EX-99.1 2 d896286dex991.htm EX-99.1

Scotia Howard Weil 43 rd Annual Energy Conference March 23, 2015 Joseph M. Bennett EVP & Chief Investor Relations Officer Exhibit 99.1

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 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. Phone: 504.568.1010 | Fax: 504.566.4580 Web site address: www.tdw.com Email: connect@tdw.com TIDEWATER 601 Poydras Street, Suite 1500, New Orleans, LA 70130 2 Scotia Howard Weil 43rd Annual Energy Conference

Safe, efficient and compliant operations New vessels that service all water depths Solid balance sheet and financial flexibility Geographic diversity 3 Scotia Howard Weil 43rd Annual Energy 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 Scotia Howard Weil 43rd Annual Energy Conference Safe Operations is Priority #1 Stop Work Obligation Safety performance is 25% of mgt. incentive comp TOTAL RECORDABLE INCIDENT RATES 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 679 in March 2015. 398 244 Prior peak (summer 2008) Jackups Floaters 5 Scotia Howard Weil 43rd Annual Energy Conference Too Many Offshore Rigs, but Activity Levels Drive OSV Demand Rig CIP Jackups 123 Floaters 85 Other 9 217

Americas 71(27%) SS Africa/Europe 117(45%) MENA 46(18%) Asia/Pac 26(10%) 6 Scotia Howard Weil 43rd Annual Energy Conference Geographic Diversity – Vessel Count by Region (Excludes stacked vessels – as of 12/31/14)

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 7 Scotia Howard Weil 43rd Annual Energy 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 total 18 Traditional vessels is $0.91M at 12/31/14.

Super Majors 37% NOC's 22% Others 41% 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 8 Scotia Howard Weil 43rd Annual Energy 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

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) 9 Scotia Howard Weil 43rd Annual Energy Conference The Largest Modern OSV Fleet in the Industry

10 Scotia Howard Weil 43rd Annual Energy 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. 11 Scotia Howard Weil 43rd Annual Energy Conference Solid Balance Sheet and Financial Flexibility Our Financial Position Provides Us Strategic Optionality

12 Scotia Howard Weil 43rd Annual Energy Conference Debt Maturities and Covenants as of 12/31/14 Maturities Limited for Several Years Fiscal Year Debt Covenants: 1) Debt/Total Capitalization Ratio of not greater than 55% 2) EBITDA/Interest coverage of not less than 3.0X

13 Scotia Howard Weil 43rd Annual Energy Conference Return Capital to Shareholders Consistent Dividends and Opportunistic Share Repurchases (in millions) Fiscal Years ~4.5% Current Dividend Yield

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 14 Scotia Howard Weil 43rd Annual Energy 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) March 2015 Working Rigs 603 538 679 Rigs Under Construction 186 118 217 OSV Global Population 2,033 2,599 3,267 OSV’s Under Construction 736 367 437 OSV/Rig Ratio 3.37 4.83 4.81 16 Scotia Howard Weil 43rd Annual Energy Conference Drivers of our Business “Peak to Present”

Source: ODS-Petrodata and Tidewater As of March 2015, there are approximately 437 additional AHTS and PSV’s (~14% of the global fleet) under construction. Global fleet is estimated at 3,267 vessels, including ~700 vessels that are 25+ yrs old (22%). 17 Scotia Howard Weil 43rd Annual Energy Conference The Worldwide OSV Fleet (Includes AHTs and PSVs only) Estimated as of March 2015 Vessels > 25 years old today

Year Built Deepwater vessels Towing Supply/Supply Other vessels 242 “New” vessels – 6.6 avg yrs 18 “Traditional” vessels – 25.8 avg yrs (only 7 OSVs) 18 Scotia Howard Weil 43rd Annual Energy Conference Tidewater’s Active Fleet As of December 31, 2014

Source: ODS-Petrodata and Tidewater Tidewater Competitor #2 Competitor #3 Competitor #4 Competitor # 5 Competitor #1 Avg. All Others (2,509 total vessels for 400+ owners) 19 Scotia Howard Weil 43rd Annual Energy Conference Vessel Population by Owner (AHTs and PSVs only) Estimated as of March 2015

20 Scotia Howard Weil 43rd Annual Energy Conference The Upgrading of the Tidewater Fleet (A 10 Year Review) Deepwater PSV Deepwater PSV Deepwater AHTS Deepwater AHTS Towing Supply 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

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. 21 Scotia Howard Weil 43rd Annual Energy Conference …and More to Come

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. 22 Scotia Howard Weil 43rd Annual Energy Conference Fleet Renewal & Expansion Largely Funded by CFFO

** 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 Scotia Howard Weil 43rd Annual Energy 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% 24 Scotia Howard Weil 43rd Annual Energy Conference Total Revenue and Margin Fiscal 2008-2015

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 Scotia Howard Weil 43rd Annual Energy Conference Historical Vessel Cash Operating Margins

Utilization stats exclude stacked vessels. 26 Scotia Howard Weil 43rd Annual Energy Conference Active Vessel Dayrates & Utilization by Segment

Q3 Fiscal 2015 Avg Day Rate: $29,929 Utilization: 86.1% $189 million, or 50%, of Vessel Revenue in Q3 Fiscal 2015 27 Scotia Howard Weil 43rd Annual Energy Conference New Vessel Trends by Vessel Type Deepwater PSVs

Q3 Fiscal 2015 Avg Day Rate: $33,375 Utilization: 83.0% $31 million, or 8%, of Vessel Revenue in Q3 Fiscal 2015 28 Scotia Howard Weil 43rd Annual Energy Conference New Vessel Trends by Vessel Type Deepwater AHTS

Q3 Fiscal 2015 Avg Day Rate: $15,647 Utilization: 80.8% $122 million, or 32%, of Vessel Revenue in Q3 Fiscal 2015 29 Scotia Howard Weil 43rd Annual Energy Conference New Vessel Trends by Vessel Type Towing Supply/Supply Vessels

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 Scotia Howard Weil 43rd Annual Energy Conference Tidewater’s New Subsea Business