Logo of jester cap with thought bubble.

Image source: The Motley Fool.

DATE

Thursday, April 30, 2026 at 10:30 a.m. ET

CALL PARTICIPANTS

  • President & Chief Executive Officer — Brady Murphy
  • Chief Financial Officer & Senior Vice President — Matt Sanderson

Need a quote from a Motley Fool analyst? Email [email protected]

TAKEAWAYS

  • Total Revenue -- $156 million, representing a ten-year high when excluding the Gulf of America Neptune project benefit in the prior year.
  • Adjusted EBITDA -- $26 million, also setting a ten-year first-quarter record on the same basis.
  • Completion Fluids & Products Revenue -- $92 million, up 13% sequentially from Q4 2025 and 15% year over year.
  • Completion Fluids & Products Adjusted EBITDA -- $26 million, increasing 12% over Q4 2025 but down 3% year over year.
  • Water & Flowback Services Revenue -- $65 million, up 3% sequentially and 1% year over year, despite a 24% decline in U.S. frac fleets year over year.
  • Water & Flowback Adjusted EBITDA -- $9 million, up 20% sequentially and 9% year over year.
  • Brazil and Gulf of America -- Both regions achieved ten-year highs in first-quarter revenue and adjusted EBITDA, excluding Neptune work.
  • International Production Testing Revenue -- Surpassed 50% of total production testing subsegment revenue for the first time in ten years.
  • Capital Expenditures -- $19 million, with $8.4 million allocated to the Arkansas bromine project.
  • Free Cash Flow -- Adjusted free cash flow was a use of $32 million, with base business adjusted free cash flow a use of $23.5 million, mainly due to incentive compensation, AR buildup, and seasonal inventory increases.
  • Balance Sheet -- Ended the quarter with $36 million in cash, $182 million in total debt, and a net leverage ratio of 1.5x.
  • Bromine Project Status -- The Arkansas bromine plant remains on schedule and on budget, with phase two underway, phase three targeted for 2027, and first production expected in early 2028; designed capacity is up to 75 million pounds per year.
  • Guidance -- Management reaffirmed 2026 outlook for single-digit revenue growth, completion fluid margins of 25%-30%, and Water & Flowback margins in the mid-teens.
  • Geographic Exposure -- Middle East revenues represented about 5%, with expected activity reductions offset by strength in the U.S., Europe, and Latin America.
  • Neptune Deepwater Projects -- No Neptune work in the period, but management reported a growing pipeline of deepwater and high-pressure, high-temperature completion opportunities.
  • OASIS TDS Desalination Pilot -- Permian Basin pilot achieved over 96% uptime since reaching steady-state 60 days ago, maintaining performance standards.
  • Magnesium JV -- Formation of a joint venture with Magrathea Metals for magnesium production, with successful pilot conversion of TETRA Technologies’ brine to high-purity magnesium metal.
  • Lithium Resources -- TETRA Technologies holds 65% mineral rights to the 6,900-acre Evergreen brine unit in Arkansas, with current lithium carbonate prices of about $25,000 per metric ton supporting acceleration efforts.
  • Bromine Supply Chain -- All chemical manufacturing is in the U.S. and Europe, utilizing Arkansas-sourced bromine, limiting Middle East supply risks.
  • Customer Activity Trends -- Higher oil prices are prompting incremental customer consideration of increased 2026 project activity.

SUMMARY

TETRA Technologies (TTI 1.50%) management emphasized that both operational scale and margin performance set decade-high benchmarks across major geographies and product lines, with industrial chemicals and production testing subsegments also reaching ten-year revenue highs. Strategic updates included ongoing construction of the Arkansas bromine plant, expansion into energy storage markets via proprietary zinc bromide electrolytes, and deepening international diversification, especially in Argentina and the Gulf of America. Customer interest for OASIS TDS desalination and magnesium production JV initiatives intensified, while new spot sales opportunities emerged from global disruptions in Middle East bromine supply. Dialogue highlighted that TETRA Technologies’ resource position secures multi-mineral optionality for future lithium, magnesium, and bromine extraction, with capital investments prioritized toward near-term bromine capacity. Management maintained full-year guidance despite acknowledged market uncertainty and confirmed proactive engagement in regulatory, engineering, and customer processes on multiple innovation fronts.

  • CEO Murphy reported, “operational and financial fundamentals for each of our segments and many of our subsegments are improving, even before the benefit of current elevated oil prices and potential increased customer spending activity.”
  • The Arkansas magnesium JV will locate its demonstration facility adjacent to the evergreen bromine project, leveraging TETRA Technologies’ chemical assets and Magrathea Metals’ technology.
  • “international production testing revenue was over 50% of the total PT subsegment revenue.” according to company commentary, indicating sustained global diversification.
  • CFO Sanderson stated, “project startups in the Vaca Muerta Basin will enable us to double revenue in Argentina in 2026 at margins that are overall accretive to this segment.”
  • Production wells for bromine extraction also yield lithium and magnesium, enabling future vertical integration from the same upstream investment.
  • No fresh financials or capital allocation detail was disclosed for lithium or magnesium projects, but management confirmed synergy and prioritization of bromine infrastructure buildout.

INDUSTRY GLOSSARY

  • Neptune Project: TETRA Technologies’ proprietary deepwater completion fluid technology package designed for high-pressure, high-temperature well environments, particularly in the Gulf of America.
  • OASIS TDS: TETRA Technologies’ Total Dissolved Solids end-to-end desalination technology for industrial-scale treatment and reuse of produced water in oil and gas operations.
  • SandStorm: TETRA Technologies’ automated sand management technology used in production testing to improve operational efficiency and reduce mechanical failures.
  • Evergreen Unit: The 6,900-acre brine resource in Southwest Arkansas where TETRA Technologies holds majority mineral rights for bromine, lithium, and magnesium extraction.
  • Vaca Muerta Basin: A prolific shale oil and gas region in Argentina, serving as a key geography for TETRA Technologies’ international production testing and service growth.

Full Conference Call Transcript

Brady Murphy: Welcome to TETRA Technologies, Inc.’s first quarter 2026 earnings call. I will walk through the very positive first quarter highlights, TETRA’s position in this uniquely uncertain time, and the progress towards our 2030 targets before turning it over to Matt to cover more detailed financials and the balance sheet. Despite the backdrop of one of the most tumultuous periods in the history of the oil and gas industry, we started 2026 with one of the strongest first quarter performances in the company’s past ten years.

If we exclude the benefit of the Gulf of America Neptune project in the first quarter of last year, revenue of $156 million and adjusted EBITDA of $26 million were ten-year highs, as were the first quarter results for both Brazil and the Gulf of America. In addition, the industrial chemicals and production testing subsegments each delivered ten-year high revenues with strong margin contributions. What encourages us most about our results is that the operational and financial fundamentals for each of our segments and many of our subsegments are improving, even before the benefit of current elevated oil prices and potential increased customer spending activity.

At current oil prices, we anticipate offshore projects could be pulled forward and unconventional activity in the U.S. will eventually respond. Combined with the significant growth opportunities laid out in our One TETRA 2030 strategy, which we will update later on our call, we feel very good about how TETRA is positioned for 2026 and the coming years. Regarding the ongoing conflict in the Middle East, and given that this region has historically accounted for about 5% of the company’s revenue, we do not expect an overall negative impact on our financial results.

That is because what we have seen so far is activity in our core business regions of the U.S., Europe, and Latin America will likely offset any reductions that may occur in our Middle East business. This applies to our supply chain as well, since all of our chemical manufacturing plants are located in the United States and Europe, and our elemental bromine is sourced from Arkansas, which is also the location of our critical minerals resources. Over the longer term, it remains to be seen how developments in the Persian Gulf and the Middle East will impact the global oil and gas markets and our business.

In general, we believe it could boost investment in U.S. and international unconventional activity and provide tailwinds to an already robust offshore and deepwater outlook. Completion Fluids and Products, our industrial chemicals business, had a record-setting first quarter with revenue up 15% year over year and 13% quarter over quarter. For the first time since 2021, when energy services were suppressed due to COVID-19, it accounted for over 50% of total first quarter segment revenue. Higher-pressure gas plays in South Texas and the Western Haynesville supporting Gulf Coast LNG plants are driving higher volumes of higher-value completion fluids. Increasing pressures in West Texas due to disposal well pore space are also contributing to higher-density fluids for well workovers.

Looking forward, we are well positioned heading into our traditional European seasonal second quarter peak. Q1 revenue and adjusted EBITDA in Brazil were at a ten-year high. Although we did not execute any Neptune jobs, our first quarter fluids business in the Gulf of America, excluding Neptune work in the first quarter of last year, also recorded a ten-year high in revenue and adjusted EBITDA. Regarding Neptune projects, we are very encouraged by the growing pipeline. The trend toward deeper, hotter wells in the Gulf of America continues, as evidenced by very strong first quarter revenues for our highest-density zinc bromide completion fluid.

The Water and Flowback business, despite U.S. frac fleets down 24% year over year and a slow January due to freezing weather, delivered overall revenue up 1% year over year and 3% quarter over quarter. Our production testing subsegment reached a ten-year high in Q1 revenue as our automated SandStorm technology continues to gain market share across the unconventional land operations in the U.S., Argentina, and the Middle East. Our strategy to grow this segment internationally has been successful, and for the first time in the last ten years, international production testing revenue was over 50% of the total PT subsegment revenue. Looking ahead to the rest of 2026, significant uncertainty remains for oil and gas prices.

However, given our geographic footprint, we believe any headwinds from the Middle East will be offset by strength of our other geographies. We expect to gain further clarity on customer activity offshore and outside of the Middle East as we move through the second quarter. For now, we are maintaining our prior 2026 guidance of single-digit revenue growth over 2025 with completion fluid margins between 25-30% and Water and Flowback in the mid-teens. Turning to our strategic progress towards our One TETRA 2030 objectives: At our Investor Day last September, we outlined a clear strategic path for the company.

Although much has changed in the world since that event, our view of the company’s key growth trajectories across deepwater, specialty chemicals, electrolytes for battery energy storage, critical minerals, and desalination of produced water has strengthened. We expect bromine demand to support our deepwater completion fluids and battery storage electrolytes to double by 2030, driving the need for and reliable access to cost-effective bromine, a critical feedstock. This has become more evident with the current events in the Middle East, as well over 50% of the global bromine supply comes from that region. Our bromine plant project in Southwest Arkansas continues to proceed on time and on budget.

Phase two of the project is underway with phase three slated for 2027, and first production at the start of 2028. The plant is designed to have an annual capacity of up to 75 million pounds, more than double our existing long-term third-party supply agreement. TETRA’s electrolyte revenue grew meaningfully in 2025, as U.S. Energy Information Administration reports that a record 15 gigawatts of utility-scale battery storage was added to the grid in 2025. The EIA projects another record 24 gigawatts planned for 2026, representing a 60% growth rate. As artificial intelligence and cloud computing drive rapid growth in data center power demand, scalable long-duration energy storage is becoming increasingly critical.

TETRA’s proprietary PureFlow zinc bromide is a key input for these systems, supporting safe, nonflammable performance at utility scale. TETRA’s OASIS TDS end-to-end desalination of produced water for reuse continues to gain momentum, with multiple engineering efforts and customer commercial engagements. Since achieving 24/7 steady-state operations 60 days ago, our Permian Basin pilot project has operated at over 96% uptime and continues to meet our performance specifications. We believe that behind-the-meter power generation, access to affordable natural gas and land, and other factors will drive significant data center growth in West Texas and accelerate the produced water desalination market well ahead of our 2030 targets.

Regulatory agencies continue to focus on understanding the technology, setting permitting standards, and encouraging the industry to bring solutions to the produced water disposal challenge. TETRA is honored to participate in the National Petroleum Council produced water committee and to support the recently announced U.S. Environmental Protection Agency Reuse Action Plan 2.0. Regarding TETRA’s lithium and magnesium critical mineral resources in Arkansas, we continue to advance relationships with technology providers and conduct engineering studies. We have formed a joint venture with Magrathea Metals to advance domestic magnesium metal production and monetize this asset.

The JV will leverage our specialty chemical processing expertise and large-scale magnesium resource base combined with Magrathea’s proprietary electrolytic magnesium production technology, which has been partially underwritten by the U.S. Department of War. In April, Magrathea successfully converted TETRA’s MacOver brine, rich in magnesium, into a high-purity magnesium metal at its small pilot operation in the San Francisco Bay Area. The JV, named Arkansas Magnesium, is currently conducting engineering studies for a first-of-a-kind demonstration plant planned for co-location at the Evergreen Bromine site in Arkansas. For lithium, a strong rebound in lithium carbonate prices over the past six months has led us to look at options to accelerate the development of our Evergreen 585,000 metric ton lithium carbonate resources.

As a reminder, Evergreen is a 6,900-acre brine unit in Southwest Arkansas on which TETRA owns 65% of the brine mineral rights and ExxonMobil owns 35%. The combination of current LCE prices of around $25,000 per metric ton and efficiency advances in direct lithium extraction technology are making this a very attractive option to accelerate. More to come as we look at ways to advance this opportunity. With that, I will turn the call over to Matt.

Matt Sanderson: Thank you, Brady. Good morning, everybody. Completion Fluids and Products revenue of $92 million and adjusted EBITDA of $26 million increased 10-12%, respectively, relative to Q4 2025. The sequential increase was driven by higher sales volumes in our industrial chemicals business and ongoing deepwater projects in the Gulf of America and Brazil that Brady referenced earlier. Year over year, Completion Fluids and Products revenue and adjusted EBITDA decreased 12-3%, respectively. As a reminder, our first half 2025 results included high-impact TETRA Neptune projects we previously noted we do not expect to repeat in the first half of this year. That said, the pipeline of deepwater and high-pressure, high-temperature completion opportunities continues to grow.

With our best-in-class service delivery and unique fluid chemistry solutions, we are well positioned to participate in the forecasted growth in offshore deepwater activity. As Brady mentioned earlier, geopolitical unrest in Europe and the Middle East has led to a rapid shift in global market dynamics. As a result, offshore activity in the Middle East has slowed, and logistics into the region continue to face higher costs and shipping delays. Our exposure in the region is relatively small compared with our overall business, but some of our Q2 2026 completion fluid sales in the Middle East could be delayed. However, as mentioned, our calcium chloride and bromine-based completion fluids are manufactured outside the Middle East.

As such, our fluid production has been unaffected, and we are seeing an increased number of spot sales inquiries from regions and customers we have not historically supported, which could more than offset any delays. For Water and Flowback Services, revenue of $65 million increased 3% sequentially and 1% year over year. To put our performance in context, during the same twelve-month period, U.S. frac activity declined more than 24% year over year. Adjusted EBITDA of $9 million increased 20% sequentially and 9% from the prior year. The improvement in profitability was driven by cost reduction initiatives and continued market penetration of higher-margin automation technology.

Outside the U.S., project startups in the Vaca Muerta Basin will enable us to double revenue in Argentina in 2026 at margins that are overall accretive to this segment. Compared with the broader market conditions, our outperformance highlights the strength of our service delivery, our differentiated technology, and our geographical diversification. As commodity prices have increased, and a twelve-month strip price remains above what the market projected at the start of this year, we are seeing our customers consider increasing their activity plans for 2026. Should this occur, we are well positioned to incrementally benefit from any increase in activity in U.S. shale basins that may result from higher oil and gas prices.

Regarding our capital structure, we had $36 million in cash and total debt of $182 million at the end of the quarter, resulting in a net leverage ratio of 1.5x. Cash used in operating activities was $12 million. Total CapEx was $19 million, including $8.4 million for our Arkansas bromine project. Total adjusted free cash flow was a use of $32 million and base business adjusted free cash flow was a use of $23.5 million. The use of cash was driven by higher incentive compensation tied to our strong 2025 financial results, our three-year return on net capital invested, and our exceptional total shareholder return performance.

Cash use also reflected a build in our AR balance at the end of the quarter, and the seasonal inventory builds in Europe, which will be monetized in Q2. We expect to generate positive base business free cash flow in 2026, with that cash being reinvested in our Arkansas bromine plant. Overall, we are off to a strong start and remain confident in our ability to deliver solid financial results this year while continuing to advance towards our 2030 targets. The global market conditions continue to evolve, but overall, they are providing modest tailwinds for the markets that we serve. I will now turn the call back to Brady for his closing comments.

Brady Murphy: Thanks, Matt. Again, despite the continued uncertainty caused by the conflict in the Persian Gulf, the long-term outlook for our business appears to be even better than when we had started the year in 2026. Overall, we are very confident in TETRA Technologies, Inc.’s ability to execute in these market conditions, make prudent financial decisions to support our growth, and continue to make progress towards our 2030 targets. With that, we will now open the call for questions.

Operator: At this time, if you would like to ask a question, press star followed by the number one. Your first question comes from Bobby Brooks with Northland Capital Markets.

Bobby Brooks: Hey, good morning. Thank you for taking my question. It seems like OASIS commercial discussions are progressing well, and what really stuck out to me in the script was the “multiple engineering efforts and customer commercial engagements.” Could you pull back the curtain a little bit more about what that looks like, and add some comparison to what that looked like at the start of the year or six months ago?

Brady Murphy: Good morning. Sure, Bobby, appreciate the question. We are very encouraged with the ongoing dialogue that we have. Remember, we mentioned in our last call that we were engaging in a 100,000 barrels per day plant. We actually now have several parallel engineering studies going on for a smaller-sized plant as well as a 100,000 barrels per day plant. Those engineering studies take time, and we are still on track to have what we need from those projects to get into more commercial discussions with our customers before the end of the second quarter.

We are encouraged by what we see from the preliminary engineering studies in terms of OpEx and CapEx and socializing some of those discussions with customers, but we still have a ways to go to finish those efforts, and we will continue to do so. We are in the middle of engineering studies that we will need to complete before we can really get into any long-term contracts, Bobby. Thanks, Bobby.

Bobby Brooks: Got it. And then on the customer discussion side, it seems like since the Investor Day there have been more folks reaching out, wanting to hear about the technology and learn more. Is that trend still continuing? Any color on that dynamic?

Matt Sanderson: Yeah, Bobby, this is Matt. Absolutely. We cannot disclose the customers that we are engaged with, but those engagements, dialogues, and engineering studies, like Brady referenced, have increased. And as you say, you picked up on the fact that it is not one engineering effort. This is from different customers and multiple opportunities. We are very encouraged. We are also very encouraged by the performance of our technology, our patented OASIS offering, and the economics associated with it. I think, as you are well aware, some of the challenges with disposal and the costs associated with disposal continue to rise.

As we continue through our engineering efforts, we are able to demonstrate that the TETRA OASIS solution is, in our view, very cost competitive with alternatives.

Operator: Your next question comes from Martin Malloy with Johnson Rice.

Martin Malloy: Good morning, and congratulations on a solid quarter. My first question is on the deepwater side. I know there are no Neptune projects in your 2026 guidance. Can you talk about what you are seeing in terms of conversations with customers for deepwater completion fluids, and particularly with respect to Neptune potential projects in the second half of this year or next year?

Brady Murphy: Sure, Marty. We have been feeling good about the deepwater outlook going back to our Investor Day when we outlined strong compound annual growth as we march towards 2030. I would say the recent events have only strengthened that outlook. As you look at cutting off the amount of oil that is currently happening in the Middle East, projects that were already looking very strong financially for our customers are being evaluated for what can be pulled forward. We are hearing some of that churn. We actually picked up work outside of the Middle East that we have seen already will offset whatever impact we see from our Middle East business, even though it is roughly 5% of our revenue.

We have seen opportunities already well overcompensate that potential loss. So yes, we are seeing some churn in that regard, but it has already been a strong outlook in terms of our base business deepwater completion fluids. Regarding Neptune, as we said, the pipeline continues to grow. The wells are getting hotter and more challenging. Zinc is still an option in the Gulf of America, but it has its own challenges as you get hotter with corrosion and as you deal with production facilities. We are seeing that pipeline continue to grow, and we are also seeing opportunities outside of the Gulf of America continue to build.

You may or may not see a Neptune project this year, but I would say the probabilities for next year are continuing to increase pretty significantly.

Martin Malloy: Great. Very helpful. And a follow-up: in your press release, you talked about evaluating options to accelerate lithium and magnesium development. Is there more you can share now? Would that be in conjunction with accelerating the bromine project, is it dependent on that, or is this separate, related to the Exxon joint venture?

Brady Murphy: We are accelerating the bromine project at the fastest pace we can. That project is our priority, and we will prioritize that project to have completion by 2027 and start in 2028. The benefit is that all the upstream—brine wells, pipelines, and some of the pretreatment plant capabilities to take out H2S from the brine field—will be in place for whatever additional plants we put on that site. As we mentioned, we are currently doing engineering studies and plan to put a demonstration plant for the magnesium JV with Magrathea, and we have already done quite a bit of engineering for a lithium plant that will be on the same site.

That will benefit from a lot of the infrastructure and investments that we have already made for bromine, so there are a lot of synergies. We are not ready to publish any financial information on those projects yet, but as we move forward, you can anticipate we will at the appropriate time.

Operator: Your next question is from Tim Moore with Clear Street.

Tim Moore: Thanks. My first question is about battery energy storage. EOS has had some supply/manufacturing hiccups, which seem temporary. Do you get a rolling update on that, and do you have enough feed supply for electrolytes to quickly get it to them if they start ramping up more seriously after the summer? How are you thinking about that logistically on the supply side?

Brady Murphy: Yeah, Tim, we do not want to comment or forecast ahead of EOS, but we are very plugged into their forecasts so we can plan for not only the bromine but the full electrolyte production that we need to produce. We do have good visibility into that, but we cannot talk about specifics. As we have mentioned before, in addition to our long-term supply agreement, we have secured additional third-party bromine supply that is in place to meet the forecasts we are getting from EOS. That is not a concern.

Once we have our own plant operating in 2028, if they continue their path to the 8 gigawatt-hours of production they have stated publicly, we will be in a great position to supply their requirements and the deepwater growth we have projected.

Tim Moore: That is helpful, Brady. Switching gears, on the Arkansas bromine project, it was nice to hear production still expected early 2028. Could you walk us through some of the next construction milestones, and where you would anticipate CapEx to uptick in the coming quarters?

Brady Murphy: Sure, I will take that one, and Matt can add anything. The project is on schedule. We completed phase one. Phase one was important because standing the bromine tower up on-site was a logistics challenge. It is a large 130-foot titanium structure. Having that up and secured was a really important milestone. A lot of the actual on-site construction around the bromine tower, the pipelines from upstream, and the pretreatment still have to be constructed. Yes, there will be more construction activity in 2027-2028.

We are projecting good cash flows for the rest of this year and 2027, so we are looking to finance as much of that as we can from our free cash flow, and if we do need additional capital, we have very good options available. For now, we are funding from our cash flow, and that is the plan.

Operator: Your next question comes from Analyst with Stifel.

Analyst: Hey, it is Pat on for Stephen Gengaro. Thanks for taking the questions. Could you talk about the opportunity you have for magnesium production, including any sense you have for demand and any color on the joint venture? I believe I saw the JV partner referenced 7,000 tons per year by 2029.

Brady Murphy: We are having ongoing discussions. We have finalized the joint venture, which is great. We had our first formal board meeting a week or so ago. We really like this technology. As you are probably aware, the U.S. really does not produce any magnesium. The world is heavily dependent on China for magnesium production. Being on the critical minerals list, it has the attention of the current administration and the Department of War. It is a little premature to state how large the first commercial plant will be; we are having discussions along those lines.

We will have plenty of brine flow to make the plant as large as we want, but there are other considerations like offtake agreements well ahead of time and potential government funding support. The demonstration plant will be small-scale to prove out the technology. For commercial scale, we have not made any final determinations yet.

Analyst: Okay, thanks for the color. Shifting gears a bit, thinking about fluids, it seems like the timing of completions versus rig activity in deepwater would lead to maybe sharply higher 2027 fluids demand. Is that reasonable, and any way you would translate deepwater rig additions to the demand?

Matt Sanderson: Patrick, on the earnings call back in February, we gave some soft guidance around what to expect in Completion Fluids and Products this year. We highlighted that we came off a very strong performance in 2025, where a lot of the rigs in the markets we serve were in completion activity, and then we guided that we expected those rigs to move into more drilling activity in 2026, shifting back to 2027 for higher completion activity like you referenced. As Brady touched on, the geopolitical events highlight global demand and where that demand is fulfilled. We are seeing projects coming online, FIDs, and leasing activity.

These tend to be deeper, hotter, more challenging environments requiring higher-density brines and more exotic chemistries, which plays to TETRA’s strength. We are very pleased with what we are seeing already in 2026—modest tailwinds and a strong Q1—and we expect that 2027 completion activity, and the type of completion activity, will really benefit TETRA.

Operator: Your next question is from Analyst with CJS.

Analyst: Good morning. Thank you for taking my questions. My first one is: could you talk about your partner’s lithium project FID status and whether you may need to pursue your own investments there to keep the bromine project on time? And if you do decide to drill your own wells, would that be feeding into your own production endeavors if you want to accelerate that?

Brady Murphy: Let me clarify. The wells that we drill in the upstream for the brine contain lithium, bromine, and magnesium. All three minerals are within the same brine. The wells we will be drilling for our bromine project that will feed the bromine tower already have lithium and magnesium in them, so we do not need to drill additional wells to extract lithium or magnesium. That is the real benefit: we are getting three critical minerals from the same upstream investment. The plant itself is a different issue. We are building the bromine plant now. The lithium plant will come later. We are not at a point where we are ready to FID a lithium plant.

There is still more technology evaluation and engineering work to be done before we are ready. But as I said, current lithium economics make it attractive enough for us to put accelerated time into that.

Analyst: Right, thank you. Are you expecting your partners to drill the wells, or are you expecting to drill your own wells?

Brady Murphy: When you say our partners, who are you referring to?

Analyst: Standard Lithium and Equinor.

Brady Murphy: They have their own project on our brine leases. That is a separate project. They have the Reynolds Unit that has been approved. We get a royalty on lithium off of that production. They are partners with each other, but we own the brine leases and we get a royalty off that production. Our Evergreen Unit is where we will be drilling and producing brine for bromine and future lithium and magnesium. They will be drilling on their Reynolds Unit, where we get a royalty off lithium, and we also get the tail brine from that production when we need it in the future, and we have the other mineral rights within that brine. Hopefully, that clarifies it.

Analyst: It does. Thank you. And what is happening in calcium chloride markets? Is that being impacted by the conflict in Iran and how that flows through supply chains and industrial demand?

Brady Murphy: The calcium chloride business for us continues to perform extremely strong. It is a big part of our industrial chemicals business that had a record first quarter, up significantly year over year and quarter to quarter. We are not seeing any material change due to the current conflict. We really do not have supply chain issues related to that market. We do not have a large presence selling calcium chloride into the Middle East. Our European business is very strong. Our U.S. business is very strong. We mentioned on our last call we saw some new emerging markets related to chip manufacturing requirements. That business is performing very well for us, and we fully expect it to continue.

Operator: Your next question comes from Analyst with Daniel Energy Partners.

Analyst: First one is on international production testing. You talked about revenues being greater than 50% internationally. Where do you see that going over time, and could you walk through some of the markets where you are seeing strength today and how recent events have potentially changed your outlook there?

Brady Murphy: Thanks. As mentioned, we are seeing strong performance in Argentina, and we expect to more than double our revenue in 2026. We also have some exposure in the Middle East, although it is relatively small, and we see opportunities in those regions to continue to deploy technology and automation. We have been very successful in North America automating and bringing differentiated technologies such as SandStorm and automated drill-out to our customers, and these technologies can be exported and deliver value in international markets. We are pleased with our geographical diversification.

As the world looks at where energy is produced and how to secure it, it is not just U.S. land; other markets are looking at securing their own energy, and we are pleased to participate.

Analyst: On that point, has the game changed when we think about energy security longer term and the opportunity set across multiple business lines, international and offshore, as a result of what has happened over the last eight weeks? Are you having incremental conversations with customers you may not have been having eight to twelve weeks ago?

Brady Murphy: When you look at the current situation and the future energy markets where you want to be positioned, offshore deepwater is clearly a key market for future barrels. Also, unconventional activity in the U.S. and Argentina, because relatively speaking, it is a short cycle time to get additional production as you put more rigs and frac crews into the unconventional markets. We are also seeing more unconventional activity start to grow in the Middle East. We will see how the current environment may or may not impact that activity.

The markets where we want to be right now—strong positions in Europe, the U.S., and Latin America; offshore deepwater; unconventional—are where we really want to be to support security of future supply.

Matt Sanderson: The other aspect we touched on is that we are seeing increased inquiries for spot sales from different customers and regions than we have historically served for our completion fluids. More than half of the world’s bromine is derived from the Middle East. The challenges in that region are well publicized. Some customers are having those conversations with us, asking about supporting their business with our fluids, with bromine-based fluids being manufactured in North America from Arkansas. We are pleased with that. More broadly, everyone is appreciating that the world needs all forms of energy, and it will need all forms of energy for a long time.

Operator: Your next question comes from Bobby Brooks with Northland Capital Markets.

Bobby Brooks: Thanks for letting me jump back in the queue. Turning to the domestic onshore completion fluids market, what are you hearing from customers on their back half 2026 activity outlook? Are they in a wait-and-see mode on whether these higher oil prices are here to stay?

Brady Murphy: So, Bobby, you are asking about our U.S. land completion fluids business, right? Completion fluids for us are largely an offshore business. We do have some land business for our completion fluids, but it is generally small relative to our offshore and deepwater markets. We are seeing interesting trends on land: very high-pressure Western Haynesville and South Texas gas wells feeding LNG projects require heavier-density brine for completion work, and in West Texas, pore pressures are getting so high that additional workover activity also requires heavier brine. Those two areas are where we see most of the growing land opportunities for completion fluids. It is still relatively small versus deepwater, but it is starting to grow in a meaningful way.

Operator: Your next question is from Martin Malloy with Johnson Rice.

Martin Malloy: Thank you for taking a follow-up question. I wanted to focus on Argentina. You cited projects coming on later this year, giving you confidence in the outlook. Could you talk more about the services you are providing down there? Are you expecting demand for the early production facilities—historically pretty profitable—to be utilized there, or is this more on the flowback and testing side?

Matt Sanderson: Really, all of the above. We did see continued interest and secured some early production facility projects for this year. Also, technologies such as SandStorm automation, which has been deployed and proven in unconventional plays in the U.S., are being deployed into Argentina. We have SandStorm down there today. Historically, our business there was more levered to early production facilities. Now we are seeing a combination: an increased number of early production facilities and deployment of our differentiated technology for operators in Vaca Muerta. We are quite pleased with how that business continues to progress.

Operator: There are no further questions at this time. I will now turn the call back over to Brady for any closing remarks.

Brady Murphy: Thank you all very much. We appreciate your participation in our call, and we look forward to talking to you at our second quarter earnings call. We will conclude the call now. Thank you.

Operator: Ladies and gentlemen, this concludes today’s conference call. Thank you for participating. You may now disconnect.