What TETRA Technologies, Inc. told the SEC could break it.

Several raw materials for TETRA's brominated completion-fluid products have only a limited number of suppliers or a single supplier; TETRA is contractually required to purchase all of its elemental bromine requirements (up to a specified maximum) under a single supply agreement.

“In our manufacture of brominated CBF products, we use elemental bromine, hydrobromic acid, and other raw materials that are purchased from third parties. There are several raw materials for which there are only a limited number of suppliers or a single supplier.”

No assurance of adequate elemental bromine supply at reasonable prices for its Completion Brine Fluids opportunities; supply and pricing exposed to economic sanctions and trade disruptions tied to the Russia-Ukraine and Middle East conflicts.

“there is no assurance that we will have an adequate supply of elemental bromine or the other raw materials required for all of our CBF opportunities, that we will be able to find other long-term supply agreements if needed or that such raw materials will be available at reasonable prices.”

A large concentration of TETRA's operating activities is located in the Permian Basin region of Texas and New Mexico; revenues and profitability are particularly dependent on oil & gas activity and spending levels in that region.

“A large concentration of our operating activities is located in the Permian Basin region of Texas and New Mexico. Our revenues and profitability are particularly dependent upon oil and natural gas industry activity and spending levels in this region.”

TETRA and its former subsidiary Maritech are alleged to have breached plugging-and-abandonment and decommissioning obligations on certain Gulf of Mexico (Gulf of America) outer continental shelf leases; potential liability estimated at $11.3M to $27.0M before Maritech's bond-proceeds share (~$3.9M).

“asserting Maritech and TETRA are allegedly in breach of certain purported obligations to address plugging and abandonment and decommissioning obligations for certain outer continental shelf leases and related infrastructure located in the Gulf of America. While the ultimate outcome of this matter cannot be predicted, we could potentially be liable for an estimated amount in the range of $11.3 million to $27.0 million, before Maritech's proportionate share of the bond proceeds (approximately $3.9 million)”

A potential closure of the Strait of Hormuz amid Middle East tensions with Iran would expose TETRA to shipment delays and cost increases on raw materials.

“We are also monitoring the impact on the Strait of Hormuz as a result of the unrest in the Middle East. If Iran were to close the Strait of Hormuz, we would experience potential shipment delays, cost increases”