TETRA Technologies, Inc. (NYSE:TTI) is considering capital raise options to strengthen its balance sheet. This will help firm to address probable weakness in next year deep water Gulf of Mexico measures and to address the delay of certain assignments from 4Q2016 into early 2017. The deferral in these assignments is projected to result in the firm not being in agreement with one of its debt contracts as of December 31, 2016.
In addition, the firm has acquired an interim arbitration award of $7 million and legal expenses on a long-pending claim. The arbitration panel is projected to rule in 4Q2016 on the amount of legal costs that TETRA should be paid as part of this arbitration procedure. Both awards are projected to be settled in 1H2017.
TETRA Technologies considers it has been proactive in setting for changes in the industry environment by reducing capital expenditures, strengthening its balance sheet and managing its cost structure. It plans to continue taking the measures it believes apt to strengthen company financially as it addresses the timing of specific assignments in what it considers to be a recovering market. The firm plans to pursue opportunities to generate the capital required to strengthen its balance sheet in attempt to capitalize on prospects in the fluids market and bolstering its market position in fluids.
TETRA is a geographically expanded gas and oil services firm, concentrated on completion fluids and associated services and products, frac flowback, water management, offshore rig cooling, production well testing, compression equipment and services, and linked offshore services comprising well plugging and abandonment, diving and decommissioning. TETRA has an equity stake, comprising all of the general associate interest, in CSI Compressco LP (NASDAQ:CCLP), a master limited association.
In the last trading session, the stock price of TETRA Technologies jumped more than 4% to close the day at $4.92. The gains recorded in last trading session has brought the market cap of firm to 472.01 million.