Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - TIDEWATER INC | d239120d8k.htm |
| EX-99.2 - TRANSCRIPT OF THE PRESENTATION - TIDEWATER INC | d239120dex992.htm |
 2011
JOHNSON RICE ENERGY CONFERENCE
2011 JOHNSON RICE
2011 JOHNSON RICE
ENERGY CONFERENCE
ENERGY CONFERENCE
Oct. 4, 2011
Oct. 4, 2011
Oct. 4, 2011
DEAN E. TAYLOR
DEAN E. TAYLOR
Chairman, President and CEO
Chairman, President and CEO
JOSEPH M. BENNETT
JOSEPH M. BENNETT
Executive
Executive
VP
VP
and
and
Chief
Chief
Investor Relations Officer
Investor Relations Officer
Exhibit 99.1 |
 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 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, volatility 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,
field
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; uncertainty of global
financial market conditions and difficulty in accessing credit or capital; acts of
terrorism and piracy; significant weather conditions; unsettled political conditions,
war, civil unrest and governmental actions, such as expropriation, especially in higher
risk countries where we operate; foreign currency fluctuations; labor influences
proposed by international conventions; increased regulatory burdens and oversight
following
the
Deepwater
Horizon
incident;
and
enforcement
of
laws
related
to
the
environment,
labor
and
foreign
corrupt
practices.
Readers
should
consider
all
of
these
risk factors as well as other information contained in this report.
Phone:
504.568.1010
Fax:
504.566.4580
Web:
www.tdw.com
Email:
connect@tdw.com
FORWARD-LOOKING STATEMENTS
FORWARD-LOOKING STATEMENTS
FORWARD-LOOKING STATEMENTS |
 3
KEY TAKEAWAYS
KEY TAKEAWAYS
KEY TAKEAWAYS
•
Culture of safety & operating excellence
•
History of earnings growth and solid returns
•
Unmatched scale and scope of operations
•
World’s largest and newest fleet provides
basis for continued earnings growth
•
Strong balance sheet allows us to act upon
available opportunities |
 4
SAFETY REMAINS A TOP PRIORITY
SAFETY REMAINS A TOP PRIORITY
SAFETY REMAINS A TOP PRIORITY |
 5
SAFETY RECORD RIVALS
LEADING COMPANIES
SAFETY RECORD RIVALS
SAFETY RECORD RIVALS
LEADING COMPANIES
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 |
 6
**
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
is
exclusive of $.66 per share Venezuelan provision, a $.70 per share tax benefit
related to favorable resolution of tax litigation and a $0.22 per share charge
for the proposed settlement with the SEC of the company’s FCPA matter. EPS in Fiscal 2011 is exclusive of total $0.21 per share charges for
settlements
with
DOJ
and
Government
of
Nigeria
for
FCPA
matters,
a
$0.08
per
share
charge
related
to
participation
in
a
multi-company
U.K.-based
pension plan and a $0.06 per share impairment charge related to certain
vessels. 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
HISTORY OF EARNINGS GROWTH
AND SOLID THROUGH-CYCLE RETURNS
AND SOLID THROUGH-CYCLE RETURNS
$2.40
$5.20
$7.89
$1.03
$1.78
$3.33
$5.94
$6.39
$0.00
$2.00
$4.00
$6.00
$8.00
Fiscal
2004
Fiscal
2005
Fiscal
2006
Fiscal
2007
Fiscal
2008
Fiscal
2009
Fiscal
2010
Fiscal
2011 |
 7
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
INTERNATIONAL STRENGTH |
 8
International / U.S.
2011: 94% / 6%
2000: 62% / 38%
OUR GLOBAL FOOTPRINT
Vessel Distribution by Region
(excludes stacked vessels –
as of 6/30/11)
OUR GLOBAL FOOTPRINT
OUR GLOBAL FOOTPRINT
Vessel Distribution by Region
Vessel Distribution by Region
(excludes stacked vessels –
(excludes stacked vessels –
as of 6/30/11)
as of 6/30/11)
Europe / M.E.
39
(15%)
Far East
28
(10%)
West Africa
125
(48%)
Central/South America
54
(21%)
North America
15
(6%) |
 9
VESSEL POPULATION BY OWNER
(AHTS and PSV’s only) –
Estimated as of August 2011
VESSEL POPULATION BY OWNER
(AHTS and PSV’s only) –
Estimated as of August 2011
Source: ODS-Petrodata and Tidewater
Tidewater
Competitor #2
Competitor #3
Competitor #4
Competitor # 5
Competitor #1
Avg.
All Others (1,932 total
vessels for
350+ owners)
265
132
107
73
66
65
5
0
100
200
300
400
Tidewater AHTS and PSV fleet includes 145 vessel additions since 2000 |
 10
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% |
 11
Vessel Count
Estimated Cost
AHTS
102
$1,793m
PSV’s
88
$1,843m
Crewboats & Tugs
67
$289m
TOTALS:
257
$3,925m
(1)
.
At 6/30/11, 196 new vessels were in our fleet with ~5.4 year average age
Vessel Commitments
Jan. ’00 –
June ‘11
(1)
$3,354m (85%) funded through 6/30/11
THE LARGEST MODERN OSV FLEET
IN THE INDUSTRY….
THE LARGEST MODERN OSV FLEET
THE LARGEST MODERN OSV FLEET
IN THE INDUSTRY….
IN THE INDUSTRY…. |
 12
Count
AHTS
17
PSV
22
Crew and Tug
1
Total
40
Vessels Under Construction*
As of June 30, 2011
* Includes 12 new vessel purchase commitments at 6/30/11
CAPX
of
$400m
in
remainder
of
FY
‘12,
$147m
in
FY
‘13
and
$24m
in
FY
’14.
…. AND MORE TO COME
…. AND MORE TO COME
…. AND MORE TO COME
Estimated delivery schedule – 25 in FY ‘12, 11 in FY ‘13 and 4 thereafter. |
 13
Fiscal Year
Actual vessel deliveries through 6/30/11; estimated vessel deliveries based on
commitments to build or acquire as of 6/30/11
THROUGH-CYCLE, EVA-BASED INVESTMENT;
BALANCE BETWEEN “BUY”
and “BUILD”
THROUGH-CYCLE, EVA-BASED INVESTMENT;
THROUGH-CYCLE, EVA-BASED INVESTMENT;
BALANCE BETWEEN “BUY”
BALANCE BETWEEN “BUY”
and “BUILD”
and “BUILD”
0
5
10
15
20
25
30
35
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Built
Acquired
Through
6/30/11,
vessel
commitments
include
257
vessels
with
a
capital
cost
of
$3.925
billion |
 14
RECENT VESSEL COMMITMENTS
RECENT VESSEL COMMITMENTS
RECENT VESSEL COMMITMENTS
0
2
4
6
8
10
12
9/30/09
Qtr
12/31/09
Qtr
3/31/10
Qtr
6/30/10
Qtr
9/30/10
Qtr
12/31/10
Qtr
3/31/11
Qtr
6/30/11
Qtr
Amounts
depict
vessel
count
and
total
cost
in
quarter
commitment
was
made
to
acquire
(not
when
delivery
or
payments
were
made)
$96M
$55M
$72M
$179M
1 MPSV
1 PSV
4 AHTS
6 AHTS
6 AHTS
3 PSV’s
48 vessels over last two years with
a total capital cost of $958 million
$177M
4 PSV’s
4 AHTS
1 PSV
9 AHTS
$139M
$101M
2 PSV’s
4 PSV
3 AHTS
$139M |
 15
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 $3.4 billion and $690
million, respectively $0
$100
$200
$300
$400
$500
$600
$700
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
CAPX
Dividend
Share Repurchase
$ in millions
CFFO
Fiscal Year
FLEET RENEWAL & EXPANSION
FUNDED BY CFFO THROUGH FISCAL 2011
FLEET RENEWAL & EXPANSION
FLEET RENEWAL & EXPANSION
FUNDED BY CFFO THROUGH FISCAL 2011
FUNDED BY CFFO THROUGH FISCAL 2011 |
 16
Senior Unsecured Notes
$590 million
Average Life to Maturity (as of 9/30/11)
~ 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
Private Placement Financings:
Private Placement Financings:
New Credit Facilities:
New Credit Facilities:
~ $40 million in senior notes maturities in Fiscal 2012 (July)
RECENT FINANCINGS WILL FUND GROWTH
AT AN ATTRACTIVE RELATIVE COST
RECENT FINANCINGS WILL FUND GROWTH
RECENT FINANCINGS WILL FUND GROWTH
AT AN ATTRACTIVE RELATIVE COST
AT AN ATTRACTIVE RELATIVE COST |
 17
Pro Forma as of June 30, 2011 *
Cash & Cash Equivalents
$321 million
Total Debt
$825 million
Shareholders Equity
$2,528 million
Net Debt / Net Capitalization
17%
Total Debt / Capitalization
25%
* Pro forma based on (i) $165 million private placement financing completed in August
2011 and (ii) $40 million in senior note maturities in July 2011. Pro Forma
liquidity as of 6/30/11 of ~$900 million includes $575 million available under
bank credit facilities. STRONG FINANCIAL POSITION
PROVIDES STRATEGIC OPTIONALITY
STRONG FINANCIAL POSITION
STRONG FINANCIAL POSITION
PROVIDES STRATEGIC OPTIONALITY
PROVIDES STRATEGIC OPTIONALITY |
 18
FLEET CASH OPERATING MARGINS
FLEET CASH OPERATING MARGINS
FLEET CASH OPERATING MARGINS
Traditional Vessels
New Vessels
Cash Oper Margin
38.6% 37.6% 46.5%
41.9%
36.9% 38.7% 49.1%
54.6%
51.9% 51.3% 46.8%
39.3%
Note:
Cash
operating
margins
are
defined
as
vessel
revenue
less
vessel
operating
expenses
Fiscal Years
$0
$100
$200
$300
$400
$500
$600
$700
$800
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011 |
 19
WHERE COULD FISCAL 2014 FIND US?
Potential for Earnings Acceleration
WHERE COULD FISCAL 2014 FIND US?
WHERE COULD FISCAL 2014 FIND US?
Potential for Earnings Acceleration
Potential for Earnings Acceleration
Avg. Dayrates
$14,091*
$15,500
(+ 10%)
$17,050
(+ 10%)
84.4%*
85.0%
90.0%
~$3.50
EPS
~$5.25
EPS
~$8.75
EPS
271 vessel assumption (196 current new vessels + 40 under construction + ~ 20
additional new vessels per year for two years).
* 6/30/11 quarterly 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
~$500M
EBITDA
~$700M
EBITDA |
 20
FINANCIAL STRATEGY FOCUSED
ON CREATING LONG-TERM
SHAREHOLDER VALUE
FINANCIAL STRATEGY FOCUSED
FINANCIAL STRATEGY FOCUSED
ON CREATING LONG-TERM
ON CREATING LONG-TERM
SHAREHOLDER VALUE
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 |
 2011
JOHNSON RICE ENERGY CONFERENCE
Oct. 4, 2011
DEAN E. TAYLOR
DEAN E. TAYLOR
Chairman, President and CEO
Chairman, President and CEO
JOSEPH M. BENNETT
JOSEPH M. BENNETT
Executive VP and Chief
Executive VP and Chief
Investor Relations Officer
Investor Relations Officer |
 22
APPENDIX |
 23
Quarter Ended
6/30/11
6/30/10
Revenues
$255
$263
Net Earnings
$25
$40
EPS
$0.48
$0.77
Net Cash from Operations
$27
$53
Capital Expenditures
$70
$141
$ in Millions, Except Per Share Data
RECENT FINANCIAL RESULTS
REFLECT CYCLICAL DOWNTURN
RECENT FINANCIAL RESULTS
RECENT FINANCIAL RESULTS
REFLECT CYCLICAL DOWNTURN
REFLECT CYCLICAL DOWNTURN |
 24
Source: ODS-Petrodata and Tidewater
GOM
accounts
for
34
of
the
54
working
jackup
count
variance
from
June
2008
(Peak) to August 2011 (post-Horizon)
GOM Semi & Drillship count drops by 7 units (from 31 to 24) between April 2010
and August 2011; offset by an increase of 23 units in the rest of world
Jackups
Semis
Drillships
Total
June 2008
(Peak)
379
145
30
554
Late-April 2010
(pre-Horizon)
323
150
46
519
August 2011
(post-Horizon)
325
159
53
537
WORKING RIG COUNTS
“Peak to Present”
WORKING RIG COUNTS
WORKING RIG COUNTS
“Peak to Present”
“Peak to Present” |
 25
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
(325 Working Rigs)
Floater Rigs
(212 Working Rigs)
78
247
107
Source: ODS-Petrodata and Tidewater
Other Operators
Top 10 customers
105
RIGS CONTRACTED BY OUR
RIGS CONTRACTED BY OUR
TOP 10 CUSTOMERS
TOP 10 CUSTOMERS
(Estimated as of August 2011)
(Estimated as of August 2011) |
 26
Source: ODS-Petrodata and Tidewater
As of late-August 2011, there are approximately 456 additional AHTS and
PSV’s (~17% of the global fleet) under construction.
Vessels > 25 years old today
THE WORLDWIDE OSV FLEET –
RETIREMENTS
EXPECTED TO EXCEED NEW DELIVERIES
(Includes AHTS and PSV’s only) Estimated as of August 2011
0
50
100
150
200
250
300
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010
Global fleet estimated at 2,640 vessels, including
348 vessels that are 30+ yrs old (13%), and another 410 vessels that are 25-29 yrs old (16%)
|
 27
SIGNIFICANT AVERAGE
AGE IMPROVEMENT
SIGNIFICANT AVERAGE
SIGNIFICANT AVERAGE
AGE IMPROVEMENT
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).
20
16
6
0
5
10
15
20
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
12/31/14
Includes 40 vessels under construction, including 12 vessel purchase commitments (based on current
estimated delivery schedule), plus additional newbuilds/acquisitions of ~20 vessels per
year (approximately $500 million in new capital commitments per year). Tidewater is not committed to spending $500 million annually, but we use this
assumption in estimating average fleet age in the future.
2) |
 28
* Dayrate and utilization information is for all classes of vessels operating
international $100 change in dayrate = ~$7.9M in annual revenue
1% change in utilization = ~$15.1M in annual revenue
INTERNATIONAL VESSELS
Dayrates and Utilization
INTERNATIONAL VESSELS
INTERNATIONAL VESSELS
Dayrates and Utilization
Dayrates and Utilization
50%
60%
70%
80%
90%
Dayrate
Utilization
$4,000
$6,000
$8,000
$10,000
$12
000
$14
,000
,
6/08
12/08
6/
09
12/09
6/
10
12/10
6/11 |
 29
INTERNATIONAL VESSELS
INTERNATIONAL VESSELS
DAYRATES
DAYRATES
* Dayrate and utilization information is for all classes of vessels operating
international $3,000
$6,000
$9,000
$12,000
$15,000
$18,000
06/08
12/08
06/09
12/09
06/10
12/10
06/11
New Vessels
Traditional Vessels |
 30
DOMESTIC VESSELS
Dayrates and Utilization
DOMESTIC VESSELS
DOMESTIC VESSELS
Dayrates and Utilization
Dayrates and Utilization
* Dayrate and utilization information is for all classes of vessels operating in the
U.S. $4,000
$9,000
$14,000
$19,000
30%
50%
70%
90%
6/08
12/08
6/09
12/09
6/10
12/10
6/11
Dayrate
Utilization |
 31
DOMESTIC VESSEL DAYRATES
DOMESTIC VESSEL DAYRATES
DOMESTIC VESSEL DAYRATES
* Dayrate and utilization information is for all classes of vessels operating in the
U.S. $4,000
$8,000
$12,000
$16,000
$20,000
$24,000
06/08
12/08
06/09
12/09
06/10
12/10
06/11
New Vessels
Traditional Vessels |
 32
OSX 42%
S&P 500 14%
DJIA 27%
TDW 18%
RETURNS vs the MARKET
FIVE YEAR STOCKHOLDER RETURN
RETURNS vs the MARKET
RETURNS vs the MARKET
FIVE YEAR STOCKHOLDER RETURN
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 |