December 2, 2014 New York, NY M. Kevin McEvoy President & CEO Oceaneering International, Inc. Safe Harbor Statement
OII Participation in Offshore 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…
Offshore Life Cycle Business Exposure Revenue Mix 5% 15% 25% 55% Exploration Development Production Decommissioning Source: OII Estimates
WHY OII Leveraged to Deepwater and Subsea Completions Leading Market Positions ROVs and Specialty Subsea Products Good Project Execution Excellent Earnings, Liquidity and Cash Flow
Leveraged to Deepwater Projects Take Years to Develop Largely Oil Reservoirs With High g Production Flow Rates Well Capitalized Customer Base Investment Based on Long-Term Commodity Price
Leading Market Position Remotely Operated Vehicles Ownership Drill Support Market Share OII - 304 OII 168 35% 60% Worldwide Fleet 281 Floating Rigs Contracted** 877 Vehicles* Source: *OII Estimates - December 2013; **IHS…
Leading Market Position Specialty Subsea Products Umbilicals Tooling & Subsea Work Systems IInstallation t ll ti and d Workover Control Systems Subsea Hardware
Earnings Per Share Guidance 2014 Estimate 3.95 3 95 - 4.00; 4 00; 2015 Estimate 4 4.10 10 - 4.50 4 50 Actual Low Estimate High Estimate 5.00 4 00 4.00 Earnings per Share 3.00 2.00 E 1.00 0.00 2008 2009 2010…
2015 EPS Guidance Growth Compared to 2014 ROV Drilling and vessel-based projects Subsea S b P Products d t Tooling and installation and workover control system services Subsea Projects Deepwater intervention service activity…
Floating Rig Demand 5 Year Projection 5-Year 400 ng Rigs Up 30 10% Growth 350 d Contracted Floatin 312 300 282 250 Assuming 85% Rig Fleet Utilization and 50 Rigs are Retired or 200 Cold Stacked byy 2018 yyear end.…
Floating Rig Demand 5Y 5-Year P Projection j ti with ith 5 5-Year Y A Averages 400 Up 50 ng Rigs 20% Growth 350 d Contracted Floatin 300 300 250 250 185 Assuming 85% Rig Fleet Utilization 200 and 50 Rigs are…
Floating Rig Demand Development Drilling 5 Year Projections with 5 5-Year 5-Year Year Averages Average Annual % 70% 58% 60% 46% 46% 50% Increased to a High of 40% 55% in 13 vs. 44% in 12 30% 20% Source:…
Subsea Tree Orders Excl BRZ Forecast at Historicall Historically High Le els Levels Up 175 65% Growth G th 600 440 500 e Orders 355 400 Tree 265 300 200 100 Source: Quest Offshore Resources Mean Case…
Subsea Installations Excl BRZ Forecast at Historically High Levels Levels, 5 Year Averages 5-Year 600 500 Up p 100 40% Growth Installattions 400 330 265 300 230 200 100 Source: Quest Offshore Resources Mean Case…
Subsea Completions In Service - Excl BRZ Forecast at Historically High Levels Levels, 5 5-Year Year Averages Up 720 5000 25% Growth 4000 3 720 3,720 mpletions 3,000 Com 3000 2,040 2000 1000 Source: Quest…
Excellent Cash Flow EBITDA 845 845 MM Expected in 2014 746 MM in 2013 EBITDA 880 MM Expected in 2015 EBITDA Reconciliation to Net Income is in Supplemental Financial Information Slides
Bank & Public Debt Financing Bank Facilities 500 MM 5-Year, Revolver 300 MM 3-Year 3 Year, Delayed Delayed-Draw Draw Term Loan Senior S i N Notes t 500 MM, 4.650%, due 2024 Investment Grade Rated Moodys Baa2 Standard &…
Capital Allocation Priority O Organic ga c Cap Capital a Expenditures pe d u es Acquisitions Cash Dividends Share Repurchases 5.4 MM Remaining Shares Authorized 9/30/14
Capital Allocation 2014 YTD Through September O Organic ga c Cap Capital a Expenditures pe d u es 301 MM Acquisitions 40 MM Cash Dividends 89 MM Share Repurchases 237 MM 3.5 3 5 MM Shares
Capital Structure Targets Maintain a a Investment es e G Grade ade Debt eb Ratings a gs Net Debt to TTM EBITDA Ratio Between 1.0 X and 1.5 X
OII Summary Diversified OFS Company Leading Market Positions in Technical Niches Leveraged to Deepwater and Subsea Completions Excellent Earnings, Liquidity and Cash Flow
Supplemental pp Financial Information
EBITDA in millions Actual Low Estimate High g Estimate 1,000 900 800 700 600 500 400 300 200 100 0 *2014 - 845MM - 855MM; ** 2015 - 880MM-945MM Based on OII EPS Guidance as of October 29, 2014 See Next Slide For Non-GAAP…
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…
Business Segments Revenue Operating Income 7% 1% 8% 14% 13% 29% 41% 16% 34% 37% ROV Subsea Products Subsea Projects Asset Integrity Adtech YTD September 2014
Supplemental pp Market Information
Oilfield ROV Fleet Ownership Drill Support Market Share OII 304 OII 168 35% 60% OII Subsea 7 Fugro DOF Subsea S b Saipem C-Innovations Helix Technip Worldwide Fleet Other 281 Floating Rigs Contracted** 877 Vehicles*…
OII ROV Fleet Geographic Profile September 2014 34 34 94 32 58 80 GOM Africa Norway Brazil Asia/Pac Other 332 Vehicles
OII ROVs on Vessels September 2014 Locations Customers 14 23 39 49 24 27 GOM Africa Norway Other Operators Contractors 88 Vehicles
OII ROV Pricing and Fleet Utilization Revenue / Day on Hire Fleet Utilization 11,000 100% 9 000 9,000 90% 7,000 80% 5,000 70% 3,000 60% 1,000 50% *YTD September 2014
Rig Fleet, Non-PBR Brazil 221 Rigs Under Contract OII ROV Contracts on 67% OII ROV Contracts on 79% of Drillships/6th Gen Rigs 64 Rigs g On Order OII Has 14 of 17 ROV Contracts 47 Rigs Have ROV Contract Opportunities Remaining 5…
Subsea Products Backlog At Period End in millions 1,000 800 600 400 200 0 2009 2010 2011 2012 2013 2014 September 2014
Subsea Tree Orders - Global Forecast at Historically High Levels Levels, 5 5-Year Year Averages Up 170 40% G Growth th 700 565 600 e Orders 430 500 395 Tree 400 300 200 100 Source: Quest Offshore…
Subsea Installations - Global Forecast at Historically High Levels Levels, 5 5-Year Year Averages Up 100 30% 30% GGrowth th 700 600 Insttallations 500 410 400 305 310 300 200 100 Source: Quest Offshore…
Subsea Completions In Service - Global Forecast at Historically High Levels Levels, 5 5-Year Year Averages Up 970 7000 25% Growth 6000 4 930 4,930 mpletions 5000 3,960 Com 4000 2,720 3000 2000 1000…
5-Year Deepwater Outlook What To Expect Along The Way Some Project Approvals May Continue to be Delayed Approved Projects Cost C t Overruns O Production Start-Up Delays Technical Challenges Sheer S Volume off Projects Will…
OIE Products Production Control Valves Tooling & Subsea Work Systems Installation Workover & Control Systems Connectors & Repair Systems Field Development Hardware
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