Tidewater Inc. · NYSE:TDW
Tidewater — Barclays CEO Energy-Power Conference 2014
31 slides from Tidewater's conference presentation, Sep 10, 2014
Slide 1: Barclays CEO Energy-Power Conference
Barclays CEO Energy-Power Conference September 4, 2014 Jeffrey M. Platt President & CEO Joseph M. Bennett EVP & Chief IRO 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: Key Tidewater Takeaways
• Consistent goal of “Best in Class” safety and compliance culture • History of earnings growth and solid returns • Continued solid financial position, with considerable ready liquidity, a reasonable debt level, minor debt maturities until FY2019 and expected reduced CAPX as major fleet upgrade wind
Slide 4: Safety Record Rivals Leading Companies
Operating safely offshore is like holding a snake by its head. It’s a task that can’t be turned loose not for a microsecond or an accident will strike without pity. Safety Record Rivals Leading Companies • Safe Operations is Priority #1 • Stop Work Obligation • Safety performance is 25% of mgt. ince
Slide 5: Working Offshore Rig Trends
Source: ODS-Petrodata Note: 42 “Other” rigs, along with the Jackups and Floaters, provide a total working rig count of 720 in August 2014. Prior peak (summer 2008) Jackups Floaters Working Offshore Rig Trends
Slide 6: Drivers of our Business: Peak to Present
July 2008 (Peak) Jan. 2011 (Trough) August 2014 Working Rigs 603 538 720 Rigs Under Construction 186 118 240 OSV Global Population 2,033 2,599 3,203 OSV’s Under Construction 736 367 459 OSV/Rig Ratio 3.37 4.83 4.45 Source: ODS-Petrodata and Tidewater Drivers of our Business “Peak to Present” Working
Slide 7: The Worldwide OSV Fleet
Vessels > 25 years old today Source: ODS-Petrodata and Tidewater As of August 2014, there are approximately 459 additional AHTS and PSV’s (~14% of the global fleet) under construction. Global fleet is estimated at 3,203 vessels, including ~700 vessels that are 25+ yrs old (25%). The Worldwide OSV Fl
Slide 8: Tidewater's Active Fleet
Year Built Deepwater vessels Towing Supply/Supply Other vessels 244 “New” vessels – 6.9 avg yrs 21 “Traditional” vessels – 26.7 avg yrs Tidewater’s Active Fleet As of June 30, 2014
Slide 9: Vessel Population by Owner
Source: ODS-Petrodata and Tidewater Tidewater Competitor #2 Competitor #3 Competitor #4 Competitor # 5 Competitor #1 Avg. All Others (2,452 total vessels for 400+ owners) Vessel Population by Owner (AHTS and PSVs only) Estimated as of August 2014
Slide 10: Our Global Footprint - Vessel Count by Region
Americas 69 (26%) SS Africa/Europe 128 (48%) MENA 44 (17%) Asia/Pac 24 (9%) Our Global Footprint – Vessel Count by Region (Excludes stacked vessels – as of 6/30/14 )
Slide 11: Our Global Footprint - Vessel Class by Region
New Avg. Vessels NBV Deepwater 10 $15.2M Towing Supply 31 $12.1M Other 0 0 41 New Avg. Vessels NBV Deepwater 37 $28.7M Towing Supply 43 $12.5M Other 41 $1.8M 121 New Avg. Vessels NBV Deepwater 9 $24.9M Towing Supply 14 $11.6M Other 1 $6.7M 24 New Avg. Vessels NBV Deepwater 32 $19.5M Towing Supply 17
Slide 12: The Largest Modern OSV Fleet in the Industry
Vessel Count (2) Total Cost (2) Average Cost 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) ~$4.5b (87%) funded through 6/30/14 (2) Vessel count and total cost is net of 26 v
Slide 13: Vessels Under Construction
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. Vessels Under Construction* As of June 30, 2014 …and More to Come
Slide 14: The Upgrading of the Tidewater Fleet
Current Future Vintage DWT Fleet CIP Fleet Fleet Current Future Vintage BHP Fleet CIP Fleet Fleet Current Future Vintage BHP Fleet CIP Fleet Fleet New Vintage Total DWT Fleet Fleet Fleet New Vintage Total BHP Fleet Fleet Fleet New Vintage Total BHP Fleet Fleet Fleet The Upgrading of the Tidewater Fl
Slide 15: CAPX Expected to Decrease from Recent High Levels
CAPX Expected to Decrease from Recent High Levels Fiscal Year Fiscal 2014 is exclusive of Troms acquisition Amounts in Fiscal 2015-2017 represent known CAPX on only the 33 vessels and 2 ROVs under construction as of 6/30/14. Additional CAPX could occur, but trendline is expected down.
Slide 16: Strong Financial Position Provides Strategic Optionality
Cash & Cash Equivalents $53 million Total Debt $1,511 million Shareholders Equity $2,717 million Net Debt / Net Capitalization 35% Total Debt / Capitalization 36% As of June 30, ~$650 million of available liquidity as of 6/30/14, including $600 million of unused capacity under the company’s revolvin
Slide 17: Debt Maturities
Debt Maturities as of 6/30/14 Limited for Several Years Fiscal Year
Slide 18: Earnings per Share History
** 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 tax gains from the sale of 14 offshore tugs. EPS in
Slide 19: 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. Active Vessel Dayrates & Utilization by Segment
Slide 20: New Vessel Trends: Deepwater PSVs
Q1 Fiscal 2015 Avg Day Rate: $30,802 Utilization: 86.8% $185 million, or 49%, of Vessel Revenue in Q1 Fiscal 2015 New Vessel Trends by Vessel Type Deepwater PSVs Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size
Slide 21: New Vessel Trends: Deepwater AHTS
Q1 Fiscal 2015 Avg Day Rate: $34,116 Utilization: 83.5% $31 million, or 8%, of Vessel Revenue in Q1 Fiscal 2015 New Vessel Trends by Vessel Type Deepwater AHTS Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size
Slide 22: New Vessel Trends: Towing Supply/Supply Vessels
Q1 Fiscal 2015 Avg Day Rate: $15,519 Utilization: 84.9% $126 million, or 33%, of Vessel Revenue in Q1 Fiscal 2015 New Vessel Trends by Vessel Type Towing Supply/Supply Vessels Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size
Slide 23: Tidewater's New Subsea Business
Recent delivery of six work-class remotely operated vehicles (ROV), and two more on order. Tidewater’s New Subsea Business
Slide 24: Tidewater's Future
• Continue to improve upon stellar safety and compliance programs • Maintain solid balance sheet and financial flexibility to deal with industry uncertainties and seize opportunities when presented • Disciplined deployment of cash to expand vessel and ROV fleet capabilities • Return capital to share
Slide 25: Barclays CEO Energy-Power Conference
Barclays CEO Energy-Power Conference September 4, 2014 Jeffrey M. Platt President & CEO Joseph M. Bennett EVP & Chief IRO
Slide 26: Of risewarer
Of risewarer
Slide 27: Financial Strategy Focused on Creating Long-Term Shareholder Value
Maintain Maintain Financial Strength Financial Strength EVA-Based Investments EVA-Based Investments On Through-cycle Basis On Through-cycle Basis Deliver Results Deliver Results Financial Strategy Focused on Creating Long-Term Shareholder Value
Slide 28: Fleet Renewal & Expansion Largely Funded by CFFO
Over a 15-year period, Tidewater has invested ~$5.2 billion in CapEx, and paid out ~$1.3 billion through dividends and share repurchases. Over the same period, CFFO and proceeds from dispositions were ~$3.9 billion and ~$800 million, respectively. $ in millions CFFO Fiscal Year Fleet Renewal & Expan
Slide 29: Total Revenue and Margin Fiscal 2008-2015
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 $175.6M at 51.8% Total Revenue and Margin Fiscal 2008-2015
Slide 30: Cyclical Upturn should Drive Margin Expansion
Vessel Cash Operating Margin ($) Vessel Cash Operating Margin (%) $164 million Vessel Margin in Q1 FY2015 (99% from New Vessels) Q1 FY2015 Vessel Margin: 43% Cyclical Upturn should Drive Margin Expansion
Slide 31: Quality of Customer Base
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 Current Revenue Mix Quality of Customer Base Super Majors 37% NOC's 22% Others 41%
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