Tidewater Inc. · NYSE:TDW
Tidewater — Scotia Howard Weil 43rd Annual Energy Conference 2015
30 slides from Tidewater's conference presentation, Mar 24, 2015
Slide 1: Scotia Howard Weil 43rd Annual Energy Conference
Scotia Howard Weil rd Annual Energy Conference March 23, 2015 Joseph M. Bennett EVP & Chief Investor Relations Officer Exhibit 99.1
Slide 2: Forward-Looking Statements
2 Scotia Howard Weil 43rd Annual Energy Conference 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
Slide 3: What's Important in a Challenged Market
3 Scotia Howard Weil 43rd Annual Energy Conference Safe, efficient and compliant operations New vessels that service all water depths Solid balance sheet and financial flexibility Geographic diversity What’s Important in a Challenged Market Strong customer base and relationships Reasonable CAPX expe
Slide 4: Safe Operations is Priority #1
4 Scotia Howard Weil 43rd Annual Energy Conference 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. Safe Operations is Priority #1 Stop Work Obligation Safety performance is 25% of mgt
Slide 5: Too Many Offshore Rigs, but Activity Levels Drive OSV Demand
5 Scotia Howard Weil 43rd Annual Energy Conference Source: ODS-Petrodata Note: 37 “Other” rigs, along with the Jackups and Floaters, provide a total working rig count of 679 in March 2015. Prior peak (summer 2008) Jackups Floaters Too Many Offshore Rigs, but Activity Levels Drive OSV Demand Rig CIP
Slide 6: Tidewater
TIDEWATER es
Slide 7: A New Fleet that Services All Water Depths
New Avg. Vessels NBV Deepwater 11 $26.4M Towing Supply 14 $11.6M Other 1 $6.5M 26 New Avg. Vessels NBV Deepwater 33 $28.5M Towing Supply 41 $12.3M Other 36 $1.8M 110 7 Scotia Howard Weil 43rd Annual Energy Conference New Avg. Vessels NBV Deepwater 35 20.6M Towing Supply 19 $9.8M Other 9 $3.2M 63 New
Slide 8: Strong Customer Base
8 Scotia Howard Weil 43rd Annual Energy Conference Super Majors 37% NOC's 22% Others 41% 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 Strong Customer Base Current Revenue Mix Approximately 60% of our revenue is derived from
Slide 9: The Largest Modern OSV Fleet in the Industry
Vessel Count (2) Total Cost (2) Average Cost per Vessel Deepwater PSVs 102 $2,900m $28.4m Deepwater AHTSs 12 $387m $32.3m Towing Supply/Supply 111 $1,667m $15.0m Other 53 $227m $4.3m TOTALS: 278 $5,181m (1) $18.6m (1) ~$4.68b (90%) funded through 12/31/14 (2) Vessel count and total cost is net of 26
Slide 10: CAPX is Decreasing from Recent High Levels
10 Scotia Howard Weil 43rd Annual Energy Conference CAPX is Decreasing from Recent High Levels Fiscal Year Fiscal 2014 is exclusive of Troms acquisition Amounts in Fiscal 2015-2017 represent known CAPX on only the 28 vessels and 2 ROVs under construction as of 12/31/14.
Slide 11: Solid Balance Sheet and Financial Flexibility
Cash & Cash Equivalents $77 million Total Debt $1,491 million Shareholders Equity $2,503 million Net Debt / Net Capitalization 36% Total Debt / Capitalization 37% 11 Scotia Howard Weil 43rd Annual Energy Conference As of December 31, 2014 ~$675 million of available liquidity as of 12/31/14, includin
Slide 12: Debt Maturities and Covenants as of 12/31/14
12 Scotia Howard Weil 43rd Annual Energy Conference Debt Maturities and Covenants as of 12/31/14 Maturities Limited for Several Years Fiscal Year Debt Covenants: 1) Debt/Total Capitalization Ratio of not greater than 55% 2) EBITDA/Interest coverage of not less than 3.0X
Slide 13: Return Capital to Shareholders
13 Scotia Howard Weil 43rd Annual Energy Conference Return Capital to Shareholders Consistent Dividends and Opportunistic Share Repurchases (in millions) Fiscal Years ~4.5% Current Dividend Yield
Slide 14: Tidewater's Strategy
14 Scotia Howard Weil 43rd Annual Energy Conference 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 Return capital to shareholders through dividends and o
Slide 15: Worldwide Headquarters
NEW ORLEANS, LOUISIANA Worldwide Headquarters Tidewater Inc. Pan American Life Center 601 Poydras Street, Suite 1500 New Orleans, Louisiana 70130 P: +1 504 568 1010 HOUSTON, TEXAS Tidewater Marine, L.L.C. 6002 Rogerdale Road Suite 600 Houston, Texas 77072-1655 P: +1 713 470 5300 www.tdw.com
Slide 16: Drivers of our Business: Peak to Present
July 2008 (Peak) Jan. 2011 (Trough) March 2015 Working Rigs 603 538 679 Rigs Under Construction 186 118 217 OSV Global Population 2,033 2,599 3,267 OSV’s Under Construction 736 367 437 OSV/Rig Ratio 3.37 4.83 4.81 16 Scotia Howard Weil 43rd Annual Energy Conference Source: ODS-Petrodata and Tidewate
Slide 17: The Worldwide OSV Fleet
17 Scotia Howard Weil 43rd Annual Energy Conference Vessels > 25 years old today Source: ODS-Petrodata and Tidewater As of March 2015, there are approximately 437 additional AHTS and PSV’s (~14% of the global fleet) under construction. Global fleet is estimated at 3,267 vessels, including ~700 vesse
Slide 18: Tidewater's Active Fleet
18 Scotia Howard Weil 43rd Annual Energy Conference Year Built Deepwater vessels Towing Supply/Supply Other vessels 242 “New” vessels – 6.6 avg yrs 18 “Traditional” vessels – 25.8 avg yrs (only 7 OSVs) Tidewater’s Active Fleet As of December 31, 2014
Slide 19: Vessel Population by Owner
19 Scotia Howard Weil 43rd Annual Energy Conference Source: ODS-Petrodata and Tidewater Tidewater Competitor #2 Competitor #3 Competitor #4 Competitor # 5 Competitor #1 Avg. All Others (2,509 total vessels for 400+ owners) Vessel Population by Owner (AHTs and PSVs only) Estimated as of March 2015
Slide 20: The Upgrading of the Tidewater Fleet
20 Scotia Howard Weil 43rd Annual Energy Conference Current Future Vintage DWT CIP Fleet Fleet Current Future Vintage BHP New Fleet CIP Fleet Fleet Current Future Vintage BHP CIP Fleet Fleet New Vintage Total DWT Fleet Fleet Fleet New Vintage Total BHP Fleet Fleet Fleet New Vintage Total BHP Fleet F
Slide 21: Vessels Under Construction
Count Deepwater PSVs 21 Deepwater AHTSs - Towing Supply/Supply 6 Other 1 Total 28 Estimated delivery schedule – 4 remaining in FY ’15, 18 in FY ‘16 and 6 thereafter. CAPX of $153m remaining in FY ’15, $257m in FY ‘16 and $61m thereafter. 21 Scotia Howard Weil 43rd Annual Energy Conference Vessels Un
Slide 22: Fleet Renewal & Expansion Largely Funded by CFFO
22 Scotia Howard Weil 43rd Annual Energy Conference 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.
Slide 23: Earnings per share history
23 Scotia Howard Weil 43rd Annual Energy Conference ** 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 24: Total Revenue and Margin, Fiscal 2008-2015
24 Scotia Howard Weil 43rd Annual Energy Conference Note: Vessel operating margin is defined as vessel revenue less vessel operating expenses Prior peak period (FY2009) averaged quarterly revenue of $339M, quarterly operating margin of $175.6M at 51.8% Total Revenue and Margin Fiscal 2008-2015
Slide 25: Historical Vessel Cash Operating Margins
25 Scotia Howard Weil 43rd Annual Energy Conference Vessel Cash Operating Margin ($) Vessel Cash Operating Margin (%) $168 million Vessel Margin in Q3 FY2015 (98% from New Vessels) Q3 FY2015 Vessel Margin: 44% Historical Vessel Cash Operating Margins
Slide 26: Active Vessel Dayrates & Utilization by Segment
26 Scotia Howard Weil 43rd Annual Energy Conference Utilization stats exclude stacked vessels. Active Vessel Dayrates & Utilization by Segment
Slide 27: New Vessel Trends: Deepwater PSVs
27 Scotia Howard Weil 43rd Annual Energy Conference Q3 Fiscal 2015 Avg Day Rate: $29,929 Utilization: 86.1% $189 million, or 50%, of Vessel Revenue in Q3 Fiscal 2015 New Vessel Trends by Vessel Type Deepwater PSVs
Slide 28: New Vessel Trends: Deepwater AHTS
28 Scotia Howard Weil 43rd Annual Energy Conference Q3 Fiscal 2015 Avg Day Rate: $33,375 Utilization: 83.0% $31 million, or 8%, of Vessel Revenue in Q3 Fiscal 2015 New Vessel Trends by Vessel Type Deepwater AHTS
Slide 29: New Vessel Trends: Towing Supply/Supply Vessels
29 Scotia Howard Weil 43rd Annual Energy Conference Q3 Fiscal 2015 Avg Day Rate: $15,647 Utilization: 80.8% $122 million, or 32%, of Vessel Revenue in Q3 Fiscal 2015 New Vessel Trends by Vessel Type Towing Supply/Supply Vessels
Slide 30: Tidewater's New Subsea Business
30 Scotia Howard Weil 43rd Annual Energy Conference Six work-class ROV’s in current fleet and two more on order Commercial operations underway with additional opportunities in Americas, SSAE and Asia/Pac ROV capabilities generating potential for OSV pull through Tidewater’s New Subsea Business
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