Tidewater Inc. · NYSE:TDW
Tidewater — 2012 Global Hunter Securities 100 Energy Conference
29 slides from Tidewater's conference presentation, Jul 2, 2012
Slide 1: 2012 Global Hunter Securities 100 Energy Conference
Executive Vice President and Chief Investor Relations Officer June 26, 2012 2012 Global Hunter Securities 100 Energy Conference Joseph M. Bennett Joseph M. Bennett Executive Vice President and Chief Investor Relations Officer June 26, 2012 2012 Global Hunter Securities 100 Energy Conference Exhibit
Slide 2: Forward-Looking Statements
2 FORWARD-LOOKING STATEMENTS 2 Phone: 504.568.1010 • Fax: 504.566.4580 • Email: connect@tdw.com Web: www.tdw.com 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
Slide 3: Key Takeaways
3 KEY TAKEAWAYS KEY TAKEAWAYS KEY TAKEAWAYS • Culture of safety & operating excellence • Macro picture improving – stable oil prices, increased E&P spending, improving rig count • History of earnings growth and solid returns • Unmatched scale and scope of operations • World’s largest and newest flee
Slide 4: Safety Record Rivals Leading Companies
4 SAFETY RECORD RIVALS LEADING COMPANIES SAFETY RECORD RIVALS LEADING COMPANIES SAFETY RECORD RIVALS LEADING COMPANIES 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 2002 2003 2004 2005 2006 2007 2008 2009 2010 CALENDAR YEARS TOTAL RECORDABLE INCIDENT RATES TIDEWATER DOW CHEMICAL CHEVRON EXXON/MOBIL
Slide 5: Drivers of Our Business: Peak to Present
5 Source: ODS-Petrodata and Tidewater June 2008 (Peak) Jan. 2011 May 2012 Working Rigs 603 538 611 Rigs Under Construction 186 118 188 OSV Global Population 2,033 2,599 2,756 OSV’s Under Construction 736 367 404 OSV/Rig Ratio 3.37 4.83 4.51 DRIVERS OF OUR BUSINESS “Peak to Present” DRIVERS OF OUR BU
Slide 6: The Worldwide OSV Fleet – Retirements Expected to Exceed New Deliveries
6 Source: ODS-Petrodata and Tidewater Vessels > 25 years old today THE WORLDWIDE OSV FLEET – RETIREMENTS EXPECTED TO EXCEED NEW DELIVERIES (Includes AHTS and PSV’s only) Estimated as of May 2012 As of May 2012, there are approximately 404 additional AHTS and PSV’s (~15% of the global fleet) under co
Slide 7: Vessel Population by Owner
7 VESSEL POPULATION BY OWNER (AHTS and PSV’s only) – Estimated as of May 2012 Source: ODS-Petrodata and Tidewater VESSEL POPULATION BY OWNER (AHTS and PSV’s only) – Estimated as of May 2012 Tidewater Competitor #2 Competitor #3 Competitor #4 Competitor # 5 Competitor #1 Avg. All Others (1,993 total
Slide 8: History of Earnings Growth and Solid Through-Cycle Returns
HISTORY OF EARNINGS GROWTH AND SOLID THROUGH-CYCLE RETURNS 8 ** EPS in Fiscal 2004 is exclusive of the $.30 per share after tax impairment charge. EPS in Fiscal 2006 is exclusive of the $.74 per share after tax gain from the sale of six KMAR vessels. EPS in Fiscal 2007 is exclusive of $.37 per share
Slide 9: Our Global Footprint
OUR GLOBAL FOOTPRINT Vessel Distribution by Region (excludes stacked vessels – as of 3/31/12) Americas 63(24%) SS Africa/Europe 132(50%) MENA 35(13%) Asia/Pac 33(13%) 9 OUR GLOBAL FOOTPRINT Vessel Distribution by Region (excludes stacked vessels – as of 3/31/12) OUR GLOBAL FOOTPRINT Vessel Distribut
Slide 10: The Largest Modern OSV Fleet in the Industry
10 Vessel Count Estimated Cost AHTS 101 $1,765m PSV’s 91 $1,934m Crewboats & Tugs 71 $301m TOTALS: 263 $4,000m (1) (1) $3,640m (91%) funded through 3/31/12 THE LARGEST MODERN OSV FLEET IN THE INDUSTRY…. . At 3/31/12, 215 new vessels were in our fleet with ~5.7 year average age Vessel Commitments Jan
Slide 11: ...And More to Come
11 Count AHTS 2 PSV 18 Crew and Tug 5 Total 25 Estimated delivery schedule – 13 in FY ‘13, 10 in FY ‘14 and 2 thereafter. CAPX of $220m in FY ‘13, $95m in FY ‘14 and $44m in FY ’15. …. AND MORE TO COME Vessels Under Construction * As of March 31, 2012 * Includes new vessel purchase commitments at 3/
Slide 12: Through-Cycle, EVA-Based Investment; Balance Between Buy and Build
THROUGH-CYCLE, EVA-BASED INVESTMENT; BALANCE BETWEEN “BUY” and “BUILD” 12 Fiscal Year Actual vessel deliveries through 3/31/12; estimated vessel deliveries based on commitments to build or acquire as of 3/31/12 Through 3/31/12, vessel commitments include 263 vessels with a capital cost of $4.0 billi
Slide 13: Recent Vessel Commitments
13 RECENT VESSEL COMMITMENTS Amounts depict vessel count and total cost in quarter commitment was made to acquire (not when delivery or payments were made) RECENT VESSEL COMMITMENTS RECENT VESSEL COMMITMENTS $96M $55M $72M $179M 1 MPSV 1 PSV 4 AHTS 6 AHTS 6 AHTS 3 PSV’s 54 vessels over last 2+ years
Slide 14: Fleet Renewal & Expansion Funded by CFFO Through Fiscal 2012
14 FLEET RENEWAL & EXPANSION FUNDED BY CFFO THROUGH FISCAL 2012 Over a 13-year period, Tidewater has invested $4.1 billion in CapEx($3.6 billion in the “new” fleet), and paid out ~$1 billion through dividends and share repurchases. Over the same period, CFFO and proceeds from dispositions were $3.6
Slide 15: Recent Financings Will Fund Growth at an Attractive Relative Cost
15 Senior Unsecured Notes $590 million Average Life to Maturity (as of 3/31/12) ~ 7.9 years Weighted Average Coupon 4.30% Term Loan $125 million* Revolving Line of Credit $450 million Remaining Term ~ 3.8 years Interest Rate LIBOR plus 1.5% to 2.25%, based on leverage RECENT FINANCINGS WILL FUND GRO
Slide 16: Strong Financial Position Provides Additional Strategic Optionality
16 Cash & Cash Equivalents $321 million Total Debt $950 million Shareholders Equity $2,526 million Net Debt / Net Capitalization 20% Total Debt / Capitalization 27% STRONG FINANCIAL POSITION PROVIDES ADDITIONAL STRATEGIC OPTIONALITY As of March 31, 2012 ~$770 million of pro forma liquidity as of 3/3
Slide 17: Where Could Fiscal 2014 Find Us?
17 WHERE COULD FISCAL 2014 FIND US? Potential for Earnings Acceleration 260 vessel assumption (215 current new vessels + 25 under construction + 20 additional new vessels next year). ~$9.50 EPS ~$5.50 EPS ~$3.40 EPS 17 WHERE COULD FISCAL 2014 FIND US? Potential for Earnings Acceleration WHERE COULD
Slide 18: Financial Strategy Focused on Creating Long-Term Shareholder Value
18 FINANCIAL STRATEGY FOCUSED ON CREATING LONG-TERM SHAREHOLDER VALUE FINANCIAL STRATEGY FOCUSED ON CREATING LONG-TERM SHAREHOLDER VALUE Maintain Maintain Financial Strength Financial Strength EVA-Based Investments EVA-Based Investments On Through-cycle Basis On Through-cycle Basis Deliver Results D
Slide 19: Joseph M. Bennett, Chief Investor Relations Officer
Executive Vice President and Chief Investor Relations Officer June 26, 2012 2012 Global Hunter Securities 100 Energy Conference Joseph M. Bennett Joseph M. Bennett Executive Vice President and Chief Investor Relations Officer June 26, 2012 2012 Global Hunter Securities 100 Energy Conference
Slide 20: Appendix
20 APPENDIX APPENDIX APPENDIX
Slide 21: New Fleet Driving Results
21 NEW FLEET DRIVING RESULTS NEW FLEET DRIVING RESULTS NEW FLEET DRIVING RESULTS Vessel Revenue ($) Average Fleet Count Average New Vessels in Q4 2012 $288 million Vessel Revenue in Q4 2012 (88% from New Vessels) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY 2009 FY 2010 FY 2011 FY 2012 New Tra
Slide 22: Cyclical Upturn Should Drive Margin Expansion
22 CYCLICAL UPTURN SHOULD DRIVE MARGIN EXPANSION Vessel Cash Operating Margin ($) Vessel Cash Operating Margin (%) $120 million Vessel Margin in Q4 2012 (91% from New Vessels) Q4 2012 Vessel Margin: 41% CYCLICAL UPTURN SHOULD DRIVE MARGIN EXPANSION Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY
Slide 23: Current Revenue Mix: Quality of Customer Base
CURRENT REVENUE MIX Quality of Customer Base 23 CURRENT REVENUE MIX Quality of Customer Base CURRENT REVENUE MIX Quality of Customer Base Our top 10 customers in Fiscal 2012 (4 Super Majors, 3 NOC’s and 3 IOC’s) accounted for 59% of our revenue Super Majors 35% NOC's 23% Others 42%
Slide 24: Rigs Contracted by Our Top 10 Customers
24 Source: ODS-Petrodata and Tidewater RIGS CONTRACTED BY OUR TOP 10 CUSTOMERS (Estimated as of May 2012) Other Operators Top 10 Customers Tidewater’s top 10 customers contract ~19% of the working worldwide jackup fleet and ~50% of the working worldwide floater fleet Jackups (334 Working Rigs ) Floa
Slide 25: Fleet Cash Operating Margins
25 FLEET CASH OPERATING MARGINS Note: Cash operating margins are defined as vessel revenue less vessel operating expenses FLEET CASH OPERATING MARGINS FLEET CASH OPERATING MARGINS Traditional Vessels New Vessels 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%
Slide 26: Recent Financial Results Reflect Cyclical Downturn
26 Twelve Months Ended 3/31/12 3/31/11 Revenues $1,067 $1,055 Net Earnings* $110 $123 EPS* $2.13 $2.40 Net Cash from Operations $222 $264 Capital Expenditures $357 $615 *Fiscal 2012 excludes $22.1 million, or $0.43 per share, goodwill impairment charge in September 2011. Fiscal 2011 excludes an afte
Slide 27: Significant Average Age Improvement
27 SIGNIFICANT AVERAGE AGE IMPROVEMENT SIGNIFICANT AVERAGE AGE IMPROVEMENT SIGNIFICANT AVERAGE AGE IMPROVEMENT 12/31/11 12/31/12 12/31/13 12/31/14 3/31/06 3/31/07 3/31/08 12/31/08 12/31/09 12/31/10 1) Average 45 vessel disposals per year in future (versus an average of 50+ vessel dispositions per ye
Slide 28: Vessel Utilization by Segment
28 VESSEL UTILIZATION BY SEGMENT VESSEL UTILIZATION BY SEGMENT VESSEL UTILIZATION BY SEGMENT 30% 40% 50% 60% 70% 80% 90% Americas Asia/Pac MENA Sub Sah Africa
Slide 29: Vessel Dayrates by Segment
VESSEL DAYRATES BY SEGMENT 29 VESSEL DAYRATES BY SEGMENT VESSEL DAYRATES BY SEGMENT
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