Tidewater Inc. · NYSE:TDW
Tidewater — Pritchard Capital Partners 9th Annual Energize Conference 2012
29 slides from Tidewater's conference presentation, Jan 10, 2012
Slide 1: Pritchard Capital Partners 9th Annual Energize Conference
PRITCHARD CAPITAL PARTNERS 9 TH ANNUAL ENERGIZE CONFERENCE Jan. 4, 2012 JOSEPH M. BENNETT Executive VP and Chief Investor Relations Officer Exhibit 99.1 PRITCHARD CAPITAL PARTNERS TH ANNUAL ENERGIZE CONFERENCE PRITCHARD CAPITAL PARTNERS TH ANNUAL ENERGIZE CONFERENCE Jan. 4, 2012 JOSEPH M. BENNETT Ex
Slide 2: Forward-Looking Statements
2 Phone: 504.568.1010 Fax: 504.566.4580 Web: www.tdw.com Email: [email protected] FORWARD-LOOKING STATEMENTS 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 sta
Slide 3: Key Takeaways
3 KEY TAKEAWAYS 3 KEY TAKEAWAYS KEY TAKEAWAYS • Culture of safety & operating excellence • Macro picture improving with increased working rigs • History of earnings growth and solid returns • Unmatched scale and scope of operations • World’s largest and newest fleet provides basis for continued earn
Slide 4: Safety Record Rivals Leading Companies
4 SAFETY RECORD RIVALS LEADING COMPANIES 4 SAFETY RECORD RIVALS LEADING COMPANIES SAFETY RECORD RIVALS LEADING COMPANIES 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 2002 2003 2004 2005 2006 2007 2008 2009 2010 CALENDAR YEARS TOTAL RECORDABLE INCIDENT RATES TIDEWATER DOW CHEMICAL CHEVRON EXXON/MOBIL
Slide 5: Working Rig Counts: Peak to Present
5 Source: ODS-Petrodata and Tidewater Jackups Semis Drillships Total June 2008 (Peak) 379 145 30 554 Late-April 2010 (pre-Horizon) 323 150 46 519 Nov. 2011 (post-Horizon) 343 169 54 566 WORKING RIG COUNTS “Peak to Present” 5 GOM accounts for of the working jackup count variance from June 2008 (Peak)
Slide 6: The Worldwide OSV Fleet – Retirements Expected to Exceed New Deliveries
6 Source: ODS-Petrodata and Tidewater 6 THE WORLDWIDE OSV FLEET – RETIREMENTS EXPECTED TO EXCEED NEW DELIVERIES (Includes AHTS and PSV’s only) Estimated as of November 2011 Vessels > 25 years old today As of early-November 2011, there are approximately 447 additional AHTS and PSV’s (~17% of the glob
Slide 7: History of Earnings Growth and Solid Through-Cycle Returns
7 HISTORY OF EARNINGS GROWTH AND SOLID THROUGH-CYCLE RETURNS 7 Adjusted Return On Avg. Equity 4.3% 7.2% 12.4% 18.5% 18.3% 19.5% 11.4% 4.0% Adjusted EPS** Adjusted EPS** HISTORY OF EARNINGS GROWTH AND SOLID THROUGH-CYCLE RETURNS HISTORY OF EARNINGS GROWTH AND SOLID THROUGH-CYCLE RETURNS $2.40 $5.20 $
Slide 8: Our Global Footprint
8 Americas 66 (25%) SS Africa/Europe 125 (48%) MENA 37 (14%) Asia/Pac 32 (12%) OUR GLOBAL FOOTPRINT Vessel Distribution by Region (excludes stacked vessels – as of 9/30/11) 8 OUR GLOBAL FOOTPRINT Vessel Distribution by Region (excludes stacked vessels – as of 9/30/11) OUR GLOBAL FOOTPRINT Vessel Dis
Slide 9: The Largest Modern OSV Fleet in the Industry
9 (1) $3,446m (87%) funded through 9/30/11 THE LARGEST MODERN OSV FLEET IN THE INDUSTRY…. 9 Vessel Count Estimated Cost AHTS 103 $1,805m PSV’s 88 $1,842m Crewboats & Tugs 71 $301m TOTALS: 262 $3,948m (1) At 9/30/11, 201 new vessels were in our fleet with ~5.2 year average age Vessel Commitments Jan.
Slide 10: ...And More to Come
10 Count AHTS 16 PSV 19 Crew and Tug 5 Total 40 CAPX of $306m in remainder of FY ‘12, $164m in FY ‘13 and $32m in FY ’14. …. AND MORE TO COME 10 Estimated delivery schedule – 20 in FY ‘12, 13 in FY ‘13 and 7 thereafter. Vessels Under Construction* As of September 30, 2011 * Includes 12 new vessel pu
Slide 11: Recent Vessel Commitments
11 RECENT VESSEL COMMITMENTS Amounts depict vessel count and total cost in quarter commitment was made to acquire (not when delivery or payments were made) 11 RECENT VESSEL COMMITMENTS RECENT VESSEL COMMITMENTS $96M $55M $72M $179M 1 MPSV 1 PSV 4 AHTS 6 AHTS 6 AHTS 3 PSV’s 53 vessels over last 2+ ye
Slide 12: Fleet Renewal & Expansion Funded by CFFO Through Fiscal 2011
12 FLEET RENEWAL & EXPANSION FUNDED BY CFFO THROUGH FISCAL 2011 12 Over a 12-year period, Tidewater has invested $3.8 billion in CapEx ($3.3 billion in the “new” fleet), and paid out $995 million through dividends and share repurchases. Over the same period, CFFO and proceeds from dispositions were
Slide 13: Recent Financings Will Fund Growth at an Attractive Relative Cost
13 Senior Unsecured Notes $590 million ~ 8.5 years Weighted Average Coupon 4.30% Term Loan $125 million Revolving Line of Credit $450 million Remaining Term ~ 4½ years Interest Rate LIBOR plus 1.5% to 2.25%, based on leverage RECENT FINANCINGS WILL FUND GROWTH AT AN ATTRACTIVE RELATIVE COST 13 (as o
Slide 14: Strong Financial Position Provides Strategic Optionality
14 Cash & Cash Equivalents $302 million Total Debt $825 million Shareholders Equity $2,513 million Net Debt / Net Capitalization 17% Total Debt / Capitalization 25% STRONG FINANCIAL POSITION PROVIDES STRATEGIC OPTIONALITY 14 As of September 30, 2011 ~$900 million of liquidity as of 9/30/11, includin
Slide 15: Where Could Fiscal 2014 Find Us?
15 WHERE COULD FISCAL 2014 FIND US? Potential for Earnings Acceleration 271 vessel assumption (201 current new vessels + 40 under construction + ~ 20 additional new vessels per year for two years). 15 ~$3.00 EPS ~$5.15 EPS ~$8.70 EPS WHERE COULD FISCAL 2014 FIND US? Potential for Earnings Accelerati
Slide 16: Financial Strategy Focused on Creating Long-Term Shareholder Value
16 16 FINANCIAL STRATEGY FOCUSED ON CREATING LONG-TERM SHAREHOLDER VALUE FINANCIAL STRATEGY FOCUSED ON CREATING LONG-TERM SHAREHOLDER VALUE FINANCIAL STRATEGY FOCUSED ON CREATING LONG-TERM SHAREHOLDER VALUE Maintain Maintain Financial Strength Financial Strength EVA-Based Investments EVA-Based Inves
Slide 17: Pritchard Capital Partners 9th Annual Energize Conference
PRITCHARD CAPITAL PARTNERS 9 TH ANNUAL ENERGIZE CONFERENCE Jan. 4, 2012 JOSEPH M. BENNETT Executive VP and Chief Investor Relations Officer PRITCHARD PARTNERS TH ANNUAL ENERGIZE CONFERENCE Jan. 4, 2012 JOSEPH M. BENNETT Executive VP and Chief Investor Relations Officer
Slide 18: Appendix
18 APPENDIX 18 APPENDIX APPENDIX
Slide 19: International Strength
19 INTERNATIONAL STRENGTH 19 Unique global footprint 50+ years of Int’l experience International (non U.S.) markets generally characterized by: • More growth • Longer contracts • Better utilization • Higher dayrates Solid customer base of NOC’s and IOC’s INTERNATIONAL STRENGTH INTERNATIONAL STRENGTH
Slide 20: Vessel Population by Owner
20 Source: ODS-Petrodata and Tidewater 20 VESSEL POPULATION BY OWNER (AHTS and PSV’s only) – Estimated as of November 2011 Tidewater Competitor #2 Competitor #3 Competitor #4 Competitor # 5 Competitor #1 Avg. All Others (1,966 total vessels for 350+ owners) Tidewater AHTS and PSV fleet includes vess
Slide 21: Fleet Cash Operating Margins
21 FLEET CASH OPERATING MARGINS Note: Cash operating margins are defined as vessel revenue less vessel operating expenses 21 FLEET CASH OPERATING MARGINS FLEET CASH OPERATING MARGINS $0 $100 $200 $300 $400 $500 $600 $700 $800 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Traditional Ve
Slide 22: Through-Cycle, EVA-Based Investment; Balance Between Buy and Build
22 THROUGH-CYCLE, EVA-BASED INVESTMENT; BALANCE BETWEEN “BUY” and “BUILD” 22 Fiscal Year Actual vessel deliveries through 9/30/11; estimated vessel deliveries based on commitments to build or acquire as of 9/30/11 Through 9/30/11, vessel commitments include 262 vessels with a capital cost of $3.948
Slide 23: Recent Financial Results Reflect Cyclical Downturn
23 Six Months Ended 9/30/11 9/30/10 Revenues $506 $530 Net Earnings* $42 $59 EPS* $0.81 $1.15 Net Cash from Operations $87 $153 Capital Expenditures $155 $391 * Excludes $22.1 million, or $0.43 per share, goodwill impairment charge in September 2011 RECENT FINANCIAL RESULTS REFLECT CYCLICAL DOWNTURN
Slide 24: Rigs Contracted by Our Top 10 Customers
24 Source: ODS-Petrodata and Tidewater RIGS CONTRACTED BY OUR TOP 10 CUSTOMERS (Estimated as of November 2011) 24 Other Operators Top 10 Customers Tidewater’s top 10 customers contract ~24% of the working worldwide jackup fleet and ~50% of the working worldwide floater fleet Jackups (343 Working Rig
Slide 25: Current Revenue Mix
25 CURRENT REVENUE MIX Quality of Customer Base 25 CURRENT REVENUE MIX Quality of Customer Base CURRENT REVENUE MIX Quality of Customer Base Our top 10 customers in Fiscal 2011 (5 Super Majors, 3 NOC’s and 2 large independents) accounted for 63% of our revenue Super Majors 36% NOC's 28% Others 36%
Slide 26: Significant Average Age Improvement
26 SIGNIFICANT AVERAGE AGE IMPROVEMENT 26 SIGNIFICANT AVERAGE AGE IMPROVEMENT SIGNIFICANT AVERAGE AGE IMPROVEMENT Assumptions: 1) Average 45 vessel disposals per year in future (versus an average of 52 vessel dispositions per year over last 3 years). 2) Includes 40 vessels under construction, includ
Slide 27: Vessel Dayrates by Segment
27 VESSEL DAYRATES BY SEGMENT 27 VESSEL DAYRATES BY SEGMENT VESSEL DAYRATES BY SEGMENT $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 Americas Asia/Pac MENA Sub Sah Africa
Slide 28: Vessel Utilization by Segment
28 VESSEL UTILIZATION BY SEGMENT 28 VESSEL UTILIZATION BY SEGMENT VESSEL UTILIZATION BY SEGMENT 30% 40% 50% 60% 70% 80% 90% Americas Asia/Pac MENA Sub Sah Africa
Slide 29: Returns vs the Market: Five Year Stockholder Return
29 RETURNS vs the MARKET FIVE YEAR STOCKHOLDER RETURN 29 OSX 42% S&P 500 14% DJIA 27% TDW 18% RETURNS vs the MARKET FIVE YEAR STOCKHOLDER RETURN RETURNS vs the MARKET FIVE YEAR STOCKHOLDER RETURN -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% 60.0% 80.0% TDW DJIA S&P 500 OSX
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