Tidewater Inc. · NYSE:TDW
Tidewater — GHS 100 Energy Conference 2015
30 slides from Tidewater's conference presentation, Jun 23, 2015
Slide 1: GHS 100 Energy Conference
GHS 100 Energy Conference Joseph M. Bennett EVP & Chief Investor Relations Officer June 23, 2015
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: Tidewater's Strategy & Focus in a Challenging Market
Tidewater’s Strategy & Focus in a Challenging Market Providing safe, efficient and compliant operations New fleet comprised of vessels that service all water depths Geographic diversity Staying close to our customers Prompt, proactive cost-cutting initiatives Reducing CapEx, and returning capital to
Slide 4: Safe Operations is Priority #1
Safe Operations is Priority #1 Stop Work Obligation Safety performance is 25% of mgt. incentive comp 0.60 TOTAL RECORDABLE INCIDENT RATES (per 200,000 Man Hours) 0.50 0.40 0.30 0.20 0.10 0.00 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 TIDEWATER DOW CHEMICAL CHEVRON EXXON/MOBIL GHS 100 En
Slide 5: Too Many Offshore Rigs, but Activity Levels Drive OSV Demand
Too Many Offshore Rigs, but Activity Levels Drive OSV Demand 450 400 Jackups 383 350 Working Rigs 300 250 200 Floaters 220 150 Rig CIP Jackups 129 100 Floaters 80 Prior peak (summer 2008) Other 8 50 217 0 6/04 6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 6/15 Source: ODS-Petrodata Note: 34 “Oth
Slide 6: Drivers of our Business "Peak to Present"
Drivers of our Business “Peak to Present” July 2008 Jan. 2011 June (Peak) (Trough) 2015 Working Rigs 603 538 637 Rigs Under 186 118 217 Construction OSV Global 2,033 2,599 3,280 Population OSV’s Under 736 367 414 Construction 5.15 (4.60 OSV/Rig Ratio 3.37 4.83 without ~350 old vessels believed not a
Slide 7: The Worldwide OSV Fleet
The Worldwide OSV Fleet (Includes AHTs and PSVs only) Estimated as of June 2015 As of June 2015, there are approximately 414 additional AHTS and PSV’s (~13% of the global fleet) under construction. Some number of these, we believe, will not be completed and delivered. 300 250 Vessels > 25 years old
Slide 8: Tidewater's Active Fleet
Tidewater’s Active Fleet As of March 31, 2015 Deepwater vessels Towing Supply/Supply Other vessels 35 30 242 “New” vessels – 7.4 avg yrs 25 16 “Traditional” vessels – 26.3 avg yrs Number of Vessels (only 6 OSVs) 20 15 10 5 0 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 Year Built GHS 100 Energy
Slide 9: Vessel Population by Owner
Vessel Population by Owner (AHTs and PSVs only) Estimated as of June 2015 400 300 216 191 200 148 73 71 100 63 5 0 Avg. Tidewater Competitor #1 Competitor #2 Competitor #3 Competitor #4 Competitor # 5 All Others (~2,515 total vessels for 400+ owners) Source: ODS-Petrodata and Tidewater GHS 100 Energ
Slide 10: Geographic Diversity – Vessel Count by Region
Geographic Diversity – Vessel Count by Region (Excludes stacked vessels – as of 3/31/15) MENA 45(18%) Asia/Pac 26(10%) SS Africa/Europe Americas 117(45%) 70(27%) GHS 100 Energy Conference 10
Slide 11: A New Fleet that Services All Water Depths
A New Fleet that Services All Water Depths (Excludes stacked vessels – as of 3/31/15) Americas Vessels New Avg. Traditional MENA New Vessels Avg. Traditional NBV Vessels NBV Vessels Deepwater 13 $17.3M 1 Deepwater 36 20.5M 0 Towing Supply 29 $11.8M 0 Towing Supply 19 $10.5M 3 Other 0 0 2 Other 8 $3.
Slide 12: Strong Customer Base
Strong Customer Base Current Revenue Mix Others 33% Super Majors 34% Approximately 60% of our revenue is derived from drilling support activity and 40% from NOC's non-drilling related activity, such 33% as support of production and construction activity Our top 10 customers in Fiscal 2015 (4 Super M
Slide 13: The Largest Modern OSV Fleet in the Industry
The Largest Modern OSV Fleet in the Industry Vessel Commitments Average Cost Jan. ’00 – March ’15* Vessel Count (2) Total Cost (2) per Vessel Deepwater PSVs 100 $2,845m $28.5m Deepwater AHTSs 12 $387m $32.3m Towing Supply/Supply 108 $1,608m $14.9m Other 53 $227m $4.3m TOTALS: 273 $5,067m(1) $18.6m (
Slide 14: The Remainder of our Construction Backlog
The Remainder of our Construction Backlog Vessels Under Construction As of March 31, 2015 (adjusted for subsequent amendments*) Count Deepwater PSVs 15 Deepwater AHTSs - Towing Supply/Supply 3 Other 1 Total 19 Estimated delivery schedule – 12 in FY ’16, 7 in FY ‘17. CAPX of $263m in FY ‘16 and $63m
Slide 15: CAPX is Decreasing from Recent High Levels
CAPX is Decreasing from Recent High Levels $1,000 $800 Amounts in Fiscal 2016 and 2017 represent known CAPX on Annual CAPX (in $millions) only the 19 vessels under construction as of 5/31/15. $600 $400 $200 $0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Fiscal 2014 is exclusive of Tr
Slide 16: Solid Balance Sheet and Financial Flexibility
Solid Balance Sheet and Financial Flexibility Our Financial Position Provides Us Strategic Optionality As of March 31, 2015 Cash & Cash Equivalents $79 million Total Debt $1,534 million Shareholders Equity $2,501 million Net Debt / Net Capitalization 37% Total Debt / Capitalization 38% ~$660 million
Slide 17: Debt Maturities and Covenants
Debt Maturities and Covenants as of 3/31/15 Maturities Limited for Several Years $800 Debt Covenants: 1) Debt/Total Capitalization Ratio of not greater than 55% 2) EBITDA/Interest coverage of not less than 3.0X Debt Maturity (in $millions) $600 $400 $200 $0 2016 2017 2018 2019 2020 2021 2022 2023 20
Slide 18: Return Capital to Shareholders
Return Capital to Shareholders Consistent Dividends and Opportunistic Share Repurchases (in millions) Dividends Share Repurchases $400 $350 $300 ~4.0% Current Dividend Yield $250 $200 $150 $100 $50 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Fiscal Years During
Slide 19: Tidewater's New Subsea Business
Tidewater’s New Subsea Business Eight work-class ROV’s in current fleet Commercial operations underway with additional opportunities in Americas, SSAE and Asia/Pac ROV capabilities generating potential for OSV pull through GHS 100 Energy Conference 19
Slide 20: Tidewater's Strategy
Tidewater’s Strategy Continue to improve upon stellar safety and compliance programs Stay close to our customers Monitor industry developments to adjust our playbook accordingly - Cost reduction initiatives - Maintain/protect liquidity Maintain solid balance sheet and financial flexibility to deal w
Slide 21: www.tdw.com
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 www.tdw.com
Slide 22: The Upgrading of the Tidewater Fleet
The Upgrading of the Tidewater Fleet (A 10 Year Review) 3/31/05 Snapshot 3/31/15* Snapshot Deepwater PSV New Vintage Total Current Future Vintage DWT Fleet Fleet Fleet DWT New Fleet CIP Fleet Fleet 5,000-6,000 0 0 0 5,000-6,000 16 5 21 0 4,000-4,999 4 0 4 4,000-4,999 17 9 26 0 3,000-3,999 12 2 14 3,
Slide 23: 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 Fiscal Year Over a 16-year period, Tidewater has invested ~$5.5 billion in CapEx, a
Slide 24: History of Solid Earnings and Returns on a Through-Cycle Basis
History of Solid Earnings and Returns on a Through-Cycle Basis Adjusted EPS** $7.89 $8.00 $5.94 $6.39 Adjusted EPS ** $6.00 $5.20 $4.00 $3.33 $3.69 $3.33 $3.03 $1.78 $2.40 $2.13 $2.00 $1.03 $0.00 Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal 2004 2005 2006 2007
Slide 25: Active Vessel Dayrates & Utilization by Segment
Active Vessel Dayrates & Utilization by Segment Americas Asia/Pac MENA Sub Sah Africa/Eur. $26,000 Avg. Dayrate $22,000 $18,000 $14,000 $10,000 $6,000 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 100% Avg. Utilization 90% 80% 70% 60% 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 Utilization stats exclude stack
Slide 26: 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 Q4 Fiscal 2015 Avg Day Rate: $27,703 Utilization: 80.8% $50,000 200 $40,000 160 $30,000 120 80 81 $20,000 73 75 76 76 77 80 66 69 62 54 55 57 45 47 49 51 40 43 44 $10,000 3
Slide 27: 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 Q4 Fiscal 2015 Avg Day Rate: $30,710 Utilization: 84.7% $50,000 200 $40,000 160 $30,000 120 $20,000 80 $10,000 40 5 5 5 5 5 5 5 5 6 8 9 9 11 11 11 11 11 11 11 11 11 11 11 1
Slide 28: 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 Q4 Fiscal 2015 Avg Day Rate: $14,764 Utilization: 71.7% $20,000 200 $15,000 150 103 103 104 105 105 105 105 104 99 101 101102 103 $10,000 93 100 88 83 85 78 8
Slide 29: Total Revenue and Margin
Total Revenue and Margin Fiscal 2008-2015 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% $400 45.0% 44.1% 45.2% 43.1% 44.4% 43.0% 42.0% 41.0% 40.8% 39.0% 38.0% 36.9% $300 $300 million Milli
Slide 30: Historical Vessel Cash Operating Margins
Historical Vessel Cash Operating Margins Vessel Cash Operating Margin ($) Vessel Cash Operating Margin (%) $200 70% $175 60% $150 50% $125 40% $100 30% $75 $50 20% $25 10% $0 0% Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4 FY 2009