Tidewater Inc. · NYSE:TDW
Tidewater — Howard Weil 37th Annual Energy Conference 2009
38 slides from Tidewater's conference presentation, Mar 25, 2009
Slide 1: Howard Weil 37th Annual Energy Conference
Dean E. Taylor Chairman, President & CEO Quinn P. Fanning Executive VP, CFO Joseph M. Bennett Executive VP & Chief Investor Relations Officer Howard Weil 37 Annual Energy Conference March 24, 2009 EXHIBIT 99.1 TIDEWATER Dean E. Taylor Chairman, President & CEO Quinn P. Fanning Executive VP, CFO Jose
Slide 2: Forward-Looking Statements
2 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 information and are forward looking. The actual achievement of any forecasted results, or th
Slide 3: Safety Record Rivals Leading Companies
3 0.00 0.25 0.50 0.75 1.00 2001 2002 2003 2004 2005 2006 Calendar Years 2007 TIDEWATER DOW CHEMICAL DUPONT EXXON/MOBIL BP SAFETY RECORD RIVALS SAFETY RECORD RIVALS LEADING COMPANIES LEADING COMPANIES Total Recordable Incident Rates
Slide 4: Tidewater Today
4 Solid safety record Unmatched global footprint Strong balance sheet Entire fleet earning solid returns Continuing to invest in new vessels Disciplined investment and capital management TIDEWATER TODAY TIDEWATER TODAY
Slide 5: Tidewater Tomorrow
5 Younger fleet with expanded capabilities Increased international presence Well positioned to generate solid returns through oilfield cycle Disciplined, EVA-based investments TIDEWATER TOMORROW TIDEWATER TOMORROW
Slide 6: Our Strategy
6 Maintain maximum financial flexibility to deal with uncertainties Selectively deploy cash to renew fleet with expanded capabilities React to current & future business environments to provide solid profits and cash flow Right acquisitions, right price, right time Opportunistically utilize balance s
Slide 7: Many Unanswered Questions at This Time
7 How will the current financial crisis impact our industry? What will oil and gas prices do? How sensitive is hydrocarbon demand to commodity prices? New Administration’s philosophy regarding hydrocarbons? Where is E&P spending headed? How will global economic concerns impact vendors (i.e., shipyar
Slide 8: TDW's Financial Stability During Trying Times
8 Cash on the balance sheet Low debt Undrawn revolving credit facility Manageable new construction backlog Solid customer base (large exposure to NOC ’ s and IOC’s) Good contract coverage TDW’s FINANCIAL STABILITY TDW’s FINANCIAL STABILITY DURING TRYING TIMES DURING TRYING TIMES
Slide 9: Strong Balance Sheet
9 $300 $300 Long-term Debt* $1,930 $2,144 Stockholders’ Equity 1.5% 4.4% Net Debt* to Total Cap $270 $202 Cash March 2008 December 2008 (in Millions) Further Proof of Our Discipline and Sound Business Strategy Approx. $502m of Available Liquidity at 12/31/08 (Cash plus $300m Revolver) * Excludes $10
Slide 10: Selected Financial Highlights
10 (in Thousands, Except Per Share Data) Nine Months Ended $4.76 $5.76 Earnings Per Share $263,378 $297,172 Net Earnings $353,076 $368,506 Net Cash from Operations $291,709 $368,706 Capital Expenditures $938,743 $1,049,218 Revenues 12/31/07 12/31/08 12/31/08 quarterly EPS of $2.28 was highest in com
Slide 11: Returning Value to Shareholders
11 Current repurchase authority of $200 MM Since 8/05, have repurchased 9.5 MM shares for $516.2 MM Recent dividend declaration increased from $.15/share/quarter to $.25/share/quarter One of eight OSX companies paying dividends Current 2.8% yield (highest among OSX companies) RETURNING VALUE RETURNI
Slide 12: Vessel Population by Owner
12 Tidewater Competitor #1 Competitor #2 Competitor #3 Competitor #4 Avg. All Others (1,483 total vessels for 300+ owners) Competitor # 5 290 87 64 5 74 72 66 VESSEL POPULATION VESSEL POPULATION BY OWNER BY OWNER (Includes AHTS and PSV’s only) (Includes AHTS and PSV’s only) Source: ODS-Petrodata and
Slide 13: Global Vessel Fleet by Age
13 0 20 40 60 80 100 120 140 160 180 200 1965 1970 1975 1980 1985 1990 1995 2000 2005 Of the total 2,136 vessels, 300 vessels are 30+ yrs old , GLOBAL VESSEL GLOBAL VESSEL FLEET BY AGE FLEET BY AGE Source: ODS-Petrodata and Tidewater (Includes AHTS and PSV’s only) Estimated as of December 200 8 As o
Slide 14: Vessel / Rig Ratio
2,136 Global Vessel Count (AHTS & PSV only) 602 Global Working Rigs 3.5 Vessel to Rig Ratio 175 New rigs under construction 14 Current Vessel Demand Dynamics: Possible Incremental Vessel Demand: (???Cancellations???) VESSEL / RIG RATIO VESSEL / RIG RATIO Source: ODS-Petrodata and Tidewater Estimated
Slide 15: Working Rig Counts
Jackups Semi Drillships June 2008 379 145 30 March 2009 342 154 35 Variance (37) 9 5 15 GOM accounts for 32 of the 37 working jackup count variance WORKING RIG COUNTS WORKING RIG COUNTS GOM accounts for 32 of the 37 working jackup count variance Source: ODS-Petrodata and Tidewater
Slide 16: International Strength
16 Unique global footprint; 50+ years of Int’l experience YTD FY ‘09, Int’l was 88.5% of revenues & 91% of profits 54 of current newbuilds in Int’l yards Longer contracts, better utilization, higher dayrates for new & traditional vessels operating in Int’l markets Solid customer base of NOC’s and IO
Slide 17: Current Revenue Mix
NOC's 23% Others 37% Super Majors 40% 17 Our top 10 customers (5 Super Majors, 4 NOC’s and one large independent) currently account for 60% of our revenue CURRENT REVENUE MIX CURRENT REVENUE MIX Quality of Customer Base Quality of Customer Base Our top 10 customers (5 Super Majors, 4 NOC’s and one l
Slide 18: International Strength: Tidewater Today
18 Active Vessel Count By Region (excludes stacked vessels) North America 31 (9%) Central/South America 101 (28%) West Africa 139 (39%) Far East 51 (14%) Europe/M.E. 36 (10%) 91% International 9% Domestic (vs. 65% International and 35% Domestic ten years ago) North America 31 (9%) Central/South Amer
Slide 19: Rigs Contracted by Our Top 10 Customers
19 * PEMEX alone has 31 of the 94 jackups Jackups Semi Drillships March 2009 working rigs 342 154 35 Working for top 10 customers 94 * 76 18 RIGS CONTRACTED BY RIGS CONTRACTED BY OUR TOP 10 CUSTOMERS OUR TOP 10 CUSTOMERS * PEMEX alone has 31 of the 94 jackups Source: ODS-Petrodata and Tidewater 27%
Slide 20: Growing Industry's Largest New Fleet
20 Ability to support continued fleet renewal and growth (Fiscal 2008 CapEx of $354 MM and Fiscal 2009 YTD of $369 MM), although cautious given current banking environment Current environment may present opportunities to utilize our financial strength Funding with internal cash flow and available cr
Slide 21: Largest New Fleet in the Industry
21 Vessel Commitments Jan. ’00 – Dec. ‘0 8 $1,355m 72 PSV’s $2,889m (2) 203 TOTALS: (1) $275m 65 Crewboats & Tugs $1,259m 66 AHTS Estimated Cost Vessel Count At 12/31/08, 132 new vessels in fleet with 4.6 year average age (1) Includes vessels added to the fleet financed by bareboat charter. (2) $2,1
Slide 22: Vessels Under Construction
22 Building vessels worldwide Due diligence focused on yards Tidewater staff supervise on site Vessels Under Construction As of December 31, 2008 56 Total 27 PSV 8 Crew and Tug 21 AHTS Count Estimated delivery schedule – 11 in FY ’09, 25 in FY ’10 and 20 thereafter. CAPX of $134m remaining in FY’09,
Slide 23: Improving Average Age of Tidewater Fleet
23 Assumptions: 1) Average 45 vessel disposals per year in future (averaged 47 per year last three years). 2) Include 56 vessels under construction in year delivered plus additional newbuilds/acquisitions from approximately $500 million per year of future commitments. Tidewater is not committed to s
Slide 24: Fleet Cash Operating Margins
$0 $100 $200 $300 $400 $500 $600 $700 2000 2001 2002 2003 2004 2005 2006 2007 2008 Fiscal Years 24 New Vessels Traditional Vessels Note: Cash operating margins are defined as vessel revenue less vessel operating expenses. FLEET CASH FLEET CASH OPERATING MARGINS OPERATING MARGINS 60% 50% 40% 30% 20%
Slide 25: Financial Strategy
25 Renew Fleet Maintain Financial Strength Deliver Results FINANCIAL STRATEGY FINANCIAL STRATEGY Renew Fleet Maintain Financial Strength Deliver Results Focused on Long Term Shareholder Value Focused on Long Term Shareholder Value
Slide 26: Howard Weil 37th Annual Energy Conference
Dean E. Taylor Chairman, President & CEO Quinn P. Fanning Executive VP, CFO Joseph M. Bennett Executive VP & Chief Investor Relations Officer March 24, 2009 Howard Weil 37 Annual Energy Conference th Dean E. Taylor Chairman, President & CEO Quinn P. Fanning Executive VP, CFO Joseph M. Bennett Execut
Slide 27: Appendix
APPENDIX APPENDIX
Slide 28: Significant Earnings Growth
28 ** 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. $0.
Slide 29: International Vessels Dayrates Growth
0% 10% 20% 30% 40% 50% 60% 70% 80% Fiscal 2005 Fiscal 2006 Fiscal 2007 Fiscal 2008 29 Growth Total Dayrate Growth from FY‘04 +71%, New vessels +81%, Traditional vessels +44% INTERNATIONAL VESSELS INTERNATIONAL VESSELS DAYRATES DAYRATES Growth Total Dayrate Growth from FY‘04 +71%, New vessels +81%, T
Slide 30: International Vessels Dayrates and Utilization
12/05 3/06 6/06 9/06 12/06 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 30 $100 change in dayrate = $10.1M in revenue 1% change in utilization = $16.3M in revenue * Dayrate and utilization information is for all classes of vessels operating international. 40% 50% 60% 70% 80% 90% $4,000 $5,000 $6,000 $7
Slide 31: International Vessels Dayrates
31 * Dayrate 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 12/05 3/06 6/06 9/06 12/06 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 Traditional Vessels New Vessels INTERNATIONAL VESSELS INTERNATIONAL VESSELS DAYRATES DAYRAT
Slide 32: Domestic Vessel Dayrates
0% 20% 40% 60% 80% 100% 120% 140% Fiscal 2005 Fiscal 2006 Fiscal 2007 Fiscal 2008 32 Total Growth Percentag e From FY’04 through FY’08 Total Growth 136% DOMESTIC VESSEL DOMESTIC VESSEL DAYRATES DAYRATES Total Growth Percentag e From FY’04 through FY’08 Total Growth 136%
Slide 33: Domestic Vessels Dayrates and Utilization
33 * Dayrate and utilization information is for all classes of vessels operating in the U.S. 12/05 3/06 6/06 9/06 12/06 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 DOMESTIC VESSELS DOMESTIC VESSELS Dayrates and Utilization Dayrates and Utilization 40% 50% 60% 70% 80% 90% $4,000 $6,000 $8,000 $10,000 $
Slide 34: Domestic Vessel Dayrates
$3,000 $5,000 $7,000 $9,000 $11,000 $13,000 $15,000 $17,000 12/05 3/06 6/06 9/06 12/06 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 34 * Dayrate information is for all classes of vessels operating in the U.S. Traditional Vessels New Vessels DOMESTIC VESSEL DOMESTIC VESSEL DAYRATES DAYRATES
Slide 35: Superior Operating Capabilities Drive Our Competitive Advantage
35 – Safety-oriented culture – Deep knowledge of customer needs – Worldwide market presence (over 60 countries) – Long-term relationships with major operators (Over 200 customers) – Most new vessels in industry – Wide range of equipment types – “Lean” operations and overhead – Aggressive constructio
Slide 36: Vessel Acquisition Alternatives
36 Usually one-off purchases, often to match specific client needs Immediate delivery Entry price at “full” market rate Built to Tidewater quality standards 18 + months to delivery Potential shipyard backlog Contract terms (e.g., fixed price, LDs, etc.) Resource requirements to oversee construction
Slide 37: Considerations in Designing Our Optimal Vessel Mix
37 Custom/ Specialized Standardized Small Ultra big Renew existing Expand to niche markets Drilling, production Subsea, maintenance, LNG etc. Cycle timers Invest across cycle *Arrows are illustrative of Tidewater’s current views; they should not be interpreted as excluding other points on the contin
Slide 38: Largest New Fleet in the Industry
38 * Net vessels added to the fleet since January 2000, including 56 vessels under construction at 12/31/08. * Since 4/01/05, 37 vessels have been scrapped and 141 have been sold. * Total fleet count excludes 51 stacked vessels as of 12/31/08. Out With the Old – In With the New 414 427 188 New Vesse
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