Tidewater Inc. · NYSE:TDW
Tidewater — Sidoti Institutional Forum (March 2010)
39 slides from Tidewater's conference presentation, Mar 25, 2010
Slide 1: Sidoti Institutional Forum
SIDOTI INSTITUTIONAL FORUM March 24, 2010 Joseph M. Bennett EVP & Chief Investor Relations Officer Exhibit 99.1
Slide 2: Forward-Looking Statements
Phone: 504.568.1010 | Fax: 504.566.4580 | Web: www.tdw.com | Email: connect@tdw.com 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 informatio
Slide 3: , Onera ing Safely, offshore re sit +
, Onera ing Safely, offshore re sit + like holdity a snake liyts heat Sh 5 Ve Seen % y t TIDEWATER _™ “
Slide 4: Many Safety Challenges (Weather, Security, etc.)
4 Many Safety Challenges (Weather, Security, etc.)
Slide 5: Many Safety Challenges (Weather, Security, etc.)
5 Many Safety Challenges (Weather, Security, etc.)
Slide 6: Safety Record Rivals Leading Companies
0.00 0.25 0.50 0.75 1.00 6 Total Recordable Incident Rates 2002 2003 2004 2005 2006 2007 Calendar Years 2008 TIDEWATER DOW CHEMICAL DUPONT EXXON/MOBIL BP Safety Record Rivals Leading Companies
Slide 7: Has Our Industry Bottomed Yet?
Commodity Demand & Pricing – Oil & gas prices have stabilized at generally attractive levels and demand is improving E&P Spending –11% improvement expected in 2010 Access to Capital – Credit access continuing to improve Global Economics – Global economies improving Working Drilling Rig Count – Jack-
Slide 8: Recent Accomplishments
No lost time accidents since August 2008 Respectable earnings & returns in a trough (tough) market Selected acquisitions of choice assets Disciplined disposal of traditional equipment Delivery of 47 new vessels over last two fiscal years Balance Sheet remains solid; Company poised to take advantage
Slide 9: The Worldwide Fleet - Retirements Expected to Exceed New Deliveries
0 50 100 150 200 250 300 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 9 Source: ODS-Petrodata and Tidewater As of Mid-March 2010, there are approximately 500 additional AHTS and PSV’s (~20% of the global fleet) under construction. Global fleet estimated at 2,415 vessels, including 347 vessels t
Slide 10: Vessel Population By Owner
10 Source: ODS-Petrodata and Tidewater Tidewater Competitor #2 Competitor #3 Competitor #4 Competitor # 5 Competitor #1 Avg. All Others (1,732 total vessels for 300+ owners) 276 108 105 71 63 60 5 Vessel Population By Owner (Includes AHTS and PSV’s only) Estimated as of Mid-March 2010
Slide 11: Working Rig Counts: Peak to Present
Source: ODS-Petrodata and Tidewater 11 GOM accounts for 25 of the 61 working jackup count variance Jackups Semi Drillships Total June 2008 379 145 30 554 Mid-March 2010 318 146 42 506 Variance (61) 1 12 (48) Working Rig Counts “ Peak to Present ”
Slide 12: Rigs Contracted By Our Top 10 Customers
12 * PEMEX alone has 26 of the 75 jackups Source: ODS-Petrodata and Tidewater Jackups Semi Drillships Mid-March 2010 working rigs 318 146 42 Working for top 10 customers 75 71 19 24% 49% 45% Rigs Contracted By Our Top 10 Customers (Estimated as of Mid-March 2010)
Slide 13: Quality of Customer Base
13 Our top 10 customers in Fiscal 2009 (5 Super Majors, 4 NOC’s and one large independent) accounted for 60% of our revenue Others 37% Super Majors 40% NOC’s 23% Current Revenue Mix Quality of Customer Base
Slide 14: International Strength
Unique global footprint; 50+ years of Int’l experience Unmatched scale and scope of operations Expected growth also likely to be in international areas, with 31 of 33 current newbuilds being built in Int’l yards Longer contracts, better utilization, higher dayrates for vessels operating in internati
Slide 15: Our Global Footprint: Boots on the Ground
15 Our Global Footprint “Boots on the Ground”
Slide 16: Slide 16
Slide 17: The Largest Modern Fleet in the Industry
Vessel Count Estimated Cost AHTS 74 $1,368m PSV’s 74 $1,454m Crewboats & Tugs 66 $284m TOTALS: (1) 214 $3,106m (2) (1) Includes vessels added to the fleet financed by leases. (2) $2,578m (83%) funded through 12/31/09. 17 At 12/31/09, 163 new vessels in fleet with 4.7 year average age The Largest Mod
Slide 18: Vessels Under Construction
Count AHTS 16 PSV 18 Crew and Tug 2 Total 36 18 * Includes three new vessels committed to purchase as of 12/31/09 Estimated delivery schedule – 9 remaining in FY ‘10, 12 in FY ‘11, 13 in FY ‘12 and 2 thereafter. CAPX of $183m remaining in FY ‘10, $191m in FY ‘11, $141m in FY ‘12 and $12m in FY ‘13 V
Slide 19: Continually Acquiring New and Disposing of Mature Vessels
0 100 200 300 400 500 Active Fleet Dispositions 19 340 (B) 495 (C) 199 New Vessels (A) 404 Sold 91 Scrapped (A) Net new vessels added to the fleet since January 2000, including 36 vessels under construction at 12/31/09. (B) Total fleet count excludes 73 stacked vessels as of 12/31/09. (C) 495 vessel
Slide 20: Significant Earnings Growth
$0.00 $2.00 $4.00 $6.00 $8.00 Fiscal 2004 Fiscal 2005 Fiscal 2006 Fiscal 2007 Fiscal 2008 Fiscal 2009 Fiscal 2010 20 39% Six-Year Compounded Annual Earnings Growth Rate FY End Stock Price $28.13 $38.86 $55.23 $58.58 $55.11 $37.13 $1.03 $1.78 $3.33 $5.94 $6.39 $7.89 ** EPS in Fiscal 2004 is exclusive
Slide 21: Returns vs. the Market
21 -100% -50% 0% 50% 100% 150% 200% 250% Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 TDW DJIA S&P500 -100% -50% 0% 50% 100% 150% 200% 250% Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 TDW DJIA S&P500 Returns vs. the Market Ten Year Sto
Slide 22: A Strong Balance Sheet and Ready Liquidity
December 2009 March 2009 Cash $337 $251 Stockholders’ Equity $2,419 $2,245 Long-term Debt $275 $300 Net Debt to Total Cap 0% 2.1% 22 + $750 million of Available Liquidity at 12/31/09 (Cash plus $450m Revolver) A Strong Balance Sheet and Ready Liquidity ($ in Millions)
Slide 23: Selected Financial Highlights
Nine Months Ended 12/31/09 12/31/08 Revenues $908,638 $1,049,218 Adjusted Net Earnings* $216,363 $297,172 Adjusted EPS* $4.21 $5.76 Net Cash from Operations $299,350 $366,305 Capital Expenditures $304,013 $368,706 * Adjusted Net Earnings and Adjusted EPS for the nine months ended 12/31/09 excludes $
Slide 24: Our Significant Uses of Cash
$0 $100 $200 $300 $400 $500 $600 $700 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 CAPX Dividend Share Repurchase 24 Over this ten year period, TDW invested $2.7 billion in CAPX ($2.3 billion in our new fleet), and paid out $355 million in dividends and $516 million through share repurchases. O
Slide 25: Fleet Cash Operating Margins
25 Note: Cash operating margins are defined as vessel revenue less vessel operating expenses. $0 $100 $200 $300 $400 $500 $600 $700 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Fiscal Years 50% 40% 30% 20% 10% 60% Total Fleet Operating Margin % New Vessels Traditional Vessels 38.6% 37.6% 4
Slide 26: Continued Investment Will Provide Scope for Earnings Margin Growth
26 $126.3 Traditional Vessels ($24.7 m, or 19.6%) New Vessels ($101.6 m, or 80.4%) Q3 FY10 Operating Margin ($ in millions) 0 50 100 150 200 250 OPERATING MARGIN Continued Investment Will Provide Scope for Earnings Margin Growth - A Compressed Spring
Slide 27: Continued Investment Will Provide Scope for Earnings Margin Growth
0 50 100 150 200 250 27 $126.3 36 new vessels on order as of 12/31/09 enter the fleet Analysis assumes: • Fleet utilization: 90% • Fleet average day rate: $17,000 • Fleet operating margin: 55% $154.1 3 Years ($ in millions) Q3 FY10 Operating Margin CIP Continued Investment Will Provide Scope for Ear
Slide 28: Continued Investment Will Provide Scope for Earnings Margin Growth
0 50 100 150 200 250 OPERATING MARGIN 28 ($ in millions) $200.5 $126.3 $154.1 Additional 60 vessels added to the fleet in years 1-3 above current 36 on order Analysis assumes: • Fleet utilization: 90% • Fleet average day rate: $17,000 • Fleet operating margin: 55% 3 Years Q3 FY10 Operating Margin CI
Slide 29: Continued Investment Will Provide Scope for Earnings Margin Growth
29 ($ in millions) Additional 40 vessels added to the fleet in years 4-5 above current 36 on order and 60 vessels possibly added in years 1-3 Analysis assumes: • Fleet utilization: 90% • Fleet average day rate: $17,000 • Fleet operating margin: 55% $200.5 $126.3 $154.1 $231.5 3 Years 5 Years Q3 FY10
Slide 30: The End of the Mature Fleet
30 The End of the Mature Fleet
Slide 31: Significant Average Age Improvement
31 Assumptions: 1) Average 45 vessel disposals per year in future (averaged 47 per year last three years). 2) Include 36 vessels under construction ( including three purchase commitments) in year delivered plus additional newbuilds/acquisitions from approximately $500 million per year of future comm
Slide 32: Financial Strategy
Maintain Financial Strength Deploy Capital Deliver Results Focused on Long Term Shareholder Value 32 Financial Strategy
Slide 33: Joseph M. Bennett EVP & Chief Investor Relations Officer SIDOTI INSTITUTIONAL FORUM March 24,
Joseph M. Bennett EVP & Chief Investor Relations Officer SIDOTI INSTITUTIONAL FORUM March 24, 2010
Slide 34: Appendix
34 Appendix
Slide 35: Our Strategy
Culture is a competitive advantage • Safety-oriented • Deep knowledge of customer needs • Aggressive management of operating and capital costs Maintain maximum financial flexibility to deal with uncertainties Selectively deploy cash to renew fleet with expanded capabilities Opportunistically utilize
Slide 36: International Vessels Dayrates and Utilization
* Dayrate and utilization information is for all classes of vessels operating international. 36 12/06 6/07 12/07 6/08 12/08 6/09 12/09 $100 change in dayrate = $8.3M in revenue 1% change in utilization = $15.2M in revenue International Vessels Dayrates and Utilization $4,000 $6,000 $8,000 $10,000 $1
Slide 37: International Vessels Dayrates
37 * Dayrate and utilization 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 $19,000 12/06 06/07 12/07 06/08 12/08 06/09 12/09 International Vessels Dayrates New Vessels Traditional Vessels
Slide 38: Domestic Vessels Dayrates and Utilization
38 * Dayrate and utilization information is for all classes of vessels operating in the U.S. 12/06 6/07 12/07 6/08 12/08 6/09 12/09 Domestic Vessels Dayrates and Utilization $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 30% 40% 50% 60% 70% 80% 90% Dayrate Utilization
Slide 39: Domestic Vessels Dayrates
39 * Dayrate and utilization information is for all classes of vessels operating in the U.S. $3,000 $5,000 $7,000 $9,000 $11,000 $13,000 $15,000 $17,000 $19,000 $21,000 $23,000 12/06 06/07 12/07 06/08 12/08 06/09 12/09 Domestic Vessels Dayrates Traditional Vessels New Vessels