TETRA Tech. Expects Q4 Results To Miss Estimates; Stock Down - Update

(RTTNews) - Oil and gas services provider TETRA Technologies Inc. (TTI) said Monday it expects to post a net loss for the fourth quarter and that its adjusted results are indicated miss Wall Street estimates.

The company said fourth-quarter results were chiefly impacted by weakness in its North American production testing operations, customer delays in certain deepwater completion fluids projects in the Gulf of Mexico, inclement weather conditions which delayed decommissioning work on certain Maritech properties.

TETRA also provided a weak guidance for the full year 2014.

Investors were upset with the announcement and TETRA shares slid 4 percent in morning trade on the New York Stock Exchange.

The Woodlands, Texas-based company expects fourth-quarter net loss of $0.15 to $0.13 per share.

Results for the quarter include Maritech and unusual charges totaling $0.25 per share.

Excluding items, the company expects adjusted earnings of $0.10 to $0.12 per share. On average, 13 analysts polled by Thomson Reuters expect earnings of $0.17 per share. Analysts' estimates typically exclude special items.

For fiscal 2014, TETRA expects net earnings of $0.79 to $0.89 per share and adjusted earnings of $0.80 to $0.90 per share, excluding a loss from the winding-down of the Maritech segment. Analysts project earnings of $0.92 per share for the year.

TETRA is expected to release its full fourth-quarter financial results on February 28.

In other news, TETRA announced the acquisition of WIT Water Transfer LLC, d.b.a. TD Water Transfer. The financial terms of the deal were not disclosed.

WIT provides water management services with operational centers in Tilden and Carrizo Springs, Texas, serving the Eagle Ford shale, and in Pecos, Texas, serving the Permian Basin. Established in 2011, WIT is a leading player in the South Texas water transfer business.

In connection with the deal, TETRA has entered into an agreement with Dragon Products that will allow TETRA to expand the range of its water impoundment services for its North American operations. This agreement will allow TETRA to offer Dragon Products systems in 12,000, 24,000 and 42,000 barrel configurations.

Last month, TETRA closed the buyout of its Saudi Arabia joint venture partner, and also completed the acquisition of a privately held water management business based in South Texas. This business augments the company's water management business, within the Fluids Division. The total investment to-date for these two deal was $30 million.

TETRA stock is trading at $9.98, down $0.44 or 4.22%, on a volume of 1 million shares.