Oceaneering International, Inc. · NYSE:OII
Oceaneering International — RBC Capital Markets conference (June 2016)
34 slides from Oceaneering International's conference presentation, June 2016
Slide 1: Investor Presentation
Investor Presentation June 2016
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements we make in this presentation that express a belief, expectation, or intention are forward looking. Forward-looking statements are generally accompanied by words such as “estimate,” “project,” “predict,” “believe,” “expect,” “anticipate,” “plan,” “forecast,” “bud
Slide 3: Why OII?
Why OII? Global Provider of Diversified Services and Products in All Phases off the h Off Offshore h Oilfield Oilfi ld Life Lif CCycle l Strong Balance Sheet and Cash Flow Continue to Maintain or Grow Our Market Positions Return Capital to Our Shareholders Experienced Management Team Lon
Slide 4: About Oceaneering – Five Operating Segments
About Oceaneering – Five Operating Segments ROV Subsea Products Subsea Projects Asset Integrity Advanced Ad dTTechnologies h l i 4
Slide 5: About OII – In All Phases of Offshore Oilfield Life Cycle
About OII – In All Phases of Offshore Oilfield Life Cycle PHASE EXPLORATION DEVELOPMENT PRODUCTION DECOMMISSIONING % OII Revenue 10% 50% 35% 5% #1 Market # of Operating # Subsea Tree # Subsea Trees # of Field Driver e g Drilling Floating g Rigs g Installations In Service Abandonments Business Segmen
Slide 6: Largest Exposure is in Field Development
Largest Exposure is in Field Development R Revenue Mi Mix 5% 10% 35% 50% Exploration Development Production Decommissioning Source: OII Estimates: 2015 6
Slide 7: Revenue by Business Segment
Revenue by Business Segment 2014 2015 2016 Q1 7% 10% 11% % 27% 24% 14% 29% 12% 12% 16% 20% 21% 31% 32% 34% $3.7 Billion $3.1 Billion $600 Million ROV Subsea Products Subsea Projects Asset Integrity Advanced Technologies 2015 7
Slide 8: Remotely Operated Vehicles
24% REMOTELY OPERATED VEHICLES Revenue Contribution Q1 2016 8
Slide 9: Oceaneering ROV Fleet Size
Oceaneering ROV Fleet Size 318 ROV ROVs as off M March h 2016 350 336 318 315 Vehicle Count at Perriod End 300 250 200 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 9
Slide 10: Floating Rig Demand History
Floating Rig Demand History O Oceaneering i 57% %MMarket k ShShare as off March M h 31, 31 2016 Floaters Contracted % with OII ROVs 300 100% Period End 250 75% with OII ROVs 200 Conttracted Floating Rigs at P 150 50% %w 100 25% 50 0 0% 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4
Slide 11: Oceaneering ROV Pricing and Fleet Utilization
Oceaneering ROV Pricing and Fleet Utilization 6% Fl 56% Fleet U ili i as off M Utilization h 2016 March Revenue / Day on Hire Fleet Utilization $11,000 100% $10,000 90% $9,000 80% Hire $8,000 70% Fleet Utilization ue / Day on H $7,000 60% $6,000 50% $5,000 Revenu 40% $4,000 30% $3,000 $2 000 $2,000
Slide 12: Subsea Products
32% SUBSEA PRODUCTS Revenue Contribution Q1 2016 Umbilicals Tooling & Subsea Work Systems IInstallation t ll ti and d Workover Control Systems Subsea Hardware 12
Slide 13: Subsea Products
Subsea Products Required for Every Subsea Completion Product Line Categories Service Technology and Rentals – IWOCS and Tooling Subsea Distribution – Umbilicals and Field Development Hardware Connections – Grayloc y Connectors and Pipeline p Repair p Systems y Flow Control Solutions – BO
Slide 14: Subsea Installations Forecast
Subsea Installations Forecast Tree Installations SSProducts Revenue 500 $1,500 D in Millions 400 $1,200 Revenue, USD ns Tree Installation 300 $900 200 00 $600 SSProducts R 100 $300 S 0 $0 2011 2012 2013 2014 2015 2016F 2017F 2018F 2019F 2020F Source: Quest Offshore, May 2016 14
Slide 15: Subsea Hardware Capex Forecast
Subsea Hardware Capex Forecast B kl A Backlog At Period P i dE End d Subsea Capex, Quest May 2016 SS Products Backlog $1,000 $9,600 SD in Millions acklog, USD iin Millions $8,000 $800 are Capex, US $6 400 $6,400 $600 $4,800 $400 SS Products Ba bsea Hardwa $3,200 $200 $1,600 Sub $0 $0 2011 2012 2013
Slide 16: Subsea Projects
21% SUBSEA PROJECTS Revenue Contribution Q1 2016 Diving Deepwater 16
Slide 17: Subsea Projects Overview
Subsea Projects Overview Assets Available for f this Market GOM Shallow Water Installation and IRM 4 Oceaneering Vessels, Diving Support 3 Saturation Diving Systems Deepwater Installation and IRM 6 Chartered Vessels, DP 2 Oceaneering Vessels, DP 1OOceaneering i VVessel,l DP DP, d deliv
Slide 18: Leveraged to Deepwater
Leveraged to Deepwater Projects Take Years to Develop Largely Oil Reservoirs with High Production Flow Rates Well Capitalized Customer Base ~50% 50% Revenue from E&P Majors in Prior 3 Years Investment Based on Long-Term Commodity Price 18
Slide 19: Long Term: Offshore is Essential
Long Term: Offshore is Essential D Deepwater R Remains i SiSignificant ifi Incremental Bbls Existing Fields Bbls 90 Source of Additional ~26Mm B/D Crude Production 80 d Condensate e 70 32% MB/D MM 60 68% Crude and 50 Offshore Onshore 40 Source: Morgan Stanley Research , Wood Mackenzie, Rystad Energy
Slide 20: Expect Extended Declines from Producing Fields
Expect Extended Declines from Producing Fields New Production from New Fields Decline from Aging Fields 4.0 3.5 3.0 Day Barrels Per D 2.5 2.0 Million B 15 1.5 1.0 0.5 0.0 2014 2015 2016 2017 2018 Inverting Balance presented by Bloomberg; Source data from Rystad 20
Slide 21: Strong Balance Sheet and Liquidity
Strong Balance Sheet and Liquidity C i lS Capital Sources and d All Allocations i Liquidity (at end of First Quarter 2016) o $371 Million of Cash o $500 Million Undrawn Revolving Credit Facility, Expiring October 2020 o Only $19 Million of Debt Maturities Until October 2018 Organic Capital Expen
Slide 22: Free Cash Flow (Through the Cycle)
Free Cash Flow (Through the Cycle) (USD in i millions, illi except ffor E Earnings i per Sh Share amounts)) “Free Cash Flow” (FCF) is a non-GAAP financial measurement. FCF represents cash flow provided by operating activities less organic capital expenditures (i.e., purchases of property and equipme
Slide 23: 2016 Free Cash Flow Illustration $1.00 EPS
2016 Free Cash Flow Illustration $1.00 EPS (USD in i millions) illi ) 2016 Net Income $ 100 Cash Flow Provided by Operating Activities $ 340 Purchases of Property and Equipment (150) Free Cash Flow $ 190 23
Slide 24: 2016 Outlook
2016 Outlook Shaping Up to be a Challenging Year Aligning our Operations with Current Activity Forecasting Declines in Each Oilfield Segment, Most Notably: o ROV, Outlook Remains Cloudy o Subsea Products, Margins to Weaken Throughout the Year o Subsea Projects, Projects Impacted by Angola, Ang
Slide 25: Conclusion
Conclusion Longer Term, Deepwater is Still Critical to Reserve Replenishment Global Provider in All Phases of Offshore Oilfield Life Cycle, with a Deepwater p Focus Further Differentiate with Integrated Solutions Strong Liquidity and Cash Flow Maintain or Grow Our Market Positions Emerge
Slide 26: Supplemental Financial Information
SUPPLEMENTAL FINANCIAL INFORMATION
Slide 27: Earnings Per Share
Earnings Per Share 2016 Q1 - $0.26; $0 26 201 2015 - $2.34 $2 34 $5.00 $4.00 arnings per Share $3.00 $2.00 $ Ea $1.00 $0.00 2008 2009 2010 2011 2012 2013 2014 2015 2016* * First Quarter 2016 27
Slide 28: EBITDA
EBITDA $1,000 $750 SD in Millions s $500 US $250 $0 2008 2009 2010 2011 2012 2013 2014 2015 2016* * First Quarter 2016 28
Slide 29: EBITDA Reconciliation to Net Income
EBITDA Reconciliation to Net Income (USD in i millions) illi ) Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP financial measurement. Oceaneering’s management uses EBITDA because we believe that this measurement is a widely accepted financial indicator used by i
Slide 30: Supplemental Information
SUPPLEMENTAL INFORMATION
Slide 31: Oceaneering ROV Leading Market Position
Oceaneering ROV Leading Market Position R Remotely l OOperated dVVehicles hi l Ownership Drill Support Market Share 315 31% 110 57% OII Subsea 7 Fugro DOF Subsea C-Innovations Helix Saipem TMT Technip Harkand IKM Group Worldwide Fleet Other 193 Floating Rigs Contracted** 1027 Vehicles Vehicles* Sour
Slide 32: Oceaneering ROV Fleet
Oceaneering ROV Fleet G Geographic hi PProfile fil – March M h 2016 36 30 103 25 52 72 GOM Africa Norway Brazil Asia/Pac Other 318 Vehicles 32
Slide 33: Oceaneering ROVs on Vessels
Oceaneering ROVs on Vessels M h 2016 March Locations Customers 12 24 18 45 37 28 GOM Africa Norway Other Operators Contractors 82 Vehicles 33
Slide 34: Investor Relations Contact
Investor Relations Contact Suzanne Spera Director Investor Relations Director, 713-329-4707 InvestorRelations@Oceaneering.com 34
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