Tidewater Inc. · NYSE:TDW
Tidewater — Jim and Angie's 14th Oilfield Tour sponsored by Lehman Brothers (September 2007)
33 slides from Tidewater's conference presentation, Sep 27, 2007
Slide 1: Getting to Know Tidewater
1 at Jim and Angie’s 14 th Oilfield Tour Sponsored by Lehman Brothers September 25, 2007 Exhibit 99.1 Getting to Know Tidewater Dean E. Taylor - Chairman, President & CEO Jeff Platt - Executive Vice President Nancy Morovich - Senior Vice President Dean E. Taylor Dean E. Taylor - - Chairman, Presiden
Slide 2: Forward-Looking Statements
2 601 Poydras Street, Suite 1900 New Orleans, LA 70130 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. Th
Slide 3: Discussion Outline
3 Who are we? How do we compete? Where do we compete? How do we approach vessel acquisitions and M&A? What’s our strategy for the future? 1 2 3 4 5 Discussion Outline Discussion Outline Who are we? How do we compete? Where do we compete? How do we approach vessel acquisitions and M&A? What’s our str
Slide 4: Tidewater Invented the Business
4 Tidewater Invented the Business Tidewater Invented the Business
Slide 5: Who We Are and Who We're Not
5 A long term international vessel operator A superior safety- oriented service provider The industry leader with 50+ years of experience An asset trader A cycle timer A new entrant, looking to make quick return and exit Who We Are and Who We’re Not Who We Are and Who We’re Not A long term internati
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Slide 10: Fleet Renewal Program Underway Since 2000
7 Vessels built prior to January 2000 Vessels built or acquired after January 2000 Vessels % as of Fiscal Year End 2007 Profit Contribution % as of Fiscal Year End 2007 Fleet Renewal Program Fleet Renewal Program Underway Since 2000 Underway Since 2000 75% 25% Vessels % as of Fiscal Year End 2007 48
Slide 11: Discussion Outline
8 Who are we? How do we compete? Where do we compete? How do we approach vessel acquisitions and M&A? What’s our strategy for the future? 1 2 3 4 5 Discussion Outline Discussion Outline Who are we? How do we compete? Where do we compete? How do we approach vessel acquisitions and M&A? What’s our str
Slide 12: Superior Operating Capabilities Drive Our Competitive Advantage
9 – Safety-oriented culture – Deep knowledge of customer needs – Worldwide market presence (e.g., “boots on the ground” in every market) – Worldwide infrastructure – Most new vessels in industry – Wide range of equipment types – “Lean” mentality applied to operations and overhead – Aggressive constr
Slide 13: Safety Record Rivals Leading Companies
10 0 0.5 1 1.5 Calendar Years Total Recordable Incident Rates # of Incidents per 200,000 Man Hours Tidewater Dow Chemical Dupont Exxon/Mobil BP 2001 2002 2003 2004 2005 2006 Safety Record Safety Record Rivals Leading Companies Rivals Leading Companies Calendar Years Total Recordable Incident Rates #
Slide 14: Worldwide Scope of Operations
11 0% 25% 50% 75% 100% Fiscal 1997 As of June 30, 2007 Vessels Operating % of Total Operated Internationally 0% 25% 50% 75% 100% Fiscal 1997 As of June 30, 2007 Vessel Operating Profit % Contributed by International Operations Worldwide Scope of Operations Worldwide Scope of Operations 57% 87% Vesse
Slide 15: Internationally Diverse Workforce
12 Angola Brazil Phillipines Mexico Nigeria Indonesia India USA Venezuela Other Workforce Composition % as of June 30, 2007 (>50 countries) Network of resources provide access to seaman worldwide Ability to meet “local content” requirements Workforce well-trained in universal safety standards Intern
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Slide 18: Worldwide Construction Program Minimizes Cost While Ensuring Quality
15 Vessels Under Construction # by Yard Location as of June 30, 2007 Worldwide Construction Program Worldwide Construction Program Minimizes Cost While Ensuring Quality Minimizes Cost While Ensuring Quality Vessels Under Construction # by Yard Location as of June 30, 2007
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Slide 20: Discussion Outline
17 What are our primary line of business? How do we compete? Where do we compete? How do we approach vessel acquisitions and M&A? What’s our strategy for the future? 1 2 3 4 5 Discussion Outline Discussion Outline What are our primary line of business? How do we compete? Where do we compete? How do
Slide 21: Nearly 90% of Vessels Operating in International Waters
18 Active Vessel Count By Region As of Quarter Ended June 30, 2007* *Excludes 48 stacked vessels. Active Vessel Count By Region As of Quarter Ended June 30, 2007* Nearly 90% of Vessels Operating Nearly 90% of Vessels Operating in International Waters in International Waters North America 45 (12%) No
Slide 22: >. 8s a © F eneee. es _eneue Sabee-© ¢« © €¢ £ £
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Slide 23: Discussion Outline
20 Who are we? How do we compete? Where do we compete? How do we approach vessel acquisitions and M&A? What’s our strategy for the future? 1 2 3 4 5 Discussion Outline Discussion Outline Who are we? How do we compete? Where do we compete? How do we approach vessel acquisitions and M&A? What’s our st
Slide 24: Vessel Acquisition Alternatives
21 Considerations: Usually one-off purchases, often to match specific client needs Immediate delivery Entry price at “full” market rate May limit overall capacity Considerations: Built to Tidewater quality standards 18 + months to delivery Potential shipyard backlog Contract terms (e.g., fixed price
Slide 25: Combination of Approaches Used Historically
22 Acquisitions and Dispositions # of Vessels by Fiscal Year 1 14 12 22 8 18 15 49 14 20 18 12 10 120 8 -68 -58 -27 -19 -24 -36 -65 -39 -38 -79 -25 (75) (50) (25) 0 25 50 75 100 125 97 98 99 00 01 02 03 04 05 06 07 08E 09E 10E 11E Dispositions Acquisitions ? ? ? ? Combination of Approaches Combinati
Slide 26: Long Term Objective Is to Invest Consistently Across the Cycle
23 0 50 100 150 200 Tugs/Other Crewboats PSV AHTS Vessels by Build Date Average as of Quarter Ended June 30, 2007 Up to 1973- 1978- 1983- 1988- 1993- 1998- 2003- 2008+ 1972 1977 1982 1987 1992 1997 2002 2007 Beyond *Includes 45 vessels currently under construction to be delivere d in FY08 through FY
Slide 27: Numerous Factors Considered in Designing Optimal Vessel Mix
24 Custom/ Specialized Standardized Small Ultra big Renew existing Expand to niche markets Drilling, production Subsea, main- tenance, LNG etc. Cycle timers Invest across cycle *Arrows are illustrative of Tidewater’s current views; they should not be interpreted as excluding other points on the cont
Slide 28: Disciplined Approach to M&A
25 What is target worth to us? How would TDW’s financial profile change? How would TDW’s risk profile change if target is acquired? What are other capital deployment alternatives? How does target’s valuation compare to market price? Disciplined Approach to M&A Disciplined Approach to M&A What is tar
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Slide 30: Discussion Outline
27 Who are we? How do we compete? Where do we compete? How do we approach vessel acquisitions and M&A? What’s our strategy for the future? 1 2 3 4 5 Discussion Outline Discussion Outline Who are we? How do we compete? Where do we compete? How do we approach vessel acquisitions and M&A? What’s our st
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Slide 32: Tidewater's Investment Proposition
29 Among safest companies in the industry Growing international presence driving earnings growth Using cash position to grow industry’s largest new fleet One of the strongest balance sheets and highest dividend yields in the OSX Ability to generate solid earnings across market cycles Authority to re
Slide 33: Getting to Know Tidewater
30 at Jim and Angie’s 14 th Oilfield Tour Sponsored by Lehman Brothers September 25, 2007 Getting to Know Tidewater Dean E. Taylor - Chairman, President & CEO Jeff Platt - Executive Vice President Nancy Morovich - Senior Vice President Dean E. Taylor Dean E. Taylor - - Chairman, President & CEO Chai
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