TETRA Technologies, Inc. Announces Strategic Transaction
THE WOODLANDS, Texas, April 7, 2011 - TETRA Technologies, Inc. (TETRA or the Company) (NYSE: TTI) today announced that its wholly-owned Maritech Resources, Inc. subsidiary (Maritech) has entered into an agreement with Tana Exploration Company LLC (Tana), a wholly-owned subsidiary of TRT Holdings, Inc. (TRT), to sell, for approximately $222.25 million, its interests in oil and gas properties that collectively represent approximately 79% of Maritech's total proved reserves and $72 million of associated asset retirement obligations as of December 31, 2010. Closing is expected to occur on or about May 31, 2011, subject to customary closing conditions. The final sale price is subject to customary adjustments at closing.
Stuart M. Brightman, TETRA's President and Chief Executive Officer, stated, "This agreement to sell the vast majority of Maritech's assets along with a significant amount of its associated asset retirement obligations is the culmination of a strategy we have pursued during the past two years. Over this time period, we have been focused on reducing Maritech's decommissioning liabilities through aggressive plug and abandonment (P&A) and decommissioning efforts. At the same time, our selective investment in Maritech's highest return properties, reflected by our recent successes in Timbalier Bay, has improved the value of this business. In February, we announced the sale of certain non-core properties representing approximately 11% of Maritech's proved reserves. These two transactions, together with other recent smaller transactions, will result in combined sales of approximately 92% of Maritech's proved reserves as of December 31, 2010. In addition, we estimate that the collective impact of these transactions will reduce Maritech's remaining asset retirement obligations to between $145 and $150 million, with the majority of the P&A and decommissioning activities anticipated to be completed by the end of 2012.
"In summary, today's announcement confirms our implementation of a broader strategy to reinvest in our growth-oriented service businesses. Although our past 11 years with Maritech have seen many successes, I believe that this is the appropriate, strategic time to divest these assets and associated liabilities. With this sale, we will have achieved our objective of essentially exiting the E&P business since we will be retaining only a small remainder of Maritech's assets, consisting primarily of a backlog of business for our Offshore Services segment. We believe that this sale, in combination with the strength of our balance sheet, will allow us to aggressively pursue opportunities to grow our service businesses going forward," concluded Brightman.
TETRA is a geographically diversified oil and gas services company focused on completion fluids and other products, production testing, wellhead compression, and selected offshore services including well plugging and abandonment, decommissioning, and diving, with a concentrated domestic exploration and production business.
SOURCE TETRA Technologies, Inc.
CONTACT: Stuart M. Brightman of TETRA Technologies, Inc., +1-281-367-1983, fax, +1-281-364-4346
Web Site: www.tetratec.com
