DELAWARE | 74-2148293 |
(STATE OR OTHER JURISDICTION OF | (I.R.S. EMPLOYER |
INCORPORATION OR ORGANIZATION) | IDENTIFICATION NO.) |
24955 INTERSTATE 45 NORTH | |
THE WOODLANDS, TEXAS | 77380 |
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) | (ZIP CODE) |
REGISTRANT’S TELEPHONE NUMBER, INCLUDING AREA CODE: (281) 367-1983 |
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT: | |
COMMON STOCK, PAR VALUE $.01 PER SHARE | NEW YORK STOCK EXCHANGE |
(TITLE OF CLASS) | (NAME OF EXCHANGE ON WHICH REGISTERED) |
SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT: NONE |
LARGE ACCELERATED FILER [ ] | ACCELERATED FILER [ X ] | NON-ACCELERATED FILER [ ] | SMALLER REPORTING COMPANY [ ] |
EMERGING GROWTH COMPANY [ ] |
Part I | ||
Part II | ||
Part III | ||
Part IV | ||
Item 16. | Form 10-K Summary |
• | economic and operating conditions that are outside of our control, including the supply, demand, and prices of oil and natural gas; |
• | the availability of adequate sources of capital to us; |
• | the levels of competition we encounter; |
• | the activity levels of our customers; |
• | our operational performance; |
• | the availability of raw materials and labor at reasonable prices; |
• | risks related to acquisitions and our growth strategy; |
• | restrictions under our debt agreements and the consequences of any failure to comply with debt covenants; |
• | the effect and results of litigation, regulatory matters, settlements, audits, assessments, and contingencies; |
• | risks related to our foreign operations; |
• | information technology risks including the risk from cyberattack, and |
• | other risks and uncertainties under “Item 1A. Risk Factors” in this Annual Report and as included in our other filings with the U.S. Securities and Exchange Commission (“SEC”), which are available free of charge on the SEC website at www.sec.gov. |
Range of Horsepower Per Package | Number of Packages | Aggregate Horsepower | % of Total Aggregate Horsepower | ||||
Low horsepower (0-100) | 3,752 | 175,951 | 15.5 | % | |||
Medium-horsepower (101-1,000) | 1,587 | 443,901 | 39.1 | % | |||
High-horsepower (1,001 and over) | 380 | 515,625 | 45.4 | % | |||
Total | 5,719 | 1,135,477 | 100.0 | % |
• | restrictions on repatriating cash back to the United States; |
• | the impact of compliance with anti-corruption laws on our operations and competitive position in affected countries and the risk that actions taken by us or our agents may violate those laws; |
• | government controls and government actions, such as expropriation of assets and changes in legal and regulatory environments; |
• | import and export license requirements; |
• | political, social, or economic instability; |
• | trade restrictions; |
• | changes in tariffs and taxes; and |
• | our limited knowledge of these markets or our inability to protect our interests. |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(1) | Maximum Number (or Approximate Dollar Value) of Shares that May Yet be Purchased Under the Publicly Announced Plans or Programs(1) | ||||||||||||
Oct 1 – Oct 31, 2018 | 149 | (2) | $ | 2.97 | — | $ | 14,327,000 | |||||||||
Nov 1 – Nov 30, 2018 | 5,172 | (2) | 3.22 | — | 14,327,000 | |||||||||||
Dec 1 – Dec 31, 2018 | 1,513 | (2) | 2.32 | — | 14,327,000 | |||||||||||
Total | 6,834 | — | $ | 14,327,000 |
(1) | In January 2004, our Board of Directors authorized the repurchase of up to $20 million of our common stock. Purchases may be made from time to time in open market transactions at prevailing market prices. The repurchase program may continue until the authorized limit is reached, at which time the Board of Directors may review the option of increasing the authorized limit. |
(2) | Shares we received in connection with the exercise of certain employee stock options or the vesting of certain employee restricted stock awards. These shares were not acquired pursuant to the stock repurchase program. |
Year Ended December 31, | ||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||
(In Thousands, Except Per Share Amounts) | ||||||||||||||||||||
Income Statement Data | ||||||||||||||||||||
Revenues | $ | 998,775 | $ | 723,098 | $ | 617,391 | $ | 1,010,641 | $ | 908,070 | ||||||||||
Gross profit | 162,298 | 108,390 | 60,839 | 181,157 | 175,220 | |||||||||||||||
General and administrative expense | 132,446 | 115,414 | 108,422 | 145,843 | 129,234 | |||||||||||||||
Goodwill impairment | — | — | 106,205 | 177,006 | 60,358 | |||||||||||||||
Interest expense | 72,066 | 58,027 | 59,984 | 55,134 | 35,676 | |||||||||||||||
Interest income | (1,120 | ) | (781 | ) | (1,370 | ) | (688 | ) | (757 | ) | ||||||||||
Other (income) expense, net | (4,668 | ) | (20,227 | ) | 10,818 | 1,596 | 11,174 | |||||||||||||
Loss before taxes and discontinued operations | (36,426 | ) | (44,043 | ) | (223,220 | ) | (197,734 | ) | (60,465 | ) | ||||||||||
Loss from discontinued operations, net of taxes | (41,515 | ) | (17,389 | ) | (14,017 | ) | (5,334 | ) | (73,045 | ) | ||||||||||
Net loss | (84,240 | ) | (62,183 | ) | (239,393 | ) | (209,467 | ) | (167,575 | ) | ||||||||||
Net loss attributable to TETRA stockholders | $ | (61,617 | ) | $ | (39,048 | ) | $ | (161,462 | ) | $ | (126,183 | ) | $ | (169,678 | ) | |||||
Loss per share, before discontinued operations attributable to TETRA stockholders | $ | (0.16 | ) | $ | (0.19 | ) | $ | (1.69 | ) | $ | (1.53 | ) | $ | (1.23 | ) | |||||
Average shares | 124,101 | 114,499 | 87,286 | 79,169 | 78,600 | |||||||||||||||
Loss per diluted share, before discontinued operations attributable to TETRA stockholders | $ | (0.16 | ) | $ | (0.19 | ) | $ | (1.69 | ) | $ | (1.53 | ) | $ | (1.23 | ) | |||||
Average diluted shares | 124,101 | (1), (2) | 114,499 | (1), (2) | 87,286 | (1), (2) | 79,169 | (1) | 78,600 | (1) |
(1) | For the years ended December 31, 2018, 2017, 2016, 2015, and 2014, the calculation of average diluted shares outstanding excludes the impact of all outstanding stock awards, as the inclusion of these shares would have been antidilutive due to the net loss recorded during the year. |
(2) | For the years ended December 31, 2018, 2017, 2016, the calculation of average diluted shares outstanding excludes the impact of warrants, as the inclusion of these shares would have been antidilutive due to the net loss recorded during the year. |
December 31, | ||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||
(In Thousands) | ||||||||||||||||||||
Balance Sheet Data | ||||||||||||||||||||
Working capital | $ | 200,340 | $ | 164,640 | $ | 158,906 | $ | 168,783 | $ | 121,476 | ||||||||||
Total assets | 1,385,527 | 1,308,614 | 1,315,540 | 1,636,202 | 2,063,522 | |||||||||||||||
Long-term debt, net | 815,560 | 629,855 | 623,730 | 853,228 | 826,095 | |||||||||||||||
Other long-term liabilities | 27,775 | 29,621 | 30,481 | 21,459 | 23,563 | |||||||||||||||
CCLP Series A Preferred Units | 27,019 | 61,436 | 77,062 | — | — | |||||||||||||||
Warrants liability | 2,073 | 13,202 | 18,503 | — | — | |||||||||||||||
Total equity | 312,749 | 352,561 | 400,466 | 514,180 | 765,601 |
December 31, 2018 | |||||||||||||||
Condensed Consolidating Balance Sheet | TETRA | CCLP | Eliminations | Consolidated | |||||||||||
(In Thousands) | |||||||||||||||
Cash, excluding restricted cash | $ | 24,180 | $ | 15,858 | $ | — | $ | 40,038 | |||||||
Affiliate receivables | 3,517 | — | (3,517 | ) | — | ||||||||||
Assets of discontinued operations | 1,354 | — | 1,354 | ||||||||||||
Other current assets | 223,410 | 135,889 | 359,299 | ||||||||||||
Property, plant and equipment, net | 212,612 | 641,319 | — | 853,931 | |||||||||||
Other assets, including investment in CCLP | 29,162 | 33,678 | 68,065 | 130,905 | |||||||||||
Total assets | $ | 494,235 | $ | 826,744 | $ | 64,548 | $ | 1,385,527 | |||||||
Affiliate payables | $ | — | $ | 3,517 | $ | (3,517 | ) | $ | — | ||||||
Current portion of long-term debt | — | — | — | — | |||||||||||
Other current liabilities | 105,370 | 90,836 | — | 196,206 | |||||||||||
Long-term debt, net | 182,547 | 633,013 | — | 815,560 | |||||||||||
CCLP Series A Preferred Units | — | 30,900 | (3,881 | ) | 27,019 | ||||||||||
Warrant liability | 2,073 | — | — | 2,073 | |||||||||||
Other non-current liabilities | 26,700 | 1,075 | 27,775 | ||||||||||||
Total equity | 173,400 | 67,403 | 71,946 | 312,749 | |||||||||||
Total liabilities and equity | $ | 494,235 | $ | 826,744 | $ | 64,548 | $ | 1,385,527 |
• | increases in technologically driven deepwater oil and gas well completions in the Gulf of Mexico; |
• | applications for many of our products and services in the continuing exploitation and development of shale reservoirs; and |
• | increases in selected international oil and gas exploration and development activities. |
Year Ended December 31, | Period to Period Change | ||||||||||||||
2018 | 2017 | 2018 vs. 2017 | % Change | ||||||||||||
(In Thousands, Except Percentages) | |||||||||||||||
Revenues | $ | 998,775 | $ | 723,098 | $ | 275,677 | 38.1 | % | |||||||
Gross profit | 162,298 | 108,390 | 53,908 | 49.7 | % | ||||||||||
Gross profit as a percentage of revenue | 16.2 | % | 15.0 | % | |||||||||||
General and administrative expense | 132,446 | 115,414 | 17,032 | 14.8 | % | ||||||||||
General and administrative expense as a percentage of revenue | 13.3 | % | 16.0 | % | |||||||||||
Interest expense, net | 70,946 | 57,246 | 13,700 | 23.9 | % | ||||||||||
Gain on sale of assets | (729 | ) | — | (729 | ) | ||||||||||
Warrants fair value adjustment | (11,129 | ) | (5,301 | ) | (5,828 | ) | |||||||||
CCLP Series A Preferred fair value adjustment | (733 | ) | (2,975 | ) | 2,242 | ||||||||||
Litigation arbitration award income | — | (12,816 | ) | 12,816 | |||||||||||
Other (income) expense, net | 7,923 | 865 | 7,058 | ||||||||||||
Loss before taxes and discontinued operations | (36,426 | ) | (44,043 | ) | 7,617 | ||||||||||
Loss before taxes and discontinued operations as a percentage of revenue | (3.6 | )% | (6.1 | )% | |||||||||||
Provision for income taxes | 6,299 | 751 | 5,548 | ||||||||||||
Loss before discontinued operations | (42,725 | ) | (44,794 | ) | 2,069 | ||||||||||
Loss from discontinued operations (including 2018 loss on disposal of $33.8 million), net of taxes | (41,515 | ) | (17,389 | ) | (24,126 | ) | |||||||||
Net loss | (84,240 | ) | (62,183 | ) | (22,057 | ) | |||||||||
Loss attributable to noncontrolling interest | 22,623 | 23,135 | (512 | ) | |||||||||||
Net loss attributable to TETRA stockholders | $ | (61,617 | ) | $ | (39,048 | ) | $ | (22,569 | ) |
Year Ended December 31, | Period to Period Change | ||||||||||||||
2018 | 2017 | 2018 vs. 2017 | % Change | ||||||||||||
(In Thousands, Except Percentages) | |||||||||||||||
Revenues | $ | 257,408 | $ | 257,851 | $ | (443 | ) | (0.2 | )% | ||||||
Gross profit | 48,675 | 71,022 | (22,347 | ) | (31.5 | )% | |||||||||
Gross profit as a percentage of revenue | 18.9 | % | 27.5 | % | |||||||||||
General and administrative expense | 18,830 | 19,661 | (831 | ) | (4.2 | )% | |||||||||
General and administrative expense as a percentage of revenue | 7.3 | % | 7.6 | % | |||||||||||
Interest (income) expense, net | (599 | ) | (53 | ) | (546 | ) | |||||||||
Litigation arbitration award income | — | (12,816 | ) | 12,816 | |||||||||||
Other (income) expense, net | (179 | ) | 339 | (518 | ) | ||||||||||
Income before taxes | $ | 30,623 | $ | 63,891 | $ | (33,268 | ) | (52.1 | )% | ||||||
Income before taxes as a percentage of revenue | 11.9 | % | 24.8 | % |
Year Ended December 31, | Period to Period Change | ||||||||||||||
2018 | 2017 | 2018 vs. 2017 | % Change | ||||||||||||
(In Thousands, Except Percentages) | |||||||||||||||
Revenues | $ | 303,072 | $ | 171,621 | $ | 131,451 | 76.6 | % | |||||||
Gross profit | 55,247 | 2,319 | 52,928 | 2,282.4 | % | ||||||||||
Gross profit as a percentage of revenue | 18.2 | % | 1.4 | % | |||||||||||
General and administrative expense | 23,640 | 16,155 | 7,485 | 46.3 | % | ||||||||||
General and administrative expense as a percentage of revenue | 7.8 | % | 9.4 | % | |||||||||||
Interest (income) expense, net | — | (296 | ) | 296 | |||||||||||
Other (income) expense, net | 2,895 | (724 | ) | 3,619 | |||||||||||
Income (loss) before taxes | $ | 28,712 | $ | (12,816 | ) | $ | 41,528 | 324.0 | % | ||||||
Income (loss) before taxes as a percentage of revenue | 9.5 | % | (7.5 | )% |
Year Ended December 31, | Period to Period Change | ||||||||||||||
2018 | 2017 | 2018 vs. 2017 | % Change | ||||||||||||
(In Thousands, Except Percentages) | |||||||||||||||
Revenues | $ | 438,673 | $ | 295,587 | $ | 143,086 | 48.4 | % | |||||||
Gross profit | 59,017 | 35,114 | 23,903 | 68.1 | % | ||||||||||
Gross profit as a percentage of revenue | 13.5 | % | 11.9 | % | |||||||||||
General and administrative expense | 39,544 | 33,442 | 6,102 | 18.2 | % | ||||||||||
General and administrative expense as a percentage of revenue | 9.0 | % | 11.3 | % | |||||||||||
Interest (income) expense, net | 51,905 | 42,082 | 9,823 | ||||||||||||
CCLP Series A Preferred fair value adjustment | (733 | ) | (2,975 | ) | 2,242 | ||||||||||
Other (income) expense, net | 2,098 | (189 | ) | 2,287 | |||||||||||
Loss before taxes | $ | (33,797 | ) | $ | (37,246 | ) | $ | 3,449 | (9.3 | )% | |||||
Loss before taxes as a percentage of revenue | (7.7 | )% | (12.6 | )% |
Year Ended December 31, | Period to Period Change | ||||||||||||||
2018 | 2017 | 2018 vs. 2017 | % Change | ||||||||||||
(In Thousands, Except Percentages) | |||||||||||||||
Gross profit (loss) (primarily depreciation expense) | $ | (658 | ) | $ | (84 | ) | $ | (574 | ) | (683.3 | )% | ||||
General and administrative expense | 50,431 | 46,156 | 4,275 | 9.3 | % | ||||||||||
Interest expense, net | 19,640 | 15,513 | 4,127 | ||||||||||||
Warrants fair value adjustment (income) expense | (11,128 | ) | (5,301 | ) | (5,827 | ) | |||||||||
Other (income) expense, net | 2,374 | 1,269 | 1,105 | ||||||||||||
Loss before taxes | $ | (61,975 | ) | $ | (57,721 | ) | $ | (4,254 | ) | (7.4 | )% |
Year Ended December 31, | Period to Period Change | ||||||||||||||
2017 | 2016 | 2017 vs. 2016 | % Change | ||||||||||||
(In Thousands, Except Percentages) | |||||||||||||||
Revenues | $ | 723,098 | $ | 617,391 | $ | 105,707 | 17.1 | % | |||||||
Gross profit | 108,390 | 60,839 | 47,551 | 78.2 | % | ||||||||||
Gross profit as a percentage of revenue | 15.0 | % | 9.9 | % | |||||||||||
General and administrative expense | 115,414 | 108,422 | 6,992 | 6.4 | % | ||||||||||
General and administrative expense as a percentage of revenue | 16.0 | % | 17.6 | % | |||||||||||
Goodwill impairment | — | 106,205 | (106,205 | ) | |||||||||||
Interest expense, net | 57,246 | 58,614 | (1,368 | ) | (2.3 | )% | |||||||||
Warrants fair value adjustment | (5,301 | ) | 2,106 | (7,407 | ) | ||||||||||
CCLP Series A Preferred fair value adjustment | (2,975 | ) | 4,404 | (7,379 | ) | ||||||||||
Litigation arbitration award income, net | (12,816 | ) | — | (12,816 | ) | ||||||||||
Other (income) expense, net | 865 | 4,308 | (3,443 | ) | |||||||||||
Loss before taxes and discontinued operations | (44,043 | ) | (223,220 | ) | 179,177 | ||||||||||
Loss before taxes as a percentage of revenue | (6.1 | )% | (36.2 | )% | |||||||||||
Provision (benefit) for income taxes | 751 | 2,156 | (1,405 | ) | |||||||||||
Income (loss) from continuing operations | (44,794 | ) | (225,376 | ) | 180,582 | ||||||||||
Loss from discontinued operations, net of taxes | (17,389 | ) | (14,017 | ) | (3,372 | ) | |||||||||
Net loss | (62,183 | ) | (239,393 | ) | 177,210 | ||||||||||
Net (income loss attributable to noncontrolling interest | 23,135 | 77,931 | (54,796 | ) | |||||||||||
Net income (loss) attributable to TETRA stockholders | $ | (39,048 | ) | $ | (161,462 | ) | $ | 122,414 |
Year Ended December 31, | Period to Period Change | ||||||||||||||
2017 | 2016 | 2017 vs. 2016 | % Change | ||||||||||||
(In Thousands, Except Percentages) | |||||||||||||||
Revenues | $ | 257,851 | $ | 205,156 | $ | 52,695 | 25.7 | % | |||||||
Gross profit | 71,022 | 40,157 | 30,865 | 76.9 | % | ||||||||||
Gross profit as a percentage of revenue | 27.5 | % | 19.6 | % | |||||||||||
General and administrative expense | 19,661 | 22,673 | (3,012 | ) | (13.3 | )% | |||||||||
General and administrative expense as a percentage of revenue | 7.6 | % | 11.1 | % | |||||||||||
Interest income, net | (53 | ) | (4 | ) | (49 | ) | |||||||||
Litigation arbitration award income | (12,816 | ) | — | (12,816 | ) | ||||||||||
Other (income) expense, net | 339 | (254 | ) | 593 | |||||||||||
Income before taxes | $ | 63,891 | $ | 17,742 | $ | 46,149 | 260.1 | % | |||||||
Income before taxes as a percentage of revenue | 24.8 | % | 8.6 | % |
Year Ended December 31, | Period to Period Change | ||||||||||||||
2017 | 2016 | 2017 vs. 2016 | % Change | ||||||||||||
(In Thousands, Except Percentages) | |||||||||||||||
Revenues | $ | 171,621 | $ | 105,057 | $ | 66,564 | 63.4 | % | |||||||
Gross profit (loss) | 2,319 | (16,586 | ) | 18,905 | (114.0 | )% | |||||||||
Gross profit (loss) as a percentage of revenue | 1.4 | % | (15.8 | )% | |||||||||||
General and administrative expense | 16,155 | 14,783 | 1,372 | 9.3 | % | ||||||||||
General and administrative expense as a percentage of revenue | 9.4 | % | 14.1 | % | |||||||||||
Goodwill impairment | — | 13,871 | (13,871 | ) | |||||||||||
Interest income, net | (296 | ) | (594 | ) | 298 | ||||||||||
Other (income) expense, net | (724 | ) | (1,863 | ) | 1,139 | ||||||||||
Loss before taxes | $ | (12,816 | ) | $ | (42,783 | ) | $ | 29,967 | 70.0 | % | |||||
Loss before taxes as a percentage of revenue | (7.5 | )% | (40.7 | )% |
Year Ended December 31, | Period to Period Change | ||||||||||||||
2017 | 2016 | 2017 vs. 2016 | % Change | ||||||||||||
(In Thousands, Except Percentages) | |||||||||||||||
Revenues | $ | 295,587 | $ | 311,374 | $ | (15,787 | ) | (5.1 | )% | ||||||
Gross profit | 35,114 | 37,681 | (2,567 | ) | (6.8 | )% | |||||||||
Gross profit as a percentage of revenue | 11.9 | % | 12.1 | % | |||||||||||
General and administrative expense | 33,442 | 36,199 | (2,757 | ) | (7.6 | )% | |||||||||
General and administrative expense as a percentage of revenue | 11.3 | % | 11.6 | % | |||||||||||
Goodwill impairment | — | 92,334 | (92,334 | ) | |||||||||||
Interest expense, net | 42,082 | 38,055 | 4,027 | ||||||||||||
CCLP Series A Preferred fair value adjustment | (2,975 | ) | 5,036 | (8,011 | ) | ||||||||||
Other (income) expense, net | (189 | ) | 2,384 | (2,573 | ) | ||||||||||
Loss before taxes | $ | (37,246 | ) | $ | (136,327 | ) | $ | 99,081 | (72.7 | )% | |||||
Loss before taxes as a percentage of revenue | (12.6 | )% | (43.8 | )% |
Year Ended December 31, | Period to Period Change | ||||||||||||||
2017 | 2016 | 2017 vs. 2016 | % Change | ||||||||||||
(In Thousands, Except Percentages) | |||||||||||||||
Gross profit (loss) (primarily depreciation expense) | $ | (84 | ) | $ | (430 | ) | $ | 346 | 80.5 | % | |||||
General and administrative expense | 46,156 | 34,767 | 11,389 | 32.8 | % | ||||||||||
Interest expense, net | 15,513 | 21,593 | (6,080 | ) | |||||||||||
Warrants fair value adjustment (income) expense | (5,301 | ) | 2,106 | (7,407 | ) | ||||||||||
Other (income) expense, net | 1,269 | 4,037 | (2,768 | ) | |||||||||||
Loss before taxes | $ | (57,721 | ) | $ | (62,933 | ) | $ | 5,212 | 8.3 | % |
Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(In Thousands) | |||||||||||
Operating activities | $ | 46,586 | $ | 64,595 | $ | 55,659 | |||||
Investing activities | (188,646 | ) | (47,897 | ) | (14,295 | ) | |||||
Financing activities | 154,994 | (21,336 | ) | (32,633 | ) |
• | any obligation under a guarantee contract that requires initial recognition and measurement under U.S. GAAP; |
• | a retained or contingent interest in assets transferred to an unconsolidated entity or similar arrangement that serves as credit, liquidity, or market risk support to that entity for the transferred assets; |
• | any obligation under certain derivative instruments; or |
• | any obligation under a material variable interest held by us in an unconsolidated entity that provides financing, liquidity, market risk or credit risk support to us, or engages in leasing, hedging, or research and development services with us. |
Payments Due | ||||||||||||||||||||||||||||
Total | 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | ||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||
Long-term debt - TETRA | $ | 200,000 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 200,000 | ||||||||||||||
Long-term debt - CCLP | 645,930 | — | — | — | 295,930 | — | 350,000 | |||||||||||||||||||||
Interest on debt - TETRA | 109,505 | 16,223 | 16,223 | 16,223 | 16,223 | 16,223 | 28,390 | |||||||||||||||||||||
Interest on debt - CCLP | 242,134 | 47,542 | 47,542 | 47,542 | 40,445 | 26,250 | 32,813 | |||||||||||||||||||||
Purchase obligations | 104,000 | 9,500 | 9,500 | 9,500 | 9,500 | 9,500 | 56,500 | |||||||||||||||||||||
Asset retirement obligations(1) | 12,202 | — | — | — | — | — | 12,202 | |||||||||||||||||||||
Operating and capital leases | 88,685 | 18,654 | 15,982 | 10,483 | 8,410 | 7,441 | 27,715 | |||||||||||||||||||||
Total contractual cash obligations(2) | $ | 1,402,456 | $ | 91,919 | $ | 89,247 | $ | 83,748 | $ | 370,508 | $ | 59,414 | $ | 707,620 |
(1) | We have estimated the timing of these payments for asset retirement obligation liabilities based upon our plans. The amounts shown represent the discounted obligation as of December 31, 2018. |
(2) | Amounts exclude other long-term liabilities reflected in our Consolidated Balance Sheet that do not have known payment streams. These excluded amounts include approximately $0.8 million of liabilities under FASB Codification Topic 740, “Accounting for Uncertainty in Income Taxes,” as we are unable to reasonably estimate the ultimate amount or timing of settlements. See Note H – "Income Taxes” in the Notes to Consolidated Financial Statements for further discussion. These excluded amounts also include approximately $27.0 million of liabilities related to the CCLP Series A Convertible Preferred Units. The CCLP Preferred Units are expected to be serviced with non-cash paid-in-kind distributions, and may be satisfied either through conversions to CCLP common units or redemptions for cash, at CCLP's election. See Note K – "CCLP Series A Convertible Preferred Units," in the Notes to Consolidated Financial Statements for further discussion. |
Expected Maturity Date | Fair Market Value | |||||||||||||||||||||||||||||||
($ amounts in thousands) | 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Total | |||||||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||||
Long-term debt: | ||||||||||||||||||||||||||||||||
U.S. dollar variable rate - TETRA | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 200,000 | $ | 200,000 | $ | 200,000 | ||||||||||||||||
Weighted average interest rate (variable) | — | % | — | % | — | % | — | % | — | % | 8.40 | % | ||||||||||||||||||||
U.S. dollar fixed rate - CCLP | $ | — | $ | — | $ | — | $295,930 | $ | — | $ | 350,000 | $ | 645,930 | $ | 598,800 | |||||||||||||||||
Weighted average interest rate (fixed) | — | % | — | % | — | % | 7.25 | % | — | % | 7.50 | % |
Derivative Contracts | U.S. Dollar Notional Amount | Traded Exchange Rate | Settlement Date | |||||
(In Thousands) | ||||||||
Forward purchase euro | $ | 3,571 | 1.18 | 3/15/2019 | ||||
Forward purchase euro | 3,585 | 1.18 | 3/15/2019 | |||||
Forward sale euro | 1,930 | 1.14 | 1/17/2019 | |||||
Forward purchase pounds sterling | 948 | 1.26 | 1/17/2019 | |||||
Forward sale Canadian dollar | 5,942 | 1.35 | 1/17/2019 | |||||
Forward purchase Mexican peso | 1,086 | 20.25 | 1/17/2019 | |||||
Forward sale Norwegian krone | 975 | 8.72 | 1/17/2019 | |||||
Forward sale Mexican peso | 4,783 | 20.07 | 1/17/2019 |
Derivative Contracts | British Pound Notional Amount | Traded Exchange Rate | Settlement Date | ||||
(In Thousands) | |||||||
Forward purchase euro | 1,173 | .90 | 1/17/2019 |
Foreign currency derivative instruments | Balance Sheet Location | Fair Value at December 31, 2018 | ||||
(In Thousands) | ||||||
Forward purchase contracts | Current assets | $ | 41 | |||
Forward sale contracts | Current assets | 76 | ||||
Forward sale contracts | Current liabilities | (126 | ) | |||
Forward purchase contracts | Current liabilities | (168 | ) | |||
Total | $ | (177 | ) |
1. | Financial Statements of the Company | |
Page | ||
F-1 | ||
Consolidated Balance Sheets at December 31, 2018 and 2017 | F-2 | |
F-4 | ||
F-5 | ||
F-6 | ||
F-7 | ||
F-8 | ||
2. | Financial statement schedules | |
All other schedules for which provision is made in the applicable accounting regulation of the Securities and Exchange Commission are not required under the related instructions or are inapplicable and therefore have been omitted. | ||
3. | List of Exhibits |
2.1 | |
2.2 | |
2.3 | |
2.4 | |
3.1 | |
3.2 | |
3.3 | |
4.1 | |
4.2 | |
4.3 | |
4.4 | |
4.5 |
4.6 | |
4.7 | |
10.1*** | |
10.2*** | |
10.3*** | |
10.4*** | |
10.5*** | |
10.6*** | |
10.7*** | |
10.8*** | |
10.9*** | |
10.10*** | |
10.11*** | |
10.12*** | |
10.13 | |
10.14 | |
10.15*** |
10.16*** | |
10.17*** | |
10.18 | |
10.19*** | |
10.20*** | |
10.21*** | |
10.22 | |
10.23 | |
10.24 | |
10.25 | |
10.26 | |
10.27 | |
10.28*** | |
10.29*** | |
10.30*** | |
10.31*** | |
10.32 |
10.33 | |
10.34*** | |
10.35*** | |
10.36*** | |
10.37*** | |
10.38*** | |
10.39*** | |
10.40*** | |
10.41*** | |
10.42*** | |
10.43*** | |
10.44+ | |
10.45 | |
10.46 | |
10.47 | |
10.48 | |
10.49 | |
10.50 | |
10.51 | |
10.52 | |
10.53 |
21+ | |
23.1+ | |
31.1+ | |
31.2+ | |
32.1** | |
32.2** | |
101.INS++ | XBRL Instance Document. |
101.SCH++ | XBRL Taxonomy Extension Schema Document. |
101.CAL++ | XBRL Taxonomy Extension Calculation Linkbase Document. |
101.LAB++ | XBRL Taxonomy Extension Label Linkbase Document. |
101.PRE++ | XBRL Taxonomy Extension Presentation Linkbase Document. |
101.DEF++ | XBRL Taxonomy Extension Definition Linkbase Document. |
+ | Filed with this report |
** | Furnished with this report. |
*** | Management contract or compensatory plan or arrangement. |
++ | Attached as Exhibit 101 to this report are the following documents formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Statements of Operations for the years ended December 31, 2018, 2017 and 2016; (ii) Consolidated Balance Sheets as of December 31, 2018 and December 31, 2017; (iii) Consolidated Statements of Comprehensive Income for the years ended December 31, 2018, 2017 and 2016; (iv) Consolidated Statements of Cash Flows for the years ended December 31, 2018, 2017 and 2016; (v) Consolidated Statements of Stockholders’ Equity for the years ended December 31, 2018, 2017 and 2016; and (vi) Notes to Consolidated Financial Statements for the year ended December 31, 2018. |
TETRA Technologies, Inc. | |||
Date: | March 4, 2019 | By: | /s/Stuart M. Brightman |
Stuart M. Brightman, Chief Executive Officer |
Signature | Title | Date |
/s/William D. Sullivan | Chairman of | March 4, 2019 |
William D. Sullivan | the Board of Directors | |
/s/Stuart M. Brightman | Chief Executive Officer | March 4, 2019 |
Stuart M. Brightman | and Director | |
(Principal Executive Officer) | ||
/s/Elijio V. Serrano | Senior Vice President, | March 4, 2019 |
Elijio V. Serrano | Chief Financial Officer | |
(Principal Financial Officer), | ||
and Principal Accounting Officer | ||
/s/Mark E. Baldwin | Director | March 4, 2019 |
Mark E. Baldwin | ||
/s/Thomas R. Bates, Jr. | Director | March 4, 2019 |
Thomas R. Bates, Jr. | ||
/s/Paul D. Coombs | Director | March 4, 2019 |
Paul D. Coombs | ||
/s/John F. Glick | Director | March 4, 2019 |
John F. Glick | ||
/s/Gina A. Luna | Director | March 4, 2019 |
Gina A. Luna | ||
/s/Brady M. Murphy | Chief Operating Officer | March 4, 2019 |
Brady M. Murphy | and Director | |
/s/Joseph C. Winkler III | Director | March 4, 2019 |
Joseph C. Winkler III |
December 31, 2018 | December 31, 2017 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 40,038 | $ | 26,128 | ||||
Restricted cash | 64 | 261 | ||||||
Trade accounts receivable, net of allowances of $2,583 in 2018 and $1,286 in 2017 | 187,592 | 144,051 | ||||||
Inventories | 143,571 | 115,438 | ||||||
Assets of discontinued operations | 1,354 | 34,879 | ||||||
Note receivable, including accrued interest | 7,544 | — | ||||||
Prepaid expenses and other current assets | 20,528 | 17,597 | ||||||
Total current assets | 400,691 | 338,354 | ||||||
Property, plant, and equipment: | ||||||||
Land and building | 78,746 | 78,559 | ||||||
Machinery and equipment | 1,265,732 | 1,167,680 | ||||||
Automobiles and trucks | 35,568 | 34,744 | ||||||
Chemical plants | 188,641 | 186,790 | ||||||
Construction in progress | 44,419 | 31,566 | ||||||
Total property, plant, and equipment | 1,613,106 | 1,499,339 | ||||||
Less accumulated depreciation | (759,175 | ) | (689,907 | ) | ||||
Net property, plant, and equipment | 853,931 | 809,432 | ||||||
Other assets: | ||||||||
Goodwill | 25,859 | 6,636 | ||||||
Patents, trademarks and other intangible assets, net of accumulated amortization of $80,401 in 2018 and $71,114 in 2017 | 82,184 | 47,405 | ||||||
Deferred tax assets | 13 | 10 | ||||||
Long-term assets of discontinued operations | — | 86,255 | ||||||
Other assets | 22,849 | 20,522 | ||||||
Total other assets | 130,905 | 160,828 | ||||||
Total assets | $ | 1,385,527 | $ | 1,308,614 |
December 31, 2018 | December 31, 2017 | |||||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Trade accounts payable | $ | 80,279 | $ | 70,847 | ||||
Unearned Income | 26,695 | 18,701 | ||||||
Accrued liabilities | 89,232 | 58,478 | ||||||
Liabilities of discontinued operations | 4,145 | 25,688 | ||||||
Total current liabilities | 200,351 | 173,714 | ||||||
Long-term debt, net | 815,560 | 629,855 | ||||||
Deferred income taxes | 3,242 | 4,404 | ||||||
Asset retirement obligations | 12,202 | 11,738 | ||||||
CCLP Series A Preferred Units | 27,019 | 61,436 | ||||||
Warrants liability | 2,073 | 13,202 | ||||||
Long-term liabilities of discontinued operations | — | 48,225 | ||||||
Other liabilities | 12,331 | 13,479 | ||||||
Total long-term liabilities | 872,427 | 782,339 | ||||||
Commitments and contingencies | ||||||||
Equity: | ||||||||
TETRA stockholders' equity: | ||||||||
Common stock, par value $0.01 per share; 250,000,000 shares authorized at December 31, 2018 and December 31, 2017; 128,455,134 shares issued at December 31, 2018, and 118,515,797 shares issued at December 31, 2017 | 1,285 | 1,185 | ||||||
Additional paid-in capital | 460,680 | 425,648 | ||||||
Treasury stock, at cost; 2,717,569 shares held at December 31, 2018, and 2,638,093 shares held at December 31, 2017 | (18,950 | ) | (18,651 | ) | ||||
Accumulated other comprehensive income (loss) | (51,663 | ) | (43,767 | ) | ||||
Retained deficit | (217,952 | ) | (156,335 | ) | ||||
Total TETRA stockholders' equity | 173,400 | 208,080 | ||||||
Noncontrolling interests | 139,349 | 144,481 | ||||||
Total equity | 312,749 | 352,561 | ||||||
Total liabilities and equity | $ | 1,385,527 | $ | 1,308,614 |
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Revenues: | ||||||||||||
Product sales | $ | 409,227 | $ | 305,404 | $ | 248,691 | ||||||
Services | 589,548 | 417,694 | 368,700 | |||||||||
Total revenues | 998,775 | 723,098 | 617,391 | |||||||||
Cost of revenues: | ||||||||||||
Cost of product sales | 327,553 | 223,504 | 193,966 | |||||||||
Cost of services | 390,378 | 274,627 | 228,345 | |||||||||
Depreciation, amortization, and accretion | 114,925 | 104,053 | 117,147 | |||||||||
Impairments and other charges | 3,621 | 14,876 | 17,094 | |||||||||
Insurance recoveries | — | (2,352 | ) | — | ||||||||
Total cost of revenues | 836,477 | 614,708 | 556,552 | |||||||||
Gross profit | 162,298 | 108,390 | 60,839 | |||||||||
General and administrative expense | 132,446 | 115,414 | 108,422 | |||||||||
Goodwill impairment | — | — | 106,205 | |||||||||
Interest expense, net | 70,946 | 57,246 | 58,614 | |||||||||
Warrants fair value adjustment (income) expense | (11,129 | ) | (5,301 | ) | 2,106 | |||||||
CCLP Series A Preferred fair value adjustment (income) expense | (733 | ) | (2,975 | ) | 4,404 | |||||||
Litigation arbitration award income | — | (12,816 | ) | — | ||||||||
Other (income) expense, net | 7,194 | 865 | 4,308 | |||||||||
Loss before taxes and discontinued operations | (36,426 | ) | (44,043 | ) | (223,220 | ) | ||||||
Provision for income taxes | 6,299 | 751 | 2,156 | |||||||||
Loss before discontinued operations | (42,725 | ) | (44,794 | ) | (225,376 | ) | ||||||
Discontinued operations: | ||||||||||||
Loss from discontinued operations, net of taxes | (41,515 | ) | (17,389 | ) | (14,017 | ) | ||||||
Net loss | (84,240 | ) | (62,183 | ) | (239,393 | ) | ||||||
Less: loss attributable to noncontrolling interest | 22,623 | 23,135 | 77,931 | |||||||||
Net loss attributable to TETRA stockholders | $ | (61,617 | ) | $ | (39,048 | ) | $ | (161,462 | ) | |||
Basic net loss per common share: | ||||||||||||
Loss before discontinued operations attributable to TETRA stockholders | $ | (0.16 | ) | $ | (0.19 | ) | $ | (1.69 | ) | |||
Loss from discontinued operations attributable to TETRA stockholders | (0.34 | ) | (0.15 | ) | (0.16 | ) | ||||||
Net loss attributable to TETRA stockholders | $ | (0.50 | ) | $ | (0.34 | ) | $ | (1.85 | ) | |||
Average shares outstanding | 124,101 | 114,499 | 87,286 | |||||||||
Diluted net loss per common share: | ||||||||||||
Loss before discontinued operations attributable to TETRA stockholders | $ | (0.16 | ) | $ | (0.19 | ) | $ | (1.69 | ) | |||
Loss from discontinued operations attributable to TETRA stockholders | $ | (0.34 | ) | $ | (0.15 | ) | $ | (0.16 | ) | |||
Net loss attributable to TETRA stockholders | $ | (0.50 | ) | $ | (0.34 | ) | $ | (1.85 | ) | |||
Average diluted shares outstanding | 124,101 | 114,499 | 87,286 |
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Net loss | $ | (84,240 | ) | $ | (62,183 | ) | $ | (239,393 | ) | |||
Foreign currency translation gain (loss), net of taxes of $0 in 2018, $0 in 2017, and $0 in 2016 | (10,084 | ) | 6,894 | (9,286 | ) | |||||||
Comprehensive loss | (94,324 | ) | (55,289 | ) | (248,679 | ) | ||||||
Less: comprehensive loss attributable to noncontrolling interest | 24,811 | 23,759 | 79,067 | |||||||||
Comprehensive loss attributable to TETRA stockholders | $ | (69,513 | ) | $ | (31,530 | ) | $ | (169,612 | ) |
Common Stock Par Value | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Noncontrolling Interest | Total Equity | |||||||||||||||||||||
Currency Translation | |||||||||||||||||||||||||||
Balance at December 31, 2015 | $ | 826 | $ | 256,188 | $ | (16,837 | ) | $ | (43,135 | ) | $ | 44,175 | $ | 272,963 | $ | 514,180 | |||||||||||
Net loss for 2016 | (161,462 | ) | (77,931 | ) | (239,393 | ) | |||||||||||||||||||||
Translation adjustment, net of taxes of $0 | (8,150 | ) | (1,136 | ) | (9,286 | ) | |||||||||||||||||||||
Comprehensive loss | (248,679 | ) | |||||||||||||||||||||||||
Distributions to public unitholders | (28,957 | ) | (28,957 | ) | |||||||||||||||||||||||
Equity award activity | 11 | 10 | 21 | ||||||||||||||||||||||||
Treasury stock activity, net | (1,479 | ) | (1,479 | ) | |||||||||||||||||||||||
Proceeds from the issuance of stock, net of offering costs | 338 | 152,319 | 152,657 | ||||||||||||||||||||||||
Equity compensation expense | 10,719 | 2,198 | 12,917 | ||||||||||||||||||||||||
Other | (194 | ) | (194 | ) | |||||||||||||||||||||||
Balance at December 31, 2016 | $ | 1,175 | $ | 419,236 | $ | (18,316 | ) | $ | (51,285 | ) | $ | (117,287 | ) | $ | 166,943 | $ | 400,466 | ||||||||||
Net loss for 2017 | (39,048 | ) | (23,135 | ) | (62,183 | ) | |||||||||||||||||||||
Translation adjustment, net of taxes of $0 | 7,518 | (624 | ) | 6,894 | |||||||||||||||||||||||
Comprehensive loss | (55,289 | ) | |||||||||||||||||||||||||
Distributions to public unitholders | (18,826 | ) | (18,826 | ) | |||||||||||||||||||||||
Equity award activity | 10 | 10 | |||||||||||||||||||||||||
Treasury stock activity, net | (335 | ) | (335 | ) | |||||||||||||||||||||||
Equity compensation expense | 6,412 | 862 | 7,274 | ||||||||||||||||||||||||
Conversions of CCLP Series A Preferred | 19,978 | 19,978 | |||||||||||||||||||||||||
Other | (717 | ) | (717 | ) | |||||||||||||||||||||||
Balance at December 31, 2017 | $ | 1,185 | $ | 425,648 | $ | (18,651 | ) | $ | (43,767 | ) | $ | (156,335 | ) | $ | 144,481 | $ | 352,561 | ||||||||||
Net loss for 2018 | (61,617 | ) | (22,623 | ) | (84,240 | ) | |||||||||||||||||||||
Translation adjustment, net of taxes of $0 | (7,896 | ) | (2,188 | ) | (10,084 | ) | |||||||||||||||||||||
Comprehensive loss | (94,324 | ) | |||||||||||||||||||||||||
Distributions to public unitholders | (19,224 | ) | (19,224 | ) | |||||||||||||||||||||||
Equity award activity | 23 | 251 | 274 | ||||||||||||||||||||||||
Treasury stock activity, net | (299 | ) | (299 | ) | |||||||||||||||||||||||
Issuance of common stock for business combination | 77 | 28,135 | 28,212 | ||||||||||||||||||||||||
Equity compensation expense | 6,715 | 450 | 7,165 | ||||||||||||||||||||||||
Conversions of CCLP Series A Preferred | 38,322 | 38,322 | |||||||||||||||||||||||||
Other | (69 | ) | 131 | 62 | |||||||||||||||||||||||
Balance at December 31, 2018 | $ | 1,285 | $ | 460,680 | $ | (18,950 | ) | $ | (51,663 | ) | $ | (217,952 | ) | $ | 139,349 | $ | 312,749 |
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Operating activities: | ||||||||||||
Net loss | $ | (84,240 | ) | $ | (62,183 | ) | $ | (239,393 | ) | |||
Reconciliation of net loss to cash provided by operating activities: | ||||||||||||
Depreciation, amortization, and accretion | 117,010 | 116,159 | 129,595 | |||||||||
Impairments and other charges | 3,621 | 14,876 | 18,172 | |||||||||
Impairment of goodwill | — | — | 106,205 | |||||||||
Benefit for deferred income taxes | (888 | ) | (3,048 | ) | (1,808 | ) | ||||||
Equity-based compensation expense | 7,379 | 7,727 | 13,747 | |||||||||
Provision for doubtful accounts | 2,156 | 1,428 | 2,436 | |||||||||
Non-cash loss on disposition of business | 32,369 | — | — | |||||||||
Excess decommissioning/abandoning costs | — | — | 2,629 | |||||||||
Expense for unamortized finance costs and other non-cash charges and credits | 4,398 | (65 | ) | 1,724 | ||||||||
Amortization of deferred financing costs | 4,297 | 4,743 | 4,141 | |||||||||
Insurance recoveries associated with damaged equipment | — | (2,352 | ) | — | ||||||||
Transaction financing expenses | 203 | 37 | 4,066 | |||||||||
CCLP Series A Preferred accrued paid in kind distributions | 4,738 | 7,328 | 2,659 | |||||||||
CCLP Series A Preferred fair value adjustment | (733 | ) | (2,975 | ) | 4,404 | |||||||
Warrants fair value adjustment | (11,129 | ) | (5,301 | ) | 2,106 | |||||||
Contingent consideration liability fair value adjustment | 3,400 | — | — | |||||||||
Gain on sale of property, plant, and equipment | (729 | ) | (674 | ) | (5,461 | ) | ||||||
Changes in operating assets and liabilities, net of assets acquired: | ||||||||||||
Accounts receivable | (5,512 | ) | (55,197 | ) | 64,331 | |||||||
Inventories | (29,221 | ) | (11,332 | ) | 1,384 | |||||||
Prepaid expenses and other current assets | (3,888 | ) | (1,608 | ) | 3,348 | |||||||
Trade accounts payable and accrued expenses | 5,463 | 58,937 | (54,092 | ) | ||||||||
Decommissioning liabilities | (35 | ) | (565 | ) | (4,040 | ) | ||||||
Other | (2,073 | ) | (1,340 | ) | (494 | ) | ||||||
Net cash provided by operating activities | 46,586 | 64,595 | 55,659 | |||||||||
Investing activities: | ||||||||||||
Purchases of property, plant, and equipment, net | (141,931 | ) | (51,923 | ) | (21,066 | ) | ||||||
Acquisition of businesses, net of cash acquired | (49,630 | ) | — | — | ||||||||
Proceeds from disposal of business | 3,121 | — | — | |||||||||
Proceeds from sale of property, plant, and equipment | 1,138 | 862 | 3,354 | |||||||||
Insurance recoveries associated with damaged equipment | — | 2,352 | — | |||||||||
Other investing activities | (1,344 | ) | 812 | 3,417 | ||||||||
Net cash used in investing activities | (188,646 | ) | (47,897 | ) | (14,295 | ) | ||||||
Financing activities: | ||||||||||||
Proceeds from long-term debt | 767,887 | 384,550 | 458,580 | |||||||||
Principal payments on long-term debt | (581,935 | ) | (384,100 | ) | (689,783 | ) | ||||||
CCLP distributions | (19,224 | ) | (18,826 | ) | (28,956 | ) | ||||||
Proceeds from issuance of common stock and warrants, net of underwriters' discount | — | — | 168,275 | |||||||||
Proceeds from CCLP Series A Preferred Units, net of offering costs | — | — | 66,935 | |||||||||
Proceeds from sale of common stock and exercise of stock options | 251 | — | 68 | |||||||||
Tax remittances on equity based compensation | (768 | ) | (803 | ) | (1,679 | ) | ||||||
Debt issuance costs | (11,217 | ) | (2,157 | ) | (6,073 | ) | ||||||
Net cash provided by (used in) financing activities | 154,994 | (21,336 | ) | (32,633 | ) | |||||||
Effect of exchange rate changes on cash | 779 | 1,122 | (1,987 | ) | ||||||||
Increase (decrease) in cash and cash equivalents and restricted cash | 13,713 | (3,516 | ) | 6,744 | ||||||||
Cash and cash equivalents and restricted cash at beginning of period | 26,389 | 29,905 | 23,161 | |||||||||
Cash and cash equivalents and restricted cash at end of period | $ | 40,102 | $ | 26,389 | $ | 29,905 | ||||||
Supplemental cash flow information: | ||||||||||||
Interest paid | $ | 56,261 | $ | 46,286 | $ | 54,506 | ||||||
Taxes paid | 4,680 | 6,782 | 4,254 |
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(In Thousands) | ||||||||||||
At beginning of period | $ | 1,286 | $ | 3,872 | $ | 6,279 | ||||||
Activity in the period: | ||||||||||||
Provision for doubtful accounts | 2,156 | 1,428 | 2,436 | |||||||||
Account (chargeoffs) recoveries | (859 | ) | (4,014 | ) | (4,843 | ) | ||||||
At end of period | $ | 2,583 | $ | 1,286 | $ | 3,872 |
Buildings | 15 – 40 years | |
Machinery and equipment | 2 – 20 years | |
Automobiles and trucks | 3 – 4 years | |
Chemical plants | 15 – 30 years | |
Compressors | 12 – 20 years |
December 31, | ||||||||
2018 | 2017 | |||||||
(In Thousands) | ||||||||
Finished goods | $ | 69,762 | $ | 66,377 | ||||
Raw materials | 3,503 | 4,027 | ||||||
Parts and supplies | 47,386 | 33,632 | ||||||
Work in progress | 22,920 | 11,402 | ||||||
Total inventories | $ | 143,571 | $ | 115,438 |
Water & Flowback Services | Compression | Total | ||||||||||
(In Thousands) | ||||||||||||
Balance as of December 31, 2015 | $ | 20,543 | $ | 92,402 | $ | 112,945 | ||||||
Goodwill adjustments | (13,907 | ) | (92,402 | ) | (106,309 | ) | ||||||
Balance as of December 31, 2016 | 6,636 | — | 6,636 | |||||||||
Goodwill adjustments | — | — | — | |||||||||
Balance as of December 31, 2017 | 6,636 | — | 6,636 | |||||||||
Goodwill acquired during the year | 19,223 | — | 19,223 | |||||||||
Goodwill adjustments | — | — | — | |||||||||
Balance as of December 31, 2018 | $ | 25,859 | $ | — | $ | 25,859 |
Current assets | $ | 16,880 | |
Property and equipment | 11,631 | ||
Intangible assets | 41,960 | ||
Goodwill | 15,560 | ||
Total assets acquired | 86,031 | ||
Current liabilities | 7,189 | ||
Total liabilities assumed | 7,189 | ||
Net assets acquired | $ | 78,842 |
Current assets | $ | 2,173 | |
Property and equipment | 3,413 | ||
Intangible assets | 3,197 | ||
Goodwill | 3,662 | ||
Total assets acquired | 12,445 | ||
Current liabilities | 2,716 | ||
Total liabilities assumed | 2,716 | ||
Net assets acquired | $ | 9,729 |
Twelve Months Ended December 31, | |||||||
2018 | 2017 | ||||||
(In Thousands) | |||||||
Revenues | $ | 1,012,925 | $ | 779,145 | |||
Depreciation, amortization, and accretion | $ | 115,902 | $ | 109,484 | |||
Gross profit | $ | 169,391 | $ | 132,239 | |||
Net income (loss) from continuing operations | $ | (41,017 | ) | $ | (42,329 | ) | |
Net income (loss) attributable to TETRA stockholders | $ | (61,525 | ) | $ | (39,570 | ) |
Twelve Months Ended December 31, 2018 | Twelve Months Ended December 31, 2017 | Twelve Months Ended December 31, 2016 | |||||||||||||||||||||||||||||||||
Offshore Services | Maritech | Total | Offshore Services | Maritech | Total | Offshore Services | Maritech | Total | |||||||||||||||||||||||||||
Major classes of line items constituting pretax loss from discontinued operations | |||||||||||||||||||||||||||||||||||
Revenue | $ | 4,487 | $ | 187 | $ | 4,674 | $ | 96,741 | $ | 538 | $ | 97,279 | $ | 76,622 | $ | 751 | $ | 77,373 | |||||||||||||||||
Cost of revenues | 11,151 | 139 | 11,290 | 92,674 | 1,064 | 93,738 | 70,032 | 3,236 | 73,268 | ||||||||||||||||||||||||||
Depreciation, amortization, and accretion | 1,873 | 212 | 2,085 | 10,678 | 1,428 | 12,106 | 12,164 | 1,362 | 13,526 | ||||||||||||||||||||||||||
General and administrative expense | 1,917 | 187 | 2,104 | 5,705 | 783 | 6,488 | 6,451 | 1,087 | 7,538 | ||||||||||||||||||||||||||
Other (income) expense, net | (1,036 | ) | — | (1,036 | ) | 2,453 | (565 | ) | 1,888 | 3 | (3,092 | ) | (3,089 | ) | |||||||||||||||||||||
Pretax loss from discontinued operations | (9,418 | ) | (351 | ) | (9,769 | ) | (14,769 | ) | (2,172 | ) | (16,941 | ) | (12,028 | ) | (1,842 | ) | (13,870 | ) | |||||||||||||||||
Pretax loss on disposal of discontinued operations | (34,072 | ) | — | — | |||||||||||||||||||||||||||||||
Total pretax loss from discontinued operations | (43,841 | ) | (16,941 | ) | (13,870 | ) | |||||||||||||||||||||||||||||
Income tax provision (benefit) | (2,326 | ) | 448 | 147 | |||||||||||||||||||||||||||||||
Total loss from discontinued operations | $ | (41,515 | ) | $ | (17,389 | ) | $ | (14,017 | ) |
December 31, 2018 | December 31, 2017 | ||||||||||||||||||||||
Offshore Services | Maritech | Total | Offshore Services | Maritech | Total | ||||||||||||||||||
Carrying amounts of major classes of assets included as part of discontinued operations | |||||||||||||||||||||||
Trade receivables | $ | — | $ | 1,340 | $ | 1,340 | $ | 27,385 | $ | 1,542 | $ | 28,927 | |||||||||||
Inventories | — | — | — | 4,616 | — | 4,616 | |||||||||||||||||
Other Current Assets | 14 | — | 14 | 1,292 | 44 | 1,336 | |||||||||||||||||
Current assets of discontinued operations | 14 | 1,340 | 1,354 | 33,293 | 1,586 | 34,879 | |||||||||||||||||
Property, plant, and equipment | — | — | — | 85,873 | — | 85,873 | |||||||||||||||||
Other assets | — | — | — | 382 | — | 382 | |||||||||||||||||
Long-term assets of discontinued operations | — | — | — | 86,255 | — | 86,255 | |||||||||||||||||
Total major classes of assets of the discontinued operations | $ | 14 | $ | 1,340 | $ | 1,354 | $ | 119,548 | $ | 1,586 | $ | 121,134 | |||||||||||
Carrying amounts of major classes of liabilities included as part of discontinued operations | |||||||||||||||||||||||
Trade payables | $ | 740 | $ | — | $ | 740 | $ | 13,942 | $ | 87 | $ | 14,029 | |||||||||||
Accrued liabilities | 1,330 | 2,075 | 3,405 | 8,904 | 2,278 | 11,182 | |||||||||||||||||
Current portion of decommissioning liability | — | — | — | — | 477 | 477 | |||||||||||||||||
Current liabilities of discontinued operations | 2,070 | 2,075 | 4,145 | 22,846 | 2,842 | 25,688 | |||||||||||||||||
Decommissioning and other asset retirement obligations | — | — | — | — | 46,185 | 46,185 | |||||||||||||||||
Other liabilities | — | — | — | 2,040 | — | 2,040 | |||||||||||||||||
Long-term liabilities of discontinued operations | — | — | — | 2,040 | 46,185 | 48,225 | |||||||||||||||||
Total major classes of liabilities of the discontinued operations | $ | 2,070 | $ | 2,075 | $ | 4,145 | $ | 24,886 | $ | 49,027 | $ | 73,913 |
Capital Lease | Operating Leases | |||||||
(In Thousands) | ||||||||
2019 | $ | 188 | $ | 18,466 | ||||
2020 | 35 | 15,947 | ||||||
2021 | 27 | 10,456 | ||||||
2022 | — | 8,410 | ||||||
2023 | — | 7,441 | ||||||
After 2024 | — | 27,715 | ||||||
Total minimum lease payments | $ | 250 | $ | 88,435 |
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(In Thousands) | ||||||||||||
Current | ||||||||||||
Federal | $ | — | $ | (651 | ) | $ | — | |||||
State | 1,465 | 799 | 783 | |||||||||
Foreign | 5,430 | 3,943 | 3,181 | |||||||||
6,895 | 4,091 | 3,964 | ||||||||||
Deferred | ||||||||||||
Federal | (79 | ) | 394 | — | ||||||||
State | (153 | ) | (648 | ) | (610 | ) | ||||||
Foreign | (364 | ) | (3,086 | ) | (1,198 | ) | ||||||
(596 | ) | (3,340 | ) | (1,808 | ) | |||||||
Total tax provision (benefit) | $ | 6,299 | $ | 751 | $ | 2,156 |
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(In Thousands) | ||||||||||||
Income tax provision (benefit) computed at statutory federal income tax rates | $ | (7,650 | ) | $ | (15,415 | ) | $ | (78,128 | ) | |||
State income taxes (net of federal benefit) | 55 | 1,664 | (2,960 | ) | ||||||||
Impact of international operations | 14,477 | 10,847 | 7,556 | |||||||||
Impact of U.S. tax law change | (2,510 | ) | 55,813 | — | ||||||||
Goodwill impairments | — | — | 12,990 | |||||||||
Impact of noncontrolling interest | 5,204 | 5,151 | 2,247 | |||||||||
Valuation allowance | (7,443 | ) | (63,635 | ) | 53,918 | |||||||
Other | 4,166 | 6,326 | 6,533 | |||||||||
Total tax provision (benefit) | $ | 6,299 | $ | 751 | $ | 2,156 |
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(In Thousands) | ||||||||||||
Domestic | $ | (44,957 | ) | $ | (29,419 | ) | $ | (221,609 | ) | |||
International | 8,531 | (14,624 | ) | (1,611 | ) | |||||||
Total | $ | (36,426 | ) | $ | (44,043 | ) | $ | (223,220 | ) |
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(In Thousands) | ||||||||||||
Gross unrecognized tax benefits at beginning of period | $ | 530 | $ | 857 | $ | 1,219 | ||||||
Decreases in tax positions for prior years | — | — | — | |||||||||
Increases in tax positions for current year | — | — | 16 | |||||||||
Lapse in statute of limitations | (202 | ) | (327 | ) | (378 | ) | ||||||
Gross unrecognized tax benefits at end of period | $ | 328 | $ | 530 | $ | 857 |
Jurisdiction | Earliest Open Tax Period |
United States – Federal | 2012 |
United States – State and Local | 2002 |
Non-U.S. jurisdictions | 2011 |
December 31, | ||||||||
2018 | 2017 | |||||||
(In Thousands) | ||||||||
Net operating losses | $ | 100,910 | $ | 88,025 | ||||
Federal tax credits | 3,441 | 19,346 | ||||||
Accruals | 9,396 | 24,577 | ||||||
Depreciation and amortization for book in excess of tax expense | 35,242 | 40,979 | ||||||
All other | 11,140 | 3,813 | ||||||
Total deferred tax assets | 160,129 | 176,740 | ||||||
Valuation allowance | (129,034 | ) | (130,453 | ) | ||||
Net deferred tax assets | $ | 31,095 | $ | 46,287 |
December 31, | ||||||||
2018 | 2017 | |||||||
(In Thousands) | ||||||||
Depreciation and amortization for tax in excess of book expense | $ | 31,999 | $ | 48,618 | ||||
All other | 2,325 | 2,064 | ||||||
Total deferred tax liability | 34,324 | 50,682 | ||||||
Net deferred tax liability | $ | 3,229 | $ | 4,395 |
December 31, | ||||||||
2018 | 2017 | |||||||
(In Thousands) | ||||||||
Compensation and employee benefits | $ | 25,286 | $ | 20,621 | ||||
Accrued interest | 15,158 | 9,272 | ||||||
Accrued capital expenditures | 1,561 | 1,617 | ||||||
Accrued taxes | 15,756 | 11,763 | ||||||
Contingent consideration, current portion | 11,452 | — | ||||||
Other accrued liabilities | 20,019 | 15,205 | ||||||
Total accrued liabilities | $ | 89,232 | $ | 58,478 |
December 31, 2018 | December 31, 2017 | ||||||||
(In Thousands) | |||||||||
TETRA | Scheduled Maturity | ||||||||
Asset-based credit agreement | September 10, 2023 | $ | — | $ | — | ||||
Term credit agreement (presented net of the unamortized discount of $7.2 million and net of unamortized deferred financing costs of $10.2 million as of December 31, 2018) | September 10, 2025 | 182,547 | — | ||||||
Bank revolving line of credit facility, terminated September 10, 2018 | — | — | |||||||
11.0% Senior Note, Series 2015 (presented net of the unamortized discount of $3.9 million and net of unamortized deferred financing costs of $3.4 million as of December 31, 2017), terminated September 10, 2018 | — | 117,679 | |||||||
TETRA total debt | 182,547 | 117,679 | |||||||
Less current portion | — | — | |||||||
TETRA total long-term debt | $ | 182,547 | $ | 117,679 | |||||
CCLP | |||||||||
CCLP Prior Credit Facility (presented net of the unamortized deferred financing costs of $4.0 million as of December 31, 2017), terminated March 22, 2018 | — | 223,985 | |||||||
CCLP Credit Agreement | June 29, 2023 | — | — | ||||||
CCLP 7.25% Senior Notes (presented net of the unamortized discount of $2.2 million as of December 31, 2018 and $2.8 million as of December 31, 2017 and net of unamortized deferred financing costs of $3.9 million as of December 31, 2018 and $5.0 million as of December 31, 2017) | August 15, 2022 | 289,797 | 288,191 | ||||||
CCLP 7.50% Senior Secured Notes (presented net of unamortized deferred financing costs of $6.8 million as of December 31, 2018) | April 1, 2025 | 343,216 | — | ||||||
CCLP total debt | 633,013 | 512,176 | |||||||
Less current portion | — | — | |||||||
CCLP total long-term debt | 633,013 | 512,176 | |||||||
Consolidated total long-term debt | $ | 815,560 | $ | 629,855 |
December 31, 2018 | ||||||||||||
(In Thousands) | ||||||||||||
TETRA | CCLP | Consolidated | ||||||||||
2019 | $ | — | $ | — | $ | — | ||||||
2020 | — | — | — | |||||||||
2021 | — | — | — | |||||||||
2022 | — | 295,930 | 295,930 | |||||||||
2023 | — | — | — | |||||||||
Thereafter | 200,000 | 350,000 | 550,000 | |||||||||
Total maturities | $ | 200,000 | $ | 645,930 | $ | 845,930 |
Date | Price | ||
2021 | 105.625 | % | |
2022 | 103.750 | % | |
2023 | 101.875 | % | |
2024 | 100.000 | % |
Year Ended December 31, | ||||||||
2018 | 2017 | |||||||
(In Thousands) | ||||||||
Beginning balance for the period, as reported | $ | 11,738 | $ | 9,912 | ||||
Activity in the period: | ||||||||
Accretion of liability | 563 | 624 | ||||||
Retirement obligations incurred | 59 | 265 | ||||||
Revisions in estimated cash flows | (123 | ) | 1,349 | |||||
Settlement of retirement obligations | (35 | ) | (412 | ) | ||||
Ending balance | $ | 12,202 | $ | 11,738 |
Common Shares Outstanding | Year Ended December 31, | ||||||||
2018 | 2017 | 2016 | |||||||
At beginning of period | 115,877,704 | 114,985,072 | 80,256,544 | ||||||
Exercise of common stock options, net | 65,524 | — | 636,937 | ||||||
Grants of restricted stock, net | 2,022,316 | 892,632 | 281,591 | ||||||
Issuance of common stock | 7,772,021 | — | 33,810,000 | ||||||
At end of period | 125,737,565 | 115,877,704 | 114,985,072 |
Treasury Shares Held | Year Ended December 31, | ||||||||
2018 | 2017 | 2016 | |||||||
At beginning of period | 2,638,093 | 2,536,421 | 2,281,495 | ||||||
Shares received upon exercise of common stock options | — | — | 13,854 | ||||||
Shares received upon vesting of restricted stock, net | 79,476 | 101,672 | 241,072 | ||||||
At end of period | 2,717,569 | 2,638,093 | 2,536,421 |
Units | Weighted Average Grant Date Fair Value Per Unit | ||||||
(In Thousands) | |||||||
Nonvested units outstanding at December 31, 2017 | 469 | $ | 9.31 | ||||
Units granted(1) | 330 | 7.33 | |||||
Units canceled | (186 | ) | 8.96 | ||||
Units vested | (121 | ) | 12.37 | ||||
Nonvested units outstanding at December 31, 2018(2) | 492 | $ | 7.36 |
(1) | The number excludes 93,996 performance-based phantom units, which represents the additional number of common units that would be issued if the maximum level of performance under the awards is achieved. |
Year Ended December 31, | |||||||||
2018 | 2017 | 2016 | |||||||
Expected stock price volatility | 57% | 53% | 52% | ||||||
Expected life of options | 4.5 years | 4.5 years | 4.6 years | ||||||
Risk free interest rate | 2.6% | 1.8% | 1.2% | ||||||
Expected dividend yield | — | — | — |
Shares Under Option | Weighted Average Option Price Per Share | Weighted-Average Remaining Contractual Life | Aggregate Intrinsic Value (in thousands) | ||||||||||
(In Thousands) | |||||||||||||
Outstanding at January 1, 2018 | 5,217 | $ | 8.59 | ||||||||||
Options granted | 791 | 3.89 | |||||||||||
Options canceled | (922 | ) | 6.97 | ||||||||||
Options exercised | (66 | ) | 3.78 | ||||||||||
Options expired | (540 | ) | $ | 21.16 | |||||||||
Outstanding at December 31, 2018 | 4,480 | $ | 6.65 | 5.9 | $ | — | |||||||
Expected to vest at December 31, 2018 | 4,480 | $ | 6.65 | 5.9 | $ | — | |||||||
Exercisable at December 31, 2018 | 3,324 | $ | 7.48 | 4.9 | $ | — |
Shares | Weighted Average Grant Date Fair Value Per Share | ||||||
(In Thousands) | |||||||
Nonvested restricted shares outstanding at December 31, 2017 | 1,036 | $ | 5.06 | ||||
Granted | 2,509 | 3.72 | |||||
Vested | (657 | ) | 4.93 | ||||
Canceled/Forfeited | (309 | ) | 4.68 | ||||
Nonvested restricted shares outstanding at December 31, 2018 | 2,579 | $ | 3.84 |
Derivative Contracts | U.S. Dollar Notional Amount | Traded Exchange Rate | Settlement Date | ||||||
(In Thousands) | |||||||||
Forward purchase euro | $ | 3,571 | 1.18 | 3/15/2019 | |||||
Forward purchase euro | $ | 3,585 | 1.18 | 3/15/2019 | |||||
Forward sale euro | $ | 1,930 | 1.14 | 1/17/2019 | |||||
Forward purchase pounds sterling | $ | 948 | 1.26 | 1/17/2019 | |||||
Forward sale Canadian dollar | $ | 5,942 | 1.35 | 1/17/2019 | |||||
Forward purchase Mexican peso | $ | 1,086 | 20.25 | 1/17/2019 | |||||
Forward sale Norwegian krone | $ | 975 | 8.72 | 1/17/2019 | |||||
Forward sale Mexican peso | $ | 4,783 | 20.07 | 1/17/2019 |
Derivative Contracts | British Pound Notional Amount | Traded Exchange Rate | Settlement Date | ||||||
(In Thousands) | |||||||||
Forward purchase euro | £ | 1,173 | 0.90 | 1/17/2019 |
Derivative Contracts | US Dollar Notional Amount | Traded Exchange Rate | Settlement Date | |||||
(In Thousands) | ||||||||
Forward purchase euro | $ | 1,743 | 1.19 | 1/18/2018 | ||||
Forward purchase pounds sterling | $ | 5,998 | 1.33 | 1/18/2018 | ||||
Forward sale Canadian dollar | $ | 3,756 | 1.29 | 1/18/2018 | ||||
Forward purchase Mexican peso | $ | 6,974 | 19.28 | 1/18/2018 | ||||
Forward sale Norwegian krone | $ | 4,131 | 8.40 | 1/18/2018 | ||||
Forward sale Mexican peso | $ | 6,067 | 19.28 | 1/18/2018 |
Foreign currency derivative instruments | Balance Sheet Location | Fair Value at December 31, 2018 | Fair Value at December 31, 2017 | ||||||
(In Thousands) | |||||||||
Forward purchase contracts | Current assets | $ | 41 | $ | 111 | ||||
Forward sale contracts | Current assets | 76 | 130 | ||||||
Forward sale contracts | Current liabilities | (126 | ) | (255 | ) | ||||
Forward purchase contracts | Current liabilities | (168 | ) | (113 | ) | ||||
Total | $ | (177 | ) | $ | (127 | ) |
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 | Dec 31, 2018 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
(In Thousands) | ||||||||||||||||
CCLP Series A Preferred Units | $ | (27,019 | ) | $ | — | $ | — | $ | (27,019 | ) | ||||||
Warrants liability | (2,073 | ) | — | — | (2,073 | ) | ||||||||||
Asset for foreign currency derivative contracts | 117 | — | 117 | — | ||||||||||||
Liability for foreign currency derivative contracts | (294 | ) | — | (294 | ) | — | ||||||||||
Acquisition contingent consideration liability | (12,452 | ) | — | — | (12,452 | ) | ||||||||||
Total | $ | (41,721 | ) |
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 | Dec 31, 2017 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
(In Thousands) | ||||||||||||||||
CCLP Series A Preferred Units | $ | (61,436 | ) | $ | — | $ | — | $ | (61,436 | ) | ||||||
Warrants liability | (13,202 | ) | — | — | (13,202 | ) | ||||||||||
Asset for foreign currency derivative contracts | 241 | — | 241 | — | ||||||||||||
Liability for foreign currency derivative contracts | (378 | ) | — | (378 | ) | — | ||||||||||
Total | $ | (74,775 | ) |
Fair Value Measurements Using | |||||||||||||||||
Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Year-to-Date Impairment Losses | ||||||||||||||
Description | Fair Value | ||||||||||||||||
(In Thousands) | |||||||||||||||||
Water & Flowback Services intangible assets | — | — | — | — | 2,940 | ||||||||||||
Total | $ | — | $ | 2,940 |
Fair Value Measurements Using | |||||||||||||||||
Fair Value as of | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Year-to-Date Impairment Losses | |||||||||||||
Description | Dec 31, 2017 | ||||||||||||||||
(In Thousands) | |||||||||||||||||
Water & Flowback Services equipment | — | — | — | — | 324 | ||||||||||||
Water & Flowback Services intangible assets | 3,206 | — | — | 3,206 | 14,552 | ||||||||||||
Total | $ | 3,206 | $ | 14,876 |
Year Ended December 31, | |||||||||
2018 | 2017 | 2016 | |||||||
(In Thousands) | |||||||||
Number of weighted average common shares outstanding | 124,101 | 114,499 | 87,286 | ||||||
Assumed exercise of equity awards and warrants | — | — | — | ||||||
Average diluted shares outstanding | 124,101 | 114,499 | 87,286 |
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(In Thousands) | ||||||||||||
Revenues from external customers | ||||||||||||
Product sales | ||||||||||||
Completion Fluids & Products Division | $ | 242,412 | $ | 226,132 | $ | 176,720 | ||||||
Water & Flowback Services Division | 1,961 | 12,581 | 162 | |||||||||
Compression Division | 164,854 | 66,691 | 71,809 | |||||||||
Consolidated | $ | 409,227 | $ | 305,404 | $ | 248,691 |
Services | ||||||||||||
Completion Fluids & Products Division | $ | 15,002 | $ | 31,688 | $ | 28,349 | ||||||
Water & Flowback Services Division | 300,727 | 157,110 | 100,786 | |||||||||
Compression Division | 273,819 | 228,896 | 239,565 | |||||||||
Consolidated | $ | 589,548 | $ | 417,694 | $ | 368,700 | ||||||
Interdivision revenues | ||||||||||||
Completion Fluids & Products Division | $ | (6 | ) | $ | 31 | $ | 87 | |||||
Water & Flowback Services Division | 384 | 1,930 | 4,109 | |||||||||
Compression Division | — | — | — | |||||||||
Interdivision eliminations | (378 | ) | (1,961 | ) | (4,196 | ) | ||||||
Consolidated | $ | — | $ | — | $ | — | ||||||
Total revenues | ||||||||||||
Completion Fluids & Products Division | $ | 257,408 | $ | 257,851 | $ | 205,156 | ||||||
Water & Flowback Services Division | 303,072 | 171,621 | 105,057 | |||||||||
Compression Division | 438,673 | 295,587 | 311,374 | |||||||||
Interdivision eliminations | (378 | ) | (1,961 | ) | (4,196 | ) | ||||||
Consolidated | $ | 998,775 | $ | 723,098 | $ | 617,391 |
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(In Thousands) | ||||||||||||
Depreciation, amortization, and accretion | ||||||||||||
Completion Fluids & Products | $ | 15,345 | $ | 16,298 | $ | 28,338 | ||||||
Water & Flowback Services | 28,439 | 18,092 | 16,221 | |||||||||
Compression | 70,500 | 69,142 | 72,159 | |||||||||
Corporate overhead | 658 | 521 | 429 | |||||||||
Consolidated | $ | 114,925 | $ | 104,053 | $ | 117,147 | ||||||
Interest expense | ||||||||||||
Completion Fluids & Products | $ | 179 | $ | 124 | $ | 32 | ||||||
Water & Flowback Services | 5 | 6 | 42 | |||||||||
Compression | 52,317 | 42,309 | 38,271 | |||||||||
Corporate overhead | 19,565 | 15,588 | 21,639 | |||||||||
Consolidated | $ | 72,066 | $ | 58,027 | $ | 59,984 | ||||||
Income (loss) before taxes | ||||||||||||
Completion Fluids & Products | $ | 30,623 | $ | 63,891 | $ | 17,742 | ||||||
Water & Flowback Services | 28,712 | (12,816 | ) | (42,783 | ) | |||||||
Compression | (33,797 | ) | (37,246 | ) | (136,327 | ) | ||||||
Interdivision eliminations | 11 | (151 | ) | 12 | ||||||||
Corporate overhead(1) | (61,975 | ) | (57,721 | ) | (61,864 | ) | ||||||
Consolidated | $ | (36,426 | ) | $ | (44,043 | ) | $ | (223,220 | ) |
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(In Thousands) | ||||||||||||
Total assets | ||||||||||||
Completion Fluids & Products | $ | 296,129 | $ | 293,507 | $ | 287,347 | ||||||
Water & Flowback Services | 230,442 | 139,771 | 122,973 | |||||||||
Compression | 869,474 | 784,745 | 816,148 | |||||||||
Corporate overhead and eliminations | (11,872 | ) | (30,543 | ) | (23,939 | ) | ||||||
Assets of discontinued operations | 1,354 | 121,134 | 113,011 | |||||||||
Consolidated | $ | 1,385,527 | $ | 1,308,614 | $ | 1,315,540 | ||||||
Capital expenditures | ||||||||||||
Completion Fluids & Products | $ | 5,259 | $ | 3,091 | $ | 1,629 | ||||||
Water & Flowback Services(2) | 30,175 | 16,194 | 1,484 | |||||||||
Compression Division (3) | 104,002 | 25,920 | 11,568 | |||||||||
Corporate overhead | 809 | 932 | 472 | |||||||||
Discontinued operations | 1,686 | 5,786 | 5,913 | |||||||||
Consolidated | $ | 141,931 | $ | 51,923 | $ | 21,066 |
(1) | Amounts reflected include the following general corporate expenses: |
2018 | 2017 | 2016 | ||||||||||
(In Thousands) | ||||||||||||
General and administrative expense | $ | 50,431 | $ | 46,156 | $ | 34,767 | ||||||
Depreciation and amortization | 658 | 84 | 430 | |||||||||
Interest expense, net | 19,640 | 15,513 | 21,593 | |||||||||
Warrants fair value adjustment (income) expense | (11,128 | ) | (5,301 | ) | 2,106 | |||||||
Other general corporate (income) expense, net | 2,374 | 1,269 | 4,037 | |||||||||
Total | $ | 61,975 | $ | 57,721 | $ | 62,933 |
(2) | Amounts presented net of cost of equipment sold, including $0.1 million during 2018 and $4.2 million during 2017 for our Water and Flowback Services. |
(3) | Amounts presented net of cost of equipment sold, including $10.0 million during 2018, $8.5 million during 2017, and $6.6 million during 2016 for our Compression Division. |
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(In Thousands) | ||||||||||||
Revenues from external customers: | ||||||||||||
U.S. | $ | 791,389 | $ | 545,964 | $ | 458,227 | ||||||
Canada and Mexico | 41,524 | 36,074 | 34,594 | |||||||||
South America | 25,781 | 28,040 | 20,480 | |||||||||
Europe | 93,262 | 80,721 | 71,882 | |||||||||
Africa | 12,367 | 700 | 10,345 | |||||||||
Asia and other | 34,452 | 31,599 | 21,863 | |||||||||
Total | $ | 998,775 | $ | 723,098 | $ | 617,391 | ||||||
Transfers between geographic areas: | ||||||||||||
U.S. | $ | — | $ | — | $ | — | ||||||
Canada and Mexico | — | — | — | |||||||||
South America | — | — | — | |||||||||
Europe | 3,157 | 2,025 | 93 | |||||||||
Africa | — | — | — | |||||||||
Asia and other | — | — | — | |||||||||
Eliminations | (3,157 | ) | (2,025 | ) | (93 | ) | ||||||
Total revenues | $ | 998,775 | $ | 723,098 | $ | 617,391 | ||||||
Identifiable assets: | ||||||||||||
U.S. | $ | 1,211,759 | $ | 1,131,650 | $ | 1,132,986 | ||||||
Canada and Mexico | 59,355 | 62,537 | 64,163 | |||||||||
South America | 25,122 | 23,352 | 21,354 | |||||||||
Europe | 57,807 | 61,000 | 53,713 | |||||||||
Africa | 14,772 | 3,696 | 5,711 | |||||||||
Asia and other | 16,712 | 26,379 | 37,613 | |||||||||
Total identifiable assets | $ | 1,385,527 | $ | 1,308,614 | $ | 1,315,540 |
2019 | 2020 | 2021 | 2022 | 2023 | Total | ||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Compression service contracts remaining performance obligations | $ | 16,980 | $ | 8,401 | $ | 4,236 | $ | — | $ | — | $ | 29,617 |
December 31, 2018 | |||
(In Thousands) | |||
Unearned Income, beginning of period | $ | 17,050 | |
Additional unearned income | 138,684 | ||
Revenue recognized | (130,401 | ) | |
Unearned income, end of period | $ | 25,333 |
Twelve months ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(In Thousands) | |||||||||||
Completion Fluids & Products | |||||||||||
U.S. | $ | 129,160 | $ | 160,221 | $ | 118,751 | |||||
International | 128,248 | 97,630 | 86,405 | ||||||||
257,408 | 257,851 | 205,156 | |||||||||
Water & Flowback Services | |||||||||||
U.S. | 261,238 | 120,463 | 68,735 | ||||||||
International | 41,834 | 51,158 | 36,322 | ||||||||
303,072 | 171,621 | 105,057 | |||||||||
Compression | |||||||||||
U.S. | 400,986 | 265,311 | 270,828 | ||||||||
International | 37,687 | 30,276 | 40,546 | ||||||||
438,673 | 295,587 | 311,374 | |||||||||
Interdivision eliminations | |||||||||||
U.S. | 5 | (31 | ) | (87 | ) | ||||||
International | (383 | ) | (1,930 | ) | (4,109 | ) | |||||
(378 | ) | (1,961 | ) | (4,196 | ) | ||||||
Total Revenue | |||||||||||
U.S. | 791,389 | 545,964 | 458,227 | ||||||||
International | 207,386 | 177,134 | 159,164 | ||||||||
$ | 998,775 | $ | 723,098 | $ | 617,391 |
Three Months Ended 2018 | ||||||||||||||||
March 31 | June 30 | September 30 | December 31 | |||||||||||||
(In Thousands, Except Per Share Amounts) | ||||||||||||||||
Total revenues | $ | 199,381 | $ | 260,072 | $ | 256,851 | $ | 282,471 | ||||||||
Gross profit | 27,983 | 47,801 | 41,330 | 45,184 | ||||||||||||
Income (loss) before discontinued operations | (21,057 | ) | (12,132 | ) | (12,852 | ) | 3,316 | |||||||||
Net income (loss) | (62,763 | ) | (12,153 | ) | (12,056 | ) | 2,732 | |||||||||
Net income (loss) attributable to TETRA stockholders | (53,648 | ) | (5,965 | ) | (6,936 | ) | 4,932 | |||||||||
Net income (loss) per share before discontinued operations attributable to TETRA stockholders | $ | (0.10 | ) | $ | (0.05 | ) | $ | (0.06 | ) | $ | 0.04 | |||||
Net income (loss) per diluted share before discontinued operations attributable to TETRA stockholders | $ | (0.10 | ) | $ | (0.05 | ) | $ | (0.06 | ) | $ | 0.04 | |||||
Net income (loss) per share attributable to TETRA stockholders | $ | (0.46 | ) | $ | (0.05 | ) | $ | (0.06 | ) | $ | 0.04 | |||||
Net income (loss) per diluted share attributable to TETRA stockholders | $ | (0.46 | ) | $ | (0.05 | ) | $ | (0.06 | ) | $ | 0.04 |
Three Months Ended 2017 | ||||||||||||||||
March 31 | June 30 | September 30 | December 31 | |||||||||||||
(In Thousands, Except Per Share Amounts) | ||||||||||||||||
Total revenues | $ | 159,409 | $ | 179,931 | $ | 183,677 | $ | 200,081 | ||||||||
Gross profit | 19,654 | 29,535 | 42,651 | 16,550 | ||||||||||||
Loss before discontinued operations | (4,245 | ) | (7,966 | ) | (857 | ) | (31,726 | ) | ||||||||
Net loss | (11,252 | ) | (14,619 | ) | (1,338 | ) | (34,974 | ) | ||||||||
Net income (loss) attributable to TETRA stockholders | (2,463 | ) | (10,991 | ) | 3,145 | (28,739 | ) | |||||||||
Net income (loss) per share before discontinued operations attributable to TETRA stockholders | $ | 0.04 | $ | (0.04 | ) | $ | 0.03 | $ | (0.22 | ) | ||||||
Net income (loss) per diluted share before discontinued operations attributable to TETRA stockholders | $ | 0.04 | $ | (0.04 | ) | $ | 0.03 | $ | (0.22 | ) | ||||||
Net income (loss) per share attributable to TETRA stockholders | $ | (0.02 | ) | $ | (0.10 | ) | $ | 0.03 | $ | (0.25 | ) | |||||
Net income (loss) per diluted share attributable to TETRA stockholders | $ | (0.02 | ) | $ | (0.10 | ) | $ | 0.03 | $ | (0.25 | ) |
Participant Name: | Stuart M. Brightman | Date of Grant: | 02/22/2018 |
and Address: | Vesting Commencement Date: | 02/22/2018 | |
Exercise Price per SAR: | $3.87 | ||
Expiration Date: | 2/22/2028 | Number of SARs: | 306,011 |
Event Triggering Termination of SARs | Max Time to Exercise Following Triggering Event |
Termination of Continuous Service (except as provided below) | 90 days from termination |
Termination of Continuous Service due to Disability, death or Retirement | 12 months from termination (or, if Participant dies during such 12-month period, 12 months from Participant's death) |
If to Participant: | If to the Company: |
Stuart M. Brightman | TETRA Technologies, Inc. |
[ ] | 24955 Interstate 45 North |
The Woodlands, Texas 77380 | |
Attention: General Counsel | |
With a copy to: | |
Haynes and Boone, LLP | |
1221 McKinney Street | |
Suite 2100 | |
Houston, Texas 77010 | |
Attention: Bill McDonald |
Name | Jurisdiction |
Compressco, Inc. | Delaware |
Compressco Testing, L.L.C. | Oklahoma |
Compressco Field Services, LLC | Oklahoma |
CSI Compressco GP Inc. | Delaware |
CSI Compressco Investment LLC | Delaware |
CSI Compressco LP | Delaware |
CSI Compressco Sub Inc. | Delaware |
CSI Compressco Finance Inc. | Delaware |
CSI Compression Holdings, LLC | Delaware |
Compressor Systems de Mexico, S. de R.L. de C.V. | Mexico |
Rotary Compressor Systems, Inc. | Delaware |
CSI Compressco Operating LLC | Delaware |
CSI Compressco Field Services International LLC | Delaware |
Compressco de Argentina SRL | Argentina |
CSI Compressco International LLC | Delaware |
CSI Compressco Holdings LLC | Delaware |
CSI Compressco Leasing LLC | Delaware |
Compressco Netherlands Cooperatief U.A. | Netherlands |
Compressco Netherlands B.V. | Netherlands |
Compressco Canada, Inc. | Canada |
CSI Compressco Mexico Investment I LLC | Delaware |
CSI Compressco Mexico Investment II LLC | Delaware |
Providence Natural Gas, LLC | Oklahoma |
Production Enhancement Mexico, S. de R.L. de C.V. | Mexico |
TETRA Applied Holding Company | Delaware |
T-Production Testing, LLC | Texas |
TETRA Production Testing Services, LLC | Delaware |
TETRA Production Testing Holding LLC | Delaware |
TETRA Financial Services, Inc. | Delaware |
TETRA-Hamilton Frac Water Services, LLC | Oklahoma |
TETRA International Incorporated | Delaware |
TETRA Middle East for Oil & Gas Services LLC | Saudi Arabia |
TETRA de Argentina SRL | Argentina |
TETRA de Mexico, S.A. de C.V. | Mexico |
TETRA Foreign Investments, LLC | Delaware |
TETRA International Holdings, B.V. | Netherlands |
T-International Holdings C.V. | Netherlands |
TETRA Netherlands, B.V. | Netherlands |
TETRA Oilfield Services Ghana Limited | Ghana |
TETRA Chemicals Europe AB | Sweden |
TETRA Chemicals Europe OY | Finland |
TETRA Egypt (LLC) | Egypt |
TETRA Equipment (Labuan) Ltd. | Malaysia |
TNBV Oilfield Services Ltd. | British Virgin Islands |
Well TETRA for Well Services LLC | Iraq |
TETRA Investments Company U.K. Limited | United Kingdom |
Optima Solutions Holdings Limited | United Kingdom |
Optima Solutions U.K. Limited | United Kingdom |
TETRA Technologies de Mexico, S.A. de C.V. | Mexico |
TETRA Technologies de Venezuela, S.A. | Venezuela |
TETRA Technologies do Brasil, Limitada | Brazil |
TETRA Technologies U.K. Limited | United Kingdom |
TETRA Technologies Nigeria Limited | Nigeria |
TETRA International Employment Ltd. Co. | Cayman Islands |
Tetra-Medit Oil Services | Libya |
TETRA Madeira, Unipessoal Lda | Portugal |
TETRA (Thailand) Limited | Thailand |
TETRA Yemen for Oilfield Services Co., Ltd. | Yemen |
Greywolf Energy Services Ltd. | Canada |
TETRA Process Services, L.C. | Texas |
TETRA Micronutrients, Inc. | Texas |
1. | I have reviewed this annual report on Form 10-K for the fiscal year ended December 31, 2018, of TETRA Technologies, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | March 4, 2019 | /s/Stuart M. Brightman |
Stuart M. Brightman | ||
Chief Executive Officer |
1. | I have reviewed this annual report on Form 10-K for the fiscal year ended December 31, 2018, of TETRA Technologies, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | March 4, 2019 | /s/Elijio V. Serrano |
Elijio V. Serrano | ||
Senior Vice President and Chief Financial Officer |
Dated: | March 4, 2019 | /s/Stuart M. Brightman |
Stuart M. Brightman | ||
Chief Executive Officer | ||
TETRA Technologies, Inc. |
Dated: | March 4, 2019 | /s/Elijio V. Serrano |
Elijio V. Serrano | ||
Senior Vice President and Chief Financial Officer | ||
TETRA Technologies, Inc. |
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Document And Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Feb. 28, 2019 |
Jun. 30, 2018 |
|
Document Information [Line Items] | |||
Entity Registrant Name | TETRA TECHNOLOGIES INC | ||
Entity Central Index Key | 0000844965 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 527,447,571 | ||
Entity Common Stock, Shares Outstanding | 125,629,069 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Current assets: | ||
Trade accounts receivable, allowances for doubtful accounts | $ 2,583 | $ 1,286 |
Other assets: | ||
Patents, trademarks, and other intangible assets, accumulated amortization | $ 80,401 | $ 71,114 |
Equity: | ||
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 | 128,455,134 | 118,515,797 |
Treasury stock, shares held | 2,717,569 | 2,638,093 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (84,240) | $ (62,183) | $ (239,393) |
Foreign currency translation loss, net of taxes of $0 in 2015, $3,368 in 2014, and $(1,076) in 2013 | (10,084) | 6,894 | (9,286) |
Comprehensive income (loss) | (94,324) | (55,289) | (248,679) |
Less: comprehensive income attributable to noncontrolling interest | 24,811 | 23,759 | 79,067 |
Comprehensive income (loss) attributable to TETRA stockholders | $ (69,513) | $ (31,530) | $ (169,612) |
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation adjustment, tax | $ 0 | $ 0 | $ 0 |
Consolidated Statements of Equity (Parenthetical) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Statement of Stockholders' Equity [Abstract] | |||
Foreign currency translation adjustment, tax | $ 0 | $ 0 | $ 0 |
Organization and Operations |
12 Months Ended |
---|---|
Dec. 31, 2018 | |
Notes to Financial Statements [Abstract] | |
Organization and Operations | NOTE A — ORGANIZATION AND OPERATIONS We are a geographically diversified oil and gas services company, focused on completion fluids and associated products and services, comprehensive water management, frac flowback, production well testing and offshore rig cooling services, and compression services and equipment. Prior to the March 2018 sale of our Offshore Division, our operations also included certain offshore services including well plugging and abandonment, decommissioning, and diving, as well as a limited domestic oil and gas production business. We were incorporated in Delaware in 1981. Following the acquisition and disposition transactions described in Note E – "Acquisitions and Dispositions" that closed during the three month period ended March 31, 2018, we reorganized our business into three reporting segments – Completion Fluids & Products, Water & Flowback Services, and Compression. Prior period financial information has been revised to reflect the change in reportable segments. See Note T - "Industry Segments and Geographic Information." Additionally, following the disposition of our Offshore Division, its operations have been presented as discontinued operations for all periods presented. See Note F - "Discontinued Operations." Unless the context requires otherwise, when we refer to “we,” “us,” and “our,” we are describing TETRA Technologies, Inc. and its consolidated subsidiaries on a consolidated basis. Our Completion Fluids & Products Division manufactures and markets clear brine fluids ("CBFs"), additives, and associated products and services to the oil and gas industry for use in well drilling, completion and workover operations in the United States and in certain countries in Latin America, Europe, Asia, the Middle East and Africa. The Division also markets liquid and dry calcium chloride products manufactured at its production facilities or purchased from third-party suppliers to a variety of markets outside the energy industry. Our Water & Flowback Services Division provides onshore oil and gas operators with comprehensive water management services. The Division also provides frac flowback, production well testing, offshore rig cooling, and other associated services in many of the major oil and gas producing regions in the United States, Mexico, and Canada, as well as in oil and gas basins in certain regions in South America, Africa, Europe, the Middle East, and Australia. Our Compression Division is a provider of compression services and equipment for natural gas and oil production, gathering, transportation, processing, and storage. The Compression Division's equipment sales business includes the fabrication and sale of standard compressor packages and custom-designed compressor packages designed and fabricated at the Division's facilities. The Compression Division's aftermarket business provides compressor package reconfiguration and maintenance services and compressor package parts and components manufactured by third-party suppliers. The Compression Division provides its services and equipment to a broad base of natural gas and oil exploration and production, midstream, transmission, and storage companies operating throughout many of the onshore producing regions of the United States, as well as in a number of foreign countries, including Mexico, Canada and Argentina. We have reviewed our financial forecasts for the twelve month period subsequent to March 4, 2019, which consider our debt covenant requirements. Based on our financial forecasts, which are based on current market conditions and certain operating and other business assumptions that we believe to be reasonable as of March 4, 2019, we believe that we will have adequate liquidity, earnings, and operating cash flows to fund our operations and debt obligations and maintain compliance with our debt covenants through at least the next twelve months. |
Summary of Significant Accounting Policies |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Principles of Consolidation Our consolidated financial statements include the accounts of our wholly owned subsidiaries. We consolidate the financial statements of CCLP as part of our Compression Division, as we determined that CCLP is a variable interest entity and we are the primary beneficiary. We control the financial interests of CCLP and have the ability to direct the activities of CCLP that most significantly impact its economic performance through our ownership of its general partner. The share of CCLP net assets and earnings that is not owned by us is presented as noncontrolling interest in our consolidated financial statements. Our cash flows from our investment in CCLP are limited to the quarterly distributions we receive on our CCLP common units and general partner interest (including incentive distribution rights) and the amounts collected for services we perform on behalf of CCLP, as TETRA's capital structure and CCLP's capital structure are separate, and do not include cross default provisions, cross collateralization provisions, or cross guarantees. As of December 31, 2018, our consolidated balance sheet includes $67.4 million of restricted net assets, consisting of the consolidated net assets of CCLP. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("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. For a discussion of the reclassification of the financial presentation of our Offshore Division as discontinued operations, see Note F - "Discontinued Operations." Cash Equivalents We consider all highly liquid cash investments with a maturity of three months or less when purchased to be cash equivalents. Restricted Cash Restricted cash is classified as a current asset when it is expected to be repaid or settled in the next twelve month period. Financial Instruments Financial instruments that subject us to concentrations of credit risk consist principally of trade receivables with companies in the energy industry. Our policy is to evaluate, prior to providing goods or services, each customer's financial condition and to determine the amount of open credit to be extended. We generally require appropriate, additional collateral as security for credit amounts in excess of approved limits. Our customers consist primarily of major, well-established oil and gas producers and independent oil and gas companies. Payment terms are on a short-term basis. We have currency exchange rate risk exposure related to transactions denominated in a foreign currency as well as to investments in certain of our international operations. Our risk management activities include the use of foreign currency forward purchase and sale derivative contracts as part of a program designed to mitigate the currency exchange rate risk exposure on selected international operations. We have no outstanding balances under our and CCLP's variable rate revolving credit facilities as of December 31, 2018. However, if we were to have outstanding balances on these variable rate bank credit facilities, we would face market risk exposure related to changes in applicable interest rates. Allowances for Doubtful Accounts Allowances for doubtful accounts are determined generally and on a specific identification basis when we believe that the collection of specific amounts owed to us is not probable. The changes in allowances for doubtful accounts for the three year period ended December 31, 2018, are as follows:
Inventories Inventories are stated at the lower of cost or net realizable value. Except for work in progress inventory, cost is determined using the weighted average method. The cost of work in progress is determined using the specific identification method. Property, Plant, and Equipment Property, plant, and equipment are stated at cost. Expenditures that increase the useful lives of assets are capitalized. The cost of repairs and maintenance is charged to operations as incurred. For financial reporting purposes, we provide for depreciation using the straight-line method over the estimated useful lives of assets, which are generally as follows:
Leasehold improvements are depreciated over the shorter of the remaining term of the associated lease or its useful life. Depreciation expense, excluding impairments and other charges, for the years ended December 31, 2018, 2017, and 2016 was $106.9 million, $97.3 million, and $109.4 million, respectively. Construction in progress as of December 31, 2018 and 2017 consists primarily of equipment fabrication projects. Intangible Assets other than Goodwill Patents, trademarks, and other intangible assets are amortized on a straight-line basis over their estimated useful lives, ranging from 2 to 20 years. Amortization expense of patents, trademarks, and other intangible assets was $7.3 million, $6.1 million, and $6.8 million for the years ended December 31, 2018, 2017, and 2016, respectively, and is included in depreciation, amortization and accretion. The estimated future annual amortization expense of patents, trademarks, and other intangible assets is $7.8 million for 2019, $7.7 million for 2020, $7.4 million for 2021, $7.0 million for 2022, and $6.7 million for 2023. Intangible assets other than goodwill are tested for recoverability whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. In such an event, we will determine the fair value of the asset using an undiscounted cash flow analysis of the asset at the lowest level for which identifiable cash flows exist. If an impairment has occurred, we will recognize a loss for the difference between the carrying value and the estimated fair value of the intangible asset. During 2018, 2017, and 2016, certain intangible assets were impaired. See "Impairments of Long-Lived Assets" section below. Goodwill Goodwill represents the excess of cost over the fair value of the net assets acquired in business combinations. We perform a goodwill impairment test at a reporting unit level on an annual basis or whenever indicators of impairment are present. We perform the annual test of goodwill impairment as of the last day of the fourth quarter of each year. As of December 31, 2018, consolidated goodwill consists of $25.9 million attributed to our Water Management reporting unit, included as part of our Water & Flowback Services Division. The first step of the impairment test is to compare the estimated fair value with the recorded net book value (including goodwill) of our reporting units. If the estimated fair value is higher than the recorded net book value, no impairment is deemed to exist and no further testing is required. If, however, the carrying amount of the reporting unit exceeds its estimated fair value, an impairment loss is calculated by comparing the carrying amount of the reporting unit’s goodwill to our estimated implied fair value of that goodwill. Our estimates of reporting unit fair value, when required, are based on a combination of an income and market approach. These estimates are imprecise and are subject to our estimates of the future cash flows of each business and our judgment as to how these estimated cash flows translate into each business’ estimated fair value. These estimates and judgments are affected by numerous factors, including the general economic environment at the time of our assessment, which affects our overall market capitalization. See Note D - "Goodwill" for additional discussion of our goodwill. Impairments of Long-Lived Assets Impairments of long-lived assets, including identified intangible assets, are determined periodically when indicators of impairment are present. If such indicators are present, the determination of the amount of impairment is based on our judgments as to the future undiscounted operating cash flows to be generated from these assets throughout their remaining estimated useful lives. If these undiscounted cash flows are less than the carrying amount of the related asset, an impairment is recognized for the excess of the carrying value over its fair value. Assets held for disposal are recorded at the lower of carrying value or estimated fair value less estimated selling costs. During the third quarter of 2018, as a result of decreased expected future cash flows from a specific customer contract, we recorded a long-lived asset impairment of $2.9 million of an identified intangible asset within the Water & Flowback Services segment. During the fourth quarter of 2017, consolidated long-lived asset impairments of approximately $14.9 million were recorded primarily due to the impairment of a certain identified intangible asset resulting from decreased expected future operating cash flows from a Water & Flowback Services segment customer. During the first quarter of 2016, our Compression and Water & Flowback Services segments recorded impairments of approximately $7.9 million and $2.8 million, respectively, due to expected decreased demand due to current market conditions. During the fourth quarter of 2016, our Compression, Completion Fluids & Products, and Water & Flowback Services segments recorded certain consolidated impairments and other charges of approximately $2.4 million, $0.5 million, and $3.6 million, respectively, due to expected decreased demand due to current market conditions and equipment damage. Asset Retirement Obligations The values of our asset retirement obligations for properties were $12.2 million and $11.7 million as of December 31, 2018 and 2017, respectively. Decommissioning and asset retirement work performed for the years 2018, 2017, and 2016 was $0.04 million, $0.4 million, and $0.0 million, respectively. For a further discussion of asset retirement obligations, see Note L – "Asset Retirement Obligations." Environmental Liabilities Environmental expenditures that result in additions to property and equipment are capitalized, while other environmental expenditures are expensed. Environmental remediation liabilities are recorded on an undiscounted basis when environmental assessments or cleanups are probable and the costs can be reasonably estimated. Estimates of future environmental remediation expenditures often consist of a range of possible expenditure amounts, a portion of which may be in excess of amounts of liabilities recorded. In such an instance, we disclose the full range of amounts reasonably possible of being incurred. Any changes or developments in environmental remediation efforts are accounted for and disclosed each quarter as they occur. Any recoveries of environmental remediation costs from other parties are recorded as assets when their receipt is deemed probable. Complexities involving environmental remediation efforts can cause estimates of the associated liability to be imprecise. Factors that cause uncertainties regarding the estimation of future expenditures include, but are not limited to, the effectiveness of the anticipated work plans in achieving targeted results and changes in the desired remediation methods and outcomes as prescribed by regulatory agencies. Uncertainties associated with environmental remediation contingencies are pervasive and often result in wide ranges of reasonably possible outcomes. Estimates developed in the early stages of remediation can vary significantly. Normally, a finite estimate of cost does not become fixed and determinable at a specific point in time. Rather, the costs associated with environmental remediation become estimable as the work is performed and the range of ultimate cost becomes more defined. It is possible that cash flows and results of operations could be materially affected by the impact of the ultimate resolution of these contingencies. Revenue Recognition Revenue is recognized when performance obligations under the terms of a contract with our customer are satisfied. Refer to Note U - "Revenue From Contracts With Customers" for further discussion. Operating Costs Cost of product sales includes direct and indirect costs of manufacturing and producing our products, including raw materials, fuel, utilities, labor, overhead, repairs and maintenance, materials, services, transportation, warehousing, equipment rentals, insurance, and certain taxes. In addition, cost of product sales includes oil and gas operating expense. Cost of services includes operating expenses we incur in delivering our services, including labor, equipment rental, fuel, repair and maintenance, transportation, overhead, insurance, and certain taxes. We include in product sales revenues the reimbursements we receive from customers for shipping and handling costs. Shipping and handling costs are included in cost of product sales. Amounts we incur for “out-of-pocket” expenses in the delivery of our services are recorded as cost of services. Reimbursements for “out-of-pocket” expenses we incur in the delivery of our services are recorded as service revenues. Depreciation, amortization, and accretion includes depreciation expense for all of our facilities, equipment and vehicles, amortization expense on our intangible assets, and accretion expense related to our decommissioning and other asset retirement obligations. We include in general and administrative expense all costs not identifiable to our specific product or service operations, including divisional and general corporate overhead, professional services, corporate office costs, sales and marketing expenses, insurance, and certain taxes. Equity-Based Compensation We and CCLP have various equity incentive compensation plans which provide for the granting of restricted common stock, options for the purchase of our common stock, and other performance-based, equity-based compensation awards to our executive officers, key employees, nonexecutive officers, and directors. Total equity-based compensation expense, net of taxes, for the three years ended December 31, 2018, 2017, and 2016, was $5.8 million, $5.0 million, and $9.5 million, respectively. For further discussion of equity-based compensation, see Note O – "Equity-Based Compensation." Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis amounts. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates is recognized as income or expense in the period that includes the enactment date. A portion of the carrying value of certain deferred tax assets are subject to a valuation allowance. See Note H – "Income Taxes" for further discussion. Accumulated Other Comprehensive Income (Loss) Certain of our international operations maintain their accounting records in the local currencies that are their functional currencies. For these operations, the functional currency financial statements are converted to United States dollar equivalents, with the effect of the foreign currency translation adjustment reflected as a component of accumulated other comprehensive income (loss). Accumulated other comprehensive income (loss) is included in partners' capital in the accompanying audited consolidated balance sheets and consists of the cumulative currency translation adjustments associated with such international operations. Activity within accumulated other comprehensive income includes no reclassifications to net income. Income (Loss) per Common Share The calculation of basic earnings per share excludes any dilutive effects of equity awards or warrants. The calculation of diluted earnings per share includes the effect of equity awards and warrants, if dilutive, which is computed using the treasury stock method during the periods such equity awards and warrants were outstanding. A reconciliation of the common shares used in the computations of income (loss) per common and common equivalent shares is presented in Note S – "Income (Loss) Per Share." Foreign Currency Translation We have designated the euro, the British pound, the Norwegian krone, the Canadian dollar, the Brazilian real, and the Mexican peso as the functional currencies for our operations in Finland and Sweden, the United Kingdom, Norway, Canada, Brazil, and certain of our operations in Mexico, respectively. The U.S. dollar is the designated functional currency for all of our other foreign operations. The cumulative translation effects of translating the applicable accounts from the functional currencies into the U.S. 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 $(0.1) million, $(1.6) million, and $(0.9) million for the years ended December 31, 2018, 2017 and 2016, respectively. On June 30, 2018, we determined the economy in Argentina to be highly inflationary. As a result of this determination and in accordance with U.S. GAAP, on July 1, 2018, the functional currency of our operations in Argentina was changed from the Argentine peso to the U.S. dollar. The remeasurement did not have a material impact on our consolidated financial position or results of operations. 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 liabilities, including the liabilities for the warrants to purchase 11.2 million shares of our common stock (the "Warrants"), the CCLP Series A Convertible Preferred Units (the "CCLP Preferred Units"), and contingent consideration liability. We also utilize fair value measurements on a recurring basis in the accounting for our foreign currency derivative contracts. Refer to Note R - "Fair Value Measurements" for further discussion. Fair value measurements are also utilized on a nonrecurring basis in certain circumstances, such as in the allocation of purchase consideration for acquisition transactions to the assets and liabilities acquired, including intangible assets and goodwill (a Level 3 fair value measurement), the initial recording of our asset retirement obligations, and for the impairment of long-lived assets, including goodwill (a Level 3 fair value measurement). New Accounting Pronouncements Standards adopted in 2018 In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers." This ASU supersedes the revenue recognition requirements in Accounting Standards Codification ("ASC") 605, "Revenue Recognition", and most industry-specific guidance. This ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those years, under either full or modified retrospective adoption. On January 1, 2018, we adopted ASU 2014-09 and all related amendments, which was codified into ASC 606. We utilized the modified retrospective method of adoption. Comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The core principle of ASC 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASC 606 also provides a five-step model for determining revenue recognition for arrangements that are within the scope of the standard: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. We only apply the five-step model to contracts when it is probable that we will collect the consideration we are entitled to in exchange for the goods or services we transfer to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, we assess the goods or services promised within each contract and determine those that are performance obligations and assess whether each promised good or service is distinct. We then recognize as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. For a complete discussion of accounting for revenues, see Note U - "Revenue from Contracts with Customers." The impact from the adoption of ASC 606 to our January 1, 2018 consolidated balance sheet, our December 31, 2018 consolidated balance sheet, and our consolidated results of operations for the year ended December 31, 2018 was immaterial. The adoption of ASC 606 had no impact to cash provided by operating, financing, or investing activities in our consolidated statement of cash flows. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" to reduce diversity in practice in classification of certain transactions in the statement of cash flows. We adopted this ASU during the three month period ended March 31, 2018, with no impact to our consolidated financial statements. In November 2016, the FASB issued ASU 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory," which requires companies to account for the income tax effects of intercompany transfers of assets other than inventory when the transfer occurs. We adopted this ASU during the three month period ended March 31, 2018. The adoption of this standard did not have a material impact to our consolidated financial statements. Additionally, in November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash" to reduce diversity in the presentation of restricted cash and restricted cash equivalents in the statement of cash flows. We adopted this ASU during the three month period ended March 31, 2018, resulting in restricted cash, if any, being classified with cash and cash equivalents in our consolidated statement of cash flows. In May 2017, the FASB issued ASU 2017-09, "Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting" to clarify when to account for a change to the terms or conditions of a share-based payment award as a modification. We adopted this ASU during the three month period ended March 31, 2018, with no impact to our consolidated financial statements. Standards not yet adopted In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" to increase comparability and transparency among different organizations. Organizations are required to recognize right-of-use lease assets and lease liabilities in the balance sheet related to the right to use the underlying asset for the lease term. In addition, through improved disclosure requirements, ASC 842 will enable users of financial statements to further understand the amount, timing, and uncertainty of cash flows arising from leases. ASC 842 is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods. In July 2018, the FASB provided an additional transition method allowing for the recognition of a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption rather than in the earliest period presented. We plan to adopt ASC 842 effective January 1, 2019 using the optional transition method. Comparative information will continue to be reported under the accounting standards that were in effect for those periods. Based on our preliminary assessment of our portfolio of leases where we are the lessee, upon adoption of ASC 842, we will record an amount for right-to-use assets and lease obligations ranging from approximately $60.0 million to $70.0 million pursuant to the new requirements. The July 2018 amendment also provided lessors with a practical expedient to not separate nonlease components from the associated lease component and, instead, to account for those components as a single component if the nonlease components otherwise would be accounted for under ASC 606 and certain conditions are met. The amendment also provided clarification on whether ASC 842 or ASC 606 is applicable to the combined component based on determination of the predominant component. An entity that elects the lessor practical expedient also should provide certain disclosures. We evaluated the impact of the July 2018 amendment on our compression services contracts and have concluded that the services nonlease component is predominant, which results in the ongoing recognition following ASC 606. 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. ASU 2016-13 has an effective date of the first quarter of fiscal 2022. We are currently assessing the potential effects of these changes to our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, "Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment," which simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. The ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods, with early adoption permitted, under a prospective adoption. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, “Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting” to align the measurement and classification guidance for share-based payments to nonemployees with the guidance currently applied to employees, with certain exceptions. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods, with early adoption permitted. We are currently assessing the potential effects of these changes to our consolidated financial statements and do not expect the adoption of this standard to have a material impact on our consolidated financial statements. |
Inventories Inventories (Notes) |
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Inventory Disclosure | Inventories are stated at the lower of cost or net realizable value. Except for work in progress inventory, cost is determined using the weighted average method. The cost of work in progress is determined using the specific identification method. INVENTORIES Components of inventories are as follows:
Finished goods inventories include newly manufactured clear brine fluids as well as used brines that are repurchased from certain customers for recycling. Work in progress inventory consists primarily of new compressor packages located in the CCLP fabrication facility in Midland, Texas. |
Acquisitions and Dispositions |
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Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | ACQUISITIONS AND DISPOSITIONS Acquisition of SwiftWater Energy Services On February 28, 2018, pursuant to a purchase agreement dated February 13, 2018 (the "SwiftWater Purchase Agreement"), we purchased all of the equity interests in SwiftWater Energy Services, LLC ("SwiftWater"), which is engaged in the business of providing water management and water solutions to oil and gas operators in the Permian Basin market of Texas. Strategically, the acquisition of SwiftWater enhances our position as one of the leading integrated water management companies, providing water transfer, storage, and treatment services, along with proprietary automation technology and numerous other water-related services. Under the terms of the SwiftWater Purchase Agreement, consideration of $42.0 million of cash, subject to a working capital adjustment, and 7,772,021 shares of our common stock (valued at $28.2 million) were paid at closing. Subsequent to closing, in August 2018, a working capital adjustment of approximately $1.0 million was paid. The sellers also have the right to receive contingent consideration payments, in an aggregate amount of up to $15.0 million, calculated on EBITDA and revenue (each as defined in the SwiftWater Purchase Agreement) of the combined water management business of SwiftWater and our pre-existing operations in the Permian Basin in respect of the period from January 1, 2018 through December 31, 2019. The contingent consideration may be paid in cash or shares of our common stock, at our election. As of the February 28, 2018 closing date, our allocation of the SwiftWater purchase price is as follows (in thousands):
The above allocation of the purchase price to the SwiftWater net tangible assets and liabilities considers approximately $7.6 million of the initial estimated fair value for the liabilities associated with the contingent purchase price consideration. The initial fair value of the obligation to pay the contingent purchase price consideration was calculated based on the anticipated EBITDA and revenue as of the closing date for the operations of SwiftWater and our pre-existing operations in the Permian Basin and could have increased (to $15.0 million) or decreased (to $0) depending on the actual earnings from these operations. Increases or decreases in the value of the anticipated contingent purchase price consideration liability due to changes in the amounts paid or expected to be paid are charged or credited to earnings in the period in which such changes occur. During the period from the closing date to December 31, 2018, the estimated fair value for the liabilities associated with the contingent purchase price consideration increased to $11.0 million, resulting in $3.4 million being charged to other (income) expense, net, during the year ended December 31, 2018. A $10.0 million portion of the liability for contingent consideration was based on EBITDA and revenue during 2018 and is classified as Accrued Liabilities as of December 31, 2018 in the accompanying consolidated balance sheet. The allocation of the purchase price to the SwiftWater net tangible assets and liabilities and identifiable intangible assets, as well as the initial estimated fair value for the liabilities associated with the contingent purchase price consideration, as of February 28, 2018, is final and adjustments to the purchase price allocation have been reflected in the accompanying consolidated balance sheets as of December 31, 2018. The allocation of purchase price includes approximately $15.6 million of deductible goodwill allocated to our Water & Flowback Services segment, and is supported by the strategic benefits discussed above and expected to be generated from the acquisition. The acquired property and equipment is stated at fair value, and depreciation on the acquired property and equipment is computed using the straight-line method over the estimated useful lives of each asset. Machinery and equipment is depreciated using useful lives of 3 to 15 and automobiles and trucks are depreciated using useful lives of 3 to 4 years. The acquired intangible assets include $3.3 million for the trademark/tradename, $37.2 million for customer relationships, and $1.5 million of other intangible assets that are stated at estimated fair value and are amortized on a straight-line basis over their estimated useful lives, ranging from 5 to 16 years. These identified intangible assets are recorded net of $2.5 million of accumulated amortization as of December 31, 2018. Subsequent to the February 28, 2018 acquisition closing date, we have continued to integrate the acquired SwiftWater operations into our existing Water & Flowback Services Division in the Permian Basin in order to better serve our customers through seamless combined service offerings. With the addition of SwiftWater services, such as water treatment, we are now able to offer integrated water management services to both TETRA and SwiftWater customers that would have not been possible prior to the acquisition. Moreover, services performed for certain pre-acquisition SwiftWater customers have utilized TETRA employees and equipment. Similarly, certain pre-SwiftWater acquisition TETRA customers have utilized SwiftWater employees, equipment, and services. We have also added to SwiftWater's fleet of operating equipment through additional capital expenditures. As a result of the combined operations, the distinction of the revenue originating from SwiftWater versus TETRA is a subjective estimate. Due to these limitations, we have considered the $95.6 million of revenues for services performed for pre-acquisition SwiftWater customers subsequent to the closing on February 28, 2018 as the estimate of the impact from the SwiftWater acquisition on our consolidated revenues for the year ended December 31, 2018. As a result of our focus since the date of the acquisition on integrating and managing SwiftWater services with our pre-existing operations in the Permian Basin, quantifying the financial impact on our consolidated earnings of the operations specific to SwiftWater is impracticable. SwiftWater acquisition-related costs of approximately $0.4 million were incurred during the year ended December 31, 2018, consisting of external legal fees, transaction consulting fees, and due diligence costs. These costs have been recognized in general and administrative expenses in the consolidated statement of operations. Acquisition of JRGO Energy Services LLC On December 6, 2018, we purchased JRGO Energy Services LLC (“JRGO”) for a cash purchase price of $7.6 million paid at closing, subject to a working capital adjustment. In addition, contingent consideration of up to $1.5 million is to be paid during 2019, based on JRGO's performance during the fourth quarter of 2018. JRGO specializes in delivering comprehensive water management services for oil and gas operators, as well as municipal, state and federal organizations. JRGO will be integrated into our Water & Flowback Services Division. The acquisition of JRGO broadens our footprint in the Appalachian region and is expected to provide our customers an enhanced, more efficient, diverse, and strategically positioned portfolio of integrated water management services in the Marcellus and Utica basins. As of December 31, 2018, subject to completion of management's review, our preliminary allocation of the JRGO purchase price is as follows (in thousands):
Pro Forma Financial Information (Unaudited) The pro forma information presented below has been prepared to give effect to the SwiftWater acquisition as if the transaction had occurred at the beginning of the periods presented. The impact of the acquisition of JRGO is not significant and is therefore not included in the pro forma information. The pro forma information includes the impact from the allocation of the SwiftWater acquisition purchase price on depreciation and amortization. The pro forma information also excludes the SwiftWater acquisition-related costs charged to earnings during the 2018 period. The pro forma information is presented for illustrative purposes only and is based on estimates and assumptions we deemed appropriate. The following pro forma information is not necessarily indicative of the historical results that would have been achieved if the SwiftWater acquisition transaction had occurred in the past, and our operating results may have been different from those reflected in the pro forma information below. Therefore, the pro forma information should not be relied upon as an indication of the operating results that we would have achieved if the SwiftWater transaction had occurred at the beginning of the periods presented or the future results that we will achieve after the transaction.
Sale of Offshore Division On March 1, 2018, we closed a series of related transactions that resulted in the disposition of our Offshore Division. Pursuant to an Asset Purchase and Sale Agreement (the "Maritech Asset Purchase Agreement") with Orinoco Natural Resources, LLC ("Orinoco"), Orinoco purchased certain remaining offshore oil, gas and mineral leases and related assets of Maritech (the "Maritech Properties"). Immediately thereafter, we closed the transactions contemplated by a Membership Interest Purchase and Sale Agreement (the "Maritech Equity Purchase Agreement") with Orinoco, whereby Orinoco purchased all of the equity interests of Maritech (the "Maritech Equity Interests"). Immediately thereafter, we closed the transactions contemplated by an Equity Interest Purchase Agreement (the "Offshore Services Purchase Agreement") with Epic Offshore Specialty, LLC, an affiliate of Orinoco ("Epic Offshore"), whereby Epic Offshore (the "Offshore Services Sale") purchased all of the equity interests in the wholly owned subsidiaries that comprised our Offshore Services segment operations (the "Offshore Services Equity Interests"). Under the terms of the Maritech Asset Purchase Agreement, the Maritech Equity Purchase Agreement, and the Offshore Services Purchase Agreement, the consideration delivered by Orinoco and Epic Offshore for the Maritech Properties, the Maritech Equity Interests and the Offshore Services Equity Interests consisted of (i) the assumption by Orinoco of substantially all of the liabilities and obligations relating to the ownership, operation and condition of the Maritech Properties and the provision of certain indemnities by Orinoco to us under the Maritech Asset Purchase Agreement, (ii) the assumption by Orinoco of substantially all of the liabilities of Maritech and the provision of certain indemnities by Orinoco under the Maritech Equity Purchase Agreement, (iii) the assumption by Epic Offshore of substantially all of the liabilities of the Offshore Services Equity Interests relating to the periods following the closing of the Offshore Services Sale and the provision of certain indemnities by Epic Offshore under the Offshore Services Purchase Agreement, (iv) cash in the amount $3.1 million (v) a promissory note in the original principal amount of $7.5 million payable by Epic Offshore to us in full, together with interest at a rate of 1.52% per annum, on December 31, 2019, (vi) performance by Orinoco under a Bonding Agreement executed in connection with the Maritech Asset Purchase Agreement and the Maritech Equity Purchase Agreement whereby Orinoco provided at closing non-revocable performance bonds in an amount equal to $46.8 million to cover the performance by Orinoco and Maritech of the asset retirement obligations of Maritech, and (vii) the delivery of a personal guaranty agreement from Thomas M. Clarke and Ana M. Clarke guaranteeing the payment obligations of Orinoco under the Bonding Agreement (collectively, the "Transaction Consideration"). Pursuant to the Bonding Agreement, Orinoco is required to replace, within 90 days following the closing, the initial bonds delivered at closing with non-revocable performance bonds, meeting certain requirements, in the aggregate sum of $47.0 million. Orinoco has not delivered such replacement bonds and we are seeking to enforce the terms of the Bonding Agreement. The non-revocable performance bonds delivered at the closing remain in effect. As a result of these transactions, we have effectively exited the businesses of our Offshore Services and Maritech segments, and these operations are reflected as discontinued operations in our consolidated financial statements. See Note F - "Discontinued Operations" for further discussion. Our consolidated pre-tax results of operations for the year period ending December 31, 2018 included a loss on the disposal of our Offshore Division of $34.1 million, net of tax, including transaction costs of $1.4 million. |
Leases |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | LEASES We lease some of our transportation equipment, office space, warehouse space, operating locations, and machinery and equipment. Certain facility storage tanks being constructed are leased pursuant to a ten year term, which is classified as a capital lease. Capitalized costs pursuant to a capital lease are depreciated over the term of the lease. The office, warehouse, and operating location leases, which vary from one to thirty-five year terms that expire at various dates through 2034, with some leases having renewal clauses of various periods, are classified as operating leases. Transportation equipment leases expire at various dates through 2024 and are also classified as operating leases. The office, warehouse, and operating location leases, and machinery and equipment leases generally require us to pay all maintenance and insurance costs. Our corporate headquarters facility located in The Woodlands, Texas, was sold on December 31, 2012, pursuant to a sale and leaseback transaction. Pursuant to the transaction, we sold the building, parking garage, and land to an unaffiliated third party for a sale price of $43.8 million, before transaction costs and other deductions. As a condition to the consummation of the purchase and sale of the facility, the parties entered into a lease agreement for the facility having an initial lease term of 15 years, which is classified as an operating lease. Under the terms of the lease agreement, we have the ability to extend the lease for five successive five year periods at base rental rates to be determined at the time of each extension. We are responsible for the payment of all related taxes, utilities, insurance, and certain maintenance and improvement costs. Pursuant to sale and leaseback accounting, approximately $5.0 million in deferral of the gain on the sale of the facility remains at December 31, 2018, to be recognized on a straight line basis over the initial lease term. Future minimum lease payments by year and in the aggregate, under non-cancelable capital and operating leases with terms in excess of one year, and including the headquarters facility lease discussed above, consist of the following at December 31, 2018:
Rental expense for all operating leases was $40.9 million, $27.1 million, and $24.8 million for the years ended December 31, 2018, 2017, and 2016, respectively. At December 31, 2018, future minimum rental receipts under a non-cancelable sublease totaled $6.4 million. |
Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | INCOME TAXES On December 22, 2017, the United States enacted significant changes to the U.S. tax law following the passage and signing of H.R.1, “An Act to Provide the Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018” (the “Act”) (previously known as “The Tax Cuts and Jobs Act”). We applied the guidance in Staff Accounting Bulletin 118 (“SAB 118”) when accounting for the enactment-date effects of the Act. During the 4th quarter of 2017, we recorded our best estimate of the impact of the Act in our year-end income tax provision in accordance with our understanding of the Act and guidance available and as a result recorded income tax expense of $54.1 million. This income tax expense was fully offset by a decrease in the valuation allowance previously recorded on our deferred tax assets. As such, the Act resulted in no net tax expense. As of December 31, 2018, we completed our accounting analysis for all of the enactment-date income tax effects and reduced our December 31, 2017 provisional amount by $2.5 million. The decrease in the income tax expense was fully offset by an increase in the valuation allowance. As such, the Act resulted in no net tax expense. In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income ("GILTI") provisions of the Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance indicates that either accounting for deferred taxes related to GILTI inclusions or to treat any taxes on GILTI inclusions as period costs are both acceptable methods subject to an accounting policy election. As of December 31, 2017, we had not yet completed our assessment or elected an accounting policy to either recognize deferred taxes for basis differences expected to reverse as GILTI or to record GILTI as period costs if and when incurred. After further consideration in 2018, we have elected to account for GILTI as a period cost in the year the tax is incurred. The income tax provision (benefit) attributable to continuing operations for the years ended December 31, 2018, 2017, and 2016, consists of the following:
A reconciliation of the provision (benefit) for income taxes attributable to continuing operations, computed by applying the federal statutory rate to income (loss) before income taxes and the reported income taxes, is as follows:
Income (loss) before taxes and discontinued operations includes the following components:
A reconciliation of the beginning and ending amount of our gross unrecognized tax benefit is as follows:
We recognize interest and penalties related to uncertain tax positions in income tax expense. During the years ended December 31, 2018, 2017, and 2016, we recognized $(0.2) million, $(0.3) million, and $(0.2) million, respectively, of interest and penalties to the provision for income tax. As of December 31, 2018 and 2017, we had $0.5 million and $0.7 million, respectively, of accrued potential interest and penalties associated with these uncertain tax positions. The total amount of unrecognized tax benefits that would affect our effective tax rate if recognized is $0.8 million and $1.1 million as of December 31, 2018 and 2017, respectively. We do not expect a significant change to the unrecognized tax benefits during the next twelve months. We file tax returns in the U.S. and in various state, local, and non-U.S. jurisdictions. The following table summarizes the earliest tax years that remain subject to examination by taxing authorities in any major jurisdiction in which we operate:
We use the liability method for reporting income taxes, under which current and deferred tax assets and liabilities are recorded in accordance with enacted tax laws and rates. Under this method, at the end of each period, the amounts of deferred tax assets and liabilities are determined using the tax rate expected to be in effect when the taxes are actually paid or recovered. We establish a valuation allowance to reduce the deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. We considered all available evidence, both positive and negative, in determining whether, based on the weight of that evidence, a valuation allowance is needed for some portion or all of our deferred tax assets. In determining the need for a valuation allowance on our deferred tax assets we placed greater weight on recent and objectively verifiable current information, as compared to more forward-looking information that is used in valuating other assets on the balance sheet. While we have considered taxable income in prior carryback years, future reversals of existing taxable temporary differences, future taxable income, and tax planning strategies in assessing the need for the valuation allowance, there can be no guarantee that we will be able to realize all of our deferred tax assets. Significant components of our deferred tax assets and liabilities as of December 31, 2018 and 2017 are as follows:
We believe that it is more likely than not we will not realize all the tax benefits of the deferred tax assets within the allowable carryforward period. Therefore, an appropriate valuation allowance has been provided. The valuation allowance as of December 31, 2018 and 2017 primarily relates to federal deferred tax assets. The increase (decrease) in the valuation allowance during the years ended December 31, 2018, 2017, and 2016, were $(1.4) million, $(54.8) million, and $58.6 million, respectively. At December 31, 2018, we had federal, state, and foreign net operating loss carryforwards/carrybacks equal to approximately $75.3 million, $11.1 million, and $14.5 million, respectively. In those countries and states in which net operating losses are subject to an expiration period, our loss carryforwards, if not utilized, will expire at various dates from 2019 through 2037. At December 31, 2018, we had $2.9 million of foreign tax credits available to offset future payment of federal income taxes. The foreign tax credits expire in varying amounts from 2020 through 2027. We have amended our 2012 - 2015 U.S. federal income tax returns to take a foreign tax deduction instead of a credit. This resulted in a decrease in our foreign tax credit carryforward of $16.2 million. The net impact to our deferred tax assets was a decrease of $12.8 million, offset by a corresponding increase in our valuation allowance. As such, the amended income tax returns resulted in no net tax expense. Utilization of the net operating loss and credit carryforwards may be subject to a significant annual limitation due to ownership changes that have occurred previously or could occur in the future provided by Section 382 of the Internal Revenue Code. |
Accrued Liabilities |
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Accrued Liabilities | ACCRUED LIABILITIES Accrued liabilities are detailed as follows:
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Long-Term Debt and Other Borrowings |
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Long-Term Debt and Other Borrowings | LONG-TERM DEBT AND OTHER BORROWINGS We believe our capital structure, excluding CCLP, ("TETRA") and CCLP's capital structure should be considered separately, as there are no cross default provisions, cross collateralization provisions, or cross guarantees between CCLP's debt and TETRA's debt. Consolidated long-term debt, net of associated deferred financing costs, consists of the following:
Scheduled maturities for the next five years and thereafter are as follows:
As of December 31, 2018, TETRA had no outstanding balance and had $6.1 million in letters of credit against its ABL Credit Agreement (as defined below). As of December 31, 2018, subject to compliance with the covenants, borrowing base, and other provisions of the agreement that may limit borrowings, TETRA had an availability of $47.6 million under this agreement. Because there was no outstanding balance on this ABL Credit Agreement, associated deferred financing costs of $1.6 million as of December 31, 2018, were classified as other long-term assets on the accompanying consolidated balance sheet. Because there was no balance outstanding under the CCLP Credit Agreement (as defined below) as of December 31, 2018, associated deferred financing costs of $1.1 million as of December 31, 2018, were classified as other long-term assets on the accompanying consolidated balance sheet. As of December 31, 2018, and subject to compliance with the covenants, borrowing base, and other provisions of the agreements that may limit borrowings under the CCLP Credit Agreement, CCLP had availability of $27.1 million. As described below, TETRA and CCLP are both in compliance with all covenants of their respective credit and senior note agreements as of December 31, 2018. TETRA Long-Term Debt Asset-Based Credit Agreement. On September 10, 2018, TETRA, as borrower, and certain of its subsidiaries, entered into an asset-based lending credit agreement (the “ABL Credit Agreement”) with a syndicate of lenders, including JPMorgan Chase Bank, N.A., as administrative agent (collectively, the "ABL Lenders"). The ABL Credit Agreement provides for a senior secured revolving credit facility of up to $100 million, subject to a borrowing base to be determined by reference to the value of inventory and accounts receivable, and includes a sublimit of $20.0 million for letters of credit and a swingline loan sublimit of $10.0 million. Borrowings under the ABL Credit Agreement bear interest at a rate per annum equal to, at the option of TETRA, either (i) London Interbank Offering Rate (“LIBOR”) plus a margin based upon a fixed charge coverage ratio or (ii) a base rate plus a margin based on a fixed charge coverage ratio. The base rate is determined by reference to the highest of (a) the prime rate of interest as announced from time to time by JPMorgan Chase Bank, N.A. (b) the Federal Funds Effective Rate (as defined in the ABL Credit Agreement) plus 0.5% per annum and (c) LIBOR (adjusted to reflect any required bank reserves) for a one-month period on such day plus 1.0% per annum. Borrowings outstanding have an applicable margin ranging from 1.75% to 2.25% per annum for LIBOR-based loans and 0.75% to 1.25% per annum for base-rate loans, based upon the applicable fixed charge coverage ratio. In addition to paying interest on the outstanding principal under the ABL Credit Agreement, TETRA is required to pay a commitment fee in respect of the unutilized commitments at an applicable rate ranging from 0.375% to 0.5% per annum, paid monthly in arrears based on utilization of the commitments under the ABL Credit Agreement. TETRA is also required to pay a customary letter of credit fee equal to the applicable margin on LIBOR-based loans and fronting fees. The revolving loans under the ABL Credit Agreement may be voluntarily prepaid, in whole or in part, without premium or penalty, subject to applicable breakage fees. The maturity date of the ABL Credit Agreement is September 10, 2023. The ABL Credit Agreement contains certain affirmative and negative covenants, including covenants that restrict the ability of TETRA and certain of its subsidiaries to take certain actions including, among other things and subject to certain significant exceptions, incurring debt, granting liens, engaging in mergers and other fundamental changes, making investments, entering into or amending transactions with affiliates, paying dividends and making other restricted payments, prepaying other indebtedness, and selling assets. The ABL Credit Agreement also contains a provision that may require a fixed charge coverage ratio (as defined in the ABL Credit Agreement) of not less than 1.00 to 1.00 in the event that certain conditions associated with outstanding borrowings and cash availability occur. As of December 31, 2018, such conditions have not occurred. All obligations under the ABL Credit Agreement and the guarantees of those obligations are secured, subject to certain exceptions, by a security interest for the benefit of the ABL Lenders on substantially all of the personal property of TETRA and certain subsidiaries of TETRA, the equity interests in certain domestic subsidiaries, including CCLP, and a maximum of 65% of the equity interests in certain foreign subsidiaries. The ABL Credit Agreement includes customary events of default including non-payment of principal, interest or fees, violation of covenants, inaccuracy of representations or warranties, cross-default to other material indebtedness, bankruptcy and insolvency events, invalidity or impairment of security interests or invalidity of loan documents, certain ERISA events, unsatisfied or unstayed judgments, and any change of control. Proceeds of loans under the ABL Credit Agreement were used to pay certain debt of TETRA existing on the effective date of the ABL Credit Agreement and may be used for working capital needs, capital expenditures, and other general corporate purposes. The ABL Credit Agreement replaced TETRA's previous Bank Credit Agreement, as defined and discussed in further detail below. In connection with the execution of the ABL Credit Agreement, $1.3 million of financing costs were incurred, and deferred against the carrying value of the amount outstanding, if any. Term Credit Agreement On September 10, 2018, TETRA, as borrower, entered into a credit agreement (the “Term Credit Agreement”) with a syndicate of lenders (collectively, the “Term Lenders”) and Wilmington Trust, National Association, as administrative agent. The Term Credit Agreement provides an initial loan in the amount of $200 million (the “Initial Term Loan”) and the availability of additional loans, subject to the terms of the Term Credit Agreement, up to an aggregate amount of $75 million for certain acquisitions (the “Additional Term Loans,” and together with the Initial Term Loan, the “Term Loan”). Borrowings under the Term Credit Agreement bear interest at a rate per annum equal to, at the option of TETRA, either (i) LIBOR plus a margin of 6.25% per annum or (ii) a base rate plus a margin of 5.25% per annum. In addition to paying interest on the outstanding principal under the Term Credit Agreement, TETRA is required to pay a commitment fee in respect of the unutilized commitments at the rate of 1.0% per annum, paid quarterly in arrears based on utilization of the commitments under the Term Credit Agreement. The Term Credit Agreement contains certain affirmative and negative covenants, including covenants that restrict the ability of TETRA and certain of its subsidiaries to take certain actions including, among other things and subject to certain significant exceptions, incurring debt, granting liens, engaging in mergers and other fundamental changes, making investments, entering into or amending transactions with affiliates, paying dividends and making other restricted payments, prepaying other indebtedness, and selling assets. The Term Credit Agreement also contains a requirement that the borrowers comply at the end of each fiscal quarter with a minimum Interest Coverage Ratio (as defined in the Term Credit Agreement) of 1.00 to 1.00. As of December 31, 2018, TETRA is in compliance with the Interest Coverage Ratio requirement. All obligations under the Term Credit Agreement and the guarantees of those obligations are secured, subject to certain exceptions, by a security interest for the benefit of the Term Lenders on substantially all of the personal property of TETRA and certain of its subsidiaries, the equity interests in certain domestic subsidiaries, including CCLP, and a maximum of 65% of the equity interests in certain foreign subsidiaries. The Term Credit Agreement includes customary events of default including non-payment of principal, interest or fees, violation of covenants, inaccuracy of representations or warranties, cross-default to other material indebtedness, bankruptcy and insolvency events, invalidity or impairment of security interests or invalidity of loan documents, certain ERISA events, unsatisfied or unstayed judgments and any change of control. Proceeds from the Initial Term Loan, net of a 2% discount in the amount of $4.0 million, were used to prepay the outstanding indebtedness under the $125.0 million 11% Senior Secured Notes due November 5, 2022 (the “11% Senior Notes”) and indebtedness of TETRA under its then existing bank credit agreement. Proceeds of any Additional Term Loans may be used for acquisitions, subject to the terms of the Term Credit Agreement. The loans under the Term Credit Agreement may be voluntarily prepaid, in whole or in part, subject to applicable breakage fees. Any prepayment prior to the one-year anniversary is subject to a “make-whole” payment as set forth in the Term Credit Agreement. Thereafter, any prepayment during the period commencing after the one-year anniversary and ending on the two-year anniversary will have a premium of 3.0% and during the period commencing after the two-year anniversary and ending on the three-year anniversary, a premium of 1.0%. The maturity date of the Term Credit Agreement is September 10, 2025. There is no prepayment premium required after the third anniversary. In connection with the issuance of the Term Credit Agreement, TETRA incurred $1.0 million of financing costs, $0.4 million of which was charged to other (income) expense, net during the three months ended September 30, 2018 and $0.6 million of lender fees were deferred against the carrying value of the amount outstanding. These deferred financing costs, along with the 2% discount, are amortized over the term of the Term Credit Agreement. Bank Credit Agreement On September 10, 2018, in connection with the closing of the above-described loans, TETRA repaid all outstanding borrowings and obligations under its then existing bank credit agreement dated as of January 27, 2006, as previously amended with a portion of the net proceeds from the above-described loans, and terminated the then existing bank credit agreement. As a result of the termination of the then existing bank credit agreement, during the three month period ended September 30, 2018, associated unamortized deferred financing costs of $0.5 million were charged to other (income) expense, net, and $0.4 million were deferred and will be amortized over the term of the ABL Credit Agreement. Certain ABL Lenders were lenders under the existing bank credit agreement and, accordingly, received a portion of the proceeds from the above-described loans in connection with the repayment of the outstanding borrowings under the bank credit agreement. 11% Senior Note On September 10, 2018, in connection with the closing of the above-described loans, TETRA repaid all outstanding indebtedness under the 11% Senior Note with a portion of the proceeds from the above-described loans, terminated its obligations under the 11% Senior Note and related note purchase agreement. Affiliates of certain Term Lenders were holders of the 11% Senior Note and, accordingly, received a portion of the proceeds from the Term Credit Agreement in connection with the repayment of the outstanding indebtedness under the 11% Senior Note. In connection with the early termination of the 11% Senior Note, TETRA paid a $7.0 million "make-whole" prepayment fee in accordance with the terms of the 11% Senior Note. This prepayment fee, along with $3.4 million of unamortized discount and $2.9 million of unamortized deferred financing costs associated with the 11% Senior Note, has been deferred and is being amortized over the term of the new Term Credit Agreement. CCLP Long-Term Debt CCLP Bank Credit Facility. On March 22, 2018, in connection with the closing of the CCLP Offering (as defined below), CCLP repaid all outstanding borrowings and obligations under its then existing CCLP Prior Credit Facility with a portion of the net proceeds from the CCLP Offering, and terminated the CCLP Prior Credit Facility. As a result of the termination of the CCLP Prior Credit Facility, associated unamortized deferred financing costs of $3.5 million were charged to other (income) expense, net, during the three month period ended March 31, 2018. On June 29, 2018, CCLP and two of its wholly owned subsidiaries (collectively the "CCLP Borrowers"), and certain of its wholly owned subsidiaries named therein as guarantors (the "CCLP Credit Agreement Guarantors"), entered into a Loan and Security Agreement (the "CCLP Credit Agreement") with the lenders thereto (the "Lenders"), and Bank of America, N.A., in its capacity as administrative agent, collateral agent, letter of credit issuer, and swing line lender. All of the CCLP Borrowers' obligations under the CCLP Credit Agreement are guaranteed by certain of their existing and future domestic subsidiaries. The CCLP Credit Agreement includes a maximum credit commitment of $50.0 million which is available for loans, letters of credit with a sublimit of $25.0 million and swingline loans with a sublimit of $5.0 million, subject to a borrowing base to be determined by reference to the value of CCLP’s and any other borrowers’ accounts receivable. Such maximum credit commitment may be increased by $25.0 million in accordance with the terms and conditions of the CCLP Credit Agreement. The CCLP Borrowers may borrow funds under the CCLP Credit Agreement to pay fees and expenses related to the CCLP Credit Agreement and for the Borrower's ongoing working capital needs and for general business purposes. The revolving loans under the CCLP Credit Agreement may be voluntarily prepaid, in whole or in part, without premium or penalty, subject to breakage or similar costs. The maturity date of the CCLP Credit Agreement is June 29, 2023. As of December 31, 2018, no balance was outstanding under the CCLP Credit Agreement. Borrowings under the CCLP Credit Agreement will bear interest at a rate per annum equal to, at the option of the CCLP Borrowers, either (i) the London Interbank Offered Rate (“LIBOR”) plus a margin based on average daily excess availability or (ii) a base rate plus a margin based on average daily excess availability LIBOR-based loans will have an applicable margin of 2.00% per annum and base-rate loans will have an applicable margin of 1.00% per annum; thereafter, the applicable margin will range between 1.75% and 2.25% per annum for LIBOR-based loans and 0.75% and 1.25% per annum for base-rate loans, according to average daily excess availability when financial statements are delivered. In addition to paying interest on outstanding principal under the CCLP Credit Agreement, the CCLP Borrowers are required to pay a commitment fee in respect of the unutilized commitments thereunder, initially at the rate of 0.375% per annum until the delivery of the financial statements for the fiscal quarter ending December 31, 2018 and thereafter at the applicable rate ranging from 0.250% to 0.375% per annum, paid quarterly in arrears based on utilization of the commitments under the CCLP Credit Agreement. The CCLP Borrowers are also required to pay a customary letter of credit fee equal to the applicable margin on revolving credit LIBOR loans and fronting fees. The CCLP Credit Agreement contains certain affirmative and negative covenants, including covenants that restrict the ability of the CCLP Borrowers, the CCLP Credit Agreement Guarantors and certain of their subsidiaries to take certain actions including, among other things and subject to certain significant exceptions, incurring debt, granting liens, making investments, entering into or amending transactions with affiliates, paying dividends and selling assets. The CCLP Credit Agreement also contains a provision that requires compliance with a fixed charge coverage ratio (as defined in the CCLP Credit Agreement) of not less than 1.0 to 1.0 in the event that certain conditions associated with outstanding borrowings and cash availability occur. As of December 31, 2018, such conditions have not occurred. All obligations under the CCLP Credit Agreement and the guarantees of those obligations are secured, subject to certain exceptions, by a first priority security interest for the benefit of the Lenders in the CCLP Borrowers’ and the CCLP Credit Agreement Guarantors’ present and future accounts receivable, inventory and related assets and proceeds of the foregoing. CCLP Senior Notes The obligations under the CCLP 7.25% Senior Notes (the "CCLP Senior Notes") are jointly and severally and fully and unconditionally, guaranteed on a senior unsecured basis by each of CCLP’s domestic restricted subsidiaries (other than CSI Compressco Finance) that guarantee CCLP’s other indebtedness (the "Guarantors" and together with the Issuers, the "Obligors"). The CCLP Senior Notes and the subsidiary guarantees thereof (together, the "CCLP Senior Note Securities") were issued pursuant to an indenture described below. As of December 31, 2018, $295.9 million in aggregate principal amount of the 7.25% Senior Notes are outstanding. The Obligors issued the CCLP Senior Note Securities pursuant to the Indenture dated as of August 4, 2014 (the "CCLP Senior Notes Indenture") by and among the Obligors and U.S. Bank National Association, as trustee (the "Trustee"). The CCLP Senior Notes accrue interest at a rate of 7.25% per annum. Interest on the CCLP Senior Notes is payable semi-annually in arrears on February 15 and August 15 of each year. The CCLP Senior Notes are scheduled to mature on August 15, 2022. The CCLP Senior Notes Indenture contains customary covenants restricting CCLP’s ability and the ability of its restricted subsidiaries to: (i) pay dividends and make certain distributions, investments and other restricted payments; (ii) incur additional indebtedness or issue certain preferred shares; (iii) create certain liens; (iv) sell assets; (v) merge, consolidate, sell or otherwise dispose of all or substantially all of its assets; (vi) enter into transactions with affiliates; and (vii) designate its subsidiaries as unrestricted subsidiaries under the CCLP Senior Notes Indenture. The CCLP Senior Notes Indenture also contains customary events of default and acceleration provisions relating to such events of default, which provide that upon an event of default under the CCLP Senior Notes Indenture, the Trustee or the holders of at least 25% in aggregate principal amount of the CCLP Senior Notes then outstanding may declare all amounts owing under the CCLP Senior Notes to be due and payable. CCLP is in compliance with all covenants of the CCLP Senior Note Purchase Agreement as of December 31, 2018. During September 2016 and October 2016, we repurchased on the open market and retired $54.1 million aggregate principal amount of 7.25% Senior Notes for a purchase price of $50.9 million, at an average repurchase price of 94% of the principal amount of the 7.25% Senior Notes, plus accrued interest, utilizing a portion of the net proceeds of the sale of the CCLP Preferred Units. Following the repurchase of these 7.25% Senior Notes, $295.9 million aggregate principal amount of 7.25% Senior Notes remain outstanding. In connection with the repurchase of these 7.25% Senior Notes, $1.4 million of early extinguishment net gain was credited to other (income) expense, net during the year ended December 31, 2016, representing the difference between the repurchase price and the $54.1 million aggregate principal amount of the 7.25% Senior Notes repurchased, and $1.8 million of remaining unamortized deferred finance costs and discounts associated with the repurchased 7.25% Senior Notes. CCLP Senior Secured Notes On March 8, 2018, CCLP, and its wholly owned subsidiary, CSI Compressco Finance Inc. (together with CCLP, the "CCLP Issuers") entered into the Purchase Agreement (the “Purchase Agreement”) with Merrill Lynch, Pierce, Fenner & Smith Incorporated as representative of the initial purchasers listed in Schedule A thereto (collectively, the “Initial Purchasers”), pursuant to which the CCLP Issuers agreed to issue and sell to the Initial Purchasers $350 million aggregate principal amount of the CCLP Issuers’ 7.50% Senior Secured First Lien Notes due 2025 (the "CCLP Senior Secured Notes") (the "CCLP Offering") pursuant to an exemption from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"). The CCLP Issuers closed the CCLP Offering on March 22, 2018. The CCLP Senior Secured Notes were issued at par for net proceeds of approximately $342.5 million, after deducting certain financing costs. CCLP used a portion of the net proceeds to repay in full and terminate its existing CCLP Prior Credit Facility and plans to use the remainder for general partnership purposes, including the expansion of its compression fleet. The obligations under the CCLP Senior Secured Notes are jointly and severally, and fully and unconditionally guaranteed on a senior secured basis by each of CCLP's domestic restricted subsidiaries (other than CSI Compressco Finance) that guarantee its indebtedness (the "CCLP Senior Secured Notes Guarantors" and together with CCLP and CSI Compressco Finance Inc, the "CCLP Senior Secured Notes Obligors"). The CCLP Senior Secured Notes and the subsidiary guarantees thereof (together, the "CCLP Senior Secured Notes Securities") were issued pursuant to an indenture described below. The CCLP Senior Secured Notes Securities are secured by a first-priority security interest in substantially all of CCLP Senior Secured Notes Obligors' assets (other than certain excluded assets) (the "Collateral") as collateral security for their obligations under the CCLP Senior Secured Notes Securities, subject to certain permitted encumbrances and exceptions. On the closing date, CCLP entered into an indenture (the "CCLP Senior Secured Notes Indenture") by and among the Obligors and U.S. Bank National Association, as trustee with respect to the Securities. The CCLP Senior Secured Notes accrue interest at a rate of 7.50% per annum. Interest on the CCLP Senior Secured Notes is payable semi-annually in arrears on April 1 and October 1 of each year, beginning October 1, 2018. The CCLP Senior Secured Notes are scheduled to mature on April 1, 2025. During the year ended December 31, 2018, CCLP incurred total financing costs of $7.6 million related to the CCLP Senior Secured Notes. These costs are deferred, netting against the carrying value of the amount outstanding. The CCLP Senior Secured Notes Indenture contains customary covenants restricting CCLP's ability and the ability of its restricted subsidiaries to: (i) pay distributions on, purchase, or redeem CCLP common units or purchase or redeem any subordinated debt; (ii) incur or guarantee additional indebtedness or issue certain kinds of preferred equity securities; (iii) create or incur certain liens securing indebtedness; (iv) sell assets, including dispositions of the Collateral; (v) consolidate, merge, or transfer all or substantially all of CCLP's assets; (vi) enter into transactions with affiliates; and (vii) enter into agreements that restrict distributions or other payments from CCLP's restricted subsidiaries to CCLP. These covenants are subject to a number of important limitations and exceptions, including certain provisions permitting CCLP, subject to the satisfaction of certain conditions, to transfer assets to certain of its unrestricted subsidiaries. Moreover, if the CCLP Senior Secured Notes receive an investment grade rating from at least two rating agencies and no default has occurred and is continuing under the CCLP Senior Secured Notes indenture, many of the restrictive covenants in the CCLP Senior Secured Notes Indenture will be terminated. The CCLP Senior Secured Notes Indenture also contains customary events of default and acceleration provisions relating to events of default, which provide that upon an event of default under the CCLP Senior Secured Notes Indenture, the Trustee or the holders of at least 25% in aggregate principal amount of the then outstanding CCLP Senior Secured Notes may declare all of the CCLP Senior Secured Notes to be due and payable immediately. CCLP is in compliance with all covenants of the CCLP Senior Secured Notes Indenture as of December 31, 2018. On and after April 1, 2021, CCLP may redeem all or a part of the CCLP Senior Secured Notes, from time to time, at the following redemption prices (expressed as a percentage of principal amount), plus accrued and unpaid interest thereon to, but not including, the applicable redemption date, subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date, if redeemed during the 12-month period beginning on April 1 of the years indicated below:
In addition, at any time and from time to time before April 1, 2021, CCLP may, at its option, redeem all or a portion of the CCLP Senior Secured Notes at a redemption price equal to 100% of the principal amount thereof plus the Applicable Premium (as defined in the CCLP Senior Secured Notes Indenture) with respect to the CCLP Senior Secured Notes plus accrued and unpaid interest, if any, to, but not including, the applicable redemption date, subject to the rights of holders of the CCLP Senior Secured Notes on the relevant record date to receive interest due on the relevant interest payment date. Prior to April 1, 2021, CCLP may on one or more occasions redeem up to 35% of the principal amount of the CCLP Senior Secured Notes with an amount of cash not greater than the amount of the net cash proceeds from one or more equity offerings at a redemption price equal to 107.500% of the principal amount of the CCLP Senior Secured Notes to be redeemed, plus accrued and unpaid interest, if any, to, but not including, the date of redemption, subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date, provided that (a) at least 65% of the aggregate principal amount of the CCLP Senior Secured Notes originally issued on the issue date (excluding notes held by CCLP and its subsidiaries) remains outstanding after each such redemption; and (b) the redemption occurs within 180 days after the date of the closing of the equity offering. If CCLP experiences certain kinds of changes of control, each holder of the CCLP Senior Secured Notes will be entitled to require CCLP to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess of $2,000) of that holder’s CCLP Senior Secured Notes pursuant to an offer on the terms set forth in the CCLP Senior Secured Notes Indenture. CCLP will offer to make a cash payment equal to 101% of the aggregate principal amount of the CCLP Senior Secured Notes repurchased plus accrued and unpaid interest, if any, on the CCLP Senior Secured Notes repurchased to the date of repurchase, subject to the rights of holders of the CCLP Senior Secured Notes on the relevant record date to receive interest due on the relevant interest payment date. |
CCLP Series A Preferred (Notes) |
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Dec. 31, 2018 | |
CCLP Series A Preferred Units [Abstract] | |
CCLP Series A Preferred Units [Text Block] | CCLP SERIES A CONVERTIBLE PREFERRED UNITS During 2016, CCLP issued an aggregate of 6,999,126 of CCLP Preferred Units for a cash purchase price of $11.43 per CCLP Preferred Unit (the “Issue Price”), resulting in total 2016 net proceeds to CCLP, after deducting certain offering expenses, of $77.3 million. We purchased 874,891 of the CCLP Preferred Units in the Initial Private Placement at the aggregate Issue Price of $10.0 million. We and the other holders of CCLP Preferred Units (each, a “CCLP Preferred Unitholder”) receive quarterly distributions, which are paid in kind in additional CCLP Preferred Units, equal to an annual rate of 11.00% of the Issue Price ($1.2573 per unit annualized), subject to certain adjustments. The rights of the CCLP Preferred Units include certain anti-dilution adjustments, including adjustments for economic dilution resulting from the issuance of CCLP common units in the future below a set price. Unless otherwise redeemed for cash, a ratable portion of the CCLP Preferred Units has been, and will be, converted into CCLP common units on the eighth day of each month over a period of thirty months that began in March 2017 (each, a “Conversion Date”), subject to certain provisions of the Second Amended and Restated CCLP Partnership Agreement that may delay or accelerate all or a portion of such monthly conversions. On each Conversion Date, a portion of the CCLP Preferred Units will convert into, at CCLP's election, cash or CCLP common units representing limited partner interests in CCLP in an amount equal to, with respect to each CCLP Preferred Unitholder, the number of CCLP Preferred Units held by such CCLP Preferred Unitholder divided by the number of Conversion Dates remaining, subject to adjustment described in the Second Amended and Restated CCLP Partnership Agreement, with the conversion price (the "Conversion Price") determined by the trading prices of the common units over the prior month, among other factors, and as otherwise impacted by the existence of certain conditions related to the CCLP common units. Based on the number of CCLP Preferred Units outstanding as of December 31, 2018, the maximum aggregate number of CCLP common units that could be required to be issued pursuant to the conversion provisions of the CCLP Preferred Units is approximately 15.6 million CCLP common units; however, CCLP may, at its option, pay cash, or a combination of cash and common units, to the CCLP Preferred Unitholders instead of issuing common units on any Conversion Date, subject to certain restrictions as described in the Second Amended and Restated CCLP Partnership Agreement and the CCLP Credit Agreement. On December 20, 2018, CCLP announced that, given the decline in its common unit price, CCLP was reducing its common unit distributions for a period of up to four quarters, beginning with the February 2019 distribution. Beginning with the January 2019 conversion date, CCLP intends to use the approximately $34 million of savings from the reduced distribution to redeem the remaining CCLP Preferred Units for cash and avoid the dilution to CCLP's common unitholders that would occur if the remaining CCLP Preferred Units were converted into CCLP common units. The total number of CCLP Preferred Units outstanding as of December 31, 2018 was 2,732,981, of which we held 343,232. Because the CCLP Preferred Units may be settled using a variable number of CCLP common units, the total fair value of the CCLP Preferred Units of $30.9 million, net of the fair value of the units we purchased of $3.9 million, is classified as long-term liabilities on our consolidated balance sheet in accordance with ASC 480 "Distinguishing Liabilities and Equity." The net fair value of the CCLP Preferred Units as of December 31, 2018 was $27.0 million. Changes in the fair value during each period, resulted in $0.7 million net decrease, $3.0 million net decrease, and $4.4 million net increase in fair value during 2018, 2017, and 2016 respectively, are charged or credited to earnings in the accompanying consolidated statements of operations. Based on the conversion provisions of the CCLP Preferred Units, and using the Conversion Price calculated as of December 31, 2018, the theoretical number of CCLP common units that would be issued if all of the outstanding CCLP Preferred Units were converted into CCLP common units on December 31, 2018 on the same basis as the monthly conversions would be approximately 13.9 million CCLP common units, with an aggregate market value of $32.2 million. A $1 decrease in the Conversion Price would result in the issuance of 1.7 million additional CCLP common units pursuant to these conversion provisions. |
Asset Retirement Obligations |
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Asset Retirement Obligation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Decommissioning and Other Asset Retirement Obligations | SSET RETIREMENT OBLIGATIONS We operate facilities in various U.S. and foreign locations that are used in the manufacture, storage, and sale of our products, inventories, and equipment. These facilities are a combination of owned and leased assets. We are required to take certain actions in connection with the retirement of these assets. The values of our asset retirement obligations for these properties were $12.2 million and $11.7 million as of December 31, 2018 and 2017, respectively. Asset retirement obligations are recorded in accordance with ASC 410, "Asset Retirement and Environmental Obligations," whereby the estimated fair value of a liability for asset retirement obligations is recognized in the period in which it is incurred and in which a reasonable estimate can be made. Such estimates are based on relevant assumptions that we believe are reasonable. We have reviewed our obligations in this regard in detail and estimated the cost of these actions. The associated asset retirement costs are capitalized as part of the carrying amount of these long-lived assets and are depreciated on a straight-line basis over the life of the assets. The changes in the values of our asset retirement obligations during the most recent two year period are as follows:
We review the adequacy of our asset retirement obligation liabilities whenever indicators suggest that the estimated cash flows underlying the liabilities have changed. |
Commitments and Contingencies |
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Dec. 31, 2018 | |
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. On March 18, 2011, we filed a lawsuit in the Circuit Court of Union County, Arkansas, asserting claims of professional negligence, breach of contract and other claims against the engineering firm we hired for engineering design, equipment, procurement, advisory, testing and startup services for our El Dorado, Arkansas chemical production facility. The engineering firm disputed our claims and promptly filed a motion to compel the matter to arbitration. After a lengthy procedural dispute in Arkansas state court, arbitration proceedings were initiated on November 15, 2013. Ultimately, on December 16, 2016, the arbitration panel ruled in our favor, declared us as the prevailing party, and awarded us a total net amount of $12.8 million. We received full payment of the $12.8 million final award on January 5, 2017, and this amount was credited to earnings during the first quarter of 2017. Environmental One of our subsidiaries, TETRA Micronutrients, Inc. (TMI), previously owned and operated a production facility located in Fairbury, Nebraska. TMI is subject to an Administrative Order on Consent issued to American Microtrace, Inc. (n/k/a/ TETRA Micronutrients, Inc.) in the proceeding styled In the Matter of American Microtrace Corporation, EPA I.D. No. NED00610550, Respondent, Docket No. VII-98-H-0016, dated September 25, 1998 (the "Consent Order"), with regard to the Fairbury facility. TMI is liable for ongoing environmental monitoring at the Fairbury facility under the Consent Order; however, the current owner of the Fairbury facility is responsible for costs associated with the closure of that facility. While the outcome cannot be predicted with certainty, management does not consider it reasonably possible that a loss in excess of any amounts accrued has been incurred or is expected to have a material adverse impact on our financial condition, results of operations, or liquidity. 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 December 31, 2018, 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 $104.0 million, including $9.5 million during 2019, $9.5 million during 2020, $9.5 million during 2021, $9.5 million during 2022, $9.5 million during 2023, and $56.5 million thereafter, extending through 2029. Amounts purchased under these agreements for each of the years ended December 31, 2018, 2017, and 2016, was $18.0 million, $16.1 million, and $13.3 million, respectively. Contingencies of Discontinued Operations During 2011, in connection with the sale of a significant majority of Maritech's oil and gas producing properties, the buyers of the properties assumed the associated decommissioning liabilities pursuant to the purchase and sale agreements. To the extent that a buyer of these properties fails to perform the abandonment and decommissioning work required, a previous owner, including Maritech, may be required to perform the abandonment and decommissioning obligation. As the former parent company of Maritech, we also may be responsible for performing these abandonment and decommissioning obligations. In March 2018, we closed the Maritech Asset Purchase Agreement with Orinoco that provided for the purchase by Orinoco of the Maritech Properties. Also in March 2018, we finalized the Maritech Equity Purchase Agreement with Orinoco that provided for the purchase by Orinoco of the Maritech Equity Interests. As discussed in Note E - "Acquisitions and Dispositions," pursuant to the Bonding Agreement, Orinoco is required to replace, within 90 days following the closing, the initial bonds delivered at closing with non-revocable performance bonds, meeting certain requirements, in the aggregate sum of $47.0 million. Orinoco has not delivered such replacement bonds and we are seeking to enforce the terms of the Bonding Agreement. The non-revocable performance bonds delivered at the closing remain in effect. As a result of these transactions, we have effectively exited the businesses of our Offshore Services and Maritech segments and Orinoco assumed all of Maritech's remaining abandonment and decommissioning obligations. |
Capital Stock |
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Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Stock | CAPITAL STOCK AND WARRANTS Our Restated Certificate of Incorporation, as amended during 2017, authorizes us to issue 250,000,000 shares of common stock, par value $.01 per share, and 5,000,000 shares of preferred stock, par value $.01 per share. As of December 31, 2018, we had 125,737,565 shares of common stock outstanding, with 2,717,569 shares held in treasury, and no shares of preferred stock outstanding. The voting, dividend, and liquidation rights of the holders of common stock are subject to the rights of the holders of preferred stock. The holders of common stock are entitled to one vote for each share held. There is no cumulative voting. Dividends may be declared and paid on common stock as determined by our Board of Directors, subject to any preferential dividend rights of any then outstanding preferred stock. Issuances of Common Stock. On February 28, 2018, we issued 7,772,021 shares of our common stock as part of the consideration paid for the acquisition of SwiftWater. For further discussion of the SwiftWater acquisition, see Note E - "Acquisitions and Dispositions." On June 21, 2016, we completed an underwritten public offering of 11.5 million shares of our common stock, which included 1.5 million shares of common stock pursuant to an option granted to the underwriters to purchase additional shares, at a price to the public of $5.50 per share ($5.2525 per share net of underwriting discounts). We utilized the net offering proceeds of $60.2 million to repay the remaining balance outstanding of certain senior secured notes, to reduce the balance outstanding under our previous bank credit agreement, to pay offering related discounts and expenses, and for general corporate purposes. The offering was made pursuant to a shelf registration statement filed with the SEC on March 23, 2016. On December 14, 2016, we completed a firm commitment underwritten offering of 22.3 million shares of our common stock at a price to the public of $5.15 per share ($4.9183 per share net of underwriting discounts) and the Warrants to purchase 11.2 million shares of our common stock at an exercise price of $5.75 per share prior to the 60-month expiration date of the Warrants. The 22.3 million shares of our common stock issued and the Warrants to purchase 11.2 million shares of our common stock includes 2.9 million shares of our common stock and Warrants to acquire an additional 1.5 million shares of our common stock related to the exercise of an option granted to the underwriters. We utilized the net offering proceeds of $109.7 million to repay outstanding indebtedness and other offering expenses. As of December 31, 2018, all of the Warrants remain outstanding. The Warrants were issued pursuant to a Warrant Agreement, dated December 14, 2016, and are exercisable immediately upon issuance and from time to time thereafter through and including the fifth year anniversary of the initial issuance date. At the request of a holder following a change of control, we or the successor entity will exchange such Warrant for consideration in accordance with a Black Scholes option pricing model in the form of, at our election, Rights (as defined in the Warrant Agreement) or cash. Similarly, within a period of time prior to the consummation of a change of control, we have the right to redeem all of the Warrants for cash in an amount determined in accordance with a Black-Scholes option pricing model. The Warrants are accounted for as a derivative liability in accordance with ASC 815 "Derivatives and Hedging" and accordingly are carried at their fair value, with changes in fair value included in earnings in the period of change. As of December 31, 2018 and 2017, the fair value of the Warrants was $2.1 million and $13.2 million, respectively. Changes in fair value during the year included a $11.1 million change in fair value credited to earnings during 2018, a $5.3 million change in fair value credited to earnings during 2017, and a $2.1 million change in fair value charged to earnings during 2016. In connection with the Warrants, approximately $0.9 million of the $6.5 million total issuance costs, including underwriting discounts, associated with the December 2016 offering was charged to earnings. A summary of the activity of our common shares outstanding and treasury shares held for the three year period ending December 31, 2018, is as follows:
Our Board of Directors is empowered, without approval of the stockholders, to cause shares of preferred stock to be issued in one or more series and to establish the number of shares to be included in each such series and the rights, powers, preferences, and limitations of each series. Because the Board of Directors has the power to establish the preferences and rights of each series, it may afford the holders of any series of preferred stock preferences, powers and rights, voting or otherwise, senior to the rights of holders of common stock. The issuance of the preferred stock could have the effect of delaying or preventing a change in control of the Company. Upon our dissolution or liquidation, whether voluntary or involuntary, holders of our common stock will be entitled to receive all of our assets available for distribution to our stockholders, subject to any preferential rights of any then outstanding preferred stock. In January 2004, our Board of Directors authorized the repurchase of up to $20.0 million of our common stock. During the three years ending December 31, 2018, we made no purchases of our common stock pursuant to this authorization. |
Equity-Based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity-Based Compensation | NOTE O — EQUITY-BASED COMPENSATION We have various equity incentive compensation plans that provide for the granting of restricted common stock, options for the purchase of our common stock, and other performance-based, equity-based compensation awards to our executive officers, key employees, nonexecutive officers, and directors. Stock options are exercisable for periods of up to ten years. Compensation cost for all share-based payments is based on the grant date fair value and is recognized in earnings over the requisite service period. Total equity-based compensation expense, before tax, for the three years ended December 31, 2018, 2017, and 2016, was $7.4 million, $7.8 million, and $13.7 million, respectively, and is included in general and administrative expense. Total equity-based compensation expense, net of taxes, for the three years ended December 31, 2018, 2017, and 2016, was $5.8 million, $5.0 million, and $9.5 million, respectively. Stock Incentive Plans In May 2007, our stockholders approved the adoption of the TETRA Technologies, Inc. 2007 Equity Incentive Compensation Plan. In May 2008, our stockholders approved the adoption of the TETRA Technologies, Inc. Amended and Restated 2007 Equity Incentive Compensation Plan, which among other changes, resulted in an increase in the maximum number of shares authorized for issuance. In May 2010, our stockholders approved further amendments to the TETRA Technologies, Inc. Amended and Restated 2007 Equity Incentive Compensation Plan (renamed as the 2007 Long Term Incentive Compensation Plan) which, among other changes, resulted in an additional increase in the maximum number of shares authorized for issuance. Pursuant to the 2007 Long Term Incentive Compensation Plan, we are authorized to grant up to 5,590,000 shares in the form of stock options (including incentive stock options and nonqualified stock options); restricted stock; bonus stock; stock appreciation rights; and performance awards to employees, and non-employee directors. As of February 2017, no further awards may be granted under the TETRA Technologies, Inc. Amended and Restated 2007 Equity Incentive Compensation Plan. In May 2011, our stockholders approved the adoption of the TETRA Technologies, Inc. 2011 Long Term Incentive Compensation Plan. Pursuant to this plan, we were authorized to grant up to 2,200,000 shares in the form of stock options, restricted stock, bonus stock, stock appreciation rights, and performance awards to employees, and non-employee directors. On May 3, 2013, shareholders approved the TETRA Technologies, Inc. 2011 Long Term Incentive Compensation Plan that, among other things, increased the number of authorized shares to 5,600,000. On May 3, 2016, shareholders approved the TETRA Technologies, Inc. Third Amended and Restated 2011 Long Term Incentive Compensation Plan which, among other things, increased the number of authorized shares to 11,000,000. As of May 2018, no further awards may be granted under the TETRA Technologies, Inc. Third Amended and Restated 2011 Long Term Incentive Compensation Plan. In June 2011, the Compressco Partners, L.P. 2011 Long Term Incentive Plan ("CCLP Long Term Incentive Plan") was adopted by the board of directors of CCLP’s general partner. The CCLP Long Term Incentive Plan provides for grants of restricted units, phantom units, unit awards and other unit-based awards up to a plan maximum of 1,537,122 common units. On November 28, 2018, unitholders approved the CSI Compressco LP Second Amended and Restated 2011 Long Term Incentive Plan that, among other things, increased the number of authorized units to 5,037,122. In February 2018, the board of directors adopted the 2018 Inducement Restricted Stock Plan (“2018 Inducement Plan”). The 2018 Inducement Plan provides for grants of restricted stock up to a plan maximum of 1,000,000 shares. In May 2018, our stockholders approved the adoption of the TETRA Technologies, Inc. 2018 Equity Incentive Plan (“2018 Equity Plan”). Pursuant to this plan, we were authorized to grant up to 6,635,000 shares in the form of stock options, restricted stock, restricted stock units, bonus stock, stock appreciation rights, performance units, performance awards, other stock-based awards and cash-based awards to employees and non-employee directors. In May 2018, our stockholders approved the adoption of the TETRA Technologies, Inc. 2018 Non-Employee Director Equity Incentive Plan (“2018 Director Plan”). Pursuant to this plan, we were authorized to grant up to 335,000 shares in the form of nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, other stock‑based awards and cash-based awards to non-employee directors. Grants of Equity Awards by CCLP During each of the three years ended December 31, 2018, CCLP granted restricted unit, phantom unit, or performance phantom unit awards to certain employees, officers, and directors of its general partner or of our employees. Awards of restricted units and phantom units generally vest over a three year period. Awards of performance phantom units cliff vest at the end of a performance period and are settled based on achievement of related performance measures over the performance period. Phantom units are notional units that entitle the grantee to receive a common unit upon the vesting of the award. Each of the phantom unit and performance phantom unit awards includes distribution equivalent rights that enable the recipient to receive additional units equal in value to the accumulated cash distributions made on the units subject to the award from the date of grant. Accumulated distributions associated with each underlying unit are payable upon settlement of the related phantom unit award (and are forfeited if the related award is forfeited). The following is a summary of CCLP’s equity award activity for the year ended December 31, 2018:
(2) The number of units granted shown above excludes 15,422 performance-based phantom units, which, when combined with the 93,996 granted (net of 2018 forfeitures), represents the maximum number of common units that would be issued if the maximum level of performance under the awards is achieved. The number of units actually issued under the awards may range from zero to 218,836. Stock Options The weighted average fair value of options granted during the years ended December 31, 2018, 2017, and 2016, was $1.88, $2.01, and $3.16, respectively, using the Black-Scholes option valuation model with the following weighted average assumptions:
The risk-free interest rate is based on the U.S. Treasury yield curve in effect on the grant date for a period commensurate with the estimated expected life of the stock options. Expected volatility is based on the historical volatility of our stock over the period commensurate with the expected life of the stock options and other factors. The dividend yield is based on the current annualized dividend rate in effect during the quarter in which the grant was made. At the time of the stock option grants during each of the years ended December 31, 2018, 2017 and 2016, we had not historically paid any dividends and did not expect to pay any dividends during the expected life of the stock options. The following is a summary of stock option activity for the year ended December 31, 2018:
Intrinsic value is the difference between the market value of our stock option multiplied by the number of stock options outstanding for those stock options where the market value exceeds their exercise price. The total intrinsic value of stock options exercised during December 31, 2018, 2017, and 2016, was approximately $0.1 million, $0.0 million, and $0.1 million, respectively. At December 31, 2018, total unrecognized compensation cost related to unvested stock options of $1.8 million is expected to be recognized over a weighted-average remaining service period of 1.50 years. Restricted Stock Restricted stock awards are periodically granted to key employees, including grants for employment inducements, as well as to members of our Board of Directors. Employee awards provide for vesting periods ranging from three to five years. Non-employee director grants vest in full before the first anniversary of the grant. Upon vesting of these grants, shares are issued to award recipients. The following is a summary of activity for our outstanding restricted stock awards for the year ended December 31, 2018:
Total compensation cost recognized for restricted stock awards was $4.9 million, $4.0 million, and $8.4 million for the years ended December 31, 2018, 2017, and 2016, respectively. Total unrecognized compensation cost at December 31, 2018, related to restricted stock awards is approximately $6.9 million which is expected to be recognized over a weighted-average remaining amortization period of 1.95 years. During the years ended December 31, 2018, 2017, and 2016, the total fair value of shares vested was $3.2 million, $4.8 million and $8.4 million, respectively. During 2018, 2017, and 2016, we received 79,476, 101,669 and 254,858 shares, respectively, of our common stock related to the vesting of certain employee restricted stock. Such surrendered shares received by us are included in treasury stock. At December 31, 2018, net of options previously exercised pursuant to our various equity compensation plans, we have a maximum of 6,373,059 shares of common stock issuable pursuant to awards previously granted and outstanding and awards authorized to be granted in the future. |
401(k) Plan |
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Dec. 31, 2018 | |
Defined Contribution Plan [Abstract] | |
Description of 401(K) Plan | NOTE P — 401(k) PLAN We have a 401(k) retirement plan (the "Plan") that covers substantially all employees and entitles them to contribute up to 70% of their annual compensation, subject to maximum limitations imposed by the Internal Revenue Code. We have historically matched 50% of each employee’s contribution up to 6% of annual compensation, subject to certain limitations as outlined in the Plan. Beginning in May 2016, we suspended the matching of employee contributions for an indefinite period. In August 2017, the matching of employee contributions was reinstated. Effective October 1, 2018, enhancements were made to the plan, including changing the employer match to 100% of each employee's contribution up to 4%. Additionally, participants will be 100% vested in employer match contributions after 3 years of service, instead of after 5 years of service. In addition, we can make discretionary contributions which are allocable to participants in accordance with the Plan. Total expense related to our 401(k) plan was $3.8 million, $0.9 million, and $1.4 million in 2018, 2017, and 2016, respectively. |
Deferred Compensation Plan |
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Dec. 31, 2018 | |
Notes to Financial Statements [Abstract] | |
Deferred Compensation Plan | DEFERRED COMPENSATION PLAN We provide our officers, directors, and certain key employees with the opportunity to participate in an unfunded, deferred compensation program. There were twenty-two participants in the program at December 31, 2018. Under the program, participants may defer up to 100% of their yearly total cash compensation. The amounts deferred remain our sole property, and we use a portion of the proceeds to purchase life insurance policies on the lives of certain of the participants. The insurance policies, which also remain our sole property, are payable to us upon the death of the insured. We separately contract with the participant to pay to the participant the amount of deferred compensation, as adjusted for gains or losses, invested in participant-selected investment funds. Participants may elect to receive deferrals and earnings at termination, death, or at a specified future date while still employed. Distributions while employed must be at least three years after the deferral election. The program is not qualified under Section 401 of the Internal Revenue Code. At December 31, 2018, the amounts payable under the plan approximated the value of the corresponding assets we owned. |
Fair Value Measurements |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hedge Contracts | FAIR VALUE MEASUREMENTS Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date” within an entity’s principal market, if any. The principal market is the market in which the reporting entity would sell the asset or transfer the liability with the greatest volume and level of activity, regardless of whether it is the market in which the entity will ultimately transact for a particular asset or liability or if a different market is potentially more advantageous. Accordingly, this exit price concept may result in a fair value that may differ from the transaction price or market price of the asset or liability. Under U.S. GAAP, the fair value hierarchy prioritizes inputs to valuation techniques used to measure fair value. Fair value measurements should maximize the use of observable inputs and minimize the use of unobservable inputs, where possible. Observable inputs are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs may be needed to measure fair value in situations where there is little or no market activity for the asset or liability at the measurement date and are developed based on the best information available in the circumstances, which could include the reporting entity’s own judgments about the assumptions market participants would utilize in pricing the asset or liability. Financial Instruments CCLP Preferred Units The CCLP Preferred Units are valued using a lattice modeling technique that, among a number of lattice structures, includes significant unobservable items (a Level 3 fair value measurement). These unobservable items include (i) the volatility of the trading price of CCLP's common units compared to a volatility analysis of equity prices of CCLP's comparable peer companies, (ii) a yield analysis that utilizes market information related to the debt yields of comparable peer companies, and (iii) a future conversion price analysis. The fair valuation of the CCLP Preferred Units liability is increased by, among other factors, projected increases in CCLP's common unit price and by increases in the volatility and decreases in the debt yields of CCLP's comparable peer companies. Increases (or decreases) in the fair value of CCLP Preferred Units will increase (decrease) the associated liability and result in future adjustments to earnings for the associated valuation losses (gains). During the years ended December 31, 2018, 2017, and 2016 the changes in the fair value of the CCLP Preferred Units resulted in $0.7 million credited to earnings, $3.0 million credited to earnings, and $4.4 million charged to earnings, respectively, in the consolidated statement of operations. Warrants The Warrants are valued either by using their traded market prices (a Level 1 fair value measurement) or, for periods when market prices are not available, by using the Black Scholes option valuation model that includes estimates of the volatility of the Warrants implied by their trading prices (a Level 3 fair value measurement). As of December 31, 2018 and 2017, the fair valuation methodology utilized for the Warrants was a Level 3 fair value measurement, as there were no available traded market prices to value the Warrants. The fair valuation of the Warrants liability is increased by, among other factors, increases in our common stock price, and by increases in the volatility of our common stock price. Increases (or decreases) in the fair value of the Warrants will increase (decrease) the associated liability and result in future adjustments to earnings for the associated valuation losses (gains). During the years ended December 31, 2018, 2017, and 2016, the changes in the fair value of the Warrants liability resulted in $11.1 million credited to earnings, $5.3 million credited to earnings, and $2.1 million charged to earnings, respectively, in the consolidated statement of operations. Acquisition Contingent Consideration As part of the purchase of SwiftWater during the first quarter of 2018, the sellers have the right to receive contingent consideration payments, in an aggregate amount of up to $15.0 million, calculated based on EBITDA and revenue of the combined water management business of SwiftWater and our pre-existing operations in the Permian Basin in respect of the period from January 1, 2018 through December 31, 2019. The contingent consideration may be paid in cash or shares of our common stock, at our election. The fair value of the contingent consideration is based on a probability simulation utilizing forecasted revenues and EBITDA of the water management business of SwiftWater and all of our pre-existing operations in the Permian Basin (a Level 3 fair value measurement). During the period from the closing date to December 31, 2018, the estimated fair value for the liabilities associated with the contingent purchase price consideration increased to $11.0 million, resulting in $3.4 million being charged to other (income) expense, net, during the year ended December 31, 2018. In addition, as part of the purchase of JRGO during December 2018, the sellers have the right to receive contingent consideration of up to $1.5 million to be paid during 2019, based on JRGO's performance during the fourth quarter of 2018. Approximately $11.5 million of the $12.5 million combined contingent consideration liability is based on actual 2018 performance, with the remaining being a fair value measurement based on a forecast of SwiftWater 2019 revenues and EBITDA. Derivative Contracts We are exposed to financial and market risks that affect our businesses. We have concentrations of credit risk as a result of trade receivables owed to us by companies in the energy industry. We have currency exchange rate risk exposure related to transactions denominated in foreign currencies as well as to investments in certain of our international operations. As a result of our variable rate debt facilities, we face market risk exposure related to changes in applicable interest rates. Our financial risk management activities may at times involve, among other measures, the use of derivative financial instruments, such as swap and collar agreements, to hedge the impact of market price risk exposures. For these fair value measurements, we utilize the quoted value (a Level 2 fair value measurement). We and CCLP each enter into short term foreign currency forward derivative contracts with third parties as part of a program designed to mitigate the currency exchange rate risk exposure on selected transactions of certain foreign subsidiaries. As of December 31, 2018, we and CCLP had the following foreign currency derivative contracts outstanding relating to portions of our foreign operations:
As of December 31, 2017, we and CCLP had the following foreign currency derivative contracts outstanding relating to a portion of our foreign operations:
Under this program, we and CCLP may enter into similar derivative contracts from time to time. Although contracts pursuant to this program will serve as an economic hedge of the cash flow of our currency exchange risk exposure, they are not formally designated as hedge contracts or qualify for hedge accounting treatment. Accordingly, any change in the fair value of these derivative instruments during a period will be included in the determination of earnings for that period. The fair values of foreign currency derivative instruments are based on quoted market values (a Level 2 fair value measurement). The fair values of our and CCLP's foreign currency derivative instruments as of December 31, 2018 and 2017, are as follows:
None of the foreign currency derivative contracts contain credit risk related contingent features that would require us to post assets or collateral for contracts that are classified as liabilities. During the year ended December 31, 2018, 2017, and 2016, we recognized approximately $(0.4) million, $(1.3) million and $2.0 million of net (gains) losses, respectively, reflected in other (income) expense, net, associated with our foreign currency derivative program. A summary of these recurring fair value measurements by valuation hierarchy as of December 31, 2018 and December 31, 2017, is as follows:
During 2018, our Water & Flowback Services Division recorded certain long-lived asset impairments, primarily related to an identified intangible asset resulting from decreased expected future cash flows from a Water & Flowback Services segment customer contract. During 2017, our Water & Flowback Services segment recorded certain long-lived asset impairments, primarily related to an identified intangible asset resulting from decreased expected future cash flows from a Water & Flowback Services segment customer contract. For further discussion, see Note B - Basis of Presentation and Significant Accounting Policies "Impairment of Long-Lived Assets." The fair values used in these impairment calculations were estimated based on discounted estimated future cash flows, which is based on significant unobservable inputs (Level 3) in accordance with the fair value hierarchy. A summary of these nonrecurring fair value measurements during the year ended December 31, 2018, using the fair value hierarchy, is as follows:
A summary of these nonrecurring fair value measurements during the year ended December 31, 2017, using the fair value hierarchy, is as follows:
The fair values of cash, restricted cash, accounts receivable, accounts payable, short-term borrowings and long-term debt pursuant to TETRA's ABL Credit Agreement and Term Credit Agreement, and the CCLP Credit Agreement approximate their carrying amounts. The fair value of our long-term 11% Senior Note at December 31, 2017, was approximately$130.8 million, based on current interest rates on that date, which was different from the stated interest rate on the 11% Senior Note of $125.0 million at December 31, 2017. The fair values of the publicly traded CCLP 7.25% Senior Notes (as herein defined) at December 31, 2018 and 2017, were approximately $266.3 million and $279.7 million, respectively. Those fair values compare to the face amount of $295.9 million both at December 31, 2018 and 2017. The fair value of the publicly traded CCLP 7.50% Senior Secured Notes at December 31, 2018 was approximately $332.5 million. This fair value compares to aggregate principal amount of such notes at December 31, 2018 of $350.0 million. We calculated the fair value of our 11% Senior Note as of December 31, 2017 internally, using current market conditions and average cost of debt (a Level 2 fair value measurement). We based the fair values of the CCLP 7.25% Senior Notes and the CCLP 7.50% Senior Secured Notes as of December 31, 2018 on recent trades for these notes. See Note J - "Long-Term Debt and Other Borrowings," for a complete discussion of our debt. |
Income (Loss) Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (Loss) Per Share | 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 for each of the following periods:
For the years ended December 31, 2018, 2017 and 2016, the average diluted shares outstanding excludes the impact of all outstanding equity awards and warrants, as the inclusion of these shares would have been anti-dilutive due to the net losses recorded during the year. In addition, for the years ended December 31, 2018, 2017, and 2016, the calculation of diluted earnings per common share excludes the impact of the CCLP Preferred Units, as the inclusion of the impact from conversion of the CCLP Preferred Units (as defined in Note K) into CCLP common units would have been anti-dilutive. |
Industry Segments and Geographic Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Industry Segments and Geographic Information | INDUSTRY SEGMENTS AND GEOGRAPHIC INFORMATION Following the acquisition of SwiftWater and the disposition of the Offshore Division during the three month period ended March 31, 2018, we reorganized our reporting segments and now manage our operations through three divisions: Completion Fluids & Products, Water & Flowback Services, and Compression. Our Completion Fluids & Products Division was previously reported as our Fluids Division, and included our water management services operations. Following the acquisition of SwiftWater in February 2018, our expanded water management operations are now included with our production testing operations as part of our Water & Flowback Services Division. The operations of our previous Offshore Division, consisting of our previous Offshore Services and Maritech segments, are now reported as discontinued operations following their disposal in March 2018. Our Completion Fluids & Products Division manufactures and markets clear brine fluids ("CBFs"), additives, and associated products and services to the oil and gas industry for use in well drilling, completion and workover operations in the United States and in certain countries in Latin America, Europe, Asia, the Middle East and Africa. The Division also markets liquid and dry calcium chloride products manufactured at its production facilities or purchased from third-party suppliers to a variety of markets outside the energy industry. Our Water & Flowback Services Division provides onshore oil and gas operators with comprehensive water management services. The Division also provides frac flowback, production well testing, offshore rig cooling, and other associated services in many of the major oil and gas producing regions in the United States, Mexico, and Canada, as well as in oil and gas basins in certain regions in South America, Africa, Europe, the Middle East, and Australia. Our Compression Division is a provider of compression services and equipment for natural gas and oil production, gathering, transportation, processing, and storage. The Compression Division's equipment sales business includes the fabrication and sale of standard compressor packages and custom-designed compressor packages designed and fabricated at the Division's facilities. The Compression Division's aftermarket business provides compressor package reconfiguration and maintenance services and compressor package parts and components manufactured by third-party suppliers. The Compression Division provides its services and equipment to a broad base of natural gas and oil exploration and production, midstream, transmission, and storage companies operating throughout many of the onshore producing regions of the United States, as well as in a number of foreign countries, including Mexico, Canada and Argentina. We generally evaluate the performance of and allocate resources to our segments based on profit or loss from their operations before income taxes and nonrecurring charges, return on investment, and other criteria. Transfers between segments and geographic areas are priced at the estimated fair value of the products or services as negotiated between the operating units. “Corporate overhead” includes corporate general and administrative expenses, corporate depreciation and amortization, interest income and expense, and other income and expense. Summarized financial information concerning the business segments is as follows:
Summarized financial information concerning the geographic areas of our customers and in which we operate at December 31, 2018, 2017, and 2016, is presented below:
During each of the three years ended December 31, 2018, 2017, and 2016, no single customer accounted for more than 10% of our consolidated revenues. |
Quarterly Financial Information (Unaudited) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information (Unaudited) | QUARTERLY FINANCIAL INFORMATION (Unaudited) Summarized quarterly financial data for 2018 and 2017 is as follows:
Gross profit for the three months ended September 30, 2018, includes the impact of $2.9 million for certain impairments of long-lived assets. Gross profit for the three months ended December 31, 2017, includes the impact of $14.9 million for certain impairments of long-lived assets. |
Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principles of consolidation policy | Principles of Consolidation Our consolidated financial statements include the accounts of our wholly owned subsidiaries. We consolidate the financial statements of CCLP as part of our Compression Division, as we determined that CCLP is a variable interest entity and we are the primary beneficiary. We control the financial interests of CCLP and have the ability to direct the activities of CCLP that most significantly impact its economic performance through our ownership of its general partner. The share of CCLP net assets and earnings that is not owned by us is presented as noncontrolling interest in our consolidated financial statements. Our cash flows from our investment in CCLP are limited to the quarterly distributions we receive on our CCLP common units and general partner interest (including incentive distribution rights) and the amounts collected for services we perform on behalf of CCLP, as TETRA's capital structure and CCLP's capital structure are separate, and do not include cross default provisions, cross collateralization provisions, or cross guarantees. As of December 31, 2018, our consolidated balance sheet includes $67.4 million of restricted net assets, consisting of the consolidated net assets of CCLP. All intercompany accounts and transactions have been eliminated in consolidation. |
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Use of estimates policy | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("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. |
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Reclassifications policy | Reclassifications Certain previously reported financial information has been reclassified to conform to the current year's presentation. For a discussion of the reclassification of the financial presentation of our Offshore Division as discontinued operations, see Note F - "Discontinued Operations." |
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Cash and cash equivalents policy | Cash Equivalents We consider all highly liquid cash investments with a maturity of three months or less when purchased to be cash equivalents. |
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Restricted cash policy | Restricted Cash Restricted cash is classified as a current asset when it is expected to be repaid or settled in the next twelve month period. |
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Financial instruments policy | Financial Instruments Financial instruments that subject us to concentrations of credit risk consist principally of trade receivables with companies in the energy industry. Our policy is to evaluate, prior to providing goods or services, each customer's financial condition and to determine the amount of open credit to be extended. We generally require appropriate, additional collateral as security for credit amounts in excess of approved limits. Our customers consist primarily of major, well-established oil and gas producers and independent oil and gas companies. Payment terms are on a short-term basis. We have currency exchange rate risk exposure related to transactions denominated in a foreign currency as well as to investments in certain of our international operations. Our risk management activities include the use of foreign currency forward purchase and sale derivative contracts as part of a program designed to mitigate the currency exchange rate risk exposure on selected international operations. We have no outstanding balances under our and CCLP's variable rate revolving credit facilities as of December 31, 2018. However, if we were to have outstanding balances on these variable rate bank credit facilities, we would face market risk exposure related to changes in applicable interest rates. |
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Allowances for doubtful accounts policy | Allowances for Doubtful Accounts Allowances for doubtful accounts are determined generally and on a specific identification basis when we believe that the collection of specific amounts owed to us is not probable. The changes in allowances for doubtful accounts for the three year period ended December 31, 2018, are as follows:
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Inventories policy | Inventories Inventories are stated at the lower of cost or net realizable value. Except for work in progress inventory, cost is determined using the weighted average method. The cost of work in progress is determined using the specific identification method. |
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Assets held for sale policy | Property, plant, and equipment are stated at cost. Expenditures that increase the useful lives of assets are capitalized. The cost of repairs and maintenance is charged to operations as incurred. For financial reporting purposes, we provide for depreciation using the straight-line method over the estimated useful lives of assets, which are generally as follows:
Leasehold improvements are depreciated over the shorter of the remaining term of the associated lease or its useful life. Depreciation expense, excluding impairments and other charges, for the years ended December 31, 2018, 2017, and 2016 was $106.9 million, $97.3 million, and $109.4 million, respectively. Construction in progress as of December 31, 2018 and 2017 consists primarily of equipment fabrication projects. |
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Property, plant, and equipment policy | Property, Plant, and Equipment Property, plant, and equipment are stated at cost. Expenditures that increase the useful lives of assets are capitalized. The cost of repairs and maintenance is charged to operations as incurred. For financial reporting purposes, we provide for depreciation using the straight-line method over the estimated useful lives of assets, which are generally as follows:
Leasehold improvements are depreciated over the shorter of the remaining term of the associated lease or its useful life. Depreciation expense, excluding impairments and other charges, for the years ended December 31, 2018, 2017, and 2016 was $106.9 million, $97.3 million, and $109.4 million, respectively. Construction in progress as of December 31, 2018 and 2017 consists primarily of equipment fabrication projects. |
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Intangible assets other than goodwill policy | Intangible Assets other than Goodwill Patents, trademarks, and other intangible assets are amortized on a straight-line basis over their estimated useful lives, ranging from 2 to 20 years. Amortization expense of patents, trademarks, and other intangible assets was $7.3 million, $6.1 million, and $6.8 million for the years ended December 31, 2018, 2017, and 2016, respectively, and is included in depreciation, amortization and accretion. The estimated future annual amortization expense of patents, trademarks, and other intangible assets is $7.8 million for 2019, $7.7 million for 2020, $7.4 million for 2021, $7.0 million for 2022, and $6.7 million for 2023. Intangible assets other than goodwill are tested for recoverability whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. In such an event, we will determine the fair value of the asset using an undiscounted cash flow analysis of the asset at the lowest level for which identifiable cash flows exist. If an impairment has occurred, we will recognize a loss for the difference between the carrying value and the estimated fair value of the intangible asset. During 2018, 2017, and 2016, certain intangible assets were impaired. See "Impairments of Long-Lived Assets" section below. |
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Goodwill policy | Goodwill Goodwill represents the excess of cost over the fair value of the net assets acquired in business combinations. We perform a goodwill impairment test at a reporting unit level on an annual basis or whenever indicators of impairment are present. We perform the annual test of goodwill impairment as of the last day of the fourth quarter of each year. As of December 31, 2018, consolidated goodwill consists of $25.9 million attributed to our Water Management reporting unit, included as part of our Water & Flowback Services Division. The first step of the impairment test is to compare the estimated fair value with the recorded net book value (including goodwill) of our reporting units. If the estimated fair value is higher than the recorded net book value, no impairment is deemed to exist and no further testing is required. If, however, the carrying amount of the reporting unit exceeds its estimated fair value, an impairment loss is calculated by comparing the carrying amount of the reporting unit’s goodwill to our estimated implied fair value of that goodwill. Our estimates of reporting unit fair value, when required, are based on a combination of an income and market approach. These estimates are imprecise and are subject to our estimates of the future cash flows of each business and our judgment as to how these estimated cash flows translate into each business’ estimated fair value. These estimates and judgments are affected by numerous factors, including the general economic environment at the time of our assessment, which affects our overall market capitalization. See Note D - "Goodwill" for additional discussion of our goodwill. |
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Impairment of long-lived assets policy | Impairments of Long-Lived Assets Impairments of long-lived assets, including identified intangible assets, are determined periodically when indicators of impairment are present. If such indicators are present, the determination of the amount of impairment is based on our judgments as to the future undiscounted operating cash flows to be generated from these assets throughout their remaining estimated useful lives. If these undiscounted cash flows are less than the carrying amount of the related asset, an impairment is recognized for the excess of the carrying value over its fair value. Assets held for disposal are recorded at the lower of carrying value or estimated fair value less estimated selling costs. During the third quarter of 2018, as a result of decreased expected future cash flows from a specific customer contract, we recorded a long-lived asset impairment of $2.9 million of an identified intangible asset within the Water & Flowback Services segment. During the fourth quarter of 2017, consolidated long-lived asset impairments of approximately $14.9 million were recorded primarily due to the impairment of a certain identified intangible asset resulting from decreased expected future operating cash flows from a Water & Flowback Services segment customer. During the first quarter of 2016, our Compression and Water & Flowback Services segments recorded impairments of approximately $7.9 million and $2.8 million, respectively, due to expected decreased demand due to current market conditions. During the fourth quarter of 2016, our Compression, Completion Fluids & Products, and Water & Flowback Services segments recorded certain consolidated impairments and other charges of approximately $2.4 million, $0.5 million, and $3.6 million, respectively, due to expected decreased demand due to current market conditions and equipment damage. |
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Decommissioning liabilities policy | The values of our asset retirement obligations for properties were $12.2 million and $11.7 million as of December 31, 2018 and 2017, respectively. Decommissioning and asset retirement work performed for the years 2018, 2017, and 2016 was $0.04 million, $0.4 million, and $0.0 million, respectively. For a further discussion of asset retirement obligations, see Note L – "Asset Retirement Obligations." Environment |
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Environmental liabilities policy | Environmental Liabilities Environmental expenditures that result in additions to property and equipment are capitalized, while other environmental expenditures are expensed. Environmental remediation liabilities are recorded on an undiscounted basis when environmental assessments or cleanups are probable and the costs can be reasonably estimated. Estimates of future environmental remediation expenditures often consist of a range of possible expenditure amounts, a portion of which may be in excess of amounts of liabilities recorded. In such an instance, we disclose the full range of amounts reasonably possible of being incurred. Any changes or developments in environmental remediation efforts are accounted for and disclosed each quarter as they occur. Any recoveries of environmental remediation costs from other parties are recorded as assets when their receipt is deemed probable. Complexities involving environmental remediation efforts can cause estimates of the associated liability to be imprecise. Factors that cause uncertainties regarding the estimation of future expenditures include, but are not limited to, the effectiveness of the anticipated work plans in achieving targeted results and changes in the desired remediation methods and outcomes as prescribed by regulatory agencies. Uncertainties associated with environmental remediation contingencies are pervasive and often result in wide ranges of reasonably possible outcomes. Estimates developed in the early stages of remediation can vary significantly. Normally, a finite estimate of cost does not become fixed and determinable at a specific point in time. Rather, the costs associated with environmental remediation become estimable as the work is performed and the range of ultimate cost becomes more defined. It is possible that cash flows and results of operations could be materially affected by the impact of the ultimate resolution of these contingencies. |
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Revenue recognition policy | Revenue Recognition Revenue is recognized when performance obligations under the terms of a contract with our customer are satisfied. Refer to Note U - "Revenue From Contracts With Customers" for further discussion. |
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Operating costs policy | Operating Costs Cost of product sales includes direct and indirect costs of manufacturing and producing our products, including raw materials, fuel, utilities, labor, overhead, repairs and maintenance, materials, services, transportation, warehousing, equipment rentals, insurance, and certain taxes. In addition, cost of product sales includes oil and gas operating expense. Cost of services includes operating expenses we incur in delivering our services, including labor, equipment rental, fuel, repair and maintenance, transportation, overhead, insurance, and certain taxes. We include in product sales revenues the reimbursements we receive from customers for shipping and handling costs. Shipping and handling costs are included in cost of product sales. Amounts we incur for “out-of-pocket” expenses in the delivery of our services are recorded as cost of services. Reimbursements for “out-of-pocket” expenses we incur in the delivery of our services are recorded as service revenues. Depreciation, amortization, and accretion includes depreciation expense for all of our facilities, equipment and vehicles, amortization expense on our intangible assets, and accretion expense related to our decommissioning and other asset retirement obligations. We include in general and administrative expense all costs not identifiable to our specific product or service operations, including divisional and general corporate overhead, professional services, corporate office costs, sales and marketing expenses, insurance, and certain taxes. |
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Equity-based compensation policy | Equity-Based Compensation We and CCLP have various equity incentive compensation plans which provide for the granting of restricted common stock, options for the purchase of our common stock, and other performance-based, equity-based compensation awards to our executive officers, key employees, nonexecutive officers, and directors. Total equity-based compensation expense, net of taxes, for the three years ended December 31, 2018, 2017, and 2016, was $5.8 million, $5.0 million, and $9.5 million, respectively. For further discussion of equity-based compensation, see Note O – "Equity-Based Compensation. |
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Income tax policy | Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis amounts. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates is recognized as income or expense in the period that includes the enactment date. A portion of the carrying value of certain deferred tax assets are subject to a valuation allowance. See Note H – "Income Taxes" for further discussion. |
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Income (loss) per common share policy | Income (Loss) per Common Share The calculation of basic earnings per share excludes any dilutive effects of equity awards or warrants. The calculation of diluted earnings per share includes the effect of equity awards and warrants, if dilutive, which is computed using the treasury stock method during the periods such equity awards and warrants were outstanding. A reconciliation of the common shares used in the computations of income (loss) per common and common equivalent shares is presented in Note S – "Income (Loss) Per Share. |
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Foreign currency translation policy | Foreign Currency Translation We have designated the euro, the British pound, the Norwegian krone, the Canadian dollar, the Brazilian real, and the Mexican peso as the functional currencies for our operations in Finland and Sweden, the United Kingdom, Norway, Canada, Brazil, and certain of our operations in Mexico, respectively. The U.S. dollar is the designated functional currency for all of our other foreign operations. The cumulative translation effects of translating the applicable accounts from the functional currencies into the U.S. 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 $(0.1) million, $(1.6) million, and $(0.9) million for the years ended December 31, 2018, 2017 and 2016, respectively. |
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Fair value measurements policy | 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 liabilities, including the liabilities for the warrants to purchase 11.2 million shares of our common stock (the "Warrants"), the CCLP Series A Convertible Preferred Units (the "CCLP Preferred Units"), and contingent consideration liability. We also utilize fair value measurements on a recurring basis in the accounting for our foreign currency derivative contracts. Refer to Note R - "Fair Value Measurements" for further discussion. Fair value measurements are also utilized on a nonrecurring basis in certain circumstances, such as in the allocation of purchase consideration for acquisition transactions to the assets and liabilities acquired, including intangible assets and goodwill (a Level 3 fair value measurement), the initial recording of our asset retirement obligations, and for the impairment of long-lived assets, including goodwill (a Level 3 fair value measurement). |
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New accounting pronouncements policy | New Accounting Pronouncements Standards adopted in 2018 In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers." This ASU supersedes the revenue recognition requirements in Accounting Standards Codification ("ASC") 605, "Revenue Recognition", and most industry-specific guidance. This ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those years, under either full or modified retrospective adoption. On January 1, 2018, we adopted ASU 2014-09 and all related amendments, which was codified into ASC 606. We utilized the modified retrospective method of adoption. Comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The core principle of ASC 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASC 606 also provides a five-step model for determining revenue recognition for arrangements that are within the scope of the standard: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. We only apply the five-step model to contracts when it is probable that we will collect the consideration we are entitled to in exchange for the goods or services we transfer to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, we assess the goods or services promised within each contract and determine those that are performance obligations and assess whether each promised good or service is distinct. We then recognize as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. For a complete discussion of accounting for revenues, see Note U - "Revenue from Contracts with Customers." The impact from the adoption of ASC 606 to our January 1, 2018 consolidated balance sheet, our December 31, 2018 consolidated balance sheet, and our consolidated results of operations for the year ended December 31, 2018 was immaterial. The adoption of ASC 606 had no impact to cash provided by operating, financing, or investing activities in our consolidated statement of cash flows. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" to reduce diversity in practice in classification of certain transactions in the statement of cash flows. We adopted this ASU during the three month period ended March 31, 2018, with no impact to our consolidated financial statements. In November 2016, the FASB issued ASU 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory," which requires companies to account for the income tax effects of intercompany transfers of assets other than inventory when the transfer occurs. We adopted this ASU during the three month period ended March 31, 2018. The adoption of this standard did not have a material impact to our consolidated financial statements. Additionally, in November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash" to reduce diversity in the presentation of restricted cash and restricted cash equivalents in the statement of cash flows. We adopted this ASU during the three month period ended March 31, 2018, resulting in restricted cash, if any, being classified with cash and cash equivalents in our consolidated statement of cash flows. In May 2017, the FASB issued ASU 2017-09, "Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting" to clarify when to account for a change to the terms or conditions of a share-based payment award as a modification. We adopted this ASU during the three month period ended March 31, 2018, with no impact to our consolidated financial statements. Standards not yet adopted In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" to increase comparability and transparency among different organizations. Organizations are required to recognize right-of-use lease assets and lease liabilities in the balance sheet related to the right to use the underlying asset for the lease term. In addition, through improved disclosure requirements, ASC 842 will enable users of financial statements to further understand the amount, timing, and uncertainty of cash flows arising from leases. ASC 842 is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods. In July 2018, the FASB provided an additional transition method allowing for the recognition of a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption rather than in the earliest period presented. We plan to adopt ASC 842 effective January 1, 2019 using the optional transition method. Comparative information will continue to be reported under the accounting standards that were in effect for those periods. Based on our preliminary assessment of our portfolio of leases where we are the lessee, upon adoption of ASC 842, we will record an amount for right-to-use assets and lease obligations ranging from approximately $60.0 million to $70.0 million pursuant to the new requirements. The July 2018 amendment also provided lessors with a practical expedient to not separate nonlease components from the associated lease component and, instead, to account for those components as a single component if the nonlease components otherwise would be accounted for under ASC 606 and certain conditions are met. The amendment also provided clarification on whether ASC 842 or ASC 606 is applicable to the combined component based on determination of the predominant component. An entity that elects the lessor practical expedient also should provide certain disclosures. We evaluated the impact of the July 2018 amendment on our compression services contracts and have concluded that the services nonlease component is predominant, which results in the ongoing recognition following ASC 606. 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. ASU 2016-13 has an effective date of the first quarter of fiscal 2022. We are currently assessing the potential effects of these changes to our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, "Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment," which simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. The ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods, with early adoption permitted, under a prospective adoption. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, “Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting” to align the measurement and classification guidance for share-based payments to nonemployees with the guidance currently applied to employees, with certain exceptions. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods, with early adoption permitted. We are currently assessing the potential effects of these changes to our consolidated financial statements and do not expect the adoption of this standard to have a material impact on our consolidated financial statements. |
Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowances for Doubtful Accounts Table |
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Inventory Disclosure | Inventories are stated at the lower of cost or net realizable value. Except for work in progress inventory, cost is determined using the weighted average method. The cost of work in progress is determined using the specific identification method. INVENTORIES Components of inventories are as follows:
Finished goods inventories include newly manufactured clear brine fluids as well as used brines that are repurchased from certain customers for recycling. Work in progress inventory consists primarily of new compressor packages located in the CCLP fabrication facility in Midland, Texas. |
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Property, Plant, and Equipment Table |
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Inventories Inventories (Tables) |
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Schedule of Inventory, Current [Table Text Block] | Components of inventories are as follows:
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Acquisitions and Dispositions (Tables) |
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Pro forma financial information table |
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Leases (Tables) |
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Future Minimum Lease Payments Table |
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Income Taxes (Tables) |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Provision Table |
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Effective Income Tax Rate Reconciliation Table |
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Domestic and Foreign Income Before Tax Table |
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Unrecognized Tax Benefit Liability Rollforward Table |
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Deferred Tax Assets and Liabilities Table |
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Accrued Liabilities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities Table |
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Long-Term Debt and Other Borrowings (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt Table |
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Scheduled Maturities Table |
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Asset Retirement Obligations (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Retirement Obligation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Decommissioning and Other Asset Retirement Obligations Table |
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Capital Stock (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Shares Outstanding and Treasury Shares Held Rollforward Table |
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Equity-Based Compensation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partnership Unit Award Activity Table |
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Stock Option Valuation Assumptions Table |
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Stock Option Award Activity Table |
Intrinsic value is the difference between the market value of our stock option multiplied by the number of stock options outstanding for those stock options where the market value exceeds their exercise price. The total intrinsic value of stock options exercised during December 31, 2018, 2017, and 2016, was approximately $0.1 million, $0.0 million, and $0.1 million, respectively. |
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Restricted Stock Award Activity Table |
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Fair Value Measurements (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 |
Dec. 31, 2017 |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions Table |
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Derivatives Designated as Hedging Instruments Table |
Under this program, we and CCLP may enter into similar derivative contracts from time to time. Although contracts pursuant to this program will serve as an economic hedge of the cash flow of our currency exchange risk exposure, they are not formally designated as hedge contracts or qualify for hedge accounting treatment. Accordingly, any change in the fair value of these derivative instruments during a period will be included in the determination of earnings for that period. The fair values of foreign currency derivative instruments are based on quoted market values (a Level 2 fair value measurement). The fair values of our and CCLP's foreign currency derivative instruments as of December 31, 2018 and 2017, are as follows:
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Income (Loss) Per Share (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted Average Shares Outstanding Table |
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Industry Segments and Geographic Information (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Table |
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Financial Information by Geographic Area Table |
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Quarterly Financial Information (Unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Table |
|
Organization and Operations Organization and Operations (Details) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018
USD ($)
$ / shares
|
Sep. 30, 2018
USD ($)
$ / shares
|
Jun. 30, 2018
USD ($)
$ / shares
|
Mar. 31, 2018
USD ($)
$ / shares
|
Dec. 31, 2017
USD ($)
$ / shares
|
Sep. 30, 2017
USD ($)
$ / shares
|
Jun. 30, 2017
USD ($)
$ / shares
|
Mar. 31, 2017
USD ($)
$ / shares
|
Mar. 31, 2016
USD ($)
|
Dec. 31, 2018
USD ($)
$ / shares
shares
|
Dec. 31, 2017
USD ($)
$ / shares
shares
|
Dec. 31, 2016
USD ($)
$ / shares
shares
|
|
Revenue from Contract with Customer, Including Assessed Tax | $ 282,471 | $ 256,851 | $ 260,072 | $ 199,381 | $ 200,081 | $ 183,677 | $ 179,931 | $ 159,409 | $ 998,775 | $ 723,098 | $ 617,391 | |
Depreciation, amortization, and accretion | 114,925 | 104,053 | 117,147 | |||||||||
Impairment of Long-Lived Assets Held-for-use | 2,900 | 14,900 | 3,621 | 14,876 | 17,094 | |||||||
Insurance Recoveries | 0 | 2,352 | 0 | |||||||||
Cost of Revenue | 836,477 | 614,708 | 556,552 | |||||||||
Gross profit (loss) | 45,184 | 41,330 | 47,801 | 27,983 | 16,550 | 42,651 | 29,535 | 19,654 | 162,298 | 108,390 | 60,839 | |
General and administrative expense | 132,446 | 115,414 | 108,422 | |||||||||
Goodwill, Impairment Loss | $ 106,200 | 0 | 0 | 106,205 | ||||||||
Interest expense, net | 70,946 | 57,246 | 58,614 | |||||||||
Fair Value Adjustment of Warrants | (11,129) | (5,301) | 2,106 | |||||||||
Liabilities, Fair Value Adjustment | 733 | 2,975 | (4,404) | |||||||||
Gain (Loss) Related to Litigation Settlement | 0 | 12,816 | 0 | |||||||||
Other Nonoperating Income (Expense) | 7,194 | 865 | 4,308 | |||||||||
Pretaxincomelossbeforediscontinuedoperations | (36,426) | (44,043) | (223,220) | |||||||||
Income Tax Expense (Benefit) | 6,299 | 751 | 2,156 | |||||||||
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 3,316 | (12,852) | (12,132) | (21,057) | (31,726) | (857) | (7,966) | (4,245) | (42,725) | (44,794) | (225,376) | |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | (41,515) | (17,389) | (14,017) | |||||||||
Net income (loss) | 2,732 | (12,056) | (12,153) | (62,763) | (34,974) | (1,338) | (14,619) | (11,252) | (84,240) | (62,183) | (239,393) | |
Noncontrolling Interest in Net Income (Loss) Limited Partnerships, Redeemable | (22,623) | (23,135) | (77,931) | |||||||||
Net income (loss) attributable to TETRA stockholders | $ 4,932 | $ (6,936) | $ (5,965) | $ (53,648) | $ (28,739) | $ 3,145 | $ (10,991) | $ (2,463) | $ (61,617) | $ (39,048) | $ (161,462) | |
Income (Loss) from Continuing Operations, Per Basic Share | $ / shares | $ 0.04 | $ (0.06) | $ (0.05) | $ (0.10) | $ (0.22) | $ 0.03 | $ (0.04) | $ 0.04 | $ (0.16) | $ (0.19) | $ (1.69) | |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share | $ / shares | (0.34) | (0.15) | (0.16) | |||||||||
Earnings Per Share, Basic | $ / shares | 0.04 | (0.06) | (0.05) | (0.46) | (0.25) | 0.03 | (0.10) | (0.02) | $ (0.50) | $ (0.34) | $ (1.85) | |
Weighted Average Number of Shares Outstanding, Basic | shares | 124,101 | 114,499 | 87,286 | |||||||||
Income (Loss) from Continuing Operations, Per Diluted Share | $ / shares | 0.04 | (0.06) | (0.05) | (0.10) | (0.22) | 0.03 | (0.04) | 0.04 | $ (0.16) | $ (0.19) | $ (1.69) | |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share | $ / shares | (0.34) | (0.15) | (0.16) | |||||||||
Earnings Per Share, Diluted | $ / shares | $ 0.04 | $ (0.06) | $ (0.05) | $ (0.46) | $ (0.25) | $ 0.03 | $ (0.10) | $ (0.02) | $ (0.50) | $ (0.34) | $ (1.85) | |
Weighted Average Number of Shares Outstanding, Diluted | shares | 124,101 | 114,499 | 87,286 | |||||||||
Number of Operating Segments | 3 | |||||||||||
Product [Member] | ||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | $ 409,227 | $ 305,404 | $ 248,691 | |||||||||
Cost of Goods and Services Sold | 327,553 | 223,504 | 193,966 | |||||||||
Service [Member] | ||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 589,548 | 417,694 | 368,700 | |||||||||
Cost of Goods and Services Sold | $ 390,378 | 274,627 | 228,345 | |||||||||
Retained Earnings [Member] | ||||||||||||
Net income (loss) | $ (39,048) | $ (161,462) |
Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Sales Revenue and Costs (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||||||||
Revenue from Contract with Customer, Including Assessed Tax | $ 282,471 | $ 256,851 | $ 260,072 | $ 199,381 | $ 200,081 | $ 183,677 | $ 179,931 | $ 159,409 | $ 998,775 | $ 723,098 | $ 617,391 |
Summary of Significant Accounting Policies Summary of Significant Accounting Policies Other (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Share-based Compensation Arrangements [Line Items] | |||
Equity-based compensation expense | $ 5.8 | $ 5.0 | $ 9.5 |
Inventories Inventories (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Inventory, Finished Goods | $ 69,762 | $ 66,377 |
Inventory, Raw Materials | 3,503 | 4,027 |
Other Inventory, Supplies | 47,386 | 33,632 |
Inventory, Work in Process | 22,920 | 11,402 |
Inventories | $ 143,571 | $ 115,438 |
Goodwill (Details) $ in Thousands |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2016
USD ($)
|
Dec. 31, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
|
Goodwill [Line Items] | |||||
Impairment of goodwill | $ 106,200 | $ 0 | $ 0 | $ 106,205 | |
Goodwill, Acquired During Period | 19,223 | ||||
Goodwill | 25,859 | 6,636 | 6,636 | $ 112,945 | |
Completion Fluids & Products Division [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill, Impaired, Accumulated Impairment Loss | $ 23,800 | ||||
Water & Flowback Services [Member] | |||||
Goodwill [Line Items] | |||||
Number of Reporting Units | 2 | ||||
Goodwill, Acquired During Period | $ 19,223 | ||||
Goodwill | 25,859 | 6,636 | 6,636 | 20,543 | |
Goodwill, Impaired, Accumulated Impairment Loss | 111,800 | ||||
Compression [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill, Acquired During Period | 0 | ||||
Goodwill | 0 | $ 0 | $ 0 | $ 92,402 | |
Goodwill, Impaired, Accumulated Impairment Loss | $ 231,800 |
Goodwill Tables (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Goodwill [Line Items] | ||||
Goodwill | $ 25,859 | $ 6,636 | $ 6,636 | $ 112,945 |
Goodwill, Acquired During Period | 19,223 | |||
Goodwill, Other Increase (Decrease) | 0 | 0 | (106,309) | |
Water & Flowback Services [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill | 25,859 | 6,636 | 6,636 | 20,543 |
Goodwill, Acquired During Period | 19,223 | |||
Goodwill, Other Increase (Decrease) | 0 | 0 | (13,907) | |
Compression [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill | 0 | 0 | 0 | $ 92,402 |
Goodwill, Acquired During Period | 0 | |||
Goodwill, Other Increase (Decrease) | $ 0 | $ 0 | $ (92,402) |
Leases (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Leases [Abstract] | |||
2014 (operating leases) | $ 18,466 | ||
2015 (operating leases) | 15,947 | ||
2016 (operating leases) | 10,456 | ||
2017 (operating leases) | 8,410 | ||
2018 (operating leases) | 7,441 | ||
After 2018 (operating leases) | 27,715 | ||
Total minimum lease payments (operating leases) | 88,435 | ||
2014 (capital leases) | 188 | ||
2015 (capital leases) | 35 | ||
2016 (capital leases) | 27 | ||
2017 (capital leases) | 0 | ||
2018 (capital leases) | 0 | ||
After 2018 (capital leases) | 0 | ||
Total minimum lease payments (capital leases) | 250 | ||
Rental expense for operating leases | 40,900 | $ 27,100 | $ 24,800 |
Future minimum rental receipts | $ 6,400 |
Leases Leases - Narrative (Details) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2018
USD ($)
| |
Operating Leased Assets [Line Items] | |
Sale leasback transaction, deferred gain, gross | $ 5.0 |
Sale-leaseback of Trailers to an Unaffiliated Third Party | |
Operating Leased Assets [Line Items] | |
Sale leaseback transaction, sale price of investing activities | $ 43.8 |
Accrued Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Accrued Liabilities Detail [Table] | ||
Compensation and employee benefits | $ 25,286 | $ 20,621 |
Oil and gas producing liabilities | 15,158 | 9,272 |
Unearned income | 1,561 | 1,617 |
Deferred tax liability | 15,756 | 11,763 |
Contingent consideration, current portion | 11,452 | 0 |
Other accrued liabilities | 20,019 | 15,205 |
Accrued liabilities | $ 89,232 | $ 58,478 |
Asset Retirement Obligations (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Decommissioning and Other Asset Retirement Obligations Detail [Table] | |||
Beginning balance for the period, as reported | $ 11,738 | $ 9,912 | |
Activity in the period: | |||
Accretion of liability | 563 | 624 | |
Retirement obligations incurred | 59 | 265 | |
Revisions in estimated cash flows | 1,349 | ||
Settlement of retirement obligations | (35) | (412) | $ 0 |
Ending balance at December 31 | 12,202 | 11,738 | 9,912 |
Change in estimated cash flows to decommission oil and gas properties | (123) | ||
Direct charges to operating expense for increased estimated cash flows | $ 0 | $ 0 | $ 2,629 |
Commitments and Contingencies (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Commitments and Contingencies Disclosure [Abstract] | |||
Litigation Settlement, Amount Awarded from Other Party | $ 12.8 | ||
Future purchase obligations under Fluids supply agreement, aggregate | $ 104.0 | ||
Future purchase obligations under Fluids supply agreement, 2014 | 9.5 | ||
Future purchase obligations under Fluids supply agreement, 2015 | 9.5 | ||
Future purchase obligations under Fluids supply agreement, 2016 | 9.5 | ||
Future purchase obligations under Fluids supply agreement, 2017 | 9.5 | ||
Future purchase obligations under Fluids supply agreement, 2018 | 9.5 | ||
Future purchase obligations under Fluids supply agreement, after 2018 through 2029 | 56.5 | ||
Purchases under Fluids supply agreement | $ 18.0 | $ 16.1 | $ 13.3 |
401(k) Plan (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Defined Contribution Plan [Abstract] | |||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 70.00% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50.00% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match, Maximum per Employee | 6.00% | ||
Total expense related to 401(k) plan | $ 3.8 | $ 0.9 | $ 1.4 |
Income (Loss) Per Share (Details) - shares shares in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Weighted Average Shares Outstanding Details [Table] | |||
Number of weighted average common shares outstanding | 124,101 | 114,499 | 87,286 |
Assumed exercise of stock options | 0 | 0 | 0 |
Average diluted shares outstanding | 124,101 | 114,499 | 87,286 |
Revenue from Contract with Customer Contract Assets and Liabilities (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Revenue from Contract with Customer [Abstract] | ||
Allowance for Doubtful Accounts Receivable, Write-offs | $ 1,700 | $ 1,100 |
Deferred Revenue | 25,333 | $ 17,050 |
Deferred Revenue, Additions | 138,684 | |
Deferred Revenue, Revenue Recognized | (130,401) | |
Contract with Customer, Liability, Revenue Recognized | $ 130,400 |
Revenue from Contract with Customer Narrative (Details) $ in Millions |
Dec. 31, 2018
USD ($)
|
---|---|
Revenue from Contract with Customer [Abstract] | |
Remaining credits expected to be issued | $ 1.9 |
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Mar. 31, 2016 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | $ 282,471 | $ 256,851 | $ 260,072 | $ 199,381 | $ 200,081 | $ 183,677 | $ 179,931 | $ 159,409 | $ 998,775 | $ 723,098 | $ 617,391 | |
Quarterly Financial Information Details [Table] | ||||||||||||
Gross profit (loss) | 45,184 | 41,330 | 47,801 | 27,983 | 16,550 | 42,651 | 29,535 | 19,654 | 162,298 | 108,390 | 60,839 | |
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 3,316 | (12,852) | (12,132) | (21,057) | (31,726) | (857) | (7,966) | (4,245) | (42,725) | (44,794) | (225,376) | |
Net income (loss) | 2,732 | (12,056) | (12,153) | (62,763) | (34,974) | (1,338) | (14,619) | (11,252) | (84,240) | (62,183) | (239,393) | |
Net income (loss) attributable to TETRA stockholders | $ 4,932 | $ (6,936) | $ (5,965) | $ (53,648) | $ (28,739) | $ 3,145 | $ (10,991) | $ (2,463) | $ (61,617) | $ (39,048) | $ (161,462) | |
Net income (loss) per share before discontinued operations attributable to TETRA stockholders | $ 0.04 | $ (0.06) | $ (0.05) | $ (0.10) | $ (0.22) | $ 0.03 | $ (0.04) | $ 0.04 | $ (0.16) | $ (0.19) | $ (1.69) | |
Net income (loss) per diluted share before discontinued operations attributable to TETRA stockholders | 0.04 | (0.06) | (0.05) | (0.10) | (0.22) | 0.03 | (0.04) | 0.04 | (0.16) | (0.19) | (1.69) | |
Earnings Per Share, Basic | 0.04 | (0.06) | (0.05) | (0.46) | (0.25) | 0.03 | (0.10) | (0.02) | (0.50) | (0.34) | (1.85) | |
Earnings Per Share, Diluted | $ 0.04 | $ (0.06) | $ (0.05) | $ (0.46) | $ (0.25) | $ 0.03 | $ (0.10) | $ (0.02) | $ (0.50) | $ (0.34) | $ (1.85) | |
Impairment of Long-Lived Assets Held-for-use | $ 2,900 | $ 14,900 | $ 3,621 | $ 14,876 | $ 17,094 | |||||||
Goodwill, Impairment Loss | $ 106,200 | $ 0 | $ 0 | $ 106,205 |
Label | Element | Value |
---|---|---|
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 23,161,000 |
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