Tidewater Inc. · NYSE:TDW
Tidewater — Barclays CEO Energy-Power Conference 2019
30 slides from Tidewater's conference presentation, Sep 5, 2019
Slide 1: Company Overview – Barclays CEO Energy-Power Conference
Company Overview Barclay’s CEO Energy-Power Conference Quintin Kneen Executive Vice President, Chief Financial Officer September 4, 2019
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Tidewater Inc. (the “Company”) notes that certain statements set forth in this Current Report on Form 8-K provide other than historical information and are forward lookin
Slide 3: Tidewater Overview
Tidewater Overview TDW $16.21 Market Cap $673 million Based on 41.6 million shares and $0.001 warrants As of August 29, 2019 market close Founded 1955 Created the industry’s first Offshore Support Vessel Cash & Equiv $383 million Net Debt $52 million Vessel Fleet 223 Distributed across the globe, su
Slide 4: Peer Market Cap & Price Comparison
Peer Market Cap & Price Comparison Source: FactSet, NYSE, Oslo Bors and Company filings as of August 21, 2019 Note: Tidewater market cap based on common stock + Jones Act Warrants for total share count of 41.5 million * YTD 2019 as of August 21, 2019 market close Net Capitalization Equity Market Cap
Slide 5: Global Industry Supply
Source: IHS Petrodata, Tidewater, company disclosures Vessel Count (AHTS & PSVs) as of June 30, 2019 All Others (~2,400 total vessels for 500+ owners) 223 Total Fleet Incl. All Vessel Types 198 OSVs The Largest OSV Owner Globally 1,000 Est. global stacked fleet ~65% out of service for >2 years ~360
Slide 6: The Most Geographically-Diverse OSV Operator
Note: Figures represent Tidewater active vessel fleet at June 30, 2019 Headquarters Area Operations Deepwater Towing/Supply Other The Most Geographically-Diverse OSV Operator Avg. Active Fleet Age 9.4 Years Active Fleet 163 Vessels Utilization 82.3% Utilization 76.0% Utilization 74.7% Active Utiliza
Slide 7: High-Spec OSV Rates are Rising
High-Spec OSV Rates are Rising Source: Clarksons Platou Offshore, Tidewater (May 2019) Barclays CEO Energy-Power Conference | Sept 2019 | ©Tidewater Inc
Slide 8: The North Sea – More Activity & Demand Improvements
The North Sea – More Activity & Demand Improvements Source: Clarksons Platou Securities Rigs Utilization North Sea PSV Utilization by Size April 2019 …as long as reactivations are limited this season North Sea Contracted Floating Rigs 2014 to 2019 Barclays CEO Energy-Power Conference | Sept 2019 | ©
Slide 9: West African Rig Count Driving OSV Demand
West African Rig Count Driving OSV Demand Rigs Utilization Vessels Source: Clarksons Platou Securities Active PSVs and Total Utilization 2014 to 2019 West Africa Rig Count by Type 2014 to 2019 Barclays CEO Energy-Power Conference | Sept 2019 | ©Tidewater Inc
Slide 10: Right-Sizing Our Fleet for Future Demand
Right-Sizing Our Fleet for Future Demand OSV Demolitions, Conversions & Removals from Service PSV Utilization by Vessel Spec Category Source: Clarksons Platou Securities (January 2019), IHS Markit (August 2019) Note: Tidewater Tier 1 vessels defined as higher-specification, recent vintage, marketabl
Slide 11: Vessel Reactivations Under Way for 2019
Vessel Reactivations Under Way for 2019 Avg. Cost for Reactivation per Vessel $1.4 million Approx. Associated Backlog (excl. options) $110 million Approx. Term (excl. options) 26 vessel years 10 Barclays CEO Energy-Power Conference | Sept 2019 | ©Tidewater Inc
Slide 12: Improved Identification of Cost Synergies
Improved Identification of Cost Synergies Pro Forma G&A Profile 7 June 2018 Pro Forma G&A Profile Today Integration progressing extremely well with run-rate annual G&A expected to now approximate $87 million by year end 2019 Target run-rate G&A now below Tidewater’s stand alone Q3 2018 run-rate G&A
Slide 13: G&A Cost Trends
G&A Cost Trends Strong focus on becoming the most cost efficient OSV operator Reducing G&A spend without compromising our core values of safety, compliance and service is differentiating Developing a truly scalable platform Substantial majority of incremental activity and increases in day rate fall
Slide 14: Strategic Priorities
Strategic Priorities Leadership in safety, compliance and operational excellence Protect and preserve strong liquidity position Efficient and complete realization of merger cost and operational synergies Rationalization of fleet and cost structure to provide scope for margin expansion in the upturn
Slide 15: Why you should own Tidewater
Why you should own Tidewater A truly investable name in the offshore sector Operational Excellence Leading OSV Fleet Financial Strength An industry leader in safe operations The broadest operating footprint; leveraged to existing and developing markets Strong relationships with IOCs, NOCs and indepe
Slide 16: Tidewater Inc.
TIDEWATER INC. Worldwide Headquarters 6002 Rogerdale Road Suite 600 Houston, Texas 77072 USA P: +1 713 470 5300 ‘wwwetdw.com
Slide 17: Appendix I – Reference
Appendix I – Reference
Slide 18: Safety Leadership Remains a First Priority
0.14 10 year average Safety Leadership Remains a First Priority Total Recordable Incident Rates 2007-2018 (per 200,000 Man Hours) TRIR = Sum of LTAs and Recordables x 200,000 divided by Man Hours Worked 0.0 1.0 0.5 0.0 1.0 0.5 0.12 2018 Barclays CEO Energy-Power Conference | Sept 2019 | ©Tidewater I
Slide 19: Board of Directors
Board of Directors Alan Carr CEO, Drivetrain Dick Fagerstal Chairman & CEO Global Marine Holdings John T. Rynd President & CEO, Tidewater Inc. Larry T. Rigdon Former Interim President & CEO, Tidewater Inc. Tom R. Bates, Jr. Chairman, Tidewater Inc. Steven L. Newman Former CEO, Transocean Ltd. Randee
Slide 20: Executive Management Team
Executive Management Team John T. Rynd President, CEO & Director For additional information on the company executive management, please visit www.tdw.com/about-tidewater/corporate-officers/ Management incentive plan updates Ensuring that the company’s executive compensation program continues to evol
Slide 21: Vessel Utilization Trends Incrementally Improving
Vessel Utilization Trends Incrementally Improving Tidewater Fleet Utilization 2014 to Q2 2019 79.3% 57.0% Barclays CEO Energy-Power Conference | Sept 2019 | ©Tidewater Inc
Slide 22: Vessel Average Day Rates Stable
Vessel Average Day Rates Stable Average Day Rates by Vessel Class 2014 to Q2 2019 Notes: GulfMark fleet included as of Nov 15, 2018 Spike in Q1 2017 average deepwater rates due to lump sum early contract termination payment Barclays CEO Energy-Power Conference | Sept 2019 | ©Tidewater Inc
Slide 23: Fleet Valuation
Fleet Valuation Vessel Net Book Value as of June 30, 2019 Vessel Class Vessel Count NBV (in millions) Avg Age (years) Avg NBV/Vessel (in millions) Deepwater Vessels PSV's > 3,800 DWT 57 $ 533.1 7.6 $ 9.4 PSV's < 3,801 DWT 55 $ 245.4 11.1 $ 4.5 Deepwater AHTS's 19 $ 65.3 11.2 $ 3.4 131 $ 843.9 9.5 $
Slide 24: Oil Companies are Generating Record Cash Flow
Oil Companies are Generating Record Cash Flow Top 30 E&P's with offshore output - FCF (pre & post dividends) vs capex* Source: Bloomberg, Clarksons Platou Securities AS *All metrics are trailing 12 months Barclays CEO Energy-Power Conference | Sept 2019 | ©Tidewater Inc
Slide 25: Current Oil Prices are (so far) Still Economic for Offshore Projects
Current Oil Prices are (so far) Still Economic for Offshore Projects Breakeven oil prices of discovered but undeveloped offshore resources Perspectives Nearly all offshore oil makes sense near current prices after fall in marginal production costs Here we look at discovered but undeveloped resources
Slide 26: Working Rig Count is Improving
Working Rig Count is Improving Incremental OSV demand and utilization improvements will be driven by an increase in the working rig count Jackup utilization continues to gradually improve Floater utilization anticipated to improve through 2019 and into 2020 445 Total working rigs as of May 20, 2019
Slide 27: Jackup Utilization is Growing; Floaters Will Drive Deepwater OSV Demand
Jackup Utilization is Growing; Floaters Will Drive Deepwater OSV Demand PSV demand growth vs. Rig count growth (YoY) Offshore rig count growth (YoY) Source: Clarksons Research Services Ltd., Clarksons Platou Securities AS Jackups are growing at ~7%; it’s floaters that are holding back demand Barclay
Slide 28: A Large Percentage of the Global Stacked Fleet Likely Uneconomic to Reactivate
A Large Percentage of the Global Stacked Fleet Likely Uneconomic to Reactivate …modern, high-specification PSVs have seen the most reactivations 1,000 Est. global stacked fleet ~65% out of service for >2 years ~360 >15 years old and laid up >2 years Source: Clarksons Platou Research and IHS Petrodat
Slide 29: Newbuild Orders Not Likely to Significantly Impact Supply
Newbuild Orders Not Likely to Significantly Impact Supply High-spec orderbook now only ~1% of the existing fleet 85% of remaining orderbook in India/China; a meaningful portion of these vessels may never enter active service On average ordered in Jan-14, more than 5 years ago; typical delivery time
Slide 30: OSV Second Hand Prices Appear to have Bottomed
OSV Second Hand Prices Appear to have Bottomed Source: Clarksons Platou PSV Resale Prices as January 2019 PSV Newbuilding Prices as January 2019 …but transactions have been limited PSV Resale, Large, 1,000 m2 deck PSV Resale, Medium, 700 m2 deck PSV Resale, Medium, 800 m2 deck PSV 3,200 dwt, Europea
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