Research Update: Oceaneering International Inc. Issuer Credit And Unsecured Note Ratings Raised To 'BB' On Debt Paydown; Outlook Stable

Houston-based offshore oilfield service company Oceaneering International Inc.'s credit measures have benefitted from recent debt repayment of $200 million. We expect double-digit offshore exploration and production (E&P) spending growth in 2024 will support rig counts and activity levels for offshore-focused oilfield service companies including Oceaneering. S&P Global Ratings raised its issuer credit rating on Oceaneering International Inc. to 'BB' from 'BB-'. At the same time, we raised our issue-level rating on its $500 million of senior unsecured notes due 2028 to 'BB' from 'BB-'. Our recovery rating on the company's unsecured debt remains '3' (rounded estimate: 65%), reflecting our cap when the issuer rating is in the 'BB' category. The stable outlook is based on our expectation that increased offshore

...- Houston-based offshore oilfield service company Oceaneering International Inc.'s credit measures have benefitted from recent debt repayment of $200 million. - We expect double-digit offshore exploration and production (E&P) spending growth in 2024 will support rig counts and activity levels for offshore-focused oilfield service companies including Oceaneering. - S&P Global Ratings raised its issuer credit rating on Oceaneering International Inc. to '##' from '##-'. - At the same time, we raised our issue-level rating on its $500 million of senior unsecured notes due 2028 to '##' from '##-'. Our recovery rating on the company's unsecured debt remains '3' (rounded estimate: 65%), reflecting our cap when the issuer rating is in the '##' category. - The stable outlook is based on our expectation that increased offshore E&P spending in 2024 will drive demand and bolster Oceaneering's financial results. We expect average FFO to debt well above 60% and debt to EBITDA well below 1x over the next...

Research Update