Tidewater Inc. · NYSE:TDW
Tidewater — GHS 100 Energy Conference 2014
30 slides from Tidewater's conference presentation, Jun 25, 2014
Slide 1: GHS 100 Energy Conference
GHS 100 Energy Conference Quinn P. Fanning Joseph M. Bennett EVP & CFO EVP & Chief IRO June 25, 2014
Slide 2: Forward-Looking Statements
TIDEWATER 601 Poydras Street, Suite 1500, New Orleans, LA 70130 FORWARD-LOOKING STATEMENTS In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Company notes that certain statements set forth in this presentation provide other than historical inf
Slide 3: Key Tidewater Takeaways
Key Tidewater Takeaways • Consistent goal of “Best in Class” safety and compliance culture • Largest “NEW” OSV fleet in the industry, operating in over 50 countries with ~9,000 employees worldwide • History of earnings growth and solid returns • Constructive fundamental backdrop for the OSV industry
Slide 4: Safety Record Rivals Leading Companies
Safety Record Rivals Leading Companies • Safe Operations is Priority #1 • Stop Work Obligation • Safety performance is 25% of mgt. incentive comp 0.7 TOTAL RECORDABLE INCIDENT RATES 0.6 0.5 0.4 0.3 0.2 0.1 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 CALENDAR YEARS TIDEWATER DOW CHEMICAL CHEV
Slide 5: Working Offshore Rig Trends
Working Offshore Rig Trends 450 400 410 Jackups 350 Working Rigs 300 250 252 Floaters 200 150 100 Prior peak (summer 2008) 50 0 6/04 6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 Source: ODS-Petrodata Note: 43 “Other” rigs, along with the Jackups and Floaters, provide a total working rig count o
Slide 6: Drivers of our Business "Peak to Present"
Drivers of our Business “Peak to Present” July 2008 Jan. 2011 June (Peak) (Trough) 2014 Working Rigs 603 538 705 Rigs Under 186 118 245 Construction OSV Global 2,033 2,599 3,126 Population OSV’s Under 736 367 469 Construction OSV/Rig Ratio 3.37 4.83 4.43 Source: ODS-Petrodata and Tidewater GHS 100 E
Slide 7: The Worldwide OSV Fleet
The Worldwide OSV Fleet (Includes AHTs and PSVs only) Estimated as of June 2014 As of June 2014, there are approximately 469 additional AHTS and PSV’s (~15% of the global fleet) under construction. 300 250 Vessels > 25 years old today Number of Vessels Built 200 (AHTS & PSV) 150 100 50 0 1965 1970 1
Slide 8: Tidewater's Active Fleet
Tidewater’s Active Fleet As of March 31, 2014 Deepwater vessels Towing Supply/Supply Other vessels 40 35 245 “New” vessels – 6.9 avg yrs 30 23 “Traditional” vessels – 26.6 avg yrs Number of Vessels 25 20 15 10 5 0 1970 1975 1980 1985 1990 1995 2000 2005 2010 Year Built GHS 100 Energy Conference 8
Slide 9: Vessel Population by Owner
Vessel Population by Owner (AHTS and PSVs only) Estimated as of June 2014 400 300 214 178 200 138 78 70 100 65 5 0 Avg. Tidewater Competitor #1 Competitor #2 Competitor #3 Competitor #4 Competitor # 5 All Others (2,383 total vessels for 400+ owners) Source: ODS-Petrodata and Tidewater GHS 100 Energy
Slide 10: Our Global Footprint – Vessel Count by Region
Our Global Footprint – Vessel Count by Region (Excludes stacked vessels – as of 3/31/14) MENA 44(16%) Asia/Pac 23(9%) SS Africa/Europe Americas 135(50%) 66(25%) In 4Q FY 2014, ~12% of vessel revenue was generated in the U.S. by ~ 17 vessels; however, <15 other U.S.-flagged vessels are currently oper
Slide 11: Our Global Footprint – Vessel Class by Region
Our Global Footprint – Vessel Class by Region (Excludes stacked vessels – as of 3/31/14) New Avg. Traditional Americas New Avg. Traditional MENA Vessels NBV Vessels Vessels NBV Vessels Deepwater 10 $17.0M 1 Deepwater 31 $19.3M 0 Towing Supply 31 $12.2M 0 Towing Supply 14 $10.7M 8 Other 0 0 2 Other 9
Slide 12: A Broad Portfolio of New High Spec OSVs
A Broad Portfolio of New High Spec OSVs Current Future Deepwater PSV DWT Fleet CIP Fleet 5,000-6,000 16 4 20 4,000-4,999 11 13 24 3,000-3,999 43 6 49 <3,000 6 0 6 76 23 99 Deepwater AHTS Current Future BHP Fleet CIP Fleet 25,000+ 5 0 5 13,500-16,500 7 0 7 12 0 12 Towing Supply Current Future BHP Fle
Slide 13: The Largest Modern OSV Fleet in the Industry
The Largest Modern OSV Fleet in the Industry Vessel Commitments Average Cost Jan. ’00 – March ‘14 Vessel Count (2) Total Cost (2) per Vessel Deepwater PSVs 99 $2,771m $28.0m Deepwater AHTSs 12 $387m $32.3m Towing Supply/Supply 111 $1,670m $15.0m Other 53 $227m $4.3m TOTALS: 275 $5,055m(1) $18.4m (1)
Slide 14: ...and More to Come
…and More to Come Vessels Under Construction* As of March 31, 2014 Count Deepwater PSVs 23 Deepwater AHTSs - Towing Supply/Supply 6 Other 1 Total 30 Estimated delivery schedule – 12 in FY ’15, 16 in FY ‘16 and 2 thereafter. CAPX of $368m in FY ’15, $193m in FY ‘16 and $12m thereafter. GHS 100 Energy
Slide 15: Strong Financial Position Provides Strategic Optionality
Strong Financial Position Provides Strategic Optionality As of March 31, 2014 Cash & Cash Equivalents $60 million Total Debt $1,515 million Shareholders Equity $2,679 million Net Debt / Net Capitalization 35% Total Debt / Capitalization 36% ~$660 million of available liquidity as of 3/31/14, includi
Slide 16: Debt Maturities Limited for Several Years
Debt Maturities as of 3/31/14 Limited for Several Years $800 Debt Maturity (in $millions) $600 $400 $200 $0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Fiscal Year GHS 100 Energy Conference 16
Slide 17: History of Earnings Growth & Solid Through-Cycle Return
History of Earnings Growth & Solid Through-Cycle Return Adjusted EPS** $7.89 $8.00 $5.94 $6.39 Adjusted EPS ** $6.00 $5.20 $4.00 $3.33 $3.69 $3.03 $1.78 $2.40 $2.13 $2.00 $1.03 $0.00 Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal 2004 2005 2006 2007 2008 2009 2010 2011
Slide 18: Active Vessel Dayrates & Utilization by Segment
Active Vessel Dayrates & Utilization by Segment Americas Asia/Pac MENA Sub Sah Africa/Eur. $22,000 Avg. Dayrate $18,000 $14,000 $10,000 $6,000 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 100% Avg. Utilization 90% 80% 70% 60% 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 Impact of $7.4 million of retroactive r
Slide 19: New Vessel Trends by Vessel Type: Deepwater PSVs
New Vessel Trends by Vessel Type Deepwater PSVs Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size $60,000 240 Q4 Fiscal 2014 Avg Day Rate: $29,735 Utilization: 86.1% $50,000 200 $40,000 160 $30,000 120 75 76 $20,000 66 69 73 80 62 54 55 57 45 47 49 51 40 43 44 $10,000 32 34 38 40 2
Slide 20: New Vessel Trends by Vessel Type: Towing Supply/Supply Vessels
New Vessel Trends by Vessel Type Towing Supply/Supply Vessels Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size $25,000 250 Q4 Fiscal 2014 Avg Day Rate: $15,126 Utilization: 84.4% $20,000 200 $15,000 150 103 103 104 105 99 101 101 102 103 $10,000 93 100 88 83 85 78 81 68 63 54 57 5
Slide 21: Tidewater's New Subsea Business
Tidewater’s New Subsea Business Recent delivery of six work-class remotely operated vehicles (ROV) GHS 100 Energy Conference 21
Slide 22: Tidewater's Future
Tidewater’s Future • Continue to improve upon stellar safety and compliance programs • Disciplined deployment of cash to expand vessel and ROV fleet capabilities • Maintain solid balance sheet and financial flexibility to deal with industry uncertainties and seize opportunities when presented • Retu
Slide 23: GHS 100 Energy Conference
GHS 100 Energy Conference Quinn P. Fanning Joseph M. Bennett EVP & CFO EVP & Chief IRO June 25, 2014
Slide 24: Appendix
Appendix GHS 100 Energy Conference 24
Slide 25: Financial Strategy Focused on Creating Long-Term Shareholder Value
Financial Strategy Focused on Creating Long-Term Shareholder Value Deliver Results Maintain EVA-Based Investments Financial Strength On Through-cycle Basis GHS 100 Energy Conference 25
Slide 26: New Vessel Trends by Vessel Type: Deepwater AHTS
New Vessel Trends by Vessel Type Deepwater AHTS Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size $60,000 240 Q4 Fiscal 2014 Avg Day Rate: $31,158 Utilization: 73.9% $50,000 200 $40,000 160 $30,000 120 $20,000 80 $10,000 40 8 9 9 11 11 11 11 11 11 11 11 11 11 11 11 11 11 12 12 5 5
Slide 27: Fleet Renewal & Expansion Largely Funded by CFFO
Fleet Renewal & Expansion Largely Funded by CFFO $700 $ in millions CAPX Dividend Share Repurchase $600 $500 $400 CFFO $300 $200 $100 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Fiscal Year Over a 15-year period, Tidewater has invested ~$5.2 billion in CapEx, and pa
Slide 28: Total Revenue and Margin Fiscal 2008-2014
Total Revenue and Margin Fiscal 2008-2014 Prior peak period (FY2009) averaged quarterly revenue of $339M, quarter operating $500 56.4% margin of $175.6M at 51.8% 53.0% 46.7% 47.7% 50.0% 46.3% $400 45.0% 44.1% 45.2% 43.0% 42.0% 41.0% 40.8% 38.0% 36.9% $300 $300 million Millions $200 $150 million $100
Slide 29: Cyclical Upturn should Drive Margin Expansion
Cyclical Upturn should Drive Margin Expansion Vessel Cash Operating Margin ($) Vessel Cash Operating Margin (%) $200 70% $175 60% $150 50% $125 40% $100 30% $75 $50 20% $25 10% $0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 30: Current Revenue Mix: Quality of Customer Base
Current Revenue Mix Quality of Customer Base Others Super Majors 41% 37% NOC's 22% Our top 10 customers in Fiscal 2014 (4 Super Majors, 4 NOC’s, 1 IOC’s and 1 independent) accounted for 62% of our revenue GHS 100 Energy Conference 30