Alan R. Curtis Alan R. Curtis Chi f Fi Chi f Fi Chief Financial - PowerPoint PPT Presentation

Alan R. Curtis Alan R. Curtis Chi f Fi Chi f Fi Chief Financial Officer Chief Financial Officer i l Offi i l Offi Johnson Rice Energy Conference Johnson Rice Energy Conference gy gy September 22, 2016 September 22, 2016 New Orleans, LA New Orleans, LA

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 ” 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 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 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. 2

Why Oceaneering?  Global provider of diversified services and products in all phases  Global provider of diversified services and products in all phases of the offshore oilfield life cycle of the offshore oilfield life cycle f h f h ff h ff h ilfi ld lif ilfi ld lif l l  Strong market positions  Strong market positions  Solid balance sheet and cash flow  Solid balance sheet and cash flow  Return of capital to our shareholders  Return of capital to our shareholders  Leveraged to deepwater  Leveraged to deepwater  Leveraged to deepwater - longer term, deepwater is still critical to  Leveraged to deepwater - longer term, deepwater is still critical to longer term deepwater is still critical to longer term deepwater is still critical to reserve replenishment reserve replenishment 3

5 Operating Segments 1. Remotely Operated Vehicles (“ROVs”) 1. Remotely Operated Vehicles (“ROVs”) y y ( ( ) ) 2. Subsea Products 2. Subsea Products 3. Subsea Projects 3. Subsea Projects 4. Asset Integrity 4. Asset Integrity 5 5. Advanced Technologies 5. Advanced Technologies 5 Ad Ad d T d T h h l l i i 4

In All Phases of Offshore Oilfield Life Cycle EXPLORATION EXPLORATION DEVELOPMENT DEVELOPMENT PRODUCTION PRODUCTION PHASE PHASE DECOMMISSIONING DECOMMISSIONING 5% % OII Revenue 10% 50% 35% #1 Market # of Operating # Subsea Tree # Subsea Trees # of Field Floating Drilling Rigs g g g Installations In Service Abandonments Driver e Business Segment Product P d t and Service Revenue • ROV ROV • ROV • ROV • ROV • Tooling (SSP) • Tooling (SSP) • Survey (SP) Survey (SP) • Survey (SP) Streams • IWOCS (SSP) • IWOCS (SSP) • Tooling (SSP) Tooling (SSP) • Tooling (SSP) • IWOCS – Installation & IWOCS I t ll ti & • Subsea Hardware (SSP) S b H d (SSP) Workover Control Systems • Vessel-based Inspection, (SSP) Maintenance & Repair Services (SP) • Subsea Hardware (SSP) • Inspection Services (AI) • Umbilicals (SSP) • Vessel-based Installation Services (SP) • Inspection Services (AI) Inspection Ser ices (AI) ROV = Remotely Operated Vehicles SSP = Subsea Products SP = Subsea Projects AI = Asset Integrity 5

Largest Exposure is in Field Development Revenue Mix R Mi 5% 10% 35% 50% Exploration Exploration Development Development Production Production Decommissioning Decommissioning Source: OII Estimates: 2015 6

Revenue by Business Segment First Half 2014 2015 2016* 7% 7% 10% 10% 12% 23% 27% 14% 29% 12% 12% 16% 20% 22% 31% 31% 34% $3.7 Billion $3.1 Billion $1.2 Billion ROV Subsea Products Subsea Projects Asset Integrity Advanced Technologies * Six Months Ended June 30, 2016 7

23% Remotely Operated Vehicles Revenue Contribution First Half 2016 Flagship of the Oceaneering Franchise g p g 8

Oceaneering ROV Fleet Size 318 ROV 318 ROVs as of June 30, 2016 f J 30 2016 350 318 riod End 300 300 Count at Per Vehicle 250 200 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016 Q1 Q2 9

Floating Rig Demand History O Oceaneering 58% Market Share as of June 30, 2016 i 8% M k Sh f J 30 2016 Floaters Contracted % with OII ROVs 300 100% Period End 250 75% 200 200 s with OII ROVs ing Rigs at P 150 50% % w tracted Float 100 25% 50 Cont 0 0% 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 Source: IHS-Petrodata, June 30, 2016 10

Oceaneering ROV Pricing and Fleet Utilization % Fl U ili i f J 30 2016 55% Fleet Utilization as of June 30, 2016 Revenue / Day on Hire Fleet Utilization $11,000 100% $ $10,000 90% $9,000 80% $8,000 Hire 70% n ue / Day on H $7,000 $7 000 eet Utilizatio 60% $6,000 50% $5,000 40% Revenu $4 000 $4,000 Fl 30% $3,000 20% $2,000 10% 10% $1,000 $1 000 $0 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016* * YTD June 2016 11

Subsea Products 31% Manufactured Products Revenue Contribution First Half 2016 Production Control Umbilicals Supplies electric and hydraulic power to subsea trees and injects chemicals into reservoirs and well streams. h i l i t i d ll t Specialty Subsea Hardware Field development hardware used to connect production trees to Field development hardware used to connect production trees to umbilicals and flow lines. Also includes connectors and valves. Service and Rentals Service and Rentals Tooling & Subsea Work Systems Support drilling, construction, field maintenance, and plugging and abandonment activities. Installation and Workover Control Systems (IWOCS) Support drilling, construction, field maintenance, and plugging and pp g p gg g abandonment activities. 12

Subsea Hardware Capex Forecast B Backlog at June 30, 2016 kl J 30 2016 Subsea Capex, Quest May 2016 SS Products Backlog $1,000 $9,600 s SD in Million in Millions $8,000 $800 are Capex, US $6 400 $6,400 acklog, USD i $600 $4,800 $400 $400 Products Ba bsea Hardwa $3,200 $200 $1,600 Sub OII SS $0 $0 2011 2012 2013 2014 2015 2016* 2017F 2018F 2019F 2020F *June 30, 2016 Source: Quest Offshore, May 2016; Capex: hardware costs for subsea trees/control systems, manifolds, and production umbilicals; Includes S. America 13

Subsea Installations Forecast Tree Installations SSProducts Revenue 500 $1,500 D in Millions 400 $1,200 ns Revenue, USD ee Installation 300 $900 200 00 $600 $600 SProducts R Tre 100 $300 OII S 0 $0 2011 2012 2013 2014 2015 2016F 2017F 2018F 2019F 2020F Source: Quest Offshore, May 2016 14

22% Subsea Projects Revenue Contribution First Half 2016 Change out photo and replace with AUV Consist of Project Management Survey Subsea Consist of Project Management, Survey, Subsea Installation and IMR Services 15

Subsea Projects Overview Assets Available for this Market f Spot or Charter Contract Location End  Deepwater Multi-Purpose Supply Vessels 2 Owned 2 Owned Spot GOM N/A Ocean Intervention Spot GOM N/A Ocean Intervention II Ocean Evolution (available 2Q 2017) N/A N/A 4 Chartered with Term 4 Chartered with Term Normand Flower Spot GOM Dec ‘16 Ocean Alliance Contract, Shell GOM Mar ‘18 Contract, BP W. Africa Jan ‘17 Ocean Intervention III Contract India Nov ‘17 Island Pride  Diving Support Vessels  Survey/AUV Services acquired in 2015  Survey/AUV Services, acquired in 2015  Global Data Solutions, including AIRSIS, acquired in 2014 16

Strong Balance Sheet and Liquidity C Capital Sources and Allocations i l S d All i  Liquidity (at end of second quarter 2016) o $393 million of cash $393 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 expenditures o Expect to range from $100 million to $150 million in 2016  Acquisitions  Acquisitions o Continue to consider investments that augment our service or product offerings  Dividends Di id d o Subject to anticipated EPS levels, cash flow, liquidity and Board approval  Consider share repurchases p 17

Leveraged to Deepwater  Projects take years to develop  Projects take years to develop  Largely oil reservoirs  Largely oil reservoirs o With high production flow rates o With high production flow rates o With high production flow rates o With high production flow rates  Well capitalized customer base  Well capitalized customer base o ~50% revenue from E&P majors in prior 3 years o ~50% revenue from E&P majors in prior 3 years 50% revenue from E&P majors in prior 3 years 50% revenue from E&P majors in prior 3 years  Investment based on long-term commodity  Investment based on long-term commodity price expectations price expectations 18