TETRA Technologies, Inc. (NYSE:TTI) Q2 2020 Earnings Conference Call - Final Transcript
Aug 04, 2020 • 09:30 am ET
Good day, and welcome to the TETRA Technologies, Inc. Second Quarter 2020 Results Conference Call. [Operator Instructions]. After today's presentation there will be an opportunity to ask questions. [Operator Instructions].
I would now like to turn the conference over to Jacek Mucha. Please go ahead.
Jacek M. Mucha
Thank you, Ian. Good morning, and thank you for joining TETRA's Second Quarter 2020 Results Call.
I would like to remind you that this conference call may contain statements that are -- or may be deemed to be forward-looking. These statements are based on certain assumptions and analysis made by TETRA and are based on a number of factors. These statements are subject to a number of risks and uncertainties, many of which are beyond the control of the company.
You are cautioned that such statements are not guarantees of future performance and that actual results may differ materially from those projected in the forward-looking statements.
In addition, in the course of the call, we may refer to EBITDA, gross margins, adjusted EBITDA, adjusted EBITDA gross margins, adjusted free cash flow, distributable cash flow, distribution coverage ratio, leverage ratio or other non-GAAP financial measures. Please refer to this morning's press release or to our public website for reconciliation of non-GAAP financial measures to the nearest GAAP measures. These reconciliations are not a substitute for financial information prepared in accordance with GAAP and should be considered within the context of our complete financial results for the period.
In addition to our press release announcement that went out earlier this morning and is posted on our website, our Form 10-Q is planned to be filed with the SEC on or before Wednesday, August 5, 2020.
With that, I will now turn it over to Brady.
Brady M. Murphy
Thank you, Jacek. Good morning, everyone, and thank you for joining TETRA'S Second Quarter 2020 Earnings Call. I'll give a recap of our second quarter performance and market environment and then turn it over to Elijio to provide information on the balance sheet, cash flow and liquidity.
First, I want to recognize the exceptional dedication and performance from our employees and management team for a job very well done in one of the most challenging quarters our industry has ever seen due to COVID-19. We are thankful that the few employees that have been directly impacted by the virus have recovered or are recovering well and that we have not had any situations where we could not service or deliver our customers' requirements. The Board and I are very proud of what our employees and management team are accomplishing in this extraordinary environment.
Turning to our results for the second quarter. We were able to deliver strong financial results despite the historical decline in drilling and completion activity. With U.S. land rig activity down 64% to the lowest level on record, international rig activity down 26% and active frac crews dropping at a record pace, our second quarter revenue was only down 14% from the first quarter.
When oil prices dropped in early