Tidewater Inc. · NYSE:TDW
Tidewater — Capital One Southcoast Energy Conference (December 2007)
35 slides from Tidewater's conference presentation, Dec 4, 2007
Slide 1: Global Momentum: Capital One Southcoast Energy Conference
TIDEWATER December 4, 2007 Exhibit 99.1 Capital One Southcoast Energy Conference Capital One Southcoast Energy Conference December 4, 2007 GLOBAL MOMENTUM GLOBAL MOMENTUM Dean E. Taylor - Dean E. Taylor - Chairman, President & CEO Chairman, President & CEO Joseph M. Bennett - Joseph M. Bennett - Sr.
Slide 2: Forward-Looking Statements
TIDEWATER 2 601 Poydras Street, Suite 1900 New Orleans, LA 70130 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 l
Slide 3: Our Workplace
TIDEWATER 3 OUR WORKPLACE OUR WORKPLACE
Slide 4: Safety Record Rivals Leading Companies
TIDEWATER 4 0.00 0.25 0.50 0.75 1.00 Total Recordable Incident Rates 2001 2002 2003 2004 2005 2006 Calendar Years TIDEWATER DOW CHEMICAL DUPONT EXXON/MOBIL BP SAFETY RECORD RIVALS SAFETY RECORD RIVALS LEADING COMPANIES LEADING COMPANIES
Slide 5: Tidewater Today
TIDEWATER 5 Safety record rivals leading companies International presence driving earnings Using cash position to grow industry’s largest new fleet One of the strongest balance sheets of the OSX Authority to repurchase common shares One of the highest dividend yields in the OSX TIDEWATER TODAY TIDEW
Slide 6: Tidewater Tomorrow
TIDEWATER 6 Maintain financial strength Grow international market share Renew the fleet in a disciplined way Push day rates and utilization to grow profits and cash flow Generate solid earnings across market cycles Right acquisitions, right price, right time TIDEWATER TOMORROW TIDEWATER TOMORROW Mai
Slide 7: Why a Positive Outlook?
TIDEWATER 7 Favorable commodity pricing E&P spending up (Lehman mid year report up by 12.8%) Offshore rig count up New rig construction Largest new fleet in the industry International scope of operations Continued strong demand in virtually all areas of operation WHY A POSITIVE OUTLOOK? Favorable co
Slide 8: International Operations
TIDEWATER 8 The most internationally diverse company in the industry Five decades of international experience Continuing to grow international market share Improving vessel utilization and dayrates for earnings growth During 9/30/07 quarter, 85% of revenue & 91% of profit came from International ope
Slide 9: Superior Operating Capabilities Drive Our Competitive Advantage
TIDEWATER 9 – Safety-oriented culture – Deep knowledge of customer needs – Worldwide market presence (e.g., “our people on the ground” in every market) – Long-term relationships with major operators (NOC’s, IOC’s and independents) – Most new vessels in industry – Wide range of equipment types – “Lea
Slide 10: A Look Back: Tidewater 1997
TIDEWATER 10 Vessel Count By Region 57% International 43% Domestic North America 243 (43%) Central/South America 84 (15%) West Africa 125 (22%) Europe/M.E. 75 (14%) Far East 32 (6%) TIDEWATER 1997 A LOOK BACK
Slide 11: Tidewater Today: International Operations Driving Earnings
TIDEWATER 11 88% International 12% Domestic Active Vessel Count By Region (excludes stacked vessels) North America 43 (12%) Central/South America 101 (28%) West Africa 139 (38%) Far East 46 (12%) Europe/M.E. 38 (10%) TIDEWATER TODAY INTERNATIONAL OPERATIONS DRIVING EARNINGS
Slide 12: International Vessel Dayrates
TIDEWATER 12 0% 10% 20% 30% 40% 50% Fiscal 2005 Fiscal 2006 Fiscal 2007 Total Growth Percentage From FY’ 04 through 9/30/07 – Total Growth 64% INTERNATIONAL VESSEL INTERNATIONAL VESSEL DAYRATES DAYRATES Total Growth Percentage From FY’ 04 through 9/30/07 – Total Growth 64%
Slide 13: Using Cash Position to Grow Industry's Largest New Fleet
TIDEWATER 13 Estimated annual commitment of $300-$500 million to continue fleet renewal Expected to be funded through internal cash flow generation CapEx of $235 million in Fiscal 2007 and $216 million in six months ended 9/30/07 Prudent approach to expansion/acquisition opportunities We Continuousl
Slide 14: Largest New Fleet in the Industry
TIDEWATER 14 $1,011m 60 PSV’s $2,369m (2) 179 TOTALS: (1) $267m 61 Crewboats & Tugs $1,091m 58 AHTS Cost Vessel Count (1) Includes vessels added to the fleet financed by bareboat charter. (2) $1,713m funded to date. *Excludes ENSCO fleet acquisition effected April 1, 2003. Vessel Commitments Jan. ’0
Slide 15: Slide 15
Slide 16: Global Vessel Construction
TIDEWATER 16 7 2 14 14 4 9 GLOBAL VESSEL CONSTRUCTION GLOBAL VESSEL CONSTRUCTION Where our 50 vessels are being built Where our 50 vessels are being built
Slide 17: Future Vessel Deliveries
TIDEWATER FUTURE VESSEL DELIVERIES FUTURE VESSEL DELIVERIES 8 delivered 8 delivered In FY2007 In FY2007 21 in FY2008 21 in FY2008 (8 already delivered) (8 already delivered) 18 in FY2009 18 in FY2009 18 in FY2010 18 in FY2010 and and 1 in FY2011 1 in FY2011
Slide 18: Largest New Fleet: Fleet Age and Profit Contribution
TIDEWATER 18 Fiscal 2007 Profit Contribution Average Age Vessel Count Profit Contribution Average Age Vessel Count 48% 5 105 0% -- 0 Vessels built or acquired since January 2000 52% 25 321 100% 19 509 Vessels built prior to January 2000 Fiscal 2000 Fleet Age and Profit Contribution Approximately 53%
Slide 19: Out With the Old – In With the New
TIDEWATER 19 0 100 200 300 400 Active Fleet Disposition * Net vessels added to the fleet since January 2000, including 50 vessels under construction at 9/30/07. * Since 4/01/05, 28 vessels have been scrapped and 107 have been sold. * Total fleet count excludes 51 stacked vessels. Out With the Old –
Slide 20: Vessel Acquisition Alternatives
TIDEWATER 20 Considerations: Usually one-off purchases, often to match specific client needs Immediate delivery Entry price at “full” market rate May limit overall capacity Considerations: Built to Tidewater quality standards 18 + months to delivery Potential shipyard backlog Contract terms (e.g., f
Slide 21: Considerations in Designing Our Optimal Vessel Mix
TIDEWATER 21 Custom/ Specialized Standardized Small Ultra big Renew existing Expand to niche markets Drilling, production Subsea, main- tenance, LNG etc. Cycle timers Invest across cycle *Arrows are illustrative of Tidewater’s current views; they should not be interpreted as excluding other points o
Slide 22: One of the Strongest Balance Sheets of the OSX
TIDEWATER 22 $1,910 $1,883 Stockholders’ Equity $300 $300 Long-term Debt* $321 $394 Cash September 2007 March 2007 Further Proof of Our Discipline and Sound Business Strategy (in Millions) * Excludes $21.9 million at March 2007, and $53.5 million at September 2007, of total capitalized lease obligat
Slide 23: Selected Financial Highlights
TIDEWATER 23 Six Months Ended $3.08* $3.11 Earnings Per Share $175,640* $174,008 Net Earnings $216,896 $220,471 Net Cash from Operations $128,235 $216,453 Capital Expenditures $543,799 $624,528 Revenues 9/30/06 9/30/07 (in Thousands, Except Per Share Data) * Includes $17.2 million ($.31 per common s
Slide 24: Significant Earnings Growth
TIDEWATER 24 $0 $50 $100 $150 $200 $250 $300 $350 Fiscal 2004 Fiscal 2005 Fiscal 2006 78% Three-Year Compounded Annual Earnings Growth Rate $59M $101M $193M $336M ** Net earnings in Fiscal 2004 is exclusive of the $17.2 million after tax impairment charge. Net earnings in Fiscal 2006 is exclusive of
Slide 25: Earnings per share and new vessel contribution
TIDEWATER 25 Fiscal 20 30% 95 $1.78 2005 19 24% 66 $.73 2004 19 – – $1.37 2000 20 48% 109 $5.94 (5) 2007 128 101 Active New Vessels (2) $6.30 (1) $3.33 (4) E.P.S ? 44% New Vessel Profit Contribution 19 20 Fleet Average Age (years) (3) 2008 2006 (1) First Call consensus estimates as of November 5, 20
Slide 26: Share Repurchase Program
TIDEWATER 26 Authority to repurchase up to $200 million in common stock Continue to purchase shares on an opportunistic basis Repurchased 950,000 shares at an average price of $64.27 per share during quarter ended 9/30/07 Repurchased 2,560,500 shares at an average price of $60.17 per share during pr
Slide 27: One of the Highest Dividend Yields in the OSX
TIDEWATER 27 2.0% 1.5% 1.0% 0.5% 0.0% Global Santa Fe 1.1% 1.0% 1.1% Rowan Halliburton 0.8% 0.8% 0.7% 0.7% 0.3% Schlumberger BJ Services Smith International Baker Hughes Noble Corp 1.2% ONE OF THE HIGHEST DIVIDEND ONE OF THE HIGHEST DIVIDEND YIELDS IN THE OSX YIELDS IN THE OSX (as of November 19, 20
Slide 28: Strategies Are Pursued to Support Long-Term Goals
TIDEWATER 28 Renew Fleet Maintain Financial Strength Deliver Results Consistently distribute cash to owners through dividends and repurchases Distribution Consider cycle risk in designing optimal capital structure; ensure sustainability through down cycles Capital structure Acquire across the cycle;
Slide 29: Global Momentum: Capital One Southcoast Energy Conference
TIDEWATER December 4, 2007 Capital One Southcoast Energy Conference Capital One Southcoast Energy Conference December 4, 2007 GLOBAL MOMENTUM GLOBAL MOMENTUM Dean E. Taylor - Dean E. Taylor - Chairman, President & CEO Chairman, President & CEO Joseph M. Bennett - Joseph M. Bennett - Sr. V.P., Princi
Slide 30: Appendix
TIDEWATER 30 APPENDIX APPENDIX
Slide 31: International Vessels: Dayrates and Utilization
TIDEWATER 31 $100 change in dayrate = $10.3M in revenue 1% change in utilization = $12.9M in revenue 9/04 12/04 3/05 6/05 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07 9/07 * Dayrate and utilization information is for all classes of vessels operating international. INTERNATIONAL VESSELS INTERNATIONAL VE
Slide 32: International Vessels Dayrates
TIDEWATER 32 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 $13,000 $14,000 $15,000 9/04 12/04 3/05 6/05 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07 9/07 * Dayrate information is for all classes of vessels operating international. Remaining Vessels New Vessels INTERNATIONAL V
Slide 33: Domestic Vessel Dayrates
TIDEWATER 33 0% 20% 40% 60% 80% 100% 120% 140% Fiscal 2005 Fiscal 2006 Fiscal 2007 Total Growth Percentage 125% Total Growth since FY’04 DOMESTIC VESSEL DAYRATES DOMESTIC VESSEL DAYRATES Total Growth Percentage 125% Total Growth since FY’04
Slide 34: Domestic Vessels: Dayrates and Utilization
TIDEWATER 34 $100 change in dayrate = $1.4M in revenue 1% change in utilization = $2.5M in revenue 9/04 12/04 3/05 6/05 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07 9/07 * Dayrate and utilization information is for all classes of vessels operating in the U.S. DOMESTIC VESSELS DOMESTIC VESSELS Dayrates
Slide 35: Domestic Vessel Dayrates
TIDEWATER 35 $3,000 $5,000 $7,000 $9,000 $11,000 $13,000 $15,000 9/04 12/04 3/05 6/05 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07 9/07 * Dayrate information is for all classes of vessels operating in the U.S. Remaining Vessels New Vessels DOMESTIC VESSEL DAYRATES DOMESTIC VESSEL DAYRATES
Tidewater — Capital One Southcoast Energy Conference (December 2007) on 6ix