Tidewater Inc. · NYSE:TDW
Tidewater — Credit Suisse 2012 Energy Summit
28 slides from Tidewater's conference presentation, Feb 10, 2012
Slide 1: Credit Suisse 2012 Energy Summit
CREDIT SUISSE 2012 ENERGY SUMMIT Feb. 7, 2012 JOSEPH M. BENNETT Executive VP and Chief Investor Relations Officer QUINN P. FANNING Executive VP and CFO Exhibit 99.1 CREDIT SUISSE 2012 ENERGY SUMMIT CREDIT SUISSE 2012 ENERGY SUMMIT Feb. 7, 2012 Feb. 7, 2012 JOSEPH M. BENNETT Executive VP and Chief In
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 – stable oil prices, increased E&P spending, improving rig count • History of earnings growth and solid returns • Unmatched scale and scope of operations • World’s largest and newest flee
Slide 4: Safety Record Rivals Leading Companies
4 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 SAFETY RECORD RIVALS LEADING COMPANIES SAFETY RECORD RIVALS LEADING COMPANIES
Slide 5: Drivers of Our Business
5 Source: ODS-Petrodata and Tidewater June 2008 (Peak) Jan. 2011 Jan. 2012 Working Rigs 603 538 626 Rigs Under Construction 186 118 148 OSV Global Population 2,033 2,599 2,722 OSV’s Under Construction 736 367 448 OSV/Rig Ratio 3.37 4.83 4.35 DRIVERS OF OUR BUSINESS “Peak to Present” DRIVERS OF OUR B
Slide 6: The Worldwide OSV Fleet – Retirements Expected to Exceed New Deliveries
6 Source: ODS-Petrodata and Tidewater THE WORLDWIDE OSV FLEET – RETIREMENTS EXPECTED TO EXCEED NEW DELIVERIES (Includes AHTS and PSV’s only) Estimated as of January 2012 Vessels > 25 years old today As of late-January 2012, there are approximately 436 additional AHTS and PSV’s (~16% of the global fl
Slide 7: Vessel Population by Owner
7 Source: ODS-Petrodata and Tidewater VESSEL POPULATION BY OWNER (AHTS and PSV’s only) – Estimated as of January 2012 Tidewater Competitor #2 Competitor #3 Competitor #4 Competitor # 5 Competitor #1 Avg. All Others (1,993 total vessels for 350+ owners) VESSEL POPULATION BY OWNER (AHTS and PSV’s only
Slide 8: History of Earnings Growth and Solid Through-Cycle Returns
8 HISTORY OF EARNINGS GROWTH AND SOLID THROUGH-CYCLE RETURNS ** 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
Slide 9: Our Global Footprint
9 OUR GLOBAL FOOTPRINT Vessel Distribution by Region (excludes stacked vessels – as of 12/31/11) Americas 65 (25%) MENA 37 (14%) Asia/Pac 33 (12%) SS Africa/Europe 129 (49%) OUR GLOBAL FOOTPRINT Vessel Distribution by Region (excludes stacked vessels – as of 12/31/11) OUR GLOBAL FOOTPRINT Vessel Dis
Slide 10: The Largest Modern OSV Fleet in the Industry
10 Vessel Count Estimated Cost AHTS 101 $1,765m PSV’s 89 $1,927m Crewboats & Tugs 71 $302m TOTALS: 261 $3,994m (1) (1) $3,574m (89%) funded through 12/31/11 THE LARGEST MODERN OSV FLEET IN THE INDUSTRY…. . At 12/31/11, 211 new vessels were in our fleet with ~4.9 year average age Vessel Commitments J
Slide 11: …And More to Come
11 Count AHTS 6 PSV 19 Crew and Tug 5 Total 30 Estimated delivery schedule – 7 in FY ‘12, 13 in FY ‘13 and 10 thereafter. CAPX of $99m in remainder of FY ‘12, $246m in FY ‘13 and $75m in FY ’14. …. AND MORE TO COME Vessels Under Construction * As of December 31, 2011 * Includes 7 new vessel purchase
Slide 12: Through-Cycle, EVA-Based Investment; Balance Between Buy and Build
12 THROUGH-CYCLE, EVA-BASED INVESTMENT; BALANCE BETWEEN “BUY” and “BUILD” Fiscal Year Actual vessel deliveries through 12/31/11; estimated vessel deliveries based on commitments to build or acquire as of 12/31/11 Through 12/31/11, vessel commitments include 261 vessels with a capital cost of $3.994
Slide 13: Recent Vessel Commitments
13 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 14: Fleet Renewal & Expansion Funded by CFFO Through Fiscal 2011
14 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 15: Recent Financings Will Fund Growth at an Attractive Relative Cost
15 Senior Unsecured Notes $590 million Average Life to Maturity (as of 12/31/11) ~ 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 GROW
Slide 16: Strong Financial Position Provides Strategic Optionality
16 Cash & Cash Equivalents $188 million Total Debt $825 million Shareholders Equity $2,502 million Net Debt / Net Capitalization 20% Total Debt / Capitalization 25% STRONG FINANCIAL POSITION PROVIDES STRATEGIC OPTIONALITY As of December 31, 2011 ~$750 million of liquidity as of 12/31/11, including $
Slide 17: Where Could Fiscal 2014 Find Us?
17 WHERE COULD FISCAL 2014 FIND US? Potential for Earnings Acceleration ~$3.00 EPS ~$5.60 EPS ~$9.25 EPS 266 vessel assumption (211 current new vessels + 30 under construction + ~ 20 additional new vessels per year for next one and a quarter years). WHERE COULD FISCAL 2014 FIND US? Potential for Ear
Slide 18: Financial Strategy Focused on Creating Long-Term Shareholder Value
18 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 Deliver Results Deliver Results EVA-Base
Slide 19: Credit Suisse 2012 Energy Summit
CREDIT SUISSE 2012 ENERGY SUMMIT Feb. 7, 2012 JOSEPH M. BENNETT Executive VP and Chief Investor Relations Officer QUINN P. FANNING Executive VP and CFO CREDIT SUISSE 2012 ENERGY SUMMIT CREDIT SUISSE 2012 ENERGY SUMMIT Feb. 7, 2012 Feb. 7, 2012 JOSEPH M. BENNETT Executive VP and Chief Investor Relati
Slide 20: Appendix
20 APPENDIX APPENDIX APPENDIX
Slide 21: International Strength
21 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 22: Fleet Cash Operating Margins
22 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 23: Recent Financial Results Reflect Cyclical Downturn
23 Nine Months Ended 12/31/11 12/31/10 Revenues $778 $801 Net Earnings* $76 $94 EPS* $1.47 $1.82 Net Cash from Operations $158 $218 Capital Expenditures $297 $509 * Excludes $22.1 million, or $0.43 per share, goodwill impairment charge in September 2011 RECENT FINANCIAL RESULTS REFLECT CYCLICAL DOWN
Slide 24: Rigs Contracted by Our Top 10 Customers
24 Source: ODS-Petrodata and Tidewater RIGS CONTRACTED BY OUR TOP 10 CUSTOMERS (Estimated as of January 2012) Other Operators Top 10 Customers Tidewater’s top 10 customers contract ~23% of the working worldwide jackup fleet and ~50% of the working worldwide floater fleet Jackups (348 Working Rigs) F
Slide 25: Current Revenue Mix
25 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 26: Significant Average Age Improvement
26 SIGNIFICANT AVERAGE AGE IMPROVEMENT SIGNIFICANT AVERAGE AGE IMPROVEMENT SIGNIFICANT AVERAGE AGE IMPROVEMENT Assumptions: 1) Average 45 vessel disposals per year in future (versus an average of 52 vessel dispositions per year over last 3 years). 2) Includes vessels under construction, including ve
Slide 27: Vessel Dayrates by Segment
27 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 28: Vessel Utilization by Segment
28 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