Tidewater Inc. · NYSE:TDW
Tidewater — Scotia Howard Weil 47th Annual Energy Conference 2019
25 slides from Tidewater's conference presentation, Mar 28, 2019
Slide 1: Company Overview
Company Overview Scotia Howard Weil 47th Annual Energy Conference John RyndJason Stanley President & Chief Executive OfficerDirector, Investor Relations March 26, 2019
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Scotia Howard Weil 47th Annual Energy Conference | Tidewater Inc. In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Tidewater Inc. (the “Company”) notes that certain statements set forth in this Current Report on Form 8-
Slide 3: Tidewater Overview
Tidewater Overview TDW $24.42 Market Cap $1.01 billion Based on 41 million shares and $0.001 warrants As of Mar 20, 2019 market close Founded 1955 Created the industry’s first Offshore Support Vessel Cash & Equiv $400 million Net Debt $50 million Vessel Fleet 257 Distributed across the globe, suppor
Slide 4: Peer Market Cap & Price Comparison
Peer Market Cap & Price Comparison Source: FactSet, NYSE, Oslo Bors and Company filings as of March 20, 2019 Note: Tidewater market cap based on common stock + Jones Act Warrants for total share count of 41.4 million Net Capitalization Equity Market Cap Scotia Howard Weil 47th Annual Energy Conferen
Slide 5: The Largest OSV Owner Globally
Source: IHS Petrodata, Tidewater, company disclosures Vessel Count (AHTS & PSVs) as of December 31, 2018 All Others (~2,400 total vessels for 400+ owners) 257 Total Fleet Incl. All Vessel Types 227 OSVs The Largest OSV Owner Globally Tidewater 2019 Fleet Dry-Dockings Tidewater 2019 Dry Docks Scotia
Slide 6: The Most Geographically-Diverse OSV Operator
Scotia Howard Weil 47th Annual Energy Conference | Tidewater Inc. Note: Figures represent Tidewater active vessel fleet at December 31, 2018 Americas 39 Middle East & Asia Pacific 40 North Sea & Mediterranean Sea 32 Headquarters Area Operations Deepwater Towing/Supply Other The Most Geographically-D
Slide 7: A Top OSV Operator in Key Markets Globally
A Top OSV Operator in Key Markets Globally Scotia Howard Weil 47th Annual Energy Conference | Tidewater Inc. Source: IHS Petrodata MarineBase and Tidewater – Active AHTS and PSVs as of January 24, 2019 Mexico West Africa North Sea Middle East Gulf of Mexico Mediterranean PSV AHTS Tidewater PSV Tidew
Slide 8: The North Sea – More Activity & Rate Improvements
The North Sea – More Activity & Rate Improvements Scotia Howard Weil 47th Annual Energy Conference | Tidewater Inc. Note: PSV demand defined as number of PSVs working term and spot. Forecast includes production, rig and misc. support Source: Clarksons Platou, Rystad Energy, RigLogix Vessels / Rigs U
Slide 9: Right-Sizing Our Fleet for Future Demand
Right-Sizing Our Fleet for Future Demand Scotia Howard Weil 47th Annual Energy Conference | Tidewater Inc. Reactivation optionality 5 vessels were reactivated in 2018 A fleet of 28 Tier 1* vessels (AHTS and PSVs) remain staged for reactivation as market conditions improve Disposing of older, lower s
Slide 10: Vessel Reactivations Under Way for 2019
Vessel Reactivations Under Way for 2019 Scotia Howard Weil 47th Annual Energy Conference | Tidewater Inc. Avg. Cost for Reactivation per Vessel $1.4 million Approx. Associated Backlog (excl. options) $110 million Approx. Term (excl. options) 26 vessel years 10
Slide 11: Improved Identification of Cost Synergies
Improved Identification of Cost Synergies First 90 days of integration progressing extremely well with run-rate annual G&A expected to approximate $90 million G&A synergies, in addition to the $15 million of stand-alone cost reduction initiatives, now total $40 million with an additional $10 million
Slide 12: Strategic Priorities
Strategic Priorities Leadership in safety, compliance and operational excellence Protect and preserve strong liquidity position Efficient and complete realization of merger cost and operational synergies Rationalization of fleet and cost structure to provide scope for margin expansion in the upturn
Slide 13: Why you should own Tidewater
Why you should own Tidewater A truly investable name in the offshore sector Operational Excellence Leading OSV Fleet Financial Strength An industry leader in safe operations The broadest operating footprint; leveraged to existing and developing markets Strong relationships with IOCs, NOCs and indepe
Slide 14: Tidewater
TIDEWATER Worldwide 600: x lite 600, Pr+t Houston, T. 713 4 INC. Headquarters rdale Road fexas 7072 USA 70 5300 NYSE
Slide 15: Appendix I – Reference
Appendix I – Reference
Slide 16: Safety Leadership Remains a First Priority
0.14 10 year average Safety Leadership Remains a First Priority Total Recordable Incident Rates 2007-2018 (per 200,000 Man Hours) TRIR = Sum of LTAs and Recordables x 200,000 divided by Man Hours Worked 0.0 1.0 0.5 0.0 1.0 0.5 0.12 2018 Scotia Howard Weil 47th Annual Energy Conference | Tidewater In
Slide 17: Vessel Utilization Trends Incrementally Improving
Vessel Utilization Trends Incrementally Improving Tidewater Fleet Utilization 2014 to 2018 Scotia Howard Weil 47th Annual Energy Conference | Tidewater Inc. Note: GulfMark fleet included as of November 15, 2018 Highest active fleet utilization since the beginning of the downturn
Slide 18: Vessel Average Day Rates Stable
Vessel Average Day Rates Stable Scotia Howard Weil 47th Annual Energy Conference | Tidewater Inc. Average Day Rates by Vessel Class 2014 to 2018 Notes: GulfMark fleet included as of Nov 15, 2018 Spike in Q1 2017 average deepwater rates due to lump sum early contract termination payment
Slide 19: Fleet Valuation
Fleet Valuation Scotia Howard Weil 47th Annual Energy Conference | Tidewater Inc. Vessel Class Vessel Count NBV Average Age Avg NBV / Vessel (in millions) (years) (in millions) Deepwater vessels PSVs > 3,800 DWT 57 $ 543.0 7.0 $ 9.5 PSVs < 3,800 DWT 60 $ 256.1 10.0 $ 4.3 Deepwater AHTS 20 $ 67.2 10.
Slide 20: Oil Companies are Generating Record Cash Flow
Oil Companies are Generating Record Cash Flow Scotia Howard Weil 47th Annual Energy Conference | Tidewater Inc. Top 30 E&P's with offshore output - FCF (pre & post dividends) vs capex* Source: Bloomberg, Clarksons Platou Securities AS *All metrics are trailing 12 months
Slide 21: Current Oil Prices are Still Economic for Offshore Projects
Current Oil Prices are (so far) Still Economic for Offshore Projects Scotia Howard Weil 47th Annual Energy Conference | Tidewater Inc. Breakeven oil prices of discovered but undeveloped offshore resources Perspectives Nearly all offshore oil makes sense near current prices after fall in marginal pro
Slide 22: Working Rig Count Growth Will Drive Incremental OSV Demand
Incremental OSV demand and utilization improvements will be driven by an increase in the working rig count Jackup utilization continues to gradually improve Floater utilization anticipated to improve through 2019 and into 2020 Working Rig Count Growth Will Drive Incremental OSV Demand Source: IHS Pe
Slide 23: Large Percentage of Global Stacked Fleet Likely Uneconomic to Reactivate
A Large Percentage of the Global Stacked Fleet Likely Uneconomic to Reactivate Scotia Howard Weil 47th Annual Energy Conference | Tidewater Inc. …modern, high-specification PSVs have seen the most reactivations 1,000 Est. global stacked fleet ~50% of stacked fleet out of service for >3 years 400+ >1
Slide 24: OSV Second Hand Prices Appear to have Bottomed
OSV Second Hand Prices Appear to have Bottomed Scotia Howard Weil 47th Annual Energy Conference | Tidewater Inc. Source: Clarksons Platou PSV Resale Prices as January 2019 PSV Newbuilding Prices as January 2019 …but transactions have been limited PSV Resale, Large, 1,000 m2 deck PSV Resale, Medium,
Slide 25: Relevant OSV Supply is Shrinking
Relevant OSV Supply is Shrinking Scotia Howard Weil 47th Annual Energy Conference | Tidewater Inc. Stacked vessels do not get contracts Owners will not reactivate without contracts Vessels remain stacked Reactivation cost rises, oil co’s less likely to contract Vessels effectively removed from the f
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