Tidewater Inc. · NYSE:TDW
Tidewater — RBC Capital Markets Energy Conference 2008
39 slides from Tidewater's conference presentation, Jun 4, 2008
Slide 1: RBC Capital Markets Energy Conference
June 3, 2008 Exhibit 99.1 Dean E. Taylor - Dean E. Taylor - Chairman, President & CEO Chairman, President & CEO Joseph M. Bennett - Joseph M. Bennett - Sr. V.P., Principal Accounting Officer Sr. V.P., Principal Accounting Officer and Chief Investor Relations Officer and Chief Investor Relations Offi
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 Workplace
OUR WORKPLACE OUR WORKPLACE
Slide 4: Safety Record Rivals Leading Companies
0.00 0.25 0.50 0.75 1.00 2001 2002 2003 2004 2005 2006 Calendar Years TIDEWATER DOW CHEMICAL DUPONT EXXON/MOBIL BP SAFETY RECORD RIVALS SAFETY RECORD RIVALS LEADING COMPANIES LEADING COMPANIES Total Recordable Incident Rates Total Recordable Incident Rates Calendar Years
Slide 5: Tidewater Today
Solid safety record International presence driving earnings Use cash to grow industry’s largest new fleet – earning great returns Mature vessels providing continued outstanding returns A strong balance sheet Returns to shareholders: share repurchases and dividends TIDEWATER TODAY TIDEWATER TODAY
Slide 6: Tidewater Tomorrow
Fleet with expanded capabilities Increased international presence Generating solid returns regardless of market cycle Financially strong Creating value for shareholders TIDEWATER TOMORROW TIDEWATER TOMORROW
Slide 7: How Do We Accomplish Our Vision?
Deploy cash to renew fleet with expanded capabilities Push dayrates and utilization to grow profits and cash flow Balance long-term and spot market opportunities Right acquisitions, right price, right time Utilize balance sheet strength Focus on creating shareholder value HOW DO WE ACCOMPLISH HOW DO
Slide 8: Why A Positive Outlook?
Favorable commodity price environment International E&P spending up 16% in 2008 (Lehman Bros.) More vessels needed - High rig utilization - New rigs and FPSO’s coming - Strong seismic and construction markets Largest new fleet in the industry Mature vessels earning excellent returns INTERNATIONAL!!!
Slide 9: Vessel Population by Owner
294 83 71 61 58 1,432 Tidewater Competitor #1 Competitor #2 Competitor #3 Competitor #4 All Others VESSEL POPULATION VESSEL POPULATION BY OWNER BY OWNER (Includes (Includes AHTS AHTS and and PSV’s PSV’s only) only) Estimated as of March 2008 Estimated as of March 2008 Source: ODS-Petrodata and Tidew
Slide 10: Basic Rig Facts
573 Working Rigs 136 Inactive Rigs 163 New Rigs (52 in 2008, 58 in 2009, 39 in 2010, 14 in 2011) BASIC RIG FACTS BASIC RIG FACTS In yard getting repaired Warm stacked/Standby Hot stacked Cold stacked/other Source: ODS-Petrodata Estimated as of March 2008 Estimated as of March 2008
Slide 11: Floating Production System Facts
276 Active 11 Inactive 88 Under construction (41 in 2008, 27 in 2009, 12 in 2010, 8 thereafter) FLOATING PRODUCTION FLOATING PRODUCTION SYSTEM FACTS SYSTEM FACTS Source: ODS-Petrodata (Includes FPSO, FSO, Spars, TLP, Other) (Includes FPSO, FSO, Spars, TLP, Other) Estimated as of March 2008 Estimated
Slide 12: Global Vessel Fleet by Age
0 20 40 60 80 100 120 140 160 180 200 1965 1970 1975 1980 1985 1990 1995 2000 2005 2,000 active vessels GLOBAL VESSEL FLEET BY AGE (Includes AHTS and PSV’s only) Source: ODS-Petrodata and Tidewater As of 3/31/08, there are As of 3/31/08, there are approximately 710 additional AHTS approximately 710
Slide 13: Global Vessel Fleet by Age
0 20 40 60 80 100 120 140 160 180 200 1965 1970 1975 1980 1985 1990 1995 2000 2005 Of the total 2,000 vessels, 302 vessels are 30+ yrs old . GLOBAL VESSEL FLEET BY AGE (Includes AHTS and PSV’s only) Source: ODS-Petrodata and Tidewater As of 3/31/08, there are As of 3/31/08, there are approximately 7
Slide 14: Global Vessel Fleet by Age
0 20 40 60 80 100 120 140 160 180 200 1965 1970 1975 1980 1985 1990 1995 2000 2005 Of the total 2,000 vessels, 302 vessels are 30+ yrs old, GLOBAL VESSEL FLEET BY AGE (Includes AHTS and PSV’s only) Source: ODS-Petrodata and Tidewater As of 3/31/08, there are As of 3/31/08, there are approximately 71
Slide 15: Global Vessel Fleet by Age
0 20 40 60 80 100 120 140 160 180 200 1965 1970 1975 1980 1985 1990 1995 2000 2005 Of the total 2,000 vessels, 302 vessels are 30+ yrs old , GLOBAL VESSEL FLEET BY AGE (Includes AHTS and PSV’s only) Source: ODS-Petrodata and Tidewater As of 3/31/08, there are As of 3/31/08, there are approximately 7
Slide 16: Vessel / Rig Ratio
2,000 Global Vessel Count (AHTS & PSV only) 573 Global Working Rigs 3.5 Vessel to Rig Ratio 58 Older rigs in yards getting prepared for work 163 New rigs under construction VESSEL / RIG RATIO VESSEL / RIG RATIO Current Vessel Demand Dynamics: Incremental Vessel Demand: Source: ODS-Petrodata and Tide
Slide 17: International Presence Driving Earnings
Five decades of international experience Growing industry’s largest internationally diverse fleet Continue to grow international presence Higher utilization and dayrates for new & mature vessels For Fiscal 2008, Int’l was 87% of revenues & 93% of profits 2008 Int’l E&P spending up faster than overal
Slide 18: Tidewater Today: International Presence Driving Earnings
90% International 10% Domestic (vs. 57% International and 43% Domestic ten years ago) Active Vessel Count By Region (excludes stacked vessels) North America 38 (10%) (10%) Central/South America 99 (27%) (27%) West Africa 150 (40%) (40%) Far East 48 (13%) (13%) Europe/M.E. 38 (10%) (10%) 90% Internat
Slide 19: International Vessel Dayrates
Growth Total Dayrate Growth from FY‘04 +71%, New vessels +81%, Mature vessels +44% 0% 10% 20% 30% 40% 50% 60% 70% 80% Fiscal 2005 Fiscal 2006 Fiscal 2007 Fiscal 2008 INTERNATIONAL INTERNATIONAL VESSEL DAYRATES VESSEL DAYRATES Growth Total Dayrate Growth from FY‘04 +71%, New vessels +81%, Mature vess
Slide 20: Use Cash to Grow Industry's Largest New Fleet
Commit $300-$500 MM per year for fleet renewal Paid from internal cash flow Fiscal 2008 CapEx of $354 MM Always weigh build vs. buy criteria Strive for a Balance Between Performance, Growth and Financial Strength USE CASH TO USE CASH TO GROW INDUSTRY’S GROW INDUSTRY’S LARGEST NEW FLEET LARGEST NEW F
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Slide 23: New Vessel / Mature Vessel Profitability
$0 $100 $200 $300 Fiscal 2004 Fiscal 2005 Fiscal 2006 Fiscal 2007 Fiscal 2008 New Vessels Pre-Tax Profits Mature Vessels Pre-Tax Profits *Vessel pre-tax profits are defined as vessel revenue less vessel operating costs less vessel depreciation. NEW VESSEL / MATURE NEW VESSEL / MATURE VESSEL PROFITAB
Slide 24: Largest New Fleet in the Industry
0 100 200 300 400 500 Active Fleet Dispositions * Net vessels added to the fleet since January 2000, including 49 vessels under construction at 3/31/08. * Since 4/01/05, 28 vessels have been scrapped and 115 have been sold. * Total fleet count excludes 53 stacked vessels. Out With the Old – In With
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Slide 27: Significant Earnings Growth
$0.00 $2.00 $4.00 $6.00 $8.00 Fiscal 2004 Fiscal 2005 Fiscal 2006 Fiscal 2007 Fiscal 2008 58% Four-Year Compounded Annual Earnings Growth Rate $1.03 $1.78 $3.33 $5.94 ** 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
Slide 28: Returning Value to Shareholders
Current repurchase authority of $250 MM completed by mid May 2008 Since 8/05, have repurchased 9.5 MM shares for $516.2 MM, ($54.57 per share) Recent dividend declaration increased from $.15/share/quarter to $.25/share/quarter Current 1.5% yield (highest among OSX companies) One of eight OSX compani
Slide 29: Goals & Objectives
Renew Fleet Maintain Financial Strength Deliver Results GOALS & OBJECTIVES GOALS & OBJECTIVES Consistent Over Last Several Years Consistent Over Last Several Years Renew Fleet Maintain Financial Strength Deliver Results
Slide 30: RBC Capital Markets Energy Conference
June 3, 2008 Dean E. Taylor - Dean E. Taylor - Chairman, President & CEO Chairman, President & CEO Joseph M. Bennett - Joseph M. Bennett - Sr. V.P., Principal Accounting Officer Sr. V.P., Principal Accounting Officer and Chief Investor Relations Officer and Chief Investor Relations Officer June 3, 2
Slide 31: Appendix
APPENDIX APPENDIX
Slide 32: International Vessels Dayrates and Utilization
3/05 6/05 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07 9/07 12/07 3/08 $100 change in dayrate = $10.4M in revenue 1% change in utilization = $14.6M in revenue * Dayrate and utilization information is for all classes of vessels operating international. 40% 50% 60% 70% 80% 90% $4,000 $5,000 $6,000 $7,000
Slide 33: International Vessels Dayrates
$4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 $13,000 $14,000 $15,000 $16,000 3/05 6/05 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07 9/07 12/07 3/08 * Dayrate information is for all classes of vessels operating international. Mature Vessels New Vessels INTERNATIONAL INTERNATIONAL VE
Slide 34: Domestic Vessel Dayrates
0% 20% 40% 60% 80% 100% 120% 140% Fiscal 2005 Fiscal 2006 Fiscal 2007 Fiscal 2008 Total Growth Percentage From FY’04 through FY’08 Total Growth 136% DOMESTIC VESSEL DOMESTIC VESSEL DAYRATES DAYRATES Total Growth Percentage From FY’04 through FY’08 Total Growth 136%
Slide 35: Domestic Vessels Dayrates and Utilization
3/05 6/05 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07 9/07 12/07 3/08 $100 change in dayrate = $1.2M in revenue 1% change in utilization = $2.4M in revenue * Dayrate and utilization information is for all classes of vessels operating in the U.S. 20% 30% 40% 50% 60% 70% 80% $4,000 $5,000 $6,000 $7,000
Slide 36: Domestic Vessel Dayrates
$3,000 $5,000 $7,000 $9,000 $11,000 $13,000 $15,000 $17,000 3/05 6/05 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07 9/07 12/07 3/08 * Dayrate information is for all classes of vessels operating in the U.S. Mature Vessels New Vessels DOMESTIC VESSEL DOMESTIC VESSEL DAYRATES DAYRATES
Slide 37: Superior Operating Capabilities Drive Our Competitive Advantage
– Safety-oriented culture – Deep knowledge of customer needs – Worldwide market presence (over 60 countries) – Long-term relationships with major operators (Over 200 customers) – Most new vessels in industry – Wide range of equipment types – “Lean” operations and overhead – Aggressive construction c
Slide 38: Vessel Acquisition Alternatives
Considerations: Usually one-off purchases, often to match specific client needs Immediate delivery Entry price at “full” market rate Considerations: Built to Tidewater quality standards 18 + months to delivery Potential shipyard backlog Contract terms (e.g., fixed price, LDs, etc.) Resource requirem
Slide 39: Considerations in Designing Our Optimal Vessel Mix
Custom/ Specialized Standardized Small Ultra big Renew existing Expand to niche markets Drilling, production Subsea, main- tenance, LNG etc. Cycle timers Invest across cycle *Arrows are illustrative of Tidewater’s current views; they should not be interpreted as excluding other points on the continu
Tidewater — RBC Capital Markets Energy Conference 2008 on 6ix