TIDEWATER INC - FORM 8-K - EX-99.1 - SLIDE PRESENTATION PRESENTED JANUARY 5, 2011

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8-K - FORM 8-K - TIDEWATER INC	d8k.htm
EX-99.2 - TRANSCRIPT OF THE PRESENTATION PRESENTED JANUARY 5, 2011 - TIDEWATER INC	dex992.htm

Pritchard Capital Partners

Annual Energize Conference

January 5, 2011

Joseph M. Bennett

Executive Vice President

and Chief Investor Relations Officer

Exhibit 99.1

FORWARD-LOOKING STATEMENTS

Phone:

504.568.1010

Fax:

504.566.4580

Web:

www.tdw.com

Email:

connect@tdw.com

In accordance with the safe harbor provisions of the Private Securities Litigation Reform

Act

1995,

the

Company

notes

that

certain

statements

set

forth

this

presentation

provide other than historical information and are forward looking. The actual

achievement of any forecasted results, or the unfolding of future economic or business

developments in a way anticipated or projected by the Company, involve numerous risks

and uncertainties that may cause the Company’s actual performance to be materially

different from that stated or implied in the forward-looking statement. Among those risks

and uncertainties, many of which are beyond the control of the Company, include,

without limitation, fluctuations in worldwide energy demand and oil and gas prices; fleet

additions by competitors and industry overcapacity; changes in capital spending by

customers in the energy industry for offshore exploration, development and production;

changing customer demands for vessel specifications, which may make some of our older

vessels technologically obsolete for certain customer projects or in certain markets;

instability

global

financial

markets

and

difficulty

accessing

credit

capital;

acts

terrorism and piracy; significant weather conditions; unsettled political conditions, war,

civil unrest and governmental actions, such as expropriation, especially in higher risk

countries of operations; foreign currency fluctuations; labor influences proposed by

international conventions; and enforcement of laws related to the environment, labor

and foreign corrupt practices. Participants should consider all of these risk factors as well

as other information contained in the Company’s form 10-K’s and 10-Q’s.

KEY TAKEAWAYS

Culture of safety & operating excellence

History of earnings growth and solid returns

World’s largest and newest fleet provides

basis for continued earnings growth

Strong balance sheet allows us to act upon

available opportunities

SAFETY –

A TOP PRIORITY

0.00

0.25

0.50

0.75

1.00

Total Recordable Incident Rates

Calendar Years

2002

2003

2004

2005

2006

2007

2008

2009

TIDEWATER

DUPONT

DOW CHEMICAL

EXXON MOBIL

SAFETY RECORD RIVALS

LEADING COMPANIES

32% Six-Year Compounded

Annual Earnings Growth Rate

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 of after tax gains from the sale of 14 offshore tugs. EPS in

Fiscal

2010

exclusive

$.87

per

Venezuelan

provision,

$.70

per

tax

benefit

favorable

resolution

tax

litigation

and

$0.22 per share charge for the proposed settlement with the SEC of the company’s FCPA matter.

Adjusted Return

On Avg. Equity 4.3% 7.2%

12.4%

18.5% 18.3%

19.5% 11.9%

SIGNIFICANT EARNINGS GROWTH

Avg. Dayrates

$14,694*

$16,163

(+ 10%)

$17,780

(+ 10%)

85.3%*

85.0%

90.0%

~$4.20

EPS

~$6.00

EPS

~$9.50

EPS

270 vessels assumes (190 current new vessels + 30 under construction + ~ 20 additional new

vessels per year for two and a half years).

WHERE COULD FISCAL 2014 FIND US?

Potential for Earnings Acceleration

* 9/30/10 six month YTD actual stats

This info is not meant to be a

prediction of future earnings

performance, but simply an

indication of earning sensitivities

resulting from future fleet

additions and reductions and

varying operating assumptions.

~$400M+

EBITDA

~$525M+

EBITDA

~$750M+

EBITDA

Vessel Count

Estimated Cost

AHTS

$1,626m

PSV’s

$1,615m

Crewboats & Tugs

$290m

TOTALS:

238

$3,531m

(1)

(1) $3,085m (87%) funded through 9/30/10

THE LARGEST MODERN FLEET

IN THE INDUSTRY…

At 9/30/10, 190 new vessels in fleet with ~5 year average age

Vessel Commitments

Jan. ’00 –

September ‘10

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Built

Acquired

VESSEL DELIVERIES

Fiscal Year

Fiscal years 2011-2013 include actual deliveries through 9/30/10 and

estimated deliveries of vessels committed to build or acquire as

of 9/30/10

At 9/30/10, total 238 vessels with

a capital cost of $3.531 billion

Count

AHTS

PSV

Crew and Tug

Total

Vessels Under Construction*

As of September 30, 2010

…

AND OUR LEAD IS GROWING

* Includes four new vessels committed to purchase as of 9/30/10

Estimated delivery schedule –

8 in remainder of FY ‘11,

18 in FY ‘12 and 4 thereafter

CAPX of $205m in remainder of FY ‘11,

$213m in FY ‘12 and $27m in FY ‘13

3/31/06

3/31/07

3/31/08

12/31/08

12/31/09

12/31/10

12/31/11

12/31/12

12/31/13

SIGNIFICANT AVERAGE AGE IMPROVEMENT

Assumptions: 1) Average 45 vessel disposals per year in future (averaged 47 per year last three years).

Includes

vessels

under

construction

(including

four

purchase

commitments)

year

delivered

plus

additional

newbuilds/acquisitions

from

approximately

$500

million

per

year

future

commitments

(average

additional

vessels

per year). Tidewater is not committed to spending $500 million annually, but this level is used as an assumption in

estimating average fleet age in the future.

The current average “economic age”

of our

vessel fleet is ~6.2 years (based upon NBV)

9/30/09 Qtr

12/31/09 Qtr

3/31/10 Qtr

6/30/10 Qtr

9/30/10 Qtr

RECENT VESSEL COMMITMENTS

Amounts depict vessel count and total cost in quarter commitment

was made to acquire (not when delivery or payments were made)

$96M

$55M

$72M

$177M

1 MPSV

1 PSV

4 AHTS

6 AHTS

3 PSV’s

29 vessels over five quarters with

total capital cost of $577 million

$177M

4 PSV’s

4 AHTS

Senior Unsecured Notes

$425 million

Average Life to Maturity

~ 9 years

Weighted Average Coupon

4.25%

Closing Dates

$310 million 10/15/10

$115 million 12/30/10

NEW PRIVATE PLACEMENT FINANCING

PRO FORMA IMPACT OF FINANCING

September 30, 2010 Pro Forma info:

Cash & Cash Equivalents

$477 million

Total Debt

$815 million

Shareholders Equity

$2,480 million

Net Debt / Net Capitalization

12%

Total Debt / Capitalization

25%

Pro forma liquidity as of 9/30/10 of ~ $800 million,

including $335 million remaining revolving credit facility

Six Months Ended

9/30/10

9/30/09

Revenues

$530

$622

Adjusted Net Earnings*

$67

$156

Adjusted EPS*

$1.32

$3.05

Net Cash from Operations

$153

$165

Capital Expenditures

$391

$213

* Adjusted Net Earnings and Adjusted EPS for the six months ended 9/30/10 exclude a $4.35 million, or $0.09 per share,

charge related to settlement with DOJ for FCPA matters, and a $3.9 million, or $0.08 per share, charge related to

participation in a multi-company U.K.-based pension plan. Adjusted net earnings and EPS for the six months ended

9/30/09 exclude $48.1 million, or $0.94 per share, related to provision for Venezuelan operations and $34.3 million, or

$0.66 per share, tax benefit related to favorable resolution of tax litigation..

SELECTED FINANCIAL HIGHLIGHTS

$ in Millions,

Except Per Share Data

Over an 11-year period, Tidewater invested $3.2 billion in CAPX ($2.8 billion in the “new”

fleet),

and paid out $923 million through dividends and share repurchases. Over the same period,

CFFO and proceeds from dispositions were $3.1 billion and $640 million, respectively

PRIMARY USES OF CASH

Unique global footprint; 50+ years of Int’l experience

Unmatched scale and scope of operations

International market opportunities

•

Growth

•

Longer contracts

•

Better utilization

•

Higher dayrates

Solid customer base of NOC’s and IOC’s

INTERNATIONAL STRENGTH

OUR GLOBAL FOOTPRINT

Vessel Distribution by Region

(excludes stacked vessels –

as of 9/30/10)

North America

(6%)

Central/South America

(21%)

West Africa

127

(45%)

Europe / M.E.

(13%)

Far East

(15%)

International / U.S.

2010: 94% / 6%

2000: 62% / 38%

VESSEL POPULATION BY OWNER

(Includes AHTS and PSV’s

only) Estimated as of Early-November 2010

Source: ODS-Petrodata

and

Tidewater

Competitor #2

Competitor #3

Competitor #4

Competitor # 5

Competitor #1

Avg.

All Others (1,847

total

vessels for

350+ owners)

106

119

288

100

200

300

400

500

Tidewater fleet includes 136 vessel additions since 2000

NOC's

24%

Others

35%

Super Majors

41%

Our top 10 customers in Fiscal 2010 (6 Super Majors,

3 NOC’s and one large independent) accounted for 63% of our revenue

CURRENT REVENUE MIX

Quality of Customer Base

100

150

200

250

300

1965

1970

1975

1980

1985

1990

1995

2000

2005

2010

THE WORLDWIDE FLEET -

RETIREMENTS

EXPECTED TO EXCEED NEW DELIVERIES

(Includes AHTS and PSV’s

only) Estimated as of Early-November 2010

Source: ODS-Petrodata

and Tidewater

As of early-November 2010, there are approximately 362 additional AHTS

and PSV’s

(~14% of the global fleet) under construction.

Global fleet estimated at 2,561 vessels, including 333 vessels that are

30+ yrs old (13%),

and another 459 vessels that are 25-29 yrs old (18%)

Vessels > 25 years old today

Maintain

Financial Strength

EVA-Based Investments

On Through-cycle Basis

Deliver Results

FINANCIAL STRATEGY FOCUSED ON

CREATING LONG-TERM SHAREHOLDER VALUE

Pritchard Capital Partners

Annual Energize Conference

January 5, 2011

Joseph M. Bennett

Executive Vice President

and Chief Investor Relations Officer

Appendix

RECENT ACCOMPLISHMENTS

First full fiscal year without a lost time accident (FY 2010)

Respectable earnings & returns in a trough (tough) market

Selected acquisitions of choice assets

Disciplined disposal of traditional equipment

Delivery of 45 new vessels over last two full fiscal years

Balance sheet still solid

Strategy working –

Poised to seize opportunities

100

200

300

400

500

Active Fleet

Dispositions

CONTINUALLY ACQUIRING NEW AND

DISPOSING OF MATURE VESSELS

(As of 9/30/10)

316

(B)

524

(C)

220 New Vessels (A)

427 Sold

97 Scrapped

(A) Net new vessels added to the fleet since January 2000, including 30 vessels under construction at 9/30/10. This

new vessel total excludes 18 new vessels that were acquired, then disposed (mostly to a TDW joint venture.)

(B) Total fleet count excludes 94 stacked vessels as of 9/30/10.

FLEET CASH OPERATING MARGINS

Note:

Cash

operating

margins

are

defined

vessel

revenue

less

vessel

operating

expenses

$100

$200

$300

$400

$500

$600

$700

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Fiscal Years

50%

40%

30%

20%

10%

60%

Total Fleet

Operating Margin %

New Vessels

Traditional Vessels

38.6%

37.6%

46.5%

41.9%

36.9%

38.7%

49.1%

54.6%

51.9%

51.3%

46.8%

50%

60%

70%

80%

90%

9/07

3/08

9/08

3/09

9/09

3/10

9/10

Utilization

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

Dayrate

* Dayrate and utilization information is for all classes of vessels operating international

INTERNATIONAL VESSELS

Dayrates and Utilization

$100 change in dayrate = $7.8M in revenue

1% change in utilization = $15.4M in revenue

INTERNATIONAL VESSEL DAYRATES

* Dayrate and utilization 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

$19,000

09/07

03/08

09/08

03/09

09/09

03/10

09/10

Traditional Vessels

New Vessels

30%

40%

50%

60%

70%

80%

90%

9/07

3/08

9/08

3/09

9/09

3/10

9/10

Utilization

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

Dayrate

DOMESTIC VESSELS

Dayrates and Utilization

* Dayrate and utilization information is for all classes of vessels operating in the U.S.

DOMESTIC VESSEL DAYRATES

* Dayrate and utilization information is for all classes of vessels operating in the U.S.

$3,000

$5,000

$7,000

$9,000

$11,000

$13,000

$15,000

$17,000

$19,000

$21,000

$23,000

09/07

03/08

09/08

03/09

09/09

03/10

09/10

Traditional Vessels

New Vessels

Source: ODS-Petrodata

and Tidewater

WORKING RIG COUNTS

“Peak to Present”

GOM

accounts

for

the

working

jackup

count

variance

from

June

2008

(Peak) to December 2010 (post-Horizon)

GOM Semi & Drillship count drops by 23 units (from 31 to 8) between April and

December 2010; offset by an increase of 8 units in the rest of world

Jackups

Semis

Drillships

Total

June 2008

(Peak)

379

145

554

Late-April 2010

(pre-Horizon)

323

150

519

Early-Dec.

2010 (post-

Horizon)

314

142

495

Other Operators

Top 10 Customers

Tidewater’s top 10 customers contract nearly 24% of the working

worldwide jackup

fleet and ~47% of the working worldwide floater fleet

Jackups

(308 Working Rigs)

Floater Rigs

(182 Working Rigs)

235

RIGS CONTRACTED BY OUR

TOP 10 CUSTOMERS

(Estimated as of Early-November 2010)

Source: ODS-Petrodata

and Tidewater

Other Operators

Top 10 customers

-50%

50%

100%

150%

200%

Mar-05

Mar-06

Mar-07

Mar-08

Mar-09

Mar-10

TDW

DJIA

S&P500

OSX

OSX 52%

S&P 500 9%

DJIA 16%

TDW 36%

RETURNS vs the MARKET

FIVE YEAR STOCKHOLDER RETURN

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