Tidewater Inc. · NYSE:TDW
Tidewater — Pareto Securities Oil & Offshore Conference 2015
29 slides from Tidewater's conference presentation, Sep 4, 2015
Slide 1: Pareto Securities Oil & Offshore Conference
Pareto Securities Oil & Offshore Conference September 2, 2015 Jeffrey M. Platt Joseph M. Bennett President and CEO Executive Vice President and Chief Investor Relations Officer Exhibit 99.1
Slide 2: Forward-Looking Statements
Pareto Securities Oil & Offshore Conference 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 f
Slide 3: Tidewater's Strategy & Focus in a Challenging Market
Pareto Securities Oil & Offshore Conference 3 Providing safe, efficient and compliant operations New fleet comprised of vessels that service all water depths Geographic diversity Staying close to our customers Prompt, proactive cost-cutting initiatives (“control what we can control”) Reducing CapEx,
Slide 4: Safe Operations is Priority #1
Pareto Securities Oil & Offshore Conference 4 Operating safely offshore is like holding a snake by its head. It's a task that can't be turned loose not for a microsecond or an accident will strike without pity. Stop Work Obligation Safety performance is 25% of mgt. incentive comp Safe Operations is
Slide 5: Too Many Offshore Rigs, and Activity Levels Drive OSV Demand
Pareto Securities Oil & Offshore Conference 5 Too Many Offshore Rigs, and Activity Levels Drive OSV Demand Source: IHS-Petrodata Note: “Other” rigs, along with the Jackups and Floaters, provide a total working rig count of in August 2015. Prior peak (summer 2008) Jackups Floaters Rig CIP Jackups Flo
Slide 6: Drivers of our Business: Peak to Present
Pareto Securities Oil & Offshore Conference 6 July 2008 (Peak) Jan. 2011 (Trough) August 2015 Working Rigs 603 538 600 Rigs Under Construction 186 118 209 OSV Global Population 2,033 2,599 3,364 OSV’s Under Construction 736 367 398 OSV/Rig Ratio 3.37 4.83 5.60 (4.94 without ~400 old vessels believed
Slide 7: Tidewater's Active Fleet
Pareto Securities Oil & Offshore Conference 7 Tidewater’s Active Fleet As of June 30, 2015 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 Year Built Deepwater vessels Towing Supply/Supply Other vessels 222 “New” vessels – 7.4 avg yrs 12 “Traditional” vessels – 27.3 avg yrs (only 4 OSVs)
Slide 8: Vessel Population by Owner
Pareto Securities Oil & Offshore Conference 8 Vessel Population by Owner (AHTS and PSVs only) Estimated as of August 2015 Tidewater Competitor #2 Competitor #3 Competitor #4 Competitor # 5 Competitor #1 Avg. All Others (~2,573 total vessels for 400+ owners) Source: IHS-Petrodata and Tidewater
Slide 9: Geographic Diversity – Vessel Count by Region
Pareto Securities Oil & Offshore Conference 9 Americas 65 (28%) SS Africa/Europe 103 (44%) MENA 44 (19%) Asia/Pac 22 (9%) Geographic Diversity – Vessel Count by Region (Excludes stacked vessels – as of 6/30/15) 38 additional Tidewater vessels were stacked as of 6/30/15.
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Slide 11: Staying Close to our Customers – Strong Customer Base
Pareto Securities Oil & Offshore Conference 11 Staying Close to our Customers – Strong Customer Base Current Revenue Mix Super Majors 34% NOC's 33% Others 33% Approximately 60% of our revenue is derived from drilling support activity and 40% from non-drilling related activity, such as support of pro
Slide 12: Our Remaining Construction Backlog
Pareto Securities Oil & Offshore Conference 12 Count Deepwater PSVs 13 Deepwater AHTSs - Towing Supply/Supply 3 Other - Total 16 Estimated delivery schedule – 10 remaining in FY ’16 and 6 in FY ‘17. CAPX of $154m remaining in FY ‘16 and $69m in FY ‘17. Our Remaining Construction Backlog Vessels Unde
Slide 13: CapEx is Decreasing from Recent High Levels
Pareto Securities Oil & Offshore Conference 13 CapEx is Decreasing from Recent High Levels $0 $200 $400 $600 $800 $1,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Amounts in Fiscal 2016 and 2017 represent known CAPX on only the 16 vessels under construction as of 6/30/15. Fiscal 20
Slide 14: Solid Balance Sheet and Financial Flexibility
Pareto Securities Oil & Offshore Conference 14 Cash & Cash Equivalents $103 million Total Debt $1,544 million Shareholders Equity $2,451 million Net Debt / Net Capitalization 37% Total Debt / Capitalization 39% Solid Balance Sheet and Financial Flexibility Our Financial Position Provides Us Strategi
Slide 15: Debt Maturities and Covenants
Pareto Securities Oil & Offshore Conference 15 Debt Maturities and Covenants as of 6/30/15 Maturities Limited for Several Years Fiscal Year $0 $200 $400 $600 $800 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Debt Covenants: 1) Debt/Total Capitalization Ratio of not greater than 5
Slide 16: Return Capital to Shareholders
Pareto Securities Oil & Offshore Conference 16 Return Capital to Shareholders Consistent Dividends and Opportunistic Share Repurchases $0 $50 $100 $150 $200 $250 $300 $350 $400 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Dividends Share Repurchases (in millions) F
Slide 17: Tidewater's Subsea Business
Pareto Securities Oil & Offshore Conference 17 Tidewater’s Subsea Business Eight work-class ROVs in current fleet Commercial operations underway with additional opportunities in Americas, SSAE and Asia/Pac ROV capabilities generating potential for OSV pull through
Slide 18: Tidewater's Strategy
Pareto Securities Oil & Offshore Conference 18 Tidewater’s Strategy Continue to improve upon stellar safety and compliance programs Stay close to our customers Monitor industry developments to adjust our playbook accordingly - Pro-active cost reduction initiatives - Maintain/protect liquidity Mainta
Slide 19: Any Questions?
Pareto Securities Oil & Offshore Conference 19 ANY QUESTIONS?? Q & A???
Slide 20: HOUSTON, TEXAS Tidewater Marine, L.L.C. 6002 Rogerdale Road Suite 600 Houston, Texas 77072-1655 P:
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
Slide 21: The Worldwide OSV Fleet
Pareto Securities Oil & Offshore Conference 21 Vessels > 25 years old today The Worldwide OSV Fleet (Includes AHTS and PSVs only) Estimated as of August 2015 As of August 2015, there are approximately 400 additional AHTS and PSV’s (~12% of the global fleet) under construction. Some number of these,
Slide 22: Fleet Renewal & Expansion Largely Funded by CFFO
Pareto Securities Oil & Offshore Conference 22 Fleet Renewal & Expansion Largely Funded by CFFO Over a 16-year period, Tidewater has invested ~$5.5 billion in CapEx, and paid out ~$1.4 billion through dividends and share repurchases. Over the same period, CFFO and proceeds from dispositions were ~$4
Slide 23: History of Solid Earnings and Returns on a Through-Cycle Basis
Pareto Securities Oil & Offshore Conference 23 History of Solid Earnings and Returns on a Through-Cycle Basis Adjusted Return On Avg. Equity 4.3% 7.2% 12.4% 18.9% 18.3% 19.5% 11.4% 5.0% 4.3% 5.9% 7.0% 6.3% Adjusted EPS** $1.03 $1.78 $3.33 $5.94 $6.39 $7.89 $5.20 $2.40 $2.13 $3.03 $3.69 $3.33 $0.00 $
Slide 24: Active Vessel Dayrates & Utilization by Segment
Pareto Securities Oil & Offshore Conference 24 Active Vessel Dayrates & Utilization by Segment $6,000 $10,000 $14,000 $18,000 $22,000 $26,000 Americas Asia/Pac MENA Sub Sah Africa/Eur. 60% 70% 80% 90% 100% Utilization stats exclude stacked vessels.
Slide 25: New Vessel Trends by Vessel Type: Deepwater PSVs
Pareto Securities Oil & Offshore Conference 25 New Vessel Trends by Vessel Type Deepwater PSVs - $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 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Average
Slide 26: New Vessel Trends by Vessel Type: Deepwater AHTS
Pareto Securities Oil & Offshore Conference 26 New Vessel Trends by Vessel Type Deepwater AHTS - $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 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Average
Slide 27: New Vessel Trends by Vessel Type: Towing Supply/Supply
Pareto Securities Oil & Offshore Conference 27 New Vessel Trends by Vessel Type Towing Supply/Supply Vessels 101 101 102 103 105 105 105 104 105 - $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 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY08 FY09 FY
Slide 28: Vessel Revenue and Vessel Operating Margin
Pareto Securities Oil & Offshore Conference 28 Vessel Revenue and Vessel Operating Margin Fiscal 2008-2016 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 $175.6M a
Slide 29: Historical Vessel Cash Operating Margins
Pareto Securities Oil & Offshore Conference 29 Historical Vessel Cash Operating Margins Vessel Cash Operating Margin ($) Vessel Cash Operating Margin (%) $119 million Vessel Margin in Q1 FY2016 (98% from New Vessels) Q1 FY2016 Vessel Margin: 40%
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