Tidewater Inc. · NYSE:TDW
Tidewater — UBS Global Oil and Gas Conference 2011
35 slides from Tidewater's conference presentation, May 26, 2011
Slide 1: UBS Global Oil and Gas Conference
QUINN QUINN P.P. FANNING FANNING UBS GLOBAL OIL AND Executive Executive Vice Vice President President ,, CFO CFO GAS CONFERENCE JOSEPH JOSEPH M. Executive M. BENNETT BENNETT Executive Vice Vice President President and and Chief Chief Investor Investor Relations Relations Officer Officer May 26, 2011
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS FORWARD-LOOKING 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 ach
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 3
Slide 4: Safety – A Top Priority
T SAFETY =A TOP PRIORITY. TIDEWATER ~—- Pea safely, offshore is * fixe hol ding a snake*byp its heads ata ltisjastask He worth t be ttirneel , looser not for mT cyosecaria ep ilikstrake without pity. acc iden ail att ,
Slide 5: Safety Record Rivals Leading Companies
SAFETY RECORD RIVALS LEADING COMPANIES Total Recordable Incident Rates TIDEWATER DOW CHEMICAL DUPONT EXXON MOBIL 1.00 0.75 0.50 0.25 0.00 2002 2003 2004 2005 2006 2007 2008 2009 Calendar Years 5
Slide 6: A Proud Moment For Tidewater: U.S. Coast Guard Awards
U.S. COAST GUARD AWARDS FOR CREW OF M/V DAMON B BANKSTON A Proud Moment For Tidewater April 15, 2011 Certificate of Valor: ALWIN JAMES LANDRY Gold Lifesaving Medal: ANTHONY ROBERT GERVASIO Silver Lifesaving Medal: LOUIS PAUL LONGLOIS Distinguished Public Service Award: CREW OF DAMON B BANKSON CONFID
Slide 7: Historical Earnings Summary
HISTORICAL EARNINGS SUMMARY “A Full Cycle” 32% Six-Year Compounded Annual Earnings Growth Rate Adjusted EPS** $7.89 $8.00 $6.39 $5.94 $5.20 Adjusted EPS ** $6.00 $3.33 $4.00 $1.78 $2.40 $2.00 $1.03 $0.00 Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal 2004 2005 2006 2007 2008 2009 2010 2011
Slide 8: Where Could Fiscal 2014 Find Us?
WHERE COULD FISCAL 2014 FIND US? Potential for Earnings Acceleration ~$730M+ This info is not meant to be a EBITDA prediction of future earnings performance, but simply an indication of earning sensitivities 90.0% ~$9.10 resulting from future fleet Avg. Utilization additions and reductions and ~$520
Slide 9: International Strength
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 9
Slide 10: Our Global Footprint
OUR GLOBAL FOOTPRINT Vessel Distribution by Region (excludes stacked vessels – as of 3/31/11) Europe / M.E. 40 (14%) North America 16 (6%) Far East 35 (13%) West Africa 129 (47%) Central/South America 54 (20%) International / U.S. 2011: 94% / 6% 2000: 62% / 38% 10
Slide 11: Vessel Population by Owner
VESSEL POPULATION BY OWNER (Includes AHTS and PSV’s only) Estimated as of Early-May 2011 500 400 281 300 200 124 106 73 66 65 100 5 0 Avg. All Others (1,887 Tidewater Competitor #1 Competitor #2 Competitor #3 Competitor #4 Competitor # 5 total vessels for Tidewater fleet includes 144 vessel addition
Slide 12: Current Revenue Mix
CURRENT REVENUE MIX Quality of Customer Base Others Super Majors 36% 36% NOC's 28% Our top 10 customers in Fiscal 2011 (5 Super Majors, 3 NOC’s and 2 large independents) accounted for 63% of our revenue 12
Slide 13: The Largest Modern Fleet in the Industry
THE LARGEST MODERN FLEET IN THE INDUSTRY… Vessel Commitments Jan. ’00 – March ‘11 Vessel Count Estimated Cost AHTS 99 $1,743m PSV’s 84 $1,755m Crewboats & Tugs 67 $289m TOTALS: 250 $3,787m(1) (1) $3,293m (87%) funded through 3/31/11. At 3/31/11, 193 new vessels in fleet with ~5.4 year average age 13
Slide 14: Vessel Deliveries
VESSEL DELIVERIES 35 At 3/31/11, total 250 vessels with a capital cost of $3.79 billion 30 25 Built Acquired # of vessels 20 15 10 5 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Fiscal Year Actual deliveries through 3/31/11 and estimated vessel deliveries to build or acqui
Slide 15: And Our Lead Is Growing: Vessels Under Construction
… AND OUR LEAD IS GROWING Vessels Under Construction* As of March 31, 2011 Count AHTS 15 PSV 20 Crew and Tug 1 Total 36 Estimated delivery schedule – CAPX of $368m in FY ‘12, $110m in FY 25 in FY ‘12, 10 in FY ‘13 and ‘13 and $16m in FY ‘14 1 thereafter * Includes eight new vessels committed to purc
Slide 16: Significant Average Age Improvement
SIGNIFICANT AVERAGE AGE IMPROVEMENT 20 20 16 15 Vessel Avg. Age 10 The current average “economic age” of our 6 vessel fleet is ~6.2 years (based upon NBV) 5 0 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 12/31/14 Assumptions: 1) Average 45 vessel disposals per year i
Slide 17: Recent Vessel Commitments
RECENT VESSEL COMMITMENTS 41 vessels over seven quarters w/ total capital cost of $819 million 12 1 10 9 PSV 10 6 AHTS 8 9 AHTS 3 PSV’s 4 PSV’s # of vessels 4 AHTS 8 6 6 AHTS 6 4 $179M $177M $139M 4 AHTS 4 2 1 MPSV $72M 2 1 PSV $55M 2 PSV’s 2 $96M $101M 0 9/30/09 12/31/09 3/31/10 6/30/10 9/30/10 12/
Slide 18: Recent Financings
RECENT FINANCINGS “Only $240M of Total Debt is due through Fiscal 2015” Private Placement Financing: Senior Unsecured Notes $425 million Average Life to Maturity ~ 9 years Weighted Average Coupon 4.25% New Credit Facilities: Term Loan* $125 million Revolving Line of Credit $450 million Term Five yea
Slide 19: A Strong Balance Sheet and Ready Liquidity
A STRONG BALANCE SHEET AND READY LIQUIDITY March 31, 2011 info: Cash & Cash Equivalents $246 million Total Debt $700 million Shareholders Equity $2,514 million Net Debt / Net Capitalization 15% Total Debt / Capitalization 22% Pro forma liquidity as of 12/31/10 of ~ $825 million, including $575 milli
Slide 20: Primary Uses of Cash
PRIMARY USES OF CASH In $ millions CAPX Dividend Share Repurchase $700 $600 $500 $400 CFFO $300 $200 $100 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Fiscal Year Over a 12-year period, Tidewater invested $3.8 billion in CAPX ($3.4 billion in the “new” fleet), and paid out $994 mil
Slide 21: Fleet Cash Operating Margins
FLEET CASH OPERATING MARGINS Traditional Vessels Total Fleet New Vessels Operating Margin % 60% 51.9% $800 46.8% 54.6% 50% OPERATING MARGIN (in millions) 51.3% $700 OPERATING MARGIN (%) $600 40% New Vessels $500 ($ millions) 30% $400 $300 20% $200 10% $100 $0 Traditional Vessels 2000 2001 2002 2003
Slide 22: Financial Strategy Focused on Creating Long-Term Shareholder Value
FINANCIAL STRATEGY FOCUSED ON CREATING LONG-TERM SHAREHOLDER VALUE Deliver Results Maintain EVA-Based Investments Financial Strength On Through-cycle Basis 22
Slide 23: UBS Global Oil and Gas Conference
QUINN QUINN P.P. FANNING FANNING UBS GLOBAL OIL AND Executive Executive Vice Vice President President ,, CFO CFO GAS CONFERENCE JOSEPH JOSEPH M. Executive M. BENNETT BENNETT Executive Vice Vice President President and and Chief Chief Investor Investor Relations Relations Officer Officer May 26, 2011
Slide 24: Appendix
Appendix 24
Slide 25: Recent Accomplishments
RECENT ACCOMPLISHMENTS • Had two full years without a lost time accident (two years ended August 2010) – None since August 2010 • Respectable earnings & returns in a trough (tough) market • Selected acquisitions of choice assets • Disciplined disposal of traditional equipment • Delivery of 74 new ve
Slide 26: Selected Financial Highlights
SELECTED FINANCIAL HIGHLIGHTS Years Ended $ in Millions, Except Per Share Data 3/31/11 3/31/10 Revenues $1,055 $1,169 Adjusted Net Earnings* $123 $269 Adjusted EPS* $2.40 $5.20 Net Cash from Operations $264 $328 Capital Expenditures $615 $452 * Adjusted Net Earnings and Adjusted EPS for the year end
Slide 27: The Worldwide Fleet - Retirements Expected to Exceed New Deliveries
THE WORLDWIDE FLEET - RETIREMENTS EXPECTED TO EXCEED NEW DELIVERIES (Includes AHTS and PSV’s only) Estimated as of Early-May 2011 As of early-May 2011, there are approximately 405 additional AHTS and PSV’s (~16% of the global fleet) under construction. 300 250 Vessels > 25 years old today Built (AHT
Slide 28: Continually Acquiring New and Disposing of Mature Vessels
CONTINUALLY ACQUIRING NEW AND DISPOSING OF MATURE VESSELS (As of 3/31/11) 600 543 (C) 500 400 436 Sold 310 (B) 300 200 227 New Vessels (A) 100 107 Scrapped 0 Active Fleet Dispositions (A) Net new vessels added to the fleet since January 2000, including 36 vessels under construction at 3/31/11. This
Slide 29: International Vessels: Dayrates and Utilization
INTERNATIONAL VESSELS Dayrates and Utilization 90% Dayrate $14,000 80% $12,000 $10,000 70% $8,000 60% Utilization $6,000 50% $4,000 3/08 9/08 3/09 9/09 3/10 9/10 3/11 $100 change in dayrate = ~$7.9M in annual revenue 1% change in utilization = ~$15.1M in annual revenue * Dayrate and utilization info
Slide 30: International Vessel Dayrates
INTERNATIONAL VESSEL DAYRATES $18,000 New Vessels $15,000 $12,000 Traditional Vessels $9,000 $6,000 $3,000 03/08 09/08 03/09 09/09 03/10 09/10 03/11 * Dayrate and utilization information is for all classes of vessels operating international 30
Slide 31: Domestic Vessels: Dayrates and Utilization
DOMESTIC VESSELS Dayrates and Utilization 90% $19,000 Dayrate 70% $14,000 50% $9,000 Utilization 30% $4,000 3/08 9/08 3/09 9/09 3/10 9/10 3/11 * Dayrate and utilization information is for all classes of vessels operating in the U.S. 31
Slide 32: Domestic Vessel Dayrates
DOMESTIC VESSEL DAYRATES $24,000 $20,000 New Vessels $16,000 $12,000 $8,000 Traditional Vessels $4,000 03/08 09/08 03/09 09/09 03/10 09/10 03/11 * Dayrate and utilization information is for all classes of vessels operating in the U.S. 32
Slide 33: Working Rig Counts
WORKING RIG COUNTS “Peak to Present” Jackups Semis Drillships Total June 2008 379 145 30 554 (Peak) Late‐April 2010 323 150 46 519 (pre‐Horizon) Early‐May 2011 321 152 47 520 (post‐Horizon) GOM accounts for 30 of the 58 working jackup count variance from June 2008 (Peak) to May 2011 (post-Horizon)
Slide 34: Rigs Contracted by Our Top Customers
RIGS CONTRACTED BY OUR TOP 10 CUSTOMERS (Estimated as of Early- Early-May 2011) Jackups Floater Rigs (321 Working Rigs) (199 Working Rigs) Top 10 customers 65 Top 10 Customers 94 Other Operators 105 Other Operators 256 Tidewater’s top 10 customers contract ~20% of the working worldwide jackup fleet
Slide 35: Returns vs the Market: Five Year Stockholder Return
RETURNS vs the MARKET FIVE YEAR STOCKHOLDER RETURN OSX 42% DJIA 27% TDW 18% S&P 500 14% 35