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Investor Presentation – Hornbeck Offshore

Hornbeck Offshore · Feb 23, 2015 · 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. Investor Presentation – Hornbeck Offshore – slide 1
    Todd M. Hornbeck Chairman, President & CEO Investor Presentation James O. Harp, Jr. February 2015 Executive VP & CFO
  2. Investor Presentation – Hornbeck Offshore – slide 2
    Company Profile Financial Highlights Relative Stock Price Performance (IPO to 19-Feb-2015) 3 Daily Trading Volume (000s) Year Founded Jun 1997 400% 6,000 HOS Year of IPO Mar 2004 350% 5,000 300% Market Cap Inception 1m Russell…
  3. Investor Presentation – Hornbeck Offshore – slide 3
    Investment Considerations 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…
  4. Investor Presentation – Hornbeck Offshore – slide 4
    Financial Highlights
  5. Investor Presentation – Hornbeck Offshore – slide 5
    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 14 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 OSV Barge…
  6. Investor Presentation – Hornbeck Offshore – slide 6
    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% 2014 40.0% HOS OSVs = 53% 30.0% OSV Peers = 41% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009…
  7. Investor Presentation – Hornbeck Offshore – slide 7
    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 Average…
  8. Investor Presentation – Hornbeck Offshore – slide 8
    Compounded Reinvestment of Free Cash Flow 700.0m 1.2 billion in 1.3 billion in growth growth capex and other capex to be 600.0m invested from invested from 2011 to 490 2007 to 2010 2016 1 460 500.0m 423 316 400.0m 340 199…
  9. Investor Presentation – Hornbeck Offshore – slide 9
    300 Class OSV Deliveries Will Drive Earnings Power 2012 2013 2014 2015 Current Fleet 2013 Deliveries SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS 2014 Deliveries…
  10. Investor Presentation – Hornbeck Offshore – slide 10
    Historical Average Dayrate per Deadweight Ton (DWT) Low-Spec Vessel Avg Dayrate per DWT High-Spec Vessel Avg Dayrate per DWT Since 2007, HOS low-spec average dayrates per DWT have ranged between 6 and 10, with an average of 8 This…
  11. Investor Presentation – Hornbeck Offshore – slide 11
    Pro Forma Run-Rate EBITDA Illustration Implied Cash EPS: Implied 15.49 Cash EPS: 9.96 Implied Cash EPS: 4.85 Low Case Mid Case High Case Notes: These pro forma scenarios are solely intended to illustrate the hypothetical…
  12. Investor Presentation – Hornbeck Offshore – slide 12
    Highly Attractive Multiples of Cash EPS with Upside 18 Significant Macondo Implied Upside to 16 incident and Multiple of Multiple of Cash 15.49 resulting Cash EPS of EPS…
  13. Investor Presentation – Hornbeck Offshore – slide 13
    Long-Term 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…
  14. Investor Presentation – Hornbeck Offshore – slide 14
    No Maturities of Funded Debt until 2019 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%…
  15. Investor Presentation – Hornbeck Offshore – slide 15
    Strong Asset Coverage to Net Debt 4,000 3,500 3.8x 3,353 3,000 3.2x 2,839 2,500 2.8x 2,459 2,000 1,500 1,000 888 Net Debt 4 500 0 Replacement Cost 1 Fair Market Value 2 Net Book Value 3 1 Represents current internal…
  16. Investor Presentation – Hornbeck Offshore – slide 16
    Current TEV Substantially Below Intrinsic Vessel Values Average Values per Vessel 170.0m 160.0m 150.0m 140.0m 130.0m 120.0m 110.0m 100.0m 90.0m 80.0m 70.0m 60.0m 50.0m 40.0m 30.0m 20.0m 10.0m 0.0m 5 5 Low Spec High…
  17. Investor Presentation – Hornbeck Offshore – slide 17
    HOS Price-Book Ratio Well Below NBV per Share 3,000 500% Net Debt Market Cap Price to-Book Ratio 2,500 400% 2,000 300% 4-Yr Avg, 224% 1,500 200% Hist Avg, 151% 1,000 100% 500 Current, 55% - 0% Since 2004, the HOS…
  18. Investor Presentation – Hornbeck Offshore – slide 18
    Relative Trading Volume L3M Trading Volume (shares) to Floating Market Cap Ratio 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% TDW CKH GLF HOS HOS = 3.7% OSV Peer Mean = 2.0% TDW CKH GLF HOS L3M Share Volume 1,083,500…
  19. Investor Presentation – Hornbeck Offshore – slide 19
    Company Overview 20
  20. Investor Presentation – Hornbeck Offshore – slide 20
    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. 59 Existing New Gen…
  21. Investor Presentation – Hornbeck Offshore – slide 21
    Pending Sale of Military Vessels Recently announced agreement to sell four 250EDF class OSVs currently chartered to the U.S. Navy These vessels have supported the U.S. submarine fleet on the east and west coast of the U.S. since…
  22. Investor Presentation – Hornbeck Offshore – slide 22
    Market Diversification Strategy1 By Geographic Area By Service-Offering Military Service Port Services Other Intl Contract East Coast West Coast Latin America Oilfield Specialty GoM Oilfield Supply 5 Geographic Markets…
  23. Investor Presentation – Hornbeck Offshore – slide 23
    Our Core Markets: GoM, Mexico and Brazil Non-Oilfield service West Coast Oilfield service 2 OSVs Company locations Gulf of Mexico Europe/ 25 OSVs Caribbean Middle East 3 MPSVs 2 OSVs 1 OSV 1 MPSV Mexico 13 OSVs…
  24. Investor Presentation – Hornbeck Offshore – slide 24
    Top 3 Operator of New Gen OSVs Worldwide By Location By Competitor (by DWT) (by DWT) HOS is 3 HOS Core out of 191 Markets = 39% Med 2% companies ANZ 2% of WW Supply Indian Ocean Other 2% 4% Middle East 2% South Other…
  25. Investor Presentation – Hornbeck Offshore – slide 25
    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) Siem Laborde Offshore Seacor Marine GulfMark Marine…
  26. Investor Presentation – Hornbeck Offshore – slide 26
    Top 2 Operator of Ultra Hi-Spec OSVs WW 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 GulfMark Harvey Gulf…
  27. Investor Presentation – Hornbeck Offshore – slide 27
    Well-Balanced Blue Chip Customer Base 2015E Upstream Revenue 2015E Upstream Revenue By Customer Type By Customer Credit Rating Integrated Oil AA Companies 30% 52% A National Oil 24% Companies AAA 16% Oilfield 28% U.S.…
  28. Investor Presentation – Hornbeck Offshore – slide 28
    Safety Record Outperforms Industry Benchmarks Recordable Incident Rates (RIR) 3 12,000,000 2.5 10,000,000 2 8,000,000 1.5 6,000,000 1 4,000,000 0.5 2,000,000 0 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010…
  29. Investor Presentation – Hornbeck Offshore – slide 29
    Upstream Macro Overview
  30. Investor Presentation – Hornbeck Offshore – slide 30
    Depletion Curve to Drive the Drill Bit 140,000 120,000 100,000 Replacement Need Mbbl per day 80,000 60,000 40,000 20,000 Existing Supply 0 2013 2016 2019 2022 2025 2028 2031 2034 2037 2040 Source: IEO 2014,…
  31. Investor Presentation – Hornbeck Offshore – slide 31
    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…
  32. Investor Presentation – Hornbeck Offshore – slide 32
    Deepwater E&P Demand Drivers Deepwater and ultra-deepwater exploration and production infrastructure Courtesy of: Clarkson Research Services Limited UK (www.crsl.com) 33
  33. Investor Presentation – Hornbeck Offshore – slide 33
    Newbuild Floaters Built for Ultra-Deepwater Drilling Newbuild Floaters By Delivery Date Floating Rig Fleet by Rated Water Depth 100 90 6 80 9 70 20 60 50 22 89 40 30 20 32 10 0 2015E 2016E 2017E 2018E After Total 2018E…
  34. Investor Presentation – Hornbeck Offshore – slide 34
    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…
  35. Investor Presentation – Hornbeck Offshore – slide 35
    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…
  36. Investor Presentation – Hornbeck Offshore – slide 36
    Mexico Overview
  37. Investor Presentation – Hornbeck Offshore – slide 37
    Mexico Energy Reform Passage of Constitutional Passage of Secondary Round Zero, Joint Ventures, Regulatory Round One Tenders and Pemex Joint Reform Legislation Organizations Ventures Aug 2013-Dec 2013 Apr 2014-Aug 2014…
  38. Investor Presentation – Hornbeck Offshore – slide 38
    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…
  39. Investor Presentation – Hornbeck Offshore – slide 39
    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…
  40. Investor Presentation – Hornbeck Offshore – slide 40
    Top Operator of New Gen OSVs in Mexico 1 New Gen OSV Operator in Mexico (Pro Forma by DWT) Otto Candies POSH 5% Seacor Semco 4% Cotemar Marine 10% 4% Naviera 3% Aries Oceanografia Marine 9% 3% Other 19% Tidewater 12% Bourbon…
  41. Investor Presentation – Hornbeck Offshore – slide 41
    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…
  42. Investor Presentation – Hornbeck Offshore – slide 42
    Project Spartan OSV Newbuild Program 5
  43. Investor Presentation – Hornbeck Offshore – slide 43
    Here We Grow Again Pro Forma 2016 Fleet1 2010 Fleet 39% 5% 2005 Fleet 39% 2000 Fleet 7% 23% 21% 37% 30% 11% 50% 3% 20% 100%…
  44. Investor Presentation – Hornbeck Offshore – slide 44
    Multi-Class Upstream Fleet Profile Newbuilds Note: Legend OSV Class DWT Acquisitions Conventional Under 1,500 Current Newbuilds 200 (Low-Spec) 1,500 2,500 Upstream Fleet 240/280 (High-Spec) 2,500 5,000 64 Existing 300 (Ultra…
  45. Investor Presentation – Hornbeck Offshore – slide 45
    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…
  46. Investor Presentation – Hornbeck Offshore – slide 46
    Strategic Newbuild Program: 300 Class MPSVs HOS 200 Class OSV HOS constructing five Jones Act-qualified HOSMAX 310 Class DP-2 MPSVs Announced plans to convert one 300 class OSV previously delivered into a 300 class flotel…
  47. Investor Presentation – Hornbeck Offshore – slide 47
    300 class DP2 MPSVs 48
  48. Investor Presentation – Hornbeck Offshore – slide 48
    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…
  49. Investor Presentation – Hornbeck Offshore – slide 49
    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…
  50. Investor Presentation – Hornbeck Offshore – slide 50
    Todd M. Hornbeck Chairman, President & CEO Investor Presentation James O. Harp, Jr. February 2015 Executive VP & CFO
  51. Investor Presentation – Hornbeck Offshore – slide 51
    Appendix

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