Investor Presentation Investor Presentation Investor Presentation Investor Presentation November 2016 November 2016 November 2016 November 2016
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 the Offshore Oilfield Life Cycle EXPLORATION EXPLORATION DEVELOPMENT DEVELOPMENT PRODUCTION PRODUCTION DECOMMISSIONING DECOMMISSIONING PHASE PHASE 5% % OII Revenue 10% 50% 35% #1 Market # of Operating # of Subsea Tree # of 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 Oilfield Revenue Mix Oilfi ld R Mi 5% 10% 35% 50% Exploration Exploration Development Development Production Production Decommissioning Decommissioning Source: OII Estimates: 2015 6
Revenue by Business Segment First 9 Months 2014 2015 2016* 7% 7% 10% 10% 13% 23% 27% 14% 29% 12% 12% 16% 20% 21% 31% 31% 34% $3.7 Billion $3.1 Billion $1.8 Billion ROV Subsea Products Subsea Projects Asset Integrity Advanced Technologies * Nine Months Ended September 30, 2016 7
23% Remotely Operated Vehicles Revenue Contribution First Nine Months, 2016 Flagship of the Oceaneering Franchise g p g 8
Oceaneering ROV Fleet Size – 279 ROVs as of September 30, 2016 f S b 30 2016 350 riod End 300 300 Count at Per 279 Vehicle 250 200 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016 2016 Q1 Q2 Q3* * Retired 39 ROVs in the third quarter of 2016. 9
Floating Rig Demand History Oceaneering 56% Market Share as of September 30, 2016 O i 6% M k Sh f S b 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 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Source: IHS-Petrodata, September 30, 2016 10
Oceaneering ROV Utilization Mix 100% tion ction Utilizat 75% ROV Func 50% Average 25% 0% 0% Drill Support ROV Utilization Vessel Based ROV Utilization * At September 30
Oceaneering ROV Pricing and Fleet Utilization 2% Fl U ili i f S b 30 2016 52% Fleet Utilization as of September 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 September 2016 12
Subsea Products 31% Manufactured Products Revenue Contribution First Nine Months, 2016 Production Control Umbilicals Supply electric and hydraulic power to subsea trees and inject 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 Rental Service and Rental 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. 13
Subsea Hardware Capex Forecast B Backlog at September 30, 2016, in $ millions kl S b 30 2016 i $ illi Subsea Capex, Quest August 2016 SS Products Backlog $1,000 $9,600 $8,000 $800 acklog Capex $6,400 $6 400 Products Ba a Hardware C $600 $4,800 $400 $400 Subsea OII SS $3,200 $200 $1,600 $0 $0 2011 2012 2013 2014 2015 2016* 2017F 2018F 2019F 2020F * At September 30, 2016 Source: Quest Offshore, August 2016; Capex: hardware costs for subsea trees/control systems, manifolds, and production umbilicals 14
Subsea Installations Forecast Tree Installations SSProducts Revenue 500 $1,500 in $ Millions 400 $1,200 ns ee Installation ts Revenue, 300 $900 200 00 $600 $600 OII SSProduct Tre 100 $300 O 0 $0 2011 2012 2013 2014 2015 2016F 2017F 2018F 2019F 2020F Source: Quest Offshore, August 2016 15
21% Subsea Projects Revenue Contribution First Nine Months, 2016 Change out photo and replace with AUV Consist of Project Management Survey Subsea Consist of Project Management, Survey, Subsea Installation and IMR Services 16
Subsea Projects Overview Assets Available for this Market f Spot or Charter Contract Location End Deepwater Multi-Purpose Supply Vessels 3 Owned 3 Owned Spot GOM N/A Ocean Intervention Spot GOM N/A Ocean Intervention II Ocean Evolution (available late 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 Apr ‘17 Ocean Intervention III Contract India Nov ‘17 Island Pride Diving Support Vessels Survey/AUV Services Survey/AUV Services Global Data Solutions 17
Strong Balance Sheet and Liquidity C Capital Sources and Allocations i l S d All i Liquidity (at end of third quarter 2016) o $442 million of cash, $300 million in the U.S. $442 million of cash $300 million in the U S o $500 million undrawn revolving credit facility, expiring October 2021 o First debt maturities $30 million in October 2018 Organic capital expenditures o Expect to range from $110 million to $125 million in 2016 Acquisitions Acquisitions o Continue to consider investments that augment our service or product offerings Dividends Di id d o Lowered to a more sustainable level. Consider share repurchases p 18
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 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 Investment based on long-term commodity price expectations Investment based on long-term commodity price expectations 19
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