Tidewater Inc. · NYSE:TDW
Tidewater — UBS Houston Energy Symposium 2013
27 slides from Tidewater's conference presentation, Sep 23, 2013
Slide 1: UBS Houston Energy Symposium
September 18, 2013 UBS Houston Energy Symposium Joseph M. Bennett Exhibit 99.1 EVP & Chief IRO
Slide 2: Safety, Record Rivals, Leading Companies
Safety Record Rivals Leading Companies
Slide 3: Working Offshore Rig Trends
Prior peak (summer 2008) Jackups Floaters Source: ODS-Petrodata Note: 50 “Other” rigs, along with the Jackups and Floaters, provide a total working rig count of 713 in September 2013. Working Offshore Rig Trends
Slide 4: Drivers of our Business: Peak to Present
July 2008 (Peak) Jan. 2011 (Trough) September 2013 Working Rigs 603 538 713 Rigs Under Construction 186 118 222 OSV Global Population 2,033 2,599 2,997 OSV’s Under Construction 736 367 436 OSV/Rig Ratio 3.37 4.83 4.20 Drivers of our Business “Peak to Present” Source: ODS-Petrodata and Tidewater
Slide 5: The Worldwide OSV Fleet
Vessels > 25 years old today The Worldwide OSV Fleet (Includes AHTS and PSVs only) Estimated as of September 2013 Source: ODS-Petrodata and Tidewater As of September 2013, there are approximately 436 additional AHTS and PSV’s (~14% of the global fleet) under construction. Global fleet is estimated a
Slide 6: Tidewater's Active Fleet
Tidewater’s Active Fleet As of June 30, 2013 Year Built Deepwater vessels Towing Supply/Supply Other vessels 239 “New” vessels – 6.1 avg yrs “Traditional” vessels – 27.3 avg yrs
Slide 7: Vessel Population by Owner
Vessel Population by Owner (AHTS and PSVs only) Estimated as of September 2013 Source: ODS-Petrodata and Tidewater Tidewater Competitor #2 Competitor #3 Competitor #4 Competitor # 5 Competitor #1 Avg. All Others (2,267 total vessels for 400+ owners)
Slide 8: History of Earnings Growth & Solid Through-Cycle Returns
History of Earnings Growth & Solid Through-Cycle Returns ** EPS in Fiscal 2004 is exclusive of the $.30 per share after tax impairment charge. EPS in Fiscal 2006 is exclusive of the $.74 per share after tax gain from the sale of six KMAR vessels. EPS in Fiscal 2007 is exclusive of $.37 per share of
Slide 9: Total Revenue and Margin Fiscal 2008-2014
Total Revenue and Margin Fiscal 2008-2014 $300 million $150 million 50.0% Prior peak period (FY2009) averaged quarterly revenue of $339M, Prior peak period (FY2009) averaged quarterly revenue of $339M, quarter operating margin of $175.6M at 51.8% Note: Vessel operating margin is defined as vessel re
Slide 10: Global Strength
Global Strength Unique global footprint; 50+ years of Int’l experience Unmatched scale and scope of operations Strength of International business complements U.S. activity Secular growth Longer contracts Demand consistency over broader regions Solid customer base of NOC’s and IOC’s
Slide 11: Our Global Footprint
Americas 63 (23%) SS Africa/Europe 142 (53%) MENA 41 (15%) Asia/Pac 25 (9%) Our Global Footprint Vessel Distribution by Region (excludes stacked vessels - as of 6/30/13) In 1Q FY 2014, ~9% of vessel revenue was generated in the U.S. by < 15 vessels; however, ~15 other U.S.-flagged vessels are curren
Slide 12: Active Vessel Dayrates & Utilization by Segment
Active Vessel Dayrates & Utilization by Segment Impact of $7.4 million of retroactive revenue recorded in September 2012 quarter is excluded from 9/12 average dayrates and included in the respective March 2012 and June 2012 quarterly average dayrates. Utilization stats exclude stacked vessels. 60% 7
Slide 13: The Largest Modern OSV Fleet in the Industry
Vessel Count (2) Total Cost (2) Average Cost per Vessel Deepwater PSVs 96 $2,620m $27.3m Deepwater AHTSs 11 $358m $32.5m Towing Supply/Supply 109 $1,615m $14.8m Other 56 $285m $5.1m TOTALS: 272 $4,878m (1) $17.9m (1) $4,225m (87%) funded through 6/30/13 (2) Vessel count and total cost is net of 24 v
Slide 14: Vessels Under Construction
Count Deepwater PSVs 23 Deepwater AHTSs - Towing Supply/Supply 6 Other 3 Total 32 Estimated delivery schedule – 7 for the remainder of FY ’14, 16 in FY ’15 and 9 thereafter. CAPX of $246m for the remainder of FY ’14, $304m in FY ‘15 and $102m in FY ’16. ….. and More to Come Vessels Under Constructio
Slide 15: Strong Financial Position Provides Strategic Optionality
Cash & Cash Equivalents $65 million Total Debt $1,475 million Shareholders Equity $2,585 million Net Debt / Net Capitalization 35% Total Debt / Capitalization 36% Strong Financial Position Provides Strategic Optionality As of June 30, 2013 ~$385 million of available liquidity as of 6/30/13, includin
Slide 16: New Vessel Trends: Deepwater PSVs
New Vessel Trends by Vessel Type Deepwater PSVs $152 million, or 46%, of Vessel Revenue in Q1 Fiscal 2014 - $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY09 FY10 FY11 FY12 FY13 FY14 Average Fleet Size Average Day Rate
Slide 17: New Vessel Trends: Deepwater AHTS
$28 million, or 9%, of Vessel Revenue in Q1 Fiscal 2014 New Vessel Trends by Vessel Type Deepwater AHTS Q1 Fiscal 2014 Avg Day Rate: $29,561 Utilization: 95.9% - $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY08 FY09 FY
Slide 18: New Vessel Trends: Towing Supply/Supply Vessels
$112 million, or 34%, of Vessel Revenue in Q1 Fiscal 2014 Q1 Fiscal 2014 Avg Day Rate: $14,595 Utilization: 81.7% New Vessel Trends by Vessel Type Towing Supply/Supply Vessels 101 102 - $0 $5,000 $10,000 $15,000 $20,000 $25,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 19: Potential for Future Earnings Acceleration
~$3.75 EPS ~$7.00 EPS ~$12.25 EPS Potential for Future Earnings Acceleration Average Day rates $17,955 * $19,750 ( + 10% ) $21,725 ( + 10% ) 81.2%* 85.0% 90.0% 292 vessel assumption (240 current new vessels + 32 under construction + 20 additional new vessels next year). * 6/30/13 quarterly actual st
Slide 20: Financial Strategy Focused on Creating Long-Term Shareholder Value
Financial Strategy Focused on Creating Long-Term Shareholder Value Maintain Financial Strength EVA-Based Investments On Through-cycle Basis Deliver Results
Slide 21: UBS Houston Energy Symposium
September 18, 2013 UBS Houston Energy Symposium Joseph M. Bennett EVP & Chief IRO
Slide 22: Appendix
Appendix
Slide 23: Fleet Renewal & Expansion Funded by CFFO
Fleet Renewal & Expansion Funded by CFFO thru Fiscal 2013 Over a 14-year period, Tidewater has invested $4.6 billion in CapEx, and paid out ~$1.2 billion through dividends and share repurchases. Over the same period, CFFO and proceeds from dispositions were $3.8 billion and $749 million, respectivel
Slide 24: New Fleet Driving Results
New Fleet Driving Results Vessel Revenue ($) Average Fleet Count 235 Average Active New Vessels in Q1 2014 $332 million Vessel Revenue in Q1 2014 (94% from New Vessels) - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 New Traditional Stacked Q1
Slide 25: Cyclical Upturn should Drive Margin Expansion
Cyclical Upturn should Drive Margin Expansion Vessel Cash Operating Margin ($) Vessel Cash Operating Margin (%) $135 million Vessel Margin in Q1 FY2014 (98% from New Vessels) Q1 FY2014 Vessel Margin: 41% 0% 10% 20% 30% 40% 50% 60% 70% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY
Slide 26: Current Revenue Mix: Quality of Customer Base
Current Revenue Mix Quality of Customer Base Our top 10 customers in Fiscal 2013 (4 Super Majors, 2 NOC’s, 3 IOC’s and 1 independent) accounted for 58% of our revenue Super Majors 38% NOC's 21% Others 41%
Slide 27: Worldwide Headquarters
>> New Orleans, Louisiana Worldwide Headquarters Tidewater Inc. Pan American Life Center 601 Poydras Street, Suite 1500 New Orleans, Louisiana 70130- USA P: +1504 568 1010 >> Houston, Texas Tidewater Marine, L.L.C. 6002 Rogerdale Road Suite 600 Houston, Texas 77072-1655 P: +1713 470 5300 T : Bias “G