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COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International

Oceaneering International · Dec 3, 2013 · 47 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. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – 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. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP 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. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 3
    Leading Market Position Remotely Operated Vehicles Ownership Drill Support Market Share OII 289 OII 163 36% 59% Worldwide Fleet 278 Floating Rigs Contracted** 803 Vehicles* Source: OII Estimates - * December 2012, **…
  4. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 4
    Leading Market Position Specialty Subsea Products Umbilicals Tooling & Subsea Work Systems Installation and Workover Control Systems Subsea Hardware
  5. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 5
    Earnings Per Share Guidance 2013 Estimate 3 3.35 35 - 3.40; 3 40; 2014 Estimate 3 3.90 90 - 4.10 4 10 Actual Low Estimate High Estimate 4.50 4.00 3.50 Earnings per Share 3.00 2.50 2.00 1.50 1.00 0 50 0.50 0.00…
  6. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 6
    Combined EPS OSX Companies Excluding OII Actual Consensus Estimate 80 60 Earnings per Share 40 20 0 2008 2009 2010 2011 2012 2013E 2014E Based on First Call Actuals and Mean Estimates as of October 31, 2013
  7. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – 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 October 31, 2013
  8. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 8
    EPS Guidance Oilfield Business Segment Outlook SEGMENT OPERATING INCOME 2013 2014 ROV 2012 2013 Subsea Products 2012 2013 Subsea Projects 2012 2013 Asset Integrity 2012 2013
  9. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 9
    Excellent Cash Flow & Liquidity EBITDA of 735 MM to 745 MM Expected in 2013 601 MM in 2012 EBITDA off 845 MM to 880 MM Expected in 2014 Ample Resources to Invest in Growth At September 30, 2013: 102 MM Cash 40 MM Debt 2.0 B…
  10. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 10
    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
  11. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 11
    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
  12. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 12
    5-Year OII Outlook Global Demand Growth Deepwater Drilling Field Development Inspection, I ti Maintenance, M i t and dRRepair i (IMR)
  13. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 13
    Floating Rig Demand 300 ontracted Flloating Rigs s 271 250 85% Increase In Demand Since 2003 200 ear-End Co 150 147 Ye 100 End of 2012: 301 Rigs in Fleet, 90% Fleet Utilization. Source: IHS-Petrodata at…
  14. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 14
    Floating Rig Demand With 5-Year 5 Year Projection, Projection Assuming 90% Rig Fleet Utilization 400 Up p 90 ontracted Flloating Rigss 33% Growth 350 360 300 250 271 ear-End Co 200 150 Ye 100 Source:…
  15. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 15
    Floating Rig Demand 5-Year 5 Year Averages Up 95 40% Growth 400 ontracted Flloating Rigss 330 350 300 235 250 175 ear-End Co 200 150 Ye 100 Source: IHS-Petrodata and OII Estimates at September 30, 2013
  16. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 16
    Outlook for ROV Demand on Vessels 3.5 3.0 30 ating Rig 3.0 2.5 2.4 OVs per Floa 2.0 1.5 Global RO 1.0 0.5 0.0 Year End Source: Oceaneering Estimates and IHS-Petrodata
  17. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 17
    Outlook for Global ROV Demand To Meet Visible Requirements Total Demand 270 Additional Vehicles More than 35% Growth OII Expects 95 100 Vehicles of Total Demand 55 to 60 to Support Drilling by the End of 2017 Source:…
  18. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 18
    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
  19. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 19
    Deepwater Fields Backlog Undeveloped Discoveries Fields 600m fsw 600 500 400 300 200 100 0 Source: IHS Petrodata
  20. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 20
    Offshore Construction Backlog Saipem Technip, Saipem, Technip and Subsea 7 in billions 30 25 20 15 10 5 0 Source: Morgan Stanley and Company Filings, June 2013
  21. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 21
    Subsea Tree Orders Forecast at Historically High Levels 800 700 600 500 400 300 200 100 Source: Quest Offshore Resources Mean Case Forecast, November 2013
  22. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 22
    Subsea Tree Orders 5-Year 5 Year Averages Up 235 65% Growth 800 700 605 600 390 370 500 400 300 200 100 Source: Quest Offshore Resources Mean Case Forecast, November 2013
  23. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 23
    Subsea Tree Installations 5-Year 5 Year Averages 700 Up 150 50% Growth 600 500 450 400 300 300 300 200 100 Source: Quest Offshore Resources Mean Case Forecast, November 2013
  24. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 24
    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…
  25. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 25
    Subsea Completions In Service Forecast at Historically High Levels Up 1400 35% Growth 6000 5000 4000 3000 2000 1000 0 Source: Quest Offshore Resources Mean Case Forecast, November 2013
  26. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 26
    5-Year Deepwater Outlook What To Expect Along The Way Some Project Approvals May Continue Moving to the Right Approved Projects Cost Overruns Production Start-Up Delays Technical Challenges Sheer Volume of Projects Will Still…
  27. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 27
    OII Summary Diversified OFS Company Leading g Market Positions in Technical Niches Leveraged to Deepwater and Subsea Completions Excellent Earnings, Liquidity and Cash Flow
  28. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 28
  29. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 29
    Supplemental Financial Information
  30. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 30
    EBITDA in millions Actual Low Estimate High Estimate 1,000 900 800 700 600 500 400 300 200 100 0 2008 2009 2010 2011 2012 2013E* 2014E* *2013 - 735MM - 745MM; *2014 - 845MM - 880MM Based on OII 2013 EPS Guidance as of…
  31. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP 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. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 32
    OII Balance Sheet ((in millions)) Dec 31 D 31, Dec 31 D 31, Dec D 3131, Dec D 3131, Dec D 3131, Sep S 30, 30 2008 2009 2010 2011 2012 2013 Equity 968 1,224 1,390 1,558 1,815 1,978 Debt 229 120 0 120 94 40 Cash…
  33. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 33
    Business Segments Revenue Operating Income 9% 5% 9% 41% 30% 15% 13% 15% 31% 32% ROV Subsea Products Subsea Projects A Asset t Integrity I t it Adtech YTD September 2013
  34. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 34
    Supplemental Market Information
  35. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 35
    Oilfield ROV Fleet Ownership p Profile - December 2012 36% OII OII 289 Subsea 7 Sonsub Fugro Canyon Technip C-Innovations DOF Subsea Other 803 Vehicles Source: OII Estimates
  36. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 36
    OII ROV Fleet Geographic g p Profile - September p 2013 40 76 GOM 33 Africa Norway 35 Brazil 64 Asia/Pac Other 54 302 Vehicles
  37. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 37
    Oilfield ROV Drill Support Market September p 2013 OII Subsea 7 Fugro 59% Sonsub Other 278 Contracted Floating Rigs Source: IHS-Petrodata and OII Estimates
  38. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 38
    OII ROVs on Vessels Locations 19 GOM 22 Africa Norway Other 17 15 73 Vehicles September 2013
  39. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 39
    OII ROVs on Vessels Customers Operators 36 Contractors 37 73 Vehicles September 2013
  40. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 40
    OII ROV Fleet Size 325 302 ount at Period End 260 195 130 Vehicle Co 125 65 0 September 30, 2013
  41. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 41
    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 September 2013
  42. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 42
    High-Spec, Non-PBR Brazil Rig Fleet 103 Existing Rigs Under Contract OII ROV Contracts on 80% 72 Rigs On Order Visibility of Significant Rig Fleet Growth OII Expects to Continue as Dominant ROV Provider OII ROV Contracts on 23…
  43. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 43
    Subsea Products Backlog At Period End in millions 1,000 800 600 400 200 0 2008 2009 2010 2011 2012 2013 September 2013
  44. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 44
    Umbilical Products Thermoplastic Hose Umbilicals Steel Tube Umbilicals
  45. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 45
    OIE Products Production Control Valves Tooling g & Work Packages Installation Workover & Control Systems Connectors & Repair Systems Field Development Hardware
  46. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 46
    Annual Price Performance OII vs. vs OSX (Oilfield Service Index) 2013 OII up 60% OSX up 29% OII OSX 125% 75% 25% -25% -75% *Through October 31, 2013: Based on Previous Year-End Purchases
  47. COWEN AND COMPANY 3RD ANNUAL ULTIMATE OIL SERVICES AND EP CONFERENCE – Oceaneering International – slide 47
    Cumulative Price Performance OII vs. vs OSX (Oilfield Service Index) 2013 OII up 60% OSX up 29% OII OSX 1300% 1150% 1000% 850% 700% 550% 400% 250% 100% -50% *Through October 31, 2013: Based on Previous Year-end…

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