TETRA TECHNOLOGIES, INC. ANNOUNCES COLLABORATION FOR PRODUCED WATER RE-USE AND PILOT PROJECT WITH EOG RESOURCES

Rhea-AI Summary

TETRA Technologies (NYSE: TTI) has announced a pilot project with EOG Resources utilizing TETRA Oasis Total Desalination Solution (TDS) for produced water treatment from oil and gas wells. The project, starting in first half 2025 in the Permian Basin, includes a rangeland grass growth study using processed water.

The technology has previously demonstrated a 92% recovery rate of desalinated water with total dissolved solids levels of 40-200 ppm in South Texas, exceeding average municipal drinking water standards. TETRA Oasis TDS incorporates proprietary treatment processes and exclusive membrane technologies designed for various produced water qualities across different oil and gas basins.

Positive

• Successful demonstration of 92% water recovery rate, exceeding municipal standards
• Strategic collaboration with major oil company EOG Resources
• Proprietary technology with proven field results
• Expansion into sustainable water treatment solutions

Negative

• Project still in pilot phase with uncertain commercial outcomes
• Technology deployment and scaling risks mentioned in forward-looking statements
• Potential equipment supply chain and defect risks highlighted

Insights

Environmental Technology Expert

TETRA's Oasis Total Desalination Solution represents a significant technological advancement in produced water treatment. The 92% recovery rate achieved in their South Texas pilot is exceptional, producing water with total dissolved solids of 40-200 ppm - surpassing typical municipal drinking water standards.

This technology addresses a critical challenge in oil and gas operations where produced water management represents both an environmental liability and substantial operational cost. The proprietary membrane technology appears to overcome the persistent fouling issues that have other treatment approaches in high-TDS oilfield water.

The upcoming Permian Basin pilot is strategically important as this region generates among the highest water-to-oil ratios in North America, with some wells producing 7-10 barrels of water per barrel of oil. The rangeland grass study signals a potential pathway to beneficial reuse beyond just industrial applications, which could significantly enhance the technology's commercial appeal.

If scaled successfully, this solution could transform produced water from a disposal liability into a valuable resource while reducing freshwater consumption in water-stressed regions. The collaboration with EOG Resources - known for operational excellence - provides a high-credibility testbed. The technology's potential extends beyond just cost savings into ESG compliance advantages as regulatory pressures around water management intensify.

Energy Industry Analyst

This partnership with EOG Resources - one of the largest independent oil producers in the U.S. - validates TETRA's water treatment technology in a competitive landscape. The progression from initial field testing to a formal pilot project demonstrates meaningful commercial advancement.

The Permian Basin application is particularly strategic as water management costs can reach $1-2 per barrel in this region, with some operators spending 30-40% of well operating expenses on water handling. TETRA's ability to deliver water suitable for agricultural use potentially creates additional revenue streams beyond standard disposal or industrial reuse.

This development aligns with TETRA's strategic pivot toward environmental solutions and critical minerals - higher-margin businesses compared to traditional oilfield services. The company's emphasis on commercializing technology that addresses both environmental and operational challenges positions them advantageously as the industry faces increasing water management constraints.

While this pilot project won't immediately impact TETRA's revenue significantly, successful demonstration could accelerate adoption across EOG's extensive operations and attract other major producers. The technology's exclusivity and proprietary aspects strengthen TETRA's competitive position in the specialized water treatment market. The pilot represents a meaningful step in TETRA's transformation from conventional oilfield service provider to environmental solutions company.

THE WOODLANDS, Texas, March 27, 2025 /PRNewswire/ -- TETRA Technologies, Inc. ("TETRA" or the "Company") (NYSE: TTI) today announced a pilot project with EOG Resources, Inc. ("EOG") using TETRA Oasis Total Desalination Solution ("TDS"), an end-to-end water treatment and desalination solution for re-use and mineral extraction applications for produced water from oil and gas wells.  TETRA's solution includes a proprietary treatment process integrated with TETRA's exclusive membrane technologies to address the wide range of produced water quality from different oil and gas basins.  TETRA Oasis TDS has successfully demonstrated in the field the ability to deliver a water quality that achieves or exceeds relevant regulatory requirements in a cost-effective manner for multiple re-use applications, including surface irrigation and industrial uses.

Brady Murphy, TETRA's President and Chief Executive Officer said, "For the past few years we have been working closely with EOG Resources, including our first field pilot program over two years ago, where we successfully treated produced water in South Texas.  We achieved 92% recovery rate of desalinated water with total dissolved solids levels ranging from 40 parts per million ("ppm") to 200 ppm, which are better than the average municipal drinking water standards. We are very pleased with our collaboration and the ability to bring such an important solution to the industry."

As a result of our continued collaboration, TETRA and EOG are commencing a pilot project where TETRA Oasis TDS will be used to process produced water from the Permian Basin.  The pilot project will start in the first half of 2025 and includes a rangeland grass growth study in a greenhouse using TETRA Oasis TDS processed water. 

Company Overview
TETRA Technologies, Inc. is an energy services and solutions company focused on developing environmentally conscious services and solutions that help make people's lives better. With operations on six continents, the Company's portfolio consists of Energy Services, Industrial Chemicals, and Critical Minerals. In addition to providing products and services to the oil and gas industry and calcium chloride for diverse applications, TETRA is expanding into the low-carbon energy market with chemistry expertise, key mineral acreage, and global infrastructure, helping to meet the demand for sustainable energy in the twenty-first century. Visit the Company's website at www.onetetra.com for more information or connect with us on LinkedIn.

Cautionary Statement Regarding Forward Looking Statements
This news release includes certain statements that are deemed to be forward-looking statements. Generally, the use of words such as "may," "see," "expectation," "expect," "intend," "estimate," "projects," "anticipate," "believe," "assume," "could," "should," "plans," "targets" or similar expressions that convey the uncertainty of future events, activities, expectations or outcomes identify forward-looking statements that TETRA intends to be included within the safe harbor protections provided by the federal securities laws. These forward-looking statements include statements regarding TETRA's 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 TETRA 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 TETRA. Factors which may cause actual results to differ materially from current expectations include, but are not limited to: changes adversely affecting the business in which we are engaged; our ability to forecast trends accurately; our ability to generate cash, service indebtedness and incur additional indebtedness; our ability to develop efficient water treatment processes to scale and to forecast related costs and efficiencies accurately; fluctuations in our revenue and operating results; regional impacts to our business, equipment supply, equipment defects and/or our ability to timely obtain equipment components; competition from existing or new competitors, including advances in water handling and processing technologies; the failure to convert firm order backlog to revenue; opportunity risks, such as mineral extraction or realizing industrial and other benefits expected from using treated produced water; risks associated with security breaches in our information technology systems; risks related to legal proceedings or claims, including liability associated with environmental claims; risks associated with changes in federal, state, or local laws, including interpretations of laws and regulations applicable accessing, handling and processing produced water; risks associated with potential costs of regulatory compliance; risks associated with delays in obtaining or maintaining necessary permits, including our customers' ability to obtain such permits and approvals; risks associated with changes to U.S. trade policies; risks resulting from the impact of global pandemics,; and risks related to adverse changes in general economic conditions. Moreover, TETRA operates in a very competitive and rapidly changing environment, and new risks and uncertainties may emerge that could have an impact on the forward-looking statements contained in this press release. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and, except as required by law, TETRA assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. The forward-looking statements contained in this press release are also subject to additional risks, uncertainties, and factors, including those more fully described in TETRA's most recent filings with the Securities and Exchange Commission, including TETRA's most recent Annual Report on Form 10-K and subsequent reports on Forms 10-Q and 8-K.

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SOURCE TETRA Technologies, Inc.

FAQ

What recovery rate did TETRA's water treatment technology achieve in South Texas?

TETRA's Oasis TDS achieved a 92% recovery rate of desalinated water with total dissolved solids levels between 40-200 ppm in South Texas.

When will TTI's new Permian Basin pilot project with EOG Resources begin?

The pilot project will commence in the first half of 2025.

What is the purpose of TETRA's Oasis TDS technology?

It's an end-to-end water treatment and desalination solution for re-use and mineral extraction from oil and gas well produced water.

What specific study is included in TTI's Permian Basin pilot project?

The pilot project includes a rangeland grass growth study in a greenhouse using TETRA Oasis TDS processed water.