Tidewater Inc. · NYSE:TDW
Tidewater — Capital One Securities 9th Annual Energy Conference 2014
31 slides from Tidewater's conference presentation, Dec 16, 2014
Slide 1: Capital One Securities 9th Annual Energy Conference
Capital One Securities, Inc. th Annual Energy Conference December 10, 2014 Joseph M. Bennett EVP & Chief IRO 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: Key Tidewater Takeaways
• Consistent goal of “Best in Class” safety and compliance culture • History of solid earnings and returns on a through-cycle basis • Largest “NEW” OSV fleet in the industry, operating in over 50 countries with ~9,000 employees worldwide • Continued solid financial position, with considerable ready
Slide 4: Safety Record Rivals Leading Companies
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. Safety Record Rivals Leading Companies Capital One Securities, Inc. 9th Annual Energy Conference • Safe Operations is Priority #1 • Sto
Slide 5: Working Offshore Rig Trends
Source: ODS-Petrodata Note: 42 “Other” rigs, along with the Jackups and Floaters, provide a total working rig count of 720 in November 2014. Prior peak (summer 2008) Jackups Floaters Working Offshore Rig Trends
Slide 6: Drivers of our Business: Peak to Present
July 2008 (Peak) Jan. 2011 (Trough) November 2014 Working Rigs 603 538 720 Rigs Under Construction 186 118 246 OSV Global Population 2,033 2,599 3,233 OSV’s Under Construction 736 367 470 OSV/Rig Ratio 3.37 4.83 4.49 Source: ODS-Petrodata and Tidewater Drivers of our Business “Peak to Present” Worki
Slide 7: Tidewater's Active Fleet
Tidewater’s Active Fleet As of September 30, 2014
Slide 8: Our Global Footprint – Vessel Count by Region
Americas 66 (25%) SS Africa/Europe 124 (48%) MENA 45 (17%) Asia/Pac 25 (10%) Our Global Footprint – Vessel Count by Region (Excludes stacked vessels – as of 9/30/14 )
Slide 9: Our Global Footprint – Vessel Class by Region
New Avg. Vessels NBV Deepwater 32 19.3M Towing Supply 17 $10.5M Other 9 $3.3M 58 New Avg. Vessels NBV Deepwater 11 $17.7M Towing Supply 31 $11.9M Other 0 0 42 New Avg. Vessels NBV Deepwater 38 $27.4M Towing Supply 43 $12.8M Other 36 $1.9M 117 New Avg. Vessels NBV Deepwater 10 $25.2M Towing Supply 14
Slide 10: The Largest Modern OSV Fleet in the Industry
Vessel Count (2) Total Cost (2) Average Cost per Vessel Deepwater PSVs 102 $2,900m $28.4m Deepwater AHTSs 12 $387m $32.3m Towing Supply/Supply 111 $1,667m $15.0m Other 53 $227m $4.3m TOTALS: 278 $5,181m (1) $18.6m (1) ~$4.6b (89%) funded through 9/30/14 (2) Vessel count and total cost is net of 26 v
Slide 11: Vessels Under Construction… and More to Come
Count Deepwater PSVs 23 Deepwater AHTSs - Towing Supply/Supply 6 Other 1 Total 30 Estimated delivery schedule – 8 remaining in FY ’15, 19 in FY ‘16 and 3 thereafter. CAPX of $269m remaining in FY ’15, $267m in FY ‘16 and $51m thereafter. Vessels Under Construction* As of September 30, 2014 …and More
Slide 12: The Upgrading of the Tidewater Fleet (A 10 Year Review)
Current Future Vintage DWT CIP Fleet Fleet Current Future Vintage BHP New Fleet CIP Fleet Fleet Current Future Vintage BHP CIP Fleet Fleet New Vintage Total DWT Fleet Fleet Fleet New Vintage Total BHP Fleet Fleet Fleet New Vintage Total BHP Fleet Fleet Fleet The Upgrading of the Tidewater Fleet (A 1
Slide 13: CAPX Expected to Decrease from Recent High Levels
CAPX Expected to Decrease from Recent High Levels Fiscal Year Fiscal 2014 is exclusive of Troms acquisition Amounts in Fiscal 2015-2017 represent known CAPX on only the 30 vessels and 2 ROVs under construction as of 9/30/14. Additional CAPX could occur, but trendline is expected down.
Slide 14: Strong Financial Position Provides Strategic Optionality
Cash & Cash Equivalents $124 million Total Debt $1,496 million Shareholders Equity $2,770 million Net Debt / Net Capitalization 33% Total Debt / Capitalization 35% As of September 30, 2014 ~$725 million of available liquidity as of 9/30/14, including $600 million of unused capacity under the company
Slide 15: Debt Maturities Limited for Several Years
Debt Maturities as of 9/30/14 Limited for Several Years Fiscal Year
Slide 16: Earnings per Share history
** 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 after tax gains from the sale of 14 offshore tugs. EPS in
Slide 17: New Vessel Trends by Vessel Type: Deepwater PSVs
$192 million, or 49%, of Vessel Revenue in Q2 Fiscal 2015 New Vessel Trends by Vessel Type Deepwater PSVs
Slide 18: New Vessel Trends by Vessel Type: Towing Supply/Supply Vessels
$127 million, or 32%, of Vessel Revenue in Q2 Fiscal 2015 New Vessel Trends by Vessel Type Towing Supply/Supply Vessels
Slide 19: Tidewater's New Subsea Business
• Six work-class ROV’s in current fleet and two more on order • Commercial operations underway with additional opportunities in Americas, SSAE and Asia/Pac • ROV capabilities generating potential for OSV pull through Tidewater’s New Subsea Business
Slide 20: Tidewater's Future
• Continue to improve upon stellar safety and compliance programs • Maintain solid balance sheet and financial flexibility to deal with industry uncertainties and seize opportunities when presented • Disciplined deployment of cash as we complete our OSV fleet replacement and enhancement and expand o
Slide 21: Capital One Securities 9th Annual Energy Conference
Capital One Securities, Inc. th Annual Energy Conference December 10, 2014 Joseph M. Bennett EVP & Chief IRO
Slide 22: Of risewarer
Of risewarer ROMS POLLUK
Slide 23: Financial Strategy Focused on Creating Long-Term Shareholder Value
Maintain Maintain Financial Strength Financial Strength EVA-Based Investments EVA-Based Investments On Through-cycle Basis On Through-cycle Basis Deliver Results Deliver Results Financial Strategy Focused on Creating Long-Term Shareholder Value
Slide 24: The Worldwide OSV Fleet
Source: ODS-Petrodata and Tidewater As of November 2014, there are approximately 470 additional AHTS and PSV’s (~15% of the global fleet) under construction. Global fleet is estimated at 3,233 vessels, including ~700 vessels that are 25+ yrs old (22%). The Worldwide OSV Fleet (Includes AHTs and PSVs
Slide 25: Vessel Population by Owner
Source: ODS-Petrodata and Tidewater Vessel Population by Owner (AHTS and PSVs only) Estimated as of November 2014
Slide 26: Active Vessel Dayrates & Utilization by Segment
Utilization stats exclude stacked vessels. Active Vessel Dayrates & Utilization by Segment
Slide 27: New Vessel Trends by Vessel Type: Deepwater AHTS
$34 million, or 9%, of Vessel Revenue in Q2 Fiscal 2015 New Vessel Trends by Vessel Type Deepwater AHTS
Slide 28: Fleet Renewal & Expansion Largely Funded by CFFO
Over a 15-year period, Tidewater has invested ~$5.2 billion in CapEx, and paid out ~$1.3 billion through dividends and share repurchases. Over the same period, CFFO and proceeds from dispositions were ~$3.9 billion and ~$800 million, respectively. Fleet Renewal & Expansion Largely Funded by CFFO
Slide 29: Total Revenue and Margin Fiscal 2008-2015
Note: Vessel operating margin is defined as vessel revenue less vessel operating expenses Prior peak period (FY2009) averaged quarterly revenue of $339M, quarter operating margin of $175.6M at 51.8% Total Revenue and Margin Fiscal 2008-2015
Slide 30: Cyclical Upturn should Drive Margin Expansion
Vessel Cash Operating Margin ($) Vessel Cash Operating Margin (%) $178 million Vessel Margin in Q2 FY2015 (97% from New Vessels) Q2 FY2015 Vessel Margin: 46% Cyclical Upturn should Drive Margin Expansion
Slide 31: Quality of Customer Base
Super Majors 37% NOC's 22% Others 41% Our top 10 customers in Fiscal 2014 (4 Super Majors, 4 NOC’s, 1 IOC’s and 1 independent) accounted for 62% of our revenue Current Revenue Mix Quality of Customer Base
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