GEOKINETICS INC - FORM 8-K - EX-99.2 - PRESENTATION

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8-K - 01-06-2010 - GEOKINETICS INC	form8_k.htm
EX-99.1 - PRESS RELEASE - GEOKINETICS INC	ex99_1.htm

NYSE Amex: GOK - A World of Opportunities, Revealed

Pritchard Capital Partners LLC

Energize 2010

January 6, 2010

Investor Presentation

NYSE Amex: GOK - A World of Opportunities, Revealed

Forward-Looking Statements

u This presentation contains forward-looking statements.

u All forward-looking statements speak only as of the date of this presentation or,
in the case of any document incorporated by reference, the date of that
document. All subsequent written and oral forward-looking statements
attributable to the company or any person acting on the company’s behalf are
qualified by the cautionary statements in this section. The company does not
undertake any obligation to update or publicly release any revisions to forward-
looking statements to reflect events, circumstances or changes in expectations
after the date of this report.

u Actual experience may differ and such differences may be material.

u Backlog consists of written orders and estimates for our services which we
believe to be firm. In many instances contracts are cancelable by customers so
we may never realize some or all of our backlog, which may lead to lower than
expected financial performance.

u Forward-looking statements are subject to uncertainties and risks which are
disclosed in Geokinetics’ Annual Report on Form 10-K and Quarterly Reports on
Form 10-Q.

NYSE Amex: GOK - A World of Opportunities, Revealed

GOK Market Data

u Leading provider of seismic data acquisition, processing and
interpretation services to the oil & gas industry worldwide

Market Data (at 12/29/2009)

• Exchange/Ticker: NYSE Amex: GOK

• Market Capitalization: $152.8 MM

• Enterprise Value: $273.7 MM*

Trading Data (at 12/29/2009)

• Common Shares O/S 15.6 MM

• Avg. Volume (90 day) 148,142 shs/day

• Institutional Ownership 57%

*Debt & Preferred Equity as of 9/30/09, Cash (including $2.0M of Restricted Cash) as of 9/30/09 adjusted for net
proceeds from December Equity Offering, excludes December Bond Offering & Related Cash Proceeds as these
are being held in Escrow pending closing of the PGS Onshore acquisition and will be returned if this acquisition
does not close

Institutional ownership as reported by Bigdough.

NYSE Amex: GOK - A World of Opportunities, Revealed

Industry Dynamics

u NOC’s control as much as 94% of world’s oil and gas reserves
(Source: Oil & Gas Journal, February 2, 2009)

u Over 50% of Top 50 oil companies are NOC’s
(Source: Petroleum Intelligence Weekly)

u OPEC oil production is at its highest level since December 2008

u Technical advances such as 3-D seismic, hydraulic fracturing and horizontal
drilling are bringing new activity in regions with known hydrocarbon systems

u U.S. shale plays still active and profitable, E&P expenditures expected to rise by
13% in 2010

u U.S. projects generally focused on natural gas, while international projects are
mostly targeting oil prospects

u 45% of companies surveyed indicated an increase in 2010 exploration spending

u Increasing demand for seabed seismic data acquisition
(Transition Zone, Ocean Bottom Cable and 4D)

Source: Barclays Capital - The Original E&P Spending Survey , December 16, 2009.

International Exploration and Production Expenditures ($B)

NYSE Amex: GOK - A World of Opportunities, Revealed

Expanding Capital Budgets

Source: Barclays Capital - The Original E&P Spending Survey , December 16, 2009.

NYSE Amex: GOK - A World of Opportunities, Revealed

Global Seismic Crew Count

Seismic Crew Data Source: IHS Energy.

1. Source: Barclays Capital - The Original E&P Spending Survey 12/16/2009

u International markets grew
to 81% of total market from 78%,
driven by NOCs and IOCs
primarily targeting oil

u U.S. and Canadian markets
declined to 19% of total market
from 22%

u U.S. E&P spending in 2010
expected to increase 12%;
international E&P expected to
increase 10%, mostly due to
higher capital spending from
NOCs(1)

u E&P companies announcing
increase in percent of budget
allocated to exploration(1)

u Global presence provides
ability to redeploy assets
to best markets

Region	Oct-2008	Oct-2009	Change
U.S.	70	61	-9
Canada	10	8	-2
U.S. & Canada	80	69	-11
Europe	45	32	-13
CIS	48	45	-3
Latin America	33	35	+2
Africa	66	70	+4
Middle East	33	33	-
Far East	63	70	+7
Outside U.S. & Canada	288	285	-3
World Total	368	354	-14

NYSE Amex: GOK - A World of Opportunities, Revealed

Geophysical Market - Competitive Landscape

Company	Data Acquisition				M-C Data Library	Data Proc & Interp	Eqpmt.	Land Seismic Crews
Company	Marine Streamer	Land	TZ	OBC	M-C Data Library	Data Proc & Interp	Eqpmt.	Intl	North Amer.
Geokinetics (Pro Forma)		ü	ü	ü	ü	ü		ü	ü
Dawson		ü				ü			ü
Tidelands		ü	ü						ü
PGS (Pro Forma)	ü				ü	ü
BGP	ü	ü	ü			ü	ü	ü
CGGVeritas (Sercel)	ü	ü	ü	ü	ü	ü	ü	ü	ü
WesternGeco (Schlumberger)	ü	ü	ü	ü	ü	ü	ü	ü
Global Geophysical		ü	ü	ü	ü	ü		ü	ü
Seitel					ü
Mitcham							ü
ION Geophysical					ü	ü	ü
Bolt Technologies							ü
OYO Geospace							ü

NYSE Amex: GOK - A World of Opportunities, Revealed

Geokinetics Overview

u Leading provider of seismic data acquisition, processing and interpretation services to the oil & gas
industry worldwide

u Provides seismic data acquisition services by collecting two-dimensional (2D), three-dimensional
(3D), and multi-component seismic data in land, marsh and swamp, and shallow water environments
on a contract basis for its customers

u Provides a suite of onshore and offshore proprietary seismic data processing and interpretation
products and services to produce an image of the earth’s subsurface

u Purpose-built vessels designed for cost-
effective mobilization by air, land or sea

§ Up to 65’ in length, ultra shallow draft vessels

§ Capable of operating 150 ft. water depth

§ Four active crews

u Launched OBC operations Q4 2007

u First operator of Sercel SeaRay (2 systems)

u Offshore capabilities up to 500 ft. water depth

u Expanding OBC capabilities near-term

Leader in Transition Zone

Emerging OBC Market

NYSE Amex: GOK - A World of Opportunities, Revealed

Investment Highlights

NYSE Amex: GOK - A World of Opportunities, Revealed

Leading Provider with a Global Market
Presence

Global Market Footprint - Infrastructure / Assets / People

u Fully trained, local management/technicians available in key markets /
Expertise shared globally

u Can mobilize and move crews to the most active regions worldwide, as markets
dictate, to maximize utilization

u Use of common equipment increases productivity and cost savings

u Crews strategically located worldwide in regions offering long-term work
prospects

u International projects tend to be longer term, up to 2 years

u Many smaller jobs that can be consolidated to minimize downtime

NYSE Amex: GOK - A World of Opportunities, Revealed

Leading Provider with a Global Market
Presence

Significant backlog provides strong visibility for crew utilization into 2010

Geographic Revenue % Split

Significant international presence with backlog of ~$455.1 millions as of 9/30/09

* Backlog is pro forma for the acquisition of PGS Onshore

Backlog %

NYSE Amex: GOK - A World of Opportunities, Revealed

Specialized Expertise in Difficult
Environments & Key High Growth Markets

u Ability to acquire land, shallow marine and transition zone seismic data
utilizing single component, dual sensor, 3C or 4C multi-component
technologies

u Actively researches and implements emerging technologies and conventional
2D,3D, and in reservoir monitoring applications repeatable 4D surveys

u Proven capabilities:

u Leader in single sensor, dual sensor and multi-component acquisition

u All terrain, man-portable and heli portable operations - mountains, plains,
arid desert, heavy forest, jungle, etc.

u Shallow marine transitional operations - marsh, swamp, lake, river,
coastal

Worldwide seismic capabilities for land, transition zone (TZ)

and emerging OBC market

NYSE Amex: GOK - A World of Opportunities, Revealed

Acquisition of PGS Onshore Enhances
Capabilities and International Expertise

PGS Onshore Capabilities

u PGS Onshore engages in seismic operations on land, shallow water and
transition zones, including onshore multi-client library

u As of September 2009, PGS Onshore had:

§ 13 crew capacity (9 active) in 10 countries

§ 3,514 data acquisition employees

§ ~84,000 channels

u Extensive PGS Onshore geographic capabilities include:

§ Desert - experience in severe desert conditions in Middle East and Africa

§ Arctic - environmentally sensitive terrain through its modern equipment

§ Mountain, Jungle and Swamp

§ Highland - high channel count capability

§ Transition Zone - “light tackle” shallow marine, and transition zone surveys

u Multi-client data library contains over 5,500 square miles of 2D / 3D
seismic information covering the U.S.

NYSE Amex: GOK - A World of Opportunities, Revealed

Transaction Overview

Sources and Uses

u On December 3, 2009, Geokinetics Inc. (“Geokinetics”) signed a
definitive agreement to acquire the onshore seismic data
acquisition and multi-client data library business of Petroleum Geo
-Services ASA (“PGS Onshore”)

u Purchase price of $210 million consisting of:

§ $183.9 million in cash consideration

§ $26.1 million common stock issued directly to the seller (1)

u Highly accretive in 2010

u Financing of the acquisition and refinancing of current debt
outstanding includes:

§ 4.0 million Share Common Stock Equity Follow-On

§ $300 million Senior Secured Notes

(1) Reflects stock consideration based 2.15 million shares at an average price
of $12.11 per share.

(2) Includes expenses related to this note offering, the concurrent common
stock offering, the new senior secured revolving credit facility, the bridge
loan and the preferred stock restructuring.

NYSE Amex: GOK - A World of Opportunities, Revealed

Premier Global Seismic Company

	1	Standalone		Combined
			PGS Onshore	The New
Recording Channels (1)		~120,000	~84,000	~204,000
Vibrator Equipment		68 (2)	84 (1)	152
Crew Capacity		25 (1)	13 (1)	38
Multi-Client Library Area		742 sq. miles (3)	5,500 sq. miles	6,242 sq. miles
Employees (1)		4,077
2008 EBITDA		$65.0	$71.9	$136.9 (4)
YTD 9/30/09 EBITDA		$71.6	$9.2	$80.8 (4)
Total Assets		$459.5	$211.5	$755.4 (5)
Backlog (9/30/09)		$259	$196	$455

(1) As of September 2009.

(2) Reflects vibrator trucks only.

(3) Currently in process.

(4) Refer to reconciliation of EBITDA.

US$ millions

(5) Total reflects pro forma adjustments.

NYSE Amex: GOK - A World of Opportunities, Revealed

Extensive Multi-Client Library

Source: PGS website.

Multi-Client Data Library

Willow Bend MC3D

35 square miles

Patrick Draw

290 square miles

Taloga

102 square miles

Wichita Mountain Front MC3D

3,000+ square miles

Ultra Deep Regional 2D

125 square miles

Hearne East and Flynn 3D

488 square miles

Crockett 3D

455 square miles

Key Creek North

505 square miles

High Density Alaska
Foothills

500 square miles

Bradford County

742 square miles (1)

(1) In progress

PGS Onshore

Geokinetics

NYSE Amex: GOK - A World of Opportunities, Revealed

Strong Relationships with Diversified
Customer Base

Choice of Leading Operators - Geokinetics (Pro Forma)

u Long-standing relationships with major and independent oil and natural gas producers, as well as
national oil companies throughout the world

– Broad distribution of revenue across customer base

u No one customer represents more than 16% of total pro forma revenues

NYSE Amex: GOK - A World of Opportunities, Revealed

Execution of Business Strategy Has Led to
History of Successful Growth

Maintain focus and specialization in
profitable, high-potential markets

Prudently invest in new and
technologically advanced equipment

Provide a broad range of services

Diversify operations geographically, oil
vs. gas, shallow water vs. land and other
services (Multi-Client and Data Process.)

Actively pursue strategic acquisitions

u In becoming a leading global seismic provider, Geokinetics has been able to
execute its business strategy which has resulted in a history of successful growth

Successful integration of past
acquisitions

Significant capital investment in assets
and technology

(Over $200M over the past three years)

Transition to more international and
technologically advanced model

Significant growth in revenues and
improvements in profitability

Enhanced asset utilization and
operating efficiency

NYSE Amex: GOK - A World of Opportunities, Revealed

Financial Highlights

NYSE Amex: GOK - A World of Opportunities, Revealed

Historical and Pro Forma Financial
Performance

Historical and Pro Forma Revenue & EBITDA Trends

Source: Prospectus Supplement.

$357.7

$474.6

$388.6

$753.4

$530.2

$31.2

$65.0

$71.6

$136.9

$80.8

$100

$200

$300

$400

$500

$600

$700

$800

2007A

2008A

YTD 9/30/09

2008 PF

YTD 9/30/09 PF

Revenues

EBITDA

NYSE Amex: GOK - A World of Opportunities, Revealed

Quarterly Results

Quarterly earnings can be uneven

u Seasonality primarily affects second quarter operations due to:

§ Canadian working season and thaw

§ Colombian rainy season

u Budgeting cycle of international companies

u Quarterly volatility reflects varying crew profitability due to fluctuations in size, job, location,
utilization of crews and the timing of crew moves

Quarterly Revenue ($MM)

NYSE Amex: GOK - A World of Opportunities, Revealed

Pro Forma Capitalization and Credit Statistics

Pro Forma Capitalization (9/30/09)

(1) Enterprise value as of 12/29/09 based on GOK stock price of $9.81. Stand alone based on 10.8 million shares outstanding. Pro forma shares outstanding based on 10.8 million basic shares outstanding + 0.8
million shares issued to Avista + 4.0 million shares issued to the public + 2.2 million shares issued to PGS.

(2) Represents revolver availability ($58.8M and $50M on stand alone and PF basis, respectively, less amount outstanding, plus cash on the balance sheet

NYSE Amex: GOK - A World of Opportunities, Revealed

Geokinetics and PGS Onshore Capital
Expenditures and Multi-Client Investments

u In 2009, Geokinetics began investment in the Multi-Client data library

u Both GOK and PGS Onshore capex has fallen in line with drop in oil prices

u PGS Onshore has invested heavily over the past several years to develop its multi-client library in the U.S.

Historical and Pro Forma Capital Expenditure and Multi-Client Investments

(US$ in millions)

NYSE Amex: GOK - A World of Opportunities, Revealed

Synergies Discussion

$10 million in

annual synergies

Cost

Revenue

Growth
Platforms

u After completion of the PGS Onshore acquisition, Geokinetics estimates preliminary annual synergies of $10
million

u Majority of the synergies to be driven by overlap and cost reductions

u Synergies will begin to be partially realized in Q2 of 2010

Procurement

Corporate marketing

Organizational overlap

Office overlap

Cross-sell

Market access

New technology commercialization

NYSE Amex: GOK - A World of Opportunities, Revealed

Thank you for your interest.

Investor Presentation

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