Tetra Technologies Inc (TTI) 2020 Q2 法說會逐字稿

Good day, and welcome to the TETRA Technologies, Inc. Second Quarter 2020 Results Conference Call. (Operator Instructions) Please note, this event is being recorded.

美好的一天，歡迎來到 TETRA Technologies, Inc.。2020 年第二季業績電話會議。（操作員說明）請注意，正在記錄此事件。

I would now like to turn the conference over to Jacek Mucha. Please go ahead.

我現在想把會議交給雅采克·穆查 (Jacek Mucha)。請繼續。

Thank you, Ian. Good morning, and thank you for joining TETRA's Second Quarter 2020 Results Call.

謝謝你，伊恩。早安，感謝您參加 TETRA 2020 年第二季業績電話會議。

I would like to remind you that this conference call may contain statements that are or may be deemed to be forward-looking. These statements are based on certain assumptions and analysis made by TETRA and are based on a number of factors. These statements are subject to a number of risks and uncertainties, many of which are beyond the control of the company.

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。這些陳述是基於 TETRA 所做的某些假設和分析，並基於多種因素。這些陳述受到許多風險和不確定因素的影響，其中許多風險和不確定因素超出了公司的控制範圍。

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.

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, gross margins, adjusted EBITDA, adjusted EBITDA gross margins, adjusted free cash flow, distributable cash flow, distribution coverage ratio, leverage ratio or other non-GAAP financial measures. Please refer to this morning's press release or to our public website for reconciliation 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 our complete financial results for the period.

此外，在電話會議過程中，我們可能會提及EBITDA、毛利率、調整後EBITDA、調整後EBITDA 毛利率、調整後自由現金流、可分配現金流量、分配覆蓋率、槓桿率或其他非GAAP 財務指標。請參閱今天早上的新聞稿或我們的公開網站，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對帳。這些調節表不能取代根據公認會計原則準備的財務信息，應在我們當期完整財務業績的背景下考慮。

In addition to our press release announcement that went out earlier this morning and is posted on our website, our Form 10-Q is planned to be filed with the SEC on or before Wednesday, August 5, 2020.

除了今天早上早些時候發布並發佈在我們網站上的新聞稿之外，我們還計劃在 2020 年 8 月 5 日星期三或之前向 SEC 提交 10-Q 表格。

With that, I will now turn it over to Brady.

現在，我將把它交給布雷迪。

Thank you, Jacek. Good morning, everyone, and thank you for joining TETRA'S Second Quarter 2020 Earnings Call. I'll give a recap of our second quarter performance and market environment and then turn it over to Elijio to provide information on the balance sheet, cash flow and liquidity.

謝謝你，雅切克。大家早安，感謝您參加 TETRA 的 2020 年第二季財報電話會議。我將回顧我們第二季的業績和市場環境，然後將其交給 Elijio，以提供有關資產負債表、現金流量和流動性的信息。

First, I want to recognize the exceptional dedication and performance from our employees and management team for a job very well done in one of the most challenging quarters our industry has ever seen due to COVID-19. We are thankful that the few employees that have been directly impacted by the virus have recovered or are recovering well and that we have not had any situations where we could not service or deliver our customers' requirements. The Board and I are very proud of what our employees and management team are accomplishing in this extraordinary environment.

首先，我想表彰我們的員工和管理團隊在我們行業因 COVID-19 而面臨的最具挑戰性的季度之一中出色地完成了工作，表現出色。我們很慶幸的是，少數受到病毒直接影響的員工已經康復或恢復良好，我們沒有遇到任何無法服務或滿足客戶要求的情況。董事會和我對我們的員工和管理團隊在這個非凡的環境中所取得的成就感到非常自豪。

Turning to our results for the second quarter. We were able to deliver strong financial results despite the historical decline in drilling and completion activity. With U.S. land rig activity down 64% to the lowest level on record, international rig activity down 26% and active frac crews dropping at a record pace, our second quarter revenue was only down 14% from the first quarter.

轉向我們第二季的業績。儘管鑽井和完井活動出現歷史性下降，但我們仍能夠實現強勁的財務表現。由於美國陸上鑽機活動下降 64% 至有記錄以來的最低水平，國際鑽機活動下降 26%，活躍的壓裂人員以創紀錄的速度減少，我們第二季度的收入僅比第一季下降 14%。

When oil prices dropped in early March, we knew we were going to have to move quickly and decisively to reduce costs, accelerate some of our strategies and get ahead of our customers' activity declines. We took undesired but necessary actions through staff reductions, furloughs and adjustments to salaries and benefits while also reducing third-party costs and securing concessions from our suppliers.

當三月初油價下跌時，我們知道我們必須迅速而果斷地採取行動來降低成本，加快我們的一些策略並趕在客戶活動下降之前。我們採取了不受歡迎但必要的行動，包括裁員、休假以及調整工資和福利，同時也降低了第三方成本並獲得供應商的讓步。

In parallel to field staff and cost reductions, we also made deep cuts in our corporate and overhead cost structure. This has streamlined our decision-making and much of this cost will not return when the market does recover. Early in the quarter, we made the decision to close our Midland Compression fab plant and idle our chemical processing plant in El Dorado, Arkansas, 2 of our long-standing plants. While doing so, we also accelerated our focus on technology and automation, which greatly contributed to our financial results.

在削減現場人員和成本的同時，我們也大幅削減了公司和管理費用結構。這簡化了我們的決策，當市場復甦時，大部分成本將不會再回來。本季初，我們決定關閉米德蘭壓縮工廠，並閒置位於阿肯色州埃爾多拉多的化學加工廠，這是我們的兩個長期工廠。在此過程中，我們也加快了對技術和自動化的關注，這對我們的財務表現做出了巨大貢獻。

The combination of aggressive cost management, accelerating our focus on automation and technology and pulling on our diverse business mix, including strong high-end offshore Completions Fluids business and industrial chemicals business and a strong customer base for each of our business segments, all led to an improvement by 100 basis points in our adjusted EBITDA margins compared to a year ago.

積極的成本管理、加速我們對自動化和技術的關注以及推動我們多樣化的業務組合（包括強大的高端海上完井液業務和工業化學品業務以及我們每個業務部門的強大客戶群）相結合，所有這些都導致​​了與一年前相比，我們調整後的 EBITDA 利潤率提高了 100 個基點。

TETRA only generated $31 million of free cash flow in the quarter, which was $26 million higher than the first quarter. In the first half of the year, we've been able to generate over $35 million of free cash flow, an improvement of $68 million compared to the first half of last year. We've improved our liquidity and ended the quarter with $50 million of cash at the TETRA level and liquidity at almost $90 million.

TETRA 本季僅產生 3,100 萬美元的自由現金流，比第一季增加了 2,600 萬美元。今年上半年，我們已經產生了超過 3,500 萬美元的自由現金流，比去年上半年增加了 6,800 萬美元。我們改善了流動性，本季結束時，TETRA 等級的現金為 5,000 萬美元，流動性接近 9,000 萬美元。

At the business segment level, our Completion Fluids & Product business continues to perform at an exceptional level, exceeding by a wide margin our 20% adjusted EBITDA target for the fifth consecutive quarter. With adjusted EBITDA margins of 25.7%, we improved our year-on-year adjusted EBITDA margins for this business by 320 basis points.

在業務部門層面，我們的完井液和產品業務持續保持卓越水平，連續第五個季度大幅超過我們 20% 的調整後 EBITDA 目標。調整後 EBITDA 利潤率為 25.7%，我們該業務的調整後 EBITDA 利潤率年增了 320 個基點。

For the quarter, we've benefited from our industrial chemicals business, which outperformed the second quarter of last year in both revenue and EBITDA margins and saw little impact from the COVID-19 pandemic. The industrial chemicals markets continues to perform well during this downturn as it made up approximately half of the second quarter revenue for this business segment, aided by our seasonal European business, which recorded our highest EBITDA in 5 years.

本季度，我們受益於我們的工業化學品業務，該業務的收入和 EBITDA 利潤率均優於去年第二季度，幾乎不受 COVID-19 大流行的影響。在經濟低迷時期，工業化學品市場繼續表現良好，約佔該業務部門第二季度收入的一半，這得益於我們季節性的歐洲業務，該業務創下了 5 年來最高的 EBITDA。

Over a full year, we expect about 40% of the segment revenue to come from our industrials business.

我們預計全年約 40% 的部門收入將來自我們的工業業務。

As previously mentioned, we idled our plant in El Dorado, Arkansas and shifted production to our other lower-cost facilities. The shutdown and transition of production and associated customer demand to other plants has been completed. The revenue from this segment will not be impacted by this closure as we've transitioned all of our product to other plants at better margins. On the oil and gas side, increased offshore revenues in the Gulf of Mexico helped offset the decrease in activity of some of our domestic onshore business.

如前所述，我們閒置了位於阿肯色州埃爾多拉多的工廠，並將生產轉移到其他成本較低的工廠。生產和相關客戶需求向其他工廠的關閉和過渡已經完成。該部門的收入不會受到此次關閉的影響，因為我們已將所有產品轉移到利潤率更高的其他工廠。在石油和天然氣方面，墨西哥灣海上收入的增加幫助抵消了我們一些國內陸業務活動的減少。

During the quarter, our international Completions Fluid business was awarded a large sale for a major national oil company in the Middle East, a market that is increasingly relying on higher density, higher value fluids. Our CS Neptune pipeline continues to progress with opportunities we've previously mentioned still ahead of us. We have line of sight to several projects that have the possibility of materializing before year-end, but clearly, the current market environment may delay these projects as customers reassess their plans.

本季度，我們的國際完井液業務獲得了中東一家大型國家石油公司的大宗銷售合同，該市場越來越依賴更高密度、更高價值的流體。我們的 CS Neptune 管道繼續取得進展，我們之前提到的機會仍然擺在我們面前。我們預計幾個項目有可能在年底前實現，但顯然，隨著客戶重新評估他們的計劃，當前的市場環境可能會推遲這些項目。

The Water & Flowback Services second quarter revenue decreased 57% sequentially, mainly due to the unprecedented decline in U.S. completion activity with active frac fleets down approximately 80% from Q1. The actions that we implemented to align the business with this historical decline in activity has proven to be effective as we ended the quarter with a positive adjusted EBITDA of $400,000 despite incurring $700,000 of bad debt expense. Without the bad debt, we would have been over $1 million of adjusted EBITDA profit.

水和返排服務第二季度營收季減 57%，主要是由於美國完井活動空前下降，活躍壓裂船隊較第一季下降約 80%。事實證明，我們為使業務與歷史性的活動下降保持一致而採取的行動是有效的，儘管產生了 700,000 美元的壞賬費用，但本季度末我們的調整後 EBITDA 為 400,000 美元。如果沒有壞賬，我們的調整後 EBITDA 利潤將超過 100 萬美元。

Our integrated projects decreased from 23 and 15 different customers at the end of the first quarter to 16 integrated projects with 14 different customers at the end of the second quarter, and we believe this demonstrates our market share gains while introducing our integrated water management offering and latest technology to new customers.

我們的綜合項目從第一季末的23 個和15 個不同客戶減少到第二季末有14 個不同客戶的16 個綜合項目，我們相信這表明我們在推出綜合水管理產品和服務的同時獲得了市場佔有率。

Our automation solution, BlueLinx is now deployed on all of our integrated projects. Our latest de-sanding flowback technology, SandStorm continues to maintain high levels of utilization and we continue to have more inquiries for this equipment from our customers.

我們的自動化解決方案 BlueLinx 現已部署在我們所有的整合專案上。我們最新的除砂回流技術 SandStorm 繼續保持高水準的利用率，並且我們繼續收到更多客戶對該設備的詢問。

While we see some increase in the number of frac crews coming back in Q3, the timing is still uncertain and the increase is coming from such a low base number that we expect Q3 to be relatively flat with Q2.

雖然我們看到第三季壓裂人員數量有所增加，但時間仍然不確定，而且增加的基數如此之低，我們預計第三季將與第二季相對持平。

We will align -- we'll continue to align this business with market activity by continuing to be aggressive with cutting costs, working to increase adoption of our technology and automation and delivering best-in-class service. Our objective is to keep this segment EBITDA positive throughout this cycle and be well positioned when the recovery comes.

我們將保持一致——我們將繼續積極削減成本，努力提高我們的技術和自動化的採用率，並提供一流的服務，從而使這項業務與市場活動保持一致。我們的目標是在整個週期中保持該部門的 EBITDA 為正值，並在復甦到來時處於有利地位。

Moving on to our Compression business. Revenue increased, sequentially, 7% to $96 million, driven by an increase of equipment sales as we completed a significant amount of new equipment deliveries from our backlog.

繼續我們的壓縮業務。由於我們完成了大量積壓的新設備交付，設備銷售增加，帶動收入環比增長 7% 至 9,600 萬美元。

Second quarter adjusted EBITDA of $26.4 million (sic) [$26.3 million] was up $400,000 from the first quarter. Compression services costs were reduced by 20% from the first quarter compared to a 14% sequential decline in compression services revenue and a decline in the utilization from 86.5% to 82.1%. Due to the swift actions by our management team to aggressively reduce cost, Compression services margins increased 300 basis points from the first quarter to 54.9%, which is the highest gross margins in CSI Compressco's history.

第二季調整後 EBITDA 為 2,640 萬美元（原文如此）[2,630 萬美元]，比第一季增加 40 萬美元。壓縮服務成本較第一季降低了 20%，而壓縮服務收入則是環比下降 14%，利用率從 86.5% 下降至 82.1%。由於我們的管理團隊迅速採取行動，大幅降低成本，壓縮服務利潤率比第一季成長了300個基點，達到54.9%，這是中證壓縮公司史上最高的毛利率。

Approximately 15% of our total domestic horsepower was on standby during the quarter as customers shut in production given the low commodity prices. The majority of our remaining units that are on standby are with our 2 largest customers, both supermajors, which have the balance sheet to maintain shut-in production until crude prices improve. One of those 2 customers has brought back their standby units into operation effective August 1, which will have a meaningful impact on reducing our units on standby going forward.

由於大宗商品價格低廉，客戶關閉了生產，本季我們國內總馬力的約 15% 處於待命狀態。我們剩餘的大部分待命裝置都屬於我們的兩個最大客戶，這兩個客戶都是超級巨頭，他們的資產負債表足以維持停產，直到原油價格上漲。這 2 家客戶之一已於 8 月 1 日起將其備用機組恢復運行，這將對我們未來減少備用機組產生重大影響。

Aftermarket services revenue declined 12% from the first quarter. Gross margins improved 500 basis points sequentially due to reduced cost and favorable mix.

售後服務收入較第一季下降 12%。由於成本降低和有利的組合，毛利率環比提高了 500 個基點。

We closed our fabrication operations in July and sold the real estate and buildings in July for $17 million of gross proceeds.

我們於 7 月關閉了製造業務，並於 7 月出售了房地產和建築物，獲得了 1700 萬美元的總收益。

As we move into the third quarter, the macro environment remains fluid as the impact of COVID-19 to the economy and demand and supply dynamics for crude oil continues to be unpredictable. Although OPEC+ actions and declining U.S. production have moved supply and demand in balance quite quickly, it is difficult to predict how long it will take to work off the inventory overhang. We don't expect activity to increase in the U.S. or international in a material way for the rest of this year. The outlook beyond this year will largely depend on the outcome of fighting the COVID-19 virus and its impact on global economies.

隨著進入第三季度，宏觀環境仍然不穩定，因為 COVID-19 對經濟的影響以及原油的供需動態仍然難以預測。儘管OPEC+的行動和美國產量下降很快就實現了供需平衡，但很難預測需要多長時間才能消除庫存過剩。我們預計今年剩餘時間內美國或國際經濟活動不會大幅增加。今年以後的前景將在很大程度上取決於對抗 COVID-19 病毒的結果及其對全球經濟的影響。

We've been proactive in implementing cost reductions across the company and remain committed to revising our cost structure as required based on the market outlook.

我們一直在全公司範圍內積極實施成本削減，並繼續致力於根據市場前景根據需要修改成本結構。

Overall, we've had a strong quarter. We managed to generate $31 million in free cash flow and improve our year over adjusted EBITDA margins in a challenging -- our year-over-year adjusted EBITDA margins in a challenging environment. Our strategies, technologies and industry diversity continue to position the company to navigate this crisis and come through in a stronger position than ever.

總體而言，我們度過了一個強勁的季度。我們成功地產生了 3,100 萬美元的自由現金流，並在充滿挑戰的環境中提高了調整後 EBITDA 利潤率。我們的策略、技術和產業多元化繼續幫助公司渡過這場危機，並以比以往任何時候都更強大的地位渡過難關。

During these continued difficult times, our strategy is to stay aligned with our core customers, continue to showcase our differentiated technology, more effectively utilize our equipment and personnel, exploit our industrials chemicals business, improve our margins and work with customers with a creditworthy balance sheet.

在這些持續的困難時期，我們的策略是與我們的核心客戶保持一致，繼續展示我們的差異化技術，更有效地利用我們的設備和人員，開發我們的工業化學品業務，提高我們的利潤率並與具有信譽良好的資產負債表的客戶合作。

With that, I'll turn it over to Elijio to provide some financial comments on cash flow and the balance sheet, and then we'll open it up for questions.

這樣，我將把它交給 Elijio，提供一些有關現金流和資產負債表的財務評論，然後我們將開放它以供提問。

Thank you, Brady. Good morning, everybody. In the second quarter, we incurred $18.1 million of nonrecurring charges, of which $15.7 million were for CSI Compressco and $2.3 million were for TETRA. These charges included noncash charges of $9 million to write-off idled Compression assets and related inventory, $4.8 million of expenses from the recently completed bond exchange for CSI Compressco and $4.3 million mainly for severance and other costs associated with rightsizing the organization.

謝謝你，布雷迪。大家早安。第二季度，我們產生了 1,810 萬美元的非經常性費用，其中 1,570 萬美元用於 CSI Compressco，230 萬美元用於 TETRA。這些費用包括900 萬美元的非現金費用，用於沖銷閒置Compression 資產和相關庫存，最近完成的CSI Compressco 債券交換費用為480 萬美元，以及主要用於遣散費和與組織規模調整相關的其他費用的430 萬美元。

I'm going to spend a couple of minutes on TETRA's balance sheet and capital structure now. Brady mentioned that we generated $31 million of free cash flow on a TETRA-only basis. This was achieved despite the incurrence of severance and restructuring-related costs. Also in the period where many operators are struggling financially, we were able to collect significant amount of receivables to materially improve working capital.

我現在將花幾分鐘討論 TETRA 的資產負債表和資本結構。Brady 提到，我們僅在 TETRA 的基礎上產生了 3,100 萬美元的自由現金流。儘管產生了遣散費和重組相關成本，但仍實現了這一目標。同樣在許多業者陷入財務困境的時期，我們能夠收回大量應收帳款，從而大幅改善營運資金。

Our Water Management & Flowback segment incurred approximately $700,000 of bad debt expense in the second quarter that we did not normalize for.

我們的水管理和回流部門在第二季度產生了大約 70 萬美元的壞帳費用，我們沒有將其正常化。

TETRA-only adjusted EBITDA without any of the impact of CSI Compressco was $9 million in the second quarter.

第二季度，僅 TETRA 調整後的 EBITDA 為 900 萬美元，不受 CSI Compressco 的任何影響。

TETRA-only capital expenditures in the second quarter were $2.2 million. TETRA-only interest expense runs about $4 million per quarter. And TETRA-only cash taxes run about $1 million per quarter.

第二季僅 TETRA 的資本支出為 220 萬美元。僅 TETRA 的利息支出每季約為 400 萬美元。僅 TETRA 的現金稅每季約為 100 萬美元。

So even in the worst quarter in recent history, TETRA on a stand-alone basis was able to generate enough EBITDA to cover capital expenditures, interest expense, cash taxes and remain cash flow positive in this period.

因此，即使在最近歷史上最糟糕的季度，TETRA 也能夠單獨產生足夠的 EBITDA 來支付資本支出、利息支出、現金稅，並在此期間保持正現金流。

We expect TETRA-only capital expenditures to be between $10 million and $15 million for the full year, which is unchanged from our prior guidance. We will continue to monitor and adjust our capital spending based on current market conditions. We expect the second half capital expenditures to be minimal and will be primarily for maintenance capital and to accelerate introduction of new technologies such as the SandStorm.

我們預計全年僅 TETRA 的資本支出將在 1,000 萬至 1,500 萬美元之間，這與我們先前的指導一致。我們將繼續根據當前市場狀況監控和調整我們的資本支出。我們預計下半年的資本支出將很少，主要用於維護資本和加速引入 SandStorm 等新技術。

TETRA-only liquidity at the end of the second quarter improved approximately $29 million from the end of the first quarter, positioning the company to manage well into this downturn. TETRA-only liquidity is defined as unrestricted cash on hand plus availability on our revolving credit facility. We believe our cost structure and ample liquidity provide a very long runway to sustain any potential prolonged downturn.

第二季末，僅 TETRA 的流動性比第一季末增加了約 2,900 萬美元，使該公司能夠很好地應對這次低迷。僅限 TETRA 的流動性被定義為不受限制的手頭現金加上我們循環信貸額度的可用性。我們相信，我們的成本結構和充足的流動性為維持任何潛在的長期低迷提供了很長的跑道。

TETRA-only net debt at the end of June was $156 million with cash on hand of $50 million. This is an improvement from $156 million at the end -- to $156 million versus $185 million at the end of the first quarter.

截至 6 月底，僅 TETRA 的淨債務為 1.56 億美元，手頭現金為 5,000 萬美元。這比第一季末的 1.56 億美元提高了 1.56 億美元，而第一季末的 1.85 億美元為 1.85 億美元。

Our $221 million term loan is not due until August 2025. And our $100 million asset-based revolver, which has a current borrowing base of approximately $40 million, does not mature until September of 2023.

我們 2.2​​1 億美元的定期貸款將於 2025 年 8 月到期。我們的 1 億美元資產循環貸款目前的借款基礎約為 4,000 萬美元，要到 2023 年 9 月才會到期。

The only significant maintenance covenant we have to comply with is a onetime interest coverage ratio on the term loan. At the end of June, our interest coverage ratio was 3.9x. Annual interest expense on this term loan is approximately $16 million per year. We believe we have ample liquidity to manage through this downturn.

我們必須遵守的唯一重要的維護契約是定期貸款的一次性利息覆蓋率。截至6月底，我們的利息覆蓋率為3.9倍。該定期貸款的年利息支出約為每年 1,600 萬美元。我們相信我們有充足的流動性來應對這次低迷。

And as always, I'd like to again remind everyone that TETRA and CSI Compressco's debt are distinct and separate. There are no cross-defaults, no cross-guarantees on the debt between TETRA and CSI Compressco.

像往常一樣，我想再次提醒大家，TETRA 和 CSI Compressco 的債務是截然不同的。TETRA 與 CSI Compressco 之間的債務不存在交叉違約、交叉擔保。

I'll cover now a couple of minutes on CSI Compressco's balance sheet. During the quarter, CSI Compressco generated $4.8 million of cash from operating activities. In the first half of the year, CSI Compressco generated $18 million of cash from operating activities and $10.6 million of free cash flow. CSI Compressco ended the quarter with $6.8 million of cash, up from $2.4 million at the beginning of the year. The outstanding balance on the ABL revolver for CSI Compressco was only $1.5 million. Distributable cash flow was $8.4 million in the second quarter for CSI Compressco.

我現在將用幾分鐘介紹 CSI Compressco 的資產負債表。本季度，CSI Compressco 從營運活動中產生了 480 萬美元的現金。今年上半年，CSI Compressco 從營運活動中產生了 1,800 萬美元的現金，以及 1,060 萬美元的自由現金流。CSI Compressco 截至本季末的現金為 680 萬美元，高於年初的 240 萬美元。CSI Compressco 的 ABL 左輪手槍未清餘額僅 150 萬美元。CSI Compressco 在第二季可分配現金流量為 840 萬美元。

In the first half of the year, distributable cash flow is $17.1 million. On an annualized basis, DCF would be $34 million or approximately $0.71 per unit. This compares to the unit price at the close of business yesterday for CSI Compressco of $1.05. This is not a bad yield.

上半年，可分配現金流量為1,710萬美元。以年化計算，DCF 將為 3,400 萬美元，即每單位約 0.71 美元。相比之下，CSI Compressco 昨天收盤時的單價為 1.05 美元。這是一個不錯的收益。

On June 11, CSI Compressco announced a successful exchange of unsecured bonds for secured bonds. $215 million of unsecured bonds with an August 2022 maturity were exchange for bonds with maturities of 2025 and 2026. As part of the process, $9 million of debt was eliminated. Their near-term maturities are now only $81 million due August 2022 and all the other bonds are due in 2025 or 2026.

6月11日，中證壓縮機宣布無擔保債轉擔保債成功。2.15 億美元、2022 年 8 月到期的無擔保債券被交換為 2025 年和 2026 年到期的債券。作為該過程的一部分，900 萬美元的債務被消除。目前，它們的短期到期日僅為 8,100 萬美元，將於 2022 年 8 月到期，所有其他債券將於 2025 年或 2026 年到期。

After this exchange and given the current market condition, CSI Compressco's mandatory cash flows on an annualized basis are approximately $75 million, including approximately [$48 million] of cash interest expense, $20 million of maintenance capital expenditures and $5 million for cash taxes and lease payments. This compares to our second quarter adjusted EBITDA of $26 million. We are comfortable that CSI Compressco is nicely prepared to manage through this downturn and the reduction in spending by the industry.

此次交換後，考慮到當前的市場狀況，CSI Compressco 的年化強制性現金流量約為7500 萬美元，其中包括約[4800 萬美元] 現金利息支出、2000 萬美元維護資本支出以及500 萬美元現金稅和租賃付款。相比之下，我們第二季調整後的 EBITDA 為 2,600 萬美元。我們感到欣慰的是，CSI Compressco 已做好充分準備來應對這次經濟低迷和產業支出的減少。

Our strategy to address the $81 million of August maturities is to accumulate $10 million to $25 million in cash between now and August of next year to repay a portion of the $81 million and to refinance the balance. We believe that given our financial performance and the actions we are taking to manage costs and to create liquidity that we will find partners for this refinancing.

我們應對 8 月到期的 8,100 萬美元的策略是，從現在到明年 8 月，累積 1,000 萬至 2,500 萬美元的現金，以償還 8,100 萬美元的一部分，並對餘額進行再融資。我們相信，鑑於我們的財務表現以及我們為管理成本和創造流動性而採取的行動，我們將為此再融資找到合作夥伴。

In the second quarter, CSI Compressco initiated a series of actions to monetize assets. These actions are expected to generate $26 million of cash flow from the sale of idle or underperforming assets. We will continue to evaluate all the assets in CSI Compressco's fleet and those assets that might not generate the returns and the consistency of earnings will be targets for monetization to create additional liquidity.

二季度，中證壓縮機啟動了一系列資產變現行動。這些行動預計將透過出售閒置或表現不佳的資產產生 2,600 萬美元的現金流。我們將繼續評估中證壓縮機船隊中的所有資產，那些可能無法產生回報和獲利一致性的資產將成為貨幣化的目標，以創造額外的流動性。

CSI Compressco's net leverage ratio was 5.1x at the end of the second quarter, down from a high of 7x at the end of Q2 2018. And as a reminder, none of the outstanding bonds have any maintenance covenants for CSI Compressco.

截至第二季末，CSI Compressco 的淨槓桿率為 5.1 倍，低於 2018 年第二季末 7 倍的高點。需要提醒的是，所有未償還債券都沒有 CSI Compressco 的任何維持契約。

Both TETRA and CSI Compressco had solid second quarter results. CSI Compressco completed a bond exchange that pushed out a significant amount of near-term maturities and is in the process of generating significant incremental liquidity to begin -- to further improve the balance sheet. We like where we are given the market environment.

TETRA 和 CSI Compressco 第二季業績均表現強勁。CSI Compressco 完成了債券交換，推出了大量近期到期債券，並且正在產生大量增量流動性，以進一步改善資產負債表。我們喜歡我們所處的市場環境。

I encourage you to read our news release from this morning and CSI Compressco's news release from yesterday for all the supporting details and additional financial and operational metrics.

我鼓勵您閱讀我們今天早上的新聞稿和昨天 CSI Compressco 的新聞稿，以了解所有支援細節以及其他財務和營運指標。

Ian, with that, we'll now open the call for questions.

伊恩，現在我們開始提問。

(Operator Instructions) Our first question today comes from Stephen Gengaro of Stifel.

（操作員說明）今天我們的第一個問題來自 Stifel 的 Stephen Gengaro。

Can you -- I guess a couple of things, but can you start with -- if we think about the Completion Fluids & Products business in the quarter and sort of how we should think about the path to the third and fourth quarters as far as what's going on with activity in the U.S., offset by the European business, which I think you mentioned had the best quarter since 2Q '15 in the second quarter and how that -- what kind of decremental margins we should think about as well?

你能——我猜有幾件事，但你能不能先——如果我們考慮一下本季度的完井液和產品業務，以及我們應該如何考慮通往第三和第四季度的道路美國的活動發生了什麼，被歐洲業務所抵消，我認為你提到第二季度是自2015 年第二季度以來最好的季度，我們還應該考慮什麼樣的利潤下降？

So Stephen, good question. As you and everybody realize, our second quarter is our peak seasonal activity in our European business, and those margins are not much different than the overall segment margins. So I think that the transition from Q2 to Q3 and potentially Q4 will continue to leave us with EBITDA margins for this segment in the 20s. We have now a significant trend of consistent performance being in the mid-20s. Brady mentioned that we have picked up a significant asset -- product sales to go into the Middle East in the second half of the year, I think that will benefit us and offset some of the decline that we'll see from the seasonal drop in TCE. So all the data points that we have tell us that our margins will continue to run in the mid to low 20s.

史蒂芬，好問題。正如您和每個人都意識到的那樣，我們的第二季度是我們歐洲業務的季節性活動高峰，這些利潤率與整體細分市場利潤率沒有太大區別。因此，我認為從第二季到第三季以及可能的第四季的過渡將繼續使我們該細分市場的 EBITDA 利潤率在 1920 年代左右。我們現在有一個顯著的趨勢，即 20 多歲左右的表現始終如一。布雷迪提到，我們已經獲得了一項重要資產——下半年將進入中東的產品銷售，我認為這將使我們受益，並抵消我們將看到的季節性下降帶來的部分下降。乙烯。因此，我們掌握的所有數據點都告訴我們，我們的利潤率將繼續保持在 20 多歲左右。

Yes. Stephen, I'll just add a little bit to that. As you're probably aware, outside of the European seasonal peak that we see in Q2, most of our oil and gas revenue comes from the offshore piece of the business and not so much on the U.S. -- not affected by the U.S. land decline. That business has actually held up very well from us. We've talked before about some of the major awards that we had at the end of last year, at the beginning of this year. We continue with that success with a major award in the Middle East. And so our outlook for our Completion Fluids business really has not changed much in this environment.

是的。史蒂芬，我會補充一點。您可能知道，除了我們在第二季度看到的歐洲季節性高峰之外，我們的大部分石油和天然氣收入都來自海上業務，而不是美國——不受美國土地面積下降的影響。事實上，我們的業務一直表現得很好。我們之前已經討論過過去年年底、今年年初我們獲得的一些主要獎項。我們繼續保持這一成功，並在中東獲得了一項重要獎項。因此，在這種環境下，我們對完井液業務的前景確實沒有太大變化。

Great. And is that Middle East product sale a third or fourth quarter event? Or do we not know yet?

偉大的。中東產品銷售是第三季還是第四季的活動？或者我們還不知道？

It will go across both quarters.

它將跨越兩個季度。

Okay. And then just as a follow-up, I mean across the oil service world, we're seeing a lot of working capital liquidation and you guys did a really good job in the second quarter and TETRA-only free cash flow was very strong. Elijio, how should we think about working capital in the second half of the year?

好的。作為後續行動，我的意思是在整個石油服務領域，我們看到大量的營運資金清算，你們在第二季度做得非常好，並且僅限 TETRA 的自由現金流非常強勁。Elijio，我們該如何看待下半年的營運資金？

So let me emphasize one data point that I made in my script to make sure that the investment community really absorbs it. It's TETRA, even without monetizing all the working capital, the EBITDA, the TETRA-only generated covered interest expense, maintenance capital expenditures, growth capital expenditures, cash taxes, I think that's a significant accomplishment that others in the industry will not be able to pound their chest that they accomplished the same.

因此，讓我強調一下我在腳本中提出的一個數據點，以確保投資界真正吸收它。這是 TETRA，即使沒有將所有營運資金、EBITDA 貨幣化，僅 TETRA 產生的利息支出、維護資本支出、增長資本支出、現金稅，我認為這是行業其他人無法實現的重大成就搥胸頓足說他們也做到了這一點。

Now you're right, we monetized a lot of receivables as activity slowed down and didn't ramp up. I would hope that there's a bounce in activity and we start to build receivables and then the opportunity to monetize incremental working capital is minimal.

現在你是對的，隨著活動放緩並且沒有增加，我們將大量應收帳款貨幣化。我希望活動出現反彈，我們開始建立應收帳款，然後將增量營運資金貨幣化的機會就很小了。

If we stay flat from today's run rate, I think we remain slightly cash flow positive. And if we see a big ramp-up, like I mentioned, then there's a scenario, too, where we burn a little bit of working capital rebuilding the receivables. If things further deteriorate, we will continue to monetize working capital. We think that we've seen a bottoming out in the second quarter. And given some of the wins that Brady mentioned that we got slightly positive momentum going into the second half of the year to where the amount of cash coming from working capital will be minimal.

如果我們與今天的運行率持平，我認為我們的現金流仍略為正。如果我們看到大幅成長，就像我提到的那樣，那麼也會出現一種情況，我們會燃燒一點營運資金來重建應收帳款。如果情況進一步惡化，我們將繼續將營運資金貨幣化。我們認為第二季已經觸底。鑑於布雷迪提到的一些勝利，我們在下半年獲得了一些積極的勢頭，來自營運資金的現金量將很少。

(Operator Instructions) At this time, we have no further questions. I'd now like to turn the conference back over to Brady Murphy for any closing remarks.

（操作員說明） 目前，我們沒有其他問題。我現在想把會議轉回給布雷迪·墨菲做總結發言。

Okay. Thank you, Ian. Listen, we appreciate your interest in TETRA Technologies, and thank you for taking the time to join us this morning. This will conclude our call.

好的。謝謝你，伊恩。聽著，我們感謝您對 TETRA Technologies 的興趣，並感謝您今天早上抽出時間加入我們。我們的通話到此結束。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。