Tidewater Inc. · NYSE:TDW
Tidewater — Wells Fargo Securities 14th Annual Energy Symposium 2015
28 slides from Tidewater's conference presentation, Dec 15, 2015
Slide 1: Wells Fargo Securities 14th Annual Energy Symposium
Wells Fargo Securities th Annual Energy Symposium December 9, 2015 Quinn P. Fanning Executive Vice President and Chief Financial Officer Exhibit 99.1
Slide 2: Forward-Looking Statements
Wells Fargo Securities 14th Annual Energy Symposium 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 a
Slide 3: Strategy and Focus in a Challenged Market, and Results
Wells Fargo Securities 14th Annual Energy Symposium 3 Providing safe, efficient and compliant operations – TRIR to date this fiscal year is lowest in company history New fleet comprised of vessels that service all water depths – active vessels at 9/30/15 with 8.2 year average age. Taking special car
Slide 4: Safe Operations is Priority #1
Wells Fargo Securities 14th Annual Energy Symposium 4 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. Stop Work Obligation Safety performance is 25% of mgt. incentive comp Safe Operat
Slide 5: Plenty of Offshore Rigs, but Activity Levels Drive OSV Demand
Wells Fargo Securities 14th Annual Energy Symposium 5 Plenty Offshore Rigs, but Activity Levels Drive OSV Demand Source: IHS-Petrodata Note: “Other” rigs, along with the Jackups and Floaters, provide a total working rig count of in November 2015. Jackups Floaters Rig CIP Jackups Floaters Other
Slide 6: Drivers of our Business - A View at Various Points in a Cycle
Wells Fargo Securities 14th Annual Energy Symposium 6 July 2008 January 2011 November 2015 Working Rigs 603 538 555 Rigs Under Construction 186 118 205 OSV Global Population 2,033 2,599 3,394 OSV’s Under Construction 736 367 370 OSV/Rig Ratio 3.37 4.83 6.04 (4.98 without ~600 old vessels believed no
Slide 7: Tidewater's Active Fleet
Wells Fargo Securities 14th Annual Energy Symposium 7 Tidewater’s Active Fleet As of September 30, 2015 Year Built Deepwater vessels Towing Supply/Supply Other vessels “New” vessels – 7.4 avg yrs “Traditional” vessels – 25.0 avg yrs (only 2 OSVs)
Slide 8: Geographic Diversity - Active Vessel Count and Vessel Operating Profit by Region
Wells Fargo Securities 14th Annual Energy Symposium 8 SS Africa/Europe 94 vessels (42%) $3.2m VOP MENA 42 vessels (19%) $7.5m VOP Asia/Pac 21 vessels (10%) $6.2m VOP Americas 65 vessels (29%) $8.8m VOP Geographic Diversity – Active Vessel Count and Vessel Operating Profit (VOP) by Region (Active ves
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Slide 10: Staying Close to our Customers - Strong Customer Base
Wells Fargo Securities 14th Annual Energy Symposium 10 Staying Close to our Customers – Strong Customer Base Current Revenue Mix Approximately 60% of our revenue is derived from drilling support activity and 40% from non-drilling related activity, such as support of production and construction activ
Slide 11: Our Remaining Construction Backlog
Wells Fargo Securities 14th Annual Energy Symposium 11 Count Deepwater PSVs 8 Deepwater AHTSs - Towing Supply/Supply 1 Other - Total 9 Estimated delivery schedule – 4 remaining in FY ’16 and 5 in FY ‘17. CAPX of $57m remaining in FY ‘16 and $55m in FY ‘17. * The Company has options on seven addition
Slide 12: CapEx is Decreasing from Recent High Levels
Wells Fargo Securities 14th Annual Energy Symposium 12 CapEx is Decreasing from Recent High Levels Amounts in orange in Fiscal 2016 and 2017 include future expected CAPX on the 9 vessels under construction as of 9/30/15. Fiscal 2014 is exclusive of Troms acquisition NOTE: Fiscal 2016 and 2017 estima
Slide 13: Solid Balance Sheet and Financial Flexibility
Wells Fargo Securities 14th Annual Energy Symposium 13 Cash & Cash Equivalents $88 million Total Debt $1,498 million Shareholders Equity $2,398 million Net Debt / Net Capitalization 37% Total Debt / Capitalization 38% Solid Balance Sheet and Financial Flexibility Our Financial Position Provides Us S
Slide 14: Debt Maturities and Covenants
Wells Fargo Securities 14th Annual Energy Symposium 14 Debt Maturities and Covenants as of 9/30/15 Maturities Limited for Several Years Fiscal Year $0 $200 $400 $600 $800 Debt Covenants: 1) Debt/Total Capitalization Ratio of not greater than 55% 2) EBITDA/Interest coverage of not less than 3.0X
Slide 15: Returning Capital to Shareholders
Wells Fargo Securities 14th Annual Energy Symposium 15 Returning Capital to Shareholders Consistent Dividends and Opportunistic Share Repurchases (in millions) Fiscal Years ~10% Current Dividend Yield During this 16-year period, $659 million of dividends were paid and $757 million of total stock rep
Slide 16: Tidewater's Strategy
Wells Fargo Securities 14th Annual Energy Symposium 16 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 - Continue pro-active cost reduction initiatives - Maintain/protect
Slide 17: Office Locations
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 Wells Fargo Securiti
Slide 18: The Worldwide OSV Fleet
Wells Fargo Securities 14th Annual Energy Symposium 18 Vessels > 25 years old today The Worldwide OSV Fleet (Includes AHTS and PSVs only) Estimated as of November As of November 2015, there are approximately 370 additional AHTS and PSV’s (~11% of the global fleet) under construction. Some number of
Slide 19: Vessel Population by Owner
Wells Fargo Securities 14th Annual Energy Symposium 19 Vessel Population by Owner (AHTS and PSVs only) Estimated as of November Tidewater Competitor #2 Competitor #3 Competitor #4 Competitor # 5 Competitor #1 Avg. All Others (~2,616 total vessels for 400+ owners) Source: IHS-Petrodata and Tidewater
Slide 20: Fleet Renewal & Expansion Largely Funded by CFFO
Wells Fargo Securities 14th Annual Energy Symposium 20 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
Slide 21: History of Solid Earnings and Returns on a Through-Cycle Basis
Wells Fargo Securities 14th Annual Energy Symposium 21 History of Solid Earnings and Returns on a Through-Cycle Basis Adjusted Return On Avg. Equity 4.3% 7.2% 12.4% 18.9% 18.3% 19.5% 11.4% 5.0% 4.3% 5.9% 7.0% 6.3% Adjusted EPS** ** EPS in Fiscal 2004 is exclusive of the $.30 per share after tax impa
Slide 22: Active Vessel Dayrates & Utilization by Segment
Wells Fargo Securities 14th Annual Energy Symposium 22 $6,000 $10,000 $14,000 $18,000 $22,000 $26,000 Active Vessel Dayrates & Utilization by Segment Utilization stats exclude stacked vessels. 60% 70% 80% 90% 100% Americas Asia/Pac MENA Sub Sah Africa/Eur.
Slide 23: New Vessel Trends by Vessel Type: Deepwater PSVs
Wells Fargo Securities 14th Annual Energy Symposium 23 New Vessel Trends by Vessel Type Deepwater PSVs Q2 Fiscal 2016 Avg Day Rate: $23,864 Utilization: 64.0% $125 million, or 47%, of Vessel Revenue in Q2 Fiscal 2016 - $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 Q1 Q2 Q3 Q4 Q2 Q3 Q4 Q1 Q2 Q3
Slide 24: New Vessel Trends by Vessel Type: Deepwater AHTS
Wells Fargo Securities 14th Annual Energy Symposium 24 New Vessel Trends by Vessel Type Deepwater AHTS Q2 Fiscal 2016 Avg Day Rate: $29,506 Utilization: 65.0% $21 million, or 8%, of Vessel Revenue in Q2 Fiscal 2016 - $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 25: New Vessel Trends by Vessel Type: Towing Supply/Supply Vessels
Wells Fargo Securities 14th Annual Energy Symposium 25 New Vessel Trends by Vessel Type Towing Supply/Supply Vessels Q2 Fiscal 2016 Avg Day Rate: $13,735 Utilization: 72.1% $96 million, or 36%, of Vessel Revenue in Q2 Fiscal 2016 - $0 $5,000 $10,000 $15,000 $20,000 $25,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 26: Vessel Revenue and Vessel Operating Margin
Wells Fargo Securities 14th Annual Energy Symposium 26 Vessel Revenue and Vessel Operating Margin Fiscal 2008-2016 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 $
Slide 27: Historical Vessel Cash Operating Margins
Wells Fargo Securities 14th Annual Energy Symposium 27 Historical Vessel Cash Operating Margins Vessel Cash Operating Margin ($) Vessel Cash Operating Margin (%) $106 million Vessel Margin in Q2 FY2016 (98% from New Vessels) Q2 FY2016 Vessel Margin: 40%
Slide 28: Tidewater's Subsea Business
Wells Fargo Securities 14th Annual Energy Symposium 28 Tidewater’s Subsea Business Eight work-class ROVs in current fleet Commercial operations underway globally ROV capabilities generating potential for OSV pull through
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