Tidewater Inc. · NYSE:TDW
Tidewater — Capital One Southcoast, Inc. 2012 Energy Conference
30 slides from Tidewater's conference presentation, Dec 11, 2012
Slide 1: Capital One Southcoast, Inc. 2012 Energy Conference
December 5, 2012 CAPITAL ONE SOUTHCOAST, INC. 2012 ENERGY CONFERENCE Executive Vice President and Chief Investor Relations Officer President and CEO Exhibit 99.1 December 5, 2012 CAPITAL ONE SOUTHCOAST, INC. 2012 ENERGY CONFERENCE Joseph M. Bennett Joseph M. Bennett Executive Vice President and Chie
Slide 2: Forward-Looking Statements
2 FORWARD-LOOKING STATEMENTS 2 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 statements set forth in this presentation provide other than historical informati
Slide 3: Key Takeaways
3 KEY TAKEAWAYS KEY TAKEAWAYS KEY TAKEAWAYS • Focus on safety, compliance & operating excellence • “The Tide is Turning”– improved working rig count is positively impacting deepwater and jackup support vessels globally • History of earnings growth and solid returns • Unmatched scale and scope of ope
Slide 4: Safety Record Rivals Leading Companies
4 SAFETY RECORD RIVALS LEADING COMPANIES SAFETY RECORD RIVALS LEADING COMPANIES SAFETY RECORD RIVALS LEADING COMPANIES TOTAL RECORDABLE INCIDENT RATES
Slide 5: Drivers of Our Business
5 Source: ODS-Petrodata and Tidewater July 2008 (Peak) Jan. 2011 (Trough) November 2012 Working Rigs 603 538 643 Rigs Under Construction 186 118 199 OSV Global Population 2,033 2,599 2,820 OSV’s Under Construction 736 367 441 OSV/Rig Ratio 3.37 4.83 4.39 DRIVERS OF OUR BUSINESS “Peak to Present” DRI
Slide 6: Tidewater's Active Fleet as of September 30, 2012
6 TIDEWATER’S ACTIVE FLEET as of September 30, 2012 TIDEWATER’S ACTIVE FLEET as of September 30, 2012 TIDEWATER’S ACTIVE FLEET as of September 30, 2012 Year Built
Slide 7: Vessel Population by Owner
7 VESSEL POPULATION BY OWNER (AHTS and PSV’s only) – Estimated as of November 2012 Source: ODS-Petrodata and Tidewater VESSEL POPULATION BY OWNER (AHTS and PSV’s only) – Estimated as of November 2012
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 9/30/12) OUR GLOBAL FOOTPRINT Vessel Distribution by Region (excludes stacked vessels – as of 9/30/12) OUR GLOBAL FOOTPRINT Vessel Distribution by Region (excludes stacked vessels – as of 9/30/12) In 2Q FY 2013, ~
Slide 10: The Largest Modern OSV Fleet in the Industry
10 Vessel Count (2) Total Cost (2) Deepwater PSVs 78 $1,866m Deepwater AHTSs 11 $358m Towing Supply/Supply 106 $1,564m Other 57 $289m TOTALS: 252 $4,077m (1) (1) $3,592m (88%) funded through 9/30/12 THE LARGEST MODERN OSV FLEET IN THE INDUSTRY…. (2) Vessel count and total cost is net of 23 vessel di
Slide 11: Strong Financial Position Provides Strategic Optionality
11 Cash & Cash Equivalents $137 million Total Debt $890 million Shareholders Equity $2,520 million Net Debt / Net Capitalization 23% Total Debt / Capitalization 26% STRONG FINANCIAL POSITION PROVIDES STRATEGIC OPTIONALITY As of September 30, 2012 ~$590 million of available liquidity as of 9/30/12, i
Slide 12: Total Revenue and Margin Fiscal 2008-2013
12 Total Revenue and Margin Fiscal 2008 - 2013 Note: Vessel operating margin is defined as vessel revenue less vessel operating expenses. Vessel revenue and operating margin for Q4-12 through Q2-13 adjusted for retroactive rate increases recognized in Q2-13. Total Revenue and Margin Fiscal 2008 - 20
Slide 13: New Vessel Trends by Vessel Type: Deepwater PSVs
13 New Vessel Trends by Vessel Type Deepwater PSVs $120 million, or 40%, of Vessel Revenue in Q2 Fiscal 2013 New Vessel Trends by Vessel Type Deepwater PSVs New Vessel Trends by Vessel Type Deepwater PSVs Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size
Slide 14: New Vessel Trends by Vessel Type: Towing Supply/Supply Vessels
14 New Vessel Trends by Vessel Type Towing Supply/Supply Vessels $113 million, or 37%, of Vessel Revenue in Q2 Fiscal 2013 New Vessel Trends by Vessel Type Towing Supply/Supply Vessels New Vessel Trends by Vessel Type Towing Supply/Supply Vessels Average Day Rate, Adjusted Average Day Rate, and Aver
Slide 15: Potential for Future Earnings Acceleration
15 POTENTIAL FOR FUTURE EARNINGS ACCELERATION ~$4.20 EPS ~$6.10 EPS ~$10.40 EPS 272 vessel assumption (222 current new vessels + 30 under construction + 20 additional new vessels next year). POTENTIAL FOR FUTURE EARNINGS ACCELERATION POTENTIAL FOR FUTURE EARNINGS ACCELERATION Average Day rates $16,2
Slide 16: Capital One Southcoast, Inc. 2012 Energy Conference
December 5, 2012 CAPITAL ONE SOUTHCOAST, INC. 2012 ENERGY CONFERENCE Executive Vice President and Chief Investor Relations Officer President and CEO December 5, 2012 CAPITAL ONE SOUTHCOAST, INC. 2012 ENERGY CONFERENCE Joseph M. Bennett Joseph M. Bennett Executive Vice President and Chief Investor Re
Slide 17: Appendix
17 APPENDIX APPENDIX APPENDIX
Slide 18: Working Offshore Rig Trends
18 WORKING OFFSHORE RIG TRENDS Note: 45 “Other” rigs, along with the Jackups and Floaters, provide a total working rig count of 643 in November 2012. WORKING OFFSHORE RIG TRENDS WORKING OFFSHORE RIG TRENDS Source: ODS-Petrodata
Slide 19: The Worldwide OSV Fleet – Retirements Expected to Exceed New Deliveries
19 Source: ODS-Petrodata and Tidewater THE WORLDWIDE OSV FLEET – RETIREMENTS EXPECTED TO EXCEED NEW DELIVERIES (Includes AHTS and PSV’s only) Estimated as of November 2012 As of November 2012, there are approximately additional AHTS and PSV’s (~16% of the global fleet) under construction. Global fle
Slide 20: Global Strength
20 GLOBAL STRENGTH GLOBAL STRENGTH GLOBAL STRENGTH Unique global footprint; 50+ years of Int’l experience Unmatched scale and scope of operations Strength of International business complements U.S. activity Secular growth Longer contracts Better utilization Higher day rates Solid customer base of NO
Slide 21: ... And More to Come: Vessels Under Construction
21 Count Deepwater PSVs 19 Deepwater AHTSs - Towing Supply/Supply 4 Other 7 Total 30 Estimated delivery schedule – 8 remaining in FY ‘13, 11 in FY ‘14 and 11 thereafter. CAPX of $142m remaining in FY ‘13, $174m in FY ‘14 and $169m in FY ’15. …. AND MORE TO COME Vessels Under Construction* As of Sept
Slide 22: Fleet Renewal & Expansion Funded by CFFO Through Fiscal 2012
22 FLEET RENEWAL & EXPANSION FUNDED BY CFFO THROUGH FISCAL 2012 Over a 13-year period, Tidewater has invested $4.1 billion in CapEx($3.6 billion in the “new” fleet), and paid out ~$1 billion through dividends and share repurchases. Over the same period, CFFO and proceeds from dispositions were $3.6
Slide 23: New Vessel Trends by Vessel Type: Deepwater AHTS
23 New Vessel Trends by Vessel Type Deepwater AHTS $24 million, or 8%, of Vessel Revenue in Q2 Fiscal 2013 New Vessel Trends by Vessel Type Deepwater AHTS New Vessel Trends by Vessel Type Deepwater AHTS Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size
Slide 24: New Fleet Driving Results
24 NEW FLEET DRIVING RESULTS Note: Vessel revenue for Q4-12 through Q2-13 adjusted for retroactive rate increases recognized in Q2-13. Vessel Revenue ($) Average Fleet Count NEW FLEET DRIVING RESULTS NEW FLEET DRIVING RESULTS 218 Average New Vessels in Q2 2013 $302 million Vessel Revenue in Q2 2013
Slide 25: Cyclical Upturn Should Drive Margin Expansion
25 CYCLICAL UPTURN SHOULD DRIVE MARGIN EXPANSION Note: Vessel cash operating margin for Q4-12 through Q2-13 adjusted for retroactive rate increases recognized in Q2-13. Vessel Cash Operating Margin ($) Vessel Cash Operating Margin (%) CYCLICAL UPTURN SHOULD DRIVE MARGIN EXPANSION CYCLICAL UPTURN SHO
Slide 26: Vessel Utilization by Segment
26 VESSEL UTILIZATION BY SEGMENT VESSEL UTILIZATION BY SEGMENT VESSEL UTILIZATION BY SEGMENT
Slide 27: Vessel Dayrates by Segment
27 VESSEL DAYRATES BY SEGMENT Impact of $7.4 million of retroactive revenue recorded in September 2012 quarter is excluded from 9/12 average dayrates and included in the respective March 2012 and June 2012 quarterly average dayrates. VESSEL DAYRATES BY SEGMENT VESSEL DAYRATES BY SEGMENT
Slide 28: Current Revenue Mix: Quality of Customer Base
28 CURRENT REVENUE MIX Quality of Customer Base Super Majors 35% NOC's 23% Others 42% CURRENT REVENUE MIX Quality of Customer Base CURRENT REVENUE MIX Quality of Customer Base Our top 10 customers in Fiscal 2012 (4 Super Majors, 3 NOC’s and 3 IOC’s) accounted for 59% of our revenue
Slide 29: Rigs Contracted by Our Top 10 Customers
29 Source: ODS-Petrodata and Tidewater RIGS CONTRACTED BY OUR TOP 10 CUSTOMERS (Estimated as of November 2012) Other Operators Top 10 Customers Tidewater’s top 10 customers contract ~20% of the working worldwide jackup fleet and ~51% of the working worldwide floater fleet Jackups (354 Working Rigs)
Slide 30: Financial Strategy Focused on Creating Long-Term Shareholder Value
30 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
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