Slide 1: Jefferies 2011 Global Energy Conference
JEFFERIES 2011 GLOBAL ENERGY CONFERENCE Dec. 1, 2011 DEAN E. TAYLOR Chairman, President and CEO JOSEPH M. BENNETT Executive VP and Chief Investor Relations Officer Exhibit 99.1 JEFFERIES 2011 GLOBAL ENERGY CONFERENCE JEFFERIES 2011 GLOBAL ENERGY CONFERENCE Dec. 1, 2011 DEAN E. TAYLOR Chairman, Presi
Slide 2: Forward-Looking Statements
2 Phone: 504.568.1010 Fax: 504.566.4580 Web: www.tdw.com Email: connect@tdw.com FORWARD-LOOKING STATEMENTS 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 tha
Slide 3: Key Takeaways
3 KEY TAKEAWAYS KEY TAKEAWAYS KEY TAKEAWAYS • Culture of safety & operating excellence • Macro picture improving with increased working rigs • History of earnings growth and solid returns • Unmatched scale and scope of operations • World’s largest and newest fleet provides basis for continued earnin
Slide 4: Safety Remains a Top Priority
SAFETY REMAINS A TOP PRIORITY 4 SAFETY REMAINS A TOP PRIORITY SAFETY REMAINS A TOP PRIORITY
Slide 5: Safety Record Rivals Leading Companies
5 SAFETY RECORD RIVALS LEADING COMPANIES SAFETY RECORD RIVALS LEADING COMPANIES SAFETY RECORD RIVALS LEADING COMPANIES 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 2002 2003 2004 2005 2006 2007 2008 2009 2010 CALENDAR YEARS TOTAL RECORDABLE INCIDENT RATES TIDEWATER DOW CHEMICAL CHEVRON EXXON/MOBIL
Slide 6: Working Rig Counts: Peak to Present
6 Source: ODS-Petrodata and Tidewater Jackups Semis Drillships Total June 2008 (Peak) 379 145 30 554 Late-April 2010 (pre-Horizon) 323 150 46 519 Nov. 2011 (post-Horizon) 343 169 54 566 WORKING RIG COUNTS “Peak to Present” GOM accounts for of the working jackup count variance from June 2008 (Peak) t
Slide 7: Worldwide OSV Fleet – Retirements Expected to Exceed New Deliveries
7 Source: ODS-Petrodata and Tidewater Vessels > 25 years old today THE WORLDWIDE OSV FLEET – RETIREMENTS EXPECTED TO EXCEED NEW DELIVERIES (Includes AHTS and PSV’s only) Estimated as of November 2011 As of early-November 2011, there are approximately 447 additional AHTS and PSV’s (~17% of the global
Slide 8: History of Earnings Growth and Solid Through-Cycle Returns
8 HISTORY OF EARNINGS GROWTH AND SOLID THROUGH-CYCLE RETURNS Adjusted Return On Avg. Equity 4.3% 7.2% 12.4% 18.5% 18.3% 19.5% 11.4% 4.0% Adjusted EPS** Adjusted EPS** HISTORY OF EARNINGS GROWTH AND SOLID THROUGH-CYCLE RETURNS HISTORY OF EARNINGS GROWTH AND SOLID THROUGH-CYCLE RETURNS $2.40 $5.20 $7.
Slide 9: International Strength
9 INTERNATIONAL STRENGTH Unique global footprint 50+ years of Int’l experience International (non U.S.) markets generally characterized by: • More growth • Longer contracts • Better utilization • Higher dayrates Solid customer base of NOC’s and IOC’s INTERNATIONAL STRENGTH INTERNATIONAL STRENGTH
Slide 10: Our Global Footprint
10 OUR GLOBAL FOOTPRINT Vessel Distribution by Region (excludes stacked vessels – as of 9/30/11) Americas 66 (25%) SS Africa/Europe 125 (48%) Asia/Pac 32 (12%) MENA 37 (14%) OUR GLOBAL FOOTPRINT Vessel Distribution by Region (excludes stacked vessels – as of 9/30/11) OUR GLOBAL FOOTPRINT Vessel Dist
Slide 11: Vessel Population by Owner
11 VESSEL POPULATION BY OWNER (AHTS and PSV’s only) – Estimated as of November 2011 Source: ODS-Petrodata and Tidewater VESSEL POPULATION BY OWNER (AHTS and PSV’s only) – Estimated as of November 2011 Tidewater Competitor #2 Competitor #3 Competitor #4 Competitor # 5 Competitor #1 Avg. All Others (1
Slide 12: The Largest Modern OSV Fleet in the Industry
12 Vessel Count Estimated Cost AHTS 103 $1,805m PSV’s 88 $1,842m Crewboats & Tugs 71 $301m TOTALS: 262 $3,948m (1) (1) $3,446m (87%) funded through 9/30/11 THE LARGEST MODERN OSV FLEET IN THE INDUSTRY…. . At 9/30/11, 201 new vessels were in our fleet with ~5.2 year average age Vessel Commitments Jan
Slide 13: ...And More to Come: Vessels Under Construction
13 Count AHTS 16 PSV 19 Crew and Tug 5 Total 40 Estimated delivery schedule – 20 in FY ‘12, 13 in FY ‘13 and 7 thereafter. CAPX of $306m in remainder of FY ‘12, $164m in FY ‘13 and $32m in FY ’14. …. AND MORE TO COME Vessels Under Construction* As of September 30, 2011 * Includes 12 new vessel purch
Slide 14: Through-Cycle, EVA-Based Investment; Balance Between Buy and Build
14 THROUGH-CYCLE, EVA-BASED INVESTMENT; BALANCE BETWEEN “BUY” and “BUILD” Fiscal Year Actual vessel deliveries through 9/30/11; estimated vessel deliveries based on commitments to build or acquire as of 9/30/11 Through 9/30/11, vessel commitments include 262 vessels with a capital cost of $3.948 bil
Slide 15: Recent Vessel Commitments
15 RECENT VESSEL COMMITMENTS Amounts depict vessel count and total cost in quarter commitment was made to acquire (not when delivery or payments were made) RECENT VESSEL COMMITMENTS RECENT VESSEL COMMITMENTS 9/30/09 Qtr 12/31/09 Qtr 3/31/10 Qtr 6/30/10 Qtr 9/30/10 Qtr 12/31/10 Qtr 3/31/11 Qtr 6/30/1
Slide 16: Fleet Renewal & Expansion Funded by CFFO
16 FLEET RENEWAL & EXPANSION FUNDED BY CFFO THROUGH FISCAL 2011 Over a 12-year period, Tidewater has invested $3.8 billion in CapEx ($3.3 billion in the “new” fleet), and paid out $995 million through dividends and share repurchases. Over the same period, CFFO and proceeds from dispositions were $3.
Slide 17: Recent Financings Will Fund Growth at an Attractive Relative Cost
17 Senior Unsecured Notes $590 million Average Life to Maturity (as of 9/30/11) ~ 8.5 years Weighted Average Coupon 4.30% Term Loan $125 million Revolving Line of Credit $450 million Remaining Term ~ 4½ years Interest Rate LIBOR plus 1.5% to 2.25%, based on leverage RECENT FINANCINGS WILL FUND GROWT
Slide 18: Strong Financial Position Provides Strategic Optionality
18 Cash & Cash Equivalents $302 million Total Debt $825 million Shareholders Equity $2,513 million Net Debt / Net Capitalization 17% Total Debt / Capitalization 25% STRONG FINANCIAL POSITION PROVIDES STRATEGIC OPTIONALITY As of September 30, 2011 ~$900 million of liquidity as of 9/30/11, including $
Slide 19: Fleet Cash Operating Margins
19 FLEET CASH OPERATING MARGINS Note: Cash operating margins are defined as vessel revenue less vessel operating expenses FLEET CASH OPERATING MARGINS FLEET CASH OPERATING MARGINS Traditional Vessels New Vessels Cash Oper Margin 38.6% 37.6% 46.5% 41.9% 36.9% 38.7% 49.1% 54.6% 51.9% 51.3% 46.8% 39.3%
Slide 20: Where Could Fiscal 2014 Find Us?
20 WHERE COULD FISCAL 2014 FIND US? Potential for Earnings Acceleration ~$8.70 EPS ~$5.15 EPS ~$3.00 EPS 271 vessel assumption (201 current new vessels + 40 under construction + ~ 20 additional new vessels per year for two years). WHERE COULD FISCAL 2014 FIND US? Potential for Earnings Acceleration
Slide 21: Financial Strategy Focused on Creating Long-Term Shareholder Value
21 FINANCIAL STRATEGY FOCUSED ON CREATING LONG-TERM SHAREHOLDER VALUE FINANCIAL STRATEGY FOCUSED ON CREATING LONG-TERM SHAREHOLDER VALUE FINANCIAL STRATEGY FOCUSED ON CREATING LONG-TERM SHAREHOLDER VALUE Maintain Maintain Financial Strength Financial Strength EVA-Based Investments EVA-Based Investme
Slide 22: Jefferies 2011 Global Energy Conference
JEFFERIES 2011 GLOBAL ENERGY CONFERENCE Dec. 1, 2011 DEAN E. TAYLOR Chairman, President and CEO JOSEPH M. BENNETT Executive VP and Chief Investor Relations Officer JEFFERIES 2011 GLOBAL ENERGY CONFERENCE JEFFERIES 2011 GLOBAL ENERGY CONFERENCE Dec. 1, 2011 Dec. 1, 2011 DEAN E. TAYLOR Chairman, Presi
Slide 23: Appendix
23 APPENDIX APPENDIX APPENDIX
Slide 24: Recent Financial Results Reflect Cyclical Downturn
24 Six Months Ended 9/30/11 9/30/10 Revenues $506 $530 Net Earnings* $42 $59 EPS* $0.81 $1.15 Net Cash from Operations $87 $153 Capital Expenditures $155 $391 * Excludes $22.1 million, or $0.43 per share, goodwill impairment charge in September 2011 RECENT FINANCIAL RESULTS REFLECT CYCLICAL DOWNTURN
Slide 25: Rigs Contracted by Our Top 10 Customers
25 Source: ODS-Petrodata and Tidewater RIGS CONTRACTED BY OUR TOP 10 CUSTOMERS (Estimated as of November 2011) Other Operators Top 10 Customers Tidewater’s top 10 customers contract ~24% of the working worldwide jackup fleet and ~50% of the working worldwide floater fleet Jackups (343 Working Rigs)
Slide 26: Current Revenue Mix: Quality of Customer Base
26 CURRENT REVENUE MIX Quality of Customer Base CURRENT REVENUE MIX Quality of Customer Base CURRENT REVENUE MIX Quality of Customer Base Our top 10 customers in Fiscal 2011 (5 Super Majors, 3 NOC’s and 2 large independents) accounted for 63% of our revenue Super Majors 36% NOC's 28% Others 36%
Slide 27: Significant Average Age Improvement
SIGNIFICANT AVERAGE AGE IMPROVEMENT 27 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 12/31/14 SIGNIFICANT AVERAGE AGE IMPROVEMENT SIGNIFICANT AVERAGE AGE IMPROVEMENT Assumptions: 1) Average 45 vessel disposals per year in future (versus an average of 52 vessel disposi
Slide 28: Vessel Dayrates by Segment
28 VESSEL DAYRATES BY SEGMENT VESSEL DAYRATES BY SEGMENT VESSEL DAYRATES BY SEGMENT $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 Americas Asia/Pac MENA Sub Sah Africa
Slide 29: Vessel Utilization by Segment
29 VESSEL UTILIZATION BY SEGMENT VESSEL UTILIZATION BY SEGMENT VESSEL UTILIZATION BY SEGMENT 30% 40% 50% 60% 70% 80% 90% Americas Asia/Pac MENA Sub Sah Africa
Slide 30: Returns vs the Market: Five Year Stockholder Return
30 RETURNS vs the MARKET FIVE YEAR STOCKHOLDER RETURN OSX 42% S&P 500 14% DJIA 27% TDW 18% RETURNS vs the MARKET FIVE YEAR STOCKHOLDER RETURN RETURNS vs the MARKET FIVE YEAR STOCKHOLDER RETURN TDW DJIA S&P 500 OSX -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% 60.0% 80.0%