Tidewater Inc. · NYSE:TDW
Tidewater — Scotia Howard Weil 46th Annual Energy Conference 2018
24 slides from Tidewater's conference presentation, Mar 28, 2018
Slide 1: Scotia Howard Weil 46th Annual Energy Conference
Scotia Howard Weil 46th Annual Energy Conference John Rynd Chief Executive Officer Quinn Fanning Chief Financial Officer March 26, 2018 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: Our current profile
Founded in 1955 – designed the first OSV as we know it Financial restructuring completed July 31, 2017 NYSE-traded Securities (at 23 Mar 2018 close) Common Stock – TDW $28.57 Series A Warrants – TDW WS.A $3.80 Series B Warrants – TDW WS.B $3.20 Market Cap (at 23 Mar 18 close) ~$857 million, based on
Slide 4: Best-positioned to navigate a challenging market
Best-positioned to navigate a challenging market Safety Leadership TRIR in FY2017 lower than last five years’ avg. Trusted Partner 60+ years experience in global OSV market Highly experienced management team Committed to Compliance Global Footprint Presence in all major oil & gas basins Invested in
Slide 5: An unwavering commitment to safety leadership
An unwavering commitment to safety leadership Total Recordable Incident Rates CY 2007-2017 (per 200,000 Man Hours) TRIR = Sum of LTA’s and Recordables x 200,000 divided by Man Hours Worked 0.0 1.0 0.5 0.14 10 year average 1 1Industry peer statistics for CY2017 not released as of this publication Sco
Slide 6: Overall working rig count down ~40% from 2H 2014 peak
Overall working rig count down ~40% from 2H 2014 peak to 420 current working rigs Consensus outlook assumes slow recovery in jackup and floater market beginning in 1H18 Consensus outlook suggests ~500-550 working rigs over the next 5 years Working offshore rig count is the primary OSV market driver
Slide 7: What will OSV market equilibrium look like?
What will OSV market equilibrium look like? 6.9 Without ~600 vessels 25+ yrs old 5.9 Without ~1,000 vessels 15+ yrs old Source: IHS Markit and Tidewater 1,000 vessels +15 years old 200 vessels < 15 yrs do not return to service 525-550 working rigs 3.4 4.5 8.3 150 New Vessel Deliveries 4.5 – 4.8 2,40
Slide 8: Supply is likely tighter than it appears
Supply is likely tighter than it appears Source: Clarksons Platou Securities AS (March 2018) (*includes PSVs >50m LOA and >=1000 dwt + AHTS 4-10k bhp) OSV supply, demand and fleet utilization 2001 - 2020E Production Support Demand Rig Support Demand Scotia Howard Weil 46th Annual Energy Conference |
Slide 9: Tidewater's active fleet is relevant for the future
Tidewater’s active fleet is relevant for the future 140 Vessels 9 Years Avg Age 3,500 Approx. Vessels in the Global Fleet 17% Vessels Est. to be 25+ Years Old Vessels 25+ years old today Vessels 25+ years old today Vessels 15+ years old today ~1,000 ~610 Deepwater Vessels Towing Supply / Supply Vess
Slide 10: The global OSV leader
The global OSV leader Regional Headquarters Area Operations Americas Active Fleet 26 Towing Supply Towing Supply Towing Supply Our top 10 customers in 2017 (3 Super Majors, 4 NOCs and 3 Other) accounted for 75% of our revenue Revenue Mix Production Support Drilling Support 140 total active vessels w
Slide 11: Size and scope of operations matter
Size and scope of operations matter AHTS and PSVs only, as of January 31, 2018 All Others (~2,400 total vessels for 400+ owners) Source: IHS Markit and Tidewater Scotia Howard Weil 46th Annual Energy Conference | ©2018 Tidewater Inc.
Slide 12: A solid financial foundation prepared for a market upturn
A solid financial foundation prepared for a market upturn Cash & Equiv.: >$453 million Total Debt: $448 million Book Equity: ~$1 billion Net Debt/Net Cap: 0% Total Debt / Cap: 30% Debt Maturity: ~$350 million senior secured notes due 2022 ~$90 million export credit backed debt amortizes over ~10 yrs
Slide 13: The highest equity market cap in the OSV sector
Source: FactSet research systems & Company filings as of 3/22/18 1Reflects midpoint of Estimated Reorganization Value per 3/8/18 Disclosure Statement 1 The highest equity market cap in the OSV sector Scotia Howard Weil 46th Annual Energy Conference | ©2018 Tidewater Inc.
Slide 14: The lowest leverage in the OSV sector
Source: FactSet research systems & Company filings as of 3/22/18 The lowest leverage in the OSV sector 1 Scotia Howard Weil 46th Annual Energy Conference | ©2018 Tidewater Inc.
Slide 15: Rationalizing fleet to reduce cost of excess capacity
Rationalizing fleet to reduce cost of excess capacity 1 Fleet counts as of December 31 for stated calendar years Active vessels include owned and chartered vessels, where applicable 1Stacked fleet reported as of March 15, 2018 Scotia Howard Weil 46th Annual Energy Conference | ©2018 Tidewater Inc.
Slide 16: Minimal CAPEX spend
Minimal CAPEX spend (1) Values presented are on calendar basis ~$4 million Capex Required as of 12/31/2017 Scotia Howard Weil 46th Annual Energy Conference | ©2018 Tidewater Inc.
Slide 17: Tidewater's go forward strategy
Tidewater’s go forward strategy Leadership in safety, compliance and operational excellence Focused on near-term cash break-even and margin expansion in the upturn Protect and preserve strong liquidity position Focused on organic growth opportunities (reactivations) and M&A Deliver best-in-class sha
Slide 18: Tidewater Inc.
TIDEWATER INC. Worldwide Headquarters 6002 Rogerdale Road Suite 600 Houston, Texas 77072 USA P: 41713 4705300
Slide 19: Appendix
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Slide 20: Vessel revenue & vessel operating margin, 2008-2017
Vessel revenue & vessel operating margin, 2008-2017 Prior peak period (2008) averaged quarterly revenue of $334M, quarterly operating margin of $168.6M at 50.4% Note: Vessel operating margin is defined as vessel revenue less vessel operating expenses $150 million 50.0% Millions Scotia Howard Weil 46
Slide 21: Vessel trends – deepwater PSVs
Vessel trends – deepwater PSVs $45 million, or 45%, of Vessel Revenue in Q4 2017 Q4 2017 Avg Day Rate: $11,940 Utilization: 48.7% Scotia Howard Weil 46th Annual Energy Conference | ©2018 Tidewater Inc.
Slide 22: Vessel trends – AHTS
Vessel trends – AHTS $5.5 million, or 6%, of Vessel Revenue in Q4 2017 Scotia Howard Weil 46th Annual Energy Conference | ©2018 Tidewater Inc.
Slide 23: Vessel trends – towing supply
Vessel trends – towing supply $43 million, or 42%, of Vessel Revenue in Q4 2017 Scotia Howard Weil 46th Annual Energy Conference | ©2018 Tidewater Inc.
Slide 24: Fleet valuation post-fresh start accounting
Fleet valuation post-fresh start accounting Vessel Count NBV Average Age Avg NBV / Vessel (in millions) (years) (in millions) Deepwater vessels PSVs > 3,800 DWT 42 $ 362.5 5.4 $ 8.6 PSVs < 3,800 DWT 43 $ 173.0 5.8 $ 4.1 Deepwater AHTS 12 $ 66.5 9.3 $ 4.4 97 $ 602.0 7.6 $ 6.1 Towing Supply Vessels 93
Tidewater — Scotia Howard Weil 46th Annual Energy Conference 2018 on 6ix