Tidewater Inc. · NYSE:TDW
Tidewater — Cowen Energy & Natural Resources Conference 2017
25 slides from Tidewater's conference presentation, Dec 4, 2017
Slide 1: Cowen Energy & Natural Resources
Cowen Energy & Natural Resources Quinn Fanning Executive VP and Chief Financial Officer Jason Stanley Director, Investor Relations December 4, 2017
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: Tidewater Profile
Tidewater Profile Founded in 1955 – Designed the first OSV as we know it today Financial restructuring completed July 31, 2017 NYSE-traded Securities (with 12/1/17 closing prices): • Common Shares – TDW $26.67 • Series A Warrants – TDW WS.A $2.05 • Series B Warrants – TDW WS.B $2.00 9/30/17 Balance
Slide 4: Dealing with a Challenging Market
Dealing with a Challenging Market Safety Leadership Trusted Partner • TRIR in FY2017 lower than last five years’ Committed to Compliance • 60+ years experience in global OSV market avg. • Highly experienced management team • No LTAs in FY2016 and FY2017 Proactive Cost Control Global Footprint • Q3 2
Slide 5: The New Tidewater - A Solid Foundation with Many Strengths
The New Tidewater - A Solid Foundation with Many Strengths Unique Financial strength • Zero net debt post-restructuring • Covenant holiday for all EBITDA-based covenants through period ending June 30, 2019 • Returned 16 leased vessels (average age 12 yrs) to owners • Reduced interest and vessel leas
Slide 6: Committed to Safety Leadership
Committed to Safety Leadership Total Recordable Incident Rates CY 2005-2016 (per 200,000 Man Hours) TRIR = Sum of LTA’s and Recordables x 200,000 divided by Man Hours Worked 0.5 0.5 0.60 0.90 1.0 0.0 1.0 0.0 0.50 0.80 0.15 0.14 10 year average 5 year average 0.70 0.40 0.60 0.50 0.30 0.40 0.20 0.30 0
Slide 7: Market Outlook
Calendar Year Average Market Outlook 2017 2018 2019 Consensus – Brent $53.00 $56.75 $61.00 IHS - Brent $50.90 $48.38 Not Available Oil Price Outlook Rystad - Brent $52.00 $57.00 $62.00 $130 120 110 100 90 80 70 60 50 40 30 Apr-10 Sep-11 Feb-13 Jun-14 Nov-15 Apr-17 Aug-18 Jan-20 May-21 Historical - W
Slide 8: Market Drivers
Market Drivers Working Offshore Rigs Overall working rig count down ~40% from 450 421 2H 2014 peak to 418 current working rigs 400 Consensus outlook assumes slow recovery in jackup and floater market in 2H 2017 and 350 Jackups 1H18, respectively 300 Consensus outlook suggests ~ 500-550 283 257
Slide 9: OSV Business Drivers - OSV/Rig Ratio
OSV Business Drivers – Where have we been and where do we go from here? Market Equilibrium Requires an Increase in Demand and a Reduction in Supply 4,000 9.00 1,000 vessels 8.00 +15 years old 3,500 Working Rigs 6.9 3,000 Without ~600 7.00 150 New Vessel OSV Global Population vessels 25+ yrs old Deli
Slide 10: OSV Supply & Demand
OSV Supply & Demand OSV Supply, Demand and Fleet Utilization Rig Support Demand Production Support Demand Source: Clarksons Platou Securities AS (May 2017) (*includes PSVs >50m LOA and >=1000 dwt + AHTS 4-10k bhp) Cowen Energy & Natural Resources Conference | ©2017 Tidewater Inc. 10
Slide 11: Tidewater's Active Fleet vs. Worldwide OSV Fleet
Tidewater’s Active Fleet vs. Worldwide OSV Fleet Tidewater’s Active Fleet Worldwide OSV Fleet As of September 30, 2017 Estimated as of November 2017 30 350 146 8.1 300 3,500 17% 29% 25 Vessels Years Avg Approx. Vessels in Vessels Est. to be Vessels Est. to be Age the Global Fleet 25+ Years Old 15+ Y
Slide 12: Global OSV Leader
Revenue Mix Global OSV Leader 146 total active vessels with average vessel age of 8.1 years. Super Others Majors Production 33% Support Drilling 31% Support 40% 60% NOCs 36% Europe & Africa Our top 10 customers in Fiscal 2017 (3 Super Majors, 4 NOCs, Active Fleet and 3 Other) accounted for 75% of ou
Slide 13: Size and Scope of Operations Matter
Size and Scope of Operations Matter 300 207 200 187 163 AHTS and PSVs only, 118 as of November 2017 100 68 68 60 59 53 50 44 5 0 Bourbon Tidewater Chouest SolstadFarstad Swire Gulfmark Seacor Hornbeck Topaz Harvey Gulf Maersk Avg. All Others All Others (~2,400 total vessels for 400+ owners) Source:
Slide 14: Solid Financial Foundation is Key in a Challenging Market
Solid Financial Foundation is Key in a Challenging Market September 30, 2017 Balance Sheet Summary Cash & Equiv.: Total Debt: Book Equity: >$460 million $451 million $1,041 million Debt Maturity: Total Debt / Cap: Net Debt/Net Cap: A. ~$350 million senior secured notes due 2022 30% 0% B. ~$90 millio
Slide 15: Unique Financial Position in the OSV Industry - Highest Equity Market Cap
Unique Financial Position in the OSV Industry – Highest Equity Market Cap ($mm) 1,000 900 800 700 600 500 400 $815 $654 300 $447 200 $329 100 $236 $224 $217 $172 $133 $46 $31 $29 $86 $78 $55 -- (1) (1) Mid-point of $350m post-emergence enterprise valuation as per Gulfmark disclosure statement dated
Slide 16: Unique Financial Position in the OSV Industry - Lowest Leverage
Unique Financial Position in the OSV Industry – Lowest Leverage (% of Net Capitalization) Market Cap Net Debt 100% 6% 80% 38% 41% 53% 62% 66% 71% 60% 85% 87% 90% 90% 93% 94% 94% 100% 94% 40% 62% 59% 47% 20% 38% 34% 29% 15% 13% 10% 10% 7% 6% 6% -- (1) ~# of OSVs 199 68 26 60 10 30 27 207 29 59 17 9 4
Slide 17: Minimal Future CAPEX - Another Strength
Minimal Future CAPEX – Another Strength Capex (USD $ in millions) ¹ 615 595 474 452 441 ~$4 million 354 357 364 Capex Required as of 9/30/2017 235 194 25 4 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (1) Values presented are on calendar basis Cowen Energy & Natural Resources Conferen
Slide 18: Vessel Revenue & Vessel Operating Margin, Fiscal 2008-2017
Vessel Revenue & Vessel Operating Margin, Fiscal 2008-2017 Prior peak period (2008) averaged quarterly revenue of $334M, quarterly operating margin of $500 $168.6M at 50.4% 54.3% 50.0% $400 51.1% 47.7% 48.5% 44.6% 45.2% 44.4% 42.1% 42.0% 41.2% $300 $300 million Millions 34.2% $200 25.4% $150 million
Slide 19: Fixed Charges
Fixed Charges LTM Vessel Operating Margin: ~$167 million FY18 Run Rate Fixed Charges, excluding CapEx: $~160 million Cash Post-restructuring: >$450 million 400 Post-Restructuring 350 ~$31 million 300 $68 $71 Restructuring Costs ~$6.7 million excluded from G&A Restructuring 250 $48 $28 Costs excluded
Slide 20: Go Forward Strategy
Go Forward Strategy Leadership in safety, compliance and operational excellence Disciplined cost control, focused on near-term cash break-even Protect and preserve strong liquidity position Focused on growth opportunities with SG&A synergies Deliver best-in-class shareholder returns Cowen Energy & N
Slide 21: www.tdw.com
NEW ORLEANS, LOUISIANA HOUSTON, TEXAS Worldwide Headquarters Tidewater Marine, L.L.C. Tidewater Inc. 6002 Rogerdale Road Pan American Life Center Suite 600 601 Poydras Street, Suite 1500 Houston, Texas 77072 www.tdw.com New Orleans, Louisiana 70130 P: +1 713 470 5300 P: +1 504 568 1010
Slide 22: New Vessel Trends by Vessel Type - Deepwater PSVs
New Vessel Trends by Vessel Type – Deepwater PSVs Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size $60,000 300 Q3 2017 Avg Day Rate: $12,157 Utilization: 43.6% $50,000 250 $40,000 200 $30,000 150 $20,000 91 92 92 92 91 100 86 89 88 90 90 80 81 73 75 76 76 77 66 69 62 54 55 57 45 4
Slide 23: New Vessel Trends by Vessel Type - AHTS
New Vessel Trends by Vessel Type – AHTS Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size $60,000 300 Q3 2017 Avg Day Rate: $12,379 Utilization: 24.0% $50,000 250 $40,000 200 $30,000 150 $20,000 100 $10,000 50 8 9 9 11 11 11 11 11 11 11 11 11 11 11 11 11 11 12 12 12 12 12 12 12 12
Slide 24: New Vessel Trends by Vessel Type - Towing Supply / Supply
New Vessel Trends by Vessel Type – Towing Supply / Supply Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size $60,000 300 Q3 2017 Avg Day Rate: $10,295 Utilization: 49.5% $50,000 250 $40,000 200 $30,000 150 104 105 105 105 105 104 105 105 106 107 107 107 107 106 106 105 99 101 101 10
Slide 25: Net Book Value at September 30, 2017
Net Book Value at September 30, 2017 Vessel Count NBV Average Age Avg NBV / Vessel (in millions) (years) (in millions) Deepwater vessels PSVs > 3,800 DWT 42 $ 351.6 9.3 $ 8.4 PSVs < 3,800 DWT 43 $ 175.6 5.8 $ 4.1 Deepwater AHTS 12 $ 66.5 9.4 $ 5.5 97 $ 593.7 7.8 $ 6.1 Towing Supply Vessels 100 $ 234
Tidewater — Cowen Energy & Natural Resources Conference 2017 on 6ix