EX-99.1 2 d78143dex991.htm EX-99.1

Johnson Rice 2015 Energy Conference September 30, 2015 Joseph M. Bennett Executive Vice President and 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. TIDEWATER 601 Poydras Street, Suite 1500, New Orleans, La. 70130 Johnson Rice 2015 Energy Conference 2 Phone: 504.568.1010 | Fax: 504.566.4580 Web site address: www.tdw.com Email: connect@tdw.com

Providing safe, efficient and compliant operations New fleet comprised of vessels that service all water depths Geographic diversity Staying close to our customers Prompt, proactive cost-cutting initiatives (“control what we can control”) Reducing CapEx, and returning capital to shareholders as operating outlook improves Maintaining a solid balance sheet (low leverage) and sufficient liquidity to deal with industry uncertainties & seize opportunities when presented Experienced management team to lead the way Tidewater’s Strategy & Focus in a Challenging Market Johnson Rice 2015 Energy Conference 3

Stop Work Obligation Safety performance is 25% of mgt. incentive comp Safe Operations is Priority #1 Johnson Rice 2015 Energy Conference 4 0.00 0.10 0.20 0.30 0.40 0.50 0.60 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 TOTAL RECORDABLE INCIDENT RATES (per 200,000 Man Hours) TIDEWATER DOW CHEMICAL CHEVRON EXXON/MOBIL

Too Many Offshore Rigs, and Activity Levels Drive OSV Demand Johnson Rice 2015 Energy Conference 5 Source: IHS-Petrodata Note: 31 “Other” rigs, along with the Jackups and Floaters, provide a total working rig count of 587 in September 2015. 356 200 Jackups Floaters Rig CIP Jackups 127 Floaters 73 Other 9 209

Drivers of our Business “Peak to Present” Johnson Rice 2015 Energy Conference 6 July 2008 (Peak) Jan. 2011 (Trough) September 2015 Working Rigs 603 538 587 Rigs Under Construction 186 118 209 OSV Global Population 2,033 2,599 3,357 OSV’s Under Construction 736 367 399 OSV/Rig Ratio 3.37 4.83 5.72 (5.04 without ~400 old vessels believed not available) Source: IHS-Petrodata and Tidewater

Tidewater’s Active Fleet As of June 30, 2015 Johnson Rice 2015 Energy Conference 7 Year Built Deepwater vessels Towing Supply/Supply Other vessels 222 “New” vessels – 7.4 avg yrs 12 “Traditional” vessels – 27.3 avg yrs (only 4 OSVs)

Vessel Population by Owner (AHTS and PSVs only) Estimated as of September 2015 Johnson Rice 2015 Energy Conference 8 Tidewater Competitor #2 Competitor #3 Competitor #4 Competitor # 5 Competitor #1 Avg. All Others (~2,580 total vessels for 400+ owners) Source: IHS-Petrodata and Tidewater

Geographic Diversity – Vessel Count by Region (Excludes stacked vessels – as of 6/30/15) Johnson Rice 2015 Energy Conference 9 Americas 65(28%) SS Africa/Europe 103(44%) MENA 44(19%) Asia/Pac 22(9%) 38 additional Tidewater vessels were stacked as of 6/30/15.

A New Fleet that Services All Water Depths (Excludes stacked vessels – as of 6/30/15) Johnson Rice 2015 Energy Conference 10 New Avg. Traditional Vessels NBV Vessels Deepwater 8 $26.1M 0 Towing Supply 14 $10.8M 0 Other 0 0 0 22 0 New Avg. Traditional Vessels NBV Vessels Deepwater 33 $28.3M 0 Towing Supply 36 $12.6M 1 Other 30 $1.5M 3 99 4 New Avg. Traditional Vessels NBV Vessels Deepwater 36 20.7M 0 Towing Supply 19 $10.4M 2 Other 5 $1.6M 3 60 5 New Avg. Traditional Vessels NBV Vessels Deepwater 13 $17.0M 1 Towing Supply 28 $11.5M 0 Other 0 0 2 41 3 Americas SSAE MENA Asia/Pac Vessel count info is as of 6/30/15, and includes leased vessels. Avg NBV excludes the impact of leased vessels which have no NBV. Average NBV of the 12 Traditional vessels is ~$720,000 each at 6/30/15.

Staying Close to our Customers – Strong Customer Base Current Revenue Mix Johnson Rice 2015 Energy Conference 11 Super Majors 34% NOC's 33% Others 33% 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 Our top 10 customers in Fiscal 2015 (4 Super Majors, 5 NOC’s, and 1 IOC) accounted for 61% of our revenue

Our Remaining Construction Backlog Johnson Rice 2015 Energy Conference 12 Count Deepwater PSVs 9 Deepwater AHTSs - Towing Supply/Supply 2 Other - Total 11 Vessels Under Construction As of June 30, 2015 (adjusted for subsequent amendments*) Estimated delivery schedule – 9 remaining in FY ’16 and 2 in FY ‘17. CAPX of $104m remaining in FY ‘16 and $42m in FY ‘17. * In September 2015, construction contracts for one Towing Supply/Supply vessel and 4 Deepwater PSVs were renegotiated to options to purchase from November 2015 to October 2016. These 5 option vessels are not included in the table above.

CapEx is Decreasing from Recent High Levels Johnson Rice 2015 Energy Conference 13 Amounts in Fiscal 2016 and 2017 represent CAPX on the 11 vessels under construction as of 9/24/15. Fiscal 2014 is exclusive of Troms acquisition NOTE: Fiscal 2016 and 2017 estimated CAPX above is exclusive of any refunds from possible cancelled vessel construction contracts (see note on previous slide re option vessels) Fiscal Year

Solid Balance Sheet and Financial Flexibility Our Financial Position Provides Us Strategic Optionality Johnson Rice 2015 Energy Conference 14 As of June 30, 2015 Cash & Cash Equivalents $103 million Total Debt $1,544 million Shareholders Equity $2,451 million Net Debt / Net Capitalization 37% Total Debt / Capitalization 39% ~$700 million of available liquidity as of 6/30/15, including $600 million of unused capacity under the company’s revolving credit facility.

Debt Maturities and Covenants as of 6/30/15 Maturities Limited for Several Years Johnson Rice 2015 Energy Conference 15 Debt Covenants: 1) Debt/Total Capitalization Ratio of not greater than 55% 2) EBITDA/Interest coverage of not less than 3.0X Fiscal Year

Return Capital to Shareholders Consistent Dividends and Opportunistic Share Repurchases Johnson Rice 2015 Energy Conference 16 (in millions) Fiscal Years ~6.5% Current Dividend Yield During this 16-year period, $659 million of dividends were paid and $757 million of total stock repurchases were made.

Tidewater’s Subsea Business Johnson Rice 2015 Energy Conference 17 Eight work-class ROVs in current fleet Commercial operations underway with additional opportunities in Americas, SSAE and Asia/Pac ROV capabilities generating potential for OSV pull through

Tidewater’s Strategy Johnson Rice 2015 Energy Conference 18 Continue to improve upon stellar safety and compliance programs Stay close to our customers Monitor industry developments to adjust our playbook accordingly - Pro-active cost reduction initiatives - Maintain/protect liquidity 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

HOUSTON, TEXAS Tidewater Marine, L.L.C. 6002 Rogerdale Road Suite 600 Houston, Texas 77072-1655 P: +1 713 470 5300 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 Johnson Rice 2015 Energy Conference 19

The Worldwide OSV Fleet (Includes AHTS and PSVs only) Estimated as of September 2015 Johnson Rice 2015 Energy Conference 20 As of September 2015, there are approximately 399 additional AHTS and PSV’s (~12% of the global fleet) under construction. Some number of these, we believe, will not be completed and delivered. Vessels > 25 years old today Global fleet is estimated at ~3,357 vessels, including ~700 vessels that are 25+ yrs old (21%). Source: ODS-Petrodata and Tidewater

Fleet Renewal & Expansion Largely Funded by CFFO Johnson Rice 2015 Energy Conference 21 Over a 16-year period, Tidewater has invested ~$5.5 billion in CapEx, and paid out ~$1.4 billion through dividends and share repurchases. Over the same period, CFFO and proceeds from dispositions were ~$4.3 billion and ~$930 million, respectively. Fiscal Year

History of Solid Earnings and Returns on a Through-Cycle Basis Johnson Rice 2015 Energy Conference 22 ** 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. EPS in Fiscal 2015 is exclusive of $4.67 per share of goodwill and other assets impairment charges.

Active Vessel Dayrates & Utilization by Segment Johnson Rice 2015 Energy Conference 23 $6,000 $10,000 $14,000 $18,000 $22,000 $26,000 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 Americas Asia/Pac MENA Sub Sah Africa/Eur. 60% 70% 80% 90% 100% 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 Utilization stats exclude stacked vessels.

New Vessel Trends by Vessel Type Deepwater PSVs Johnson Rice 2015 Energy Conference 24 22 23 24 25 25 25 25 28 29 32 34 38 40 43 44 45 47 49 51 54 55 57 62 66 69 73 75 76 76 77 80 81 86 - 40 80 120 160 200 240 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 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 Q4 Q1 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size Average Fleet Size Average Day Rate Utilization-Adjusted Average Day Rate Q1 Fiscal 2016 Avg Day Rate: $26,917 Utilization: 72.7% $153 million, or 51%, of Vessel Revenue in Q1 Fiscal 2016

New Vessel Trends by Vessel Type Deepwater AHTS Johnson Rice 2015 Energy Conference 25 5 5 5 5 5 5 5 5 6 8 9 9 11 11 11 11 11 11 11 11 11 11 11 11 11 11 12 12 12 12 12 12 12 - 40 80 120 160 200 240 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 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 Q4 Q1 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size Average Fleet Size Average Day Rate Utilization-Adjusted Average Day Rate Q1 Fiscal 2016 Avg Day Rate: $30,813 Utilization: 59.6% $20 million, or 7%, of Vessel Revenue in Q1 Fiscal 2016

New Vessel Trends by Vessel Type Towing Supply/Supply Vessels Johnson Rice 2015 Energy Conference 26 39 40 43 46 47 49 51 54 57 59 61 63 68 78 81 83 85 88 93 99 101 101 102 103 103 103 104 105 105 105 105 104 105 - 50 100 150 200 250 $0 $5,000 $10,000 $15,000 $20,000 $25,000 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 Q4 Q1 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Average Day Rate, Adjusted Average Day Rate, and Average Fleet Size Average Fleet Size Average Day Rate Utilization-Adjusted Average Day Rate Q1 Fiscal 2016 Avg Day Rate: $14,252 Utilization: 74.3% $101 million, or 34%, of Vessel Revenue in Q1 Fiscal 2016

Vessel Revenue and Vessel Operating Margin Fiscal 2008-2016 Johnson Rice 2015 Energy Conference 27 Note: Vessel operating margin is defined as vessel revenue less vessel operating expenses 53.0% 46.7% 56.4% 47.7% 38.0% 41.0% 36.9% 45.0% 44.1% 40.8% 46.3% 43.1% 45.6% 39.9% $- $100 $200 $300 $400 $500 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Vessel Revenue ($) Vessel Operating Margin ($) Vessel Operating Margin (%) Prior peak period (FY2009) averaged quarterly revenue of $339M, quarterly operating margin of $175.6M at 51.8% $300 million $150 million 50.0%

Historical Vessel Cash Operating Margins Johnson Rice 2015 Energy Conference 28 Vessel Cash Operating Margin ($) Vessel Cash Operating Margin (%) $119 million Vessel Margin in Q1 FY2016 (98% from New Vessels) Q1 FY2016 Vessel Margin: 40%