WHY OII Leveraged to Deepwater and Subsea Completions Secular Growth Leading Market Positions ROVs and Specialty Subsea Products Good Project Execution 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
Leading Market Position Remotely Operated Vehicles Ownership Drill Support Market Share OII 289 OII 160 36% 58% Worldwide Fleet 277 Floating Rigs Contracted** 803 Vehicles* Source: OII Estimates - * December 2012, ** June…
Leading Market Position Specialty Subsea Products Umbilicals Tooling & Work Packages Installation and Workover Control Systems Subsea Hardware
Earnings Per Share Guidance 2013 Estimate 3.20 - 3.35 Actual Low Estimate High Estimate 4.00 3.50 Earnings per Share 3.00 2.50 2.00 1.50 1.00 0.50 0.00 2008 2009 2010 2011 2012 2013E OII 2013 Guidance Range as…
Combined EPS OSX Companies Excluding OII Actual Consensus Estimate 75 60 Earnings per Share 45 30 15 0 2008 2009 2010 2011 2012 2013E 2014E Based on First Call Actuals and Mean Estimates as of August 30, 2013
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 August 30, 2013
2013 EPS Guidance The Big Picture OPERATING INCOME 2013 ROV 2012 Subsea Products 2012 Subsea Projects 2012 Asset Integrity 2012 Advanced Tech 2012
Excellent Cash Flow & Liquidity EBITDA of 710 MM to 740 MM Expected in 2013 601 MM in 2012 Ample Resources to Invest in Growth At June 30, 2013: 119 MM Cash 75 MM Debt 1.9 B Equity EBITDA Reconciliation to Net Income is in…
Long-Term Deepwater Outlook Largest Source of Future Oil Supply Growth Exploration Success Bodes Well for the Future Drilling Intensity is Rising Source: ExxonMobil, Deutsche Bank, and Morgan Stanley and Rystad Energy
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
5-Year OII Outlook Global Demand Growth Deepwater Drilling Field Development Inspection, Maintenance, and Repair (IMR)
Floating Rig Demand 300 Year-End Contracted Floating Rigs 271 250 85% Increase In Demand Since 2003 200 150 147 100 End of 2012: 301 Rigs in Fleet, 90% Fleet Utilization. Source: IHS-Petrodata at December 31,…
Floating Rig Demand With 5-Year Projection, Assuming 90% Rig Fleet Utilization 400 Up 80 Year-End Contracted Floating Rigs 30% Growth 350 354 300 250 271 200 150 100 Source: IHS-Petrodata and OII Estimates at June…
Floating Rig Demand 5-Year Averages Up 90 38% Growth 400 Year-End Contracted Floating Rigs 325 350 300 235 250 175 200 150 100 Source: IHS-Petrodata and OII Estimates at June 30, 2013
Outlook for ROV Demand on Vessels 3.5 3.0 Global ROVs per Floating Rig 3.0 2.5 2.4 2.0 1.5 1.0 0.5 0.0 Year End Source: Oceaneering Estimates and IHS-Petrodata
Outlook for Global ROV Demand To Meet Visible Requirements Total Demand 270 Additional Vehicles 35% Growth OII Expects 90 Vehicles of Total Demand 50 to 55 to Support Drilling by the End of 2017 Source: Oceaneering Estimates…
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
Offshore Construction Backlog Saipem, Technip, and Subsea 7 in billions 30 25 20 15 10 5 0 Source: Morgan Stanley and Company Filings, June 2013
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
Subsea Tree Orders 5-Year Averages Up 230 60% Growth 800 700 600 600 390 370 500 400 300 200 100 Source: Quest Offshore Resources Mean Case Forecast, August 2013
Subsea Tree Installations 5-Year Averages 700 Up 140 600 45% Growth 500 440 400 300 300 300 200 100 Source: Quest Offshore Resources Mean Case Forecast, August 2013
Subsea Completions In Service vs. Subsea Products Operating Income (SSP Op Inc) 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 &…
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
5-Year Deepwater Outlook What To Expect Along The Way Some Project Approvals May Continue Moving to the Right Approved Projects Cost Overruns Production Start-Up Delays Technical Challenges Sheer Volume of Projects Will Still…
OII Summary Diversified OFS Company Leading 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 2012 2013E* *2013 - 710MM-740MM Based on OII 2013 EPS Guidance as of July 24, 2013 See Next Slide For Non-GAAP…
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, Dec 31, Dec 31, Dec 31, Dec 31, Jun 31, 2008 2009 2010 2011 2012 2013 Equity 968 1,224 1,390 1,558 1,815 1,875 Debt 229 120 0 120 94 75 Cash 11 162 245 106 121 119 Debt/Cap 19% 9% 0% 7%…
Business Segments Revenue Operating Income 10% 6% 9% 31% 42% 15% 11% 13% 31% 32% ROV Subsea Products Subsea Projects Asset Integrity Adtech YTD June 2013
2013 EPS Guidance The Big Picture OPERATING MARGIN 2013 ROV 2012 Subsea Products
OII ROV Fleet Geographic Profile - June 2013 42 74 GOM 30 Africa Norway 34 Brazil 62 Asia/Pac Other 54 296 Vehicles
Oilfield ROV Drill Support Market June 2013 OII Subsea 7 Fugro 58% Sonsub Other 277 Contracted Floating Rigs Source: IHS-Petrodata and OII Estimates
OII ROVs on Vessels Locations 15 GOM 20 Africa Norway 21 Other 18 74 Vehicles June 2013
OII ROVs on Vessels Customers Operators 29 Contractors 45 74 Vehicles June 2013
OII ROV Fleet Size 296 300 Vehicle Count at Period End 200 100 125 0 June 30, 2013
ROV Pricing and Fleet Utilization Revenue / Day on Hire Fleet Utilization 11,000 100% 9,000 90% 7,000 80% 5,000 70% 3,000 60% 1,000 50% YTD June 2013
High-Spec, Non-PBR Brazil Rig Fleet 102 Existing Rigs OII ROV Contracts on 76% 70 Rigs On Order Visibility of 69% High-Spec Rig Fleet Growth OII Expects to Continue as Dominant ROV Provider OII ROV Contracts on 17 of 20 Awards…
Subsea Products Backlog At Period End in millions 1,000 750 500 250 0 2008 2009 2010 2011 2012 2013 June 2013
OIE Products Production Control Valves Tooling & Work Packages Installation Workover & Control Systems Connectors & Repair Systems Field Development Hardware
Annual Price Performance OII vs. OSX (Oilfield Service Index) 2013 OII up 44% OSX up 17% OII OSX 125% 75% 25% -25% -75% *Through August 30, 2013: Based on Previous Year-End Purchases
Cumulative Price Performance OII vs. OSX (Oilfield Service Index) 2013 OII up 44% OSX up 17% OII OSX 1300% 1150% 1000% 850% 700% 550% 400% 250% 100% -50% *Through August 30, 2013: Based on Previous Year-end…
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