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TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International

Oceaneering International · Aug 8, 2012 · 46 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. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 1
    HOTTER N HELL ENERGY CONFERENCE AUGUST 8, 2012 HOUSTON, TX
  2. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 2
    WHY OII Leveraged to Deepwater and Subsea Completions Secular Growth Leading Market Positions ROVs and Specialty Subsea Products Good Project Execution Excellent Earnings, g , Liquidity q y and Cash Flow
  3. TUDOR PICKERING HOTTER N HELL 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. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 4
    Long-Term Deepwater Outlook Largest Source of Future Supply Growth Exploration Success Bodes Well for the Future Drilling Intensity is Rising Source: ExxonMobil, Wood Mackenzie and Deutsche Bank
  5. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 5
    Earnings Per Share Guidance 2012 Estimate 2 2.55 55-2 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 2011 2012E OII 2012 Guidance Range…
  6. TUDOR PICKERING HOTTER N HELL 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 2011 2012E Based on First Call Actuals and Mean Estimates as of July 31, 2012
  7. TUDOR PICKERING HOTTER N HELL 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 2011 2012E Based on First Call Actuals and Mean Estimates as of July 31, 2012
  8. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 8
    2012 EPS Guidance The Big Picture SEGMENT OPERATING INCOME ROV 2011 Subsea Products 2011 Subsea Projects 2011 Asset Integrity 2011 Advanced Tech 2011
  9. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 9
    Field Support Vessel Services Contract BP Angola Blocks 18 and 31 Project Management & Engineering Three Years from February 1 1, 2012 Two Chartered Vessels Ocean Intervention III Bourbon Oceanteam 101 BP Options Two, 1-Year…
  10. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 10
    AGR Field Operations Acquisition Closed December 2011 Expanded Asset Integrity Management Business Particularly in Norway Added Subsea Inspection Tooling Established Subsea Engineering & Field Operations Presence in Australia
  11. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 11
    Excellent Cash Flow & Liquidity At Least 565 MM of EBITDA Expected p in 2012 489 MM in 2011 Ample Resources to Invest in Growth At June 30, 2012: 86 MM Cash 125 MM Debt 1.6 B Equity EBITDA Reconciliation to Net Income is in…
  12. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 12
    Plans For Cash Investments Organic Growth Acquisitions Regular Quarterly Dividend Share Repurchases
  13. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 13
    Acquisition Targets Within Our Market Niches Expand Subsea Products International Focus Reasonably Priced
  14. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 14
    32% Remotely Operated Vehicles Revenue by Business Segment YTD June 2012
  15. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 15
    Floating Rig Demand 300 268 Rigs 250 d Floating R 200 Contracted 150 C 100 *Source: IHS-Petrodata at June 30, 2012
  16. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 16
    OII ROV Fleet Size OII Fleet Size 300 280 od End unt at Perio 200 Vehicle Cou 100 125 V 0 *June 30, 2012
  17. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 17
    High-Spec, Non-PBR Brazil Rig Fleet June 30 30, 2012 Status 94 Existing Rigs OII ROV Contracts on 73% 57 Rigs On Order Visibility of 60% Rig Fleet Growth OII Expects to Continue as Dominant ROV Provider OII ROV Contracts on 10…
  18. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 18
    Outlook for ROV Demand on Vessels 3.5 3:1 OVs per Floating Rig 3.0 2.5 2:1 2.0 If the recent trend ratio of 1.5 3 ROVs p per rig gppersists,, Global RO future ROV demand to 1.0 support vessel-based activities may…
  19. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 19
    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% * * YTD June 2012
  20. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 20
    2012 ROV Overview Increase in Days On Hire Higher Demand Expect to Add 25 to 30 New Systems Slightly Sli htl Higher Hi h MMargin i Additional Days on Hire Change in Geographic Mix
  21. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 21
    Operating Income ROV 2012 Estimate 2011 in millions Actual Estimate 250 200 150 100 50 0 2007 2008 2009 2010 2011 2012E OII 2012 Guidance as of June 30, 2012
  22. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 22
    Worldwide Subsea Completions This Decade Expected to Grow 45% 45% Completed Estimated 5000 4448 ompletions 4000 Number of Subsea Co 3000 2000 1000 N 0 90s 00s 10s Source: Quest Offshore Resources June 2012
  23. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 23
    Subsea Tree Orders Forecast at Historically High Levels 1,000 80% Growth* 750 Tree Orders 500 250 0 '07 '08 '09 '10 '11 '12F '13F '14F '15F '16F * 2012-2016 vs. 2007-2011 Source: Quest Offshore Resources Mean Case…
  24. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 24
    Subsea Tree Orders Excluding Brazil Forecast at Historically High Levels 500 60% Growth Growth* 400 Tree Orders 300 200 100 0 '07 '08 '09 '10 '11 '12F '13F '14F '15F '16F * 2012-2016 vs. 2007-2011 Source: Quest…
  25. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 25
    29% Subsea Products Revenue by Business Segment Umbilicals & Field Development Hardware ROV Tooling & Work Packages Installation and Workover Control Systems YTD June 2012
  26. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 26
    Subsea Products Required for Every Subsea Completion Subsea Hardware Umbilicals Tooling Field Development IWOCS Connectors & Valves BOP Control Systems Highly Engineered Worldwide World ide Coverage Co erage
  27. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 27
    Subsea Products Backlog At Period End in millions 700 621 600 500 400 300 200 100 0 2007 2008 2009 2010 2011 2012* * June 2012
  28. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 28
    Operating Income Products 2012 Estimate 2011 in millions Actual Estimate 160 120 80 40 0 2007 2008 2009 2010 2011 2012E OII 2012 Guidance as of July 25, 2012
  29. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 29
    OII Summary Diversified OFS Company Leveraged g to Deepwater p and Subsea Completions p Leading Market Positions in Technical Niches Excellent Earnings, Liquidity and Cash Flow
  30. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 30
  31. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 31
    Supplemental Financial Information
  32. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 32
    EBITDA in millions Actual Low Estimate High Estimate 700 600 500 400 300 200 100 0 2007 2008 2009 2010 2011 2012* *2012 - 565MM-595MM 565MM 595MM Based on OII 2012 EPS Guidance as of July 25, 2012. See Next Slide For…
  33. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 33
    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…
  34. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 34
    OII Balance Sheet ((in millions)) Dec 31 D 31, Dec D 3131, Dec D 3131, Dec D 3131, Dec D 3131, Jun J 30, 30 2007 2008 2009 2010 2011 2012 Equity 915 968 1,224 1,390 1,558 1,625 Debt 200 229 120 0 120 125 Cash…
  35. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 35
    Business Segment Revenue % of Oilfield 90% ROV - 36% Products - 32% Asset Integrity - 18% Projects - 14% Oilfield Non-Oilfield YTD June 2012
  36. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 36
    Business Segment Operating Income % of Oilfield 96% ROV - 52% Products - 28% Asset Integrity - 10% Projects - 10% Oilfield Non-Oilfield YTD June 2012
  37. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 37
    Capital Expenditures: 2007-2011 1.4 Billion, Including g 400 Million on Acquisitions q ROV Subsea Products Asset Integrity Subsea Projects Other 2% 11% 18% 47% 22%
  38. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 38
    Supplemental Market Information
  39. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 39
    Oilfield ROV Fleet Ownership p Profile - December 2011 35% OII OII Subsea 7 267 Sonsub Fugro Canyon y Other 758 Vehicles Source: OII Estimates
  40. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 40
    OII ROV Fleet Geographic g p Profile June 2012 8 70 33 GOM 17 Africa Norway 38 Brazil U.K. 63 Asia/Pac 51 Can/Mex 280 Vehicles
  41. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 41
    Oilfield ROV Drill Support Market June 2012 OII Subsea 7 Fugro 58% Sonsub Other 268 Floating Rigs Contracted Source: IHS-Petrodata and OII Estimates
  42. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 42
    OII ROVs on Vessels Locations 10 GOM 20 Africa Norway Other 15 17 62 Vehicles June 2012
  43. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 43
    OII ROVs on Vessels Customers Operators 28 34 Contractors 62 Vehicles June 2012
  44. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 44
    Worldwide Umbilical Market Overview Forecasted at Historicallyy High g Levels Umbilicals Tree Orders 80% Growth* - Trees 1,000 60% Growth* - Umbilicals 3000 2500 750 Tree Orders KM Umbiliccal Orders -K 2000 500 1500…
  45. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 45
    Umbilical Products Thermoplastic Hose Umbilicals Steel Tube Umbilicals
  46. TUDOR PICKERING HOTTER N HELL ENERGY CONFERENCE – Oceaneering International – slide 46
    OIE Products Production Control Valves ROV Tooling g & Work Packages Installation Workover & Control Systems Connectors & Repair Systems Field Development Hardware

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