TETRA (TTI) 8-K Announces Second Quarter 2011 Results

Exhibit 99.1

FOR IMMEDIATE RELEASE

TETRA TECHNOLOGIES, INC.

ANNOUNCES SECOND QUARTER 2011 RESULTS

The Woodlands, Texas (August 5, 2011) – TETRA Technologies, Inc. (TETRA or the Company) (NYSE:TTI) today announced second quarter 2011 results from continuing operations attributable to TETRA stockholders of $0.39 per fully diluted share compared to $0.18 per fully diluted share reported in the second quarter of 2010. Such second quarter 2011 results include special charges and credits that aggregate to a net credit of approximately $18.3 million of pretax income, or approximately $0.15 per share after tax, compared to a net charge for special items of $8.9 million of pretax income, or approximately $0.08 per share after tax, in the second quarter of 2010. The net credit in the second quarter of 2011 related primarily to gains on the sale of the majority of Maritech’s properties, excess decommissioning costs, charges associated with the liquidation of Maritech’s hedge contracts and oil and gas property impairments.

Consolidated revenues for the quarter ended June 30, 2011 were $235.1 million versus $241.6 million in the second quarter of 2010. Total gross profit was $35.8 million in the second quarter of 2011 versus $47.8 million in the second quarter of 2010. Income before discontinued operations was $30.5 million in the second quarter of 2011 versus $13.6 million in the comparable period of 2010. Net income attributable to TETRA stockholders was $30.4 million in 2011’s second quarter versus $13.6 million in 2010’s second quarter.

Consolidated results per share from continuing operations attributable to TETRA stockholders for the second quarter of 2011 were earnings of $0.39 with 78.3 million weighted average diluted common shares outstanding versus earnings of $0.18 with 76.9 million weighted average diluted common shares outstanding in the second quarter of 2010. As of June 30, 2011, total debt was $305.0 million and cash was $323.9 million.

Divisional pretax earnings from continuing operations in the second quarter of 2011 versus the second quarter of 2010 were: Fluids Division – $11.5 million in 2Q 2011 and $10.2 million in 2Q 2010; Offshore Services – $13.6 million in 2Q 2011 and $14.3 million in 2Q 2010; Maritech – $38.5 million in 2Q 2011 and $1.0 million in 2Q 2010; Production Testing – $6.0 million in 2Q 2011 and $3.0 million in 2Q 2010; and, Compressco – $3.8 million in 2Q 2011 and $5.0 million in 2Q 2010.

Financial data aggregating the first six months of 2011 and data relating to net income and discontinued operations are available in the accompanying financial tables.

Stuart M. Brightman, TETRA’s President and Chief Executive Officer, stated, “Our second quarter results confirm a continuation of the favorable trends we have seen in certain markets this year and, excluding the special net credits, are generally consistent with our expectations. During the second quarter, we benefitted from positive seasonal trends associated with our well abandonment and decommissioning businesses and our European calcium chloride business. Our results were also positively impacted by the continued strengthening of our onshore US markets.

“Our Fluids Division reported strong results for the second quarter, driven by increased activity in the onshore US fluids market and growth in certain international completion services markets. During the quarter, certain modifications to the El Dorado, Arkansas calcium chloride plant were completed. Although we are evaluating the need for additional modifications to the plant, the work completed during the second quarter has generated a positive impact on

production rates. Internationally, our European calcium chloride business benefitted from typically strong seasonal demand. Overall, it was a very strong quarter for our Fluids Division, continuing the trend we experienced in the first quarter of this year.

“Our Offshore Services segment reported pretax income of $13.6 million for the second quarter. This significant improvement over the segment’s first quarter performance was primarily the result of normal, seasonal increases in activity in the Gulf of Mexico. The backlog of work for our major assets expanded over the course of the second quarter and has continued to grow in the current quarter. However, despite this upswing in activity, the overall market is still very competitive. We are taking the steps we believe are necessary to have available sufficient resources to meet demand while maintaining a cost structure that is appropriate for the current market environment.

“We recently announced the acquisition of the TETRA Hedron, a newly built derrick barge with a 1,600 metric ton capacity, fully-revolving crane and accommodations for 300 personnel, for an expected total investment of approximately $71 million (including the purchase price and inspection, transportation and outfitting costs). As we stated in our July 29 press release, this acquisition demonstrates our sustained commitment to the growth of our Gulf of Mexico well abandonment and decommissioning businesses. We continue to believe that the current, strong demand for our services will increase as the ‘Idle Iron Guidance’ begins to impact the Gulf of Mexico, and we will continue to develop our suite of services and further position ourselves as an industry leader in this market.

“On May 31, 2011, we completed the sale of oil and gas properties that represented approximately 79% of Maritech’s proved year-end reserves and $72 million of associated asset retirement obligations. As we stated previously, when combined with the earlier sales of approximately 12% of Maritech’s proved year-end reserves, this transaction effectively removes us from the E&P business.

“Maritech’s second quarter results include a gain on the sale of properties of $56.6 million, partially offset by charges of $23.7 million for revisions of estimated future well abandonment and decommissioning costs and oil and gas property impairments. In addition, in connection with the sale of Maritech’s oil and gas properties we liquidated our remaining oil hedge contracts at a cost of $14.2 million (in our consolidated results, this charge is included in corporate other expense). Maritech’s P&A and decommissioning liabilities decreased by $86 million during the second quarter to $137 million as of June 30, 2011. We continue to anticipate spending in excess of $80 million during the current year, and a similar amount in 2012, on Maritech’s P&A and decommissioning activities.

“Our Production Testing segment benefitted from significant increases in domestic activity again in the second quarter. We feel that Production Testing is very well positioned for long-term growth in the domestic market, and we are continuing to invest growth capital in this area. Our international testing business reported slightly decreased revenues sequentially due to a significant project that generated revenue in the first quarter but not during the second quarter. Overall, trends in both domestic and international markets continue to look very favorable for Production Testing.

“On June 20, 2011, our subsidiary, Compressco Partners, L.P., successfully completed its initial public offering of common units in exchange for $53.4 million of gross proceeds, $32.2 million of which was distributed to TETRA as a repayment of indebtedness. Following the transaction, TETRA holds an approximate 83% interest in Compressco Partners.

“Compressco’s second quarter results reflect improving activity in the domestic and international markets, but profitability was negatively impacted by increased fuel, repair and maintenance, and field labor costs.

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“As a result of the Maritech property sales and the proceeds generated by Compressco Partners’ initial public offering, we ended the quarter in a very strong cash position, with a cash balance of $323.9 million. Excluding $19.3 million of cash attributable to Compressco, net debt as of June 30, 2011 was $492,000 (net debt is a non-GAAP financial measure that is reconciled to the nearest GAAP financial measure below). We have stated our strong desire to continue to grow our service businesses both organically and through acquisitions. Our purchase of the TETRA Hedron derrick barge was the first step in that process. Going forward, we will continue to focus on finding opportunities to grow our service businesses.”

TETRA is a geographically diversified oil and gas services company focused on completion fluids and other products, production testing, wellhead compression, and selected offshore services including well plugging and abandonment, decommissioning, and diving.

Forward Looking Statements

This press release includes certain statements that are deemed to be forward-looking statements. Generally, the use of words such as “may,” “will,” “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 2011, anticipated benefits from the Company’s acquisition of the TETRA Hedron derrick barge, including expected demand for the barge’s services and the timeline on which the barge is expected to be available for work, projections concerning the Company’s business activities in the Gulf of Mexico, including potential future benefits from increased regulatory oversight of well abandonment and decommissioning 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. 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 “Certain Business Risks” contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010, 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.

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Financial Data (unaudited)
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
	(In Thousands)
Revenues
Fluids Division	$	88,829		$	79,329		$	166,173		$	145,590
Offshore Division
Offshore Services		87,255			85,401			138,970			136,799
Maritech		33,382			50,335			77,404			96,969
Intersegment eliminations		(28,421	)		(18,156	)		(34,037	)		(23,296	)
Offshore Division total		92,216			117,580			182,337			210,472
Production Enhancement Division
Production Testing		31,739			24,346			64,949			50,548
Compressco		22,326			20,446			44,210			41,176
Production Enhancement Division total		54,065			44,792			109,159			91,724
Corporate overhead		42			-			42			-
Eliminations and other		(38	)		(83	)		(52	)		(275	)
Total revenues		235,114			241,618			457,659			447,511
Gross profit
Fluids Division		18,778			15,369			32,385			26,340
Offshore Division
Offshore Services		16,433			18,334			15,770			20,242
Maritech		(14,737	)		2,332			(19,314	)		10,797
Intersegment eliminations		37			80			108			572
Offshore Division total		1,733			20,746			(3,436	)		31,611
Production Enhancement Division
Production Testing		9,065			4,510			21,057			10,718
Compressco		6,925			7,944			13,544			15,766
Production Enhancement Division total		15,990			12,454			34,601			26,484
Eliminations and other		(688	)		(737	)		(1,373	)		(1,509	)
Total gross profit		35,813			47,832			62,177			82,926
General and administrative expense		29,006			24,955			56,768			47,732
Interest expense, net		4,085			4,238			8,276			8,266
Gain (loss) on sale of assets		59,577			(157	)		60,309			(250	)
Other income (expense)		(14,745	)		2,056			(13,929	)		2,332
*Income before taxes and discontinued
operations (A)		47,554			20,538			43,513			29,010
Provision for income taxes		17,031			6,903			15,502			9,919
Income before discontinued operations		30,523			13,635			28,011			19,091
Income (loss) from discontinued operations,
net of taxes (A)		(54	)		(75	)		(57	)		(104	)
Net income		30,469			13,560			27,954			18,987
Net (income) loss attributable to
noncontrolling interests		(95	)		-			(95	)		-
Net income attributable to TETRA stockholders	$	30,374		$	13,560		$	27,859		$	18,987

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	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
*Income (loss) before taxes and	(In Thousands)
discontinued operations
Fluids Division	$	11,545		$	10,191		$	18,794		$	16,377
Offshore Division
Offshore Services		13,577			14,269			9,201			11,828
Maritech		38,523			1,044			34,003			9,687
Intersegment eliminations		1,588			81			1,747			572
Offshore Division total		53,688			15,394			44,951			22,087
Production Enhancement Division
Production Testing		5,988			3,020			15,071			7,015
Compressco		3,809			5,037			7,814			10,133
Production Enhancement Division total		9,797			8,057			22,885			17,148
Corporate overhead (includes interest)		(27,476	)		(13,104	)		(43,117	)		(26,602	)
Total	$	47,554		$	20,538		$	43,513		$	29,010

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Basic income per share attributable to	(In Thousands, Except Per Share Amounts)
TETRA stockholders
Income before discontinued operations	$	0.40		$	0.18		$	0.36		$	0.25
Loss from discontinued operations		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Net income	$	0.40		$	0.18		$	0.36		$	0.25
Weighted average shares outstanding		76,579			75,491			76,415			75,434
Diluted income per share attributable to
TETRA stockholders
Income before discontinued operations	$	0.39		$	0.18		$	0.36		$	0.25
Loss from discontinued operations		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Net income	$	0.39		$	0.18		$	0.36		$	0.25
Weighted average shares outstanding		78,315			76,857			77,985			76,819
Depreciation, depletion and amortization (B)	$	36,937		$	45,635		$	74,329		$	82,469

(A) Information for each period reflects TETRA’s process services and Venezuelan fluids and production testing operations as discontinued operations.

(B) DD&A information for 2011 and 2010 includes asset impairments and oil and gas dry hole costs under successful efforts accounting.

Balance Sheet	June 30, 2011		December 31, 2010
	(In Thousands)
Cash	$	323,876	$	65,720
Accounts receivable, net		161,082		162,405
Inventories		94,945		104,305
Other current assets		64,358		82,508
PP&E, net		467,117		739,870
Other assets		139,574		144,820
Total assets	$	1,250,952	$	1,299,628
Current liabilities	$	218,450	$	216,832
Long-term debt		305,035		305,035
Other long-term liabilities		125,859		261,438
Equity		601,608		516,323
Total liabilities and equity	$	1,250,952	$	1,299,628

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Reconciliation of Non-GAAP Financial Measures

This press release refers to net debt, a financial measure not derived in accordance with generally accepted accounting principles, or “GAAP.” The Company has provided the following reconciliation of this non-GAAP financial measure as a supplement to financial results prepared in accordance with GAAP. This reconciliation is not a substitute for financial information prepared in accordance with GAAP, and should be considered within the context of the complete financial results for the given period. 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 Compress Partners, L.P. 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 long-term debt to net debt as of June 30, 2011 and December 31, 2010, is provided below.

	June 30, 2011			December 31, 2010
	(In Thousands)
Long-term debt	$	305,035		$	305,035
Less: cash, excluding Compressco
Partners' cash		(304,543	)		(65,720	)
Net debt	$	492		$	239,315

Contact:

TETRA Technologies, Inc., The Woodlands, Texas

Stuart M. Brightman, 281/367-1983

Fax: 281/364-4346

www.tetratec.com

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