Tidewater Inc. · NYSE:TDW
Tidewater — Johnson Rice 2015 Energy Conference
28 slides from Tidewater's conference presentation, Oct 6, 2015
Slide 1: Johnson Rice 2015 Energy Conference
Johnson Rice 2015 Energy Conference September 30, 2015 Joseph M. Bennett Executive Vice President and Chief Investor Relations Officer Exhibit 99.1
Slide 2: Forward-Looking Statements
Johnson Rice 2015 Energy Conference 2 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 l
Slide 3: Tidewater's Strategy & Focus in a Challenging Market
Johnson Rice 2015 Energy Conference 3 Providing safe, efficient and compliant operations New fleet comprised of vessels that service all water depths Geographic diversity Staying close to our customers Prompt, proactive cost-cutting initiatives (“control what we can control”) Reducing CapEx, and ret
Slide 4: Safe Operations is Priority #1
Johnson Rice 2015 Energy Conference 4 Stop Work Obligation Safety performance is 25% of mgt. incentive comp Safe Operations is Priority #1 0.00 0.10 0.20 0.30 0.40 0.50 0.60 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 TOTAL RECORDABLE INCIDENT RATES (per 200,000 Man Hours) TIDEWATER DOW C
Slide 5: Too Many Offshore Rigs, and Activity Levels Drive OSV Demand
Johnson Rice 2015 Energy Conference 5 Too Many Offshore Rigs, and Activity Levels Drive OSV Demand Source: IHS-Petrodata Note: 31 “Other” rigs, along with the Jackups and Floaters, provide a total working rig count of 587 in September 2015. Jackups Floaters Rig CIP Jackups Floaters Other
Slide 6: Drivers of our Business: Peak to Present
Johnson Rice 2015 Energy Conference 6 July 2008 (Peak) Jan. 2011 (Trough) September 2015 Working Rigs 603 538 587 Rigs Under Construction 186 118 209 OSV Global Population 2,033 2,599 3,357 OSV’s Under Construction 736 367 399 OSV/Rig Ratio 3.37 4.83 5.72 (5.04 without ~400 old vessels believed not
Slide 7: Tidewater's Active Fleet
Johnson Rice 2015 Energy Conference 7 Tidewater’s Active Fleet As of June 30, 2015 Year Built Deepwater vessels Towing Supply/Supply Other vessels “New” vessels – 7.4 avg yrs “Traditional” vessels – 27.3 avg yrs (only 4 OSVs)
Slide 8: Vessel Population by Owner
Johnson Rice 2015 Energy Conference 8 Vessel Population by Owner (AHTS and PSVs only) Estimated as of September 2015 Tidewater Competitor #2 Competitor #3 Competitor #4 Competitor # 5 Competitor #1 Avg. All Others (~2,580 total vessels for 400+ owners) Source: IHS-Petrodata and Tidewater
Slide 9: Geographic Diversity – Vessel Count by Region
Johnson Rice 2015 Energy Conference 9 Americas 65 (28%) SS Africa/Europe 103 (44%) MENA 44 (19%) Asia/Pac 22 (9%) Geographic Diversity – Vessel Count by Region (Excludes stacked vessels – as of 6/30/15) 38 additional Tidewater vessels were stacked as of 6/30/15.
Slide 10: Slide 10
Slide 11: Staying Close to our Customers – Strong Customer Base
Johnson Rice 2015 Energy Conference 11 Staying Close to our Customers – Strong Customer Base Current Revenue Mix Super Majors 34% NOC's 33% Others 33% Approximately 60% of our revenue is derived from drilling support activity and 40% from non-drilling related activity, such as support of production
Slide 12: Our Remaining Construction Backlog
Johnson Rice 2015 Energy Conference 12 Count Deepwater PSVs 9 Deepwater AHTSs - Towing Supply/Supply 2 Other - Total 11 Estimated delivery schedule – 9 remaining in FY ’16 and 2 in FY ‘17. CAPX of $104m remaining in FY ‘16 and $42m in FY ‘17. * In September 2015, construction contracts for one Towin
Slide 13: CapEx is Decreasing from Recent High Levels
Johnson Rice 2015 Energy Conference 13 CapEx is Decreasing from Recent High Levels Amounts in Fiscal 2016 and 2017 represent CAPX on the 11 vessels under construction as of 9/24/15. Fiscal 2014 is exclusive of Troms acquisition NOTE: Fiscal 2016 and 2017 estimated CAPX above is exclusive of any refu
Slide 14: Solid Balance Sheet and Financial Flexibility
Johnson Rice 2015 Energy Conference 14 Cash & Cash Equivalents $103 million Total Debt $1,544 million Shareholders Equity $2,451 million Net Debt / Net Capitalization 37% Total Debt / Capitalization 39% Solid Balance Sheet and Financial Flexibility Our Financial Position Provides Us Strategic Option
Slide 15: Debt Maturities and Covenants
Johnson Rice 2015 Energy Conference 15 Debt Maturities and Covenants as of 6/30/15 Maturities Limited for Several Years Debt Covenants: 1) Debt/Total Capitalization Ratio of not greater than 55% 2) EBITDA/Interest coverage of not less than 3.0X Fiscal Year
Slide 16: Return Capital to Shareholders
Johnson Rice 2015 Energy Conference 16 Return Capital to Shareholders Consistent Dividends and Opportunistic Share Repurchases (in millions) Fiscal Years ~6.5% Current Dividend Yield During this 16-year period, $659 million of dividends were paid and $757 million of total stock repurchases were made
Slide 17: Tidewater's Subsea Business
Johnson Rice 2015 Energy Conference 17 Tidewater’s Subsea Business Eight work-class ROVs in current fleet Commercial operations underway with additional opportunities in Americas, SSAE and Asia/Pac ROV capabilities generating potential for OSV pull through
Slide 18: Tidewater's Strategy
Johnson Rice 2015 Energy Conference 18 Tidewater’s Strategy Continue to improve upon stellar safety and compliance programs Stay close to our customers Monitor industry developments to adjust our playbook accordingly - Pro-active cost reduction initiatives - Maintain/protect liquidity Maintain solid
Slide 19: HOUSTON, TEXAS Tidewater Marine, L.L.C. 6002 Rogerdale Road Suite 600 Houston, Texas 77072-1655 P:
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 Johnson Rice 2015 En
Slide 20: The Worldwide OSV Fleet
Johnson Rice 2015 Energy Conference 20 Vessels > 25 years old today The Worldwide OSV Fleet (Includes AHTS and PSVs only) Estimated as of September 2015 As of September 2015, there are approximately 399 additional AHTS and PSV’s (~12% of the global fleet) under construction. Some number of these, we
Slide 21: Fleet Renewal & Expansion Largely Funded by CFFO
Johnson Rice 2015 Energy Conference 21 Fleet Renewal & Expansion Largely Funded by CFFO 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 were ~$4.3 billi
Slide 22: History of Solid Earnings and Returns on a Through-Cycle Basis
Johnson Rice 2015 Energy Conference 22 History of Solid Earnings and Returns on a Through-Cycle Basis ** EPS in Fiscal 2004 is exclusive of the $.30 per share after tax impairment charge. EPS in Fiscal 2006 is exclusive of the $.74 per share after tax gain from the sale of six KMAR vessels. EPS in F
Slide 23: Active Vessel Dayrates & Utilization by Segment
Johnson Rice 2015 Energy Conference 23 Active Vessel Dayrates & Utilization by Segment $6,000 $10,000 $14,000 $18,000 $22,000 $26,000 Americas Asia/Pac MENA Sub Sah Africa/Eur. 60% 70% 80% 90% 100% Utilization stats exclude stacked vessels.
Slide 24: New Vessel Trends by Vessel Type: Deepwater PSVs
Johnson Rice 2015 Energy Conference 24 New Vessel Trends by Vessel Type Deepwater PSVs - $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 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 Q1 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Average Day Rate
Slide 25: New Vessel Trends by Vessel Type: Deepwater AHTS
Johnson Rice 2015 Energy Conference 25 New Vessel Trends by Vessel Type Deepwater AHTS - $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 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 Q1 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Average Day Rate
Slide 26: New Vessel Trends by Vessel Type: Towing Supply/Supply
Johnson Rice 2015 Energy Conference 26 New Vessel Trends by Vessel Type Towing Supply/Supply Vessels 101 102 103 105 105 105 105 - $0 $5,000 $10,000 $15,000 $20,000 $25,000 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 Q1 FY08 FY09 FY10 FY11 FY12 FY1
Slide 27: Vessel Revenue and Vessel Operating Margin
Johnson Rice 2015 Energy Conference 27 Vessel Revenue and Vessel Operating Margin Fiscal 2008-2016 Note: Vessel operating margin is defined as vessel revenue less vessel operating expenses 53.0% 46.7% 56.4% 47.7% 38.0% 41.0% 36.9% 45.0% 44.1% 40.8% 46.3% 43.1% 45.6% 39.9% $- $100 $200 $300 $400 $500
Slide 28: Historical Vessel Cash Operating Margins
Johnson Rice 2015 Energy Conference 28 Historical Vessel Cash Operating Margins Vessel Cash Operating Margin ($) Vessel Cash Operating Margin (%) $119 million Vessel Margin in Q1 FY2016 (98% from New Vessels) Q1 FY2016 Vessel Margin: 40%