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| 8-K - 8-K - TIDEWATER INC | d916184d8k.htm |
 19
th
Annual
BURKENROAD REPORTS
Investment Conference
April 24, 2015
Joseph M. Bennett
EVP & Chief Investor Relations Officer
Exhibit 99.1 |
 FORWARD-LOOKING STATEMENTS
Phone:
504.568.1010 |
504.566.4580
Web site address:
www.tdw.com
Email:
connect@tdw.com
TIDEWATER 601 Poydras Street, Suite 1500, New Orleans, LA 70130
2
19th Annual BURKENROAD REPORTS Investment Conference
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, 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
different 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 accessing credit or capital; acts of terrorism
and piracy; significant weather conditions; unsettled political conditions, war, civil
unrest and governmental actions, such as expropriation or enforcement of customs or other
laws that are not well-developed or consistently enforced, especially in higher political risk countries
where we operate; foreign currency fluctuations; labor changes proposed by international
conventions; increased regulatory burdens and oversight; and enforcement of laws related
to the environment, labor and foreign corrupt practices. Readers should consider all of
these risks factors, as well as other information contained in the Company’s form
10-K’s and 10-Q’s. Fax:
|
 Safe, efficient
and compliant operations New vessels that service all water depths
Solid balance sheet and financial flexibility
Geographic diversity
3
19th Annual BURKENROAD REPORTS Investment Conference
What’s Important in a Challenged Market
Strong customer base and relationships
Reasonable CAPX expectations
-
Reasonable financial leverage
-
Sufficient liquidity
Return capital to shareholders through dividends and
opportunistic share repurchases |
 4
19th Annual BURKENROAD REPORTS Investment Conference
Safe Operations is Priority #1
Stop Work Obligation
Safety performance is 25% of mgt. incentive comp
TOTAL RECORDABLE INCIDENT RATES
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
TIDEWATER
DOW CHEMICAL
CHEVRON
EXXONMOBIL
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. |
 Source:
ODS-Petrodata Note: 37 “Other”
rigs, along with the Jackups and Floaters, provide a total working rig count of 658 in April
2015. 389
232
Prior peak (summer 2008)
Jackups
Floaters
5
19th Annual BURKENROAD REPORTS Investment Conference
Too Many Offshore Rigs, but Activity Levels Drive OSV Demand
Rig CIP
Jackups
120
Floaters
84
Other
9
213
0
50
100
150
200
250
300
350
400
450
4/04
4/05
4/06
4/07
4/08
4/09
4/10
4/11
4/12
4/13
4/14
4/15 |
 Source:
ODS-Petrodata and Tidewater Tidewater
Competitor #2
Competitor #3
Competitor #4
Competitor # 5
Competitor #1
Avg.
All Others (2,513 total
vessels for
400+ owners)
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19th Annual BURKENROAD REPORTS Investment Conference
Vessel Population by Owner
(AHTs and PSVs only) Estimated as of April 2015 |
 7
19th Annual BURKENROAD REPORTS Investment Conference
Geographic Diversity –
Vessel Count by Region
(Excludes stacked vessels –
as of 12/31/14)
Americas
71(27%)
SS Africa/Europe
117(45%)
MENA
46(18%)
Asia/Pac
26(10%) |
 New
Avg.
Traditional
Vessels
NBV
Vessels
Deepwater
11
$26.4M
0
Towing Supply
14
$11.6M
0
Other
1
$6.5M
0
26
0
New
Avg.
Traditional
Vessels
NBV
Vessels
Deepwater
33
$28.5M
0
Towing Supply
41
$12.3M
2
Other
36
$1.8M
5
110
7
8
19th Annual BURKENROAD REPORTS Investment Conference
A New Fleet that Services All Water Depths
(Excludes stacked vessels –
as of 12/31/14)
New
Avg.
Traditional
Vessels
NBV
Vessels
Deepwater
35
20.6M
0
Towing Supply
19
$9.8M
4
Other
9
$3.2M
4
63
8
New
Avg.
Traditional
Vessels
NBV
Vessels
Deepwater
12
$17.5M
1
Towing Supply
31
$11.8M
0
Other
0
0
2
43
3
Americas
SSAE
MENA
Asia/Pac
Vessel count info is as of 12/31/14, and includes leased vessels. Avg NBV excludes the impact of leased
vessels which have no NBV. Average NBV of the 18 Traditional vessels is $0.91M at 12/31/14.
|
 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 9
19th Annual BURKENROAD REPORTS Investment Conference
Strong Customer Base
Current Revenue Mix
Approximately 60% of our
revenue is derived from drilling
support activity and 40% from
non-drilling related activity, such
as support of production and
construction activity
Super Majors
37%
NOC's
22%
Others
41% |
 Vessel Count (2) Total Cost (2)
Average Cost
per Vessel
Deepwater PSVs
102
$2,900m
$28.4m
Deepwater AHTSs
12
$387m
$32.3m
Towing Supply/Supply
111
$1,667m
$15.0m
Other
53
$227m
$4.3m
TOTALS:
278
$5,181m
(1)
$18.6m
.
At 12/31/14, 250 new vessels were in our fleet with ~6.8 year average age
Vessel Commitments
Jan. ’00 –
December ‘14
(1)
~$4.68b (90%) funded through 12/31/14
(2)
Vessel count and total cost is net of 26 vessel dispositions ($243M of original cost), and
includes 28 vessels under construction (21 Deepwater PSVs, 6 Towing Supply vessels and 1
“Other”) (2)
Vessel count and total cost is net of 25 vessel dispositions ($227m of original cost)
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19th Annual BURKENROAD REPORTS Investment Conference
The Largest Modern OSV Fleet in the Industry |
 11
19th Annual BURKENROAD REPORTS Investment Conference
CAPX is Decreasing from Recent High Levels
Fiscal Year
Fiscal 2014 is exclusive of Troms acquisition
Amounts in Fiscal 2015-2017 represent known CAPX on only the
28
vessels
and
2
ROVs
under
construction
as
of
12/31/14. |
 As of December
31, 2014 Cash & Cash Equivalents
$77 million
Total Debt
$1,491 million
Shareholders Equity
$2,503 million
Net Debt / Net Capitalization
36%
Total Debt / Capitalization
37%
~$675 million of available liquidity as of 12/31/14, including $600 million
of unused capacity under the company’s revolving credit facility.
12
19th Annual BURKENROAD REPORTS Investment Conference
Solid Balance Sheet and Financial Flexibility
Our Financial Position Provides Us Strategic Optionality |
 13
19th Annual BURKENROAD REPORTS Investment Conference
Debt Maturities and Covenants as of 12/31/14
Maturities Limited for Several Years
Fiscal Year
Debt Covenants:
1)
2)
Debt/Total Capitalization Ratio of not greater than 55%
EBITDA/Interest coverage of not less than 3.0X |
 14
19th Annual BURKENROAD REPORTS Investment Conference
Return Capital to Shareholders
Consistent Dividends and Opportunistic Share Repurchases
(in millions)
Fiscal Years
~4.0% Current Dividend Yield
Fiscal year 2015 YTD info is through 12/31/14. |
 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 Return capital to shareholders through dividends and
opportunistic share repurchases
15
19th Annual BURKENROAD REPORTS Investment Conference
Tidewater’s Strategy
Stay close to our customers
Monitor industry developments to adjust our playbook accordingly
-
Cost reduction initiatives
-
Maintain/protect liquidity |
 NEW ORLEANS,
LOUISIANA Worldwide Headquarters
Tidewater Inc.
Pan American Life Center
601 Poydras Street, Suite 1500
New Orleans, Louisiana 70130
P: +1 504 568 1010
HOUSTON, TEXAS
Tidewater Marine, L.L.C.
6002 Rogerdale Road
Suite 600
Houston, Texas 77072-1655
P: +1 713 470 5300
www.tdw.com |
 Source:
ODS-Petrodata and Tidewater July 2008
(Peak)
Jan. 2011
(Trough)
April
2015
Working Rigs
603
538
658
Rigs Under
Construction
186
118
213
OSV Global
Population
2,033
2,599
3,277
OSV’s Under
Construction
736
367
440
OSV/Rig Ratio
3.37
4.83
4.98
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19th Annual BURKENROAD REPORTS Investment Conference
Drivers of our Business “Peak to Present” |
 Source:
ODS-Petrodata and Tidewater As of April 2015, there are approximately 440 additional AHTS
and PSV’s (~13% of the global fleet) under construction.
Global fleet is estimated at 3,277 vessels, including ~700 vessels that are 25+
yrs old (21%). Vessels > 25 years old today
18
19th Annual BURKENROAD REPORTS Investment Conference
The Worldwide OSV Fleet
(Includes AHTs and PSVs only) Estimated as of April 2015
0
50
100
150
200
250
300
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010 |
 Year
Built Deepwater vessels
Towing Supply/Supply
Other vessels
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19th Annual BURKENROAD REPORTS Investment Conference
Tidewater’s Active Fleet
As of December 31, 2014
242 “New”
vessels –
6.6 avg yrs
18 “Traditional”
vessels –
25.8 avg yrs
(only 7 OSVs) |
 Count
Deepwater PSVs
21
Deepwater AHTSs
-
Towing Supply/Supply
6
Other
1
Total
28
Vessels Under Construction*
As of December 31, 2014
Estimated
delivery
schedule
–
4
remaining
in
FY
’15,
18
in
FY
‘16
and
6
thereafter.
CAPX of $153m remaining in FY ’15, $257m in FY ‘16 and $61m thereafter.
20
19th Annual BURKENROAD REPORTS Investment Conference
…and More to Come |
 21
19th Annual BURKENROAD REPORTS Investment Conference
The Upgrading of the Tidewater Fleet
(A 10 Year Review)
Deepwater PSV
Deepwater AHTS
Towing Supply
Fleet information includes active vessels only.
CIP=Construction in Process.
New Fleet is defined as vessels built or acquired since 2000.
Current
Future
Vintage
DWT
CIP
Fleet
Fleet
5,000-6,000
16
5
21
0
4,000-4,999
14
12
26
0
3,000-3,999
44
4
48
0
<3,000
5
0
5
1
79
21
100
1
Current
Future
Vintage
BHP
New Fleet
CIP
Fleet
Fleet
25,000+
5
0
5
0
13,500-16,500
7
0
7
0
12
0
12
0
Current
Future
Vintage
BHP
CIP
Fleet
Fleet
7,000-10,000
36
6
42
0
3,000-6,999
69
0
69
6
105
6
111
6
New
Vintage
Total
DWT
Fleet
Fleet
Fleet
5,000-6,000
0
0
0
4,000-4,999
4
0
4
3,000-3,999
12
2
14
<3,000
6
4
10
22
6
28
New
Vintage
Total
BHP
Fleet
Fleet
Fleet
25,000+
1
0
1
13,500-16,500
6
3
9
7
3
10
New
Vintage
Total
BHP
Fleet
Fleet
Fleet
7,000-10,000
5
25
30
3,000-6,999
23
146
169
28
171
199
3/31/05 Snapshot
12/31/14 Snapshot
New Fleet
New Fleet |
 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.
$ in millions
CFFO
Fiscal Year
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19th Annual BURKENROAD REPORTS Investment Conference
Fleet Renewal & Expansion Largely Funded by CFFO
$0
$100
$200
$300
$400
$500
$600
$700
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
CAPX
Dividend
Share Repurchase |
 **
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. EPS in Fiscal 2012 is exclusive of $0.43 per share goodwill impairment charge. EPS in Fiscal 2014 is
exclusive of $0.87 per share goodwill impairment charge.
Adjusted Return
On Avg. Equity 4.3% 7.2%
12.4%
18.9% 18.3%
19.5% 11.4% 5.0%
4.3% 5.9% 7.0%
Adjusted EPS**
Adjusted EPS**
23
19th Annual BURKENROAD REPORTS Investment Conference
History of Solid Earnings and Returns on a Through-Cycle Basis |
 Note:
Vessel operating
margin
is
defined
as
vessel
revenue
less
vessel
operating
expenses
Prior peak period (FY2009)
averaged quarterly revenue of
$339M, quarterly operating
margin of $175.6M at 51.8%
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19th Annual BURKENROAD REPORTS Investment Conference
Total Revenue and Margin
Fiscal 2008-2015
$300 million
$150 million
50.0%
53.0%
46.7%
56.4%
47.7%
38.0%
41.0%
36.9%
45.0%
42.0%
44.1%
40.8%
46.3%
45.2%
43.0%
43.1%
45.6%
44.4%
$-
$100
$200
$300
$400
$500
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
Vessel Revenue ($)
Vessel Operating Margin ($)
Vessel Operating Margin (%) |
 Vessel Cash Operating
Margin ($) Vessel Cash Operating Margin (%)
$168 million Vessel Margin in Q3
FY2015 (98% from New Vessels)
Q3 FY2015 Vessel Margin: 44%
25
19th Annual BURKENROAD REPORTS Investment Conference
Historical Vessel Cash Operating Margins
$0
$25
$50
$75
$100
$125
$150
$175
$200
Q1Q2Q3Q4
FY 2009
FY 2010
FY 2011
FY 2012
FY 2013
FY14
FY15
New
Traditional
0%
10%
20%
30%
40%
50%
60%
70%
FY 2009
FY 2010
FY 2011
FY 2012
FY 2013
FY14
FY15
Total
New
Q1Q2Q3Q4
Q1Q2Q3Q4
Q1Q2Q3Q4
Q1Q2Q3Q4
Q1Q2Q3Q4
Q1Q2Q3
Q1Q2Q3Q4
Q1Q2Q3Q4
Q1Q2Q3Q4
Q1Q2Q3Q4
Q1Q2Q3Q4
Q1Q2Q3Q4
Q1Q2Q3 |
 Utilization
stats exclude stacked vessels. 26
19th Annual BURKENROAD REPORTS Investment Conference
Active Vessel Dayrates & Utilization by Segment
60%
70%
80%
90%
100%
6/11
12/11
6/12
12/12
6/13
12/13
6/14
12/14
$6,000
$10,000
$14,000
$18,000
$22,000
$26,000
6/11
12/11
6/12
12/12
6/13
12/13
6/14
12/14
Americas
Asia/Pac
MENA
Sub Sah Africa/Eur. |
 $189 million, or 50%,
of Vessel Revenue in Q3 Fiscal 2015 27
19th Annual BURKENROAD REPORTS Investment Conference
New Vessel Trends by Vessel Type
Deepwater PSVs
Q3 Fiscal 2015
Avg Day Rate: $29,929
Utilization: 86.1% |
 $31 million, or 8%, of
Vessel Revenue in Q3 Fiscal 2015 28
19th Annual BURKENROAD REPORTS Investment Conference
New Vessel Trends by Vessel Type
Deepwater AHTS
Q3 Fiscal 2015
Avg Day Rate: $33,375
Utilization: 83.0% |
 $122 million, or 32%,
of Vessel Revenue in Q3 Fiscal 2015 29
19th Annual BURKENROAD REPORTS Investment Conference
New Vessel Trends by Vessel Type
Towing Supply/Supply Vessels
Q3 Fiscal 2015
Avg Day Rate: $15,647
Utilization: 80.8% |
 Six
work-class ROV’s in current fleet and two more on order
Commercial operations underway with
additional opportunities in Americas,
SSAE and Asia/Pac
ROV capabilities generating potential
for OSV pull through
30
19th Annual BURKENROAD REPORTS Investment Conference
Tidewater’s New Subsea Business |