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Investor Relations Presentation – Ion Geophysical Corp

Ion Geophysical Corp · Mar 31, 2009 · 52 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. Investor Relations Presentation – Ion Geophysical Corp – slide 1
    Positioning For Growth While Weathering The Storm Investor Relations Presentation 2009
  2. Investor Relations Presentation – Ion Geophysical Corp – slide 2
    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,…
  3. Investor Relations Presentation – Ion Geophysical Corp – slide 3
    An Overview of ION Business: Advanced geophysical hardware, software, imaging services, and data libraries across the seismic workflow Mission: To solve the most challenging geophysical imaging problems with highly productive…
  4. Investor Relations Presentation – Ion Geophysical Corp – slide 4
    ION Served Market Approximately 3.8 Billion 2008 Land Systems Marine Systems ION Competition Data Processing 2D Regional Multi-client Programs 0 500 1000 1500 Marine systems does not include permanent OBC [4]
  5. Investor Relations Presentation – Ion Geophysical Corp – slide 5
    Revenues and Business Mix 5 Since the Inception of Our New Strategy in 2003 Consolidated Revenues Mix of Business by Segment ( Millions) (Percentage of 2008 Revenues) 900 100% = 680 million 800 03-08 CAGR = 35% 700 600 200M…
  6. Investor Relations Presentation – Ion Geophysical Corp – slide 6
    Blue-Chip Customer Base Top Top Customers Customers 2008 2008 Revenue Revenue by by Customer Customer Global Contractor 7.6% Global Contractor 7.2% Global Contractor 5.4% Global Contractor 5.1% Global Contractor 4.3%…
  7. Investor Relations Presentation – Ion Geophysical Corp – slide 7
    Business Increasingly International Location of Discoveries 100 MMBOE 2001 2001 2005 2005 Discoveries Discoveries 100 249 mmboe 250 499 mmboe 500 999 mmboe 1000 UP mmboe Source: CERA. [7]
  8. Investor Relations Presentation – Ion Geophysical Corp – slide 8
    2009 Plan Assumptions and Short Term Strategy Assumptions Oil prices in the 40/ bbl range during 2009-Expect Rebound in the 50- 60/bbl range in 2010. Underlying fundamentals have not changed, i.e. long term supply problem.…
  9. Investor Relations Presentation – Ion Geophysical Corp – slide 9
    Industry Faces Significant Future Demand Challenges Worldwide Decline Rate 6.8% [9]
  10. Investor Relations Presentation – Ion Geophysical Corp – slide 10
    Our 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…
  11. Investor Relations Presentation – Ion Geophysical Corp – slide 11
    Diversified Technology Portfolio with Products in Various Stages of the Product Lifecycle A Portfolio Approach ARAM products complement our 2007 Land product portfolio 2004 Vibrators with robust System Four margin products…
  12. Investor Relations Presentation – Ion Geophysical Corp – slide 12
    Seismic Imaging Solutions Segment Seismic Data Integrated Seismic Seismic Data Processing Services Solutions (ISS) Libraries GXT Imaging Solutions Leading Depth Imaging Deal origination for oil Technology. company underwritten…
  13. Investor Relations Presentation – Ion Geophysical Corp – slide 13
    Seismic from an Oil Company Perspective ION Prepared to Address the Fundamental Questions Gas Cap Oil Entrapment W ater Seal Rock Reservoir Rock Migration 120 F 350 F Generation 24803 The Fundamental E&P Questions…
  14. Investor Relations Presentation – Ion Geophysical Corp – slide 14
    IONs Global Footprint in Data Processing January 2004 Geophysical Service Centers (GSCs) [ 14 ]
  15. Investor Relations Presentation – Ion Geophysical Corp – slide 15
    ION 2009 Global Processing Scale GSC Project Experience [ 15 ]
  16. Investor Relations Presentation – Ion Geophysical Corp – slide 16
    Imaging Technology Timeline HGSC Resource Evolution 180000 Cumulative total processors Cumulative peak performance (GFlops) 160000 Cumulative total memory (GB) 140000 120000 100000 RTM G F L OP S 80000 60000 40000…
  17. Investor Relations Presentation – Ion Geophysical Corp – slide 17
    West Africa Imaging Example RTM Defines the Up-dip Limit of Potential Reservoirs KIRCHHOFF RTM [ 17 ]
  18. Investor Relations Presentation – Ion Geophysical Corp – slide 18
    RESERVOIR SOLUTIONS DELTAIC / BRAIDED CHANNELS SYSTEMS [ 18 ]
  19. Investor Relations Presentation – Ion Geophysical Corp – slide 19
    Dajing Oil Field 30% of China Production In Serious Decline 45 well heads (counting the work-over rig) zoom [ 19 ]
  20. Investor Relations Presentation – Ion Geophysical Corp – slide 20
    High density drilling highly obstructed area Candidate for both Full Wave imaging and FireFly [ 20 ]
  21. Investor Relations Presentation – Ion Geophysical Corp – slide 21
    Some Key Wells with Cumulative Production 1MMBO Cummulative Production 5 mmbo 2-3 mmbo 1-2 mmbo [ 21 ]
  22. Investor Relations Presentation – Ion Geophysical Corp – slide 22
    Reasons For Full-wave Survey In Dajing Enhanced bandwidth 3C Digital MEMS sensors capture lower lows and higher highs, which translates into improved reservoir resolution and is less sensitive to ambient noise. Improved reservoir…
  23. Investor Relations Presentation – Ion Geophysical Corp – slide 23
    Overview of a BasinSPAN Program Comprehensive view of the petroleum system Integrates geology and geophysics Ultra-deep view Source rock deposition Migration pathways Sediment fairways Customized program design Acquisition…
  24. Investor Relations Presentation – Ion Geophysical Corp – slide 24
    Why the Arctic High Potential in the Region Estimates place 25% of all remaining undiscovered reserves in the Arctic. Source: USGS, World Petroleum Assessment [ 24 ]
  25. Investor Relations Presentation – Ion Geophysical Corp – slide 25
    Marine Imaging Systems Segment Towed Streamer Marine Positioning Ocean Bottom Acquisition Systems Systems Acquisition Systems DigiBird and DigiFIN Marine VectorSeis Ocean DigiSTREAMER Positioning Redeployable Marine Streamer…
  26. Investor Relations Presentation – Ion Geophysical Corp – slide 26
    Summary on Total Vessels/etc Towed Streamer Fleet 180 9000 160 8000 Capacity Range: 11 140 7000 120 6000 Vessel count Streamer km Hi 3D 100 5000 Hi 2D/Low 3D 2D 80 4000 Streamer Km Low Capacity Range: 11 Streamer…
  27. Investor Relations Presentation – Ion Geophysical Corp – slide 27
    A Matter of Perspective 16 x 12km Spread Configuration Overlaid on Manhattan 16 x 12 towed streamer spread configuration [ 27 ]
  28. Investor Relations Presentation – Ion Geophysical Corp – slide 28
    Analogy: Commercial Air Travel vs. Towed Streamer Operational Planning Commercial Air Travel Towed Streamer [IA] Flight Plan Survey Plan [ 28 ]
  29. Investor Relations Presentation – Ion Geophysical Corp – slide 29
    Analogy: Commercial Air Travel vs. Towed Streamer Operational Command & Control Intelligence Commercial Air Travel Towed Streamer [IA] Auto Pilot Orca [ 29 ]
  30. Investor Relations Presentation – Ion Geophysical Corp – slide 30
    Analogy: Commercial Air Travel vs. Towed Streamer Dynamic Operational Execution Commercial Air Travel Towed Streamer [IA] Dynamic Horizontal Control Tail rudder DigiFIN Dynamic Vertical Control Wing flaps…
  31. Investor Relations Presentation – Ion Geophysical Corp – slide 31
    [IA] in Action Orca Software Controlling the Streamer Spread via DigiFIN [ 31 ]
  32. Investor Relations Presentation – Ion Geophysical Corp – slide 32
    Land Imaging Systems Segment Land Acquisition Vibrators and Geophone Systems Energy Sources Firefly Worlds First digital X-VIB / ADV-IV SM-24 Geophone Full Wave Cable-less Vibrator Vehicles Analog Sensor Recording System…
  33. Investor Relations Presentation – Ion Geophysical Corp – slide 33
    Majority of Global Resource Base is Onshore Hydrocarbon Distribution in the Top 25 Basins Known Reserves + Mean Undiscovered Resources Billions of Barrels of Oil Equivalent 40 538 126 85 34* 94 72 33 61 76 41 80 702 129…
  34. Investor Relations Presentation – Ion Geophysical Corp – slide 34
    2008 Estimated Global Seismic Crew Count Estimates for 2008(1) EAME & Russia & North Latin Total(2) ISC CIS China/AP America America WGN working EY 2008 280 104 43 39 78 24 of Crews 872 176 240 305 118 33 Dynamite/Vibe…
  35. Investor Relations Presentation – Ion Geophysical Corp – slide 35
    Land Technology Trends High Density Shooting for higher resolution Shallow plays such as Heavy Oil are 10X trace density of more conventional basins Benefits seen above leading to a move towards denser sampling in mature basins to…
  36. Investor Relations Presentation – Ion Geophysical Corp – slide 36
    Demand for Increasing Channel Count Need for better reservoir description driving demand [ 36 ]
  37. Investor Relations Presentation – Ion Geophysical Corp – slide 37
    Land Survey Schematic Cable-based Recording System (Scorpionor ARIES) [ 37 ]
  38. Investor Relations Presentation – Ion Geophysical Corp – slide 38
    Land Survey Schematic Cableless Recording System (FireFly) [ 38 ]
  39. Investor Relations Presentation – Ion Geophysical Corp – slide 39
    The FireFly Ecosystem A Comprehensive Approach Navigation and positioning Survey design for optimum image Node-based, full-wave recording system GIS planning and Comprehensive data management operations support [ 39 ]
  40. Investor Relations Presentation – Ion Geophysical Corp – slide 40
    FireFly Commercialization Update A combination of sales and rental/purchase agreements China Qaidam Basin 3D First commercial sale of FireFly Receiver stations: 10,808 Source points: 13,632 In progress Chopo Sur 3D Comesa and…
  41. Investor Relations Presentation – Ion Geophysical Corp – slide 41
    ION Land Acquisition System Strategy In the Context of Technology Adoption Cycles* High Channel Count Analog Low Channel Count Analog [Middle East, North Africa] [US Mid-continent - Conventional] II High Channel Count Digital…
  42. Investor Relations Presentation – Ion Geophysical Corp – slide 42
    Summary The beginning of economic recovery will likely drive oil prices back to 60-70 bbl or higher. Supply will once again become the main driver. IONs short term goal is to weather the storm by focusing on cash management,…
  43. Investor Relations Presentation – Ion Geophysical Corp – slide 43
    Appendix [ 43 ]
  44. Investor Relations Presentation – Ion Geophysical Corp – slide 44
    Net Revenues 2008 vs 2002-2007 ( Millions) 800 713 700 680 600 504 500 400 363 300 241 200 150 119 100 0 2002 2003 2004 2005 2006 2007 2008 [ 44 ]
  45. Investor Relations Presentation – Ion Geophysical Corp – slide 45
    Revenues and Gross Margin Percent 2008 vs 2005-2007 Revenues ( Millions) Gross Margin % 800 40 713 700 680 35 600 504 30.6 31.0 500 30 28.5 400 363 27.0 300 25 200 100 20 2005 2006 2007 2008 2005 2006 2007 2008 [ 45 ]
  46. Investor Relations Presentation – Ion Geophysical Corp – slide 46
    Segment Revenues 2008 vs 2005-2007 ( Millions) Land Imaging Systems Marine Imaging Systems 375 325 250 200 178 183 275 206 200 150 128 175 157 100 69 75 50 0 -25 2005 2006 2007 2008 2005 2006 2007 2008 Seismic Imaging…
  47. Investor Relations Presentation – Ion Geophysical Corp – slide 47
    EBITDA 2008 vs 2002-2007 ( Millions) 190 165 156 140 124 115 90 83 65 43 40 -49 21 15 -9 (10) (35) (60) 2002 2003 2004* 2005 2006 2007 2008 EBITDA (earnings before net interest expense, taxes, depreciation, and…
  48. Investor Relations Presentation – Ion Geophysical Corp – slide 48
    Diluted EPS 2008 vs 2005-2007 0.60 0.52 0.50 * * 0.50 0.40 0.33 0.30 0.22 0.20 0.10 0.00 2005 2006 2007 2008 * Excludes one time charges [ 48 ]
  49. Investor Relations Presentation – Ion Geophysical Corp – slide 49
    Balance Sheet Highlights 12/31/05 12/31/06 12/31/07 12/31/08 Total LT Debt 71.5 MM 71.0 MM 9.8 MM 253.5 MM LT Debt/Cap 12.1% 11.9% 1.6% 24.9% Net Debt/Cap 10.2% 10.2% -1.9% 25.2% Cash & Equity 15.9 MM 17.1 MM 36.4 MM 35.2…
  50. Investor Relations Presentation – Ion Geophysical Corp – slide 50
    Balance Sheet Highlights (continued) Q1 2008 Q2 2008 Q3 2008 Q4 2008 Inventory 163.9 MM 189.2 MM 254.8 MM 262.5 MM Cash Balance 36.0 MM 18.8 MM 32.2 MM 35.2 MM Net Debt (13.2 MM) 3.7 MM 282.7 MM 256.7 MM Leverage* (0.1)…
  51. Investor Relations Presentation – Ion Geophysical Corp – slide 51
    Updated Annual Guidance Full-Year 2009 2009 Revenues 620 680 MM Diluted EPS 0.00 0.16 [ 51 ]
  52. Investor Relations Presentation – Ion Geophysical Corp – slide 52
    ION Total Revenues Revenues in Millions 1750 1500 1250 ION Solutions 1000 Land Marine 750 CSL 500 250 0 2003 2008 2013E Gross margin 30.6% 36 38% Op margin 10.1% 20 22% [ 52 ]

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