"Seitel's Second Quarter Seismic Revenue Increases 48% Over 1Q00, Lead By a 97% Increase in Library Sales"
Thursday July 13, 7:49 am Eastern Time
Company Press Release
SOURCE: Seitel, Inc.
Highlights - 2Q00 total seismic revenue is expected to exceed $33 million, an increase of approximately 48% over first quarter 2000. - Library sales are projected at $22 million, a record quarter and an increase of 97% over first quarter 2000. - A fundamental change is unfolding with rising seismic capital spending having a positive impact on seismic revenue.
HOUSTON, July 13 /PRNewswire/ -- Seitel, Inc. (NYSE: SEI - news), announced today that second quarter 2000 seismic revenue is expected to exceed $33 million, an increase of approximately 48% over first quarter 2000 results. Strong second quarter revenue was driven by projected record library sales of $22 million, a 97% increase in seismic data library sales over first quarter 2000 results. Total revenue is expected to exceed $39 million including oil and gas operations. Based on higher than expected revenue, earnings from operations before the restructuring charge will exceed the current consensus estimates of $0.12 per share.
Paul Frame, President and Chief Executive Officer stated, ``a fundamental change has occurred in the seismic business over the past 45 days which has caused Seitel to experience rising demand for its seismic products and services. Rising commodity prices over the past 12 months have lead to increased levels of seismic capital expenditures. Our clients are working to replace and grow reserves while commodity prices remain strong. However, they are doing so in a 'prospect short' environment caused by the lack of seismic capital spending over the past 18 months. Library sales are expected to show continued strength as the oil and gas industry is forced to rely on previously shot seismic data to explore. Seismic data is the primary tool used to create drillable prospects.'' Seitel, throughout the downturn, added to its seismic data library through data initiation (pre-funded, multi-client shoots) and through the acquisition of existing data libraries, which created the largest publicly marketed seismic data library company in North America.
``The recent increase in inquiries for new data initiation combined with rising library sales has made us optimistic about revenue growth for the remainder of the year,'' stated Mr. Frame. Seitel expects to report second quarter earnings during the first week of August 2000.
Seitel markets its proprietary seismic information/technology to more than 400 petroleum companies, selling data from its library and creating new seismic surveys under multi-client (``group shoot'') projects. It also selectively participates in oil and natural gas exploration and development programs with over 100 petroleum-industry partners.
Statements in this release about the future outlook related to Seitel involve known and unknown risks and uncertain ties, which may cause the Company's actual results to differ materially from expected results. While the Company believes its forecasting assumptions are reason able, there are factors that are hard to predict and influenced by economic and other conditions that are beyond the Company's control. These risk factors are detailed in Seitel's filings with the Securities and Exchange Commission, including its most recent Form 10-K Annual Report, a copy of which may be obtained from the Company without charge.
SOURCE: Seitel, Inc.
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