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HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International

Oceaneering International · Mar 27, 2012 · 45 slides

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Slides

  1. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 1
    Howard Weil 40th Annual Energy Conference March 27, 2012 New Orleans, LA
  2. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 2
    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
  3. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 3
    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
  4. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 4
    Long-Term Deepwater Outlook Where the Oil Is Largest Source of Future Supply Growth Projected at 10% of Production by 2025 Western IOCs Have Little Choice Restricted Access to World-Class Onshore Reserves Exploration Success…
  5. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 5
    Earnings Per Share Guidance 2012 Estimate 2 2.45 45-2 2.65 65 Actual Low Estimate High Estimate 3.00 2.50 are ngs per Sha 2.00 1.50 Earnin 1.00 0.50 0.00 2008 2009 2010 2011 2012E OII 2012 Guidance Range…
  6. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 6
    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 Based on First Call Actuals and Mean Estimates as of February 29, 2012
  7. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 7
    Relative EPS Performance To Recent 2008 OSX Peak OII OSX w/o OII 60% 40% 20% 0% -20% -40% -60% 2008 2009 2010 2011 2012E Based on First Call Actuals and Mean Estimates as of February 29, 2012
  8. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 8
    Field Support Vessel Services Contract BP Angola Blocks 18 and 31 Project Management & Engineering Three Years from February 1 1, 2012 Two Chartered Vessels Ocean Intervention III Bourbon Oceanteam 101 BP Options Two, 1-Year…
  9. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 9
    AGR Field Operations Acquisition Closed December 2011 Expanded Asset Integrity Management Business Particularly in Norway Added Subsea Inspection Tooling Established Subsea Engineering & Field Operations Presence in Australia
  10. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 10
    2012 EPS Guidance The Big Picture SEGMENT OPERATING INCOME ROV 2011 Subsea Products 2011 Subsea Projects 2011 Asset Integrity 2011 Advanced Tech 2011
  11. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 11
    Excellent Liquidity & Cash Flow December 31, 2011 106 MM Cash 180 MM Revolving Credit Available At Least 550 MM of EBITDA Expected in 2012 Ample Resources to Invest in Growth EBITDA Reconciliation to Net Income is in…
  12. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 12
    Plans For Cash Investments Organic Growth Acquisitions Regular Quarterly Dividend Share Repurchases
  13. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 13
    Acquisition Targets Within Our Market Niches Expand Subsea Products International Focus Reasonably Priced
  14. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 14
    Remotely Operated Vehicles 34% Revenue by Business Segment December 2011
  15. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 15
    Floating Rig Demand 300 260 Rigs 250 d Floating R 200 Contracted 150 C 100 *Source: IHS-Petrodata at December 31, 2011
  16. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 16
    OII ROV Fleet Size 300 267 od End unt at Perio 200 Vehicle Cou 100 125 V 0 *December 31, 2011
  17. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 17
    Floating Rig Fleet Expansion 68 On Order at December 31, 2011 28 Contracted Average length 7 years 29 Pl Placed d In I Service S i in i 2011 24 Expected to be Placed In Service in 2012 Source: OII Estimates Based On…
  18. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 18
    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% December 2011
  19. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 19
    2012 ROV Overview Increase in Days On Hire Higher Fleet Utilization Expect to Add 20 to 25 New Systems
  20. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 20
    Operating Income ROV 2012 Estimate 2011 in millions Actual Estimate 250 200 150 100 50 0 2007 2008 2009 2010 2011 2012E OII 2012 Guidance as of February 15, 2012
  21. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 21
    Worldwide Subsea Completions This Decade Expected to Grow 45% Completed Estimated 5000 4547 ompletions 4000 Number of Subsea Co 3000 2000 1000 N 0 90s 00s 10s Source: Quest Offshore Resources February 2012
  22. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 22
    Subsea Tree Orders Forecast at Historically High Levels 1,000 80% Growth 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…
  23. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 23
    Subsea Tree Orders Excluding Brazil Forecast at Historically High Levels 500 55% 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…
  24. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 24
    Subsea Products 35% Revenue by Business Segment Umbilicals & Field Development Hardware ROV Tooling & Work Packages Installation and Workover Control Systems December 2011
  25. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 25
    Subsea Products Required for Every Subsea Completion Subsea Hardware Umbilicals Tooling Field Development IWOCS Connectors & Valves BOP Control Systems Highly Engineered Worldwide World ide Coverage Co erage
  26. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 26
    Subsea Products Backlog At Period End in millions 500 382 400 300 200 100 0 2007 2008 2009 2010 2011
  27. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 27
    Operating Income Products 2012 Estimate 2011 in millions Actual Estimate 160 140 120 100 80 60 40 20 0 2007 2008 2009 2010 2011 2012E OII 2012 Guidance as of February 15, 2012
  28. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 28
    OII Summary Diversified OFS Company Leveraged g to Deepwater p and Subsea Completions p Leading Market Positions in Technical Niches Excellent Earnings, Liquidity and Cash Flow
  29. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 29
  30. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 30
    Supplemental Financial Information
  31. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 31
    EBITDA in millions Actual Low Estimate High Estimate 700 600 500 400 300 200 100 0 2007 2008 2009 2010 2011 2012* *2012 - 555MM-605MM 555MM 605MM Based on OII 2012 EPS Guidance as of February 15, 2012. See Next Slide…
  32. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 32
    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…
  33. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 33
    OII Balance Sheet ((in millions)) Dec 31 D 31, Dec 31 D 31, Dec 31 D 31, Dec 31 D 31, Dec 31 D 31, 2007 2008 2009 2010 2011 E it Equity 915 968 1 224 1,224 1 390 1,390 1 558 1,558 Debt 200 229 120 0 120 Cash 27 11 162…
  34. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 34
    Business Segment Revenue % of Oilfield 89% ROV - 38% Products - 39% Asset Integrity - 14% Projects - 9% Oilfield Non-Oilfield December 2011
  35. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 35
    Business Segment Operating Income % of Oilfield 96% ROV - 52% Products - 33% Asset Integrity - 7% Projects - 8% Oilfield Non-Oilfield December 2011
  36. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 36
    Capital Expenditures: 2007-2011 1.4 Billion, Including g 400 Million on Acquisitions q ROV Subsea Products Asset Integrity Subsea Projects Other 2% 11% 18% 47% 22%
  37. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 37
    Supplemental Market Information
  38. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 38
    Oilfield ROV Fleet Ownership p Profile - December 2011 35% OII Subsea 7 OII 267 Sonsub Fugro Canyon Other 758 Vehicles Source: OII Estimates
  39. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 39
    OII ROV Fleet Geographic g p Profile December 2011 9 58 GOM 30 16 Africa Norway 39 Brazil 62 U.K. 53 Asia/Pac Can/Mex 267 Vehicles
  40. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 40
    Oilfield ROV Drill Support Market December 2011 OII Subsea 7 Fugro 60% Sonsub Other 260 Floating Rigs Contracted Source: IHS-Petrodata and OII Estimates
  41. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 41
    OII ROV Fleet Construction/Field Maintenance Locations 9 GOM 16 Africa Norway Other 14 14 53 Vehicles December 2011
  42. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 42
    OII ROV Fleet Construction/Field Maintenance Customers 21 Operators 32 Contractors 53 Vehicles December 2011
  43. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 43
    Worldwide Umbilical Market Overview Forecasted at Historicallyy High g Levels Umbilicals Tree Orders 80% Growth* - Trees 1,250 49% Growth* - Umbilicals 3000 2500 1,000 Tree Orders KM Umbiliccal Orders -K 2000 750 1500…
  44. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 44
    Umbilical Products Thermoplastic Hose Umbilicals Steel Tube Umbilicals
  45. HOWARD WEIL 40TH ANNUAL ENERGY CONFERENCE – Oceaneering International – slide 45
    OIE Products Production Control Valves ROV Tooling g & Work Packages Installation Workover & Control Systems Connectors & Repair Systems Field Development Hardware

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