Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 28, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-13455 | |
Entity Registrant Name | TETRA Technologies, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 74-2148293 | |
Entity Address, Address Line One | 24955 Interstate 45 North | |
Entity Address, City or Town | The Woodlands, | |
Entity Address, Postal Zip Code | 77380 | |
Entity Address, State or Province | TX | |
City Area Code | 281 | |
Local Phone Number | 367-1983 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | TTI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Common Stock Shares Outstanding | 128,619,825 | |
Entity Central Index Key | 0000844965 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Revenues from external customers | $ 135,012,000 | $ 95,474,000 | $ 405,765,000 | $ 275,124,000 | |
Cost of Goods and Services Sold [Abstract] | |||||
Depreciation, amortization, and accretion | 8,634,000 | 8,308,000 | 24,061,000 | 25,495,000 | |
Impairment and other charges | 0 | 0 | 2,262,000 | 449,000 | |
Insurance recoveries associated with damaged equipment | 0 | 0 | 3,750,000 | 110,000 | |
Total cost of revenues | 105,539,000 | 79,727,000 | 315,765,000 | 235,075,000 | |
Gross profit | 29,473,000 | 15,747,000 | 90,000,000 | 40,049,000 | |
Exploration and appraisal costs | 936,000 | 0 | 3,500,000 | 0 | |
General and administrative expense | 23,833,000 | 18,714,000 | 68,096,000 | 56,077,000 | |
Interest expense, net | 3,999,000 | 4,083,000 | 10,933,000 | 12,373,000 | |
Other income, net | (1,410,000) | (10,132,000) | (4,858,000) | (14,438,000) | |
Income (loss) before taxes and discontinued operations | 2,115,000 | 3,082,000 | 12,329,000 | (13,963,000) | |
Provision for income taxes | 2,178,000 | 587,000 | 2,899,000 | 2,139,000 | |
Income (loss) before discontinued operations | (63,000) | 2,495,000 | 9,430,000 | (16,102,000) | |
Total income (loss) from discontinued operations | 319,000 | 18,000 | 270,000 | 120,882,000 | |
Net income | 256,000 | 2,513,000 | 9,700,000 | 104,780,000 | |
(Income) loss attributable to noncontrolling interest | [1] | 22,000 | 0 | 43,000 | (306,000) |
Net income attributable to TETRA stockholders | $ 278,000 | $ 2,513,000 | $ 9,743,000 | $ 104,474,000 | |
Basic net income (loss) per common share: | |||||
Income (loss) from continuing operations | $ 0 | $ 0.02 | $ 0.08 | $ (0.13) | |
Income from discontinued operations | 0 | 0 | 0 | 0.96 | |
Net income attributable to TETRA stockholders | $ 0 | $ 0.02 | $ 0.08 | $ 0.83 | |
Weighted average basic shares outstanding (in shares) | 128,407 | 126,733 | 127,890 | 126,489 | |
Diluted net income (loss) per common share: | |||||
Income (loss) from continuing operations (in dollars per share) | $ 0 | $ 0.02 | $ 0.08 | $ (0.13) | |
Income from discontinued operations (in dollars per share) | 0 | 0 | 0.96 | ||
Net income attributable to TETRA stockholders (in dollars per share) | $ 0 | $ 0.02 | $ 0.08 | $ 0.83 | |
Weighted average diluted shares outstanding (in shares) | 128,407 | 128,694 | 129,704 | 126,489 | |
Product sales | |||||
Revenues from external customers | $ 55,494,000 | $ 46,340,000 | $ 195,850,000 | $ 153,955,000 | |
Cost of Goods and Services Sold [Abstract] | |||||
Cost of product sales | 36,571,000 | 31,805,000 | 130,916,000 | 106,265,000 | |
Services | |||||
Revenues from external customers | 79,518,000 | 49,134,000 | 209,915,000 | 121,169,000 | |
Cost of Goods and Services Sold [Abstract] | |||||
Cost of product sales | $ 60,334,000 | $ 39,614,000 | $ 162,276,000 | $ 102,976,000 | |
[1](income) attributable to noncontrolling interests includes zero for the three months ended September 30, 2022 and 2021, respectively, and zero and $333 income for the nine months ended September 30, 2022 and 2021, respectively, related to discontinued operations. |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
(Income) loss from discontinued operations attributable to noncontrolling interest | $ 0 | $ 0 | $ 0 | $ (333,000) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 256 | $ 2,513 | $ 9,700 | $ 104,780 |
Foreign currency translation adjustment from continuing operations, net of taxes of $0 in 2022 and 2021 | (3,873) | (2,150) | (7,095) | (2,772) |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent | (306) | 0 | (306) | 0 |
Comprehensive income (loss) | (3,923) | 363 | 2,299 | 102,008 |
Less: Comprehensive (income) loss attributable to noncontrolling interests | 22 | 0 | 43 | (306) |
Comprehensive income (loss) attributable to TETRA stockholders | $ (3,901) | $ 363 | $ 2,342 | $ 101,702 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustment, tax | $ 0 | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 25,247 | $ 31,551 |
Trade accounts receivable, net of allowances of $475 in 2022 and $289 in 2021 | 105,656 | 91,202 |
Inventories | 71,558 | 69,098 |
Prepaid expenses and other current assets | 21,831 | 18,539 |
Total current assets | 224,292 | 210,390 |
Property, plant, and equipment: | ||
Land and building | 24,066 | 26,380 |
Machinery and equipment | 330,163 | 345,454 |
Automobiles and trucks | 12,939 | 16,174 |
Chemical plants | 57,743 | 61,565 |
Construction in progress | 9,004 | 5,349 |
Total property, plant, and equipment | 433,915 | 454,922 |
Less accumulated depreciation | (338,890) | (365,946) |
Net property, plant, and equipment | 95,025 | 88,976 |
Other assets: | ||
Patents, trademarks and other intangible assets, net of accumulated amortization of $44,994 in 2022 and $44,323 in 2021 | 33,667 | 36,958 |
Operating lease right-of-use assets | 33,415 | 36,973 |
Investments | 13,313 | 11,233 |
Other assets | 13,774 | 13,736 |
Total other assets | 94,169 | 98,900 |
Total assets | 413,486 | 398,266 |
Current liabilities: | ||
Trade accounts payable | 46,162 | 37,943 |
Current portion of long-term debt | 14 | 0 |
Compensation and employee benefits | 29,213 | 20,811 |
Operating lease liabilities, current portion | 7,858 | 8,108 |
Accrued taxes | 8,334 | 7,085 |
Accrued liabilities and other | 19,004 | 21,810 |
Current liabilities associated with discontinued operations | 919 | 1,385 |
Total current liabilities | 111,504 | 97,142 |
Long-term debt, net | 153,873 | 151,936 |
Operating lease liabilities | 27,724 | 31,429 |
Asset retirement obligations | 13,368 | 12,984 |
Deferred income taxes | 1,284 | 1,669 |
Other liabilities | 3,977 | 4,543 |
Total long-term liabilities | 200,226 | 202,561 |
Commitments and contingencies (Note 7) | ||
Equity: | ||
Common stock, par value 0.01 per share; 250,000,000 shares authorized at September 30, 2022 and December 31, 2021; 131,758,500 shares issued at September 30, 2022 and 130,075,838 shares issued at December 31, 2021 | 1,318 | 1,301 |
Additional paid-in capital | 476,530 | 475,624 |
Treasury stock, at cost; 3,138,675 shares held at September 30, 2022 and December 31, 2021 | (19,957) | (19,957) |
Accumulated other comprehensive loss | (54,333) | (46,932) |
Retained deficit | (300,589) | (310,332) |
Total TETRA stockholders’ equity | 102,969 | 99,704 |
Noncontrolling interests | (1,213) | (1,141) |
Total equity | 101,756 | 98,563 |
Total liabilities and equity | $ 413,486 | $ 398,266 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowances for doubtful accounts | $ 475 | $ 289 |
Patents, trademarks, and other intangible assets, accumulated amortization | $ 44,994 | $ 44,323 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 131,758,500 | 130,075,838 |
Treasury stock, shares held | 3,138,675 |
Consolidated Statement of Equit
Consolidated Statement of Equity Statement - USD ($) $ in Thousands | Total | Common Stock Par Value | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Unrealized Gain (Loss) on Investment | Retained Deficit | Noncontrolling Interest |
Balance at beginning of period at Dec. 31, 2020 | $ 71,062 | $ 1,289 | $ 472,134 | $ (19,484) | $ (49,914) | $ (413,665) | $ 80,702 | |
Net income, retained deficit | 108,714 | |||||||
Net income | 109,047 | 333 | ||||||
Translation adjustment, net of taxes | (2,779) | (2,779) | 0 | |||||
Comprehensive income | 106,268 | |||||||
Deconsolidation of CSI Compressco, currency translation | 7,168 | |||||||
Deconsolidation of CSI Compressco | (75,607) | (82,775) | ||||||
Equity award activity | 6 | 6 | ||||||
Treasury stock activity, net | (449) | (449) | ||||||
Equity compensation expense | 1,542 | 962 | 580 | |||||
Other | (355) | (574) | 219 | |||||
Balance at end of period at Mar. 31, 2021 | 102,467 | 1,295 | 472,522 | (19,933) | (45,525) | (304,951) | (941) | |
Balance at beginning of period at Dec. 31, 2020 | 71,062 | 1,289 | 472,134 | (19,484) | (49,914) | (413,665) | 80,702 | |
Net income, retained deficit | 104,474 | |||||||
Net income | 104,780 | |||||||
Other comprehensive income (loss) | 0 | |||||||
Comprehensive income | 102,008 | |||||||
Balance at end of period at Sep. 30, 2021 | 100,078 | 1,301 | 474,544 | (19,945) | (45,518) | (309,191) | (1,113) | |
Balance at beginning of period at Mar. 31, 2021 | 102,467 | 1,295 | 472,522 | (19,933) | (45,525) | (304,951) | (941) | |
Net income, retained deficit | (6,753) | |||||||
Net income | (6,780) | (27) | ||||||
Translation adjustment, net of taxes | 2,157 | 2,157 | 0 | |||||
Comprehensive income | (4,623) | |||||||
Deconsolidation of CSI Compressco | (119) | 119 | ||||||
Equity award activity | 2 | 2 | ||||||
Treasury stock activity, net | (6) | (6) | ||||||
Equity compensation expense | 1,592 | 1,592 | 0 | |||||
Other | (256) | (242) | (14) | |||||
Balance at end of period at Jun. 30, 2021 | 99,057 | 1,297 | 473,872 | (19,939) | (43,368) | (311,704) | (1,101) | |
Net income, retained deficit | 2,513 | 2,513 | ||||||
Net income | 2,513 | 0 | ||||||
Translation adjustment, net of taxes | (2,150) | (2,150) | 0 | |||||
Other comprehensive income (loss) | 0 | |||||||
Comprehensive income | 363 | |||||||
Equity award activity | 4 | 4 | ||||||
Treasury stock activity, net | (6) | (6) | ||||||
Equity compensation expense | 1,057 | 1,057 | 0 | |||||
Other | (397) | (385) | (12) | |||||
Balance at end of period at Sep. 30, 2021 | 100,078 | 1,301 | 474,544 | (19,945) | (45,518) | (309,191) | (1,113) | |
Balance at beginning of period at Dec. 31, 2021 | 98,563 | 1,301 | 475,624 | (19,957) | (46,932) | $ 0 | (310,332) | (1,141) |
Net income, retained deficit | 7,720 | |||||||
Net income | 7,719 | (1) | ||||||
Translation adjustment, net of taxes | 192 | 0 | ||||||
Comprehensive income | 7,911 | |||||||
Equity compensation expense | 1,104 | 1,104 | 0 | |||||
Other | (676) | 7 | (673) | (10) | ||||
Balance at end of period at Mar. 31, 2022 | 106,902 | 1,308 | 476,055 | (19,957) | (46,740) | 0 | (302,612) | (1,152) |
Balance at beginning of period at Dec. 31, 2021 | 98,563 | 1,301 | 475,624 | (19,957) | (46,932) | 0 | (310,332) | (1,141) |
Net income, retained deficit | 9,743 | |||||||
Net income | 9,700 | |||||||
Other comprehensive income (loss) | (306) | |||||||
Comprehensive income | 2,299 | |||||||
Balance at end of period at Sep. 30, 2022 | 101,756 | 1,318 | 476,530 | (19,957) | (54,027) | (306) | (300,589) | (1,213) |
Balance at beginning of period at Mar. 31, 2022 | 106,902 | 1,308 | 476,055 | (19,957) | (46,740) | 0 | (302,612) | (1,152) |
Net income, retained deficit | 1,745 | |||||||
Net income | 1,725 | (20) | ||||||
Translation adjustment, net of taxes | (3,414) | (3,414) | 0 | |||||
Comprehensive income | (1,689) | |||||||
Equity compensation expense | 1,159 | 1,159 | 0 | |||||
Other | (836) | 6 | (833) | (9) | ||||
Balance at end of period at Jun. 30, 2022 | 105,536 | 1,314 | 476,381 | (19,957) | (50,154) | 0 | (300,867) | (1,181) |
Net income, retained deficit | 278 | 278 | ||||||
Net income | 256 | (22) | ||||||
Translation adjustment, net of taxes | (3,873) | (3,873) | 0 | |||||
Other comprehensive income (loss) | (306) | (306) | ||||||
Comprehensive income | (3,923) | |||||||
Equity compensation expense | 1,098 | 1,098 | 0 | |||||
Other | (955) | 4 | (949) | (10) | ||||
Balance at end of period at Sep. 30, 2022 | $ 101,756 | $ 1,318 | $ 476,530 | $ (19,957) | $ (54,027) | $ (306) | $ (300,589) | $ (1,213) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Operating activities: | ||
Net income | $ 9,700 | $ 104,780 |
Warrants fair value adjustment | 0 | (143) |
Reconciliation of net income to net cash provided by operating activities: | ||
Depreciation, amortization, and accretion | 24,061 | 25,524 |
Gain on GP Sale | 0 | (120,574) |
Impairment and other charges | 2,262 | 449 |
Loss (gain) on investments | 159 | (11,803) |
Equity-based compensation expense | 3,361 | 3,611 |
Provision for doubtful accounts | 31 | 129 |
Amortization and expense of financing costs | 2,378 | 2,320 |
Insurance recoveries associated with damaged equipment | (3,750) | (110) |
Warrants fair value adjustment | 0 | (143) |
Gain on sale of assets | (980) | (479) |
Other non-cash credits | (425) | (359) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (16,661) | (15,246) |
Inventories | (5,707) | 2,449 |
Prepaid expenses and other current assets | (3,782) | (2,927) |
Trade accounts payable and accrued expenses | 17,069 | 25,231 |
Other | (1,768) | (2,428) |
Net cash provided by (used in) operating activities | 25,948 | 10,424 |
Investing activities: | ||
Purchases of property, plant, and equipment, net | 32,678 | 14,620 |
Proceeds from GP Sale, net of cash divested | 0 | 566 |
Proceeds from sale of property, plant, and equipment | 1,489 | 1,016 |
Proceeds from insurance recoveries associated with damaged equipment | 3,750 | 110 |
Other investing activities | (841) | 764 |
Net cash used in investing activities | (28,280) | (12,164) |
Financing activities: | ||
Proceeds from long-term debt | 1,695 | 0 |
Principal payments on long-term debt | (3,292) | (37,477) |
Payments on financing lease obligations | (1,174) | 0 |
Repurchase of common stock | 0 | (461) |
Debt issuance costs and other financing activities | 0 | (718) |
Net cash used in financing activities | (2,771) | (38,656) |
Effect of exchange rate changes on cash | (1,201) | (1,635) |
Decrease in cash and cash equivalents | (6,304) | (42,031) |
Cash and cash equivalents at beginning of period | 31,551 | 83,894 |
Cash and cash equivalents at beginning of period associated with discontinued operations | 0 | 16,577 |
Cash and cash equivalents at beginning of period associated with continuing operations | 31,551 | 67,317 |
Cash and cash equivalents at end of period associated with continuing operations | $ 25,247 | $ 41,863 |
Consolidated Statement of Equ_2
Consolidated Statement of Equity (Parenthetical) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Statement of Stockholders' Equity [Abstract] | |||
Translation adjustment, tax | $ 0 | $ 0 | $ 0 |
Other | (955) | (836) | (397) |
Other comprehensive income (loss) | (306) | 0 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 101,756 | $ 105,536 | $ 100,078 |
Organization, Basis of Presenta
Organization, Basis of Presentation, and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Organization, Basis of Presentation, and Significant Accounting Policies | ORGANIZATION, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES Organization We are an industrial and oil and gas products and services company operating on six continents, focused on bromine-based completion fluids, calcium chloride, water management solutions, frac flowback and production well testing services. We were incorporated in Delaware in 1981 and are composed of two segments – Completion Fluids & Products Division and Water & Flowback Services Division. Unless the context requires otherwise, when we refer to “we,” “us,” and “our,” we are describing TETRA Technologies, Inc. and its subsidiaries on a consolidated basis. Presentation Our unaudited consolidated financial statements include the accounts of our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The information furnished reflects all normal recurring adjustments, which are, in the opinion of management, necessary to provide a fair statement of the results for the interim periods. Operating results for the period ended September 30, 2022 are not necessarily indicative of results that may be expected for the twelve months ended December 31, 2022. We have reflected the operations of our former Compression Division and Offshore Division as discontinued operations for all periods presented. See Note 2 - “Discontinued Operations” for further information. Unless otherwise noted, amounts and disclosures throughout these Notes to Consolidated Financial Statements relate solely to continuing operations and exclude all discontinued operations. The accompanying unaudited consolidated financial statements have been prepared in accordance with Rule 10-01 of Regulation S-X for interim financial statements required to be filed with the U.S. Securities and Exchange Commission (“SEC”) and do not include all information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. These financial statements should be read in conjunction with the financial statements for the year ended December 31, 2021 and notes thereto included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2022 (the “ 2021 Annual Report ”). Significant Accounting Policies Our significant accounting policies are described in the notes to our consolidated financial statements for the year ended December 31, 2021 included in our 2021 Annual Report . There have been no significant changes in our accounting policies or the application thereof during the third quarter of 2022. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclose contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenses, and impairments during the reporting period. Actual results could differ from those estimates, and such differences could be material. Reclassifications Certain previously reported financial information has been reclassified to conform to the current year's presentation. The impact of reclassifications was not significant to the prior year's overall presentation. Foreign Currency Translation We have designated the Euro, the British pound, the Canadian dollar, the Brazilian real, and the Mexican peso as the functional currencies for our operations in Finland and Sweden, the United Kingdom, Canada, Brazil, and certain of our operations in Mexico, respectively. The United States dollar is the designated functional currency for all of our other non-U.S. operations. The cumulative translation effects of translating the applicable accounts from the functional currencies into the United States dollar at current exchange rates are included as a separate component of equity. Foreign currency exchange (gains) and losses are included in other (income) expense, net and totaled $(1.1) million and $(2.7) million during the three and nine months ended September 30, 2022, respectively, and $(0.1) million and $(1.1) million during the three and nine months ended September 30, 2021, respectively. Fair Value Measurements We utilize fair value measurements to account for certain items and account balances within our consolidated financial statements. Fair value measurements are utilized on a recurring basis in the determination of the carrying values of certain investments. See Note 8 - “Fair Value Measurements” for further discussion. Fair value measurements are also utilized on a nonrecurring basis in certain circumstances, including the impairment of long-lived assets (a Level 3 fair value measurement). Supplemental Cash Flow Information Supplemental cash flow information from continuing and discontinued operations is as follows: Nine Months Ended 2022 2021 (in thousands) Supplemental cash flow information (1) : Interest paid $ 11,578 $ 10,954 Income taxes paid $ 2,525 $ 1,423 Increase (decrease) in accrued capital expenditures $ (4,101) $ 463 (1) Prior-year information includes the activity for CSI Compressco for January only. New Accounting Pronouncements Standards not yet adopted In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the more timely recognition of losses on financial instruments not accounted for at fair value through net income. The provisions require credit impairments to be measured over the contractual life of an asset and developed with consideration for past events, current conditions, and forecasts of future economic information. Credit impairment will be accounted for as an allowance for credit losses deducted from the amortized cost basis at each reporting date. We are continuing to work through our implementation plan which includes evaluating the impact on our allowance for doubtful accounts methodology, identifying new reporting requirements, and implementing changes to business processes, systems, and controls to support adoption of the standard. Upon adoption, the allowance for doubtful accounts is expected to increase with an offsetting adjustment to retained earnings. Updates at each reporting date after initial adoption will be recorded through selling, general, and administrative expense. ASU 2016-13 will become effective for us in the first quarter of fiscal 2023. We continue to assess the potential effects of these changes to our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848)”, which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. Entities may elect to apply the amendments for contract modifications made on or before December 31, 2022. During 2021, our asset-based credit agreement and term credit agreement were |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS On January 29, 2021, we entered into the Purchase and Sale Agreement with Spartan Energy Partners, LP (“Spartan”) pursuant to which we sold the general partner of CSI Compressco, including the incentive distribution rights (“IDRs”) in CSI Compressco LP, (“CSI Compressco”), and approximately 23.1% of the outstanding limited partner interests in CSI Compressco, in exchange for the combination of $13.9 million in cash and $3.1 million in contingent consideration in the form of cash and/or CSI Compressco common units if CSI Compressco achieves certain financial targets on or before December 31, 2022. Throughout this Quarterly Report, we refer to this transaction as the “GP Sale.” Following the closing of the transaction, we retained an interest in CSI Compressco representing approximately 3.7% of the outstanding common units as of September 30, 2022. As a result of these transactions, we no longer consolidate CSI Compressco as of January 29, 2021. We recognized a primarily non-cash accounting gain of $120.6 million during the three-month period ended March 31, 2021 related to the GP Sale. The gain is included in income (loss) from discontinued operations, net of taxes in our consolidated statement of operations. We provided back-office support to CSI Compressco under a Transition Services Agreement that ended during the three-month period ended March 31, 2022. During the second quarter of 2022, we sold equipment to CSI Compressco for approximately $0.3 million. Our interest in CSI Compressco and the general partner represented substantially all of our Compression Division. In addition, on March 1, 2018, we closed a series of related transactions that resulted in the disposition of our Offshore Division, consisting of our Offshore Services and Maritech segments. Our former Compression and Offshore Divisions are reported as discontinued operations for all periods presented. Our consolidated balance sheets and consolidated statements of operations report discontinued operations separate from continuing operations. Our consolidated statements of comprehensive income, statements of equity and statements of cash flows combine continuing and discontinued operations. Our prior-year consolidated statement of operations, statement of comprehensive income, statement of equity and statement of cash flows include CSI Compressco activity for January 1 through January 29 in 2021. Our consolidated statements of cash flows for the nine-month period ended September 30, 2021 included $3.0 million of capital expenditures related to our former Compression division. A summary of financial information related to our discontinued operations is as follows: Reconciliation of the Line Items Constituting Pretax Loss from Discontinued Operations to the After-Tax Loss from Discontinued Operations (in thousands, unaudited) Three Months Ended Offshore Services Major classes of line items constituting income from discontinued operations General and administrative expense $ 510 Pretax loss from discontinued operations (510) Pretax gain on disposal of discontinued operations 829 Total pretax income from discontinued operations 319 Income from discontinued operations attributable to TETRA stockholders $ 319 Three Months Ended Compression Offshore Services Total Major classes of line items constituting income from discontinued operations Cost of revenues $ — $ (174) $ (174) General and administrative expense — 6 6 Other (income) expense, net 150 — 150 Pretax income (loss) from discontinued operations (150) 168 18 Income from discontinued operations attributable to TETRA stockholders $ 18 Nine Months Ended Offshore Services Maritech Total Major classes of line items constituting income from discontinued operations Cost of revenues $ 54 $ — $ 54 General and administrative expense 533 — 533 Other expense, net — (28) (28) Pretax income (loss) from discontinued operations (587) 28 (559) Pretax gain on disposal of discontinued operations 829 Total pretax income from discontinued operations 270 Income from discontinued operations attributable to TETRA stockholders $ 270 Nine Months Ended Compression Offshore Services Total Major classes of line items constituting income from discontinued operations Revenue $ 18,968 $ — $ 18,968 Cost of revenues 11,474 (146) 11,328 General and administrative expense 2,796 6 2,802 Interest expense, net 4,336 — 4,336 Other expense, net 164 — 164 Pretax income from discontinued operations 198 140 338 Pretax gain on disposal of discontinued operations 120,574 Total pretax income from discontinued operations 120,912 Income tax provision 30 Total income from discontinued operations 120,882 Loss from discontinued operations attributable to noncontrolling interest (333) Income from discontinued operations attributable to TETRA stockholders $ 120,549 Reconciliation of Major Classes of Assets and Liabilities of the Discontinued Operations to Amounts Presented Separately in the Statement of Financial Position (in thousands) September 30, 2022 Offshore Services Maritech Total (unaudited) Carrying amounts of major classes of liabilities included as part of discontinued operations Trade payables $ 319 $ — $ 319 Accrued liabilities and other 505 95 600 Total liabilities associated with discontinued operations $ 824 $ 95 $ 919 December 31, 2021 Offshore Services Maritech Total Carrying amounts of major classes of liabilities included as part of discontinued operations Trade payables $ 1,157 $ — $ 1,157 Accrued liabilities and other — 228 228 Total liabilities associated with discontinued operations $ 1,157 $ 228 $ 1,385 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | REVENUE FROM CONTRACTS WITH CUSTOMERS Our contract asset balances, primarily associated with contractual invoicing milestones and/or customer documentation requirements, were $33.4 million and $20.5 million as of September 30, 2022 and December 31, 2021, respectively. Contract assets, along with billed trade accounts receivable, are included in trade accounts receivable in our consolidated balance sheets. Unearned income includes amounts in which the Company was contractually allowed to invoice prior to satisfying the associated performance obligations. We are also party to agreements in which Standard Lithium Ltd. (“Standard Lithium”) has the right to explore, and an option to acquire the rights to produce and extract lithium in our Arkansas leases as well as other potential resources in the Mojave region of California. The Company receives cash and stock of Standard Lithium under the terms of the arrangements. The cash and stock component of consideration received is initially recorded as unearned income based on the quoted market price at the time the stock is received, then recognized in income over the contract term. Unearned income balances were $4.1 million and $3.2 million as of September 30, 2022 and December 31, 2021, respectively, and vary based on the timing of invoicing and performance obligations being met and the timing of the receipt of stock and cash from Standard Lithium. Unearned income is included in accrued liabilities and other in our consolidated balance sheets. During the three-month and nine-month periods ended September 30, 2022 and September 30, 2021, contract costs were not significant. During the three-month and nine-month periods ended September 30, 2022, we recognized approximately $2.6 million and $1.7 million of revenue, respectively, deferred in unearned income as of the beginning of the period. These amounts are included in products sales and services revenues in our consolidated statements of operations. Other revenue recognized during the three-month and nine-month periods ended September 30, 2021 deferred in unearned income as of the beginning of the period was not significant. We also recognized approximately $2.4 million and $1.3 million of income during the nine-month periods ended September 30, 2022 and September 30, 2021, respectively, related to the Standard Lithium arrangements. These amounts are included in other income, net in our consolidated statements of operations. We disaggregate revenue from contracts with customers into Product Sales and Services within each segment, as noted in our two reportable segments in Note 10 - “Industry Segments.” In addition, we disaggregate revenue from contracts with customers by geography based on the following table below. Three Months Ended Nine Months Ended 2022 2021 2022 2021 (in thousands) Completion Fluids & Products United States $ 30,261 $ 22,529 $ 103,449 $ 72,353 International 28,902 26,162 103,706 87,466 59,163 48,691 207,155 159,819 Water & Flowback Services United States 67,641 42,234 182,059 106,630 International 8,208 4,549 16,551 8,675 75,849 46,783 198,610 115,305 Total Revenue United States 97,902 64,763 285,508 178,983 International 37,110 30,711 120,257 96,141 $ 135,012 $ 95,474 $ 405,765 $ 275,124 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Components of inventories as of September 30, 2022 and December 31, 2021 are as follows: September 30, 2022 December 31, 2021 (in thousands) Finished goods $ 60,069 $ 59,925 Raw materials 4,267 2,827 Parts and supplies 5,735 4,713 Work in progress 1,487 1,633 Total inventories $ 71,558 $ 69,098 |
Investments
Investments | 9 Months Ended |
Sep. 30, 2022 | |
Investments in and Advances to Affiliates [Abstract] | |
Investments | INVESTMENTS Following the closing of the GP Sale, we continue to own approximately 3.7% of the outstanding CSI Compressco common units as of September 30, 2022. In addition, we are party to agreements in which Standard Lithium has the right to explore, and an option to acquire the rights to produce and extract lithium in our Arkansas leases as well as additional potential resources in the Mojave region of California. The Company receives cash and stock of Standard Lithium (NYSE:SLI) under the terms of the arrangements. The cash and stock component of consideration received is initially recorded as unearned income based on the quoted market price at the time the stock is received, then recognized in income over the contract term. See Note 8 - “Fair Value Measurements” for further information. In May 2021, we signed a memorandum of understanding (“MOU”) with CarbonFree, a carbon capture company with patented technologies that capture CO 2 and mineralize emissions to make commercial, carbon-negative chemicals. Although the MOU expired in May 2022 at the end of its twelve-month term, we have an intellectual property joint development agreement in place with CarbonFree to evaluate potential new technologies. In December 2021, we invested $5.0 million in a convertible note issued by CarbonFree. Our exposure to potential losses by CarbonFree is limited to our investment in the convertible note and associated accrued interest. Our investments as of September 30, 2022 and December 31, 2021 consist of the following: September 30, 2022 December 31, 2021 (in thousands) Investment in CSI Compressco $ 6,128 $ 6,233 Investment in CarbonFree 5,453 5,000 Investment in Standard Lithium 1,732 — Total Investments $ 13,313 $ 11,233 |
Long-Term Debt and Other Borrow
Long-Term Debt and Other Borrowings | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt Disclosure | LONG-TERM DEBT AND OTHER BORROWINGS Consolidated long-term debt as of September 30, 2022 and December 31, 2021, consists of the following: Scheduled Maturity September 30, 2022 December 31, 2021 (in thousands) Swedish Credit Facility December 31, 2022 $ 14 $ — Asset-based credit agreement (1) May 31, 2025 — 67 Term credit agreement (2) September 10, 2025 153,873 151,869 Total debt 153,887 151,936 Less current portion (14) — Total long-term debt $ 153,873 $ 151,936 (1) Net of unamortized deferred financing costs of zero and $1.5 million as of September 30, 2022 and December 31, 2021, respectively. Deferred financing costs of $1.2 million as of September 30, 2022, were classified as other long-term assets on the accompanying consolidated balance sheet as there was no outstanding balance on our asset-based credit agreement. (2) Net of unamortized discount of $3.7 million and $4.5 million as of September 30, 2022 and December 31, 2021, respectively, and net of unamortized deferred financing costs of $5.5 million and $6.7 million as of September 30, 2022 and December 31, 2021, respectively. Swedish Credit Facility In January 2022, the Company entered into a revolving credit facility for seasonal working capital needs of subsidiaries in Sweden (“Swedish Credit Facility”). As of September 30, 2022, we had less than US$0.1 million outstanding and availability of approximately US$4.5 million under the Swedish Credit Facility. During each year, all outstanding loans under the Swedish Credit Facility must be repaid for at least 30 consecutive days. Borrowings bear interest at a rate of 2.95% per annum. The Swedish Credit Facility expires on December 31, 2022 and the Company intends to renew it annually. Finland Credit Agreement In January 2022, the Company also entered into an agreement guaranteed by certain accounts receivable and inventory in Finland (“Finland Credit Agreement”). As of September 30, 2022, there were US$1.4 million of letters of credit outstanding against the Finland Credit Agreement. The Finland Credit Agreement expires on January 31, 2023 and the Company intends to renew it annually. ABL Credit Agreement As of September 30, 2022, our asset-based credit agreement (“ABL Credit Agreement”) provides for a senior secured revolving credit facility of up to $80.0 million, with a $20.0 million accordion. The credit facility is subject to a borrowing base determined monthly by reference to the value of inventory and accounts receivable, and includes a sublimit of $20.0 million for letters of credit, a swingline loan sublimit of $11.5 million, and a $15.0 million sub-facility subject to a borrowing base consisting of certain trade receivables and inventory in the United Kingdom. As of September 30, 2022, we had zero outstanding and $4.7 million in letters of credit and guarantees under our ABL Credit Agreement, respectively. Subject to compliance with the covenants, borrowing base, and other provisions of the ABL Credit Agreement that may limit borrowings, we had availability of $62.6 million under this agreement. Term Credit Agreement As of September 30, 2022, we had $153.9 million outstanding, net of unamortized discounts and unamortized deferred financing costs under our term credit agreement (“Term Credit Agreement”). The Term Credit Agreement requires us to offer to prepay a percentage of Excess Cash Flow (as defined in the Term Credit Agreement) within five business days of filing our Annual Report. As of September 30, 2022, the interest rate per annum on borrowings under the Term Credit Agreement is 8.77%. For additional information on our Term Credit agreement, see our 2021 Annual Report . Our credit agreements contain certain affirmative and negative covenants, including covenants that restrict the ability to pay dividends or other restricted payments. As of September 30, 2022, we are in compliance with all covenants under the credit agreements. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Litigation We are named defendants in several lawsuits and respondents in certain governmental proceedings arising in the ordinary course of business. While the outcome of lawsuits or other proceedings against us cannot be predicted with certainty, management does not consider it reasonably possible that a loss resulting from such lawsuits or other proceedings in excess of any amounts accrued has been incurred that is expected to have a material adverse impact on our financial condition, results of operations, or liquidity. We have a Bromine Requirements Sales Agreement (“Sales Agreement”) to purchase a certain volume of elemental bromine from LANXESS Corporation (formerly Chemtura Corporation, “LANXESS”), included in Product Purchase Obligations below. LANXESS notified us of a proposed non-ordinary course increase to the price of bromine, which we believe is not justified nor appropriate under the Sales Agreement. After lengthy discussions, we and LANXESS were unable to reach an agreement regarding the validity of the proposed price increase; therefore, we filed for arbitration in May 2022 seeking declaratory relief, among other relief, declaring that the proposed price increase is invalid. In September 2022, LANXESS filed a counterclaim with the American Arbitration Association seeking declaratory relief, among other relief, declaring that the proposed price increase was valid and seeking damages in the amount of the price increase from July 1, 2022 forward. In October 2022, we filed a reply to LANXESS’ counterclaim disputing the counterclaim and amending our original demand. The arbitration is currently pending, and no final hearing date has been set. We are unable to predict the duration, scope or impact of this proceeding on our consolidated financial statements. There have been no other material developments in our legal proceedings during the quarter ended September 30, 2022. For a discussion of our legal proceedings, please see our 2021 Annual Report . Product Purchase Obligations In the normal course of our Completion Fluids & Products Division operations, we enter into supply agreements with certain manufacturers of various raw materials and finished products. Some of these agreements have terms and conditions that specify a minimum or maximum level of purchases over the term of the agreement. Other agreements require us to purchase the entire output of the raw material or finished product produced by the manufacturer. Our purchase obligations under these agreements apply only with regard to raw materials and finished products that meet specifications set forth in the agreements. We recognize a liability for the purchase of such products at the time we receive them. As of September 30, 2022, the aggregate amount of the fixed and determinable portion of the purchase obligation pursuant to our Completion Fluids & Products Division’s supply agreements was approximately $120.2 million, including $1.0 million for the remainder of 2022, an average of $17.9 million per year from 2023 to 2026 and $47.5 million thereafter, extending through 2029. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Financial Instruments Investments We retained an interest in CSI Compressco (NASDAQ: CCLP) representing approximately 3.7% of CSI Compressco’s outstanding common units as of September 30, 2022. In December 2021, we invested in a $5.0 million convertible note issued by CarbonFree. Our investment in CarbonFree is recorded in investments on our consolidated balance sheets based on an internal valuation with assistance from a third-party valuation specialist (a Level 3 fair value measurement). The valuation is impacted by key assumptions, including the assumed probability and timing of potential debt or equity offerings. The convertible note includes an option to convert the note into equity interests issued by CarbonFree. The change in the fair value of the embedded option is included in other (income) expense, net in our consolidated statements of operations. The change in the fair value of the convertible note, excluding the embedded option, is included in other comprehensive income in our consolidated statements of comprehensive income. We are party to agreements in which Standard Lithium has the right to explore, produce and extract lithium in our Arkansas leases as well as additional potential resources in the Mojave region of California. The Company receives cash and stock of Standard Lithium (NYSE: SLI) under the terms of the arrangements. The cash and stock component of consideration received is initially recorded as unearned income based on the quoted market price at the time the stock is received, then recognized in income over the contract term. Our investments in CSI Compressco and Standard Lithium are recorded based on the quoted market stock price in active markets (a Level 1 fair value measurement). Changes in the value of stock are recorded in other income (expense) in our consolidated statements of operations. Recurring and nonrecurring fair value measurements by valuation hierarchy as of September 30, 2022 and December 31, 2021, are as follows: Fair Value Measurements Using Total as of Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs Description September 30, 2022 (Level 1) (Level 2) (Level 3) (in thousands) Investment in CSI Compressco $ 6,128 $ 6,128 $ — $ — Investment in CarbonFree 5,453 — — 5,453 Investment in Standard Lithium 1,732 1,732 — — Investments $ 13,313 Fair Value Measurements Using Total as of Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs Description December 31, 2021 (Level 1) (Level 2) (Level 3) (in thousands) Investment in CSI Compressco $ 6,233 $ 6,233 $ — $ — Investment in CarbonFree 5,000 — — 5,000 Investments $ 11,233 Impairments During the second quarter of 2022, our Completion Fluids & Products and Water & Flowback Services Divisions each recorded certain inventory and long-lived tangible asset impairments. Our Water & Flowback Services Division recorded impairments, including $1.3 million of equipment, $0.2 million of inventory, and $0.5 million for land and buildings. The Completion Fluids & Products Division also recorded a $0.2 million impairment related to obsolete inventory. The inventory and equipment were written down to zero or scrap value. The fair value of land and buildings of $0.4 million was estimated based on recent sales price per square acre or square foot of comparable properties (a Level 3 fair value measurement) in accordance with the fair value hierarchy. The fair values of cash, restricted cash, accounts receivable, accounts payable, accrued liabilities, short-term borrowings and long-term debt pursuant to TETRA’s ABL Credit Agreement, Swedish Credit Agreement and Term Credit Agreement approximate their carrying amounts. See Note 6 - “Long-Term Debt and Other Borrowings” for further discussion. |
Net Income (Loss) per Share
Net Income (Loss) per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Share | NET INCOME (LOSS) PER SHARE The following is a reconciliation of the weighted average number of common shares outstanding with the number of shares used in the computations of net income (loss) per common and common equivalent share: Three Months Ended Nine Months Ended 2022 2021 2022 2021 (in thousands) Number of weighted average common shares outstanding 128,407 126,733 127,890 126,489 Assumed exercise of equity awards and warrants — 1,961 1,814 — Average diluted shares outstanding 128,407 128,694 129,704 126,489 The average diluted shares outstanding excludes the impact of certain outstanding equity awards and warrants of 1.5 million shares for the three-month period ended September 30, 2022 and 1.8 million shares for the nine-month period ended September 30, 2021 as the inclusion of these shares would have been anti-dilutive due to the net loss from continuing operations recorded during these periods. |
Industry Segments
Industry Segments | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Industry Segments | INDUSTRY SEGMENTS We manage our operations through two segments: Completion Fluids & Products Division and Water & Flowback Services Division. Summarized financial information concerning the business segments is as follows: Three Months Ended Nine Months Ended 2022 2021 2022 2021 (in thousands) Revenues from external customers Product sales Completion Fluids & Products Division $ 55,354 $ 46,322 $ 195,469 $ 153,905 Water & Flowback Services Division 140 18 381 50 Consolidated $ 55,494 $ 46,340 $ 195,850 $ 153,955 Services Completion Fluids & Products Division $ 3,809 $ 2,369 $ 11,686 $ 5,914 Water & Flowback Services Division 75,709 46,765 198,229 115,255 Consolidated $ 79,518 $ 49,134 $ 209,915 $ 121,169 Total revenues Completion Fluids & Products Division $ 59,163 $ 48,691 $ 207,155 $ 159,819 Water & Flowback Services Division 75,849 46,783 198,610 115,305 Consolidated $ 135,012 $ 95,474 $ 405,765 $ 275,124 Income (loss) before taxes Completion Fluids & Products Division $ 12,357 $ 14,675 $ 46,910 $ 40,113 Water & Flowback Services Division 6,482 (1,807) 10,808 (12,265) Interdivision Eliminations 3 3 9 9 Corporate Overhead (1) (16,727) (9,789) (45,398) (41,820) Consolidated $ 2,115 $ 3,082 $ 12,329 $ (13,963) (1) Amounts reflected include the following general corporate expenses: Three Months Ended Nine Months Ended 2022 2021 2022 2021 (in thousands) General and administrative expense $ 11,968 $ 8,409 $ 33,856 $ 30,973 Depreciation and amortization 165 228 528 646 Interest expense 4,437 4,247 11,978 13,354 Warrants fair value adjustment (income) expense — (3,164) — (143) Other general corporate (income) expense, net 157 69 (964) (3,010) Total $ 16,727 $ 9,789 $ 45,398 $ 41,820 |
Organization, Basis of Presen_2
Organization, Basis of Presentation, and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Nature of operations | Organization We are an industrial and oil and gas products and services company operating on six continents, focused on bromine-based completion fluids, calcium chloride, water management solutions, frac flowback and production well testing services. We were incorporated in Delaware in 1981 and are composed of two segments – Completion Fluids & Products Division and Water & Flowback Services Division. Unless the context requires otherwise, when we refer to “we,” “us,” and “our,” we are describing TETRA Technologies, Inc. and its subsidiaries on a consolidated basis. |
Principles of consolidation policy | Presentation Our unaudited consolidated financial statements include the accounts of our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The information furnished reflects all normal recurring adjustments, which are, in the opinion of management, necessary to provide a fair statement of the results for the interim periods. Operating results for the period ended September 30, 2022 are not necessarily indicative of results that may be expected for the twelve months ended December 31, 2022. We have reflected the operations of our former Compression Division and Offshore Division as discontinued operations for all periods presented. See Note 2 - “Discontinued Operations” for further information. Unless otherwise noted, amounts and disclosures throughout these Notes to Consolidated Financial Statements relate solely to continuing operations and exclude all discontinued operations. The accompanying unaudited consolidated financial statements have been prepared in accordance with Rule 10-01 of Regulation S-X for interim financial statements required to be filed with the U.S. Securities and Exchange Commission (“SEC”) and do not include all information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. These financial statements should be read in conjunction with the financial statements for the year ended December 31, 2021 and notes thereto included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2022 (the “ 2021 Annual Report ”). |
Use of estimates policy | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclose contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenses, and impairments during the reporting period. Actual results could differ from those estimates, and such differences could be material. |
Reclassifications | Reclassifications Certain previously reported financial information has been reclassified to conform to the current year's presentation. The impact of reclassifications was not significant to the prior year's overall presentation. |
Foreign currency translation policy | Foreign Currency Translation We have designated the Euro, the British pound, the Canadian dollar, the Brazilian real, and the Mexican peso as the functional currencies for our operations in Finland and Sweden, the United Kingdom, Canada, Brazil, and certain of our operations in Mexico, respectively. The United States dollar is the designated functional currency for all of our other non-U.S. operations. The cumulative translation effects of translating the applicable accounts from the functional currencies into the United States dollar at current exchange rates are included as a separate component of equity. Foreign currency exchange (gains) and losses are included in other (income) expense, net and totaled $(1.1) million and $(2.7) million during the three and nine months ended September 30, 2022, respectively, and $(0.1) million and $(1.1) million during the three and nine months ended September 30, 2021, respectively. |
Fair value measurements | Fair Value Measurements We utilize fair value measurements to account for certain items and account balances within our consolidated financial statements. Fair value measurements are utilized on a recurring basis in the determination of the carrying values of certain investments. See Note 8 - “Fair Value Measurements” for further discussion. Fair value measurements are also utilized on a nonrecurring basis in certain circumstances, including the impairment of long-lived assets (a Level 3 fair value measurement). |
New accounting pronouncements | New Accounting Pronouncements Standards not yet adopted In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the more timely recognition of losses on financial instruments not accounted for at fair value through net income. The provisions require credit impairments to be measured over the contractual life of an asset and developed with consideration for past events, current conditions, and forecasts of future economic information. Credit impairment will be accounted for as an allowance for credit losses deducted from the amortized cost basis at each reporting date. We are continuing to work through our implementation plan which includes evaluating the impact on our allowance for doubtful accounts methodology, identifying new reporting requirements, and implementing changes to business processes, systems, and controls to support adoption of the standard. Upon adoption, the allowance for doubtful accounts is expected to increase with an offsetting adjustment to retained earnings. Updates at each reporting date after initial adoption will be recorded through selling, general, and administrative expense. ASU 2016-13 will become effective for us in the first quarter of fiscal 2023. We continue to assess the potential effects of these changes to our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848)”, which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. Entities may elect to apply the amendments for contract modifications made on or before December 31, 2022. During 2021, our asset-based credit agreement and term credit agreement were |
Organization, Basis of Presen_3
Organization, Basis of Presentation, and Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental cash flow information from continuing and discontinued operations is as follows: Nine Months Ended 2022 2021 (in thousands) Supplemental cash flow information (1) : Interest paid $ 11,578 $ 10,954 Income taxes paid $ 2,525 $ 1,423 Increase (decrease) in accrued capital expenditures $ (4,101) $ 463 (1) Prior-year information includes the activity for CSI Compressco for January only. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | A summary of financial information related to our discontinued operations is as follows: Reconciliation of the Line Items Constituting Pretax Loss from Discontinued Operations to the After-Tax Loss from Discontinued Operations (in thousands, unaudited) Three Months Ended Offshore Services Major classes of line items constituting income from discontinued operations General and administrative expense $ 510 Pretax loss from discontinued operations (510) Pretax gain on disposal of discontinued operations 829 Total pretax income from discontinued operations 319 Income from discontinued operations attributable to TETRA stockholders $ 319 Three Months Ended Compression Offshore Services Total Major classes of line items constituting income from discontinued operations Cost of revenues $ — $ (174) $ (174) General and administrative expense — 6 6 Other (income) expense, net 150 — 150 Pretax income (loss) from discontinued operations (150) 168 18 Income from discontinued operations attributable to TETRA stockholders $ 18 Nine Months Ended Offshore Services Maritech Total Major classes of line items constituting income from discontinued operations Cost of revenues $ 54 $ — $ 54 General and administrative expense 533 — 533 Other expense, net — (28) (28) Pretax income (loss) from discontinued operations (587) 28 (559) Pretax gain on disposal of discontinued operations 829 Total pretax income from discontinued operations 270 Income from discontinued operations attributable to TETRA stockholders $ 270 Nine Months Ended Compression Offshore Services Total Major classes of line items constituting income from discontinued operations Revenue $ 18,968 $ — $ 18,968 Cost of revenues 11,474 (146) 11,328 General and administrative expense 2,796 6 2,802 Interest expense, net 4,336 — 4,336 Other expense, net 164 — 164 Pretax income from discontinued operations 198 140 338 Pretax gain on disposal of discontinued operations 120,574 Total pretax income from discontinued operations 120,912 Income tax provision 30 Total income from discontinued operations 120,882 Loss from discontinued operations attributable to noncontrolling interest (333) Income from discontinued operations attributable to TETRA stockholders $ 120,549 Reconciliation of Major Classes of Assets and Liabilities of the Discontinued Operations to Amounts Presented Separately in the Statement of Financial Position (in thousands) September 30, 2022 Offshore Services Maritech Total (unaudited) Carrying amounts of major classes of liabilities included as part of discontinued operations Trade payables $ 319 $ — $ 319 Accrued liabilities and other 505 95 600 Total liabilities associated with discontinued operations $ 824 $ 95 $ 919 December 31, 2021 Offshore Services Maritech Total Carrying amounts of major classes of liabilities included as part of discontinued operations Trade payables $ 1,157 $ — $ 1,157 Accrued liabilities and other — 228 228 Total liabilities associated with discontinued operations $ 1,157 $ 228 $ 1,385 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | In addition, we disaggregate revenue from contracts with customers by geography based on the following table below. Three Months Ended Nine Months Ended 2022 2021 2022 2021 (in thousands) Completion Fluids & Products United States $ 30,261 $ 22,529 $ 103,449 $ 72,353 International 28,902 26,162 103,706 87,466 59,163 48,691 207,155 159,819 Water & Flowback Services United States 67,641 42,234 182,059 106,630 International 8,208 4,549 16,551 8,675 75,849 46,783 198,610 115,305 Total Revenue United States 97,902 64,763 285,508 178,983 International 37,110 30,711 120,257 96,141 $ 135,012 $ 95,474 $ 405,765 $ 275,124 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Components of inventories as of September 30, 2022 and December 31, 2021 are as follows: September 30, 2022 December 31, 2021 (in thousands) Finished goods $ 60,069 $ 59,925 Raw materials 4,267 2,827 Parts and supplies 5,735 4,713 Work in progress 1,487 1,633 Total inventories $ 71,558 $ 69,098 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investments in and Advances to Affiliates [Abstract] | |
Summary of Investments | Our investments as of September 30, 2022 and December 31, 2021 consist of the following: September 30, 2022 December 31, 2021 (in thousands) Investment in CSI Compressco $ 6,128 $ 6,233 Investment in CarbonFree 5,453 5,000 Investment in Standard Lithium 1,732 — Total Investments $ 13,313 $ 11,233 |
Long-Term Debt and Other Borr_2
Long-Term Debt and Other Borrowings (Table) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt Table | Consolidated long-term debt as of September 30, 2022 and December 31, 2021, consists of the following: Scheduled Maturity September 30, 2022 December 31, 2021 (in thousands) Swedish Credit Facility December 31, 2022 $ 14 $ — Asset-based credit agreement (1) May 31, 2025 — 67 Term credit agreement (2) September 10, 2025 153,873 151,869 Total debt 153,887 151,936 Less current portion (14) — Total long-term debt $ 153,873 $ 151,936 (1) Net of unamortized deferred financing costs of zero and $1.5 million as of September 30, 2022 and December 31, 2021, respectively. Deferred financing costs of $1.2 million as of September 30, 2022, were classified as other long-term assets on the accompanying consolidated balance sheet as there was no outstanding balance on our asset-based credit agreement. (2) Net of unamortized discount of $3.7 million and $4.5 million as of September 30, 2022 and December 31, 2021, respectively, and net of unamortized deferred financing costs of $5.5 million and $6.7 million as of September 30, 2022 and December 31, 2021, respectively. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | Recurring and nonrecurring fair value measurements by valuation hierarchy as of September 30, 2022 and December 31, 2021, are as follows: Fair Value Measurements Using Total as of Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs Description September 30, 2022 (Level 1) (Level 2) (Level 3) (in thousands) Investment in CSI Compressco $ 6,128 $ 6,128 $ — $ — Investment in CarbonFree 5,453 — — 5,453 Investment in Standard Lithium 1,732 1,732 — — Investments $ 13,313 Fair Value Measurements Using Total as of Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs Description December 31, 2021 (Level 1) (Level 2) (Level 3) (in thousands) Investment in CSI Compressco $ 6,233 $ 6,233 $ — $ — Investment in CarbonFree 5,000 — — 5,000 Investments $ 11,233 |
Net Income (Loss) per Share (Ta
Net Income (Loss) per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Share | The following is a reconciliation of the weighted average number of common shares outstanding with the number of shares used in the computations of net income (loss) per common and common equivalent share: Three Months Ended Nine Months Ended 2022 2021 2022 2021 (in thousands) Number of weighted average common shares outstanding 128,407 126,733 127,890 126,489 Assumed exercise of equity awards and warrants — 1,961 1,814 — Average diluted shares outstanding 128,407 128,694 129,704 126,489 |
Industry Segments (Tables)
Industry Segments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting Table | Summarized financial information concerning the business segments is as follows: Three Months Ended Nine Months Ended 2022 2021 2022 2021 (in thousands) Revenues from external customers Product sales Completion Fluids & Products Division $ 55,354 $ 46,322 $ 195,469 $ 153,905 Water & Flowback Services Division 140 18 381 50 Consolidated $ 55,494 $ 46,340 $ 195,850 $ 153,955 Services Completion Fluids & Products Division $ 3,809 $ 2,369 $ 11,686 $ 5,914 Water & Flowback Services Division 75,709 46,765 198,229 115,255 Consolidated $ 79,518 $ 49,134 $ 209,915 $ 121,169 Total revenues Completion Fluids & Products Division $ 59,163 $ 48,691 $ 207,155 $ 159,819 Water & Flowback Services Division 75,849 46,783 198,610 115,305 Consolidated $ 135,012 $ 95,474 $ 405,765 $ 275,124 Income (loss) before taxes Completion Fluids & Products Division $ 12,357 $ 14,675 $ 46,910 $ 40,113 Water & Flowback Services Division 6,482 (1,807) 10,808 (12,265) Interdivision Eliminations 3 3 9 9 Corporate Overhead (1) (16,727) (9,789) (45,398) (41,820) Consolidated $ 2,115 $ 3,082 $ 12,329 $ (13,963) (1) Amounts reflected include the following general corporate expenses: Three Months Ended Nine Months Ended 2022 2021 2022 2021 (in thousands) General and administrative expense $ 11,968 $ 8,409 $ 33,856 $ 30,973 Depreciation and amortization 165 228 528 646 Interest expense 4,437 4,247 11,978 13,354 Warrants fair value adjustment (income) expense — (3,164) — (143) Other general corporate (income) expense, net 157 69 (964) (3,010) Total $ 16,727 $ 9,789 $ 45,398 $ 41,820 |
Organization, Basis of Presen_4
Organization, Basis of Presentation, and Significant Accounting Policies - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) segment | Sep. 30, 2021 USD ($) | |
Accounting Policies [Abstract] | ||||
Number of Operating Segments | segment | 2 | |||
Foreign currency exchange (gains) and losses | $ | $ (1.1) | $ (0.1) | $ (2.7) | $ (1.1) |
Organization, Basis of Presen_5
Organization, Basis of Presentation, and Significant Accounting Policies - Supplemental Cash Flows (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Accounting Policies [Abstract] | ||
Interest paid | $ 11,578 | $ 10,954 |
Income taxes paid | 2,525 | 1,423 |
Increase (decrease) in accrued capital expenditures | $ (4,101) | $ 463 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 29, 2021 | Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain on GP Sale | $ 0 | $ 120,574 | ||
CSI Compressco | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Ownership percentage | 3.70% | 3.70% | ||
Discontinued Operations, Held-for-sale or Disposed of by Sale | CSI Compressco | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from divestiture of businesses | $ 13,900 | |||
Consideration transferred | 3,100 | |||
Gain on GP Sale | $ 120,600 | $ 300 | ||
Discontinued Operations, Held-for-sale or Disposed of by Sale | Compression Division | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Capital expenditure, discontinued operations | $ 3,000 | |||
CSI Compressco | Discontinued Operations, Held-for-sale or Disposed of by Sale | CSI Compressco | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
General partner, ownership interest | 23.10% |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Revenue | $ 18,968,000 | ||||
Cost of revenues | $ (174,000) | $ 54,000 | 11,328,000 | ||
General and administrative expense | $ 510,000 | 6,000 | 533,000 | 2,802,000 | |
Interest expense, net | 4,336,000 | ||||
Other (income) expense, net | 150,000 | 28,000 | 164,000 | ||
Pretax loss from discontinued operations | (510,000) | 18,000 | (559,000) | 338,000 | |
Pretax gain on disposal of discontinued operations | 829,000 | 829,000 | 120,574,000 | ||
Total pretax income from discontinued operations | 319,000 | 270,000 | 120,912,000 | ||
Income tax provision | 30,000 | ||||
Total income (loss) from discontinued operations | 319,000 | 18,000 | 270,000 | 120,882,000 | |
Income (loss) from discontinued operations attributable to noncontrolling interest | 0 | 0 | 0 | (333,000) | |
Income from discontinued operations attributable to TETRA stockholders | 319,000 | 18,000 | 270,000 | 120,549,000 | |
Trade payables | 319,000 | 319,000 | $ 1,157,000 | ||
Accrued liabilities and other | 600,000 | 600,000 | 228,000 | ||
Total liabilities associated with discontinued operations | 919,000 | 919,000 | 1,385,000 | ||
Compression Division | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Revenue | 18,968,000 | ||||
Cost of revenues | 0 | 11,474,000 | |||
General and administrative expense | 0 | 2,796,000 | |||
Interest expense, net | 4,336,000 | ||||
Other (income) expense, net | 150,000 | 164,000 | |||
Pretax loss from discontinued operations | (150,000) | 198,000 | |||
Offshore Services | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Revenue | 0 | ||||
Cost of revenues | (174,000) | 54,000 | (146,000) | ||
General and administrative expense | 6,000 | 533,000 | 6,000 | ||
Interest expense, net | 0 | ||||
Other (income) expense, net | 0 | 0 | 0 | ||
Pretax loss from discontinued operations | $ 168,000 | (587,000) | $ 140,000 | ||
Trade payables | 319,000 | 319,000 | 1,157,000 | ||
Accrued liabilities and other | 505,000 | 505,000 | 0 | ||
Total liabilities associated with discontinued operations | 824,000 | 824,000 | 1,157,000 | ||
Maritech | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Cost of revenues | 0 | ||||
General and administrative expense | 0 | ||||
Other (income) expense, net | 28,000 | ||||
Pretax loss from discontinued operations | 28,000 | ||||
Trade payables | 0 | 0 | 0 | ||
Accrued liabilities and other | 95,000 | 95,000 | 228,000 | ||
Total liabilities associated with discontinued operations | $ 95,000 | $ 95,000 | $ 228,000 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) segment | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Contract with customer, asset balances | $ 33,400 | $ 33,400 | $ 20,500 | ||
Purchase order | 4,100 | 4,100 | $ 3,200 | ||
Income recognized | 1,410 | $ 10,132 | 4,858 | $ 14,438 | |
Deferred revenue, revenue recognized | $ 2,600 | $ 1,700 | |||
Number of Reportable Segments | segment | 2 | ||||
Standard Lithium Ltd. | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Income recognized | $ 2,400 | $ 1,300 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Revenue Performance Obligation (Details) | Sep. 30, 2022 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from external customers | $ 135,012 | $ 95,474 | $ 405,765 | $ 275,124 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from external customers | 97,902 | 64,763 | 285,508 | 178,983 |
International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from external customers | 37,110 | 30,711 | 120,257 | 96,141 |
Completion Fluids & Products Division | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from external customers | 59,163 | 48,691 | 207,155 | 159,819 |
Completion Fluids & Products Division | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from external customers | 30,261 | 22,529 | 103,449 | 72,353 |
Completion Fluids & Products Division | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from external customers | 28,902 | 26,162 | 103,706 | 87,466 |
Water & Flowback Services Division | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from external customers | 75,849 | 46,783 | 198,610 | 115,305 |
Water & Flowback Services Division | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from external customers | 67,641 | 42,234 | 182,059 | 106,630 |
Water & Flowback Services Division | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from external customers | $ 8,208 | $ 4,549 | $ 16,551 | $ 8,675 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 60,069 | $ 59,925 |
Raw materials | 4,267 | 2,827 |
Parts and supplies | 5,735 | 4,713 |
Work in progress | 1,487 | 1,633 |
Total inventories | $ 71,558 | $ 69,098 |
Investments in and Advances to
Investments in and Advances to Affiliates (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Investments in and Advances to Affiliates [Line Items] | ||
Total Investments | $ 13,313 | $ 11,233 |
CSI Compressco | ||
Investments in and Advances to Affiliates [Line Items] | ||
Total Investments | 6,128 | 6,233 |
CarbonFree | ||
Investments in and Advances to Affiliates [Line Items] | ||
Total Investments | 5,453 | 5,000 |
Standard Lithium | ||
Investments in and Advances to Affiliates [Line Items] | ||
Total Investments | $ 1,732 | $ 0 |
Long-Term Debt and Other Borr_3
Long-Term Debt and Other Borrowings - Schedule of Long Term Debt (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 153,873,000 | $ 151,936,000 |
Parent Company | ||
Debt Instrument [Line Items] | ||
Long-term debt | 153,887,000 | 151,936,000 |
Less current portion | (14,000) | 0 |
Total long-term debt | 153,873,000 | 151,936,000 |
Unamortized deferred finance costs | 1,200,000 | |
Revolving Credit Facility | Secured Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | 14,000 | 0 |
Asset-Based Credit Agreement | Secured Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 67,000 |
Unamortized deferred finance costs | 0 | 1,500,000 |
Term Loan | Secured Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | 153,873,000 | 151,869,000 |
Unamortized deferred finance costs | 5,500,000 | 6,700,000 |
Unamortized discount (premium), net | $ 3,700,000 | $ 4,500,000 |
Long-Term Debt and Other Borr_4
Long-Term Debt and Other Borrowings - Additional Information (Details) - USD ($) | Sep. 30, 2022 | Jul. 30, 2021 |
Parent Company | Letter of Credit | Asset-Based Lending Credit Agreement | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 20,000,000 | |
Line of Credit | Revolving Credit Facility | ABL Credit Agreement | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 80,000,000 | |
Accordion feature | 20,000,000 | |
Line of Credit | Letter of Credit | Sub-Facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 15,000,000 | |
Line of Credit | Parent Company | ABL Credit Agreement | ||
Debt Instrument [Line Items] | ||
Bank line of credit, net availability | 62,600,000 | |
Value of amount outstanding | 0 | |
Bank line of credit, letters of credit and guarantees | 4,700,000 | |
Secured Debt | Swedish Credit Facility | ||
Debt Instrument [Line Items] | ||
Credit outstanding | 100,000 | |
Bank line of credit, net availability | $ 4,500,000 | |
Interest rate | 2.95% | |
Secured Debt | Letter of Credit | ||
Debt Instrument [Line Items] | ||
Credit outstanding | $ 1,400,000 | |
Secured Debt | Term Credit Agreement | ||
Debt Instrument [Line Items] | ||
Credit outstanding | $ 153,900,000 | |
Interest rate | 8.77% | |
Swingline Loan Sublimit | Parent Company | Asset-Based Lending Credit Agreement | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 11,500,000 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase obligation | $ 120.2 |
Purchase obligation, remainder of 2022 | 1 |
Purchase obligation, 2023 | 17.9 |
Purchase obligation, 2024 | 17.9 |
Purchase obligation, 2025 | 17.9 |
Purchase obligation, 2026 | 17.9 |
Purchase obligation, thereafter | $ 47.5 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Derivatives, Fair Value [Line Items] | ||||||
Total Investments | $ 13,313,000 | $ 13,313,000 | $ 11,233,000 | |||
Impairment and other charges | $ 0 | $ 0 | $ 2,262,000 | $ 449,000 | ||
Completion Fluids & Products Division | Land and Building | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Impairment and other charges | $ 500,000 | |||||
Assets, Fair Value Disclosure | 400,000 | |||||
Completion Fluids & Products Division | Inventories | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Impairment and other charges | 200,000 | |||||
Completion Fluids & Products Division | Equipment | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Impairment and other charges | 1,300,000 | |||||
Completion Fluids & Products Division | Obsolete Equipment | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Impairment and other charges | 200,000 | |||||
Completion Fluids & Products Division | Inventories And Equipment | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Assets, Fair Value Disclosure | $ 0 | |||||
CSI Compressco | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Ownership percentage | 3.70% | 3.70% | ||||
Total Investments | $ 6,128,000 | $ 6,128,000 | 6,233,000 | |||
CarbonFree | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Total Investments | $ 5,453,000 | $ 5,453,000 | $ 5,000,000 |
Fair Value Measurements - Marke
Fair Value Measurements - Market Risks and Derivative Hedge Contracts (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Total Investments | $ 13,313 | $ 11,233 |
Investments | 13,313 | 11,233 |
CSI Compressco | ||
Derivatives, Fair Value [Line Items] | ||
Total Investments | 6,128 | 6,233 |
Standard Lithium | ||
Derivatives, Fair Value [Line Items] | ||
Total Investments | 1,732 | 0 |
CSI Compressco | (Level 1) | ||
Derivatives, Fair Value [Line Items] | ||
Investments | 6,128 | 6,233 |
CSI Compressco | (Level 2) | ||
Derivatives, Fair Value [Line Items] | ||
Investments | 0 | 0 |
CSI Compressco | (Level 3) | ||
Derivatives, Fair Value [Line Items] | ||
Investments | 0 | 0 |
CarbonFree | (Level 1) | ||
Derivatives, Fair Value [Line Items] | ||
Investments | 0 | |
CarbonFree | (Level 2) | ||
Derivatives, Fair Value [Line Items] | ||
Investments | 0 | |
CarbonFree | (Level 3) | ||
Derivatives, Fair Value [Line Items] | ||
Investments | 5,453 | |
Standard Lithium | (Level 1) | ||
Derivatives, Fair Value [Line Items] | ||
Investments | 1,732 | 0 |
Standard Lithium | (Level 2) | ||
Derivatives, Fair Value [Line Items] | ||
Investments | 0 | 0 |
Standard Lithium | (Level 3) | ||
Derivatives, Fair Value [Line Items] | ||
Investments | $ 0 | $ (5,000) |
Net Income (Loss) per Share - R
Net Income (Loss) per Share - Reconciliation of the Weighted Average Number of Common Shares Outstanding (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||||
Number of weighted average common shares outstanding ( in shares) | 128,407 | 126,733 | 127,890 | 126,489 |
Assumed exercise of equity awards and warrants (in shares) | 0 | 1,961 | 1,814 | 0 |
Average diluted shares outstanding (in shares) | 128,407 | 128,694 | 129,704 | 126,489 |
Net Income (Loss) per Share - A
Net Income (Loss) per Share - Additional Information (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1.5 | 1.8 |
Industry Segments - Additional
Industry Segments - Additional Details (Details) | 9 Months Ended |
Sep. 30, 2022 segment | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Industry Segments - Revenue, In
Industry Segments - Revenue, Income from Operations, and Assets by Reporting Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Industry Segments Details [Line Items] | ||||
Revenues from external customers | $ 135,012 | $ 95,474 | $ 405,765 | $ 275,124 |
Income (loss) before taxes and discontinued operations | 2,115 | 3,082 | 12,329 | (13,963) |
Completion Fluids & Products Division | ||||
Industry Segments Details [Line Items] | ||||
Revenues from external customers | 59,163 | 48,691 | 207,155 | 159,819 |
Income (loss) before taxes and discontinued operations | 12,357 | 14,675 | 46,910 | 40,113 |
Water & Flowback Services Division | ||||
Industry Segments Details [Line Items] | ||||
Revenues from external customers | 75,849 | 46,783 | 198,610 | 115,305 |
Income (loss) before taxes and discontinued operations | 6,482 | (1,807) | 10,808 | (12,265) |
Interdivision Eliminations | ||||
Industry Segments Details [Line Items] | ||||
Income (loss) before taxes and discontinued operations | 3 | 3 | 9 | 9 |
Corporate Overhead | ||||
Industry Segments Details [Line Items] | ||||
Income (loss) before taxes and discontinued operations | (16,727) | (9,789) | (45,398) | (41,820) |
Product sales | ||||
Industry Segments Details [Line Items] | ||||
Revenues from external customers | 55,494 | 46,340 | 195,850 | 153,955 |
Product sales | Completion Fluids & Products Division | ||||
Industry Segments Details [Line Items] | ||||
Revenues from external customers | 55,354 | 46,322 | 195,469 | 153,905 |
Product sales | Water & Flowback Services Division | ||||
Industry Segments Details [Line Items] | ||||
Revenues from external customers | 140 | 18 | 381 | 50 |
Services | ||||
Industry Segments Details [Line Items] | ||||
Revenues from external customers | 79,518 | 49,134 | 209,915 | 121,169 |
Services | Completion Fluids & Products Division | ||||
Industry Segments Details [Line Items] | ||||
Revenues from external customers | 3,809 | 2,369 | 11,686 | 5,914 |
Services | Water & Flowback Services Division | ||||
Industry Segments Details [Line Items] | ||||
Revenues from external customers | $ 75,709 | $ 46,765 | $ 198,229 | $ 115,255 |
Industry Segments - Corporate E
Industry Segments - Corporate Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
General and administrative expense | $ 23,833 | $ 18,714 | $ 68,096 | $ 56,077 |
Depreciation, amortization, and accretion | 8,634 | 8,308 | 24,061 | 25,495 |
Interest expense, net | 3,999 | 4,083 | 10,933 | 12,373 |
Warrants fair value adjustment | 0 | (143) | ||
Other general corporate (income) expense, net | (1,410) | (10,132) | (4,858) | (14,438) |
Total | 63 | (2,495) | (9,430) | 16,102 |
Corporate Overhead | ||||
Segment Reporting Information [Line Items] | ||||
General and administrative expense | 11,968 | 8,409 | 33,856 | 30,973 |
Depreciation, amortization, and accretion | 165 | 228 | 528 | 646 |
Interest expense, net | 4,437 | 4,247 | 11,978 | 13,354 |
Warrants fair value adjustment | 0 | (3,164) | 0 | (143) |
Other general corporate (income) expense, net | 157 | 69 | (964) | (3,010) |
Total | $ 16,727 | $ 9,789 | $ 45,398 | $ 41,820 |