5th Annual Ultimate Energy Conference Cowen and Company December 1, 2015 New York, NY M. Kevin McEvoy Chief Executive Officer Oceaneering International, Inc. Safe Harbor Statement Statements we make in this presentation that…
OII in the Offshore Oilfield Life Cycle PHASE EXPLORATION DEVELOPMENT PRODUCTION DECOMMISSIONING 1 Market of Operating Subsea Tree Subsea Trees of Field Driver Floating Drilling Rigs Installations In Service Abandonments Business…
OII Offshore Life Cycle Business Exposure Revenue Mix 5% 15% 25% 55% Exploration Development Production Decommissioning Source: OII Estimates
Earnings Per Share Guidance 2015 Estimate 2 2.60 60 to 2 2.66 66 Actual Low Estimate High Estimate 5.00 4.00 Earnings per Share 3.00 2 00 2.00 1.00 0.00 2008 2009 2010 2011 2012 2013 2014 2015E OII 2015…
Relative EPS Performance To 2008 OSX Peak OII OSX w/o OII 150% 125% Relative to: 100% 2008 Up 55% 2014 Down 30% 75% 50% 25% 0% Relative to: -25% 2008 Down 55% 2014 Down 40% -50% -75% 2008 2009 2010 2011 2012 2013 2014…
Cost-Cutting Initiatives Partnering with Customers and Suppliers to Find Cost Effective Solutions Right-Sizing Workforce Reducing Training Expenses Obtaining Supplier Price Concessions Reducing Incentive & Deferred…
2015 Capital Sources & Allocations Current Sources Potential Allocations Cash C h att Sept S t 30, 30 2015 Organic O i Cap C EEx 271 MM 200 MM to 250 MM Estimated 2015 EBITDA Acquisitions 640 MM 230 MM & More Bank Revolver…
Strong Free Cash Flow in millions 2015 YTD YTD* Net Income for the Period 204 Cash Flows from Operating Activities 373 P h Purchases off Property P t and d Equipment E i t (139) Free Cash Flow 234 Free Cash Flow as %…
2016 Earnings Outlook Less Than 2015 Projected Earnings Additional Customer Spending Cuts Reductions in Offshore Activities, including Fewer Contracted Floating Rigs
Long Term: Offshore is Essential Deepwater Remains Significant Incremental Bbls Existing Fields Bbls Source of 90 Additional 29Mm B/D Crude Production 80 4.31 d Condensate e 9 35 9.35 70 4.74 MB/D MM 60 Crude…
OII Summary Challenging Time Well Positioned for Inevitable Rebound Intend to Continue Investing for the Future & Returning Capital to Our Shareholders Deepwater Focus Remains Sound Long-Term Prospects Are Promising
Supplemental Financial Information
EBITDA in millions Actual Low Estimate High Estimate 1,000 900 800 700 600 500 400 300 200 100 0 * 2015 - 640 MM-660 MM Based on OII EPS Guidance as of October 28, 2015 See Next Slide For Non-GAAP Reconciliation…
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…
Free Cash Flow Free Cash Flow (FCF) is a non-GAAP financial measurement. FCF represents cash flow from operations less organic capital expenditures (i.e., capital expenditures excluding those for business acquisitions or other…
Business Segments Revenue Operating Income 11% 4% 3% 27% 12% 19% 41% 20% 30% 33% ROV Subsea Products Subsea Projects Asset Integrity Adtech September YTD 2015
Supplemental Market Information
Rig Fleet, Non-PBR Brazil at September 30, 30 2015 173 Rigs Under Contract OII on 65% OII on 75% of Drillships/6th Gen Rigs 47 Rigs On Order 8 Rigs Have Operator Contracts 7 ROV Contracts - OII 1 ROV Contract - Competitor 39…
Floating Rig Demand History 300 ontracted Flloating Rigss 275 250 200 ear-End Co Demand at Sept 30, 2015 - 222 150 Ye 100 Source: IHS-Petrodata
Leading Market Position Remotely Operated Vehicles Ownership Drill Support Market Share OII - 336 OII 127 36% 57% Worldwide Fleet 222 Floating Rigs Contracted** 937 Vehicles* Source: *OII Estimates - December 2014; **IHS…
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