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

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8-K - 8K 3.24.10 - GEOKINETICS INC	form8k.htm
EX-99.1 - PRESS RELEASE - GEOKINETICS INC	exh99-1.htm

NYSE Amex: GOK - A World of Opportunities, Revealed

Howard Weil

Energy Conference

March 24, 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 3/17/2010)

• Exchange/Ticker: NYSE Amex: GOK

• Market Capitalization: $139.5 MM

• Enterprise Value: $475.7 MM*

Trading Data (at 3/17/2010)

• Common Shares O/S 17.7 MM

• Avg. Volume (90 day) 156,448 shs/day

• Institutional Ownership 75%

*Reflects Debt & Preferred Equity, Cash (including $122.8 million of Restricted Cash) as of 12/31/09.
Excludes the impact of long-term Restricted Cash, which was used to fund the cash portion of the
acquisition of PGS Onshore.

Institutional ownership as reported by Ipreo Bigdough as of 12/31/09.

NYSE Amex: GOK - A World of Opportunities, Revealed

Geokinetics Overview

u Provides onshore seismic data acquisition services by collecting two-dimensional (2D), three-
dimensional (3D), and multi-component seismic data on a contract basis for its customers.

u Offers extensive onshore capabilities, including:

§ mountain, jungle, marsh, swamp and shallow water environments

§ desert conditions

§ the environmentally sensitive terrain of the Arctic

u Expanded onshore multi-client library to over 6,000 square miles

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

Industry Dynamics

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

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

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

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 with E&P expenditures expected to
rise by 13% in 2010

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

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

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
(Includes Onshore and Offshore)

Seismic Crew Data Source: IHS Energy.

* Counts for the CIS are based on partial data. There are an estimated 340 crews currently
working in the CIS. Far East counts include only partial data for China and India.

u International seismic work
represented 77% of total market,
driven by NOCs and IOCs
primarily targeting oil

u Total working crew count in U.S.
was flat in March 2010, but
offshore work in GOM grew by
30% YOY.

u U.S. E&P spending in 2010
expected to increase 11%;
international E&P spending
expected to increase 10%, mostly
due to higher exploration capital
spending from NOCs(1)

u Geokinetics currently has working
crews in U.S., Canada, Africa,
Latin America and Far East.

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

Region	Mar-2009	Mar-2010	Change
U.S.	73	73	0
Canada	12	16	+4
U.S. & Canada	85	89	+4
Europe	35	32	-3
CIS*	47	46	-1
Latin America	36	35	-1
Africa	73	73	0
Middle East	34	34	0
Far East	72	70	-2
Outside U.S. & Canada	297	290	-7
World Total	382	379	-3

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		ü	ü	ü	ü	ü		ü	ü
Dawson		ü				ü			ü
Tidelands		ü	ü						ü
PGS	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

Key Differentiators of GOK Business Model

NYSE Amex: GOK - A World of Opportunities, Revealed

Significant Global Market Presence

Strong backlog of $378.2 million as of 12/31/09 *

§ International projects comprise 76% of backlog

§ Approximately 75% of international backlog is with NOCs or partnerships including NOCs

§ Most international business targeted to oil prospects

Geographic Revenue % Split

25%

52%

60%

83%

76%

100%

75%

48%

40%

17%

24%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005

2006

2007

2008

2009

12/31/09*

International

North America **

* Backlog is pro forma for the acquisition of PGS Onshore

** Going forward, North America is expected represent approximately 20 to
25% of revenues.

Backlog %

NYSE Amex: GOK - A World of Opportunities, Revealed

Proven International Operating Expertise

u Global presence - infrastructure / assets / people

§ Fully trained, local management / technicians available in key
markets

§ Expertise shared globally

§ Ability to mobilize crews to the most active regions worldwide, as
markets dictate, to maximize utilization

§ Crews can be moved easily at a minimal cost

§ Use of common equipment increases productivity and cost savings

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

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

§ Smaller jobs can be consolidated to minimize downtime

NYSE Amex: GOK - A World of Opportunities, Revealed

Multi-Region and International Presence

Canada

USA

Mexico

Egypt

Tunisia

Alaska

Brazil

Malaysia

Bangladesh

Angola

Cameroon

Colombia

Ecuador

Peru

Libya

Bolivia

Thailand

Trinidad

Gabon

NYSE Amex: GOK - A World of Opportunities, Revealed

Extensive Multi-Client Library

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) Upon completion of jobs In progress

NYSE Amex: GOK - A World of Opportunities, Revealed

PGS Onshore Acquisition Expanded Our
Scope and Scale

Recording channels

Vibroseis equipment

Crew capacity

Multi-client library sales

Pro-forma 2009 revenues

Pro-forma 2009 Adjusted EBITDA

Backlog (pro forma)

Employees

206,000

152

6,242 sq. miles

$711.1 million

$100.5 million

$378.2 million

8,119

(1)

As of December 31, 2009

(1) Upon completion of jobs In progress

Pro Forma 2009 includes estimated U.S. GAAP amounts for fourth quarter 2009 for PGS Onshore that are estimated off of the audited IFRS
amounts. Pro Forma 2009 Adjusted EBITDA excludes $1.3 million of one-time, non-recurring costs related to the PGS Onshore acquisition.

NYSE Amex: GOK - A World of Opportunities, Revealed

Acquisition Synergies are Accretive in 2010

$10 million in

annual synergies

Cost

Revenue

Growth
Platforms

u Geokinetics estimates preliminary annual synergies of at least $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

Strong Relationships with Diversified
Customer Base

Choice of Leading Operators - Geokinetics

u Long-standing relationships with major and independent oil and natural gas producers and NOCs
throughout the world

– Broad distribution of revenue across customer base

u No one customer represented more than 20% of total revenues in 2009

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 & Adjusted EBITDA Trends

$357.7

$474.6

$511.0

$753.4

$711.1

$34.4

$65.0

$88.3

$136.9

$100.5

$100

$200

$300

$400

$500

$600

$700

$800

2007A

2008A

2009A

2008 PF

2009 PF

Revenues

Adjusted EBITDA

Pro Forma 2009 includes estimated U.S. GAAP amounts for fourth quarter 2009 for PGS Onshore that are estimated off of the audited IFRS amounts.
Adjusted EBITDA excludes $3.2 million of one-time severance costs in 3Q07 related to CEO departure and restructuring of data processing segment. Actual
and Pro-Forma 2009 Adjusted EBITDA exclude $1.3M of one-time, non-recurring costs related to the PGS Onshore acquisition.

NYSE Amex: GOK - A World of Opportunities, Revealed

Quarterly Results

Quarterly earnings can be uneven

u Seasonality in operations

§ Canadian working season and thaw

§ Rainy season in Latin America

§ Monsoon season and whale migrations in Far East / Australia

u Budgeting cycle of international companies

Note: Adjusted EBITDA excludes $3.2 million of one-time severance costs in 3Q07 related to CEO departure and restructuring of data processing
segment and $1.3 million in 4Q09 of one-time, non-recurring costs related to the PGS Onshore acquisition.

Quarterly Revenue ($MM)

NYSE Amex: GOK - A World of Opportunities, Revealed

Pro Forma Capitalization and Credit Statistics

Pro Forma Capitalization (12/31/09)

(1) Enterprise value as of 12/31/09 based on GOK stock price of $7.92. Actual based on 15.3 million shares outstanding. Pro Forma shares outstanding
based on 15.3 million basic shares outstanding + 0.2 million shares issued to the public + 2.2 million shares issued to PGS.

(2) Represents revolver availability of $58.1 million and $50 million on Actual and Pro Forma basis, respectively , less amount outstanding, plus unrestricted
cash on the balance sheet.

(1)

(2)

Actual

Pro Forma

($ millions)

2009

Adjustments

2009

Cash, Cash Equivalents and Restricted Cash, current

$132.0

($74.2)

$57.8

Debt

Existing Credit Facility

45.9

(45.9)

Capital Leases and Vendor Financing

24.7

(20.8)

3.9

New Senior Secured Credit Facility

Senior Secured Notes, Net of Discount

294.3

Total Debt

364.9

298.2

Mandatorily Redeemable Series C Pfd. Stock

32.1

Total Debt including Series C Pfd. Stock

397.0

330.3

Mezzanine Equity

71.2

Shareholders' Equity

150.4

19.7

170.1

Total Book Capitalization

$618.6

$571.6

Total Debt/Book Capitalization

59.0%

52.2%

Enterprise Value

$457.4

$483.5

Liquidity (Cash + credit facility available)

$16.1

$107.8

(66.7)

NYSE Amex: GOK - A World of Opportunities, Revealed

Capital Expenditures and Multi-Client
Investments

u Geokinetics has spent over $200 million in the last three years to upgrade its US crews, expand recording and seabed
capacity and enter the OBC market

u In 2009, Geokinetics began investment into a Multi-Client data library

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

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

Historical and Pro Forma Capital Expenditure and Multi-Client Investments

(US$ in millions)

$32.7

$94.7

$77.1

$38.8

$113.1

$51.4

$10.7

$62.9

$14.2

$49.5

$175.9

$65.6

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

$160.0

$180.0

$200.0

2006

2007

2008

2009

2008 PF

2009 PF

Capital Expenditures

Multi-Client Investment

NYSE Amex: GOK - A World of Opportunities, Revealed

Thank you for your interest.

Investor Presentation

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