OneSource One-Stop Report

Oceaneering International
14 April 2010
 OneSource One-Stop Reports for Oceaneering International

Oceaneering International Fortune 1000 Rank: 901

11911 FM 529 Employees: 7,900 Financials in: USD (mil)

Houston, TX 77041 Company Type: Public Parent
United States Corporate Family: 41 Companies Fiscal Year End: 31-Dec-2009
Traded: New York Stock OII Reporting Currency: US Dollar
Tel: 713-329-4500
Exchange: Annual Sales: 1,822.1 1
Fax: 713-329-4653
Toll Free: 800-527-1865 Incorporation Net Income: 188.4
1964
Date:
Auditor: Ernst & Young
Total Assets: 1,880.3 2
www.oceaneering.com
Market Value: 3,325.9
(26-Mar-2010)

Business Description

Oceaneering International, Inc. is an oilfield provider of engineered services and products to the offshore oil and gas industry,
with a focus on deepwater applications. Through the use of its applied technology, the Company also serves the defense and
aerospace industries. The Company’s business segments are contained within two businesses: services and products provided to
the oil and gas industry (Oil and Gas) and all other services and products (Advanced Technologies). Its five business segments
within the Oil and Gas business are Remotely Operated Vehicles (ROVs), Subsea Products, Subsea Projects, Inspection and
Mobile Offshore Production Systems. The services and products provided to the oil and gas industry include ROVs, built-to-order
specialty hardware, engineering and project management, subsea intervention services, non-destructive testing and inspection,
manned diving and mobile offshore production systems. For the fiscal year ended 31 December 2009, Oceaneering
International's revenues fell 8% to $1.82B Net income fell 6% to $188.4M. Revenues reflect a decrease in revenues from Subsea
Products segment and decreased income from Mobile Offshore Production Systems segments. Net income was partially offset by
higher other income, a decrease in interest expense and an increase in equity earnings of unconsolidated affiliates.
Source: Reuters

Industry

Industry Oil Well Services and Equipment

ANZSIC 2006: 1090 - Other Mining Support Services
NACE 2002: 1120 - Service activities incidental to oil and gas extraction excluding surveying
NAICS 2002: 213112 - Support Activities for Oil and Gas Operations
UK SIC 2003: 1120 - Service activities incidental to oil and gas extraction excluding surveying
US SIC 1987: 1389 - Oil and Gas Field Services, Not Elsewhere Classified

Key Executives (Emails Available)

Name Title Source

T. Jay Collins President, Chief Executive Officer, Director Reuters
Marvin J. Migura Chief Financial Officer, Senior Vice President Reuters
George R. Haubenreich Senior Vice President, General Counsel, Secretary Reuters
Kevin F. Kerins Senior Vice President - Remotely Operated Vehicles Reuters
W. Cardon Gerner Vice President, Chief Accounting Officer Reuters

Significant Developments

Topic #* Most Recent Headline Date

Oceaneering International, Inc. Q4 2009 EPS Guidance Below Estimates; Narrows

Negative Earnings Pre-
1 FY 2009 EPS Guidance To A Range Below Estimates; Issues FY 2010 EPS Guidance 28-Oct-2009
Announcement
In Line With Analysts' Estimates

Oceaneering International, Inc. Announces Corrosion And Inspection Management

Business Deals 2 3-Sep-2009
Services Contract Award

Other Pre- Oceaneering International, Inc. Issues Q1 2010 EPS Guidance In Line With
2 17-Feb-2010
Announcement Analysts' Estimates; Reaffirms FY 2010 EPS Guidance

Oceaneering International, Inc. Issues Q2 2009 EPS Outlook In Line With Analysts'
Positive Earnings Pre-
1 Estimates; Raises FY 2009 EPS Outlook; Issues FY 2009 EBITDA Outlook In Line 29-Apr-2009
Announcement
With Analysts' Estimates

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 OneSource One-Stop Reports for Oceaneering International

Share Repurchases 1 Oceaneering International, Inc. Announces Share Repurchase Program 22-Feb-2010
* number of significant developments within the last 12 months

News

Title Date
R - Professional, administrative, and management support services
9-Apr-2010
FedBizOpps (125 Words)
MILITARY $42.7 Million Federal Contract Awarded to Oceaneering International
9-Apr-2010
Targeted News Service (104 Words)
Federal Contracts Awarded by Federal Agencies in Pennsylvania (April 9)
9-Apr-2010
Targeted News Service (1165 Words)
Oceaneering International Announces First Quarter 2010 Earnings Release and Conference Call Dates
7-Apr-2010
Business Wire (186 Words)
OCEANEERING INTERNATIONAL INC Consensus Recommendation: BUY
2-Apr-2010
Nelson Information - Daily (38 Words)

Financial Summary

As of 31-Dec-2009

Key Ratios Company Industry

Current Ratio
2.25 2.38
(MRQ)
Quick Ratio
1.65 1.60
(MRQ)
Debt to Equity
0.10 0.40
(MRQ)
Sales 5 Year
18.49 16.85
Growth
Net Profit
Margin (TTM) 10.34 12.60
%
Return on
10.61 7.59
Assets (TTM) %
Return on
17.19 13.38
Equity (TTM) %
Source: Reuters

Stock Snapshot

Traded: New York Stock Exchange: OII 2 Year Weekly End Price & Volume

As of 26-Mar-2010 Financials in: USD

Recent Price 60.56 EPS 3.40

52 Week High 66.12 Price/Sales 1.83
52 Week Low 35.34 Dividend Rate 0.0000
Avg. Volume (mil) 0.60 Price/Earnings 17.02
Market Value (mil)3,325.88 Price/Book 2.72
Beta 1.51

Price % Change Rel S&P 500%

4 Week 0.18% -5.15%
13 Week 2.64% -0.89%
52 Week 49.94% 7.05%
Year to Date 3.49% -1.08%

Source: Reuters

Key IDSM Number: 21413 ABI Number: 403574718

1 - Profit & Loss Item Exchange Rate: USD 1 = USD 1

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 OneSource One-Stop Reports for Oceaneering International

2 - Balance Sheet Item Exchange Rate: USD 1 = USD 1

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Copyright © 2010 Business Monitor International Ltd. All rights reserved.
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Published by OneSource Information Services, Inc., 2010

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 OneSource One-Stop Reports for Oceaneering International

Oceaneering International Corporate Overview

Location Quote Symbol - Exchange Incorporation Date: 1964
11911 FM 529 OII - New York Stock Exchange Company Type: Public Parent
Houston, TX, 77041 Sales USD(mil): 1,822.1 Quoted Status: Quoted
Harris County Assets USD(mil): 1,880.3 President, Chief Executive T. Jay
United States Employees: 7,900 Officer, Director: Collins
Fiscal Year End: 31-Dec-2009
Tel: 713-329-4500 KeyIDSM: 21413
Fax: 713-329-4653 Industry: Oil Well Services and
Toll Free Tel: 800-527-1865 Equipment
www.oceaneering.com

Company Web Links

Company Contact/E-mail Executives Investor Relations
Corporate History/Profile Financial Information News Releases
Employment Opportunities Home Page Products/Services

Contents
Industry Codes Financial Data Additional Information
Business Description Market Data
Product Codes Shareholders
Brand/Trade Names Key Corporate Relationships

Industry Codes

ANZSIC 2006 Codes:

6240 - Financial Asset Investing
6923 - Engineering Design and Engineering Consulting Services
1090 - Other Mining Support Services

NACE 2002 Codes:

1120 - Service activities incidental to oil and gas extraction excluding surveying
7420 - Architectural and engineering activities and related technical consultancy
7415 - Management activities of holding companies

NAICS 2002 Codes:

213112 - Support Activities for Oil and Gas Operations
551112 - Offices of Other Holding Companies
541330 - Engineering Services

US SIC 1987:
1389 - Oil and Gas Field Services, Not Elsewhere Classified
6719 - Offices of Holding Companies, Not Elsewhere Classified
8711 - Engineering Services

UK SIC 2003:
74204 - Engineering consultative and design activities
7415 - Management activities of holding companies
1120 - Service activities incidental to oil and gas extraction excluding surveying

Business Description
Oceaneering International, Inc. is an oilfield provider of engineered services and products to the offshore oil and gas industry, with a
focus on deepwater applications. Through the use of its applied technology, the Company also serves the defense and aerospace
industries. The Company’s business segments are contained within two businesses: services and products provided to the oil and gas
industry (Oil and Gas) and all other services and products (Advanced Technologies). Its five business segments within the Oil and Gas
business are Remotely Operated Vehicles (ROVs), Subsea Products, Subsea Projects, Inspection and Mobile Offshore Production
Systems. The services and products provided to the oil and gas industry include ROVs, built-to-order specialty hardware, engineering
and project management, subsea intervention services, non-destructive testing and inspection, manned diving and mobile offshore

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 OneSource One-Stop Reports for Oceaneering International

production systems. Oceaneering has locations in the United States and 17 other countries. Its international operations in the North
Sea, West Africa, Brazil, Australia and Asia, accounted for approximately 53% of its revenue during the year ended December 31,
2009.

Oil and Gas

The focus of the Company’s Oil and Gas business is to provide services and products for deepwater offshore operations and subsea
completions. ROVs are submersible vehicles operated from the surface. It uses its ROVs in the offshore oil and gas industry to perform
a variety of underwater tasks, including drill support, installation and construction support, pipeline inspection and surveys, and subsea
production facility operation and maintenance. ROVs may be outfitted with manipulators, sonar, video cameras, specialized tooling
packages and other equipment or features to facilitate the performance of specific underwater tasks. At December 31, 2009, it owned
248 work-class ROVs.

Through its Oceaneering Intervention Engineering division, the Company constructs a variety of built-to-order specialty subsea
hardware. Its subsea products include various types of subsea umbilicals utilizing thermoplastic hoses and steel tubes; installation and
workover control systems; ROV tooling and work packages; subsea and topside control valves; subsea chemical injection valves;
blowout preventer control systems; production control equipment; clamp connectors and pipeline repair systems. The Company
markets these products under the trade names of Oceaneering Multiflex, Oceaneering Intervention Engineering, Oceaneering Grayloc,
Oceaneering Rotator and GTO Subsea. The Company’s Multiflex division provides various types of subsea umbilicals. Offshore
operators use umbilicals to control subsea wellhead hydrocarbon flow rates, monitor downhole and wellhead conditions and perform
chemical injection. They are also used to provide power and additional fluid transfer to other subsea processing hardware, including
pumps and gas separation equipment.

The Company, through the Subsea Projects segment, performs subsea intervention and hardware installation services in the Gulf of
Mexico and Angola from three owned and two chartered multi-service deepwater vessels. These services include subsea well tie-
backs; pipeline/flowline tie-ins and repairs; pipeline crossings; umbilical and other subsea equipment installations; subsea intervention,
and inspection, repair and maintenance activities. The deepwater vessels are equipped with thrusters that allow them to be
dynamically positioned, which means they can maintain a constant position at a location without the use of anchors. They are used in
pipeline or flowline tie-ins, pipeline crossings and subsea hardware interventions and installations. These vessels can carry and install
coiled tubing or umbilicals required to bring subsea well completions into production (tie-back to production facilities). The Company
also chartered an additional deepwater vessel, the Olympic Intervention IV, for an initial term of five years, which began in 2008. The
Company outfitted each of these deepwater vessels with two of its high-specification work-class ROVs.

Oceaneering’s Inspection segment provides non-destructive testing and inspection, and integrity management and assessment
services. The Company supplies inspection services to customers required to obtain third-party inspections to satisfy contractual
structural specifications, internal safety standards or regulatory requirements. The Company owns two mobile offshore production
systems: the floating production, storage and offloading system, Ocean Producer, which is operating offshore West Africa, and the
mobile offshore production system Ocean Legend, which is operating offshore Western Australia. The Company owns a 50% equity
interest in Medusa Spar LLC, which owns 75% of a production spar platform. Medusa Spar LLC’s revenue is derived from processing oil
and gas production for a fee based on the volumes processed. The spar is located on the Medusa field in the Gulf of Mexico.

Advanced Technologies

The Company’s Advanced Technologies segment provides engineering services and related manufacturing to meet a variety of
industrial requirements, including ship and submarine husbandry, search and recovery, maintenance and repair, commercial theme
park equipment and engineering services, and products for the space industry. The Company works for customers having specialized
requirements in underwater or other hazardous environments outside the oil and gas industry. It provides support for the United
States Navy, including underwater operations, data analysis, development of ocean-related computer software, and the design and
development of new underwater tools and systems. It also installs and maintains mechanical systems for the Navy’s surface ships,
submarines, piers, offshore structures and moorings. The Company provides products and services to National Aeronautics and Space
Administration (NASA) and aerospace prime contractors, and it manages the underwater activities for astronaut training at NASA’s
Neutral Buoyancy Laboratory.
Source: Reuters

More Business Descriptions

Oceaneering International, Inc. is an oilfield provider of engineered services and products to the offshore oil and gas industry, with a
focus on deepwater applications. Through the use of its applied technology, the Company also serves the defense and aerospace
industries. The Company’s business segments are contained within two businesses: services and products provided to the oil and gas
industry (Oil and Gas) and all other services and products (Advanced Technologies). Its five business segments within the Oil and Gas
business are Remotely Operated Vehicles (ROVs), Subsea Products, Subsea Projects, Inspection and Mobile Offshore Production
Systems. The services and products provided to the oil and gas industry include ROVs, built-to-order specialty hardware, engineering
and project management, subsea intervention services, non-destructive testing and inspection, manned diving and mobile offshore
production systems. For the fiscal year ended 31 December 2009, Oceaneering International's revenues fell 8% to $1.82B Net income
fell 6% to $188.4M. Revenues reflect a decrease in revenues from Subsea Products segment and decreased income from Mobile
Offshore Production Systems segments. Net income was partially offset by higher other income, a decrease in interest expense and an
increase in equity earnings of unconsolidated affiliates.
Source: Reuters

Oceaneering International Inc (USA) and its subsidiaries provide engineered products and services primarily to the offshore oil and
gas industry. It focuses on deepwater applications. Through the use of its applied technology expertise, the company also serves the
defense and aerospace industries. Its products and services include remotely operated vehicles, mobile offshore production systems,
built-to-order specialty hardware, engineering and project management, subsea intervention services, non-destructive testing and
inspection and manned diving.

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 OneSource One-Stop Reports for Oceaneering International

Source: BMI

Oceaneering International is an advanced applied technology company that provides engineered services and hardware to customers
who operate in marine, space and harsh environments. Its services and products are marketed worldwide to oil and gas companies,
government agencies and firms in the telecommunications, aerospace, and marine engineering and construction industries. The
company offers remotely operated vehicles, mobile offshore production systems, built-to-order specialty hardware, engineering and
project management, sub-sea intervention and installation services, non-destructive testing and inspections, and manned diving.
Oceaneering International was founded in 1964 as an air and mixed gas diving business in the Gulf of Mexico. It has expanded and
diversified through internal research and development, and acquisitions. The company has headquarters in Houston, multiple locations
throughout the United States, and facilities worldwide.
Source: infoUSA

Establishments primarily engaged in providing professional engineering services. Establishments primarily providing and supervising
their own engineering staff on temporary contract to other firms are included in this industry.
Source: infoUSA

Manufacturer and provider of engineered products and services to customers who operate in marine, space, and other harsh
environments. Products and services are provided worldwide to oil and gas companies, to government agencies, and to businesses in
the telecommunications, aerospace, marine engineering, and marine construction industries.
Source: CorpTech

Product Codes
Product Code Product Description
AUT-RO-AEGJ Robotic end effector systems
ENR-OG Oil and gas recovery systems
ENR-OG Umbilical termination assemblies
ENR-OG Subsea production and workover control systems
ENR-SV-O Underwater engineering services
ENV-SV-Z Underwater search and recovery services
MAT-TX-FG Thermal insulation
SUB-C L-C Underwater umbilicals
SUB-C L-C Underwater interface electromechanical connectors
SUB-ME-A Workover control umbilicals
SUB-ME-A Seismic air gun umbilicals
SUB-ME-A Subsea umbilical connectors
SUB-ME-Z Underwater manifold equipment
TAM-PV-M Subsea well flow-rate control systems
TEL-SM-SR Satellite retrieval equipment
TRN-MA-O Remote operated vehicles (ROVs)
TRN-MA-O Oceanographic electro-acoustic systems
TRN-MA-O Sea water hydraulic tools
TRN-MA-O Mobile offshore production systems
TRN-SS Crew-related spacecraft equipment
TRN-SS Cryogenic life support systems
TRN-SS Heat shielding systems
TRN-SV-C Underwater technical services
TRN-SV-R Aerospace engineering services
TRN-SV-R Underwater engineering services
TRN-SV-R Underwater technical services

Brand/Trade Names
C -Con - Metals R-Con - Metals
G-Con - Metals V-Con - Metals

Financial Data
Financials in: USD(mil)
1 Year Growth

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 OneSource One-Stop Reports for Oceaneering International

Revenue: 1,822.1 -7.9%

Net Income: 188.4 -5.5%
Assets: 1,880.3 12.6%
Long Term Debt: 120.0
Total Liabilities: 656.0
Working Capital: 0.1
31-Dec-
Date of Financial Data:
2009

Market Data
Quote Symbol: OII
Exchange: New York Stock Exchange
Currency: USD
Stock Price: 60.6
Stock Price Date: 03-26-2010
52 Week Price Change %: 49.9
Market Value (mil): 3,325.9
SEDOL: 2655583
ISIN: US6752321025
Equity and Dept Distribution:
Common Stock $0.25 Par, 12/09, 180M auth., 55,417,044 issd. less 499,292 shs. in Treas. @ $29.1M. Insiders control approx. 0.77%.
PO 9/87, 10M shs. @ $4by Shearson Lehman. 06/06, 2-for-1 stock split.

Shareholders
% Outstanding Shares held by Institutions: 91.879
Institutions Holding Shares: 693
Shares held by Institutions (mil): 50.459
Shares Purchased by Institutions 3 months (mil): 9.261
Shares Sold by Institutions 3 months (mil): 5.907

Key Corporate Relationships

Auditor: Ernst & Young
Auditor: Ernst & Young

Additional Infomation
ABI Number: 403574718
Fortune 1000 Rank: 901

© 1983-2010 Reuters Research Inc. All Rights Reserved.

© Copyright 2010, infoUSA. All Rights Reserved.
Copyright © 2010 Business Monitor International Ltd. All rights reserved.
© 2010 OneSource Information Services, Inc. All Rights Reserved.

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 OneSource One-Stop Reports for Oceaneering International

Corporate Family Corporate Structure News:

Oceaneering International
Oceaneering International
Total Corporate Family Members: 41
Excluded Small Branches: 6 (Available via export)

Company Name Company Location Country Industry Sales Employees Source

Type (USD mil)
Oceaneering International Parent Houston, TX United Oil Well Services 1,822.1 7,900 RT
States and Equipment
Oceaneering International Subsidiary Aberdeen United Personal Services 308.3 1,218 EXP
Services Ltd. Kingdom
Oceaneering Unit Inspection Subsidiary Spartan South Business Services 89 GW
(Pty) Ltd Africa
Cet Medway Ltd. Subsidiary London United Engineering 3.9 34 RM
Kingdom Consultants
Ois International Inspection Subsidiary Aberdeen United Business Services 0.0 3 EXP
PLC. Kingdom
Arlis Welding (Inspection) Subsidiary Stockton On United Construction 2 RM
Co. Ltd. Tees Kingdom Services
Brompton Holdings PLC Subsidiary Aberdeen United Business Services EXP
Kingdom
Ois PLC Subsidiary Swansea United Business Services 3 EXP
Kingdom
Ois Teesside Ltd. Subsidiary Stockton On United Business Services 20 RM
Tees Kingdom
Ois Diagnostics Subsidiary Stockton On United Business Services 7.7 6 EXP
Ltd. Tees Kingdom
Icon (Europe) Ltd. Subsidiary Aberdeen United Business Services RM
Kingdom
Inspectorate M. E. Subsidiary Stockton On United Business Services RM
S. Ltd. Tees Kingdom
Eae (Rt) Ltd. Subsidiary Stockton On United Business Services RM
Tees Kingdom
Everard Pipelines (U. Subsidiary Aberdeen United Business Services RM
K. ) Ltd. Kingdom
Oilfield Inspection Subsidiary Stockton On United Business Services RM
Services Overseas Tees Kingdom
Ltd.
A. I. S. L. Ltd. Subsidiary Stockton On United Business Services RM
Tees Kingdom
Oceaneering Multiflex Subsidiary Fife United Engineering 75.0 IUSA
Kingdom Consultants
Multiflex Ltd. Subsidiary Aberdeen United Nonclassifiable RM
Kingdom Industries
Solus Schall Ltd. Subsidiary Stockton On United Nonclassifiable RM
Tees Kingdom Industries
Ocean Systems Engineering Subsidiary Stockton On United Oil and Gas RM
Ltd. Tees Kingdom Operations
Ian Murray (Engineering) Ltd. Subsidiary Aberdeen United Nonclassifiable RM
Kingdom Industries
Oceaneering International, Inc. Branch Morgan City, United Water 350.0 550 IUSA
LA States Transportation
Marine Production Systems do Subsidiary Niterói Brazil Engineering 37.3 400 IUSA
Brasil Consultants
Oceaneering International, Inc. Branch Chesapeake, United Water 66.8 301 IUSA
VA States Transportation
Oceaneering International Inc Branch Houston, TX United Engineering 62.1 300 IUSA
States Consultants
Oceaneering International Inc Branch Houston, TX United Aerospace and 58.8 250 IUSA
States Defense
Grayloc Products Subsidiary Houston, TX United Appliance and Tool 200 IUSA
States
Oceaneering International, Inc. Branch Houma, LA United Water Utilities 18.3 130 IUSA
States

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 OneSource One-Stop Reports for Oceaneering International

Solus Ocean Systems Inc Subsidiary Maadi, Cairo Egypt Metal Mining 17.0 100 BMI
Oceaneering de Venezuela CA Subsidiary Maracaibo, Venezuela Crops 2.0 100 BMI
Zulia
Oceaneering International Pte. Subsidiary Singapore Singapore Engineering 1.0 100 IUSA
Ltd. Consultants
Oceaneering International Inc Branch Ingleside, TX United Business Services 11.0 78 IUSA
States
Oceaneering International Inc Branch New Iberia, United Construction 5.0 25 IUSA
LA States Services
Oceaneering Entertainment Branch Orlando, FL United Construction 4.1 25 IUSA
System States Services
Oceaneering Entertainment Branch Hanover, MD United Engineering 0.6 3 IUSA
Systems States Consultants

Data Noted as Source: RT, © 1983-2010 Reuters Research Inc. All Rights Reserved.
Data Noted as Source: EXP, © 2010 Experian Ltd. All rights reserved.
Data Noted as Source: GW, Copyright © 2010 Graham & Whiteside Limited
Data Noted as Source: RM, © 2010 RM Online, Ltd. All Rights Reserved
Data Noted as Source: IUSA, © Copyright 2010, infoUSA. All Rights Reserved.
Data Noted as Source: BMI, Copyright © 2010 Business Monitor International Ltd. All rights reserved.

Corporate linkage data:

© Copyright 2010, infoUSA. All Rights Reserved.
Copyright © 2010 Business Monitor International Ltd. All rights reserved.
Published by OneSource Information Services, Inc., 2010

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 OneSource One-Stop Reports for Oceaneering International

Oceaneering International

Competitors Report

CompanyName Location Employees Ownership

Acergy S.A. London, United Kingdom 7,000 Public
Global Industries, Ltd. Carlyss, Louisiana, United States 2,793 Public
Helix Energy Solutions Group Inc. Houston, Texas, United States 3,600 Public
Weatherford International Ltd. Zug, Switzerland 52,000 Public

© 1983-2010 Reuters Research Inc. All Rights Reserved.

Published by OneSource Information Services, Inc.,Apr, 2010

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 OneSource One-Stop Reports for Oceaneering International

Oceaneering International Executives Report

Houston, Texas, United States, Tel: 713-329-4500, URL: http://www.oceaneering.com/, Executives
Page

Board of Directors

Name Title Function Source

John R. Huff
Non-Executive Chairman of the Board Chairman RT OSX
View Email
Reuters Biography (Oceaneering International)
Mr. Huff is a Non-Executive Chairman of the Board of Oceaneering International. He has been Chairman of
Oceaneering’s Board of Directors since August 1990. He served as Chief Executive Officer of Oceaneering from 1986
to May 2006. Mr. Huff also serves as a director of BJ Services Company, Rowan Companies, Inc., KBR, Inc. and
Suncor Energy, Inc. Mr. Huff has been a director of Oceaneering since 1986.

Education (Source: RT )
B Civil Engineering, Georgia Tech University
, William Marsh Rice University

Compensation/Salary: 800,000

T. Jay Collins
President, Chief Executive Officer, Director Director/Board Member RT NP
View Email
Reuters Biography (Oceaneering International)
Mr. T. Jay Collins is the President, Chief Executive Officer, Director of Oceaneering International Inc. He joined
Oceaneering in 1993 as Senior Vice President and Chief Financial Officer. In 1995, he was appointed Executive Vice
President – Oilfield Marine Services. He was appointed the company's President and Chief Operating Officer in 1998
and the company's Chief Executive Officer in 2006. He was elected a director of Oceaneering in 2002.

Education (Source: RT )
MBA , Harvard University
ME , William Marsh Rice University
BA , William Marsh Rice University

Compensation/Salary: 585,000

Jerold J. DesRoche Director Director/Board Member RT

Reuters Biography (Oceaneering International)
Mr. DesRoche has been a Director of Oceaneering International since 2003. Mr. DesRoche has been a partner and a
director of National Power Company, a privately owned company that owns and operates power generation facilities
using waste fuels and renewable energy, since 1991. He served as President and Chief Executive Officer of ABB
Combustion Engineering Canada, Inc. from 1988 to 1991. He is a member of the Compensation Committee and the
Nominating and Corporate Governance Committee of Oceaneering’s Board.

David S. Hooker Director Director/Board Member RT

Reuters Biography (Oceaneering International)
Mr. Hooker has been a Director of Oceaneering International since 1973. Mr. Hooker has been Chairman of Avoco
Secure Ltd., a software development and distribution company which principally focuses on applications providing
document content security and authentication, since November 2006, and Chairman of Ocean Hover Limited, an
oilfield hovercraft marketing organization, since January 2004. Previously, he served as Chairman of Goshawk
Insurance Holdings PLC, an insurance company, from January 1996 to October 2003. He is also a director of Aminex
plc, an oil and gas exploration and production company, and a director of Eleuthera Capital Ltd., a helium exploration
company. He is Chairman of the Audit Committee of Oceaneering’s Board and a member of the Nominating and
Corporate Governance Committee of Oceaneering’s Board.

D. Michael Hughes Director Director/Board Member RT

Reuters Biography (Oceaneering International)
Mr. Hughes has been a Director of Oceaneering International since 1970. Mr. Hughes has been owner of The Broken
Arrow Ranch and affiliated businesses, which harvest, process and market wild game meats, since 1983. He has
been associated with Oceaneering since its incorporation, serving as Chairman of the Board from 1970 to 1980 and
from 1984 to 1990. He is Chairman of the Nominating and Corporate Governance Committee of Oceaneering’s Board
and a member of the Audit Committee of Oceaneering’s Board.

Harris J. Pappas Director Director/Board Member RT

Reuters Biography (Oceaneering International)

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 OneSource One-Stop Reports for Oceaneering International

Mr. Pappas has been a director of Oceaneering International since 1996. Mr. Pappas has been President of Pappas
Restaurants, Inc., a privately owned multistate restaurant group, since 1983 and Chief Operating Officer and director
of Luby’s, Inc., a publicly owned restaurant company, since March 2001. He also serves on the Advisory Boards of
Frost National Bank in Houston and the Boys & Girls Clubs of Greater Houston. He is Chairman of the Compensation
Committee of Oceaneering’s Board and a member of the Audit Committee of Oceaneering’s Board.

Education (Source: RT )
BBA Finance and Accounting, Texas A&M University

Executives

Name Title Function Source

T. Jay Collins
President, Chief Executive Officer, Director Chief Executive Officer RT NP
View Email
Reuters Biography (Oceaneering International)
Mr. T. Jay Collins is the President, Chief Executive Officer, Director of Oceaneering International Inc. He joined
Oceaneering in 1993 as Senior Vice President and Chief Financial Officer. In 1995, he was appointed Executive Vice
President – Oilfield Marine Services. He was appointed the company's President and Chief Operating Officer in 1998
and the company's Chief Executive Officer in 2006. He was elected a director of Oceaneering in 2002.

Education (Source: RT )
MBA , Harvard University
ME , William Marsh Rice University
BA , William Marsh Rice University

Compensation/Salary: 585,000

Vice President, General Manager-Oilfield

Norb D. Gorman Managing Director IUSA
Projects & Diving
Senior Vice President - Remotely Operated
Kevin F. Kerins Operations Executive RT
Vehicles
Reuters Biography (Oceaneering International)
Mr. Kevin F. Kerins is Senior Vice President - Remotely Operated Vehicles of Oceaneering International, Inc. Since
1978, he has held a variety of positions of responsibility in ROV operations, marketing and administration in various
geographic locations. He was appointed Vice President, Eastern Region ROVs in 2003, Vice President and General
Manager, ROVs in 2006 and Senior Vice President, ROVs in August 2009.

Executive Vice President and Chief

M. Kevin McEvoy Operations Executive OSX
Operating Officer
Reuters Biography (Oceaneering International)
Mr. M. Kevin McEvoy is the Chief Operating Officer, Executive Vice President of Oceaneering International Inc. He
joined the company in 1984 when we acquired Solus Ocean Systems, Inc. Since 1984, he has held various senior
management positions in each of the company's operating groups. He was appointed a Vice President in 1990, a
Senior Vice President in 1998, Executive Vice President in 2006 and to the additional office of Chief Operating Officer
in February 2010.

Compensation/Salary: 370,000

Mike Todd Manager-Operations Operations Executive IUSA

Robert P. Moschetta
Vice President-Health, Safety & Environment Environment/Safety Executive IUSA NP
View Email
Director-Corporate Health, Safety &
Matthew R. Sterner Environment/Safety Executive IUSA
Environment
Regina Gutierrez Administrator-Inoformation Technology Administration Executive IUSA
Senior Vice President, General Counsel,
George R. Haubenreich Company Secretary RT
Secretary
Reuters Biography (Oceaneering International)
Mr. George R. Haubenreich, Jr., Senior Vice President, General Counsel and Secretary of Oceaneering International
Inc. He joined Oceaneering in 1988.

Compensation/Salary: 310,000

Marvin J. Migura Chief Financial Officer, Senior Vice President Finance Executive RT
Reuters Biography (Oceaneering International)
Mr. Marvin J. Migura is Senior Vice President and Chief Financial Officer of Ocaneering International Inc. since May
1995. He joined the company in 1995. From 1975 to 1994, he held various financial positions with Zapata
Corporation, then a diversified energy services company, most recently as Senior Vice President and Chief Financial
Officer from 1987 to 1994.

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Compensation/Salary: 335,000

Ruben Tamez Director-Internal Audit Finance Executive IUSA

John L. Zachary
Director-Financial Business Systems Finance Executive IUSA NP
View Email
W. Cardon Gerner
Vice President, Chief Accounting Officer Accounting Executive RT NP
View Email
Reuters Biography (Oceaneering International)
Mr. W. Cardon Gerner is Vice President and Chief Accounting Officer of Oceaneering International Inc. since
September 1, 2006. From 1999 to 2006, he held various financial positions with Service Corporation International, a
global provider of death-care services, serving as Vice President Accounting from 2002 to 2006. He also served as
Senior Vice President and Chief Financial Officer of Equity Corporation International 1995 to 1999. He is a Certified
Public Accountant.

Education (Source: RT )
BBA Accounting, University of Texas at Austin

Patrick Hill
Controller-Oie Worldwide Accounting Executive NP
View Email
Robert H. Stevenson Manager Taxation Accounting Executive IUSA
Jack Jurkoshek Director-Investor Relations Investment Executive IUSA
Robert P. Mingoia Vice President & Treasurer Treasurer IUSA
Janet G. Charles Vice President-Human Resources Human Resources Executive IUSA
Judy Goodson
Director Training and Development Human Resources Executive NP
View Email
Charles A. Royce Vice President-Sales & Marketing Sales Executive IUSA
Peg Newman
Manager-Marketing Marketing Executive IUSA NP
View Email
Steve Shirt Manager-Data Communications Public Relations Executive IUSA
Mark Stevens Communications Public Relations Executive ACR
Kurt Barousse
Business Systems Director Information Executive NP
View Email
Gregg K. Farris Vice President-Information Technology Information Executive IUSA
Michelle Gentile
Assistant To The Chief Information Officer Information Executive NP
View Email
Pat Powell
Manager Info Service Information Executive NP
View Email
Senior Vice President-Deepwater Engineering/Technical
F. Richard Frisbie IUSA
Technologies Executive
Brendan Kelly Engineering/Technical
Vice President Science and Technology NP
View Email Executive
Engineering/Technical
Kirk Schumacher Manager-Engineering IUSA
Executive
Business Development
Stephen E. Bradshaw Vice President-Business Development IUSA
Executive
Anthony Franklin Business Development
Business Development Manager NP
View Email Executive
David K. Lawrence Assistant General Counsel Legal Executive IUSA
Susan Ledet Manager-Office Services Manufacturing Executive IUSA
Todd Hoefler Vice President-Supply Chain Management Logistics Executive IUSA
David Leung Manager-Insurance Insurance Executive IUSA
Michael Campbell
Network Support Supervisor Other NP
View Email
Mark Galagaza
Vice President of Interbenching Engineering Other NP
View Email
Jerry A Gauthier Vice President Other IUSA
David Kelsall Manager-Business Other IUSA
Tim Proeber
Manager It Other NP
View Email
Carl Roemmele
Bd Manager Other NP
View Email

Data Noted as Source: OSX , © 2010 OneSource Information Services, Inc. All Rights Reserved.
Data Noted as Source: IUSA , © Copyright 2010, infoUSA. All Rights Reserved.
Data Noted as Source: RT , © 1983-2010 Reuters Research Inc. All Rights Reserved.
Data Noted as Source: ACR , (c) 2010 Applied Computer Research, Inc. All Rights Reserved.
Data Noted as Source: NP , © 2010 NetProspex Inc. All Rights Reserved.

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Published by OneSource Information Services, Inc., Apr, 2010

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Oceaneering International

Significant Developments

Oceaneering International, Inc. Announces Share Repurchase Program

Feb 22, 2010

Oceaneering International, Inc. announced that its Board of Directors has approved a share repurchase program under which the
Company may repurchase up to six million shares of its common stock on a discretionary basis. Six million shares constitute 11% of the
Company's approximately 55 million outstanding common shares.

Oceaneering International, Inc. Issues Q1 2010 EPS Guidance In Line With Analysts' Estimates; Reaffirms FY 2010 EPS
Guidance
Feb 17, 2010

Oceaneering International, Inc. announced that for first quarter of 2010, it expects earnings per share (EPS) to be in the range of $0.65-
$0.75. The Company reaffirmed fiscal 2010 EPS guidance and expects EPS to be relatively flat with 2009, in the range of $3.25-$3.55.
According to Reuters Estimates, analysts on an average are expecting the Company to report EPS of $0.75 for first quarter of 2010 and
EPS of $3.49 for fiscal 2010.

Oceaneering International, Inc. Q4 2009 EPS Guidance Below Estimates; Narrows FY 2009 EPS Guidance To A Range
Below Estimates; Issues FY 2010 EPS Guidance In Line With Analysts' Estimates
Oct 28, 2009

Oceaneering International, Inc. announced that for fourth quarter of 2009, it expects earnings per share (EPS) to be in the range of
$0.75-$0.81. For fiscal 2009, the Company is narrowing guidance range to $3.32-$3.38. For fiscal 2010, it expects EPS to be relatively
flat with fiscal 2009, in the range of $3.25-$3.55. According to Reuters Estimates, analysts on an average are expecting the Company to
report EPS of $0.84 for fourth quarter of 2009; EPS of $3.39 for fiscal 2009 and EPS of $3.50 for fiscal 2010.

Oceaneering International, Inc. Announces Corrosion And Inspection Management Services Contract Award
Sep 03, 2009

Oceaneering International, Inc. announced that in June it obtained a corrosion and inspection management services contract from BP
Exploration (Caspian Sea) Ltd. (BP) with estimated revenue of approximately $45 million over an initial three-year term. At the end of
the initial term, BP has two consecutive options to extend the contract for a period of one year each. The assets covered by the contract
include BP's onshore Sangachal Terminal and offshore production facilities in Azerbaijan, and export pipelines in both Azerbaijan and
Georgia. Under the terms of the contract, Oceaneering will provide risk-based inspection plans derived from detailed corrosion
assessments. These assessments will be based on both conventional non-destructive testing (NDT) and specialized inspection techniques.
Conventional NDT includes magnetic particle, dye penetrant, and visual inspections. Specialized inspections utilize more advanced
technologies, such as non-invasive ultrasonic corrosion mapping, which provides a reproducible fingerprint, and long-range ultrasonics,
which provide a rapid and reliable technique for assessing the condition of small and large-diameter pipes. Furthermore, Oceaneering will
provide corrosion trend and defect analyses to support facility maintenance and repair plans and to meet compliance requirements.

Oceaneering International, Inc. Announces Kizomba Satellites Umbilical Contract

Aug 18, 2009

Oceaneering International, Inc. announced that it secured in June a contract from Esso Exploration Angola (Block 15) Limited, a
subsidiary of Exxon Mobil Corporation, to supply umbilicals for the Kizomba Satellites development located in Block 15 offshore Angola,
West Africa. The order is for electro-hydraulic steel tube control umbilicals totaling approximately 34 kilometers (21 miles) in length and
a hardwired communication link (HCL) umbilical about 15 kilometers (9.5 miles) in length. Product manufacturing is planned to be
performed at the Oceaneering Multiflex facility in Panama City, Florida.

Oceaneering International, Inc. Narrows FY 2009 Earnings Outlook To A Range In Line With Estimates; Issues Q3 2009
EPS Outlook In Line With Estimates; Announces Petrobras Umbilical Contract
Jul 29, 2009

Oceaneering International, Inc. narrowed fiscal 2009 earnings per share (EPS) guidance range to $3.25 to $3.45 from $3.10 to $3.60,
which is unchanged at the midpoint. The Company expect to generate EBITDA in the range of $400 to $420 million. For the third quarter

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 OneSource One-Stop Reports for Oceaneering International

of 2009, the Company expects EPS of $0.82 to $0.90. According to Reuters Estimates, analysts on an average are expecting the
Company to report EPS of $3.32 and EBITDA of $412 million for fiscal 2009; EPS of $0.86 for the third quarter of 2009. The Company
also announced that it has secured a contract in late June with estimated revenue in the range of $44 to $64 million from Petrobras
Netherlands B.V. - PNBV, a subsidiary of Petroleo Brasileiro S/A. The contract is an umbilical global supply order for four exploration and
production business units offshore Brazil; more specifically, the order is for up to 52 electro hydraulic thermoplastic control umbilicals
totaling approximately 165 kilometers (100 miles) in length. The umbilicals will be used to supply power to and perform chemical
injection for various subsea wells. Product manufacturing has commenced at the Oceaneering Multiflex facility in Niteroi, Brazil and is
scheduled to be completed by late 2010.

Oceaneering International, Inc. Issues Q2 2009 EPS Outlook In Line With Analysts' Estimates; Raises FY 2009 EPS
Outlook; Issues FY 2009 EBITDA Outlook In Line With Analysts' Estimates
Apr 29, 2009

Oceaneering International, Inc. announced that for the second quarter of 2009, it forecasts earnings per share (EPS) of $0.75 to $0.85.
For fiscal 2009, the Company raised the bottom of EPS guidance range by $0.10, resulting in a range of $3.10 to $3.60. The Company
expects to generate EBITDA in the range of $385 million to $440 million for fiscal 2009. According to Reuters Estimates, analysts were
expecting the Company to report EPS of $0.82 for the second quarter of 2009; EPS of $3.21 and EBITDA of $416 million for fiscal 2009.

©1983-2010 Reuters Research Inc. All Rights Reserved.

Published by OneSource Information Services, Inc.,Apr, 2010

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 OneSource One-Stop Reports for Oceaneering International

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 OneSource One-Stop Reports for Oceaneering International

MILITARY $42.7 Million Federal Contract Awarded to Oceaneering International

Targeted News Service
09 April 2010

[What follows is the full text of the news story.]

Related Companies
Oceaneering [profile]
By Targeted News Service International

WASHINGTON, April 9 -- Oceaneering International Inc., Hanover, Md., won a federal contract Related Geographies
valued at up to $42,698,164 from the U.S. Naval Sea Systems Command, Mechanicsburg,
Asia
Pa., for services in support of the Deep Submergence Systems Program Directorate of the
Portsmouth Naval Shipyard. Places of performance will be in Bremerton, Wash.; Chesapeake, North America
Va.; Diego Garcia; Guam; Hanover, Md.; Kittery, Maine; and Pearl Harbor, Hawaii. Guam
United States
For more information about Targeted News Service's products, including its daily federal District of Columbia
contract report, please contact: Myron Struck, [email protected], Editor, Targeted Hawaii
News Service LLC, Springfield, Va., Direct: 703/866-4708, Cell: 703/304-1897.
Maine
Maryland
55ChristineVerg100409-db-244228 EditorHarms
Pennsylvania
Virginia
Washington

Related Industries
1000 Metal mining
3720 Aircraft and parts
Aerospace & [profile]
Defense
Metal Mining [profile]
13100 Mining of iron ores
1310 Metal Ore Mining
2824 Aircraft Manufacturing

© 2010 Acquire Media Corporation. Published by OneSource Information Services, Inc., April 2010

Oceaneering International Announces First Quarter 2010 Earnings Release and Conference Call
Dates
Business Wire
07 April 2010

[What follows is the full text of the news story.]

Related Companies
Oceaneering [profile]
HOUSTON--(BUSINESS WIRE)-- Oceaneering International, Inc. (NYSE: OII) announced it will International
release its first quarter 2010 earnings on Wednesday, April 28 after 5:00 p.m. Eastern (4:00
p.m. Central).
Related Topics
Conferences, Seminars &
A conference call to discuss these results and the Company s future business outlook is
Conventions
scheduled for Thursday, April 29 at 11:00 a.m. Eastern (10:00 a.m. Central). This call is being
webcast by Thomson Reuters and can be accessed at Oceaneering s website at Earnings & Financial
www.oceaneering.com/investor-relations/. An archived replay will be available for two weeks Performance
starting one hour after the call. Economic Health
Energy Conservation
Oceaneering is a global oilfield provider of engineered services and products primarily to the Finance & Accounting
offshore oil and gas industry, with a focus on deepwater applications. Through the use of its Standards
applied technology expertise, Oceaneering also serves the defense and aerospace industries. Financial Markets

For further information, please contact Jack Jurkoshek, Director Investor Relations, Related Geographies

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 OneSource One-Stop Reports for Oceaneering International

Oceaneering International, Inc., 11911 FM 529, Houston, Texas 77041; Telephone 713-329- North America
4670; Fax 713-329-4653; E-Mail [email protected].
United States
Texas
Oceaneering International, Inc.
Investor Relations
Jack Jurkoshek, 713-329-4670 Related Industries
[email protected] 1000 Metal mining
3530 Construction and
Source: Oceaneering International, Inc. related machinery
Constr. & Agric. [profile]
Machinery
Metal Mining [profile]
13100 Mining of iron ores
29230 Manufacture of non-
domestic cooling and
ventilation equipment
1310 Metal Ore Mining
2862 Mining and
Construction Machinery
Manufacturing

© 2010 Acquire Media Corporation. Published by OneSource Information Services, Inc., April 2010

REP. DAVID E. PRICE HOLDS A HEARING ON DHS AIR AND MARINE OPERATIONS AND
INVESTMENTS
Congressional Testimony
24 March 2010

[What follows is the full text of the news story.]

Related Companies
E ON AG [profile]
HOUSE COMMITTEE ON APPROPRIATIONS, SUBCOMMITTEE ON HOMELAND
Oceaneering [profile]
International
SECURITY HOLDS A HEARING ON DHS AIR AND MARINE OPERATIONS
Related Topics
AND INVESTMENTS Finance & Accounting
Standards
MARCH 23, 2010 Fraud
Regulatory Activity
SPEAKERS:
Related Geographies
REP. DAVID E. PRICE, D-N.C. Africa
Asia
CHAIRMAN Central America and
Caribbean
REP. JOSE E. SERRANO, D-N.Y. North America
South America
REP. CIRO D. RODRIGUEZ, D-TEXAS Afghanistan
Mexico
REP. C.A. DUTCH RUPPERSBERGER, D-MD. Puerto Rico
Somalia
REP. ALAN B. MOLLOHAN, D-W.VA. United States
California
REP. NITA M. LOWEY, D-N.Y. District of Columbia
Florida
REP. LUCILLE ROYBAL-ALLARD, D-CALIF. Illinois
Iowa
REP. SAM FARR, D-CALIF. Kentucky
Maine
REP. STEVEN R. ROTHMAN, D-N.J. Maryland

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 OneSource One-Stop Reports for Oceaneering International

Minnesota
REP. DAVID R. OBEY, D-WIS. New Jersey
New York
EX OFFICIO North Carolina
North Dakota
REP. HAROLD ROGERS, R-KY. Texas
West Virginia
RANKING MEMBER Wisconsin

REP. JOHN CARTER, R-TEXAS Related Industries

1000 Metal mining
REP. JOHN CULBERSON, R-TEXAS 2700 Printing and publishing
2731 Book publishing
REP. MARK STEVEN KIRK, R-ILL. Metal Mining [profile]
Printing & [profile]
REP. KEN CALVERT, R-CALIF. Publishing
13100 Mining of iron ores
REP. JERRY LEWIS, R-CALIF. 22110 Publishing of books
1310 Metal Ore Mining
EX OFFICIO 2410 Printing and Services
to Printing
2423 Book and Other
WITNESSES: Publishing

MICHAEL KOSTELNIK,

ASSISTANT COMMISSIONER,

OFFICE OF AIR AND MARINE FOR U.S. CUSTOMS AND

BORDER PROTECTION

REAR ADMIRAL VINCE ATKINS (USCG),

ASSISTANT COMMANDANT FOR CAPABILITY

[*]

PRICE: Good morning. The subcommittee will come to order.

We are going to be examining this morning the respective roles and the coordination between
the Coast Guard and Customs and Border Protection in carrying out their air and marine
missions. This is a somewhat different way of configuring a hearing, but we think it will let us
get at some issues that maybe wouldn't be raised in exactly the same way in separate
discussions with the Coast Guard and CBP, and so we appreciate you both being here.

One thinks of the department as a police force, analogous to a police force in some ways. The
Coast Guard and the CBP walk the same beat watching for smugglers and working to thwart
their efforts. Their aircraft and vessels patrol our borders and coasts and interdict migrants
and illegal drugs. Their illustrious histories originate in the first acts of the U.S. Congress to
collect revenue, counter smuggling, and protect life and property along the coast. And their
range is vast, 7,500 miles of land border and 95,000 miles of coastline.

This hearing is the first opportunity for this subcommittee to examine how these essential
programs work together, work in tandem to support a wide range of law enforcement,
national security and humanitarian missions. We welcome Admiral Vince Atkins, assistant
commandant for capability for the U.S. Coast Guard, and Michael Kostelnik, assistant
commissioner for the Office of Air and Marine for U.S. Customs and Border Protection, for a
frank discussion of this topic.

Admiral Atkins is a leading member of the DHS senior guidance team on matters related to
the department's maritime air and surface capabilities and is the Coast Guard's lead
executive for the Predator B partnership, one area of focus for today's hearing. Before his
current assignment, Admiral Atkins served as deputy director of response policy, overseeing
development of policy guidance for the Coast Guard's statutory missions and helping frame

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the foundation for cross-agency partnerships that we will examine today.

Assistant Commissioner Kostelnik directs the world's largest civilian aviation and maritime
agency. Before coming to CBP, the commissioner had a distinguished U.S. Air Force career,
retiring as major general. He then ran NASA's manned space and international space station
programs. Over his five years with CBP, he has helped transform air and marine into a
national enterprise, a long way from its origins as a loose confederation of field operations.

Cooperation between these agencies has been very successful in places like Puerto Rico,
where shared resources have slowed undocumented immigration through the Mona Pass and
intercepted illegal drugs headed for American shores. On the drug front, their joint efforts are
combined with DOD and DEA under the Joint Interagency Task Force South, which
coordinates efforts in the Western Hemisphere to detect, monitor and interdict drug smuggling
by sea and air.

Both agencies have long conducted aerial surveillance along our coasts. The Coast Guard has
its C-130 and C-144 aircraft and CBP has its P-3 and Dash-8. All are used to identify and
track smugglers moving drugs from South America to the Caribbean and Gulf Coast. Both
agencies operate helicopters for interdiction, law enforcement support, and humanitarian
assistance.

CBP and the Coast Guard are jointly developing a maritime variant of the Predator B
unmanned aircraft system to extend their surveillance abilities. This maritime variant, named
the Guardian, was first flown in 2008 and is undergoing additional operational testing. Another
is requested by CBP in the 2011 budget. The Guardian represents a new level of collaboration
on this critical mission, and we look forward to learning more details about this program
today.

Coordination between these two agencies also extends to managing and sharing assets. Over
the past two years, Coast Guard has transferred 73 small vessels, including 55 SAFE boats to
CBP for refurbishment and marine deployment. Both agencies participate in DHS councils to
review aircraft and vessel procurement planning and decisions, and they have benefited from
access to each other's contracts.

In light of such cooperation, we hope to hear today how the two agencies manage their
overlapping jurisdictions, how they coordinate their missions, and how they share intelligence.

Despite many positive elements, we have concerns about the sustainability of these
programs. First, a lack of trained operators and support staff could reduce DHS capacity to
carry out aerial surveillance missions. For example, a request for 2011 cuts 120 CBP pilots
and other positions funded last year to support the UAS program. This seems inconsistent, at
least on the face of it, with plans to deploy the Predator.

In addition, while both Coast Guard and the CBP are acquiring new marine and air assets,
they're burdened with aging fleets, which are increasingly expensive and dangerous to
operate. The need for Coast Guard recapitalization is well known. And CBP's air assets are
over 33 years old on average. We expect to explore today whether CBP can sustain its
operating tempo while delaying replacements as anticipated in the budget.

And turning an eye toward the long-term situation of these assets, this subcommittee needs
updated and overdue strategic recapitalization plans for CBP and the Coast Guard.

I suppose I am starting to sound like a broken record on that issue, but I have to say again,
without this information we cannot assess how the department will modernize these aging
fleets, and therefore it is very difficult to put our 2011 budget decisions in perspective.

Admiral Atkins and Commissioner Kostelnik, we anticipate an informative discussion today.

Your full written statements will be placed in the record, so we are going to ask you to limit
your remarks to a five-minute oral presentation. And before you begin, I want to turn to our
distinguished ranking member, Hal Rogers, for his comments.

ROGERS: Thank you, Mr. Chairman.

General and Mr. Commandant, thank you for being here. Welcome to the committee. It is
good to see you and to be seen with you.

Each of you, of course, has a very tough job. You are the ones caught between the bean
counters here in Washington and the bureaucrats at EHS (ph) headquarters and the brave

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men and women in the field who put their lives on the line every day to keep us safe and
secure.

And you're the ones apparently getting squeezed, shortchanged, by the fiscal '11 budget, a
budget that proposes to substantially increase the department's headquarters staff and put
$200 million of its money toward security costs of terrorist trials, needlessly I might add,
while also cutting funding for CBP's air and marine personnel by 3.6 percent, cutting the
Coast Guard operational personnel by more than 1,110 military billets, and decommissioning
or deactivating 19 operational components, cutting funding for CBP's air and marine
procurement and maintenance by 3.2 percent, and cutting funding for Coast Guard
acquisitions by more than 10 percent.

So to put it mildly, your tough jobs are getting made tougher by an administration that is
increasing bureaucracy at the expense of operations, a prioritization that I find simply
indefensible.

We all know the threat. We all know your aging assets are in dire need of recapitalization. The
challenge before you now is how to meet your mission requirements with fewer dollars. This
is certainly no small chore since the boats and aircraft our frontline operators need are
expensive, and the systems to make those assets work together are inherently complex.

So we're counting on both of you and the men and women that you command to find a way to
collectively use the talent and experience at CBP and the Coast Guard to link funding to real
results and do this in a fiscally responsible way.

While the joint program offices that you've established are noteworthy, it is collaboration at
the technical level, in the field, that I find far more significant. In fact, the need for teamwork
during operations was probably best summed up by the Coast Guard sector commander in
San Juan, then-Captain Jim Tunstall, who simply remarked, "When CBP isn't flying, I can't see
anything." What Captain Tunstall was specifically referring to was the Mona Pass, as the
chairman indicated, a heavily-trafficked stretch of water where CBP provides aerial
surveillance since the Coast Guard has no maritime patrol aircraft in Puerto Rico.

That teamwork exhibited by CBP and the Coast Guard in Puerto Rico exemplified what I
believe is the most critical asset in our entire homeland security arsenal, sheer will -- the will
to put turf battles aside and seek any and all means to further the broader homeland security
mission. It is exactly what was envisioned when DHS was established, and it is exactly what
the American people expect of our security professionals today.

So that brings us to today's hearing, what I hope will be a thoughtful discussion of how CBP
and the Coast Guard are working together to further the protection of our borders and
shores.

Gentlemen, please know that we and the American people are very appreciative of the work
that you are doing, very grateful for all of the sacrifices made by those in the field whom you
represent here today. We thank you for being here. We look forward to hearing your views.

PRICE: (OFF-MIKE)

KOSTELNIK: Well, thank you Mr. Chairman. It is a pleasure to be here -- Ranking Member
Rogers, Congressman Calvert.

First, I begin by thanking this committee for your outstanding support over the five years that
I have been associated with the program. And as the chairman properly noted, Air Marine,
although our roots with U.S. Customs go back to the beginning of the Customs Service more
than 200 years, the current configuration of Air Marine is only five years old.

And, of course, our recapitalization efforts is a significant issue going back to the Legacy
Border Patrol air fleet that was in poor condition, and the Legacy Customs fleet of aircraft and
maritime vessels for support. And back in 2005 at the beginning of the merger, there were
insubstantial funds for any serious recapitalization effort.

Now five years later, with the support of this committee, we have done a lot of things. You all
have provided more than a $1 billion for aircraft recapitalization program, which we think we
have invested wisely. We still operate some of the oldest aircraft in the inventory, but don't
confuse age with capability.

Going back to the P-3 program, in front of our larger sister service, United States Navy, we

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made a decision in 2005 to restore the P-3 fleet with your support, create a service life
extension program. We have done that. In 2006, recall, all of those aircraft were grounded
through 2007 and 2008. We tried to fly the transit zone mission with three or four aircraft, and
today I am pleased to tell you that 11 of those 16 aircraft are operational. Three are still
permanently grounded until re-winging, but we have completed the acquisition process in
2011 for 10 wing-sets.

We have the first aircraft to be re-winged in advance of the Navy fleet that rolls out this
spring and will enter operational service, the second aircraft later this year, and we will
complete the re- winging of all 10 aircraft as early as 2015.

We have taken due diligence on some of the oldest aircraft we have. We still operate more
than 50 percent of our fleet with aircraft that are 33 years, on average, old. Some of those
are a concern. We manage those very closely. The worst ones we've started to be de-access.
In fact, this year we lost our confidence in our MB- 600 (ph) fleet, grounded those nine
helicopters.

The P-3s have been restored. We are updating the A-model Black Hawk to M-model
configuration. With your support, we purchased new M- model Black Hawks. So while we keep
the old aircraft solid and maintain them on duty and upgrade them with sensors and new
capabilities and upgrades to keep them safe, we are also recapitalizing the middle parts of
our fleet. That while still functional and not safety in flight issue, have been short, you know,
in the areas of performance. A lot of that has been with your help, most importantly last year
with the plus-up of our maritime program.

Clearly, with the things happening in Somalia and off the coast of the Horn of Africa with
pirating and so forth, clearly small boats and the approaches to the country are an
increasingly important part of our nation's defense. While we focus on the land borders, we've
not forgotten about the water borders, and with your support 11 new marine branches are in
place now. The boats are in place, and with the help of the Coast Guard and others, we've
made tremendous investments there.

At the end, while we continue to manage aged aircraft and support them to make them safe
and modernize them for continued service for the long term, we have been over the last
several years working at the front end of technology, and particularly with our UAV program.
From one single aircraft, which was lost in a pilot error in 2006, we have grown our UAV force
to be the most capable force in this hemisphere.

The DOD is much larger, has many more assets, most of which are deployed, but in the
country, in this hemisphere, the Office of Air Marine with the six aircraft we currently have in
service, can do things in this hemisphere today that the larger DOD could not do in the same
capability, and I think that speaks well for the investment towards the future.

We have land-based Predators that flew last night on the southwest border. We have a
northern-based Predator that are flying the flood at the request of Governor Hoeven and the
political leadership in North Dakota, doing fore and after difference analysis using our
synthetic aperture radar, streaming live -- feeding flare (ph) video, and not only our own
people, but the state and local to give unprecedented situational awareness to what is
happening on the ground -- practice with the floods we flew in North Dakota last year and the
hurricanes the year before.

So while we create this national capability to support our homeland security, the fallout is
unprecedented support for local humanitarian and contingency response.

And finally, I'll leave my comments with the creation of the Guardian and be happy to answer
your questions and explore possibilities -- a unique partnership with the U.S. Coast Guard, but
only one of many. You mentioned the number of boats. Those 73 boats that the Coast Guard
deaccessioned, we re-engined, refurbished and put into service. That was a cost avoidance
for Air Marine of more than $14 million. That has made an unprecedented difference for us to
be able to grow our marine force.

In 1995, we had 85 MIAs on active service. Today we have more than 350 MIAs, marine
interdiction agents, in service and more than 253 boats operational. A good part of that was
not only with support from this committee, but the support we've had from our partners with
the United States Coast Guard.

And in the areas of the UAVs, while the Coast Guard looked at their opportunities and
requirements, we formed a joint program office training Coast Guard crews, providing CBP
aircraft assets, and folding these things into where I think you all mentioned you were most

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 OneSource One-Stop Reports for Oceaneering International

concerned with, joint operations.

Not only is Puerto Rico and the SeaDig (ph) operation a great role model, you will find similar
relationships in many other places around the country: in the Great Lakes, where we're both
at Selfridge Air Force Base; in San Diego, where there is a joint operation there; in the San
Juans in upstate Washington; and most importantly in the transit zone, a unique partnership in
JIATF-South and the interagency DEA, United States Navy, U.S. Coast Guard, CBP -- all
oriented to our tremendous effort in limiting narcotics from coming (inaudible).

So I would offer to you that while we continue to maintain the old things we have with your
support, we do it in a measured, safe way. We update the equipment we have and we are
planning on the leading edge for perhaps contingencies we've not seen, and we are doing this
in a very coherent and a very amenable partnership with our larger sister service, the Coast
Guard.

I look forward to your questions. Thank you.

PRICE: Thank you, General.

Admiral?

ATKINS: Good morning, Mr. Chairman, Mr. Rogers, distinguished members.

As the Coast Guard assistant commandant for capabilities, I am honored to appear before
you today to talk about the Coast Guard's critical role in maritime security and safety and
how our cooperative efforts with sister agencies move those capabilities along and furthers
our efforts in air and marine operations.

At a time when whole of government operations and approaches are critical to achieving
national objectives, the Coast Guard's military, multi-mission and maritime assets provide
highly adaptive operational capabilities that serve the nation's interest well, whether those
interests are in the heartland, in our ports of entry, along the coastlines, in the exclusive
economic zones, or anywhere around the globe.

The Coast Guard's unique combination of civil and military authorities and capabilities makes
our service ideally situated to serve as the principal agency for maritime law enforcement and
lead federal agency for the maritime component of homeland security.

The Coast Guard's law enforcement authority, codified in title 14 of the U.S. Code, is the
foundation of our maritime security mission. This authority underpins our ability to interdict
illegal drugs, illegal cargoes, and illegal people, and other more potentially dangerous threats
to the homeland.

When coupled with our title 10 military responsibilities and authorities, the Coast Guard truly
is a unique service provider to the nation. The Coast Guard's ability to contribute to any whole
of government operation is predicated on our broad authorities, our core competencies, our
organizational ethos and our fleet of assets.

In terms of those assets, we remain committed to recapitalizing our aging surface and air
fleets. We continue to make progress in the delivery of new major cutters, such as Bertholf
and Waesche, our first two national security cutters. We are operating new fixed-wing assets,
the C-130J and HC-144. And we are realizing tremendous return on investment from the
modernization of our helicopter fleet, both the H65 and H60s.

The Rescue 21 command and control system is on watch from Maine to Texas, and it is
increasing our ability to conduct search and rescue and to save lives.

Sirs, the recapitalization program that you are supporting is making a difference and our men
and women on the frontline want to thank you for your continued support of that
recapitalization effort.

The Coast Guard has strengthened its ability to protect our nation's ports, waterways, and
coastal borders by partnering with federal, state, and local agencies, tribal nations, the
marine industry, and international stakeholders. Nowhere are these effective partnerships
more apparent than between the Coast Guard and other agencies within DHS.

For instance, our efforts with U.S. VISIT highlight the success of our joint biometric proof of

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concept in reducing illegal migrant flow into Puerto Rico. Our cooperative efforts with Customs
and Border Protection are spearheaded by a strategic guidance team that brings together
senior agency leaders to drive interagency effectiveness and efficiency. Examples of our
interagency cooperation occur every day throughout the United States and at sea, and they
are a source of pride for our service and a sense of accomplishment for the department.

From joint operation centers, joint targeting, synchronized detection and monitoring, to
effective end-game prosecution, the Coast Guard and CBP are working smarter and more
effectively along the northern, the southern and coastal borders, the maritime ports of entry,
and throughout the illicit drug transit zone en route to North America.

Beyond our operational efforts, we are working to leverage each other's strengths in
acquisition, training and maintenance. Our joint efforts are illustrated by the successful DHS
Small Boat Commodity Council and the joint Coast Guard/CBP Program Office for Unmanned
Aircraft Systems.

Sir, the Coast Guard is proud to stand the watch. We recognize that where there are
overlapping areas of operation, authority, and capability, the American taxpayer is best
protected and best served by a unity of effort that results in coordinated and effective
operations. To this end, the Coast Guard strives to expand its collaboration, to consistently
and effectively execute our mission as America's maritime guardian.

Sir, thank you again for this opportunity to come and have this discussion with you all today. I
am happy to answer any questions you might have.

PRICE: Thank you, Admiral.

And let me start with you, because you do give a very positive rendition of the planning
process, in particular, that your agencies are engaged in. You describe a very smooth process
for sharing assets -- a process that, of course, goes on from the top down, from the very
beginning of planning to execution.

I wonder if you could tell us, though, surely sometimes mission conflicts arise. I wonder if
there is ever a possibility, actually, that one of the downsides of what we're basically
discussing in a positive vein here today, one of the downsides might be that unshared
missions could get the short straw when it comes to planning.

Can you give us a little better feeling for this planning process and some of the conflicting
priorities and just plain conflicts that you're possibly dealing with and have to overcome from
time to time?

ATKINS: Yes, Sir. I would say the planning process is absolutely essential and it begins with a
unified command perspective. And as the general indicated, across the nation, at various
ports of entry, we are working very closely together at the tactical level so that our tactical
forces are best arrayed against the threat for that particular vector and sector.

So for instance, in Florida where there is a southeast border inter-agency group that is
looking to coordinate, what they've done is they've looked for where are the various agency
partners flying their aircraft on any given day. And how do you de-conflict those aircraft and
those times in those areas of patrol to maximize the effect that we're trying to bring to.

And now, it's not just aircraft in the air, but it's surface units on the water. Because while you
might be able to detect and monitor, the absolute essential here is to get an effective end-
game on the water so whoever you're interdicting, you're boarding and you're finding out
what you need to find out.

And so it's this idea of prior planning to understand where the other blue forces are, where
the other interagency forces are, how do you de-conflict those and how do you aim them to
get the best results, Sir.

PRICE: Well let me ask both of you to turn to a specific innovation in border and maritime
surveillance, and that is the Predator -- the Predator B unmanned aircraft system. By October
of this year, CBP will have seven Predator Bs operating on the southwest border, the northern
border, Florida, the coast, the Gulf and possibly the Caribbean transit zone, as we understand
it. One of these, the Guardian maritime variant, is being tested in a joint program with the
Coast Guard.

Preliminary results indicate the Guardian could fill air surveillance gaps for vulnerable areas in

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the southeast coastal areas, particularly since it can operate longer and with a smaller crew
than manned surveillance aircraft. The CBP budget proposes a Florida-UAS base in fiscal year
2011 or 2012.

Commissioner Kostelnik and Admiral Atkins as well, what is the current Guardian deployment
plan? And how does it fit into the deepwater and CBP five-year recapitalization plans, and of
course, I have to say again, these are plans currently under review and due to this
subcommittee.

KOSTELNIK: Well, let me start and take you back to the history of the maritime variant, and it
goes back to, I think, what the admiral was talking about, about the rich relationship we have
at the tactical level. Going into the source and transit zone, we're differentiated by our
missions by the kind of equipment we have.

So clearly, on the water you need the bigger ships that we don't have. So the U.S. Navy, the
U.S. Coast Guard, with U.S. Coast Guard boarding crews are out in the eastern Pacific. And
then you have maritime aircraft overhead. There used to be some foreign aircraft involved,
now they've gone. There is a Navy P-3. There are Coast Guard C-130Js, there are RP-3s but
it is never enough. Similar to the Mona Pass issue, we just don't have enough maritime
capability.

So going back a couple years ago, we thought it would be prudent, given the good success we
were having with the land-based variant, to do a development of a Guardian-type aircraft with
a maritime radar. To give you a sense for the genesis, at the Coast Guard we're coming off
some of the deepwater experience with the VTOL UAV, and I'll leave it to the admiral to talk
about the long-term requirements, you know, consistent with the deepwater approach.

But in that time period, there was some interest by the Coast Guard with a land-based variant
for maritime ops, given the close connectivity we had in all these areas around the
environment in the littoral area where an aircraft would be useful.

The Coast Guard, to their credit, put a fair amount of money, as did we, and we borrowed the
Air Force prototype of the Mariner, a very early variant of the Predator, with an ALTA (ph) CV
(ph) radar that was never developed. And we did an extensive and exhaustive test in the Gulf
of Mexico jointly working with Coast Guard cutters, Coast Guard aircraft, our aircraft, to
determine if there would be a need. And it turned out there was great promise and the
Guardian program was what evolved from that.

Now, with the Guardian program currently in test, it has completed DT&E, very early, because
it's an aircraft we know. It's a radar system we already operate on our Dash 8 and our P-3,
very low- risk, and we're getting very good results. We should finish operational testing and
evaluation of this aircraft in the next month or so.

And then we have options. And we're looking at those options coherently with the Coast
Guard to see where would be the first operational mission deployment. There is clearly a
requirements pull in the Caribbean supporting DEA and Coast Guard missions and JIATF-
South missions. We could get into Mona Pass with this aircraft. So clearly that part of the
southeast region is in play.

The second mariner aircraft, CBP-159, should arrive later in the summer. We should get the
radar on it in the September-October timeframe. We're looking to deploy that aircraft in
Corpus Christi.

That gives us two maritime basing locations where, from those fixed locations, we can support
the Caribbean and southeast region. We can also turn those aircraft north and support the
eastern seaboard and also the metro areas of D.C. and New York state should there be issues
up here. And then with the Corpus bird (ph), we can cover the Gulf. We can cover south
Texas. We can cover the Texas border if we need to.

We can then, with both of those assets, make both of those aircraft available for deployment
into the Gulf, deep (ph), Central America, or the eastern Pacific in concert with the JIATF-
South mission.

So at this time, we're focused on basing in Florida, although that could be moved to other
bases in the Florida region. We would do that in concert with the U.S. Coast Guard, depending
on where we can best support these missions. The second base at NAS Corpus Christi would
already have a large P-3 presence there, and do qualify our P-3 crews to fly this asset as
well, and there is a Coast Guard presence there.

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So the ultimate way ahead with deployment will be determined and conditioned by how this
first aircraft performs, and coherently we're in the planning process with the operational part
of the Coast Guard to determine where the first deployment would be. Those two experiences
will help to condition the over-arching strategy.

It is important to note that while these are primarily oriented towards the maritime
environment, the belly pod which carries the C.V. radar will accommodate all of the radars
that Air Marine and the Coast Guard operates, so we can put different C-surge (ph) radars in
that configuration, and we can also drop that belly pod, put the synthetic aperture radar back
in, and operate the land-based variants as -- or the maritime-based variants as marine
variants as well.

PRICE: Well, General, before turning to the admiral, let me just ask you specifically how
many flight hours the UAS fleet is going to make in fiscal years 2010 and 2011. And of
course, you understand the reason I'm asking you that question. Will you have pilot and other
support crew to support the 14-hour mission average previously projected for the Predators?

As you well know, there are multiple challenges that have developed producing an alarmingly
low utilization for the first half of fiscal 2009, falling far short of projections. So with that
background on both of our minds, I wonder if you could fill us in on the kind of flight-hour
possibilities and projections you're dealing with now.

KOSTELNIK: I appreciate the opportunity to comment on that, because even though these
aircraft are odd (ph) or unmanned, it's kind of a misdirection in a way because you would
think that they are less manpower-intensive. The reality is, given, as you correctly point out,
the extended length of flight. In fact, the land-based variants we've demonstrated 20-hour
mission capability with the configuration we carry, and the first long-duration flight of the
Mariner looks like it's going have about 20-hours duration as well.

So it actually takes more pilots and crew to fly one of these things and of course that's a
downside. On the plus side, it allows you to bring in other capabilities. You can bring in intel
specialists. You can bring in legal specialists, and of course in our business, that's an
important factor in real-time consideration. So you basically bring in a flight team (ph).

So if you look at our utilization rate to date, I mean the observation that I would offer is that,
again going back to this program, it's just a little over four years old. And having said that, we
are still growing this force. With the capabilities we have today, in only four years we have
grown the second-largest operational fleet of Predator Bs on the world stage.

We have capabilities no other country in this world has. And in this hemisphere, we have
experiences in Homeland Security that even the DOD doesn't have, even though they have
much larger assets.

So we are still very much in the building part of our process -- trying to grow pilots, trying to
train analysts, trying to acquire the equipment. At the same time we are doing due diligence
and flying a fairly high OPSTEMPO. We try to fly every night on the southwest border. When
the weather is good on the northern border, we try to fly every day or night up there.

But we're actively training many of our crews and, oddly enough, it isn't really the aircraft
that's the discriminator (ph). It's either the ground control stations, which are always more
problematic, late (inaudible) and we're short of those, and most importantly having enough
trained pilots to fly them.

Now, the partnership with the Coast Guard is a good one for us and them because it will start
to grow and train Coast Guard pilots to fly these aircraft, and in fact we already have three
that are fully qualified on the Predator, and they will be assisting with the Guardian mission.

So we typically look like we're a single aircraft with the crews and control sets. You know, we
could fly those aircraft typically three times a week -- probably not 20 hours because there
are other limitations, mission needs, in some cases the COAs, the certificate of authorizations
for issues associated with the tower's operating availability.

So while the flight rate to date has been perhaps less than what people might have expected
given the aircraft, you're going to see, as we bring on the Coast Guard pilots -- and with your
support we hired and dedicated 24 UAV pilots last year. But again, those are still in training
and coming up to speed, and then to offset the shortage of pilots because the bulk of our
aviation fleet in numbers has not changed, even though we've increased the number of pilots
over time. We're dual-qualifying our pilots.

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So the same pilots that fly P-3 missions in the transit zone will be flying Guardian missions on
rotation. So I think you're going to see a dramatic increase in the flight hours for these assets
over time.

PRICE: And you're telling me, in other words, that we can expect to approach that 14-hour
mission average that was previously projected, or is there is some reason to alter that
projection?

KOSTELNIK: Well, it's not so much the 14 hours, because typically at, for Sierra Vista today,
given the limitations on crews, primarily, we fly typically 10-hour missions. So the aircraft will
go out in the afternoon and it will land, you know, sometime around midnight. And oddly
enough, that's in concert with when the bulk of the activity is. Those aircraft are dealing a lot
with low-level drugs, a lot of smuggling across the border, and typically the activity is
occurring 10 to midnight and then people traveling out in the desert bed-down at night. So it
just turns out that that mission suits our needs.

Now in the east-back (ph) area, if there is a mission requirement to pull and need for the
aircraft to be out longer because the assets are out there, we can fly those aircraft longer. It's
not an issue that we don't have the spare parts. It's not an issue that we don't have the gas. I
mean, the reality is when go to 20-hour mission sets, you've got to have two full crews of
mission pilots, in addition to the launch-and-recover pilots that you have at the remote site.

What I'm saying is, over time, we're still aggressively building our training program. And each
month, as the time goes by, we have more pilots available to fly. Right now, it's the pilots that
are the limits in our duration, not the GCSs, not the COAs, kind of not the aircraft.

But what it does offer, and a good way to think about these things, while these are reasonable
missions while we're still building this force today, both in border security on the southwest
border and the northern border, but also in contingency ops, if floods happen. Two years ago,
we had no capability to do that when we had the floods in Iowa. Today in North Dakota, in
Minnesota or anyplace else in the country, where you have a humanitarian need for these
assets, we can put an aircraft overhead same day.

We flew the hurricanes -- three hurricanes two years ago. We've never done that before, but
now having done that, that capability is available. So this summer when we get into hurricane
season again, if there is a need, we will be there.

In all of these activities, both the day-to-day work and the border security, as limited as it is
right now because we're still training, gives you the ability to respond not only to these
humanitarian events, but if we were to have a serious event in this country today, one
perhaps like 9/11 or something, but something significant today, anyplace else in the
continental United States, we could put a Predator overhead streaming live video, having
(inaudible), having a laser ranger designator, providing unprecedented situational awareness
to leaders across federal, state, and local government. And I think that puts us in a very good
position.

But again, I would leave you with the part that you'd have to look at this program, it's just
four years old. In many cases, in many organizations trying to build the capability, you'd just
be getting the aircraft now. Or maybe you'd just be in the end-stages of operational test and
evaluation.

We're not only growing at a fast rate and have been doing missions 24/7 for the last three
years while building this force. We're not only creating new opportunities by laying the back
gain (ph) with intel, but creating this new maritime variant. So from our perspective where we
sit, we think we've been leaning forward strongly in the saddle in providing a great capability
for the country.

PRICE: General, I'm sure we'll return to this question throughout the morning.

I do want to turn to other members, but I -- but finally, your answer to me does underscore
the question of personnel. And it's in that respect that I must say this 2011 budget does raise
some serious questions, particularly in light of the kind of program you've just outlined.

Last year, you estimated you'd need 79 crew members, mission support and trainers, to fully
deploy the UAS. You sought and received fiscal 2010 funding to add 18 more UAS pilots, but
that's where this 2011 budget comes in. Your 2011 budget is proposing funding in cuts for 13
of these. What's the rationale for that? Have personnel needs somehow changed?

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So again, what's your operational deployment plan for the UAS in relation to the staffing cuts?
That's really what I'm trying to get at. Are these staffing cuts going to constrain your ability to
use the UAS effectively and indeed to carry out the program you've just described?

KOSTELNIK: Well, as you know, I know you've been familiar with our operation for a long
time, we're a very small force. If you look at Customs and Border Protection, the Office of
Field Operations, that's about 26,000 agents. The Border Patrol is about 23,000 agents. Air
Marine is 1,800 total. We've always been a very small force and we work very hard with what
we've had.

I'm sure you're aware that 2011 is a tough budget year and obviously we're subject to
constraints like others. We make our case. We submit our inputs and we get what we get as
part of the process.

Directly to your question, we would have hired more pilots in 2010 were those to be
supported in our 2011 request. We do get supported to the tune of about 24 of those original
144 requests, which we are certainly going to use wisely, but it's not necessarily just for the
pilots. And in the short term, direct answer is no.

There will be no impact to our short-term program because of the innovations that we've used
having dual qualifications for our pilots to fly the P-3s. We understand the mission in the
transit zone. We have both pilots and backseat (ph) detection specialists, and our plan is to
use the pilots to fly the aircraft and detection specialists to run the sensors in partnership with
the Coast Guard.

We love the Coast Guard. We like to bring them along. We really don't compete at the tactical
level and have a lot of great synergism. But the truth of the matter, while we're providing
hardware and UAV expertise, we're getting manpower from the Coast Guard that we just
don't have. And that helps us. We would be limited without the Coast Guard's support of their
aviation pilots associated with the program, and that's how we worked that.

We have a solid plan for the manpower. We are going to hire this year some pilots, some
associated support, both at the Air Marine Operations Center and our various program and
engineering staff to make sure we can support those things. We're aggressively training the
pilots. In the long term, having more pilots would be better. And depending on the reception
of the Guardian and the transit zone mission, and out-year budget, we would expect to have
some investments, further investments both in aircraft and support equipment, but also in
pilots downstream.

But in the short term, while we're still building this force and training -- actually the shortage
of pilots in the 2011 request will not have a serious impact on that activity. In fact, if you look
back into 2005 at the beginning of our recapitalization, Air Marine only had a little over 500
pilots, agent pilots, at that time. Thanks to your support, we now have over 800 agent pilots
and more than 350 mariners.

But if you look at the aircraft side of that picture, despite the investment from this committee,
in 1965 we had 264 aircraft. Today, we only have 284 aircraft in service despite the
investment. So as you can see, we actually do have some excess capacity in our rated force,
and using that excess capacity to dual-qualify on the Predator makes good sense.

And if you've watched the issues that the Air Force was having with the unpopularity of
manned fighter pilots having to fly unmanned (inaudible), it's actually a benefit for our agents,
because all of our agents are certified FAA-pilots, and all of our agents who fly the Predator
also fly a manned aircraft, either a Black Hawk or a Cessna 550 or in the case of the
Guardian, the P-3.

So we think this synergism and the partnership with the Coast Guard will put us in good shape
for 2011.

PRICE: Thank you.

Mr. Rogers?

ROGERS: Well, to follow up on that line of questioning the chairman had for you, I didn't
follow you. I mean, your budget proposal would cut personnel by 3.6 percent. And as I
understand it, you have to actually lose 68 pilots because of that, 20 marine interdiction
agents, and 56 support personnel -- positions that were actually requested by the

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administration in fiscal '10. Right or wrong?

KOSTELNIK: Those numbers are -- those make up the composition of the 144 that we would
have hired in 2010. Now, those were additive to the force we currently have in place, and
because during the budget deliberations internal to the administration, it was clear that we
were not going to have those allocations in 2011 supported, we did not bring those added
people on board. So those are not, in fact, cuts from agents or officers that we currently have
on board. Those are new hires that we did not hire in 2010 that we would have hired.

ROGERS: Which means that in fiscal '10, you obviously saw the need for the additional pilots
and personnel. Right?

KOSTELNIK: You can always have more, sir. Always.

ROGERS: And you were denied, apparently denied your request by the administration. Is that
correct?

KOSTELNIK: Well, as part of the ongoing prioritizations within CBP and DHS, that's true.

ROGERS: And, you know, it's indefensible to me that at a point in time when we're besieged
by the cocaine traffic out of South America, and I hold here a depiction of the traffic patterns
of cocaine from South America through the eastern Pacific and Caribbean to Mexico, thus to
the U.S. That's not abating, is it? Admiral?

ATKINS: Sir, what we're going to be doing is, as the general indicated, is we're going to be
maximizing our MPA as best as we possibly can. And what we want to do is we want to put
into effect a concerted effort through the JIATF-South south structure, a plan for detecting and
monitoring and then effecting an end-game.

And really the issue here is how can we best fuse our information and give cued (ph) intel to
the assets that we do have.

ROGERS: Sure. Duh. What I'm saying is, the problem is not decreasing. It is increasing every
day, is it not?

ATKINS: Yes sir, it is.

ROGERS: And your interdiction efforts are being more successful every day. Are they not?
General? Admiral?

ATKINS: Yes, Sir.

KOSTELNIK: Yes, Sir.

ROGERS: And it's not the time, from my judgment, to deny you the personnel and equipment
and assets that you need to continue to battle this problem which are killing Americans. And
for the administration to deny you, on the frontlines of this battle, the personnel and
equipment that you as recently as last year said we must have, you told us, and we gave
you.

And now the bureaucrats are saying, "We're not going to give you what you need to fight this
battle." And I find that reprehensible, as well as indefensible, all in the name of increasing
headquarters personnel in Washington D.C. by almost 1,000 people, which is reprehensible
and indefensible, to deny you on the front this equipment and manpower.

Tell us about this fight that's going on. Here is the traffic patterns out of South America,
through the eastern Pacific and the western Caribbean and the eastern Caribbean and
primarily into Mexico, thus into the U.S. How's it going?

General?

KOSTELNIK: I think it's going exceptionally well. In fact, we just had a meeting of the source
and transit zone interdiction committee that the commandant of the Coast Guard chairs. And
we had Admiral Dan Lloyd, who as you know, is the JIATF-South commander. He directs our
assets in the eastern Pacific, which is really the largest area of that activity, where again we
have U.S. Navy destroyers and frigates. We have Coast Guard cutters. We have Coast Guard

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boarding crews on both ships -- Navy P-3s, CBP P-3s, 11 of which we now have back in
service, which is a benefit.

But we've also put the Seaview radar on the long-range tracker aircraft. That's increased
their effectivity in the maritime role, as well as the Coast Guard aircraft. And it was reported
that in 2009, JIATF-South was responsible for interdicting more than 234 metric tons of
cocaine just in the East-Pac area. These are primarily self- propelled semi-submersibles,
you've heard so much about, I think. Nine or 10 of those were detected last year, large
numbers of "go- fast."

And if you think about that much narcotics in bulk quantity not getting to our shores, that's
more narcotics of all kinds, from all agencies, from all sources coming into the country, I'd
say that's a big deal.

Now they say, so worry about what they're missing based on projection or intel or so
(inaudible), but the way I look at that, and you look at those type of activities, it's been
extraordinarily successful and I think more than justifies our interest and our investment in
the source and transit zone mission.

ROGERS: Admiral?

ATKINS: Yes, Sir, I would agree with that. And I think that the issue is, again is that the
underlying reasons for success is this unity of command and unity of effort that is brought
under JIATF- South's hat. And it's this idea that you have somebody in charge and you bring
complementary capabilities to the fore and to bear against good intel, and then you effect end
game. So those would be the same qualities and characteristics of what makes this a success.

And so in terms of the operational success down in East-Pac in particular, from the Coast
Guard perspective, our C-130's have been outfitted with new cell-x (ph) radars, which are
highly effective. We have been able to use our retooled MH-65s which are armored up and
with airborne use of force have been able to make a real effective impact against go-fast
runners.

ROGERS: I understand the budget is cutting five of those helicopters. Is that right?

ATKINS: Sir, there are five H-65s which are being cut in the F.Y.'11 budget, but those are not
associated with the deployers that go down to East-Pac. Those are in the Great Lakes region
associated with the search and rescue.

ROGERS: Well, I share your enthusiasm and admiration of JIATF- South. I went there years
ago and was greatly impressed with the way that we're bringing together not just the units
that you represent, but the FBI and the Justice Department and the Navy and Army and all
the other agencies, DEA and so on -- a great operation.

In fact, I was so impressed -- this was before we had the Department of Homeland Security -
- I brought that entire crew up here to brief then-Homeland Security Adviser, Governor Ridge,
to try to impress him and the then-president that this was really the way we ought to be
fighting terrorism nationally through this kind of an operation that JIATF-South represented.
So it's a great, great facility and capability.

What I'm saying to you is, I don't understand the recommendations to cut personnel and
manpower both in Coast Guard and CBP, Air Marine personnel in the face of an ever-growing
problem that is killing Americans. I just don't fathom that.

Even given the terrific cooperation that your agencies have and the terrific work that JIATF-
South and the other agencies are bringing to the fight, we're disarming, in my judgment.
Coast Guard acquisitions are being cut 10 percent. CBP's Air and Marine procurement and
maintenance -- maintenance -- being cut 3.3 percent, including a $2.6 million cut to logistics
and maintenance system upgrades and no funds for procurement of new multi-role
enforcement aircraft.

Coast Guard's going to have to cut 1,110 military billets and decommission, take out of
service, deactivate, withdraw from the battle 19 operational components. How can you justify
that? Admiral?

ATKINS: Sir, as Admiral Allen testified just a couple days ago, he had to make some very
tough choices between recapitalizing the Coast Guard's aging fleet and decommissioning
those assets and staying within an overall budget in terms of operational priorities. And he

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had to make some very tough decisions relative to which assets to let go and which assets to
recapitalize. And sir, that's the answer.

ROGERS: In other words, it was a budget crunch?

ATKINS: Yes sir. We are absolutely making operational priorities based on available dollars.

ROGERS: And you're not getting all of the money that you actually need to do your chores,
are you?

ATKINS: Sir, we are living within the administration's priorities and we're trying to work as
best we can to weigh operational risk and to use our collective operational experience as best
we can given the resources we get.

ROGERS: That was a good answer. You are good.

(LAUGHTER)

Well, now, tell me about the operations on the northern border. You're planning a new Fusion
Center, are you not, General?

KOSTELNIK: Yes, sir.

ROGERS: Tell us about that.

KOSTELNIK: This is part of our -- you know, well, the southwest border obviously has gotten
a lot of attention over the last several years.

As you all know, we've put a lot of Air Marine infrastructure across the northern border. Only
five new Air Marine branches were directed before, but also a new UAV branch up in the North
Dakota area.

And I think the concept of a Fusion Center is tied to our northern border strategy and our
northern border technology demonstration of taking some of the key and essential elements
that have worked well on the SBI program, some of the MSS (ph) equipment and some of the
connectivity associated with that, and taking some of the intelligence-based function out of
our joint interagency, not only with us and the Coast Guard, but also with our Canadian
friends up north capitalizing on preexisting things, and creating, in essence, a DHS campus at
Selfridge Air Force Base.

The Coast Guard has been there for a number of years. We opened up one of our large air
branches there a couple years ago -- a great facility. Border Patrol is on the same facility. So
what you're starting I see in the Fusion Center coming together is in essence of an Air and
Maritime operational center, not unlike the command and control AOCs that the DOD
operates, or the facilities down at JIATF- South, to focus on the northern border, and
particularly the Great Lakes, which is a combination of Coast Guard larger vessels and some
small vessels and our small vessels associated with the ports of entry, tying in to the air
capabilities we have up there.

Of course fundamental to that you may recall that last year we had a very early deployment
of our Predator system out of North Dakota to upstate New York. We were hosted by the 10th
Mountain Army Rangers at Fort Drum, in partnership with the men and women of Syracuse,
the Air National Guard who will fly Predators for the U.S. Air Force, to start to create the
beginnings of an umbrella of Predator support for the northern border, with assets in North
Dakota and a potential deployment site to upstate New York and Fort Drum.

And from those assets, over time as we work the issues -- the (inaudible) issues with the FAA
about flying in congested air space over the Great Lakes proper, we're starting to create, you
know, an air picture (ph).

So part of the Fusion Center activity will be to work the connectivity from taking Predator
imagery feeds from flare (sp) radars. We could have Guardians up there in the Great Lakes
at some point, you know, in the future depending on what the risk or issues would be. So the
Fusion Center is an early technology push in an integrated fashion to create, I think, the
benefit of what you see in the JIATF-South.

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ROGERS: What can you tell us about the threats that you're seeing in the Great Lakes and
that border that would require such a center?

KOSTELNIK: The risks? Well, I'll leave it to the admiral to talk about some things in the Great
Lakes proper. Clearly, we've had all types of unknown people show up at a marina, come
across the Great Lakes un-interdicted. We clearly have a lot of activity through the ports of
entry.

If you look at the things that we see across -- all across the northern border, there is a fair
amount of traffic in methamphetamines, north coming south. There's a fair amount of traffic
in B.C. Bud, some of these hidden in devices coming in the ports of entry, some air drops off
small Canadian helicopters and fixed-wing aircraft.

These are the things that we know. There are cocaine going north. There is probably guns
going north, and there's cash in bulk quantities, you know, going you know, both ways. These
are the things...

ROGERS: Is this not going to stretch your budget even worse by building this center there?
It's a $40 million item, is it not?

KOSTELNIK: It is, sir, and is funded thanks to your help.

ROGERS: Isn't taking that money for that purpose going to wreak other problems on you with
your budget cuts that are being proposed?

KOSTELNIK: I really don't see those as detrimental to the effort. We have the people and the
infrastructure in place, as I'm sure the Coast Guard does as well. I mean, I'd look on that.
While we have the hardware and we have some of the software elements and we have the
people and the infrastructure, I think the real issue on the northern border is the connectivity,
you know, tying in NORTHCOM and the air picture, tying in the maritime picture on the Great
Lakes.

I look on that $40 million investment as a good piece of connectivity to help create a common
operating picture. Because I talked about the threats that we know, and we see those
probably (inaudible), but it's not the threats you know that get you into trouble. It's the ones
that you don't know, and added connectivity tying in the sensor aircraft and the new class of
boats.

We're putting up 38-foot SAFE boats, very capable boats on the Great Lakes in partnership
with the Coast Guard -- 33 feet for them, as well as the cutters as well as the other ships that
are out on the Great Lakes proper -- tying all that information and fusing the information from
the sensor aircraft and boats, tying those into the intelligence of the interagency should make
us stronger on the northern border.

ROGERS: Well, it makes a lot of sense. I just worry about whether or not you're going to
have the personnel to operate that center once you get it going because of these cuts that are
being forced upon you.

KOSTELNIK: Well, fortunately a lot of that is an intel-based center, so actually some of those
won't be Air and Marine personnel. A fair percentage for us will be actually intel people that
we have hired and do have in place to do that work.

ROGERS: Admiral, do you want to add to anything?

ATKINS: Yes sir. I would just like to add to the general's comments in that this is the
beginning of a JIATF-type structure on the northern border in the sense of you begin to bring
everybody together and you begin to share information. Sir, at this point we don't have a way
to de-conflict where our own internal operations are happening. And so this pool provides us -
- this fusion center provides us that capability. So it's an opportunity to sort of model those
other excellent examples that you've seen down in Puerto Rico, down in Florida and San
Diego.

ROGERS: This center will be funded out of your SBI accounts, will it not?

KOSTELNIK: Yes, sir, I believe that's the case.

ROGERS: OK, in closing, I know others need to be on schedule here. Admiral, you were once

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the executive -- the first executive officer aboard the cutter Decisive and then later the
Resolute. Is that correct?

ATKINS: Yes, sir, it is.

ROGERS: Do you recognize in the room anyone who served under you on either of those
missions?

ATKINS: Yes, sir, I do. And I believe he owes me a morale report.

(LAUGHTER)

ROGERS: We're talking about Staffer Ben here who served with you.

ATKINS: Yes, sir. Mr. Nicholson was a fine Coast Guard officer and I'm glad to see him
continue in service to his country.

ROGERS: Thank you.

PRICE: Thank you.

Mr. Calvert?

CALVERT: Thank you, Mr. Chairman.

It's good to see you again, General. I remember you back in the days when I chaired the
Space Aeronautics Committee. We don't have a human space program anymore, but those
were the good old days.

I want to talk a little bit about the Air Marine Operation Center, AMOC. As you know, the Air
Marine Operation Center is in Riverside in my congressional district. The AMOC team does a
great job of critical work serving our nation's general aviation air and interdiction security
operations.

I was disappointed you didn't mention it in your testimony. I understand the CBP still owes
the committee a report on the role and the operations of AMOC. So I was wondering when
can we expect that report?

KOSTELNIK: The report should be forthcoming you know pretty soon. AMOC, as you know, is
the crown jewel of the Department of Homeland Security. When I signed on, when I left NASA
in 2005, I saw a lot of things I didn't like -- an aging force, we had low morale, you know,
questions on the way ahead.

But the Air Marine Operations Center, even in 2005, was a crown jewel that few could want to
have. It was kind of put together over years on the side with some contractor support and
some government intervention. But at the end of the day, even in 2005, it could do things in
the Homeland Security mission that other things could not do.

Over the last four years, we continued to plus it up. We've added infrastructure. We've added
the GCS control set. We've added more DEOs. We've hired some intel specialists that started
to work there. We're still growing that capability. And as you know in the way ahead, it's still
early. It's still in the long-range planning of what further investments we need to make. That
work is still unfinished, but with the money that was provided for AMOC in this calendar year,
we are using that to set the stage.

CALVERT: That was the question I was going to ask. Can you provide us a breakdown of how
that $6 million we provided in fiscal year 2010 to AMOC for technology expansion was
allocated to the Office of Air and Marine? Was the money spent on the core mission of AMOC?

KOSTELNIK: It was in fact, and actually making that mission stronger. Part of that we're going
to strengthen our UAV capability. Today, we have a GCS and a K.U.-band antenna there.
We've actually used that to fly missions. But in the way ahead, we're looking to add the end-
game of that, which we really don't have in place anything else.

This is the piece that the DOD has. In fact I think there was an article today in the paper on

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the amount of information that's potentially available from the unmanned systems. And this is
the part of the problem we're having. We flew the hurricanes and floods. We could gather the
information. We could provide unique, clear image or synthetic aperture radar (inaudible), but
we really didn't have the people to analyze what those things meant.

So part of that investment is we're adding an intel cell very similar to exactly the same kind
of intel cells that the DOD proper uses in their missions and the AMOC to tie the intelligence
part of it to the operational feeds on the (inaudible). So that's a future investment.

We're also working coherently, as we've grown our capability through this "big pipe" (ph)
technique. The "big pipe" (ph) is a technology where we feed the streaming clear imagery not
only from a UAV anywhere in the free world, but from the P-3s as well.

In fact, if we were flying up in North Dakota today with the Predator, we could easily put the
streaming video from that asset on your personal computer, here or at home. Those kind of
connectivity investments are part of that.

And then finally, a lot of the -- some of the money is still planning money to put the ducks in a
row working on what the real investment for the long-term growth of the AMOC ought to be.

CALVERT: One last comment on the Predators, and obviously the Predator B. I'm very
familiar with the aircraft. It's built in Southern California. I've been to the plant a number of
times, and of course moving to the Predator C.

The confliction in operating in air space, in domestic air space operations -- is there any work
with the FAA to remove those conflicts where you can operate more freely within the airspace
of the United States and certainly along the Canadian border, the Mexican border where you
can operate that aircraft more efficiently?

KOSTELNIK: There's certainly a lot going on in that regard.

CALVERT: And furthermore, do you think there ever is going to be a point in the near future,
not in the long future, where we can actually take off and land within, say, at March Air Force
Base for instance, or Coronado?

KOSTELNIK: It's a tough debate and I'm sympathetic in a way for the FAA because it's their
job to keep the national air space safe. It's our job, you know, to apply technologies we have,
and with some risk, you know, to keep the country safe. So there obviously is a potential
conflict. And of course with the tremendous growth of the UAVs or RPAs, as the Air Force is
now calling them, there is a wide variety of unmanned things -- small hand-held things that
are like, you know, R.C. models from years ago, to the Global Hawk, flying 60,000 feet, you
know, a very large aircraft, and everything in between. There is a different risk posture for
each one of those.

But you, like all of us, would want the national air space to be safe, so in areas where there is
a lot of commercial manned traffic, if we're going to put unmanned things into those
scenarios, we need to assure the traveling public that we can do that safely. And while the
Predator is a tremendous airplane -- more than a million operational hours. That's why we
chose that aircraft for our fleet. It is still not without its risks. We still get surprises, and the
Predator C will be no different because it's a manmade thing and manmade program.

So what we've tried to do in Homeland Security, because unlike the DOD who has a training
mission in this country, ours is Homeland Security. Ours is different. We need to apply these
technologies to protect ourselves today. We've offered the FAA, and have for over four years
of discourse, a very simple theme about why we should be flying and what we're doing.

One is what we fly -- the (inaudible) -- what we fly. It's the safest system out there, but not
perfectly safe. We lost an airplane. We have crashed a couple of them in landing accidents,
and every once in a while we get surprised by a software error or like anything else, one of
our pilots will make a mistake.

The second risk reduction is when we fly. We fly typically at night because that's when the
bad guys are (inaudible). To your point about North Island, it's where we fly. We're not flying
downtown D.C. We're not flying you know, over New York City. We're flying on the borders.
You're familiar with the California border. There's not much out there. There's not a lot of
risk, and that in itself is a risk reduction.

And finally, the last "W" is why we're flying. We're not flying to make a point. We're not flying

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to push the policy. We're not flying to make money or for commercial reasons. We're flying to
protect the country. And so in our approach, in Air and Marine, why I think we've been
successful and why we have issues with the FAA, we argue with them all the time. We fly by
COAs, certificates of authorization. They're difficult, but that is not the constraint.

We're flying the floods. We flew the hurricanes. If we were to have a national event, we'll be
there for that and we'll continue to work with them because they are right to be concerned
about the risks. There will come a time, and you -- back in the time in our space business,
you know, the space business is mostly unmanned. I mean, we have pilots and astronauts
and so forth there, but many of those activities are already done remotely.

So the technology is coming and there will be a time when there will be unmanned things in
the normal traffic pattern. In fact, overseas at the operational bases, it's not uncommon to
find fighters and C-130s and Army helicopters and Predator As or Bs all in the pattern. So in a
combat scenario, it will work. But they're in a combat environment with collateral damage
associated and risk associated with the combat environment.

I don't think we're quite there yet, so I think that debate will continue. But I know there's
been interest from this committee. We're working very closely with the DOD to find a
measured way to open the doors and I would offer to you, based on where we were in 2005
and where Air Marine and the Coast Guard will be with the Guardian this year, we've come
remarkable ways in our ability to fly in the national air space when needed. And I think that
meets our needs.

PRICE: Thank you, General.

Let me pick up just briefly on the report in The Washington Post this morning, which you
referenced, which has to do with the heavy use of Predator drones over Afghanistan and
other countries that's resulting -- allegedly resulting in an overload of the satellite networks
used to control and retrieve data.

We'll ask for a classified response as well, but to the extent you can discuss this, will you
elaborate a bit? How much of an issue is bandwidth as we deploy and use more -- deploy and
use more of these assets? And what kind of analysis has been done of the department's
bandwidth needs?

KOSTELNIK: It's not really my technical area of expertise on exactly kind of where we are.
It's less of an issue for us today in our business. I mean, we buy -- we fly our aircraft much
like the DOD does through the satellite infrastructure. So bandwidth is critical not only for
command and control, but even more so for the data feeds.

And as you acquire more systems that produce even more data -- in fact this very specific
system, Gorgon stare, which is talked about in that DOD article, is going to generate a lot of
information. And ultimately, that information, with compression technique and so forth, is
going to require a lot of bandwidth.

So really, bandwidth is going to be an issue in the long term because, listening to Secretary
Gates and seeing where unmanned things are going into the Department of Defense,
watching the interest across the globe in the commercial use of unmanned things, clearly
there is going to be over the next several years tremendous growth in the need, and
therefore constraints in the area of bandwidth.

Obviously, there are some technical things in terms of how data is manipulated and
compressed that will help to offset that. There will be still growth in technology that will cut
into those issues, but in the long term, bandwidth is going to be another one of those resource
limitations that's problematic. For our mission specifically in the continental United States and
Homeland Security, that is not going to be an issue in the near term.

PRICE: Thank you.

Before we leave the Predator question, Admiral, I want to give you a chance to comment on
the question the general explored in the first round, namely the Guardian deployment plan
and how it fits in with the Coast Guard's larger plans, the recapitalization plans in particular.
Anything you want to add on that before we move on to other issues?

ATKINS: Yes, I would, Mr. Chairman. Thank you.

The Coast Guard is really excited to be working with CBP on the Joint Program Office. Related

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to that, we're also working with the U.S. Navy on a Fire Scout Joint Program Office in terms of
a rotary wing ship-base launch UAV technology.

At this point, the Coast Guard is in the needs identification phase, and we're trying to
understand and we're trying to leverage the lessons learned by more experienced agencies in
this regard, CBP relative to the Predator and the Navy relative to the Fire Scout. And through
those lessons learned, when we're ready to ramp up our own acquisition program, sir, we will
be better situated to do so.

PRICE: Thank you. Let me turn to marine vessels. CBP currently has 253 marine vessels in
service in coastal and riverine areas enforcing the laws with an end-state of 358 planned, as
we understand. This year it will complete setting up 11 new marine units funded in fiscal '08,
integrate SAFE boats transferred from the Coast Guard, explore acquisition of multi-role
enforcement vessel -- of a multi- role enforcement vessel -- and test a new marine
interceptor vessel.

The Coast Guard has almost 300 boats that range from 33-foot special purpose law
enforcement craft to 110-foot patrol boats that operate in the same coastal waters on joint
missions. Between the two components, 2,643 people crew these boats and hundreds more
support them in port and at the strategic level.

Now, CBP is recapitalizing its interceptor fleet and holding up its -- and building up its riverine
and coastal enforcement capability. Although the Coast Guard is quickly recapitalizing its
small boat fleet, the 87-foot and 110-foot patrol boats are rapidly aging and we're just
beginning to build the fast response cutters needed to replace them. Four will be built with the
$243 million we provided in the current fiscal year and the 2011 budget provides a similar
amount for four more of these vessels.

Now, given the constraints on the budget, which have been referred to repeatedly this
morning, the significant capital costs involved in these projects, it's critical to direct this
investment properly. So I'll ask you both to explore this. How is the department planning
across components on asset acquisition and workforce planning to make sure we have the
right mix of boats for crews and crews for boats, as well as the right mix of assets to secure
our maritime border?

And how has the Coast Guard, in particular, been involved in the development and testing of
the advanced concept technology demonstrator, or will this be a specialized CBP asset? What
does it do that existing vessels in the joint mix cannot?

KOSTELNIK: Let me address the advanced concept technology demonstrator. This was in a
similar fashion to the air investment piece. While we continue to operate a lot of outmoded
vessels that are reaching the end of their service life, and good vessels that are just getting
worn out, the Midnight Express, a year ago we created a technology investment program to
build a one-of-a-kind boat. This is the advanced concept technology demonstrator.

It's oriented as a requirements demonstrator and a technology push tool to give our mariners
a sense of what the requirements ought to be to replace the Midnight. This is our primary 39-
foot interceptor. This is in a class of boats that's really different from the Coast Guard
utilization. Not one that would be consistent for their mission set, but it's our primary
interdiction tool out on the Caribbean and all the coastal environments.

That boat is 39 foot and has four 225-engines, conventional seats and, you know, some type
of law enforcement capability, but not anything substantial. The advanced concept technology
demonstrator is a one-of-a-kind boat, 43-foot developmental hull, four 350-horsepower
developmental Mercury Verados, the largest developmental racing engine made.

We mounted 2762 (ph) machine guns with the help of the U.S. Coast Guard, state-of-the-art
flare (ph), state-of-the-art integrated flat blade displays, state-of-the-art seats, shock-
absorbing seats. It's the biggest investment in our human capital force. They're like nothing
else. And put all of these things in one integrated boat. This boat can do things that nothing
else in its class can do -- 75 miles an hour in the open water. There's pictures of it.
Everything's out of the water except for the prop underway with a full-manned crew and 600-
gallon tank.

We're not going to buy it. We bought that one-of-a-kind boat, but that allowed us to take that
boat to all of our mariners, let them have a look, refine their requirements, and this year, this
summer, we're going out for an RFP based on what we learned from that one-of- a-kind boat
to replace our Midnight fleet.

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The first part of that has already been funded by this committee. In fact, with the added six
boats that we'll get in the funding in 2011, we'll have money in hand for 23 of these new
vessels, and there'll be nothing like it. That's about half of our operational interceptor fleet,
which is really a good start on that effort.

And the other parts in regards to the Coast Guard's recapitalization, the 73 boats they gave
us, those were in superb condition. We re-engined those crafts. We re-furbed those. We put
those boats right into service in rough duty. Those are in fact the deaccession from one
service being recapitalized is actually a capitalization for us.

And of course, I think you all know we procure the SAFE boats for the U.S. Coast Guard and
we buy the engines and maintain those boats. We have a perfect partnership in those class of
boats where we have overlapping mission requirements. That relationship, in terms of
training, in terms of resourcing and sustainment and acquisition, could not be any stronger.
As you get to the larger crafts, out of class, you know, different mission set and clearly a
different kind of process.

So I believe on the marine side, now similar to the air picture and the recapitalizations we've
done, thanks to your input and the improvements we got last year, of which most are in
place, added to our facilities over in Lake Meade and some of these new marine branches
we've put up, but they all have boats and they all have mariners, and that speaks well for
that part of our program.

PRICE: Admiral?

ATKINS: Sir, I would add to that the "how" part of your question, which was how does the
department deal with that. And really, it's this DHS Small Boat Commodity Council that has
brought CBP and Coast Guard and others together where we discuss our requirements. And
as the general points out, it really is a missions- generated sort of discussion.

So if there is an opportunity for synergy, we seek it out. And it really has brought some
terrific synergies relative to the boats that we buy, the maintenance that we share. The Coast
Guard is able to take advantage of CBP maintenance contracts and we're also able to bring
together, in terms of training, those techniques and practices that align our actual tactical
operations on the water.

So it's through this DHS Small Boat Commodity Council that delivers the "how" to the
departmental ability to bring synergies in effectiveness and efficiency.

PRICE: Well, let me before I turn to Mr. Rogers, ask you about one particular threat, which
Admiral Allen has highlighted. He described -- has described the growing threat of the SPSS
vessels, the self-propelled semi-submersible vessels, noting that their use has grown
significantly and that they account for maybe one-third now of all the maritime cocaine flow.
Needless to say this goes way beyond initial expectations and projections of the importance of
these vessels.

Admiral, I wonder if you could estimate for us the number of these vessels being used by
traffickers, the number we're able to detect and stop in relation to that overall number, and to
both of you, what assets are Coast Guard and CBP bringing to bear against these vessels?
Are they enough? And then how do you target your efforts? Are you mainly relying on
surveillance? Are you getting other types of good intelligence to target these traffickers? And
what do you need to get better intelligence?

ATKINS: Sir, in terms of -- you cite the numbers in the last year, approximately 11 -- 10 to
11 SPSS's were interdicted. We believe -- I can get you for the record a more exact number
relative to the projections associated with that from JIATF-South.

In terms of what tools we're bringing to bear, really JIATF- South, again through their unified
command, we're able to bring from the Coast Guard our maritime patrol aircraft, the C-130s,
from CBP, the P-3's, and in the future we hope the UAVs It's this idea of providing that
domain awareness. And now couple that with JIATF-South intel and information, how can we
better queue the surface assets that the Coast Guard and the Navy -- the Navy carrying
Coast Guard (inaudible), is able then to execute the end game.

And so, sir, I would tell you that we, as we discussed earlier, being more effective through
that queued information from JIATF-South. And they're able to bring to bear national assets
and sound intelligence, human intelligence. We've had some fantastic opportunities working
through the Department of Justice, DEA, on how to bring to bear all the national assets

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against this threat vector.

In terms of our aviation use of force through our HITRON squadron where we put up armed
helicopters to bring a stopping function so that our vessels on the waters can then interdict
and board these vessels, that really is part of the picture, too, to our fantastic success rate
down there.

PRICE: Do you have a rough estimate you can give us of the number of these vessels that
are out there being utilized and the interdiction numbers?

ATKINS: Sir, I'd like to get back to you for that on the record.

PRICE: All right. Please do that.

General?

KOSTELNIK: Of course, the projections are really estimates. Any one -- you know, these
boats are one-way ships, so they either make it or they don't. The last time I was in JIATF-
South, they talked as many as 20 to 30 of these things at any one time being under
construction in the jungles along the riverine environments, although we can get their current
assessment.

I would just reinforce the kind of things that General Atkins said. We've made a lot of
improvement in our support in that area. Recovering the P-3 fleet has been the first order
effect because back in 2006, we only had two of the airplanes flying and in 2007 three of the
airplanes. Today we have 11 airplanes.

So, one, there's a lot more air-time being provided into the maritime role. In fact, last year in
2009, more than 58 percent of the total air picture was provided by CBP P-3s. If you look at
our P- 3 aircraft, not only have we provided the aircraft and returned them to operational
service, but we have two different kinds of P-3s in play. We have the domed (ph) aircraft,
which has a radar. That's the primary aircraft used for searching out the boats; and the
second aircraft, called the long-range Tracker, and these aircraft are typically deployed in
pairs.

Traditionally, it has a forward-looking infrared and an F-16 radar. It does the air intercept and
provides the end-game picture for the radar. So you need two things for the maritime end
game. You need radar to detect the vessel and then a flare (ph) to work with the surface
vessels, you know, for the end game.

Two years ago, we put the Seaview radar on the long-range tracker P-3. And on the first
operational deployment -- the same radar that we're putting on the Guardian with the same
amount of OT&E -- on the first operational deployment of that long-range tracker P-3 into
East- Pac last year around the first of January, in 13 days that one aircraft with the
developmental radar got three or four self-propelled semi-submersibles.

So, one, we're almost doubling the fleet by putting the Seaview radar, which we plan to do in
all of our SLICK long-range tracker aircraft. We're also going back and looking at putting a
flare (ph) on the domed aircraft. So now that's going to ultimately double the capability where
each aircraft now can fly the mission and stand alone, rather than it requiring two aircraft.

Specifically, in regards to the SPSS, not only are we going after those, but you might recall a
year ago, Science and Technology, Department of Homeland Security, built a surrogate
target. We have several of these submarines that the Coast Guard was successful in acquiring
and one or more of those to JIATF-South.

But we built a developmental target vessel that we're actually going to use that target vessel
in our Guardian test to see how the Guardian radar with the same capability that the P-3 has
does against the SPSS's. So we're enhancing our maritime capabilities with very long
duration. P-3s typical mission is about 12 hours. We can fly the Guardian about 20 hours in
East-Pac with a combined crew.

The aircraft would be launched and recovered from Central America somewhere at one of our
remote sites, but flown from a combined flight team. It could be Florida, could be Miami, could
be Fort Huachuca, Riverside, could be any of our infrastructures around the country. So, one,
not only have we recovered our P-3 fleet which gives you more time on station, but we're
adding new capabilities.

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And finally, Admiral Atkins mentioned the HITRON capability which is another great example
of partnership. Customs has had that same entitlement. We shoot out the engines on boats on
the water to stop crafts when we can run them down, but often we're outrun or don't have
enough boats or can't get to an end game. An aircraft would bring the capability.

So this past year, not reinventing the wheel, we procured the same Barrett weapon that the
Coast Guard uses in HITRON, capitalize on their expertise and their training, and this year
we're adding that capability to our Black Hawk fleet. We don't fly Black Hawks out, you know,
in the East-Pac because these aircraft are mounted on ships, but from land-based facilities
and the Sea Big (ph) area of operation and the Mona Pass in the Caribbean and other
approaches starting this year will have that capability deployed on our Black Hawks.

So if you look at the overall picture, there's a lot going on behind the scenes that deal with
this mission, and I would echo what Admiral Atkins said earlier, it's a great partnership and a
great process to have Admiral Dan Lloyd down there sitting in the chair focused entirely on
this effort, managing not only the interagency, but the international, getting the intelligence
right, getting us focused, which is the key and then focus the resource assets we have on the
ships as they actually sortie.

I don't know what we're missing, but I can tell you when you get 234 metric tons in one year
that doesn't get to the states, that's a big deal. That has to hurt somebody.

PRICE: Yes, sir.

Mr. Rogers?

ROGERS: You want to know how you can help yourselves secure the funds that you need for
your programs? Tell us about it. That's our chore. We have to decide how to allocate the
funds for your agencies.

And we're having a tough time with because we don't have your recapitalization plans which
in the case of the Coast Guard is required by law. It's in the appropriations bill of '10, and in
the report language for the CBP, and yet we don't have it. It's way overdue. What's the
problem, Admiral?

ATKINS: Sir, we're working on that report. It's now at the department and we are working
with them so that they can understand the Coast Guard's position relative to our needs.

PRICE: General?

KOSTELNIK: The reports are clearly late. In the case of Air Marine looking towards 2011, we
were late in doing our due diligence in putting our activity together, you know, given the
limited resources we have and the investment strategies, we try to optimize those as carefully
as we can. On the leading edge, in terms of our UAS program, we're very much conditioned
about the emerging threats in the real world around us.

So some of that delay I would have to take on our agency. And I know you all are aware, it's
a difficult process going through the administration to get it formally approved, not only with
the department, but with OMB and others. And that does take some time. I think you're going
to get our report very soon. I don't think you'll see a lot of surprises. We try to work closely
throughout the year with...

ROGERS: Well, I understand the difficulty in getting it through the OMB and the department
and everybody else, and that's a common problem we hear time and again on all these
agencies is we can't get OMB to clear our report that's due six months ago under the law.

I don't know why, Mr. Chairman, we don't just have the OMB up here and grill them for about
a week on every one of these departments. I mean, it's not just you. But for goodness sakes,
how can we intelligently lay out a spending plan for you if we don't know what it is you want
to do?

So I'm frustrated, and I know probably you are, too, but it's an impossible situation. We're
trying to help you sort through the funding for the CASA aircraft and the marine patrol aircraft
that you want and the sensing palettes (ph) and all those things that are Greek to a lot of us,
but we're depending on you for expert advice and we love you to come here and testify, but
we really need in writing the plans.

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I'm a great believer in planning your work and working your plan. And you're working a plan,
but I don't think the plan is written out.

Well, we hear constantly from everybody that there's not enough flight hours by all of the
equipment that each of you -- both of you have. And that also bears back on the desire that
we have to help you fulfill your mission. Now, you've -- in the CBP's '11 budget, you have no
funding for sustaining the procurement of the new multi-role enforcement aircraft. Coast
Guard's budget only includes funding for one marine patrol aircraft, the 15HC 144-A; no spare
part monies.

CBP has contracted for 30 of the multi-role enforcement aircraft, but only funds five through
the end of the current year and only enough funding for one P-3 service life extension.

Given the growing the need for flight hours, how can we hope to realize the increased flight
hours with this stinginess on acquiring and maintaining the aircraft that you have? Any
thoughts?

KOSTELNIK: Sir, I would just offer that flying our program obviously is fully funded for this
year, and I believe it's fully funded in 2011. Now, getting those aircraft in service would
certainly be a benefit in regards to the five MEAs and it will take us some time to get those
aircraft in service.

In fact, we do have those first five aircraft on contract. The first aircraft is actually coming
down the assembly line at Beech (ph) and should be out and delivered to the contractor for its
law enforcement modifications this spring. It will still be late in 2011 before we even get the
first one of those aircraft. Of course those aircraft will have to go into test.

Our contract for 30 gives us options to add those things as resources are available and of
course you hope to have continuity in those investment lines. But the MEA program is really
out on the leading edge again and in pretty good shape -- in some cases, giving us a little
time to make sure we get the right aircraft, make sure the sensors work properly in test is
not a bad thing.

On the P-3 investment, that's actually the addition of another wing set, that'll be our 10th wing
set, but those things -- we already have enough wing sets in place, so those really aren't
going to effect the re-winging of the P-3, so in fact over the foreseeable future, with two
aircraft down each year being re-winged, and in addition to the airplanes we currently have
grounded, our plan shows that we'll have 11 operational aircraft flying the mission need not
only in the transit zone meeting the 7,200 hours expected by JIATF-South, but also being able
to bring the aircraft into other roles and missions along the southwest border or along the
northwest.

ROGERS: Well the reason that -- one of the big reasons we want to see your recapitalization
plan is that we've got to try to plan the expenditures over a period of time, multi-years in
fact, and you know, it only stands to reason Coast Guard's only budgeting for one aircraft in
'11, will likely end up paying around $2 million to $5 million more per aircraft in that fashion
by piecemealing it out one or two at a time.

CBP has only received funding for five of the 30 multi-role aircraft that you're planning to
buy, no funding to sustain the procurement in '11. That'll drive up the cost per plane, possibly
elongate the delivery schedule.

So we'll wind up paying millions and millions of dollars more for the procurement program if
it's stretched out piecemeal over the years than if we went ahead and paid for them now. We
could get them at a unit cost millions of dollars cheaper than if you piecemeal it out. Is that
right or wrong? Admiral?

ATKINS: Yes sir. A consistent funded line would, as you maintain that line open, it would be
cheaper in the long run.

Sir, if I could return to one of your earlier questions about how do we seek to maintain the
hours. For the C-144s in particular, they're replacing aircraft that are supposed to bring 800
program flight hours per asset. Whereas the 144s are supposed to be bringing us 1,200
program flight hours per asset.

And so in this year, working with our aviation training command, and as we go forward into
our first operational unit at Miami, we are on schedule to hit that target of 1,200 program
flight hours. So it's this idea that through new assets with better service life, with better

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maintenance that don't have the issues of the reliability and maintainability and operational
overhead associated with older aircraft, we're going to be able to maintain those op hours,
sir.

ROGERS: There's no funding for spare parts that you requested.

ATKINS: Yes sir, that's correct.

ROGERS: How come?

ATKINS: Sir, again, we're living within the constraints and we're making priorities, and in
order to move forward on surface recapitalization that was the priority for that year, sir.

ROGERS: Is the -- has the procurement plan -- the capitalization plan that you have
submitted to the department and to OMB, does that plan anticipate the need to procure these
items not one at a time, but in wholesale lots? Either one of you?

ATKINS: I'm sorry. I'm not sure I understand your question relative to wholesale lots.

ROGERS: You have in your mind, at least, and probably on paper, you know what you want to
do. You've got a recapitalization plan, do you not? Each of you in your own world?

ATKINS: Yes, sir.

ROGERS: And you have submitted that recapitalization plan to the higher-ups, have you not?
To the department?

ATKINS: Yes, sir.

ROGERS: And to the OMB?

ATKINS: The report that we discussed earlier, sir, is at review with our department right now.

ROGERS: Is what? I'm sorry. What did you say?

ATKINS: The Deepwater Report, sir, our plan going forward, is with the Department and we
are working with them right now to understand the puts and takes.

ROGERS: OK.

General?

KOSTELNIK: The MEA program, as we contracted out with lot option buys, we really don't pay
more in the long run if we don't put the rest of the aircraft on right away. The commercial
market, I mean, has the basic aircraft available, you know, more frequently.

So in the near term, there really isn't any impact to this because it takes us so long to build
the aircraft and get the pieces on. There will be a time at some point if we don't add to the
option and procure the aircraft where there could be the kind of issues you're referring to,
including sub-optimization. But right now, I would characterize that that program is well on
track.

In regards to flying hours, because these are not going to be additive aircraft to our fleet,
these are aircraft that are going to replace existing C-12s that we're still continuing to
maintain and fly out the end of their service life. So as these aircraft come on board, we'll be
retiring other aircraft at the end of our (inaudible).

And also for us, the biggest part of our flight operation is the rotary wing. We do have
obviously fixed wings. We talked about the P-3s and the MEAs, but a big part of our force is
the rotary wing program, and that program is very important because it's a very tight
helicopter market and the kind of aircraft that we buy, and through the support we've had
from this committee, that program is well established. We acquire another eight aircraft in
2011. We continue to keep that line open. We're well along in that particular program.

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We would see the kind of issues you talk about if we had a break in our procurement or the
numbers. And to the credit of this committee and to the administration, we continue to get
those aircraft in at one per month. In fact by the end of 2011, we will have acquired 39 of the
new ASTAR 350B3 aircraft with fleers (ph) and full law enforcement packet.

This is the mainline part of our small rotary wing fleet that will be taking a lot of the aircraft,
the OA-6, the MD-500s, the MD- 600s out of service. So in a much bigger part of our
program, I think you'd see the coherency and the continued logical investment that you'd
expect in these other programs.

ROGERS: Well, you know, the recapitalization plan is long overdue. We've got the budget
request of the OMB before us, and I guess that answers most of the questions that have been
raised here about what they will do about the recapitalization plan that you've submitted. The
budget is the plan, I guess, and that is proposing all these horrendous cuts in your equipment
and personnel.

I don't understand, though, now why we can't get the recapitalization plan under the budget
that's been submitted to us from the department, from OMB. Right?

KOSTELNIK: It's certainly a worthy expectation and they should be both forthcoming very
soon.

ROGERS: Yes, I've heard that before, Mr. Chairman.

Well, there are others wanting to ask questions, but let me ask you this one finally. Well, I'll
yield to the next round, Mr. Chairman.

PRICE: Mr. Culberson?

CULBERSON: Thank you, Mr. Chairman.

Admiral, General, we really appreciate your service. The people of Texas are very proud of
you and appreciate what you and the men and women that you command do for our country
to protect us.

Where -- in follow-up on Mr. Rogers' questions, where is this -- who has -- apparently, you all
have obviously done your part of producing the capitalization plans, fulfilling your
requirements under the law to tell the committee what we need to do to help you. Who has
those reports? Where are they now? It sounds like they're at OMB. Is that right? Mr.
Chairman? Mr. Rogers?

(CROSSTALK)

KOSTELNIK: I can't speak for the Coast Guard, but in terms of our report, OMB was actually -
- took the least amount of time. So actually the OMB crowd is actually a pretty quick read on
our reports. And ours has gone back and forth. Some of that is our fault in Air and Marine for
not having the proper things in there and making changes and submitting into the process
kind of late. So a big part of our particular problem was our own fault.

Our report is in the final stages of review at DHS and should be forthcoming in the very near
future. I mean, the work is done and virtually approved.

CULBERSON: Who at DHS? It would be very helpful I know to Mr. Rogers and the chairman
and the staff to identify who has it so we can go find them and get it.

KOSTELNIK: I don't think I know the individual. DHS is a large infrastructure and has...

CULBERSON: Would you please find -- ask your staff and please tell the chairman and Mr.
Rogers who has it?

Admiral, can you tell us the same thing? Where is -- it sounds like you've done your due
diligence, but where is it?

ATKINS: We do share that responsibility. We just finished it up ourselves here in the Coast
Guard. We passed it to the department and we are now in the at that give-and-take stage
with the department to understand the puts and takes of the report. And so the Coast Guard

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shares responsibility for this tardiness, and we are working with the department to move it as
quickly as we possibly can.

CULBERSON: You all are very gracious about this. I understand. But please, what we're
looking for is tell Mr. Rogers and the chairman who in the Department of Homeland Security
has your capitalization report and the other information the committee needs so we can bust
it loose.

ATKINS: Yes, sir. We're working with a number of offices within the department including the
undersecretary of management's office.

CULBERSON: Undersecretary of management, there's a name.

ATKINS: Yes sir, but a whole bunch of folks relative to what's in the report and how do we
move it forward.

ROGERS: Will the gentleman yield?

CULBERSON: Yes, please. Mr. Rogers?

ROGERS: And while you're at it, convey to them that this subcommittee is not in the business
of writing blank checks. We want to know what we're buying and we don't know that without
that report.

CULBERSON: And we are really serious about it. I mean, we really want to help you. We
admire you. We revere you guys and want to help, and you're being very gracious and
diplomatic about it. Tell us who and we'll go find it.

Let me, if I could, also ask -- General, I represent Houston, which is to the energy industry
what Silicon Valley is to the computer industry, and the committee may not be aware, Mr.
Chairman and Mr. Rogers, that Homeland Security actually came out with a rule, a tentative
rule last year that we found out about at the last minute because there was no notice, that the
-- all the off-shore drilling -- if you're an offshore drilling platform or rig in the Gulf of Mexico
or anywhere in the United States -- could no longer use foreign- flagged vessels.

(CROSSTALK)

CULBERSON: Just out of the blue, Homeland Security comes out with this rule that says no
foreign-flagged vessel can support or bring supplies to any offshore drilling rig. You can
imagine what a catastrophe that would be. We were fortunate -- I objected and others
objected and that rule was withdrawn.

And obviously you want to make sure that we're protecting that strategic asset, but it has
never been a problem and there are virtually no American foreign-flagged supply vessels that
supply these offshore rigs.

Can you tell us, General, the status of that rule? We understand -- I've been told by
Oceaneering, the folks that do the underwater exploration -- they do the blow-out preventers
-- that they understand this rule is about to be resubmitted. I certainly hope not, and you
need to make sure that you're including the industry if you're thinking about a similar rule. It
has to include input from the industry and we need to know about it in advance.

Can you tell us what is the status of that? Is there going to be another such rule proposed?
And Admiral, maybe you, I'm not sure. CBP -- it really is CBP, Admiral.

KOSTELNIK: I'm not aware of that law or that approach. That could be something with the
Office of Field Operation, but it is really beyond my area of expertise. Really, I'm not familiar
with it.

CULBERSON: Would you have somebody in your staff -- would somebody run that down for
us? That's a big one.

KOSTELNIK: If it is from CBP, we'll take a look at it.

CULBERSON: Shutting down all offshore oil and gas production is a pretty big deal, which
would be the effect of that rule. It would just kill us.

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Another one I want to ask, General, is the Predators are extraordinarily important. One of my
-- a thing I discovered in touring the border, up and down the southern border, is you've got
wildly different levels in enforcement. In sectors of Texas, the Border Patrol is essentially
zero tolerance. They call it Operation Streamline and it works beautifully. Local communities
support it. The local community is 96 percent Hispanic on the Texas border. In Del Rio and
Laredo, the crime rate has plummeted. The Border Patrol is enforcing existing law. We've
supplied you with additional resources in order to keep up the prosecution rate, but the illegal
crossings have essentially just disappeared in those sectors where the law's being enforced.

However, in Tucson, we visited...

(CROSSTALK)

CULBERSON: ... we visited Fort Huachuca, Mr. Chairman and Mr. Rogers, and saw some of
the extraordinary assets you've got there with the Predators. We were shown a C.D., Mr.
Chairman, of the Predator had actually spotted...

(CROSSTALK)

CULBERSON: ... you can actually see this caravan of smugglers coming over the southern
border, Mr. Chairman, with the Predator -- and at night, dead at night, your Border Patrol
agents -- I mean the brave souls, God bless them, go out in the dead of night in that desert to
intercept these heavily armed smugglers and they were carrying thousands of pounds, I think
it was a huge load -- a huge load of dope. And the Predator set the whole thing up. You see
the whole thing on video tape, Mr. Chairman and Mr. Rogers.

And then we discover the prosecutor in Tucson would not prosecute. And apparently it
happens all the time that you guys risk your lives, make these arrests and as far as we can
tell it's still the case in Tucson that if you're arrested in the Tucson sector -- you're crossing
the border illegally, carrying less than 500 pounds of dope -- you have a 99.6 percent chance
-- 99.6 percent chance of never going to jail. And all the smugglers is out of is about three
hours and the load.

Now, that's still apparently the case. Could you -- are you familiar with this problem in Tucson
and are you continuing to have difficulty getting the U.S. attorney to prosecute intercepts and
arrests that your agents make using your Predators?

KOSTELNIK: It's really not limited to the Predator part of the mission.

CULBERSON: It is. It's bigger than that.

KOSTELNIK: We're part of the air picture for the Border Patrol field commanders who actually
kind of run the mission on the ground, but I would offer that I am familiar with the issue on
the prosecutors and which cases they choose to take. And it is frustrating when you find
people that are obviously involved in a criminal enterprise, large or small, that they're not
prosecuted.

But my guess is that the capacity is limited. They have to choose the cases wisely. I don't
think the cases they choose have anything to do with whether it's Predator-related or not.

CULBERSON: Yes sir, that is your area of expertise.

KOSTELNIK: But I know that there are limits on how much, or what kind of narcotics...

CULBERSON: That's what they tell us.

KOSTELNIK: There are certain kinds of things they choose not to prosecute.

CULBERSON: But the point is, could I have someone on your staff -- would you please go
back and look and tell us the level of arrests versus prosecution? I mean, the people -- the
people that you all arrest in those different sectors, what percentage are prosecuted in those
different sectors up and down the border?

KOSTELNIK: We could probably give you some sense of that.

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CULBERSON: And it is -- you're aware of -- in Tucson you're aware of the 99 percent-plus

release rate that they don't prosecute?

KOSTELNIK: Well, I couldn't, you know...

CULBERSON: The percent...

KOSTELNIK: I can't confirm or deny the actual percentage, but I know that there are a lot.

CULBERSON: They turn almost all of them loose.

KOSTELNIK: A lot of it is humanitarian.

CULBERSON: Oh, no. I understand.

(CROSSTALK)

KOSTELNIK: Certain levels of narcotics -- I mean, they're interdicted and they're offered up
for prosecution. If the prosecution is not accepted, then they're repatriated.

CULBERSON: Yes sir. But regardless of the prosecutor's excuse, you're aware of, and I just
wanted you to confirm for the committee that in the Tucson sector virtually everyone that is
arrested is released.

KOSTELNIK: I don't think I could confirm that. I would say that there is a large number or a
fair percent...

CULBERSON: Extraordinarily high percentage.

KOSTELNIK: That would probably be a correct...

CULBERSON: Is that fair?

KOSTELNIK: Yes, sir.

CULBERSON: It's important for you all to know that, Mr. Chairman. We're working on it and
continuing to try to shine some sunlight on it, find some additional resources for the marshals.
We've worked for the judges there and found a way the Border Patrol, actually, Mr.
Chairman, provided an administrative facility.

There's a building in Tucson that you all own. I think the Border Patrol owns...

(CROSSTALK)

CULBERSON: ... It's an administrative building

And I'll wrap up here, Mr. Chairman, but I want to be sure while I had you here, to remind
the committee, our good chairman and ranking member, that this continues to be a terrible
problem, where the Tucson sector is essentially wide open, as is Southern California. Yet the
Yuma sector and large sectors along the Texas border, the law is being enforced very
successfully with great support from the local community. Is that an accurate statement?

KOSTELNIK: Well, I'm really not familiar with the details on the others, but...

CULBERSON: In Tucson, you've got a bad problem.

KOSTELNIK: It's a focus area, as you know, for the Border Patrol. There's a lot of activity of
all kinds and it may be a supply-and-demand issue with the attorneys.

CULBERSON: Yes. Thank you very much. I really appreciate what you guys do.

And thank you, Mr. Chairman, for going back through that. It's just important for the
committee and the staff to know how serious a problem we've got in the Tucson sector. Thank

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you very much.

PRICE: Thank you.

And with that, we will thank both of you for your service and for your testimony here this
morning. This focus -- this interagency focus on Air and Marine assets is one that we need to
take under serious consideration as we write the budget, obviously understanding that the
operations and the budgets for both of your agencies are related to each other and need to
be assessed in a coordinated fashion.

So you've helped us greatly in doing that and we're appreciative.

Mr. Rogers, do you have any final thoughts?

ROGERS: No, thank you, Mr. Chairman, except to say thank you to these gentlemen and their
staff who are with them, and to thank them for their service to their country. We appreciate it.

PRICE: With that, the subcommittee stands adjourned.

END

© 2010 Acquire Media Corporation. Published by OneSource Information Services, Inc., March 2010

Federal Contracts Awarded by Federal Agencies in Texas (March 24)

Targeted News Service
24 March 2010

[What follows is the full text of the news story.]

Related Companies
Computer Sciences [profile]
Targeted News Service Targeted News Service Corp
Oceaneering [profile]
WASHINGTON, March 24 -- The following federal contracts were announced by federal International
agencies based in Texas.
Related Geographies
*** Europe
North America
MILITARY $319 Million Federal Contract Awarded to Oceaneering International Switzerland
United States
WASHINGTON, March 23 -- Oceaneering International Inc., Houston, won a $319,263,184 California
federal contract from NASA'sJohnson Space Center, Houston, for research and development
Colorado
services on the constellation space suit system.
District of Columbia
Georgia
Contact: James P. Gips, 281/244-7878, [email protected]. CIV5FCA5. ClassA;
NAICS541; NAICS541712. New Mexico
Ohio
*** Texas
Virginia
MILITARY $6.93 Million Federal Contract Awarded to Sparkle Performance
Related Industries
WASHINGTON, March 23 -- Sparkle Performance Joint Venture II, Albuquerque, N.M., won a 1000 Metal mining
$6,933,235.32 federal contract from the U.S. Air Education and Training Command, Sheppard 3720 Aircraft and parts
Air Force Base, Texas, for custodial services. Places of performance will be at Frederick 7370 Computer and data
Auxiliary Airfield, Okla. and Sheppard Air Force Base, Texas. processing services
8700 Engineering &
Contacts: Sharon T. McCreary, 940/676-2804, [email protected]; or Brenda management services
L. Alvarado, 940/676-5189, [email protected]. MIL5FCA5. ClassS; NAICS561; Aerospace & [profile]
NAICS561720. Defense
Business Services [profile]
*** Metal Mining [profile]
Software & [profile]

Page 49
 OneSource One-Stop Reports for Oceaneering International

MILITARY $286,200 Federal Contract Awarded to Jackson & Coker LocumTenens Programming
13100 Mining of iron ores
WASHINGTON, March 24 -- Jackson & Coker LocumTenens LLC, Alpharetta, Ga., won a 72100 Hardware consultancy
$286,200 federal contract from the U.S. Army Medical Command, Fort Sam Houston, Texas, 85310 Social work activities
for three medical officers. with accommodation
1310 Metal Ore Mining
Contact: Donna Dechert, 210/221-3159. MIL5FCA5. ClassQ; NAICS621; NAICS621111. 2824 Aircraft Manufacturing
7823 Consulting Engineering
*** Services
7831 Data Processing
MILITARY $77,850 Federal Contract Awarded to Caridian BCT Services

WASHINGTON, March 24 -- Caridian BCT Inc., Lakewood, Colo., won a $77,850 federal
contract from the U.S. Air Education and Training Command, Lackland Air Force Base, Texas,
for Trima kits.

Contacts: Lionel J. Garcia, 210/671-3049, [email protected]; or Susan R. Arnold,

210/671-0929. MIL5FCA5. Class65; NAICS339; NAICS339112.

***

MILITARY $60,854 Federal Contract Awarded to CFI Security

WASHINGTON, March 24 -- CFI Security, El Paso, Texas, won a $60,854 federal contract from
the U.S. Army Contracting Command, Fort Bliss, Texas, for the procurement of closed circuit
television systems.

Contact: Shacina Hughes, 915/568-1009. MIL5FCA5. ClassS; NAICS561; NAICS561621.

***

MILITARY $12,279 Federal Contract Awarded to Pine Springs Road

WASHINGTON, March 23 -- Pine Springs Road LLC, Ruidoso Downs, N.M., won a $12,279
federal contract from the U.S. Army Contracting Command, Fort Bliss, Texas, for
transportation, travel and relocation services.

Contact: Nora Alaniz-Bouqayes, 915/569-7659. MIL5FCA5. ClassV; NAICS721; NAICS721110.

***

$15.94 Million Federal Contract Awarded to Theodor Wille Intertrade

WASHINGTON, March 23 -- Theodor Wille Intertrade, Zug, Switzerland, won a federal contract
valued at up to $15,935,840 from the General Services Administration's Federal Acquisition
Service, Fort Worth, Texas, for sourcing and logistic management services.

Contacts: Lorene N. Clerihew, 817/574-2541, [email protected]; or Alan Searsy,

817/574-2681, [email protected]. CIV5FCA5. ClassR; NAICS541; NAICS541614.

***

$2.37 Million Federal Contract Awarded to DMI Corp.

WASHINGTON, March 23 -- DMI Corp., Cedar Hill, Texas, won a $2,373,900 federal contract
from the General Services Administration's Public Buildings Service, Fort Worth, Texas, for
the replacement of a central refrigeration.

Contacts: Becky G. Clark, 817/978-7103, [email protected]; or Carol Lautzenheiser,

817/978-6165, [email protected]. CIV5FCA5. Class41; NAICS238; NAICS238220.

***

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 OneSource One-Stop Reports for Oceaneering International

$125,000 Federal Contract Awarded to Trek Diagnostic Systems

WASHINGTON, March 23 -- Trek Diagnostic Systems Inc., Cleveland, won a federal contract
valued at up to $125,000 from the General Services Administration's Federal Acquisition
Service, Fort Worth, Texas, for scientific equipment and services.

Contacts: Kyle P. Finegan, 817/574-2499, [email protected]; or Richard J. Armstead,

817/574-2317, [email protected]. CIV5FCA5. Class66; NAICS334; NAICS334516.

***

$57,112 Federal Contract Awarded to Hamilton Sundstrand Space Systems

WASHINGTON, March 23 -- Hamilton Sundstrand Space Systems, Houston, won a $57,112

federal contract from NASA'sJohnson Space Center, Houston, for phase change material trade
studies.

Contact: Perry L. Mueller, 281/483-7158, [email protected]. CIV5FCA5. ClassB;

NAICS541; NAICS541330.

***

$34,272 Federal Contract Awarded to Computer Sciences

WASHINGTON, March 24 -- Computer Sciences Corp., Fort Worth, Texas, won a $34,272
federal contract from NASA'sJohnson Space Center, Houston, for the removal of roof top air
handlers and scrubbers at Building 31 under the American Recovery and Reinvestment Act.

Contact: Kelly L. Rubio, 281/244-7890, [email protected]. CIV5FCA5. ClassE;

NAICS561; NAICS561210.

***

$19,884 Federal Contract Awarded to Zeitgeist Expressions

WASHINGTON, March 24 -- Zeitgeist Expressions Inc., San Antonio, Texas, won a federal
contract valued at up to $19,884 from the U.S. Department of Justice'sBureau of Prisons,
Grand Prairie, Texas, for the implementation of a parenting program. Place of performance
will be in Dublin, Calif.

Contact: Kevin R. Megli, 972/352-4520, [email protected]. CIV5FCA5. ClassU; NAICS611;

NAICS611710.

For more information about Targeted News Service products and services, please contact:
Myron Struck, editor, Targeted News Service LLC, Springfield, Va., 703/304-1897;
[email protected]; http://targetednews.com.

-1013486

© 2010 Acquire Media Corporation. Published by OneSource Information Services, Inc., March 2010

A - Research & Development

A--CONSTELLATION SPACE SUIT SYSTEM "CSSS"

FedBizOpps
23 March 2010

[What follows is the full text of the news story.]

Related Companies
Oceaneering [profile]
Notice Type: CONTRACT AWARD International

Page 51
 OneSource One-Stop Reports for Oceaneering International

Posted Date: 22-MAR-10 Related Geographies

North America
Agency: National Aeronautics and Space Administration United States
Texas
Office: Johnson Space Center
Related Industries
Location: OFFICE OF PROCUREMENT 1000 Metal mining
3720 Aircraft and parts
Office Address: NASA/LYNDON B. JOHNSON SPACE CENTER, HOUSTON TEXAS, 77058-3696, Aerospace & [profile]
MAIL CODE: BT Defense
Metal Mining [profile]
Classification Code: A - Research & Development 13100 Mining of iron ores
1310 Metal Ore Mining
Subject: A--CONSTELLATION SPACE SUIT SYSTEM "CSSS" 2824 Aircraft Manufacturing

Solicitation Number: NNJ06161022R

Award Number: NNJ09TA40C

Award Date: 022610

Awardee: OCEANEERING INTERNATIONAL INC., 16665 SPACE CENTER BLVD., HOUSTON, TX

77058-2253

Archive: 03282010

Contact: JAMES P. GIPS, CONTRACTING OFFICER, PHONE 281-244-7878, FAX 281-483-0503,

EMAIL [email protected] MAILTO:[email protected] [JAMES P. GIPS]

Internet Link: https://www.fbo.gov/spg/NASA/JSC/OPDC20220/Awards/NNJ09TA40C.html

© 2010 Acquire Media Corporation. Published by OneSource Information Services, Inc., March 2010

MILITARY $319 Million Federal Contract Awarded to Oceaneering International

Targeted News Service
23 March 2010

[What follows is the full text of the news story.]

Related Companies
Oceaneering [profile]
By Targeted News Service International

WASHINGTON, March 23 -- Oceaneering International Inc., Houston, won a $319,263,184 Related Geographies
federal contract from NASA'sJohnson Space Center, Houston, for research and development
North America
services on the constellation space suit system.
United States
District of Columbia
For more information about Targeted News Service's products, including its daily federal
contract report, please contact: Myron Struck, [email protected], Editor, Targeted Texas
News Service LLC, Springfield, Va., Direct: 703/866-4708, Cell: 703/304-1897. Virginia

55ChristineVerg100323-db-239118 EditorHarms Related Industries

1000 Metal mining
3720 Aircraft and parts
Aerospace & [profile]
Defense
Metal Mining [profile]
13100 Mining of iron ores
1310 Metal Ore Mining
2824 Aircraft Manufacturing

Page 52
 OneSource One-Stop Reports for Oceaneering International

© 2010 Acquire Media Corporation. Published by OneSource Information Services, Inc., March 2010

CONFERENCES: 38TH ANNUAL ENERGY CONFERENCE - 3/24/10 (5 DAY CONFERENCE)

TheFlyontheWall.com
22 March 2010

[What follows is the full text of the news story.]

Related Companies
Alpha Natural [profile]
3/24/10 (5 DAY CONFERENCE) Resources, Inc.
Anadarko [profile]
Managers: Howard Weil Petroleum Corp
Beta Oil & Gas Inc [profile]
Location: Sheraton New Orleans Bill Barrett [profile]
Corporation
City: New Orleans Carbo Ceramics [profile]
Inc
State: LA Carrizo Oil & Gas [profile]
Inc
Chesapeake [profile]
Program: 9:50am Energy Corp
Concho Resources [profile]
HK Inc.
Continental [profile]
10:15 Resources, Inc.
Dresser-Rand [profile]
CRZO GOK Group Inc.
Dril-Quip Inc [profile]
11:20 El Paso Corp [profile]
Energen Corp [profile]
EXH Englobal Corp [profile]
Exterran Holdings, [profile]
Inc.
11:45
FMC Technologies [profile]
Inc
BRS
Forest Oil Corp [profile]
Geokinetics Inc [profile]
2:15pm
Goodrich [profile]
Petroleum Corp
EXXI Hercules Offshore, [profile]
Inc.
3:05 Kodiak Oil & Gas [profile]
Corp.
HAWK Lufkin Industries [profile]
Inc
Nabors Industries [profile]
3:30
Ltd
Noble Energy Inc [profile]
PKD
Occidental [profile]
Petroleum Corp
4:30 Oceaneering [profile]
International
LUFK Offshore Logistics [profile]
Inc
No Time Specified: Parker Drilling Co [profile]
Penn Virginia [profile]
CLR Corporation
Pioneer Natural [profile]
Resources
Special comments: 5 Day Conference3/21-3/25/10. For more information, please contact
your representative. Plains Exploration [profile]
& Production Co LP
Pride International [profile]
Inc

Page 53
 OneSource One-Stop Reports for Oceaneering International

SandRidge Energy [profile]

Inc.
Southwestern [profile]
Energy Co
St Mary Land & [profile]
Exploration Co
Stone Energy Corp [profile]
Tidewater Inc [profile]
Williams Cos Inc [profile]

Related Topics
Conferences, Seminars &
Conventions
Finance & Accounting
Standards

Related Geographies
North America
United States
Louisiana

Related Industries
100 Agricultural Production -
Crops
1000 Metal mining
1300 Oil and gas extraction
3500 Machinery, exc
electrical
3990 Miscellaneous
manufacturing industries
4200 Trucking and
warehousing
4400 Water Transportation
4500 Transportation by air
4600 Pipelines, except
natural gas
4900 Electric, gas, and
sanitary services
4920 Gas production and
distribution
5000 Wholesale trade --
durable goods
8700 Engineering &
management services
Airlines [profile]
Business Services [profile]
Crops [profile]
Electric Utilities [profile]
Metal Mining [profile]
Misc. Capital Goods [profile]
Natural Gas Utilities [profile]
Oil & Gas [profile]
Operations
Oil Well Services & [profile]
Equipment
Personal & [profile]
Household Prods.
Trucking [profile]
Water [profile]
Transportation
01000 Agriculture, hunting,
and related service activities
11100 Extraction of crude
petroleum and natural gas

Page 54
 OneSource One-Stop Reports for Oceaneering International

13100 Mining of iron ores

29110 Manufacture of
engines and turbines, except
aircraft, vehicle and cycle
engines
36220 Manufacture of
jewellery and related
articles not elsewhere
classified
40100 Production and
distribution of electricity
40200 Manufacture of gas;
distribution of gaseous fuels
through mains
50100 Sale of motor
vehicles
60240 Freight transport by
road
85310 Social work activities
with accommodation
100 Agriculture
120 Oil and Gas Extraction
1310 Metal Ore Mining
2841 Computer and
Business Machine
Manufacturing
2940 Other Manufacturing
3600 Electricity and Gas
Supply
3620 Gas Supply
4600 Machinery and Motor
Vehicle Wholesaling
6300 Water Transport
6400 Air and Space
Transport
6501 Pipeline Transport
6709 Storage n.e.c.
7823 Consulting Engineering
Services

© 2010 Acquire Media Corporation. Published by OneSource Information Services, Inc., March 2010

TX Oceaneering Weil 03 16
Associated Press
16 March 2010

[What follows is the full text of the news story.]

Related Companies
Oceaneering [profile]
bc-TX-Oceaneering-Weil 03-16 International

1/8STK 3/8 OII Related Geographies

North America
1/8IN 3/8 OIL GAS UTI United States
Texas
1/8SU 3/8 TDS
Related Industries
TO BUSINESS AND ENERGY EDITORS: 1000 Metal mining
3530 Construction and
Oceaneering to Present at Howard Weil 38th Annual Energy Conference related machinery
Constr. & Agric. [profile]
HOUSTON, March 16 /PRNewswire-FirstCall/ -- Oceaneering International, Machinery

Page 55
 OneSource One-Stop Reports for Oceaneering International

Metal Mining [profile]

Inc. (NYSE: OII) announced today that T. Jay Collins, President and Chief 13100 Mining of iron ores
29230 Manufacture of non-
Executive Officer, will deliver a presentation at the Howard Weil 38th Annual domestic cooling and
ventilation equipment
1310 Metal Ore Mining
Energy Conference on Tuesday, March 23, 2010.
2862 Mining and
Construction Machinery
The presentation slides will be accessible after the close of the market Manufacturing

on Friday, March 19, 2010, through the Investor Relations link at

Oceaneering's website, http://www.oceaneering.com. There will not be a webcast of

the presentation.

Oceaneering is a global oilfield provider of engineered services and

products primarily to the offshore oil and gas industry, with a focus on

deepwater applications.

SOURCE Oceaneering International, Inc.

-0- 03/16/2010

/CONTACT: Jack Jurkoshek, Director Investor Relations of Oceaneering

International, Inc., +1-713-329-4670; Fax, +1-713-329-4653;

[email protected]./

/Web Site: http://www.oceaneering.com /

(OII)

CO: Oceaneering International, Inc.

ST: Texas

IN: OIL GAS UTI

SU: TDS

PR

-- DA71623 --

8723 03/16/201017:56 EDThttp://www.prnewswire.com

© 2010 Acquire Media Corporation. Published by OneSource Information Services, Inc., March 2010

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Oceaneering to build new DSV

Offshore
01 February 2010
By Paganie, David

[What follows is the full text of the article.]

Related Companies
EMCO Ltd [profile]
Oceaneering International Inc. has contracted a US Gulf Coast shipyard to construct a new
ENSCO [profile]
dive support vessel (DSV). The company expects delivery of the 200-ft x 46-ft (61-m x 14-m)
International Inc
vessel in the fourth quarter of this year. The new DSV will replace the Ocean Project, which
was built in 1972. Oceaneering [profile]
International
The vessel will be US-flagged and outfitted to perform subsea inspection, repair, and
maintenance (IRM) services and to support construction operations in the Gulf of Mexico.
Oceaneering believes that there are over 3,500 platforms and approximately 20,000 mi
(32,187 kin) of pipelines in use in the GoM that will need servicing for the future.

The vessel will have built-in diving equipment, including a dive control system and
decompression chambers. It will have accommodations for 50 personnel and equipped with a
40-ton (36-metric ton) crane, a working moon pool, and a four-point mooring system enabling
operations in 700 ft (213 m) of water.

In other GoM vessel news, Ensco International expects the recently delivered
semisubmersible drilling rig Emco 8502 to begin its two-year commitment with Nexen in the
second quarter of this year.

The semisub has a 35,000-ft (10,668-m) nominal rated drilling depth, 2 million pounds of
hoisting capacity, 8,000 tons (7,257 metric tons) of variable deck load, and it can be
upgraded to drill and complete wells in up to 10,000 ft (3,048 m) of water. O

David Paganie * Houston

COPYRIGHT 2010 PennWell Publishing Corp.

Copyright 2010 Gale, Cengage Learning. All rights reserved. Published by OneSource Information Services, Inc.

Shell, Oceaneering set subsea well intervention record

Offshore
01 January 2010
By Paganie, David

[What follows is the full text of the article.]

Related Companies
Oceaneering [profile]
Shell and Oceaneering International have set a new industry record in subsea well International
intervention by replacing a failed subsurface-controlled subsurface safety valve in the GoM
using an openwater wireline technique in 2,673 ft (815 m) of water. Until now, openwater
wireline has only been deployed in shallower waters, predominantly in the North Sea, the
companies say.

Oceaneering International provided the vessel and services for the operation. The company's
subsea intervention lubricator system (SILS) was used. Launched from the mulfiservice
vessel Olympic Intervention IV, the system is designed to perform wireline-based subsea well
interventions without a drilling rig or large multiservice vessel and workover riser. Shell says
its next focus area is deepwater coiled tubing deployment.

David Paganie * Houston

COPYRIGHT 2010 PennWell Publishing Corp.

Copyright 2010 Gale, Cengage Learning. All rights reserved. Published by OneSource Information Services, Inc.

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 OneSource One-Stop Reports for Oceaneering International

Shell, Oceaneering set subsea well intervention record

Offshore
01 January 2010
By Paganie, David

[What follows is the full text of the article.]

Related Companies
Oceaneering [profile]
Shell and Oceaneering International have set a new industry record in subsea well International
intervention by replacing a failed subsurface-controlled subsurface safety valve in the GoM
using an openwater wireline technique in 2,673 ft (815 m) of water. Until now, openwater
wireline has only been deployed in shallower waters, predominantly in the North Sea, the
companies say.

Oceaneering International provided the vessel and services for the operation. The company's
subsea intervention lubricator system (SILS) was used. Launched from the mulfiservice
vessel Olympic Intervention IV, the system is designed to perform wireline-based subsea well
interventions without a drilling rig or large multiservice vessel and workover riser. Shell says
its next focus area is deepwater coiled tubing deployment.

David Paganie * Houston

COPYRIGHT 2010 PennWell Publishing Corp.

Copyright 2010 Gale, Cengage Learning. All rights reserved. Published by OneSource Information Services, Inc.

Oceaneering International
Offshore
01 October 2009

[What follows is the full text of the article.]

Related Companies
Oceaneering [profile]
Oceaneering International has named Kevin Kerins as senior VP for remotely operated International
vehicles (ROVs). Kerins has been with Oceaneering for 31 years.

COPYRIGHT 2009 PennWell Publishing Corp.

Copyright 2009 Gale, Cengage Learning. All rights reserved. Published by OneSource Information Services, Inc.

Petrobras issues global umbilical supply order

Offshore
01 September 2009
By Kliewer, Gene

[What follows is the full text of the article.]

Related Companies
Oceaneering [profile]
Oceaneering International Inc. has landed an umbilical supply contract from Petrobras for International
four exploration and production units offshore Brazil. The order is for as many as 52 electro-
hydraulic thermoplastic control umbilicals totaling165 km (100 mi) in length for water depths
down to 6,500 ft (1,981 m). Contract value is between $44 million and $64 million. Related Geographies
South America
Manufacture is under way at Oceaneering's facility in Niteroi, Brazil, and is scheduled for Brazil
completion in late 2010.

Gene Kliewer * Houston

COPYRIGHT 2009 PennWell Publishing Corp.

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 OneSource One-Stop Reports for Oceaneering International

Copyright 2009 Gale, Cengage Learning. All rights reserved. Published by OneSource Information Services, Inc.

Petrobras issues global umbilical supply order

Offshore
01 September 2009
By Kliewer, Gene

[What follows is the full text of the article.]

Related Companies
Oceaneering [profile]
Oceaneering International Inc. has landed an umbilical supply contract from Petrobras for International
four exploration and production units offshore Brazil. The order is for as many as 52 electro-
hydraulic thermoplastic control umbilicals totaling165 km (100 mi) in length for water depths
down to 6,500 ft (1,981 m). Contract value is between $44 million and $64 million. Related Geographies
South America
Manufacture is under way at Oceaneering's facility in Niteroi, Brazil, and is scheduled for Brazil
completion in late 2010.

Gene Kliewer * Houston

COPYRIGHT 2009 PennWell Publishing Corp.

Copyright 2009 Gale, Cengage Learning. All rights reserved. Published by OneSource Information Services, Inc.

Heat-treatment facility
Industrial Heating
01 August 2009

[What follows is the full text of the article.]

Related Companies
Oceaneering [profile]
Oceaneering Inspection opened a new heat-treatment facility for stress relieving large- International
diameter pipe spools and pressure vessels at parent company Oceaneering International's
Houston, Texas, corporate campus. The 17-foot x 17-foot x 60-foot track-mounted furnace is
retractable along a 120-foot hearth. The maximum temperature specification is 1450 Related Geographies
[degrees]F, and vessels weighing up to 100,000 pounds can be accommodated. The new North America
furnace adds to the company's existing 7-foot x 7-foot and 8-foot x 15-foot heat-treatment United States
ovens. The company provides inspection and nondestructive testing services mainly to the
Texas
power-generation, oil and gas, petrochemical and engineering industries.

COPYRIGHT 2009 BNP Media

Copyright 2009 Gale, Cengage Learning. All rights reserved. Published by OneSource Information Services, Inc.

Heat-treatment facility
Industrial Heating
01 August 2009

[What follows is the full text of the article.]

Related Companies
Oceaneering [profile]
Oceaneering Inspection opened a new heat-treatment facility for stress relieving large- International
diameter pipe spools and pressure vessels at parent company Oceaneering International's
Houston, Texas, corporate campus. The 17-foot x 17-foot x 60-foot track-mounted furnace is
retractable along a 120-foot hearth. The maximum temperature specification is 1450 Related Geographies
[degrees]F, and vessels weighing up to 100,000 pounds can be accommodated. The new North America
furnace adds to the company's existing 7-foot x 7-foot and 8-foot x 15-foot heat-treatment United States
ovens. The company provides inspection and nondestructive testing services mainly to the
Texas
power-generation, oil and gas, petrochemical and engineering industries.

Page 60
 OneSource One-Stop Reports for Oceaneering International

COPYRIGHT 2009 BNP Media

Copyright 2009 Gale, Cengage Learning. All rights reserved. Published by OneSource Information Services, Inc.

Oceaneering International CEO to Present at Calyon Energy Forum

Energy Resource
07 May 2009

[What follows is the full text of the article.]

Related Companies
Oceaneering [profile]
ENERGY RESOURCE-7 May 2009-Oceaneering International CEO to Present at Calyon Energy International
Forum(C)2009 JeraOne - http://www.jeraone.com

Oceaneering International President and Chief Executive Officer T. Jay Collins will present at
the Calyon Energy Forum in New York Thursday, May 14.

Presentation slides for the 9:45 a.m. Eastern talk will be available after the close of the
market on May 12, through the Investor Relations link at Oceaneering's website,
www.oceaneering.com.

There will not be a webcast of the presentation.

Oceaneering is a global oilfield provider of engineered services and products primarily to the
offshore oil and gas industry, with a focus on deepwater applications.

((Comments on this story may be sent to [email protected]))

((Distributed via M2 Communications Ltd - http://www.m2.com))

COPYRIGHT 2009 Normans Media Ltd.

Copyright 2009 Gale, Cengage Learning. All rights reserved. Published by OneSource Information Services, Inc.

NOIA officers, board of directors and executive committee

Offshore
01 May 2009

[What follows is the full text of the article.]

Related Companies
Amec Plc [profile]
National Officers:
Callon Petroleum [profile]
Co
Chairman Contango Oil & Gas [profile]
Co
T. Jay Collins Diamond Offshore [profile]
Drilling Inc
President & CEO Exxon Mobil Corp [profile]
First Wave Marine [profile]
Oceaneering International Inc. Inc
Halliburton Co [profile]
Houston, Texas Petroquest Energy [profile]
Rowan Cos Inc [profile]
Vice Chairman SEACOR Smit Inc [profile]
Tesco Corporation [profile]
Burt A. Adams Trelleborg Ab [profile]
Vallourec [profile]
President & CEO Weatherford [profile]
International

Page 61
 OneSource One-Stop Reports for Oceaneering International

OGRS, LLC
Related Geographies
North America
Morgan City, Louisiana
United States
Louisiana
Secretary
Texas

John D. "Rusty" Meador

President & CEO

Gulf Publishing Co.

Houston, Texas

Treasurer

Len Paton

Partner

Parks, Paton, Hoepfl & Brown

Houston, Texas

President

Tom Fry

NOIA

Washington, D. C.

NOIA Board of Directors

& Executive Committee *

Chairman

T. Jay Collins *

President & CEO

Oceaneering International Inc.

Vice Chairman

Burt A. Adams *

President & CEO

OGRS LLC

Morgan City, Louisiana

Dick Alario *

Chairman, President, CEO

Key Energy Services

Page 62
 OneSource One-Stop Reports for Oceaneering International

Houston, Texas

Peter S. Atkinson *

President

Global Industries Ltd

Houston, Texas

David Barr

President, Completion & Production

Baker Hughes Inc.

Houston, Texas

Annell Bay *

Senior Vice President, Exploration

Marathon Oil Co.

Houston, Texas

W. A. Bisso, III

Chairman & CEO

Bisso Marine Co.

New Orleans & Houston

Pat Bond

Group Vice President

Global Market & Sales Support

Weatherford International

Houston, Texas

Alan Breaud

Partner

Breaud & Meyers

Lafayette, Louisiana

Scott Cameron

Vice President Exploration Americas South

Shell Exploration & Production Co.

Houston, Texas

Page 63
 OneSource One-Stop Reports for Oceaneering International

William E. Chiles *

President & CEO

Bristow Inc.

Houston, Texas

William K. Coates

President, Oilfield Services, North America

Schlumberger

New Orleans, Louisiana

Brady Como

Executive Vice President

Delmar Systems Inc.

Broussard, Louisiana

Hank Danos

President

Danos & Curole Marine Contractors Inc.

Larose, Louisiana

Pamela Darwin *

Vice President

Geoscience

ExxonMobil Production Co.

Houston, Texas

Lawrence R. Dickerson *

President & CEO

Diamond Offshore Drilling

Houston, Texas

Robert Deason *

President & CEO

J. Ray McDermott

Houston, Texas

Cornelius Dupre

Page 64
 OneSource One-Stop Reports for Oceaneering International

Chairman of the Board

Dupre Interests

Houston, Texas

Rodney Erskine

Chief Executive Officer

Erskine Energy LLC

Houston, Texas

William F. Flores

Senior Vice President, Engineering

Houston Energy LP

Houston, Texas

Christopher Gaut *

President, Drilling and Evaluation Division

Halliburton

Houston, Texas

Al A. Gonsoulin

Chairman

PHI Inc.

Lafayette, Louisiana

Bruce Gresham

Vice President North America

Heerema Marine Contractors U.S. Inc.

Houston, Texas

Terrence E. Hall

Chairman & CEO

Superior Energy Services

Harvey, Louisiana

Quinn Hebert

CEO and President

Cal Dive

Page 65
 OneSource One-Stop Reports for Oceaneering International

Houston, Texas

Kirk Headley

President

American Pollution Control

New Iberia, Louisiana

Bob Hogan

President & CEO

AmerCable Inc.

Houston, Texas

Darrell Hollek *

Vice President, Gulf of Mexico Operations

Anadarko Petroleum Corp.

Houston, Texas

Todd Hornbeck

Chairman, President, CEO

Hornbeck Offshore Services LLC

Covington, Louisiana

Don Hrap

President, Lower 48

ConocoPhillips Co.

Houston, Texas

Howard Hughes

President & CEO

Oil States Industries

Arlington, Texas

Melody Meyer *

President

Chevron Energy Technology Co.

Houston, Texas

Jack Moore

Page 66
 OneSource One-Stop Reports for Oceaneering International

President & CEO

Cameron

Houston, Texas

Ronnie Murphy

Executive Chairman

Vision Logistics

Houston, Texas

Len Paton

Managing Partner

Parks, Paton, Hoepfl & Brown

Houston, Texas

Robert L. Potter

Vice President

FMC Technologies

Houston, Texas

Dan Rabun

Chairman, President, CEO

ENSCO International Inc.

Dallas, Texas

Brian Reinsborough

President

Nexen Petroleum U.S.A.

Plano, Texas

Larry Rigdon

Director

GulfMark Offshore Inc.

Houston, Texas

Christopher T. Seaver *

Director

Oil States International

Page 67
 OneSource One-Stop Reports for Oceaneering International

Houston, Texas

Neil Shaw

Senior Vice President,

Gulf of Mexico

BP Exploration & Production Inc.

Houston, Texas

Hobie Smith

Vice President

Smith International

Houston, Texas

Stephen Snider

President and CEO

Exterran

Houston, Texas

Nicholas Swyka

Vice Chairman

Simmons & Co. International

Houston, Texas

Dean E. Taylor *

Chairman, President & CEO

Tidewater Inc.

New Orleans, Louisiana & Houston, Texas

William Van Wie

Senior Vice President Exploration

Devon Energy Corp.

Houston, Texas

David H. Welch *

President & CEO

Stone Energy Corp.

Lafayette, Louisiana

Page 68
 OneSource One-Stop Reports for Oceaneering International

Jim Wicklund *

Partner

Carlsen Capital LLC

Dallas, Texas

NOIA Membership

Acteon Group Limited, United Kingdom

Adams & Reese LLR New Orleans, LA

Air Logistics, LLC, New Orleans, LA

Aker Kvaerner Group, Houston, TX

Aker Kvaerner, Deepwater Business Unit, Houston, TX

Aker Kvaerner, LNG Business Unit, Houston, TX

Aker Kvaerner Subsea Inc., Houston, TX

Aker Marine Contractors, Inc., Houston, TX

Alaska Support Industry Alliance, Anchorage, AK

AMEC Paragon, Inc., Houston, TX

AmerCable Incorporated, LLC, Houston, TX

American Petroleum Institute, Washington, DC

American Pollution Control Inc. (AMPOL), New Iberia, LA

Anadarko Petroleum Corporation, Houston, TX

Ankor Energy LLC, New Orleans, LA

Apache Corporation, Houston, TX

Applied Drilling Technology Inc., Houston, TX

Aries Marine Corporation, Lafayette, IA

Association of Diving Contractors, Houston, TX

ATP Oil & Gas Corporation, Houston, TX

Atwood Oceanics, Inc., Houston, TX

Baker Atlas, Houston, TX

Baker Hughes Drilling Fluids, Houston, TX

Baker Hughes Incorporated, Houston, TX

Baker Oil Tools, Houston, TX

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Baker Petrolite, Houston, TX

Bassoe Offshore (USA), Houston, TX

Bell Helicopter Textron, Fort Worth, TX

Bender Shipbuilding & Repair Co. Inc., Mobile, AL

Beveridge & Diamond, RC., Washington, DC

BHP Billiton Petroleum (Americas) Inc., Houston, TX

Bisso Marine Company, Inc., New Orleans, LA

BJ Process & Pipeline Services, Houston, TX

BJ Services Company, U.S.A., Houston, TX & Santa Fe Springs, CA

BJ Services Company (MEXICANA), Houston, TX

BJ Services Company (NOWSCO), Houston, TX

Bollinger Shipyards Inc., Lockport, LA

BE Houston, TX

Breaud & Meyers, PLC, Lafayette, LA

Bristow Inc. (formerly Offshore Logistics), Houston, TX

Broadpoint Inc., Houston, TX

C&C Technologies Inc., Lafayette, LA

Cal Dive International, Inc., Houston, TX

Callon Petroleum Company, Natchez, MS

Cameron, Houston, TX

Cameron Drilling Production Systems Group, Houston, TX

Cameron Valves and Measurement Group, Houston, TX

Canal Barge Company, New Orleans, LA

Otto Candies, LLC, Des Allemands, LA

Cape Wind Associates LLC, Boston, MA

CapRock Communications, Houston, TX

Carlsen Capital, LLC, Dallas, TX

Centrelift, Houston, TX

Challenger Minerals Inc., Houston, TX

Chevron Corporation, New Orleans, LA

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Chevron Energy Technology Company, Houston, TX

Chickasaw Distributors Inc., Houston, TX

Cobalt International LLC, Houston, TX

ConocoPhillips, Houston, TX

Contango Oil & Gas, Houston, TX

Danos & Curole Marine Contractors Inc., Larose, LA

Davis-Lynch Inc., Houston, TX

Deep Gulf Energy, Houston, TX

Delmar Systems, Inc., Broussard, LA

Devon Energy Corporation, Oklahoma City, OK

Diamond Offshore Drilling, Inc., Houston, TX

Dockwise (U.S.A.) Inc., Houston, TX

Dril-Quip Inc., Houston, TX

Dupre Interests, Houston, TX

EDG Inc., Houston, TX

Edison Chouest Offshore, Galliano, LA

E1 Paso E & P Company LP, Houston, TX

Energy Partners, Ltd., New Orleans, LA

Energy Valley, Houston, TX

Energy XXI, Houston, TX

ENSCO International Incorporated, Dallas, TX

ENSCO Offshore Company, Broussard, LA

Enterprise Products, Houston, TX

Epic Divers & Marine, Harvey, LA

Erskine Energy, LLC, Houston, TX

ExPert E & P Consultants, LLC, Covington, LA

ExPert Oil & Gas, LLC, Covington, LA

ExPert Riser Solutions, LLC, Golden Meadows, LA

Exterran, Houston, TX

ExxonMobil Development Company, Houston, TX

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ExxonMobil Production Company, Houston, TX

ExxonMobil Exploration Company, Houston, TX

Fairfield Industries Inc., Houston, TX

Fairways Offshore Exploration, Inc., Houston, TX

FMC Technologies, Houston, TX

Foster Marketing Communications, Lafayette, LA

Fowler Rodriguez, New Orleans, LA

Fugro Chance, Inc., Houston, TX and Lafayette, LA

Fugro Inc., Houston, TX

Fugro Geoservices, Houston, TX

Fugro Global Environmental and Ocean Sciences, Inc., Houston, TX

Fugro McClelland Marine Geosciences Inc., Houston, TX

GH Services, LLC, Houston, TX

Galvin, Ray E., Houston, TX

Global Divers & Contractors Inc., Lafayette, LA

Global Industries Ltd., Houston, TX

Global Movible Offshore Inc., Amelia, LA

Global Pipelines PLUS Inc., Lafayette, LA

Gordon, Arata, McCollam, Duplantis & Eagan, LLP, New Orleans, LA

Gulf Island Fabrication, Inc., Houston, TX

Gulf Marine Fabricators, Aransas Pass, TX

Gulf Publishing Company, Houston, TX

John Halkyard & Associates, Houston, TX

Halliburton, Houston, TX

Hart Energy Publishing LP, Houston, TX

Harvey Gulf International Marine, Harvey, LA

Heerema Marine Contractors U.S. Inc., Houston, TX

Hercules Offshore, Houston, TX

Hercules Drilling Co., Lafayette, LA

Hercules Lifeboat Co., Lafayette, LA

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Hess Corporation, Houston, TX

Hornbeck Offshore Services, Inc., Covington, LA

Houston Energy, LE Houston, TX

Hughes Christensen, Houston, TX

Iberia Marine Service LLC, New Iberia, LA

Insitu, Bingen, WA

Integrated Production Systems, Inc., Houston, TX

INTEQ, Houston, TX

Intermoor, Inc., Houston, TX

International Association of Drilling Contractors, Houston, TX

International Association of Geophysical Contractors, Houston, TX

International Offshore Services, Houston, TX

International Petroleum Museum Exposition, Morgan City, LA

Intervale Capital, Cambridge, MA

Island Operating Company, Inc., Houston, TX

JDR Cable Systems (Holdings), Houston, TX

Jefferies & Company, New York, NY and Houston, TX

Johnson Rice & Co., LLC, New Orleans, LA

Jones, Walker, Waechter, Poitevent, Carrere & Denegre LLP, New Orleans, LA

Kelly, Hugh J., Mandeville, LA

Key Energy Services, Inc., Houston, TX

Kiewit Offshore Services, Ltd., Ingleside, TX

Laborde Marine LLC, New Orleans, LA

Laborde Marine Lifts, LLC, New Orleans, LA

Landry Harris & Co., Lafayette, LA

Leed Petroleum, LLC, Lafayette, LA

LeTourneau Inc., Longyiew, TX

Lime Rock Partners, Houston, TX

Litton Consulting Group, Woodland Hills, CA

Louisiana Mid-Continent Oil & Gas Association, Baton Rouge, LA

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Maersk Oil America, Houston, TX

MAN Diesel, Houston, TX

Marathon Oil Company, Houston, TX

Marine Spill Response Corporation (MSRC), Herndon, VA

Marlin Energy, LLC, Lafayette, LA

McDermott International, New Orleans, LA

J. Ray McDermott, S.A., Houston, TX

McMoRan Oil & Gas LLC, New Orleans, LA

MedcoEnergi US, Lafayette, LA

M-I SWACO, Houston, TX

Montco Offshore, Inc., Houston, TX

J.P. Morgan, New York, NY and Dallas, TX

Mustang Engineering, LE Houston, TX

NATCO Group, Inc., Houston, TX

National Oilwell Varco, Houston, TX

NavCom Technology, Inc., Redondo Beach, CA

New Industries, Inc., Morgan City, LA

Newfield Exploration Company, Houston, TX

Newpark Drilling Fluids, Houston, TX

Newpark Environmental Services, Lafayette, LA

Newpark Resources, Metairie, LA

Nexen Petroleum USA Inc., Dallas, TX

Noble Corporation, Houston, TX

Noble Energy, Inc., Houston, TX

Northington Strategy Group, Washington, DC

Northstar GOM, LLC, Houston, TX

Oceanic Fleet, Inc., Boutte, LA

Oceaneering International Inc., Houston, TX

Oceanweather Inc., Cos Cob, OK

Offshore Energy Services, Inc., Broussard, LA

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Offshore Engineer, Houston, TX

Offshore International Group, Houston, TX

Offshore Magazine-PennWell Publishing, Houston, TX

Offshore Marine Service Association, Harahan, LA

Offshore Specialty Fabrication, Inc., Houston, TX

Oil States Industries, Inc., Arlington, TX

OMSCO, Houston, TX

Paragon Integrity Solutions, Houston, TX

Parks Paton Hoepfl & Brown, Houston, TX

Petris Technology, Inc., Houston, TX

Petro-Hunt LLC, Dallas, TX

PFC Energy, Washington, DC

PHI Inc., Harahan, LA

PetroQuest Energy, Lafayette, LA

Petsec Energy Inc., Lafayette, LA

Pioneer Natural Resources USA, Inc., Irving, TX

Phelps Dunbar LLE New Orleans, LA

Plains Exploration & Production Company, Houston, TX

Premiere Inc., New Iberia, LA

Pride International, Houston, TX

Pritchard Capital Partners, LLC, Vienna, VA

RBC Capital Markets, Houston, TX

Rigdon Marine Corporation, New Orleans, LA

Rooster Petroleum LLC, Irving, TX

Rowan Companies, Inc., Houston, TX

Rowan Electric, Inc. D/B/A/Oilfield Electric Marine, Houston, TX

SBM-Atlantia Inc., Houston, TX

SCF Partners, Houston, TX

Schlumberger, New Orleans, LA & Houston, TX

Scorpion Offshore, Houston, TX

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SEACOR Holdings Inc., New York, NY & Ft. Lauderdale, FL

Sea Technology Compass Publications Inc., Arlington, VA

Sears, William A., Montgomery, TX

SEMPCheck Services, Houston, TX

Shell Exploration & Production Company, Houston, TX

Simmons & Company International, Houston, TX

Smith International Inc., Houston, TX

Smith Wilson Supply, Houston, TX

SOFEC, Houston, TX

Southern States Offshore, Inc., Houston, TX

Stallion Oilfield Services Ltd., Houston, TX

StatoilHydro Gulf of Mexico LLC, Houston, TX

Stone Energy Corporation, Lafayette, LA

Stress Engineering Services, Inc., Houston, TX

Subsea 7, Houston, TX

Subsea Solutions, New Orleans, LA & Houston, TX

Suggs, Carroll W., New Orleans, LA

Superior Energy Services, Inc., Harvey, LA

Superior Offshore International, Houston, TX

Sutherland, Washington, DC

T-3 Energy Services, Houston, TX

Teledyne RD Instruments, San Diego, CA & Annapolis, MD

Tesco Corporation, Houston, TX

TETRA Technologies Inc., The Woodlands, TX

Compressco Inc., The Woodlands, TX

Maritech Resources Inc., The Woodlands, TX

TGS--NOPEC Geophysical Company, Houston, TX

Tidewater Inc., New Orleans, LA

Trico Marine Services, Inc., Houston, TX

Trelleborg CRP Inc., Houston, TX

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Transocean, Inc., Houston, TX

Upstream Engineering, LLC, Houston, TX

U.S. Steel Tubular Products, Dallas, TX

Vallourec & Mannesmann Tubes Corporation, Houston, TX

VAM-PTS, Houston, TX

V & M Star, Houston, TX

Venture Transport Logistics, LLC, Houston, TX

Versabar, Inc., Belle Chasse, LA

Vinson & Elkins, Houston, TX

W & T Offshore, Houston, TX

Wachovia Capital Markets, New York, NY

Walter Oil & Gas Corporation, Houston, TX

Weatherford International, Houston, TX

Wells Fargo Energy Group, Houston, TX

Wells Fargo HSBC, Trademark, NA, Houston, TX

WesternGeco, Houston, TX

Westney Consulting Group, Inc., Houston, TX

Whitney National Bank, New Orleans, LA

Woodside Energy (USA) Inc., Houston, TX

COPYRIGHT 2009 PennWell Publishing Corp.

Copyright 2009 Gale, Cengage Learning. All rights reserved. Published by OneSource Information Services, Inc.

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Oceaneering International Annual Income Statement

Houston, Texas, United States, Tel: 713-329-4500, URL: http://www.oceaneering.com/

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Financial Glossary
31-Dec-2009 31-Dec-2008 31-Dec-2007 31-Dec-2006 31-Dec-2005
Period Length 12 Months 12 Months 12 Months 12 Months 12 Months
UpdateType/Date Updated Normal Updated Normal Updated Normal Updated Normal Updated Normal
31-Dec-2009 31-Dec-2008 31-Dec-2007 31-Dec-2006 31-Dec-2005
Filed Currency USD USD USD USD USD
Exchange Rate (Period Average) 1 1 1 1 1
Auditor Ernst & Young Ernst & Young Ernst & Young Ernst & Young Ernst & Young
LLP LLP LLP LLP LLP
Auditor Opinion Unqualified Unqualified Unqualified Unqualified Unqualified

Net Sales 1,822.1 1,977.4 1,743.1 1,280.2 998.5

Revenue 1,822.1 1,977.4 1,743.1 1,280.2 998.5
Total Revenue 1,822.1 1,977.4 1,743.1 1,280.2 998.5

Cost of Revenue 1,384.4 1,512.6 1,329.8 984.1 819.3

Cost of Revenue, Total 1,384.4 1,512.6 1,329.8 984.1 819.3
Gross Profit 437.7 464.8 413.3 296.1 179.3

Selling/General/Administrative 145.6 147.2 123.7 101.8 85.2

Expense
Total 145.6 147.2 123.7 101.8 85.2
Selling/General/Administrative
Expenses
Total Operating Expense 1,530.0 1,659.9 1,453.5 1,085.9 904.5

Operating Income 292.1 317.6 289.6 194.3 94.1

Interest Expense - Non-Operating -7.8 -13.5 -15.3 -12.9 -10.1

Interest Expense, Net Non- -7.8 -13.5 -15.3 -12.9 -10.1
Operating
Interest Income - Non-Operating 0.7 0.9 1.2 0.7 0.5
Investment Income - Non- 3.2 1.9 4.0 11.9 10.4
Operating
Interest/Investment Income - Non- 3.9 2.8 5.2 12.6 10.9
Operating
Interest Income (Expense) - Net -3.8 -10.7 -10.1 -0.3 0.8
Non-Operating Total
Other Non-Operating Income 1.5 0.3 -2.0 -3.2 -0.4
(Expense)
Other, Net 1.5 0.3 -2.0 -3.2 -0.4
Income Before Tax 289.8 307.2 277.5 190.9 94.5

Total Income Tax 101.4 107.8 97.1 66.4 31.8

Income After Tax 188.4 199.4 180.4 124.5 62.7

Net Income Before Extraord Items 188.4 199.4 180.4 124.5 62.7
Net Income 188.4 199.4 180.4 124.5 62.7

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Income Available to Common Excl 188.4 199.4 180.4 124.5 62.7

Extraord Items

Income Available to Common Incl 188.4 199.4 180.4 124.5 62.7

Extraord Items

Basic/Primary Weighted Average 54.8 54.9 54.8 54.0 52.3

Shares
Basic EPS Excl Extraord Items 3.44 3.63 3.29 2.31 1.20
Basic/Primary EPS Incl Extraord Items 3.44 3.63 3.29 2.31 1.20
Dilution Adjustment -1.3 -2.1 -1.3 0.0 0.0
Diluted Net Income 187.0 197.3 179.0 124.5 62.7
Diluted Weighted Average Shares 55.0 55.4 55.8 55.0 53.6
Diluted EPS Excl Extraord Items 3.40 3.56 3.21 2.26 1.17
Diluted EPS Incl Extraord Items 3.40 3.56 3.21 2.26 1.17
Dividends per Share - Common Stock 0.00 0.00 0.00 0.00 0.00
Primary Issue
Gross Dividends - Common Stock 0.0 0.0 0.0 0.0 0.0
Stock Based Compensation - - - - 3.1
Net Income After Stock Based - - - - 59.6
Compensation
Basic EPS After Stock Based - - - - 1.14
Compensation
Diluted EPS After Stock Based - - - - 1.11
Compensation
Interest Expense, Supplemental 7.8 13.5 15.3 12.9 10.1
Interest Capitalized, Supplemental -0.1 -0.1 -1.0 -0.1 -0.1
Depreciation, Supplemental 122.9 115.0 93.8 80.5 79.6
Normalized Income Before Tax 289.8 307.2 277.5 190.9 94.5

Inc Tax Ex Impact of Sp Items 101.4 107.8 97.1 66.4 31.8

Normalized Income After Tax 188.4 199.4 180.4 124.5 62.7

Normalized Inc. Avail to Com. 188.4 199.4 180.4 124.5 62.7

Basic Normalized EPS 3.44 3.63 3.29 2.31 1.20

Diluted Normalized EPS 3.40 3.56 3.21 2.26 1.17
Rental Expenses 74.0 79.0 82.0 34.0 38.0
Normalized EBIT 292.1 317.6 289.6 194.3 94.1
Normalized EBITDA 415.1 432.6 383.4 274.8 173.7
Current Tax - Domestic 12.8 9.4 41.5 37.4 11.9
Current Tax - Foreign 67.0 52.6 45.3 29.0 19.8
Current Tax - Total 79.8 62.0 86.9 66.4 31.8
Deferred Tax - Domestic 10.7 22.0 7.6 - -
Deferred Tax - Foreign 10.9 23.9 2.6 - -
Deferred Tax - Total 21.6 45.9 10.3 - -
Income Tax - Total 101.4 107.8 97.1 66.4 31.8
Other Pension, Net - Domestic 3.5 2.6 2.9 3.2 2.0
Domestic Pension Plan Expense 3.5 2.6 2.9 3.2 2.0
Defined Contribution Expense - 13.2 12.9 9.6 7.6 5.8
Domestic
Defined Contribution Expense - Foreign 5.2 5.1 3.8 3.5 2.7
Total Pension Expense 21.9 20.6 16.3 14.3 10.5
Total Plan Other Expense 3.5 2.6 2.9 3.2 2.0

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Annual Balance Sheet

Financials in: USD (mil)

Financial Glossary
31-Dec-2009 31-Dec-2008 31-Dec-2007 31-Dec-2006 31-Dec-2005
UpdateType/Date Updated Normal Updated Normal Updated Normal Updated Normal Reclassified
31-Dec-2009 31-Dec-2008 31-Dec-2007 31-Dec-2006 Normal
31-Dec-2006
Filed Currency USD USD USD USD USD
Exchange Rate 1 1 1 1 1
Auditor Ernst & Young Ernst & Young Ernst & Young Ernst & Young Ernst & Young
LLP LLP LLP LLP LLP
Auditor Opinion Unqualified Unqualified Unqualified Unqualified Unqualified

Cash & Equivalents 162.4 11.2 27.1 26.2 26.3

Cash and Short Term Investments 162.4 11.2 27.1 26.2 26.3
Accounts Receivable - Trade, 435.4 448.2 371.6 307.5 244.2
Gross
Provision for Doubtful Accounts -0.3 -1.5 -1.0 -0.1 -0.1
Trade Accounts Receivable - Net 435.2 446.7 370.6 307.4 244.0
Total Receivables, Net 435.2 446.7 370.6 307.4 244.0
Inventories - Raw Materials 232.2 235.6 225.4 139.9 78.9
Inventories - Other 28.3 39.6 33.9 23.7 10.4
Total Inventory 260.5 275.2 259.3 163.5 89.3
Deferred Income Tax - Current 16.1 14.6 13.6 18.6 9.1
Asset
Other Current Assets - - - 7.8 25.5
Other Current Assets, Total 16.1 14.6 13.6 26.5 34.5
Total Current Assets 874.1 747.7 670.6 523.6 394.2

Buildings - - 172.6 151.8 125.0

Machinery/Equipment - - 921.6 788.3 639.8
Other Property/Plant/Equipment - - 153.1 99.9 77.5
Property/Plant/Equipment - Gross 1,501.2 1,351.8 1,247.3 1,040.0 842.3
Accumulated Depreciation -734.9 -654.4 -609.2 -516.3 -433.1
Property/Plant/Equipment - Net 766.4 697.4 638.1 523.7 409.2
Goodwill, Net 130.8 118.7 112.0 86.9 84.6
LT Investment - Affiliate Companies 58.7 63.9 64.7 64.5 61.6
Long Term Investments 58.7 63.9 64.7 64.5 61.6
Other Long Term Assets 50.2 42.2 46.2 43.2 39.9
Other Long Term Assets, Total 50.2 42.2 46.2 43.2 39.9
Total Assets 1,880.3 1,670.0 1,531.4 1,242.0 989.6

Accounts Payable 86.5 92.5 76.8 70.8 64.3

Accrued Expenses 227.4 226.5 207.0 163.0 127.3
Notes Payable/Short Term Debt 0.0 0.0 0.0 0.0 0.0
Customer Advances 28.3 17.6 28.8 17.1 14.9
Income Taxes Payable 46.4 20.8 26.4 28.9 16.2
Other Current liabilities, Total 74.7 38.3 55.2 46.0 31.1
Total Current Liabilities 388.5 357.3 339.0 279.7 222.7

Long Term Debt 120.0 229.0 200.0 194.0 174.0

Total Long Term Debt 120.0 229.0 200.0 194.0 174.0

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Total Debt 120.0 229.0 200.0 194.0 174.0

Deferred Income Tax - LT Liability 94.2 72.2 26.6 21.4 14.9

Deferred Income Tax 94.2 72.2 26.6 21.4 14.9
Minority Interest - - - 6.5 7.2
Pension Benefits - Underfunded 39.7 28.1 42.9 38.0 29.1
Other Long Term Liabilities 13.5 15.7 7.7 5.6 5.5
Other Liabilities, Total 53.2 43.8 50.6 43.6 34.6
Total Liabilities 656.0 702.4 616.1 545.3 453.5

Common Stock 13.9 13.9 13.8 13.6 13.4

Common Stock 13.9 13.9 13.8 13.6 13.4
Additional Paid-In Capital 212.8 224.2 210.4 191.9 172.4
Retained Earnings (Accumulated 1,039.0 850.7 651.3 472.5 348.0
Deficit)
Treasury Stock - Common -27.8 -52.4 0.0 - -
Other Comprehensive Income -13.6 -68.7 39.8 18.7 2.3
Other Equity, Total -13.6 -68.7 39.8 18.7 2.3
Total Equity 1,224.3 967.7 915.3 696.8 536.1

Total Liabilities & Shareholders’ 1,880.3 1,670.0 1,531.4 1,242.0 989.6

Equity

Shares Outstanding - Common 54.9 54.5 55.1 54.4 53.6

Stock Primary Issue
Total Common Shares Outstanding 54.9 54.5 55.1 54.4 53.6
Treasury Shares - Common Stock 0.5 0.9 0.0 - -
Primary Issue
Employees 7,900 7,900 7,500 6,500 5,500
Number of Common Shareholders 397 497 356 376 386
Deferred Revenue - Current 28.3 17.6 28.8 17.1 14.9
Total Long Term Debt, Supplemental 120.0 229.0 200.0 194.0 174.0
Long Term Debt Maturing within 1 Year 20.0 105.0 20.0 20.0 20.0
Long Term Debt Maturing in Year 2 0.0 20.0 20.0 20.0 20.0
Long Term Debt Maturing in Year 3 100.0 0.0 20.0 20.0 94.0
Long Term Debt Maturing in Year 4 - 104.0 0.0 20.0 20.0
Long Term Debt Maturing in Year 5 - - 140.0 - -
Long Term Debt Maturing in 2-3 Years 100.0 20.0 40.0 40.0 114.0
Long Term Debt Maturing in 4-5 Years - 104.0 140.0 20.0 20.0
Long Term Debt Matur. in Year 6 & 0.0 0.0 0.0 114.0 20.0
Beyond
Total Operating Leases, Supplemental 173.6 170.1 187.5 123.3 54.6
Operating Lease Payments Due in Year 44.0 41.3 31.1 26.6 8.3
1
Operating Lease Payments Due in Year 33.3 28.4 37.7 20.4 7.0
2
Operating Lease Payments Due in Year 28.6 25.7 25.2 19.5 6.1
3
Operating Lease Payments Due in Year 19.7 24.1 23.7 7.3 5.7
4
Operating Lease Payments Due in Year 6.8 14.6 22.8 6.4 5.0
5
Operating Lease Pymts. Due in 2-3 61.9 54.1 62.9 39.9 13.1
Years
Operating Lease Pymts. Due in 4-5 26.5 38.7 46.5 13.8 10.6
Years
Oper. Lse. Pymts. Due in Year 6 & 41.1 36.0 47.0 43.0 22.6

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Beyond
Pension Obligation - Foreign 21.0 17.0 24.0 20.9 -
Plan Assets - Foreign 15.0 12.0 16.0 14.1 -
Funded Status - Foreign -6.0 -5.0 -8.0 -6.8 -
Total Funded Status -6.0 -5.0 -8.0 -6.8 -
Accrued Liabilities - Domestic -6.3 -5.6 -4.8 -10.5 -4.6
Accrued Liabilities - Foreign - -5.0 -8.0 -6.8 -
Other Assets, Net - Foreign - - 2.3 -2.4 -
Net Assets Recognized on Balance -6.3 -10.6 -10.5 -19.7 -4.6
Sheet
Total Plan Obligations 21.0 17.0 24.0 20.9 -
Total Plan Assets 15.0 12.0 16.0 14.1 -

Annual Cash Flows

Financials in: USD (mil)

Financial Glossary
31-Dec-2009 31-Dec-2008 31-Dec-2007 31-Dec-2006 31-Dec-2005
Period Length 12 Months 12 Months 12 Months 12 Months 12 Months
UpdateType/Date Updated Normal Updated Normal Reclassified Updated Normal Updated Normal
31-Dec-2009 31-Dec-2008 Normal 31-Dec-2006 31-Dec-2005
31-Dec-2009
Filed Currency USD USD USD USD USD
Exchange Rate (Period Average) 1 1 1 1 1
Auditor Ernst & Young Ernst & Young Ernst & Young Ernst & Young Ernst & Young
LLP LLP LLP LLP LLP
Auditor Opinion Unqualified Unqualified Unqualified Unqualified Unqualified

Net Income/Starting Line 188.4 199.4 180.4 124.5 62.7

Depreciation 122.9 115.0 93.8 80.5 79.6
Depreciation/Depletion 122.9 115.0 93.8 80.5 79.6
Deferred Taxes 21.6 45.9 10.3 - -
Unusual Items -0.3 -5.5 -4.2 0.0 0.0
Equity in Net Earnings (Loss) 5.2 0.7 0.0 -2.9 -8.4
Other Non-Cash Items 6.4 8.0 5.3 11.3 0.6
Non-Cash Items 11.3 3.2 1.1 8.4 -7.8
Accounts Receivable 11.6 -71.9 -55.4 -45.8 -56.9
Prepaid Expenses 14.1 -16.0 -95.7 -83.7 -37.5
Other Assets -9.5 4.5 1.5 -4.4 -0.7
Accounts Payable -6.0 14.6 6.1 6.5 12.6
Accrued Expenses 14.1 10.3 55.7 37.9 26.0
Taxes Payable 25.6 -7.6 -2.5 12.7 11.6
Other Liabilities 8.1 -5.3 -1.2 14.8 4.4
Other Operating Cash Flow 16.2 -44.2 14.9 - -
Changes in Working Capital 74.0 -115.6 -76.6 -62.1 -40.6
Cash from Operating Activities 418.2 247.9 208.9 151.2 93.9

Purchase of Fixed Assets -175.0 -209.3 -208.7 -192.4 -96.0

Capital Expenditures -175.0 -209.3 -208.7 -192.4 -96.0
Acquisition of Business 0.0 -43.0 -25.1 -1.5 -46.2
Sale of Fixed Assets 12.5 5.9 6.9 6.8 3.0
Investment, Net - - - 0.0 -
Other Investing Cash Flow - - - - 0.0

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Other Investing Cash Flow Items, 12.5 -37.1 -18.2 5.3 -43.2
Total
Cash from Investing Activities -162.5 -246.4 -226.9 -187.0 -139.3

Other Financing Cash Flow 2.5 6.8 8.0 7.4 -

Financing Cash Flow Items 2.5 6.8 8.0 7.4 -
Sale/Issuance of Common 1.9 1.7 5.3 8.3 23.1
Repurchase/Retirement of 0.0 -54.9 0.0 0.0 0.0
Common
Common Stock, Net 1.9 -53.2 5.3 8.3 23.1
Issuance (Retirement) of Stock, 1.9 -53.2 5.3 8.3 23.1
Net
Long Term Debt Issued -85.0 85.0 0.0 0.0 -
Long Term Debt Reduction -20.0 -20.0 -20.0 -20.0 0.0
Long Term Debt, Net -109.0 29.0 5.6 20.0 31.8
Issuance (Retirement) of Debt, -109.0 29.0 5.6 20.0 31.8
Net
Cash from Financing Activities -104.6 -17.4 18.9 35.7 54.9

Net Change in Cash 151.2 -15.9 0.9 -0.1 9.5

Net Cash - Beginning Balance 11.2 27.1 26.2 26.3 16.8

Net Cash - Ending Balance 162.4 11.2 27.1 26.2 26.3
Cash Interest Paid 8.9 13.6 - 13.2 10.2
Cash Taxes Paid 42.5 66.6 - 49.9 19.4

© 1983-2010 Reuters Research Inc. All Rights Reserved.

Published by OneSource Information Services, Inc., April, 2010.

Page 84
 OneSource One-Stop Reports for Oceaneering International

Oceaneering International Annual Income Statement

Houston, Texas, United States, Tel: 713-329-4500, URL: http://www.oceaneering.com/

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

31-Dec-2009 31-Dec-2008 31-Dec-2007 31-Dec-2006 31-Dec-2005

Period Length 12 Months 12 Months 12 Months 12 Months 12 Months
UpdateType/Date Updated Normal Updated Normal Updated Normal Updated Normal Updated Normal
31-Dec-2009 31-Dec-2008 31-Dec-2007 31-Dec-2006 31-Dec-2005
Filed Currency USD USD USD USD USD
Exchange Rate (Period Average) 1 1 1 1 1
Auditor Ernst & Young Ernst & Young Ernst & Young Ernst & Young Ernst & Young
LLP LLP LLP LLP LLP
Auditor Opinion Unqualified Unqualified Unqualified Unqualified Unqualified

Revenues 1,822.1 1,977.4 1,743.1 1,280.2 998.5

Total Revenue 1,822.1 1,977.4 1,743.1 1,280.2 998.5

Cost of Services 1,384.4 1,512.6 1,329.8 984.1 819.3

General/Admin. 145.6 147.2 123.7 101.8 85.2
Total Operating Expense 1,530.0 1,659.9 1,453.5 1,085.9 904.5

Interest Income 0.7 0.9 1.2 0.7 0.5

Interest Expense -7.8 -13.5 -15.3 -12.9 -10.1
Equity Earnings 3.2 1.9 4.0 12.1 10.4
Other Income (Expense) Net 1.5 0.3 -2.0 -3.2 -0.4
Minority Interest - - - -0.1 -0.1
Net Income Before Taxes 289.8 307.2 277.5 190.9 94.5

Provision for Income Taxes 101.4 107.8 97.1 66.4 31.8

Net Income After Taxes 188.4 199.4 180.4 124.5 62.7

Net Income Before Extra. Items 188.4 199.4 180.4 124.5 62.7
Net Income 188.4 199.4 180.4 124.5 62.7

Income Available to Com Excl 188.4 199.4 180.4 124.5 62.7

ExtraOrd

Income Available to Com Incl 188.4 199.4 180.4 124.5 62.7

ExtraOrd

Basic Weighted Average Shares 54.8 54.9 54.8 54.0 52.3

Basic EPS Excluding ExtraOrdinary 3.44 3.63 3.29 2.31 1.20
Items
Basic EPS Including ExtraOrdinary 3.44 3.63 3.29 2.31 1.20
Item
Dilution Adjustment -1.3 -2.1 -1.3 0.0 0.0
Diluted Net Income 187.0 197.3 179.0 124.5 62.7
Diluted Weighted Average Shares 55.0 55.4 55.8 55.0 53.6
Diluted EPS Excluding ExtraOrd Items 3.40 3.56 3.21 2.26 1.17
Diluted EPS Including ExtraOrd Items 3.40 3.56 3.21 2.26 1.17

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 OneSource One-Stop Reports for Oceaneering International

DPS-Common Stock 0.00 0.00 0.00 0.00 0.00

Gross Dividends - Common Stock 0.0 0.0 0.0 0.0 0.0
Normalized Income Before Taxes 289.8 307.2 277.5 190.9 94.5

Inc Tax Ex Impact of Sp Items 101.4 107.8 97.1 66.4 31.8

Normalized Income After Taxes 188.4 199.4 180.4 124.5 62.7

Normalized Inc. Avail to Com. 188.4 199.4 180.4 124.5 62.7

Basic Normalized EPS 3.44 3.63 3.29 2.31 1.20

Diluted Normalized EPS 3.40 3.56 3.21 2.26 1.17
Interest Expense 7.8 13.5 15.3 12.9 10.1
Interest Capitalized -0.1 -0.1 -1.0 -0.1 -0.1
Rental Expense 74.0 79.0 82.0 34.0 38.0
Depreciation 122.9 115.0 93.8 80.5 79.6
Pro Forma Stock Compensation - - - - 3.1
Expense
Net Income after Stock Based Comp. - - - - 59.6
Exp.
Basic EPS after Stock Based Comp. - - - - 1.14
Exp.
Diluted EPS after Stock Based Comp. - - - - 1.11
Exp.
Current- U.S Federal and State Tax 12.8 9.4 41.5 37.4 11.9
Current Foreign Tax 67.0 52.6 45.3 29.0 19.8
Current Tax - Total 79.8 62.0 86.9 66.4 31.8
Domestic -U.S Federal and State 10.7 22.0 7.6 - -
Tax
Deffered Foreign tax 10.9 23.9 2.6 - -
Deferred Tax - Total 21.6 45.9 10.3 - -
Income Tax - Total 101.4 107.8 97.1 66.4 31.8
Supplemental Executive Retirement 3.5 2.6 2.9 3.2 2.0
Plan
Domestic Pension Plan Expense 3.5 2.6 2.9 3.2 2.0
401(k) Plan 13.2 12.9 9.6 7.6 5.8
Employee Savings Plans - Foreign 5.2 5.1 3.8 3.5 2.7
Total Pension Expense 21.9 20.6 16.3 14.3 10.5

Annual Balance Sheet

Financials in: USD (mil)

31-Dec-2009 31-Dec-2008 31-Dec-2007 31-Dec-2006 31-Dec-2005

UpdateType/Date Updated Normal Updated Normal Updated Normal Updated Normal Reclassified
31-Dec-2009 31-Dec-2008 31-Dec-2007 31-Dec-2006 Normal
31-Dec-2006
Filed Currency USD USD USD USD USD
Exchange Rate 1 1 1 1 1
Auditor Ernst & Young Ernst & Young Ernst & Young Ernst & Young Ernst & Young
LLP LLP LLP LLP LLP
Auditor Opinion Unqualified Unqualified Unqualified Unqualified Unqualified

Cash/Equivalents 162.4 11.2 27.1 26.2 26.3

Rcvbl., Gross 435.4 448.2 371.6 307.5 244.2

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 OneSource One-Stop Reports for Oceaneering International

Doubtful Account -0.3 -1.5 -1.0 -0.1 -0.1

Rev. in Excess - - - 7.8 25.5
Inventory- Parts 110.0 104.9 84.5 61.8 39.0
Other Inventory, Primary Raw 122.2 130.7 140.9 78.1 39.9
Materials
Deferred Income Taxes 16.1 14.6 13.6 18.6 9.1
Other Inventory 28.3 39.6 33.9 23.7 10.4
Total Current Assets 874.1 747.7 670.6 523.6 394.2

Marine Serv. Eqp - - 754.2 635.5 493.1

Offshor.Prod.Eqp - - 167.4 152.9 146.8
Facilities - - 172.6 151.8 125.0
Other - - 153.1 99.9 77.5
Property and Equipment, at cost 1,501.2 1,351.8 - - -
Depreciation -734.9 -654.4 -609.2 -516.3 -433.1
Goodwill 130.8 118.7 112.0 86.9 84.6
Investments in Unconsolidated 58.7 63.9 64.7 64.5 61.6
Affiliates
Other Assets 50.2 42.2 46.2 43.2 39.9
Total Assets 1,880.3 1,670.0 1,531.4 1,242.0 989.6

Accounts Payable 86.5 92.5 76.8 70.8 64.3

Accrued Liabs. 227.4 226.5 207.0 163.0 127.3
Deferred Revenues 28.3 17.6 28.8 17.1 14.9
Taxes Payable 46.4 20.8 26.4 28.9 16.2
Total Current Liabilities 388.5 357.3 339.0 279.7 222.7

Long Term Debt 120.0 229.0 200.0 194.0 174.0

Total Long Term Debt 120.0 229.0 200.0 194.0 174.0

Minority Inter. - - - 6.5 7.2

Deferred Taxes 94.2 72.2 26.6 21.4 14.9
Employee Benefit 25.5 16.9 42.9 38.0 29.1
Obligations/Executive
Accrued post-employment benefit 14.2 11.2 - - -
obligati
Other/Dfrd Tax 13.5 15.7 7.7 5.6 5.5
Total Liabilities 656.0 702.4 616.1 545.3 453.5

Common Stock, par value 13.9 13.9 13.8 13.6 13.4

Additional paid-in capital 212.8 224.2 210.4 191.9 172.4
Treasury stock -27.8 -52.4 0.0 - -
Earnings/Deficit 1,039.0 850.7 651.3 472.5 348.0
Comp. Income -13.6 -68.7 39.8 18.7 2.3
Total Equity 1,224.3 967.7 915.3 696.8 536.1

Total Liabilities & Shareholders' 1,880.3 1,670.0 1,531.4 1,242.0 989.6

Equity

S/O-Common Stock 54.9 54.5 55.1 54.4 53.6

Total Common Shares Outstanding 54.9 54.5 55.1 54.4 53.6
T/S-Common Stock 0.5 0.9 0.0 - -
Deferred Revenues- Current 28.3 17.6 28.8 17.1 14.9
Full-Time Employees 7,900 7,900 7,500 6,500 5,500
Number of Common Shareholders 397 497 356 376 386

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 OneSource One-Stop Reports for Oceaneering International

Long Term Debt Due Within 1 Year 20.0 105.0 20.0 20.0 20.0
Long Term Debt Due Within 2 Years 0.0 20.0 20.0 20.0 20.0
Long Term Debt Due Within 3 Years 100.0 0.0 20.0 20.0 94.0
Long Term Debt Due Within 4 Years - 104.0 0.0 20.0 20.0
Long Term Debt Due Within 5 Years - - 140.0 - -
Remaining Maturities - - - 114.0 20.0
Total Long Term Debt, Supplemental 120.0 229.0 200.0 194.0 174.0
Operating Leases Due Within 1 Year 44.0 41.3 31.1 26.6 8.3
Operating Leases Due Within 2 Years 33.3 28.4 37.7 20.4 7.0
Operating Leases Due Within 3 Years 28.6 25.7 25.2 19.5 6.1
Operating Leases Due Within 4 Years 19.7 24.1 23.7 7.3 5.7
Operating Leases Due Within 5 Years 6.8 14.6 22.8 6.4 5.0
Operating Leases- Remaining 41.1 36.0 47.0 43.0 22.6
Maturities
Total Operating Leases 173.6 170.1 187.5 123.3 54.6
Projected Benefit Obligation - Foreign 21.0 17.0 24.0 20.9 -
FV of Plan Assets - Foreign 15.0 12.0 16.0 14.1 -
Funded Status - Foreign -6.0 -5.0 -8.0 -6.8 -
Total Funded Status -6.0 -5.0 -8.0 -6.8 -
Liabiltiy - Foreign - -5.0 -8.0 -6.8 -
Other Comprehensive Inc./Loss - - - 2.3 -2.4 -
Foreign
Accrued Liability - Post-Employment -6.3 -5.6 -4.8 -10.5 -4.6
Net Assets Recognized on Balance -6.3 -10.6 -10.5 -19.7 -4.6
Sheet

Annual Cash Flows

Financials in: USD (mil)

31-Dec-2009 31-Dec-2008 31-Dec-2007 31-Dec-2006 31-Dec-2005

Period Length 12 Months 12 Months 12 Months 12 Months 12 Months
UpdateType/Date Updated Normal Updated Normal Reclassified Updated Normal Updated Normal
31-Dec-2009 31-Dec-2008 Normal 31-Dec-2006 31-Dec-2005
31-Dec-2009
Filed Currency USD USD USD USD USD
Exchange Rate (Period Average) 1 1 1 1 1
Auditor Ernst & Young Ernst & Young Ernst & Young Ernst & Young Ernst & Young
LLP LLP LLP LLP LLP
Auditor Opinion Unqualified Unqualified Unqualified Unqualified Unqualified

Net Income 188.4 199.4 180.4 124.5 62.7

Depreciation 122.9 115.0 93.8 80.5 79.6
Deferred income tax provision 21.6 45.9 10.3 - -
(benefit)
Gain on asset sales -0.3 -5.5 -4.2 0.0 0.0
Noncash compensation 6.4 8.0 5.3 11.3 0.6
Undistributed Earnings 5.2 0.7 0.0 -2.9 -8.4
Accounts Receivable 11.6 -71.9 -55.4 -45.8 -56.9
Prepaid Exp./Other 14.1 -16.0 -95.7 -83.7 -37.5
Currency translation effect on 16.2 -44.2 14.9 - -
working c
Other Assets -9.5 4.5 1.5 -4.4 -0.7
Accounts Payable -6.0 14.6 6.1 6.5 12.6

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 OneSource One-Stop Reports for Oceaneering International

Accrd. Liabilities 14.1 10.3 55.7 37.9 26.0

Income Taxes Payable 25.6 -7.6 -2.5 12.7 11.6
LT Liabilities 8.1 -5.3 -1.2 14.8 4.4
Cash from Operating Activities 418.2 247.9 208.9 151.2 93.9

Business Acq., Net 0.0 -43.0 -25.1 -1.5 -46.2

Capital Expenditures -175.0 -209.3 -208.7 -192.4 -96.0
Decrease (increase) in other - - - 0.0 -
investments
Prop./Equip. Sold 12.5 5.9 6.9 6.8 3.0
Other - - - - 0.0
Cash from Investing Activities -162.5 -246.4 -226.9 -187.0 -139.3

Proceeds from Term Loan -85.0 85.0 0.0 0.0 -

Payments of 6 72 Senior Notes -20.0 -20.0 -20.0 -20.0 0.0
Long Term Debt, Net -4.0 -36.0 25.6 40.0 31.8
Pay./Term Loan - - - - 0.0
Purchases of treasury stock 0.0 -54.9 0.0 0.0 -
Excess tax benefits from stock 2.5 6.8 8.0 7.4 -
based com
Issuance of Common 1.9 1.7 5.3 8.3 23.1
Treasury Stock - - - - 0.0
Cash from Financing Activities -104.6 -17.4 18.9 35.7 54.9

Net Change in Cash 151.2 -15.9 0.9 -0.1 9.5

Net Cash - Beginning Balance 11.2 27.1 26.2 26.3 16.8

Net Cash - Ending Balance 162.4 11.2 27.1 26.2 26.3
Cash Interest Paid 8.9 13.6 - 13.2 10.2
Cash Taxes Paid 42.5 66.6 - 49.9 19.4

© 1983-2010 Reuters Research Inc. All Rights Reserved.

Published by OneSource Information Services, Inc., April, 2010.

Page 89
 OneSource One-Stop Reports for Oceaneering International

Oceaneering International Financial Health

Houston, Texas, United States, Tel: 713-329-4500, URL: http://www.oceaneering.com/

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Key Indicators USD (mil)

Quarter Quarter Annual
Ending Ending Year End 1 Year 3 Year 5 Year
31-Dec-2009 Yr Ago 31-Dec-2009 Growth Growth Growth
Total Revenue (?) 452.3 -13.97% 1,822.1 -7.86% 12.49% 18.49%
Operating Income (?) 72.1 -11.63% 292.1 -8.01% 14.55% 35.54%
Income Available to
Common Excl Extraord
Items (?) 46.1 -9.71% 188.4 -5.53% 14.80% 36.12%
Basic EPS Excl Extraord
Items (?) 0.84 -9.68% 3.44 -5.22% 14.25% 33.66%
Capital Expenditures (?) 175.0 -16.38% 175.0 -16.38% -3.10% 15.82%
Cash from Operating
Activities (?) 418.2 68.70% 418.2 68.70% 40.36% 33.20%
Free Cash Flow (?) 243.2 529.87% 243.2 529.87% - 72.90%
Total Assets (?) 1,880.3 12.59% 1,880.3 12.59% 14.82% 18.06%
Total Liabilities (?) 656.0 -6.61% 656.0 -6.61% 6.36% 12.43%
Total Long Term Debt (?) 120.0 -47.60% 120.0 -47.60% -14.80% -3.33%
Employees (?) - - 7900 0.00% 6.72% 9.15%
Total Common Shares
Outstanding (?) 54.9 0.81% 54.9 0.81% 0.29% 1.24%
Market Cap (?) 3,213.8 102.45% 3,213.8 102.45% 14.14% 27.24%

Key Ratios
31-Dec-2009 31-Dec-2008 31-Dec-2007 31-Dec-2006 31-Dec-2005
Profitability
Gross Margin (?) 24.02% 23.51% 23.71% 23.13% 17.95%
Operating Margin (?) 16.03% 16.06% 16.62% 15.18% 9.42%
Pretax Margin (?) 15.90% 15.54% 15.92% 14.91% 9.46%
Net Profit Margin (?) 10.34% 10.08% 10.35% 9.72% 6.28%
Financial Strength
Current Ratio (?) 2.25 2.09 1.98 1.87 1.77
Long Term Debt/Equity (?) 0.10 0.24 0.22 0.28 0.32
Total Debt/Equity (?) 0.10 0.24 0.22 0.28 0.32
Management Effectiveness
Return on Assets (?) 10.61% 12.46% 13.01% 11.16% 6.93%
Return on Equity (?) 17.19% 21.18% 22.38% 20.20% 12.66%
Efficiency
Receivables Turnover (?) 4.13 4.84 5.14 4.64 4.59
Inventory Turnover (?) 5.17 5.66 6.29 7.78 15.10
Asset Turnover (?) 1.03 1.24 1.26 1.15 1.10

Market Valuation USD (mil)

P/E (TTM) (?) 17.82 . Enterprise Value (?) 3,283.5
Price/Sales (TTM) (?) 1.83 . Enterprise Value/Revenue (TTM) (?) 1.80
Price/Book (MRQ) (?) 2.72 . Enterprise Value/EBITDA (TTM) (?) 7.91
Market Cap as of 26-Mar-2010 (?) 3,325.9 .

Page 90
 OneSource One-Stop Reports for Oceaneering International

© 1983-2010 Reuters Research Inc. All Rights Reserved.

Published by OneSource Information Services, Inc., April, 2010.

Page 91
 OneSource One-Stop Reports for Oceaneering International

Oceaneering International Ratio Comparisons

Houston, Texas, United States, Tel: 713-329-4500, URL: http://www.oceaneering.com/

Traded: New York Stock Exchange: OII Financials in: USD (actual units)
Industry: Oil Well Services & Equipment As of 26-Mar-2010
Sector: Energy

Company Industry Sector S&P 500

Valuation Ratios
P/E Excluding Extraordinary (TTM) (?) 17.82 23.09 22.35 20.92
P/E High Excluding Extraordinary -
Last 5 Yrs (?) 32.02 44.47 28.02 32.62
P/E Low Excluding Extraordinary - Last
5 Yrs (?) 7.48 7.20 6.79 10.26
Beta (?) 1.51 1.24 0.94 1.00
Price/Revenue (TTM) (?) 1.83 2.91 2.44 2.51
Price/Book (MRQ) (?) 2.72 2.70 2.49 3.49
Price to Tangible Book (MRQ) (?) 3.04 3.32 2.72 6.27
Price to Cash Flow Per Share (TTM) (?) 10.68 14.57 10.27 14.76
Price to Free Cash Flow Per Share
(TTM) (?) 13.67 29.44 37.65 21.30
% Owned Institutions (?) 91.88% 66.42% 47.17% 68.19%

Dividends
Dividend Yield (?) - 2.08% 2.38% 2.28%
Dividend Per Share - 5 Yr Avg (?) 0.00 1.38 1.68 2.06
Dividend 5 Yr Growth (?) - 10.60% 12.82% 5.10%
Payout Ratio (TTM) (?) 0.00% 19.91% 32.27% 30.65%

Growth Rates (%)

Revenue (MRQ) vs Qtr 1 Yr Ago (?) -13.97% -15.95% 1.69% 6.99%
Revenue (TTM) vs TTM 1 Yr Ago (?) -7.86% -20.39% -33.80% -4.10%
Revenue 5 Yr Growth (?) 18.49% 16.85% 10.65% 9.88%
EPS (MRQ) vs Qtr 1 Yr Ago (?) -10.05% -29.52% -14.27% 22.49%
EPS (TTM) vs TTM 1 Yr Ago (?) -4.51% -31.49% -49.01% 5.56%
EPS 5 Yr Growth (?) 34.08% 27.74% 8.52% 11.58%
Capital Spending 5 Yr Growth (?) 15.82% 27.94% 19.71% 6.61%

Financial Strength
Quick Ratio (MRQ) (?) 1.65 1.60 1.08 1.39
Current Ratio (MRQ) (?) 2.25 2.38 1.52 1.94
LT Debt/Equity (MRQ) (?) 0.10 0.36 0.35 0.62
Total Debt/Equity (MRQ) (?) 0.10 0.40 0.38 0.70
Interest Coverage (TTM) (?) 75.97 15.61 9.58 12.73

Profitability Ratios (%)

Gross Margin (TTM) (?) 24.02% 25.67% 39.83% 45.22%
Gross Margin - 5 Yr Avg (?) 22.90% 28.64% 41.30% 45.08%
EBITD Margin (TTM) (?) 22.78% 25.95% 22.75% 23.25%
EBITD Margin - 5 Yr Avg (?) 21.47% 28.69% 29.19% 22.90%
Operating Margin (TTM) (?) 16.03% 17.50% 10.07% 17.40%
Operating Margin - 5 Yr Avg (?) 15.19% 21.68% 20.36% 18.52%
Pretax Margin (TTM) (?) 15.90% 12.88% 10.65% 15.30%
Pretax Margin - 5 Yr Avg (?) 14.83% 20.76% 19.38% 17.52%

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 OneSource One-Stop Reports for Oceaneering International

Net Profit Margin (TTM) (?) 10.34% 12.60% 4.60% 11.72%

Net Profit Margin - 5 Yr Avg (?) 9.66% 15.67% 11.99% 12.27%
Effective Tax Rate (TTM) (?) 35.00% 23.09% 37.32% 28.97%
Effective Tax rate - 5 Yr Avg (?) 34.88% 24.74% 37.05% 30.06%

Management Effectiveness (%)

Return on Assets (TTM) (?) 10.61% 7.59% 3.60% 7.32%
Return on Assets - 5 Yr Avg (?) 11.13% 12.21% 10.77% 8.36%
Return on Investment (TTM) (?) 13.43% 9.61% 4.71% 10.30%
Return on Investment - 5 Yr Avg (?) 14.28% 16.18% 13.56% 12.11%
Return on Equity (TTM) (?) 17.19% 13.38% 6.72% 18.11%
Return on Equity - 5 Yr Avg (?) 19.10% 23.70% 21.80% 20.35%

Efficiency
Revenue/Employee (TTM) (?) 230,643.20 595,130.38 2,076,659.51 756,260.83
Net Income/Employee (TTM) (?) 23,842.15 75,360.57 166,410.27 91,916.86
Receivables Turnover (TTM) (?) 4.13 6.51 8.53 10.78
Inventory Turnover (TTM) (?) 5.92 11.05 12.64 13.67
Asset Turnover (TTM) (?) 1.03 0.69 0.74 0.90

© 1983-2010 Reuters Research Inc. All Rights Reserved.

Published by OneSource Information Services, Inc., April, 2010.

Page 93
 OneSource One-Stop Reports for Oceaneering International

Oceaneering International Annual Income Statement

Houston, Texas, United States, Tel: 713-329-4500, URL: http://www.oceaneering.com/ Standardized

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Financial Glossary
31-Dec-2009 31-Dec-2008 31-Dec-2007 31-Dec-2006 31-Dec-2005
Period Length 12 Months 12 Months 12 Months 12 Months 12 Months
UpdateType/Date Updated Normal Updated Normal Updated Normal Updated Normal Updated Normal
31-Dec-2009 31-Dec-2008 31-Dec-2007 31-Dec-2006 31-Dec-2005
Filed Currency USD USD USD USD USD
Exchange Rate (Period Average) 1 1 1 1 1
Auditor Ernst & Young Ernst & Young Ernst & Young Ernst & Young Ernst & Young
LLP LLP LLP LLP LLP
Auditor Opinion Unqualified Unqualified Unqualified Unqualified Unqualified

Net Sales 1,822.1 1,977.4 1,743.1 1,280.2 998.5

Revenue 1,822.1 1,977.4 1,743.1 1,280.2 998.5
Total Revenue 1,822.1 1,977.4 1,743.1 1,280.2 998.5

Cost of Revenue 1,384.4 1,512.6 1,329.8 984.1 819.3

Cost of Revenue, Total 1,384.4 1,512.6 1,329.8 984.1 819.3
Gross Profit 437.7 464.8 413.3 296.1 179.3

Selling/General/Administrative 145.6 147.2 123.7 101.8 85.2

Expense
Total 145.6 147.2 123.7 101.8 85.2
Selling/General/Administrative
Expenses
Total Operating Expense 1,530.0 1,659.9 1,453.5 1,085.9 904.5

Operating Income 292.1 317.6 289.6 194.3 94.1

Interest Expense - Non-Operating -7.8 -13.5 -15.3 -12.9 -10.1

Interest Expense, Net Non- -7.8 -13.5 -15.3 -12.9 -10.1
Operating
Interest Income - Non-Operating 0.7 0.9 1.2 0.7 0.5
Investment Income - Non- 3.2 1.9 4.0 11.9 10.4
Operating
Interest/Investment Income - Non- 3.9 2.8 5.2 12.6 10.9
Operating
Interest Income (Expense) - Net -3.8 -10.7 -10.1 -0.3 0.8
Non-Operating Total
Other Non-Operating Income 1.5 0.3 -2.0 -3.2 -0.4
(Expense)
Other, Net 1.5 0.3 -2.0 -3.2 -0.4
Income Before Tax 289.8 307.2 277.5 190.9 94.5

Total Income Tax 101.4 107.8 97.1 66.4 31.8

Income After Tax 188.4 199.4 180.4 124.5 62.7

Net Income Before Extraord Items 188.4 199.4 180.4 124.5 62.7
Net Income 188.4 199.4 180.4 124.5 62.7

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 OneSource One-Stop Reports for Oceaneering International

Income Available to Common Excl 188.4 199.4 180.4 124.5 62.7

Extraord Items

Income Available to Common Incl 188.4 199.4 180.4 124.5 62.7

Extraord Items

Basic/Primary Weighted Average 54.8 54.9 54.8 54.0 52.3

Shares
Basic EPS Excl Extraord Items 3.44 3.63 3.29 2.31 1.20
Basic/Primary EPS Incl Extraord Items 3.44 3.63 3.29 2.31 1.20
Dilution Adjustment -1.3 -2.1 -1.3 0.0 0.0
Diluted Net Income 187.0 197.3 179.0 124.5 62.7
Diluted Weighted Average Shares 55.0 55.4 55.8 55.0 53.6
Diluted EPS Excl Extraord Items 3.40 3.56 3.21 2.26 1.17
Diluted EPS Incl Extraord Items 3.40 3.56 3.21 2.26 1.17
Dividends per Share - Common Stock 0.00 0.00 0.00 0.00 0.00
Primary Issue
Gross Dividends - Common Stock 0.0 0.0 0.0 0.0 0.0
Stock Based Compensation - - - - 3.1
Net Income After Stock Based - - - - 59.6
Compensation
Basic EPS After Stock Based - - - - 1.14
Compensation
Diluted EPS After Stock Based - - - - 1.11
Compensation
Interest Expense, Supplemental 7.8 13.5 15.3 12.9 10.1
Interest Capitalized, Supplemental -0.1 -0.1 -1.0 -0.1 -0.1
Depreciation, Supplemental 122.9 115.0 93.8 80.5 79.6
Normalized Income Before Tax 289.8 307.2 277.5 190.9 94.5

Inc Tax Ex Impact of Sp Items 101.4 107.8 97.1 66.4 31.8

Normalized Income After Tax 188.4 199.4 180.4 124.5 62.7

Normalized Inc. Avail to Com. 188.4 199.4 180.4 124.5 62.7

Basic Normalized EPS 3.44 3.63 3.29 2.31 1.20

Diluted Normalized EPS 3.40 3.56 3.21 2.26 1.17
Rental Expenses 74.0 79.0 82.0 34.0 38.0
Normalized EBIT 292.1 317.6 289.6 194.3 94.1
Normalized EBITDA 415.1 432.6 383.4 274.8 173.7
Current Tax - Domestic 12.8 9.4 41.5 37.4 11.9
Current Tax - Foreign 67.0 52.6 45.3 29.0 19.8
Current Tax - Total 79.8 62.0 86.9 66.4 31.8
Deferred Tax - Domestic 10.7 22.0 7.6 - -
Deferred Tax - Foreign 10.9 23.9 2.6 - -
Deferred Tax - Total 21.6 45.9 10.3 - -
Income Tax - Total 101.4 107.8 97.1 66.4 31.8
Other Pension, Net - Domestic 3.5 2.6 2.9 3.2 2.0
Domestic Pension Plan Expense 3.5 2.6 2.9 3.2 2.0
Defined Contribution Expense - 13.2 12.9 9.6 7.6 5.8
Domestic
Defined Contribution Expense - Foreign 5.2 5.1 3.8 3.5 2.7
Total Pension Expense 21.9 20.6 16.3 14.3 10.5
Total Plan Other Expense 3.5 2.6 2.9 3.2 2.0

Page 95
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© 1983-2010 Reuters Research Inc. All Rights Reserved.

Published by OneSource Information Services, Inc., April, 2010.

Page 96
 OneSource One-Stop Reports for Oceaneering International

Oceaneering International Interim Income Statement

Houston, Texas, United States, Tel: 713-329-4500, URL: http://www.oceaneering.com/ Standardized

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Financial Glossary
31-Dec-2009 30-Sep-2009 30-Jun-2009 31-Mar-2009 31-Dec-2008
Period Length 3 Months 3 Months 3 Months 3 Months 3 Months
UpdateType/Date Updated Normal Updated Normal Updated Normal Updated Normal Updated Normal
31-Dec-2009 30-Sep-2009 30-Jun-2009 31-Mar-2009 31-Dec-2008
Filed Currency USD USD USD USD USD
Exchange Rate (Period Average) 1 1 1 1 1

Net Sales 452.3 484.0 450.7 435.1 525.7

Revenue 452.3 484.0 450.7 435.1 525.7
Total Revenue 452.3 484.0 450.7 435.1 525.7

Cost of Revenue 344.5 370.0 340.5 329.3 405.4

Cost of Revenue, Total 344.5 370.0 340.5 329.3 405.4
Gross Profit 107.7 114.0 110.1 105.8 120.2

Selling/General/Administrative 35.6 37.7 35.8 36.4 38.6

Expense
Total 35.6 37.7 35.8 36.4 38.6
Selling/General/Administrative
Expenses
Total Operating Expense 380.1 407.7 376.4 365.7 444.1

Operating Income 72.1 76.3 74.3 69.4 81.6

Interest Expense - Non-Operating -1.5 -1.7 -2.2 -2.4 -3.6

Interest Expense, Net Non- -1.5 -1.7 -2.2 -2.4 -3.6
Operating
Interest Income - Non-Operating 0.2 0.3 0.1 0.1 0.4
Investment Income - Non- 0.8 0.8 0.8 0.9 0.0
Operating
Interest/Investment Income - Non- 1.0 1.1 0.9 1.0 0.4
Operating
Interest Income (Expense) - Net -0.5 -0.7 -1.4 -1.4 -3.2
Non-Operating Total
Other Non-Operating Income -0.8 1.0 1.1 0.2 0.6
(Expense)
Other, Net -0.8 1.0 1.1 0.2 0.6
Income Before Tax 70.9 76.7 74.0 68.2 79.0

Total Income Tax 24.8 26.8 25.9 23.9 28.0

Income After Tax 46.1 49.8 48.1 44.3 51.0

Net Income Before Extraord Items 46.1 49.8 48.1 44.3 51.0
Net Income 46.1 49.8 48.1 44.3 51.0

Income Available to Common Excl 46.1 49.8 48.1 44.3 51.0

Extraord Items

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 OneSource One-Stop Reports for Oceaneering International

Income Available to Common Incl 46.1 49.8 48.1 44.3 51.0

Extraord Items

Basic/Primary Weighted Average 54.7 55.1 54.7 54.6 54.7

Shares
Basic EPS Excl Extraord Items 0.84 0.91 0.88 0.81 0.93
Basic/Primary EPS Incl Extraord Items 0.84 0.91 0.88 0.81 0.93
Dilution Adjustment -0.3 -0.3 -0.3 -0.3 -0.5
Diluted Net Income 45.7 49.5 47.8 44.0 50.5
Diluted Weighted Average Shares 55.1 55.1 55.0 54.9 54.7
Diluted EPS Excl Extraord Items 0.83 0.90 0.87 0.80 0.92
Diluted EPS Incl Extraord Items 0.83 0.90 0.87 0.80 0.92
Dividends per Share - Common Stock 0.00 0.00 0.00 0.00 0.00
Primary Issue
Gross Dividends - Common Stock 0.0 0.0 0.0 0.0 0.0
Interest Expense, Supplemental 1.5 1.7 2.2 2.4 3.6
Depreciation, Supplemental 33.4 31.8 29.7 28.0 33.0
Normalized Income Before Tax 70.9 76.7 74.0 68.2 79.0

Inc Tax Ex Impact of Sp Items 24.8 26.8 25.9 23.9 28.0

Normalized Income After Tax 46.1 49.8 48.1 44.3 51.0

Normalized Inc. Avail to Com. 46.1 49.8 48.1 44.3 51.0

Basic Normalized EPS 0.84 0.91 0.88 0.81 0.93

Diluted Normalized EPS 0.83 0.90 0.87 0.80 0.92
Reported Gross Profit -330.0 114.0 110.1 105.8 120.2
Reported Operating Profit -220.0 76.3 74.3 69.4 81.6
Normalized EBIT 72.1 76.3 74.3 69.4 81.6
Normalized EBITDA 105.6 108.1 104.0 97.4 114.6

© 1983-2010 Reuters Research Inc. All Rights Reserved.

Published by OneSource Information Services, Inc., April, 2010.

Page 98
 OneSource One-Stop Reports for Oceaneering International

Oceaneering International Annual Balance Sheet

Houston, Texas, United States, Tel: 713-329-4500, URL: http://www.oceaneering.com/ Standardized

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Financial Glossary
31-Dec-2009 31-Dec-2008 31-Dec-2007 31-Dec-2006 31-Dec-2005
UpdateType/Date Updated Normal Updated Normal Updated Normal Updated Normal Reclassified
31-Dec-2009 31-Dec-2008 31-Dec-2007 31-Dec-2006 Normal
31-Dec-2006
Filed Currency USD USD USD USD USD
Exchange Rate 1 1 1 1 1
Auditor Ernst & Young Ernst & Young Ernst & Young Ernst & Young Ernst & Young
LLP LLP LLP LLP LLP
Auditor Opinion Unqualified Unqualified Unqualified Unqualified Unqualified

Cash & Equivalents 162.4 11.2 27.1 26.2 26.3

Cash and Short Term Investments 162.4 11.2 27.1 26.2 26.3
Accounts Receivable - Trade, 435.4 448.2 371.6 307.5 244.2
Gross
Provision for Doubtful Accounts -0.3 -1.5 -1.0 -0.1 -0.1
Trade Accounts Receivable - Net 435.2 446.7 370.6 307.4 244.0
Total Receivables, Net 435.2 446.7 370.6 307.4 244.0
Inventories - Raw Materials 232.2 235.6 225.4 139.9 78.9
Inventories - Other 28.3 39.6 33.9 23.7 10.4
Total Inventory 260.5 275.2 259.3 163.5 89.3
Deferred Income Tax - Current 16.1 14.6 13.6 18.6 9.1
Asset
Other Current Assets - - - 7.8 25.5
Other Current Assets, Total 16.1 14.6 13.6 26.5 34.5
Total Current Assets 874.1 747.7 670.6 523.6 394.2

Buildings - - 172.6 151.8 125.0

Machinery/Equipment - - 921.6 788.3 639.8
Other Property/Plant/Equipment - - 153.1 99.9 77.5
Property/Plant/Equipment - Gross 1,501.2 1,351.8 1,247.3 1,040.0 842.3
Accumulated Depreciation -734.9 -654.4 -609.2 -516.3 -433.1
Property/Plant/Equipment - Net 766.4 697.4 638.1 523.7 409.2
Goodwill, Net 130.8 118.7 112.0 86.9 84.6
LT Investment - Affiliate Companies 58.7 63.9 64.7 64.5 61.6
Long Term Investments 58.7 63.9 64.7 64.5 61.6
Other Long Term Assets 50.2 42.2 46.2 43.2 39.9
Other Long Term Assets, Total 50.2 42.2 46.2 43.2 39.9
Total Assets 1,880.3 1,670.0 1,531.4 1,242.0 989.6

Accounts Payable 86.5 92.5 76.8 70.8 64.3

Accrued Expenses 227.4 226.5 207.0 163.0 127.3
Notes Payable/Short Term Debt 0.0 0.0 0.0 0.0 0.0
Customer Advances 28.3 17.6 28.8 17.1 14.9
Income Taxes Payable 46.4 20.8 26.4 28.9 16.2
Other Current liabilities, Total 74.7 38.3 55.2 46.0 31.1
Total Current Liabilities 388.5 357.3 339.0 279.7 222.7

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 OneSource One-Stop Reports for Oceaneering International

Long Term Debt 120.0 229.0 200.0 194.0 174.0

Total Long Term Debt 120.0 229.0 200.0 194.0 174.0
Total Debt 120.0 229.0 200.0 194.0 174.0

Deferred Income Tax - LT Liability 94.2 72.2 26.6 21.4 14.9

Deferred Income Tax 94.2 72.2 26.6 21.4 14.9
Minority Interest - - - 6.5 7.2
Pension Benefits - Underfunded 39.7 28.1 42.9 38.0 29.1
Other Long Term Liabilities 13.5 15.7 7.7 5.6 5.5
Other Liabilities, Total 53.2 43.8 50.6 43.6 34.6
Total Liabilities 656.0 702.4 616.1 545.3 453.5

Common Stock 13.9 13.9 13.8 13.6 13.4

Common Stock 13.9 13.9 13.8 13.6 13.4
Additional Paid-In Capital 212.8 224.2 210.4 191.9 172.4
Retained Earnings (Accumulated 1,039.0 850.7 651.3 472.5 348.0
Deficit)
Treasury Stock - Common -27.8 -52.4 0.0 - -
Other Comprehensive Income -13.6 -68.7 39.8 18.7 2.3
Other Equity, Total -13.6 -68.7 39.8 18.7 2.3
Total Equity 1,224.3 967.7 915.3 696.8 536.1

Total Liabilities & Shareholders’ 1,880.3 1,670.0 1,531.4 1,242.0 989.6

Equity

Shares Outstanding - Common 54.9 54.5 55.1 54.4 53.6

Stock Primary Issue
Total Common Shares Outstanding 54.9 54.5 55.1 54.4 53.6
Treasury Shares - Common Stock 0.5 0.9 0.0 - -
Primary Issue
Employees 7,900 7,900 7,500 6,500 5,500
Number of Common Shareholders 397 497 356 376 386
Deferred Revenue - Current 28.3 17.6 28.8 17.1 14.9
Total Long Term Debt, Supplemental 120.0 229.0 200.0 194.0 174.0
Long Term Debt Maturing within 1 Year 20.0 105.0 20.0 20.0 20.0
Long Term Debt Maturing in Year 2 0.0 20.0 20.0 20.0 20.0
Long Term Debt Maturing in Year 3 100.0 0.0 20.0 20.0 94.0
Long Term Debt Maturing in Year 4 - 104.0 0.0 20.0 20.0
Long Term Debt Maturing in Year 5 - - 140.0 - -
Long Term Debt Maturing in 2-3 Years 100.0 20.0 40.0 40.0 114.0
Long Term Debt Maturing in 4-5 Years - 104.0 140.0 20.0 20.0
Long Term Debt Matur. in Year 6 & 0.0 0.0 0.0 114.0 20.0
Beyond
Total Operating Leases, Supplemental 173.6 170.1 187.5 123.3 54.6
Operating Lease Payments Due in Year 44.0 41.3 31.1 26.6 8.3
1
Operating Lease Payments Due in Year 33.3 28.4 37.7 20.4 7.0
2
Operating Lease Payments Due in Year 28.6 25.7 25.2 19.5 6.1
3
Operating Lease Payments Due in Year 19.7 24.1 23.7 7.3 5.7
4
Operating Lease Payments Due in Year 6.8 14.6 22.8 6.4 5.0
5
Operating Lease Pymts. Due in 2-3 61.9 54.1 62.9 39.9 13.1

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 OneSource One-Stop Reports for Oceaneering International

Years
Operating Lease Pymts. Due in 4-5 26.5 38.7 46.5 13.8 10.6
Years
Oper. Lse. Pymts. Due in Year 6 & 41.1 36.0 47.0 43.0 22.6
Beyond
Pension Obligation - Foreign 21.0 17.0 24.0 20.9 -
Plan Assets - Foreign 15.0 12.0 16.0 14.1 -
Funded Status - Foreign -6.0 -5.0 -8.0 -6.8 -
Total Funded Status -6.0 -5.0 -8.0 -6.8 -
Accrued Liabilities - Domestic -6.3 -5.6 -4.8 -10.5 -4.6
Accrued Liabilities - Foreign - -5.0 -8.0 -6.8 -
Other Assets, Net - Foreign - - 2.3 -2.4 -
Net Assets Recognized on Balance -6.3 -10.6 -10.5 -19.7 -4.6
Sheet
Total Plan Obligations 21.0 17.0 24.0 20.9 -
Total Plan Assets 15.0 12.0 16.0 14.1 -

© 1983-2010 Reuters Research Inc. All Rights Reserved.

Published by OneSource Information Services, Inc., April, 2010.

Page 101
 OneSource One-Stop Reports for Oceaneering International

Oceaneering International Interim Balance Sheet

Houston, Texas, United States, Tel: 713-329-4500, URL: http://www.oceaneering.com/ Standardized

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Financial Glossary
31-Dec-2009 30-Sep-2009 30-Jun-2009 31-Mar-2009 31-Dec-2008
UpdateType/Date Updated Normal Updated Normal Updated Normal Updated Normal Updated Normal
31-Dec-2009 30-Sep-2009 30-Jun-2009 31-Mar-2009 31-Dec-2008
Filed Currency USD USD USD USD USD
Exchange Rate 1 1 1 1 1

Cash & Equivalents 162.4 81.4 49.4 24.8 11.2

Cash and Short Term Investments 162.4 81.4 49.4 24.8 11.2
Accounts Receivable - Trade, 435.4 427.3 407.2 401.8 448.2
Gross
Provision for Doubtful Accounts -0.3 -1.2 -1.1 -1.5 -1.5
Trade Accounts Receivable - Net 435.2 426.1 406.1 400.4 446.7
Total Receivables, Net 435.2 426.1 406.1 400.4 446.7
Inventories - Raw Materials 232.2 229.0 261.3 248.4 235.6
Total Inventory 232.2 229.0 261.3 248.4 235.6
Deferred Income Tax - Current - - - - 14.6
Asset
Other Current Assets 44.4 47.1 45.2 49.1 39.6
Other Current Assets, Total 44.4 47.1 45.2 49.1 54.2
Total Current Assets 874.1 783.7 762.0 722.6 747.7

Property/Plant/Equipment - Gross 1,501.2 1,529.0 1,460.4 1,397.1 1,351.8

Accumulated Depreciation -734.9 -759.4 -724.1 -681.1 -654.4
Property/Plant/Equipment - Net 766.4 769.7 736.4 716.0 697.4
Goodwill, Net 130.8 130.4 125.1 120.9 118.7
LT Investment - Affiliate Companies 58.7 59.5 60.7 62.0 63.9
Long Term Investments 58.7 59.5 60.7 62.0 63.9
Other Long Term Assets 50.2 47.5 43.1 40.2 42.2
Other Long Term Assets, Total 50.2 47.5 43.1 40.2 42.2
Total Assets 1,880.3 1,790.6 1,727.2 1,661.6 1,670.0

Accounts Payable 86.5 79.1 76.3 84.8 92.5

Accrued Expenses 255.7 239.1 238.8 206.1 244.0
Notes Payable/Short Term Debt 0.0 0.0 0.0 0.0 0.0
Income Taxes Payable 46.4 40.9 32.4 24.6 20.8
Other Current liabilities, Total 46.4 40.9 32.4 24.6 20.8
Total Current Liabilities 388.5 359.0 347.4 315.5 357.3

Long Term Debt 120.0 120.0 140.0 200.0 229.0

Total Long Term Debt 120.0 120.0 140.0 200.0 229.0
Total Debt 120.0 120.0 140.0 200.0 229.0

Other Long Term Liabilities 147.4 137.7 137.8 123.7 116.0

Other Liabilities, Total 147.4 137.7 137.8 123.7 116.0
Total Liabilities 656.0 616.7 625.2 639.2 702.4

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 OneSource One-Stop Reports for Oceaneering International

Common Stock 13.9 13.9 13.9 13.9 13.9

Common Stock 13.9 13.9 13.9 13.9 13.9
Additional Paid-In Capital 212.8 212.4 218.1 216.3 224.2
Retained Earnings (Accumulated 1,039.0 993.0 943.1 895.0 850.7
Deficit)
Treasury Stock - Common -27.8 -29.9 -39.1 -39.2 -52.4
Translation Adjustment -7.2 -10.4 -29.4 -58.6 -63.5
Other Equity -2.4 -2.6 -2.3 -2.6 -3.1
Minimum Pension Liability -4.0 -2.4 -2.4 -2.4 -2.2
Adjustment
Other Equity, Total -13.6 -15.4 -34.1 -63.6 -68.7
Total Equity 1,224.3 1,173.9 1,102.0 1,022.4 967.7

Total Liabilities & Shareholders’ 1,880.3 1,790.6 1,727.2 1,661.6 1,670.0

Equity

Shares Outstanding - Common 54.9 54.9 54.7 54.7 54.5

Stock Primary Issue
Total Common Shares Outstanding 54.9 54.9 54.7 54.7 54.5
Treasury Shares - Common Stock 0.5 0.5 0.7 0.7 0.9
Primary Issue
Total Long Term Debt, Supplemental 120.0 120.0 140.0 200.0 229.0
Long Term Debt Maturing within 1 Year 20.0 0.0 20.0 80.0 105.0
Long Term Debt Maturing in Year 2 0.0 20.0 20.0 20.0 20.0
Long Term Debt Maturing in Year 3 100.0 0.0 0.0 0.0 0.0
Long Term Debt Maturing in Year 4 - 100.0 100.0 100.0 104.0
Long Term Debt Maturing in 2-3 Years 100.0 20.0 20.0 20.0 20.0
Long Term Debt Maturing in 4-5 Years - 100.0 100.0 100.0 104.0
Long Term Debt Matur. in Year 6 & 0.0 0.0 0.0 0.0 0.0
Beyond

© 1983-2010 Reuters Research Inc. All Rights Reserved.

Published by OneSource Information Services, Inc., April, 2010.

Page 103
 OneSource One-Stop Reports for Oceaneering International

Oceaneering International Annual Cash Flows

Houston, Texas, United States, Tel: 713-329-4500, URL: http://www.oceaneering.com/ Standardized

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Financial Glossary
31-Dec-2009 31-Dec-2008 31-Dec-2007 31-Dec-2006 31-Dec-2005
Period Length 12 Months 12 Months 12 Months 12 Months 12 Months
UpdateType/Date Updated Normal Updated Normal Reclassified Updated Normal Updated Normal
31-Dec-2009 31-Dec-2008 Normal 31-Dec-2006 31-Dec-2005
31-Dec-2009
Filed Currency USD USD USD USD USD
Exchange Rate (Period Average) 1 1 1 1 1
Auditor Ernst & Young Ernst & Young Ernst & Young Ernst & Young Ernst & Young
LLP LLP LLP LLP LLP
Auditor Opinion Unqualified Unqualified Unqualified Unqualified Unqualified

Net Income/Starting Line 188.4 199.4 180.4 124.5 62.7

Depreciation 122.9 115.0 93.8 80.5 79.6
Depreciation/Depletion 122.9 115.0 93.8 80.5 79.6
Deferred Taxes 21.6 45.9 10.3 - -
Unusual Items -0.3 -5.5 -4.2 0.0 0.0
Equity in Net Earnings (Loss) 5.2 0.7 0.0 -2.9 -8.4
Other Non-Cash Items 6.4 8.0 5.3 11.3 0.6
Non-Cash Items 11.3 3.2 1.1 8.4 -7.8
Accounts Receivable 11.6 -71.9 -55.4 -45.8 -56.9
Prepaid Expenses 14.1 -16.0 -95.7 -83.7 -37.5
Other Assets -9.5 4.5 1.5 -4.4 -0.7
Accounts Payable -6.0 14.6 6.1 6.5 12.6
Accrued Expenses 14.1 10.3 55.7 37.9 26.0
Taxes Payable 25.6 -7.6 -2.5 12.7 11.6
Other Liabilities 8.1 -5.3 -1.2 14.8 4.4
Other Operating Cash Flow 16.2 -44.2 14.9 - -
Changes in Working Capital 74.0 -115.6 -76.6 -62.1 -40.6
Cash from Operating Activities 418.2 247.9 208.9 151.2 93.9

Purchase of Fixed Assets -175.0 -209.3 -208.7 -192.4 -96.0

Capital Expenditures -175.0 -209.3 -208.7 -192.4 -96.0
Acquisition of Business 0.0 -43.0 -25.1 -1.5 -46.2
Sale of Fixed Assets 12.5 5.9 6.9 6.8 3.0
Investment, Net - - - 0.0 -
Other Investing Cash Flow - - - - 0.0
Other Investing Cash Flow Items, 12.5 -37.1 -18.2 5.3 -43.2
Total
Cash from Investing Activities -162.5 -246.4 -226.9 -187.0 -139.3

Other Financing Cash Flow 2.5 6.8 8.0 7.4 -

Financing Cash Flow Items 2.5 6.8 8.0 7.4 -
Sale/Issuance of Common 1.9 1.7 5.3 8.3 23.1
Repurchase/Retirement of 0.0 -54.9 0.0 0.0 0.0
Common
Common Stock, Net 1.9 -53.2 5.3 8.3 23.1

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 OneSource One-Stop Reports for Oceaneering International

Issuance (Retirement) of Stock, 1.9 -53.2 5.3 8.3 23.1

Net
Long Term Debt Issued -85.0 85.0 0.0 0.0 -
Long Term Debt Reduction -20.0 -20.0 -20.0 -20.0 0.0
Long Term Debt, Net -109.0 29.0 5.6 20.0 31.8
Issuance (Retirement) of Debt, -109.0 29.0 5.6 20.0 31.8
Net
Cash from Financing Activities -104.6 -17.4 18.9 35.7 54.9

Net Change in Cash 151.2 -15.9 0.9 -0.1 9.5

Net Cash - Beginning Balance 11.2 27.1 26.2 26.3 16.8

Net Cash - Ending Balance 162.4 11.2 27.1 26.2 26.3
Cash Interest Paid 8.9 13.6 - 13.2 10.2
Cash Taxes Paid 42.5 66.6 - 49.9 19.4

© 1983-2010 Reuters Research Inc. All Rights Reserved.

Published by OneSource Information Services, Inc., April, 2010.

Page 105
 OneSource One-Stop Reports for Oceaneering International

Oceaneering International Interim Cash Flows

Houston, Texas, United States, Tel: 713-329-4500, URL: http://www.oceaneering.com/ Standardized

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Financial Glossary
31-Dec-2009 30-Sep-2009 30-Jun-2009 31-Mar-2009 31-Dec-2008
Period Length 12 Months 9 Months 6 Months 3 Months 12 Months
UpdateType/Date Updated Normal Updated Normal Updated Normal Updated Normal Updated Normal
31-Dec-2009 30-Sep-2009 30-Jun-2009 31-Mar-2009 31-Dec-2008
Filed Currency USD USD USD USD USD
Exchange Rate (Period Average) 1 1 1 1 1

Net Income/Starting Line 188.4 142.3 92.5 44.3 199.4

Depreciation 122.9 89.5 57.7 28.0 115.0
Depreciation/Depletion 122.9 89.5 57.7 28.0 115.0
Deferred Taxes 21.6 16.2 17.8 11.3 45.9
Unusual Items -0.3 2.3 1.1 0.1 -5.5
Equity in Net Earnings (Loss) 5.2 4.4 3.3 2.0 0.7
Other Non-Cash Items 6.4 4.9 3.4 1.6 8.0
Non-Cash Items 11.3 11.6 7.7 3.7 3.2
Accounts Receivable 11.6 20.6 40.6 46.3 -71.9
Prepaid Expenses 14.1 12.0 -15.7 -8.0 -16.0
Other Assets -9.5 -6.1 -1.9 1.4 4.5
Accounts Payable -6.0 - - - 14.6
Accrued Expenses 14.1 - - - 10.3
Taxes Payable 25.6 - - - -7.6
Other Liabilities 8.1 9.5 -6.1 -42.8 -5.3
Other Assets & Liabilities, Net 16.2 16.8 14.9 1.2 -44.2
Changes in Working Capital 74.0 52.8 31.8 -1.8 -115.6
Cash from Operating Activities 418.2 312.5 207.5 85.5 247.9

Purchase of Fixed Assets -175.0 -145.1 -90.1 -45.4 -209.3

Capital Expenditures -175.0 -145.1 -90.1 -45.4 -209.3
Acquisition of Business 0.0 0.0 0.0 0.0 -43.0
Sale of Fixed Assets 12.5 8.4 8.4 1.2 5.9
Other Investing Cash Flow Items, 12.5 8.4 8.4 1.2 -37.1
Total
Cash from Investing Activities -162.5 -136.6 -81.7 -44.2 -246.4

Other Financing Cash Flow 2.5 2.2 0.5 0.4 6.8

Financing Cash Flow Items 2.5 2.2 0.5 0.4 6.8
Sale/Issuance of Common 1.9 1.2 0.9 0.9 1.7
Repurchase/Retirement of 0.0 0.0 - - -54.9
Common
Common Stock, Net 1.9 1.2 0.9 0.9 -53.2
Issuance (Retirement) of Stock, 1.9 1.2 0.9 0.9 -53.2
Net
Long Term Debt Issued -85.0 - - - 85.0
Long Term Debt Reduction -20.0 -105.0 -85.0 -25.0 -20.0
Long Term Debt, Net -109.0 -109.0 -89.0 -29.0 29.0
Issuance (Retirement) of Debt, -109.0 -109.0 -89.0 -29.0 29.0

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 OneSource One-Stop Reports for Oceaneering International

Net
Cash from Financing Activities -104.6 -105.6 -87.6 -27.7 -17.4

Net Change in Cash 151.2 70.2 38.2 13.6 -15.9

Net Cash - Beginning Balance 11.2 11.2 11.2 11.2 27.1

Net Cash - Ending Balance 162.4 81.4 49.4 24.8 11.2
Cash Interest Paid 8.9 - - - 13.6
Cash Taxes Paid 42.5 - - - 66.6

© 1983-2010 Reuters Research Inc. All Rights Reserved.

Published by OneSource Information Services, Inc., April, 2010.

Page 107
 OneSource One-Stop Reports for Oceaneering International

Oceaneering International Annual Income Statement

Houston, Texas, United States, Tel: 713-329-4500, URL: http://www.oceaneering.com/ As Reported

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

31-Dec-2009 31-Dec-2008 31-Dec-2007 31-Dec-2006 31-Dec-2005

Period Length 12 Months 12 Months 12 Months 12 Months 12 Months
UpdateType/Date Updated Normal Updated Normal Updated Normal Updated Normal Updated Normal
31-Dec-2009 31-Dec-2008 31-Dec-2007 31-Dec-2006 31-Dec-2005
Filed Currency USD USD USD USD USD
Exchange Rate (Period Average) 1 1 1 1 1
Auditor Ernst & Young Ernst & Young Ernst & Young Ernst & Young Ernst & Young
LLP LLP LLP LLP LLP
Auditor Opinion Unqualified Unqualified Unqualified Unqualified Unqualified

Revenues 1,822.1 1,977.4 1,743.1 1,280.2 998.5

Total Revenue 1,822.1 1,977.4 1,743.1 1,280.2 998.5

Cost of Services 1,384.4 1,512.6 1,329.8 984.1 819.3

General/Admin. 145.6 147.2 123.7 101.8 85.2
Total Operating Expense 1,530.0 1,659.9 1,453.5 1,085.9 904.5

Interest Income 0.7 0.9 1.2 0.7 0.5

Interest Expense -7.8 -13.5 -15.3 -12.9 -10.1
Equity Earnings 3.2 1.9 4.0 12.1 10.4
Other Income (Expense) Net 1.5 0.3 -2.0 -3.2 -0.4
Minority Interest - - - -0.1 -0.1
Net Income Before Taxes 289.8 307.2 277.5 190.9 94.5

Provision for Income Taxes 101.4 107.8 97.1 66.4 31.8

Net Income After Taxes 188.4 199.4 180.4 124.5 62.7

Net Income Before Extra. Items 188.4 199.4 180.4 124.5 62.7
Net Income 188.4 199.4 180.4 124.5 62.7

Income Available to Com Excl 188.4 199.4 180.4 124.5 62.7

ExtraOrd

Income Available to Com Incl 188.4 199.4 180.4 124.5 62.7

ExtraOrd

Basic Weighted Average Shares 54.8 54.9 54.8 54.0 52.3

Basic EPS Excluding ExtraOrdinary 3.44 3.63 3.29 2.31 1.20
Items
Basic EPS Including ExtraOrdinary 3.44 3.63 3.29 2.31 1.20
Item
Dilution Adjustment -1.3 -2.1 -1.3 0.0 0.0
Diluted Net Income 187.0 197.3 179.0 124.5 62.7
Diluted Weighted Average Shares 55.0 55.4 55.8 55.0 53.6
Diluted EPS Excluding ExtraOrd Items 3.40 3.56 3.21 2.26 1.17
Diluted EPS Including ExtraOrd Items 3.40 3.56 3.21 2.26 1.17

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 OneSource One-Stop Reports for Oceaneering International

DPS-Common Stock 0.00 0.00 0.00 0.00 0.00

Gross Dividends - Common Stock 0.0 0.0 0.0 0.0 0.0
Normalized Income Before Taxes 289.8 307.2 277.5 190.9 94.5

Inc Tax Ex Impact of Sp Items 101.4 107.8 97.1 66.4 31.8

Normalized Income After Taxes 188.4 199.4 180.4 124.5 62.7

Normalized Inc. Avail to Com. 188.4 199.4 180.4 124.5 62.7

Basic Normalized EPS 3.44 3.63 3.29 2.31 1.20

Diluted Normalized EPS 3.40 3.56 3.21 2.26 1.17
Interest Expense 7.8 13.5 15.3 12.9 10.1
Interest Capitalized -0.1 -0.1 -1.0 -0.1 -0.1
Rental Expense 74.0 79.0 82.0 34.0 38.0
Depreciation 122.9 115.0 93.8 80.5 79.6
Pro Forma Stock Compensation - - - - 3.1
Expense
Net Income after Stock Based Comp. - - - - 59.6
Exp.
Basic EPS after Stock Based Comp. - - - - 1.14
Exp.
Diluted EPS after Stock Based Comp. - - - - 1.11
Exp.
Current- U.S Federal and State Tax 12.8 9.4 41.5 37.4 11.9
Current Foreign Tax 67.0 52.6 45.3 29.0 19.8
Current Tax - Total 79.8 62.0 86.9 66.4 31.8
Domestic -U.S Federal and State 10.7 22.0 7.6 - -
Tax
Deffered Foreign tax 10.9 23.9 2.6 - -
Deferred Tax - Total 21.6 45.9 10.3 - -
Income Tax - Total 101.4 107.8 97.1 66.4 31.8
Supplemental Executive Retirement 3.5 2.6 2.9 3.2 2.0
Plan
Domestic Pension Plan Expense 3.5 2.6 2.9 3.2 2.0
401(k) Plan 13.2 12.9 9.6 7.6 5.8
Employee Savings Plans - Foreign 5.2 5.1 3.8 3.5 2.7
Total Pension Expense 21.9 20.6 16.3 14.3 10.5

© 1983-2010 Reuters Research Inc. All Rights Reserved.

Published by OneSource Information Services, Inc., April, 2010.

Page 109
 OneSource One-Stop Reports for Oceaneering International

Oceaneering International Interim Income Statement

Houston, Texas, United States, Tel: 713-329-4500, URL: http://www.oceaneering.com/ As Reported

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

31-Dec-2009 30-Sep-2009 30-Jun-2009 31-Mar-2009 31-Dec-2008

Period Length 3 Months 3 Months 3 Months 3 Months 3 Months
UpdateType/Date Updated Normal Updated Normal Updated Normal Updated Normal Updated Normal
31-Dec-2009 30-Sep-2009 30-Jun-2009 31-Mar-2009 31-Dec-2008
Filed Currency USD USD USD USD USD
Exchange Rate (Period Average) 1 1 1 1 1

Revenue 452.3 484.0 450.7 435.1 525.7

Total Revenue 452.3 484.0 450.7 435.1 525.7

Cost of Services 344.5 370.0 340.5 329.3 405.4

Selling/General/Adm. 35.6 37.7 35.8 36.4 38.6
Total Operating Expense 380.1 407.7 376.4 365.7 444.1

Interest Income 0.2 0.3 0.1 0.1 0.4

Interest expense, net of amounts -1.5 -1.7 -2.2 -2.4 -3.6
capital
Equity earnings of unconsolidated 0.8 0.8 0.8 0.9 0.0
affili
Other Income (Expense) net -0.8 1.0 1.1 0.2 0.6
Net Income Before Taxes 70.9 76.7 74.0 68.2 79.0

Provision for Income Taxes 24.8 26.8 25.9 23.9 28.0

Net Income After Taxes 46.1 49.8 48.1 44.3 51.0

Net Income Before Extra. Items 46.1 49.8 48.1 44.3 51.0
Net Income 46.1 49.8 48.1 44.3 51.0

Income Available to Com Excl 46.1 49.8 48.1 44.3 51.0

ExtraOrd

Income Available to Com Incl 46.1 49.8 48.1 44.3 51.0

ExtraOrd

Basic Weighted Average Shares 54.7 55.1 54.7 54.6 54.7

Basic EPS Excluding ExtraOrdinary 0.84 0.91 0.88 0.81 0.93
Items
Basic EPS Including ExtraOrdinary 0.84 0.91 0.88 0.81 0.93
Item
Dilution Adjustment -0.3 -0.3 -0.3 -0.3 -0.5
Diluted Net Income 45.7 49.5 47.8 44.0 50.5
Diluted Weighted Average Shares 55.1 55.1 55.0 54.9 54.7
Diluted EPS Excluding ExtraOrd Items 0.83 0.90 0.87 0.80 0.92
Diluted EPS Including ExtraOrd Items 0.83 0.90 0.87 0.80 0.92
DPS-Common Stock 0.00 0.00 0.00 0.00 0.00
Gross Dividends - Common Stock 0.0 0.0 0.0 0.0 0.0
Normalized Income Before Taxes 70.9 76.7 74.0 68.2 79.0

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 OneSource One-Stop Reports for Oceaneering International

Inc Tax Ex Impact of Sp Items 24.8 26.8 25.9 23.9 28.0

Normalized Income After Taxes 46.1 49.8 48.1 44.3 51.0

Normalized Inc. Avail to Com. 46.1 49.8 48.1 44.3 51.0

Basic Normalized EPS 0.84 0.91 0.88 0.81 0.93

Diluted Normalized EPS 0.83 0.90 0.87 0.80 0.92
Interest Expense 1.5 1.7 2.2 2.4 3.6
Depreciation 33.4 31.8 29.7 28.0 33.0
Gross Margin -330.0 114.0 110.1 105.8 120.2
Income from OPerations -220.0 76.3 74.3 69.4 81.6

© 1983-2010 Reuters Research Inc. All Rights Reserved.

Published by OneSource Information Services, Inc., April, 2010.

Page 111
 OneSource One-Stop Reports for Oceaneering International

Oceaneering International Annual Balance Sheet

Houston, Texas, United States, Tel: 713-329-4500, URL: http://www.oceaneering.com/ As Reported

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

31-Dec-2009 31-Dec-2008 31-Dec-2007 31-Dec-2006 31-Dec-2005

UpdateType/Date Updated Normal Updated Normal Updated Normal Updated Normal Reclassified
31-Dec-2009 31-Dec-2008 31-Dec-2007 31-Dec-2006 Normal
31-Dec-2006
Filed Currency USD USD USD USD USD
Exchange Rate 1 1 1 1 1
Auditor Ernst & Young Ernst & Young Ernst & Young Ernst & Young Ernst & Young
LLP LLP LLP LLP LLP
Auditor Opinion Unqualified Unqualified Unqualified Unqualified Unqualified

Cash/Equivalents 162.4 11.2 27.1 26.2 26.3

Rcvbl., Gross 435.4 448.2 371.6 307.5 244.2
Doubtful Account -0.3 -1.5 -1.0 -0.1 -0.1
Rev. in Excess - - - 7.8 25.5
Inventory- Parts 110.0 104.9 84.5 61.8 39.0
Other Inventory, Primary Raw 122.2 130.7 140.9 78.1 39.9
Materials
Deferred Income Taxes 16.1 14.6 13.6 18.6 9.1
Other Inventory 28.3 39.6 33.9 23.7 10.4
Total Current Assets 874.1 747.7 670.6 523.6 394.2

Marine Serv. Eqp - - 754.2 635.5 493.1

Offshor.Prod.Eqp - - 167.4 152.9 146.8
Facilities - - 172.6 151.8 125.0
Other - - 153.1 99.9 77.5
Property and Equipment, at cost 1,501.2 1,351.8 - - -
Depreciation -734.9 -654.4 -609.2 -516.3 -433.1
Goodwill 130.8 118.7 112.0 86.9 84.6
Investments in Unconsolidated 58.7 63.9 64.7 64.5 61.6
Affiliates
Other Assets 50.2 42.2 46.2 43.2 39.9
Total Assets 1,880.3 1,670.0 1,531.4 1,242.0 989.6

Accounts Payable 86.5 92.5 76.8 70.8 64.3

Accrued Liabs. 227.4 226.5 207.0 163.0 127.3
Deferred Revenues 28.3 17.6 28.8 17.1 14.9
Taxes Payable 46.4 20.8 26.4 28.9 16.2
Total Current Liabilities 388.5 357.3 339.0 279.7 222.7

Long Term Debt 120.0 229.0 200.0 194.0 174.0

Total Long Term Debt 120.0 229.0 200.0 194.0 174.0

Minority Inter. - - - 6.5 7.2

Deferred Taxes 94.2 72.2 26.6 21.4 14.9
Employee Benefit 25.5 16.9 42.9 38.0 29.1
Obligations/Executive
Accrued post-employment benefit 14.2 11.2 - - -

Page 112
 OneSource One-Stop Reports for Oceaneering International

obligati
Other/Dfrd Tax 13.5 15.7 7.7 5.6 5.5
Total Liabilities 656.0 702.4 616.1 545.3 453.5

Common Stock, par value 13.9 13.9 13.8 13.6 13.4

Additional paid-in capital 212.8 224.2 210.4 191.9 172.4
Treasury stock -27.8 -52.4 0.0 - -
Earnings/Deficit 1,039.0 850.7 651.3 472.5 348.0
Comp. Income -13.6 -68.7 39.8 18.7 2.3
Total Equity 1,224.3 967.7 915.3 696.8 536.1

Total Liabilities & Shareholders' 1,880.3 1,670.0 1,531.4 1,242.0 989.6

Equity

S/O-Common Stock 54.9 54.5 55.1 54.4 53.6

Total Common Shares Outstanding 54.9 54.5 55.1 54.4 53.6
T/S-Common Stock 0.5 0.9 0.0 - -
Deferred Revenues- Current 28.3 17.6 28.8 17.1 14.9
Full-Time Employees 7,900 7,900 7,500 6,500 5,500
Number of Common Shareholders 397 497 356 376 386
Long Term Debt Due Within 1 Year 20.0 105.0 20.0 20.0 20.0
Long Term Debt Due Within 2 Years 0.0 20.0 20.0 20.0 20.0
Long Term Debt Due Within 3 Years 100.0 0.0 20.0 20.0 94.0
Long Term Debt Due Within 4 Years - 104.0 0.0 20.0 20.0
Long Term Debt Due Within 5 Years - - 140.0 - -
Remaining Maturities - - - 114.0 20.0
Total Long Term Debt, Supplemental 120.0 229.0 200.0 194.0 174.0
Operating Leases Due Within 1 Year 44.0 41.3 31.1 26.6 8.3
Operating Leases Due Within 2 Years 33.3 28.4 37.7 20.4 7.0
Operating Leases Due Within 3 Years 28.6 25.7 25.2 19.5 6.1
Operating Leases Due Within 4 Years 19.7 24.1 23.7 7.3 5.7
Operating Leases Due Within 5 Years 6.8 14.6 22.8 6.4 5.0
Operating Leases- Remaining 41.1 36.0 47.0 43.0 22.6
Maturities
Total Operating Leases 173.6 170.1 187.5 123.3 54.6
Projected Benefit Obligation - Foreign 21.0 17.0 24.0 20.9 -
FV of Plan Assets - Foreign 15.0 12.0 16.0 14.1 -
Funded Status - Foreign -6.0 -5.0 -8.0 -6.8 -
Total Funded Status -6.0 -5.0 -8.0 -6.8 -
Liabiltiy - Foreign - -5.0 -8.0 -6.8 -
Other Comprehensive Inc./Loss - - - 2.3 -2.4 -
Foreign
Accrued Liability - Post-Employment -6.3 -5.6 -4.8 -10.5 -4.6
Net Assets Recognized on Balance -6.3 -10.6 -10.5 -19.7 -4.6
Sheet

© 1983-2010 Reuters Research Inc. All Rights Reserved.

Published by OneSource Information Services, Inc., April, 2010.

Page 113
 OneSource One-Stop Reports for Oceaneering International

Oceaneering International Interim Balance Sheet

Houston, Texas, United States, Tel: 713-329-4500, URL: http://www.oceaneering.com/ As Reported

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

31-Dec-2009 30-Sep-2009 30-Jun-2009 31-Mar-2009 31-Dec-2008

UpdateType/Date Updated Normal Updated Normal Updated Normal Updated Normal Updated Normal
31-Dec-2009 30-Sep-2009 30-Jun-2009 31-Mar-2009 31-Dec-2008
Filed Currency USD USD USD USD USD
Exchange Rate 1 1 1 1 1

Cash and cash equivalents 162.4 81.4 49.4 24.8 11.2

Accounts receivable, net of 435.4 427.3 407.2 401.8 448.2
allowances f
Doubtful Accounts -0.3 -1.2 -1.1 -1.5 -1.5
Inventory Parts 110.0 109.2 120.1 114.6 104.9
Inventory Raw Materials 122.2 119.7 141.2 133.8 130.7
Deferred Income Tax - - - - 14.6
Other current assets 44.4 47.1 45.2 49.1 39.6
Total Current Assets 874.1 783.7 762.0 722.6 747.7

Property and Equipment, at cost 1,501.2 1,529.0 1,460.4 1,397.1 1,351.8

Accumulated depreciation -734.9 -759.4 -724.1 -681.1 -654.4
Goodwill 130.8 130.4 125.1 120.9 118.7
Investments in Unconsolidated 58.7 59.5 60.7 62.0 63.9
Affiliates
Other 50.2 47.5 43.1 40.2 42.2
Total Assets 1,880.3 1,790.6 1,727.2 1,661.6 1,670.0

Accounts Payable 86.5 79.1 76.3 84.8 92.5

Accrued Liabilities 255.7 239.1 238.8 206.1 244.0
Taxes Payable 46.4 40.9 32.4 24.6 20.8
Total Current Liabilities 388.5 359.0 347.4 315.5 357.3

Long Term Debt 120.0 120.0 140.0 200.0 229.0

Total Long Term Debt 120.0 120.0 140.0 200.0 229.0

Other 147.4 137.7 137.8 123.7 116.0

Total Liabilities 656.0 616.7 625.2 639.2 702.4

Common Stock, par value $0.25 per 13.9 13.9 13.9 13.9 13.9
share;
Treasury stock; 499,292 and -27.8 -29.9 -39.1 -39.2 -52.4
941,600 shar
Additional paid-in capital 212.8 212.4 218.1 216.3 224.2
Retained earnings 1,039.0 993.0 943.1 895.0 850.7
Fair value of hedges -2.4 -2.6 -2.3 -2.6 -3.1
Cum. Trans. Adjust. -7.2 -10.4 -29.4 -58.6 -63.5
Pension liability adjustment -4.0 -2.4 -2.4 -2.4 -2.2
Total Equity 1,224.3 1,173.9 1,102.0 1,022.4 967.7

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 OneSource One-Stop Reports for Oceaneering International

Total Liabilities & Shareholders' 1,880.3 1,790.6 1,727.2 1,661.6 1,670.0

Equity

S/O-Common Stock 54.9 54.9 54.7 54.7 54.5

Total Common Shares Outstanding 54.9 54.9 54.7 54.7 54.5
T/S-Common Stock 0.5 0.5 0.7 0.7 0.9
Long Term Debt Maturing Within 1 Year 20.0 0.0 20.0 80.0 105.0
Long Term Debt Maturing Within 2 Year 0.0 20.0 20.0 20.0 20.0
Long Term Debt Maturing Within 3 Year 100.0 0.0 0.0 0.0 0.0
Long Term Debt Maturing Within 4 Year - 100.0 100.0 100.0 104.0
Total Long Term Debt, Supplemental 120.0 120.0 140.0 200.0 229.0

© 1983-2010 Reuters Research Inc. All Rights Reserved.

Published by OneSource Information Services, Inc., April, 2010.

Page 115
 OneSource One-Stop Reports for Oceaneering International

Oceaneering International Annual Cash Flows

Houston, Texas, United States, Tel: 713-329-4500, URL: http://www.oceaneering.com/ As Reported

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

31-Dec-2009 31-Dec-2008 31-Dec-2007 31-Dec-2006 31-Dec-2005

Period Length 12 Months 12 Months 12 Months 12 Months 12 Months
UpdateType/Date Updated Normal Updated Normal Reclassified Updated Normal Updated Normal
31-Dec-2009 31-Dec-2008 Normal 31-Dec-2006 31-Dec-2005
31-Dec-2009
Filed Currency USD USD USD USD USD
Exchange Rate (Period Average) 1 1 1 1 1
Auditor Ernst & Young Ernst & Young Ernst & Young Ernst & Young Ernst & Young
LLP LLP LLP LLP LLP
Auditor Opinion Unqualified Unqualified Unqualified Unqualified Unqualified

Net Income 188.4 199.4 180.4 124.5 62.7

Depreciation 122.9 115.0 93.8 80.5 79.6
Deferred income tax provision 21.6 45.9 10.3 - -
(benefit)
Gain on asset sales -0.3 -5.5 -4.2 0.0 0.0
Noncash compensation 6.4 8.0 5.3 11.3 0.6
Undistributed Earnings 5.2 0.7 0.0 -2.9 -8.4
Accounts Receivable 11.6 -71.9 -55.4 -45.8 -56.9
Prepaid Exp./Other 14.1 -16.0 -95.7 -83.7 -37.5
Currency translation effect on 16.2 -44.2 14.9 - -
working c
Other Assets -9.5 4.5 1.5 -4.4 -0.7
Accounts Payable -6.0 14.6 6.1 6.5 12.6
Accrd. Liabilities 14.1 10.3 55.7 37.9 26.0
Income Taxes Payable 25.6 -7.6 -2.5 12.7 11.6
LT Liabilities 8.1 -5.3 -1.2 14.8 4.4
Cash from Operating Activities 418.2 247.9 208.9 151.2 93.9

Business Acq., Net 0.0 -43.0 -25.1 -1.5 -46.2

Capital Expenditures -175.0 -209.3 -208.7 -192.4 -96.0
Decrease (increase) in other - - - 0.0 -
investments
Prop./Equip. Sold 12.5 5.9 6.9 6.8 3.0
Other - - - - 0.0
Cash from Investing Activities -162.5 -246.4 -226.9 -187.0 -139.3

Proceeds from Term Loan -85.0 85.0 0.0 0.0 -

Payments of 6 72 Senior Notes -20.0 -20.0 -20.0 -20.0 0.0
Long Term Debt, Net -4.0 -36.0 25.6 40.0 31.8
Pay./Term Loan - - - - 0.0
Purchases of treasury stock 0.0 -54.9 0.0 0.0 -
Excess tax benefits from stock 2.5 6.8 8.0 7.4 -
based com
Issuance of Common 1.9 1.7 5.3 8.3 23.1
Treasury Stock - - - - 0.0
Cash from Financing Activities -104.6 -17.4 18.9 35.7 54.9

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 OneSource One-Stop Reports for Oceaneering International

Net Change in Cash 151.2 -15.9 0.9 -0.1 9.5

Net Cash - Beginning Balance 11.2 27.1 26.2 26.3 16.8

Net Cash - Ending Balance 162.4 11.2 27.1 26.2 26.3
Cash Interest Paid 8.9 13.6 - 13.2 10.2
Cash Taxes Paid 42.5 66.6 - 49.9 19.4

© 1983-2010 Reuters Research Inc. All Rights Reserved.

Published by OneSource Information Services, Inc., April, 2010.

Page 117
 OneSource One-Stop Reports for Oceaneering International

Oceaneering International Interim Cash Flows

Houston, Texas, United States, Tel: 713-329-4500, URL: http://www.oceaneering.com/ As Reported

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

31-Dec-2009 30-Sep-2009 30-Jun-2009 31-Mar-2009 31-Dec-2008

Period Length 12 Months 9 Months 6 Months 3 Months 12 Months
UpdateType/Date Updated Normal Updated Normal Updated Normal Updated Normal Updated Normal
31-Dec-2009 30-Sep-2009 30-Jun-2009 31-Mar-2009 31-Dec-2008
Filed Currency USD USD USD USD USD
Exchange Rate (Period Average) 1 1 1 1 1

Net Income 188.4 142.3 92.5 44.3 199.4

Depreciation 122.9 89.5 57.7 28.0 115.0
Deferred income tax provision 21.6 16.2 17.8 11.3 45.9
Gain on asset sales -0.3 - - - -5.5
Gain on Sales of Property and - 2.3 1.1 0.1 -
Equipment
Noncash compensation 6.4 4.9 3.4 1.6 8.0
Affiliate Earnings 5.2 4.4 3.3 2.0 0.7
Accounts Receivable 11.6 20.6 40.6 46.3 -71.9
Prepaids/Other 14.1 12.0 -15.7 -8.0 -16.0
Currency translation effect on 16.2 16.8 14.9 1.2 -44.2
working c
Other Assets -9.5 -6.1 -1.9 1.4 4.5
Accounts payable -6.0 - - - 14.6
Current Liabilities - 4.1 -7.5 -39.5 -
Accrued liabilities 14.1 - - - 10.3
Income taxes payable 25.6 - - - -7.6
Other LT Liabilities 8.1 5.4 1.4 -3.3 -5.3
Cash from Operating Activities 418.2 312.5 207.5 85.5 247.9

Business Acq., Net 0.0 0.0 0.0 0.0 -43.0

Capital Expenditures -175.0 -145.1 -90.1 -45.4 -209.3
Proceeds on sales of property and 12.5 8.4 8.4 1.2 5.9
equipm
Cash from Investing Activities -162.5 -136.6 -81.7 -44.2 -246.4

Payments of 6 72 Senior Notes -20.0 -20.0 - - -20.0

Net proceeds from revolving credit -4.0 -4.0 -4.0 -4.0 -36.0
net
Proceeds from Term Loan -85.0 - - - 85.0
Payments of Term Loan - -85.0 -85.0 -25.0 -
Issu. Common Stock 1.9 1.2 0.9 0.9 1.7
Excess Tax Benefits-Stock Op. 2.5 2.2 0.5 0.4 6.8
Exercises
Purchases of treasury stock 0.0 0.0 - - -54.9
Cash from Financing Activities -104.6 -105.6 -87.6 -27.7 -17.4

Net Change in Cash 151.2 70.2 38.2 13.6 -15.9

Net Cash - Beginning Balance 11.2 11.2 11.2 11.2 27.1

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Net Cash - Ending Balance 162.4 81.4 49.4 24.8 11.2

Cash Interest Paid 8.9 - - - 13.6
Cash Taxes Paid 42.5 - - - 66.6

© 1983-2010 Reuters Research Inc. All Rights Reserved.

Published by OneSource Information Services, Inc., April, 2010.

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Oceaneering International Geographic Segments

Houston, Texas, United States, Tel: 713-329-4500, URL: http://www.oceaneering.com/

Financials in: As Reported (mil)

Annual

External Revenue USD (mil)

31-Dec-09 31-Dec-08 31-Dec-07 31-Dec-06 31-Dec-05
Africa 280.7 15.4 % 284.5 14.4 % 225.9 13 % 151.6 11.8 % 130.8 13.1 %
Norway 230.9 12.7 % 231.6 11.7 % 176.5 10.1 % 105.4 8.2 % 129.3 12.9 %
United Kingdom 156.7 8.6 % 251.7 12.7 % 242.7 13.9 % 156.3 12.2 % 162.1 16.2 %
Other Asian Countries 135.7 7.4 % 129.3 6.5 % 115.8 6.6 % 55.5 4.3 % 66.5 6.7 %
Brazil 97.4 5.3 % 116.9 5.9 % 78.7 4.5 % 46.9 3.7 % 37.8 3.8 %
United States 860.0 47.2 % 914.8 46.3 % 862.4 49.5 % 680.4 53.1 % 410.3 41.1 %
Australia - - - - 25.6 1.5 % 42.1 3.3 % 30.3 3%
Canada - - - - 19.9 1.1 % 24.6 1.9 % 16.1 1.6 %
Indonesia - - - - - - - - 12.4 1.2 %
Other Foreign 60.6 3.3 % 48.5 2.5 % 41.1 2.4 % 17.5 1.4 % 15.4 1.5 %
Segment Total 1,822.1 100 % 1,977.4 100 % 1,743.1 100 % 1,280.2 100 % 998.5 100 %
Consolidated Total 1,822.1 100 % 1,977.4 100 % 1,743.1 100 % 1,280.2 100 % 998.5 100 %

Total Revenue USD (mil)

31-Dec-09 31-Dec-08 31-Dec-07 31-Dec-06 31-Dec-05
Africa 280.7 15.4 % 284.5 14.4 % 225.9 13 % 151.6 11.8 % 130.8 13.1 %
Norway 230.9 12.7 % 231.6 11.7 % 176.5 10.1 % 105.4 8.2 % 129.3 12.9 %
United Kingdom 156.7 8.6 % 251.7 12.7 % 242.7 13.9 % 156.3 12.2 % 162.1 16.2 %
Other Asian Countries 135.7 7.4 % 129.3 6.5 % 115.8 6.6 % 55.5 4.3 % 66.5 6.7 %
Brazil 97.4 5.3 % 116.9 5.9 % 78.7 4.5 % 46.9 3.7 % 37.8 3.8 %
United States 860.0 47.2 % 914.8 46.3 % 862.4 49.5 % 680.4 53.1 % 410.3 41.1 %
Australia - - - - 25.6 1.5 % 42.1 3.3 % 30.3 3%
Canada - - - - 19.9 1.1 % 24.6 1.9 % 16.1 1.6 %
Indonesia - - - - - - - - 12.4 1.2 %
Other Foreign 60.6 3.3 % 48.5 2.5 % 41.1 2.4 % 17.5 1.4 % 15.4 1.5 %
Segment Total 1,822.1 100 % 1,977.4 100 % 1,743.1 100 % 1,280.2 100 % 998.5 100 %
Consolidated Total 1,822.1 100 % 1,977.4 100 % 1,743.1 100 % 1,280.2 100 % 998.5 100 %

Long Lived Assets USD (mil)

31-Dec-09 31-Dec-08 31-Dec-07 31-Dec-06 31-Dec-05
Africa 95.3 9.8 % 88.9 9.8 % 81.6 9.8 % 69.2 10 % 55.1 9.6 %
Norway 170.6 17.5 % 141.1 15.6 % 111.4 13.3 % - - - -
United Kingdom 63.3 6.5 % 58.4 6.5 % 69.5 8.3 % 120.3 17.4 % 75.4 13.2 %
Other Asian Countries 76.6 7.8 % 78.1 8.6 % 77.5 9.3 % 14.3 2.1 % 12.1 2.1 %
Brazil 63.7 6.5 % 32.7 3.6 % 25.4 3% 22.1 3.2 % 21.6 3.8 %
United States 487.5 49.9 % 486.3 53.9 % 462.1 55.3 % 409.0 59.2 % 336.4 58.6 %
Australia - - 32.6 3.6 % 40.1 4.8 % 47.6 6.9 % 55.2 9.6 %
Other Foreign 20.5 2.1 % 17.4 1.9 % 7.6 0.9 % 8.8 1.3 % 17.8 3.1 %
Segment Total 977.5 100 % 902.9 100 % 835.1 100 % 691.4 100 % 573.6 100 %
Consolidated Total 977.5 100 % 902.9 100 % 835.1 100 % 691.4 100 % 573.6 100 %

© 1983-2010 Reuters Research Inc. All Rights Reserved.

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Oceaneering International Business Segments

Houston, Texas, United States, Tel: 713-329-4500, URL: http://www.oceaneering.com/

Financials in: As Reported (mil)

Annual

External Revenue USD (mil)

31-Dec-09 31-Dec-08 31-Dec-07 31-Dec-06 31-Dec-05
Remotely Operated Vehicles 649.2 35.6 % 625.9 31.7 % 531.4 30.5 % 410.3 32 % 315.2 31.6 %
Subsea Products 487.7 26.8 % 649.9 32.9 % 521.9 29.9 % 364.5 28.5 % 239.0 23.9 %
Subsea Projects 241.4 13.2 % 256.5 13 % 257.8 14.8 % 155.0 12.1 % 121.6 12.2 %
Other Services/Inspection 216.1 11.9 % 249.1 12.6 % 219.7 12.6 % 169.0 13.2 % 154.9 15.5 %
Mobile Offshore Production Systems 33.2 1.8 % 39.3 2% 50.1 2.9 % 52.9 4.1 % 50.1 5%
Advanced Technologies 194.4 10.7 % 156.7 7.9 % 162.2 9.3 % 128.4 10 % 117.8 11.8 %
Segment Total 1,822.1 100 % 1,977.4 100 % 1,743.1 100 % 1,280.2 100 % 998.5 100 %
Consolidated Total 1,822.1 100 % 1,977.4 100 % 1,743.1 100 % 1,280.2 100 % 998.5 100 %

Total Revenue USD (mil)

31-Dec-09 31-Dec-08 31-Dec-07 31-Dec-06 31-Dec-05
Remotely Operated Vehicles 649.2 35.6 % 625.9 31.7 % 531.4 30.5 % 410.3 32 % 315.2 31.6 %
Subsea Products 487.7 26.8 % 649.9 32.9 % 521.9 29.9 % 364.5 28.5 % 239.0 23.9 %
Subsea Projects 241.4 13.2 % 256.5 13 % 257.8 14.8 % 155.0 12.1 % 121.6 12.2 %
Other Services/Inspection 216.1 11.9 % 249.1 12.6 % 219.7 12.6 % 169.0 13.2 % 154.9 15.5 %
Mobile Offshore Production Systems 33.2 1.8 % 39.3 2% 50.1 2.9 % 52.9 4.1 % 50.1 5%
Advanced Technologies 194.4 10.7 % 156.7 7.9 % 162.2 9.3 % 128.4 10 % 117.8 11.8 %
Segment Total 1,822.1 100 % 1,977.4 100 % 1,743.1 100 % 1,280.2 100 % 998.5 100 %
Consolidated Total 1,822.1 100 % 1,977.4 100 % 1,743.1 100 % 1,280.2 100 % 998.5 100 %

Gross Profit USD (mil)

31-Dec-09 31-Dec-08 31-Dec-07 31-Dec-06 31-Dec-05
Remotely Operated Vehicles 237.0 54.1 % 221.3 47.6 % 168.3 40.7 % 129.9 43.9 % 84.4 47.1 %
Subsea Products 115.1 26.3 % 146.7 31.6 % 133.3 32.3 % 81.4 27.5 % 37.1 20.7 %
Subsea Projects 74.6 17 % 81.5 17.5 % 100.6 24.3 % 65.1 22 % 31.1 17.4 %
Other Services/Inspection 41.1 9.4 % 48.5 10.4 % 37.2 9% 28.5 9.6 % 21.7 12.1 %
Mobile Offshore Production Systems 10.1 2.3 % 8.4 1.8 % 12.4 3% 17.1 5.8 % 18.3 10.2 %
Advanced Technologies 25.1 5.7 % 21.6 4.6 % 25.6 6.2 % 19.9 6.7 % 20.8 11.6 %
Other -65.3 -14.9 % -63.2 -13.6 % -64.1 -15.5 % -45.8 -15.5 % -34.2 -19.1 %
Segment Total 437.7 100 % 464.8 100 % 413.3 100 % 296.1 100 % 179.3 100 %
Consolidated Total 437.7 100 % 464.8 100 % 413.3 100 % 296.1 100 % 179.3 100 %

Gross Margin (%)

31-Dec-09 31-Dec-08 31-Dec-07 31-Dec-06 31-Dec-05
Remotely Operated Vehicles 36.5 - 35.4 - 31.7 - 31.7 - 26.8 -
Subsea Products 23.6 - 22.6 - 25.5 - 22.3 - 15.5 -
Subsea Projects 30.9 - 31.8 - 39.0 - 42.0 - 25.6 -
Other Services/Inspection 19.0 - 19.5 - 16.9 - 16.9 - 14.0 -
Mobile Offshore Production Systems 30.4 - 21.3 - 24.8 - 32.4 - 36.6 -
Advanced Technologies 12.9 - 13.8 - 15.8 - 15.5 - 17.6 -
Segment Total 24.0 - 23.5 - 23.7 - 23.1 - 18.0 -
Consolidated Total 24.0 - 23.5 - 23.7 - 23.1 - 18.0 -

Depreciation USD (mil)

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31-Dec-09 31-Dec-08 31-Dec-07 31-Dec-06 31-Dec-05

Remotely Operated Vehicles 68.0 55.3 % 55.9 48.6 % 46.3 49.4 % 40.4 50.2 % 39.8 50 %
Subsea Products 24.1 19.6 % 22.0 19.1 % 17.2 18.3 % 12.3 15.3 % 12.0 15.1 %
Subsea Projects 11.1 9% 11.1 9.7 % 9.1 9.7 % 6.6 8.3 % 6.9 8.7 %
Other Services/Inspection 3.8 3.1 % 3.7 3.2 % 3.1 3.3 % 2.4 3% 5.1 6.4 %
Mobile Offshore Production Systems 8.0 6.5 % 16.7 14.5 % 13.5 14.4 % 13.2 16.4 % 11.6 14.6 %
Advanced Technologies 2.5 2.1 % 1.4 1.2 % 1.4 1.5 % 2.2 2.7 % 2.3 2.9 %
Other 5.5 4.4 % 4.1 3.6 % 3.1 3.3 % 3.4 4.2 % 1.8 2.3 %
Segment Total 122.9 100 % 115.0 100 % 93.8 100 % 80.5 100 % 79.6 100 %
Consolidated Total 122.9 100 % 115.0 100 % 93.8 100 % 80.5 100 % 79.6 100 %

Operating Income/Loss USD (mil)

31-Dec-09 31-Dec-08 31-Dec-07 31-Dec-06 31-Dec-05
Remotely Operated Vehicles 207.7 71.1 % 190.3 59.9 % 144.2 49.8 % 111.0 57.1 % 69.0 73.3 %
Subsea Products 60.5 20.7 % 96.0 30.2 % 92.8 32 % 53.6 27.6 % 13.9 14.8 %
Subsea Projects 66.5 22.8 % 72.8 22.9 % 92.8 32.1 % 59.6 30.7 % 26.2 27.9 %
Other Services/Inspection 26.4 9.1 % 31.0 9.8 % 22.7 7.9 % 14.9 7.7 % 7.9 8.4 %
Mobile Offshore Production Systems 8.9 3% 6.7 2.1 % 11.0 3.8 % 16.0 8.2 % 16.8 17.9 %
Advanced Technologies 12.4 4.2 % 9.8 3.1 % 14.5 5% 11.6 6% 12.5 13.3 %
Other -90.3 -30.9 % -89.2 -28.1 % -88.5 -30.6 % -72.4 -37.3 % -52.3 -55.6 %
Segment Total 292.1 100 % 317.6 100 % 289.6 100 % 194.3 100 % 94.1 100 %
Consolidated Total 292.1 100 % 317.6 100 % 289.6 100 % 194.3 100 % 94.1 100 %

Operating Margin (%)

31-Dec-09 31-Dec-08 31-Dec-07 31-Dec-06 31-Dec-05
Remotely Operated Vehicles 32.0 - 30.4 - 27.1 - 27.1 - 21.9 -
Subsea Products 12.4 - 14.8 - 17.8 - 14.7 - 5.8 -
Subsea Projects 27.6 - 28.4 - 36.0 - 38.4 - 21.6 -
Other Services/Inspection 12.2 - 12.5 - 10.4 - 8.8 - 5.1 -
Mobile Offshore Production Systems 26.8 - 17.1 - 22.1 - 30.2 - 33.5 -
Advanced Technologies 6.4 - 6.2 - 8.9 - 9.0 - 10.6 -
Segment Total 16.0 - 16.1 - 16.6 - 15.2 - 9.4 -
Consolidated Total 16.0 - 16.1 - 16.6 - 15.2 - 9.4 -

Total Assets USD (mil)

31-Dec-09 31-Dec-08 31-Dec-07 31-Dec-06 31-Dec-05
Remotely Operated Vehicles 755.6 40.2 % 651.9 39 % 550.0 35.9 % 431.7 34.8 % 315.0 31.8 %
Subsea Products 516.2 27.5 % 578.5 34.6 % 518.8 33.9 % 351.9 28.3 % 271.0 27.4 %
Subsea Projects 144.4 7.7 % 149.1 8.9 % 140.9 9.2 % 102.8 8.3 % 88.3 8.9 %
Other Services/Inspection 76.5 4.1 % 65.0 3.9 % 70.0 4.6 % 71.3 5.7 % 54.5 5.5 %
Mobile Offshore Production Systems 89.5 4.8 % 111.4 6.7 % 129.0 8.4 % 142.0 11.4 % 133.7 13.5 %
Advanced Technologies 62.2 3.3 % 43.3 2.6 % 42.2 2.8 % 45.6 3.7 % 46.2 4.7 %
Other 235.9 12.5 % 70.9 4.2 % 80.6 5.3 % 96.7 7.8 % 80.8 8.2 %
Segment Total 1,880.3 100 % 1,670.0 100 % 1,531.4 100 % 1,242.0 100 % 989.6 100 %
Consolidated Total 1,880.3 100 % 1,670.0 100 % 1,531.4 100 % 1,242.0 100 % 989.6 100 %

Operating Return on Assets (%)

31-Dec-09 31-Dec-08 31-Dec-07 31-Dec-06 31-Dec-05
Remotely Operated Vehicles 27.5 - 29.2 - 26.2 - 25.7 - 21.9 -
Subsea Products 11.7 - 16.6 - 17.9 - 15.2 - 5.1 -
Subsea Projects 46.1 - 48.8 - 65.9 - 57.9 - 29.7 -
Other Services/Inspection 34.6 - 47.7 - 32.5 - 21.0 - 14.6 -
Mobile Offshore Production Systems 9.9 - 6.0 - 8.6 - 11.3 - 12.6 -
Advanced Technologies 19.9 - 22.6 - 34.3 - 25.4 - 27.1 -

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Other -38.3 - -125.8 - -109.8 - -74.9 - -64.8 -

Segment Total 15.5 - 19.0 - 18.9 - 15.6 - 9.5 -
Consolidated Total 15.5 - 19.0 - 18.9 - 15.6 - 9.5 -

Purchase of Fixed Assets USD (mil)

31-Dec-09 31-Dec-08 31-Dec-07 31-Dec-06 31-Dec-05
Remotely Operated Vehicles 146.7 83.8 % 146.4 58 % 121.6 52 % 112.8 58.2 % 56.1 39.4 %
Subsea Products 13.7 7.8 % 78.4 31.1 % 65.7 28.1 % 38.0 19.6 % 64.7 45.5 %
Subsea Projects 2.7 1.6 % 12.7 5% 27.9 11.9 % 23.6 12.2 % 4.7 3.3 %
Other Services/Inspection 6.6 3.8 % 6.6 2.6 % 14.8 6.3 % 3.4 1.7 % 5.7 4%
Mobile Offshore Production Systems 0.1 0% 0.2 0.1 % 0.7 0.3 % 13.6 7% 3.1 2.2 %
Advanced Technologies 3.2 1.8 % 2.8 1.1 % 0.6 0.3 % 1.1 0.6 % 3.1 2.2 %
Other 2.0 1.1 % 5.2 2.1 % 2.5 1% 1.3 0.7 % 5.0 3.5 %
Segment Total 175.0 100 % 252.3 100 % 233.8 100 % 193.8 100 % 142.3 100 %
Consolidated Total 175.0 100 % 252.3 100 % 233.8 100 % 193.8 100 % 142.3 100 %

© 1983-2010 Reuters Research Inc. All Rights Reserved.

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Oceaneering International Business Segments

Houston, Texas, United States, Tel: 713-329-4500, URL: http://www.oceaneering.com/

Financials in: As Reported (mil)

Interim

External Revenue USD (mil)

31-Dec-09 30-Sep-09 30-Jun-09 31-Mar-09 31-Dec-08
Remotely Operated Vehicles 167.6 37.1 % 166.0 34.3 % 160.0 35.5 % 155.6 35.8 % 160.3 30.5 %
Subsea Products 124.5 27.5 % 132.7 27.4 % 115.6 25.6 % 114.9 26.4 % 171.1 32.6 %
Subsea Projects 48.6 10.8 % 65.9 13.6 % 63.9 14.2 % 63.0 14.5 % 90.3 17.2 %
Inspection 53.7 11.9 % 57.6 11.9 % 55.7 12.4 % 49.1 11.3 % 56.3 10.7 %
Mobile Offshore Production Systems 5.1 1.1 % 10.0 2.1 % 9.4 2.1 % 8.8 2% 9.4 1.8 %
Advanced Technologies 52.8 11.7 % 51.9 10.7 % 46.0 10.2 % 43.7 10.1 % 38.4 7.3 %
Segment Total 452.3 100 % 484.0 100 % 450.7 100 % 435.1 100 % 525.7 100 %
Consolidated Total 452.3 100 % 484.0 100 % 450.7 100 % 435.1 100 % 525.7 100 %

Total Revenue USD (mil)

31-Dec-09 30-Sep-09 30-Jun-09 31-Mar-09 31-Dec-08
Remotely Operated Vehicles 167.6 37.1 % 166.0 34.3 % 160.0 35.5 % 155.6 35.8 % 160.3 30.5 %
Subsea Products 124.5 27.5 % 132.7 27.4 % 115.6 25.6 % 114.9 26.4 % 171.1 32.6 %
Subsea Projects 48.6 10.8 % 65.9 13.6 % 63.9 14.2 % 63.0 14.5 % 90.3 17.2 %
Inspection 53.7 11.9 % 57.6 11.9 % 55.7 12.4 % 49.1 11.3 % 56.3 10.7 %
Mobile Offshore Production Systems 5.1 1.1 % 10.0 2.1 % 9.4 2.1 % 8.8 2% 9.4 1.8 %
Advanced Technologies 52.8 11.7 % 51.9 10.7 % 46.0 10.2 % 43.7 10.1 % 38.4 7.3 %
Segment Total 452.3 100 % 484.0 100 % 450.7 100 % 435.1 100 % 525.7 100 %
Consolidated Total 452.3 100 % 484.0 100 % 450.7 100 % 435.1 100 % 525.7 100 %

Gross Profit USD (mil)

31-Dec-09 30-Sep-09 30-Jun-09 31-Mar-09 31-Dec-08
Remotely Operated Vehicles 63.3 51.6 % 61.7 47.3 % 56.3 44.3 % 55.7 45.4 % 60.8 44.9 %
Subsea Products 28.3 23.1 % 27.8 21.3 % 29.4 23.1 % 29.5 24.1 % 35.4 26.1 %
Subsea Projects 13.4 10.9 % 19.3 14.8 % 22.5 17.7 % 19.4 15.8 % 26.7 19.7 %
Inspection 8.9 7.2 % 11.2 8.6 % 10.7 8.4 % 10.4 8.4 % 10.3 7.6 %
Mobile Offshore Production Systems 3.2 2.6 % 2.7 2.1 % 1.4 1.1 % 2.7 2.2 % -2.0 -1.5 %
Advanced Technologies 5.7 4.6 % 7.7 5.9 % 6.8 5.3 % 4.9 4% 4.4 3.3 %
Segment Total 122.8 100 % 130.4 100 % 127.2 100 % 122.6 100 % 135.6 100 %
Unallocated -15.0 -12.3 % -16.4 -12.6 % -17.0 -13.4 % -16.8 -13.7 % -15.3 -11.3 %
Consolidated Total 107.7 87.7 % 114.0 87.4 % 110.1 86.6 % 105.8 86.3 % 120.2 88.7 %

Gross Margin (%)

31-Dec-09 30-Sep-09 30-Jun-09 31-Mar-09 31-Dec-08
Remotely Operated Vehicles 37.8 - 37.2 - 35.2 - 35.8 - 37.9 -
Subsea Products 22.8 - 20.9 - 25.4 - 25.7 - 20.7 -
Subsea Projects 27.5 - 29.3 - 35.2 - 30.8 - 29.6 -
Inspection 16.5 - 19.5 - 19.2 - 21.1 - 18.3 -
Mobile Offshore Production Systems 63.3 - 27.4 - 15.3 - 31.0 - -21.8 -
Advanced Technologies 10.8 - 14.9 - 14.7 - 11.3 - 11.6 -
Segment Total 27.1 - 26.9 - 28.2 - 28.2 - 25.8 -
Consolidated Total 23.8 - 23.6 - 24.4 - 24.3 - 22.9 -

Operating Income/Loss USD (mil)

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31-Dec-09 30-Sep-09 30-Jun-09 31-Mar-09 31-Dec-08

Remotely Operated Vehicles 55.2 59.4 % 54.0 54.4 % 49.7 51 % 48.8 52.6 % 52.9 50.8 %
Subsea Products 15.1 16.2 % 14.1 14.2 % 15.6 16 % 15.8 17 % 22.2 21.3 %
Subsea Projects 12.0 12.9 % 17.1 17.3 % 20.3 20.8 % 17.2 18.5 % 24.0 23.1 %
Inspection 5.6 6% 7.3 7.4 % 6.9 7.1 % 6.6 7.1 % 6.0 5.7 %
Mobile Offshore Production Systems 3.1 3.4 % 2.4 2.4 % 1.1 1.1 % 2.3 2.5 % -2.4 -2.3 %
Advanced Technologies 2.0 2.1 % 4.4 4.4 % 4.0 4% 2.1 2.2 % 1.5 1.4 %
Segment Total 92.9 100 % 99.2 100 % 97.6 100 % 92.8 100 % 104.1 100 %
Unallocated -20.8 -22.3 % -22.9 -23.1 % -23.3 -23.9 % -23.4 -25.2 % -22.5 -21.6 %
Consolidated Total 72.1 77.7 % 76.3 76.9 % 74.3 76.1 % 69.4 74.8 % 81.6 78.4 %

Operating Margin (%)

31-Dec-09 30-Sep-09 30-Jun-09 31-Mar-09 31-Dec-08
Remotely Operated Vehicles 32.9 - 32.5 - 31.1 - 31.4 - 33.0 -
Subsea Products 12.1 - 10.6 - 13.5 - 13.7 - 13.0 -
Subsea Projects 24.6 - 26.0 - 31.7 - 27.2 - 26.6 -
Inspection 10.4 - 12.7 - 12.5 - 13.5 - 10.6 -
Mobile Offshore Production Systems 61.5 - 23.6 - 11.5 - 26.6 - -25.8 -
Advanced Technologies 3.8 - 8.4 - 8.6 - 4.7 - 3.8 -
Segment Total 20.5 - 20.5 - 21.6 - 21.3 - 19.8 -
Consolidated Total 15.9 - 15.8 - 16.5 - 15.9 - 15.5 -

© 1983-2010 Reuters Research Inc. All Rights Reserved.

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