DAHLMAN ROSE & CO.
Ultimate Oil Services & Drilling Conference
November 29, 2011 New York, NY
M. Kevin McEvoy
President & CEO 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 p , p , p , , g , g , 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 conditions, gas, ability to obtain and the timing of new projects, and changes in competitive factors. Should one or more of these risks or uncertainties 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.
WHY OII?
Leveraged to Deepwater and Subsea Completions
Secular Growth
L di M k t P iti Leading Market Positions
ROVs and Specialty Subsea Products
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
Long-Term Deepwater Outlook
Invest Where the Oil Is Western IOCs Have Little Choice
Restricted Access to World-Class Onshore Reserves
Exploration Success Bodes Well for the Future
Drilling Intensity is Rising
Source: Wood Mackenzie and Deutsche Bank
Earnings Per Share Guidance
2011 Estimate $2 11-$2 15; 2012 Estimate $2 45-$2 65 $2.11 $2.15; $2.45 $2.65
Actual $3.00 $2.50 Earnin per Sha ngs are $2.00 $ $1.50 $1.00 $0.50 $0.00 2008 2009 2010 2011E 2012E Low Estimate High Estimate
OII 2011 and 2012 Guidance Ranges as of October 26, 2011 and November 22, 2011, respectively.
Combined EPS OSX Companies
Excluding OII
Actual $75 $60 $45 $30 $15 $0 2008 2009 2010 2011E 2012E Consensus Estimate
Based on First Call Actuals and Mean Estimates as of October 31, 2011
Earnin per Sha ngs are
Relative EPS Performance
To Recent 2008 OSX Peak
OII 60% 40% 20% 0% -20% -40% -60% 2008 OSX w/o OII
2009
2010
2011E
2012E
Based on First Call Actuals and Mean Estimates as of October 31, 2011
2012 EPS Guidance
The Big Picture
SEGMENT OPERATING INCOME
ROV Subsea Products Subsea Projects Inspection Advanced Tech > 2011 > 2011 > 2011 > 2011 > 2011
AGR Field Operations
Pending Acquisition
Anticipated Close by End of 2011
$240 MM Purchase Price Increase 2012 EPS by $0.10
Expands Inspection Business
Particularly in Norway
Adds Subsea Inspection Tooling Establishes Subsea Engineering & Field Operations Presence p in Australia
Excellent Liquidity & Cash Flow
September 30, 2011
$166 MM Cash $300 MM Revolving Credit Available
At Least $480 MM of EBITDA Expected in 2011 At Least $550 MM of EBITDA Expected in 2012 Ample Resources to Invest in Growth
EBITDA Reconciliation to Net Income is in Supplemental Financial Information Slides
Plans For Cash
Investments Organic Growth Acquisitions Regular Quarterly Dividend Share Repurchases
Acquisition Targets
Within Our Market Niches
Expand Subsea Products
International Focus Reasonably Priced
Remotely Operated Vehicles
Revenue by Business Segment
34%
September YTD 2011
Floating Rig Demand
Floaters Contracted
250
243
C Contracted Floating Rigs d R
200
150
100
*Source: ODS-Petrodata at September 30, 2011
OII ROV Fleet Size
OII Fleet Size
300 V Vehicle Cou at Perio End unt od
262
200
100
125
*September 30, 2011
Floating Rig Fleet Expansion
74 On Order at September 30, 2011 37 Contracted
Average length >8 years
27 Expected to be Placed In Service in 2011
20 In Service YTD
24 Expected to be Placed In Service in 2012
Source: OII Estimates Based On ODS-Petrodata Data: September 30, 2011
ROV Operating Leverage
Revenue / Day on Hire $11,000 $9,000 $7,000 $5,000 $5 000 $3,000 $1,000 Fleet Utilization 100% 80% 60% 40% 20% 0%
September YTD 2011
2012 ROV Overview
Increase in Days On Hire
Higher Fleet Utilization Expect to Add 15 to 20 New Systems
Operating Income ROV
2011 Estimate > 2010; 2012 Estimate > 2011
in millions
Actual
Estimate
$250 $200 $150 $100 $50 $0 2007 2008 2009 2010 2011E 2012E
OII 2011 and 2012 Guidance Ranges as of October 26, 2011
Worldwide Subsea Completions
This Decade Expected to Grow 50%
Completed 6000
N Number of Subsea Co ompletions
Estimated
5000 4000 3000 2000 1000 0 90s 00s
4611
10s
Source: Quest Offshore Resources August 2011
Subsea Tree Orders
Forecasted at Historically High Levels
750
33% Growth*
Tree Orders
500
250
0 '06 '07 '08 '09 '10 '11F '12F '13F '14F '15F
* 2011-2015 vs 2006-2010
Source: Quest Offshore Resources Mean Case Forecast, October 2011
Subsea Products
Revenue by Business Segment
35%
ROV Tooling & Work Packages Umbilicals
Field Development e d e e op e t Hardware
September YTD 2011
Subsea Products
Required for Every Subsea Completion Subsea Hardware
Umbilicals Tooling Field Development IWOCS OCS Connectors & Valves
BOP Control Systems
Highly Engineered Worldwide Coverage
Subsea Products Backlog
At Period End
in millions
$500
$403
$400 $300 $200 $100 $0 2007 2008 2009 2010 2011 Q3
Operating Income Products
2011 Estimate > 2010; 2012 Estimate > 2011
in millions
Actual
Estimate
$120 $100 $80 $ $60 $40 $20 $0 2007 2008 2009 2010 2011E 2012E
OII 2011 and 2012 Guidance Ranges as of October 26, 2011
OII Summary
Diversified OFS Company Leveraged to Deepwater and Subsea Completions Leading Market Positions in Technical Niches ead g a et os t o s ec ca c es Excellent Earnings Liquidity and Cash Flow Earnings,
Supplemental Financial Information
EBITDA
in millions
Actual
Low Estimate
High Estimate
$700 $600 $ $500 $400 $300 $200 $100 $0 2007 2008 2009 2010 2011* 2012*
*2011 - $480MM $485MM 2012 - $550MM $585MM $480MM-$485MM, $550MM-$585MM Based on OII 2011 and 2012 EPS Guidance Ranges as of October 26, 2011 and November 22, 2011, respectively. 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. Oceaneerings 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 this measurement may be used by some investors and others to make informed investment decisions. 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 Oceaneerings historical and projected results on a consolidated basis for the periods indicated:
Period Ended December 31, (in millions of $) Net Income N tI Depreciation & Amortization Subtotal Interest Expense/Income, Net Income Tax Expense p EBITDA
2007
2008
2009 2010
2011E 2011E LOW HIGH 230 150 380 0 100 480 235 150 385 0 100 485
2012E 2012E LOW HIGH 265 160 425 5 120 550 285 165 450 5 130 585
180.4 199.4 188.4 200.5 180 4 199 4 188 4 200 5 93.8 115.0 122.9 153.7
274.2 314.4 311.3 354.2 274 2 314 4 311 3 354 2 14.1 12.6 7.1 5.4
97.1 107.8 101.4 104.7 385.4 434.8 419.8 464.3
OII Balance Sheet
( (in millions) )
Dec 31, D 31 2007
Dec 31, D 31 2008
Dec 31, D 31 2009
Dec 31, D 31 2010
Sept 30 S t 30, 2011
Equity E it Debt Cash Debt/Cap
$915 200 27 18%
$968 229 11 19%
$1,224 $1 224 120 162 9%
$1,390 $1 390 0 245 0%
$1,517 $1 517 0 166 0%
Capital Expenditures: 2010
75% on ROVs and Subsea Products
ROV Subsea Products Subsea Projects Other
6%
21%
53%
20%
Capital Expenditures: 2011*
75% on ROVs and Subsea Products
ROV Subsea Products Subsea Projects Other
5%
20%
39%
36%
$207 Million
* September YTD
Business Segment Revenue
% of Oilfield
90%
ROV - 38% Products - 40% Inspection - 14% Projects - 8%
Oilfield
Non-Oilfield
YTD September 2011
Business Segment Operating Income
% of Oilfield
97%
ROV - 52% Products - 32% Inspection - 8% Projects - 8%
Oilfield
Non-Oilfield
YTD September 2011
Supplemental Market Information
Oilfield ROV Fleet
Ownership Profile - December 2010 p
35%
OII 260
OII Subsea 7 Sonsub Fugro Canyon Other
747 Vehicles
Source: OII Estimates, December 2010
OII ROV Fleet
Geographic Profile September 2011 g p p
27 19
11
56
GOM Africa Norway
39 58 52
Brazil U.K. UK Asia/Pac Can/Mex
262 Vehicles
Oilfield ROV Drill Support Market
September 2011 p
OII Subsea 7 Fugro
59%
Sonsub Other
243 Floating Rigs Contracted
Source: ODS-Petrodata and OII Estimates
OII ROV Fleet
Construction/Field Maintenance Locations
9 16
GOM Africa Norway Other
16
16
57 Vehicles
September 2011
OII ROV Fleet
Construction/Field Maintenance Customers
25 32
Operators Contractors
57 Vehicles
September 2011
Worldwide Umbilical Market Overview
Forecasted at Historically High Levels y g
Umbilicals Tree Orders 33% Growth* - Trees 52% Growth* - Umbilicals
750
3000 2500
Tree Orders
500
2000 1500
250
1000 500
0 '06 '07 '08 '09 '10 '11F '12F '13F '14F '15F
* 2011-2015 vs 2006-2010
Source: Quest Offshore Resources Mean Case Forecast, October 2011
Umbilic Orders -K cal KM
Umbilical Products
Thermoplastic Hose Umbilicals
Steel Tube Umbilicals
OIE Products
Production Control Valves ROV Tooling g & Work Packages
Installation Workover & Control Systems
Connectors & Repair Systems
Field Development Hardware
