Oceaneering International, Inc. · NYSE:OII
Oceaneering International — Credit Suisse Energy Conference 2016
25 slides from Oceaneering International's conference presentation, Feb 24, 2016
Slide 1: Credit Suisse Energy Conference Investor Presentation February 2016
Energy Conference Credit Suisse February 24, 2016 Vail, CO Investor Presentation February 2016 Safe Harbor Statement 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 “es
Slide 2: Why OII?
Why OII? • Global Provider of Diversified Services and Products in All Phases of the Offshore Field Life Cycle • Strong Balance Sheet and Cash Flow • Continue to Maintain or Grow Our Market Positions and Return Capital p to Our Shareholders • Experienced Management Team • Adapting and Making Changes
Slide 3: Strong Balance Sheet and Liquidity
Strong Balance Sheet and Liquidity Capital Sources and Allocations • Liquidity – $385 Million of Cash at Year Year-end end – No Meaningful Debt Maturities Until October 2018 – $500 Million Undrawn Revolving Credit Facility, Expiring October 2020 • Organic Capital Expenditures – Expect To Range From
Slide 4: Strong Cash Flow (Even in a Down Year)
Strong Cash Flow (Even in a Down Year) (USD in millions) 2014 2015 Net Income $ 428 $ 231 Cash Flow Provided by Operating Activities $ 722 $ 560 Purchases of Property and Equipment (387) (200) Free Cash Flow $ 335 $ 360 Free Cash Flow as a % of Adjusted Net Income 78% 127%
Slide 5: Free Cash Flow (Through the Cycle)
Free Cash Flow (Through the Cycle) (USD in millions, millions except for Earnings per 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 equipment othe
Slide 6: 2016 Free Cash Flow Illustration $1.00 EPS
2016 Free Cash Flow Illustration $1.00 EPS (USD in millions) 2016 Net Income $ 100 Cash Flow Provided by Operating Activities $ 340 P h Purchases off Property P t and d Equipment E i t (175) Free Cash Flow $ 165
Slide 7: No Guidance for 2016 on Limited Visibility
No Guidance for 2016 on Limited Visibility • Anticipating Lower Global Demand in Offshore Activities Additional Customer Spending Cuts Activities, Cuts, and Fewer Contracted Floating Rigs • Projecting Decreases in Each of Our Oilfield Operating Segments in 2016 than in 2015 • Market Uncertainty Tran
Slide 8: Engineered Products & Services
-Realizin ing —;O through @ practical UUONS Engineered Products & Services
Slide 9: Supplemental Information
Supplemental Information
Slide 10: In All Phases of Offshore Oilfield Life Cycle
In All Phases of Offshore Oilfield 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 Business Segment P d t Product and Service Revenue • ROV • ROV •
Slide 11: Majority of Revenue is in Field Development
Majority of Revenue is in Field Development Revenue Mix 5% 10% 35% 50% Exploration Development Production Decommissioning Source: OII Estimates; Updated 09-30-15
Slide 12: Aligning Our Operations with Current Activity
Aligning Our Operations with Current Activity • Organizing More Effectively to Reduce Costs • Establishing Partnerships with Suppliers to Create Cost-Effective Solutions • Integrating Our Services and Products to Offer Greater Customer Value
Slide 13: Earnings Per Share
Earnings Per Share 2015 - $2.34, $2 34 Adjusted $2 $2.87 87 $4.00 $3.00 $2.00 $1.00 $0.00 2008 2009 2010 2011 2012 2013 2014 2015 EPS Adj. EPS
Slide 14: EBITDA
EBITDA (USD in millions) Series 1 $1,000 $750 $500 $250 $0 2008 2009 2010 2011 2012 2013 2014 2015 See Next Slide for Non-GAAP Reconciliation to Net Income
Slide 15: EBITDA Reconciliation to Net Income
EBITDA Reconciliation to Net Income ((USD in millions)) 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 investor
Slide 16: Business Segments
Business Segments Revenue Operating Income 11% 4% 2% 26% 19% 12% 39% 20% 31% 36% ROV Subsea Products Subsea Projects Asset Integrity Adtech December YTD 2015
Slide 17: Supplemental Market Information
Supplemental Market Information
Slide 18: Floating Rig Demand History
Floating Rig Demand History 300 282 ontracted Flloating Rigss 250 216 200 ear-End Co 150 Ye 100 Source: IHS-Petrodata
Slide 19: Subsea Tree Installation History
Subsea Tree Installation History 400 395 308 300 Tree IInstallationss 200 100 Global Excluding BRZ Source: Quest Offshore Resources – Mean Case Forecast, November 2015
Slide 20: Leading Market Position
Leading Market Position Remotely Operated Vehicles Ownership Drill Support Market Share 315 118 31% 55% OII Subsea 7 Fugro DOF Subsea C-Innovations Helix Saipem TMT Technip Harkand IKM Group Other Worldwide Fleet 216 Floating Rigs Contracted** 1027 Vehicles Vehicles* Source: *OII Estimates - Decembe
Slide 21: OII ROV Fleet
OII ROV Fleet Geographic g p Profile – December 2015 35 30 103 25 52 70 GOM Africa Norway Brazil Asia/Pac Other 315 Vehicles
Slide 22: OII ROVs on Vessels
OII ROVs on Vessels December 2015 Locations Customers 11 5 31 51 44 22 26 GOM Africa Norway Asia Other Operators Contractors 95 Vehicles
Slide 23: OII ROV Pricing and Fleet Utilization
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% December YTD
Slide 24: Leading Market Position
Leading Market Position Specialty Subsea Products Umbilicals Tooling & Subsea Work Systems Installation and Workover Control Systems Subsea Hardware
Slide 25: Subsea Products Backlog
Subsea Products Backlog At Period End (USD in millions) $1,000 $800 $600 $400 $200 $0 2009 2010 2011 2012 2013 2014 2015
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