Tidewater Inc. · NYSE:TDW
Tidewater — Credit Suisse 2011 Energy Summit
35 slides from Tidewater's conference presentation, Feb 14, 2011
Slide 1: Credit Suisse 2011 Energy Summit
CREDIT SUISSE 2011 ENERGY SUMMIT February 8, 2011 Quinn P. Fanning Joseph M. Bennett Exhibit 99.1 CREDIT SUISSE 2011 ENERGY SUMMIT February 8, 2011 Quinn P. Fanning Executive Vice President and Executive Vice President and Chief Financial Officer Chief Financial Officer Joseph M. Bennett Executive V
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Phone: 504.568.1010 Fax: 504.566.4580 Web: www.tdw.com Email: connect@tdw.com 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
Slide 3: Key Takeaways
KEY TAKEAWAYS Culture of safety & operating excellence History of earnings growth and solid returns World’s largest and newest fleet provides basis for continued earnings growth Strong balance sheet allows us to act upon available opportunities
Slide 4: Safety – A Top Priority
SAFETY – A TOP PRIORITY SM SAFETY – A TOP PRIORITY
Slide 5: Safety Record Rivals Leading Companies
0.00 0.25 0.50 0.75 1.00 Total Recordable Incident Rates Calendar Years 2002 2003 2004 2005 2006 2007 2008 2009 TIDEWATER DUPONT DOW CHEMICAL EXXON MOBIL SAFETY RECORD RIVALS LEADING COMPANIES SAFETY RECORD RIVALS LEADING COMPANIES
Slide 6: Significant Earnings Growth
32% Six-Year Compounded Annual Earnings Growth Rate ** 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
Slide 7: Where Could Fiscal 2014 Find Us?
Avg. Dayrates $14,561* $16,017 (+ 10%) $17,619 (+ 10%) 85.8%* 85.0% 90.0% 273 vessels assumes (191 current new vessels + 37 under construction + ~ 20 additional new vessels per year for two and a quarter years). WHERE COULD FISCAL 2014 FIND US? Potential for Earnings Acceleration * 12/31/10 nine mon
Slide 8: International Strength
Unique global footprint; 50+ years of Int’l experience Unmatched scale and scope of operations International market opportunities Growth Longer contracts Better utilization Higher dayrates Solid customer base of NOC’s and IOC’s INTERNATIONAL STRENGTH • • • • INTERNATIONAL STRENGTH
Slide 9: Tidewater
TIDEWATER
Slide 10: Vessel Population by Owner
VESSEL POPULATION BY OWNER (Includes AHTS and PSV’s only) Estimated as of Mid-January 2011 Source: ODS-Petrodata and Tidewater Tidewater Competitor #2 Competitor #3 Competitor #4 Competitor # 5 Competitor #1 Avg. All Others (1,867 total vessels for 350+ owners) 5 64 67 72 106 132 280 0 100 200 300 4
Slide 11: Current Revenue Mix: Quality of Customer Base
NOC's 24% Others 35% Super Majors 41% Our top 10 customers in Fiscal 2010 (6 Super Majors, 3 NOC’s and one large independent) accounted for 63% of our revenue CURRENT REVENUE MIX Quality of Customer Base CURRENT REVENUE MIX Quality of Customer Base
Slide 12: The Worldwide Fleet - Retirements Expected to Exceed New Deliveries
0 50 100 150 200 250 300 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 THE WORLDWIDE FLEET - RETIREMENTS EXPECTED TO EXCEED NEW DELIVERIES (Includes AHTS and PSV’s only) Estimated as of Mid-January2011 Source: ODS-Petrodata and Tidewater As of mid-January 2011, there are approximately 387 additi
Slide 13: The Largest Modern Fleet in the Industry
Vessel Count Estimated Cost AHTS 99 $1,735m PSV’s 82 $1,651m Crewboats & Tugs 67 $290m TOTALS: 248 $3,676m (1) (1) $3,190m (87%) funded through 12/31/10 THE LARGEST MODERN FLEET IN THE INDUSTRY… Vessel Commitments Jan. ’00 – December ‘10 . THE LARGEST MODERN FLEET IN THE INDUSTRY… At 12/31/10, 191 n
Slide 14: Vessel Deliveries
0 5 10 15 20 25 30 35 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Built Acquired VESSEL DELIVERIES Fiscal Year Fiscal years 2011-2013 include actual deliveries through 12/31/10 and estimated deliveries of vessels committed to build or acquire as of 12/31/10 At 12/31/10, total 24
Slide 15: …And Our Lead Is Growing
Count AHTS 18 PSV 18 Crew and Tug 1 Total 37 Vessels Under Construction* As of December 31, 2010 … AND OUR LEAD IS GROWING Estimated delivery schedule – 4 in remainder of FY ‘11, 24 in FY ‘12 and 9 thereafter CAPX of $130m in remainder of FY ‘11, $303m in FY ‘12 and $53m in FY ‘13 … AND OUR LEAD IS
Slide 16: Significant Average Age Improvement
SIGNIFICANT AVERAGE AGE IMPROVEMENT Assumptions: 1) Average 45 vessel disposals per year in future (averaged 47 per year last three years). 2) Includes 37 vessels under construction (including eleven purchase commitments) in year delivered plus additional newbuilds/acquisitions from approximately $5
Slide 17: Recent Vessel Commitments
RECENT VESSEL COMMITMENTS Amounts depict vessel count and total cost in quarter commitment was made to acquire (not when delivery or payments were made) 39 vessels over six quarters with total capital cost of $718 million RECENT VESSEL COMMITMENTS 1 MPSV 1 PSV 4 AHTS 6 AHTS 6 AHTS 3 PSV’s 4 PSV’s 4
Slide 18: New Private Placement Financing
Senior Unsecured Notes $425 million Average Life to Maturity ~ 9 years Weighted Average Coupon 4.25% Closing Dates $310 million 10/15/10 $115 million 12/30/10 NEW PRIVATE PLACEMENT FINANCING NEW PRIVATE PLACEMENT FINANCING
Slide 19: New Credit Facilities
Term Loan* $125 million Revolving Line of Credit $450 million Term Five years Interest Rate Prime plus 0.5 to 1.25%, or Eurodollar plus 1.5 to 2.25% NEW CREDIT FACILITIES * NEW CREDIT FACILITIES Term loan allows for multiple draws for up to 180 days from 1/27/11.
Slide 20: A Strong Balance Sheet and Ready Liquidity
A STRONG BALANCE SHEET AND READY LIQUIDITY Cash & Cash Equivalents $308 million Total Debt $700 million Shareholders Equity $2,506 million Net Debt / Net Capitalization 14% Total Debt / Capitalization 22% A STRONG BALANCE SHEET AND READY LIQUIDITY December 31, 2010 info: Pro forma liquidity as of 12
Slide 21: Selected Financial Highlights
Nine Months Ended 12/31/10 12/31/09 Revenues $801 $909 Adjusted Net Earnings* $102 $216 Adjusted EPS* $1.99 $4.21 Net Cash from Operations $218 $299 Capital Expenditures $509 $304 * Adjusted Net Earnings and Adjusted EPS for the nine months ended 12/31/10 exclude an after-tax $4.35 million, or $0.09
Slide 22: Primary Uses of Cash
Over an 11-year period, Tidewater invested $3.2 billion in CAPX ($2.8 billion in the “new” fleet), and paid out $923 million through dividends and share repurchases. Over the same period, CFFO and proceeds from dispositions were $3.1 billion and $640 million, respectively PRIMARY USES OF CASH PRIMAR
Slide 23: Financial Strategy Focused on Creating Long-Term Shareholder Value
Maintain Financial Strength EVA-Based Investments On Through-cycle Basis Deliver Results FINANCIAL STRATEGY FOCUSED ON CREATING LONG-TERM SHAREHOLDER VALUE FINANCIAL STRATEGY FOCUSED ON CREATING LONG-TERM SHAREHOLDER VALUE
Slide 24: Credit Suisse 2011 Energy Summit
CREDIT SUISSE 2011 ENERGY SUMMIT February 8, 2011 Quinn P. Fanning Joseph M. Bennett CREDIT SUISSE 2011 ENERGY SUMMIT February 8, 2011 Quinn P. Fanning Executive Vice President and Executive Vice President and Chief Financial Officer Chief Financial Officer Joseph M. Bennett Executive Vice President
Slide 25: Appendix
Appendix Appendix
Slide 26: Recent Accomplishments
RECENT ACCOMPLISHMENTS First full fiscal year without a lost time accident (FY 2010) Respectable earnings & returns in a trough (tough) market Selected acquisitions of choice assets Disciplined disposal of traditional equipment Delivery of 45 new vessels over last two full fiscal years Balance sheet
Slide 27: Continually Acquiring New and Disposing of Mature Vessels
0 100 200 300 400 500 Active Fleet Dispositions CONTINUALLY ACQUIRING NEW AND DISPOSING OF MATURE VESSELS (As of 12/31/10) 314 (B) 539 (C) 228 New Vessels (A) 434 Sold 105 Scrapped (A) Net new vessels added to the fleet since January 2000, including 37 vessels under construction at 12/31/10. This ne
Slide 28: Fleet Cash Operating Margins
FLEET CASH OPERATING MARGINS Note: Cash operating margins are defined as vessel revenue less vessel operating expenses $0 $100 $200 $300 $400 $500 $600 $700 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Fiscal Years 50% 40% 30% 20% 10% 60% Total Fleet Operating Margin % New Vessels Traditio
Slide 29: International Vessels Dayrates and Utilization
12/07 6/08 12/08 6/09 12/09 6/10 12/10 * Dayrate and utilization information is for all classes of vessels operating international INTERNATIONAL VESSELS Dayrates and Utilization $100 change in dayrate = ~$8.1M in annual revenue 1% change in utilization = ~$15.5M in annual revenue 50% 60% 70% 80% 90%
Slide 30: International Vessel Dayrates
INTERNATIONAL VESSEL DAYRATES * Dayrate and utilization information is for all classes of vessels operating international $3,000 $5,000 $7,000 $9,000 $11,000 $13,000 $15,000 $17,000 $19,000 12/07 06/08 12/08 06/09 12/09 06/10 12/10 INTERNATIONAL VESSEL DAYRATES Traditional Vessels New Vessels
Slide 31: Domestic Vessels Dayrates and Utilization
12/07 6/08 12/08 6/09 12/09 6/10 12/10 DOMESTIC VESSELS Dayrates and Utilization * Dayrate and utilization information is for all classes of vessels operating in the U.S. 30% 40% 50% 60% 70% 80% 90% Utilization $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 Dayrate DOMESTIC VESSELS Day
Slide 32: Domestic Vessel Dayrates
DOMESTIC VESSEL DAYRATES * Dayrate and utilization information is for all classes of vessels operating in the U.S. $3,000 $5,000 $7,000 $9,000 $11,000 $13,000 $15,000 $17,000 $19,000 $21,000 $23,000 12/07 06/08 12/08 06/09 12/09 06/10 12/10 DOMESTIC VESSEL DAYRATES Traditional Vessels New Vessels
Slide 33: Working Rig Counts
Source: ODS-Petrodata and Tidewater WORKING RIG COUNTS “ Peak to Present ” Jackups Semis Drillships Total June 2008 (Peak) 379 145 30 554 Late-April 2010 (pre-Horizon) 323 150 46 519 Mid-Jan. 2011 (post-Horizon) 305 143 38 486 WORKING RIG COUNTS “ Peak to Present ” GOM accounts for of the working ja
Slide 34: Rigs Contracted by Our Top 10 Customers
Other Operators Top 10 Customers Jackups (305 Working Rigs) Floater Rigs (181 Working Rigs) 66 239 89 RIGS CONTRACTED BY OUR TOP 10 CUSTOMERS (Estimated as of Mid-January 2011) Source: ODS-Petrodata and Tidewater Other Operators Top 10 customers 92 Tidewater’s top 10 customers contract nearly 22% of
Slide 35: Returns vs the Market: Five Year Stockholder Return
-50% 0% 50% 100% 150% 200% Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 TDW DJIA S&P500 OSX RETURNS vs the MARKET FIVE YEAR STOCKHOLDER RETURN OSX 52% S&P 500 9% DJIA 16% TDW 36% RETURNS vs the MARKET FIVE YEAR STOCKHOLDER RETURN