Tidewater Inc. · NYSE:TDW
Tidewater — Louisiana Energy Conference (May 2009)
38 slides from Tidewater's conference presentation, May 18, 2009
Slide 1: Tidewater at the Louisiana Energy Conference
May 14, 2009 Dean E. Taylor Chairman, President & CEO Quinn P. Fanning Executive VP, CFO Joseph M. Bennett Executive VP & Chief Investor Relations Officer Exhibit 99.1 TIDEWATER th Louisiana Energy Conference Dean E. Taylor Chairman, President & CEO Quinn P. Fanning Executive VP, CFO Joseph M. Benne
Slide 2: Forward-Looking Statements
2 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 th
Slide 3: Safety Record Rivals Leading Companies
3 SAFETY RECORD RIVALS SAFETY RECORD RIVALS LEADING COMPANIES LEADING COMPANIES Total Recordable Incident Rates
Slide 4: Tidewater Today
4 Solid safety record Unmatched global footprint Strong balance sheet Entire fleet earning solid returns Continuing to invest in new vessels Disciplined investment and capital management TIDEWATER TODAY TIDEWATER TODAY
Slide 5: Tidewater Tomorrow
5 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 (Not much has changed!)
6 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 s
Slide 7: Many Unanswered Questions at This Time
7 How will the current financial crisis impact our industry? What will oil and gas prices do? How sensitive is hydrocarbon demand to commodity prices? New Administration’s philosophy regarding hydrocarbons? Where is E&P spending headed? How will global economic concerns impact vendors (i.e., shipyar
Slide 8: TDW's Financial Stability During Trying Times
8 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 FINANCIAL STABILITY TDW’s FINANCIAL STABILITY DURING TRYING TIMES DURING TRYING TIMES
Slide 9: Strong Balance Sheet
9 $300 $300 Long-term Debt* $1,930 $2,245 Stockholders’ Equity 1.5% 2.1% Net Debt* to Total Cap $270 $251 Cash March 2008 March 2009 (in Millions) Further Proof of Our Discipline and Sound Business Strategy Approx. $551m of Available Liquidity at 3/31/09 (Cash plus $300m Revolver) * Excludes $10.1 m
Slide 10: Selected Financial Highlights
10 (in Thousands, Except Per Share Data) Years Ended $6.39 $7.89 Earnings Per Share $348,763 $406,898 Net Earnings $489,491 $526,435 Net Cash from Operations $354,022 $473,675 Capital Expenditures $1,270,171 $1,390,835 Revenues 3/31/08 3/31/09 12/31/08 quarterly EPS and 3/31/09 quarterly EPS were th
Slide 11: Returning Value to Shareholders
11 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 2.3% yield (highest among OSX companies) RETURNING VALUE RETURNI
Slide 12: Vessel Population by Owner
12 Tidewater Competitor #1 Competitor #2 Competitor #3 Competitor #4 Avg. All Others (1,535 total vessels for 300+ owners) Competitor # 5 291 91 63 5 78 74 63 VESSEL POPULATION VESSEL POPULATION BY OWNER BY OWNER (Includes AHTS and PSV’s only) (Includes AHTS and PSV’s only) Source: ODS-Petrodata and
Slide 13: Global Vessel Fleet by Age
13 0 20 40 60 80 100 120 140 160 180 200 1965 1970 1975 1980 1985 1990 1995 2000 2005 Of the total 2,195 vessels, 344 vessels are 30+ yrs old , 94 GLOBAL VESSEL GLOBAL VESSEL FLEET BY AGE FLEET BY AGE Source: ODS-Petrodata and Tidewater (Includes AHTS and PSV’s only) Estimated as of March 2009 As of
Slide 14: Vessel / Rig Ratio
14 2,195 Global Vessel Count (AHTS & PSV only) 579 Global Working Rigs 3.8 Vessel to Rig Ratio 169 New rigs under construction Current Vessel Demand Dynamics: Possible Incremental Vessel Demand: (???Cancellations???) VESSEL / RIG RATIO VESSEL / RIG RATIO Source: ODS-Petrodata and Tidewater Estimated
Slide 15: Working Rig Counts
Jackups Semi Drillships June 2008 379 145 30 March 2009 338 154 36 Variance (41) 9 6 15 GOM accounts for 32 of the 41 working jackup count variance WORKING RIG COUNTS WORKING RIG COUNTS GOM accounts for 32 of the 41 working jackup count variance Source: ODS-Petrodata and Tidewater
Slide 16: International Strength
16 Unique global footprint; 50+ years of Int’l experience For FY ‘09, Int’l was 89.2% of revenues & 92.6% of profits 44 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
Slide 17: Current Revenue Mix: Quality of Customer Base
NOC's 23% Others 37% Super Majors 40% 17 Our top 10 customers (5 Super Majors, 4 NOC’s and one large independent) currently account for 60% of our revenue CURRENT REVENUE MIX CURRENT REVENUE MIX Quality of Customer Base Quality of Customer Base Our top 10 customers (5 Super Majors, 4 NOC’s and one l
Slide 18: International Strength: Active Vessel Count by Region
18 Active Vessel Count By Region (excludes stacked vessels) North America 25 (7%) Central/South America 98 (28%) West Africa 137 (39%) Far East 51 (15%) Europe/M.E. 37 (11%) 93% International 7% Domestic (vs. 65% International and 35% Domestic ten years ago) TIDEWATER TODAY TIDEWATER TODAY INTERNATI
Slide 19: Rigs Contracted by Our Top 10 Customers
19 * PEMEX alone has 31 of the 94 jackups Jackups Semi Drillships March 2009 working rigs 338 154 36 Working for top 10 customers 94 * 76 20 RIGS CONTRACTED BY RIGS CONTRACTED BY OUR TOP 10 CUSTOMERS OUR TOP 10 CUSTOMERS * PEMEX alone has 31 of the 94 jackups Source: ODS-Petrodata and Tidewater 28%
Slide 20: Growing Industry's Largest New Fleet
20 Ability to support continued fleet renewal and growth (Fiscal 2008 CapEx of $354 MM and Fiscal 2009 of $474 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
Slide 21: Largest New Fleet in the Industry
21 $1,355m 72 PSV’s $2,889m (2) 207 TOTALS: (1) $275m 65 Crewboats & Tugs $1,259m 70 AHTS Estimated Cost Vessel Count At 3/31/09, 142 new vessels in fleet with 5.2 year average age (1) Includes vessels added to the fleet financed by bareboat charter. (2) $2,290m funded through 3/31/09. *Excludes ENS
Slide 22: Largest New Fleet in the Industry... and Counting
22 Building vessels worldwide Due diligence focused on yards Tidewater staff supervise on site Vessels Under Construction As of March 31, 2009 46 Total 25 PSV 5 Crew and Tug 16 AHTS Count Estimated delivery schedule – 26 in FY’ 10, 7 in FY’ 11, 11 in FY’ 12 and 2 thereafter. CAPX of $327m in FY’ 10,
Slide 23: Improving Average Age of Tidewater Fleet
23 Assumptions: 1) Average 45 vessel disposals per year in future (averaged 47 per year last three years). 2) Include 46 vessels under construction in year delivered plus additional newbuilds/acquisitions from approximately $500 million per year of future commitments. Tidewater is not committed to s
Slide 24: Fleet Cash Operating Margins
$0 $100 $200 $300 $400 $500 $600 $700 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Fiscal Years 24 New Vessels Traditional Vessels Note: Cash operating margins are defined as vessel revenue less vessel operating expenses. 38.6% 37.6% 46.5% 41.9% 38.7% 49.1% 54.6% 51.9% FLEET CASH FLEET CASH OPE
Slide 25: Financial Strategy
25 Renew Fleet Maintain Financial Strength Deliver Results FINANCIAL STRATEGY FINANCIAL STRATEGY Renew Fleet Maintain Financial Strength Deliver Results Focused on Long Term Shareholder Value Focused on Long Term Shareholder Value
Slide 26: Tidewater at the Louisiana Energy Conference
May 14, 2009 Dean E. Taylor Chairman, President & CEO Quinn P. Fanning Executive VP, CFO Joseph M. Bennett Executive VP & Chief Investor Relations Officer TIDEWATER Dean E. Taylor Chairman, President & CEO Quinn P. Fanning Executive VP, CFO Joseph M. Bennett Executive VP & Chief Investor Relations O
Slide 27: Appendix
APPENDIX APPENDIX
Slide 28: 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 28 ** 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 share after tax gain from the sale of six KMAR vessels. EPS i
Slide 29: International Vessels Dayrates
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110% Fiscal 2005 Fiscal 2006 Fiscal 2007 Fiscal 2008 Fiscal 2009 29 Growth Total Dayrate Growth from FY‘04 +104% INTERNATIONAL VESSELS INTERNATIONAL VESSELS DAYRATES DAYRATES Growth Total Dayrate Growth from FY‘04 +104%
Slide 30: International Vessels Dayrates and Utilization
3/06 6/06 9/06 12/06 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 3/09 30 $100 change in dayrate = $10.1M in revenue 1% change in utilization = $16.9M 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,
Slide 31: International Vessels Dayrates
31 * 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 3/06 6/06 9/06 12/06 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 3/09 Traditional Vessels New Vessels INTERNATIONAL VESSELS INTERNATIONAL VESSELS DAYRATES DAYRATE
Slide 32: Domestic Vessel Dayrates
0% 20% 40% 60% 80% 100% 120% 140% Fiscal 2005 Fiscal 2006 Fiscal 2007 Fiscal 2008 Fiscal 2009 32 Total Growth Percentage Total Dayrate Growth from FY’ 04 + 136% DOMESTIC VESSEL DOMESTIC VESSEL DAYRATES DAYRATES Total Growth Percentage Total Dayrate Growth from FY’ 04 + 136%
Slide 33: Domestic Vessels Dayrates and Utilization
3/06 6/06 9/06 12/06 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 3/09 33 * Dayrate and utilization information is for all classes of vessels operating in the U.S. 40% 50% 60% 70% 80% 90% $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 DOMESTIC VESSELS DOMESTIC VESSELS Dayrates and Utilization Dayrates an
Slide 34: Domestic Vessel Dayrates
$3,000 $5,000 $7,000 $9,000 $11,000 $13,000 $15,000 $17,000 3/06 6/06 9/06 12/06 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 3/09 34 * Dayrate information is for all classes of vessels operating in the U.S. Traditional Vessels New Vessels DOMESTIC VESSEL DOMESTIC VESSEL DAYRATES DAYRATES
Slide 35: Superior Operating Capabilities Drive Our Competitive Advantage
35 – 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 constructio
Slide 36: Vessel Acquisition Alternatives
36 Usually one-off purchases, often to match specific client needs Immediate delivery Entry price at “full” market rate Built to Tidewater quality standards 18 + months to delivery Potential shipyard backlog Contract terms (e.g., fixed price, LDs, etc.) Resource requirements to oversee construction
Slide 37: Considerations in Designing Our Optimal Vessel Mix
37 Custom/ Specialized Standardized Small Ultra big Renew existing Expand to niche markets Drilling, production Subsea, maintenance, 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 contin
Slide 38: Largest New Fleet in the Industry: Out With the Old, In With the New
0 100 200 300 400 500 Active Fleet Dispositions 38 Net vessels added to the fleet since January 2000, including 46 vessels under construction at 3/31/09. * Since 4/01/05, 38 vessels have been scrapped and 147 have been sold. * Total fleet count excludes 61 stacked vessels as of 3/31/09. Out With the