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GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International

Oceaneering International · Jan 11, 2012 · 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. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 1
    Goldman Sachs January 11, 2012 Miami, FL
  2. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 2
    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
  3. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 3
    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
  4. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 4
    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…
  5. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 5
    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…
  6. GOLDMAN SACHS GLOBAL 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 2008 2009 2010 2011E 2012E Based on First Call Actuals and Mean Estimates as of December 30, 2011
  7. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 7
    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 December 30, 2011
  8. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 8
    2012 EPS Guidance The Big Picture SEGMENT OPERATING INCOME ROV 2011 Subsea Products 2011 Subsea Projects 2011 Inspection 2011 Advanced Tech 2011
  9. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 9
    Field Support Vessel Services Contract BP Angola Blocks 18 and 31 Project Management & Engineering Three Th Years Y from f February F b 1, 1 2012 Two Chartered Vessels Ocean Intervention III Bourbon Oceanteam 101 BP Options…
  10. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 10
    AGR Field Operations Acquisition Closed December 20, 2011 230 MM PPurchase h P Price i Increase 2012 EPS by 0.10 Expands Asset Integrity Management Business Particularly in Norway Adds Subsea Inspection Tooling Establishes…
  11. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 11
    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…
  12. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 12
    Plans For Cash Investments Organic Growth Acquisitions Regular Quarterly Dividend Share Repurchases
  13. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 13
    Acquisition Targets Within Our Market Niches Expand Subsea Products International Focus Reasonably Priced
  14. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 14
    Remotely Operated Vehicles 34% Revenue by Business Segment September YTD 2011
  15. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 15
    Floating Rig Demand Floaters Contracted 250 243 Rigs d Floating R 200 Contracted 150 C 100 *Source: ODS-Petrodata at September 30, 2011
  16. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 16
    OII ROV Fleet Size OII Fleet Size 300 262 od End unt at Perio 200 Vehicle Cou 100 125 V 0 *September 30, 2011
  17. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 17
    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…
  18. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 18
    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
  19. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 19
    2012 ROV Overview Increase in Days On Hire Higher Fleet Utilization Expect to Add 15 to 20 New Systems
  20. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 20
    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
  21. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 21
    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…
  22. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 22
    Subsea Tree Orders Forecasted at Historically High Levels 1,000 58% Growth* 750 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…
  23. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 23
    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
  24. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 24
    Subsea Products Required for Every Subsea Completion Subsea Hardware Umbilicals Tooling Field Development IWOCS Connectors & Valves BOP Control Systems Highly Engineered Worldwide Coverage
  25. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 25
    Subsea Products Backlog At Period End in millions 500 403 400 300 200 100 0 2007 2008 2009 2010 2011 Q3
  26. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 26
    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
  27. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 27
    OII Summary Diversified OFS Company Leveraged to Deepwater and Subsea Completions Leading Market Positions in Technical Niches Excellent Earnings Earnings, Liquidity and Cash Flow
  28. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 28
  29. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 29
    Supplemental Financial Information
  30. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 30
    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…
  31. GOLDMAN SACHS GLOBAL 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. GOLDMAN SACHS GLOBAL 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, 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…
  33. GOLDMAN SACHS GLOBAL 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%
  34. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 34
    Capital Expenditures: 2011* 75% on ROVs and Subsea Products ROV Subsea Products Subsea Projects Other 5% 20% 39% 36% 207 Million * September YTD
  35. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 35
    Business Segment Revenue % of Oilfield 90% ROV - 38% Products - 40% Inspection - 14% Projects - 8% Oilfield Non-Oilfield YTD September 2011
  36. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 36
    Business Segment Operating Income % of Oilfield 97% ROV - 52% Products - 32% Inspection - 8% Projects - 8% Oilfield Non-Oilfield YTD September 2011
  37. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 37
    Supplemental Market Information
  38. GOLDMAN SACHS GLOBAL 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. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 39
    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
  40. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 40
    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
  41. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 41
    OII ROV Fleet Construction/Field Maintenance Locations 9 GOM 16 Africa Norway Other 16 16 57 Vehicles September 2011
  42. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 42
    OII ROV Fleet Construction/Field Maintenance Customers Operators 25 32 Contractors 57 Vehicles September 2011
  43. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 43
    Worldwide Umbilical Market Overview Forecasted at Historicallyy High g Levels Umbilicals Tree Orders 58% Growth* - Trees 1,000 57% Growth* - Umbilicals 3000 2500 750 Tree Orders KM Umbiliccal Orders -K 2000 500 1500…
  44. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Oceaneering International – slide 44
    Umbilical Products Thermoplastic Hose Umbilicals Steel Tube Umbilicals
  45. GOLDMAN SACHS GLOBAL 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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