Marvin J. Migura S i Vi Senior Vice P President id t UBS Global Oil and Gas Conference May 24, 24 2016 Austin, TX
Why OII Global Provider of Diversified Services and Products in All Phases off the h Off Offshore h Oilfield Oilfi ld Life Lif CCycle l Strong Balance Sheet and Cash Flow Continue to Maintain or Grow Our Market Positions…
About Oceaneering Five Operating Segments ROV Subsea Products Subsea Projects Asset Integrity Advanced Ad dTTechnologies h l i 4
About OII In All Phases of Offshore Oilfield Life Cycle PHASE EXPLORATION DEVELOPMENT PRODUCTION DECOMMISSIONING % OII Revenue 10% 50% 35% 5% 1 Market of Operating Subsea Tree Subsea Trees of Field Driver e g Drilling Floating g…
Largest Exposure is in Field Development R Revenue Mi Mix 5% 10% 35% 50% Exploration Development Production Decommissioning Source: OII Estimates: 2015 6
Oceaneering ROV Fleet Size 318 ROV ROVs as off M March h 2016 350 336 318 315 Vehicle Count at Perriod End 300 250 200 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 9
Floating Rig Demand History O Oceaneering i 57% %MMarket k ShShare as off March M h 31, 31 2016 Floaters Contracted % with OII ROVs 300 100% Period End 250 75% with OII ROVs 200 Conttracted Floating Rigs at P 150…
Oceaneering ROV Pricing and Fleet Utilization 6% Fl 56% Fleet U ili i as off M Utilization h 2016 March Revenue / Day on Hire Fleet Utilization 11,000 100% 10,000 90% 9,000 80% Hire 8,000 Fleet Utilization 70% ue / Day…
32% SUBSEA PRODUCTS Revenue Contribution Q1 2016 Umbilicals Tooling & Subsea Work Systems IInstallation t ll ti and d Workover Control Systems Subsea Hardware 12
Subsea Products Required for Every Subsea Completion Product Line Categories Service Technology and Rentals IWOCS and Tooling Subsea Distribution Umbilicals and Field Development Hardware Connections Grayloc y Connectors and…
Subsea Installations Forecast Tree Installations SSProducts Revenue 500 1,500 D in Millions 400 1,200 Revenue, USD ns Tree Installation 300 900 200 00 600 SSProducts R 100 300 S 0 0 2011 2012 2013 2014…
Subsea Products Backlog A P At Period i dEEnd d 1,000 800 SD in Million 600 400 00 US 200 0 2008 2009 2010 2011 2012 2013 2014 2015 2016* * March 2016 15
Subsea Projects Overview Assets Available for f this Market GOM Shallow Water Installation and IRM 4 Oceaneering Vessels, Diving Support 3 Saturation Diving Systems Deepwater Installation and IRM 6 Chartered Vessels, DP 2…
Leveraged to Deepwater Projects Take Years to Develop Largely Oil Reservoirs with High Production Flow Rates Well Capitalized Customer Base 50% 50% Revenue from E&P Majors in Prior 3 Years Investment Based on Long-Term…
Long Term: Offshore is Essential D Deepwater R Remains i SiSignificant ifi Incremental Bbls Existing Fields Bbls 90 Source of Additional 26Mm B/D Crude Production 80 d Condensate e 70 32% MB/D MM 60 68% Crude…
Expect Extended Declines from Producing Fields New Production from New Fields Decline from Aging Fields 4.0 3.5 3.0 Day Barrels Per D 2.5 2.0 Million B 15 1.5 1.0 0.5 0.0 2014 2015 2016 2017 2018 Inverting…
Strong Balance Sheet and Liquidity C i lS Capital Sources and d All Allocations i Liquidity (at end of First Quarter 2016) o 371 Million of Cash o 500 Million Undrawn Revolving Credit Facility, Expiring October 2020 o Only 19…
Free Cash Flow (Through the Cycle) (USD in i millions, illi except ffor E Earnings i per Sh Share amounts)) Free Cash Flow (FCF) is a non-GAAP financial measurement. FCF represents cash flow provided by operating activities less…
2016 Free Cash Flow Illustration 1.00 EPS (USD in i millions) illi ) 2016 Net Income 100 Cash Flow Provided by Operating Activities 340 Purchases of Property and Equipment (150) Free Cash Flow 190 23
2016 Outlook Shaping Up to be a Challenging Year Aligning our Operations with Current Activity Forecasting Declines in Each Oilfield Segment, Most Notably: o ROV, Outlook Remains Cloudy o Subsea Products, Margins to Weaken…
Conclusion Longer Term, Deepwater is Still Critical to Reserve Replenishment Global Provider in All Phases of Offshore Oilfield Life Cycle, with a Deepwater p Focus Further Differentiate with Integrated Solutions Strong…
Earnings Per Share 2016 Q1 - 0.26; 0 26 201 2015 - 2.34 2 34 5.00 4.00 arnings per Share 3.00 2.00 Ea 1.00 0.00 2008 2009 2010 2011 2012 2013 2014 2015 2016* * First Quarter 2016 27
EBITDA 1,000 750 SD in Millions s 500 US 250 0 2008 2009 2010 2011 2012 2013 2014 2015 2016* * First Quarter 2016 28
EBITDA Reconciliation to Net Income (USD in i millions) illi ) Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP financial measurement. Oceaneerings management uses EBITDA because we believe that this…
Oceaneering ROV Leading Market Position R Remotely l OOperated dVVehicles hi l Ownership Drill Support Market Share 315 31% 110 57% OII Subsea 7 Fugro DOF Subsea C-Innovations Helix Saipem TMT Technip Harkand IKM…
Oceaneering ROV Fleet G Geographic hi PProfile fil March M h 2016 36 30 103 25 52 72 GOM Africa Norway Brazil Asia/Pac Other 318 Vehicles 32
Oceaneering ROVs on Vessels M h 2016 March Locations Customers 12 24 18 45 37 28 GOM Africa Norway Other Operators Contractors 82 Vehicles 33
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