Tidewater Inc. · NYSE:TDW
Tidewater — Howard Weil 36th Annual Energy Conference (April 2008)
37 slides from Tidewater's conference presentation, Apr 9, 2008
Slide 1: Howard Weil 36th Annual Energy Conference
April 8, 2008 Exhibit 99.1 April 8, 2008 Howard Weil 36 th Annual Energy Conference Dean E. Taylor - Chairman, President & CEO
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: Our Workplace
OUR WORKPLACE
Slide 4: 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 SAFETY RECORD RIVALS LEADING COMPANIES Total Recordable Incident Rates
Slide 5: Tidewater Today
Solid safety record International presence driving earnings Use cash to grow industry’s largest new fleet – earning great returns Mature vessels providing continued outstanding returns A strong balance sheet Returns to shareholders: share repurchases and dividends TIDEWATER TODAY
Slide 6: Tidewater Tomorrow
Fleet with expanded capabilities Increased international presence Generating solid returns regardless of market cycle Financially strong Creating value for shareholders TIDEWATER TOMORROW
Slide 7: How Do We Accomplish Our Vision?
Deploy cash to renew fleet with expanded capabilities Push dayrates and utilization to grow profits and cash flow Balance long-term and spot market opportunities Right acquisitions, right price, right time Utilize balance sheet strength Focus on creating shareholder value HOW DO WE ACCOMPLISH OUR VI
Slide 8: Why a Positive Outlook?
Favorable commodity price environment International E&P spending up 16% in 2008 (Lehman Bros.) More vessels needed - High rig utilization - New rigs and FPSO’s coming - Strong seismic and construction markets Largest new fleet in the industry Mature vessels earning excellent returns INTERNATIONAL!!!
Slide 9: Vessel Population by Owner
294 83 71 61 58 1,432 Tidewater Competitor #1 Competitor #2 Competitor #3 Competitor #4 All Others VESSEL POPULATION BY OWNER (Includes AHTS and PSV’s only) Estimated as of March 2008 Source: ODS-Petrodata and Tidewater
Slide 10: Basic Rig Facts
573 Working Rigs 136 Inactive Rigs 163 New Rigs (52 in 2008, 58 in 2009, 39 in 2010, 14 in 2011) BASIC RIG FACTS In yard getting repaired Warm stacked/Standby Hot stacked Cold stacked/other Source: ODS-Petrodata Estimated as of March 2008
Slide 11: Floating Production System Facts
276 Active 11 Inactive 88 Under construction (41 in 2008, 27 in 2009, 12 in 2010, 8 thereafter) FLOATING PRODUCTION SYSTEM FACTS Source: ODS-Petrodata (Includes FPSO, FSO, Spars, TLP, Other) Estimated as of March 2008
Slide 12: 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 2,000 active vessels GLOBAL VESSEL FLEET BY AGE (Includes AHTS and PSV’s only) Source: ODS-Petrodata and Tidewater As of 3/31/08, there are As of 3/31/08, there are approximately 710 additional AHTS approximately 710
Slide 13: 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 2,000 active vessels – 971 over 20 years old ( 302>30 yrs., 495 25-29 yrs., 174 20-24 yrs.) GLOBAL VESSEL FLEET BY AGE (Includes AHTS and PSV’s only) Source: ODS-Petrodata and Tidewater As of 3/31/08, there are As of
Slide 14: Vessel / Rig Ratio
2,000 Global Vessel Count (AHTS & PSV only) 573 Global Working Rigs 3.5 Vessel to Rig Ratio 58 Older rigs in yards getting prepared for work 163 New rigs under construction 88 FPSO, FSO, Spars, other under construction VESSEL / RIG RATIO Current Vessel Demand Dynamics: Incremental Vessel Demand: Sou
Slide 15: International Presence Driving Earnings
Five decades of international experience Growing industry’s largest internationally diverse fleet Continue to grow international presence Higher utilization and dayrates for new & mature vessels 12/07 qtr, Int’l was 88% of revenues & 98% of profits 2008 Int’l E&P spending up faster than overall spen
Slide 16: International Presence Driving Earnings
89% International 11% Domestic (vs. 57% International and 43% Domestic ten years ago) Active Vessel Count By Region (excludes stacked vessels) North America 41 (11%) (11%) Central/South America 100 (27%) (27%) West Africa 145 (39%) (39%) Far East 48 (13%) (13%) Europe/M.E. 39 (10%) (10%) TIDEWATER T
Slide 17: International Vessel Dayrates
Growth Total Dayrate Growth from FY‘04 +76%, New vessels +88%, Mature vessels +45% 0% 10% 20% 30% 40% 50% 60% 70% 80% Fiscal 2005 Fiscal 2006 Fiscal 2007 12/31/07 Qtr. INTERNATIONAL VESSEL DAYRATES Growth
Slide 18: Use Cash to Grow Industry's Largest New Fleet
Commit $300-$500 MM per year for fleet renewal Paid from internal cash flow CapEx of $292 MM in nine months ended 12/31/07 Always weigh build vs. buy criteria Strive for a Balance Between Performance, Growth and Financial Strength USE CASH TO GROW INDUSTRY’S LARGEST NEW FLEET
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Slide 21: New Vessel / Mature Vessel Profitability
$0 $100 $200 $300 Fiscal 2004 Fiscal 2005 Fiscal 2006 Fiscal 2007 New Vessels Pre-Tax Profits Mature Vessels Pre-Tax Profits *Vessel pre-tax profits are defined as vessel revenue less vessel operating costs less vessel depreciation. NEW VESSEL / MATURE VESSEL PROFITABILITY
Slide 22: 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 49 vessels under construction at 3/31/08. * Since 4/01/05, 28 vessels have been scrapped and 114 have been sold. * Total fleet count excludes 53 stacked vessels. Out With the Old – In With
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Slide 25: Significant Earnings Growth
$0 $100 $200 $300 $400 Fiscal 2004 Fiscal 2005 Fiscal 2006 Fiscal 2007 78% Three-Year Compounded Annual Earnings Growth Rate $59M $101M $193M $336M ** Net earnings in Fiscal 2004 is exclusive of the $17.2 million after tax impairment charge. Net earnings in Fiscal 2006 is exclusive of the $42.8 mill
Slide 26: Returning Value to Shareholders
Current repurchase authority $250 MM Spent $196.4 MM through 3/31/08 Since 8/05, have repurchased 8.5 MM shares for $462.5 MM, ($54.14 per share) Current 1.2% yield (highest among OSX companies) One of eight OSX companies paying dividends RETURNING VALUE TO SHAREHOLDERS SHARE REPURCHASE PROGRAM DIVI
Slide 27: Goals & Objectives
Renew Fleet Maintain Financial Strength Deliver Results GOALS & OBJECTIVES Consistent Over Last Several Years
Slide 28: Howard Weil 36th Annual Energy Conference
April 8, 2008 April 8, 2008 Howard Weil 36 th Annual Energy Conference Dean E. Taylor - Chairman, President & CEO
Slide 29: Appendix
APPENDIX
Slide 30: International Vessels Dayrates and Utilization
$100 change in dayrate = $10.5M in revenue 1% change in utilization = $13.9M in revenue * Dayrate and utilization information is for all classes of vessels operating international. 12/04 3/05 6/05 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07 9/07 12/07 INTERNATIONAL VESSELS Dayrates and Utilization 40%
Slide 31: International Vessels Dayrates
$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 12/04 3/05 6/05 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07 9/07 12/07 * Dayrate information is for all classes of vessels operating international. Mature Vessels New Vessels INTERNATIONAL VESSELS DAYRATE
Slide 32: Domestic Vessel Dayrates
0% 20% 40% 60% 80% 100% 120% 140% Fiscal 2005 Fiscal 2006 Fiscal 2007 Total Growth Percentage From FY’04 through 12/31/07 Total Growth 108% DOMESTIC VESSEL DAYRATES
Slide 33: Domestic Vessels Dayrates and Utilization
12/04 3/05 6/05 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07 9/07 12/07 $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. 20% 30% 40% 50% 60% 70% 80% $4,000 $5,000 $6,000 $7,000
Slide 34: Domestic Vessel Dayrates
$3,000 $5,000 $7,000 $9,000 $11,000 $13,000 $15,000 12/04 3/05 6/05 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07 9/07 12/07 * Dayrate information is for all classes of vessels operating in the U.S. Mature Vessels New Vessels DOMESTIC VESSEL DAYRATES
Slide 35: 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 36: 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 37: 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
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