Tidewater Inc. · NYSE:TDW
Tidewater — 19th Annual Burkenroad Reports Investment Conference (April 2015)
30 slides from Tidewater's conference presentation, Apr 30, 2015
Slide 1: 19th Annual Burkenroad Reports Investment Conference
th Annual BURKENROAD REPORTS Investment Conference April 24, 2015 Joseph M. Bennett EVP & Chief Investor Relations Officer Exhibit 99.1
Slide 2: Forward-Looking Statements
2 19th Annual BURKENROAD REPORTS Investment Conference FORWARD-LOOKING STATEMENTS Phone: 504.568.1010 | 504.566.4580 Web site address: www.tdw.com Email: connect@tdw.com TIDEWATER 601 Poydras Street, Suite 1500, New Orleans, LA 70130 In accordance with the safe harbor provisions of the Private Secur
Slide 3: What's Important in a Challenged Market
3 19th Annual BURKENROAD REPORTS Investment Conference Safe, efficient and compliant operations New vessels that service all water depths Solid balance sheet and financial flexibility Geographic diversity What’s Important in a Challenged Market Strong customer base and relationships Reasonable CAPX
Slide 4: Safe Operations is Priority #1
4 19th Annual BURKENROAD REPORTS Investment Conference Operating safely offshore is like holding a snake by its head. It’s a task that can’t be turned loose not for a microsecond or an accident will strike without pity. Safe Operations is Priority #1 Stop Work Obligation Safety performance is 25% of
Slide 5: Too Many Offshore Rigs, but Activity Levels Drive OSV Demand
5 19th Annual BURKENROAD REPORTS Investment Conference Source: ODS-Petrodata Note: 37 “Other” rigs, along with the Jackups and Floaters, provide a total working rig count of 658 in April 2015. Prior peak (summer 2008) Jackups Floaters Too Many Offshore Rigs, but Activity Levels Drive OSV Demand Rig
Slide 6: Vessel Population by Owner
6 19th Annual BURKENROAD REPORTS Investment Conference Source: ODS-Petrodata and Tidewater Tidewater Competitor #2 Competitor #3 Competitor #4 Competitor # 5 Competitor #1 Avg. All Others (2,513 total vessels for 400+ owners) Vessel Population by Owner (AHTs and PSVs only) Estimated as of April 2015
Slide 7: Geographic Diversity – Vessel Count by Region
7 19th Annual BURKENROAD REPORTS Investment Conference Americas 71 (27%) SS Africa/Europe 117 (45%) MENA 46 (18%) Asia/Pac 26 (10%) Geographic Diversity – Vessel Count by Region (Excludes stacked vessels – as of 12/31/14 )
Slide 8: A New Fleet that Services All Water Depths
New Avg. Vessels NBV Deepwater 11 $26.4M Towing Supply 14 $11.6M Other 1 $6.5M 26 New Avg. Vessels NBV Deepwater 33 $28.5M Towing Supply 41 $12.3M Other 36 $1.8M 110 8 19th Annual BURKENROAD REPORTS Investment Conference New Avg. Vessels NBV Deepwater 35 20.6M Towing Supply 19 $9.8M Other 9 $3.2M 63
Slide 9: Strong Customer Base
9 19th Annual BURKENROAD REPORTS Investment Conference Our top 10 customers in Fiscal 2014 (4 Super Majors, 4 NOC’s, 1 IOC’s and 1 independent) accounted for 62% of our revenue Strong Customer Base Current Revenue Mix Approximately 60% of our revenue is derived from drilling support activity and 40%
Slide 10: The Largest Modern OSV Fleet in the Industry
Vessel Count (2) Total Cost (2) Average Cost per Vessel Deepwater PSVs 102 $2,900m $28.4m Deepwater AHTSs 12 $387m $32.3m Towing Supply/Supply 111 $1,667m $15.0m Other 53 $227m $4.3m TOTALS: 278 $5,181m (1) $18.6m (1) ~$4.68b (90%) funded through 12/31/14 (2) Vessel count and total cost is net of 26
Slide 11: CAPX is Decreasing from Recent High Levels
11 19th Annual BURKENROAD REPORTS Investment Conference CAPX is Decreasing from Recent High Levels Fiscal Year Fiscal 2014 is exclusive of Troms acquisition Amounts in Fiscal 2015-2017 represent known CAPX on only the vessels and ROVs under construction as of 12/31/14.
Slide 12: Solid Balance Sheet and Financial Flexibility
Cash & Cash Equivalents $77 million Total Debt $1,491 million Shareholders Equity $2,503 million Net Debt / Net Capitalization 36% Total Debt / Capitalization 37% 12 19th Annual BURKENROAD REPORTS Investment Conference As of December 31, 2014 ~$675 million of available liquidity as of 12/31/14, incl
Slide 13: Debt Maturities and Covenants as of 12/31/14
13 19th Annual BURKENROAD REPORTS Investment Conference Debt Maturities and Covenants as of 12/31/14 Maturities Limited for Several Years Fiscal Year Debt Covenants: 1) 2) Debt/Total Capitalization Ratio of not greater than 55% EBITDA/Interest coverage of not less than 3.0X
Slide 14: Return Capital to Shareholders
14 19th Annual BURKENROAD REPORTS Investment Conference Return Capital to Shareholders Consistent Dividends and Opportunistic Share Repurchases (in millions) Fiscal Years ~4.0% Current Dividend Yield Fiscal year 2015 YTD info is through 12/31/14.
Slide 15: Tidewater's Strategy
15 19th Annual BURKENROAD REPORTS Investment Conference Continue to improve upon stellar safety and compliance programs Maintain solid balance sheet and financial flexibility to deal with industry uncertainties and seize opportunities when presented Return capital to shareholders through dividends a
Slide 16: Worldwide Headquarters
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 HOUSTON, TEXAS Tidewater Marine, L.L.C. 6002 Rogerdale Road Suite 600 Houston, Texas 77072-1655 P: +1 713 470 5300 www.tdw.com
Slide 17: Drivers of our Business: Peak to Present
July 2008 (Peak) Jan. 2011 (Trough) April 2015 Working Rigs 603 538 658 Rigs Under Construction 186 118 213 OSV Global Population 2,033 2,599 3,277 OSV’s Under Construction 736 367 440 OSV/Rig Ratio 3.37 4.83 4.98 17 19th Annual BURKENROAD REPORTS Investment Conference Source: ODS-Petrodata and Tide
Slide 18: The Worldwide OSV Fleet
Vessels > 25 years old today 18 19th Annual BURKENROAD REPORTS Investment Conference Source: ODS-Petrodata and Tidewater As of April 2015, there are approximately 440 additional AHTS and PSV’s (~13% of the global fleet) under construction. Global fleet is estimated at 3,277 vessels, including ~700 v
Slide 19: Tidewater's Active Fleet
19 19th Annual BURKENROAD REPORTS Investment Conference Year Built Deepwater vessels Towing Supply/Supply Other vessels Tidewater’s Active Fleet As of December 31, 2014 242 “New” vessels – 6.6 avg yrs 18 “Traditional” vessels – 25.8 avg yrs (only 7 OSVs)
Slide 20: Vessels Under Construction
Count Deepwater PSVs 21 Deepwater AHTSs - Towing Supply/Supply 6 Other 1 Total 28 Estimated delivery schedule – 4 remaining in FY ’15, 18 in FY ‘16 and 6 thereafter. CAPX of $153m remaining in FY ’15, $257m in FY ‘16 and $61m thereafter. 20 19th Annual BURKENROAD REPORTS Investment Conference Vessel
Slide 21: The Upgrading of the Tidewater Fleet
21 19th Annual BURKENROAD REPORTS Investment Conference Current Future Vintage DWT CIP Fleet Fleet Current Future Vintage BHP New Fleet CIP Fleet Fleet Current Future Vintage BHP CIP Fleet Fleet New Vintage Total DWT Fleet Fleet Fleet New Vintage Total BHP Fleet Fleet Fleet New Vintage Total BHP Fle
Slide 22: Fleet Renewal & Expansion Largely Funded by CFFO
22 19th Annual BURKENROAD REPORTS Investment Conference Over a 15-year period, Tidewater has invested ~$5.2 billion in CapEx, and paid out ~$1.3 billion through dividends and share repurchases. Over the same period, CFFO and proceeds from dispositions were ~$3.9 billion and ~$800 million, respective
Slide 23: EPS Notes
23 19th Annual BURKENROAD REPORTS Investment Conference ** 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 Fiscal 2007 is exclusive of $.37 per share of a
Slide 24: Total Revenue and Margin Fiscal 2008-2015
24 19th 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 $175.6M at 51.8% Total Revenue and Margin Fiscal 2008-2015 $
Slide 25: Vessel Cash Operating Margin
25 19th Annual BURKENROAD REPORTS Investment Conference Vessel Cash Operating Margin ($) Vessel Cash Operating Margin (%) $168 million Vessel Margin in Q3 FY2015 (98% from New Vessels) Q3 FY2015 Vessel Margin: 44% Historical Vessel Cash Operating Margins $0 $25 $50 $75 $100 $125 $150 $175 $200 Q1Q2Q
Slide 26: Active Vessel Dayrates & Utilization by Segment
26 19th Annual BURKENROAD REPORTS Investment Conference Utilization stats exclude stacked vessels. Active Vessel Dayrates & Utilization by Segment 60% 70% 80% 90% 100% $6,000 $10,000 $14,000 $18,000 $22,000 $26,000 Americas Asia/Pac MENA Sub Sah Africa/Eur.
Slide 27: New Vessel Trends: Deepwater PSVs
27 19th Annual BURKENROAD REPORTS Investment Conference $189 million, or 50%, of Vessel Revenue in Q3 Fiscal 2015 New Vessel Trends by Vessel Type Deepwater PSVs Q3 Fiscal 2015 Avg Day Rate: $29,929 Utilization: 86.1%
Slide 28: New Vessel Trends: Deepwater AHTS
28 19th Annual BURKENROAD REPORTS Investment Conference $31 million, or 8%, of Vessel Revenue in Q3 Fiscal 2015 New Vessel Trends by Vessel Type Deepwater AHTS Q3 Fiscal 2015 Avg Day Rate: $33,375 Utilization: 83.0%
Slide 29: New Vessel Trends: Towing Supply/Supply Vessels
29 19th Annual BURKENROAD REPORTS Investment Conference $122 million, or 32%, of Vessel Revenue in Q3 Fiscal 2015 New Vessel Trends by Vessel Type Towing Supply/Supply Vessels Q3 Fiscal 2015 Avg Day Rate: $15,647 Utilization: 80.8%
Slide 30: Tidewater's New Subsea Business
30 19th Annual BURKENROAD REPORTS Investment Conference Six work-class ROV’s in current fleet and two more on order Commercial operations underway with additional opportunities in Americas, SSAE and Asia/Pac ROV capabilities generating potential for OSV pull through Tidewater’s New Subsea Business
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