Tidewater Inc. · NYSE:TDW
Tidewater — UBS Global Oil and Gas Conference 2018
25 slides from Tidewater's conference presentation, May 23, 2018
Slide 1: UBS Global Oil and Gas Conference
UBS Global Oil and Gas Conference John Rynd Quinn Fanning Chief Executive Officer Chief Financial Officer May 23, 2018
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 unfolding of future econom
Slide 3: Our current profile
Our current profile Founded in 1955 – designed the first OSV as we know it Financial restructuring completed July 31, 2017 NYSE-traded Securities (at 21 May 2018 close) • Common Stock – TDW $31.38 • Series A Warrants – TDW WS.A $4.00 • Series B Warrants – TDW WS.B $3.38 Market Cap (at 21 May 18 clos
Slide 4: Best-positioned to navigate a challenging market
Best-positioned to navigate a challenging market Safety Leadership Trusted Partner • TRIR in FY2017 lower than last five years’ avg. Committed to Compliance • 60+ years experience in global OSV market • Highly experienced management team Proactive Cost Control Global Footprint • 2017 vessel opex dow
Slide 5: An unwavering commitment to safety leadership
An unwavering commitment to safety leadership Total Recordable Incident Rates CY 2007-2017 (per 200,000 Man Hours) TRIR = Sum of LTA’s and Recordables x 200,000 divided by Man Hours Worked 1.00 0.90 0.5 0.80 1.0 0.0 0.70 0.14 0.60 10 year average 0.50 0.40 0.30 0.20 0.10 0.00 CY 2007 CY 2008 CY 2009
Slide 6: Working offshore rig count is a primary OSV market driver
Working offshore rig count is a primary OSV market driver 450 400 Overall working rig count down 350 Jackups ~40% from 2H 2014 peak to 427 current working rigs 300 289 Consensus outlook assumes slow recovery in jackup and floater Working Rigs 250 Floaters market beginning in 1H18 200 Consensus
Slide 7: What will OSV market equilibrium look like?
What will OSV market equilibrium look like? Market equilibrium requires an increase in demand and a reduction in supply 4,000 Working Rigs 9.00 8.3 8.2 8.0 OSV Global Population 1,000 vessels 3,500 8.00 +15 years old OSV/Working Rig Ratio 3,000 6.6 7.00 150 New Vessel Without ~600 Deliveries vessels
Slide 8: Supply is likely tighter than it appears
Supply is likely tighter than it appears OSV supply, demand and fleet utilization 3500 2001 - 2020E 100% 94% 90% 3000 93% 89% 91% 91% 87% 87% 88% 87% 87% 85% 86% 86% 85% 85% 80% 2500 76% 70% 74% OSV fleet utilization 60% 2000 63% # of vessels 62% 59% Rig 50% Support 1500 Demand 40% 1000 30% Producti
Slide 9: Young, modern fleet compares favorably to peers
Young, modern fleet compares favorably to peers Tidewater’s Active Fleet Worldwide OSV Fleet As of March 31, 2018 Estimated as of May, 2018 30 350 137 8.6 300 3,500 16% 28% 25 Vessels Years Avg Approx. Vessels in Vessels Est. to be Vessels Est. to be Age the Global Fleet 25+ Years Old 15+ Years Old
Slide 10: The global OSV leader
The global OSV leader Revenue Mix 137 total active vessels with average vessel age of 8.6 years as of March 31, 2018. Europe & Production Drilling Mediterranean Support Support 18 40% 60% Other 1 Deepwater 8.4 yrs Other 17 Avg. Age 7% Towing- Supply Deepw Regional Headquarters Other 37% ater Area Op
Slide 11: Size and scope of operations matter
Size and scope of operations matter 250 200 185 180 164 150 113 AHTS and PSVs only, as 100 of March 31, 2018 68 66 63 53 50 48 50 44 All Others (~2,400 total vessels for 5 400+ owners) 0 Bourbon Tidewater Chouest SolstadFarstad Swire Gulfmark Hornbeck Topaz Harvey Gulf Seacor Maersk Avg. All Others
Slide 12: Financially positioned for the eventual upturn
Financially positioned for the eventual upturn Cash & Equiv.: Total Debt: Book Equity: >$445 million $448 million ~$1 billion Debt Maturity: Total Debt / Cap: Net Debt/Net Cap: A. ~$350 million senior secured notes due 2022 31% 0% B. ~$90 million export credit backed debt amortizes over ~10 yrs. As
Slide 13: The highest equity market cap in the OSV sector
The highest equity market cap in the OSV sector ($mm) 1,000 900 800 700 600 500 $941 400 300 $598 $545 $463 200 $409 $323 100 $242 $234 $212 $140 $49 $31 $29 $78 $53 -- 1 Source: FactSet research systems & Company filings as of 5/22/18 1Reflects midpoint of Estimated Reorganization Value per 3/8/18
Slide 14: The lowest leverage in the OSV sector
The lowest leverage in the OSV sector (% of Net Capitalization) Market Cap Net Debt 100% 14% 80% 34% 48% 57% 62% 60% 74% 83% 86% 87% 87% 94% 94% 100% 40% 86% 66% 52% 20% 43% 38% 26% 17% 14% 13% 13% -- 6% 6% 1 Source: FactSet research systems & Company filings as of 5/22/18 1Reflects midpoint of Esti
Slide 15: Rationalizing fleet to reduce costs and excess capacity
Rationalizing fleet to reduce costs and excess capacity Tidewater Active vs Stacked Fleet Profile1 2014 to 2018 YTD 300 250 16 57 200 115 89 70 150 259 100 215 148 140 137 50 0 2014 2015 2016 2017 2018 1 Active Stacked Notes: (1)Fleet counts as of December 31 for stated calendar years (2)Stacked as
Slide 16: ...and other OSV owners may follow suit
…and other OSV owners may follow suit Vessel demolitions – AHTS and PSVs – 2007 to 2018 Perspectives 160 152 Scrapping levels in 2017 the highest in at least 10 years 140 So far scrapping activity remains elevated in 2018 with 38 vessels 120 demolished through late March Scrap steel prices in India
Slide 17: Minimal CAPEX spend
Minimal CAPEX spend Capex (USD $ in millions) ¹ 615 595 474 452 441 ~$4 million 354 357 364 Capex Required as of 12/31/2017 235 194 25 4 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (1) Values presented are on calendar basis UBS Global Oil and Gas Conference 2018 | Tidewater Inc. 17
Slide 18: Tidewater's go forward strategy
Tidewater’s go forward strategy Leadership in safety, compliance and operational excellence Focused on near-term cash break-even and margin expansion in the upturn Protect and preserve strong liquidity position Focused on organic growth opportunities (reactivations) and M&A Deliver best-in-class sha
Slide 19: www.tdw.com
TIDEWATER INC. Worldwide Headquarters 6002 Rogerdale Road Suite 600 www.tdw.com Houston, Texas 77072 USA P: +1 713 470 5300
Slide 20: Appendix
Appendix "! TIDEWATER
Slide 21: Vessel revenue & vessel operating margin, 2008-2017
Vessel revenue & vessel operating margin, 2008-2017 Prior peak period (2008) averaged quarterly revenue of $334M, quarterly operating margin of $500 $168.6M at 50.4% 54% 50.0% $400 51% 48% 48% 45% 45% 44% 42% 42% 41% $300 $300 million Millions 34% 31%30% $200 25% $150 million 19% $100 $- Q1 Q2 Q3 Q4
Slide 22: Vessel trends – deepwater PSVs
Vessel trends – deepwater PSVs Q1 2018 $60,000 300 Avg Day Rate: $11,487 Utilization: 53% $50,000 250 $40,000 200 $30,000 150 $20,000 86 89 88 90 90 91 92 92 92 91 100 81 84 77 80 80 69 73 75 76 76 66 62 54 55 57 49 51 43 44 45 47 $10,000 40 50 34 38 29 32 25 25 25 25 28 $0 - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 23: Vessel trends – AHTS
Vessel trends – AHTS Q1 2018 $60,000 300 Avg Day Rate: $12,809 Utilization: 45% $50,000 250 $40,000 200 $30,000 150 $20,000 100 $10,000 50 8 9 9 11 11 11 11 11 11 11 11 11 11 11 11 11 11 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 9 5 5 5 5 5 6 $0 - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 24: Vessel trends – towing supply
Vessel trends – towing supply $60,000 Q1 2018 300 Avg Day Rate: $10,355 Utilization: 38% $50,000 250 $40,000 200 $30,000 150 107 107 107 107 106 106 105 103 103 104 105 105 105 105 104 105 105 106 99 101 101 102 103 93 94 $20,000 88 85 100 83 85 78 81 68 63 59 61 51 54 57 46 47 49 $10,000 50 $0 - Q1
Slide 25: Fleet valuation post-fresh start accounting
Fleet valuation post-fresh start accounting Vessel NBV as of March 31, 2018 Vessel Count NBV Average Age Avg NBV / Vessel (in millions) (years) (in millions) Deepwater vessels PSVs > 3,800 DWT 41 $ 355.8 6.1 $ 8.7 PSVs < 3,800 DWT 37 $ 169.4 9.0 $ 4.6 Deepwater AHTS 9 $ 47.3 9.4 $ 5.3 87 $ 572.5 7.8