Tidewater Inc. · NYSE:TDW
Tidewater — 2016 Johnson Rice Energy Conference
25 slides from Tidewater's conference presentation, Sep 22, 2016
Slide 1: 2016 Johnson Rice Energy Conference
2016 Johnson Rice Energy Conference Joseph M. Bennett Quinn P. Fanning Executive Vice President and Executive Vice President Chief Investor Relations Officer and Chief Financial Officer September 22, 2016 2016 Johnson Rice Energy 2016 Louisiana Energy Conference Conference 1
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 in
Slide 3: Strategy and Focus in a Challenged Market, and Results
Strategy and Focus in a Challenged Market, and Results Providing safe, efficient and compliant operations – TRIR of 0.08 per 200,000 manhours in fiscal 2016 was lowest in company history, and NO lost time accidents. Safety record is even better thus far in fiscal 2017. New fleet comprised of ves
Slide 4: What Tidewater Will NOT Do
What Tidewater Will NOT Do We will NOT compromise safety We will NOT compromise on compliance We will NOT jeopardize fleet integrity/capability - “Smart stacking” vessels, with continual maintenance, while maintaining a new fleet comprised of vessels that can service all water depths We will
Slide 5: Safe Operations is Priority #1
Safe Operations is Priority #1 Stop Work Obligation Safety performance is 25% of mgt. incentive comp Operating safely offshore is like holding a snake by its 0.6 head TOTAL RECORDABLE INCIDENT RATES (per 200,000 Man Hours) 0.5 0.4 0.3 0.2 0.1 It's a task that can't be turned loose not for a micr
Slide 6: Rig Activity Levels Drive OSV Demand
Rig Activity Levels Drive OSV Demand 450 400 Jackups Working Rigs 350 300 250 276 200 Floaters 150 139 100 50 0 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 9/16 Source: IHS-Petrodata Note: 31 “Other” rigs, along with the Jackups and Floaters, provide a total working rig count of 446 in Se
Slide 7: Tidewater's Active Fleet vs the Worldwide OSV Fleet
Tidewater’s Active Fleet vs the Worldwide OSV Fleet Tidewater as of 6/30/16 and Worldwide Fleet Estimated as of September 2016 Deepwater vessels Towing Supply/Supply As of September 2016, there are approximately 333 Other vessels additional AHTS and PSV’s (~10% of the global fleet) under constructio
Slide 8: Vessel Population by Owner
Vessel Population by Owner (AHTS and PSVs only) Estimated as of September 2016 Avg. Tidewater Competitor #1 Competitor #2 Competitor #3 Competitor #4 Competitor # 5 All Others (~2,715 total vessels for 400+ owners) Source: IHS-Petrodata and Tidewater 8 2016 2016 Louisiana Johnson Energy Conference R
Slide 9: Geographic Diversity – Active Vessel Count by Region
Geographic Diversity – Active Vessel Count by Region (Excludes stacked vessels – as of 6/30/16) Middle East 33 vessels (19%) Asia/Pac 11 vessels (6%) Africa/Europe Americas 86 vessels (48%) 47 vessels (27%) 89 additional Tidewater vessels were stacked as of 6/30/16 9 20162016 Louisiana Johnson Rice
Slide 10: Staying Close to our Customers – Strong Customer Base
Staying Close to our Customers – Strong Customer Base Current Revenue Mix Super Others Majors 32% 32% Approximately 60% of our revenue is derived from drilling support activity and 40% from non-drilling related activity, such as support of production and construction activity NOC's 36% Our top 10 cu
Slide 11: The Largest Modern OSV Fleet in the Industry
The Largest Modern OSV Fleet in the Industry New Vessel Information as of June 30, 2016 New Vessel Average NBV Net Book Value Count (1) (2) per Vessel Deepwater PSVs 91 $1,903m $20.9m Deepwater AHTSs 12 $276m $23.0m Towing Supply/Supply 107 $1,035m $9.8m Other 39 $66m $1.7m TOTALS: 249 $3,280m $13.2
Slide 12: Our Remaining Construction Backlog
Our Remaining Construction Backlog Vessels Under Construction As of June 30, 2016 (excludes vessels under option*) Count Deepwater PSVs 4 Deepwater AHTSs - Towing Supply/Supply - Other - Total 4 Estimated delivery schedule – 2 in remainder of FY 2017 and 2 in FY 2018. CAPX of $25m in remainder of FY
Slide 13: CapEx is Decreasing from Recent High Levels
CapEx is Decreasing from Recent High Levels Amounts in orange in Fiscal 2017 and 2018 represent future expected CapEx on the 4 vessels under construction as of 6/30/16, totaling ~$58m. If options are not exercised, net CapEx totals ~$41m. NOTE: Fiscal 2017 and 2018 estimated CAPX above is Fiscal Yea
Slide 14: Summarized Balance Sheet Info
Summarized Balance Sheet Info Our Financial Position Provides Us Strategic Optionality As of June 30, 2016 Cash & Cash Equivalents $669 million Total Debt $2,041 million Shareholders Equity $2,213 million Net Debt / Net Capitalization 38% Total Debt / Capitalization 48% On 3/15/16, the company borro
Slide 15: Debt Maturities and Covenants as of 6/30/16
Debt Maturities and Covenants as of 6/30/16 Maturities Limited for Several Years Current Debt Covenants: 1) Debt/Total Capitalization Ratio of not greater than 55% Debt Maturity (in $millions) 2) EBITDA/Interest coverage of not less than 3.0X The company continues discussions with it banks and noteh
Slide 16: Tidewater's Long-Term Strategy
Tidewater’s Long-Term Strategy Continue to improve upon stellar safety and compliance programs Remain close to our customers and provide excellent service Monitor industry developments to adjust our playbook accordingly - Continue pro-active cost reduction initiatives - Maintain/protect liquid
Slide 17: 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 2016 Johnson 2016 Ri
Slide 18: Drivers of our Business - A View at Various Points in a Cycle
Drivers of our Business - “A View at Various Points in a Cycle” July January September 2008 2011 2016 Working Rigs 603 538 446 Down ~275 rigs (38%) from prior peak Rigs Under How many will be 186 118 177 delivered and how Construction many incremental? OSV Global Includes ~650 old 2,033 2,599 3,496
Slide 19: A New Fleet that Services All Water Depths
A New Fleet that Services All Water Depths (Excludes stacked vessels – as of 6/30/16 New Middle EastVessels Avg. Traditional Americas New Avg. Traditional NBV Vessels Vessels NBV Vessels Deepwater 9 $15.3M 0 Deepwater 24 29.8M 0 Towing Supply 24 $11.5M 0 Towing Supply 16 $9.6M 0 Other 0 0 0 Other 4
Slide 20: Fleet Renewal & Expansion Largely Funded by CFFO
Fleet Renewal & Expansion Largely Funded by CFFO CAPX Dividend Share Repurchase $700 $ in millions $600 $500 CFFO $400 $300 $200 $100 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Fiscal Year Over a 17-year period, Tidewater has invested ~$5.7 billion in Cap
Slide 21: Active Vessel Dayrates & Utilization by Segment
Active Vessel Dayrates & Utilization by Segment Americas Asia/Pac Middle East Africa/Eur. $26,000 Avg. Dayrate $22,000 $18,000 $14,000 $10,000 $6,000 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 100% Avg. Utilization 90% 80% 70% 60% 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 Utilization stats exclud
Slide 22: 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 Fiscal 2017 Avg Day Rate: $19,120 Utilization: 45.8% $50,000 250 $40,000 200 $30,000 150 $20,000 89 88 90 90 100 80 81 86 69 73 75 76 76 77 57 62 66 47 49 51 54 55 $10,0
Slide 23: 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 $60,000 300 Q1 Fiscal 2017 Avg Day Rate: $23,032 Utilization: 41.4% $50,000 250 $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
Slide 24: New Vessel Trends by Vessel Type: Towing Supply/Supply
New Vessel Trends by Vessel Type Towing Supply/Supply Vessels Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size $25,000 250 Q1 Fiscal 2017 Avg Day Rate: $12,546 Utilization: 55.9% $20,000 200 $15,000 150 103 104 105 105 105105106107107 101 102 $10,000 93 100 81 85 68 57 61 47 51 $5
Slide 25: Vessel Revenue and Vessel Operating Margin
Vessel Revenue and 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% 46.7% 47.7% 50.0% 46.3% 45.6% 45.5% $400 45.0% 44.1% 43.1% 41.0% 40.8% 41.2% 38.0% 39.9% 36.9% $300 $300 million