Tidewater Inc. · NYSE:TDW
Tidewater — Credit Suisse 2010 Energy Summit
40 slides from Tidewater's conference presentation, Feb 10, 2010
Slide 1: Tidewater at Credit Suisse 2010 Energy Summit
TIDEWATER February 4, 2010 Quinn Fanning Executive Vice President, CFO Joseph M. Bennett Executive Vice President and Chief Investor Relations Officer Exhibit 99.1 TIDEWATER CREDIT SUISSE 2010 CREDIT SUISSE 2010 ENERGY SUMMIT ENERGY SUMMIT Quinn Fanning Executive Vice President, CFO Joseph M. Bennet
Slide 2: 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 forecasted results, or the
Slide 3: Our New Logo, At Least Until Sunday
+ = OUR NEW LOGO, AT OUR NEW LOGO, AT LEAST UNTIL SUNDAY !!! LEAST UNTIL SUNDAY !!!
Slide 4: Safety – A Top Priority
SAFETY – SAFETY – A TOP PRIORITY A TOP PRIORITY
Slide 5: A Reminder of Our Workplace
A REMINDER OF A REMINDER OF OUR WORKPLACE OUR WORKPLACE
Slide 6: Securing Our People and Assets
SECURING OUR PEOPLE SECURING OUR PEOPLE AND ASSETS AND ASSETS
Slide 7: Safety Record Rivals Leading Companies
0.00 0.25 0.50 0.75 1.00 2002 2003 2004 2005 2006 2007 2008 TIDEWATER DOW CHEMICAL DUPONT EXXON/MOBIL BP SAFETY RECORD RIVALS SAFETY RECORD RIVALS LEADING COMPANIES LEADING COMPANIES Total Recordable Incident Rates Calendar Years
Slide 8: Tidewater Today
8 Solid safety record Unmatched (and growing) global footprint Fleet positioned to earn solid returns on a through-cycle basis Strong balance sheet Continuing to invest in new vessels with expanded capabilities, while disposing of older, more traditional vessels Track record of prudent capital manag
Slide 9: Our Strategy
9 Culture is a competitive advantage Safety-oriented Deep knowledge of customer needs Aggressive management of operating and capital costs Maintain maximum financial flexibility to deal with uncertainties Selectively deploy cash to renew fleet with expanded capabilities Opportunistically utilize bal
Slide 10: Expected Retirements Exceed New Deliveries
0 50 100 150 200 250 300 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 Of the total 2,390 vessels, 333 vessels are 30+ yrs old , EXPECTED RETIREMENTS EXPECTED RETIREMENTS EXCEED NEW DELIVERIES EXCEED NEW DELIVERIES (Includes AHTS and PSV’s only) (Includes AHTS and PSV’s only) Estimated as of Dec
Slide 11: Vessel Population by Owner
Tidewater Competitor #2 Competitor #3 Competitor #4 Competitor # 5 Competitor #1 Avg. All Others (1,721 total vessels for 300+ owners) 275 104 97 72 62 59 5 (Includes AHTS and PSV’s only) (Includes AHTS and PSV’s only) VESSEL POPULATION VESSEL POPULATION BY OWNER BY OWNER Estimated as of December 20
Slide 12: Vessel / Rig Ratio
12 2,390 Global Vessel Count (AHTS & PSV only) 553 Global Working Rigs 4.3 Vessel to Rig Ratio 145 New rigs under construction Current Vessel Demand Dynamics: Possible Incremental Vessel Demand: (???Cancellations???) VESSEL / RIG RATIO VESSEL / RIG RATIO Source: ODS-Petrodata and Tidewater Estimated
Slide 13: Working Rig Counts
Jackups Semi Drillships June 2008 379 145 30 December 2009 317 146 44 Variance (62) 1 14 13 GOM accounts for 34 of the 62 working jackup count variance GOM accounts for 34 of the 62 working jackup count variance Source: ODS-Petrodata and Tidewater WORKING RIG COUNTS WORKING RIG COUNTS
Slide 14: Rigs Contracted by Our Top 10 Customers
* PEMEX alone has 27 of the 74 jackups Jackups Semi Drillships December 2009 working rigs 317 146 44 Working for top 10 customers 74 74 19 RIGS CONTRACTED BY RIGS CONTRACTED BY OUR TOP 10 CUSTOMERS OUR TOP 10 CUSTOMERS (Estimated as of December 2009) (Estimated as of December 2009) * PEMEX alone has
Slide 15: International Strength
15 Unique global footprint; 50+ years of Int’l experience Unmatched scale and scope of operations 31 of 33 current newbuilds in Int’l yards Longer contracts, better utilization, higher dayrates for new & traditional vessels operating in Int’l markets Solid customer base of NOC’s and IOC’s INTERNATIO
Slide 16: Current Revenue Mix – Quality of Customer Base
NOC's 23% Others 37% Super Majors 40% Our top 10 customers in Fiscal 2009 (5 Super Majors, 4 NOC’s and one large independent) accounted for 60% of our revenue Our top 10 customers in Fiscal 2009 (5 Super Majors, 4 NOC’s and one large independent) accounted for 60% of our revenue CURRENT REVENUE MIX
Slide 17: Tidewater Today – International Strength
Active Vessel Count By Region (excludes stacked vessels) Europe/M.E. 33 (11%) (11%) Far East 50 (16%) (16%) West Africa 130 (43%) (43%) Central/South America 73 (24%) (24%) 94% International 6% Domestic (vs. 65% International and 35% Domestic ~ ten years ago) North America 18 (6%) Europe/M.E. 33 (11
Slide 18: Growing Industry's Largest Fleet
Strive for a Balance Between Performance, Growth and Financial Strength Ability to support continued fleet renewal and growth Current environment will present opportunities to utilize our financial strength Funding with internal cash flow and available credit Always weigh build vs. buy criteria Stri
Slide 19: Largest New Fleet in the Industry
Vessel Commitments Jan. ’00 – Dec. ‘0 9 (1) Includes vessels added to the fleet financed by leases. (2) $2,578m funded through 12/31/09. *Excludes ENSCO fleet acquisition effected April 1, 2003. At 12/31/09, 163 new vessels in fleet with 4.7 year average age $1,454m 74 PSV’s $3,106m (2) 214 TOTALS:
Slide 20: …And Counting: Vessels Under Construction
Estimated delivery schedule – 9 remaining in FY’ 10, 12 in FY’ 11, 13 in FY’ 12 and 2 thereafter. CAPX of $183m remaining in FY’ 10, $191m in FY’ 11, $141m in FY’ 12 and $12m in FY’ 13 Building vessels worldwide Due diligence focused on yards Tidewater staff supervise on site Vessels Under Construct
Slide 21: Some Acquisition Opportunities Are Better Than Others
SOME ACQUISITION SOME ACQUISITION OPPORTUNITIES ARE OPPORTUNITIES ARE BETTER THAN OTHERS !!! BETTER THAN OTHERS !!!
Slide 22: Out With the Traditional – In With the New
Out With the Traditional – In With the New 0 100 200 300 400 500 Active Fleet Dispositions (A) Net new vessels added to the fleet since January 2000, including 36 vessels under construction at 12/31/09. 340 (B) 495 (C) 199 New Vessels (A) 404 Sold 91 Scrapped (C) 495 vessel dispositions generated $6
Slide 23: Significant Earnings Growth
$0.00 $2.00 $4.00 $6.00 $8.00 Fiscal 2004 Fiscal 2005 Fiscal 2006 Fiscal 2007 Fiscal 2008 Fiscal 2009 50% Five-Year Compounded Annual Earnings Growth Rate ** 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
Slide 24: Strong Balance Sheet
~ $790 million of Available Liquidity at 12/31/09 (Cash plus $450m Revolver) $300 $275 Long-term Debt $2,245 $2,419 Stockholders’ Equity 2.1% 0% Net Debt to Total Cap $251 $337 Cash March 2009 December 2009 ($ in Millions) STRONG BALANCE SHEET STRONG BALANCE SHEET ~ $790 million of Available Liquidi
Slide 25: Selected Financial Highlights
* Adjusted Net Earnings and Adjusted EPS for the nine months ended 12/31/09 excludes $48.1 million, or $0.94 per share, related to provision for Venezuelan operations and $34.3 million, or $0.66 per share, tax benefit related to favorable resolution of tax litigation. ($ in Thousands, Except Per Sha
Slide 26: Using Cash to Grow Our Business & Return to Shareholders
$0 $100 $200 $300 $400 $500 $600 $700 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 CAPX Dividend Share Repurchase (in millions) Over this ten year period, TDW invested $2.7 billion in CAPX ($2.3 billion in our new fleet), and paid out $355 million in dividends and $516 million through share rep
Slide 27: Fleet Cash Operating Margins
$0 $100 $200 $300 $400 $500 $600 $700 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Fiscal Years Note: Cash operating margins are defined as vessel revenue less vessel operating expenses. New Vessels Traditional Vessels FLEET CASH FLEET CASH OPERATING MARGINS OPERATING MARGINS 50% 40% 30% 20% 10
Slide 28: Fleet Renewal Provides Scope for Margin Growth
0 50 100 150 200 Q1FY10 Operating Margin $156.8 ($ in millions) FLEET RENEWAL FLEET RENEWAL PROVIDES SCOPE FOR PROVIDES SCOPE FOR MARGIN GROWTH MARGIN GROWTH Traditional Vessels (37%) New Vessels (63%)
Slide 29: Fleet Renewal Provides Scope for Margin Growth
0 50 100 150 200 Q1FY10 Operating Margin Vessel Disposals $156.8 Assume ~ 2/3 of traditional vessels are disposed of over the next few years ($ in millions) ($34.9) FLEET RENEWAL FLEET RENEWAL PROVIDES SCOPE FOR PROVIDES SCOPE FOR MARGIN GROWTH MARGIN GROWTH
Slide 30: Fleet Renewal Provides Scope for Margin Growth
0 50 100 150 200 Q1FY10 Operating Margin Vessel Disposals CIP $156.8 46 vessels currently under construction at 6/30/09 Analysis assumes: Average dayrate of $20,000/day Utilization of 90% Cash operating margin of 55% ($ in millions) ($34.9) +$41.5 FLEET RENEWAL FLEET RENEWAL PROVIDES SCOPE FOR PROVI
Slide 31: Fleet Renewal Provides Scope for Margin Growth
0 50 100 150 200 Q1FY10 Operating Margin Vessel Disposals CIP +5% Utilization +$1,000 Dayrate $156.8 Near-term vessel retirements followed by market upturn should positively impact utilization and dayrates Analysis assumes +5% on utilization and +$1,000 on average dayrates for existing vessels ($ in
Slide 32: Fleet Renewal Provides Scope for Margin Growth
0 50 100 150 200 Q1FY10 Operating Margin Vessel Disposals CIP +5% Utilization +$1,000 Dayrate $156.8 This information is not meant to be a prediction of future quarterly performance, but simply an indication of quarterly operating margin impacts resulting from future fleet additions and reductions,
Slide 33: Improving Average Age of Tidewater Fleet
Assumptions: 1) Average 45 vessel disposals per year in future (averaged 47 per year last three years). 2) Include 36 vessels under construction ( including three purchase commitments) in year delivered plus additional newbuilds/acquisitions from approximately $500 million per year of future commitm
Slide 34: Financial Strategy
Deploy Capital Deliver Results Maintain Financial Strength FINANCIAL STRATEGY FINANCIAL STRATEGY Deploy Capital Deliver Results Maintain Financial Strength Focused on Long Term Shareholder Value Focused on Long Term Shareholder Value
Slide 35: Tidewater at Credit Suisse 2010 Energy Summit
TIDEWATER February 4, 2010 Quinn Fanning Executive Vice President, CFO Joseph M. Bennett Executive Vice President and Chief Investor Relations Officer TIDEWATER CREDIT SUISSE 2010 CREDIT SUISSE 2010 ENERGY SUMMIT ENERGY SUMMIT Quinn Fanning Executive Vice President, CFO Joseph M. Bennett Executive V
Slide 36: Appendix
TIDEWATER TIDEWATER APPENDIX APPENDIX
Slide 37: International Vessels Dayrates and Utilization
12/06 6/07 12/07 6/08 12/08 6/09 12/09 37 $100 change in dayrate = $8.3M in revenue 1% change in utilization = $15.2M in revenue * Dayrate and utilization information is for all classes of vessels operating international. 50% 60% 70% 80% 90% $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 INTERNATIONAL
Slide 38: International Vessel Dayrates
$3,000 $5,000 $7,000 $9,000 $11,000 $13,000 $15,000 $17,000 $19,000 12/06 06/07 12/07 06/08 12/08 06/09 12/09 * Dayrate information is for all classes of vessels operating internationally. 38 New Vessels Traditional Vessels INTERNATIONAL INTERNATIONAL VESSEL VESSEL DAYRATES DAYRATES
Slide 39: Domestic Vessels Dayrates and Utilization
12/06 6/07 12/07 6/08 12/08 6/09 12/09 39 * Dayrate and utilization information is for all classes of vessels operating in the U.S. 30% 40% 50% 60% 70% 80% 90% $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 DOMESTIC VESSELS DOMESTIC VESSELS Dayrates and Utilization Dayrates and Utiliza
Slide 40: Domestic Vessel Dayrates
$3,000 $5,000 $7,000 $9,000 $11,000 $13,000 $15,000 $17,000 $19,000 $21,000 $23,000 12/06 06/07 12/07 06/08 12/08 06/09 12/09 * Dayrate information is for all classes of vessels operating in the U.S. 40 New Vessels Traditional Vessels DOMESTIC VESSEL DOMESTIC VESSEL DAYRATES DAYRATES