Tidewater Inc. · NYSE:TDW

Tidewater — Capital One Securities 11th Annual Energy Conference 2016

25 slides from Tidewater's conference presentation, Dec 8, 2016

  1. Slide 1: Capital One Securities, Inc. 11th Annual Energy Conference

    Capital One Securities, Inc. 11th Annual Energy Conference Joseph M. Bennett Executive Vice President and Chief Investor Relations Officer December 8, 2016 Capital One 201611th Annual Louisiana Energy Energy Conference Conference 1

  2. Slide 2: Forward-Looking Statements

    TIDEWATER 601 Poydras Street, Suite 1500, New Orleans, La. 70130 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 in

  3. Slide 3: Strategy and Focus in a Challenged Market, and Results

    Strategy and Focus in a Challenged Market, and Results  Providing safe, efficient and compliant operations – TRIR thus far in fiscal 2017 better than our last five years’ average rate, and NO lost time accidents in the last 21 months, which represents over 42 million manhours worked.  New fleet co

  4. Slide 4: What Tidewater Will NOT Do

    What Tidewater Will NOT Do  We will NOT compromise safety  We will NOT compromise on compliance  We will NOT jeopardize fleet integrity/capability - “Smart stacking” vessels, with continual maintenance, while maintaining a new fleet comprised of vessels that can service all water depths  We will

  5. Slide 5: Safe Operations is Priority #1

    Safe Operations is Priority #1  Stop Work Obligation  Safety performance is 25% of mgt. incentive comp Operating safely offshore is like holding a snake by its 0.6 head TOTAL RECORDABLE INCIDENT RATES (per 200,000 Man Hours) 0.5 0.4 0.3 0.2 0.1 It's a task that can't be turned loose not for a micr

  6. Slide 6: Rig Activity Levels Drive OSV Demand

    Rig Activity Levels Drive OSV Demand 450 421 400 Jackups Working Rigs 350 300 250 257 271 200 Floaters 150 129 100 50 0 11/05 11/06 11/07 11/08 11/09 11/10 11/11 11/12 11/13 11/14 11/15 11/16 Source: IHS-Petrodata Note: 28 “Other” rigs, along with the Jackups and Floaters, provide a total working ri

  7. Slide 7: Tidewater's Active Fleet vs the Worldwide OSV Fleet

    Tidewater’s Active Fleet vs the Worldwide OSV Fleet Tidewater as of 9/30/16 and Worldwide Fleet Estimated as of December 2016 Deepwater vessels Towing Supply/Supply As of December 2016, there are approximately 321 Other vessels additional AHTS and PSV’s (~9% of the global fleet) under construction.

  8. Slide 8: Vessel Population by Owner

    Vessel Population by Owner (AHTS and PSVs only) Estimated as of December 2016 Avg. Tidewater Competitor #1 Competitor #2 Competitor #3 Competitor #4 Competitor # 5 All Others (~2,726 total vessels for 400+ owners) Source: IHS-Petrodata and Tidewater 8 Capital 2016 Louisiana One 11th AnnualEnergy Con

  9. Slide 9: Geographic Diversity – Active Vessel Count by Region

    Geographic Diversity – Active Vessel Count by Region (Excludes stacked vessels – as of 9/30/16) Middle East 30 vessels (20%) Asia/Pac 9 vessels (6%) Africa/Europe Americas 73 vessels (49%) 38 vessels (25%) 115 additional Tidewater vessels were stacked as of 9/30/16 9 Capital 2016 Louisiana One 11th

  10. Slide 10: Staying Close to our Customers – Strong Customer Base

    Staying Close to our Customers – Strong Customer Base Current Revenue Mix Super Others Majors 32% 32% Approximately 60% of our revenue is derived from drilling support activity and 40% from non-drilling related activity, such as support of production and construction activity NOC's 36% Our top 10 cu

  11. Slide 11: The Largest Modern OSV Fleet in the Industry

    The Largest Modern OSV Fleet in the Industry New Vessel Information as of September 30, 2016 New Vessel Average NBV Net Book Value Count (1) (2) per Vessel Deepwater PSVs 92 $1,849m $20.1m Deepwater AHTSs 12 $270m $22.5m Towing Supply/Supply 107 $966m $9.0m Other 38 $62m $1.6m TOTALS: 249 $3,147m $1

  12. Slide 12: CapEx is Decreasing from Recent High Levels

    CapEx is Decreasing from Recent High Levels Amounts in orange in Fiscal 2017 and 2018 represent future expected CapEx on the 3 vessels under construction as of 9/30/16, totaling ~$48m. If options are not exercised, net CapEx totals ~$34m. NOTE: Fiscal 2017 and 2018 estimated CAPX above is Fiscal Yea

  13. Slide 13: Summarized Balance Sheet Info

    Summarized Balance Sheet Info As of September 30, 2016 Cash & Cash Equivalents $675 million Total Debt $2,041 million Shareholders Equity $2,035 million Net Debt / Net Capitalization 40% Total Debt / Capitalization 50% On 3/15/16, the company borrowed the full $600 million available under its revolv

  14. Slide 14: Debt Maturities and Covenants as of 9/30/16

    Debt Maturities and Covenants as of 9/30/16 Maturities Limited for Several Years Current Debt Covenants: 1) Debt/Total Capitalization Ratio of not greater than 55% Debt Maturity (in $millions) 2) EBITDA/Interest coverage of not less than 3.0X The company continues discussions with it banks and noteh

  15. Slide 15: Tidewater's Long-Term Strategy

    Tidewater’s Long-Term Strategy  Continue to improve upon stellar safety and compliance programs  Remain close to our customers and provide excellent service  Monitor industry developments to adjust our playbook accordingly - Continue pro-active cost reduction initiatives - Maintain/protect liquid

  16. Slide 16: Worldwide Headquarters Tidewater Inc.

    NEW ORLEANS, LOUISIANA Worldwide Headquarters Tidewater Inc. Pan American Life Center 601 Poydras Street, Suite 1500 New Orleans, Louisiana 70130 P: +1 504 568 1010 HOUSTON, TEXAS Tidewater Marine, L.L.C. 6002 Rogerdale Road Suite 600 Houston, Texas 77072-1655 P: +1 713 470 5300 Capital OneLouisiana

  17. Slide 17: Drivers of our Business - A View at Various Points in a Cycle

    Drivers of our Business - “A View at Various Points in a Cycle” July Nov December 2008 2014 2016 Working Rigs 603 720 428 Down ~290 rigs (40%) from prior peak Rigs Under 186 246 171 How many will be Construction delivered and how many incremental? OSV Global Includes ~650 old 2,033 3,233 3,510 vesse

  18. Slide 18: A New Fleet that Services All Water Depths

    A New Fleet that Services All Water Depths (Excludes stacked vessels – as of 9/30/16 New Middle EastVessels Avg. Traditional Americas New Avg. Traditional NBV Vessels Vessels NBV Vessels Deepwater 8 $15.2M 0 Deepwater 21 30.1M 0 Towing Supply 22 $11.5M 0 Towing Supply 12 $8.5M 0 Other 0 0 0 Other 4

  19. Slide 19: Our Remaining Construction Backlog

    Our Remaining Construction Backlog Vessels Under Construction As of September 30, 2016 (excludes vessels under Count option*) Deepwater PSVs 3 Deepwater AHTSs - Towing Supply/Supply - Other - Total 3 Estimated delivery schedule – 1 in remainder of FY 2017 and 2 in FY 2018. CAPX of $15m in remainder

  20. Slide 20: Fleet Renewal & Expansion Largely Funded by CFFO

    Fleet Renewal & Expansion Largely Funded by CFFO CAPX Dividend Share Repurchase $700 $ in millions $600 $500 CFFO $400 $300 $200 $100 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Fiscal Year Over a 17-year period, Tidewater has invested ~$5.7 billion in Cap

  21. Slide 21: Active Vessel Dayrates & Utilization by Segment

    Active Vessel Dayrates & Utilization by Segment Americas Asia/Pac Middle East Africa/Eur. $26,000 Avg. Dayrate $22,000 $18,000 $14,000 $10,000 $6,000 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 100% Avg. Utilization 90% 80% 70% 60% 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 Utilization stats exclude stacke

  22. Slide 22: 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 $60,000 300 Q2 Fiscal 2017 Avg Day Rate: $17,622 Utilization: 41.4% $50,000 250 $40,000 200 $30,000 150 $20,000 89 88 90 90 91 100 80 81 86 69 73 75 76 76 77 57 62 66 47 49 51 54 55 $1

  23. Slide 23: 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 $60,000 300 Q2 Fiscal 2017 Avg Day Rate: $24,180 Utilization: 34.6% $50,000 250 $40,000 200 $30,000 150 $20,000 100 $10,000 50 11 11 11 11 11 11 11 11 11 11 11 11 11 11 12 12 12 12 12

  24. Slide 24: 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 Average Fleet Size $25,000 250 Q2 Fiscal 2017 Avg Day Rate: $12,436 Utilization: 48.8% $20,000 200 $15,000 150 103 104 105 105 105 106 107 101 102 $10,000 93 100 81 85 68 57 61 47 51 $5,000

  25. Slide 25: Vessel Revenue and Vessel Operating Margin

    Vessel Revenue and Vessel Operating Margin Fiscal 2008-2017 Prior peak period (FY2009) averaged quarterly revenue of $339M, quarterly operating $500 56.4% margin of $175.6M at 51.8% 53.0% 46.7% 47.7% 50.0% 46.3% 45.6% 45.5% $400 45.0% 44.1% 43.1% 41.0% 40.8% 41.2% 38.0% 39.9% 36.9% 37.5% $300 $300 m

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