Tidewater Inc. · NYSE:TDW
Tidewater — Pareto Securities Oil & Offshore Conference 2011
32 slides from Tidewater's conference presentation, Sep 2, 2011
Slide 1: Pareto Securities Oil & Offshore Conference 2011
QUINN P. FANNING Executive VP and CFO PARETO SECURITIES OIL & OFFSHORE CONFERENCE 2011 Sept. 1, 2011 Exhibit 99.1 QUINN P. FANNING Executive VP and CFO PARETO SECURITIES OIL & OFFSHORE CONFERENCE 2011 Sept. 1, 2011
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 • Culture of safety & operating excellence • History of earnings growth and solid returns • Unmatched scale and scope of operations • World’s largest and newest fleet provides basis for continued earnings growth • Strong balance sheet allows us to act upon available opp
Slide 4: Safety Remains a Top Priority
SAFETY REMAINS A TOP PRIORITY 4 SAFETY REMAINS A TOP PRIORITY SM
Slide 5: Safety Record Rivals Leading Companies
SAFETY RECORD RIVALS LEADING COMPANIES 5 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: History of Earnings Growth and Solid Through-Cycle Returns
6 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 7: International Strength
7 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
Slide 8: Our Global Footprint
North America 15 (6%) Central/South America 54 (21%) Europe / M.E. 39 (15%) Far East 28 (10%) International / U.S. 2011: 94% / 6% 2000: 62% / 38% OUR GLOBAL FOOTPRINT Vessel Distribution by Region (excludes stacked vessels – as of 6/30/11) West Africa 125 (48%) 8 OUR GLOBAL FOOTPRINT Vessel Distribu
Slide 9: Vessel Population by Owner
Source: ODS-Petrodata and Tidewater 9 VESSEL POPULATION BY OWNER (AHTS and PSV’s only) – Estimated as of August 2011 Tidewater Competitor #2 Competitor #3 Competitor #4 Competitor # 5 Competitor #1 Avg. All Others (1,932 total vessels for 350+ owners) VESSEL POPULATION BY OWNER Tidewater AHTS and PS
Slide 10: Current Revenue Mix: Quality of Customer Base
CURRENT REVENUE MIX Quality of Customer Base 10 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 11: The Largest Modern OSV Fleet in the Industry
11 Vessel Count Estimated Cost AHTS 102 $1,793m PSV’s 88 $1,843m Crewboats & Tugs 67 $289m TOTALS: 257 $3,925m (1) (1) $3,354m (85%) funded through 6/30/11 THE LARGEST MODERN OSV FLEET IN THE INDUSTRY…. . At 6/30/11, 196 new vessels were in our fleet with ~5.4 year average age Vessel Commitments Jan
Slide 12: ...And More to Come: Vessels Under Construction
12 Count AHTS 17 PSV 22 Crew and Tug 1 Total 40 Estimated delivery schedule – 25 in FY ‘12, 11 in FY ‘13 and 4 thereafter. CAPX of $400m in remainder of FY ‘12, $147m in FY ‘13 and $24m in FY ’14. …. AND MORE TO COME Vessels Under Construction* As of June 30, 2011 * Includes 12 new vessel purchase c
Slide 13: Through-Cycle, EVA-Based Investment; Balance Between Buy and Build
13 THROUGH-CYCLE, EVA-BASED INVESTMENT; BALANCE BETWEEN “BUY” and “BUILD” Fiscal Year Actual vessel deliveries through 6/30/11; estimated vessel deliveries based on commitments to build or acquire as of 6/30/11 THROUGH-CYCLE, EVA-BASED INVESTMENT; BALANCE BETWEEN “BUY” and “BUILD” THROUGH-CYCLE, EVA
Slide 14: Recent Vessel Commitments
14 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 15: Significant Average Age Improvement
15 SIGNIFICANT AVERAGE AGE IMPROVEMENT SIGNIFICANT AVERAGE AGE IMPROVEMENT SIGNIFICANT AVERAGE AGE IMPROVEMENT Assumptions: 2) Includes 40 vessels under construction, including 12 vessel purchase commitments (based on current estimated delivery schedule), plus additional newbuilds/acquisitions of ~2
Slide 16: Fleet Renewal & Expansion Funded by CFFO Through Fiscal 2011
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 $321 million Total Debt $825 million Shareholders Equity $2,528 million Net Debt / Net Capitalization 17% Total Debt / Capitalization 25% STRONG FINANCIAL POSITION PROVIDES STRATEGIC OPTIONALITY Pro Forma as of June 30, 2011 * * Pro forma based on (i) $165 million private
Slide 19: Recent Financial Results Reflect Cyclical Downturn
19 Quarter Ended 6/30/11 6/30/10 Revenues $255 $263 Net Earnings $25 $40 EPS $0.48 $0.77 Net Cash from Operations $27 $53 Capital Expenditures $70 $141 RECENT FINANCIAL RESULTS REFLECT CYCLICAL DOWNTURN $ in Millions, Except Per Share Data RECENT FINANCIAL RESULTS REFLECT CYCLICAL DOWNTURN
Slide 20: Fleet Cash Operating Margins
20 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 Fiscal Years $0 $100 $200 $300 $400 $500 $600 $700 $800 2000 2001 2002
Slide 21: Where Could Fiscal 2014 Find Us?
WHERE COULD FISCAL 2014 FIND US? Potential for Earnings Acceleration ~$3.50 EPS ~$5.25 EPS ~$8.75 EPS 271 vessel assumption (196 current new vessels + 40 under construction + ~ 20 additional new vessels per year for two years). 21 WHERE COULD FISCAL 2014 FIND US? Potential for Earnings Acceleration
Slide 22: Financial Strategy Focused on Creating Long-Term Shareholder Value
22 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 23: Pareto Securities Oil & Offshore Conference 2011
QUINN P. FANNING Executive VP and CFO PARETO SECURITIES OIL & OFFSHORE CONFERENCE 2011 Sept. 1, 2011 QUINN P. FANNING Executive VP and CFO PARETO SECURITIES OIL & OFFSHORE CONFERENCE 2011 PARETO SECURITIES OIL & OFFSHORE CONFERENCE 2011 Sept. 1, 2011 Sept. 1, 2011
Slide 24: Appendix
24 APPENDIX APPENDIX APPENDIX
Slide 25: Working Rig Counts: Peak to Present
25 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 August 2011 (post-Horizon) 325 159 53 537 WORKING RIG COUNTS “Peak to Present” GOM accounts for of the working jackup count variance from June 2008 (Peak
Slide 26: Rigs Contracted by Our Top 10 Customers
26 Source: ODS-Petrodata and Tidewater RIGS CONTRACTED BY OUR TOP 10 CUSTOMERS (Estimated as of August 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 (325 Working Rigs) Fl
Slide 27: Worldwide OSV Fleet: Retirements Expected to Exceed New Deliveries
27 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 August 2011 As of late-August 2011, there are approximately 456 additional AHTS and PSV’s (~17% of the global fle
Slide 28: International Vessels Dayrates and Utilization
28 * Dayrate and utilization information is for all classes of vessels operating international INTERNATIONAL VESSELS Dayrates and Utilization $100 change in dayrate = ~$7.9M in annual revenue 1% change in utilization = ~$15.1M in annual revenue INTERNATIONAL VESSELS Dayrates and Utilization INTERNAT
Slide 29: International Vessels Dayrates
INTERNATIONAL VESSELS DAYRATES * Dayrate and utilization information is for all classes of vessels operating international 29 INTERNATIONAL VESSELS DAYRATES INTERNATIONAL VESSELS DAYRATES $3,000 $6,000 $9,000 $12,000 $15,000 $18,000 New Vessels Traditional Vessels
Slide 30: Domestic Vessels Dayrates and Utilization
30 DOMESTIC VESSELS Dayrates and Utilization * Dayrate and utilization information is for all classes of vessels operating in the U.S. $4,000 $9,000 $14,000 $19,000 30% 50% 70% 90% DOMESTIC VESSELS Dayrates and Utilization DOMESTIC VESSELS Dayrates and Utilization Dayrate Utilization
Slide 31: Domestic Vessel Dayrates
31 DOMESTIC VESSEL DAYRATES * Dayrate and utilization information is for all classes of vessels operating in the U.S. DOMESTIC VESSEL DAYRATES DOMESTIC VESSEL DAYRATES $4,000 $8,000 $12,000 $16,000 $20,000 $24,000 New Vessels Traditional Vessels
Slide 32: Returns vs the Market: Five Year Stockholder Return
32 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 -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% 60.0% 80.0% TDW DJIA S&P 500 OSX
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