Tidewater Inc. · NYSE:TDW
Tidewater — 42nd Annual Howard Weil Energy Conference (March 2014)
30 slides from Tidewater's conference presentation, Mar 28, 2014
Slide 1: 42nd Annual Howard Weil Energy Conference
Exhibit 99.1 Exhibit 42nd Jeffrey President Annual M. 99.1 &Platt CEO Howard Quinn EVPWeil P. & Fanning CFO Energy EVPJoseph Conference & Chief M. Bennett IRO March 24, 2014
Slide 2: Forward-Looking Statements
601accordance TIDEWATER FORWARD-LOOKING In and uncertainties the customers obsolete unsettled political environment, Phone: Web Email: 42ndcontrol are Poydras site Annual connect@tdw.com 504.568.1010 forward risk for address: political in ofcertain Street, countries the that Howard labor the with lo
Slide 3: Key Tidewater Takeaways
Key Tidewater Consistent Largest History Challenged, Solid 42nd Annual balance “NEW” of earnings goal yet Howard sheet Takeaways of still OSV“Best and growth constructive Weil fleet ready in in Energy Class” and the liquidity solid industry, fundamental safety Conference returns allows and operating
Slide 4: Operating Safely is Priority #1
4Operating Safe Safety TOTAL 020.7 0.1 0.2 0.3 0.4 0.5 0.6 CALENDAR TIDEWATER 42nd 003Operations Annual 2004 Record performance RECORDABLE 2005 Howard YEARS DOW Rivals safely is 2006 Priority isCHEMICAL Leading Weil 2007 25% offshore INCIDENT is#1 Energy of 2008 Stop mgt. Companies like 2009 CHEVRON
Slide 5: Working Offshore Rig Trends
4Note: Safe Safety TOTAL 020.7 0.1 0.2 0.3 0.4 0.5 0.6 CALENDAR TIDEWATER 42nd 003 /04 Operations Rigs 300 350 Annual 2004 Jackups 400 414 450 Working Floaters 250 Prior 100 1150 50 Source:Record performance RECORDABLE 7/04 254 peak 44 2005 Howard YEARS DOW Rivals is 2006 Priority ODS-Petrodata “Oth
Slide 6: Drivers of OSV Demand: Rigs and Vessels
Drivers July (Peak) Working Rigs 186 OSV 2,033 OSV’s Population 736 OSV/Rig Construction Source: 42nd What 118 367 2008 Under Annual Global if? 2,599 (Trough) Under of ODS-Petrodata 236 463 830 Rigs Ratio Jan. our 3,088 Howard 2,900 603 Business 2011 3.37 2014 538 3.5 March 4.83 Weil 712 0and “Peak
Slide 7: The Global OSV Fleet Is Aging
The (Includes As 250 300 Built oVessels & 01Number Global Source: 42nd f (AHTS 965ofVessels Worldwide Annual 1970 200 March fleet PSV) ODS-Petrodata 50 AHTs 100 1975 >is2014, Howard 150 25 estimated OSV and 1980 years there PSVs Fleet Weil 1985 old and at are only) today Energy 3,088 1990 Tidewater
Slide 8: Tidewater's Active Fleet by Vessel Age
Tidewater’s As Deepwater 244 25 Year Number of Vessels 42nd 40,35,30,25,15,10,5,0. “Traditional” of“New” Built Annual December vessels vessels Active Howard vessels 31,Towing Fleet –2013 6.0 Weil–avg 26.5 Supply/Supply Energy yrsavgConference yrs Other8 vessels
Slide 9: Vessel Population by Owner
542nd Vessel (AHTS 100 133 200 174 219 300 400 0Avg.75 Population 69 and Tidewater vessels 400+ Source: Annual 67 owners) for PSVs only) by Owner ODS-Petrodata Competitor Howard Estimated Weil #1and as Competitor Energy Tidewaterof #2March Conference 92014 #3 Competitor #4 Competitor # 5 All Others
Slide 10: Our Global Footprint – Vessel Count by Region
Ouraddition, (Excludes SS 23(8%) Asia/Pac 45(17%) MENA Americas 66(25%) In 42nd 3Q Africa/Europe Global Annual FY 2014, 135(50%) stacked Footprint Tidewater Howard ~10% vessels –Weil has of Vessel vessel –currently Energy as Count ofrevenue 12/31/13) Conference under by Region was construction gener
Slide 11: Our Global Footprint – Vessels by Class and Region
Our0312 (Excludes Americas 54 MENA 42 SSAE Vessels 125 New Asia/Pac Deepwater Towing Other 23 Vessel 42nd 10 Global Avg. Annual 9New 0 42 1count Vessels NBV $3.6M 0 $ Supply $1.9M Vessels 2New 6.9m Traditional stacked 31 11 837 Footprint Avg. info $Howard Vessels $$28.1M $19.9M 25.2M Avg. 40NBV 31 4
Slide 12: A Broad Fleet Portfolio
A Broad DWT 5,000-6,000 4,000-4,999 3,000-3,999 <3,000 75 25,000+ 13,500-16,500 Current BHP 7,000-10,000 3,000-6,999 105 Vessel 42nd Towing 12 Deepwater 022 612 Fleet Annual 97 111 Fleet information 6Supply Future 5Portfolio 00CIP AHTS 6PSV CIP 569 15 11 43 Howard 367Fleet 11 065Fleet 6069 20 49 of
Slide 13: The Vessel Fleet Commitments
(1) The Vessel Jan. Deepwater Towing Other TOTALS: Largest ’00 55 Commitments Supply/Supply –~$4.4b $277m December 273 (2) 12/31/13, At 42nd AHTSs PSVs Modern Vessel Annual $5,006m(1) 244 (88%) $5.0m 9712$2,725m count HowardnewOSV ‘13 Average $387m funded and109 WeilVessel Fleet $18.3m $1,617m $32.3
Slide 14: Strong Financial Position Provides Strategic Optionality
Strong As Cash Shareholders Net Total ~$715 42nd of Debt Annual & Debt December million Financial Cash / Net /$1,464 Capitalization Howard Equity Equivalents of Capitalization 31, Position available million 2013 $2,640 WeilProvides $114 36% liquidity Energy million 34% million Conference Strategic a
Slide 15: Limited Debt Maturities for Several Years
Limited millions) $($800 Maturity 2014 $0 Debt Fiscal 42nd in $400 Maturities Annual 2015 Year for $200 $600 2016 Several Howard 2017Years Weil 2018Energy 2019 2020 Conference 2021 2022 15 2023 2024 2025 2026
Slide 16: History of Solid Through-Cycle Returns
History $3.03 $2.13 $2.40 $5.20 $7.89 $6.39 $5.94 $3.33 $1.78 $1.03 $0.00 $2.00 $4.00 $6.00 $8.00 Fiscal Adjusted On ** exclusive litigation Government 2012 42ndEPS Avg. Annual is2013 2004 2005 2006 2007 2008 2009 2010 2011 2012 exclusive in of Equity and EPS** EPS Return of Fiscal Earnings $.37 of
Slide 17: Active Vessel Dayrates and Utilization by Segment
Active Americas Avg $22,000 6/10 Impact Utilization 42nd Ut. 12/10 Annual Vessel ofilization $18,000 Asia/Pac $7.4 stats 6/11 Howard Dayrates million 12/11 exclude Avg $14,000 MENA Dayr. Weil 6/12 of &stacked retroactive $10,000 Utilization Energy Sub 12/12 ate Sah vessels. 6/13 $6,000 Conference Af
Slide 18: New Deepwater PSVs Average Day Rate Trends
New Deepwater Average $60,000 Q3 73 66 55 51 47 43 34 29 25 22 240 Q1 $165 Rate 42nd 75 69 57 54 49 44 38 32 25 23 Fiscal Q2 200 Vessel Annual million, 62 45 40 25 24 Q3$50,000 160 Day 25 2014 Q4 PSVs Trends 28 120 Howard Rate, or Q1 Avg 46%, $40,000 80 Q2 Adjusted by Day 40Q3 Weil of Vessel - Rate:
Slide 19: New Towing Supply/Supply Average Day Rate Trends
New Towing Average $25,000 Q3 101 99 85 81 61 57 51 46 40 250 Q1 $124 Rate 42nd 101 88 83 63 59 54 47 43 Fiscal Q2 102 200 Vessel Annual million, 78 49 39 Q3 103 Supply/Supply $20,000 103 150 Day 68 2014 Q4 93 Trends 103 100 Howard Rate, or Q1 Avg 35%, $15,000 104 50 Q2 Adjusted by Day - Q3 Weil of
Slide 20: Tidewater's New Subsea Business
Tidewater’s 42nd AnnualNew Howard Subsea Weil BusinessTidewater Energy Conference subseaRecent 20 delivery of six work-class remotely operated vehicles (ROV)
Slide 21: Tidewater's Future
•42nd Tidewater’s • Continue Maintain Return Future to deployment Disciplined improve solid Annualcapital Howard Weilupon balance to of stellar cash sheet shareholders Energyand safety through andflexibility tofinancial expand 21compliance vessel dividends Conference ROV and to programs dealfleet wi
Slide 22: 42nd Annual Howard Weil Energy Conference
42nd Annual Jeffrey President M.&Platt CEO Howard Quinn EVPWeil P. & Fanning CFO Energy EVPJoseph Conference & Chief M. Bennett IRO March 24, 2014
Slide 23: Appendix
42nd Annual Howard Weil Energy Conference 23 Appendix
Slide 24: Financial Strategy
Financial Deliver Maintain 42nd Annual Results EVA-Based Strategy Howard Focused Investments Weil Energy on Creating Financial Conference Long-Term Strength 24 Shareholder On Through-cycle Value Basis
Slide 25: Vessels Under Construction
…and Vessels As Deepwater Towing Other Total Estimated 42nd ofAnnual 29 December 1More Under Supply/Supply delivery AHTSs PSVs toHoward Construction* Come 31, 22schedule - 2013 Weil 6 Count Energy – 1 forConference the remainder 25 of FY ’14, 16 in FY ’15 and 12 thereafter. CAPX of $93m for the rema
Slide 26: Fleet Renewal and Expansion Funded by CFFO
$Fleet $700 2000 CFFO Fiscal Over and 42nd in $749 millions Annual aRenewal $600 2001 Year 14-year million, $500 2002 CAPX Howard & period, $400 2003 Expansion respectively. Dividend Weil $300 2004 Tidewater Energy $200 2005 Largely Share $100 2006 has Conference Repurchase Funded invested $0 2008 2
Slide 27: Vessel Revenue and Operating Margin
Total Fiscal Prior Millions $400 $500 56.4% $- 50.0% 46.7% 47.7% 45.0% 41.0% 42.0% 44.1% 38.0% $300 $150 Q1 FY08 Vessel Note: 42ndQ2Annual peak million Revenue Vessel FY09 2008-2014 Revenue 53.0% 46.3% 45.2% 40.8% 36.9% Q3$200 period Q4FY10 operating Howard Q1 $100 and ($) (FY2009) Q2 FY11 Margin Ve
Slide 28: Cyclical Upturn Should Drive Margin Expansion
Cyclical Vessel $200 70% Q1 Q3 $163 42nd Q2 FY2014 60% Annual $175 million Cash Q3Upturn 50% Q4 $150 Vessel Operating Vessel Howard Q1 40% should $125 Q2 Margin: Margin 30% Q3 Weil $100 Margin Drive Q4 20% Energy 45% $75 inQ1 Margin Q3 ($) 10% $50 Q2FY2014 Vessel Conference 0% Q3 $25 Expansion Q4$0
Slide 29: New Deepwater AHTS Average Day Rate Trends
642nd New Deepwater Average $60,000 Q3 9240 5 9 Fiscal Q1 $30 Rate11 200 Q2Vessel 118 5160 $50,000 Day 11 2014 Annual Q3 AHTS Trends 511 5Q4 million, 120 Rate, Avg 11 5Q1 or 580 $40,000 11 Adjusted 5Q2 Howard 8%, by Day 4011 5of Vessel Q3- 11 WeilRate: $30,000 Q411 Average Type 11 $29,141 Energy Q1
Slide 30: Current Quality Customer Mix
342ndtop Current Quality Others Super NOC’s Our Majors 41% 21% of Revenue 10 IOC’s AnnualCustomer customers 38% and Mix Howard1 Base independent) in Fiscal Weil 2013 Energy accounted (4 Super for Conference Majors, 3058% 2ofNOC’s, our revenue
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