TTI
#Yes.
The areas where the next few quarters are impacted is not tied to seasonality.
We're always going to have, as we've said before, that second quarter impact of European chemicals business, but some of the lumpier projects we have are really just the timing of when the work takes place.
Yes, there's your typical components where if we wanted to pre-pay, it's going to cost some money.
So I think the way you should look at that is ---+ and why we get to expand this a little bit more ---+ is we've thought through the capital structure all year, as most companies do in this environment.
As we've thought through it, we progressively have continued to feel better about where we are based on the year-to-date results.
So every time we update the analysis in our thoughts, as a Management team, we're feeling better about it.
We're not certain where the bottom is, how long it's going to be.
But under every scenario we look at, we're in good shape with our balance sheet through those stress-testing actions.
So clearly this is a positive proactive ---+ two elements, we want to be conservative and we want visibility of paying down the $90 million.
We want visibility to extending maturities and the headline of having about $50 million due in 2017 and nothing else until 2019, you will delay that balance sheet metric with our operating performance.
I challenge the audience to give us other companies that sit in that position.
We think there's going to be opportunities next year.
We want to continue to build out the areas that we've highlighted as being strategically important.
This gives us more capability to do that.
Well, again, we've got two different capital structures and clearly, on the TETRA side, the area we've invested the last several years has been tied to Fluids and I think that would be the most logical.
Anything that leverages our technology expands our technology, gives us more regions, <UNK> and his team have a nice long list of ideas that they're running through a process to validate and quantify and that's an ongoing process, not an annual event only.
That's the area that we would focus.
On the TETRA side, we've the CCLP balance sheet and currency and we'll continue to look for opportunities there, realizing we want to be conservative on the leverage.
We'll look at the balance between reinvesting and the balance sheet and the distribution and the yield that we're getting on our distributions and as we always do, have a good discussion at the Board level of how to integrate those thoughts.
I'm very pleased that you asked that question.
We're prepared for the response.
Thanks.
Good morning, <UNK>.
<UNK>, we prefer not to talk about margins specific to any product or any project.
<UNK>, we've seen building and quoting activity remain attractive, but we're also seeing customers reluctant to pull the trigger and actually issue purchase orders.
We think that the bookings that we had in the third quarter are going to be a low point and we expect that there's some opportunities to close on some of those open bids and proposals that are out there.
But again I'll go back to my earlier comments in that only 10% of our margins or our gross profits are coming from equipment sales and we have the ability to flex the cost structure just like we've done in every other division in TETRA out of our Compressco business.
I think as a tangent to that, we want to emphasize there are parts of our compression services business that continue to be very strong on the large horsepower and the team is focused on how we invest in there and how we continue to grow.
So we're very cautious on the capital, but the capital that we deploy is very high return and we'll continue to do that.
The last comment, <UNK>, is that Tim has mentioned in the past that when he went through this downturn in 2008/2009, it's the exact same pattern that he's seeing right now.
So this is consistent with what we expected coming into this downturn.
It's about half and half.
It is.
That's the way you should think about it.
We've got more liquidity for general investment on high return projects and the question we always get is, as the GP of the sponsor, TETRA, investing in CCLP and our answer is always the same.
It's a function of the project and the ability of CCLP to fund it on its own and we looked at that through the eyes of all of our alternative investments.
But I wouldn't read into it that the reason, the driver, the catalyst, for doing it was to greater focus on that issue.
That's not the intent.
And I'll add that we talked about CSI Compressco looking at buying assets of operators or midstream companies that might want to divest all those assets and then we come in and back-fill it with a long-term contract.
If a scenario like that presented itself and CSI Compressco needed incremental capital to do it, we'll be available to support them in that respect.
But from an organic growth, running the business month to month, quarter to quarter, they've got more than adequate liquidity to do that.
Thank you.
As always, great questions, appreciate the following.
Obviously, we're really pleased with the quarter.
We're very pleased with our new financing with CSO and look forward to a long and strong relationship.
As I said, after the second quarter, I'd be remiss if I think thank all of our team for delivering.
They've worked hard, made tough decisions, executed excellently and it was a great effort.
We'll look forward to catching up in early 2016 to review the fourth quarter and talk about 2016.
So, thank you.
