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| 8-K - FORM 8-K - TIDEWATER INC | d8k.htm |
 HOWARD WEIL 38th Annual Energy Conference March 22, 2010 DEAN E. TAYLOR Chairman, President and CEO JEFFREY M. PLATT Executive Vice President, COO QUINN P. FANNING Executive Vice President , CFO Exhibit 99.1 |
 Phone: 504.568.1010 | Fax:
504.566.4580 | Web: www.tdw.com | Email: connect@tdw.com FORWARD-LOOKING STATEMENTS 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 vessel
specifications, which may make some of our older vessels technologically obsolete for certain customer projects or in certain markets;
instability of global financial markets 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, 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. 2 601 Poydras Street, Suite 1900, New Orleans, LA 70130 |
 3 Safety – A Top Priority |
 Many Safety Challenges (Weather, Security, etc.) 4 |
 Many
Safety Challenges (Weather,
Security, etc.) 5 |
 0.00 0.25 0.50 0.75 1.00 Safety Record Rivals Leading Companies 6 Total Recordable Incident Rates 2002 2003 2004 2005 2006 2007 Calendar Years 2008 TIDEWATER DOW CHEMICAL DUPONT EXXON/MOBIL BP |
 Has
Our Industry Bottomed Yet? Commodity Demand & Pricing –
Oil & gas prices have stabilized at generally attractive levels and demand is improving E&P Spending –11% improvement expected in 2010 Access to Capital – Credit access continuing to improve Global Economics – Global economies improving Working Drilling Rig Count – Jack-up market slowly improving and floater market continues to show strength 7 |
 Recent
Accomplishments No lost time accidents since August 2008 Respectable earnings & returns in a trough (tough) market Selected acquisitions of choice assets Disciplined disposal of traditional equipment Delivery of 47 new vessels over last two fiscal years Balance Sheet remains solid; Company poised to take advantage of available opportunities 8 |
 The Worldwide Fleet - Retirements Expected to Exceed New Deliveries (includes AHTS and PSV’s only) Estimated as of Mid-March 2010 9 As of Mid-March 2010, there are approximately 500 additional AHTS and PSV’s (~20% of the global fleet) under construction. Global fleet estimated at 2,415 vessels, including 347 vessels that are 30+ yrs old (14%), and another 481 vessels that are 25-29 yrs old (20%). Source: ODS-Petrodata and Tidewater |
 Vessel Population By Owner (includes AHTS and PSV’s only) Estimated as of Mid-March 2010 10 Tidewater Competitor #2 Competitor #3 Competitor #4 Competitor # 5 Competitor #1 Avg. All Others (1,732 total vessels for 300+ owners) 276 108 105 71 63 60 5 Source: ODS-Petrodata and Tidewater |
 Working Rig Counts “Peak to Present” 11 GOM accounts for 25 of the 61 working jackup count variance Jackups Semi Drillships Total June 2008 379 145 30 554 Mid-March 2010 318 146 42 506 Variance (61) 1 12 (48) Source: ODS-Petrodata and Tidewater |
 Rigs Contracted By Our Top 10
Customers (Estimated as of Mid-March 2010) 12 * PEMEX alone has 26 of the 75 jackups Jackups Semi Drillships Mid-March 2010 working rigs 318 146 42 Working for top 10 customers 75 71 19 24% 49% 45% Source: ODS-Petrodata and Tidewater |
 Current Revenue Mix Quality of Customer Base 13 Our top 10 customers in Fiscal 2009 (5 Super Majors, 4 NOC’s and one large independent) accounted for 60% of our revenue Others 37% Super Majors 40% NOC’s 23% |
 International Strength Unique global footprint; 50+ years of Int’l experience Unmatched scale and scope of operations Expected growth also likely to be in international areas, with 31 of 33 current newbuilds being built in Int’l yards Longer contracts, better utilization, higher dayrates for vessels operating in international markets vs. domestic Solid customer base of NOC’s and IOC’s 14 |
 Our
Global Footprint “Boots on the Ground” 15 |
       16 North America 18 (6%) Central/South America 73 (24%) West Africa 130 (43%) Europe / M.E. 33 (11%) Far East 50 (16%) 94% International – 6% Domestic (vs. 65% International and 35% Domestic 10 years ago) Vessel Distribution by Region (Excludes stacked vessels – as of 12/31/09) |
 Vessel Count Estimated Cost AHTS 74 $1,368m PSV’s 74 $1,454m Crewboats & Tugs 66 $284m TOTALS: (1) 214 $3,106m (2) (1) Includes vessels added to the fleet financed by leases. (2) $2,578m (83%) funded through 12/31/09. The Largest Modern Fleet in the Industry… 17 At 12/31/09, 163 new vessels in fleet with 4.7 year average age Vessel Commitments Jan. ’00 – Dec. ‘09 |
 Count AHTS 16 PSV 18 Crew and Tug 2 Total 36 Vessels Under Construction* As of December 31, 2009 … And Counting 18 * Includes three new vessels committed to purchase as of 12/31/09 Estimated delivery schedule – 9 remaining in FY ‘10, 12 in FY ‘11, 13 in FY ‘12 and 2 thereafter. CAPX of $183m remaining in FY ‘10, $191m in FY ‘11, $141m in FY ‘12 and $12m in FY ‘13 |
 Continually Acquiring New and Disposing of Mature Vessels (As of 12/31/09) 19 340 (B) 495 (C) 199 New Vessels (A) 404 Sold 91 Scrapped (A) Net new vessels added to the fleet since January 2000, including 36 vessels under
construction at 12/31/09. (B) Total fleet count excludes 73 stacked vessels as
of 12/31/09. (C) 495 vessel dispositions generated $635 million of proceeds
and $265 million of gains over the last 11 years. 0 100 200 300 400 500 Active Fleet Dispositions |
 Significant Earnings Growth 20 39% Six-Year Compounded Annual Earnings Growth Rate FY End Stock Price $28.13 $38.86 $55.23 $58.58 $55.11 $37.13 $1.03 $1.78 $3.33 $5.94 $6.39 $7.89 ** 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 $.94 per share
Venezuelan provision and a $.66 per share tax benefit related to favorable resolution of tax litigation. $5.24 Street Estimate $0.00 $2.00 $4.00 $6.00 $8.00 Fiscal 2004 Fiscal 2005 Fiscal 2006 Fiscal 2007 Fiscal 2008 Fiscal 2009 Fiscal 2010 |
 +
104% + 28% (5%) Returns vs. the Market Ten Year Stockholder Return 21 -100% -50% 0% 50% 100% 150% 200% 250% Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 TDW DJIA S&P500 |
 December 2009 March 2009 Cash $337 $251 Stockholders’ Equity $2,419 $2,245 Long-term Debt $275 $300 Net Debt to Total Cap 0% 2.1% A Strong Balance Sheet and Ready Liquidity 22 + $750 million of Available Liquidity at 12/31/09 (Cash plus $450m Revolver) ($ in Millions) |
 Nine Months Ended 12/31/09 12/31/08 Revenues $908,638 $1,049,218 Adjusted Net Earnings* $216,363 $297,172 Adjusted EPS* $4.21 $5.76 Net Cash from Operations $299,350 $366,305 Capital Expenditures $304,013 $368,706 * Adjusted Net Earnings and Adjusted EPS for the nine months ended 12/31/09 excludes
$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 23 $ in Thousands, Except Per Share Data |
 Our
Significant Uses of Cash 24 Over this ten year period, TDW invested $2.7 billion in CAPX ($2.3 billion in our new fleet), and paid out $355 million in dividends and $516 million through share repurchases. $0 $100 $200 $300 $400 $500 $600 $700 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 CAPX Dividend Share Repurchase |
 Fleet
Cash Operating Margins 25 Note: Cash operating margins are defined as vessel revenue less vessel operating expenses. 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% 47.0% Estimate $0 $100 $200 $300 $400 $500 $600 $700 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Fiscal Years |
 Continued Investment
Will Provide Scope for Earnings Margin Growth - A Compressed Spring 26 $126.3 Traditional Vessels ($24.7 m, or 19.6%) New Vessels ($101.6 m, or 80.4%) Q3 FY10 Operating Margin ($ in millions) 0 50 100 150 200 250 |
 Continued Investment Will Provide Scope for Earnings Margin Growth - A Compressed Spring 27 $126.3 36 new vessels on order as of 12/31/09 enter the fleet Analysis assumes: • Fleet utilization: 90% • Fleet average day rate: $17,000 • Fleet operating margin: 55% $154.1 3 Years ($ in millions) Q3 FY10 Operating Margin CIP |
 Continued Investment Will Provide Scope for Earnings Margin Growth - A Compressed Spring 28 ($ in millions) $200.5 $126.3 $154.1 Additional 60 vessels added to the fleet in years 1-3 above current 36 on order Analysis assumes: • Fleet utilization: 90% • Fleet average day rate: $17,000 • Fleet operating margin: 55% 3 Years Q3 FY10 Operating Margin CIP Additional 60 vessels in 3 years |
 Continued Investment Will Provide Scope for Earnings Margin Growth - A Compressed Spring 29 ($ in millions) Additional 40 vessels added to the fleet in years 4-5 above current 36 on order and 60 vessels possibly added in years 1-3 Analysis assumes: • Fleet utilization: 90% • Fleet average day rate: $17,000 • Fleet operating margin: 55% $200.5 $126.3 $154.1 $231.5 3 Years 5 Years Q3 FY10 Operating Margin CIP Additional 60 vessels in 3 years Additional 100 vessels in 5 years This information is not meant to be a prediction of future quarterly performance, but simply an indication of quarterly operating margin impacts resulting from future fleet additions and reductions.
|
 The
End of the Mature Fleet 30 |
  Significant Average Age Improvement 31 Assumptions: 1) Average 45 vessel disposals per year in future (averaged 47 per year
last three years). 2) Include 36 vessels under construction ( including three purchase commitments) in year delivered
plus additional newbuilds/acquisitions from approximately $500 million per year of future commitments (average additional 20 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.
0 100 200 300 400 500 600 3/31/06 Actual 3/31/07 Actual 3/31/08 Actual 12/31/08 Actual 12/31/09 Actual 12/31/10 Estimate 12/31/11 Estimate 12/31/12 Estimate 12/31/13 Estimate 20 17 8 5 10 15 20 25 |
 Financial Strategy Maintain Financial Strength Deploy Capital Deliver Results Focused on Long Term Shareholder Value 32 |
 HOWARD WEIL, INC. 38th Annual Energy Conference DEAN E. TAYLOR Chairman, President and CEO JEFFREY M. PLATT Executive Vice President, COO QUINN P. FANNING Executive Vice President, CFO |
 Appendix 34 |
 Our
Strategy “Not much has
changed!” Culture is a competitive advantage • Safety-oriented • Deep knowledge of customer needs • Aggressive management of operating and capital costs Maintain maximum financial flexibility to deal with uncertainties Selectively deploy cash to renew fleet with expanded capabilities Opportunistically utilize balance sheet strength • Right acquisitions, right price, right time • Consistently focus on creating shareholder value 35 |
 *
Dayrate and utilization information is for all classes of vessels operating
international. International Vessels Dayrates and Utilization 36 Dayrate Utilization $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 50% 60% 70% 80% 90% 12/06 6/07 12/07 6/08 12/08 6/09 12/09 $100 change in dayrate = $8.3M in revenue 1% change in utilization = $15.2M in revenue |
 International Vessels Dayrates 37 * Dayrate and utilization information is for all classes of vessels operating international.
New Vessels $3,000 $5,000 $7,000 $9,000 $11,000 $13,000 $15,000 $17,000 $19,000 12/06 06/07 12/07 06/08 12/08 06/09 12/09 Traditional Vessels |
 Domestic Vessels Dayrates and Utilization 38 * Dayrate and utilization information is for all classes of vessels operating in the U.S.
Dayrate Utilization $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 30% 40% 50% 60% 70% 80% 90% 12/06 6/07 12/07 6/08 12/08 6/09 12/09 |
 Domestic Vessels Dayrates 39 * Dayrate and utilization information is for all classes of vessels operating in the U.S.
Traditional Vessels New Vessels $3,000 $5,000 $7,000 $9,000 $11,000 $13,000 $15,000 $17,000 $19,000 $21,000 $23,000 12/06 06/07 12/07 06/08 12/08 06/09 12/09 |