Tidewater Inc. · NYSE:TDW
Tidewater — Johnson Rice & Company Energy Conference 2010
34 slides from Tidewater's conference presentation, Oct 5, 2010
Slide 1: Johnson Rice & Company Energy Conference
Johnson Rice & Company Energy Conference October 5, 2010 Dean E. Taylor Chairman, President and Chief Executive Officer Joseph M. Bennett Executive Vice President and Chief Investor Relations Officer
Slide 2: Forward-Looking Statements
FORWARD--LOOKING STATEMENTS FORWARD 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 information and are forward looking. The actual achievemen
Slide 3: Key Takeaways
KEY TAKEAWAYS Culture of safety & operating excellence History of earnings growth and solid returns World’s largest g and newest fleet provides p basis for continued earnings growth Strong balance sheet allows us to act upon available opportunities 3
Slide 4: Safety – A Top Priority
SAFETY — A TOP PRIORITY oe ~ e* Opeteting safely (otfshoreys Mis WE es a holding a*snake by) itsshe ad wee ed ay 72aeTel g Itesial task a Canitebe turned loose not for a microsecond“or an-accident will.strike without pity.
Slide 5: Safety Record Rivals Leading Companies
SAFETY RECORD RIVALS LEADING COMPANIES Total Recordable Incident Rates 1.00 TIDEWATER DOW CHEMICAL DUPONT EXXON MOBIL 0 75 0.75 0.50 0.25 0.00 2002 2003 2004 2005 2006 2007 2008 2009 Calendar Years 5
Slide 6: Significant Earnings Growth
SIGNIFICANT EARNINGS GROWTH 32% Six-Year Compounded Annual Earnings Growth Rate $7.89 $8.00 $6.39 $5.94 usted EPS ** $5.41 $ $ $6.00 $3.33 $4.00 $1 78 $1.78 Adju $2.00 $1.03 $0.00 Fiscal 2004 Fiscal 2005 Fiscal 2006 Fiscal 2007 Fiscal 2008 Fiscal 2009 Fiscal 2010 Adjusted Return On Avg. Equity 4.3%
Slide 7: The Largest Modern Fleet in the Industry
THE LARGEST MODERN FLEET IN THE INDUSTRY… Vessel Commitments Jan ’00 Jan. 00 – June ‘10 10 Vessel Count Estimated Cost AHTS 86 $1,557m PSV’s PSV s 77 $1 507m $1,507m Crewboats & Tugs 67 $290m TOTALS TOTALS: 230 3 4 (1) $3,354m $3 (1) $2,850m (85%) funded through 6/30/10. At 6/30/10, 177 new vessels
Slide 8: Vessel Deliveries
VESSEL DELIVERIES At 6/30/10, total 230 vessels with 35 a capital cost of $3.354 billion 30 Built Acquired Post 6/30/10 25 Recent Construction/Acq. 20 Commitments 15 10 5 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Fiscal Year Fiscal years 2011-2013 include actual deliveries t
Slide 9: And Our Lead Is Growing
… AND OUR LEAD IS GROWING Vessels Under Construction* As of June 30, 2010 Count AHTS 16 PSV 17 Crew and Tug 2 Total 35 Estimated delivery schedule – CAPX of $366m in remainder of FY ‘11, 20 in remainder of FY ‘11, $137m in FY ‘12 and $1m in FY ‘13 13 in FY ‘12 and 2 thereafter * Includes eleven new
Slide 10: Significant Average Age Improvement
SIGNIFICANT AVERAGE AGE IMPROVEMENT 20 20 17 15 Vessel Avg. Age 10 8 The current average “economic age” of our vessel fleet is ~5.5 ~5 5 years (based upon NBV) 5 0 3/31/06 3/31/07 3/31/08 12/31/08 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 Assumptions: 1) Average 45 vessel disposals per year in fu
Slide 11: Recent Vessel Commitments
RECENT VESSEL COMMITMENTS 26 vessels over five quarters with total capital cost of $525 million 10 9 8 6 6 $179M 5 4 4 $72M $124M 2 $55M 2 $95M 0 9/30/09 Qtr 12/31/09 3/31/10 Qtr 6/30/10 Qtr 9/30/10 Qtr 6 AHTS Qtd 1 MPSV 4 AHTS 6 AHTS 4 PSV’s 1 PSV 3 PSV’s 1 AHTS Amounts depict vessel count and tota
Slide 12: New Private Placement Financing
NEW PRIVATE PLACEMENT FINANCING Senior Unsecured Notes $425 million Average Life to Maturity ~ 9 years Weighted Average Coupon 4.25% $310 million 10/15/10 Closing Dates $115 million 12/30/10 12
Slide 13: Pro Forma Impact of Financing
PRO FORMA IMPACT OF FINANCING J June 30 30, 2010 P Pro F Forma iinfo: f Cash & Cash Equivalents $523 million Total Debt $700 million Shareholders Equity $2,474 million Net Debt / Net Capitalization 7% Total Debt / Capitalization 22% Pro forma liquidity as of 6/30/10 of ~ $975 million, including $450
Slide 14: Selected Financial Highlights
SELECTED FINANCIAL HIGHLIGHTS Quarter Ended $ iin Millions, Milli Except Per Share Data 6/30/10 6/30/09 Revenues $263 $327 Adjusted Net Earnings* $40 $92 Adjusted EPS* EPS $0 77 $0.77 $1 79 $1.79 Net Cash from Operations $53 $70 C it l Expenditures Capital E dit $141 $92 * Adjusted Net Earnings and
Slide 15: Primary Uses of Cash
PRIMARY USES OF CASH CAPX Dividend Share Repurchase CFFO $700 $600 $500 $400 $300 $200 $100 $- 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Over an 11-year period, Tidewater invested $3.2 billion in CAPX ($2.8 billion in the “new” fleet), and d paid id outt $923 million illi through th h d
Slide 16: International Strength
INTERNATIONAL STRENGTH Unique global footprint; 50+ years of Int’l experience Unmatched scale and scope of operations International market opportunities • Growth • Longer contracts • Better utilization • Higher dayrates Solid customer base of NOC NOC’s s and IOC IOC’s s 16
Slide 17: Our Global Footprint
OUR GLOBAL FOOTPRINT Vessel Distribution by Region (excludes stacked vessels – as of 6/30/10) Europe / M.E. 37 (13%) North America 20 (7%) Far East 41 (14%) West Africa 126 (44%) Central/South America 61 (22%) International / U.S. 2010: 93% / 7% 2000: 62% / 38% 17
Slide 18: Vessel Population by Owner
VESSEL POPULATION BY OWNER (Includes AHTS and PSV’s only) Estimated as of Late- Late-July 2010 500 400 287 300 200 119 110 72 65 60 100 5 0 Avg. Tidewater Competitor #1 Competitor #2 Competitor #3 Competitor #4 Competitor # 5 All Others (1,774 total vessels for 300+ owners) Tidewater fleet includes
Slide 19: Current Revenue Mix
CURRENT REVENUE MIX Quality of Customer Base Oth Others 35% Super Majors 41% NOC's 24% Our top 10 customers in Fiscal 2010 (6 Super Majors, 3 NOC’s NOC s and one large independent) accounted for 63% of our revenue 19
Slide 20: Worldwide Fleet Retirements Expected to Exceed New Deliveries
THE WORLDWIDE FLEET - RETIREMENTS EXPECTED TO EXCEED NEW DELIVERIES (Includes AHTS and PSV’s only) Estimated as of Late- Late-July 2010 As of late-July 2010, there are approximately 411 additional AHTS and PSV’s (~16% of the global fleet) under construction. 300 250 Vessels > 25 years old today V) b
Slide 21: Where Could Fiscal 2014 Find Us?
WHERE COULD FISCAL 2014 FIND US? Potential for Earnings g Acceleration This info is not meant to be a prediction of future earnings performance, but simply an indication of earning sensitivities 90.0% ~$9.50 resulting from future fleet vg. Utilization additions and reductions and EPS varying operati
Slide 22: Financial Strategy Focused on Creating Long-Term Shareholder Value
FINANCIAL STRATEGY FOCUSED ON CREATING LONG- LONG-TERM SHAREHOLDER VALUE Deliver Results Maintain EVA-Based Investments Financial Strength On Through-cycle Basis 22
Slide 23: Johnson Rice & Company Energy Conference
Johnson Rice & Company Energy Conference October 5, 2010 Dean E. Taylor Chairman, President and Chief Executive Officer Joseph M. Bennett Executive Vice President and Chief Investor Relations Officer
Slide 24: Appendix
Appendix 24
Slide 25: Recent Accomplishments
RECENT ACCOMPLISHMENTS First full fiscal year without a lost time accident (FY 2010) Respectable earnings & returns in a trough (tough) market Selected acquisitions of choice assets Disciplined disposal of traditional equipment Delivery of 45 new vessels over last two full fiscal years B
Slide 26: Continually Acquiring New and Disposing of Mature Vessels
CONTINUALLY ACQUIRING NEW AND DISPOSING OF MATURE VESSELS (As of 6/30/10) 517 (C) 500 400 320 (B) 420 Sold 300 200 100 212 New Vessels (A) 97 Scrapped 0 Active Fleet Dispositions (A) Net new vessels added to the fleet since January 2000, including 35 vessels under construction at 6/30/10. This new v
Slide 27: Fleet Cash Operating Margins
FLEET CASH OPERATING MARGINS $700 Total Fleet Operating Margin % 60% $600 51.9% 49.1% 46.8% 46.5% 54.6% 50% MARGIN (in millions) $500 51.3% 38.6% 36.9% %) OPERATIING MARGIN (% 41.9% 38.7% 40% 37.6% $400 New Vessels 30% OPERATING M $300 20% $200 10% $100 Traditional Vessels $0 2000 2001 2002 2003 200
Slide 28: International Vessels
INTERNATIONAL VESSELS Dayrates and Utilization D Dayrate t 90% $14,000 80% $12,000 $10,000 70% Utilization $8,000 60% $6 000 $6,000 50% $4,000 6/07 12/07 6/08 12/08 6/09 12/09 6/10 $100 change in dayrate = $7.8M in revenue 1% change in utilization = $15.4M in revenue * Dayrate and utilization inform
Slide 29: International Vessel Dayrates
INTERNATIONAL VESSEL DAYRATES $19,000 New Vessels $17,000 $15,000 $13,000 $11,000 Traditional Vessels $9,000 $7 000 $7,000 $5,000 $3,000 06/07 12/07 06/08 12/08 06/09 12/09 06/10 * Dayrate and utilization information is for all classes of vessels operating international 29
Slide 30: Domestic Vessels
DOMESTIC VESSELS Dayrates and Utilization 90% $18,000 80% Dayrate $16,000 70% $14,000 $12,000 60% $10,000 $ 0,000 50% Utilization $8,000 40% $6,000 30% $4 000 $4,000 6/07 12/07 6/08 12/08 6/09 12/09 6/10 * Dayrate and utilization information is for all classes of vessels operating in the U.S. 30
Slide 31: Domestic Vessel Dayrates
DOMESTIC VESSEL DAYRATES $23 000 $23,000 $21,000 $19,000 $17 000 $17,000 New Vessels $15,000 $13,000 $11 000 $11,000 $9,000 $7,000 Traditional Vessels $5,000 $3,000 06/07 12/07 06/08 12/08 06/09 12/09 06/10 * Dayrate and utilization information is for all classes of vessels operating in the U.S. 31
Slide 32: Working Rig Counts
WORKING RIG COUNTS “Peak to Present” Jackups Semis Drillships Total June 2008 379 145 30 554 (Peak) Late-April 2010 323 150 46 519 (pre-Horizon) Late-July 2010 308 142 38 488 (post-Horizon) GOM accounts for 35 of the 71 working jackup count variance from June 2008 (Peak) to July 2010 (post-Horizon
Slide 33: Rigs Contracted by Our Top 10 Customers
RIGS CONTRACTED BY OUR TOP 10 CUSTOMERS (Estimated as of Late Late--July 2010) Jackups Floater Rigs (308 Working Rigs) (180 Working Rigs) Top 10 customers 76 Top 10 Customers 88 Other Operators 92 Other Operators 232 Tidewater’s top 10 customers contract nearly 25% of the working worldwide jackup fl
Slide 34: Returns vs the Market: Five Year Stockholder Return
RETURNS vs the MARKET FIVE YEAR STOCKHOLDER RETURN 200% 150% 100% OSX 52% 50% TDW 36% DJIA 16% 0% S&P 500 9% -50% Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 TDW DJIA S&P500 OSX 34
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