DAHLMAN ROSE ULTIMATE OIL SERVICES AND E&P CONFERENCE DECEMBER 4, 2012 New York, NY M. Kevin McEvoy President and CEO Oceaneering International, Inc. Safe Harbor Statement
WHY OII Leveraged to Deepwater and Subsea Completions Secular Growth Leading Market Positions ROVs and Specialty Subsea Products Good Project Execution Excellent Earnings, g , Liquidity q y and Cash Flow
Leveraged to Deepwater Projects Take Years to Develop Largely Oil Reservoirs With High Production Flow Rates Well Capitalized Customer Base Investment Based on Long-Term Commodity Price
Long-Term Deepwater Outlook Largest Source of Future Supply Growth Exploration Success Bodes Well for the Future Drilling Intensity is Rising Source: ExxonMobil, Wood Mackenzie and Deutsche Bank
Earnings Per Share Guidance 2012 Estimate 2 2.60 60-2 2.65; 65; 2013 Estimate 3 3.00 00-3 3.25 25 Actual Low Estimate High Estimate 3.50 3.00 are 2.50 ngs per Sha 2.00 1.50 Earnin 1.00 0.50 0.00…
Combined EPS OSX Companies Excluding OII Actual Consensus Estimate 75 60 are ngs per Sha 45 30 Earnin 15 0 2008 2009 2010 2011 2012E 2013E Based on First Call Actuals and Mean Estimates as of October 31, 2012
Relative EPS Performance To Recent 2008 OSX Peak OII OSX w/o OII 100% 75% 50% 25% 0% -25% -50% 2008 2009 2010 2011 2012E 2013E Based on First Call Actuals and Mean Estimates as of October 31, 2012
EPS Guidance The Big Picture SEGMENT OPERATING INCOME 2012 2013 ROV 2011 2012 Subsea Products 2011 2012 Subsea Projects 2011 2012 Asset Integrity 2011 2012 Advanced Tech 2011 2012 2012
Excellent Cash Flow & Liquidity At Least 590 MM of EBITDA Expected in 2012 489 MM iin 2011 At Least 670 MM of EBITDA Expected in 2013 Ample Resources to Invest in Growth At September 30, 2012: 104 MM Cash 125 MM Debt 1.7 B…
Acquisition Targets Within Our Market Niches Expand Subsea Products International Focus Reasonably Priced
31% Remotely Operated Vehicles Revenue by Business Segment YTD September 2012
Floating Rig Demand 300 273 Rigs 250 d Floating R 200 Contracted 150 C 100 *Source: IHS-Petrodata at September 30, 2012
OII ROV Fleet Size 300 285 od End unt at Perio 200 Vehicle Cou 100 125 V 0 *September 30, 2012
High-Spec, Non-PBR Brazil Rig Fleet 96 Existing Rigs OII ROV Contracts on 75% 62 Rigs On Order Visibility of 65% Rig Fleet Growth OII Expects to Continue as Dominant ROV Provider OII ROV Contracts on 10 of 11 Awards 51…
Outlook for ROV Demand on Vessels 3.5 3:1 OVs per Floating Rig 3.0 2.5 2:1 2.0 If the recent trend ratio of 1.5 3 ROVs p per rig gppersists,, Global RO future ROV demand to 1.0 support vessel-based activities may…
ROV Pricing and Fleet Utilization Revenue / Day on Hire Fleet Utilization 11,000 100% 9,000 90% 7,000 80% 5 000 5,000 70% 3,000 60% 1,000 50% * * YTD September 2012
2013 ROV Overview Increase in Days On Hire Higher Demand to Support Drilling and Vessel Projects Fleet Expansion Expect to Add 30 to 35 New Systems
Operating Income ROV 2012 Estimate 2011; 2013 Estimate 2012 in millions Actual Estimate 250 200 150 100 50 0 2008 2009 2010 2011 2012E 2013E OII 2012 and 2013 Guidance as of October 29, 2012
Subsea Tree Orders Forecast at Historically High Levels 1,000 65% Growth* 750 Tree Orders 500 250 0 '07 '08 '09 '10 '11 '12F '13F '14F '15F '16F * 2012-2016 vs. 2007-2011 Source: Quest Offshore Resources Mean Case…
Subsea Tree Orders Excluding Brazil Forecast at Historically High Levels 500 60% Growth Growth* 400 Tree Orders 300 200 100 0 '07 '08 '09 '10 '11 '12F '13F '14F '15F '16F * 2012-2016 vs. 2007-2011 Source: Quest…
Record Offshore Construction Backlog Saipem Technip, Saipem, Technip and Subsea 7 25 20 ons) (in billio 15 10 5 0 Source: Morgan Stanley and Company Filings
29% Subsea Products Revenue by Business Segment Umbilicals & Field Development Hardware ROV Tooling & Work Packages Installation and Workover Control Systems YTD September 2012
Subsea Products Required for Every Subsea Completion Product Line Categories Umbilicals Tooling Installation & Workover Control Systems (IWOCS) Subsea Hardware Field Development Connectors & Valves BOP Controls Highly…
Subsea Products Backlog At Period End in millions 700 619 600 500 400 300 200 100 0 2007 2008 2009 2010 2011 2012* * September 2012
Operating Income Products 2012 Estimate 2011; 2013 Estimate 2012 in millions Actual Estimate 160 120 80 40 0 2008 2009 2010 2011 2012E 2013E OII 2012 and 2013 Guidance as of October 29, 2012
OII Summary Diversified OFS Company Leading g Market Positions in Technical Niches Leveraged to Deepwater and Subsea Completions Excellent Earnings, Liquidity and Cash Flow
Supplemental Financial Information
EBITDA in millions Actual Low Estimate High Estimate 800 700 600 500 400 300 200 100 0 2008 2009 2010 2011 2012E* 2013E* *2012 - 590MM-600MM; 590MM 600MM; 2013 - 670MM-725MM 670MM 725MM Based on OII 2012 and 2013…
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 D 31, Dec D 3131, Dec D 3131, Dec D 3131, Dec D 3131, Sept S t 30, 30 2007 2008 2009 2010 2011 2012 Equity 915 968 1,224 1,390 1,558 1,734 Debt 200 229 120 0 120 120…
Business Segment Revenue % of Oilfield 90% ROV - 35% Products - 32% Asset Integrity - 18% Projects - 15% Oilfield Non-Oilfield YTD September 2012
Business Segment Operating Income % of Oilfield 96% ROV - 49% Products - 31% Asset Integrity - 10% Projects - 10% Oilfield Non-Oilfield YTD September 2012
Supplemental Market Information
Oilfield ROV Fleet Ownership p Profile - December 2011 35% OII OII Subsea 7 267 Sonsub Fugro Canyon Other 758 Vehicles Source: OII Estimates
OII ROV Fleet Geographic g p Profile - September p 2012 31 69 GOM 33 Africa Norway 36 Brazil 62 Asia/Pac Other 54 285 Vehicles
Oilfield ROV Drill Support Market September p 2012 OII Subsea 7 Fugro 56% Sonsub Other 273 Floating Rigs Contracted Source: IHS-Petrodata and OII Estimates
OII ROVs on Vessels Locations 15 19 GOM Africa Norway Other 16 20 70 Vehicles September 2012
OII ROVs on Vessels Customers Operators Contractors 31 39 70 Vehicles September 2012
Worldwide Subsea Completions This Decade Expected p to Grow 35% Completed Estimated 5000 4196 ompletions 4000 Number of Subsea Co 3000 2000 1000 N 0 90s 00s 10s Source: Quest Offshore Resources November…
OIE Products Production Control Valves ROV Tooling g & Work Packages Installation Workover & Control Systems Connectors & Repair Systems Field Development Hardware
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