Tidewater Inc. · NYSE:TDW
Tidewater — Pritchard Capital Partners Energize 2009 Conference
35 slides from Tidewater's conference presentation, Jan 15, 2009
Slide 1: Pritchard Capital Partners Energize 2009 Conference
January 14, 2009 Exhibit 99.1 Joseph M. Bennett – Joseph M. Bennett – Executive Vice President and Executive Vice President and Chief Investor Relations Officer Chief Investor Relations Officer January 14, 2009 Pritchard Capital Partner’s Pritchard Capital Partner’s Energize 2009 Conference Energize
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: 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 6: Our Strategy
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 7: 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 8: 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 9: Strong Balance Sheet
$300 $300 Long-term Debt* $1,930 $2,042 Stockholders’ Equity 1.5% 7.1% Net Debt* to Total Cap $270 $145 Cash March 2008 September 2008 Further Proof of Our Discipline and Sound Business Strategy Approx. $450m of Available Liquidity at 9/30/08 (Cash plus $300m Revolver) (in Millions) * Excludes $10.1
Slide 10: Selected Financial Highlights
Six Months Ended $3.11 $3.49 Earnings Per Share $174,008 $180,207 Net Earnings $220,471 $196,903 Net Cash from Operations $216,453 $259,845 Capital Expenditures $624,528 $686,883 Revenues 9/30/07 9/30/08 (in Thousands, Except Per Share Data) SELECTED FINANCIAL SELECTED FINANCIAL HIGHLIGHTS HIGHLIGHT
Slide 11: 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 12: Vessel Population by Owner
Tidewater Competitor #1 Competitor #2 Competitor #3 Competitor #4 Avg. All Others (1,442 total vessels for 300+ owners) Competitor # 5 290 84 62 5 74 68 67 VESSEL POPULATION VESSEL POPULATION BY OWNER BY OWNER (Includes AHTS and PSV’s (Includes AHTS and PSV’s only) only) Estimated as of September 20
Slide 13: Global Vessel Fleet by Age
0 20 40 60 80 100 120 140 160 180 1965 1970 1975 1980 1985 1990 1995 2000 2005 Of the total 2,087 vessels, GLOBAL VESSEL FLEET BY AGE (Includes AHTS and PSV’s only) Source: ODS-Petrodata and Tidewater As of 9/30/08, there are As of 9/30/08, there are approximately 740 additional AHTS approximately 7
Slide 14: Vessel / Rig Ratio
2,087 Global Vessel Count (AHTS & PSV only) 606 Global Working Rigs 3.4 Vessel to Rig Ratio 47 Older rigs in yards getting prepared for work 190 New rigs under construction VESSEL / RIG RATIO VESSEL / RIG RATIO Source: ODS-Petrodata and Tidewate r r Estimated as of September 2008 Estimated as of Sep
Slide 15: International Strength
Unique global footprint; 50+ years of Int’l experience YTD FY ‘09, Int’l was 88% of revenues & 90% of profits 55 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 16: Tidewater Today: International Strength
90% International 10% Domestic (vs. 57% International and 43% Domestic ten years ago) Active Vessel Count By Region (excludes stacked vessels) North America 35 (10%) (10%) Central/South America 100 (27%) (27%) West Africa 145 (40%) (40%) Far East 52 (14%) (14%) Europe/M.E. 34 (9%) (9%) 90% Internati
Slide 17: Growing Industry's Largest New Fleet
Ability to support continued fleet renewal and growth (Fiscal 2008 CapEx of $354 MM), although cautious given current banking environment Current environment may present opportunities to utilize our financial strength Funding with internal cash flow and available credit Always weigh build vs. buy cr
Slide 18: Largest New Fleet in the Industry
$1,354m 72 PSV’s $2,870m (2) 201 TOTALS: (1) $260m 63 Crewboats & Tugs $1,256m 66 AHTS Estimated Cost Vessel Count (1) Includes vessels added to the fleet financed by bareboat charter. (2) $2,092m funded through 9/30/08. *Excludes ENSCO fleet acquisition effected April 1, 2003. Vessel Commitments Ja
Slide 19: Largest New Fleet in the Industry... and Counting
57 Total 28 PSV 6 Crew and Tug 23 AHTS Count Vessels Under Construction As of September 30, 2008 Building vessels worldwide Due diligence focused on yards Tidewater staff supervise on site Estimated delivery schedule – 15 in FY ’09, 22 in FY ’10 and 20 thereafter . . CAPX of $214m in FY’09, $276m in
Slide 20: Improving Average Age of Tidewater Fleet
3/31/2004 Actual 3/31/2005 Actual 3/31/2006 Actual 3/31/2007 Actual 3/31/2008 Actual 12/31/2008 Estimate 12/31/2009 Estimate 12/31/2010 Estimate 12/31/2011 Estimate 12/31/2012 Estimate Assumptions: 1) Average 45 vessel disposals per year in future (averaged 47 per year last three years). 2) Include
Slide 21: 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 22: 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 23: Pritchard Capital Partners Energize 2009 Conference
January 14, 2009 Pritchard Capital Partner’s Pritchard Capital Partner’s Energize 2009 Conference Energize 2009 Conference Joseph Joseph M. M. Bennett Bennett – – Executive Executive Vice Vice President President and and Chief Chief Investor Investor Relations Relations Officer Officer January 14, 2
Slide 24: Appendix
APPENDIX APPENDIX
Slide 25: 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 26: International Vessels Dayrates and Utilization
$100 change in dayrate = $10.4M in revenue 1% change in utilization = $14.6M in revenue * Dayrate and utilization information is for all classes of vessels operating international. 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07 9/07 12/07 3/08 6/08 9/08 INTERNATIONAL VESSELS INTERNATIONAL VESSELS Dayrate
Slide 27: International Vessels Dayrates
* Dayrate information is for all classes of vessels operating international. $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 $13,000 $14,000 $15,000 $16,000 $17,000 $18,000 9/05 11/05 1/06 3/06 5/06 7/06 9/06 11/06 1/07 3/07 5/07 7/07 9/07 11/07 1/08 3/08 5/08 7/08 9/08 Traditional
Slide 28: 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 29: Domestic Vessels Dayrates and Utilization
$100 change in dayrate = $1.2M 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. 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07 9/07 12/07 3/08 6/08 9/08 DOMESTIC VESSELS DOMESTIC VESSELS Dayrates and Utilizati
Slide 30: Domestic Vessel Dayrates
$3,000 $5,000 $7,000 $9,000 $11,000 $13,000 $15,000 $17,000 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07 9/07 12/07 3/08 6/08 9/08 * Dayrate information is for all classes of vessels operating in the U.S. Traditional Vessels New Vessels DOMESTIC VESSEL DOMESTIC VESSEL DAYRATES DAYRATES
Slide 31: 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 32: 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 33: 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 34: 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 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 57 vessels under construction at 9/30/08. * Since 4/01/05, 37 vessels have been scrapped and 130 have been sold. * Total fleet count excludes 47 stacked vessels. Out With the Old – In With
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