Tidewater Inc. · NYSE:TDW
Tidewater — UBS Global Oil and Gas Conference 2011
35 slides from Tidewater's conference presentation, Jun 2, 2011
Slide 1: UBS Global Oil and Gas Conference
UBS GLOBAL OIL AND GAS CONFERENCE May 26, 2011 QUINN P. FANNING Executive Vice President , CFO JOSEPH M. BENNETT Executive Vice President and Chief Investor Relations Officer Exhibit 99.1 QUINN P. FANNING Executive Vice President , CFO JOSEPH M. BENNETT Executive Vice President and Chief Investor Re
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS 2 Web: www.tdw.com Email: connect@tdw.com Phone: 504.568.1010 Fax: 504.566.4580 FORWARD-LOOKING STATEMENTS FORWARD-LOOKING STATEMENTS In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Company notes that certain state
Slide 3: Key Takeaways
KEY TAKEAWAYS 3 KEY TAKEAWAYS KEY TAKEAWAYS • Culture of safety & operating excellence • History of earnings growth and solid returns • World’s largest and newest fleet provides basis for continued earnings growth • Strong balance sheet allows us to act upon available opportunities
Slide 4: Safety – A Top Priority
SAFETY – A TOP PRIORITY 4 SAFETY – A TOP PRIORITY SAFETY – A TOP PRIORITY
Slide 5: Safety Record Rivals Leading Companies
5 Calendar Years SAFETY RECORD RIVALS LEADING COMPANIES 0.00 0.25 0.50 0.75 1.00 Total Recordable Incident Rates 2002 2003 2004 2005 2006 2007 2008 2009 TIDEWATER DUPONT DOW CHEMICAL EXXON MOBIL SAFETY RECORD RIVALS LEADING COMPANIES
Slide 6: U.S. Coast Guard Awards for Crew of M/V Damon B Bankston
U.S. COAST GUARD AWARDS FOR CREW OF M/V DAMON B BANKSTON 6 CONFIDENTIAL: Contains assumptions and alternative projections. FOR DISCUSSION PURPOSES ONLY U.S. COAST GUARD AWARDS FOR CREW OF M/V DAMON B BANKSTON U.S. COAST GUARD AWARDS FOR CREW OF M/V DAMON B BANKSTON A Proud Moment For Tidewater Certi
Slide 7: Historical Earnings Summary: A Full Cycle
7 32% Six-Year Compounded Annual Earnings Growth Rate HISTORICAL EARNINGS SUMMARY “A Full Cycle” ** 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
Slide 8: Where Could Fiscal 2014 Find Us?
8 269 vessels assumes (193 current new vessels + 36 under construction + ~ 20 additional new vessels per year for two years). WHERE COULD FISCAL 2014 FIND US? Potential for Earnings Acceleration Avg. Dayrates $14,381 * $15,819 (+ 10%) $17,400 (+ 10%) 85.8% * 85.0% 90.0% ~$4.00 EPS ~$5.60 EPS ~$9.10
Slide 9: International Strength
9 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 INTERNATIONAL STRENGTH
Slide 10: Our Global Footprint
10 OUR GLOBAL FOOTPRINT Vessel Distribution by Region (excludes stacked vessels – as of 3/31/11) North America 16 (6%) Europe / M.E. 40 (14%) Far East 35 (13%) West Africa 129 (47%) Central/South America 54 (20%) OUR GLOBAL FOOTPRINT Vessel Distribution by Region (excludes stacked vessels – as of 3/
Slide 11: Vessel Population by Owner
11 VESSEL POPULATION BY OWNER Source: ODS-Petrodata and Tidewater (Includes AHTS and PSV’s only) Estimated as of Early-May 2011 (Includes AHTS and PSV’s only) Estimated as of Early-May 2011 VESSEL POPULATION BY OWNER Tidewater Competitor #2 Competitor #3 Competitor #4 Competitor # 5 Competitor #1 Av
Slide 12: Current Revenue Mix: Quality of Customer Base
12 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 CURRENT REVENUE MIX Quality of Customer Base Others 36% NOC's 28% Super Majors 36%
Slide 13: The Largest Modern Fleet in the Industry
13 Vessel Count Estimated Cost AHTS 99 $1,743m PSV’s 84 $1,755m Crewboats & Tugs 67 $289m TOTALS: 250 $3,787m (1) (1) $3,293m (87%) funded through 3/31/11 THE LARGEST MODERN FLEET IN THE INDUSTRY… . THE LARGEST MODERN FLEET IN THE INDUSTRY… At 3/31/11, 193 new vessels in fleet with ~5.4 year average
Slide 14: Vessel Deliveries
14 VESSEL DELIVERIES 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Built Acquired VESSEL DELIVERIES Fiscal Year Actual deliveries through 3/31/11 and estimated vessel deliveries to build or acquire as of 3/31/11 At 3/31/11, total 250 vessels with a capital cost of $3.79 billi
Slide 15: ...And Our Lead Is Growing
15 Count AHTS 15 PSV 20 Crew and Tug 1 Total 36 … AND OUR LEAD IS GROWING Estimated delivery schedule – 25 in FY ‘12, 10 in FY ‘13 and 1 thereafter CAPX of $368m in FY ‘12, $110m in FY ‘13 and $16m in FY ‘14 Vessels Under Construction* As of March 31, 2011 … AND OUR LEAD IS GROWING * Includes eight
Slide 16: Significant Average Age Improvement
16 SIGNIFICANT AVERAGE AGE IMPROVEMENT SIGNIFICANT AVERAGE AGE IMPROVEMENT Average 45 vessel disposals per year in future (averaged 47 per year last three years). Includes vessels under construction (including eight purchase commitments) in year delivered plus additional newbuilds/acquisitions from
Slide 17: Recent Vessel Commitments
17 2 2 4 6 9 8 10 RECENT VESSEL COMMITMENTS Amounts depict vessel count and total cost in quarter commitment was made to acquire (not when delivery or payments were made) 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 RECENT VESSEL COMMITMENTS $96M $55M $72M $1
Slide 18: Recent Financings
18 Senior Unsecured Notes $425 million Average Life to Maturity ~ 9 years Weighted Average Coupon 4.25% RECENT FINANCINGS Term Loan* $125 million Revolving Line of Credit $450 million Term Five years Interest Rate LIBOR plus 1.5% to 2.25%, based on leverage * Term loan allows for multiple draws for
Slide 19: A Strong Balance Sheet and Ready Liquidity
19 A STRONG BALANCE SHEET AND READY LIQUIDITY Cash & Cash Equivalents $246 million Total Debt $700 million Shareholders Equity $2,514 million Net Debt / Net Capitalization 15% Total Debt / Capitalization 22% A STRONG BALANCE SHEET AND READY LIQUIDITY March 31, 2011 info: Pro forma liquidity as of 12
Slide 20: Primary Uses of Cash
20 PRIMARY USES OF CASH Over a 12-year period, Tidewater invested $3.8 billion in CAPX ($3.4 billion in the “new” fleet), and paid out $994 million through dividends and share repurchases. Over the same period, CFFO and proceeds from dispositions were $3.4 billion and $677 million, respectively PRIM
Slide 21: Fleet Cash Operating Margins
21 FLEET CASH OPERATING MARGINS Note: Cash operating margins are defined as vessel revenue less vessel operating expenses Total Fleet Operating Margin % $0 $100 $200 $300 $400 $500 $600 $700 $800 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 FLEET CASH OPERATING MARGINS Traditional Ves
Slide 22: Financial Strategy Focused on Creating Long-Term Shareholder Value
22 FINANCIAL STRATEGY FOCUSED ON CREATING LONG-TERM SHAREHOLDER VALUE Maintain Maintain Financial Strength Financial Strength EVA-Based Investments EVA-Based Investments On Through-cycle Basis On Through-cycle Basis Deliver Results Deliver Results FINANCIAL STRATEGY FOCUSED ON CREATING LONG-TERM SHA
Slide 23: UBS Global Oil and Gas Conference
UBS GLOBAL OIL AND GAS CONFERENCE May 26, 2011 QUINN P. FANNING Executive Vice President , CFO JOSEPH M. BENNETT Executive Vice President and Chief Investor Relations Officer QUINN P. FANNING Executive Vice President , CFO JOSEPH M. BENNETT Executive Vice President and Chief Investor Relations Offic
Slide 24: Appendix
24 Appendix Appendix
Slide 25: Recent Accomplishments
25 RECENT ACCOMPLISHMENTS RECENT ACCOMPLISHMENTS • Had two full years without a lost time accident (two years ended August 2010) – None since August 2010 • Respectable earnings & returns in a trough (tough) market • Selected acquisitions of choice assets • Disciplined disposal of traditional equipme
Slide 26: Fiscal Year Results Summary
26 Years Ended 3/31/11 3/31/10 Revenues $1,055 $1,169 Adjusted Net Earnings* $123 $269 Adjusted EPS* $2.40 $5.20 Net Cash from Operations $264 $328 Capital Expenditures $615 $452 * Adjusted Net Earnings and Adjusted EPS for the year ended 3/31/11 exclude an after-tax $4.35 million, or $0.09 per shar
Slide 27: Worldwide Fleet: Retirements Expected to Exceed New Deliveries
27 THE WORLDWIDE FLEET - RETIREMENTS EXPECTED TO EXCEED NEW DELIVERIES Source: ODS-Petrodata and Tidewater Vessels > 25 years old today (Includes AHTS and PSV’s only) Estimated as of Early-May 2011 (Includes AHTS and PSV’s only) Estimated as of Early-May 2011 1965 1970 1975 1980 1985 1990 1995 2000
Slide 28: Continually Acquiring New and Disposing of Mature Vessels
28 CONTINUALLY ACQUIRING NEW AND DISPOSING OF MATURE VESSELS (As of 3/31/11) Active Fleet Dispositions CONTINUALLY ACQUIRING NEW AND DISPOSING OF MATURE VESSELS (As of 3/31/11) (B) (C) 227 New Vessels (A) 436 Sold 107 Scrapped (A) Net new vessels added to the fleet since January 2000, including 36 v
Slide 29: International Vessels Dayrates and Utilization
29 INTERNATIONAL VESSELS Dayrates and Utilization 50% 60% 70% 80% 90% Utilization $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 Dayrate * Dayrate and utilization information is for all classes of vessels operating international INTERNATIONAL VESSELS Dayrates and Utilization $100 change in dayrate = ~
Slide 30: International Vessel Dayrates
30 INTERNATIONAL VESSEL DAYRATES INTERNATIONAL VESSEL DAYRATES * Dayrate and utilization information is for all classes of vessels operating international $3,000 $6,000 $9,000 $12,000 $15,000 $18,000 Traditional Vessels New Vessels
Slide 31: Domestic Vessels Dayrates and Utilization
31 DOMESTIC VESSELS Dayrates and Utilization 30% 50% 70% 90% Utilization $4,000 $9,000 $14,000 $19,000 Dayrate DOMESTIC VESSELS Dayrates and Utilization * Dayrate and utilization information is for all classes of vessels operating in the U.S.
Slide 32: Domestic Vessel Dayrates
32 DOMESTIC VESSEL DAYRATES DOMESTIC VESSEL DAYRATES * Dayrate and utilization information is for all classes of vessels operating in the U.S. $4,000 $8,000 $12,000 $16,000 $20,000 $24,000 Traditional Vessels New Vessels
Slide 33: Working Rig Counts
33 Source: ODS-Petrodata and Tidewater WORKING RIG COUNTS “ Peak to Present ” Jackups Semis Drillships Total June 2008 (Peak) 379 145 30 554 Late-April 2010 (pre-Horizon) 323 150 46 519 Early-May 2011 (post-Horizon) 321 152 47 520 WORKING RIG COUNTS “ Peak to Present ” GOM accounts for of the workin
Slide 34: Rigs Contracted by Our Top 10 Customers
34 RIGS CONTRACTED BY OUR TOP 10 CUSTOMERS Source: ODS-Petrodata and Tidewater (Estimated as of Early-May 2011) Other Operators Top 10 Customers Tidewater’s top 10 customers contract ~20% of the working worldwide jackup fleet and ~47% of the working worldwide floater fleet Jackups (321 Working Rigs)
Slide 35: Returns vs the Market: Five Year Stockholder Return
35 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