TETRA Technologies, Inc. (NYSE:TTI) Q4 2023 Earnings Call Transcript

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Tim Moore: Great. That’s really helpful. And very excited about that, given I was on site and so what you can do with the pretreatment 1.5 years ago. But my last question is around the business, I think investors really aren’t giving you any credit for. It’s awfully stable and if not, growing quite nicely. The industrial calcium chloride business had a [indiscernible] year last year, I think you said it was up 18%. A little bit of that was lapping that supply chain raw material impact in Finland from the Ukraine the year before. But even when you strip that out, I mean, it’s still double digits. Is there anything else you’re doing there with the supply agreements and to really keep that up, I mean it’s something almost like 30 or EBITDA. So I’d just love to hear a little bit more about that business.

Brady Murphy: Yes. That business is running very, very well for us. A combination of good solid management teams that we have, great infrastructure that we have in place, but also finding new markets, as I mentioned, we penetrated 2 new markets in 2023. We’re not significant, but they have significant growth potential for us. The calcium chloride usage in the lithium processing in Latin America continues to have some traction. Although lithium, obviously, right now pricing-wise is down, but we still see a longer-term view very positive, very constructive for lithium, and we see a role for calcium chloride with those operations. And then the other one is chip manufacturing. Here in the United States, which I’m not sure we fully appreciate it until a lot of these chip manufacturers started coming online.

They use a very high purity water in their process. They actually have to recalcify or actually remineralize that water before it can be put back into various applications, and that’s a great opportunity for us on our calcium chloride business as well. So just a very well-run business for us right now and some new market opportunities that we think has some high growth potential.

Tim Moore: Great, Brady. That business is an overlooked gem from investors. I hope that you and Elijio catch up on sleeping. You have an awfully busy year with Saltwerx and Exxon. So I think hopefully you can get rest after these trips.

Brady Murphy: Thanks, Tim.

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

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

Operator: This concludes our conference call for today. You may now disconnect.

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