TIDEWATER INC - FORM 8-K - EX-99.1 - TIDEWATER PRESENTATION

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EX-99.2 - EDITED TRANSCRIPT - TIDEWATER INC	d374584dex992.htm
8-K - FORM 8-K - TIDEWATER INC	d374584d8k.htm

Joseph M. Bennett

Executive Vice President and

Chief Investor Relations Officer

June 26, 2012

2012 Global Hunter Securities

100 Energy Conference

Exhibit 99.1

FORWARD-LOOKING STATEMENTS

Phone:

504.568.1010 •

Fax:

504.566.4580

•

Email:connect@tdw.com

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 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 any way anticipated

or projected by the Company, involve many risks and uncertainties. Among

those risks and uncertainties, many of which are beyond the control of the

Company, are: fluctuations in oil and gas prices; the level of fleet additions by

competitors and vessel overcapacity; changes in levels of capital spending in

domestic and international markets by customers in the energy industry for

exploration, development and production; unsettled political conditions, civil

unrest and governmental actions, especially in higher risk countries of

operations; changing customer demands for different vessel specifications; acts

of terrorism; unsettled political conditions, war, civil unrest and governmental

actions, especially in higher risk countries of operations; foreign currency

fluctuations; and environmental and labor laws. 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

•

Macro picture improving –

stable oil prices, increased

E&P spending, improving rig count

•

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

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

CALENDAR YEARS

TOTAL RECORDABLE INCIDENT RATES

TIDEWATER

DOW CHEMICAL

CHEVRON

EXXON/MOBIL

Source: ODS-Petrodata and Tidewater

June 2008

(Peak)

Jan. 2011

May 2012

Working Rigs

603

538

611

Rigs Under

Construction

186

118

188

OSV Global

Population

2,033

2,599

2,756

OSV’s Under

Construction

736

367

404

OSV/Rig Ratio

3.37

4.83

4.51

DRIVERS OF OUR BUSINESS

“Peak to Present”

DRIVERS OF OUR BUSINESS

“Peak to Present”

Source: ODS-Petrodata and Tidewater

As of May 2012, there are approximately 404 additional AHTS and PSV’s

(~15% of the global fleet) under construction.

Global fleet estimated at 2,756 vessels, including 466 vessels that are

30+

yrs

old

(17%),

and

another

278

vessels

that

are

25-29

yrs

old

(10%)

Vessels > 25 years old today

THE WORLDWIDE OSV FLEET –

RETIREMENTS

EXPECTED TO EXCEED NEW DELIVERIES

(Includes AHTS and PSV’s only) Estimated as of May 2012

THE WORLDWIDE OSV FLEET –

RETIREMENTS

EXPECTED TO EXCEED NEW DELIVERIES

(Includes AHTS and PSV’s only) Estimated as of May 2012

VESSEL POPULATION BY OWNER

(AHTS and PSV’s only) –

Estimated as of May 2012

VESSEL POPULATION BY OWNER

(AHTS and PSV’s only) –

Estimated as of May 2012

Source: ODS-Petrodata and Tidewater

Tidewater

Competitor #2

Competitor #3

Competitor #4

Competitor # 5

Competitor #1

Avg.

All Others (1,993 total

vessels for

350+ owners)

Tidewater

AHTS

and

PSV

fleet

includes

165

vessel

additions

since

2000

254

151

108

100

200

300

400

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.

Adjusted Return

On Avg. Equity 4.3% 7.2%

12.4%

18.9% 18.3%

19.5% 11.4% 5.0%

4.3%

Adjusted EPS**

HISTORY OF EARNINGS GROWTH

AND SOLID THROUGH-CYCLE RETURNS

HISTORY OF EARNINGS GROWTH

AND SOLID THROUGH-CYCLE RETURNS

$1.03

$1.78

$3.33

$5.94

$6.39

$7.89

$5.20

$2.40

$2.13

$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

Fiscal

2012

OUR GLOBAL FOOTPRINT

Vessel Distribution by Region

(excludes stacked vessels –

as of 3/31/12)

OUR GLOBAL FOOTPRINT

Vessel Distribution by Region

(excludes stacked vessels –

as of 3/31/12)

2012,

~6%

vessels/revenue

was

generated

U.S.

GOM;

however,

total

active U.S.-flagged vessels provide good optionality to a recovery in the U.S. GOM.

Americas

63(24%)

SS Africa/Europe

132(50%)

MENA

35(13%)

Asia/Pac

33(13%)

Vessel Count

Estimated Cost

AHTS

101

$1,765m

PSV’s

$1,934m

Crewboats & Tugs

$301m

TOTALS:

263

$4,000m

(1)

At 3/31/12, 215 new vessels were in our fleet with ~5.7 year average age

Vessel Commitments

Jan. ’00 –

March ‘12

(1)

$3,640m (91%) funded through 3/31/12

THE LARGEST MODERN OSV FLEET

IN THE INDUSTRY….

THE LARGEST MODERN OSV FLEET

IN THE INDUSTRY….

Count

AHTS

PSV

Crew and Tug

Total

Vessels

Under

Construction*

March

31,

2012

Includes

new

vessel

purchase

commitments

3/31/12

Estimated

delivery

schedule

–

‘13,

‘14

and

thereafter.

CAPX of $220m in FY ‘13, $95m in FY ‘14 and $44m in FY ’15.

…. AND MORE TO COME

Fiscal Year

Actual vessel deliveries through 3/31/12; estimated vessel deliveries based on commitments

to build or acquire as of 3/31/12

Through 3/31/12, vessel

commitments include 263 vessels

with a capital cost of $4.0 billion

THROUGH-CYCLE, EVA-BASED INVESTMENT;

BALANCE BETWEEN “BUY”

and “BUILD”

THROUGH-CYCLE, EVA-BASED INVESTMENT;

BALANCE BETWEEN “BUY”

and “BUILD”

RECENT VESSEL COMMITMENTS

Amounts

depict

vessel

count

and

total

cost

quarter

commitment

was

made

acquire

(not

when

delivery

payments

were

made)

$96M

$55M

$72M

$179M

1 MPSV

1 PSV

4 AHTS

6 AHTS

3 PSV’s

54 vessels over last 2+ years with

a total capital cost of ~$1 billion

$66M

4 AHTS

1 PSV

9 AHTS

$139M

$101M

2 PSV’s

4 PSV

1 AHTS

$100M

$24M

1 AHTS

4 CREW

$83M

3 PSV

$116M

4 PSV

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

9/30/11

Qtr

12/31/11

Qtr

3/31/12

Qtr

Over

13-year

period,

Tidewater

has

invested

$4.1

billion

CapEx($3.6

billion

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 billion and $732 million, respectively

FLEET RENEWAL & EXPANSION

FUNDED BY CFFO THROUGH FISCAL 2012

FLEET RENEWAL & EXPANSION

FUNDED BY CFFO THROUGH FISCAL 2012

$ in millions

CFFO

Fiscal Year

Senior Unsecured Notes

$590 million

Average Life to Maturity (as of 3/31/12)

~ 7.9 years

Weighted Average Coupon

4.30%

Term Loan

$125 million*

Revolving Line of Credit

$450 million

Remaining Term

~ 3.8 years

Interest Rate

LIBOR plus 1.5% to

2.25%, based on leverage

*Term Loan drawn in January 2012

RECENT FINANCINGS WILL FUND GROWTH

AT AN ATTRACTIVE RELATIVE COST

RECENT FINANCINGS WILL FUND GROWTH

AT AN ATTRACTIVE RELATIVE COST

Private Placement Financings:

Credit Facilities:

As of March 31, 2012

Cash & Cash Equivalents

$321 million

Total Debt

$950 million

Shareholders Equity

$2,526 million

Net Debt / Net Capitalization

20%

Total Debt / Capitalization

27%

~$770 million of pro forma liquidity as of 3/31/12, including $450 million of availability

under bank credit facilities.

STRONG FINANCIAL POSITION PROVIDES

ADDITIONAL STRATEGIC OPTIONALITY

STRONG FINANCIAL POSITION PROVIDES

ADDITIONAL STRATEGIC OPTIONALITY

WHERE COULD FISCAL 2014 FIND US?

Potential for Earnings Acceleration

WHERE COULD FISCAL 2014 FIND US?

Potential for Earnings Acceleration

Avg. Dayrates

$15,658*

$17,224

(+ 10%)

$18,946

(+ 10%)

83.2%*

85.0%

90.0%

260 vessel assumption (215 current new vessels + 25 under construction + 20 additional new vessels next year).

* 3/31/12 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

~$535M

EBITDA

~$760M

EBITDA

Actual QtrlyDayrates

6/30/11 $14,091

9/30/11 $14,291

12/31/11 $14,835

3/31/12 $15,658

~$9.50

EPS

~$5.50

EPS

~$3.40

EPS

FINANCIAL STRATEGY FOCUSED

ON CREATING LONG-TERM

SHAREHOLDER VALUE

FINANCIAL STRATEGY FOCUSED

ON CREATING LONG-TERM

SHAREHOLDER VALUE

Maintain

Financial Strength

EVA-Based Investments

On Through-cycle Basis

Deliver Results

Joseph M. Bennett

Executive Vice President and

Chief Investor Relations Officer

June 26, 2012

2012 Global Hunter Securities

100 Energy Conference

APPENDIX

NEW FLEET DRIVING RESULTS

Vessel Revenue ($)

Average Fleet Count

213

Average

New

Vessels

2012

$288

million

Vessel

Revenue

2012

(88% from New Vessels)

100

150

200

250

300

350

400

450

FY 2009

FY 2010

FY 2011

FY 2012

New

Traditional

100

150

200

250

300

350

400

450

FY 2009

FY 2010

FY 2011

FY 2012

New

Traditional

Stacked

Vessel Cash Operating Margin ($)

Vessel Cash Operating Margin (%)

$120

million

Vessel

Margin

2012

(91% from New Vessels)

Q4 2012 Vessel Margin: 41%

CYCLICAL UPTURN

SHOULD DRIVE MARGIN EXPANSION

CYCLICAL UPTURN

SHOULD DRIVE MARGIN EXPANSION

100

125

150

175

200

FY 2009

FY 2010

FY 2011

FY 2012

New

Traditional

10%

20%

30%

40%

50%

60%

70%

FY 2009

FY 2010

FY 2011

FY 2012

Total

New

Traditional

CURRENT REVENUE MIX

Quality of Customer Base

CURRENT REVENUE MIX

Quality of Customer Base

Our top 10 customers in Fiscal 2012 (4 Super Majors,

3 NOC’s and 3 IOC’s) accounted for 59% of our revenue

Super Majors

35%

NOC's

23%

Others

42%

Other Operators

Top 10 Customers

Tidewater’s top 10 customers contract ~19% of the working worldwide

jackup fleet and ~50% of the working worldwide floater fleet

Jackups

(334 Working Rigs)

Floater Rigs

(232 Working Rigs)

272

116

Source: ODS-Petrodata and Tidewater

Other Operators

Top 10 customers

116

RIGS CONTRACTED BY OUR

TOP 10 CUSTOMERS

RIGS CONTRACTED BY OUR

TOP 10 CUSTOMERS

(Estimated as of May 2012)

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% 39.8%

Note: Cash operating margins are defined as vessel revenue less

vessel operating expenses

Fiscal Years

$100

$200

$300

$400

$500

$600

$700

$800

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Twelve Months Ended

3/31/12

3/31/11

Revenues

$1,067

$1,055

Net Earnings*

$110

$123

EPS*

$2.13

$2.40

Net Cash from Operations

$222

$264

Capital Expenditures

$357

$615

*Fiscal 2012 excludes $22.1 million, or $0.43 per share, goodwill impairment charge in September 2011.

Fiscal 2011 excludes an after-tax $4.35 million, or $0.09 per share, charge related to settlement with DOJ and an after-tax $6.3 million, or $0.12 per share, charge

related to settlement with the Government of Nigeria for FCPA matters, an after-tax $3.9 million, or $0.08 per share, charge related to participation in a multi-company

U.K.-based pension plan, and an after-tax $3.0 million, or $0.06 per share, impairment charge related

to certain vessels.

$ in Millions, Except Per Share Data

RECENT FINANCIAL RESULTS

REFLECT CYCLICAL DOWNTURN

RECENT FINANCIAL RESULTS

REFLECT CYCLICAL DOWNTURN

SIGNIFICANT AVERAGE

AGE IMPROVEMENT

SIGNIFICANT AVERAGE

AGE IMPROVEMENT

12/31/11

12/31/12

12/31/13

12/31/14

3/31/06

3/31/07

3/31/08

12/31/08

12/31/09

12/31/10

Average 45 vessel disposals per year in future (versus an average of 50+ vessel dispositions per year over last 3 years).

Includes 25 vessels under construction, including 3 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.

Assumptions:

VESSEL UTILIZATION BY SEGMENT

30%

40%

50%

60%

70%

80%

90%

6/09

9/09

12/09

3/10

6/10

9/10

12/10

3/11

6/11

9/11

12/11

3/12

Americas

Asia/Pac

MENA

Sub Sah Africa

VESSEL DAYRATES BY SEGMENT

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