WHY OII Leveraged to Deepwater and Subsea Completions Secular Growth Leading L di M Market k tPPositions iti ROVs and Specialty Subsea Products Excellent Earnings, Liquidity 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 Invest Where the Oil Is Western IOCs Have Little Choice Restricted Access to World-Class Onshore Reserves Exploration Success Bodes Well for the Future Drilling Intensity is Rising Source: Wood…
Earnings Per Share Guidance 2011 Estimate 2.11 2 11-2 2.15; 15; 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…
Combined EPS OSX Companies Excluding OII Actual Consensus Estimate 75 60 are ngs per Sha 45 30 Earnin 15 0 2008 2009 2010 2011E 2012E Based on First Call Actuals and Mean Estimates as of October 31, 2011
Relative EPS Performance To Recent 2008 OSX Peak OII OSX w/o OII 60% 40% 20% 0% -20% -40% -60% 2008 2009 2010 2011E 2012E Based on First Call Actuals and Mean Estimates as of October 31, 2011
2012 EPS Guidance The Big Picture SEGMENT OPERATING INCOME ROV 2011 Subsea Products 2011 Subsea Projects 2011 Inspection 2011 Advanced Tech 2011
AGR Field Operations Pending Acquisition Anticipated Close by End of 2011 240 MM Purchase Price Increase 2012 EPS by 0.10 Expands Inspection Business Particularly in Norway Adds Subsea Inspection Tooling Establishes Subsea…
Excellent Liquidity & Cash Flow September 30, 2011 166 MM Cash 300 MM Revolving Credit Available At Least 480 MM of EBITDA Expected in 2011 At Least 550 MM of EBITDA Expected in 2012 Ample Resources to Invest in Growth EBITDA…
Acquisition Targets Within Our Market Niches Expand Subsea Products International Focus Reasonably Priced
Remotely Operated Vehicles 34% Revenue by Business Segment September YTD 2011
Floating Rig Demand Floaters Contracted 250 243 Rigs d Floating R 200 Contracted 150 C 100 *Source: ODS-Petrodata at September 30, 2011
OII ROV Fleet Size OII Fleet Size 300 262 od End unt at Perio 200 Vehicle Cou 100 125 V 0 *September 30, 2011
Floating Rig Fleet Expansion 74 On Order at September 30, 2011 37 Contracted Average length 8 years 27 Expected to be Placed In Service in 2011 20 In Service YTD 24 Expected to be Placed In Service in 2012 Source: OII…
ROV Operating Leverage Revenue / Day on Hire Fleet Utilization 11,000 100% 9,000 80% 7,000 60% 5 000 5,000 40% 3,000 20% 1,000 0% September YTD 2011
2012 ROV Overview Increase in Days On Hire Higher Fleet Utilization Expect to Add 15 to 20 New Systems
Operating Income ROV 2011 Estimate 2010; 2012 Estimate 2011 in millions Actual Estimate 250 200 150 100 50 0 2007 2008 2009 2010 2011E 2012E OII 2011 and 2012 Guidance Ranges as of October 26, 2011
Worldwide Subsea Completions This Decade Expected to Grow 50% Completed Estimated 6000 ompletions 5000 4611 4000 Number of Subsea Co 3000 2000 1000 N 0 90s 00s 10s Source: Quest Offshore Resources August…
Subsea Tree Orders Forecasted at Historically High Levels 750 33% Growth* Tree Orders 500 250 0 '06 '07 '08 '09 '10 '11F '12F '13F '14F '15F * 2011-2015 vs 2006-2010 Source: Quest Offshore Resources Mean Case…
Subsea Products 35% Revenue by Business Segment ROV Tooling & Work Packages Umbilicals Field e d Development e e op e t Hardware September YTD 2011
Subsea Products Required for Every Subsea Completion Subsea Hardware Umbilicals Tooling Field Development IWOCS OCS Connectors & Valves BOP Control Systems Highly Engineered Worldwide Coverage
Subsea Products Backlog At Period End in millions 500 403 400 300 200 100 0 2007 2008 2009 2010 2011 Q3
Operating Income Products 2011 Estimate 2010; 2012 Estimate 2011 in millions Actual Estimate 120 100 80 60 40 20 0 2007 2008 2009 2010 2011E 2012E OII 2011 and 2012 Guidance Ranges as of October 26, 2011
OII Summary Diversified OFS Company Leveraged to Deepwater and Subsea Completions Leading ead g Market a et Positions os t o s in Technical ec ca Niches c es Excellent Earnings 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* *2011 - 480MM-485MM, 480MM 485MM 2012 - 550MM-585MM 550MM 585MM Based on OII 2011 and 2012 EPS…
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 31 D 31, Dec 31 D 31, Dec 31 D 31, Septt 30, S 30 2007 2008 2009 2010 2011 E it Equity 915 968 1 224 1,224 1 390 1,390 1 517 1,517 Debt 200 229 120 0 0 Cash 27 11 162…
Capital Expenditures: 2010 75% on ROVs and Subsea Products ROV Subsea Products Subsea Projects Other 6% 21% 53% 20%
Capital Expenditures: 2011* 75% on ROVs and Subsea Products ROV Subsea Products Subsea Projects Other 5% 20% 39% 36% 207 Million * September YTD
Business Segment Revenue % of Oilfield 90% ROV - 38% Products - 40% Inspection - 14% Projects - 8% Oilfield Non-Oilfield YTD September 2011
Business Segment Operating Income % of Oilfield 97% ROV - 52% Products - 32% Inspection - 8% Projects - 8% Oilfield Non-Oilfield YTD September 2011
Supplemental Market Information
Oilfield ROV Fleet Ownership p Profile - December 2010 35% OII OII Subsea 7 260 Sonsub Fugro Canyon Other 747 Vehicles Source: OII Estimates, December 2010
OII ROV Fleet Geographic g p Profile September p 2011 11 56 GOM 27 Africa 19 Norway 39 Brazil 58 UK U.K. 52 Asia/Pac Can/Mex 262 Vehicles
Oilfield ROV Drill Support Market September p 2011 OII Subsea 7 Fugro 59% Sonsub Other 243 Floating Rigs Contracted Source: ODS-Petrodata and OII Estimates
OII ROV Fleet Construction/Field Maintenance Locations 9 GOM 16 Africa Norway Other 16 16 57 Vehicles September 2011
Worldwide Umbilical Market Overview Forecasted at Historicallyy High g Levels Umbilicals Tree Orders 33% Growth* - Trees 750 52% Growth* - Umbilicals 3000 2500 Tree Orders KM Umbiliccal Orders -K 500 2000 1500 250 1000…
OIE Products Production Control Valves ROV Tooling g & Work Packages Installation Workover & Control Systems Connectors & Repair Systems Field Development Hardware
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