Tidewater Inc. · NYSE:TDW
Tidewater — 42nd Annual Howard Weil Energy Conference (March 2014)
30 slides from Tidewater's conference presentation, Mar 24, 2014
Slide 1: 42nd Annual Howard Weil Energy Conference
42nd Annual Howard Weil Energy Conference Jeffrey M. Platt Quinn P. Fanning Joseph M. Bennett President & CEO EVP & CFO EVP & Chief IRO March 24, 2014
Slide 2: Forward-Looking Statements
TIDEWATER 601 Poydras Street, Suite 1500, New Orleans, LA 70130 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 inf
Slide 3: Key Tidewater Takeaways
Key Tidewater Takeaways • Consistent goal of “Best in Class” safety and compliance culture • Largest “NEW” OSV fleet in the industry, operating in over 50 countries with ~8,000 employees worldwide • History of earnings growth and solid returns • Challenged, yet still constructive fundamental backdro
Slide 4: Safety Record Rivals Leading Companies
Safety Record Rivals Leading Companies • Safe Operations is Priority #1 • Stop Work Obligation • Safety performance is 25% of mgt. incentive comp 0.7 TOTAL RECORDABLE INCIDENT RATES 0.6 0.5 0.4 0.3 0.2 0.1 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 CALENDAR YEARS TIDEWATER DOW CHEMICAL CHEV
Slide 5: Working Offshore Rig Trends
Working Offshore Rig Trends 450 400 414 Jackups 350 Working Rigs 300 250 254 Floaters 200 150 100 Prior peak (summer 2008) 50 0 1/04 7/04 1/05 7/05 1/06 7/06 1/07 7/07 1/08 7/08 1/09 7/09 1/10 7/10 1/11 7/11 1/12 7/12 1/13 7/13 1/14 Source: ODS-Petrodata Note: 44 “Other” rigs, along with the Jackups
Slide 6: Drivers of our Business "Peak to Present"
Drivers of our Business “Peak to Present” July 2008 Jan. 2011 March (Peak) (Trough) 2014 Working Rigs 603 538 712 Rigs Under 186 118 236 Construction OSV Global 2,033 2,599 3,088 Population OSV’s Under 736 367 463 Construction OSV/Rig Ratio 3.37 4.83 4.34 Source: ODS-Petrodata and Tidewater 42nd Ann
Slide 7: The Worldwide OSV Fleet
The Worldwide OSV Fleet (Includes AHTs and PSVs only) Estimated as of March 2014 As of March 2014, there are approximately 463 additional AHTS and PSV’s (~15% of the global fleet) under construction. 300 250 Vessels > 25 years old today Number of Vessels Built 200 (AHTS & PSV) 150 100 50 0 1965 1970
Slide 8: Tidewater's Active Fleet
Tidewater’s Active Fleet As of December 31, 2013 Deepwater vessels Towing Supply/Supply Other vessels 244 “New” vessels – 6.0 avg yrs 25 “Traditional” vessels – 26.5 avg yrs Number of Vessels Year Built 42nd Annual Howard Weil Energy Conference 8
Slide 9: Vessel Population by Owner
Vessel Population by Owner (AHTS and PSVs only) Estimated as of March 2014 400 300 219 174 200 133 75 69 67 100 5 0 Avg. Tidewater Competitor #1 Competitor #2 Competitor #3 Competitor #4 Competitor # 5 All Others (2,351 total vessels for 400+ owners) Source: ODS-Petrodata and Tidewater 42nd Annual H
Slide 10: Our Global Footprint – Vessel Count by Region
Our Global Footprint – Vessel Count by Region (Excludes stacked vessels – as of 12/31/13) MENA 45(17%) Asia/Pac 23(8%) SS Africa/Europe Americas 135(50%) 66(25%) In 3Q FY 2014, ~10% of vessel revenue was generated in the U.S. by ~ 17 vessels; however, <15 other U.S.-flagged vessels are currently ope
Slide 11: Our Global Footprint – Vessel Class by Region
Our Global Footprint – Vessel Class by Region (Excludes stacked vessels – as of 12/31/13) New Avg. Traditional Americas New Avg. Traditional MENA Vessels NBV Vessels Vessels NBV Vessels Deepwater 11 $16.6M 1 Deepwater 31 $19.9M 0 Towing Supply 31 $12.5M 0 Towing Supply 14 $10.9M 8 Other 0 0 2 Other
Slide 12: A Broad Portfolio of New High Spec OSVs
A Broad Portfolio of New High Spec OSVs Current Future Deepwater PSV DWT Fleet CIP Fleet 5,000-6,000 15 5 20 4,000-4,999 11 11 22 3,000-3,999 43 6 49 <3,000 6 0 6 75 22 97 Deepwater AHTS Current Future BHP Fleet CIP Fleet 25,000+ 5 0 5 13,500-16,500 7 0 7 12 0 12 Towing Supply Current Future BHP Fle
Slide 13: The Largest Modern OSV Fleet in the Industry
The Largest Modern OSV Fleet in the Industry Vessel Commitments Average Cost Jan. ’00 – December ‘13 Vessel Count (2) Total Cost (2) per Vessel Deepwater PSVs 97 $2,725m $28.1m Deepwater AHTSs 12 $387m $32.3m Towing Supply/Supply 109 $1,617m $14.8m Other 55 $277m $5.0m TOTALS: 273 $5,006m(1) $18.3m
Slide 14: Strong Financial Position Provides Strategic Optionality
Strong Financial Position Provides Strategic Optionality As of December 31, 2013 Cash & Cash Equivalents $114 million Total Debt $1,464 million Shareholders Equity $2,640 million Net Debt / Net Capitalization 34% Total Debt / Capitalization 36% ~$715 million of available liquidity as of 12/31/13, in
Slide 15: Debt Maturities Limited for Several Years
Debt Maturities Limited for Several Years $800 Debt Maturity (in $millions) $600 $400 $200 $0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Fiscal Year 42nd Annual Howard Weil Energy Conference 15
Slide 16: History of Earnings Growth & Solid Through-Cycle Return
History of Earnings Growth & Solid Through-Cycle Return Adjusted EPS** Adjusted EPS ** Adjusted Return On Avg. Equity 4.3% 7.2% 12.4% 18.9% 18.3% 19.5% 11.4% 5.0% 4.3% 5.9% ** EPS in Fiscal 2004 is exclusive of the $.30 per share after tax impairment charge. EPS in Fiscal 2006 is exclusive of the $.
Slide 17: Active Vessel Dayrates & Utilization by Segment
Active Vessel Dayrates & Utilization by Segment Americas Asia/Pac MENA Sub Sah Africa/Eur. $22,000 Avg. Dayrate $18,000 $14,000 $10,000 $6,000 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 100% Avg. Utilization 90% 80% 70% 60% 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 Impact of $7.4 million of retro
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 $60,000 240 $50,000 Q3 Fiscal 2014 200 Avg Day Rate: $29,092 Utilization: 82.7% $40,000 160 $30,000 120 $20,000 73 75 80 66 69 62 54 55 57 49 51 43 44 45 47 38 40 $10,000 32 34 40 25 2
Slide 19: New Vessel Trends: Towing Supply/Supply Vessels
New Vessel Trends by Vessel Type Towing Supply/Supply Vessels Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size $25,000 250 Q3 Fiscal 2014 $20,000 Avg Day Rate: $15,144 200 Utilization: 85.5% $15,000 150 103 103 104 99 101 101 102 103 $10,000 93 100 85 88 81 83 78 68 61 63 57 59 51
Slide 20: Tidewater's New Subsea Business
Tidewater’s New Subsea Business Recent delivery of six work-class remotely operated vehicles (ROV) 42nd Annual Howard Weil Energy Conference 20
Slide 21: Tidewater's Future
Tidewater’s Future • Continue to improve upon stellar safety and compliance programs • Disciplined deployment of cash to expand vessel and ROV fleet capabilities • Maintain solid balance sheet and financial flexibility to deal with industry uncertainties and seize opportunities when presented • Retu
Slide 22: 42nd Annual Howard Weil Energy Conference
42nd Annual Howard Weil Energy Conference Jeffrey M. Platt Quinn P. Fanning Joseph M. Bennett President & CEO EVP & CFO EVP & Chief IRO March 24, 2014
Slide 23: Appendix
Appendix 42nd Annual Howard Weil Energy Conference 23
Slide 24: 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 42nd Annual Howard Weil Energy Conference 24
Slide 25: …and More to Come
…and More to Come Vessels Under Construction* As of December 31, 2013 Count Deepwater PSVs 22 Deepwater AHTSs - Towing Supply/Supply 6 Other 1 Total 29 Estimated delivery schedule – 1 for the remainder of FY ’14, 16 in FY ’15 and 12 thereafter. CAPX of $93m for the remainder of FY ’14, $366m in FY ‘
Slide 26: Fleet Renewal & Expansion Largely Funded by CFFO
Fleet Renewal & Expansion Largely Funded by CFFO $ 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 2012 2013 Fiscal Year Over a 14-year period, Tidewater has invested $4.6 billion in CapEx, and paid out
Slide 27: Total Revenue and Margin Fiscal 2008-2014
Total Revenue and Margin Fiscal 2008-2014 Prior peak period (FY2009) averaged quarterly revenue of $339M, quarter operating $500 56.4% margin of $175.6M at 51.8% 53.0% 46.7% 47.7% 50.0% 46.3% $400 45.0% 44.1% 45.2% 42.0% 41.0% 40.8% 38.0% 36.9% $300 $300 million Millions $200 $150 million $100 $- Q1
Slide 28: Cyclical Upturn should Drive Margin Expansion
Cyclical Upturn should Drive Margin Expansion Vessel Cash Operating Margin ($) Vessel Cash Operating Margin (%) $200 70% $175 60% $150 50% $125 40% $100 30% $75 $50 20% $25 10% $0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 29: New Vessel Trends by Vessel Type: Deepwater AHTS
New Vessel Trends by Vessel Type Deepwater AHTS Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size $60,000 240 $50,000 Q3 Fiscal 2014 200 Avg Day Rate: $29,141 Utilization: 95.8% $40,000 160 $30,000 120 $20,000 80 $10,000 40 8 9 9 11 11 11 11 11 11 11 11 11 11 11 11 11 11 12 5 5 5 5
Slide 30: Current Revenue Mix: Quality of Customer Base
Current Revenue Mix Quality of Customer Base Others Super Majors 41% 38% NOC's 21% Our top 10 customers in Fiscal 2013 (4 Super Majors, 2 NOC’s, 3 IOC’s and 1 independent) accounted for 58% of our revenue 42nd Annual Howard Weil Energy Conference 30
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