ION Geophysical Corporation Greg Heinlein Senior Vice President and Chief Financial Officer Dahlman Rose & Co. Ultimate Oil Services and E&P Conference December 4, 2012
Todays Discussion Company Overview ION Strategy 2012 Highlights Financial Performance and Outlook 3
Company Overview 4
ION at a Glance Technology company, driven to develop and apply proven, innovative technologies and services to help our clients find and produce hydrocarbons as safely and efficiently as possible Leading provider of geophysical…
Global Footprint Headquarters Data Processing Centers Sales and Service Centers ResSCANTM Programs BasinSPANTM Programs 6
Our Offerings Seismic Data Processing & Integrated Geophysical Seismic Data Libraries Reservoir Imaging Services Programs Survey Design Software & Marine Seismic Land Seismic Equipment Services Equipment 7
ION Strategy 8
E&P Market Observations Oil Supply & Demand; E&P Expenditures Projected Growth in Supply and Demand 140 600 E&P Expenditures ( billion) 550 Oil Production (millions bbl/d) 120 500 World Capacity 450 100 Oil Price…
ION Strategy Planning Acquisition Processing Interpretation Technology History of Asset light Participate in company innovation each stage of Bring the whole of Full-wave imaging, Focus our capital on the geophysical ION to…
ION Areas of Focus Aligned with Major Industry Growth Areas Challenging Unconventional Basin Complex Environments Reservoirs Exploration Geologies Arctic, Obstructed Shales, Tight Gas, BasinSPAN Data Subsalt, Sub Water, and and…
Executing Our Strategy Solving Industry Problems in Unconventional Reservoirs CHALLENGE: Low natural gas prices creating increased pressure on shale operators to locate, complete and produce shale gas more efficiently. IONS SHALE…
Executing Our Strategy Solving Industry Problems in Basin Exploration CHALLENGE: Several recent large discoveries offshore East Africa have created tremendous interest. E&P companies require data to assess the prospectivity of nine…
Executing Our Strategy Solving Industry Problems in Challenging Environments CHALLENGE: Arctic contains an estimated 25-30% of the worlds undiscovered reserves, yet E&P companies lack sufficient data to reduce risk. IONS ARCTIC…
2012 Highlights 15
Global Outlook E&P Spending and Implications for Seismic E&P Industry Dynamics Europe, Africa, Middle East E&P International capex markets leading and E&P capex seismic growth spend Strong ION expected revenues to grow…
Market Observations Seismic Industry Macro Trends Integration & consolidation in Big 3 with 75% of Streamer Capacity towed streamer industry With CGGV acquisition of Fugro, Big 3 have 75% of streamer capacity Growing demand for…
Market Observations International Data Processing Robust Buoyant data processing market Demand up Gulf of Mexico and Internationally Europe, Africa, Middle East Conventional Image Record revenues in Q3 6th sequential…
Market Observations Continued Demand for Multi-client Programs Worldwide Record third-quarter revenues and backlog Strong demand driven by upcoming lease rounds Completed acquisition of six programs in Q3 GeoVenturesTM…
Market Observations Changing Marine Seismic Market Tightening market vessel utilization and day rates up Smaller towed streamer vessel equipment sales in 2012 Solid ION VSO II OBC system sales Source: ODS Petrodata, Company…
INOVA Geophysical 2012 Highlights Revenues Coming off of a heavy R&D investment 140 period 120 Recently introduced several new product 100 lines Hawk wireless recording system Millions 80 G3i cable-based recording system…
Financial Performance and Outlook 22
ION YTD Q3 2012 Highlights Continued Momentum Solid Performance Revenues ( Thousands) Gross Profit Strong revenue 360,000 45% Up 20% 40% Up 3 pts growth up 20% 340,000 35% 30% 320,000 25% 300,000 20% 15% Net income up…
Continued Momentum in Q3 Strong first three quarters of 2012 Expect solid Y/Y growth throughout 2012 Anticipate 2012 multi-client investment north of 140 million Remain positive on outlook to achieve Y/Y quarterly…
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