Tidewater Inc. · NYSE:TDW
Tidewater — 2017 Johnson Rice Energy Conference
21 slides from Tidewater's conference presentation, Sep 26, 2017
Slide 1: 2017 Johnson Rice Energy Conference
2017 Johnson Rice Energy Conference Jeff Platt President and CEO Joseph Bennett Executive VP and Chief Investor Relations Officer September 26, 2017
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: Dealing with a Challenging Market
Dealing with a Challenging Market Safety Leadership Trusted Partner • TRIR in FY2017 exceeded last five years’ avg. Committed to Compliance • 60+ years experience in global OSV market • No LTAs in over 59 million manhours worked • Highly experienced management team (through 8/31/17) Proactive Cost C
Slide 4: The New Tidewater - A Solid Foundation with Many Strengths
The New Tidewater - A Solid Foundation with Many Strengths Unique Financial strength • Zero net debt post-restructuring • Covenant holiday for all EBITDA-based covenants through 6/30/19 • Returning 16 leased vessels (average age 12 yrs) to owners, which together with reduced interest costs, will sav
Slide 5: Committed to Safety Leadership
Committed to Safety Leadership Total Recordable Incident Rates CY 2005-2016 (per 200,000 Man Hours) TRIR = Sum of LTA’s and Recordables x 200,000 divided by Man Hours Worked 0.60 0.50 0.5 0.5 1.0 0.0 1.0 0.0 0.40 0.15 0.14 10 year average 5 year average 0.30 0.20 0.10 0.00 2005 2006 2007 2008 2009 2
Slide 6: Market Outlook
Market Outlook Calendar Year Average 2017 2018 2019 Consensus – Brent $53.00 $56.75 $61.00 IHS - Brent $50.90 $48.38 Not Available Oil Price Outlook Rystad - Brent $52.00 $57.00 $62.00 $130 120 110 100 90 80 70 60 50 40 30 Apr-10 Sep-11 Feb-13 Jun-14 Nov-15 Apr-17 Aug-18 Jan-20 May-21 Historical - W
Slide 7: Market Drivers
Market Drivers Working Offshore Rigs Overall working rig count down ~40% from 450 2H 2014 peak to 444 current working rigs 421 Consensus outlook assumes slow recovery in 400 jackup and floater market in 2H 2017 and 350 Jackups 1H18, respectively Consensus outlook suggests ~ 500-550 300 286 257
Slide 8: OSV Business Drivers – Where have we been and where do we go from here?
OSV Business Drivers – Where have we been and where do we go from here? 4,000 9.00 3,500 8.00 Working Rigs 6.54 7.00 3,000 OSV Global Population Without ~600 vessels 25+ yrs old 6.00 OSV/Working Rig Ratio 2,500 5.64 OSV/Rig Ratio Total Units Without ~1,000 vessels 15+ yrs old 5.00 2,000 4.00 1,500 3
Slide 9: Tidewater's Active Fleet vs. Worldwide OSV Fleet
Tidewater’s Active Fleet vs. Worldwide OSV Fleet Tidewater’s Active Fleet Worldwide OSV Fleet As of June 30, 2017 Estimated as of September 2017 30 350 143 8.2 300 3,500 17% 29% 25 Vessels Years Avg Approx. Vessels in Vessels Est. to be Vessels Est. to be Age the Global Fleet 25+ Years Old 15+ Years
Slide 10: Global OSV Leader
Revenue Mix Global OSV Leader 143 total active vessels with average vessel age of 8.2 years. Super Others Majors Production 33% Support Drilling 31% Support 40% 60% NOCs 36% Europe & Africa Our top 10 customers in Fiscal 2017 (3 Super Majors, 4 NOCs, Active Fleet and 3 Other) accounted for 75% of ou
Slide 11: Size and Scope of Operations Matter
Size and Scope of Operations Matter 300 208 207 200 163 120 AHTS and PSVs only, as of September 2017 100 69 68 63 59 52 50 47 5 0 Tidewater Bourbon Chouest SolstadFarstad Swire Gulfmark Seacor Hornbeck Topaz Harvey Gulf Maersk Avg. All Others All Others (~2,400 total vessels for 400+ owners) Source:
Slide 12: Tidewater's Unique Financial Position in the OSV Industry
Tidewater’s Unique Financial Position in the OSV Industry (% of Enterprise Value) Market Cap Net Debt 100% 80% 38% 44% 54% 64% 72% 73% 60% 86% 90% 92% 92% 93% 93% 94% 100% 40% 62% 56% 46% 20% 36% 28% 27% 14% 8% 10% 8% 7% 6% 7% -- ~# of OSVs 208 63 26 10 30 27 207 29 59 9 17 120 46 17 Source: Factset
Slide 13: Minimal Future CAPX – Another Strength
Minimal Future CAPX – Another Strength FY2018 future est. Capex required as of June 30, 2017 (approx. $6m) 2017 Johnson Rice Energy Conference | ©2017 TIDEWATER INC. 13
Slide 14: Solid Financial Foundation is Key in a Challenging Market
Solid Financial Foundation is Key in a Challenging Market Pro Forma June 30, 2017 Balance Sheet Summary Cash & Equiv.: Total Debt: Stkhldrs Equity: >$450 million $440 million $931 million Debt Maturity: Total Debt / Cap: Net Debt/Net Cap: A. ~$350 million take back debt due July 2022 32% 0% B. ~$90
Slide 15: Go Forward Strategy
Go Forward Strategy Remain leader in safety, compliance and operational excellence Tight cost control Protect balance sheet and liquidity Be alert for growth opportunities Deliver shareholder returns 2017 Johnson Rice Energy Conference | ©2017 TIDEWATER 15 INC.
Slide 16: www.tdw.com
NEW ORLEANS, LOUISIANA HOUSTON, TEXAS Worldwide Headquarters Tidewater Marine, L.L.C. Tidewater Inc. 6002 Rogerdale Road Pan American Life Center Suite 600 601 Poydras Street, Suite 1500 Houston, Texas 77072 www.tdw.com New Orleans, Louisiana 70130 P: +1 713 470 5300 P: +1 504 568 1010
Slide 17: OSV Supply & Demand
OSV Supply & Demand OSV Supply, Demand and Fleet Utilization Rig Support Demand Production Support Demand Source: Clarksons Platou Securities AS (May 2017) (*includes PSVs >50m LOA and >=1000 dwt + AHTS 4-10k bhp) 2017 Johnson Rice Energy Conference | ©2017 TIDEWATER INC. 17
Slide 18: New Vessel Trends by Vessel Type – Deepwater PSVs
New Vessel Trends by Vessel Type – Deepwater PSVs Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size $60,000 300 Q1 FY2018 Avg Day Rate: $50,000 $12,830 250 Utilization: 43.2% $40,000 200 $30,000 150 91 92 92 92 $20,000 86 89 88 90 90 100 80 81 73 75 76 76 77 62 66 69 51 54 55 57 $1
Slide 19: New Vessel Trends by Vessel Type – AHTS
New Vessel Trends by Vessel Type – AHTS Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size $60,000 300 Q1 FY2018 Avg Day Rate: $13,775 $50,000 Utilization: 25.3% 250 $40,000 200 $30,000 150 $20,000 100 $10,000 50 11 11 11 11 11 11 11 11 11 11 11 11 11 11 12 12 12 12 12 12 12 12 12 1
Slide 20: New Vessel Trends by Vessel Type – Towing Supply / Supply
New Vessel Trends by Vessel Type – Towing Supply / Supply Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size $25,000 250 Q1 FY2018 Avg Day Rate: $10,961 Utilization: 52.4% $20,000 200 $15,000 150 104 105 105 105 106 107 107 106 106 101 102 103 $10,000 93 100 85 81 68 61 57 51 47 $5,
Slide 21: Vessel Revenue & Vessel Operating Margin, Fiscal 2008-2017
Vessel Revenue & Vessel Operating Margin, Fiscal 2008-2017 Prior peak period (FY2009) averaged quarterly revenue of $339M, quarterly operating $500 56.4% margin of $175.6M at 51.8% 53.0% 50.8% 46.7% 47.7% 50.0% 46.3% 45.6% 47.6% $400 45.0% 44.1% 43.1% 43.0% 41.0% 40.8% 40.2% 38.0% 36.9% 38.5% 37.1%