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Howard Weil Energy Conference – Oceaneering International

Oceaneering International · Mar 25, 2014 · 50 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. Howard Weil Energy 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. Howard Weil Energy 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. Howard Weil Energy Conference – Oceaneering International – slide 3
    Leading Market Position Remotely Operated Vehicles Ownership Drill Support Market Share OII - 304 OII 160 35% 57% Worldwide Fleet 282 Floating Rigs Contracted** 877 Vehicles* Source: OII Estimates - * December 2013; IHS…
  4. Howard Weil Energy Conference – Oceaneering International – slide 4
    Leading Market Position Specialty Subsea Products Umbilicals Tooling & Subsea Work Systems Installation and Workover Control Systems Subsea Hardware
  5. Howard Weil Energy Conference – Oceaneering International – slide 5
    Earnings Per Share Guidance 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 2008 2009 2010 2011 2012 2013 2014E OII…
  6. Howard Weil Energy 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 2013 2014E Based on First Call Actuals and Mean Estimates as of February 28, 2014
  7. Howard Weil Energy 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 2013 2014E Based on First Call Actuals and Mean Estimates as of February 28, 2014
  8. Howard Weil Energy Conference – Oceaneering International – slide 8
    EPS Guidance Oilfield Business Segment Outlook SEGMENT OPERATING INCOME 2014 ROV 2013 Subsea Products 2013 Subsea Projects 2013 Asset Integrity 2013
  9. Howard Weil Energy Conference – Oceaneering International – slide 9
    Excellent Cash Flow & Liquidity EBITDA of 850 MM to 890 MM Expected in 2014 746 MM in 2013 Ample Resources to Invest in Growth At December 31, 2013: 91 MM Cash No Debt 2.0 B Equity EBITDA Reconciliation to Net Income is in…
  10. Howard Weil Energy 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. Howard Weil Energy Conference – Oceaneering International – slide 11
    Worldwide Deepwater Capex Forecast to More Than Double in billions DW Capex in Billions 300 250 260 200 150 100 113 50 0 2009-2013 2014-2018 Source: Douglas-Westwood, January 2014
  12. Howard Weil Energy Conference – Oceaneering International – slide 12
    5-Year OII Outlook Global Demand Growth Deepwater Drilling Field Development Inspection, Maintenance, and Repair (IMR)
  13. Howard Weil Energy Conference – Oceaneering International – slide 13
    Floating Rig Demand 400 ontracted Flloating Rigs s 350 90% Increase In Demand Since 2003 300 282 250 ear-End Co 200 147 150 Ye 100 at End of 2013: 314 Rigs in Fleet, 90% Fleet Utilization. Source:…
  14. Howard Weil Energy Conference – Oceaneering International – slide 14
    Floating Rig Demand With 5-Year 5 Year Projection, Projection Assuming 90% Rig Fleet Utilization Up 85 400 30% Growth ontracted Flloating Rigss 350 370 282 300 250 ear-End Co 200 150 Ye 100 at End of…
  15. Howard Weil Energy Conference – Oceaneering International – slide 15
    Floating Rig Demand With 5-Year 5 Year Projection Projection, Assuming 50 Rigs Retired Up 40 400 15% Growth ontracted Flloating Rigss Assuming 10 Older Rigs Per Year 350 are Retired and 90% Rig Fleet Utilization 282 300…
  16. Howard Weil Energy Conference – Oceaneering International – slide 16
    Floating Rig Demand 5-Year 5 Year Averages Up 70 400 Assuming A i 10 Old Older Ri Rigs P Per Y Year 28% Growth ontracted Flloating Rigss are Retired and 90% Rig Fleet 350 Utilization 303 320 300 250 250 185 ear-End…
  17. Howard Weil Energy Conference – Oceaneering International – slide 17
    Outlook for ROV Demand on Vessels 3.5 ating Rig 2.9 3.0 25 2.5 OVs per Floa 2.5 20 2.0 Global RO 1.5 1.0 Year End Source: Oceaneering Estimates and IHS-Petrodata
  18. Howard Weil Energy Conference – Oceaneering International – slide 18
    Deepwater Fields Backlog Undeveloped Discoveries Fields 600m 600 500 400 300 200 100 0 Source: IHS Petrodata
  19. Howard Weil Energy Conference – Oceaneering International – slide 19
    Offshore Construction Backlog Saipem Technip, Saipem, Technip and Subsea 7 in billions 30 25 20 15 10 5 0 Source: Morgan Stanley Estimates and Company Filings
  20. Howard Weil Energy Conference – Oceaneering International – slide 20
    Subsea Tree Orders Forecast at Historically High Levels 800 700 600 500 400 300 200 100 Source: Quest Offshore Resources Mean Case Forecast, February 2014
  21. Howard Weil Energy Conference – Oceaneering International – slide 21
    Subsea Installations Excluding Brazil Forecast at Historically High Levels 600 55% Growth 500 370 ns Installation 400 265 235 300 200 100 0 Source: Quest Offshore Resources Mean Case Forecast, February 2014
  22. Howard Weil Energy Conference – Oceaneering International – slide 22
    Subsea Completions In Service, Excl BRZ vs Subsea Products Operating Income (SSP Op Inc) vs. Annual SSP Op Inc in millions 4000 250 200 3000 150 2000 100 1000 50 0 0 SS Completions SSP Op Inc Source: Quest Offshore…
  23. Howard Weil Energy Conference – Oceaneering International – slide 23
    Subsea Completions In Service, Excl BRZ Forecast at Historically High Levels Up 1000 30% Growth 5000 4000 3000 2000 1000 0 Source: Quest Offshore Resources & OII SEC Filings, February 2014
  24. Howard Weil Energy Conference – Oceaneering International – slide 24
    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…
  25. Howard Weil Energy Conference – Oceaneering International – slide 25
    OII Summary Diversified OFS Company Leading g Market Positions in Technical Niches Leveraged to Deepwater and Subsea Completions Excellent Earnings, Liquidity and Cash Flow
  26. Howard Weil Energy Conference – Oceaneering International – slide 26
  27. Howard Weil Energy Conference – Oceaneering International – slide 27
    Supplemental Financial Information
  28. Howard Weil Energy Conference – Oceaneering International – slide 28
    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 2013 2014E* *2014 - 850MM - 890MM Based on OII EPS Guidance as of February 18, 2014 See Next Slide…
  29. Howard Weil Energy Conference – Oceaneering International – slide 29
    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…
  30. Howard Weil Energy Conference – Oceaneering International – slide 30
    OII Balance Sheet ((in millions)) Dec 31 D 31, Dec 31 D 31, Dec D 3131, Dec D 3131, Dec D 3131, Dec D 3131, 2008 2009 2010 2011 2012 2013 Equity 968 1,224 1,390 1,558 1,815 2,043 Debt 229 120 0 120 94 0 Cash 11…
  31. Howard Weil Energy Conference – Oceaneering International – slide 31
    Business Segments Revenue Operating Income 9% 4% 8% 15% 30% 14% 41% 15% 31% 33% ROV Subsea Products Subsea Projects A Asset t Integrity I t it Adtech YTD December 2013
  32. Howard Weil Energy Conference – Oceaneering International – slide 32
    Supplemental Market Information
  33. Howard Weil Energy Conference – Oceaneering International – slide 33
    Oilfield ROV Fleet Ownership p Profile - December 2013 35% OII OII - 304 Subsea 7 Fugro DOF Subsea Saipem CI C-Innovations ti Helix Technip Other 877 Vehicles Source: OII Estimates
  34. Howard Weil Energy Conference – Oceaneering International – slide 34
    OII ROV Fleet Geographic g p Profile - December 2013 33 81 GOM 33 Africa Norway 36 Brazil Asia/Pac 68 Other 53 304 Vehicles
  35. Howard Weil Energy Conference – Oceaneering International – slide 35
    Oilfield ROV Drill Support Market December 2013 OII Subsea 7 57% Fugro Sonsub Other 282 Contracted Floating Rigs Source: IHS-Petrodata and OII Estimates
  36. Howard Weil Energy Conference – Oceaneering International – slide 36
    OII ROVs on Vessels Locations 15 GOM 23 Africa Norway 15 Other 19 72 Vehicles December 2013
  37. Howard Weil Energy Conference – Oceaneering International – slide 37
    OII ROVs on Vessels Customers Operators Contractors 32 40 72 Vehicles December 2013
  38. Howard Weil Energy Conference – Oceaneering International – slide 38
    OII ROV Fleet Size 325 304 ount at Period End 260 195 130 Vehicle Co 125 65 0 December 31, 2013
  39. Howard Weil Energy Conference – Oceaneering International – slide 39
    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 December 2013
  40. Howard Weil Energy Conference – Oceaneering International – slide 40
    High-Spec, Non-PBR Brazil Rig Fleet 109 Existing Rigs Under Contract OII ROV Contracts on 80% 73 Rigs On Order Visibility of Significant Rig Fleet Growth OII Expects to Continue as Dominant ROV Provider OII ROV Contracts on 18…
  41. Howard Weil Energy Conference – Oceaneering International – slide 41
    Subsea Products Backlog At Period End in millions 1,000 800 600 400 200 0 2008 2009 2010 2011 2012 2013 December 2013
  42. Howard Weil Energy Conference – Oceaneering International – slide 42
    Subsea Tree Orders 5-Year 5 Year Averages Up 235 60% Growth 800 700 630 600 500 430 395 400 300 200 100 Source: Quest Offshore Resources Mean Case Forecast, February 2014
  43. Howard Weil Energy Conference – Oceaneering International – slide 43
    Subsea Tree Orders Excl BRZ 5-Year 5 Year Averages 70% Growth 500 455 355 400 ers Tree Orde 300 265 200 100 0 Source: Quest Offshore Resources Mean Case Forecast, February 2014
  44. Howard Weil Energy Conference – Oceaneering International – slide 44
    Subsea Tree Installations 5-Year 5 Year Averages Up 195 65% Growth 700 600 490 500 400 305 295 300 200 100 Source: Quest Offshore Resources Mean Case Forecast, February 2014
  45. Howard Weil Energy Conference – Oceaneering International – slide 45
    Subsea Completions In Service vs Subsea Products Operating Income (SSP Op Inc) vs. Annual SSP Op Inc in millions 5000 250 4000 200 3000 150 2000 100 1000 50 0 0 SS Completions SSP Op Inc Source: Quest Offshore…
  46. Howard Weil Energy Conference – Oceaneering International – slide 46
    Subsea Completions In Service Forecast at Historically High Levels Up 1500 35% Growth 6000 5000 4000 3000 2000 1000 0 Source: Quest Offshore Resources & OII SEC Filings, February 2014
  47. Howard Weil Energy Conference – Oceaneering International – slide 47
    Umbilical Products Thermoplastic Hose Umbilicals Steel Tube Umbilicals
  48. Howard Weil Energy Conference – Oceaneering International – slide 48
    OIE Products Production Control Valves Tooling g & Work Packages Installation Workover & Control Systems Connectors & Repair Systems Field Development Hardware
  49. Howard Weil Energy Conference – Oceaneering International – slide 49
    Annual Price Performance OII vs. vs OSX (Oilfield Service Index) 2014 OII down 9% OSX flat OII OSX 125% 75% 25% -25% -75% *Through February 28, 2014: Based on Previous Year-End Purchases
  50. Howard Weil Energy Conference – Oceaneering International – slide 50
    Cumulative Price Performance OII vs. vs OSX (Oilfield Service Index) 2014 OII down 9% OSX flat OII OSX 1000% 850% 700% 550% 400% 250% 100% -50% *Through February 28, 2014: Based on Previous Year-End Purchases

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