Tidewater Inc. · NYSE:TDW
Tidewater — UBS Global Oil and Gas Conference 2010
36 slides from Tidewater's conference presentation, Jun 4, 2010
Slide 1: UBS Global Oil and Gas Conference May 27, 2010
UBS Global Oil and Gas Conference May 27, 2010 DEAN E. TAYLOR Chairman, President and CEO JOSEPH M. BENNETT Executive Vice President and Chief Investor Relations Officer EXHIBIT 99.1
Slide 2: 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 historical informatio
Slide 3: Key Takeaways
History of earnings growth and solid returns World’s largest and newest fleet provides basis for continued earnings growth Strong balance sheet 3 Key Takeaways
Slide 4: Moperating wala of te
4, Moperating wala of te a TIDEWATER “i eee mish et ltista tate cant be! turned, loose not fora microsecond) Ogeh ceident, Will strike without,pity.
Slide 5: Many Safety Challenges (Weather, Security, etc.)
5 Many Safety Challenges (Weather, Security, etc.)
Slide 6: Damon B. Bankston: An Example of our Safety Culture
6 Damon B. Bankston An Example of our Safety Culture
Slide 7: Significant Earnings Growth
7 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 aft
Slide 8: The Largest Modern Fleet in the Industry
Vessel Count Estimated Cost AHTS 80 $1,426m PSV’s 74 $1,449m Crewboats & Tugs 67 $289m TOTALS: (1) 221 $3,164m (2) (1) Includes vessels added to the fleet financed by leases. (2) $2,704m (85%) funded through 3/31/10. 8 At 3/31/10, 170 new vessels in fleet with ~5 year average age The Largest Modern
Slide 9: And our Lead is Growing: Vessels Under Construction
Count AHTS 18 PSV 16 Crew and Tug 2 Total 36 9 * Includes five new vessels committed to purchase as of 3/31/10 Estimated delivery schedule – 21 in FY ‘11, 13 in FY ‘12 and 2 thereafter. CAPX of $334m in FY ‘11, $135m in FY ‘12 and $1m in FY ‘13 Vessels Under Construction* As of March 31, 2010 … And
Slide 10: Vessel Population By Owner
10 Source: ODS-Petrodata and Tidewater Tidewater Competitor #2 Competitor #3 Competitor #4 Competitor # 5 Competitor #1 Avg. All Others (1,774 total vessels for 300+ owners) 280 108 106 71 63 60 5 Vessel Population By Owner (Includes AHTS and PSV’s only) Estimated as of Late-April 2010
Slide 11: Significant Average Age Improvement
0 5 10 15 20 3/31/06 3/31/07 3/31/08 12/31/08 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 11 Assumptions: 1) Average 45 vessel disposals per year in future (averaged 47 per year last three years). 2) Includes 36 vessels under construction (including five purchase commitments) in year delivered plus
Slide 12: Where Could Fiscal 2014 Find Us? Potential for Earnings Acceleration
Avg. Dayrates $15,705* $17,276 (+ 10%) $19,003 (+ 10%) 83.1%* 85.0% 90.0% 266 Vessel count assumption (170 current new vessels + 36 under construction + 20 additional new vessels per year for three years). * 3/31/10 quarter actual stats This info is not meant to be a prediction of future earnings pe
Slide 13: 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 13 International Strength
Slide 14: Our Global Footprint: Boots on the Ground
14 Our Global Footprint “Boots on the Ground”
Slide 15: Vessel Distribution by Region
15 North America 20 (7%) Central/South America 69 (23%) Europe / M.E. 32 (11%) Far East 42 (14%) International / U.S. 2010: 93% / 7% 2000: 62% / 38% West Africa 131 (45%) Vessel Distribution by Re g ion (Excludes stacked vessels – as of 3/31/10)
Slide 16: 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 16 OSX 52% S&P 500 9% DJIA 16% TDW 36% Returns vs. the Market Five Year Stockholder Return
Slide 17: A Strong Balance Sheet and Ready Liquidity
March 2010 March 2009 Cash $223 $251 Stockholders’ Equity $2,464 $2,245 Long-term Debt $275 $300 Net Debt to Total Cap 2.1% 2.1% 17 ~ $675 million of Available Liquidity at 3/31/10 (Cash plus $450m Revolver) A Strong Balance Sheet and Ready Liquidity ($ in Millions)
Slide 18: Selected Financial Highlights
Year Ended 3/31/10 3/31/09 Revenues $1,169 $1,391 Adjusted Net Earnings* $279 $407 Adjusted EPS* $5.41 $7.89 Net Cash from Operations $328 $526 Capital Expenditures $452 $474 * Adjusted Net Earnings and Adjusted EPS for the year ended 3/31/10 excludes $44.6 million, or $0.87 per share, related to pr
Slide 19: What Tidewater has to offer Investors
19 History of earnings growth and solid returns World’s largest and newest fleet provides basis for continued earnings growth Strong balance sheet What Tidewater has to offer Investors
Slide 20: Financial Strategy
Maintain Financial Strength Deploy Capital Deliver Results Focused on Long Term Shareholder Value 20 Financial Strategy
Slide 21: UBS Global Oil and Gas Conference May 27, 2010
UBS Global Oil and Gas Conference May 27, 2010 DEAN E. TAYLOR Chairman, President and CEO JOSEPH M. BENNETT Executive Vice President and Chief Investor Relations Officer
Slide 22: Appendix
22 Appendix
Slide 23: Safety Record Rivals Leading Companies
0.00 0.25 0.50 0.75 1.00 TIDEWATER DOW CHEMICAL DUPONT EXXON MOBIL BP 23 Total Recordable Incident Rates 2002 2003 2004 2005 2006 2007 Calendar Years 2008 Safety Record Rivals Leading Companies
Slide 24: Continually Acquiring New and Disposing of Mature Vessels
0 100 200 300 400 500 Active Fleet Dispositions 24 330 (B) 502 (C) 206 New Vessels (A) 411 Sold 91 Scrapped (A) Net new vessels added to the fleet since January 2000, including 36 vessels under construction at 3/31/10. This new vessel total excludes 15 new vessels that were acquired, then disposed (
Slide 25: Fleet Cash Operating Margins
25 Note: Cash operating margins are defined as vessel revenue less vessel operating expenses. 50% 40% 30% 20% 10% 60% Total Fleet Operating Margin % New Vessels Traditional Vessels 38.6% 37.6% 46.5% 41.9% 36.9% 38.7% 49.1% 54.6% 51.9% 51.3% 46.8% $0 $100 $200 $300 $400 $500 $600 $700 2000 2001 2002
Slide 26: Quality of Customer Base: Current Revenue Mix
NOC's 24% Others 35% Super Majors 41% 26 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
Slide 27: Our Significant Uses of Cash
27 Over this eleven year period, TDW invested $3.2 billion in CAPX ($2.8 billion in our new fleet), and paid out $407 million in dividends and $516 million through share repurchases. $0 $100 $200 $300 $400 $500 $600 $700 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 CAPX Dividend Share Repu
Slide 28: Has Our Industry Bottomed Yet?
Global Economies Improving Credit Markets Healthier Oil & Gas Demand Rising Oil & Gas Prices at Comfortable Level E&P Spending +11% for 2010 Offshore Rig Count – Jackups Recovering; Floaters Stronger 28 Has Our Industry Bottomed Yet?
Slide 29: International Vessels Dayrates and Utilization
3/07 9/07 3/08 9/08 3/09 9/09 3/10 * Dayrate and utilization information is for all classes of vessels operating international. 29 $100 change in dayrate = $7.8M in revenue 1% change in utilization = $15.4M in revenue 50% 60% 70% 80% 90% Utilization $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 Dayra
Slide 30: International Vessels Dayrates
30 * 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 03/07 09/07 03/08 09/08 03/09 09/09 03/10 International Vessels Dayrates Traditional Vessels New Vessels
Slide 31: Domestic Vessels Dayrates and Utilization
31 * Dayrate and utilization information is for all classes of vessels operating in the U.S. 3/07 9/07 3/08 9/08 3/09 9/09 3/10 Domestic Vessels Dayrates and Utilization 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
Slide 32: Domestic Vessels Dayrates
32 * 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 03/07 09/07 03/08 09/08 03/09 09/09 03/10 Domestic Vessels Dayrates Traditional Vessels New Vessels
Slide 33: Recent Accomplishments
No lost time accidents since August 2008 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 fiscal years Balance Sheet still solid Strategy working – Poised to seize o
Slide 34: 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 34 Source: ODS-Petrodata and Tidewater As of late-April 2010, there are approximately 456 additional AHTS and PSV’s (~18.5% of the global fleet) under construction. Global fleet estimated at 2,462 vessels, including 366 vesse
Slide 35: Working Rig Counts: Peak to Present
Source: ODS-Petrodata and Tidewater 35 GOM accounts for 21 of the 56 working jackup count variance Jackups Semi Drillships Total June 2008 379 145 30 554 Late-April 2010 323 150 46 519 Variance (56) 5 16 (35) Working Rig Counts “ Peak to Present ”
Slide 36: Rigs Contracted By Our Top Customers
36 Working for TDW Top 10 customers Working for other customers Working for TDW Top 10 customers Working for other customers Our top 10 customers are operating nearly 22% of world jackups and 46% of floater fleet. Jackups (323 Working Rigs) Floater Rigs (196 Working Rigs) 69 254 91 105 Ri g s Contra