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THE WOODLANDS, Texas - TETRA Technologies, Inc. (NYSE:TTI), an energy services and solutions provider, received approval from the Arkansas Oil & Gas Commission (AOGC) to expand its Evergreen Unit in the Smackover Formation. The expansion, from 6,138 to 6,953 gross acres, follows a third-party test well indicating higher lithium concentrations than previously estimated within the original unit.
The AOGC has also greenlit TETRA’s integration of landowners into the expansion unit. The formal order for this approval is anticipated to be issued within the next 30 days. Saltwerx, LLC, which holds approximately 35% interest in the brine interests, is a participant in the Evergreen Unit, with TETRA as the operator.
Recent drilling and sampling operations in the Evergreen Unit yielded promising results, not only for the expected bromine and lithium but also for magnesium and manganese. These additional minerals, considered critical by the U.S., are currently supplied mostly from outside the country. With a solid current ratio of 2.19, TETRA maintains strong liquidity to fund its expansion plans. Want deeper insights into TETRA’s financial health and growth potential? InvestingPro offers exclusive analysis and 8 additional ProTips for informed investment decisions. TETRA is exploring technologies to extract these minerals from the same brine that will be initially developed for bromine projects.
An updated resource study, detailing the incremental volumes of bromine and lithium, is expected from TETRA soon. The company continues to focus on developing bromine assets and advancing engineering efforts for the project.
Additionally, on April 22, 2025, AOGC approved an application by SWA Lithium to establish a unit for acreage under an option agreement with Standard Lithium, SWA Lithium, and TETRA. This agreement grants TETRA a 2.5% royalty on gross revenues from lithium produced and sold by Standard Lithium from TETRA’s option acreage. TETRA retains rights to bromine and other non-lithium minerals extracted from Standard Lithium’s brine production. A recent joint venture between Standard Lithium and Equinor aims to develop the TETRA option acreage for lithium extraction.
TETRA Technologies operates globally, with a focus on environmentally conscious services and solutions, expanding into the low-carbon energy market with expertise in energy services, industrial chemicals, and lithium ventures. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value model, with analysts maintaining a Strong Buy consensus. The company is set to report its next earnings on April 29, 2025, which could be a crucial catalyst for the stock price.
This article is based on a press release statement and includes forward-looking statements subject to risks and uncertainties. Actual results may differ materially from current expectations due to various factors, including the economic viability of mineral resources and the challenges of lithium processing.
In other recent news, TETRA Technologies reported its fourth-quarter 2024 earnings, meeting expectations for earnings per share at $0.03 but falling short on revenue with $135 million against an anticipated $139.17 million. The company saw improved EBITDA margins, with the Industrial Chemicals segment achieving record performance, contributing 22% to total revenue and showing a 9% growth over the previous year. TETRA Technologies is projecting a strong start to 2025, with net income before taxes expected to be between $19 million and $34 million and adjusted EBITDA ranging from $55 million to $65 million. Meanwhile, the Radoff-Torok Group, which owns over 4.9% of TETRA Technologies, has nominated four independent candidates for the board, advocating for governance changes to enhance stockholder value. This move comes as the group criticizes the current board’s long-term underperformance and governance issues. Additionally, TETRA Technologies announced that its upcoming 2025 Annual Meeting of Shareholders will proceed uncontested after an investor group withdrew its director nominees. The company expressed gratitude to shareholders for their constructive engagement and looks forward to continued dialogue leading up to the annual meeting.
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