Tidewater Inc. · NYSE:TDW
Tidewater — Johnson Rice Energy Conference 2014
31 slides from Tidewater's conference presentation, Oct 6, 2014
Slide 1: Johnson Rice Energy Conference
Johnson Rice Energy Conference October 1, 2014 Jeffrey M. Platt President & CEO Joseph M. Bennett EVP & Chief IRO Exhibit 99.1
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Phone: 504.568.1010 | Fax: 504.566.4580 Web site address: www.tdw.com Email: connect@tdw.com TIDEWATER 601 Poydras Street, Suite 1500, New Orleans, LA 70130 In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Company n
Slide 3: Key Tidewater Takeaways
• Consistent goal of “Best in Class” safety and compliance culture • History of earnings growth and solid returns • Largest “NEW” OSV fleet in the industry, operating in over • Continued solid financial position, with considerable ready liquidity, a reasonable debt level, minor debt maturities until
Slide 4: Safety Record Rivals Leading Companies
Operating safely offshore is like holding a snake by its head. It's a task that can't be turned loose not for a microsecond or an accident will strike without pity. Safety Record Rivals Leading Companies • Safe Operations is Priority #1 • Stop Work Obligation • Safety performance is 25% of mgt. ince
Slide 5: Working Offshore Rig Trends
Source: ODS-Petrodata Note: 43 “Other” rigs, along with the Jackups and Floaters, provide a total working rig count of 705 in September 2014. Prior peak (summer 2008) Jackups Floaters Working Offshore Rig Trends
Slide 6: Drivers of our Business "Peak to Present"
July 2008 (Peak) Jan. 2011 (Trough) September 2014 Working Rigs 603 538 705 Rigs Under Construction 186 118 244 OSV Global Population 2,033 2,599 3,223 OSV’s Under Construction 736 367 455 OSV/Rig Ratio 3.37 4.83 4.57 Source: ODS-Petrodata and Tidewater Drivers of our Business “Peak to Present” Work
Slide 7: The Worldwide OSV Fleet
Vessels > 25 years old today Source: ODS-Petrodata and Tidewater As of September 2014, there are approximately 455 additional AHTS and PSV’s (~14% of the global fleet) under construction. Global fleet is estimated at 3,223 vessels, including ~700 vessels that are 25+ yrs old (25%). The Worldwide OSV
Slide 8: Tidewater's Active Fleet
Year Built Deepwater vessels Towing Supply/Supply Other vessels 244 “New” vessels – 6.9 avg yrs 21 “Traditional” vessels – 26.7 avg yrs Tidewater’s Active Fleet As of June 30, 2014
Slide 9: Vessel Population by Owner
Source: ODS-Petrodata and Tidewater Tidewater Competitor #2 Competitor #3 Competitor #4 Competitor # 5 Competitor #1 Avg. All Others (2,473 total vessels for 400+ owners) Vessel Population by Owner (AHTS and PSVs only) Estimated as of September 2014
Slide 10: Our Global Footprint – Vessel Count by Region
Americas 69(26%) SS Africa/Europe 128(48%) Asia/Pac 24(9%) MENA 44(17%) Our Global Footprint – Vessel Count by Region (Excludes stacked vessels – as of 6/30/14 )
Slide 11: Our Global Footprint – Vessel Class by Region
Johnson Rice Energy Conference Americas SSAE MENA Asia/Pac Vessel count info is as of 6/30/14, and includes leased vessels. Avg NBV excludes the impact of leased vessels which have no NBV. Average NBV of the total 21 Traditional vessels is $0.97M at 6/30/14. Our Global Footprint – Vessel Class by Re
Slide 12: The Largest Modern OSV Fleet in the Industry
Vessel Count (2) Total Cost (2) Average Cost per Vessel Deepwater PSVs 102 $2,906m $28.5m Deepwater AHTSs 12 $387m $32.3m Towing Supply/Supply 111 $1,670m $15.0m Other 53 $227m $4.3m TOTALS: 278 $5,190m (1) $18.7m (1) ~$4.5b (87%) funded through 6/30/14 (2) Vessel count and total cost is net of 26 v
Slide 13: Vessels Under Construction
Count Deepwater PSVs 26 Deepwater AHTSs - Towing Supply/Supply 6 Other 1 Total 33 Estimated delivery schedule – 13 in FY ’15, 17 in FY ‘16 and 3 thereafter. CAPX of $391m in FY ’15, $244m in FY ‘16 and $50m thereafter. Vessels Under Construction* As of June 30, 2014 …and More to Come
Slide 14: The Upgrading of the Tidewater Fleet (A 10 Year Review)
Current Future Vintage DWT CIP Fleet Fleet Current Future Vintage BHP New Fleet CIP Fleet Fleet Current Future Vintage BHP CIP Fleet Fleet New Vintage Total DWT Fleet Fleet Fleet New Vintage Total BHP Fleet Fleet Fleet New Vintage Total BHP Fleet Fleet Fleet The Upgrading of the Tidewater Fleet (A 1
Slide 15: CAPX Expected to Decrease from Recent High Levels
CAPX Expected to Decrease from Recent High Levels Fiscal Year Fiscal 2014 is exclusive of Troms acquisition $0 $200 $400 $600 $800 $1,000 Amounts in Fiscal 2015-2017 represent known CAPX on only the 33 vessels and 2 ROVs under construction as of 6/30/14. Additional CAPX could occur, but trendline is
Slide 16: Strong Financial Position Provides Strategic Optionality
Cash & Cash Equivalents $53 million Total Debt $1,511 million Shareholders Equity $2,717 million Net Debt / Net Capitalization 35% Total Debt / Capitalization 36% As of June 30, ~$650 million of available liquidity as of 6/30/14, including $600 million of unused capacity under the company’s revolvin
Slide 17: Debt Maturities Limited for Several Years
Debt Maturities as of 6/30/14 Limited for Several Years Fiscal Year
Slide 18: Earnings per Share
** 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 of after tax gains from the sale of 14 offshore tugs. EPS in
Slide 19: Active Vessel Dayrates & Utilization by Segment
Impact of $7.4 million of retroactive revenue recorded in September 2012 quarter is excluded from 9/12 average dayrates and included in the respective March 2012 and June 2012 quarterly average dayrates. Utilization stats exclude stacked vessels. Active Vessel Dayrates & Utilization by Segment $6,00
Slide 20: New Vessel Trends by Vessel Type: Deepwater PSVs
$185 million, or 49%, of Vessel Revenue in Q1 Fiscal 2015 New Vessel Trends by Vessel Type Deepwater PSVs $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 Average Day Rate
Slide 21: New Vessel Trends by Vessel Type: Towing Supply/Supply Vessels
Q1 Fiscal 2015 Avg Day Rate: $15,519 Utilization: 84.9% $126 million, or 33%, of Vessel Revenue in Q1 Fiscal 2015 New Vessel Trends by Vessel Type Towing Supply/Supply Vessels $0 $5,000 $10,000 $15,000 $20,000 $25,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 22: Tidewater's New Subsea Business
• Six work-class ROV’s in current fleet and two more on order • Commercial operations underway with additional opportunities in Americas, SSAE and Asia/Pac • ROV capabilities generating potential for OSV pull through Tidewater’s New Subsea Business
Slide 23: Tidewater's Future
• Continue to improve upon stellar safety and compliance programs • Maintain solid balance sheet and financial flexibility to deal with • Disciplined deployment of cash as we complete our OSV fleet • Return capital to shareholders through dividends and Tidewater’s Future replacement and enhancement
Slide 24: Johnson Rice Energy Conference
Johnson Rice Energy Conference October 1, 2014 Jeffrey M. Platt President & CEO Joseph M. Bennett EVP & Chief IRO
Slide 25: Of risewarer
Of risewarer ROMS POLLUK
Slide 26: 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 Deliver Results Financial Strategy Focused on Creating Long-Term Shareholder Value
Slide 27: Fleet Renewal & Expansion Largely Funded by CFFO
Over a 15-year period, Tidewater has invested ~$5.2 billion in CapEx, and paid out ~$1.3 billion through dividends and share repurchases. Over the same period, CFFO and proceeds from dispositions were ~$3.9 billion and ~$800 million, respectively. $ in millions CFFO Fiscal Year Fleet Renewal & Expan
Slide 28: Total Revenue and Margin Fiscal 2008-2015
Note: Vessel operating margin is defined as vessel revenue less vessel operating expenses Prior peak period (FY2009) averaged quarterly revenue of $339M, quarter operating margin of $175.6M at 51.8% $300 million $150 million 50.0% Total Revenue and Margin Fiscal 2008-2015 $- $100 $300 $400 $500 Q1 Q
Slide 29: Cyclical Upturn should Drive Margin Expansion
Vessel Cash Operating Margin ($) Vessel Cash Operating Margin (%) $164 million Vessel Margin in Q1 FY2015 (99% from New Vessels) Q1 FY2015 Vessel Margin: 43% Cyclical Upturn should Drive Margin Expansion $0 $25 $50 $75 $100 $125 $150 $175 $200 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY14 New Traditi
Slide 30: New Vessel Trends by Vessel Type: Deepwater AHTS
$31 million, or 8%, of Vessel Revenue in Q1 Fiscal 2015 New Vessel Trends by Vessel Type Deepwater AHTS $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 Average Day Rate,
Slide 31: Our top customers
Our top 10 customers in Fiscal 2014 (4 Super Majors, 4 NOC’s, 1 IOC’s and 1 independent) accounted for 62% of our revenue Current Revenue Mix Quality of Customer Base Super Majors 37% NOC's 22% Others 41%