ION and the Seismic Sector Positioned for the Upcoming Exploration Cycle Barclays Capital 2010 CEO Energy-Power Conference September 15, 2010 Bob Peebler President and CEO ION Geophysical Corporation
Forward-looking Statement Todays presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements as to expectations,…
An Overview of ION Business: Advanced geophysical hardware, software, imaging services, and data libraries across the seismic workflow for both Land and Marine Mission: To solve the most challenging geophysical imaging problems…
IONs Long Term Strategy Solving the Most Complex Reservoir Imaging Problems A leader in geophysical imaging technology and services that aims at solving the toughest problems Balanced portfolio from early adopter technology for…
Seismic vs. E&P vs. IONs Served Market A 15-17 Billion Annual (Revenue) Industry, A 5-6 Billion Annual Market 440 B 15-17 B Exploration 16% 12% Data Library Sales…
Revenue Distribution by Product/Service Line Twelve Months Ending 31-December 2009 100% = 420 Million Systems Data Processing New Ventures Data Libraries Note: Systems includes Sensor B.V., Marine Imaging Systems, Concept…
ION History New Strategy Introduced in 2003 ARAM 250.0 Acquisition 18.00 Lehman Collapse 16.00 200.0 14.00 REVENUE JV with BGP Stock Price Revenue (millions) Average Stock Price Announced 12.00 150.0 JV 10.00 GXT…
The Strategy of the Joint Venture Leverage the R&D of ION and Operational Expertise of BGP R&D centers will remain primarily in the U.S. and Canada with much of the manufacturing moving to China to reduce costs Field test new…
The BGP/ION Joint Venture Terms BGP and ION contributed all land equipment technology and businesses, less geophones, to the JV BGP purchased 51% of the JV for the value of their contributed assets plus 108 million in cash to…
Macro Energy Themes Oil Segment Relatively strong oil prices due to Asia demand Future tighter supplies due to slow down in deep water GOM Deep water still major theme (80+ percent outside of GOM) Frontiers in Brazil, Arctic, West…
Five Drivers of Future Growth Assumptions 2010 healing period for seismic Oil prices 70-80/bbl for 2011 and likely increasing in out years Gas Prices 4-6/MCF for plan period Slow growth economy but no double dip recession Asia and…
IONs Solutions Approach Bringing the Whole of ION to Solve Oil Company Problems Breaking Arctic Barriers Overcoming Land Acquisition Challenges in Mexico Challenging Terrain in the Marcellus Shale
The Arctic: A Promising Frontier High Potential in the Region Estimates place 25% of all remaining undiscovered reserves in the Arctic Source: USGS, World Petroleum Assessment [ 13 ]
2009 NE GreenlandSPAN Accomplishments Successfully Acquired Towed Streamer Data in 10/10ths Ice 9/10ths Ice 10/10ths Ice [ 15 ]
Pemex and FireFly 4 Projects Using Comesa as Contractor Coyula 3D July-Aug 2009 Tepetate 2D Tesechoacan 3D Feb-Mar 2010 Oct-Dec 2009 Chopo Sur 3D May-June 2009 [ [ 1616 ]
Challenging Terrain in Appalachia Marcellus Shale Gas - Appalachia Farms and forest, multiple road crossings and farm/wild-life pose a challenge to cable crews in terms of productivity. FireFly was deployed in April 2010 on a…
Summary ION survived the 2008-09 market collapse Restructured balance sheet Strategic JV in land equipment Maintained the majority of R&D Continued to invest in strategic data library projects ION has a unique asset light…
[ 23 ]
Appendix: Financial Information Selected Financial Highlights [ 24 ]
Additional Detail Balance Sheet: Q2 2010 Q2 2010 (000) Cash 16,288 Debt Detail: Term A 105,250 Capital Leases 2,345 Other 4,021 Debt 111,616 Equity 334,536 NOTE: 100M undrawn credit facility will be available [ 29 ]
MultiClient Amortization Our method of amortizing the costs of a multi-client data library available for commercial sale is the greater of (i) the percentage of actual revenue to the total estimated revenue multiplied by the total…
Loading...
