Tidewater Inc. · NYSE:TDW
Tidewater — 2012 Johnson Rice & Co. Energy Conference
32 slides from Tidewater's conference presentation, Oct 9, 2012
Slide 1: 2012 Johnson Rice & Co. Energy Conference
2012 JOHNSON RICE & CO. ENERGY CONFERENCE Executive Vice President and Chief Investor Relations Officer President and CEO Exhibit 99.1 October 2, 2012 2012 JOHNSON RICE & CO. ENERGY CONFERENCE Joseph M. Bennett Jeffrey M. Platt
Slide 2: Forward-Looking Statements
2 FORWARD-LOOKING STATEMENTS 2 Phone: 504.568.1010 • Fax: 504.566.4580 • Email: [email protected] Web: www.tdw.com 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 oth
Slide 3: Key Takeaways
3 KEY TAKEAWAYS KEY TAKEAWAYS • Culture of safety & operating excellence • “The Tide is Turning”– improved working rig count is positively impacting deepwater and jackup support vessels globally • History of earnings growth and solid returns • Unmatched scale and scope of operations • World’s larges
Slide 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 2011 CALENDAR YEARS TOTAL RECORDABLE INCIDENT RATES TIDEWATER DOW CHEMICAL CHEVRON EXXON/MOBIL
Slide 5: Working Offshore Rig Trends
5 WORKING OFFSHORE RIG TRENDS Source: ODS-Petrodata WORKING OFFSHORE RIG TRENDS Floaters Jackups Prior peak (summer 2008)
Slide 6: Drivers of Our Business
6 Source: ODS-Petrodata and Tidewater July 2008 (Peak) Jan. 2011 (Trough) August 2012 Working Rigs 603 538 649 Rigs Under Construction 186 118 188 OSV Global Population 2,033 2,599 2,788 OSV’s Under Construction 736 367 428 OSV/Rig Ratio 3.37 4.83 4.30 DRIVERS OF OUR BUSINESS “Peak to Present” DRIVE
Slide 7: Worldwide OSV Fleet – Retirements Expected to Exceed New Deliveries
7 Source: ODS-Petrodata and Tidewater THE WORLDWIDE OSV FLEET – RETIREMENTS EXPECTED TO EXCEED NEW DELIVERIES (Includes AHTS and PSV’s only) Estimated as of August 2012 Vessels > 25 years old today As of August 2012, there are approximately 428 additional AHTS and PSV’s (~15% of the global fleet) un
Slide 8: Vessel Population by Owner
8 Source: ODS-Petrodata and Tidewater VESSEL POPULATION BY OWNER (AHTS and PSV’s only) – Estimated as of August 2012 Tidewater Competitor #2 Competitor #3 Competitor #4 Competitor # 5 Competitor #1 Avg. All Others (2,066 total vessels for 350+ owners) Tidewater AHTS and PSV fleet includes vessel add
Slide 9: History of Earnings Growth and Solid Through-Cycle Returns
9 HISTORY OF EARNINGS GROWTH AND SOLID THROUGH-CYCLE RETURNS ** 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 in Fiscal 2007 is exclusive of $.37 per share
Slide 10: Global Strength
10 GLOBAL STRENGTH Unique global footprint; 50+ years of Int’l experience Unmatched scale and scope of operations Strength of International business complements U.S. activity Secular growth Longer contracts Better utilization Higher day rates Solid customer base of NOC’s and IOC’s
Slide 11: Our Global Footprint
11 OUR GLOBAL FOOTPRINT Vessel Distribution by Region (excludes stacked vessels – as of 6/30/12) MENA 35 Asia/Pac 31 SS Africa/Europe 129 Americas 63 (24%) (50%) (14%) (12%) In 1Q FY 2013, ~6% of vessels/revenue was generated in U.S. GOM; however, total active U.S.-flagged vessels provide good optio
Slide 12: The Largest Modern OSV Fleet in the Industry
12 Vessel Count Estimated Cost Deepwater PSVs 77 $1,835m Deepwater AHTSs 17 $497m Towing Supply/Supply 102 $1,489m Other 71 $301m TOTALS: 267 (2) $4,122m (1) (1) $3,709m (90%) funded through 6/30/12 THE LARGEST MODERN OSV FLEET IN THE INDUSTRY…. (2) Includes one Deepwater PSV, 6 Deepwater AHTS and 1
Slide 13: Vessels Under Construction
13 Count Deepwater PSVs 20 Deepwater AHTSs - Towing Supply/Supply 1 Other 5 Total 26 Estimated delivery schedule – 10 remaining in FY ‘13, 10 in FY ‘14 and 2 thereafter. CAPX of $173m remaining in FY ‘13, $103m in FY ‘14 and $137m in FY ’15. …. AND MORE TO COME Vessels Under Construction* As of June
Slide 14: Through-Cycle, EVA-Based Investment; Balance Between Buy and Build
14 THROUGH-CYCLE, EVA-BASED INVESTMENT; BALANCE BETWEEN “BUY” and “BUILD” Fiscal Year Actual vessel deliveries through 6/30/12; estimated vessel deliveries based on commitments to build or acquire as of 6/30/12 Through 6/30/12, vessel commitments include 267 vessels with a capital cost of $4.1 billi
Slide 15: Fleet Renewal & Expansion Funded by CFFO
15 FLEET RENEWAL & EXPANSION FUNDED BY CFFO THROUGH FISCAL 2012 Over a 13-year period, Tidewater has invested $4.1 billion in CapEx($3.6 billion in the “new” fleet), and paid out ~$1 billion through dividends and share repurchases. Over the same period, CFFO and proceeds from dispositions were $3.6
Slide 16: Strong Financial Position Provides Strategic Optionality
16 Cash & Cash Equivalents $241 million Total Debt $950 million Shareholders Equity $2,486 million Net Debt / Net Capitalization 22% Total Debt / Capitalization 28% STRONG FINANCIAL POSITION PROVIDES STRATEGIC OPTIONALITY As of June 30, 2012 ~$700 million of available liquidity as of 6/30/12, includ
Slide 17: Total Revenue and Margin Fiscal 2008-2013
17 Total Revenue and Margin Fiscal 2008 - 2013 Note: Vessel operating margin is defined as vessel revenue less vessel operating expenses Prior peak period (FY2009) averaged quarterly revenue of $339M, Prior peak period (FY2009) averaged quarterly revenue of $339M, quarter operating margin of $174M a
Slide 18: New Vessel Trends: Deepwater PSVs
18 New Vessel Trends by Vessel Type Deepwater PSVs $104 million, or 36%, of Vessel Revenue in Q1 Fiscal 2013 New Vessel Trends by Vessel Type Deepwater PSVs Q1 Fiscal 2013 Avg Day Rate: $24,062 Utilization: 85.9% - $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 19: New Vessel Trends: Deepwater AHTS
19 New Vessel Trends by Vessel Type Deepwater AHTS $27 million, or 9%, of Vessel Revenue in Q1 Fiscal 2013 Q1 Fiscal 2013 Avg Day Rate: $28,908 Utilization: 93.7% - $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY08 FY09 FY10 FY11 F
Slide 20: New Vessel Trends: Towing Supply/Supply Vessels
20 New Vessel Trends by Vessel Type Towing Supply/Supply Vessels $112 million, or 39%, of Vessel Revenue in Q1 Fiscal 2013 Q1 Fiscal 2013 Avg Day Rate: $13,663 Utilization: 89.3% - $0 $5,000 $10,000 $15,000 $20,000 $25,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY08 FY09 FY10
Slide 21: Potential for Future Earnings Acceleration
21 POTENTIAL FOR FUTURE EARNINGS ACCELERATION ~$3.50 EPS ~$5.50 EPS ~$9.00 EPS 264 vessel assumption (218 current new vessels + 26 under construction + 20 additional new vessels next year). Average Day rates $15,466 * $17,013 ( + 10% ) $18,714 ( + 10% ) 86.2% * 86.2% 90.0% * 6/30/12 quarterly actual
Slide 22: 2012 Johnson Rice & Co. Energy Conference
October 2, 2012 2012 JOHNSON RICE & CO. ENERGY CONFERENCE Executive Vice President and Chief Investor Relations Officer President and CEO Joseph M. Bennett Jeffrey M. Platt
Slide 23: Appendix
23 APPENDIX
Slide 24: Recent Financial Results Reflect a Turning Tide
24 Quarter Ended 6/30/12 6/30/11 Revenues $294 $255 Net Earnings $33 $25 EPS $0.65 $0.48 Net Cash from Operations $69 $27 Capital Expenditures $77 $70 RECENT FINANCIAL RESULTS REFLECT A TURNING TIDE $ in Millions, Except Per Share Data
Slide 25: New Fleet Driving Results
25 NEW FLEET DRIVING RESULTS Vessel Revenue ($) Average Fleet Count 217 Average New Vessels in Q1 $290 million Vessel Revenue in Q1 2013 (91% from New Vessels) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 New Traditional Stacked Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 26: Cyclical Upturn Should Drive Margin Expansion
26 CYCLICAL UPTURN SHOULD DRIVE MARGIN EXPANSION Vessel Cash Operating Margin ($) Vessel Cash Operating Margin (%) CYCLICAL UPTURN SHOULD DRIVE MARGIN EXPANSION $124 million Vessel Margin in Q1 FY2013 (98% from New Vessels) Q1 FY2013 Vessel Margin: 43% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 27: Current Revenue Mix: Quality of Customer Base
27 CURRENT REVENUE MIX Quality of Customer Base Super Majors 35% NOC's 23% Others 42% Our top 10 customers in Fiscal 2012 (4 Super Majors, 3 NOC’s and 3 IOC’s) accounted for 59% of our revenue
Slide 28: Rigs Contracted by Our Top 10 Customers
28 Source: ODS-Petrodata and Tidewater RIGS CONTRACTED BY OUR TOP 10 CUSTOMERS (Estimated as of August 2012) Other Operators Top 10 Customers Tidewater’s top 10 customers contract ~21% of the working worldwide jackup fleet and ~53% of the working worldwide floater fleet Jackups (360 Working Rigs) Fl
Slide 29: Significant Average Age Improvement
29 SIGNIFICANT AVERAGE AGE IMPROVEMENT Assumptions: 1) Average vessel disposals per year in future (versus an average of 50+ vessel dispositions per year over last years). 2) Includes vessels under construction(based on current estimated delivery schedule), plus additional newbuilds/acquisitions of
Slide 30: Vessel Utilization by Segment
30 VESSEL UTILIZATION BY SEGMENT 30% 40% 50% 60% 70% 80% 90% Americas Asia/Pac MENA Sub Sah Africa
Slide 31: Vessel Dayrates by Segment
31 VESSEL DAYRATES BY SEGMENT $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 Americas Asia/Pac MENA Sub Sah Africa
Slide 32: Financial Strategy Focused on Creating Long-Term Shareholder Value
32 FINANCIAL STRATEGY FOCUSED ON CREATING LONG-TERM SHAREHOLDER VALUE Deliver Results Deliver Results Maintain Maintain Financial Strength Financial Strength EVA-Based Investments EVA-Based Investments On Through-cycle Basis On Through-cycle Basis
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