TETRA Technologies’ one-year returns
TETRA Technologies’ (TTI) one-year returns were 71% until July 12. Since July 13, 2017, the Energy Select Sector SPDR ETF (XLE) has increased 16.7%. XLE tracks an index of US energy companies in the S&P 500 Index. The VanEck Vectors Oil Services ETF (OIH) witnessed 4.4% one-year returns. OIH tracks an index of 25 oilfield equipment and services companies. TETRA Technologies outperformed XLE and OIH in the past year.
TETRA Technologies has also outperformed the SPDR S&P 500 ETF (SPY) since July 13, 2017. SPY has produced 14.3% one-year returns. SPY represents the broader market. The SPDR S&P Oil & Gas Equipment & Services ETF (XES) increased 8.5% in the past year until July 12. XES provides exposure to the energy industry’s oil and gas equipment and services segment.
Crude oil price and rigs
On July 12, the WTI crude oil price (USO) was ~53% higher compared to a year ago. Led by strength in crude oil’s price, the rig count increased ~11% in the US in the past year until the week ending July 6.
What impacted the returns?
- On July 2, TETRA Technologies entered into a global agreement with Halliburton (HAL) for the sale and distribution of TETRA’s proprietary TETRA CS Neptune completion fluids. TETRA CS Neptune completion fluids are zinc-free, clear brine completion fluids. Since July 2, TETRA Technologies’ stock price has increased 7%.
- Since May 8, when TETRA Technologies released its first-quarter financial results, its stock price has increased 12%. TETRA Technologies’ year-over-year revenue rose 25% in the first quarter, while its adjusted net loss fell in the first quarter compared to a year ago.
- Increased activity in certain domestic and international markets increased the company’s revenues and margins.
- The company’s negative drivers included the impact of pricing pressures on profitability.
Next, we’ll discuss TETRA Technologies’ correlation with crude oil.