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Investor Presentation – Hornbeck Offshore

Hornbeck Offshore · Feb 1, 2014 · 52 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. February 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 20-Feb-2014) 2 (Daily Trading Volume (000s 400% 6,000 Year Founded Jun 1997 350% Year of IPO Mar 2004 HOS 5,000 300% OSX Market Cap Inception 1m…
  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. 55 Existing New Gen…
  5. Investor Presentation – Hornbeck Offshore – slide 5
    Recent Sale of Downstream Segment Ocean-going Tugs Tank Barges 9 Rebuilt Tugs 9 Double-Hulled Barges Recently closed the August 2013 sale of substantially all of the Downstream segment to Genesis Marine The all-cash transaction…
  6. Investor Presentation – Hornbeck Offshore – slide 6
    Market Diversification Strategy1 By Geographic Area By Service-Offering Military Port Services Middle East Services Other Intl East Coast West Coast Oilfield Latin America 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 2 OSVs Gulf of Mexico (Military) 31 OSVs Europe/ 3 MPSVs Middle East 3 OSVs 1 MPSV…
  8. Investor Presentation – Hornbeck Offshore – slide 8
    Top 5 Operator of New Gen OSVs Worldwide By Location By Competitor (by DWT) (by DWT) HOS Core HOS is 3 Med 1% ANZ 1% Markets = 40% out of 181 Indian Ocean 4% Other 2% of WW Supply companies Middle East 2% South Other America…
  9. Investor Presentation – Hornbeck Offshore – slide 9
    Top Operator of New Gen OSVs in Three Core Markets 2 in U.S. GoM 1 in Mexico 7 in Latin America (by DWT) (by DWT) (by DWT) Aries Marine Adriatic Other 2% Marine 7% POSH Odyssea 3% Seacor Semco Otto Candies 2% Marine 9% 6% Ostensjo…
  10. Investor Presentation – Hornbeck Offshore – slide 10
    Well-Balanced Blue Chip Customer Base 2014E Upstream Revenue 2014E Upstream Revenue By Customer Type By Customer Credit Rating Integrated Oil Companies AA 47% 31% National Oil A Companies 19% 17% Independent AAA E&P 32%…
  11. Investor Presentation – Hornbeck Offshore – slide 11
    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 2013 RIR IADC (U.S. Waters) RIR OMSA RIR Hornbeck…
  12. Investor Presentation – Hornbeck Offshore – slide 12
    Upstream Macro Overview
  13. Investor Presentation – Hornbeck Offshore – slide 13
    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:…
  14. Investor Presentation – Hornbeck Offshore – slide 14
    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…
  15. Investor Presentation – Hornbeck Offshore – slide 15
    Deepwater E&P Demand Drivers Deepwater and ultra-deepwater exploration and production infrastructure Courtesy of: Clarkson Research Services Limited UK (www.crsl.com) 16
  16. Investor Presentation – Hornbeck Offshore – slide 16
    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…
  17. Investor Presentation – Hornbeck Offshore – slide 17
    Rising Deepwater Capex Reflected in Floater Demand Global Floating Rig Demand By Water Depth Newbuild Floaters By Delivery Date 120 100 13 80 7 18 60 27 96 40 20 31 0 2014E 2015E 2016E 2017E After Total 2017E Source: IHS…
  18. Investor Presentation – Hornbeck Offshore – slide 18
    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…
  19. Investor Presentation – Hornbeck Offshore – slide 19
    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…
  20. Investor Presentation – Hornbeck Offshore – slide 20
    GoM: Post-Macondo Short Squeeze Now Underway Floating Rig Demand Expected to Increase Actively Drilling Rigs Increasing 60 45 Exploration 50 40 Devlopment 35 40 30 No. of rigs 30 25 20 20 15 10 10 5 0 - Jan Jul…
  21. Investor Presentation – Hornbeck Offshore – slide 21
    Brazil: Long-Term Deepwater Up-Cycle Brazil Floating Rig Demand Projected Supply Vessels Needed in Brazil Brazil floating rig demand per water depth 100 500 90 WD7500 f 414 80…
  22. Investor Presentation – Hornbeck Offshore – slide 22
    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…
  23. Investor Presentation – Hornbeck Offshore – slide 23
    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…
  24. Investor Presentation – Hornbeck Offshore – slide 24
    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…
  25. Investor Presentation – Hornbeck Offshore – slide 25
    Project Spartan OSV Newbuild Program 5
  26. Investor Presentation – Hornbeck Offshore – slide 26
    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…
  27. Investor Presentation – Hornbeck Offshore – slide 27
    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 59 Existing 280 3,500 5,000 18 Pending 300 Over…
  28. Investor Presentation – Hornbeck Offshore – slide 28
    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…
  29. Investor Presentation – Hornbeck Offshore – slide 29
    300 Class OSV Newbuild Program In Progress The HOS Red Dawn on sea trials, The HOS Commander, the first HOSMAX 300 Class OSV the first HOSMAX 320 Class OSV Four HOSMAX 300 class OSVs and two HOSMAX 320 class OSVs have been…
  30. Investor Presentation – Hornbeck Offshore – slide 30
    200 Class OSV Retrofit Program Completed The HOS Coquille and HOS Bourre The back deck of the HOS Bourre re-delivered as high-spec OSVs in mid-November with mid-body insert installed Six S200 Class DP-1 OSVs have been upgraded…
  31. Investor Presentation – Hornbeck Offshore – slide 31
    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…
  32. Investor Presentation – Hornbeck Offshore – slide 32
    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…
  33. Investor Presentation – Hornbeck Offshore – slide 33
    Strategic Newbuild Program: 310 Class MPSVs HOS 200 Class OSV HOS recently 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…
  34. Investor Presentation – Hornbeck Offshore – slide 34
    310 class DP2 MPSVs 35
  35. Investor Presentation – Hornbeck Offshore – slide 35
    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…
  36. Investor Presentation – Hornbeck Offshore – slide 36
    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) Otto Tidewater Edison Harvey Gulf Candies 5% Chouest Harvey Gulf 12% 9% 12% Tidewater Aries 14%…
  37. Investor Presentation – Hornbeck Offshore – slide 37
    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…
  38. Investor Presentation – Hornbeck Offshore – slide 38
    Financial Highlights
  39. Investor Presentation – Hornbeck Offshore – slide 39
    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…
  40. Investor Presentation – Hornbeck Offshore – slide 40
    Industry Leading OSV Margins Gross Margin 14-year Average 80.0% HOS OSVs = 63% 70.0% Hornbeck OSVs OSV Peers = 42% 60.0% 50.0% 2013 YTD 40.0% HOS OSVs = 56% 30.0% OSV Peers = 40% OSV Peer Group HOS Operating Margin 60.0%…
  41. Investor Presentation – Hornbeck Offshore – slide 41
    HOS vs. Public Domestic OSV Peers Dayrates Utilization 30,000 100% Pre-Macondo Avg Average Dayrate 92% 26,000 90% Effective Dayrate 13-yr Average 22,000 80% Hornbeck 18,000 13-yr Effective 70% Hornbeck 14,000 60% 13-yr Average…
  42. Investor Presentation – Hornbeck Offshore – slide 42
    Compounded Reinvestment of Free Cash Flow 1.2 billion in 1.3 billion in growth 2016E 700.0m growth capex and other capex to be invested from invested from 2011 to 490 21 600.0m 2007 to 2010 2016 2 396 460 500.0m 491 423…
  43. Investor Presentation – Hornbeck Offshore – slide 43
    300 Class OSV Deliveries Will Drive Earnings Power 2012 2013 2014 2015 Current Fleet 2013 Deliveries SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS 2014 Deliveries…
  44. Investor Presentation – Hornbeck Offshore – slide 44
    Pro Forma Run-Rate EBITDA Illustration 800 700 700 600 530 340 500 400 255 568 360 398 300 175 228 200 360 275 100 185 - Low Case Mid Case High Case Current Fleet OSV Newbuild Program 5 Cash Paid For Taxes Debt…
  45. Investor Presentation – Hornbeck Offshore – slide 45
    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%…
  46. Investor Presentation – Hornbeck Offshore – slide 46
    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%…
  47. Investor Presentation – Hornbeck Offshore – slide 47
    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…
  48. Investor Presentation – Hornbeck Offshore – slide 48
    Relative Trading Volume L3M Trading Volume (shares) to Floating Market Cap Ratio 1.6% 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% TDW CKH GLF HOS HOS = 1.5% OSV Peer Mean = 0.9% TDW CKH GLF HOS L3M Share Volume 550,244…
  49. Investor Presentation – Hornbeck Offshore – slide 49
    Investment Highlights Young One of the youngest fleets in the industry with an average age of eight years Technologically Multi-class Upstream fleet capable of servicing our customers needs from cradle-to-grave Advanced Fleet New gen…
  50. Investor Presentation – Hornbeck Offshore – slide 50
    Todd M. Hornbeck Chairman, President & CEO Investor Presentation James O. Harp, Jr. February 2014 Executive VP & CFO
  51. Investor Presentation – Hornbeck Offshore – slide 51
    Appendix
  52. Investor Presentation – Hornbeck Offshore – slide 52
    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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