THE WOODLANDS, Texas, Aug. 7, 2015 /PRNewswire/ -- TETRA Technologies, Inc. (NYSE:TTI) today announced second quarter 2015 earnings per share of $0.16, excluding Maritech and other charges, which compares to earnings of $0.10 per share in the second quarter of 2014, also excluding Maritech and other charges. Second quarter 2015 revenue excluding Maritech of $315.9 million increased 31% from the second quarter of 2014 primarily as a result of the acquisition of Compressor Systems, Inc. ("CSI") on August 4, 2014 by CSI Compressco LP.

Consolidated GAAP second quarter 2015 earnings per share attributable to TETRA stockholders including Maritech and other charges were earnings of $0.19, which compares to a loss of $(0.03) in the second quarter of 2014.

Highlights include:


    --  Record second quarter 2015 revenue, adjusted EBITDA, and operating
        income for the Fluids Division (adjusted EBITDA is a non-GAAP financial
        measure that is reconciled to the nearest GAAP measure in Schedule F).
    --  Second quarter free cash flow of $43 million((1)), excluding the impact
        of $4 million of Maritech asset retirement obligation expenditures.
    --  A $38 million reduction in TETRA net debt((2)) compared to the end of
        the first quarter of 2015, and an improvement in debt leverage ratio to
        2.38x((3)), marking the third consecutive quarter of debt improvements.
    --  The successful launch and completion of the first commercial application
        of our heavy zinc-free completion fluid.
    --  All TETRA Divisions excluding Maritech were profitable at the pretax
        income level in 2Q 2015, excluding the impact of a reserve for bad debts
        in Production Testing.
    --  DSOs improved by 13 days from 68 days at the end of March 2015.
    --  Continued reduction in operating expenses through staff reductions,
        multiple cost management initiatives including supplier consolidations
        and price reductions, and efficiency improvements driven by recent
        systems implementation initiatives.


    (1)              Refer to Schedule G for
                     reconciliation.

    (2)              Refer to Schedule H for
                     reconciliation.

    (3)              Leverage ratio is defined by
                     TETRA's credit agreement as
                     outstanding debt plus letters of
                     credit, divided by trailing
                     twelve-month EBITDA excluding
                     unusual charges, Maritech losses,
                     and CSI Compressco distributions.


    Second Quarter 2015 Results, Excluding Unusual Charges and Maritech


                                                                                   Three Months Ended                     Change
                                                                                   ------------------

                                                                        June 30, 2015                June 30, 2014        2015 vs. 2014
                                                                        -------------                -------------        -------------

                                                                        (In Thousands, Except per Share Amounts)

    Revenue                                                                               $315,925                                   $240,942        31%

    Income before
     taxes(1)                                                                  18,741                              12,792                       47%

    Net income
     attributable to
     TETRA
     shareholders(2)                                                           12,654                               8,356                       51%

    Diluted EPS
     attributable to
     TETRA
     shareholders(3)                                                                         $0.16                                      $0.10        60%

    Adjusted pretax
     operating margin                                                            5.9%                               5.3%                      62 bps

    Adjusted EBITDA                                                                        $72,463                                    $40,783        78%
    ---------------                                                                        -------                                    -------        ---



    (1)              Income before taxes, including
                     unusual charges and Maritech was
                     $18.1 million in the second
                     quarter of 2015 and a loss of
                     $(2.5) million in the second
                     quarter of 2014.

    (2)              Net income attributable to TETRA
                     shareholders, including unusual
                     charges and Maritech was $14.9
                     million in the second quarter of
                     2015, and a loss of $(2.5)
                     million in the second quarter of
                     2014.

    (3)              Diluted EPS, including unusual
                     charges and Maritech, was $0.19
                     in the second quarter of 2015,
                     and a loss of $(0.03) in the
                     second quarter of 2014. See
                     Schedule E  for details.

Analysis of Second Quarter 2015 Results

Stuart M. Brightman, TETRA's President and Chief Executive Officer, stated, "Our second quarter results were clearly exceptional in a very challenging market environment. I attribute these results to our diversification of our customer base and introduction of new products into the market, as well as our continued focus on cost reductions across the organization.

"Revenues in our Fluids Division for the second quarter of 2015 increased 23.9% sequentially, and 5.4% compared to the second quarter of 2014. Adjusted pretax margins for the Division improved sequentially on pretax profits of $32.8 million in the second quarter of 2015. Similar to the first quarter of this year, the exceptional second quarter improvement was driven by completion products and services in the Gulf of Mexico, continued strength in our U.S. land operations, and strength in our chemicals manufacturing segment sales, as well as the Division's international operations. Our Gulf of Mexico fluids business benefitted in the second quarter from the expansion of our customer base, sales of new products, and the accelerated timing of a couple of projects. All of these items contributed to a record quarter for the Fluids Division in both revenues and pretax profits, despite the challenging market environment for our water management business. Second quarter results for this Division were also favorably impacted by a $2.6 million insurance settlement.

"Excluding the impact of an adjustment for bad debt, our Production Testing Division's second quarter 2015 pretax earnings represent a modest sequential improvement over the first quarter of this year, in an even more challenging market. This improvement was driven by ongoing cost reductions, profitable new business, and the strength of our international business. We expect Production Testing to continue to operate in a challenging domestic market environment for the balance of 2015. We will continue to take necessary cost actions as required to manage this impact.

"For the second quarter of 2015 our Compression Division reported adjusted pretax earnings of $1.5 million, a decrease from the $6.4 million of adjusted pretax earnings reported in the second quarter of 2014. During the current year's quarter our equipment and parts sales revenues increased to $49.0 million, a 170% increase sequentially over the first quarter of this year. Utilization for compression services trended down during the second quarter, reflecting lower oil-related activity, mainly in lower horsepower applications. On July 21, we declared a distribution of $0.50 per unit attributable to the second quarter of 2015, an increase of 10.5% over the second quarter 2014 distribution.

"Our Offshore Services segment reported an adjusted pretax profit of $2.1 million for the second quarter of 2015. This sequential improvement is typical of the second quarter compared to the seasonally-slower first quarter. However, in a continuing very challenging market environment with weak demand, and despite second quarter 2015 revenues that were 36.5% lower than revenues for the comparable quarter of 2014, we have been able to report a modest profit almost entirely due to the cumulative beneficial impact of cost reductions.

"During the second quarter we had $42.9 million of consolidated free cash flow, which includes distributions from CSI Compressco but excludes amounts spent on Maritech asset retirement obligations (see schedule G for a reconciliation to GAAP cash from operations). This result was driven by improvement in our cash earnings and continued reductions in capital expenditures, as well as a cash expense of only $3.8 million on Maritech abandonment and decommissioning projects during the second quarter of 2015. We continue to be focused on generation of free cash flow and reduction of our debt. Both of these metrics continue to improve in a challenging market due to the effectiveness of our customer diversification and cost reductions, as well as increased revenues from new products."

Divisional revenues, adjusted pretax earnings/(loss), adjusted pretax margins, and adjusted EBITDA for the three months ended June 30, 2015 and June 30, 2014 are summarized in the table below:



    Segment Results                                                                      Three Months Ended




                                                  June 30, 2015                                                                              June 30, 2014
                                                  -------------                                                                              -------------

                       Revenue    Income Before    Pretax     Adjusted EBITDA(3)                  Revenue            Income Before       Pretax
                                    Taxes(1)     Margin(2)                                                             Taxes(1)       Margin(2)    Adjusted EBITDA(3)
                         ------- -------------- ----------     -----------------                       -------   --------------    ----------    -----------------

                                                                                           (In Thousands)

    Fluids Division                    $122,973                                  $32,754                     26.6%                                              $41,491                $116,650                  $17,082 14.6% $24,185

    Production Testing
     Division             34,842                       (425)                      (1.2)%                    5,757                                                42,377        (238)     (0.6)%        6,839

    Compression
     Division            126,456                       9,504                         7.5%                   30,917                                                32,015        6,527       20.4%       10,550

    Offshore Services
     segment              35,731                       2,127                         6.0%                    5,015                                                56,241        3,929        7.0%        7,255

    Eliminations and
     other               (4,077)                       (12)                        0.3%                     (14)                                              (6,341)           3           -            -

    Subtotal             315,925                      43,948                        13.9%                   83,166                                               240,942       27,303       11.3%       48,829

    Corporate and
     other                     -                   (12,831)                           -                 (10,703)                                                     -     (9,756)          -      (8,046)

    Interest expense,
     net -Compression
     Division                  -                    (7,961)                           -                        -                                                    -       (145)          -            -

    Interest expense,
     net -TTI,
     excluding
     Compression
     Division                  -                    (4,415)                           -                        -                                                    -     (4,610)          -            -

    Unusual charges
     and Maritech(4)         394                       (633)                           -                        -                                                1,547     (15,286)          -            -

    As reported          316,319                      18,108                         5.7%                   72,463                                               242,489      (2,494)     (1.0)%       40,783
    -----------          -------                      ------                          ---                    ------                                               -------       ------       -----        ------



    (1)              Segment Income Before Taxes are
                     adjusted.  Refer to Schedule F for
                     reconciliation.

    (2)              GAAP pre-tax margins for second
                     quarter 2015 are: Fluids Division,
                     26.5%; Production Testing Division,
                     (1.4)%; Compression Division, 1.2%;
                     and, Offshore Services segment,
                     5.9%. GAAP pretax margins for
                     second quarter 2014 are: Fluids
                     Division, 14.6%; Production Testing
                     Division, (0.6)%; Compression
                     Division, 17.1%; and, Offshore
                     Services segment, 3.3%. Refer to
                     Schedule B for GAAP dollar amounts.

    (3)              Adjusted EBITDA is a non-GAAP
                     financial measure that is defined
                     and reconciled to the nearest GAAP
                     financial measure in Schedule F.

    (4)              Refer to Schedule E for unusual
                     charges and reconciliations.

Unusual and Other Charges and Maritech

During the second quarter of 2015, TETRA incurred $320,000 of severance expense as staffing levels were adjusted to reflect the lower activity levels. From June a year ago to June this year and excluding CSI Compressco, the total number of TETRA employees was reduced by 24%.

Second quarter 2015 earnings were favorably impacted by approximately $2.8 million related to the valuation allowance on U.S. deferred tax assets for predominately U.S. income tax loss carry-forwards that impacted earnings per share by $0.03. The Company remains in a position to utilize its carry-forwards to offset future cash taxes.

Maritech reported a pre-tax loss of $313,000 in the second quarter of 2015.

Net Debt

At June 30, 2015, the cash and debt positions of TETRA and CSI Compressco LP are shown below. TETRA and CSI Compressco LP's debt agreements are distinct and separate with no cross default provisions, no cross collateral provisions and no cross guarantees. Management believes that the most appropriate method to analyze the debt positions of each company is to view them as noted below:



                             As of June 30, 2015
                             -------------------

                        TETRA                CSI Compressco
                                                   LP
                          -----             --------------

                                (In Millions)

    Non-restricted cash              $8.7                          $33.3


    Revolver debt
     outstanding           92.9                             233.0

    Current portion of
     long-term debt        90.0                                 -

    Senior Notes
     outstanding          175.0                             345.2
                          -----                             -----

    Net debt                       $349.2                         $544.9

Third Quarter 2015 Guidance

TETRA expects third quarter 2015 earnings to be within a range of $0.07 to $0.09 per share.

Conference Call

TETRA will host a conference call to discuss second quarter 2015 results today, August 7, 2015, at 10:30 am ET. The phone number for the call is (888) 347-5303. The conference will also be available by live audio webcast and may be accessed through TETRA's website at www.tetratec.com.

Financial Statements, Schedules and Non-GAAP Reconciliation Schedules

Schedule A: Consolidated Income Statement (Unaudited)
Schedule B: Financial Results By Segment (Unaudited)
Schedule C: Consolidated Balance Sheet (Unaudited)
Schedule D: Long-Term Debt
Schedule E: Second Quarter and YTD Unusual Charges
Schedule F: Non-GAAP Reconciliation to GAAP Financials
Schedule G: Non-GAAP Reconciliation to Free Cash Flow
Schedule H: Reconciliation of TETRA Net Debt

Company Overview and Forward Looking Statements

TETRA is a geographically diversified oil and gas services company, focused on completion fluids and associated products and services, water management, frac flowback, production well testing, offshore rig cooling, compression services and equipment, and selected offshore services including well plugging and abandonment, decommissioning, and diving.

This press release includes certain statements that are deemed to be forward-looking statements. Generally, the use of words such as "may," "expect," "intend," "estimate," "projects," "anticipate," "believe," "assume," "could," "should," "plans," "targets" or similar expressions that convey the uncertainty of future events, activities, expectations or outcomes identify forward-looking statements that the Company intends to be included within the safe harbor protections provided by the federal securities laws. These forward-looking statements include statements concerning expected results of operational business segments for 2015, anticipated benefits from CSI Compressco following the CSI acquisition, including increases in cash distributions per unit, projections concerning the Company's business activities, financial guidance, estimated earnings, earnings per share, and statements regarding the Company's beliefs, expectations, plans, goals, future events and performance, and other statements that are not purely historical. These forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of risks and uncertainties, many of which are beyond the control of the Company, including the ability of CSI Compressco to successfully integrate the operations of CSI and recognize the anticipated benefits of the acquisition. Investors are cautioned that any such statements are not guarantees of future performances or results and that actual results or developments may differ materially from those projected in the forward-looking statements. Some of the factors that could affect actual results are described in the section titled "Risk Factors" contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2014, as well as other risks identified from time to time in its reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission.

Schedule A: Consolidated Income Statement (Unaudited)



                                   Three Months Ended                                 Six Months Ended

                                        June 30,                                          June 30,
                                        --------                                          --------

                              2015                  2014                2015                2014
                              ----                  ----                ----                ----

                                                         (In Thousands)

    Revenues                       $316,319                                  $242,489                   $567,411   $455,346


    Cost of sales,
     services, and rentals 207,391                         185,007                      374,054           349,974

    Depreciation,
     amortization, and
     accretion              39,067                          22,007                       77,410            45,047
                            ------                          ------                       ------            ------

    Total cost of revenues 246,458                         207,014                      451,464           395,021
                           -------                         -------                      -------           -------

    Gross profit            69,861                          35,475                      115,947            60,325


    General and
     administrative
     expense                37,472                          32,270                       72,741            65,690

    Interest expense, net   12,340                           4,604                       25,226             9,315

    Other (income)
     expense, net            1,941                           1,095                        1,927           (1,503)
                             -----                           -----                        -----            ------

    Income (loss) before
     taxes and
     discontinued
     operations             18,108                         (2,494)                      16,053          (13,177)

    Provision (benefit)
     for income taxes        2,741                           (944)                       4,310           (5,537)
                             -----                            ----                        -----            ------

    Net income (loss)       15,367                         (1,550)                      11,743           (7,640)

    Less: Net income
     attributable to
     noncontrolling
     interest                (442)                          (907)                     (1,266)          (1,751)
                              ----                            ----                       ------            ------

    Net income (loss)
     attributable to TETRA
     stockholders                   $14,925                                  $(2,457)                   $10,477   $(9,391)
                                    =======                                   =======                    =======    =======


    Basic per share
     information:
    ---------------

    Net income (loss)
     attributable to TETRA
     stockholders                     $0.19                                   $(0.03)                     $0.13    $(0.12)
                                      =====                                    ======                      =====     ======

    Weighted average
     shares outstanding     79,165                          78,525                       79,037            78,416
                            ======                          ======                       ======            ======


    Diluted per share
     information:
    -----------------

    Net income (loss)
     attributable to TETRA
     stockholders                     $0.19                                   $(0.03)                     $0.13    $(0.12)
                                      =====                                    ======                      =====     ======

    Weighted average
     shares outstanding     79,915                          78,525                       79,506            78,416
                            ======                          ======                       ======            ======

Schedule B: Financial Results By Segment (Unaudited)



                                  Three Months Ended June 30,                            Six Months Ended June 30,
                                  ---------------------------                            -------------------------

                               2015                     2014                 2015                   2014
                               ----                     ----                 ----                   ----

                                                              (In Thousands)

    Revenues by segment:
    --------------------

    Fluids Division                    $122,973                                   $116,650                           $222,261    $221,795

    Production Testing
     Division                34,842                              42,377                          71,944                 86,015

    Compression Division    126,456                              32,015                         229,344                 61,779

    Offshore Division

    Offshore Services        35,731                              56,241                          47,515                 91,571

    Maritech                    394                               1,547                           1,900                  2,923

    Intersegment
     eliminations           (2,909)                            (4,934)                        (3,180)               (6,721)
                             ------                              ------                          ------                 ------

    Offshore Division
     total                   33,216                              52,854                          46,235                 87,773

    Eliminations and other  (1,168)                            (1,407)                        (2,373)               (2,016)
                             ------                              ------                          ------                 ------

    Total revenues                     $316,319                                   $242,489                           $567,411    $455,346
                                       ========                                   ========                           ========    ========


    Gross profit (loss) by
     segment:
    ----------------------

    Fluids Division                     $40,354                                    $26,273                            $65,720     $50,664

    Production Testing
     Division                 3,918                               4,221                           6,777                  6,375

    Compression Division     21,150                              11,085                          43,937                 21,050

    Offshore Division

    Offshore Services         4,690                               4,780                         (1,279)                 (204)

    Maritech                      3                            (10,358)                          1,301               (16,484)

    Intersegment
     eliminations                 -                                  -                              -                     -

    Offshore Division
     total                    4,693                             (5,578)                             22               (16,688)

    Corporate overhead and
     eliminations             (254)                              (526)                          (509)               (1,076)
                               ----

    Total gross profit                  $69,861                                    $35,475                           $115,947     $60,325
                                        =======                                    =======                           ========     =======


    Income (loss) before
     taxes by segment:
    --------------------

    Fluids Division                     $32,583                                    $17,059                            $50,320     $35,536

    Production Testing
     Division                 (472)                              (249)                          (433)               (3,047)

    Compression Division      1,498                               5,477                           3,904                 10,664

    Offshore Division

    Offshore Services         2,095                               1,833                         (6,553)               (6,139)

    Maritech                  (313)                           (10,698)                            662               (17,237)

    Intersegment
     eliminations                 -                                  -                              -                     -

    Offshore Division
     total                    1,782                             (8,865)                        (5,891)              (23,376)

    Corporate overhead and
     eliminations          (17,283)                           (15,916)                       (31,847)              (32,954)
                            -------                             -------                         -------                -------

    Total income (loss)
     before taxes                       $18,108                                   $(2,494)                           $16,053   $(13,177)
                                        =======                                    =======                            =======    ========

Please note that the above results by Segment are inclusive of the unusual charges and expenses. Please see Schedule E for details of those unusual charges and expenses.

Schedule C: Consolidated Balance Sheet (Unaudited)



                     June 30, 2015                December 31, 2014
                     -------------                -----------------

                                   (In Thousands)

    Balance
     Sheet:
    -------

    Cash
     (excluding
     restricted
     cash)                               $41,941                          $48,384

    Accounts
     receivable,
     net                   190,908                             226,966

    Inventories            181,942                             189,357

    Other
     current
     assets                 36,682                              36,144

    PP&E, net            1,120,814                           1,124,192

    Other assets           431,358                             442,590
                           -------                             -------

    Total assets                      $2,003,645                       $2,067,633
                                      ==========                       ==========


    Current
     portion of
     decommissioning
     liabilities                         $11,521                          $12,758

    Other
     current
     liabilities           315,590                             365,683

    Long-term
     debt                  846,112                             844,961

    Long-term
     portion of
     decommissioning
     liabilities            47,887                              49,983

    Other long-
     term
     liabilities            27,491                              28,647

    Equity                 755,044                             765,601
                           -------                             -------

    Total
     liabilities
     and equity                       $2,003,645                       $2,067,633
                                      ==========                       ==========



    Note:  Please see Schedule D for
     the individual debt obligations
     of TETRA and CSI Compressco LP.

Schedule D: Long-Term Debt

TETRA Technologies Inc. and its subsidiaries, excluding CSI Compressco LP and its subsidiaries, are obligated under a bank credit agreement and senior notes, neither of which are obligations of CSI Compressco LP and its subsidiaries. CSI Compressco LP and its subsidiaries are obligated under a separate bank credit agreement and senior notes, neither of which are obligations of TETRA and its other subsidiaries.



                  June 30, 2015                December 31, 2014
                  -------------                -----------------

                                (In Thousands)

    TETRA
    -----

    Bank
     revolving
     line of
     credit
     facility                      $92,900                          $90,000

    TETRA Senior
     Notes at
     various
     rates              265,000                            305,000

    Other debt                -                                74
                            ---                               ---

    TETRA total
     debt               357,900                            395,074

    Less current
     portion           (90,000)                          (90,074)

    TETRA total
     long-term
     debt                         $267,900                         $305,000
                                  --------                         --------


    CSI
     Compressco
     LP
    -----------

    CCLP Bank
     Credit
     Facility                     $233,000                         $195,000

    CCLP 7.25%
     Senior Notes       345,212                            344,961
                                                          -------

    CCLP total
     debt               578,212                            539,961

    Less current
     portion                  -                                 -
                            ---                               ---

    CCLP total
     long-term
     debt                         $578,212                         $539,961
                                  --------                         --------

    Consolidated
     total long-
     term debt                    $846,112                         $844,961
                                  ========                         ========

Non-GAAP Financial Measures

In addition to financial results determined in accordance with GAAP, this press release includes the following non-GAAP financial measures for the Company: net debt, consolidated and segment income before taxes, excluding the Maritech segment and unusual charges; Adjusted EBITDA; and free cash flow. The following schedules provide reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures. The non-GAAP financial measures should be considered in addition to, not as a substitute for, financial measures prepared in accordance with GAAP, as more fully discussed in the Company's financial statements and filings with the Securities and Exchange Commission.

Management believes that following the sale of essentially all of Maritech's oil and gas properties, it is helpful to show the Company's results excluding the impact of the costs and charges relating to the decommissioning of Maritech's remaining properties since these results will show the Company's historical results of operations on a basis consistent with expected future operations. Management also believes that the exclusion of the unusual charges from the historical results of operations enables management to evaluate more effectively the Company's operations over the prior periods and to identify operating trends that could be obscured by the excluded items.

Adjusted EBITDA is defined as the Company's adjusted income before interest, taxes, depreciation, amortization and equity compensation. Adjusted EBITDA is used by management as a supplemental financial measure to assess the financial performance of the Company's assets, without regard to financing methods, capital structure or historical cost basis and to assess the Company's ability to incur and service debt and fund capital expenditures.

Free Cash Flow is a non-GAAP measure that the Company defines as cash from operations, excluding cash settlements of Maritech ARO, less capital expenditures. Management uses this supplemental financial measure to:


    --  assess the Company's ability to retire debt;
    --  evaluate the capacity of the Company to further invest and grow;
    --  to measure the performance of the Company as compared to its peer group
        of companies; and
    --  to determine the ability of the Company to pay dividends to
        shareholders.

Schedule E: Second Quarter and YTD Unusual Charges



                                                       Three Months Ended
                                                       ------------------

                                                          June 30, 2015
                                                          -------------

                    Income Before Tax    Tax       Noncont.
                                                   Interest    Net Income    Diluted EPS
                    -----------------       ---   ---------    ----------    -----------

                                            (In Thousands, Except per Share Amounts)

    Adjusted                            $18,741                                     $5,623               $464             $12,654      $0.16

    Transaction
     related costs                  -                      -                            -         -                -

    Severance
     expense                    (320)                   (40)                         (22)     (258)                -

    Deferred tax
     valuation
     allowance and
     other related
     tax adj.                       -                (2,842)                            -     2,842              0.03

    Maritech profit
     (loss)                     (313)                      -                            -     (313)                -

    As reported                         $18,108                                     $2,741               $442             $14,925      $0.19


                                                          June 30, 2014
                                                          -------------

                       Income (Loss)      Tax      Noncont.     Net Income
                        Before Tax                 Interest       (Loss)      Diluted EPS
                      --------------        ---   ---------    -----------   -----------

                                            (In Thousands, Except per Share Amounts)

    Adjusted                            $12,792                                     $3,194             $1,242              $8,356      $0.10

    Transaction
     related costs            (2,048)                  (175)                        (257)   (1,616)           (0.02)

    Severance
     expense                    (115)                   (10)                            -     (105)                -

    Maritech profit
     (loss)                  (10,698)                (3,745)                            -   (6,953)           (0.09)

    Other                     (2,425)                  (208)                         (78)   (2,139)           (0.02)

    As reported                        $(2,494)                                    $(944)              $907            $(2,457)   $(0.03)



                                                        Six Months Ended
                                                        ----------------

                                                          June 30, 2015
                                                          -------------

                    Income Before Tax    Tax       Noncont.
                                                   Interest    Net Income    Diluted EPS
                    -----------------       ---   ---------    ----------    -----------

                                            (In Thousands, Except per Share Amounts)

    Adjusted                            $16,662                                     $4,948             $1,451             $10,263      $0.13

    Transaction
     related costs              (208)                   (78)                         (73)      (57)                -

    Severance
     expense                  (1,063)                  (195)                        (112)     (756)           (0.01)

    Effect of
     Deferred Tax
     Valuation
     Allowance and
     other related
     tax adj                        -                  (365)                            -       365                 -

    Maritech profit
     (loss)                       662                       -                            -       662              0.01

    As reported                         $16,053                                     $4,310             $1,266             $10,477      $0.13


                                                          June 30, 2014
                                                          -------------

                           Income         Tax      Noncont.     Net Income
                     (Loss)Before Tax               Interest      (Loss)      Diluted EPS
                    -----------------       ---   ---------    -----------   -----------

                                            (In Thousands, Except per Share Amounts)

    Adjusted                             $8,673                                     $1,824             $2,008              $4,841      $0.06

    Transaction
     related costs                595                   (243)                        (257)     1,095              0.01

    Severance
     expense                    (784)                  (249)                            -     (535)           (0.01)

    Maritech profit
     (loss)                  (17,237)                (6,033)                            -  (11,204)           (0.14)

    Other                     (4,424)                  (836)                            -   (3,588)           (0.04)

    As reported                       $(13,177)                                  $(5,537)            $1,751            $(9,391)   $(0.12)


Schedule F: Non-GAAP Reconciliation to GAAP Financials



                                                                                             Three Months Ended
                                                                                             ------------------

                                                                                                June 30, 2015
                                                                                                -------------

                          Income (Loss)    Impairments &   Adjusted Income  Interest Expense,    Depreciation &    Stock Option
                          Before Tax, as  Unusual Charges     Before Tax           Net            Amortization       Expense
                             Reported                                                                                           Adjusted EBITDA
                         --------------  ---------------- ----------------  -----------------   ---------------   ------------- ---------------

                                                                                               (In Thousands)

    Fluids Division                               $32,583                                                   $171                                     $32,754              $(76)                   $8,813   $       -   $41,491

    Production Testing
     Division                      (472)                                47                                 (425)                              14               6,168          -        5,757

    Compression Division           1,498                                 45                                 1,543                            7,961              20,686        727        30,917

    Offshore Services
     Segment                       2,095                                 32                                 2,127                                -              2,888          -        5,015

    Eliminations and
     other                          (12)                                 -                                 (12)                               -                (2)         -         (14)
                                     ---                                ---                                  ---                              ---                ---        ---          ---

    Subtotal                      35,692                                295                                35,987                            7,899              38,553        727        83,166

    Corporate and other         (17,271)                                25                              (17,246)                           4,415                 254      1,874      (10,703)
                                 -------                                ---                               -------                            -----                 ---      -----       -------

    TETRA excl Maritech           18,421                                320                                18,741                           12,314              38,807      2,601        72,463

    Maritech                       (313)                                 -                                (313)                              26                 260          -         (27)
                                    ----                                ---                                 ----                              ---                 ---        ---          ---

    Total TETRA                                   $18,108                                                   $320                                     $18,428            $12,340                   $39,067      $2,601    $72,436


                                                                                                June 30, 2014

                          Income (loss)    Impairments &   Adjusted Income  Interest Expense,    Depreciation &    Stock Option
                          Before Tax, As  Unusual Charges     Before Tax           net            Amortization       Expense
                             Reported                                                                                           Adjusted EBITDA
                         --------------  ---------------- ----------------  -----------------   ---------------   ------------- ---------------

                                                                                               (In Thousands)

    Fluids Division                               $17,059                                                    $23                                     $17,082             $(103)                   $7,206   $       -   $24,185

    Production Testing
     Division                      (249)                                11                                 (238)                            (57)              7,134          -        6,839

    Compression Division           5,477                                905                                 6,382                              145               3,788        235        10,550

    Offshore Services
     Segment                       1,833                              2,096                                 3,929                                9               3,317          -        7,255

    Eliminations and
     other                             3                                  -                                    3                                -                (3)         -            -
                                     ---                                ---                                  ---                              ---                ---        ---          ---

    Subtotal                      24,123                              3,035                                27,158                              (6)             21,442        235        48,829

    Corporate and other         (15,919)                             1,553                              (14,366)                           4,610                 526      1,184       (8,046)
                                 -------                              -----                               -------                            -----                 ---      -----        ------

    TETRA excl Maritech            8,204                              4,588                                12,792                            4,604              21,968      1,419        40,783

    Maritech                    (10,698)                                 -                             (10,698)                               -                 39          -     (10,659)
                                 -------                                ---                              -------                              ---                ---        ---      -------

    Total TETRA                                  $(2,494)                                                $4,588                                      $2,094             $4,604                   $22,007      $1,419    $30,124



                                                                                              Six Months Ended
                                                                                              ----------------

                                                                                                June 30, 2015
                                                                                                -------------

                          Income (Loss)    Impairments &   Adjusted Income  Interest Expense,    Depreciation &    Stock Option
                          Before Tax, as  Unusual Charges     Before Tax           Net            Amortization       Expense
                             Reported                                                                                           Adjusted EBITDA
                         --------------  ---------------- ----------------  -----------------   ---------------   ------------- ---------------

                                                                                               (In Thousands)

    Fluids Division                               $50,320                                                   $284                                     $50,604              $(84)                  $17,532   $       -   $68,052

    Production Testing
     Division                      (433)                               433                                     -                               5              12,431          -       12,436

    Compression Division           3,904                                452                                 4,356                           15,867              40,731      1,204        62,158

    Offshore Services
     Segment                     (6,553)                                42                               (6,511)                               -              5,692          -        (819)

    Eliminations and
     other                          (10)                                 -                                 (10)                               -                (9)         -          (9)
                                     ---                                ---                                  ---                              ---                ---        ---          ---

    Subtotal                      47,228                              1,211                                48,439                           15,788              76,377      1,204       141,808

    Corporate and other         (31,837)                                60                              (31,777)                           9,412                 512      2,993      (18,860)
                                 -------                                ---                               -------                            -----                 ---      -----       -------

    TETRA excl Maritech           15,391                              1,271                                16,662                           25,200              76,889      4,197       122,948

    Maritech                         662                                  -                                  662                               26                 521          -        1,209
                                     ---                                ---                                  ---                              ---                 ---        ---        -----

    Total TETRA                                   $16,053                                                 $1,271                                     $17,324            $25,226                   $77,410      $4,197   $124,157


                                                                                                June 30, 2014
                                                                                                -------------

                          Income (Loss)    Impairments &   Adjusted Income  Interest Expense,    Depreciation &    Stock Option
                          Before Tax, as  Unusual Charges     Before Tax           Net            Amortization       Expense
                             Reported                                                                                           Adjusted EBITDA
                         --------------  ---------------- ----------------  -----------------   ---------------   ------------- ---------------

                                                                                               (In Thousands)

    Fluids Division                               $35,536                                               $(2,252)                                    $33,284             $(107)                  $15,036   $       -   $48,213

    Production Testing
     Division                    (3,047)                             1,758                               (1,289)                            (59)             14,697          -       13,349

    Compression Division          10,664                                905                                11,569                              304               7,508        437        19,818

    Offshore Services
     Segment                     (6,139)                             2,130                               (4,009)                              36               6,649          -        2,676

    Eliminations and
     other                             6                                  -                                    6                                -                (6)         -            -
                                     ---                                ---                                  ---                              ---                ---        ---          ---

    Subtotal                      37,020                              2,541                                39,561                              174              43,884        437        84,056

    Corporate and other         (32,960)                             2,072                              (30,888)                           9,141               1,080      2,836      (17,831)
                                 -------                              -----                               -------                            -----               -----      -----       -------

    TETRA excl Maritech            4,060                              4,613                                 8,673                            9,315              44,964      3,273        66,225

    Maritech                    (17,237)                                 -                             (17,237)                               -                 83          -     (17,154)
                                 -------                                ---                              -------                              ---                ---        ---      -------

    Total TETRA                                 $(13,177)                                                $4,613                                    $(8,564)            $9,315                   $45,047      $3,273    $49,071

Schedule G: Non-GAAP Reconciliation to Free Cash Flow



                                     Three Months Ended                                      Six Months Ended
                                     ------------------                                      ----------------

                           June 30, 2015              June 30, 2014               June 30, 2015             June 30, 2014
                           -------------              -------------               -------------             -------------

                                                                   (In Thousands)

    TTI Consolidated

    Cash from operations                    $54,347                                                 $4,551                     $82,162  $40,620

    ARO settlements                3,845                                  16,459                                      4,411      29,766

    Capital expenditures,
     net of sales proceeds      (23,188)                               (23,154)                                  (69,326)   (47,990)
                                 -------                                 -------                                    -------     -------

    Free cash flow before
     ARO settlements              35,004                                 (2,144)                                    17,247      22,396


    CSI Compressco LP

    Cash from operations          19,721                                   4,722                                     52,202      20,956

    Capital expenditures,
     net of sales proceeds      (19,934)                                (4,878)                                  (57,092)   (10,882)
                                 -------                                  ------                                    -------     -------

    Free cash flow                 (213)                                  (156)                                   (4,890)     10,074


    TTI Only

    Cash from operations          34,626                                   (171)                                    29,960      19,665

    ARO settlements                3,845                                  16,459                                      4,411      29,766

    Capital expenditures,
     net of sales proceeds       (3,254)                               (18,276)                                  (12,234)   (37,108)
                                  ------                                 -------                                    -------     -------

    Free cash flow before
     ARO settlements              35,217                                 (1,988)                                    22,137      12,323

    Distributions from CSI
     Compressco LP                 7,651                                   6,049                                     14,992      11,750
                                   -----                                   -----                                     ------      ------

    Free cash flow before
     ARO settlements and
     after distributions
     from CSI Compressco
     LP                                     $42,868                                                 $4,061                     $37,129  $24,073

Schedule H: Reconciliation of TETRA Net Debt

The following reconciliation of net debt is presented as a supplement to financial results prepared in accordance with GAAP. The Company defines net debt as the sum of long-term and short-term debt on its consolidated balance sheet, less cash, excluding restricted cash on the consolidated balance sheet and excluding the debt and cash of CSI Compressco LP. Management views net debt as a measure of TETRA's ability to reduce debt, add to cash balances, pay dividends, repurchase stock, and fund investing and financing activities. A reconciliation of total debt to net debt as of June 30, 2015 and December 31, 2014 is provided below.



                   June 30, 2015            December 31, 2014
                   -------------            -----------------

                                   (In Thousands)

    TETRA Net
     Debt:
    ---------

    Total debt,
     excluding CSI
     Compressco LP
     debt                        $357,900                               $395,074

    Less: cash,
     excluding CSI
     Compressco LP
     cash                (8,662)                              (14,318)
                          ------                                -------

    Net debt                     $349,238                               $380,756

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SOURCE TETRA Technologies, Inc.