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Oceaneering.com

Investor PresentationJune 2019

1

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,” “believe,” “expect,” “anticipate,” “plan,” “forecast,” “budget,” “goal,” or other words that convey the uncertainty 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 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

Reasons to Own Oceaneering

• Increasing offshore activity levels

• Growing non-energy segment

• Provider of integrated technology solutions

• Strong portfolio of diversified services and products

• Geographically dispersed asset base and revenue streams

• Blue-chip customer base

• Strong market positions

• Increasing participation in offshore renewables

3

Managing our business in a way that promotes:

• Safety and Health

• Environmental Sustainability

• Community Relations

• Workforce Diversity, and

• Ethics and Compliance

4

Another Reason to Own Oceaneering - Sustainability

Five Operating Segments

5

Remotely Operated Vehicles (ROV)

Subsea Products

Subsea Projects

Asset Integrity

Advanced Technologies

Energy:

Non-Energy:

Phase% of Oceaneering Revenue*

Exploration 17%

Development44%

Production36%

Decommissioning3%

Market Driver Floating Drilling Rigs

Subsea Tree Installations

Subsea Trees In Service

Field Abandonments

• ROV Services• Survey (SP)• Tooling (SSP)

• ROV Services• Survey (SP)• Tooling (SSP)• IWOCS – Installation &

Workover Control Systems (SSP)

• Subsea Hardware (SSP)• Umbilicals (SSP)• Vessel-based Installation

Services (SP)• Inspection Services (AI)• Seabed Preparation/

Trenching (SP)

• ROV Services• Tooling (SSP)• Subsea Work Systems

(SSP)• IWOCS – (SSP)• Subsea Hardware (SSP)• Vessel-based

Installation Services (SP)

• Inspection Services (AI)

• ROV Services• Tooling (SSP)• Subsea Work Systems

(SSP)

• IWOCS – (SSP)

Business Segment and Product and Service Revenue Streams

KEY

ROV = Remotely Operated Vehicles

SSP = Subsea Products

SP = Subsea Projects

AI = Asset Integrity

Active in All Phases of the Offshore Oilfield Life Cycle

6

*Estimates as of December 31, 2018.

51% 50%

49% 50%

61%65%

39%

35%

0%

25%

50%

75%

100%

International United States Services Products

Revenue Sources

7

Geographic Area Services and Products

$1.9B $1.9B

2017 2018

$1.9B $1.9B

2017 2018

Financial Overview, Quarterly

8

20% 19% 21%

30%26% 26%

14%18% 18%

15% 13% 12%

21% 24% 23%

0%

25%

50%

75%

100%

2018 Q1 2018 Q4 2019 Q1

Revenue Adjusted Operating EBITDA*

48% 44% 46%

30%

13%20%

11%

11%

17%

7%

5%

1%

4%

27%16%

0%

25%

50%

75%

100%

2018 Q1 2018 Q4 2019 Q1

Adtech

Subsea Projects

Asset Integrity

Subsea Products

ROV

$495.1M $64.0M$52.9M $60.1M

*Excludes Unallocated Expenses and the effects of certain specified items. For reconciliation of Adjusted Operating EBITDA to Operating Income, see the Supplemental Information.

$493.9M$416.4M

Oceaneering Operating Segments, Q1 2019

ROV – Higher operating results

• on higher revenues from reimbursement for mobilizations and installations costs offsetting a small decrease in days on hire

Subsea Products – Higher operating results • on increases in Service and Rental activity at improved margins

Subsea Projects – Higher operating results • due to favorable project mix and good execution, and an improving survey market

Asset Integrity – Near breakeven results • due to seasonality and competitive pricing

Advanced Technologies – Lower operating results• on fewer job completions and contract close-outs

9

compared to Q4 2018

We provide ROVs, which are tethered submersible vehicles remotely operated from a vessel and/or onshore, to customers in the energy industry for drilling support and vessel-based services, including subsea hardware installation, construction, pipeline inspection, survey and facilities inspection, maintenance and repair.

Remotely Operated Vehicles

21%

46%

0%

25%

50%

75%

100%

Revenue Adjusted OperatingEBITDA*

Q1 2019

10

* Excludes Unallocated Expenses.

Oceaneering ROV Days on Hire and Fleet UtilizationUtilization rate for Q1 2019, 53%

11

0

7,500

15,000

22,500

30,000

2014Q1

2014Q2

2014Q3

2014Q4

2015Q1

2015Q2

2015Q3

2015Q4

2016Q1

2016Q2

2016Q3

2016Q4

2017Q1

2017Q2

2017Q3

2017Q4

2018Q1

2018Q2

2018Q3

2018Q4

2019Q1

0%

25%

50%

75%

100%

RO

V D

ays

on

Hir

e

Fleet Utilizatio

n R

ate

Drill Support Days Vessel-based Days ROV Fleet Utilization

Oceaneering ROV Drill Support Market Share 61% at March 31, 2019

12

0%

25%

50%

75%

100%

0

75

150

225

300

2014Q1

2014Q2

2014Q3

2014Q4

2015Q1

2015Q2

2015Q3

2015Q4

2016Q1

2016Q2

2016Q3

2016Q4

2017Q1

2017Q2

2017Q3

2017Q4

2018Q1

2018Q2

2018Q3

2018Q4

2019Q1

OII %

of Flo

ating R

igs

Co

ntr

acte

d F

loat

ing

Rig

s at

Per

iod

En

d

Contracted Floaters, Working Contracted Floaters, Not Working OII % of Contracted Floaters

Source: Rig data, IHS Petrodata at March 31, 2019

Oceaneering ROV Average Revenue per Day on Hire~$7,800 for Q1 2019

13

0%

20%

40%

60%

80%

100%

2014Q1

2014Q2

2014Q3

2014Q4

2015Q1

2015Q2

2015Q3

2015Q4

2016Q1

2016Q2

2016Q3

2016Q4

2017Q1

2017Q2

2017Q3

2017Q4

2018Q1

2018Q2

2018Q3

2018Q4

2019Q1

$0

$2,500

$5,000

$7,500

$10,000

$12,500

Ad

justed

EBITD

A M

argin

Ave

rage

Rev

enu

e p

er D

ay o

n H

ire

Revenue / Day on Hire ROV Adjusted EBITDA Margin

ROV TechnologiesEnabling better control and video imaging, precise tool manipulation, and adherence to industry requirements

14

Liberty (E-ROV)

Resident ROVTraditional ROV system

Mission support centers Stavanger (Norway), Houston (Texas), and

Morgan City (Louisiana)

Communications via 4G, fiber, and satellite

E-ROV concept winner 2017 World Oil New Horizons Idea Award

Freedom ROV Concept

E-ROV: 2018 OTC Spotlight on New Technology® Award winner

ROV Outlook

Q2 2019 compared to Q1 2019 – Improved results

2019 compared to 2018 – Improved results

• Increased days on hire

• Fleet utilization in upper 50% range

• Service utilization around 70% drill support / 30% vessel-based

• ROV adjusted EBITDA margin to remain relatively flat

15

While most of our subsea products

are sold, we also rent tooling, and

provide IWOCS and subsea work

systems as a service, including

hydrate remediation, riserless light

well intervention, well stimulation,

dredging, and decommissioning.

Subsea Products

16

26%

20%

0%

25%

50%

75%

100%


Q1 2019


Subsea Products

17

Production Control Umbilicals

Supply electric and hydraulic power to subsea trees and inject chemicals into well streams.

Specialty Subsea Hardware

Field development hardware used to connect production trees to umbilicals and flow lines. Also includes connectors and valves - Oceaneering Grayloc, Oceaneering Pipeline Connection & Repair Systems (PCRS) and Oceaneering Rotator.

51%

51% of Subsea Products Q1 2019 Revenue

Manufactured Products

Subsea Products

18

Tooling and Subsea Work Systems

Provide more than 4,000 ROV tools for rental. Supports well intervention, drilling, construction, field maintenance, and plugging and abandonment activities.

Installation and Workover Control Systems (IWOCS)

A temporary control system designed for both rig- and vessel-based operations used for tree installation, completion, workover, intervention and decommission of subsea wells.

49%

49% of Subsea Products Q1 2019 Revenue

Service and Rental

Subsea Products Financials2019 Book-to-bill ratio forecast to exceed 1.25

19

0

0.25

0.5

0.75

1

1.25

1.5

1.75

2014Q1

2014Q2

2014Q3

2014Q4

2015Q1

2015Q2

2015Q3

2015Q4

2016Q1

2016Q2

2016Q3

2016Q4

2017Q1

2017Q2

2017Q3

2017Q4

2018Q1

2018Q2

2018Q3

2018Q4

2019Q1

$0

$200

$400

$600

$800

$1,000

Bo

ok-to

-Bill R

atio, T

TM

Pro

du

cts

Rev

enu

e /

Bac

klo

g (

$ in

Mill

ion

s)

Subsea Products Backlog Subsea Products Revenue Book-to-Bill Ratio, TTM

Note: Book-to-Bill Ratio Data unavailable for Q1 2014 through Q3 2014.

Proven Well Access Capabilities

• IRIS and BORIS - rigless, riserless light well intervention systems

• Reliably perform in depths to 10,000 feet and pressures to 10,000 psi

• Maximize production and increase the recovery rate from offshore oil and gas reservoirs or, alternatively, prepare wells to be plugged and abandoned

20

Riserless Intervention System winner 2017 World Oil Best Well Intervention Technology Award

Subsea Products Outlook

21

Q2 2019 compared to Q1 2019 – Flat results


• Securing good order intake in 1H 2019 driving activity for 2H 2019

• Increased throughput in Manufactured Products unit

• Increased activity and contribution from Service and Rental unit

• Book-to-bill ratio in the range 1.25 – 1.40

• Operating Income margin in mid-single digit range on increased overall activity and better absorption of fixed costs

We provide project management, survey, subsea installation and inspection, maintenance, and repair services. We service deepwater projects with dynamically positioned vessels that have our ROVs onboard, and shallow water projects with our manned diving operations, utilizing dive support vessels and saturation diving systems. We also provide seabed preparation, route clearance, and trenching services to the renewable energy and oil and gas industries.

Subsea Projects

22

18%

17%

0%

25%

50%

75%

100%


Q1 2019


Subsea Projects Overview

• Jones Act-compliant deepwater Multi-purpose Support Vessels, including Ocean Evolution, supplemented with short-term charters, as necessary

• Diving Support Vessels

• Survey/Autonomous Underwater Vehicle (AUV) Services

• Offshore engineering, seabed preparation, route clearance, and trenching services through Ecosseacquisition

23

Subsea Projects Outlook

24



• Improved results from Survey and Renewables

• Lower results from Vessel activity

• Day rates remain very competitive, but have stabilized

• Ocean Evolution in service in Q2 2019

We deliver asset integrity management, analytics, maintenance and risk management, conventional and advanced non-destructive testing (NDT), and specialist inspection solutions, principally to the oil and gas, power generation, and petrochemical industries.

Asset Integrity

25

12%

1%

0%

25%

50%

75%

100%


Q1 2019


Asset Integrity – What We Do and Where We WorkOur optimized, industry-leading inspection services and integrity management solutions assure our customers are equipped with the data required to make informed, value-adding decisions. We work onshore and topside offshore --across the entire energy spectrum, oil and gas, nuclear, and renewables.

26

Permanently Installed Monitoring Systems

(PIMS)

Rope AccessPipeline InspectionAdvanced Inspection Services

Non-Destructive Testing (NDT) – CapEx / In-Service

Integrity ManagementInspection and Condition

Monitoring

Onshore Midstream Onshore Downstream Offshore TopsideOnshore Upstream

Asset Integrity Outlook

27

Q2 2019 compared to Q1 2019 – Flat results

2019 compared to 2018 – Flat results

• Contract pricing extremely competitive

• Operating margins in the low single-digit range

We provide engineering services and related manufacturing, principally to the U.S. Department of Defense, NASA and its prime contractors, and the commercial theme park industry. We also develop, implement, and maintain innovative, turnkey ride system solutions and automated guided vehicle solutions based on proprietary technology.

Advanced Technologies

28

23% 16%

0%

25%

50%

75%

100%


Q1 2019


Dry Deck Shelter Planning Yard/ Maintenance &

Submarine Maintenance

We support the U.S. Navy’s Deep Submergence community by performing complex overhauls, planned maintenance, and emergency repair tasks for the Navy’s six dry deck shelters.

U.S. Navy Submarine Rescue System

We perform major, complex overhauls, repairs, and modernization of all submarine classes forward and aft, from the top of the sail to the keel.

Entertainment Systems “Dark Ride” Vehicles

We developed and patented an evolutionary motion-based system capable of delivering high-energy thrills in fully immersive 3D media-based attractions at a fraction of the cost of other ride vehicles.

Advanced Technologies Overview

29

29

Government Businesses67% of 2018 AdTech Revenues

Commercial Businesses33% of 2018 AdTech Revenues

Automated Guided Vehicle (AGV) Systems

We develop, implement, and maintain innovative, turnkey logistic solutions based on AGV technology.

Advanced Technologies Outlook

30


• Moderate improvement in operating results from both commercial and government units


• Continued high activity in entertainment unit

• Improvements in automated guided vehicles (AGV) operations

• Modest growth in government-related units

Strong Balance Sheet and Liquidity at Q1 2019

Liquidity

• $341.8 million of cash

• $500 million undrawn unsecured revolving credit facility available until

October 2021; thereafter $450 million available until January 2023

• $500 million bond due November 2024 is nearest maturity

Cash Flow from operations, $19.1 million

Capital expenditures

• $30 million organic spending

31

Oceaneering Outlook – Q2 2019

ROVs – Higher operating results

Subsea Products – Flat operating results

Subsea Projects – Higher operating results

Asset Integrity – Flat operating results

Advanced Technologies – Higher operating results

Unallocated Expenses – Flat expenses

32

Higher compared to Q1 2019

Oceaneering Outlook – 2019

• Positive Free Cash Flow on increased activity in all operating segments

• Positive EBITDA from all operating segments

• Adjusted EBITDA midpoint increased to $165M on new range of $150M to $180M

• Higher activity and stable pricing in energy segments

• Higher activity in commercial units and marginal growth in government-related units

33

Improved compared to 2018

• Capital Expenditures, $105M - $125M

• Maintenance capex, $40M - $50M

• Growth capex, $65M - $75M

• Higher Unallocated Expenses on increased accruals for incentive compensation

• Higher Net Interest Expense on

• Full year of interest expense on 2018 bonds;

• Recognition of previously capitalized interest on the Ocean Evolution, and

• Higher floating rates

• Income Tax payments, approximately $25M

Key Enablers to Offshore Energy

• Shortened project development life cycles

• Reduced development costs

• Recognized efficiency gains from technology advancements

• Customer focus on developing high-graded “core of the core” offshore assets

• Customer confidence in commodity price stabilization

34

Industry Outlook

• Deepwater/Ultra-deepwater Breakeven prices are down by ~$20 per barrel since mid-2015

• Brent Crude minimum to stabilize in range of $55 to $65 per barrel for the foreseeable future

• Offshore Capex Spending projected to increase by 4% to 9% in 2019

• Contracted Floating Rig count expected to increase in 2019 for the first time since 2014

• Tree Awards expected to be approximately 300 per year for the next several years

• FID is expected for nearly 25 deepwater projects in 2019*• Less than 10 deepwater FID’s in 2018

• Offshore Barrels will continue at approximately 30% of global production

• By 2021, 80% of Shale investment will be required to maintain flat production**• Expected to push additional investment offshore for better returns

35

Data Points Suggest an Offshore Cycle Inflection is Underway

Note: Deepwater = water depths >400m per Wood Mackenzie

Source: * Wood Mackenzie, Pre-FID Tracker, February 2019. **EvercoreISI, February 2019

ConclusionWhile the overall offshore energy markets continue to be challenging in 2019, we are encouraged by the early signs of improving activity in our targeted markets and in our businesses as the industry rebounds.

36

Focus: • Generating positive free cash flow

• Maintaining our strong liquidity position

• Improving our returns by:

• driving efficiencies in cost and performance throughout our organization; and

• engaging with our customers to develop value-added solutions that increase their cash flow

And above all,

• Maintaining our superior safety performance and quality

Investor Relations ContactMark PetersonVice President, Corporate Development and Investor [email protected]

37

Supplemental Information

38

Net Income (Loss) Reconciliation to EBITDAEarnings 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 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 Oceaneering’s historical and projected results on a consolidated basis for the periods indicated:

39* Forecast Net Loss excludes Provision for Income Taxes.** For reconciliation of EBITDA to Adjusted EBITDA, see the Supplemental schedules that follow.

Period Ended 2017 2018 2019F 2019F(USD in millions) Low* High*

Net Income (Loss) $ 166.4 $ (212.3) $ (100.0) $ (70.0)

Depreciation & Amortization 213.5 293.6 212.0 212.0

Subtotal 379.9 81.3 112.0 142.0

Interest Expense/Income, Net 19.3 26.0 38.0 38.0 Income Tax Expense (Benefit) (184.2) 26.5 - -

EBITDA $ 215.0 $ 133.8

Adjusted EBITDA** $ 222.4 $ 142.5 $ 150.0 $ 180.0

40

Operating Income Reconciliation to Adjusted EBITDA and Adjusted Operating EBITDAAdjusted EBITDA excludes the effects of certain specified items, as set forth in the table that follows. Adjusted Operating EBITDA is Adjusted EBITDA before Unallocated Expenses. We believe these are useful measurements for investors to review because it provides a consistent measure of the underlying results of our ongoing business by individual business segment and on a consolidated basis. Furthermore, our management usesthese measurements as a measure of performance of our operations. Adjusted EBITDA and Adjusted Operating EBITDA are non-GAAP financial measures. The following table provides a reconciliation between operating income (a GAAP financial measure) and Adjusted EBITDA and Adjusted Operating EBITDA (non-GAAP financial measures) for Oceaneering’s historical results on a consolidated basis and by segment for the periods indicated.

3 mths Ended Mar 31, 2019(USD in millions)

ROVSubsea

ProductsSubsea

ProjectsAsset

IntegrityAdvanced

Tech.

Subtotalbefore

Unallocated Expenses

Unallocated Expenses Total

Operating Income(Loss)(GAAP) 1.4 (0.5) 2.9 (0.7) 9.6 $ 12.7 (34.4) $ (21.7)

Depreciation & Amortization 28.0 13.0 7.9 1.6 0.8 51.3 1.2 52.5 Other pre-tax - - - - - - 0.2 0.2

EBITDA $ 29.4 $ 12.5 $ 10.8 $ 0.9 $ 10.4 $ 64.0 $ (33.1) $ 31.0

Adjustments for the effects of: Foreign Currency (gains)/losses - - - - - - (0.6) (0.6)

Total Adjustments - - - - - - (0.6) (0.6)

Adjusted EBITDA $ 29.4 $ 12.5 $ 10.8 $ 0.9 $ 10.4 $ 64.0 $ (33.7) $ 30.4

Adjusted Operating EBITDA, Segment %

46% 20% 17% 1% 16% 100%

41


3 mths Ended Dec 31, 2018(USD in millions)

ROVSubsea

ProductsSubsea

ProjectsAsset

IntegrityAdvanced

Tech.

Subtotalbefore



Operating Income(Loss) (GAAP) (1.3) (3.8) (79.4) 1.3 15.4 (67.8) (29.3) (97.1)Depreciation & Amortization 28.0 11.8 85.7 1.6 0.8 127.9 1.0 128.9 Other pre-tax - - - - - - (3.2) (3.2)

EBITDA $ 26.7 $ 8.0 $ 6.3 $ 2.9 $ 16.2 $ 60.1 $ (31.6) $ 28.5 Adjustments for the effects of:

Foreign Currency losses - - - - - - 2.6 2.6 Total Adjustments - - - - - - 2.6 2.5

Adjusted EBITDA $ 26.7 $ 8.0 $ 6.3 $ 2.9 $ 16.2 $ 60.1 $ (29.0) $ 31.1

Adjusted Operating EBITDA, Segment % 44% 13% 11% 5% 27% 100%

42

3 mths Ended Mar 31, 2018(USD in millions)

ROVSubsea

ProductsSubsea

ProjectsAsset

IntegrityAdvanced

Tech.

Subtotalbefore



Operating Income(Loss) (GAAP) (2.4) 1.8 (2.4) 1.7 1.7 $ 0.4 (27.5) $ (27.1)Depreciation & Amortization 27.6 14.0 8.3 1.8 0.8 52.5 1.5 54.1 Other pre-tax - - - - - - (10.1) (10.1)

EBITDA $ 25.2 $ 15.8 $ 5.9 $ 3.5 $ 2.5 $ 52.9 $ (36.1) $ 16.9

Adjustments for the effects of: Foreign Currency (gains)/losses - - - - - - 8.3 8.3 Total Adjustments - - - - - - 8.3 8.3

Adjusted EBITDA $ 25.2 $ 15.8 $ 5.9 $ 3.5 $ 2.5 $ 52.9 $ (27.7) $ 25.2

Adjusted Operating EBITDA, Segment %

48% 30% 11% 7% 4% 100%


Free Cash Flow“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 other than those in business acquisitions). Management believes that this is an important measure because it represents funds available to reduce debt and pursue opportunities that enhance shareholder value, such as making acquisitions and returning cash to shareholders through dividends or share repurchases.

43

Period Ended(USD in millions) 2015 2016 2017 2018 2019*

Net Income $ 231.0 $ 24.6 $ 166.4 $ (212.3) $ (24.8)

Depreciation & Amortization 241.2 250.2 213.5 293.6 52.5

Other Changes in Cash Provided by Operating Activities 91.7 64.6 (243.4) (44.7) (8.5)

Cash Provided by Operating Activities 563.9 339.4 136.5 36.6 19.2

Purchases of Property & Equipment (200.0) (112.4) (93.7) (109.5) (30.0)

Free Cash Flow $ 363.9 $ 227.0 $ 42.8 $ (72.9) $ (10.8)

*at March 31, 2019

Oceaneering ROV Fleet – 275 ROVsGeographic profile – March 31, 2019

44

72

45

82

21

33

22

27 21 33 11 5 40

10

20

30

40

50

60

70

80

90

100

GOM Africa North Sea Brazil Asia/Pac Other

RO

Vs

ROV Count Vessel Based, 101

Q1 2019, 69% drill support and 31% vessel-based activity

Oceaneering ROV Service Utilization

31%

69%

0%

25%

50%

75%

100%

0

7,500

15,000

22,500

30,000

2014Q1

2014Q2

2014Q3

2014Q4

2015Q1

2015Q2

2015Q3

2015Q4

2016Q1

2016Q2

2016Q3

2016Q4

2017Q1

2017Q2

2017Q3

2017Q4

2018Q1

2018Q2

2018Q3

2018Q4

2019Q1

Service Utilizatio

n R

ate

RO

V D

ays

on

Hir

e

Vessel-based % Drill Support % ROV Days on Hire

45

Oceaneering ROV Leading Market Position

46

27525%

OII Subsea 7 Fugro DOF Subsea C-Innovations Helix Saipem TMT Technip IKM Group Other

9761%

Ownership Drill Support Market Share*

Source: ROV Ownership – Infield, Wood Mackenzie Business, December 31, 2018. *At March 31, 2019.

Breakevens Reduced since 2014

47

Source: Rystad Energy

Ultra Deepwater average breakeven price has decreased by $23/barrel since 2014

Global Liquids Supply Cost Curve – June 2014 Global Liquids Supply Cost Curve – July 2017

Meaningful reductions in Ultra-deep and Deepwater categories

$57

$34

48

Source: Average Breakevens, Rystad Energy. Brent crude, EIA. Project counts, Wood Mackenzie.

$115

$67$55

$44

$0

$25

$50

$75

$100

$125

$0

$25

$50

$75

$100

$125

2014 2017

Bren

t Cru

de P

rice/barrel

Bre

akev

en P

rice

/bar

rel

Brent Crude $/barrel and Offshore Breakeven $/barrel

Breakeven, ShelfBreakeven, DeepwaterBreakeven, UltradeepHigh close $/bblLow close $/bbl

Offshore Activity is Incentivized by Lower Breakevens and Stable Crude PricesMajor FIDs have doubled

5 1 13 8 44 ←Sanctioned major projects →

49

150 167 171

137145 149

$0

$100

$200

$300

$400

$500

2014 2015 2016 2017 2018 2019F 2020F 2021F

Off

sho

re S

pen

din

g, $

in b

illio

ns

CAPEX OPEX

Source: Wood Mackenzie via May 2019 Tableau

Offshore Spending Expected to IncreaseSpending is stable since 2017; Capex spend is expected to increase in 2020

Sources: Tree awards- Wood Mackenzie. Contracted Floaters- Wells Fargo LLC, May 3, 2019.

160 169 179

319 325337

0

50

100

150

200

250

300

350

2014 2015 2016 2017 2018 2019F 2020F 2021F

Co

un

t at

Per

iod

En

d

Contracted Floaters Forecasted Tree Awards

Offshore Drilling Activity Forecast to Increase in 2019following 2018 inflection in floating rig demand

51

$0

$10

$20

$30

$0

$250

$500

$750

2014 2015 2016 2017 2018 2019 Q1

Sub

sea Equ

ipm

ent B

acklog, $

in b

illion

s

OII

Sub

sea

Pro

du

cts

Bac

klo

g, $

in m

illio

ns

Technip FMC TechnipFMC AKER OneSubsea Dril-Quip OII Backlog

Offshore Drilling Activity Forecast to Increase in 2019

Source: Company filings. Note: Aker NOK/USD and Technip EUR/USD conversions are US Treasury conversion rates at period end.51 51

following 2018 inflection in select oilfield company backlogs

Over 6,500 on-stream wells installed offshore prior to 2018; averaging 12 years since start-up

3391,229 2,528 3,418 3,4824

285

1,698

3,141 3,238

0

1,500

3,000

4,500

6,000

7,500

pre 1990 1990s 2000s 2010-2017 2018F +

0

10

20

30

40

50

Co

un

t o

f In

stal

led

Wel

ls, o

n s

trea

m

Avg

Years since start-u

p o

f on

stream W

ells

Shelf Wells ≥400M Wells Average Age, >400M Average Age, Shelf

Global Offshore Infrastructure is Aging

52

Source: Well data, Infield, A Wood Mackenzie Business, June 2018.

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