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STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International

Oceaneering International · Nov 12, 2013 · 47 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. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 1
    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…
  2. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 2
    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…
  3. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 3
    Leading Market Position Remotely Operated Vehicles Ownership Drill Support Market Share OII 289 OII 163 36% 59% Worldwide Fleet 278 Floating Rigs Contracted** 803 Vehicles* Source: OII Estimates - * December 2012, **…
  4. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 4
    Leading Market Position Specialty Subsea Products Umbilicals Tooling & Subsea Work Systems Installation and Workover Control Systems Subsea Hardware
  5. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 5
    Earnings Per Share Guidance 2013 Estimate 3.35 3 35 - 3.40; 3 40; 2014 Estimate 3 3.90 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…
  6. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 6
    Combined EPS OSX Companies Excluding OII Actual Consensus Estimate 80 60 Earnings per Share 40 E 20 0 2008 2009 2010 2011 2012 2013E 2014E Based on First Call Actuals and Mean Estimates as of October 31, 2013
  7. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 7
    Relative EPS Performance To Recent 2008 OSX Peak OII OSX w/o OII 150% 100% 50% 0% -50% 2008 2009 2010 2011 2012 2013E 2014E Based on First Call Actuals and Mean Estimates as of October 31, 2013
  8. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 8
    EPS Guidance Oilfield Business Segment Outlook SEGMENT OPERATING INCOME 2013 2014 ROV 2012 2013 Subsea Products 2012 2013 Subsea Projects 2012 2013 Asset Integrity 2012 2013
  9. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 9
    Excellent Cash Flow & Liquidity EBITDA of 735 MM to 745 MM Expected p in 2013 601 MM in 2012 EBITDA of 845 MM to 880 MM Expected in 2014 Ample p Resources to Invest in Growth At September 30, 2013: 102 MM Cash 40 MM Debt…
  10. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 10
    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
  11. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 11
    Worldwide Deepwater Capex Forecast to Double in billions DW Capex in Billions 250 200 223 150 100 112 50 0 2008-2012 2013-2017 Source: Douglas-Westwood February 2013
  12. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 12
    5-Year OII Outlook Global Demand Growth Deepwater Drilling Field Development Inspection, Maintenance, and Repair (IMR)
  13. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 13
    Floating Rig Demand 300 ng Rigs 271 d Contracted Floatin 250 85% IIncrease In Demand Since 2003 200 Year-End 150 147 100 End of 2012: 301 Rigs in Fleet, 90% Fleet Utilization. Source: IHS-Petrodata at…
  14. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 14
    Floating Rig Demand With 5 5-Year Year Projection, Projection Assuming 90% Rig Fleet Utilization 400 Up 90 ng Rigs 33% Growth 350 d Contracted Floatin 360 300 250 271 200 Year-End 150 100 Source:…
  15. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 15
    Floating Rig Demand 5 Year Averages 5-Year Up 95 40% G Growth th 400 ng Rigs 330 350 d Contracted Floatin 300 235 250 175 200 Year-End 150 100 Source: IHS-Petrodata and OII Estimates at September 30, 2013
  16. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 16
    Outlook for ROV Demand on Vessels 3.5 3.0 g Rig 3.0 24 2.4 er Floating 2.5 2.0 Global ROVs pe 1.5 10 1.0 0.5 0.0 Year End Source: Oceaneering Estimates and IHS-Petrodata
  17. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 17
    Outlook for Global ROV Demand To Meet Visible Requirements Total Demand 270 Additional Vehicles More than 35% Growth OII Expects 95 100 Vehicles of Total Demand 55 to 60 to Support Drilling by the End of 2017 Source:…
  18. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 18
    Subsea Hardware Capex Forecast in billions SS Hardware Capex 150 125 124 100 75 50 62 25 0 2008-2012 2013-2017 Source: Douglas-Westwood April 2013
  19. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 19
    Deepwater Fields Backlog Undeveloped Discoveries Fields 600m fsw 600 500 400 300 200 100 0 Source: IHS Petrodata
  20. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 20
    Offshore Construction Backlog Saipem Technip, Saipem, Technip and S Subsea bsea 7 in billions 30 25 20 15 10 5 0 Source: Morgan Stanley and Company Filings, June 2013
  21. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 21
    Subsea Tree Orders Forecast at Historically High Levels 800 700 600 500 400 300 200 100 Source: Quest Offshore Resources Mean Case Forecast, August 2013
  22. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 22
    Subsea Tree Orders 5 Year Averages 5-Year Up 230 60% G Growth th 800 700 600 600 390 370 500 400 300 200 100 Source: Quest Offshore Resources Mean Case Forecast, August 2013
  23. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 23
    Subsea Tree Installations 5 Year Averages 5-Year 700 Up 140 600 5% G 45% Growth o t 500 440 400 300 300 300 200 100 Source: Quest Offshore Resources Mean Case Forecast, August 2013
  24. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 24
    Subsea Completions In Service vs Subsea Products Operating Income (SSP Op Inc) vs. Annual SSP Op Inc in millions 5000 200 4000 150 3000 100 2000 50 1000 0 0 SS Completions SSP Op Inc Source: Quest Offshore Resources…
  25. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 25
    Subsea Completions In Service Forecast at Historically High Levels Up 1370 35% Growth 6000 5000 4000 3000 2000 1000 0 Source: Quest Offshore Resources Mean Case Forecast, August 2013
  26. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 26
    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…
  27. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 27
    OII Summary Diversified OFS Company Leading Market Positions in Technical Niches Leveraged to Deepwater and Subsea Completions Excellent Earnings Earnings, Liquidity and Cash Flow
  28. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 28
  29. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 29
    Supplemental pp Financial Information
  30. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 30
    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 2013E* 2014E* *2013 - 735MM - 745MM; 745MM *2014 - 845MM - 880MM Based on OII 2013 EPS Guidance as…
  31. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 31
    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…
  32. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 32
    OII Balance Sheet (in millions) Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Sep 30, 2008 2009 2010 2011 2012 2013 Equity 968 1,224 1,390 1,558 1,815 1,978 Debt 229 120 0 120 94 40 Cash 11 162 245 106 121 102 Debt/Cap 19% 9% 0% 7%…
  33. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 33
    Business Segments Revenue Operating Income 9% 5% 9% 41% 30% 15% 13% 15% 31% 32% ROV Subsea Products Subsea Projects Asset Integrity Adtech YTD September 2013
  34. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 34
    Supplemental pp Market Information
  35. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 35
    Oilfield ROV Fleet Ownership Profile - December 2012 36% OII OII 289 Subsea 7 Sonsub Fugro Canyon Technip C-Innovations DOF Subsea Other 803 Vehicles Source: OII Estimates
  36. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 36
    OII ROV Fleet Geographic Profile - September 2013 40 76 GOM 33 Africa Norway 35 Brazil 64 A i /P Asia/Pac Other 54 302 Vehicles
  37. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 37
    Oilfield ROV Drill Support Market September 2013 OII Subsea 7 Fugro 59% % Sonsub Other Oth 278 Contracted Floating Rigs Source: IHS-Petrodata and OII Estimates
  38. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 38
    OII ROVs on Vessels Locations 19 GOM 22 Africa Norway Other 17 15 73 Vehicles September 2013
  39. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 39
    OII ROVs on Vessels Customers Operators 36 Contractors 37 73 Vehicles September 2013
  40. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 40
    OII ROV Fleet Size 325 302 End 260 at Period E 195 e Count a 130 125 Vehicle 65 0 September 30, 2013
  41. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 41
    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 September 2013
  42. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 42
    High-Spec, Non-PBR Brazil Rig Fleet 103 Existing Rigs Under Contract OII ROV Contracts on 80% 72 Rigs On Order Visibility of Significant Rig Fleet Growth OII Expects to Continue as Dominant ROV Provider OII ROV Contracts C t t…
  43. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 43
    Subsea Products Backlog At Period End in millions 1,000 800 600 400 200 0 2008 2009 2010 2011 2012 2013 September 2013
  44. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 44
    Umbilical Products Thermoplastic Hose Umbilicals Steel Tube Umbilicals
  45. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 45
    OIE Products Production Control Valves Tooling & Work Packages Installation Workover & Control Systems Connectors & Repair Systems Field Development Hardware
  46. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 46
    Annual Price Performance OII vs. vs OSX (Oilfield Service Index) 2013 OII up 60% OSX up 29% OII OSX 125% 75% 25% -25% -75% *Through October 31, 2013: Based on Previous Year-End Purchases
  47. STEPHENS FALL INVESTMENT CONFERENCE – Oceaneering International – slide 47
    Cumulative Price Performance OII vs. vs OSX (Oilfield Service Index) 2013 OII up 60% OSX up 29% OII OSX 1300% 1150% 1000% 850% 700% 550% 400% 250% 100% -50% *Through October 31, 2013: Based on Previous Year-end…

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