Tidewater Inc. · NYSE:TDW
Tidewater — Credit Suisse Energy Summit 2009 Conference
35 slides from Tidewater's conference presentation, Feb 11, 2009
Slide 1: Credit Suisse Energy Summit 2009 Conference
February 5, 2009 Exhibit 99.1 Quinn P. Fanning – Quinn P. Fanning – Executive Vice President, Chief Executive Vice President, Chief Financial Officer Financial Officer Joseph M. Bennett – Joseph M. Bennett – Executive Vice President and Executive Vice President and Chief Investor Relations Officer C
Slide 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 looking. The actual achievement of any forecasted results, or the
Slide 3: Safety Record Rivals Leading Companies
0.00 0.25 0.50 0.75 1.00 2001 2002 2003 2004 2005 2006 Calendar Years TIDEWATER DOW CHEMICAL DUPONT EXXON/MOBIL BP 2007 SAFETY RECORD RIVALS SAFETY RECORD RIVALS LEADING COMPANIES LEADING COMPANIES Total Recordable Incident Rates Total Recordable Incident Rates Calendar Years
Slide 4: Tidewater Today
Solid safety record Entire fleet earning solid returns Continuing to invest in new vessels Unmatched global footprint Strong balance sheet Disciplined investment and capital management TIDEWATER TODAY TIDEWATER TODAY
Slide 5: Significant Earnings Growth
$0.00 $2.00 $4.00 $6.00 $8.00 Fiscal 2004 Fiscal 2005 Fiscal 2006 Fiscal 2007 Fiscal 2008 58% Four-Year Compounded Annual Earnings Growth Rate $1.03 $1.78 $3.33 $5.94 ** 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
Slide 6: Tidewater Tomorrow
Younger fleet with expanded capabilities Increased international presence Well positioned to generate solid returns through oilfield cycle Disciplined, EVA-based investments TIDEWATER TOMORROW TIDEWATER TOMORROW
Slide 7: Our Strategy (Not much has changed!)
Maintain maximum financial flexibility to deal with uncertainties Selectively deploy cash to renew fleet with expanded capabilities React to current & future business environments to provide solid profits and cash flow Right acquisitions, right price, right time Opportunistically utilize balance she
Slide 8: Many Unanswered Questions at this Time
How will the current financial crisis impact our industry? What will oil and gas prices do? How sensitive is hydrocarbon demand to commodity prices? Where is E&P spending headed? How will global economic concerns impact vendors (i.e., shipyards)? Will current backlog of rigs & vessels be delivered?
Slide 9: TDW's Financial Stability During Trying Times
Cash on the balance sheet Low debt Undrawn revolving credit facility Manageable new construction backlog Solid customer base (large exposure to NOC’s and IOC’s) Good contract coverage TDW’s TDW’s FINANCIAL STABILITY FINANCIAL STABILITY DURING TRYING TIMES DURING TRYING TIMES
Slide 10: Strong Balance Sheet
$300 $300 Long-term Debt* $1,930 $2,144 Stockholders’ Equity 1.5% 4.4% Net Debt* to Total Cap $270 $202 Cash March 2008 December 2008 Further Proof of Our Discipline and Sound Business Strategy Approx. $502m of Available Liquidity at 12/31/08 (Cash plus $300m Revolver) (in Millions) * Excludes $10.1
Slide 11: Selected Financial Highlights
Nine Months Ended $4.76 $5.76 Earnings Per Share $263,378 $297,172 Net Earnings $353,076 $368,506 Net Cash from Operations $291,709 $368,706 Capital Expenditures $938,743 $1,049,218 Revenues 12/31/07 12/31/08 (in Thousands, Except Per Share Data) SELECTED FINANCIAL SELECTED FINANCIAL HIGHLIGHTS HIGH
Slide 12: Returning Value to Shareholders
Current repurchase authority of $200 MM Since 8/05, have repurchased 9.5 MM shares for $516.2 MM Recent dividend declaration increased from $.15/share/quarter to $.25/share/quarter One of eight OSX companies paying dividends Current 2.7% yield (highest among OSX companies) RETURNING VALUE TO RETURNI
Slide 13: Vessel Population by Owner
Tidewater Competitor #1 Competitor #2 Competitor #3 Competitor #4 Avg. All Others (1,483 total vessels for 300+ owners) Competitor # 5 290 87 64 5 74 72 66 VESSEL POPULATION VESSEL POPULATION BY OWNER BY OWNER (Includes AHTS and PSV’s (Includes AHTS and PSV’s only) only) Estimated as of December Sou
Slide 14: Global Vessel Fleet by Age
0 20 40 60 80 100 120 140 160 180 200 1965 1970 1975 1980 1985 1990 1995 2000 2005 Of the total 2,136 vessels, 300 vessels are 30+ yrs old , GLOBAL VESSEL FLEET BY AGE (Includes AHTS and PSV’s only) Source: ODS-Petrodata and Tidewater As of 12/31/08, there are As of 12/31/08, there are approximately
Slide 15: Vessel / Rig Ratio
2,136 Global Vessel Count (AHTS & PSV only) 602 Global Working Rigs 3.5 Vessel to Rig Ratio 54 Older rigs in yards getting prepared for work 175 New rigs under construction VESSEL / RIG RATIO VESSEL / RIG RATIO Current Vessel Demand Dynamics: Possible Incremental Vessel Demand: (???Cancellations???)
Slide 16: International Strength
Unique global footprint; 50+ years of Int’l experience YTD FY ‘09, Int’l was 88.5% of revenues & 91% of profits 54 of current newbuilds in Int’l yards Longer contracts, better utilization, higher dayrates for new & traditional vessels operating in Int’l markets Solid customer base of NOC’s and IOC’s
Slide 17: Tidewater Today: International Strength
91% International 9% Domestic (vs. 57% International and 43% Domestic ten years ago) Active Vessel Count By Region (excludes stacked vessels) North America 31 (9%) (9%) Central/South America 101 (28%) (28%) West Africa 139 (39%) (39%) Far East 51 (14%) (14%) Europe/M.E. 36 (10%) (10%) 91% Internatio
Slide 18: Growing Industry's Largest New Fleet
Ability to support continued fleet renewal and growth (Fiscal 2008 CapEx of $354 MM and Fiscal 2009 YTD of $369 MM), although cautious given current banking environment Current environment may present opportunities to utilize our financial strength Funding with internal cash flow and available credi
Slide 19: Largest New Fleet in the Industry
$1,355m 72 PSV’s $2,889m (2) 203 TOTALS: (1) $275m 65 Crewboats & Tugs $1,259m 66 AHTS Estimated Cost Vessel Count (1) Includes vessels added to the fleet financed by bareboat charter. (2) $2,198m funded through 12/31/08. *Excludes ENSCO fleet acquisition effected April 1, 2003. Vessel Commitments J
Slide 20: Largest New Fleet in the Industry... and Counting
56 Total 27 PSV 8 Crew and Tug 21 AHTS Count Vessels Under Construction As of December 31, 2008 Building vessels worldwide Due diligence focused on yards Tidewater staff supervise on site Estimated delivery schedule – 11 in FY ’09, 25 in FY ’10 and 20 thereafter. CAPX of $134m remaining in FY’09, $2
Slide 21: Improving Average Age of Tidewater Fleet
Assumptions: 1) Average 45 vessel disposals per year in future (averaged 47 per year last three years). 2) Include 56 vessels under construction in year delivered plus additional newbuilds/acquisitions from approximately $500 million per year of future commitments. Tidewater is not committed to spen
Slide 22: Fleet Cash Operating Margins
$0 $100 $200 $300 $400 $500 $600 $700 2000 2001 2002 2003 2004 2005 2006 2007 2008 Fiscal Years New Vessels Traditional Vessels Note: Cash operating margins are defined as vessel revenue less vessel operating expenses. FLEET CASH FLEET CASH OPERATING MARGINS OPERATING MARGINS 60% 50% 40% 30% 20% 10%
Slide 23: Financial Strategy
Renew Fleet Maintain Financial Strength Deliver Results Financial Strategy Financial Strategy Focused on Long Term Shareholder Value Focused on Long Term Shareholder Value Renew Fleet Maintain Financial Strength Deliver Results
Slide 24: Credit Suisse Energy Summit 2009 Conference
February 5, 2009 Credit Suisse Energy Summit Credit Suisse Energy Summit 2009 Conference 2009 Conference February 5, 2009 Quinn P. Fanning – Quinn P. Fanning – Executive Vice President, Chief Executive Vice President, Chief Financial Officer Financial Officer Joseph M. Bennett – Joseph M. Bennett –
Slide 25: Appendix
APPENDIX APPENDIX
Slide 26: International Vessel Dayrates
Growth Total Dayrate Growth from FY‘04 +71%, New vessels +81%, Traditional vessels +44% 0% 10% 20% 30% 40% 50% 60% 70% 80% Fiscal 2005 Fiscal 2006 Fiscal 2007 Fiscal 2008 INTERNATIONAL INTERNATIONAL VESSEL DAYRATES VESSEL DAYRATES Growth Total Dayrate Growth from FY‘04 +71%, New vessels +81%, Tradit
Slide 27: International Vessels Dayrates and Utilization
12/05 3/06 6/06 9/06 12/06 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 $100 change in dayrate = $10.1M in revenue 1% change in utilization = $16.3M in revenue * Dayrate and utilization information is for all classes of vessels operating international. 40% 50% 60% 70% 80% 90% $4,000 $5,000 $6,000 $7,00
Slide 28: International Vessels Dayrates
* Dayrate information is for all classes of vessels operating international. $3,000 $5,000 $7,000 $9,000 $11,000 $13,000 $15,000 $17,000 12/05 3/06 6/06 9/06 12/06 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 Traditional Vessels New Vessels INTERNATIONAL INTERNATIONAL VESSELS DAYRATES VESSELS DAYRATES
Slide 29: Domestic Vessel Dayrates
0% 20% 40% 60% 80% 100% 120% 140% Fiscal 2005 Fiscal 2006 Fiscal 2007 Fiscal 2008 Total Growth Percentage From FY’04 through FY’08 Total Growth 136% DOMESTIC VESSEL DOMESTIC VESSEL DAYRATES DAYRATES Total Growth Percentage From FY’04 through FY’08 Total Growth 136%
Slide 30: Domestic Vessels Dayrates and Utilization
$100 change in dayrate = $1.1M in revenue 1% change in utilization = $2.4M in revenue * Dayrate and utilization information is for all classes of vessels operating in the U.S. 12/05 3/06 6/06 9/06 12/06 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 DOMESTIC VESSELS DOMESTIC VESSELS Dayrates and Utilizat
Slide 31: Domestic Vessel Dayrates
$3,000 $5,000 $7,000 $9,000 $11,000 $13,000 $15,000 $17,000 12/05 3/06 6/06 9/06 12/06 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 * Dayrate information is for all classes of vessels operating in the U.S. Traditional Vessels New Vessels DOMESTIC VESSEL DOMESTIC VESSEL DAYRATES DAYRATES
Slide 32: Superior Operating Capabilities Drive Our Competitive Advantage
– Safety-oriented culture – Deep knowledge of customer needs – Worldwide market presence (over 60 countries) – Long-term relationships with major operators (Over 200 customers) – Most new vessels in industry – Wide range of equipment types – “Lean” operations and overhead – Aggressive construction c
Slide 33: Vessel Acquisition Alternatives
Considerations: Usually one-off purchases, often to match specific client needs Immediate delivery Entry price at “full” market rate Considerations: Built to Tidewater quality standards 18 + months to delivery Potential shipyard backlog Contract terms (e.g., fixed price, LDs, etc.) Resource requirem
Slide 34: Considerations in Designing Our Optimal Vessel Mix
Custom/ Specialized Standardized Small Ultra big Renew existing Expand to niche markets Drilling, production Subsea, main- tenance, LNG etc. Cycle timers Invest across cycle *Arrows are illustrative of Tidewater’s current views; they should not be interpreted as excluding other points on the continu
Slide 35: Largest New Fleet in the Industry
0 100 200 300 400 500 Active Fleet Dispositions * Net vessels added to the fleet since January 2000, including 56 vessels under construction at 12/31/08. * Since 4/01/05, 37 vessels have been scrapped and 141 have been sold. * Total fleet count excludes 51 stacked vessels as of 12/31/08. Out With th
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