2015 GLOBAL ENERGY AND POWER EXECUTIVE CONFERENCE JUNE 2, 2015 NEW YORK, NY M. Kevin McEvoy Chief Executive Officer Oceaneering International, Inc. 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 estimate, project, predict, believe, expect, anticipate, plan, forecast, budget, goal, or other words that convey the uncertainly of future events or outcomes. These forward-looking statements are based on our current information and expectations that involve a number of risks, uncertainties, and assumptions. Among the factors that could cause the actual results to differ materially from those indicated in the forward-looking statements are: industry conditions, prices of crude oil and natural gas, our ability to obtain and the timing of new projects, and changes in competitive factors. Should one or more of these risks or uncertainties ti materialize, or should the assumptions underlying the forward-looking statements prove incorrect, actual outcomes could vary materially from those indicated. For additional information regarding these and other factors, see our periodic filings with the Securities and Exchange Commission, including our most recent Reports on Forms 10-K and 10-Q.
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 Business Segment Product and Service Revenue Streams ROV Survey (SP) Tooling (SSP) ROV Survey (SP) Tooling (SSP) IWOCS Installation & Workover Control Systems (SSP) Subsea Hardware (SSP) Umbilicals (SSP) Vessel-based Installation Services (SP) Inspection Services (AI) ROV Tooling (SSP) IWOCS (SSP) Subsea Hardware (SSP) Vessel-based Inspection, Maintenance & Repair Services (SP) Inspection Services (AI) ROV Tooling (SSP) IWOCS (SSP) ROV = Remotely Operated Vehicles SSP = Subsea Products SP = Subsea Projects AI = Asset Integrity
Offshore Life Cycle Business Exposure Revenue Mix 5% 15% 25% 55% Exploration Development Production Decommissioning Source: OII Estimates
Earnings Per Share Guidance 2015 Estimate $2.80 to $3.20 $5.00 Actual Low Estimate High Estimate er Share Earnings p $4.00 $3.00 $2.00 $1.00 $0.00 2008 2009 2010 2011 2012 2013 2014 2015E OII 2015 Guidance Range as of April 22, 2015
2015 Earnings Outlook Major Determinants for Last Three Quarters Vessel-Based IMR Projects Call Out or Spot Market Work Impacts ROVs, Subsea Products, and Subsea Projects Floating Rig Use OII ROVs on 50 Rigs with 2015 Contract Expirations
Combined EPS OSX Companies Excluding OII $80 Actual Consensus Estimate er Share Earnings p $60 $40 $20 $0 2008 2009 2010 2011 2012 2013 2014 2015E Based on First Call Actuals and Mean Estimates as of May 13, 2015
Relative EPS Performance To 2008 OSX Peak OII OSX w/o OII 150% 125% Relative to: 100% 2008 Up 60% 2014 Down 30% 75% 50% 25% 0% -25% -50% -75% 2008 2009 2010 2011 2012 2013 2014 2015E Relative to: 2008 Down 60% 2014 Down 50% Based on First Call Actuals and Mean Estimates as of May 13, 2015
REMOTELY OPERATED VEHICLES 2015 Outlook vs. 2014 Lower Demand Drilling and Vessel Support Fewer Fleet Days on Hire Lower Utilization PICTURE Reduced Average Pricing Flat Fleet Size
SUBSEA PRODUCTS 2015 Outlook vs. 2014 Lower Demand Short-Cycle Businesses e.g. Tooling Field Abandonment Support BOP Control System Replacements
SUBSEA PROJECTS 2015 Outlook vs. 2014 Lower Vessel Pricing in the GOM PICTURE Lower Chartered Vessel Demand off Angola Mitigated by Higher Operating Income from: Angola Diving Data Solutions Group including AIRSIS Acquisition in 2014
Data Solutions Group Communications Video/Telemetry Software Solutions Asset Tracking
C & C Technologies Acquisition Acquired April 2, 2015 $230 MM Purchase Price Autonomous Underwater Vehicles Global Survey & Positioning Services Unique Opportunity to Strategically Expand Underwater Offerings Neutral to 2015 Earnings
ASSET INTEGRITY 2015 Outlook vs. 2014 Lower Demand Customers deferring maintenance Generally Lower Pricing
Subsea Asset Integrity Services Targeted Assets Flexible and Rigid Flowlines, Pipelines and Risers Inspection Technologies Digital Radiography, Ultrasonic, and Electro Magnetic Acoustic Transducer (EMAT)
Subsea Asset Integrity Tools Magna Scan Neptune Digital Radiography Tool (DRT) Trident
2015 OTC Award Magna Scan Subsea Inspection System
2015 Capital Sources & Allocations Current Sources Potential Allocations Cash at Mar 31, 2015 Organic Cap Ex $305 MM $200 MM to $250 MM Estimated 2015 EBITDA > $680 MM Bank Term Loan $50 MM Undrawn Bank Revolver $500 MM Undrawn Acquisitions $230 MM & More Cash Dividends $108 MM Share Repurchases $TBD MM
OII Summary Challenging Time Well Positioned Intend to Continue Investing for the Future & Returning Capital to Our Shareholders Deepwater Focus Remains Sound Long-Term Prospects Are Promising
Supplemental Financial Information
EBITDA in millions Actual Low Estimate High Estimate $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 * 2015 - $680 MM-$745 MM Based on OII EPS Guidance as of April 22, 2015 See Next Slide For Non-GAAP Reconciliation to Net Income
EBITDA Reconciliation to Net Income 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 investors and analysts to analyze and compare companies on the basis of operating performance, and that t this measurement may be used by some investors and others to make informed investment t decisions. i You should not consider EBITDA in isolation from or as a substitute for net income or cash flow measures prepared in accordance with generally accepted accounting principles or as a measure of profitability or liquidity. EBITDA calculations by one company may not be comparable to EBITDA calculations made by another company. The following table provides a reconciliation between net income (a GAAP financial measure) and EBITDA (a non-gaap financial measure) for Oceaneering s historical and projected results on a consolidated basis for the periods indicated: Period Ended December 31, 2010 2011 2012 2013 2014 2015E 2015E (in millions of $) LOW HIGH Net Income 200.5 235.7 289.0 371.5 428.3 280 320 Depreciation & Amortization 153.7 151.2 176.5 202.2 229.8 245 255 Subtotal 354.2 386.9 465.55 573.77 658.1 525 575 Interest Expense/Income, Net 5.4.2 2.3 1.6 4.4 25 25 Income Tax Expense 104.7 102.22 132.9 170.8 195.11 130 145 EBITDA 464.3 489.3 600.7 746.2 857.7 680 745
Business Segments Revenue Operating Income 9% 7% 5% 13% 28% 37% 14% 19% 31% 37% March YTD 2015 ROV Subsea Products Subsea Projects Asset Integrity Adtech
Supplemental Market Information
Floating Rig Demand History ted Floatin ng Rigs Year-End Contrac 300 250 200 150 100 275 Demand at March 31, 2015-261 Source: IHS-Petrodata at December 31, 2014
Rig Fleet, Non-PBR Brazil at March 31, 2015 204 Rigs Under Contract OII on 64% OII on 76% of Drillships/6th Gen Rigs 57 Rigs On Order 17 Rigs Have Operator Contracts OII - 13 ROV Contracts t Competitors - 2 ROV Contracts 2 ROV Award Opportunities 40 Rigs Have No Operator Contracts Source: IHS-Petrodata Data & OII Estimates, March 31, 2015
Deepwater Fields Backlog Undeveloped Discoveries Fields 600m 600 500 400 300 200 100 0 2009 2010 2011 2012 2013 2014 Source: IHS, Petrodata
Leading Market Position Remotely Operated Vehicles Ownership Drill Support Market Share OII - 336 36% OII 151 58% Worldwide Fleet 937 Vehicles* 261 Floating Rigs Contracted** Source: *OII Estimates - December 2014; **IHS Petrodata March 2015
Oilfield ROV Fleet Ownership Drill Support Market Share OII 336 36% OII 151 58% Worldwide Fleet 937 Vehicles* OII Subsea 7 Fugro DOF Subsea Saipem C-Innovations Helix Technip TMT Other 261 Floating Rigs Contracted** Source: *OII Estimates - December 2014; **IHS Petrodata and OII Estimates March 31, 2015
OII ROV Fleet Geographic Profile March 2015 39 33 99 32 55 78 GOM Africa Norway Brazil Asia/Pac Other 336 Vehicles
OII ROVs on Vessels March 2015 Locations Customers 18 24 38 51 21 26 GOM Africa Norway Other Operators Contractors 89 Vehicles
OII ROV Pricing and Fleet Utilization $11,000 Revenue / Day on Hire Fleet Utilization 100% $9,000 90% $7,000 80% $5,000 70% $3,000 60% $1,000 50% * March YTD
Leading Market Position Specialty Subsea Products Umbilicals Tooling & Subsea Work Systems Installation ti and Workover Control Systems Subsea Hardware
Subsea Products Backlog At Period End in millions $1,000 $800 $600 $400 $200 $0 2009 2010 2011 2012 2013 2014 2015* *March 2015