Tidewater Inc. · NYSE:TDW
Tidewater — Capital One Southcoast 6th Annual Energy Conference (December 2011)
29 slides from Tidewater's conference presentation, Dec 6, 2011
Slide 1: Capital One Southcoast 6th Annual Energy Conference
CAPITAL ONE SOUTHCOAST 6TH ANNUAL ENERGY CONFERENCE DEAN E. TAYLOR JOSEPH M. BENNETT Chairman, President and CEO Executive VP and Chief Investor Relations Officer Dec. 6, 2011
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 Takeaways
KEY TAKEAWAYS • Culture of safety & operating excellence • Macro picture improving with increased working rigs • History of earnings growth and solid returns • Unmatched scale and scope of operations • World’s largest and newest fleet provides basis for continued earnings growth • Strong balance she
Slide 4: Safety Record Rivals Leading Companies
SAFETY RECORD RIVALS LEADING COMPANIES TOTAL RECORDABLE INCIDENT RATES 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 2002 2003 2004 2005 2006 2007 2008 2009 2010 CALENDAR YEARS TIDEWATER DOW CHEMICAL CHEVRON EXXON/MOBIL 4
Slide 5: 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) Nov. 2011 343 169 54 566 (post‐Horizon) GOM accounts for 31 of the 36 working jackup count variance from June 2008 (Peak) to November 2011 (post-Horizon)
Slide 6: The Worldwide OSV Fleet – Retirements Expected to Exceed New Deliveries
THE WORLDWIDE OSV FLEET – RETIREMENTS EXPECTED TO EXCEED NEW DELIVERIES (Includes AHTS and PSV’s only) Estimated as of November 2011 As of early-November 2011, there are approximately 447 additional AHTS and PSV’s (~17% of the global fleet) under construction. 300 250 Vessels > 25 years old today Bu
Slide 7: History of Earnings Growth and Solid Through-Cycle Returns
HISTORY OF EARNINGS GROWTH AND SOLID THROUGH-CYCLE RETURNS 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 Adjusted Return On Avg. Equity 4.3%
Slide 8: Our Global Footprint
OUR GLOBAL FOOTPRINT Vessel Distribution by Region (excludes stacked vessels – as of 9/30/11) MENA 37 (14%) Asia/Pac 32 (12%) SS Africa/Europe Americas 125 (48%) 66 (25%) In 2Q FY 2012, <5% of vessels/revenue was generated in U.S. GOM; however, 39 total U.S.-flagged vessels provide good optionality
Slide 9: The Largest Modern OSV Fleet in the Industry
THE LARGEST MODERN OSV FLEET IN THE INDUSTRY…. Vessel Commitments Jan. ’00 – September ‘11 Vessel Count Estimated Cost AHTS 103 $1,805m PSV’s 88 $1,842m Crewboats & Tugs 71 $301m TOTALS: 262 $3,948m(1) (1) $3,446m (87%) funded through 9/30/11 . At 9/30/11, 201 new vessels were in our fleet with ~5.2
Slide 10: ...And More to Come
…. AND MORE TO COME Vessels Under Construction* As of September 30, 2011 Count AHTS 16 PSV 19 Crew and Tug 5 Total 40 Estimated delivery schedule – 20 in FY ‘12, 13 in FY ‘13 and 7 thereafter. CAPX of $306m in remainder of FY ‘12, $164m in FY ‘13 and $32m in FY ’14. * Includes 12 new vessel purchase
Slide 11: Recent Vessel Commitments
RECENT VESSEL COMMITMENTS 53 vessels over last 2+ years with a total capital cost of $982 million 12 1 PSV 6 AHTS 9 AHTS 10 3 PSV’s # of vessels 4 PSV’s 4 AHTS 8 $139M 4 PSV $179M 3 AHTS $177M 6 AHTS 1 AHTS 6 4 CREW $139M 4 AHTS $72M 4 $24M 1 MPSV $55M 1 PSV 2 PSV’s 2 $96M $101M 0 9/30/09 12/31/09 3
Slide 12: Fleet Renewal & Expansion Funded by CFFO Through Fiscal 2011
FLEET RENEWAL & EXPANSION FUNDED BY CFFO THROUGH FISCAL 2011 $ 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 has invested $3.8 billion in CapEx ($3.3 billi
Slide 13: Recent Financings Will Fund Growth at an Attractive Relative Cost
RECENT FINANCINGS WILL FUND GROWTH AT AN ATTRACTIVE RELATIVE COST Private Placement Financings: Senior Unsecured Notes $590 million Average Life to Maturity (as of 9/30/11) ~ 8.5 years Weighted Average Coupon 4.30% New Credit Facilities: Term Loan $125 million Revolving Line of Credit $450 million R
Slide 14: Strong Financial Position Provides Strategic Optionality
STRONG FINANCIAL POSITION PROVIDES STRATEGIC OPTIONALITY As of September 30, 2011 Cash & Cash Equivalents $302 million Total Debt $825 million Shareholders Equity $2,513 million Net Debt / Net Capitalization 17% Total Debt / Capitalization 25% ~$900 million of liquidity as of 9/30/11, including $575
Slide 15: Where Could Fiscal 2014 Find Us?
WHERE COULD FISCAL 2014 FIND US? Potential for Earnings Acceleration ~$700M This info is not meant to be a EBITDA prediction of future earnings performance, but simply an indication of earning sensitivities 90.0% ~$8.70 resulting from future fleet Avg. Utilization additions and reductions and ~$500M
Slide 16: 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 16
Slide 17: Capital One Southcoast 6th Annual Energy Conference
CAPITAL ONE SOUTHCOAST 6TH ANNUAL ENERGY CONFERENCE DEAN E. TAYLOR JOSEPH M. BENNETT Chairman, President and CEO Executive VP and Chief Investor Relations Officer Dec. 6, 2011
Slide 18: Appendix
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Slide 19: International Strength
INTERNATIONAL STRENGTH Unique global footprint 50+ years of Int’l experience International (non U.S.) markets generally characterized by: • More growth • Longer contracts • Better utilization • Higher dayrates Solid customer base of NOC’s and IOC’s 19
Slide 20: Vessel Population by Owner
VESSEL POPULATION BY OWNER (AHTS and PSV’s only) – Estimated as of November 2011 400 300 258 200 146 109 76 67 100 64 5 0 Avg. Tidewater Competitor #1 Competitor #2 Competitor #3 Competitor #4 Competitor # 5 All Others (1,966 total vessels for Tidewater AHTS and PSV fleet includes 147 vessel additio
Slide 21: Fleet Cash Operating Margins
FLEET CASH OPERATING MARGINS Traditional Vessels New Vessels $800 $700 $600 $500 ($ millions) $400 $300 $200 $100 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Fiscal Years Cash Oper Margin 38.6% 37.6% 46.5% 41.9% 36.9% 38.7% 49.1% 54.6% 51.9% 51.3% 46.8% 39.3% Note: Cash operating
Slide 22: Through-Cycle, EVA-Based Investment; Balance Between Buy and Build
THROUGH-CYCLE, EVA-BASED INVESTMENT; BALANCE BETWEEN “BUY” and “BUILD” Through 9/30/11, vessel 35 commitments include 262 vessels with a capital cost of $3.948 billion 30 # of vessels 25 Built Acquired 20 15 10 5 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Fiscal Year Act
Slide 23: Recent Financial Results Reflect Cyclical Downturn
RECENT FINANCIAL RESULTS REFLECT CYCLICAL DOWNTURN Six Months Ended $ in Millions, Except Per Share Data 9/30/11 9/30/10 Revenues $506 $530 Net Earnings* $42 $59 EPS* $0.81 $1.15 Net Cash from Operations $87 $153 Capital Expenditures $155 $391 * Excludes $22.1 million, or $0.43 per share, goodwill i
Slide 24: Rigs Contracted by Our Top Customers
RIGS CONTRACTED BY OUR TOP 10 CUSTOMERS (Estimated as of November 2011) Jackups Floater Rigs (343 Working Rigs) (223 Working Rigs) Top 10 customers Other Operators Top 10 Customers 81 113 110 Other Operators 262 Tidewater’s top 10 customers contract ~24% of the working worldwide jackup fleet and ~50
Slide 25: Current Revenue Mix
CURRENT REVENUE MIX Quality of Customer Base Others 36% Super Majors 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 25
Slide 26: Significant Average Age Improvement
SIGNIFICANT AVERAGE AGE IMPROVEMENT 20 20 16 15 Vessel Avg. Age 10 6 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 in future (versus an average of 52 vessel dispositions per year over last 3 years). 2)
Slide 27: Vessel Dayrates by Segment
VESSEL DAYRATES BY SEGMENT Americas Asia/Pac MENA Sub Sah Africa $18,000 $16,000 Average Dayrate $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 27
Slide 28: Vessel Utilization by Segment
VESSEL UTILIZATION BY SEGMENT Americas Asia/Pac MENA Sub Sah Africa 90% 80% Avg. Utilization 70% 60% 50% 40% 30% 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 28
Slide 29: Returns vs the Market: Five Year Stockholder Return
RETURNS vs the MARKET FIVE YEAR STOCKHOLDER RETURN 80.0% 60.0% OSX 42% 40.0% DJIA 27% 20.0% TDW 18% S&P 500 14% 0.0% -20.0% -40.0% -60.0% TDW DJIA S&P 500 OSX 29
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