Tidewater Inc. · NYSE:TDW
Tidewater — RBC Capital Markets 2009 Global Energy & Power Conference
30 slides from Tidewater's conference presentation, Jun 2, 2009
Slide 1: RBC Capital Markets 2009 Global Energy & Power Conference
Quinn P. Fanning Executive VP, CFO RBC Capital Markets 2009 Global Energy & Power Conference June 1, 2009 Exhibit 99.1 TIDEWATER Quinn P. Fanning Executive VP, CFO RBC Capital Markets 2009 Global Energy & Power Conference
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: Tidewater Today
3 Solid safety record Unmatched (and growing) global footprint Entire fleet earning solid returns Strong balance sheet Continuing to invest in new vessels with expanded capabilities Track record of prudent capital management and of returning capital to shareholders TIDEWATER TODAY TIDEWATER TODAY
Slide 4: Many Unanswered Questions at This Time
4 Impacts of current financial crisis and global recession Rig and vessel construction backlogs Financial health of shipyards and competitors Future oil and gas prices E&P spending Obama administration’s approach to energy and tax policy Vessel utilization and pricing MANY UNANSWERED MANY UNANSWERED
Slide 5: Our Strategy (Not much has changed!)
5 Culture is a competitive advantage Safety-oriented Deep knowledge of customer needs Aggressive management of operating and capital costs Maintain maximum financial flexibility to deal with uncertainties Selectively deploy cash to renew fleet with expanded capabilities Opportunistically utilize bal
Slide 6: Safety Record Rivals Leading Companies
6 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 7: International Strength
7 Active Vessel Count By Region (excludes stacked vessels) North America 25 (7%) (7%) Central/South America 98 (28%) (28%) West Africa 137 (39%) (39%) Far East 51 (15%) (15%) Europe/M.E. 37 (11%) (11%) 93% International 7% Domestic (vs. 65% International and 35% Domestic ten years ago) North America
Slide 8: Current Revenue Mix: Quality of Customer Base
NOC's 23% Others 37% Super Majors 40% 8 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 la
Slide 9: Rigs Contracted by Our Top 10 Customers
9 * PEMEX alone has 31 of the 94 jackups Jackups Semi Drillships March 2009 working rigs 338 154 36 Working for top 10 customers 94 * 76 20 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 28% 4
Slide 10: Significant Earnings Growth
$0.00 $2.00 $4.00 $6.00 $8.00 Fiscal 2004 Fiscal 2005 Fiscal 2006 Fiscal 2007 Fiscal 2008 Fiscal 2009 10 ** EPS in Fiscal 2004 is exclusive of the $.30 per share after tax impairment charge. EPS in Fiscal 2006 is exclusive of the $.74 per share after tax gain from the sale of six KMAR vessels. EPS i
Slide 11: Selected Financial Highlights
11 ($ in Thousands, Except Per Share Data) Years Ended $6.39 $7.89 Earnings Per Share $348,763 $406,898 Net Earnings $489,491 $526,435 Net Cash from Operations $354,022 $473,675 Capital Expenditures $1,270,171 $1,390,835 Revenues 3/31/08 3/31/09 12/31/08 quarterly EPS and 3/31/09 quarterly EPS were
Slide 12: Strong Balance Sheet
12 $300 $300 Long-term Debt* $1,930 $2,245 Stockholders’ Equity 1.5% 2.1% Net Debt* to Total Cap $270 $251 Cash March 2008 March 2009 ($ in Millions) + $500 million of Available Liquidity at 3/31/09 (Cash plus $300m Revolver) * Excludes $10.1 million at March 31, 2008, of total capitalized lease obl
Slide 13: Growing Industry's Largest New Fleet
13 Ability to support continued fleet renewal and growth Current environment may present opportunities to utilize our financial strength Funding with internal cash flow and available credit Always weigh build vs. buy criteria Making progress with fleet average age Strive for a Balance Between Perfor
Slide 14: Largest New Fleet in the Industry
14 Vessel Commitments Jan. ’00 – March ‘0 9 $1,355m 72 PSV’s $2,889m (2) 207 TOTALS: (1) $275m 65 Crewboats & Tugs $1,259m 70 AHTS Estimated Cost Vessel Count At 3/31/09, 142 new vessels in fleet with 5.2 year average age (1) Includes vessels added to the fleet financed by bareboat charter. (2) $2,2
Slide 15: ...And Counting: Vessels Under Construction
15 Building vessels worldwide Due diligence focused on yards Tidewater staff supervise on site Vessels Under Construction As of March 31, 2009 46 Total 25 PSV 5 Crew and Tug 16 AHTS Count Estimated delivery schedule – 26 in FY’ 10, 7 in FY’ 11, 11 in FY’ 12 and 2 thereafter. CAPX of $327m in FY’ 10,
Slide 16: Fleet Cash Operating Margins
$0 $100 $200 $300 $400 $500 $600 $700 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Fiscal Years 16 New Vessels Traditional Vessels Note: Cash operating margins are defined as vessel revenue less vessel operating expenses. 38.6% 37.6% 46.5% 41.9% 38.7% 49.1% 54.6% 51.9% FLEET CASH FLEET CASH OPE
Slide 17: Improving Average Age of Tidewater Fleet
17 Assumptions: 1) Average 45 vessel disposals per year in future (averaged 47 per year last three years). 2) Include 46 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 18: Returning Value to Shareholders
18 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 2.3% yield (highest among OSX companies) RETURNING VALUE RETURNI
Slide 19: Vessel Population by Owner
19 Tidewater Competitor #1 Competitor #2 Competitor #3 Competitor #4 Avg. All Others (1,535 total vessels for 300+ owners) Competitor # 5 291 91 63 5 78 74 63 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 20: Global Vessel Fleet by Age
20 0 20 40 60 80 100 120 140 160 180 200 1965 1970 1975 1980 1985 1990 1995 2000 2005 Of the total 2,195 vessels, 344 vessels are 30+ yrs old , 94 GLOBAL VESSEL GLOBAL VESSEL FLEET BY AGE FLEET BY AGE Source: ODS-Petrodata and Tidewater (Includes AHTS and PSV’s only) Estimated as of March 200 9 As o
Slide 21: Vessel / Rig Ratio
21 2,195 Global Vessel Count (AHTS & PSV only) 579 Global Working Rigs 3.8 Vessel to Rig Ratio 169 New rigs under construction VESSEL / RIG RATIO VESSEL / RIG RATIO Source: ODS-Petrodata and Tidewater Estimated as of March 200 9 Current Vessel Demand Dynamics: Possible Incremental Vessel Demand: (??
Slide 22: Working Rig Counts
Jackups Semi Drillships June 2008 379 145 30 March 2009 338 154 36 Variance (41) 9 6 22 GOM accounts for 32 of the 41 working jackup count variance WORKING RIG COUNTS WORKING RIG COUNTS GOM accounts for 32 of the 41 working jackup count variance Source: ODS-Petrodata and Tidewater
Slide 23: Financial Strategy
23 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 24: Quinn P. Fanning, Executive VP, CFO
June 1, 2009 Quinn P. Fanning Executive VP, CFO RBC Capital Markets 2009 Global Energy & Power Conference TIDEWATER Quinn P. Fanning Executive VP, CFO RBC Capital Markets 2009 Global Energy & Power Conference
Slide 25: Appendix
APPENDIX APPENDIX
Slide 26: International Vessels Dayrates and Utilization
3/06 6/06 9/06 12/06 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 3/09 26 $100 change in dayrate = $10.1M in revenue 1% change in utilization = $16.9M 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 27: International Vessels Dayrates
27 * 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 3/06 6/06 9/06 12/06 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 3/09 Traditional Vessels New Vessels INTERNATIONAL VESSELS INTERNATIONAL VESSELS DAYRATES DAYRATE
Slide 28: Domestic Vessels Dayrates and Utilization
3/06 6/06 9/06 12/06 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 3/09 28 * Dayrate and utilization information is for all classes of vessels operating in the U.S. 40% 50% 60% 70% 80% 90% $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 DOMESTIC VESSELS DOMESTIC VESSELS Dayrates and Utilization Dayrates an
Slide 29: Domestic Vessel Dayrates
$3,000 $5,000 $7,000 $9,000 $11,000 $13,000 $15,000 $17,000 3/06 6/06 9/06 12/06 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 3/09 29 * Dayrate information is for all classes of vessels operating in the U.S. Traditional Vessels New Vessels DOMESTIC VESSEL DOMESTIC VESSEL DAYRATES DAYRATES
Slide 30: Largest New Fleet in the Industry: Out With the Old, In With the New
0 100 200 300 400 500 Active Fleet Dispositions 30 Net vessels added to the fleet since January 2000, including 46 vessels under construction at 3/31/09. * Since 4/01/05, 38 vessels have been scrapped and 147 have been sold. * Total fleet count excludes 61 stacked vessels as of 3/31/09. Out With the
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