January 7, 2015 Miami, FL 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 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 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 Installation and Workover Control Systems Subsea Hardware
Floating Rig Demand 5-Year 5 Year Projection 400 ontracted Flloating Rigss Up 30 10% Growth 350 312 300 282 250 Assuming 85% Rig Fleet Utilization and d 50 Ri Rigs are R Retired ti d or ear-End Co 200 Cold…
Floating Rig Demand 5-Year 5 Year Projection with 5-Year 5 Year Averages 400 Up 50 ontracted Flloating Rigss 20% Growth 350 300 300 250 250 185 Assuming 85% Rig Fleet Utilization ear-End Co 200 and 50 Rigs are…
Floating Rig Demand Development Drilling 5-Year 5 Year Projections with 5-Year 5 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 Historically High Levels Up 175 65% Growth 600 440 500 ers 355 Tree Orde 400 265 300 200 100 Source: Quest Offshore Resources Mean Case Forecast, November 2014
Subsea Installations Excl BRZ Forecast at Historically High Levels Levels, 5-Year 5 Year Averages 600 500 Up 100 40% Growth Insstallations 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-Year 5 Year Averages Up 720 5000 25% Growth 4000 3,720 ons Completio 3,000 3000 2 040 2,040 2000 1000 Source: Quest…
Bank & Public Debt Financing Bank Facilities 500 MM 5 5-Year, Y R Revolver l 300 MM 3-Year, Delayed-Draw Term Loan Senior Notes 500 MM MM, 4 4.650%, 650% due 2024 Investment Grade Rated Moodys Baa2 Standard & Poor…
Capital Allocation Priority Organic Capital Expenditures Acquisitions q Cash Dividends Share Repurchases 5.4 MM Remaining Shares Authorized 9/30/14
Capital Allocation 2014 YTD Through September Organic Capital Expenditures 301 MM Acquisitions q 40 MM Cash Dividends 89 MM Share Repurchases 237 MM 3.5 MM Shares
Capital Structure Targets Maintain Investment Grade Debt Ratings Net N tDDebt bt tto TTM EBITDA Ratio R ti Between 1.0 X and 1.5 X
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
Business Segments Revenue Operating Income 7% 1% 8% 14% 13% 29% 41% 16% 34% 37% ROV Subsea Products Subsea Projects A Asset t Integrity I t it Adtech YTD September 2014
OII ROV Fleet Geographic g p Profile September p 2014 34 34 94 32 58 80 GOM Africa Norway Brazil Asia/Pac Other 332 Vehicles
OII ROVs on Vessels September p 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 90% 7,000 80% 5 000 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 On Order OII Has 14 of 17 ROV Contracts 47 Rigs Have ROV Contract Opportunities Remaining 5 of…
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-Year 5 Year Averages Up 170 40% Growth 700 565 600 ers 430 Tree Orde 500 395 400 300 200 100 Source: Quest Offshore Resources Mean…
Subsea Installations - Global Forecast at Historically High Levels Levels, 5-Year 5 Year Averages Up 100 30% Growth 700 600 ons Installatio 500 410 400 305 310 300 200 100 Source: Quest Offshore Resources Mean…
Subsea Completions In Service - Global Forecast at Historically High Levels Levels, 5-Year 5 Year Averages Up 970 7000 25% Growth 6000 4,930 ons 5000 Completio 3,960 4000 2 720 2,720 3000 2000 1000 Source:…
5-Year Deepwater Outlook What To Expect Along The Way Some Project Approvals May Continue to be Dela ed Delayed Approved A dPProjects j t Cost Overruns Production Start-Up Delays Technical Challenges Sheer Volume of Projects…
OIE Products Production Control Valves Tooling y & Subsea Work Systems Installation Workover & Control Systems Connectors & Repair Systems Field Development Hardware
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