BARCLAYS SELECT SERIES 2014 March 11, 2014 Houston, TX M. Kevin McEvoy President & CEO Oceaneering International, Inc. Safe Harbor Statement
WHY OII Leveraged e e aged to Deepwater eep ate aand d Subsea Co Completions p et o s Secular Growth Leading Market Positions ROVs and Specialty Subsea Products Good Project Execution Excellent Earnings, Liquidity and Cash…
Leveraged to Deepwater Projects ojects Take a e Years ea s to Develop e e op Largely Oil Reservoirs With High g Production Flow Rates Well Capitalized p Customer Base Investment Based on Long-Term Long Term Commodity…
Leading Market Position Remotely Operated Vehicles Ownership Drill Support Market Share OII - 304 OII 160 35% 57% Worldwide Fleet 282 Floating Rigs Contracted** 877 Vehicles* Source: OII Estimates - * December 2013; IHS…
Leading Market Position Specialty Subsea Products Umbilicals Tooling & Subsea Work Systems Installation and Workover Control Systems Subsea Hardware
Earnings Per Share Guidance 2014 Estimate 3.90 3 90 - 4.10 4 10 Actual Low Estimate High Estimate 4.50 4.00 3.50 Earnings per Share 3.00 2 50 2.50 2.00 1.50 E 1.00 0.50 0.00 2008 2009 2010 2011 2012 2013…
Combined EPS OSX Companies Excluding OII Actual Consensus Estimate 80 60 Earnings per Share 40 E 20 0 2008 2009 2010 2011 2012 2013 2014E Based on First Call Actuals and Mean Estimates as of February 28, 2014
Relative EPS Performance To Recent 2008 OSX Peak OII OSX w/o OII 150% 100% 50% 0% -50% 2008 2009 2010 2011 2012 2013 2014E Based on First Call Actuals and Mean Estimates as of February 28, 2014
EPS Guidance Oilfield Business Segment Outlook SEGMENT OPERATING INCOME 2014 ROV 2013 Subsea Products 2013 Subsea Projects 2013 Asset Integrity 2013
Excellent Cash Flow & Liquidity EBITDA of 850 MM to 890 MM Expected p in 2014 746 MM in 2013 Ample Resources to Invest in Growth At December 31, 2013: 91 MM Cash No Debt 2.0 2 0 B Equity EBITDA Reconciliation to Net…
Long-Term Deepwater Outlook Largest g Source of Future Oil Supply pp y Growth Exploration Success Bodes Well for the Future Drilling Intensity is Rising Source: ExxonMobil, Deutsche Bank, and Morgan Stanley and Rystad Energy
Worldwide Deepwater Capex Forecast to More Than Double in billions DW Capex in Billions 300 250 260 200 150 100 113 50 0 2009-2013 2014-2018 Source: Douglas-Westwood, January 2014
5-Year OII Outlook Global Demand Growth Deepwater Drilling Field Development Inspection, Maintenance, and Repair (IMR)
Floating Rig Demand 400 ng Rigs 350 90% Increase d Contracted Floatin In Demand Since 2003 300 282 250 200 Year-End 147 150 100 at End of 2013: 314 Rigs in Fleet, 90% Fleet Utilization. Source:…
Floating Rig Demand With 5 5-Year Year Projection, Projection Assuming 90% Rig Fleet Utilization Up 85 U 400 30% Growth ng Rigs 350 d Contracted Floatin 370 282 300 250 200 Year-End 150 100 at End of…
Floating Rig Demand With 5 5-Year Year Projection, Projection Assuming 50 Rigs Retired Up 40 U 400 15% Growth ng Rigs Assuming 10 Older Rigs Per Year 350 g Fleet are Retired and 90% Rig d Contracted Floatin…
Floating Rig Demand 5 Year Averages 5-Year Up 70 400 Assuming 10 Older Rigs Per Year 28% Growth ng Rigs are Retired and 90% Rig Fleet 350 Utilization 303 320 d Contracted Floatin 300 250 250 185 200 Year-End…
Outlook for ROV Demand on Vessels 3.5 g Rig 2.9 30 3.0 er Floating 2.5 2.5 Global ROVs pe 2.0 1.5 1.0 Year End Source: Oceaneering Estimates and IHS-Petrodata
Offshore Construction Backlog Saipem Technip, Saipem, Technip and S Subsea bsea 7 in billions 30 25 20 15 10 5 0 Source: Morgan Stanley Estimates and Company Filings
Subsea Tree Orders Forecast at Historically High Levels 800 700 600 500 400 300 200 100 Source: Quest Offshore Resources Mean Case Forecast, February 2014
Subsea Installations Excluding Brazil Forecast at Historicall Historically High Levels Le els 600 55% Growth 500 370 allations 400 265 235 Insta 300 200 100 0 Source: Quest Offshore Resources Mean Case…
Subsea Completions In Service, Excl BRZ vs Subsea Products Operating Income (SSP Op Inc) vs. Annual SSP Op Inc in millions 4000 250 200 3000 150 2000 100 1000 50 0 0 SS Completions SSP Op Inc Source: Quest Offshore…
Subsea Completions In Service, Excl BRZ Forecast at Historically High Levels Up 1000 30% Growth 5000 4000 3000 2000 1000 0 Source: Quest Offshore Resources & OII SEC Filings, February 2014
5-Year Deepwater Outlook What To Expect Along The Way Some Project Approvals May Continue Moving to the Right Approved Projects Cost C t Overruns O Production Start-Up Delays Technical Challenges Sheer Volume of Projects…
OII Summary Diversified OFS Company Leading Market Positions in Technical Niches Leveraged to Deepwater and Subsea Completions Excellent Earnings Earnings, Liquidity and Cash Flow
Supplemental pp Financial Information
EBITDA in millions Actual Low Estimate High Estimate 1,000 900 800 700 600 500 400 300 200 100 0 2008 2009 2010 2011 2012 2013 2014E* *2014 - 850MM - 890MM Based on OII EPS Guidance as of February 18, 2014 See Next Slide…
EBITDA Reconciliation to Net Income Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP financial measurement. Oceaneerings management uses EBITDA because we believe that this measurement is a widely…
OII Balance Sheet (in millions) Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, 2008 2009 2010 2011 2012 2013 Equity 968 1,224 1,390 1,558 1,815 2,043 Debt 229 120 0 120 94 0 Cash 11 162 245 106 121 91 Debt/Cap 19% 9% 0% 7% 5%…
Business Segments Revenue Operating Income 9% 4% 8% 15% 30% 14% 41% 15% 31% 33% ROV Subsea Products Subsea Projects Asset Integrity Adtech YTD December 2013
OII ROV Fleet Geographic Profile - December 2013 33 81 GOM 33 Africa Norway 36 Brazil Asia/Pac 68 Other 53 304 Vehicles
Oilfield ROV Drill Support Market December 2013 OII Subsea 7 57% Fugro Sonsub Other Oth 282 Contracted Floating Rigs Source: IHS-Petrodata and OII Estimates
OII ROVs on Vessels Locations 15 GOM 23 Africa Norway 15 Other 19 72 Vehicles December 2013
OII ROVs on Vessels Customers Operators Contractors 32 40 72 Vehicles December 2013
OII ROV Fleet Size 325 304 End 260 at Period E 195 e Count a 130 125 Vehicle 65 0 December 31, 2013
ROV Pricing and Fleet Utilization Revenue / Day on Hire Fleet Utilization 11,000 100% 9 000 9,000 90% 7,000 80% 5,000 70% 3,000 60% 1,000 50% YTD December 2013
High-Spec, Non-PBR Brazil Rig Fleet 109 Existing Rigs Under Contract OII ROV Contracts on 80% 73 Rigs On Order Visibility of Significant Rig Fleet Growth OII Expects to Continue as Dominant ROV Provider OII ROV Contracts C t t…
Subsea Products Backlog At Period End in millions 1,000 800 600 400 200 0 2008 2009 2010 2011 2012 2013 December 2013
Subsea Tree Orders 5 Year Averages 5-Year Up 235 60% G Growth th 800 700 630 600 500 430 395 400 300 200 100 Source: Quest Offshore Resources Mean Case Forecast, February 2014
Subsea Tree Orders Excl BRZ 5 Year A 5-Year Averages erages 70% Growth 500 455 355 400 Tree Orders 300 265 200 100 0 Source: Quest Offshore Resources Mean Case Forecast, February 2014
Subsea Tree Installations 5 Year Averages 5-Year Up 195 65% 6 %GGrowth h 700 600 490 500 400 305 295 300 200 100 Source: Quest Offshore Resources Mean Case Forecast, February 2014
Subsea Completions In Service vs Subsea Products Operating Income (SSP Op Inc) vs. Annual SSP Op Inc in millions 5000 250 4000 200 3000 150 2000 100 1000 50 0 0 SS Completions SSP Op Inc Source: Quest Offshore…
Subsea Completions In Service Forecast at Historically High Levels Up 1500 35% Growth 6000 5000 4000 3000 2000 1000 0 Source: Quest Offshore Resources & OII SEC Filings, February 2014
OIE Products Production Control Valves Tooling & Work Packages Installation Workover & Control Systems Connectors & Repair Systems Field Development Hardware
Annual Price Performance OII vs. vs OSX (Oilfield Service Index) 2014 OII down 9% OSX flat OII OSX 125% 75% 25% -25% -75% *Through February 28, 2014: Based on Previous Year-End Purchases
Cumulative Price Performance OII vs. vs OSX (Oilfield Service Index) 2014 OII down 9% OSX flat OII OSX 1000% 850% 700% 550% 400% 250% 100% -50% *Through February 28, 2014: Based on Previous Year-End Purchases
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