TETRA Technologies, Inc. (TETRA or the Company) today withdrew its previous 2008 earnings guidance of $1.30 – $1.55 per share.
Geoffrey M. Hertel, President and Chief Executive Officer, stated, "Hurricanes Gustav and Ike have created significant downtime in our Well Abandonment & Decommissioning (WA&D) Services, Maritech and Fluids businesses. Additionally, Ike destroyed three platforms that have direct implications for Maritech's production operations. While we believe that our platforms are insured, the reduction in our production is material. We also will incur costs of insurance deductibles, among other things.
“WA&D Services, Maritech and offshore Gulf of Mexico Fluids operations have essentially been curtailed since August 30. We incurred no significant damage to any of the WA&D Services fleet of vessels. So, with at least twenty-eight platforms destroyed and many more damaged in Ike, the potential for additional business for WA&D Services is great. As with Rita and Katrina, we expect the evaluation process to take months, and it could take years before some of this work will be undertaken. However, our EPIC Diving subsidiary should see increased utilization as this initial evaluation takes place. Our two primary heavy-lift vessels are moving onto work that was previously scheduled.
“The timing of our Gulf of Mexico Fluids operations is dictated by our customers. It is possible that many of our customers may be preoccupied with damaged structures, and therefore new completions operations may be postponed.
“Maritech lost two platforms to Ike and it is also affected by the loss of a third-party platform. Maritech is the 50% working interest owner of a number of producing wells on East Cameron (EC) 328. The "A" platform, with about half the producing wells and the production facilities was destroyed. Until we can devise a way to flow the "B" platform wells to another production platform, it will remain shut-in. Maritech also lost the living quarters and production platform (no currently producing wells were lost) for its South Marsh Island (SMI) 48 field. In addition, Maritech has a 50% interest in wells on Ship Shoal (SS) 219. Production from this field flowed to a third-party production platform, which was also destroyed. Estimated net production losses from these three properties is 1,700 B/D of oil and about 3.0 MMCF/D of natural gas. It is too early to determine whether we can find other facilities to flow to, for EC 328 "B", SS 219 and SMI 48. While we have re-drill insurance for EC 328 "A" wells, it will take months to determine what we intend to do. Therefore, we will not have the ability to predict when or if this production from EC 328 "A" can be reestablished, possibly for months.
“Hopefully, by November 7, when we report our third quarter results, we will be able to give you further details on the items discussed in this press release. Today is the first day that our Woodlands headquarters has had power since Hurricane Ike and we are trying to bring operations up as fast as possible. If you are trying to contact us, our e-mail system is the most reliable method, as many people have been working out of their homes (if they have power),” 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.
Contact:
TETRA Technologies, Inc.
Geoffrey M. Hertel, 281-367-1983
Fax: 281-364-4346
www.tetratec.com
Source: TETRA Technologies, Inc.
Geoffrey M. Hertel, President and Chief Executive Officer, stated, "Hurricanes Gustav and Ike have created significant downtime in our Well Abandonment & Decommissioning (WA&D) Services, Maritech and Fluids businesses. Additionally, Ike destroyed three platforms that have direct implications for Maritech's production operations. While we believe that our platforms are insured, the reduction in our production is material. We also will incur costs of insurance deductibles, among other things.
“WA&D Services, Maritech and offshore Gulf of Mexico Fluids operations have essentially been curtailed since August 30. We incurred no significant damage to any of the WA&D Services fleet of vessels. So, with at least twenty-eight platforms destroyed and many more damaged in Ike, the potential for additional business for WA&D Services is great. As with Rita and Katrina, we expect the evaluation process to take months, and it could take years before some of this work will be undertaken. However, our EPIC Diving subsidiary should see increased utilization as this initial evaluation takes place. Our two primary heavy-lift vessels are moving onto work that was previously scheduled.
“The timing of our Gulf of Mexico Fluids operations is dictated by our customers. It is possible that many of our customers may be preoccupied with damaged structures, and therefore new completions operations may be postponed.
“Maritech lost two platforms to Ike and it is also affected by the loss of a third-party platform. Maritech is the 50% working interest owner of a number of producing wells on East Cameron (EC) 328. The "A" platform, with about half the producing wells and the production facilities was destroyed. Until we can devise a way to flow the "B" platform wells to another production platform, it will remain shut-in. Maritech also lost the living quarters and production platform (no currently producing wells were lost) for its South Marsh Island (SMI) 48 field. In addition, Maritech has a 50% interest in wells on Ship Shoal (SS) 219. Production from this field flowed to a third-party production platform, which was also destroyed. Estimated net production losses from these three properties is 1,700 B/D of oil and about 3.0 MMCF/D of natural gas. It is too early to determine whether we can find other facilities to flow to, for EC 328 "B", SS 219 and SMI 48. While we have re-drill insurance for EC 328 "A" wells, it will take months to determine what we intend to do. Therefore, we will not have the ability to predict when or if this production from EC 328 "A" can be reestablished, possibly for months.
“Hopefully, by November 7, when we report our third quarter results, we will be able to give you further details on the items discussed in this press release. Today is the first day that our Woodlands headquarters has had power since Hurricane Ike and we are trying to bring operations up as fast as possible. If you are trying to contact us, our e-mail system is the most reliable method, as many people have been working out of their homes (if they have power),” 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.
Contact:
TETRA Technologies, Inc.
Geoffrey M. Hertel, 281-367-1983
Fax: 281-364-4346
www.tetratec.com
Source: TETRA Technologies, Inc.
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