Tidewater Inc. · NYSE:TDW
Tidewater — UBS Global Oil and Gas Conference 2014
30 slides from Tidewater's conference presentation, May 28, 2014
Slide 1: UBS Global Oil and Gas Conference
UBS Global Oil and Gas Conference May 22, 2014 Jeffrey M. Platt President & CEO Joseph M. Bennett EVP & Chief IRO Exhibit 99.1
Slide 2: Forward-Looking Statements
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
Slide 3: Key Tidewater Takeaways
• Consistent goal of “Best in Class” safety and compliance culture • History of earnings growth and solid returns • Largest “NEW” OSV fleet in the industry, operating in over 50 countries with ~9,000 employees worldwide • Solid balance sheet and ready liquidity allows us to continue to act upon avai
Slide 4: Safety Record Rivals Leading Companies
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. Safety Record Rivals Leading Companies • Safe Operations is Priority #1 • Stop Work Obligation • Safety performance is 25% of mgt. ince
Slide 5: Working Offshore Rig Trends
Source: ODS-Petrodata Note: 44 “Other” rigs, along with the Jackups and Floaters, provide a total working rig count of 720 in May 2014. Working Offshore Rig Trends
Slide 6: Drivers of our Business "Peak to Present"
July 2008 (Peak) Jan. 2011 (Trough) May 2014 Working Rigs 603 538 720 Rigs Under Construction 186 118 250 OSV Global Population 2,033 2,599 3,140 OSV’s Under Construction 736 367 462 OSV/Rig Ratio 3.37 4.83 4.36 Source: ODS-Petrodata and Tidewater Drivers of our Business “Peak to Present”
Slide 7: Tidewater's Active Fleet
Year Built Deepwater vessels Towing Supply/Supply Other vessels 245 “New” vessels – 6.9 avg yrs 23 “Traditional” vessels – 26.6 avg yrs Tidewater’s Active Fleet As of March 31, 2014
Slide 8: Vessel Population by Owner
Source: ODS-Petrodata and Tidewater Vessel Population by Owner (AHTS and PSVs only) Estimated as of May 2014
Slide 9: Our Global Footprint – Vessel Count by Region
In 4Q FY 2014, ~12% of vessel revenue was generated in the U.S. by ~ 17 vessels; however, <15 other U.S.-flagged vessels are currently operating in International regions that could be re-deployed to the U.S. GOM. In addition, Tidewater has currently under construction five additional U.S.-flagged de
Slide 10: Gn nem ay
Gn nem ay x TIDEWATER
Slide 11: A Broad Portfolio of New High Spec OSVs
Current Future DWT Fleet CIP Fleet Current Future BHP Fleet CIP Fleet Current Future BHP Fleet CIP Fleet A Broad Portfolio of New High Spec OSVs Deepwater PSV Deepwater PSV Deepwater AHTS Deepwater AHTS Towing Supply Towing Supply Vessel information is as of 3/31/14. CIP=Construction in Process. 5,0
Slide 12: The Largest Modern OSV Fleet in the Industry
Vessel Count (2) Total Cost (2) Average Cost per Vessel Deepwater PSVs 99 $2,771m $28.0m Deepwater AHTSs 12 $387m $32.3m Towing Supply/Supply 111 $1,670m $15.0m Other 53 $227m $4.3m TOTALS: 275 $5,055m (1) $18.4m (1) ~$4.5b (89%) funded through 3/31/14 (2) Vessel count and total cost is net of 26 ve
Slide 13: Vessels Under Construction…and More to Come
Count Deepwater PSVs 23 Deepwater AHTSs - Towing Supply/Supply 6 Other 1 Total 30 Estimated delivery schedule – 12 in FY ’15, 16 in FY ‘16 and 2 thereafter. CAPX of $368m in FY ’15, $193m in FY ‘16 and $12m thereafter. Vessels Under Construction* As of March 31, 2014 …and More to Come
Slide 14: Strong Financial Position Provides Strategic Optionality
Cash & Cash Equivalents $60 million Total Debt $1,515 million Shareholders Equity $2,679 million Net Debt / Net Capitalization 35% Total Debt / Capitalization 36% As of March 31, 2014 ~$660 million of available liquidity as of 3/31/14, including $600 million of unused capacity under the company’s re
Slide 15: Debt Maturities Limited for Several Years
Debt Maturities as of 3/31/14 Limited for Several Years Fiscal Year
Slide 16: EPS
** EPS in Fiscal is exclusive of the $.30 per share after tax impairment charge. EPS in Fiscal is exclusive of the $.74 per share after tax gain from the sale of six KMAR vessels. EPS in Fiscal is exclusive of $.37 per share of after tax gains from the sale of offshore tugs. EPS in Fiscal is exclusi
Slide 17: Active Vessel Dayrates & Utilization by Segment
Impact of $7.4 million of retroactive revenue recorded in September quarter is excluded from average dayrates and included in the respective March and June quarterly average dayrates. Utilization stats exclude stacked vessels. Active Vessel Dayrates & Utilization by Segment
Slide 18: New Vessel Trends by Vessel Type: Deepwater PSVs
Q4 Fiscal Avg Day Rate: $29,735 Utilization: 86.1% $174 million, or 48%, of Vessel Revenue in Q4 Fiscal New Vessel Trends by Vessel Type Deepwater PSVs
Slide 19: New Vessel Trends by Vessel Type: Towing Supply/Supply Vessels
Q4 Fiscal 2014 Avg Day Rate: $15,126 Utilization: 84.4% $121 million, or 33%, of Vessel Revenue in Q4 Fiscal New Vessel Trends by Vessel Type Towing Supply/Supply Vessels
Slide 20: Tidewater's New Subsea Business
Recent delivery of six work-class remotely operated vehicles (ROV ) Tidewater’s New Subsea Business
Slide 21: Tidewater's Future
• Continue to improve upon stellar safety and compliance programs • Maintain solid balance sheet and financial flexibility to deal with industry uncertainties and seize opportunities when presented • Disciplined deployment of cash to expand vessel and ROV fleet capabilities • Return capital to share
Slide 22: UBS Global Oil and Gas Conference
UBS Global Oil and Gas Conference May 22, 2014 Jeffrey M. Platt President & CEO Joseph M. Bennett EVP & Chief IRO
Slide 23: P rwewarer
P rwewarer ROMS POLLUK
Slide 24: The Worldwide OSV Fleet
Source: ODS-Petrodata and Tidewater As of May 2014, there are approximately additional AHTS and PSV’s (~15% of the global fleet) under construction. Global fleet is estimated at 3,140 vessels, including ~700 vessels that are 25+ yrs old (25%). The Worldwide OSV Fleet (Includes AHTs and PSVs only) Es
Slide 25: New Vessel Trends by Vessel Type: Deepwater AHTS
Q4 Fiscal 2014 Avg Day Rate: $31,158 Utilization: 73.9% $25 million, or 7%, of Vessel Revenue in Q4 Fiscal New Vessel Trends by Vessel Type Deepwater AHTS
Slide 26: Financial Strategy Focused on Creating Long-Term Shareholder Value
Maintain Maintain Financial Strength Financial Strength EVA-Based Investments EVA-Based Investments On Through-cycle Basis On Through-cycle Basis Deliver Results Deliver Results Financial Strategy Focused on Creating Long-Term Shareholder Value
Slide 27: Fleet Renewal & Expansion Largely Funded by CFFO
Over a 15-year period, Tidewater has invested ~$5.2 billion in CapEx, and paid out ~$1.3 billion through dividends and share repurchases. Over the same period, CFFO and proceeds from dispositions were ~$3.9 billion and ~$800 million, respectively. Fleet Renewal & Expansion Largely Funded by CFFO
Slide 28: Total Revenue and Margin Fiscal 2008-2014
Note: Vessel operating margin is defined as vessel revenue less vessel operating expenses Prior peak period (FY2009) averaged quarterly revenue of $339M, quarter operating margin of $175.6M at 51.8% Total Revenue and Margin Fiscal 2008-2014
Slide 29: Cyclical Upturn should Drive Margin Expansion
Vessel Cash Operating Margin ($) Vessel Cash Operating Margin (%) $156 million Vessel Margin in Q4 FY2014 (96% from New Vessels) Q4 FY2014 Vessel Margin: 43% Cyclical Upturn should Drive Margin Expansion
Slide 30: Quality of Customer Base
Super Majors 37% NOC's 22% Others 41% Our top 10 customers in Fiscal 2014 (4 Super Majors, 4 NOC’s, 1 IOC’s and 1 independent) accounted for 62% of our revenue Current Revenue Mix Quality of Customer Base