Tidewater Inc. · NYSE:TDW
Tidewater — 2012 Global Hunter Securities 100 Energy Conference
29 slides from Tidewater's conference presentation, Jun 26, 2012
Slide 1: 2012 Global Hunter Securities 100 Energy Conference
June 26, 2012 2012 Global Hunter Securities 100 Energy Conference Joseph M. Bennett Executive Vice President and Chief Investor Relations Officer
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: Key Takeaways
KEY TAKEAWAYS • Culture of safety & operating excellence • Macro picture improving – stable oil prices, increased E&P spending, improving rig count • History of earnings growth and solid returns • Unmatched scale and scope of operations • World’s largest and newest fleet provides basis for continued
Slide 4: Safety Record Rivals Leading Companies
SAFETY RECORD RIVALS LEADING COMPANIES TOTAL RECORDABLE INCIDENT RATES 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 2002 2003 2004 2005 2006 2007 2008 2009 2010 CALENDAR YEARS TIDEWATER DOW CHEMICAL CHEVRON EXXON/MOBIL 4
Slide 5: Drivers of Our Business
DRIVERS OF OUR BUSINESS “Peak to Present” June 2008 Jan. 2011 May 2012 (Peak) Working Rigs 603 538 611 Rigs Under 186 118 188 Construction OSV Global 2,033 2,599 2,756 Population OSV’s Under 736 367 404 Construction OSV/Rig Ratio 3.37 4.83 4.51 5 Source: ODS-Petrodata and Tidewater
Slide 6: The Worldwide OSV Fleet – Retirements Expected to Exceed New Deliveries
THE WORLDWIDE OSV FLEET – RETIREMENTS EXPECTED TO EXCEED NEW DELIVERIES (Includes AHTS and PSV’s only) Estimated as of May 2012 As of May 2012, there are approximately 404 additional AHTS and PSV’s (~15% of the global fleet) under construction. 300 250 Vessels > 25 years old today Built (AHTS & PSV)
Slide 7: Vessel Population by Owner
VESSEL POPULATION BY OWNER (AHTS and PSV’s only) – Estimated as of May 2012 400 300 254 200 151 108 77 66 65 100 5 0 Avg. Tidewater Competitor #1 Competitor #2 Competitor #3 Competitor #4 Competitor # 5 All Others (1,993 total vessels for Tidewater AHTS and PSV fleet includes 165 vessel additions si
Slide 8: History of Earnings Growth and Solid Through-Cycle Returns
HISTORY OF EARNINGS GROWTH AND SOLID THROUGH-CYCLE RETURNS Adjusted EPS** $7.89 $8.00 $5.94 $6.39 Adjusted EPS ** $6.00 $5.20 $4.00 $3.33 $1.78 $2.40 $2.13 $2.00 $1.03 $0.00 Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal 2004 2005 2006 2007 2008 2009 2010 2011 2012 Adjusted Return On
Slide 9: Our Global Footprint
OUR GLOBAL FOOTPRINT Vessel Distribution by Region (excludes stacked vessels – as of 3/31/12) MENA 35(13%) Asia/Pac 33(13%) SS Africa/Europe Americas 132(50%) 63(24%) In 4Q FY 2012, ~6% of vessels/revenue was generated in U.S. GOM; however, 38 total active U.S.-flagged vessels provide good optionali
Slide 10: The Largest Modern OSV Fleet in the Industry
THE LARGEST MODERN OSV FLEET IN THE INDUSTRY…. Vessel Commitments Jan. ’00 – March ‘12 Vessel Count Estimated Cost AHTS 101 $1,765m PSV’s 91 $1,934m Crewboats & Tugs 71 $301m TOTALS: 263 $4,000m(1) (1) $3,640m (91%) funded through 3/31/12 . At 3/31/12, 215 new vessels were in our fleet with ~5.7 yea
Slide 11: …And More to Come
…. AND MORE TO COME Vessels Under Construction* As of March 31, 2012 Count AHTS 2 PSV 18 Crew and Tug 5 Total 25 Estimated delivery schedule – 13 in FY ‘13, 10 in FY ‘14 and 2 thereafter. CAPX of $220m in FY ‘13, $95m in FY ‘14 and $44m in FY ’15. * Includes 3 new vessel purchase commitments at 3/31
Slide 12: Through-Cycle, EVA-Based Investment; Balance Between Buy and Build
THROUGH-CYCLE, EVA-BASED INVESTMENT; BALANCE BETWEEN “BUY” and “BUILD” Through 3/31/12, vessel 35 commitments include 263 vessels with a capital cost of $4.0 billion 30 # of vessels Built Acquired 25 20 15 10 5 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Fiscal Year
Slide 13: Recent Vessel Commitments
RECENT VESSEL COMMITMENTS 54 vessels over last 2+ years with a total capital cost of ~$1 billion 12 1 PSV 9 AHTS 6 AHTS $139M 10 3 PSV’s # of vessels $179M 8 6 AHTS 4 PSV 1 AHTS $72M 1 AHTS 4 CREW 6 $100M $24M 4 AHTS 4 AHTS 4 PSV $55M $66M $116M 4 1 MPSV 3 PSV $83M 1 PSV 2 PSV’s $96M $101M 2 0 9/30/
Slide 14: Fleet Renewal & Expansion Funded by CFFO Through Fiscal 2012
FLEET RENEWAL & EXPANSION FUNDED BY CFFO THROUGH FISCAL 2012 $ in millions CAPX Dividend Share Repurchase $700 $600 $500 $400 CFFO $300 $200 $100 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Fiscal Year Over a 13-year period, Tidewater has invested $4.1 billion in CapEx($3.6 b
Slide 15: Recent Financings Will Fund Growth at an Attractive Relative Cost
RECENT FINANCINGS WILL FUND GROWTH AT AN ATTRACTIVE RELATIVE COST Private Placement Financings: Senior Unsecured Notes $590 million Average Life to Maturity (as of 3/31/12) ~ 7.9 years Weighted Average Coupon 4.30% Credit Facilities: Term Loan $125 million* Revolving Line of Credit $450 million Rema
Slide 16: Strong Financial Position Provides Additional Strategic Optionality
STRONG FINANCIAL POSITION PROVIDES ADDITIONAL STRATEGIC OPTIONALITY As of March 31, 2012 Cash & Cash Equivalents $321 million Total Debt $950 million Shareholders Equity $2,526 million Net Debt / Net Capitalization 20% Total Debt / Capitalization 27% ~$770 million of pro forma liquidity as of 3/31/1
Slide 17: Where Could Fiscal 2014 Find Us?
WHERE COULD FISCAL 2014 FIND US? Potential for Earnings Acceleration ~$760M This info is not meant to be a EBITDA prediction of future earnings performance, but simply an indication of earning sensitivities 90.0% ~$9.50 resulting from future fleet Avg. Utilization additions and reductions and ~$535M
Slide 18: Financial Strategy Focused on Creating Long-Term Shareholder Value
FINANCIAL STRATEGY FOCUSED ON CREATING LONG-TERM SHAREHOLDER VALUE Deliver Results Maintain EVA-Based Investments Financial Strength On Through-cycle Basis 18
Slide 19: 2012 Global Hunter Securities 100 Energy Conference
June 26, 2012 2012 Global Hunter Securities 100 Energy Conference Joseph M. Bennett Executive Vice President and Chief Investor Relations Officer
Slide 20: Appendix
APPENDIX 20
Slide 21: New Fleet Driving Results
NEW FLEET DRIVING RESULTS Average Fleet Count Vessel Revenue ($) 450 450 400 400 350 350 300 300 250 250 200 200 150 150 100 100 50 50 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY 2009 FY 2010 FY 2011 FY 2012 FY 2009 FY 2010 FY 2011 FY 2012 N
Slide 22: Cyclical Upturn Should Drive Margin Expansion
CYCLICAL UPTURN SHOULD DRIVE MARGIN EXPANSION Vessel Cash Operating Margin ($) Vessel Cash Operating Margin (%) 200 70% 175 60% 150 50% 125 40% 100 30% 75 50 20% 25 10% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY 2009 FY 2010 FY 2011 FY 201
Slide 23: Current Revenue Mix
CURRENT REVENUE MIX Quality of Customer Base Super Majors Others 35% 42% NOC's 23% Our top 10 customers in Fiscal 2012 (4 Super Majors, 3 NOC’s and 3 IOC’s) accounted for 59% of our revenue 23
Slide 24: Rigs Contracted by Our Top Customers
RIGS CONTRACTED BY OUR TOP 10 CUSTOMERS (Estimated as of May 2012) Jackups Floater Rigs (334 Working Rigs) (232 Working Rigs) Top 10 customers Other Operators Top 10 Customers 62 116 116 Other Operators 272 Tidewater’s top 10 customers contract ~19% of the working worldwide jackup fleet and ~50% of
Slide 25: Fleet Cash Operating Margins
FLEET CASH OPERATING MARGINS Traditional Vessels New Vessels $800 $700 $600 $500 ($ millions) $400 $300 $200 $100 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Fiscal Years Cash Oper Margin 38.6% 37.6% 46.5% 41.9% 36.9% 38.7% 49.1% 54.6% 51.9% 51.3% 46.8% 39.3% 39.8% Note: Cash
Slide 26: Recent Financial Results Reflect Cyclical Downturn
RECENT FINANCIAL RESULTS REFLECT CYCLICAL DOWNTURN Twelve Months Ended $ in Millions, Except Per Share Data 3/31/12 3/31/11 Revenues $1,067 $1,055 Net Earnings* $110 $123 EPS* $2.13 $2.40 Net Cash from Operations $222 $264 Capital Expenditures $357 $615 *Fiscal 2012 excludes $22.1 million, or $0.43
Slide 27: Significant Average Age Improvement
SIGNIFICANT AVERAGE AGE IMPROVEMENT 20 20 14 15 Vessel Avg. Age 10 6 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 12/31/14 Assumptions: 1) Average 45 vessel disposals per year in future (versus an average of 50+ vessel dispositions per year over last 3 years). 2)
Slide 28: Vessel Utilization by Segment
VESSEL UTILIZATION BY SEGMENT Americas Asia/Pac MENA Sub Sah Africa 90% 80% Avg. Utilization 70% 60% 50% 40% 30% 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/12 28
Slide 29: Vessel Dayrates by Segment
VESSEL DAYRATES BY SEGMENT Americas Asia/Pac MENA Sub Sah Africa $20,000 $18,000 Average Dayrate $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/12 29
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