Tidewater Inc. · NYSE:TDW
Tidewater — Capital One Southcoast 5th Annual Energy Conference 2010
34 slides from Tidewater's conference presentation, Dec 10, 2010
Slide 1: Capital One Southcoast 5th Annual Energy Conference
Capital One Southcoast 5 th Annual Energy Conference December 7, 2010 Dean E. Taylor Joseph M. Bennett Exhibit 99.1 December 7, 2010 Dean E. Taylor Chairman, President & CEO Chairman, President & CEO Joseph M. Bennett Executive Vice President Executive Vice President and Chief Investor Relations Off
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Phone: 504.568.1010 Fax: 504.566.4580 Web: www.tdw.com Email: connect@tdw.com 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
Slide 3: Key Takeaways
KEY TAKEAWAYS Culture of safety & operating excellence History of earnings growth and solid returns World’s largest and newest fleet provides basis for continued earnings growth Strong balance sheet allows us to act upon available opportunities
Slide 4: Safety – A Top Priority
SAFETY – A TOP PRIORITY SM SAFETY – A TOP PRIORITY
Slide 5: Safety Record Rivals Leading Companies
0.00 0.25 0.50 0.75 1.00 Total Recordable Incident Rates Calendar Years 2002 2003 2004 2005 2006 2007 2008 2009 TIDEWATER DUPONT DOW CHEMICAL EXXON MOBIL SAFETY RECORD RIVALS LEADING COMPANIES SAFETY RECORD RIVALS LEADING COMPANIES
Slide 6: Significant Earnings Growth
32% Six-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 tax gain from the sale of six KMAR vessels. EPS in Fiscal 2007 is exclusive of $.37 per share of after
Slide 7: The Largest Modern Fleet in the Industry
Vessel Count Estimated Cost AHTS 90 $1,626m PSV’s 81 $1,615m Crewboats & Tugs 67 $290m TOTALS: 238 $3,531m (1) (1) $3,085m (87%) funded through 9/30/10 THE LARGEST MODERN FLEET IN THE INDUSTRY… Vessel Commitments Jan. ’00 – September ‘10 . THE LARGEST MODERN FLEET IN THE INDUSTRY… At 9/30/10, 190 ne
Slide 8: Vessel Deliveries
0 5 10 15 20 25 30 35 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Built Acquired VESSEL DELIVERIES Fiscal Year Fiscal years 2011-2013 include actual deliveries through 9/30/10 and estimated deliveries of vessels committed to build or acquire as of 9/30/10 At 9/30/10, total 238 v
Slide 9: ...And Our Lead Is Growing
Count AHTS 11 PSV 18 Crew and Tug 1 Total 30 Vessels Under Construction* As of September 30, 2010 … AND OUR LEAD IS GROWING Estimated delivery schedule – 8 in remainder of FY ‘11, 18 in FY ‘12 and 4 thereafter CAPX of $205m in remainder of FY ‘11, $213m in FY ‘12 and $27m in FY ‘13 … AND OUR LEAD IS
Slide 10: Significant Average Age Improvement
0 5 10 15 20 3/31/06 3/31/07 3/31/08 12/31/08 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 SIGNIFICANT AVERAGE AGE IMPROVEMENT Assumptions: 1) Average 45 vessel disposals per year in future (averaged 47 per year last three years). 2) Includes 30 vessels under construction (including four purchase co
Slide 11: Recent Vessel Commitments
8 2 4 6 9 0 2 4 6 8 10 9/30/09 Qtr 12/31/09 Qtr 3/31/10 Qtr 6/30/10 Qtr 9/30/10 Qtr RECENT VESSEL COMMITMENTS Amounts depict vessel count and total cost in quarter commitment was made to acquire (not when delivery or payments were made) 29 vessels over five quarters with total capital cost of $577 m
Slide 12: New Private Placement Financing
Senior Unsecured Notes $425 million Average Life to Maturity ~ 9 years Weighted Average Coupon 4.25% Closing Dates $310 million 10/15/10 $115 million 12/30/10 NEW PRIVATE PLACEMENT FINANCING NEW PRIVATE PLACEMENT FINANCING
Slide 13: Pro Forma Impact of Financing
PRO FORMA IMPACT OF FINANCING Cash & Cash Equivalents $477 million Total Debt $815 million Shareholders Equity $2,480 million Net Debt / Net Capitalization 12% Total Debt / Capitalization 25% PRO FORMA IMPACT OF FINANCING September 30, 2010 Pro Forma info: Pro forma liquidity as of 9/30/10 of ~ $800
Slide 14: Selected Financial Highlights
Six Months Ended 9/30/10 9/30/09 Revenues $530 $622 Adjusted Net Earnings* $67 $156 Adjusted EPS* $1.32 $3.05 Net Cash from Operations $153 $165 Capital Expenditures $391 $213 * Adjusted Net Earnings and Adjusted EPS for the six months ended 9/30/10 exclude a $4.35 million, or $0.09 per share, charg
Slide 15: Primary Uses of Cash
Over an 11-year period, Tidewater invested $3.2 billion in CAPX ($2.8 billion in the “new” fleet), and paid out $923 million through dividends and share repurchases. Over the same period, CFFO and proceeds from dispositions were $3.1 billion and $640 million, respectively PRIMARY USES OF CASH PRIMAR
Slide 16: International Strength
Unique global footprint; 50+ years of Int’l experience Unmatched scale and scope of operations International market opportunities Growth Longer contracts Better utilization Higher dayrates Solid customer base of NOC’s and IOC’s INTERNATIONAL STRENGTH • • • • INTERNATIONAL STRENGTH
Slide 17: Tidewater
TIDEWATER
Slide 18: Vessel Population by Owner
VESSEL POPULATION BY OWNER (Includes AHTS and PSV’s only) Estimated as of Early-November 2010 Source: ODS-Petrodata and Tidewater Tidewater Competitor #2 Competitor #3 Competitor #4 Competitor # 5 Competitor #1 Avg. All Others (1,847 total vessels for 350+ owners) 5 62 67 72 106 119 288 0 100 200 30
Slide 19: Current Revenue Mix
NOC's 24% Others 35% Super Majors 41% Our top 10 customers in Fiscal 2010 (6 Super Majors, 3 NOC’s and one large independent) accounted for 63% of our revenue CURRENT REVENUE MIX Quality of Customer Base CURRENT REVENUE MIX Quality of Customer Base
Slide 20: The Worldwide Fleet - Retirements Expected to Exceed New Deliveries
0 50 100 150 200 250 300 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 THE WORLDWIDE FLEET - RETIREMENTS EXPECTED TO EXCEED NEW DELIVERIES (Includes AHTS and PSV’s only) Estimated as of Early-November 2010 Source: ODS-Petrodata and Tidewater As of early-November 2010, there are approximately 362
Slide 21: Where Could Fiscal 2014 Find Us?
Avg. Dayrates $14,694* $16,163 (+ 10%) $17,780 (+ 10%) 85.3%* 85.0% 90.0% 270 vessels assumes (190 current new vessels + 30 under construction + ~ 20 additional new vessels per year for two and a half years). WHERE COULD FISCAL 2014 FIND US? Potential for Earnings Acceleration * 9/30/10 six month YT
Slide 22: Financial Strategy Focused on Creating Long-Term Shareholder Value
Maintain Financial Strength EVA-Based Investments On Through-cycle Basis Deliver Results FINANCIAL STRATEGY FOCUSED ON CREATING LONG-TERM SHAREHOLDER VALUE FINANCIAL STRATEGY FOCUSED ON CREATING LONG-TERM SHAREHOLDER VALUE
Slide 23: Capital One Southcoast 5th Annual Energy Conference
Capital One Southcoast 5 th Annual Energy Conference December 7, 2010 Dean E. Taylor Joseph M. Bennett December 7, 2010 Dean E. Taylor Chairman, President & CEO Chairman, President & CEO Joseph M. Bennett Executive Vice President Executive Vice President and Chief Investor Relations Officer and Chie
Slide 24: Appendix
Appendix Appendix
Slide 25: Recent Accomplishments
RECENT ACCOMPLISHMENTS First full fiscal year without a lost time accident (FY 2010) Respectable earnings & returns in a trough (tough) market Selected acquisitions of choice assets Disciplined disposal of traditional equipment Delivery of 45 new vessels over last two full fiscal years Balance sheet
Slide 26: Continually Acquiring New and Disposing of Mature Vessels
0 100 200 300 400 500 Active Fleet Dispositions CONTINUALLY ACQUIRING NEW AND DISPOSING OF MATURE VESSELS (As of 9/30/10) 316 (B) 524 (C) 220 New Vessels (A) 427 Sold 97 Scrapped (A) Net new vessels added to the fleet since January 2000, including 30 vessels under construction at 9/30/10. This new v
Slide 27: Fleet Cash Operating Margins
FLEET CASH OPERATING MARGINS Note: Cash operating margins are defined as vessel revenue less vessel operating expenses $0 $100 $200 $300 $400 $500 $600 $700 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Fiscal Years 50% 40% 30% 20% 10% 60% Total Fleet Operating Margin % New Vessels Traditio
Slide 28: International Vessels Dayrates and Utilization
9/07 3/08 9/08 3/09 9/09 3/10 9/10 * Dayrate and utilization information is for all classes of vessels operating international INTERNATIONAL VESSELS Dayrates and Utilization $100 change in dayrate = $7.8M in revenue 1% change in utilization = $15.4M in revenue 50% 60% 70% 80% 90% Utilization $4,000
Slide 29: International Vessel Dayrates
INTERNATIONAL VESSEL DAYRATES * Dayrate and utilization information is for all classes of vessels operating international $3,000 $5,000 $7,000 $9,000 $11,000 $13,000 $15,000 $17,000 $19,000 09/07 03/08 09/08 03/09 09/09 03/10 09/10 INTERNATIONAL VESSEL DAYRATES Traditional Vessels New Vessels
Slide 30: Domestic Vessels Dayrates and Utilization
9/07 3/08 9/08 3/09 9/09 3/10 9/10 DOMESTIC VESSELS Dayrates and Utilization * Dayrate and utilization information is for all classes of vessels operating in the U.S. 30% 40% 50% 60% 70% 80% 90% Utilization $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 Dayrate DOMESTIC VESSELS Dayrate
Slide 31: Domestic Vessel Dayrates
DOMESTIC VESSEL DAYRATES * Dayrate and utilization information is for all classes of vessels operating in the U.S. $3,000 $5,000 $7,000 $9,000 $11,000 $13,000 $15,000 $17,000 $19,000 $21,000 $23,000 09/07 03/08 09/08 03/09 09/09 03/10 09/10 DOMESTIC VESSEL DAYRATES Traditional Vessels New Vessels
Slide 32: Working Rig Counts Peak to Present
Source: ODS-Petrodata and Tidewater WORKING RIG COUNTS “ Peak to Present ” Jackups Semis Drillships Total June 2008 (Peak) 379 145 30 554 Late-April 2010 (pre-Horizon) 323 150 46 519 Early-Nov. 2010 (post- Horizon) 308 146 36 490 GOM accounts for of the working jackup count variance from June (Peak)
Slide 33: Rigs Contracted by Our Top 10 Customers
Other Operators Top 10 Customers Jackups (308 Working Rigs) Floater Rigs (182 Working Rigs) 73 235 86 RIGS CONTRACTED BY OUR TOP 10 CUSTOMERS (Estimated as of Early-November 2010) Source: ODS-Petrodata and Tidewater Other Operators Top 10 customers 96 Tidewater’s top 10 customers contract nearly 24%
Slide 34: Returns vs the Market: Five Year Stockholder Return
-50% 0% 50% 100% 150% 200% Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 TDW DJIA S&P500 OSX RETURNS vs the MARKET FIVE YEAR STOCKHOLDER RETURN OSX 52% S&P 500 9% DJIA 16% TDW 36% RETURNS vs the MARKET FIVE YEAR STOCKHOLDER RETURN
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