Tidewater Inc. · NYSE:TDW
Tidewater — Credit Suisse 2012 Energy Summit
28 slides from Tidewater's conference presentation, Feb 7, 2012
Slide 1: Credit Suisse 2012 Energy Summit
CREDIT SUISSE 2012 ENERGY SUMMIT QUINN P. FANNING JOSEPH M. BENNETT Executive VP and CFO Executive VP and Chief Investor Relations Officer Feb. 7, 2012
Slide 2: Forward-Looking Statements
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 information and are forward looking. The actual achievement of any
Slide 3: Key Takeaways
KEY TAKEAWAYS • Culture of safety & operating excellence • Macro picture improving – stable oil prices, increased E&P spending, improving rig count • History of earnings growth and solid returns • Unmatched scale and scope of operations • World’s largest and newest fleet provides basis for continued
Slide 4: Safety Record Rivals Leading Companies
SAFETY RECORD RIVALS LEADING COMPANIES TOTAL RECORDABLE INCIDENT RATES 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 2002 2003 2004 2005 2006 2007 2008 2009 2010 CALENDAR YEARS TIDEWATER DOW CHEMICAL CHEVRON EXXON/MOBIL 4
Slide 5: Drivers of Our Business: Peak to Present
DRIVERS OF OUR BUSINESS “Peak to Present” June 2008 Jan. 2011 Jan. 2012 (Peak) Working Rigs 603 538 626 Rigs Under 186 118 148 Construction OSV Global 2,033 2,599 2,722 Population OSV’s Under 736 367 448 Construction OSV/Rig Ratio 3.37 4.83 4.35 5 Source: ODS-Petrodata and Tidewater
Slide 6: The Worldwide OSV Fleet – Retirements Expected to Exceed New Deliveries
THE WORLDWIDE OSV FLEET – RETIREMENTS EXPECTED TO EXCEED NEW DELIVERIES (Includes AHTS and PSV’s only) Estimated as of January 2012 As of late-January 2012, there are approximately 436 additional AHTS and PSV’s (~16% of the global fleet) under construction. 300 250 Vessels > 25 years old today Built
Slide 7: Vessel Population by Owner
VESSEL POPULATION BY OWNER (AHTS and PSV’s only) – Estimated as of January 2012 400 264 300 200 146 108 77 65 65 100 5 0 Tidewater Competitor #1 Competitor #2 Competitor #3 Competitor #4 Competitor # 5 Avg. All Others (1,993 total vessels for Tidewater AHTS and PSV fleet includes 161 vessel addition
Slide 8: History of Earnings Growth and Solid Through-Cycle Returns
HISTORY OF EARNINGS GROWTH AND SOLID THROUGH-CYCLE RETURNS Adjusted EPS** $7.89 $8.00 $6.39 $5.94 $5.20 Adjusted EPS ** $6.00 $3.33 $4.00 $1.78 $2.40 $2.00 $1.03 $0.00 Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal 2004 2005 2006 2007 2008 2009 2010 2011 Adjusted Return On Avg. Equity 4.3%
Slide 9: Our Global Footprint
OUR GLOBAL FOOTPRINT Vessel Distribution by Region (excludes stacked vessels – as of 12/31/11) MENA 37 (14%) Asia/Pac 33 (12%) SS Africa/Europe Americas 129 (49%) 65 (25%) In 3Q FY 2012, ~5% of vessels/revenue was generated in U.S. GOM; however, 38 total active U.S.-flagged vessels provide good opti
Slide 10: The Largest Modern OSV Fleet in the Industry
THE LARGEST MODERN OSV FLEET IN THE INDUSTRY…. Vessel Commitments Jan. ’00 – December ‘11 Vessel Count Estimated Cost AHTS 101 $1,765m PSV’s 89 $1,927m Crewboats & Tugs 71 $302m TOTALS: 261 $3,994m(1) (1) $3,574m (89%) funded through 12/31/11 . At 12/31/11, 211 new vessels were in our fleet with ~4.
Slide 11: ... and More to Come
…. AND MORE TO COME Vessels Under Construction* As of December 31, 2011 Count AHTS 6 PSV 19 Crew and Tug 5 Total 30 Estimated delivery schedule – 7 in FY ‘12, 13 in FY ‘13 and 10 thereafter. CAPX of $99m in remainder of FY ‘12, $246m in FY ‘13 and $75m in FY ’14. * Includes 7 new vessel purchase com
Slide 12: Through-Cycle, EVA-Based Investment; Balance Between Buy and Build
THROUGH-CYCLE, EVA-BASED INVESTMENT; BALANCE BETWEEN “BUY” and “BUILD” Through 12/31/11, vessel 35 commitments include 261 vessels with a capital cost of $3.994 billion 30 # of vessels 25 Built Acquired 20 15 10 5 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Fiscal Year Ac
Slide 13: Recent Vessel Commitments
RECENT VESSEL COMMITMENTS 54 vessels over last 2+ years with a total capital cost of ~$1 billion 12 1 PSV 6 AHTS 9 AHTS $139M 10 3 PSV’s 4 PSV’s # of vessels $179M 4 AHTS 4 PSV $177M 1 AHTS 8 $100M 6 AHTS 1 AHTS $72M 4 CREW 6 $24M 4 AHTS $55M 3 PSV 4 1 MPSV $83M 1 PSV 2 PSV’s $96M $101M 2 0 9/30/09
Slide 14: Fleet Renewal & Expansion Funded by CFFO Through Fiscal 2011
FLEET RENEWAL & EXPANSION FUNDED BY CFFO THROUGH FISCAL 2011 $ in millions CAPX Dividend Share Repurchase $700 $600 $500 $400 CFFO $300 $200 $100 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Fiscal Year Over a 12-year period, Tidewater has invested $3.8 billion in CapEx ($3.3 billi
Slide 15: Recent Financings Will Fund Growth at an Attractive Relative Cost
RECENT FINANCINGS WILL FUND GROWTH AT AN ATTRACTIVE RELATIVE COST Private Placement Financings: Senior Unsecured Notes $590 million Average Life to Maturity (as of 12/31/11) ~ 8.5 years Weighted Average Coupon 4.30% New Credit Facilities: Term Loan $125 million Revolving Line of Credit $450 million
Slide 16: Strong Financial Position Provides Strategic Optionality
STRONG FINANCIAL POSITION PROVIDES STRATEGIC OPTIONALITY As of December 31, 2011 Cash & Cash Equivalents $188 million Total Debt $825 million Shareholders Equity $2,502 million Net Debt / Net Capitalization 20% Total Debt / Capitalization 25% ~$750 million of liquidity as of 12/31/11, including $575
Slide 17: Where Could Fiscal 2014 Find Us?
WHERE COULD FISCAL 2014 FIND US? Potential for Earnings Acceleration ~$750M This info is not meant to be a EBITDA prediction of future earnings performance, but simply an indication of earning sensitivities 90.0% ~$9.25 resulting from future fleet Avg. Utilization additions and reductions and ~$525M
Slide 18: 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 18
Slide 19: Credit Suisse 2012 Energy Summit
CREDIT SUISSE 2012 ENERGY SUMMIT QUINN P. FANNING JOSEPH M. BENNETT Executive VP and CFO Executive VP and Chief Investor Relations Officer Feb. 7, 2012
Slide 20: Appendix
APPENDIX 20
Slide 21: International Strength
INTERNATIONAL STRENGTH Unique global footprint 50+ years of Int’l experience International (non U.S.) markets generally characterized by: • More growth • Longer contracts • Better utilization • Higher dayrates Solid customer base of NOC’s and IOC’s 21
Slide 22: Fleet Cash Operating Margins
FLEET CASH OPERATING MARGINS Traditional Vessels New Vessels $800 $700 $600 $500 ($ millions) $400 $300 $200 $100 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Fiscal Years Cash Oper Margin 38.6% 37.6% 46.5% 41.9% 36.9% 38.7% 49.1% 54.6% 51.9% 51.3% 46.8% 39.3% Note: Cash operating
Slide 23: Recent Financial Results Reflect Cyclical Downturn
RECENT FINANCIAL RESULTS REFLECT CYCLICAL DOWNTURN Nine Months Ended $ in Millions, Except Per Share Data 12/31/11 12/31/10 Revenues $778 $801 Net Earnings* $76 $94 EPS* $1.47 $1.82 Net Cash from Operations $158 $218 Capital Expenditures $297 $509 * Excludes $22.1 million, or $0.43 per share, goodwi
Slide 24: Rigs Contracted by Our Top Customers
RIGS CONTRACTED BY OUR TOP 10 CUSTOMERS (Estimated as of January 2012) Jackups Floater Rigs (348 Working Rigs) (223 Working Rigs) Top 10 customers Other Operators Top 10 Customers 81 113 110 Other Operators 267 Tidewater’s top 10 customers contract ~23% of the working worldwide jackup fleet and ~50%
Slide 25: Current Revenue Mix
CURRENT REVENUE MIX Quality of Customer Base Others 36% Super Majors 36% NOC's 28% Our top 10 customers in Fiscal 2011 (5 Super Majors, 3 NOC’s and 2 large independents) accounted for 63% of our revenue 25
Slide 26: Significant Average Age Improvement
SIGNIFICANT AVERAGE AGE IMPROVEMENT 20 20 14 15 Vessel Avg. Age 10 6 5 0 3/31/06 3/31/07 3/31/08 12/31/08 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 Assumptions: 1) Average 45 vessel disposals per year in future (versus an average of 52 vessel dispositions per year over last 3 years). 2)
Slide 27: Vessel Dayrates by Segment
VESSEL DAYRATES BY SEGMENT Americas Asia/Pac MENA Sub Sah Africa $18,000 $16,000 Average Dayrate $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 27
Slide 28: Vessel Utilization by Segment
VESSEL UTILIZATION BY SEGMENT Americas Asia/Pac MENA Sub Sah Africa 90% 80% Avg. Utilization 70% 60% 50% 40% 30% 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 28