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RBC Capital Markets Conference – Oceaneering International

Oceaneering International · Jun 3, 2014 · 48 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. RBC Capital Markets 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. RBC Capital Markets 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. RBC Capital Markets Conference – Oceaneering International – slide 3
    Leading Market Position Remotely Operated Vehicles Ownership Drill Support Market Share OII - 304 OII 167 35% 59% Worldwide Fleet 283 Floating Rigs Contracted** 877 Vehicles* Source: OII Estimates - * December 2013; IHS…
  4. RBC Capital Markets Conference – Oceaneering International – slide 4
    Leading Market Position Specialty Subsea Products Umbilicals Tooling & Subsea Work Systems Installation and Workover Control Systems Subsea Hardware
  5. RBC Capital Markets 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. RBC Capital Markets 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 April 30, 2014
  7. RBC Capital Markets 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 April 30, 2014
  8. RBC Capital Markets 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. RBC Capital Markets 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 March 31, 2014: 106 MM Cash 90 MM Debt 2.1 B Equity EBITDA Reconciliation to Net Income is in…
  10. RBC Capital Markets Conference – Oceaneering International – slide 10
    Long-Term Deepwater Outlook Major Source of Future Oil Supply Exploration Success Bodes Well for the Future Drilling Intensity is Rising Source: ExxonMobil and Deutsche Bank,
  11. RBC Capital Markets 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. RBC Capital Markets Conference – Oceaneering International – slide 12
    5-Year OII Outlook Global Demand Growth Deepwater Drilling Field Development Inspection, Maintenance, and Repair (IMR)
  13. RBC Capital Markets 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. RBC Capital Markets Conference – Oceaneering International – slide 14
    Floating Rig Demand With 5-Year 5 Year Projection Projection, Assuming 50 Rigs Retired Up 45 400 17% Growth ontracted Flloating Rigss Assuming 10 Rigs Per Year are Retired 350 and 90% Rig Fleet Utilization 300 329 250…
  15. RBC Capital Markets Conference – Oceaneering International – slide 15
    Floating Rig Demand 5-Year 5 Year Averages, Averages Assuming 50 Rigs Retired & 90% Utilization Up 75 400 30% Growth ontracted Flloating Rigss 350 325 305 300 250 250 185 ear-End Co 200 150 Ye 100 End of…
  16. RBC Capital Markets Conference – Oceaneering International – slide 16
    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
  17. RBC Capital Markets Conference – Oceaneering International – slide 17
    Subsea Hardware Capex Forecast to Increase 80% in billions 125 117 100 75 65 50 25 0 2009-2013 2014-2018 Source: Douglas-Westwood, May 2014
  18. RBC Capital Markets Conference – Oceaneering International – slide 18
    Deepwater Fields Backlog Undeveloped Discoveries Fields 600m 600 500 400 300 200 100 0 2009 2010 2011 2012 2013 Source: IHS Petrodata
  19. RBC Capital Markets Conference – Oceaneering International – slide 19
    Offshore Construction Backlog Saipem Technip, Saipem, Technip and Subsea 7 in billions 30 25 20 15 10 5 0 2009 2010 2011 2012 2013 Source: Morgan Stanley Estimates and Company Filings
  20. RBC Capital Markets 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, May 2014
  21. RBC Capital Markets Conference – Oceaneering International – slide 21
    Subsea Installations Excluding Brazil Forecast at Historically High Levels 600 60% Growth 500 365 ns Installation 400 265 300 230 200 100 0 Source: Quest Offshore Resources Mean Case Forecast, May 2014
  22. RBC Capital Markets 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 5000 250 4000 200 3000 150 2000 100 1000 50 0 0 SS Completions SSP Op Inc Source: Quest…
  23. RBC Capital Markets 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, May 2014
  24. RBC Capital Markets 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. RBC Capital Markets 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. RBC Capital Markets Conference – Oceaneering International – slide 26
  27. RBC Capital Markets Conference – Oceaneering International – slide 27
    Supplemental Financial Information
  28. RBC Capital Markets 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 April 23, 2014 See Next Slide For…
  29. RBC Capital Markets 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. RBC Capital Markets 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, Mar M 31, 31 2009 2010 2011 2012 2013 2014 Equity 1,224 1,390 1,558 1,815 2,043 2,090 Debt 120 0 120 94 0 90 Cash…
  31. RBC Capital Markets Conference – Oceaneering International – slide 31
    Business Segments Revenue Operating Income 7% 2% 8% 15% 12% 31% 46% 16% 31% 32% ROV Subsea Products Subsea Projects A Asset t Integrity I t it Adtech YTD March 2014
  32. RBC Capital Markets Conference – Oceaneering International – slide 32
    Supplemental Market Information
  33. RBC Capital Markets 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. RBC Capital Markets Conference – Oceaneering International – slide 34
    OII ROV Fleet Geographic g p Profile March 2014 34 85 GOM 33 Africa Norway 35 Brazil Asia/Pac 76 Other 51 314 Vehicles
  35. RBC Capital Markets Conference – Oceaneering International – slide 35
    OII ROV Fleet Size 350 314 300 ount at Period End 250 200 150 Vehicle Co 100 125 50 0 March 31, 2014
  36. RBC Capital Markets Conference – Oceaneering International – slide 36
    Oilfield ROV Drill Support Market March 2014 OII Subsea 7 Fugro 59% Sonsub Other 283 Contracted Floating Rigs Source: IHS-Petrodata and OII Estimates
  37. RBC Capital Markets Conference – Oceaneering International – slide 37
    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 March 2014
  38. RBC Capital Markets Conference – Oceaneering International – slide 38
    High-Spec, Non-PBR Brazil Rig Fleet 116 Existing Rigs Under Contract OII ROV Contracts C t t on 79% 72 Rigs On Order Visibility of Significant Rig Fleet Growth OII Expects to Continue as Dominant ROV Provider OII ROV Contracts…
  39. RBC Capital Markets Conference – Oceaneering International – slide 39
    Subsea Products Backlog At Period End in millions 1,000 800 600 400 200 0 2009 2010 2011 2012 2013 2014 March 2014
  40. RBC Capital Markets Conference – Oceaneering International – slide 40
    Subsea Tree Orders Forecast at Historically High Levels Up 215 55% Growth 800 610 700 600 500 430 395 400 300 200 100 Source: Quest Offshore Resources Mean Case Forecast, May 2014
  41. RBC Capital Markets Conference – Oceaneering International – slide 41
    Subsea Tree Orders Excluding BRZ Forecast at Historically High Levels 75% Growth 500 465 355 400 ers Tree Orde 300 265 200 100 0 Source: Quest Offshore Resources Mean Case Forecast, May 2014
  42. RBC Capital Markets Conference – Oceaneering International – slide 42
    Subsea Installations Forecast at Historically High Levels Up 165 55% Growth 700 600 500 4 455 400 305 290 300 200 100 Source: Quest Offshore Resources Mean Case Forecast, May 2014
  43. RBC Capital Markets Conference – Oceaneering International – slide 43
    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…
  44. RBC Capital Markets Conference – Oceaneering International – slide 44
    Subsea Completions In Service Forecast at Historically High Levels Up 1375 30% Growth 6000 5000 4000 3000 2000 1000 0 Source: Quest Offshore Resources & OII SEC Filings, May 2014
  45. RBC Capital Markets Conference – Oceaneering International – slide 45
    Umbilical Products Thermoplastic Hose Umbilicals Steel Tube Umbilicals
  46. RBC Capital Markets Conference – Oceaneering International – slide 46
    OIE Products Production Control Valves Tooling g & Work Packages Installation Workover & Control Systems Connectors & Repair Systems Field Development Hardware
  47. RBC Capital Markets Conference – Oceaneering International – slide 47
    Annual Price Performance OII vs. vs OSX 2014 OII down 7% OSX up 5% OII OSX 125% 75% 25% -25% -75% *Through April 30, 2014: Based on Previous Year-End Purchases
  48. RBC Capital Markets Conference – Oceaneering International – slide 48
    Cumulative Price Performance OII vs. vs OSX 2014 OII down 7% OSX up 5% OII OSX 1000% 850% 700% 550% 400% 250% 100% -50% *Through April 30, 2014: Based on Previous Year-End Purchases

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