Tidewater Inc. · NYSE:TDW
Tidewater — Johnson Rice Energy Conference 2014
31 slides from Tidewater's conference presentation, Oct 1, 2014
Slide 1: Johnson Rice Energy Conference
Johnson Rice Energy Conference Jeffrey M. Platt Joseph M. Bennett President & CEO EVP & Chief IRO October 1, 2014
Slide 2: Forward-Looking Statements
TIDEWATER 601 Poydras Street, Suite 1500, New Orleans, LA 70130 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 inf
Slide 3: Key Tidewater Takeaways
Key Tidewater Takeaways • Consistent goal of “Best in Class” safety and compliance culture • Largest “NEW” OSV fleet in the industry, operating in over 50 countries with ~9,000 employees worldwide • History of earnings growth and solid returns • “Offshore” is and will continue to be relevant. Constr
Slide 4: Safety Record Rivals Leading Companies
Safety Record Rivals Leading Companies • Safe Operations is Priority #1 • Stop Work Obligation • Safety performance is 25% of mgt. incentive comp 0.70 TOTAL RECORDABLE INCIDENT RATES 0.60 0.50 0.40 0.30 0.20 0.10 0.00 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 TIDEWATER DOW CHEMICAL CHEV
Slide 5: Working Offshore Rig Trends
Working Offshore Rig Trends 450 400 420 Jackups 350 Working Rigs 300 250 258 Floaters 200 150 100 Prior peak (summer 2008) 50 0 9/04 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 Source: ODS-Petrodata Note: 43 “Other” rigs, along with the Jackups and Floaters, provide a total working rig count o
Slide 6: Drivers of our Business "Peak to Present"
Drivers of our Business “Peak to Present” July 2008 Jan. 2011 September (Peak) (Trough) 2014 Working offshore rig Working Rigs 603 538 705 count is expected to grow Rigs Under 186 118 244 Construction Marketed OSV population OSV Global should decrease as 2,033 2,599 3,223 Population attrition exceed
Slide 7: The Worldwide OSV Fleet
The Worldwide OSV Fleet (Includes AHTs and PSVs only) Estimated as of September 2014 As of September 2014, there are approximately 455 additional AHTS and PSV’s (~14% of the global fleet) under construction. 300 250 Vessels > 25 years old today Number of Vessels Built 200 (AHTS & PSV) 150 100 50 0 1
Slide 8: Tidewater's Active Fleet
Tidewater’s Active Fleet As of June 30, 2014 Deepwater vessels Towing Supply/Supply Other vessels 40 35 244 “New” vessels – 6.9 avg yrs 30 21 “Traditional” vessels – 26.7 avg yrs Number of Vessels 25 20 15 10 5 0 1970 1975 1980 1985 1990 1995 2000 2005 2010 Year Built Johnson Rice Energy Conference
Slide 9: Vessel Population by Owner
Vessel Population by Owner (AHTS and PSVs only) Estimated as of September 2014 400 300 211 184 200 142 74 73 66 100 5 0 Avg. Tidewater Competitor #1 Competitor #2 Competitor #3 Competitor #4 Competitor # 5 All Others (2,473 total vessels for 400+ owners) Source: ODS-Petrodata and Tidewater Johnson R
Slide 10: Our Global Footprint – Vessel Count by Region
Our Global Footprint – Vessel Count by Region (Excludes stacked vessels – as of 6/30/14) MENA 44(17%) Asia/Pac 24(9%) SS Africa/Europe Americas 128(48%) 69(26%) Johnson Rice Energy Conference 10
Slide 11: Our Global Footprint – Vessel Class by Region
Our Global Footprint – Vessel Class by Region (Excludes stacked vessels – as of 6/30/14) New Avg. Traditional Americas New Avg. Traditional MENA Vessels NBV Vessels Vessels NBV Vessels Deepwater 10 $15.2M 1 Deepwater 32 $19.5M 0 Towing Supply 31 $12.1M 0 Towing Supply 17 $10.6M 7 Other 0 0 2 Other 9
Slide 12: The Largest Modern OSV Fleet in the Industry
The Largest Modern OSV Fleet in the Industry Vessel Commitments Average Cost Jan. ’00 – June ‘14 Vessel Count (2) Total Cost (2) per Vessel Deepwater PSVs 102 $2,906m $28.5m Deepwater AHTSs 12 $387m $32.3m Towing Supply/Supply 111 $1,670m $15.0m Other 53 $227m $4.3m TOTALS: 278 $5,190m(1) $18.7m (1)
Slide 13: ...and More to Come
…and More to Come Vessels Under Construction* As of June 30, 2014 Count Deepwater PSVs 26 Deepwater AHTSs - Towing Supply/Supply 6 Other 1 Total 33 Estimated delivery schedule – 13 in FY ’15, 17 in FY ‘16 and 3 thereafter. CAPX of $391m in FY ’15, $244m in FY ‘16 and $50m thereafter. Johnson Rice En
Slide 14: The Upgrading of the Tidewater Fleet
The Upgrading of the Tidewater Fleet (A 10 Year Review) 3/31/05 Snapshot 6/30/14 Snapshot Deepwater PSV New Vintage Total Current Future Vintage DWT Fleet Fleet Fleet DWT New Fleet CIP Fleet Fleet 5,000-6,000 0 0 0 5,000-6,000 16 5 21 0 4,000-4,999 4 0 4 4,000-4,999 11 15 26 0 3,000-3,999 12 2 14 3,
Slide 15: CAPX Expected to Decrease from Recent High Levels
CAPX Expected to Decrease from Recent High Levels $1,000 $800 Amounts in Fiscal 2015-2017 represent known CAPX on only the Annual CAPX (in $millions) 33 vessels and 2 ROVs under construction as of 6/30/14. Additional CAPX could occur, but trendline is expected down. $600 $400 $200 $0 2006 2007 2008
Slide 16: Strong Financial Position Provides Strategic Optionality
Strong Financial Position Provides Strategic Optionality As of June 30, 2014 Cash & Cash Equivalents $53 million Total Debt $1,511 million Shareholders Equity $2,717 million Net Debt / Net Capitalization 35% Total Debt / Capitalization 36% ~$650 million of available liquidity as of 6/30/14, includin
Slide 17: Debt Maturities Limited for Several Years
Debt Maturities as of 6/30/14 Limited for Several Years $800 Debt Maturity (in $millions) $600 $400 $200 $0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Fiscal Year Johnson Rice Energy Conference 17
Slide 18: History of Earnings Growth & Solid Through-Cycle Return
History of Earnings Growth & Solid Through-Cycle Return Adjusted EPS** $7.89 $8.00 $5.94 $6.39 Adjusted EPS ** $6.00 $5.20 $4.00 $3.33 $3.69 $3.03 $1.78 $2.40 $2.13 $2.00 $1.03 $0.00 Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal 2004 2005 2006 2007 2008 2009 2010 2011
Slide 19: Active Vessel Dayrates & Utilization by Segment
Active Vessel Dayrates & Utilization by Segment Americas Asia/Pac MENA Sub Sah Africa/Eur. $26,000 Avg. Dayrate $22,000 $18,000 $14,000 $10,000 $6,000 12/10 6/11 12/11 6/12 12/12 6/13 12/13 6/14 100% Avg. Utilization 90% 80% 70% 60% 12/10 6/11 12/11 6/12 12/12 6/13 12/13 6/14 Impact of $7.4 million
Slide 20: New Vessel Trends by Vessel Type: Deepwater PSVs
New Vessel Trends by Vessel Type Deepwater PSVs Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size $60,000 240 Q1 Fiscal 2015 Avg Day Rate: $30,802 Utilization: 86.8% $50,000 200 $40,000 160 $30,000 120 75 76 76 $20,000 66 69 73 80 62 54 55 57 45 47 49 51 40 43 44 $10,000 32 34 38 4
Slide 21: New Vessel Trends by Vessel Type: Towing Supply/Supply Vessels
New Vessel Trends by Vessel Type Towing Supply/Supply Vessels Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size $25,000 250 Q1 Fiscal 2015 Avg Day Rate: $15,519 Utilization: 84.9% $20,000 200 $15,000 150 103 103 104 105 105 99 101 101102 103 $10,000 93 100 88 83 85 78 81 68 63 54 5
Slide 22: Tidewater's New Subsea Business
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 Johnson Rice Energy Conference 22
Slide 23: Tidewater's Future
Tidewater’s Future • Continue to improve upon stellar safety and compliance programs • Disciplined deployment of cash as we complete our OSV fleet replacement and enhancement and expand our ROV business • Maintain solid balance sheet and financial flexibility to deal with industry uncertainties and
Slide 24: Johnson Rice Energy Conference
Johnson Rice Energy Conference Jeffrey M. Platt Joseph M. Bennett President & CEO EVP & Chief IRO October 1, 2014
Slide 25: Appendix
Appendix Johnson Rice Energy Conference 25
Slide 26: Financial Strategy Focused on Creating Long-Term Shareholder Value
Financial Strategy Focused on Creating Long-Term Shareholder Value Deliver Results Maintain EVA-Based Investments Financial Strength On Through-cycle Basis Johnson Rice Energy Conference 26
Slide 27: Fleet Renewal & Expansion Largely Funded by CFFO
Fleet Renewal & Expansion Largely Funded by CFFO $700 $ in millions CAPX Dividend Share Repurchase $600 $500 $400 CFFO $300 $200 $100 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Fiscal Year Over a 15-year period, Tidewater has invested ~$5.2 billion in CapEx, and pa
Slide 28: Total Revenue and Margin Fiscal 2008-2015
Total Revenue and Margin Fiscal 2008-2015 Prior peak period (FY2009) averaged quarterly revenue of $339M, quarter operating $500 56.4% margin of $175.6M at 51.8% 53.0% 46.7% 47.7% 50.0% 46.3% $400 45.0% 44.1% 45.2% 43.1% 43.0% 42.0% 41.0% 40.8% 38.0% 36.9% $300 $300 million Millions $200 $150 millio
Slide 29: Cyclical Upturn should Drive Margin Expansion
Cyclical Upturn should Drive Margin Expansion Vessel Cash Operating Margin ($) Vessel Cash Operating Margin (%) $200 70% $175 60% $150 50% $125 40% $100 30% $75 $50 20% $25 10% $0 0% Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1 FY 2009 FY 2010
Slide 30: New Vessel Trends by Vessel Type: Deepwater AHTS
New Vessel Trends by Vessel Type Deepwater AHTS Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size $60,000 240 Q1 Fiscal 2015 Avg Day Rate: $34,116 Utilization: 83.5% $50,000 200 $40,000 160 $30,000 120 $20,000 80 $10,000 40 8 9 9 11 11 11 11 11 11 11 11 11 11 11 11 11 11 12 12 12 5
Slide 31: Current Revenue Mix: Quality of Customer Base
Current Revenue Mix Quality of Customer Base Others Super Majors 41% 37% NOC's 22% 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 Johnson Rice Energy Conference 31