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Barclays Energy Conference – Ion Geophysical Corp

Ion Geophysical Corp · Sep 8, 2011 · 39 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Barclays Energy Conference – Ion Geophysical Corp – slide 1
    ION Geophysical Corporate Update Barclays Energy Conference Presented by Bob Peebler, CEO, ION September 8, 2011
  2. Barclays Energy Conference – Ion Geophysical Corp – slide 2
    Todays Discussion Who We Are and What We Do Global Market Outlook Areas of Expertise & Recent Examples Current Business Issues Summary Appendix: Financial Information 2
  3. Barclays Energy Conference – Ion Geophysical Corp – slide 3
    Who We Are and What We Do 3
  4. Barclays Energy Conference – Ion Geophysical Corp – slide 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 Founded in 1968 as Input/Output…
  5. Barclays Energy Conference – Ion Geophysical Corp – slide 5
    Global Footprint Headquarters Data processing centers Sales and service centers BasinSPANS 5
  6. Barclays Energy Conference – Ion Geophysical Corp – slide 6
    Seismic vs. E&P vs. IONs Served Market A 16-19 Billion Annual (Revenue) Industry, A 5-6.5 Billion Annual Market 490 B 16-19 B Exploration 16% 12% Data Library Sales…
  7. Barclays Energy Conference – Ion Geophysical Corp – slide 7
    Revenue Distribution by Product/Service Line Quarter Ending 30-June 2011 100% = 88.5 Million Software YOY Growth 0% 10M New Venture YOY Growth 99% 10M Solutions YOY Growth 38% 49M Data Processing YOY Decline (26)% 21M…
  8. Barclays Energy Conference – Ion Geophysical Corp – slide 8
    ION Strategy Technology company bring the whole of ION to bear to solve the toughest E&P challenges History of innovation cableless acquisition technology and digital sensors, streamer steering technology, command and control…
  9. Barclays Energy Conference – Ion Geophysical Corp – slide 9
    ION Strategy Participation by Business Unit Planning Acquisition Processing Interpretation Concept Systems Survey Design Software and Services Marine Acquisition Technologies ION (49%) Joint Venture with BGP (51%) Land…
  10. Barclays Energy Conference – Ion Geophysical Corp – slide 10
    ION Strategy Bringing the Whole of ION to Solve Industry Problems Planning Acquisition Processing Interpretation ARCTIC EXPLORATION Arctic Operational Expertise Ice management and project execution Equipment Handling Ice skeg and…
  11. Barclays Energy Conference – Ion Geophysical Corp – slide 11
    Global Market Outlook
  12. Barclays Energy Conference – Ion Geophysical Corp – slide 12
    Global Market Outlook Energy Markets General Lingering effects of oil spill slower to rebound than expected Geopolitical tensions and regulatory uncertainty U.S. economic recovery slower than expected Developing countries led by…
  13. Barclays Energy Conference – Ion Geophysical Corp – slide 13
    Global Market Outlook Geophysical Sector Predicted increased E&P spending realized 118 123 2011 healing period for seismic as exploration activity resumes Marine Anticipated incremental higher capacity seismic vessels…
  14. Barclays Energy Conference – Ion Geophysical Corp – slide 14
    Areas of Expertise & Recent Examples 14
  15. Barclays Energy Conference – Ion Geophysical Corp – slide 15
    Areas of Expertise Challenging Environments Arctic, Shallow/Obstructed Water, Transition Zone and Desert Complex Geologies Subsalt, Sub Basalt, Thrust Belt and Carbonates Unconventional Reservoirs Shales, Tight Gas, and Oil…
  16. Barclays Energy Conference – Ion Geophysical Corp – slide 16
    Unconventional Reservoirs Macro Challenges Natural gas prices predicted to remain depressed due to an expanded shale gas resource base Short-term shift in activity from gas to oil shales, but shale gas predicted to continue…
  17. Barclays Energy Conference – Ion Geophysical Corp – slide 17
    Unconventional Reservoirs ResSCANS The ResSCANS Difference Rely on upfront geological, petrophysical, and rock physics analysis Establish what seismic attributes tie the geology and rock physics for a given shale play and impact…
  18. Barclays Energy Conference – Ion Geophysical Corp – slide 18
    Unconventional Reservoirs Optimizing Well Locations in the Niobrara Challenge Gather data necessary to determine optimal well placement, despite narrow data acquisition time window caused by wildlife restrictions Approach…
  19. Barclays Energy Conference – Ion Geophysical Corp – slide 19
    Unconventional Reservoirs Cost-Saving Completion Strategies in the Marcellus Challenges SHALE PLAY ECONOMICS Better understand the variability in rock (Figures provided by client) properties OPERATING COSTS: Drilling: 4-8 million…
  20. Barclays Energy Conference – Ion Geophysical Corp – slide 20
    Current Business Issues 20
  21. Barclays Energy Conference – Ion Geophysical Corp – slide 21
    Current Business Issues Data Processing Business Gulf of Mexico 1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 - Q210 Q310 Q410 Q111 Q211 Revenues Backlog Pipeline Number of Customers Slow recovery of data processing…
  22. Barclays Energy Conference – Ion Geophysical Corp – slide 22
    Current Business Issues New Ventures Strong performance of new ventures due to portfolio of new ventures activity in shale plays and continued strength in marine programs Three new ResSCAN projects in flight encompassing 600 square…
  23. Barclays Energy Conference – Ion Geophysical Corp – slide 23
    ION Capital Expenditures Relative to Revenue Average Per Year 06 - 1H 11 NV Revenue vs MCDL Investment 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 FY '06 FY '07 FY '08 FY'09 FY '10 1H…
  24. Barclays Energy Conference – Ion Geophysical Corp – slide 24
    ION Capital Expenditures Relative to Revenue Average Per Quarter 2006-2010 Qtr Pt Avg. NV Revenue vs Avg. MCDL Investment 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 AVG Q1 AVG Q2 AVG Q3 AVG Q4 AVG FY…
  25. Barclays Energy Conference – Ion Geophysical Corp – slide 25
    Current Business Issues INOVA Strong vibrator sales (total of 32) in Q2 Continued BGP purchases totaling 14 million for Q2 Firefly upgrade and purchase contract with BGP for delivery Q3 Firefly rental for Marcellus project started…
  26. Barclays Energy Conference – Ion Geophysical Corp – slide 26
    Summary 26
  27. Barclays Energy Conference – Ion Geophysical Corp – slide 27
    Summary Improved first half 2011 results compared to 2010 Slow recovery of data processing pipeline of business Anticipate improved data processing results in the second half of the year as the pipeline grows Strong performances of…
  28. Barclays Energy Conference – Ion Geophysical Corp – slide 28
  29. Barclays Energy Conference – Ion Geophysical Corp – slide 29
    Appendix: Financial Information Selected Financial Highlights 29
  30. Barclays Energy Conference – Ion Geophysical Corp – slide 30
    Financial Overview Q2 2011 ION delivers 0.02 of diluted EPS for the second quarter Revenues of 89 million for the quarter with year-to-date revenues of 179 million compared to 164 million for the prior period. Excluding Legacy Land…
  31. Barclays Energy Conference – Ion Geophysical Corp – slide 31
    Financial Overview Trailing Twelve Month (TTM) Revenue Comparison Including Legacy Land Systems Excluding Legacy Land Systems 500 500 400 400 Millions Millions 300 300 200 200 100 100 0 0 2010 2011 2010 2011…
  32. Barclays Energy Conference – Ion Geophysical Corp – slide 32
    Solutions Segment Q2 2011 Financial Overview Revenue by Type Multi-client CapEx Investment 120 140 120 110 100 100 Millions 80 90 60 40 80 20 Millions 70 0 60 2009 2010 2011 50 Actual Investment Minimum…
  33. Barclays Energy Conference – Ion Geophysical Corp – slide 33
    Software Segment Q2 2011 Financial Overview Revenue by Type (GBP) % of Seismic Vessels with Orca 14 12 39% 10 61% Millions 8 6 Orca-Permanent Other 4 Orca Vessel Conversion 2 0 YTD 2010 YTD 2011 Software…
  34. Barclays Energy Conference – Ion Geophysical Corp – slide 34
    Systems Segment Q2 2011 Financial Overview Revenue by Type 60 50 40 Millions 30 20 10 0 YTD 2010 YTD 2011 Towed Streamer Equipment OBC Other 34
  35. Barclays Energy Conference – Ion Geophysical Corp – slide 35
    Systems Segment Vessel Count & Streamer Length Segmented by Survey Type 140 8,000 128 122 118 7,000 120 106 28 43 6,000 100 97 33 83 25 Vessel Count 19 5,000 Kilometers 80 21 18 18 21 22 17 4,000 60 13 22 19…
  36. Barclays Energy Conference – Ion Geophysical Corp – slide 36
    Financial Overview Balance Sheet as of June 30, 2011 Capital Employed Financing 600 600 500 500 400 400 120M Millions Millions 300 300 200 200 100 100 99M 100M 0 0 Cash & ST Investments Remaining Working…
  37. Barclays Energy Conference – Ion Geophysical Corp – slide 37
    Financial Overview Liquidity & LT Debt as of June 30, 2011 Liquidity of 199M LT Debt of 100M 3% 50% 50% 97% Undrawn Revolver Term Loan Cash & ST Investments Facility & Equipment Leases Revolver and Term A both…
  38. Barclays Energy Conference – Ion Geophysical Corp – slide 38
    Financial Overview Cash Flow Six Months Ended June 30, SUMMARIZED CASH FLOW 2011 2010 Cash from operations 48,474 21,912 Working capital 12,718 (1,497) Multi-client investment (46,102) (21,226) PP&E Capital Expenditures…
  39. Barclays Energy Conference – Ion Geophysical Corp – slide 39
    INOVA Geophysical Q2 2011 Financial Overview Q210 vs Q211 Forecasted Revenues 70 60 Estimated Q2 revenues of 32 to 36 million with operating loss of 7 to 9 50 million and net loss of 9 to 11 million* Revenue over 80% ahead of…

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