Tetra Technologies Inc (NYSE:TTI) raised its expectations for Q2 2023 on strong operational performance.
The company benefits from its industrial calcium chloride business, solid offshore completion fluids activity, and improved Water and Flowback Services margins.
Outlook: TTI now expects revenues at the high end of the previously guided range of $165 million-$175 million, net income (before taxes and discontinued operations) to be above $11.5 million-$13.5 million, and adjusted EBITDA to be above $27 million-$30 million.
Also, TTI expects cash flow from operating activities and adjusted free cash flow from continuing operations to be meaningfully above Q1 2023 level.
Lithium feed study commencement: The company concluded the second test well in the Smackover Formation in Southwest Arkansas, with fluid sampling tests underway.
TTI has collaborated with Hargrove and Associates to conduct a front-end engineering and design study for a lithium production facility.
The company plans to optimize the lithium plant design to share the production wells, injection wells, and pipelines at par with the formerly completed study for the bromine plant.
Price Action: TTI shares are trading higher by 4.73% at $3.56 premarket on the last check Wednesday.
