Tidewater Inc. · NYSE:TDW
Tidewater — 2013 Credit Suisse Energy Summit
29 slides from Tidewater's conference presentation, Feb 8, 2013
Slide 1: 2013 Credit Suisse Energy Summit
February 5, 2013 2013 CREDIT SUISSE ENERGY SUMMIT Executive Vice President and Chief Investor Relations Officer Exhibit 99.1 Joseph M. Bennett
Slide 2: Forward-Looking Statements
2 FORWARD-LOOKING STATEMENTS 2 Phone: 504.568.1010 • Fax: 504.566.4580 Web: www.tdw.com • Email: connect@tdw.com 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
Slide 3: Key Takeaways
KEY TAKEAWAYS 3 KEY TAKEAWAYS KEY TAKEAWAYS • Focus on safety, compliance & operating excellence • “The Tide is Turning”– continued improvement in working rig count is positively impacting deepwater and jackup support vessels globally • History of earnings growth and solid returns • Unmatched scale
Slide 4: Safety Record Rivals Leading Companies
SAFETY RECORD RIVALS LEADING COMPANIES 4 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 2011 CALENDAR YEARS TOTAL RECORDABLE INCIDENT RATES TIDEWATER DOW CHEMICAL CHEVRON EXXON/MOBIL SAFETY RECORD RIVALS LEADING COMPANIES SAFETY RECORD RIVALS LEADING COMPAN
Slide 5: Working Offshore Rig Trends
5 WORKING OFFSHORE RIG TRENDS Note: 45 “Other” rigs, along with the Jackups and Floaters, provide a total working rig count of 673 in late January 2013. WORKING OFFSHORE RIG TRENDS WORKING OFFSHORE RIG TRENDS Floaters Jackups Prior peak (summer 2008) Source: ODS-Petrodata
Slide 6: Drivers of Our Business
Source: ODS-Petrodata and Tidewater July 2008 (Peak) Jan. 2011 (Trough) January 2013 Working Rigs 603 538 673 Rigs Under Construction 186 118 192 OSV Global Population 2,033 2,599 2,873 OSV’s Under Construction 736 367 426 OSV/Rig Ratio 3.37 4.83 4.27 DRIVERS OF OUR BUSINESS 6 “Peak to Present” DRIV
Slide 7: The Worldwide OSV Fleet – Retirements Expected to Exceed New Deliveries
7 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 January 2013 As of January 2013, there are approximately 426 additional AHTS and PSV’s (~15% of the global fleet)
Slide 8: Tidewater's Active Fleet
8 TIDEWATER’S ACTIVE FLEET as of December 31, 2012 TIDEWATER’S ACTIVE FLEET TIDEWATER’S ACTIVE FLEET Year Built Deepwater vessels Towing Supply/Supply Other vessels 226 “New” vessels – 5.4 avg yrs 38 “Traditional” vessels – 27.3 avg yrs 1970 1975 1980 1985 1990 1995 2000 2005 2010
Slide 9: Vessel Population by Owner
9 VESSEL POPULATION BY OWNER Source: ODS-Petrodata and Tidewater (AHTS and PSV’s only) – Estimated as of January 2013 VESSEL POPULATION BY OWNER VESSEL POPULATION BY OWNER Tidewater Competitor #2 Competitor #3 Competitor #4 Competitor # 5 Competitor #1 Avg. All Others (2,149 total vessels for 370+ o
Slide 10: History of Earnings Growth and Solid Through-Cycle Returns
10 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 shar
Slide 11: Global Strength
11 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 12: Our Global Footprint
12 OUR GLOBAL FOOTPRINT Americas 63 (24%) MENA 38 (14%) Asia/Pac 29 (11%) SS Africa/Europe 134 (51%) Vessel Distribution by Region (excludes stacked vessels – as of 12/31/12) OUR GLOBAL FOOTPRINT OUR GLOBAL FOOTPRINT In 3Q FY 2013, ~9% of vessel revenue was generated in the U.S. by < 15 vessels; how
Slide 13: The Largest Modern OSV Fleet in the Industry
13 Vessel Count (2) Total Cost (2) Deepwater PSVs 82 $2,030m Deepwater AHTSs 11 $358m Towing Supply/Supply 106 $1,565m Other 57 $289m TOTALS: 256 $4,242m (1) (1) $3,706m (87%) funded through 12/31/12 THE LARGEST MODERN OSV FLEET IN THE INDUSTRY…. (2) Vessel count and total cost is net of 23 vessel d
Slide 14: ...And More to Come
14 Count Deepwater PSVs 18 Deepwater AHTSs - Towing Supply/Supply 4 Other 7 Total 29 …. AND MORE TO COME Estimated delivery schedule – 6 remaining in FY ‘13, 11 in FY ‘14 and 12 thereafter. CAPX of $110m remaining in FY ‘13, $258m in FY ‘14 and $167m in FY ’15. Vessels Under Construction* As of Dece
Slide 15: Fleet Renewal & Expansion Funded by CFFO Through Fiscal 2012
15 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 16: Strong Financial Position Provides Strategic Optionality
16 Cash & Cash Equivalents $54 million Total Debt $930 million Shareholders Equity $2,526 million Net Debt / Net Capitalization 27% Total Debt / Capitalization 26% STRONG FINANCIAL POSITION PROVIDES STRATEGIC OPTIONALITY As of December 31, 2012 ~$500 million of available liquidity as of 12/31/12, in
Slide 17: Total Revenue and Margin Fiscal 2008-2013
17 Total Revenue and Margin Fiscal 2008 - 2013 Note: Vessel operating margin is defined as vessel revenue less vessel operating expenses Total Revenue and Margin Fiscal 2008 - 2013 Total Revenue and Margin Fiscal 2008 - 2013 Prior peak period (FY2009) averaged quarterly revenue of $339M, Prior peak
Slide 18: New Vessel Trends by Vessel Type: Deepwater PSVs
18 New Vessel Trends by Vessel Type Deepwater PSVs $122 million, or 40%, of Vessel Revenue in Q3 Fiscal 2013 New Vessel Trends by Vessel Type Deepwater PSVs New Vessel Trends by Vessel Type Deepwater PSVs Q3 Fiscal 2013 Avg Day Rate: $27,223 Utilization: 78.3% - $0 $10,000 $20,000 $30,000 $40,000 $5
Slide 19: New Vessel Trends by Vessel Type: Deepwater AHTS
19 New Vessel Trends by Vessel Type Deepwater AHTS $25 million, or 8%, of Vessel Revenue in Q3 Fiscal 2013 New Vessel Trends by Vessel Type Deepwater AHTS New Vessel Trends by Vessel Type Deepwater AHTS Q3 Fiscal 2013 Avg Day Rate: $30,366 Utilization: 81.8% - $0 $10,000 $20,000 $30,000 $40,000 $50,
Slide 20: New Vessel Trends by Vessel Type: Towing Supply/Supply Vessels
20 New Vessel Trends by Vessel Type Towing Supply/Supply Vessels $113 million, or 37%, of Vessel Revenue in Q3 Fiscal 2013 New Vessel Trends by Vessel Type Towing Supply/Supply Vessels New Vessel Trends by Vessel Type Towing Supply/Supply Vessels Q3 Fiscal 2013 Avg Day Rate: $13,969 Utilization: 86.
Slide 21: Potential for Future Earnings Acceleration
21 POTENTIAL FOR FUTURE EARNINGS ACCELERATION 276 vessel assumption (227 current new vessels + 29 under construction + 20 additional new vessels next year). ~$4.15 EPS ~$6.15 EPS ~$10.50 EPS POTENTIAL FOR FUTURE EARNINGS ACCELERATION POTENTIAL FOR FUTURE EARNINGS ACCELERATION Average Day rates $16,5
Slide 22: 2013 Credit Suisse Energy Summit
2013 CREDIT SUISSE ENERGY SUMMIT Executive Vice President and Chief Investor Relations Officer February 5, 2013 2013 CREDIT SUISSE ENERGY SUMMIT Joseph M. Bennett Executive Vice President and Chief Investor Relations Officer February 5, 2013
Slide 23: Appendix
APPENDIX 23 APPENDIX APPENDIX
Slide 24: New Fleet Driving Results
24 NEW FLEET DRIVING RESULTS Vessel Revenue ($) Average Fleet Count NEW FLEET DRIVING RESULTS NEW FLEET DRIVING RESULTS - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 New Traditional Stacked Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 25: Cyclical Upturn Should Drive Margin Expansion
25 CYCLICAL UPTURN SHOULD DRIVE MARGIN EXPANSION Vessel Cash Operating Margin ($) Vessel Cash Operating Margin (%) CYCLICAL UPTURN SHOULD DRIVE MARGIN EXPANSION CYCLICAL UPTURN SHOULD DRIVE MARGIN EXPANSION $124 million Vessel Margin in Q3 FY2013 (98% from New Vessels) Q3 FY2013 Vessel Margin: 41% Q
Slide 26: Vessel Utilization by Segment
26 VESSEL UTILIZATION BY SEGMENT 26 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 $4,000 $6,00
Slide 28: Current Revenue Mix
28 CURRENT REVENUE MIX Quality of Customer Base Super Majors 35% NOC's 23% Others 42% CURRENT REVENUE MIX CURRENT REVENUE MIX 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: Financial Strategy Focused on Creating Long-Term Shareholder Value
29 FINANCIAL STRATEGY FOCUSED ON CREATING LONG-TERM SHAREHOLDER VALUE 29 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 Inves