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RBC CAPITAL MARKETS – Oceaneering International

Oceaneering International · Jun 4, 2013 · 48 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. RBC CAPITAL MARKETS – Oceaneering International – slide 1
    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
  2. RBC CAPITAL MARKETS – Oceaneering International – slide 2
    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
  3. RBC CAPITAL MARKETS – Oceaneering International – slide 3
    Leading Market Position Remotely Operated Vehicles Ownership Drill Support Market Share OII 289 OII 153 36% 56% Worldwide Fleet 271 Floating Rigs Contracted** 803 Vehicles* Source: OII Estimates - * December 2012, ** March…
  4. RBC CAPITAL MARKETS – Oceaneering International – slide 4
    Leading Market Position Specialty Subsea Products Umbilicals ROV Tooling & Work Packages Installation and Workover Control Systems Subsea Hardware
  5. RBC CAPITAL MARKETS – Oceaneering International – slide 5
    Earnings Per Share Guidance 2013 Estimate 3 3.10 10 - 3.30 3 30 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 2008 2009 2010 2011 2012 2013E OII 2013…
  6. RBC CAPITAL MARKETS – 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 2012 2013E 2014E Based on First Call Actuals and Mean Estimates as of April 30,…
  7. RBC CAPITAL MARKETS – Oceaneering International – slide 7
    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 April 30, 2013
  8. RBC CAPITAL MARKETS – Oceaneering International – slide 8
    2013 EPS Guidance The Big Picture OPERATING INCOME 2013 ROV 2012 Subsea Products 2012 Subsea Projects 2012 Asset Integrity 2012 Advanced Tech 2012 2012
  9. RBC CAPITAL MARKETS – Oceaneering International – slide 9
    2013 EPS Guidance The Big Picture OPERATING MARGIN 2013 ROV 2012 Subsea Products
  10. RBC CAPITAL MARKETS – Oceaneering International – slide 10
    Excellent Cash Flow & Liquidity EBITDA of 690 MM to 735 MM Expected in 2013 601 MM iin 2012 Ample Resources to Invest in Growth At March 31, 2013: 128 MM C Cash h 90 MM Debt 1.8 1 8 B Equity EBITDA Reconciliation to Net…
  11. RBC CAPITAL MARKETS – Oceaneering International – slide 11
    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
  12. RBC CAPITAL MARKETS – Oceaneering International – slide 12
    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
  13. RBC CAPITAL MARKETS – Oceaneering International – slide 13
    5-Year Outlook Global Demand Growth Deepwater Drilling Field Development Inspection, Maintenance, and Repair (IMR)
  14. RBC CAPITAL MARKETS – Oceaneering International – slide 14
    Floating Rig Demand 300 Floating Rigs s 271 250 85% Increase In Demand Since 2003 Contracted F 200 Year-End C 150 147 100 End of 2012: 301 Rigs in Fleet, 90% Fleet Utilization Source: IHS-Petrodata at…
  15. RBC CAPITAL MARKETS – Oceaneering International – slide 15
    Floating Rig Demand With 5-Yr 5 Yr Projection Projection, Assuming 90% Rig Fleet Utilization 400 Up 73 Floating Rigs s 27% Growth 350 2017 - 344 300 Contracted F 250 Year-End C 200 150 100 Source:…
  16. RBC CAPITAL MARKETS – Oceaneering International – slide 16
    Floating Rig Demand 5-Year 5 Year Averages 400 Floating Rigs s 325 350 300 Contracted F 235 250 175 Year-End C 200 150 100 Source: IHS-Petrodata and OII Estimates at March 31, 2013
  17. RBC CAPITAL MARKETS – Oceaneering International – slide 17
    Outlook for ROV Demand on Vessels 3.5 3:1 31 oating Rig 3.0 2.5 2:1 Global ROVs per Flo 2.0 1.5 1.0 0.5 0.0 Year End Source: Oceaneering Estimates and IHS-Petrodata
  18. RBC CAPITAL MARKETS – Oceaneering International – slide 18
    Outlook for Global ROV Demand To Meet Visible Requirements Total Demand 240 Additional Vehicles 30% Growth OII Expects to Capture 75 Vehicles 30% of Demand Growth 45 to 50 to Support pp Drilling g by y the End of 2017…
  19. RBC CAPITAL MARKETS – Oceaneering International – slide 19
    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
  20. RBC CAPITAL MARKETS – Oceaneering International – slide 20
    Deepwater Field Backlog Undeveloped Discoveries Fields 600m fsw 600 500 400 300 200 100 0 Source: IHS Petrodata
  21. RBC CAPITAL MARKETS – Oceaneering International – slide 21
    Offshore Construction Backlog Saipem Technip, Saipem, Technip and Subsea 7 30 25 ons) (in billio 20 15 10 5 0 Source: Morgan Stanley and Company Filings
  22. RBC CAPITAL MARKETS – Oceaneering International – slide 22
    Subsea Tree Orders Forecast at Historically High Levels 700 600 500 400 300 200 100 Source: Quest Offshore Resources Mean Case Forecast, February 2013
  23. RBC CAPITAL MARKETS – Oceaneering International – slide 23
    Subsea Tree Orders 5-Year 5 Year Averages Up 200 55% Growth 700 570 600 500 390 370 400 300 200 100 Source: Quest Offshore Resources Mean Case Forecast, February 2013
  24. RBC CAPITAL MARKETS – Oceaneering International – slide 24
    Subsea Tree Installations 5-Year 5 Year Averages 700 Up 120 600 40% Growth 500 420 400 300 300 300 200 100 Source: Quest Offshore Resources Mean Case Forecast, February 2013
  25. RBC CAPITAL MARKETS – Oceaneering International – slide 25
    Subsea Completions In Service vs Subsea Products Operating Income (SSP Op Inc) vs. 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…
  26. RBC CAPITAL MARKETS – Oceaneering International – slide 26
    Subsea Completions In Service Forecast at Historically High Levels Up 1300 32% Growth 6000 5000 4000 3000 2000 1000 0 Source: Quest Offshore Resources Mean Case Forecast, February 2013
  27. RBC CAPITAL MARKETS – Oceaneering International – slide 27
    5-Year Deepwater Outlook What To Expect Along The Way Projects Will Continue Moving to the Right Final Investment Decisions (FIDs) Delayed Approved Projects Cost Overruns Production Start-Up Delays Sheer Volume of Projects…
  28. RBC CAPITAL MARKETS – Oceaneering International – slide 28
    OII Summary Diversified OFS Company Leading g Market Positions in Technical Niches Leveraged to Deepwater and Subsea Completions Excellent Earnings, Liquidity and Cash Flow
  29. RBC CAPITAL MARKETS – Oceaneering International – slide 29
  30. RBC CAPITAL MARKETS – Oceaneering International – slide 30
    Supplemental Financial Information
  31. RBC CAPITAL MARKETS – Oceaneering International – slide 31
    EBITDA in millions Actual Low Estimate High Estimate 800 700 600 500 400 300 200 100 0 2008 2009 2010 2011 2012 2013E* *2013 - 690MM-735MM Based on OII 2013 EPS Guidance as of April 23, 2013 See Next Slide For…
  32. RBC CAPITAL MARKETS – 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. RBC CAPITAL MARKETS – Oceaneering International – slide 33
    OII Balance Sheet ((in millions)) Dec 31 D 31, Dec 31 D 31, Dec D 3131, Dec D 3131, Dec D 3131, Mar M 31, 31 2008 2009 2010 2011 2012 2013 Equity 968 1,224 1,390 1,558 1,815 1,834 Debt 229 120 0 120 94 90 Cash…
  34. RBC CAPITAL MARKETS – Oceaneering International – slide 34
    Business Segments Revenue Operating Income 10% 6% 9% 32% 47% 16% 8% 12% 30% 30% ROV Subsea Products Subsea Projects A Asset t Integrity I t it Adtech YTD March 2013
  35. RBC CAPITAL MARKETS – Oceaneering International – slide 35
    Supplemental Market Information
  36. RBC CAPITAL MARKETS – Oceaneering International – slide 36
    Oilfield ROV Fleet Ownership p Profile - December 2012 36% OII OII 289 Subsea 7 Sonsub Fugro Canyon Other 803 Vehicles Source: OII Estimates
  37. RBC CAPITAL MARKETS – Oceaneering International – slide 37
    OII ROV Fleet Geographic g p Profile March 2013 33 76 GOM 30 Africa Norway 36 Brazil Asia/Pac 65 54 Other 294 Vehicles
  38. RBC CAPITAL MARKETS – Oceaneering International – slide 38
    Oilfield ROV Drill Support Market March 2013 OII Subsea 7 56% Fugro Sonsub Other 271 Floating Rigs Contracted Source: IHS-Petrodata and OII Estimates
  39. RBC CAPITAL MARKETS – Oceaneering International – slide 39
    OII ROVs on Vessels Locations 13 18 GOM Africa Norway 17 Other 22 70 Vehicles March 2013
  40. RBC CAPITAL MARKETS – Oceaneering International – slide 40
    OII ROVs on Vessels Customers Operators 28 Contractors 42 70 Vehicles March 2013
  41. RBC CAPITAL MARKETS – Oceaneering International – slide 41
    OII ROV Fleet Size 294 300 od End unt at Perio 200 Vehicle Cou 100 125 V 0 March 31, 2013
  42. RBC CAPITAL MARKETS – Oceaneering International – slide 42
    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% March 2013
  43. RBC CAPITAL MARKETS – Oceaneering International – slide 43
    High-Spec, Non-PBR Brazil Rig Fleet 99 Existing Rigs OII ROV Contracts on 76% 65 Rigs On Order Visibility of 66% High-Spec Rig Fleet Growth OII Expects to Continue as Dominant ROV Provider OII ROV Contracts on 16 of 20 Awards…
  44. RBC CAPITAL MARKETS – Oceaneering International – slide 44
    Subsea Products Backlog At Period End in millions 1,000 776 750 500 250 0 2007 2008 2009 2010 2011 2012 2013 March 2013
  45. RBC CAPITAL MARKETS – Oceaneering International – slide 45
    Umbilical Products Thermoplastic Hose Umbilicals Steel Tube Umbilicals
  46. RBC CAPITAL MARKETS – Oceaneering International – slide 46
    OIE Products Production Control Valves ROV Tooling g & Work Packages Installation Workover & Control Systems Connectors & Repair Systems Field Development Hardware
  47. RBC CAPITAL MARKETS – Oceaneering International – slide 47
    Annual Price Performance OII vs. vs OSX (Oilfield Service Index) 2013 OII up 41% OSX up 21% OII OSX 125% 75% 25% -25% -75% *Through May 21, 2013: Based on Previous Year-End Purchases
  48. RBC CAPITAL MARKETS – Oceaneering International – slide 48
    Cumulative Price Performance OII vs. vs OSX (Oilfield Service Index) 2013 OII up 41% OSX up 21% OII OSX 1150% 1000% 850% 700% 550% 400% 250% 100% -50% *Through May 21, 2013: Based on Previous Year-End Purchases

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