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Home>Investor Relations>Press Releases>2009>Article Print | Bookmark | Email
TETRA News

TETRA Technologies, Inc. Comments on New Arkansas Facility and Associated Agreements

March 19, 2009 (The Woodlands, Texas), TETRA Technologies, Inc. (TETRA or the Company) (NYSE:TTI) updated the progress of its new fluids facility in El Dorado, Arkansas and also commented on the status of its contractual relationship with Chemtura Corporation and its affiliates (Chemtura).

Geoffrey M. Hertel, President and Chief Executive Officer of TETRA, stated, “The start-up of our new facility in El Dorado, Arkansas is currently slightly ahead of schedule, with initial operations expected to commence in the third quarter of 2009, followed by commercial operations in the fourth quarter of 2009. As had previously been announced, in 2006 we entered into a number of agreements with Chemtura relating to our Arkansas operations. On March 18, Chemtura announced that it and twenty-six of its affiliates had filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Although it is impossible to predict the outcome of contractual arrangements as a result of the bankruptcy filings, we do not believe that Chemtura’s filing will have a material impact on our operations. However, TETRA has contingency plans for the procurement of alternative feedstock supplies.

“We believe that the agreements with Chemtura are symbiotic, in that they benefit both parties. We further believe that Chemtura has an incentive to continue our existing agreements and we are optimistic that the bankruptcy filing will not affect our existing arrangements; however, no assurances can be given that the agreements will survive the bankruptcy proceeding. TETRA did not base its Arkansas investment solely on the operations of one third-party plant. If necessary, TETRA potentially can turn to another bromine producer that has a plant in close proximity to our El Dorado facility, as a way to mitigate the impact of any adverse action by Chemtura. Furthermore, starting in the 1990s, TETRA acquired approximately 33,000 gross acres of brine leases in the area. With additional capital expenditures, these leases could allow us to supply our own brine to the facility, if necessary. In summary, while we believe that our agreements with Chemtura are mutually beneficial to the parties and that Chemtura has an incentive to continue our agreements, TETRA does have other options regarding feedstock to our El Dorado fluids plant, should issues arise regarding Chemtura’s ability to supply those feedstocks,” concluded Hertel.
    
TETRA is an oil and gas services company, including an integrated calcium chloride and brominated products manufacturing operation that supplies feedstocks to energy markets, as well as other markets.

This press release includes certain statements that are deemed to be forward-looking statements. These forward-looking statements include statements concerning the development of our new facility in El Dorado, Arkansas and the potential impact of the Chemtura bankruptcy on the operations at our facilities, the alternative supply opportunities which are available, financial guidance, estimated earnings, and other statements regarding our beliefs, expectations, plans, goals, future events and performance, and other statements that are not purely historical. These forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of risks and uncertainties, many of which are beyond the control of the Company. Investors are cautioned that any such statements are not guarantees of future performances or results and that actual results or developments may differ materially from those projected in the forward-looking statements. Some of the factors that could affect actual results are described in the section titled “Certain Business Risks” contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2008, as well as other risks identified from time to time in its reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission.

TETRA Technologies, Inc., The Woodlands, Texas
Geoffrey M. Hertel
281/367-1983
Fax: 281/364-4346
www.tetratec.com


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