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JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International

Oceaneering International · Oct 4, 2011 · 45 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. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 1
    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
  2. JOHNSON RICE COMPANY ENERGY CONFERENCE – 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. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 3
    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…
  4. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 4
    Near-Term Deepwater Outlook DOI Regulations Lower Activity in the U.S. Gulf of Mexico Our Largest Market for ROV Services ROV Tooling & IWOCS Sole Market for Our Subsea Projects Operations Additional Subsea Product Opportunities…
  5. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 5
    Earnings Per Share Guidance 2011 Estimate 1.90 1 90 - 1.98 1 98 Actual Low Estimate High Estimate 2.50 2.00 are ngs per Sha 1.50 1 00 1.00 Earnin 0.50 0.00 2007 2008 2009 2010 2011E OII 2011 Guidance Range…
  6. JOHNSON RICE COMPANY 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 2007 2008 2009 2010 2011E 2011E Based on First Call Mean Estimates as of August 7, 2011
  7. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 7
    Relative EPS Performance To Recent 2008 OSX Peak OII OSX w/o OII 20% 0% -20% -40% -60% 2008 2009 2010 2011E 2011E Based on First Call Actuals and Mean Estimates as of August 7, 2011
  8. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 8
    2011 EPS Guidance The Big Picture SEGMENT OPERATING INCOME ROV 2010 Subsea Products 2010 Inspection 2010 Subsea Projects < 2010 Advanced Tech < 2010
  9. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 9
    Excellent Liquidity & Cash Flow June 30, 2011 151 MM Cash 300 MM Revolving Credit Available At Least 450 MM of EBITDA Expected in 2011 Ample Resources to Invest in Growth EBITDA Reconciliation to Net Income is in Supplemental…
  10. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 10
    Plans For Cash Organic Growth Acquisitions q Regular R l Q Quarterly t l DiDividend id d Share Repurchases
  11. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 11
    Acquisition Targets Within Our Market Niches Expand Subsea Products International Focus Reasonably Priced
  12. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 12
    Norse Cutting & Abandonment Acquisition Closed March 31, 2011 56 MM Purchase Price Subsea Products Expansion Increase Tooling Product Line Enhance Ability to Participate Multi-String Casing Cutting System in P&A and…
  13. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 13
    Remotely Operated Vehicles 35% Revenue by Business Segment June YTD 2011
  14. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 14
    Floating Rig Demand Floaters Contracted 250 237 Rigs d Floating R 200 Contracted 150 C 100 *Source: ODS-Petrodata at June 30, 2011
  15. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 15
    OII ROV Fleet Size OII Fleet Size 300 262 od End unt at Perio 200 Vehicle Cou 100 125 V 0 June 2011
  16. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 16
    Floating Rig Fleet Expansion 72 Rigs On Order at June 30, 2011 35 Contracted Average length 7 years 26 Expected to be Placed In Service in 2011 13 In Service in 1H Source: OII Estimates Based On ODS-Petrodata Data: July 1,…
  17. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 17
    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% June YTD 2011
  18. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 18
    2011 ROV Overview Increase in Days On Hire Added 22 New Systems in 2010 Expect to Add 15 to 20 New Systems in 2011 Added 8 in 1H
  19. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 19
    Operating Income ROV 2011Estimate 2010 in millions Actual Estimate 250 200 150 100 50 0 2007 2008 2009 2010 2011E OII 2011 Guidance Range as of July 27, 2011
  20. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 20
    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…
  21. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 21
    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…
  22. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 22
    Subsea Products 35% Revenue by Business Segment ROV Tooling & Work Packages Umbilicals Field e d Development e e op e t Hardware June YTD 2011
  23. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 23
    Subsea Products Required for Every Subsea Completion Subsea Hardware Umbilicals Tooling Field Development IWOCS OCS Connectors & Valves BOP Control Systems Highly Engineered Worldwide Coverage
  24. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 24
    Additional Subsea Product Opportunities Post-Macondo Post Macondo Incident Safety Concerns Hot Stabs with Higher Flow Rates Hot Stab Receptacles & Valves ROV Accumulator Reservoir Skids ROV Accumulator Reservoir Skid Backup p…
  25. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 25
    Subsea Products Backlog At Period End in millions 500 405 400 300 200 100 0 2007 2008 2009 2010 2011 Q2
  26. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 26
    Operating Income Products 2011Estimate 2010 in millions Actual Estimate 120 100 80 60 40 20 0 2007 2008 2009 2010 2011E OII 2011 Guidance Range as of July 27, 2011
  27. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 27
    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
  28. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 28
  29. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 29
    Supplemental Financial Information
  30. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 30
    EBITDA Actual Low Estimate High Estimate (in millions) 500 400 300 200 100 0 2007 2008 2009 2010 2011* *2011 - 450MM-465MM, Based on OII EPS Guidance Range July 27, 2011. See Next Slide For Non-GAAP Reconciliation…
  31. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 31
    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…
  32. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 32
    OII Balance Sheet ((in millions)) Dec 31 D 31, Dec 31 D 31, Dec 31 D 31, Dec 31 D 31, Jun 30, J 30 2007 2008 2009 2010 2011 E it Equity 915 968 1 224 1,224 1 390 1,390 1 506 1,506 Debt 200 229 120 0 0 Cash 27 11 162 245…
  33. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 33
    Capital Expenditures: 2010 75% on ROVs and Subsea Products ROV Subsea Products Subsea Projects Other 6% 21% 53% 20% 207 Million
  34. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 34
    Capital Expenditures: 2011* 75% on ROVs and Subsea Products ROV Subsea Products Subsea Projects Other 6% 18% 32% 44% 168 Million * June YTD
  35. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 35
    Business Segment Revenue % of Oilfield 89% ROV - 39% Products - 39% Inspection - 14% Projects - 8% Oilfield Non Oilfield June 2011
  36. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 36
    Business Segment Operating Income % of Oilfield 97% ROV - 56% Products - 34% Inspection - 7% Projects - 3% Oilfield Non Oilfield June 2011
  37. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 37
    Supplemental Market Information
  38. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 38
    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
  39. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 39
    OII ROV Fleet Geographic g p Profile June 2011 9 64 GOM 30 Africa 19 Norway Brazil 39 52 UK U.K. 49 Asia/Pac Can/Mex 262 Vehicles June 2011
  40. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 40
    Oilfield ROV Drill Support Market June 2011 OII Subsea 7 60% Fugro Sonsub Other 188 Floating Rigs In Service Source: ODS-Petrodata and OII Estimates
  41. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 41
    OII ROV Fleet Construction/Field Maintenance Locations 8 GOM 19 Af i Africa Norway Oth Other 18 13 58 Vehicles June 2011
  42. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 42
    OII ROV Fleet Construction/Field Maintenance Customers 24 Operators 34 Contractors 58 Vehicles June 2011
  43. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 43
    Worldwide Umbilical Market Overview Forecasted at Historically High Levels Umbilicals Tree Orders 33% Growth* - Trees 750 55% Growth* - Umbilicals 3000 bilical Orders - KM Tree Ordeers 500 2000 Umb 250 1000 0 0…
  44. JOHNSON RICE COMPANY ENERGY CONFERENCE – Oceaneering International – slide 44
    Umbilical Products Thermoplastic Hose Umbilicals Steel Tube Umbilicals
  45. JOHNSON RICE COMPANY 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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