和 2023 年再次開始移動。現在，隨著管道向前推進，更多的美國灣石油將開始進入第三紀下層。這些是 CS Neptune 的高壓、高溫最佳點。我們堅信 CS Neptune 計畫的未來將會成長，而且我們現在在墨西哥灣以外的深水市場也獲得了一些吸引力。我們在英國取得了成功。挪威也在一定程度上參與其中，但這些通常都是一些規模較小的項目，但現在我們正在了解墨西哥灣以外更大規模的項目。是的，我完全相信我們的 CS Neptune 專案和工作肯定會比以前更快進展。

Okay, good. Now, thank you. That's good colour. The other two quick questions were one when we think about the sort of the history of the company, you've done a good job sort of simplifying the structure to two really core businesses. And I know in the past, there's Obviously the floors business, at least in our view, is sort of the gem, right? And I know the desalination efforts out there, but when you think about the structure of the company like two or three years out, do you think there's any kind of material changes to fund operations and roaming, etc. Do you think we're kind of looking at the structure of the company, two years out will be similar to where we are now.

好的，很好。現在，謝謝你。這顏色真好。另外兩個簡單的問題是，當我們思考公司的歷史時，你們在將結構簡化為兩個真正核心的業務方面做得很好。我知道在過去，地板業務顯然是寶石，至少在我們看來是這樣，對吧？我知道那裡正在進行海水淡化工作，但是當您考慮兩三年後的公司結構時，您認為在資金運營和漫遊等方面會發生任何重大變化嗎？您認為我們正在研究公司的結構，兩年後的公司結構會與現在相似嗎？

When you say the structure of the company, I think if I look at our business, further years out, Stephen, the way we think about it, our industrial chemicals business, certainly including our electrolyte. That piece of our business is going to continue to be a larger and larger piece of our business, particularly when we bring on the additional brooming from the plant and future lithium. So, when you throw all of those together, we will have a material portion of our business that will be, a chemical, industrial products type of business.

當您談到公司的結構時，我想如果我看一下我們的業務，未來幾年，史蒂芬，我們會考慮我們的工業化學品業務，當然包括我們的電解質。這部分業務將繼續成為我們業務中越來越大的一塊，特別是當我們從工廠和未來的鋰中引入額外的清潔能源時。因此，當你把所有這些放在一起時，我們的業務中很大一部分將是化學、工業產品類型的業務。

I think the deep-water market has got a lot of legs for quite a few years so our energy services completion fluids business will still be a very core part of our business. I think our water and flowback business will morph into a desalination business. And so, I think our traditional, water transfer, some of those types of services that we offer. We may morph into something differently than what we are today, but the desal will clearly be a part of that. So those are kind of the three future segments down the road that we see in the company.

我認為深水市場已經發展了好幾年，因此我們的能源服務完井液業務仍將是我們業務的核心部分。我認為我們的水和回流業務將轉變為海水淡化業務。所以，我認為我們的傳統水轉移是我們提供的一些類型的服務。我們可能會變成與今天不同的樣子，但海水淡化顯然是其中的一部分。這些就是我們在公司中看到的三個未來細分市場。

Great. Now, that's great colour. And then just the final one the Well, when we think about shipments to EOS, and obviously EOS seems to be on the cusp of very robust growth can you give us a sense like when you're thinking about, so like what's the time frame that you recognize and ship revenue Versus when they're able to ship product.

偉大的。瞧，顏色真棒。然後是最後一個，好吧，當我們考慮對 EOS 的出貨量時，顯然 EOS 似乎正處於非常強勁的增長的邊緣，您能否告訴我們您在考慮什麼，那麼您確認和運送收入的時間範圍是多少，以及他們何時能夠運送產品。

So, Steven, I'll take that one we ship or pure flow electrolyte from West Memphis to Turtle Creek, which is about a 6-to-8-hour drive away. We book revenue when the product leaves our facility and sell it to EOS at that point. I think one of the nice arrangements that we have with EOS is that we can produce product real time for them just in time production, and they're likely buying at or within a few weeks of when they put it into the battery. They're giving us a rolling forecast. They're giving us rolling visibility. So, I would suggest that we've got good insight in terms of how they're doing and how much they need and when. So, within a month after we after we ship it, we think our fluid goes into their batteries.

所以，史蒂文，我會把我們運送的純流電解液從西孟菲斯運送到龜溪，大約需要 6 到 8 小時的車程。當產品離開我們的工廠並將其出售給 EOS 時，我們會記錄收入。我認為我們與 EOS 達成的一項很好的協議是，我們可以為他們即時生產產品，而他們很可能會在將產品放入電池時或幾週內購買。他們正在向我們提供滾動預報。它們為我們提供了滾動可見性。因此，我認為我們應該深入了解他們的狀況、需要多少援助以及何時需要。因此，我們認為，在我們發貨後的一個月內，我們的液體就會進入他們的電池中。

Okay, great. That, that's good details. Thanks, Elijio and thanks, brady.

好的，太好了。那，那細節很好。謝謝 Elijio，謝謝 Brady。

Sure, thanks, Steve.

當然，謝謝，史蒂夫。

Thank you. No further questions at this time. I'll hand the call back over to Brady Murphy. Please go ahead, sir.

謝謝。目前沒有其他問題。我會把電話轉回給布雷迪·墨菲。先生，請繼續。

Well, thank you very much for your interest. As you can see, we're very excited about our 2025 future and beyond. So, thank you for joining us this morning for our call.

嗯，非常感謝您的關注。如您所見，我們對 2025 年及以後的未來感到非常興奮。所以，感謝您今天早上參加我們的電話會議。

Thank you. This concludes our conference for today. Thank you all for participating. You may now disconnect.

謝謝。今天的會議到此結束。感謝大家的參與。您現在可以斷開連線。