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MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore

Hornbeck Offshore · May 22, 2013 · 51 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 1
    Todd M. Hornbeck Chairman, President & CEO Investor Presentation James O. Harp, Jr. May 2013 Executive VP & CFO
  2. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 2
    Company Overview 3
  3. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 3
    Company Profile Financial Highlights Relative Stock Price Performance (IPO to 2-May-2013) 2 Daily Trading Volume (000s) 400% 6,000 Year Founded Jun 1997 350% HOS Year of IPO Mar 2004 5,000 300% OSX Market Cap Inception 1m…
  4. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 4
    Diversified Oilfield Marine Service Provider Offshore Supply Vessels Tugs and Tank Barges Upstream Downstream HOS Cornerstone approaching the drillship GSF CR Luigs. Energy 13501, our first newbuild double-hulled tank barge. 70…
  5. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 5
    Market Diversification Strategy1 By Geographic Area By Service-Offering West Coast East Coast Middle East Military Well Test Port Services Petroleum Services GoM (Downstream) Transportation Latin America Oilfield Supply GoM…
  6. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 6
    Our Core Markets: GoM, Mexico and Brazil Non-Oilfield service Oilfield service 3 OSVs Great Lakes Company locations (Military) (seasonal) East Coast 3 Tugs 3 Barges 2 OSVs Gulf of Mexico (Military) 26 OSVs Puerto Rico Qatar…
  7. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 7
    Top 5 Operator of New Gen OSVs Worldwide By Location By Competitor (by DWT) (by DWT) HOS Core HOS is 4 Med 2% ANZ Other 3% Markets = 42% out of 163 Indian Ocean 5% 2% of WW Supply companies Middle East South America Other 2%…
  8. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 8
    Top Operator of New Gen OSVs in Three Core Markets 2 in U.S. GoM 6 in South America 1 in Mexico (by DWT) (by DWT) (by DWT) Aries Seacor Marine POSH Tidewater Marine Otto Candies 3% 2% Seacor Semco 6% 6% 5% Marine 9% Cotemar 4%…
  9. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 9
    Well-Balanced Blue Chip Customer Base 2013E Upstream Revenue 2013E Upstream Revenue By Customer Type By Customer Credit Rating Integrated Oil AA A Companies 45% 20% 37% National Oil Companies 19% AAA U.S. Oilfield 26%…
  10. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 10
    Safety Record Outperforms Industry Benchmarks Recordable Incident Rates (RIR) 3 2.5 2 1.5 1 0.5 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 RIR IADC (U.S. Waters) RIR OMSA RIR Hornbeck…
  11. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 11
    Upstream Macro Overview
  12. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 12
    Depletion Curve to Drive the Drill Bit Decline in current production needs to be replaced to keep up with forecasted consumption levels Advances in technology have led to large discoveries of hydrocarbons in deepwater regions Note:…
  13. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 13
    Deepwater Trend Driving Upstream Segment Deepwater GoM Production % of Total U.S. Offshore Production from Deepwater 90.0 Oil Prod 80.0 Gas Prod 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 1985 1987 1989 1991 1993 1995…
  14. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 14
    Deepwater E&P Demand Drivers Deepwater and ultra-deepwater exploration and production infrastructure Courtesy of: Clarkson Research Services Limited UK (www.crsl.com) 15
  15. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 15
    Worldwide Deepwater Capex Increasing Rapidly Deepwater Capex by Component Deepwater capex spending expected to more than double over 2011-2015 period worldwide 35% of total deepwater capex over 2011-2015 timeframe to come from…
  16. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 16
    Rising Deepwater Capex Reflected in Floater Demand Global Floating Rig Demand By Water Depth Newbuild Floaters By Delivery Date 100 90 80 17 70 10 60 50 14 87 40 30 26 20 10 20 0 2013E 2014E 2015E 2016E After 2016 Total…
  17. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 17
    Deepwater Wells are Being Drilled to Greater Depths Gulf of Mexico Well Depths 40,000 40,000 Average Deepwater Well Depth 35,000 35,000 Deepest Deepwater Well Drilled 30,000 30,000 25,000 25,000 20,000 20,000 15,000 15,000…
  18. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 18
    Deepwater Wells are Greater Distances From Shore Brazil Espirito Santo Basin New Orleans Corpus Christi Albacora Leste Discovery 75 miles/6 hours Macae Marlim Leste Discovery 70 miles/6 hours Gunnison Big Foot Rio de Janeiro…
  19. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 19
    GoM: Post-Macondo Short Squeeze Now Underway Floating Rig Demand Expected to Increase Actively Drilling Rigs Increasing 50 45 45 Exploration 40 Devlopment 40 35 35 30 30 No. of rigs 25 25 20 20 15 15 10 10 5 5 0…
  20. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 20
    Brazil: Long-Term Deepwater Up-Cycle Brazil Floating Rig Demand Projected Vessel Needs in Brazil Brazil floating rig demand per water depth 600 100 90 WD7500 f 550 568…
  21. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 21
    Mexico: New Gen Shelf Play Transitioning to Deepwater Cantarell Field Production in Decline Driving Mexico Floating Rig Demand Central America floating rig demand per water depth 14 1 WD7500 f 12…
  22. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 22
    Subsea Production Capex To Triple Worldwide USD billion Global Subsea Production Capex by Region Increased demand and declines in existing fields are driving reserve replacement through the drillbit More recently, larger…
  23. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 23
    Steady Growth Expected in Subsea Well Installations Source: Quest Offshore, Barclays Research. Source: Quest Offshore, Barclays Research. Growth in subsea capex is leading to an increase in investment and installation of subsea…
  24. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 24
    Project Spartan OSV Newbuild Program 5
  25. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 25
    Here We Grow Again Pro Forma 2016 Fleet1 2010 Fleet 5% 41% 2005 Fleet 39% 2000 Fleet 7% 24% 37% 30% 19% 50% 11% 3% 20% 100% 13% 1% 1% Total DWT = 13,366 Total DWT= 55,324 Total DWT = 161,812 Total DWT= 309,251…
  26. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 26
    Multi-Class Upstream Fleet Profile Note: Legend Class DWT Newbuilds Upstream Fleet Conventional Under 1,500 Acquisitions 200 1,500 2,500 54 Existing Current Newbuilds 240 2,500 3,500 24 Pending 280 3,500 5,000 300 Over…
  27. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 27
    Strategic Newbuild Program: 300 Class OSVs HOS 200 Class OSV HOS to construct 20 Jones Act-qualified 300 class DP-2 high-spec OSVs, plus fixed-price options These vessels will have an average of 6,000 DWT and 20,000 barrels of…
  28. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 28
    300 Class OSV Newbuild Program Progress Photos The HOS Red Dawn being launched at The HOS Commander being launched at Eastern Shipbuildings Allanton Facility VT Halters Moss Point Marine Facility 24 vessels currently under…
  29. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 29
    200 Class OSV Retrofit Program Progress Photos New mid-body section in place against forward bow New mid-body section assembled for installation section of the HOS Boudin at Bollinger Morgan City into the HOS Beignet at Bollinger…
  30. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 30
    Multi-Class Upstream Fleet Capabilities Deadweight Liquid Mud 10,000 36,000 9,000 32,000 8,000 28,000 7,000 24,000 6,000 20,000 (Barrels) tons) 5,000 16,000 4,000 (Long 12,000 3,000 2,000 8,000 1,000 4,000 0…
  31. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 31
    Versatility of HOS 300 Class Newbuilds Larger area 20,000 for deck cargo DP-2 barrels of capabilities liquid mud offer higher capacity for utilization in deep drilling challenging support seas 6,000 Ideal deadweight platform…
  32. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 32
    Strategic Newbuild Program: 300 Class MPSVs HOS 200 Class OSV HOS to construct four Jones Act-qualified 300 class DP-2 MPSVs, possibility to construct four addl MPSVs These four HOSMAX vessels will have a 250T AHC KB crane,…
  33. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 33
    310 class DP2 MPSVs 34
  34. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 34
    GoM Infrastructure to Drive Demand for MPSVs GoM offshore capex to increase from 9B in 2011 to A forecasted 13 floating platforms are expected to be over 12.5B per year by 2015 installed by 2016 (5 TLPs, 5 Semis and 3 Spars) Over 20B…
  35. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 35
    Pro Forma Jones Act 300 Class OSV Fleet Current Jones Act 300 Class Fleet Pro Forma1 Jones Act 300 Class Fleet (by DWT) (by DWT) GulfMark Aries 3% Marine Gulf Otto Tidewater 3% Offshore Edison Candies 7% Logistics Chouest 9%…
  36. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 36
    HOS 300 Newbuild Pricing Globally Competitive 18,000 17,021 16,000 14,760 14,000 12,740 11,486 11,571 11,667 11,375 12,000 11,111 10,980 10,554 10,000 9,598 9,111 /DWT 8,943 7,500 8,173 8,000 6,000 4,000…
  37. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 37
    Financial Highlights
  38. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 38
    Strong Track Record of Growth 600 300 Revenue EBITDA1 500 250 400 200 300 150 200 100 100 50 0 0 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 OSV Barge OSV Barge Adjustment 2,000…
  39. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 39
    Industry Leading OSV Margins Gross Margin 13-year Average 80.0% HOS OSVs = 63% 70.0% Hornbeck OSVs OSV Peers = 43% 60.0% 50.0% 1Q13 40.0% HOS OSVs = 58% 30.0% OSV Peers = 35% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009…
  40. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 40
    HOS vs. Public Domestic OSV Peers Dayrates Utilization 26,000 100% Pre-Macondo Avg Average Dayrate 92% 22,000 90% Effective Dayrate 13-yr Average 80% 18,000 Hornbeck 13-yr Effective 70% 14,000 Hornbeck 60% 13-yr Average…
  41. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 41
    Compounded Reinvestment of Free Cash Flow 1.2 billion in 1.3 billion in growth 800.0m growth capex and other capex to be 2016E 700.0m invested from invested from 2011 to 554 2007 to 2010 2016 2 31 600.0m 460 510 500.0m 423…
  42. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 42
    New 300 Class Deliveries Will Drive Earnings Power 2012 2013 2014 2015 Current Fleet 2013 Deliveries SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS 2014 Deliveries…
  43. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 43
    Pro Forma Run-Rate EBITDA Illustration 800 740 700 600 560 340 500 260 634 400 380 99 454 300 180 77 274 200 400* 55 276 300* 203 100 200* 130 - Low Case Mid Case High Case Downstream EBITDA OSV EBITDA MPSV…
  44. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 44
    Strong Balance Sheet and Ample Liquidity Recent HOS Financings: 3,000 A = Follow-on Equity Offering in Nov-2011 B = Refinancing of 6.125% Senior Notes due 2014 with 5.875% Senior Notes due 2020 in Mar-2012 C = Refinancing of 1.625%…
  45. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 45
    No Near-Term Maturities of Long-Term Debt 6.125% Notes were refinanced with 5.875% 6.125% Senior Notes in Mar-2012 Notes due 2014 5.875% Senior Notes due 2020 1.625% Notes to be retired in Nov-2013 with 1.625% Convertible 1.500%…
  46. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 46
    HOS Price-Book Ratio Still Below Historic Averages Net Debt Market Cap Price to-Book Ratio Since 2004, the HOS price-to-book ratio has traded in broad range of 40% to 400% of NBV Since its IPO in Mar 2004, HOS has traded at an…
  47. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 47
    Relative Trading Volume L3M Trading Volume (shares) to Floating Market Cap Ratio 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% TDW CKH GLF HOS HOS = 2.1% OSV Peer Mean = 1.2% TDW CKH GLF HOS L3M Share Volume 630,673 167,603 304,752…
  48. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 48
    Investment Highlights Young One of the youngest fleets in the industry with an average age of eight years Technologically Multi-class OSV and MPSV fleet capable of servicing our customers needs from cradle-to-grave Advanced Fleet New…
  49. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 49
    Todd M. Hornbeck Chairman, President & CEO Investor Presentation James O. Harp, Jr. May 2013 Executive VP & CFO
  50. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 50
    Appendix
  51. MAY 2013 INVESTOR PRESENTATION – Hornbeck Offshore – slide 51
    Regulation G EBITDA Reconciliation This presentation contains references to the non-GAAP financial measures of earnings (net income) before interest, income taxes, depreciation and amortization, or EBITDA, and Adjusted EBITDA. The…

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