Tidewater Inc. · NYSE:TDW
Tidewater — UBS Global Oil & Gas Conference 2019
27 slides from Tidewater's conference presentation, May 24, 2019
Slide 1: Company Overview
Company Overview UBS Global Oil & Gas Conference 2019 John Rynd President and Chief Executive Officer May 21, 2019
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS UBS Global Oil & Gas Conference 2019 | Tidewater Inc. In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Tidewater Inc. (the “Company”) notes that certain statements set forth in this Current Report on Form 8-K provide ot
Slide 3: Tidewater Overview
Tidewater Overview TDW $24.14 Market Cap $1 billion Based on 41 million shares and $0.001 warrants As of May 17, 2019 market close Founded 1955 Created the industry’s first Offshore Support Vessel Cash & Equiv $400 million Net Debt $39 million Vessel Fleet 241 Distributed across the globe, supportin
Slide 4: Peer Market Cap & Price Comparison
Peer Market Cap & Price Comparison Source: FactSet, NYSE, Oslo Bors and Company filings as of May 20, 2019 Note: Tidewater market cap based on common stock + Jones Act Warrants for total share count of 41.5 million Net Capitalization Equity Market Cap UBS Global Oil & Gas Conference 2019 | Tidewater
Slide 5: The Largest OSV Owner Globally
Source: IHS Petrodata, Tidewater, company disclosures Vessel Count (AHTS & PSVs) as of March 31, 2019 All Others (~2,400 total vessels for 500+ owners) 241 Total Fleet Incl. All Vessel Types 214 OSVs The Largest OSV Owner Globally UBS Global Oil & Gas Conference 2019 | Tidewater Inc. Tidewater 2019
Slide 6: The Most Geographically-Diverse OSV Operator
UBS Global Oil & Gas Conference 2019 | Tidewater Inc. Note: Figures represent Tidewater active vessel fleet at March 31, 2019 Headquarters Area Operations Deepwater Towing/Supply Other The Most Geographically-Diverse OSV Operator Avg. Active Fleet Age 9.6 Years Active Fleet 170 Vessels Utilization 8
Slide 7: High-Spec OSV Rates are Rising
High-Spec OSV Rates are Rising UBS Global Oil & Gas Conference 2019 | Tidewater Inc. Source: Clarksons Platou Offshore, Tidewater
Slide 8: The North Sea – More Activity & Demand Improvements
The North Sea – More Activity & Demand Improvements UBS Global Oil & Gas Conference 2019 | Tidewater Inc. Source: Clarksons Platou Securities Rigs Utilization North Sea PSV Utilization by Size April 2019 …as long as reactivations are limited this season North Sea Contracted Floating Rigs 2014 to 201
Slide 9: West African Rig Count Driving OSV Demand
West African Rig Count Driving OSV Demand UBS Global Oil & Gas Conference 2019 | Tidewater Inc. Rigs Utilization Vessels Source: Clarksons Platou Securities Active PSVs and Total Utilization 2014 to 2019 West Africa Rig Count by Type 2014 to 2019
Slide 10: Right-Sizing Our Fleet for Future Demand
Right-Sizing Our Fleet for Future Demand UBS Global Oil & Gas Conference 2019 | Tidewater Inc. OSV Demolitions & Removals PSV Utilization by Vessel Spec Category Source: Clarksons Platou Securities January 2019 Note: Tidewater Tier 1 vessels defined as higher-specification, recent vintage, marketabl
Slide 11: Vessel Reactivations Under Way for 2019
Vessel Reactivations Under Way for 2019 UBS Global Oil & Gas Conference 2019 | Tidewater Inc. Avg. Cost for Reactivation per Vessel $1.4 million Approx. Associated Backlog (excl. options) $110 million Approx. Term (excl. options) 26 vessel years 10
Slide 12: Improved Identification of Cost Synergies
Improved Identification of Cost Synergies Pro Forma G&A Profile 7 June 2018 Pro Forma G&A Profile Today UBS Global Oil & Gas Conference 2019 | Tidewater Inc. Integration progressing extremely well with run-rate annual G&A expected to now approximate $87 million by year end 2019 Target run-rate G&A n
Slide 13: Strategic Priorities
Strategic Priorities Leadership in safety, compliance and operational excellence Protect and preserve strong liquidity position Efficient and complete realization of merger cost and operational synergies Rationalization of fleet and cost structure to provide scope for margin expansion in the upturn
Slide 14: Why you should own Tidewater
Why you should own Tidewater A truly investable name in the offshore sector Operational Excellence Leading OSV Fleet Financial Strength An industry leader in safe operations The broadest operating footprint; leveraged to existing and developing markets Strong relationships with IOCs, NOCs and indepe
Slide 15: Tidewater
TIDEWATER Worldwide 600: x lite 600, Pr+t Houston, T. 713 4 INC. Headquarters rdale Road fexas 7072 USA 70 5300 NYSE
Slide 16: Appendix I – Reference
Appendix I – Reference
Slide 17: Safety Leadership Remains a First Priority
0.14 10 year average Safety Leadership Remains a First Priority Total Recordable Incident Rates 2007-2018 (per 200,000 Man Hours) TRIR = Sum of LTAs and Recordables x 200,000 divided by Man Hours Worked 0.0 1.0 0.5 0.0 1.0 0.5 0.12 2018 UBS Global Oil & Gas Conference 2019 | Tidewater Inc.
Slide 18: Vessel Utilization Trends Incrementally Improving
Vessel Utilization Trends Incrementally Improving Tidewater Fleet Utilization 2014 to 2019 YTD UBS Global Oil & Gas Conference 2019 | Tidewater Inc.
Slide 19: Vessel Average Day Rates Stable
Vessel Average Day Rates Stable UBS Global Oil & Gas Conference 2019 | Tidewater Inc. Average Day Rates by Vessel Class 2014 to Q1 2019 Notes: GulfMark fleet included as of Nov 15, 2018 Spike in Q1 2017 average deepwater rates due to lump sum early contract termination payment
Slide 20: Fleet Valuation
Fleet Valuation UBS Global Oil & Gas Conference 2019 | Tidewater Inc. Vessel Class Vessel Count NBV Average Age Avg NBV / Vessel (in millions) (years) (in millions) Deepwater vessels PSVs > 3,800 DWT 57 $ 540.7 7.8 $ 9.5 PSVs < 3,800 DWT 59 $ 253.7 11.2 $ 4.3 Deepwater AHTS 19 $ 65.3 11.2 $ 3.4 135
Slide 21: Oil Companies are Generating Record Cash Flow
Oil Companies are Generating Record Cash Flow UBS Global Oil & Gas Conference 2019 | Tidewater Inc. Top 30 E&P's with offshore output - FCF (pre & post dividends) vs capex* Source: Bloomberg, Clarksons Platou Securities AS *All metrics are trailing 12 months
Slide 22: Current Oil Prices are Still Economic for Offshore Projects
Current Oil Prices are (so far) Still Economic for Offshore Projects UBS Global Oil & Gas Conference 2019 | Tidewater Inc. Breakeven oil prices of discovered but undeveloped offshore resources Perspectives Nearly all offshore oil makes sense near current prices after fall in marginal production cost
Slide 23: Working Rig Count is Improving
Working Rig Count is Improving UBS Global Oil & Gas Conference 2019 | Tidewater Inc. Incremental OSV demand and utilization improvements will be driven by an increase in the working rig count Jackup utilization continues to gradually improve Floater utilization anticipated to improve through 2019 an
Slide 24: Jackup Utilization is Growing; Floaters Will Drive Deepwater OSV Demand
Jackup Utilization is Growing; Floaters Will Drive Deepwater OSV Demand UBS Global Oil & Gas Conference 2019 | Tidewater Inc. PSV demand growth vs. Rig count growth (YoY) Offshore rig count growth (YoY) Source: Clarksons Research Services Ltd., Clarksons Platou Securities AS Jackups are growing at ~
Slide 25: Large Percentage of Global Stacked Fleet Likely Uneconomic to Reactivate
A Large Percentage of the Global Stacked Fleet Likely Uneconomic to Reactivate UBS Global Oil & Gas Conference 2019 | Tidewater Inc. …modern, high-specification PSVs have seen the most reactivations 1,000 Est. global stacked fleet ~50% out of service for >3 years 400+ >15 years old and laid up >2 ye
Slide 26: Newbuild Orders Not Likely to Significantly Impact Supply
Newbuild Orders Not Likely to Significantly Impact Supply High-spec orderbook now only ~1% of the existing fleet 85% of remaining orderbook in India/China; a meaningful portion of these vessels may never enter active service On average ordered in Jan-14, more than 5 years ago; typical delivery time
Slide 27: OSV Second Hand Prices Appear to have Bottomed
OSV Second Hand Prices Appear to have Bottomed UBS Global Oil & Gas Conference 2019 | Tidewater Inc. Source: Clarksons Platou PSV Resale Prices as January 2019 PSV Newbuilding Prices as January 2019 …but transactions have been limited PSV Resale, Large, 1,000 m2 deck PSV Resale, Medium, 700 m2 deck