The Bull Case For TETRA Technologies (TTI) Could Change Following Evergreen Magnesium JV Plan With Magrathea

• Earlier this month, TETRA Technologies, Inc. announced a term sheet to form a joint venture with Magrathea Metals, Inc. to integrate clean magnesium production into its Evergreen bromine and critical minerals project in Southwest Arkansas, targeting domestic supply for defense and industrial uses.
• This planned collaboration not only broadens TETRA’s exposure to critical minerals like magnesium, lithium, and bromine, but also links the Evergreen Project directly to U.S. supply-chain and defense-security priorities, potentially reshaping how investors view its long-term growth mix.
• We’ll now examine how adding a potential magnesium joint venture at the Evergreen Project could influence TETRA Technologies’ existing investment narrative.

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TETRA Technologies Investment Narrative Recap

To own TETRA Technologies, you need to believe its transition from a cyclical oilfield services and chemicals supplier into a broader critical minerals and energy-transition materials company can offset eventual softness in deepwater and U.S. land activity. The new magnesium JV term sheet at Evergreen supports that long-term diversification story, but it does not meaningfully change the nearer term earnings risk tied to completion cycles or the execution risk around its Arkansas bromine capex program.

The Evergreen magnesium JV update fits neatly alongside the September 23 resource report, which expanded bromine and lithium resources across roughly 40,000 acres. Together, these announcements point to a larger potential resource base feeding TETRA’s planned Arkansas bromine facility, a key medium term catalyst that is intended to support zinc bromide electrolyte, deepwater fluids, and now a possible domestic magnesium supply chain.

Yet against this promising minerals story, investors should be aware that TETRA’s sizable Arkansas capex is still exposed to...

Read the full narrative on TETRA Technologies (it's free!)

TETRA Technologies' narrative projects $661.4 million revenue and $1.8 million earnings by 2028. This requires 2.9% yearly revenue growth but implies an earnings decrease of $118.6 million from $120.4 million today.

Uncover how TETRA Technologies' forecasts yield a $9.17 fair value, a 5% upside to its current price.

Exploring Other Perspectives

Seven members of the Simply Wall St Community currently see TETRA’s fair value anywhere between US$4.45 and roughly US$22.49, underscoring how far opinions can stretch. You may want to set those views against the execution risk around TETRA’s Arkansas bromine and critical minerals buildout, and consider how different outcomes there could influence the company’s longer term earnings mix.

Explore 7 other fair value estimates on TETRA Technologies - why the stock might be worth 49% less than the current price!

Build Your Own TETRA Technologies Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your TETRA Technologies research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free TETRA Technologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate TETRA Technologies' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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