Tidewater Inc. · NYSE:TDW
Tidewater — J.P. Morgan Inaugural Energy Equity Conference 2016
26 slides from Tidewater's conference presentation, Jul 6, 2016
Slide 1: J.P. Morgan Inaugural Energy Equity Conference 2016
J.P. Morgan Inaugural Energy Equity Conference 2016 June 29, 2016 Joseph M. Bennett Executive Vice President and Chief Investor Relations Officer Quinn P. Fanning Executive Vice President and Chief Financial Officer Exhibit 99.1
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: Strategy and Focus in a Challenged Market, and Results
Providing safe, efficient and compliant operations – TRIR of 0.08 per 200,000 manhours in fiscal 2016 was lowest in company history, and NO lost time accidents New fleet comprised of vessels that service all water depths – 192 active vessels at 3/31/16 with 8.7 year average age. “Smart stacking” ves
Slide 4: What Tidewater Will NOT Do
What Tidewater Will NOT Do J.P. Morgan Inaugural Energy Equity Conference 2016 We will NOT compromise safety We will NOT compromise on compliance We will NOT jeopardize fleet integrity/capability - “Smart stacking” vessels, with continual maintenance, while maintaining a new fleet comprised of vesse
Slide 5: Stop Work Obligation
Stop Work Obligation Safety performance is 25% of mgt. incentive comp Safe Operations is Priority #1 J.P. Morgan Inaugural Energy Equity Conference 2016 It's a task that can't be turned loose not for a microsecond or an accident will strike without pity. Operating safely offshore is like holding a s
Slide 6: Rig Activity Levels Drive OSV Demand
Rig Activity Levels Drive OSV Demand J.P. Morgan Inaugural Energy Equity Conference 2016 Working Rigs Source: IHS-Petrodata Note: 32 “Other” rigs, along with the Jackups and Floaters, provide a total working rig count of 480 in June 2016. 303 145 Jackups Floaters
Slide 7: Tidewater's Active Fleet Versus the Worldwide OSV Fleet
J.P. Morgan Inaugural Energy Equity Conference 2016 Number of Vessels Year Built Deepwater vessels Towing Supply/Supply Other vessels 184 “New” vessels – 7.9 avg yrs 8 “Traditional” vessels – 27.1 avg yrs (no OSVs) As of June 2016, there are approximately 341 additional AHTS and PSV’s (~10% of the g
Slide 8: Vessel Population by Owner
Vessel Population by Owner (AHTS and PSVs only) Estimated as of June 2016 J.P. Morgan Inaugural Energy Equity Conference 2016 Tidewater Competitor #2 Competitor #3 Competitor #4 Competitor # 5 Competitor #1 Avg. All Others (~2,695 total vessels for 400+ owners) Source: IHS-Petrodata and Tidewater
Slide 9: Geographic Diversity – Active Vessel Count by Region
Geographic Diversity – Active Vessel Count by Region (Excludes stacked vessels – as of 3/31/16) J.P. Morgan Inaugural Energy Equity Conference 2016 Americas 49 vessels (26%) SS Africa/Europe 89 vessels (46%) MENA 38 vessels (20%) Asia/Pac 16 vessels (8%) 192 total active vessels and 77 additional st
Slide 10: Staying Close to our Customers – Strong Customer Base
Staying Close to our Customers – Strong Customer Base Current Revenue Mix J.P. Morgan Inaugural Energy Equity Conference 2016 Approximately 60% of our revenue is derived from drilling support activity and 40% from non-drilling related activity, such as support of production and construction activity
Slide 11: The Largest Modern OSV Fleet in the Industry
J.P. Morgan Inaugural Energy Equity Conference 2016 New Vessel Count (1) (2) Net Book Value Average NBV per Vessel Deepwater PSVs 90 $1,885m $20.9m Deepwater AHTSs 12 $280m $23.3m Towing Supply/Supply 107 $1,061m $9.9m Other 39 $68m $1.7m TOTALS: 248 $3,294m $13.3m . “New Vessels” are defined as ves
Slide 12: Our Remaining Construction Backlog
Our Remaining Construction Backlog J.P. Morgan Inaugural Energy Equity Conference 2016 Count Deepwater PSVs 6 Deepwater AHTSs - Towing Supply/Supply - Other - Total 6 Vessels Under Construction As of March 31, 2016 (excludes vessels under option*) Estimated delivery schedule – 5 in FY 2017 and 1 in
Slide 13: CapEx is Decreasing from Recent High Levels
CapEx is Decreasing from Recent High Levels J.P. Morgan Inaugural Energy Equity Conference 2016 Amounts in orange in Fiscal 2017 and 2018 represent future expected CapEx on the 6 vessels under construction as of 3/31/2016, totaling ~$68m. If options are not exercised, net CapEx totals ~$37m. NOTE: F
Slide 14: Solid Balance Sheet and Financial Flexibility
Solid Balance Sheet and Financial Flexibility Our Financial Position Provides Us Strategic Optionality J.P. Morgan Inaugural Energy Equity Conference 2016 As of March 31, 2016 Cash & Cash Equivalents $678 million Total Debt $2,052 million Shareholders Equity $2,300 million Net Debt / Net Capitalizat
Slide 15: Debt Maturities and Covenants as of 3/31/16
Debt Maturities and Covenants as of 3/31/16 Maturities Limited for Several Years J.P. Morgan Inaugural Energy Equity Conference 2016 Fiscal Year Debt Maturity (in $millions) Current Debt Covenants: Debt/Total Capitalization Ratio of not greater than 55% EBITDA/Interest coverage of not less than 3.0X
Slide 16: Tidewater's Long-Term Strategy
Tidewater’s Long-Term Strategy J.P. Morgan Inaugural Energy Equity Conference 2016 Continue to improve upon stellar safety and compliance programs Remain close to our customers and provide excellent service Monitor industry developments to adjust our playbook accordingly - Continue pro-active cost r
Slide 17: Houston and New Orleans Offices
HOUSTON, TEXAS Tidewater Marine, L.L.C. 6002 Rogerdale Road Suite 600 Houston, Texas 77072-1655 P: +1 713 470 5300 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 J.P. Morgan Inaugura
Slide 18: Drivers of our Business – A View at Various Points in a Cycle
Drivers of our Business - “A View at Various Points in a Cycle” J.P. Morgan Inaugural Energy Equity Conference 2016 July 2008 January 2011 June 2016 Working Rigs 603 538 480 Rigs Under Construction 186 118 194 OSV Global Population 2,033 2,599 3,482 OSV’s Under Construction 736 367 341 OSV/Rig Ratio
Slide 19: A New Fleet that Services All Water Depths
A New Fleet that Services All Water Depths (Excludes stacked vessels – as of 3/31/16) J.P. Morgan Inaugural Energy Equity Conference 2016 Americas SSAE MENA Asia/Pac Vessel count info is as of 3/31/2016, and includes leased vessels. Avg NBV excludes the impact of leased vessels which have no NBV. Av
Slide 20: Fleet Renewal & Expansion Largely Funded by CFFO
Fleet Renewal & Expansion Largely Funded by CFFO J.P. Morgan Inaugural Energy Equity Conference 2016 Over a 17-year period, Tidewater has invested ~$5.7 billion in CapEx, and paid out ~$1.4 billion through dividends and share repurchases. Over the same period, CFFO and proceeds from dispositions wer
Slide 21: Active Vessel Dayrates & Utilization by Segment
Active Vessel Dayrates & Utilization by Segment J.P. Morgan Inaugural Energy Equity Conference 2016 Avg. Dayrate Avg. Utilization Utilization stats exclude stacked vessels.
Slide 22: New Vessel Trends by Vessel Type – Deepwater PSVs
New Vessel Trends by Vessel Type Deepwater PSVs J.P. Morgan Inaugural Energy Equity Conference 2016 Q4 Fiscal 2016 Avg Day Rate: $20,180 Utilization: 48.4% $80 million, or 44%, of Vessel Revenue in Q4 Fiscal 2016
Slide 23: New Vessel Trends by Vessel Type – Deepwater AHTS
New Vessel Trends by Vessel Type Deepwater AHTS J.P. Morgan Inaugural Energy Equity Conference 2016 Q4 Fiscal 2016 Avg Day Rate: $25,350 Utilization: 51.9% $14 million, or 8%, of Vessel Revenue in Q4 Fiscal 2016
Slide 24: New Vessel Trends by Vessel Type – Towing Supply/Supply Vessels
New Vessel Trends by Vessel Type Towing Supply/Supply Vessels J.P. Morgan Inaugural Energy Equity Conference 2016 Q4 Fiscal 2016 Avg Day Rate: $12,687 Utilization: 59.4% $73 million, or 41%, of Vessel Revenue in Q4 Fiscal 2016
Slide 25: Vessel Revenue and Vessel Operating Margin Fiscal 2008-2016
Vessel Revenue and Vessel Operating Margin Fiscal 2008-2016 J.P. Morgan Inaugural Energy Equity Conference 2016 Note: Vessel operating margin is defined as vessel revenue less vessel operating expenses Prior peak period (FY2009) averaged quarterly revenue of $339M, quarterly operating margin of $175
Slide 26: Historical Vessel Cash Operating Margins
Historical Vessel Cash Operating Margins J.P. Morgan Inaugural Energy Equity Conference 2016 Vessel Cash Operating Margin ($) Vessel Cash Operating Margin (%) $82 million Vessel Margin in Q4 FY2016 (100% from New Vessels) Q4 FY2016 Vessel Margin: 45%
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