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 2.55 55-2 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…
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 July 31, 2012
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 July 31, 2012
2012 EPS Guidance The Big Picture SEGMENT OPERATING INCOME ROV 2011 Subsea Products 2011 Subsea Projects 2011 Asset Integrity 2011 Advanced Tech 2011
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…
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
Excellent Cash Flow & Liquidity At Least 565 MM of EBITDA Expected in 2012 489 MM in 2011 Ample Resources to Invest in Growth At June 30, 2012: 86 MM Cash 125 MM Debt 1.6 B Equity EBITDA Reconciliation to Net Income is in…
Acquisition Targets Within Our Market Niches Expand Subsea Products International Focus Reasonably Priced
32% Remotely Operated Vehicles Revenue by Business Segment YTD June 2012
Floating Rig Demand 300 268 Rigs 250 d Floating R 200 Contracted 150 C 100 *Source: IHS-Petrodata at June 30, 2012
OII ROV Fleet Size OII Fleet Size 300 280 od End unt at Perio 200 Vehicle Cou 100 125 V 0 *June 30, 2012
High-Spec, Non-PBR Brazil Rig Fleet June 30 30, 2012 Status 94 Existing Rigs OII ROV Contracts on 73% 57 Rigs On Order Visibility of 60% Rig Fleet Growth OII Expects to Continue as Dominant ROV Provider OII ROV Contracts on 10…
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 June 2012
2012 ROV Overview Increase in Days On Hire Higher Demand Expect to Add 25 to 30 New Systems Slightly Sli htl Higher Hi h MMargin i Additional Days on Hire Change in Geographic Mix
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 June 30, 2012
Worldwide Subsea Completions This Decade Expected to Grow 45% 45% Completed Estimated 5000 4448 ompletions 4000 Number of Subsea Co 3000 2000 1000 N 0 90s 00s 10s Source: Quest Offshore Resources June 2012
Subsea Tree Orders Forecast at Historically High Levels 1,000 75% 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…
29% Subsea Products Revenue by Business Segment Umbilicals & Field Development Hardware ROV Tooling & Work Packages Installation and Workover Control Systems YTD June 2012
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
Subsea Products Backlog At Period End in millions 700 621 600 500 400 300 200 100 0 2007 2008 2009 2010 2011 2012* * June 2012
Operating Income Products 2012 Estimate 2011 in millions Actual Estimate 160 120 80 40 0 2007 2008 2009 2010 2011 2012E OII 2012 Guidance as of July 25, 2012
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
Supplemental Financial Information
EBITDA in millions Actual Low Estimate High Estimate 700 600 500 400 300 200 100 0 2007 2008 2009 2010 2011 2012* *2012 - 565MM-595MM 565MM 595MM Based on OII 2012 EPS Guidance as of July 25, 2012. See Next Slide For…
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, Jun J 30, 30 2007 2008 2009 2010 2011 2012 Equity 915 968 1,224 1,390 1,558 1,625 Debt 200 229 120 0 120 125 Cash…
Business Segment Revenue % of Oilfield 90% ROV - 36% Products - 32% Asset Integrity - 18% Projects - 14% Oilfield Non-Oilfield YTD June 2012
Business Segment Operating Income % of Oilfield 96% ROV - 52% Products - 28% Asset Integrity - 10% Projects - 10% Oilfield Non-Oilfield YTD June 2012
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%
Supplemental Market Information
Oilfield ROV Fleet Ownership p Profile - December 2011 35% OII OII Subsea 7 267 Sonsub Fugro Canyon y Other 758 Vehicles Source: OII Estimates
OII ROV Fleet Geographic g p Profile June 2012 8 70 33 GOM 17 Africa Norway 38 Brazil U.K. 63 Asia/Pac 51 Can/Mex 280 Vehicles
Oilfield ROV Drill Support Market June 2012 OII Subsea 7 Fugro 58% Sonsub Other 268 Floating Rigs Contracted Source: IHS-Petrodata and OII Estimates
OII ROVs on Vessels Locations 10 GOM 20 Africa Norway Other 15 17 62 Vehicles June 2012
OII ROVs on Vessels Customers Operators 28 34 Contractors 62 Vehicles June 2012
Worldwide Umbilical Market Overview Forecasted at Historicallyy High g Levels Umbilicals Tree Orders 75% Growth* - Trees 1,000 60% Growth* - Umbilicals 3000 2500 750 Tree Orders KM Umbiliccal Orders -K 2000 500 1500…
OIE Products Production Control Valves ROV Tooling g & Work Packages Installation Workover & Control Systems Connectors & Repair Systems Field Development Hardware
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