Tidewater Inc. · NYSE:TDW
Tidewater — 20th Annual Burkenroad Reports Investment Conference (April 2016)
28 slides from Tidewater's conference presentation, Apr 28, 2016
Slide 1: 20th Annual Burkenroad Reports Investment Conference
20th Annual BURKENROAD REPORTS Investment Conference April 22, 2016 Joseph M. Bennett Executive Vice President and Chief Investor Relations Officer Exhibit 99.1
Slide 2: 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 statements set forth in this presentation provide other than historical information and are forward looking. The actual achievement of any
Slide 3: Strategy and Focus in a Challenged Market, and Results
Providing safe, efficient and compliant operations – TRIR this past fiscal year was lowest in company history New fleet comprised of vessels that service all water depths – 199 active vessels at 12/31/15 with 7.9 year average age. “Smart stacking” vessels (70 at 12/31/15). Geographic diversity – Ves
Slide 4: What Tidewater Will NOT Do
What Tidewater Will NOT Do 20th Annual BURKENROAD REPORTS Investment Conference 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 vess
Slide 5: Stop Work Obligation
Stop Work Obligation Safety performance is 25% of mgt. incentive comp Safe Operations is Priority #1 20th Annual BURKENROAD REPORTS Investment Conference It's a task that can't be turned loose not for a microsecond or an accident will strike without pity. Operating safely offshore is like holding a
Slide 6: Rig Activity Levels Drive OSV Demand
Rig Activity Levels Drive OSV Demand 20th Annual BURKENROAD REPORTS Investment Conference Working Rigs Source: IHS-Petrodata Note: 33 “Other” rigs, along with the Jackups and Floaters, provide a total working rig count of 501 in April 2016. 319 149 Jackups Floaters
Slide 7: Tidewater's Active Fleet Versus the Worldwide OSV Fleet
20th Annual BURKENROAD REPORTS Investment Conference Number of Vessels Year Built Deepwater vessels Towing Supply/Supply Other vessels 190 “New” vessels – 7.1 avg yrs 9 “Traditional” vessels – 25.2 avg yrs (only 1 OSV) As of April 2016, there are approximately 349 additional AHTS and PSV’s (~10% of
Slide 8: Vessel Population by Owner
Vessel Population by Owner (AHTS and PSVs only) Estimated as of April 2016 20th Annual BURKENROAD REPORTS Investment Conference Tidewater Competitor #2 Competitor #3 Competitor #4 Competitor # 5 Competitor #1 Avg. All Others (~2,652 total vessels for 400+ owners) Source: IHS-Petrodata and Tidewater
Slide 9: Geographic Diversity – Active Vessel Count by Region
Geographic Diversity – Active Vessel Count by Region (Excludes stacked vessels – as of 12/31/15) 20th Annual BURKENROAD REPORTS Investment Conference Americas 50 vessels (25%) SS Africa/Europe 93 vessels (47%) MENA 40 vessels (20%) Asia/Pac 16 vessels (8%) 70 additional Tidewater vessels were stacke
Slide 10: Staying Close to our Customers – Strong Customer Base
Staying Close to our Customers – Strong Customer Base Current Revenue Mix 20th Annual BURKENROAD REPORTS Investment Conference 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 activit
Slide 11: The Largest Modern OSV Fleet in the Industry
20th Annual BURKENROAD REPORTS Investment Conference New Vessel Count (1) (2) Net Book Value Average NBV per Vessel Deepwater PSVs 88 $1,847m $21.0m Deepwater AHTSs 12 $284m $23.6m Towing Supply/Supply 106 $1,064m $10.0m Other 40 $79m $2.0m TOTALS: 246 $3,274m $13.3m . “New Vessels” are defined as v
Slide 12: Our Remaining Construction Backlog
Our Remaining Construction Backlog 20th Annual BURKENROAD REPORTS Investment Conference Count Deepwater PSVs 8 Deepwater AHTSs - Towing Supply/Supply 1 Other - Total 9 Vessels Under Construction As of December 31, 2015 (excludes vessels under option*) Estimated delivery schedule – 3 remaining in FY
Slide 13: CapEx is Decreasing from Recent High Levels
CapEx is Decreasing from Recent High Levels 20th Annual BURKENROAD REPORTS Investment Conference Amounts in orange in Fiscal 2016 , 2017 and 2018 represent future expected CapEx on the 9 vessels under construction as of 12/31/2015, totaling ~$107m. If options are not exercised, net CapEx totals ~$64
Slide 14: Solid Balance Sheet and Financial Flexibility
Solid Balance Sheet and Financial Flexibility Our Financial Position Provides Us Strategic Optionality 20th Annual BURKENROAD REPORTS Investment Conference As of December 31, 2015 Cash & Cash Equivalents $48 million Total Debt $1,452 million Shareholders Equity $2,370 million Net Debt / Net Capitali
Slide 15: Debt Maturities and Covenants as of 12/31/15
Debt Maturities and Covenants as of 12/31/15 Maturities Limited for Several Years 20th Annual BURKENROAD REPORTS Investment Conference Fiscal Year Debt Maturity (in $millions) Current Debt Covenants: Debt/Total Capitalization Ratio of not greater than 55% EBITDA/Interest coverage of not less than 3.
Slide 16: Tidewater's Long-Term Strategy
Tidewater’s Long-Term Strategy 20th Annual BURKENROAD REPORTS Investment Conference 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
Slide 17: Houston, Texas and New Orleans, Louisiana offices
HOUSTON, TEXAS Tidewater Marine, L.L.C. 6002 Rogerdale Road Suite 600 Houston, Texas 77072-1655 P: +1 713 470 5300 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 20th Annual BURKENRO
Slide 18: Drivers of our Business - A View at Various Points in a Cycle
Drivers of our Business - “A View at Various Points in a Cycle” 20th Annual BURKENROAD REPORTS Investment Conference July 2008 January 2011 April 2016 Working Rigs 603 538 501 Rigs Under Construction 186 118 197 OSV Global Population 2,033 2,599 3,425 OSV’s Under Construction 736 367 349 OSV/Rig Rat
Slide 19: A New Fleet that Services All Water Depths
A New Fleet that Services All Water Depths (Excludes stacked vessels – as of 12/31/15) 20th Annual BURKENROAD REPORTS Investment Conference Americas SSAE MENA Asia/Pac Vessel count info is as of 12/31/2015, and includes leased vessels. Avg NBV excludes the impact of leased vessels which have no NBV.
Slide 20: Fleet Renewal & Expansion Largely Funded by CFFO
Fleet Renewal & Expansion Largely Funded by CFFO 20th Annual BURKENROAD REPORTS Investment Conference Over a 16-year period, Tidewater has invested ~$5.5 billion in CapEx, and paid out ~$1.4 billion through dividends and share repurchases. Over the same period, CFFO and proceeds from dispositions we
Slide 21: History of Solid Earnings and Returns on a Through-Cycle Basis
History of Solid Earnings and Returns on a Through-Cycle Basis 20th Annual BURKENROAD REPORTS Investment Conference Adjusted EPS ** Adjusted Return On Avg. Equity 4.3% 7.2% 12.4% 18.9% 18.3% 19.5% 11.4% 5.0% 4.3% 5.9% 7.0% 6.3% Adjusted EPS** ** EPS in Fiscal 2004 is exclusive of the $.30 per share
Slide 22: Active Vessel Dayrates & Utilization by Segment
Active Vessel Dayrates & Utilization by Segment 20th Annual BURKENROAD REPORTS Investment Conference Avg. Dayrate Avg. Utilization Utilization stats exclude stacked vessels.
Slide 23: New Vessel Trends by Vessel Type: Deepwater PSVs
New Vessel Trends by Vessel Type Deepwater PSVs 20th Annual BURKENROAD REPORTS Investment Conference Q3 Fiscal 2016 Avg Day Rate: $21,746 Utilization: 51.4% $90 million, or 43%, of Vessel Revenue in Q3 Fiscal 2016
Slide 24: New Vessel Trends by Vessel Type: Deepwater AHTS
New Vessel Trends by Vessel Type Deepwater AHTS 20th Annual BURKENROAD REPORTS Investment Conference Q3 Fiscal 2016 Avg Day Rate: $26,879 Utilization: 69.6% $21 million, or 10%, of Vessel Revenue in Q3 Fiscal 2016
Slide 25: New Vessel Trends by Vessel Type: Towing Supply/Supply Vessels
New Vessel Trends by Vessel Type Towing Supply/Supply Vessels 20th Annual BURKENROAD REPORTS Investment Conference Q3 Fiscal 2016 Avg Day Rate: $12,962 Utilization: 64.4% $81 million, or 38%, of Vessel Revenue in Q3 Fiscal 2016
Slide 26: Vessel Revenue and Vessel Operating Margin Fiscal 2008-2016
Vessel Revenue and Vessel Operating Margin Fiscal 2008-2016 20th Annual BURKENROAD REPORTS Investment Conference Note: Vessel operating margin is defined as vessel revenue less vessel operating expenses Prior peak period (FY2009) averaged quarterly revenue of $339M, quarterly operating margin of $17
Slide 27: Historical Vessel Cash Operating Margins
Historical Vessel Cash Operating Margins 20th Annual BURKENROAD REPORTS Investment Conference Vessel Cash Operating Margin ($) Vessel Cash Operating Margin (%) $88 million Vessel Margin in Q3 FY2016 (96% from New Vessels) Q3 FY2016 Vessel Margin: 41%
Slide 28: Tidewater's Subsea Business
Tidewater’s Subsea Business 20th Annual BURKENROAD REPORTS Investment Conference Eight work-class ROVs in current fleet Commercial operations underway globally ROV capabilities generating potential for OSV pull through
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