Tidewater Inc. · NYSE:TDW
Tidewater — Cowen and Company 3rd Annual Ultimate Energy Conference 2013
24 slides from Tidewater's conference presentation, Dec 6, 2013
Slide 1: Cowen and Company 3rd Annual Ultimate Energy Conference
December 3, 2013 Cowen and Company 3 Annual Ultimate Energy Conference Joseph M. Bennett Jeffrey M. Platt Exhibit 99.1 rd EVP & Chief IRO President and CEO
Slide 2: Safety Record Rivals Leading Companies
Safety Record Rivals Leading Companies CALENDAR YEARS 0.7 0.6 0.5 0.4 0.3 0.2 0.1 TOTAL RECORDABLE INCIDENT RATES TIDEWATER DOW CHEMICAL CHEVRON EXXON/MOBIL
Slide 3: Working Offshore Rig Trends
Working Offshore Rig Trends Source: ODS-Petrodata Note: 46 “Other” rigs, along with the Jackups and Floaters, provide a total working rig count of 713 in November 2013. Prior peak (summer 2008) Jackups Floaters
Slide 4: Drivers of our Business: Peak to Present
July 2008 (Peak) Jan. 2011 (Trough) November 2013 Working Rigs 603 538 713 Rigs Under Construction 186 118 234 OSV Global Population 2,033 2,599 3,031 OSV’s Under Construction 736 367 439 OSV/Rig Ratio 3.37 4.83 4.25 Drivers of our Business “Peak to Present” Source: ODS-Petrodata and Tidewater
Slide 5: The Worldwide OSV Fleet
Vessels > 25 years old today The Worldwide OSV Fleet (Includes AHTS and PSVs only) Estimated as of November 2013 Source: ODS-Petrodata and Tidewater As of November 2013, there are approximately 439 additional AHTS and PSV’s (~14% of the global fleet) under construction. Global fleet is estimated at
Slide 6: Tidewater's Active Fleet
Tidewater’s Active Fleet As of September 30, 2013 Year Built Deepwater vessels Towing Supply/Supply Other vessels 240 “New” vessels – 6.1 avg yrs 27 “Traditional” vessels – 26.7 avg yrs
Slide 7: Vessel Population by Owner
Vessel Population by Owner (AHTS and PSVs only) Estimated as of November 2013 Source: ODS-Petrodata and Tidewater Tidewater Competitor #2 Competitor #3 Competitor #4 Competitor # 5 Competitor #1 Avg. All Others (2,306 total vessels for 400+ owners)
Slide 8: Our Global Footprint
Americas 63 (24%) SS Africa/Europe 136 (51%) MENA 44 (16%) Asia/Pac 24 (9%) Our Global Footprint Vessel Distribution by Region (excludes stacked vessels - as of 9/30/13) In 2Q FY 2014, ~9% of vessel revenue was generated in the U.S. by < 15 vessels; however, <15 other U.S.-flagged vessels are curren
Slide 9: Active Vessel Dayrates & Utilization by Segment
Active Vessel Dayrates & Utilization by Segment Impact of $7.4 million of retroactive revenue recorded in September 2012 quarter is excluded from 9/12 average dayrates and included in the respective March 2012 and June 2012 quarterly average dayrates. Utilization stats exclude stacked vessels. $6,00
Slide 10: History of Earnings Growth & Solid Through-Cycle Returns
History of Earnings Growth & Solid Through-Cycle Returns ** 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
Slide 11: The Largest Modern OSV Fleet in the Industry
Vessel Count (2) Total Cost (2) Average Cost per Vessel Deepwater PSVs 96 $2,630m $27.4m Deepwater AHTSs 11 $358m $32.5m Towing Supply/Supply 109 $1,615m $14.8m Other 55 $280m $5.1m TOTALS: 271 $4,883m (1) $18.0m (1) ~$4.27b (87%) funded through 9/30/13 (2) Vessel count and total cost is net of 25 v
Slide 12: ...and More to Come: Vessels Under Construction
Count Deepwater PSVs 23 Deepwater AHTSs - Towing Supply/Supply 6 Other 2 Total 31 Estimated delivery schedule – 6 for the remainder of FY ’14, 16 in FY ’15 and 9 thereafter. CAPX of $218m for the remainder of FY ’14, $303m in FY ‘15 and $105m in FY ’16. ….. and More to Come Vessels Under Constructio
Slide 13: Strong Financial Position Provides Strategic Optionality
Cash & Cash Equivalents $46 million Total Debt $1,446 million Shareholders Equity $2,635 million Net Debt / Net Capitalization 35% Total Debt / Capitalization 35% Strong Financial Position Provides Strategic Optionality As of September 30, 2013 ~$650 million of available liquidity as of 9/30/13, inc
Slide 14: New Vessel Trends by Vessel Type: Deepwater PSVs
New Vessel Trends by Vessel Type Deepwater PSVs $176 million, or 49%, of Vessel Revenue in Q2 Fiscal 2014 Q2 Fiscal 2014 Avg Day Rate: $31,053 Utilization: 84.6% - $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY08 FY
Slide 15: New Vessel Trends by Vessel Type: Towing Supply/Supply
New Vessel Trends by Vessel Type Towing Supply/Supply Vessels $118 million, or 33%, of Vessel Revenue in Q2 Fiscal 2014 Q2 Fiscal 2014 Avg Day Rate: $14,484 Utilization: 85.7% 101 102 - $0 $5,000 $10,000 $15,000 $20,000 $25,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 16: Tidewater's New Subsea Business
Tidewater’s New Subsea Business Recent order of six work-class remotely operated vehicles (ROV )
Slide 17: Financial Strategy Focused on Creating Long-Term Shareholder Value
Financial Strategy Focused on Creating Long-Term Shareholder Value Maintain Financial Strength EVA-Based Investments On Through-cycle Basis Deliver Results
Slide 18: Cowen and Company 3rd Annual Ultimate Energy Conference
December 3, 2013 Cowen and Company 3 rd Annual Ultimate Energy Conference Joseph M. Bennett Jeffrey M. Platt EVP & Chief IRO President and CEO
Slide 19: Appendix
Appendix
Slide 20: Fleet Renewal & Expansion Funded by CFFO
Fleet Renewal & Expansion Funded by CFFO thru Fiscal 2013 Over a 14-year period, Tidewater has invested $4.6 billion in CapEx, and paid out ~$1.2 billion through dividends and share repurchases. Over the same period, CFFO and proceeds from dispositions were $3.8 billion and $749 million, respectivel
Slide 21: Cyclical Upturn should Drive Margin Expansion
Cyclical Upturn should Drive Margin Expansion Vessel Cash Operating Margin ($) Vessel Cash Operating Margin (%) $168 million Vessel Margin in Q2 FY2014 (94% from New Vessels) Q2 FY2014 Vessel Margin: 46% 0% 10% 20% 30% 40% 50% 60% 70% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 22: Total Revenue and Margin Fiscal 2008-2014
Total Revenue and Margin Fiscal 2008-2014 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% - $100 $300 $400 $500 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 23: New Vessel Trends by Vessel Type: Deepwater AHTS
New Vessel Trends by Vessel Type Deepwater AHTS Q2 Fiscal 2014 Avg Day Rate: $28,885 Utilization: 87.9% $26 million, or 7%, of Vessel Revenue in Q2 Fiscal 2014 - $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size FY08 FY09 FY10 FY11
Slide 24: Current Revenue Mix: Quality of Customer Base
Current Revenue Mix Quality of Customer Base Our top 10 customers in Fiscal 2013 (4 Super Majors, 2 NOC’s, 3 IOC’s and 1 independent) accounted for 58% of our revenue
Tidewater — Cowen and Company 3rd Annual Ultimate Energy Conference 2013 on 6ix