Tidewater Inc. · NYSE:TDW
Tidewater — Wells Fargo Securities 14th Annual Energy Symposium 2015
28 slides from Tidewater's conference presentation, Dec 9, 2015
Slide 1: Wells Fargo Securities 14th Annual Energy Symposium
Wells Fargo Securities 14th Annual Energy Symposium December 9, 2015 Quinn P. Fanning Executive Vice President and Chief Financial Officer
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 in
Slide 3: Strategy and Focus in a Challenged Market, and Results
Strategy and Focus in a Challenged Market, and Results Providing safe, efficient and compliant operations – TRIR to date this fiscal year is lowest in company history New fleet comprised of vessels that service all water depths – 222 active vessels at 9/30/15 with 8.2 year average age. Taking specia
Slide 4: Safe Operations is Priority #1
Safe Operations is Priority #1 Stop Work Obligation Safety performance is 25% of mgt. incentive comp 0.60 TOTAL RECORDABLE INCIDENT RATES (per 200,000 Man Hours) 0.50 0.40 0.30 0.20 0.10 0.00 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 TIDEWATER DOW CHEMICAL CHEVRON EXXON/MOBIL Wells Farg
Slide 5: Plenty Offshore Rigs, but Activity Levels Drive OSV Demand
Plenty Offshore Rigs, but Activity Levels Drive OSV Demand 450 400 Jackups 350 338 Working Rigs 300 250 Floaters 200 184 150 Rig CIP 100 Jackups 127 Floaters 69 50 Other 9 205 0 11/04 11/05 11/06 11/07 11/08 11/09 11/10 11/11 11/12 11/13 11/14 11/15 Source: IHS-Petrodata Note: 33 “Other” rigs, along
Slide 6: Drivers of our Business - A View at Various Points in a Cycle
Drivers of our Business - “A View at Various Points in a Cycle” July January November 2008 2011 2015 Working Rigs 603 538 555 Down ~165 rigs from prior peak Rigs Under How many will be 186 118 205 delivered and how Construction many incremental? OSV Global Includes ~650 old 2,033 2,599 3,394 vessels
Slide 7: Tidewater's Active Fleet
Tidewater’s Active Fleet As of September 30, 2015 Deepwater vessels Towing Supply/Supply Other vessels 35 30 211 “New” vessels – 7.4 avg yrs 25 11 “Traditional” vessels – 25.0 avg yrs Number of Vessels (only 2 OSVs) 20 15 10 5 0 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 Year Built Wells Farg
Slide 8: Geographic Diversity – Active Vessel Count and Vessel Operating Profit by Region
Geographic Diversity – Active Vessel Count and Vessel Operating Profit (VOP) by Region (Active vessels as of 9/30/15, VOP for 9/30/15 qtr.) MENA 42 vessels (19%) $7.5m VOP Asia/Pac 21 vessels (10%) Americas SS Africa/Europe $6.2m VOP 65 vessels (29%) 94 vessels (42%) $8.8m VOP $3.2m VOP 51 additiona
Slide 9: A New Fleet that Services All Water Depths
A New Fleet that Services All Water Depths (Excludes stacked vessels – as of 9/30/15) Americas Vessels New Avg. Traditional MENA New Vessels Avg. Traditional NBV Vessels NBV Vessels Deepwater 13 $16.8M 0 Deepwater 37 21.3M 0 Towing Supply 27 $11.4M 0 Towing Supply 18 $10.3M 2 Other 0 0 2 Other 5 $2.
Slide 10: Staying Close to our Customers – Strong Customer Base
Staying Close to our Customers – Strong Customer Base Current Revenue Mix Others 33% Super Majors 34% Approximately 60% of our revenue is derived from drilling support activity and 40% from NOC's non-drilling related activity, such 33% as support of production and construction activity Our top 10 cu
Slide 11: Our Remaining Construction Backlog
Our Remaining Construction Backlog Vessels Under Construction As of September 30, 2015 (excludes vessels under option*) Count Deepwater PSVs 8 Deepwater AHTSs - Towing Supply/Supply 1 Other - Total 9 Estimated delivery schedule – 4 remaining in FY ’16 and 5 in FY ‘17. CAPX of $57m remaining in FY ‘1
Slide 12: CapEx is Decreasing from Recent High Levels
CapEx is Decreasing from Recent High Levels $1,000 $800 Amounts in orange in Fiscal 2016 and 2017 include future expected CAPX on the 9 vessels under construction as of 9/30/15. $600 $400 $200 $0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Fiscal 2014 is exclusive of Troms acquisitio
Slide 13: Solid Balance Sheet and Financial Flexibility
Solid Balance Sheet and Financial Flexibility Our Financial Position Provides Us Strategic Optionality As of September 30, 2015 Cash & Cash Equivalents $88 million Total Debt $1,498 million Shareholders Equity $2,398 million Net Debt / Net Capitalization 37% Total Debt / Capitalization 38% ~$700 mil
Slide 14: Debt Maturities and Covenants as of 9/30/15
Debt Maturities and Covenants as of 9/30/15 Maturities Limited for Several Years $800 Debt Covenants: 1) Debt/Total Capitalization Ratio of not greater than 55% 2) EBITDA/Interest coverage of not less than 3.0X Debt Maturity (in $millions) $600 $400 $200 $0 2016 2017 2018 2019 2020 2021 2022 2023 20
Slide 15: Returning Capital to Shareholders
Returning Capital to Shareholders Consistent Dividends and Opportunistic Share Repurchases (in millions) Dividends Share Repurchases $400 $350 $300 ~10% Current Dividend Yield $250 $200 $150 $100 $50 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Fiscal Years Duri
Slide 16: Tidewater's Strategy
Tidewater’s Strategy Continue to improve upon stellar safety and compliance programs Stay close to our customers Monitor industry developments to adjust our playbook accordingly - Continue pro-active cost reduction initiatives - Maintain/protect liquidity Maintain solid balance sheet and financial f
Slide 17: Worldwide Headquarters
NEW ORLEANS, LOUISIANA Worldwide Headquarters Tidewater Inc. Pan American Life Center 601 Poydras Street, Suite 1500 New Orleans, Louisiana 70130 P: +1 504 568 1010 HOUSTON, TEXAS Tidewater Marine, L.L.C. 6002 Rogerdale Road Suite 600 Houston, Texas 77072-1655 P: +1 713 470 5300 Wells Fargo Securiti
Slide 18: The Worldwide OSV Fleet
The Worldwide OSV Fleet (Includes AHTS and PSVs only) Estimated as of November 2015 As of November 2015, there are approximately 370 additional AHTS and PSV’s (~11% of the global fleet) under construction. Some number of these, we believe, will not be completed and delivered. 300 250 Vessels > 25 ye
Slide 19: Vessel Population by Owner
Vessel Population by Owner (AHTS and PSVs only) Estimated as of November 2015 400 300 220 197 200 153 77 69 100 62 5 0 Avg. Tidewater Competitor #1 Competitor #2 Competitor #3 Competitor #4 Competitor # 5 All Others (~2,616 total vessels for 400+ owners) Source: IHS-Petrodata and Tidewater Wells Far
Slide 20: Fleet Renewal & Expansion Largely Funded by CFFO
Fleet Renewal & Expansion Largely Funded by CFFO CAPX Dividend Share Repurchase $700 $ in millions $600 $500 CFFO $400 $300 $200 $100 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Fiscal Year Over a 16-year period, Tidewater has invested ~$5.5 billion in CapEx, a
Slide 21: History of Solid Earnings and Returns on a Through-Cycle Basis
History of Solid Earnings and Returns on a Through-Cycle Basis Adjusted EPS** $7.89 $8.00 $5.94 $6.39 Adjusted EPS ** $6.00 $5.20 $4.00 $3.33 $3.69 $3.33 $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 Fiscal 2004 2005 2006 2007
Slide 22: Active Vessel Dayrates & Utilization by Segment
Active Vessel Dayrates & Utilization by Segment Americas Asia/Pac MENA Sub Sah Africa/Eur. $26,000 Avg. Dayrate $22,000 $18,000 $14,000 $10,000 $6,000 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 100% Avg. Utilization 90% 80% 70% 60% 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 Utilization stats exclude stack
Slide 23: 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 $60,000 300 Q2 Fiscal 2016 Avg Day Rate: $23,864 Utilization: 64.0% $50,000 250 $40,000 200 $30,000 150 $20,000 86 89 100 80 81 73 75 76 76 77 62 66 69 51 54 55 57 $10,000 40 43 44 45
Slide 24: 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 $60,000 300 Q2 Fiscal 2016 Avg Day Rate: $29,506 Utilization: 65.0% $50,000 250 $40,000 200 $30,000 150 $20,000 100 $10,000 50 5 5 5 5 5 5 5 5 6 8 9 9 11 11 11 11 11 11 11 11 11 11 11
Slide 25: 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 Q2 Fiscal 2016 Avg Day Rate: $13,735 Utilization: 72.1% $20,000 200 $15,000 150 102 103 104 105 105 105 105 101 $10,000 93 100 81 85 68 57 61 47 51 $5,000 39
Slide 26: Vessel Revenue and Vessel Operating Margin
Vessel Revenue and Vessel Operating Margin Fiscal 2008-2016 Prior peak period (FY2009) averaged quarterly revenue of $339M, quarterly operating $500 56.4% margin of $175.6M at 51.8% 53.0% 46.7% 47.7% 50.0% 46.3% 45.6% $400 45.0% 44.1% 43.1% 41.0% 40.8% 39.9% 38.0% 36.9% $300 $300 million Millions $2
Slide 27: Historical Vessel Cash Operating Margins
Historical Vessel Cash Operating Margins Vessel Cash Operating Margin ($) Vessel Cash Operating Margin (%) $200 70% $175 60% $150 50% $125 40% $100 30% $75 $50 20% $25 10% $0 0% Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2
Slide 28: Tidewater's Subsea Business
Tidewater’s Subsea Business Eight work-class ROVs in current fleet Commercial operations underway globally ROV capabilities generating potential for OSV pull through Wells Fargo Securities 14th Annual Energy Symposium 28
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