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Investor Presentation – Hornbeck Offshore

Hornbeck Offshore · Sep 30, 2014 · 50 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. Investor Presentation – Hornbeck Offshore – slide 1
    Todd M. Hornbeck Chairman, President & CEO Investor Presentation James O. Harp, Jr. September 2014 Executive VP & CFO
  2. Investor Presentation – Hornbeck Offshore – slide 2
    Company Overview 3
  3. Investor Presentation – Hornbeck Offshore – slide 3
    Company Profile Financial Highlights Relative Stock Price Performance (IPO to 28-Aug-2014) 2 Daily Trading Volume (000s) Year Founded Jun 1997 400% 6,000 Year of IPO Mar 2004 350% HOS 5,000 300% Market Cap Inception 1m Russell…
  4. Investor Presentation – Hornbeck Offshore – slide 4
    Diversified Oilfield Marine Service Provider Offshore Supply Vessels Multi-Purpose Service Vessels HOS Cornerstone approaching the drillship GSF CR Luigs. HOS Iron Horse performing subsea support services. 58 Existing New Gen…
  5. Investor Presentation – Hornbeck Offshore – slide 5
    Sale of Downstream Segment Ocean-going Tugs Tank Barges 9 Rebuilt Tugs 9 Double-Hulled Barges Closed the sale of substantially all of the Downstream segment to Genesis Marine in August 2013 The all-cash transaction generated…
  6. Investor Presentation – Hornbeck Offshore – slide 6
    Market Diversification Strategy1 By Geographic Area By Service-Offering Military Middle East Port Services Other Intl Services East Coast West Coast Latin America Oilfield Specialty Oilfield Supply GoM 6 Geographic…
  7. Investor Presentation – Hornbeck Offshore – slide 7
    Our Core Markets: GoM, Mexico and Brazil Non-Oilfield service West Coast Oilfield service 3 OSVs Company locations (Military) East Coast 3 OSVs Gulf of Mexico (Military) 31 OSVs Europe/ 3 MPSVs Middle East 3 OSVs 1 MPSV…
  8. Investor Presentation – Hornbeck Offshore – slide 8
    Top 3 Operator of New Gen OSVs Worldwide By Location By Competitor (by DWT) (by DWT) HOS Core HOS is 3 Med 1% ANZ 2% Markets = 40% out of 186 Indian Ocean 4% Other 2% of WW Supply companies Middle East 2% South Other America…
  9. Investor Presentation – Hornbeck Offshore – slide 9
    Top 3 Operator of Hi-Spec OSVs Worldwide and in the GoM 3 Operator Worldwide 2 Operator in the GoM (Jones Act) (Pro Forma Hi-Spec Fleet1 by DWT) (Pro Forma Hi-Spec Fleet1 by DWT) Seacor Laborde Bordelon Siem Marine Marine Odyssea…
  10. Investor Presentation – Hornbeck Offshore – slide 10
    Top 2 Operator of 300 Class OSVs Worldwide and in the GoM 2 Operator Worldwide 1 Operator in the GoM (Jones Act) (Pro Forma 300 Class Fleet1 by DWT) (Pro Forma 300 Class Fleet1 by DWT) Otto Candies Tidewater Aries Marine Harvey…
  11. Investor Presentation – Hornbeck Offshore – slide 11
    Well-Balanced Blue Chip Customer Base 2014E Upstream Revenue 2014E Upstream Revenue By Customer Type By Customer Credit Rating Integrated Oil Companies A AA 24% 47% 19% Independent National Oil E&P BBB Companies Companies…
  12. Investor Presentation – Hornbeck Offshore – slide 12
    Safety Record Outperforms Industry Benchmarks Recordable Incident Rates (RIR) 3 10,000,000 2.5 8,000,000 2 6,000,000 1.5 4,000,000 1 2,000,000 0.5 0 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011…
  13. Investor Presentation – Hornbeck Offshore – slide 13
    Upstream Macro Overview
  14. Investor Presentation – Hornbeck Offshore – slide 14
    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:…
  15. Investor Presentation – Hornbeck Offshore – slide 15
    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 1997…
  16. Investor Presentation – Hornbeck Offshore – slide 16
    Deepwater E&P Demand Drivers Deepwater and ultra-deepwater exploration and production infrastructure Courtesy of: Clarkson Research Services Limited UK (www.crsl.com) 17
  17. Investor Presentation – Hornbeck Offshore – slide 17
    Worldwide Deepwater Capex Increasing Rapidly Deepwater Capex by Component 2014-2018 worldwide deepwater capex spending expected to more than double from previous five years After operator delays slow spending in 2015, capex is…
  18. Investor Presentation – Hornbeck Offshore – slide 18
    Rising Deepwater Capex Reflected in Floater Demand Global Number of Offshore Wells Drilled Newbuild Floaters By Delivery Date 100 90 14 80 70 13 60 18 50 92 40 25 30 20 10 22 0 2014E 2015E 2016E 2017E After Total 2017E…
  19. Investor Presentation – Hornbeck Offshore – slide 19
    Deepwater Wells are Being Drilled to Greater Depths Gulf of Mexico Well Depths Source: BSEE. Well Depth defined as True Vertical Depth Average deepwater well depths in the GoM have increased from 10k feet in 1993 to nearly 20k…
  20. Investor Presentation – Hornbeck Offshore – slide 20
    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…
  21. Investor Presentation – Hornbeck Offshore – slide 21
    Steady Growth Expected in Subsea Well Capex Deepwater Subsea Production Capex Deepwater SURF Capex More recently, larger discoveries have been made in deeper waters and more remote regions Production in these water depths and…
  22. Investor Presentation – Hornbeck Offshore – slide 22
    Mexico Overview
  23. Investor Presentation – Hornbeck Offshore – slide 23
    Mexico: New Gen Shelf Play Transitioning to Deepwater Crude Oil Production in Decline Potential E&P Spending in Mexico (Mbd) Post-Energy Reform Source: PEMEX. Source: Marcos y Asociados, Barclays Research 1 As of 30-June-2014…
  24. Investor Presentation – Hornbeck Offshore – slide 24
    Mexico Energy Reform Passage of Constitutional Passage of Secondary Round Zero, Joint Ventures, Regulatory Round One Tenders Reform Legislation Organizations Aug 2013-Dec 2013 Apr 2014-Aug 2014 Mar 2014-Oct 2014 Aug…
  25. Investor Presentation – Hornbeck Offshore – slide 25
    Mexicos Deepwater Potential Over 50% of the 53 billion barrels of conventional prospective resources are in deepwater Pemex granted 83% of 2P Reserves and 21% of total Prospective Resources in Round Zero Round Zero decision…
  26. Investor Presentation – Hornbeck Offshore – slide 26
    U.S.-Mexico Transboundary Agreement Removes uncertainties regarding development of resources that cross the U.S.-Mexico maritime boundary Nearly 1.5 million acres containing 172 million bbls of oil and 304 billion ft3 of natural…
  27. Investor Presentation – Hornbeck Offshore – slide 27
    Top Operator of New Gen OSVs in Mexico 1 New Gen OSV Operator in Mexico (Pro Forma by DWT) POSH Otto Candies Seacor 6% Semco 9% Marine 10% Oceanografia Cotemar 4% 10% Naviera 4% Aries Tidewater Marine 11% Other 8% 4%…
  28. Investor Presentation – Hornbeck Offshore – slide 28
    Hornbeck Offshore Steady Growth in Mexico Average Vessels in Mexico Total Mexico Revenue 14.0 100,000 90,000 12.0 80,000 10.0 70,000 Avg. Vessel Count in thousands 60,000 8.0 50,000 6.0 40,000 4.0 30,000 20,000…
  29. Investor Presentation – Hornbeck Offshore – slide 29
    Project Spartan OSV Newbuild Program 5
  30. Investor Presentation – Hornbeck Offshore – slide 30
    Here We Grow Again Pro Forma 2016 Fleet1 2010 Fleet 5% 39% 2005 Fleet 39% 2000 Fleet 7% 24% 37% 30% 21% 50% 11% 3% 20% 100% 13% 0% 1% Total DWT = 13,366 Total DWT= 55,324 Total DWT = 161,812 Total DWT= 305,063…
  31. Investor Presentation – Hornbeck Offshore – slide 31
    Multi-Class Upstream Fleet Profile Newbuilds Note: Legend Class DWT Acquisitions Conventional Under 1,500 Current Newbuilds 200 1,500 2,500 Upstream Fleet 240 2,500 3,500 62 Existing 280 3,500 5,000 15 Pending 300 Over…
  32. Investor Presentation – Hornbeck Offshore – slide 32
    Strategic Newbuild Program: 300 Class OSVs HOS 200 Class OSV HOS constructing 19 Jones Act-qualified 300 class DP-2 high-spec OSVs These vessels will have an average of 6,000 DWT and 20,000 barrels of liquid mud carrying…
  33. Investor Presentation – Hornbeck Offshore – slide 33
    Strategic Newbuild Program: 310 Class MPSVs HOS 200 Class OSV HOS announced plans to convert one 310 class OSV under construction into a 310 class MPSV HOS now constructing five Jones Act-qualified 310 class DP-2 MPSVs,…
  34. Investor Presentation – Hornbeck Offshore – slide 34
    310 class DP2 MPSVs 35
  35. Investor Presentation – Hornbeck Offshore – slide 35
    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 8,943 /DWT 7,500 8,173 8,000 6,000 4,000…
  36. Investor Presentation – Hornbeck Offshore – slide 36
    Financial Highlights
  37. Investor Presentation – Hornbeck Offshore – slide 37
    Strong Track Record of Growth 700 400 Revenue EBITDA1 600 350 500 300 250 400 200 300 150 200 100 100 50 0 0 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 OSV Barge OSV…
  38. Investor Presentation – Hornbeck Offshore – slide 38
    Industry Leading OSV Margins Gross Margin 14-year Average 80.0% HOS OSVs = 62% 70.0% Hornbeck OSVs OSV Peers = 42% 60.0% 50.0% 1H14 40.0% HOS OSVs = 55% 30.0% OSV Peers = 41% OSV Peer Group HOS Operating Margin 60.0%…
  39. Investor Presentation – Hornbeck Offshore – slide 39
    HOS vs. Public Domestic OSV Peers Dayrates Utilization 30,000 100% Pre-Macondo Avg Average Dayrate 92% 26,000 90% Effective Dayrate 15-yr Average 22,000 80% Hornbeck 18,000 15-yr Effective 70% Hornbeck 14,000 60% 15-yr…
  40. Investor Presentation – Hornbeck Offshore – slide 40
    Compounded Reinvestment of Free Cash Flow 700.0m 1.2 billion in 1.3 billion in growth 2016E growth capex and other capex to be 600.0m invested from invested from 2011 to 490 26 2007 to 2010 2016 2 384 460 500.0m 423 422…
  41. Investor Presentation – Hornbeck Offshore – slide 41
    300 Class OSV Deliveries Will Drive Earnings Power 2012 2013 2014 2015 Current Fleet 2013 Deliveries SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS 2014 Deliveries…
  42. Investor Presentation – Hornbeck Offshore – slide 42
    Newbuilds are Highly Accretive to Cash Flow / shr 10 8.99 9 8 7 6.61 6.21 6 5.63 5 4.78 4.34 4.18 3.90 4 3.46 2.83 2.81 3 2 1 - 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E 2015E 1 1 1 HOS has already funded…
  43. Investor Presentation – Hornbeck Offshore – slide 43
    Pro Forma Run-Rate EBITDA Illustration Low Case Mid Case High Case Notes: These pro forma scenarios are solely intended to illustrate the hypothetical annual EBITDA-generating potential of our pro forma full fleet complement of…
  44. 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. 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 were retired in Nov-2013 with 1.625% Convertible 1.500%…
  46. Investor Presentation – Hornbeck Offshore – slide 46
    HOS Price-Book Ratio Still Below Up-Cycle Average 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. 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 = 2.0% OSV Peer Mean = 0.9% TDW CKH GLF HOS L3M Share Volume 442,453 129,006 244,037…
  48. Investor Presentation – Hornbeck Offshore – slide 48
    Investment Highlights Young One of the youngest fleets in the industry with an average age of seven years Technologically Multi-class Upstream fleet capable of servicing our customers needs from cradle-to-grave Advanced Fleet New gen…
  49. Investor Presentation – Hornbeck Offshore – slide 49
    Todd M. Hornbeck Chairman, President & CEO Investor Presentation James O. Harp, Jr. September 2014 Executive VP & CFO
  50. Investor Presentation – Hornbeck Offshore – slide 50
    Appendix

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