Tidewater (TDW) 8-K Johnson Rice Energy Conference

TIDEWATER

TIDEWATER

JOHNSON RICE ENERGY CONFERENCE

JOHNSON RICE ENERGY CONFERENCE

October 6, 2009

Dean E. Taylor

Dean E. Taylor

Chairman, President & CEO

Chairman, President & CEO

Quinn P. Fanning

Quinn P. Fanning

Executive Vice President, CFO

Executive Vice President, CFO

Joseph M. Bennett

Joseph M. Bennett

Executive Vice President and Chief

Executive Vice President and Chief

Investor Relations Officer

Investor Relations Officer

Exhibit 99.1

2

TIDEWATER

TIDEWATER

601 Poydras Street, Suite 1900

New Orleans, LA 70130

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; 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,

especially in higher risk countries of operations; foreign currency fluctuations; 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.

Phone:

504.568.1010  |  Fax: 504.566.4580  |  Web: www.tdw.com  |  Email: connect@tdw.com

0.00

0.25

0.50

0.75

1.00

3

SAFETY RECORD RIVALS

SAFETY RECORD RIVALS

LEADING COMPANIES

LEADING COMPANIES

Total Recordable Incident Rates

2002

2003

2004

2005

2006

2007

Calendar Years

2008

TIDEWATER

DOW CHEMICAL

DUPONT

EXXON/MOBIL

BP

A REMINDER OF

A REMINDER OF

OUR WORKPLACE

OUR WORKPLACE

5

TIDEWATER

TIDEWATER

TODAY

TODAY

Solid safety record  –

One LTA and .18 TRIR in FY’09; good record YTD

Unmatched

(and

growing)

global

footprint

–

50+

years

internationally

and working in over 60 countries

Entire

fleet

earning

solid

returns

–

Third

consecutive

year

of

record

earnings (19.3% Return on Average Equity over the last three fiscal

years)

Strong

balance

sheet

–

zero

net

debt

at

June

30,

2009

Continuing

to

invest

in

new

vessels

with

expanded

capabilities

–

22

deliveries in last 15 months and 45 under construction at 6/30/09

Track record of prudent capital management and of returning capital

to

shareholders

–

consistent

paying

of

dividends

and

selective

share

repurchases historically

6

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

OUR STRATEGY

OUR STRATEGY

(Not much has changed!)

(Not much has changed!)

$0.00

$2.00

$4.00

$6.00

$8.00

Fiscal 2004

Fiscal 2005

Fiscal 2006

Fiscal 2007

Fiscal 2008

Fiscal 2009

SIGNIFICANT

SIGNIFICANT

EARNINGS GROWTH

EARNINGS GROWTH

7

50% Five-Year Compounded

50% Five-Year Compounded

Annual Earnings Growth Rate

Annual Earnings Growth Rate

FY End Stock Price  $28.13

$38.86         $55.23         $58.58         $55.11

$37.13

**

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.

$1.03

$1.78

$3.33

$5.94

$6.39

$7.89

USING CASH TO GROW OUR

USING CASH TO GROW OUR

BUSINESS & RETURN TO

BUSINESS & RETURN TO

SHAREHOLDERS

SHAREHOLDERS

$0

$100

$200

$300

$400

$500

$600

$700

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

CAPX

Dividend

Share Repurchase

(in millions)

8

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.

STRONG BALANCE SHEET

STRONG BALANCE SHEET

+ $750 million of Available Liquidity at 6/30/09 (Cash plus $450m Revolver)

+ $750 million of Available Liquidity at 6/30/09 (Cash plus $450m Revolver)

$300

$300

Long-term Debt

$2,245

$2,280

Stockholders’

Equity

2.1%

0%

Net Debt to Total Cap

$251         

$315

Cash

March 2009

June 2009

($ in Millions)

($ in Millions)

9

SELECTED FINANCIAL

SELECTED FINANCIAL

HIGHLIGHTS

HIGHLIGHTS

* Adjusted Net Earnings and Adjusted EPS for the quarter ended 6/30/09

* Adjusted Net Earnings and Adjusted EPS for the quarter ended 6/30/09

excludes $47.7 million, or $0.93 per share, related to provision

excludes $47.7 million, or $0.93 per share, related to provision

for

for

Venezuelan operations

Venezuelan operations

($

in

Thousands,

Except

Per

Share

Data)

Quarters Ended

$1.64

$1.79

Adjusted EPS*

$84,776

$92,222

Adjusted Net Earnings*

$90,997

$70,350

Net Cash from

Operations

$129,657

$92,172

Capital Expenditures

$340,054

$326,609

Revenues

6/30/08

6/30/09

10

SELECTED FINANCIAL

SELECTED FINANCIAL

HIGHLIGHTS

HIGHLIGHTS

* Cash Operating Margin % is defined as vessel revenue less vessel OPEX,

* Cash Operating Margin % is defined as vessel revenue less vessel OPEX,

divided by vessel revenue.

divided by vessel revenue.

($

in

Thousands,

Except

Per

Share

Data)

Quarters Ended

46.2%

50.5%

Cash Operating

Margin %*

$176,728

$153,651

Vessel OPEX

$35,108

$34,388

G&A expense

$10,387

$12,538

Gain on asset disp.

$328,371

$310,436

Vessel Revenues

6/30/08

6/30/09

11

$0

$100

$200

$300

$400

$500

$600

$700

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Fiscal Years

FLEET CASH

FLEET CASH

OPERATING MARGINS

OPERATING MARGINS

12

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%

0

50

100

150

200

Q1FY10

Operating

Margin

$156.8

FLEET RENEWAL

FLEET RENEWAL

PROVIDES SCOPE FOR

PROVIDES SCOPE FOR

MARGIN GROWTH

MARGIN GROWTH

Traditional Vessels (37%)

New Vessels (63%)

($ in millions)

13

0

50

100

150

200

Q1FY10

Operating

Margin

Vessel

Disposals

$156.8

FLEET RENEWAL

FLEET RENEWAL

PROVIDES SCOPE FOR

PROVIDES SCOPE FOR

MARGIN GROWTH

MARGIN GROWTH

Assume ~ 2/3 of traditional vessels

are disposed of over the next few

years

($ in millions)

($34.9)

14

0

50

100

150

200

Q1FY10

Operating

Margin

Vessel

Disposals

CIP

$156.8

FLEET RENEWAL

FLEET RENEWAL

PROVIDES SCOPE FOR

PROVIDES SCOPE FOR

MARGIN GROWTH

MARGIN GROWTH

46 vessels currently under

construction

Analysis assumes:

•

Average dayrate of

$20,000/day

•

Utilization of 90%

•

Cash operating margin of

55%

($ in millions)

($34.9)

+$41.5

15

0

50

100

150

200

Q1FY10

Operating

Margin

Vessel

Disposals

CIP

+5%

Utilization

+$1,000

Dayrate

+24% Operating Margin

$156.8

$194.8

FLEET RENEWAL

FLEET RENEWAL

PROVIDES SCOPE FOR

PROVIDES SCOPE FOR

MARGIN GROWTH

MARGIN GROWTH

Near-term vessel

retirements followed by

market upturn should

positively impact utilization

and dayrates

Analysis assumes +5% on

utilization and +$1,000 on

average dayrates for

existing vessels

($ in millions)

($34.9)

+$41.5

+$14.8

+$16.7

16

0

50

100

150

200

Q1FY10

Operating

Margin

Vessel

Disposals

CIP

+5%

Utilization

+$1,000

Dayrate

+24% Operating Margin

$156.8

$194.8

FLEET RENEWAL

FLEET RENEWAL

PROVIDES SCOPE FOR

PROVIDES SCOPE FOR

MARGIN GROWTH

MARGIN GROWTH

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,

and  fluctuations in vessel utilization and day rates.

($34.9)

+$41.5

+$14.8

+$16.7

17

18

Unique global footprint; 50+ years of Int’l experience

Unmatched scale and scope of operations

43 of 45 of current newbuilds in Int’l yards

Longer contracts, better utilization, higher dayrates for

new & traditional vessels operating in Int’l markets

Solid customer base of NOC’s and IOC’s

INTERNATIONAL

INTERNATIONAL

STRENGTH

STRENGTH

Active Vessel Count By Region

(excludes stacked vessels)

North America

North America

19 (6%)

19 (6%)

(6%)

Europe/M.E.

Europe/M.E.

37 (12%)

37 (12%)

(12%)

Far East

Far East

45 (14%)

45 (14%)

(14%)

West Africa

West Africa

136 (43%)

136 (43%)

(43%)

Central/South

Central/South

America

America

81 (25%)

81 (25%)

(25%)

94% International       6% Domestic

94% International       6% Domestic

(vs. 65% International and 35% Domestic ten years ago)

(vs. 65% International and 35% Domestic ten years ago)

TIDEWATER TODAY

TIDEWATER TODAY

INTERNATIONAL STRENGTH

INTERNATIONAL STRENGTH

(as of 6/30/09)

(as of 6/30/09)

(Includes AHTS and PSV’s only)

(Includes AHTS and PSV’s only)

20

VESSEL POPULATION

VESSEL POPULATION

BY OWNER

BY OWNER

Estimated as of June 2009

Estimated as of June 2009

Source: ODS-Petrodata and Tidewater

Tidewater

Competitor #2

Competitor #3

Competitor #4

Competitor # 5

Competitor #1

Avg. All Others

(1,589 total vessels

for 300+ owners)

277

92

83

72

64

61

5

NOC's

23%

Others

37%

Super Majors

40%

Our top 10 customers (5 Super Majors, 4 NOC’s and one

Our top 10 customers (5 Super Majors, 4 NOC’s and one

large independent) currently account for 60% of our revenue

large independent) currently account for 60% of our revenue

CURRENT REVENUE MIX

CURRENT REVENUE MIX

Quality of Customer Base

Quality of Customer Base

21

22

Strive for a Balance Between

Strive for a Balance Between

Performance, Growth and Financial Strength

Performance, Growth and Financial Strength

Ability to support continued fleet renewal and growth

Current environment will present opportunities to utilize

our financial strength

Funding with internal cash flow and available credit

Always weigh build vs. buy criteria

GROWING INDUSTRY’S

GROWING INDUSTRY’S

LARGEST FLEET

LARGEST FLEET

23

LARGEST NEW FLEET

LARGEST NEW FLEET

IN THE INDUSTRY…

IN THE INDUSTRY…

Vessel Commitments Jan. ’00 –

Vessel Commitments Jan. ’00 –

June ’09

June ’09

(1) Includes vessels added to the fleet financed by bareboat charter.

(2) $2,372m funded through 6/30/09.

*Excludes ENSCO fleet acquisition effected April 1, 2003.

At 6/30/09, 147 new vessels in fleet with 5.0 year average age

At 6/30/09, 147 new vessels in fleet with 5.0 year average age

$1,360m

72

PSV’s

$2,944m

(2)

207

TOTALS:

(1)

$275m 

65

Crewboats & Tugs

$1,309m

70

AHTS

Estimated Cost

Vessel Count

…

…

AND COUNTING

AND COUNTING

24

Estimated delivery schedule –

22 remaining in FY’

10,  9 in FY’

11, 11 in FY’

12

and 2 thereafter.

CAPX of $272m remaining in FY’

10, $153m in FY’

11, $135m in FY’

12 and $12m in FY’

13

Our approach to managing construction

Our approach to managing construction

Building vessels

worldwide

Due diligence focused

on yards

Tidewater staff

supervise on site

Vessels Under Construction

Vessels Under Construction

As of June 30, 2009

As of June 30, 2009

45

Total

23

PSV

4

Crew and Tug

18

AHTS

Count

25

IMPROVING AVERAGE AGE

IMPROVING AVERAGE AGE

OF TIDEWATER FLEET

OF TIDEWATER FLEET

Assumptions:  1) Average 45 vessel disposals per year in future (averaged 47 per year last three years).

2) Include 46 vessels under construction in year delivered plus additional

newbuilds/acquisitions from approximately $500 million

per year of future commitments. 

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

3/31/04

Actual

3/31/05

Actual

3/31/06

Actual

3/31/07

Actual

3/31/08

Actual

12/31/08

Actual

12/31/09

Estimate

12/31/10

Estimate

12/31/11

Estimate

12/31/12

Estimate

5

10

15

20

25

Out With the Traditional –

Out With the Traditional –

In With the New

In With the New

0

100

200

300

400

500

Active Fleet

Dispositions

26

LARGEST NEW FLEET

LARGEST NEW FLEET

IN THE INDUSTRY

IN THE INDUSTRY

(as of 6/30/09)

(as of 6/30/09)

(A) Net new vessels added to the fleet since January 2000, including 45 vessels under construction at 6/30/09.

363 (B)

470 (C)

192 New Vessels (A)

381 Sold

381 Sold

89 Scrapped

89 Scrapped

(C) 470 vessel dispositions generated $615 million of proceeds and $254 million of gains.

(B) Total fleet count excludes 66 stacked vessels as of 6/30/09.

0

50

100

150

200

250

1965

1970

1975

1980

1985

1990

1995

2000

2005

27

EXPECTED RETIREMENTS

EXPECTED RETIREMENTS

EXCEED NEW DELIVERIES

EXCEED NEW DELIVERIES

(Includes AHTS and PSV’s only)

Estimated as of June 2009

As of 6/30/09, there are approximately 631

additional

AHTS

and

PSV’s

under

construction. Through 9/24/09 an estimated

184 vessels have been delivered in 2009.

Of

Of

the

the

total

total

2,238

2,238

vessels,

vessels,

337

337

vessels

vessels

are

are

30+

30+

yrs

yrs

old,

old,

another

another

503

503

are

are

25-29

25-29

yrs

yrs

old,

old,

and

and

93

93

are

are

20-24

20-24

yrs

yrs

old

old

Source: ODS-Petrodata and Tidewater

28

FINANCIAL STRATEGY

FINANCIAL STRATEGY

Deploy

Deploy

Capital

Capital

Deliver

Deliver

Results

Results

Maintain Financial

Maintain Financial

Strength

Strength

Focused on Long Term Shareholder Value

Focused on Long Term Shareholder Value

TIDEWATER

TIDEWATER

JOHNSON RICE ENERGY CONFERENCE

JOHNSON RICE ENERGY CONFERENCE

October 6, 2009

Dean E. Taylor

Dean E. Taylor

Chairman, President & CEO

Chairman, President & CEO

Quinn P. Fanning

Quinn P. Fanning

Executive Vice President, CFO

Executive Vice President, CFO

Joseph M. Bennett

Joseph M. Bennett

Executive Vice President and Chief

Executive Vice President and Chief

Investor Relations Officer

Investor Relations Officer

TIDEWATER

TIDEWATER

APPENDIX

APPENDIX

31

Impacts of current financial crisis and global recession

•

Rig and vessel construction backlogs

•

Financial health of shipyards and competitor

Future oil and gas prices

E&P spending

Obama administration’s approach to energy and tax

policy

Vessel utilization and pricing

MANY UNANSWERED

MANY UNANSWERED

QUESTIONS AT THIS TIME

QUESTIONS AT THIS TIME

32

Cash on the balance sheet

Low debt, and no net debt at 6/30/09

Undrawn, new, expanded credit facility

Manageable new construction backlog

Solid customer base (large exposure to NOC’s and

IOC’s)

Good contract coverage

TDW

TDW

’s

’s

FINANCIAL

FINANCIAL

STABILITY

STABILITY

DURING TRYING TIMES

DURING TRYING TIMES

33

VESSEL / RIG RATIO

VESSEL / RIG RATIO

Source: ODS-Petrodata and Tidewater

Estimated as of June 2009

Current Vessel Demand Dynamics:

2,238

Global Vessel Count (AHTS & PSV only)

550

Global Working Rigs

4.1

Vessel to Rig Ratio

Possible

Incremental

Vessel

Demand:

158

New rigs under construction

(???Cancellations???)

Jackups

Semi

Drillships

June 2008

379

145

30

June 2009

317

151

38

     Variance

(62)

6

8

34

GOM accounts for 40 of the 62 working jackup count variance

GOM accounts for 40 of the 62 working jackup count variance

Source: ODS-Petrodata and Tidewater

Source: ODS-Petrodata and Tidewater

WORKING RIG COUNTS

WORKING RIG COUNTS

RIGS CONTRACTED BY

RIGS CONTRACTED BY

OUR TOP 10 CUSTOMERS

OUR TOP 10 CUSTOMERS

(Estimated as of June 2009)

(Estimated as of June 2009)

* PEMEX alone has 31 of the 84 jackups

* PEMEX alone has 31 of the 84 jackups

Source: ODS-Petrodata and Tidewater

35

Jackups

Semi

Drillships

June 2009 working rigs

317

151

38

Working for top 10 customers

84

76

24

26%

50%

63%

50%

60%

70%

80%

90%

6/06

12/06

6/07

12/07

6/08

12/08

6/09

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

36

INTERNATIONAL VESSELS

INTERNATIONAL VESSELS

Dayrates and Utilization

Dayrates and Utilization

$100

change

in

dayrate

=

$9.4M

in

revenue

1%

change

in

utilization

=

$15.7M

in

revenue

* Dayrate and utilization information is for all classes of vessels operating international.

Utilization

Dayrate

New Vessels

Traditional Vessels

INTERNATIONAL

INTERNATIONAL

VESSEL

VESSEL

DAYRATES

DAYRATES

* Dayrate information is for all classes of vessels operating internationally.

37

$3,000

$5,000

$7,000

$9,000

$11,000

$13,000

$15,000

$17,000

$19,000

Jun-

06

Dec-

06

Jun-

07

Dec-

07

Jun-

08

Dec-

08

Jun-

09

40%

50%

60%

70%

80%

90%

6/06

12/06

6/07

12/07

6/08

12/08

6/09

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

38

DOMESTIC VESSELS

DOMESTIC VESSELS

Dayrates and Utilization

Dayrates and Utilization

* Dayrate and utilization information is for all classes of vessels operating in the U.S.

Utilization

Dayrate

$3,000

$5,000

$7,000

$9,000

$11,000

$13,000

$15,000

$17,000

$19,000

Jun-06

Dec-06

Jun-07

Dec-07

Jun-08

Dec-08

Jun-09

New Vessels

Traditional Vessels

DOMESTIC VESSEL

DOMESTIC VESSEL

DAYRATES

DAYRATES

* Dayrate

information

is

for

all

classes

of

vessels

operating

in

the

U.S.

39

40

SUPERIOR OPERATING

SUPERIOR OPERATING

CAPABILITIES DRIVE OUR

CAPABILITIES DRIVE OUR

COMPETITIVE ADVANTAGE

COMPETITIVE ADVANTAGE

Superior operating performance

Superior operating performance

–

Safety-oriented culture

–

Deep knowledge of customer needs

International scope and relationships

International scope and relationships

–

Worldwide market presence

(over 60 countries)

–

Long-term relationships with major operators

(Over 200 customers)

Attractive fleet

Attractive fleet

–

Most new vessels in industry

–

Wide range of equipment types

Cost efficient management

Cost efficient management

–

“Lean”

operations and overhead

–

Aggressive construction cost management

41

VESSEL ACQUISITION

VESSEL ACQUISITION

ALTERNATIVES

ALTERNATIVES

Buy Existing

Buy Existing

Construct

Construct

New

New

Buy Fleet

Buy Fleet

(e.g., Buy Company)

(e.g., Buy Company)

Considerations:

Considerations:

Usually one-off

purchases, often to

match specific client

needs

Immediate delivery

Entry price at “full”

market rate

Considerations:

Considerations:

Built to Tidewater

quality standards

18 + months to delivery

Potential shipyard

backlog

Contract terms (e.g.,

fixed price, LDs, etc.)

Resource requirements

to oversee construction

Considerations:

Considerations:

Quality of equipment

Existing contracts

Potential synergies

Potential divestiture of

non core assets

Potential premium

Execution risk

Value creation potential

vs. alternatives

42

CONSIDERATIONS IN

CONSIDERATIONS IN

DESIGNING OUR “OPTIMAL”

DESIGNING OUR “OPTIMAL”

VESSEL MIX

VESSEL MIX

Custom/

Specialized

Standardized

Small

Ultra big

Renew

existing

Expand to

niche markets

Drilling,

production

Subsea,

maintenance,

LNG etc.

Cycle timers

Invest

across

cycle

*Arrows are illustrative of Tidewater’s current views;  they should not be

interpreted  as excluding other points on the continuums in the future.

Vessel Type

Vessel Type

Specifications

Specifications

Operating Capabilities

Operating Capabilities

End Users

End Users

Supply/Demand

Supply/Demand

TDW*

TDW*