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UBS SECURITIES – Oceaneering International

Oceaneering International · May 24, 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. UBS SECURITIES – Oceaneering International – slide 1
    WHY OII Leveraged to Deepwater Secular Growth Positioned to Rebound Leading Market Positions ROVs and Specialty Subsea Products Excellent Earnings, Liquidity and Cash Flow
  2. UBS SECURITIES – 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. UBS SECURITIES – 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. UBS SECURITIES – 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. UBS SECURITIES – Oceaneering International – slide 5
    Earnings Per Share Guidance 2011 Estimate 1.83 1 83 - 1.95 1 95 Actual Low Estimate High Estimate 2.50 hare 2.00 Earnings Per Sh 1.50 1.00 0.50 0.00 2007 2008 2009 2010 2011E OII 2011 Guidance Range as of April…
  6. UBS SECURITIES – Oceaneering International – slide 6
    Combined EPS OSX Companies Excluding OII Actual Consensus Estimate 75 hare 60 Earnings Per Sh 45 30 15 0 2007 2008 2009 2010 2011E 2011E Based on First Call Mean Estimates as of April 29, 2011.
  7. UBS SECURITIES – Oceaneering International – slide 7
    Relative EPS Performance To Recent 2008 OSX Peak OII OSX w/o OII 10% 0% -10% -20% -30% -40% -50% 2008 2009 2010 2011E 2011E Based on First Call Actuals and Mean Estimates as of April 29, 2011.
  8. UBS SECURITIES – 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. UBS SECURITIES – Oceaneering International – slide 9
    Excellent Liquidity & Cash Flow March 31, 2011 187 MM in Cash 300 MM Revolving Credit Available Over 435 MM of EBITDA Expected in 2011 Ample Resources to Invest in Growth EBITDA Reconciliation to Net Income is in Supplemental…
  10. UBS SECURITIES – Oceaneering International – slide 10
    Plans For Cash Organic Growth Acquisitions Regular Quarterly Dividend Share Repurchases p
  11. UBS SECURITIES – Oceaneering International – slide 11
    Acquisition Targets Within our Market Niches Expand E dSSubsea b P Products d t International Focus Reasonably Priced Accretive to Earnings
  12. UBS SECURITIES – Oceaneering International – slide 12
    Norse Cutting & Abandonment Acquisition Closed March 31, 2011 56 MM P Purchase h P Price i Subsea Products Expansion Increase Tooling Product Line Enhance Ability to Participate Multi-String in P&A and Decommissioning of…
  13. UBS SECURITIES – Oceaneering International – slide 13
    Worldwide Deepwater Discoveries Over Two Two-Thirds Thirds to be Developed 600 530 500 400 Evaluation 377 Development 300 Production 200 100 237 153 0 Production Eval. / Dev. Source: ODS-Petrodata March 2011 Deepwater…
  14. UBS SECURITIES – Oceaneering International – slide 14
    Floating Rig Supply and Demand Floater Demand Floating Rigs Available 300 258 of Rigs 250 Average o 224 200 Quarterly A 150 At March 31 Supply 263 Demand 231 Q 100 2000 2001 2002 2003 2004 2005 2006 2007…
  15. UBS SECURITIES – Oceaneering International – slide 15
    Floating Rig Fleet Expansion: 2011 - 2014 70 Rigs On Order at March 31, 2011 36 Contracted Average length 7 years 27 Expected to be Placed In Service in 2011 5 In Service in Q1 Source: OII Estimates Based On ODS-Petrodata…
  16. UBS SECURITIES – Oceaneering International – slide 16
    Remotely Operated Vehicles 35% Revenue by Business Segment March 2011
  17. UBS SECURITIES – Oceaneering International – slide 17
    OII ROV Fleet Size 300 260 eriod End 250 200 Vehicle Count Pe 150 100 125 50 0 March 2011
  18. UBS SECURITIES – Oceaneering International – slide 18
    ROV Operating Leverage Revenue / Day on Hire Fleet Utilization 11,000 100% 9,000 80% 7,000 60% 5,000 40% 3,000 20% 1,000 0%
  19. UBS SECURITIES – Oceaneering International – slide 19
    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 4 in Q1
  20. UBS SECURITIES – Oceaneering International – slide 20
    Operating Income ROV 2011Estimate 2010 Actual Estimate (in millions) 250 200 150 100 50 0 2007 2008 2009 2010 2011E OII 2011 Guidance Range as of April 27, 2011.
  21. UBS SECURITIES – Oceaneering International – slide 21
    Worldwide Subsea Completions This Decade Expected to Grow 55% 55% Completed Estimated 6,000 mpletions 5,000 4823 Subsea Com 4,000 4535 3071 3,000 Number of S 2,000 1111 1,000 N 0 90s 00s 10s Source:…
  22. UBS SECURITIES – Oceaneering International – slide 22
    Subsea Tree Orders Forecasted at Historically High Levels 1000 40% Growth* 800 ders Tree Ord 600 400 200 0 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11F '12F '13F '14F * 2011-2014 vs 2007-2010 Source: Quest…
  23. UBS SECURITIES – Oceaneering International – slide 23
    Subsea Products 33% Revenue by Business Segment ROV Tooling & Work Packages Umbilicals Field e d Development e e op e t Hardware March 2011
  24. UBS SECURITIES – Oceaneering International – slide 24
    Subsea Products Required for Every Subsea Completion Subsea Hardware Umbilicals ROV Tooling Field Development IWOCS Connectors & Valves BOP Control Systems Highly Engineered Worldwide Coverage
  25. UBS SECURITIES – Oceaneering International – slide 25
    Additional Subsea Product Opportunities Macondo Incident Safety Concerns ROV Tooling Hot Stabs with Higher Flow Rates Hot Stab Receptacles & Valves ROV Accumulator Reservoir Skid ROV Accumulator Reservoir Skids Backup Accumulator…
  26. UBS SECURITIES – Oceaneering International – slide 26
    Subsea Products Backlog At Period End 400 382 300 ns Million 200 100 0 2006 2007 2008 2009 2010 2011 Q1
  27. UBS SECURITIES – Oceaneering International – slide 27
    Operating Income Products 2011Estimate 2010 Actual Estimate (in millions) 120 100 80 60 40 20 0 2007 2008 2009 2010 2011E OII 2011 Guidance Range as of April 27, 2011.
  28. UBS SECURITIES – Oceaneering International – slide 28
    OII Summary Diversified OFS Company Leveraged Le eraged to Deep Deepwater ater Leading Market Positions in Technical Niches Excellent Earnings, Liquidity and Cash Flow
  29. UBS SECURITIES – Oceaneering International – slide 29
  30. UBS SECURITIES – Oceaneering International – slide 30
    Supplemental Financial Information
  31. UBS SECURITIES – Oceaneering International – slide 31
    EBITDA Actual Low Estimate High Estimate 500 400 s) ( millions 300 200 100 0 2007 2008 2009 2010 2011* *2011 - 435MM-465MM, Based on OII EPS Guidance Range April 27, 2011. See Next Slide For Non-GAAP…
  32. UBS SECURITIES – 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. UBS SECURITIES – Oceaneering International – slide 33
    OII Balance Sheet ((in millions)) Dec 31 D 31, Dec 31 D 31, Dec 31 D 31, Dec 31 D 31, Mar 31, M 31 2007 2008 2009 2010 2011 E it Equity 915 968 1 224 1,224 1 390 1,390 1 456 1,456 Debt 200 229 120 0 0 Cash 27 11 162 245…
  34. UBS SECURITIES – Oceaneering International – slide 34
    Capital Expenditures: 2010 90% on ROVs, Subsea Products, and Subsea Projects j ROV Subsea Products Subsea Projects Other 6% 21% 53% 20%
  35. UBS SECURITIES – Oceaneering International – slide 35
    Business Segment Revenue % of Oilfield 89% ROV - 39% Products - 38% 85% Projects - 9% Inspection - 14% Oilfield Non Oilfield March 2011
  36. UBS SECURITIES – Oceaneering International – slide 36
    Business Segment Operating Income % of Oilfield 97% ROV - 56% Products - 33% 90% Projects - 4% Inspection - 7% Oilfield Non Oilfield March 2011
  37. UBS SECURITIES – Oceaneering International – slide 37
    Supplemental Market Information
  38. UBS SECURITIES – 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. UBS SECURITIES – Oceaneering International – slide 39
    OII ROV Fleet Geographic g p Profile March 2011 9 65 GOM 29 16 Africa Norway 37 Brazil 54 UK U.K. 50 Asia/Pac Other NA 260 Vehicles March 2011
  40. UBS SECURITIES – Oceaneering International – slide 40
    Oilfield ROV Drill Support Market March 2011 OII Subsea 7 61% Fugro Sonsub Other 177 Floating Rigs In Service Source: ODS-Petrodata and OII Estimates .
  41. UBS SECURITIES – Oceaneering International – slide 41
    OII ROV Fleet Construction/Field Maintenance Locations 3 GOM Africa 16 Norway 13 Other 13 45 Vehicles March 2011
  42. UBS SECURITIES – Oceaneering International – slide 42
    OII ROV Fleet Construction/Field Maintenance Customers 19 Operators 26 Contractors 45 Vehicles March 2011
  43. UBS SECURITIES – Oceaneering International – slide 43
    Worldwide Umbilical Market Overview Forecasted at Historicallyy High g Levels Umbilicals Tree Orders 40% Growth* - Trees 70% Growth* - Umbilicals 750 3,000 Umbilical Ordeers - KM Tree Ordeers 500 2,000 250 1,000…
  44. UBS SECURITIES – Oceaneering International – slide 44
    Umbilical Products Thermoplastic Hose Umbilicals Steel Tube Umbilicals
  45. UBS SECURITIES – 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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