BARCLAYS CEO ENERGY-POWER CONFERENCE SEPTEMBER 3, 2014 NEW YORK, NY
WHY OII Leveraged to Deepwater and Subsea Completions Leading Market Positions ROVs ROV and d Specialty S i lt Subsea S b Products P d t Good Project Execution Excellent Earnings, Liquidity and Cash Flow
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
Leading Market Position Remotely Operated Vehicles Ownership Drill Support Market Share OII - 304 OII 170 35% 60% Worldwide Fleet 284 Floating Rigs Contracted** 877 Vehicles* Source: * OII Estimates - December 2013; **IHS…
High-Spec, Non-PBR Brazil Rig Fleet 120 Existing Rigs Under Contract OII ROV Contracts C t t on 80% 68 Rigs On Order OII Expects to Continue as Dominant ROV Provider OII ROV Contracts on 19 of 21 Awards 47 ROV Contract…
Leading Market Position Specialty Subsea Products Umbilicals Tooling & Subsea Work Systems Installation and Workover Control Systems Subsea Hardware
EPS Guidance Oilfield Business Segment Outlook SEGMENT OPERATING INCOME 2014 ROV 2013 Subsea Products 2013 Subsea Projects 2013 Asset Integrity 2013
Excellent Cash Flow & Liquidity EBITDA of 855 MM to 875 MM Expected in 2014 746 MM in 2013 Ample Resources to Invest in Growth At June 30, 2014: 103 MM Cash 80 MM Debt 2.2 B Equity EBITDA Reconciliation to Net Income is in…
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,
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
5-Year OII Outlook Global Demand Growth Deepwater Drilling Field Development Inspection, Maintenance, and Repair (IMR)
Floating Rig Demand 400 ontracted Flloating Rigs s 90% Increase In Demand Since 2003 350 300 282 250 ear-End Co 200 147 150 Ye 100 at End of 2013: 314 Rigs in Fleet, 90% Fleet Utilization. Source:…
2014 Floating Rig Market As of June 30 284 Rigs Under Contract Up Two Year To Date 10 Rigs g Added to Fleet in First Half All Contracted Fleet Utilization was 88% 90% at the end of 2013 19 Ri Rigs S Scheduled h d l d tto b…
Floating Rig Demand 5-Year 5 Year Projection Assuming 10 Rigs Per Year are Retired or Cold Stacked and 85% Rig Fleet Utilization 400 ontracted Flloating Rigss Up 30 10% Growth 350 311 300 282 250 ear-End Co 200…
Floating Rig Demand 5-Year 5 Year Projection with 5-Year 5 Year Averages Assuming 10 Rigs Per Year are Retired or Cold Stacked and 85% Rig Fleet Utilization 400 ontracted Flloating Rigss Up 55 20% Growth 350 305 300 250…
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
5-Year Deepwater Outlook What To Expect Along The Way Some Project Approvals May Continue to be Dela ed Delayed Approved Projects Cost Overruns Production Start-Up Delays Technical Challenges Sheer Volume of Projects Will…
Offshore Construction Backlog Saipem Technip, Saipem, Technip and Subsea 7 in billions 40 35 30 25 20 15 10 5 0 2009 2010 2011 2012 2013 2014* * June 2014 Source: Morgan Stanley Estimates and Company Filings
Subsea Tree Orders Forecast at Historically High Levels 800 700 600 500 400 300 200 100 Source: Quest Offshore Resources Mean Case Forecast, August 2014
Subsea Tree Orders Excluding BRZ Forecast at Historically High Levels 600 500 ers 400 Tree Orde 300 200 100 0 Source: Quest Offshore Resources Mean Case Forecast, August 2014
Subsea Installations Excluding BRZ Forecast at Historically High Levels 500 50% Growth 400 340 ns Installation 300 265 230 200 100 0 Source: Quest Offshore Resources Mean Case Forecast, August 2014
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: OII SEC…
Subsea Completions In Service, Excl BRZ Forecast at Historically High Levels Up 900 25% Growth 5000 4000 3000 2000 1000 0 Source: Quest Offshore Resources & OII SEC Filings, August 2014
OII Summary Diversified OFS Company Leading g Market Positions in Technical Niches Leveraged to Deepwater and Subsea Completions Excellent Earnings, Liquidity and Cash Flow
Supplemental Financial Information
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 - 855MM - 875MM Based on OII EPS Guidance as of July 23, 2014 See Next Slide For…
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…
OII Balance Sheet ((in millions)) Dec 31 D 31, Dec 31 D 31, Dec D 3131, Dec D 3131, Dec D 3131, Jun J 30, 30 2009 2010 2011 2012 2013 2014 Equity 1,224 1,390 1,558 1,815 2,043 2,173 Debt 120 0 120 94 0 80 Cash…
Business Segments Revenue Operating Income 7% 1% 8% 14% 13% 30% 42% 16% 33% 36% ROV Subsea Products Subsea Projects A Asset t Integrity I t it Adtech YTD June 2014
Supplemental Market Information
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
OII ROV Fleet Geographic g p Profile June 2014 34 91 GOM 33 Africa Norway 32 Brazil Asia/Pac 55 Other 78 323 Vehicles
OII ROV Fleet Size 350 323 300 ount at Period End 250 200 150 Vehicle Co 100 50 0 June 30, 2014
Oilfield ROV Drill Support Market June 2014 OII Subsea 7 Fugro 60% Sonsub Other 284 Contracted Floating Rigs Source: IHS-Petrodata and OII Estimates
OII ROVs on Vessels Locations June 2014 17 24 GOM Africa Norway 19 Other 25 85 Vehicles
OII ROVs on Vessels Customers June 2014 Operators Contractors 44 41 85 Vehicles
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 June 2014
Subsea Products Backlog At Period End in millions 1,000 800 600 400 200 0 2009 2010 2011 2012 2013 2014 June 2014
Subsea Tree Orders Forecast at Historically High Levels Up 200 50% Growth 800 595 700 600 500 430 395 400 300 200 100 Source: Quest Offshore Resources Mean Case Forecast, August 2014
Subsea Tree Orders Excluding BRZ Forecast at Historically High Levels Up 190 70% Growth 800 700 600 455 500 355 400 265 300 200 100 Source: Quest Offshore Resources Mean Case Forecast, August 2014
Subsea Installations Forecast at Historically High Levels Up 115 700 35% Growth 600 500 42 425 400 305 310 300 200 100 Source: Quest Offshore Resources Mean Case Forecast, August 2014
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: OII SEC Filings and…
Subsea Completions In Service Forecast at Historically High Levels Up 1200 25% Growth 6000 5000 4000 3000 2000 1000 0 Source: Quest Offshore Resources, August 2014
OIE Products Production Control Valves Tooling g & Work Packages Installation Workover & Control Systems Connectors & Repair Systems Field Development Hardware
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