EXHIBIT 99.1
FOR IMMEDIATE RELEASE

TETRA TECHNOLOGIES, INC.
REPORTS FOURTH QUARTER 2008 RESULTS

February 27, 2009 (The Woodlands, Texas), TETRA Technologies, Inc. (TETRA or the Company) (NYSE:TTI) today announced that it lost $0.79 per share in the fourth quarter of 2008. Included in this loss were impairments of approximately $54.4 million associated with the overall assessment of assets as part of its goodwill impairment test, pursuant to SFAS No. 142 ($47.1 million of goodwill write-off and $7.3 million of long-lived asset write-off). Also, as previously discussed in our February 10, 2009 press release, Maritech incurred a total of approximately $45.7 million of charges in the fourth quarter (primarily impairments caused by reduced commodity prices, which were not allowed to be offset by Maritech’s hedges). The combination of the $54.4 million impairment and the Maritech charges equaled $100.1 million in the quarter, or $0.91 per share after tax. For the year, similar charges totaled $123.1 million, or $1.10 per share, after tax. All financial data in this release are reported in U.S. dollars, are before discontinued operations and all per share amounts are fully diluted.

Consolidated revenues for the quarter ended December 31, 2008 were $230,421,000 versus $245,975,000 in the fourth quarter of 2007. Total gross profit was a negative of $11,181,000 in the fourth quarter of 2008 versus a negative $37,337,000 in the fourth quarter of 2007. Income before discontinued operations was a loss of $59,284,000 in the fourth quarter of 2008 versus a loss of $44,337,000 in the comparable period of 2007. Net income was a loss of $59,897,000 in 2008’s fourth quarter versus a loss of $18,623,000 in 2007’s fourth quarter.

Consolidated results per share from continuing operations for the fourth quarter of 2008 were a loss of $0.79 with 74,908,000 weighted average diluted common shares outstanding versus a loss of $0.60 with 74,084,000 weighted average diluted common shares outstanding in the fourth quarter of 2007.

Consistent with operational segment changes, the following items will be modified from here, forward. The Well Abandonment & Decommissioning Services Division will be called the Offshore Division. This Division will be comprised of Offshore Services and Maritech. The Production Enhancement Division will now be comprised of two segments, Production Testing and Compressco. Prior period segment information in this division was reclassified to conform to the 2008 presentation.

Divisional pretax earnings (loss) from continuing operations in the fourth quarter of 2008 versus the fourth quarter of 2007 were: Fluids Division – ($18,905,000) in 4Q 2008 and ($7,634,000) in 4Q 2007; Offshore Services (formerly WA&D Services) – ($14,218,000) in 4Q 2008 and $7,037,000 in 4Q 2007; Maritech – ($58,689,000) in 4Q 2008 and ($71,172,000) in 4Q 2007; Production Testing – $9,793,000 in 4Q 2008 and  $7,935,000 in 4Q 2007; and, Compressco – $7,629,000 in 4Q 2008 and $7,196,000 in 4Q 2007.

Financial data aggregating full year 2008, comparable data for 2007 and data relating to net income, as well as discontinued operations, are available in the accompanying financial table in this press release.

 

 


Geoffrey M. Hertel, President and Chief Executive Officer, stated, “During the fourth quarter of 2008, TETRA incurred $100.1 million of impairments. A significant portion of the Maritech $45.7 million of impairment was caused by reduced commodity prices, which are not allowed to be offset in this calculation with our hedges (hedges increased in value by approximately $95.3 million pretax, in the quarter). As part of their SFAS No. 142 impairment tests, Fluids had an impairment of $23.9 million and Offshore Services had an impairment of $30.5 million (most of this $54.4 million impairment is triggered by the reduction in the TETRA stock price).
 
“During the quarter, the Production Enhancement Division had record earnings and Offshore Services had one of its best quarters ever, excluding the impairment charge. The quarter was negatively impacted by Hurricane Ike, especially in Maritech and Fluids. Even with the difficulties encountered due to hurricanes, TETRA generated $189.8 million of ‘net cash provided by operating activities’ during the year ended December 31, 2008.
 
“We reiterate our February 10 earnings guidance for 2009 of $0.70 – $0.90 per share. Due to the factors enumerated in the February 10 press release, we expect these earnings to be weighted toward the second half of 2009.
 
“Based on our estimates, we do not foresee any issues in complying with the covenants on our long-term notes or bank debt. Long-term debt is expected to peak around $480 million in May or June and then is projected to fall to slightly above $400 million by year-end 2009. At $480 million of debt, TETRA should have about $100 million unused and available credit under our bank lines. Our bank debt is scheduled to come due on June 27, 2011, and the earliest of our notes is scheduled to come due in September of 2011. TETRA invested significant capital expenditures toward growth in 2006 through 2008, and will continue to do this in Arkansas through mid-year 2009 (expected start-up of the plant may occur two months ahead of schedule, in the third quarter). These investments give us significant capacity to grow all of our businesses, as markets improve. Therefore, we do not anticipate a need to make large additional CapEx investments in order to generate significant cash for use in reducing debt in the 18 months (starting in July 2009), or to increase earnings,” concluded Hertel.
 
TETRA is an oil and gas services company, including an integrated calcium chloride and brominated products manufacturing operation that supplies feedstocks to energy markets, as well as other markets.
 
This press release includes certain statements that are deemed to be forward-looking statements. These forward-looking statements include statements concerning financial guidance, estimated earnings, earnings per share, expected benefits from our agreements and long-term investments, expected results of operational business segments for 2009, expected costs associated with damage from the hurricanes and the ability to recover such costs under our insurance policies, the ability to resume operations and production from our damaged or destroyed platforms and properties, and other statements regarding our 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
 
2

 
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, 2007, 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.


   
Three Months Ended
   
Twelve Months Ended
 
   
December 31,
   
December 31,
 
   
2008
   
2007
   
2008
   
2007
 
   
(In Thousands, Except Per Share Amounts)
 
Revenues
                       
   Fluids Division
  $ 64,199     $ 67,627     $ 293,248     $ 282,074  
   Offshore (formerly WA&D) Division
                               
      Offshore Services
    91,143       78,947       306,362       341,082  
      Maritech
    23,641       56,305       208,509       214,154  
      Intersegment eliminations
    (8,635 )     (5,870 )     (22,971 )     (29,057 )
         Offshore Division total
    106,149       129,382       491,900       526,179  
   Production Enhancement Division
                               
      Production Testing
    34,120       26,742       127,019       93,130  
      Compressco
    26,076       23,094       97,417       83,554  
         Production Enhancement Division total
    60,196       49,836       224,436       176,684  
   Eliminations and other
    (123 )     (870 )     (519 )     (2,454 )
      Total revenues
    230,421       245,975       1,009,065       982,483  
                                 
Gross profit (loss)
                               
   Fluids Division
    10,356       (592 )     56,446       38,620  
   Offshore Division
                               
      Offshore Services
    13,193       11,148       43,025       49,110  
      Maritech
    (55,992 )     (69,598 )     (29,958 )     (45,631 )
      Intersegment eliminations
    (1,085 )     2,248       (782 )     6,225  
         Offshore Division total
    (43,884 )     (56,202 )     12,285       9,704  
   Production Enhancement Division
                               
      Production Testing
    12,436       10,121       44,413       32,813  
      Compressco
    10,536       10,032       41,323       36,685  
         Production Enhancement Division total
    22,972       20,153       85,736       69,498  
   Eliminations and other
    (625 )     (696 )     (2,466 )     (1,439 )
      Total gross profit (loss)
    (11,181 )     (37,337 )     152,001       116,383  
                                 
General and administrative expense
    26,187       25,474       104,949       99,871  
Impairment of goodwill
    47,073       -       47,073       -  
   Operating income (loss)
    (84,441 )     (62,811 )     (21 )     16,512  
                                 
Interest expense, net
    3,812       4,641       16,778       17,155  
Other expense (income)
    (8,337 )     361       (12,884 )     (2,805 )
**Income (loss) before taxes and
    (79,916 )     (67,813 )     (3,915 )     2,162  
     discontinued operations (A)
                               
Provision for income taxes
    (20,632 )     (23,476 )     5,740       941  
   Income (loss) before discontinued operations
    (59,284 )     (44,337 )     (9,655 )     1,221  
                                 
Discontinued operations:
                               
   Income (loss) from discontinued operations,
                               
     net of taxes (A)
    (613 )     25,714       (2,481 )     27,550  
                                 
         Net income (loss)
  $ (59,897 )   $ (18,623 )   $ (12,136 )   $ 28,771  


 
3 

 



   
Three Months Ended
   
Twelve Months Ended
 
   
December 31,
   
December 31,
 
   
2008
   
2007
   
2008
   
2007
 
   
(In Thousands, Except Per Share Amounts)
 
**Income (loss) before taxes and discontinued operations
                   
                         
   Fluids Division
    (18,905 )     (7,634 )     5,401       10,897  
   Offshore Division
                               
      Offshore Services
    (14,218 )     7,037       3,019       33,496  
      Maritech
    (58,689 )     (71,172 )     (31,932 )     (49,815 )
      Intersegment eliminations
    (1,085 )     2,248       (782 )     6,225  
         Offshore Division total
    (73,992 )     (61,887 )     (29,695 )     (10,094 )
   Production Enhancement Division
                               
      Production Testing
    9,793       7,935       35,677       25,639  
      Compressco
    7,629       7,196       30,310       26,663  
         Production Enhancement Division total
    17,422       15,131       65,987       52,302  
   Corporate overhead (includes interest)
    (4,441 )     (13,423 )     (45,608 )     (50,943 )
      Total
    (79,916 )     (67,813 )     (3,915 )     2,162  

 

Basic per share information:
                       
   Income (loss) before discontinued operations
  $ (0.79 )   $ (0.60 )   $ (0.13 )   $ 0.02  
   Income (loss) from discontinued operations
    (0.01 )     0.35       (0.03 )     0.37  
   Net income (loss)
  $ (0.80 )   $ (0.25 )   $ (0.16 )   $ 0.39  
                                 
   Weighted average shares outstanding
    74,908       74,084       74,519       73,573  
                                 
Diluted per share information:
                               
   Income (loss) before discontinued operations
  $ (0.79 )   $ (0.60 )   $ (0.13 )   $ 0.02  
   Income (loss) from discontinued operations
    (0.01 )     0.35       (0.03 )     0.36  
   Net income (loss)
  $ (0.80 )   $ (0.25 )   $ (0.16 )   $ 0.38  
                                 
   Weighted average shares outstanding
    74,908       74,084       74,519       75,921  
                                 
Depreciation, depletion and amortization (B)
  $ 76,100     $ 102,902     $ 210,292     $ 201,624  

(A) Information presented for each period reflects TETRA’s Process Services, Venezuelan fluids and production testing operations as discontinued operations.
(B) DD&A information for 2008 and 2007 includes oil and gas dry hole costs and impairments of long-lived assets.


Balance Sheet
 
December 31, 2008
   
December 31, 2007
 
   
(In Thousands)
 
Cash
  $ 6,032     $ 26,051  
Accounts receivable, net
    225,491       215,284  
Inventories
    117,731       118,502  
Other current assets
    86,059       63,654  
PP&E, net
    807,466       696,391  
Other assets
    169,845       175,654  
   Total assets
  $ 1,412,624     $ 1,295,536  
                 
Current liabilities
  $ 212,481     $ 242,050  
Long-term debt
    406,840       358,024  
Other long-term liabilities
    277,482       247,543  
Equity
    515,821       447,919  
   Total liabilities and equity
  $ 1,412,624     $ 1,295,536  


Contact:
TETRA Technologies, Inc., The Woodlands, Texas
Geoffrey M. Hertel, 281/367-1983
Fax: 281/364-4346
www.tetratec.com
 
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The following information was filed by Tetra Technologies Inc (TTI) on Friday, February 27, 2009 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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