ION Geophysical's CEO Presents At Barclays 2012 CEO Energy/Power Conference (Transcript)

ION Geophysical Corporation (IO)

Barclays 2012 CEO Energy/Power Conference

September 5, 2012 7:45 a.m. ET

Executives

Brian Hanson - President and Chief Executive Officer

Presentation

Unidentified Speaker

Well, good morning everyone and welcome today to the 26 th Annual Barclays CEO Energy Conference. I hope everyone has found yesterday productive, I am sure today will be equally productive, if not more. So kicking off the presentations this morning is Brian Hanson, the CEO of ION Geophysical. Brian was named CEO in December of 2011, he previously served as the company's CFO from May 2006.

We like the seismic part of the business, we like ION’s stock which we think has considerable upside at the exploration cycle as it gains momentum. Prior to joining ION, Brian was with Fisher Scientific, Alliance Imaging, and Culligan Water Conditioning. Please welcome back to the CEO Energy Conference and speaking for the first time as CEO, Brian Hanson.

Brian Hanson

Thanks, James. It’s a pleasure to be here this morning to talk about ION. We have to get our necessary forward-looking statements disclosure out of the way. So today what I want to talk a little bit about is first, walkthrough a little bit of an overview on the company for those of you who are not familiar with ION. We are going to talk a little bit about the basis of our strategy and then we will cover some highlights for 2012. A quick snapshot of financial performance and then we can open it up for some Q&A.

So who we are? We are a technology company. Where we invest our money is in people, in developing R&D, what we are not is an asset heavy company. So we do that in order to become a leading provider of geophysical solutions to the industry and we do that through both developing equipment and services and bundling those in the execution of solutions for our oil company customers.

We were founded in 1968. We were originally Input/Output, which we rebranded in 2007 to ION Geophysical. We went public in ’92. We converted over to the New York Stock Exchange in ’94, our ticker is IO. We have approximately 1100 people in the world. We work in over 20 countries. And of those 1100 people, it’s a very highly technical mix. We have over 65% of the population of the company are technical people. And if you break those down you will find that we have over 200 people who are masters educated and a little over 80 PhDs in the business. So we are very much thought heavy in our company.

Our 2011 revenues were $450 million and we have quite a global presence for a little multinational of our size. We are literally located all over the world. We have processing centers in a number of locations including Calgary, Denver, Houston, Mexico, Trinidad, Brazil, London. We have opened new centers in India, Beijing and Cairo. We have a presence in Nigeria, Angola, Russia. So quite a footprint for a processing business. In addition, we have equipment manufacturing and service locations in both North America, Europe and we have an international headquarters in Dubai. So a pretty broad footprint.

To talk a little bit about the specific offerings that we have, first is our GXT branded business which is seismic data processing. Primarily GXT is a leading re-processor of data that typically already has been shot. Mostly have been shot by the large marine contractors in the industry. And where we focus our efforts in GXT is developing unique algorithms that really differentiate ourselves from other processing houses and try to really drive up the image or the resolution of the image for the oil companies.

In addition to that, our GeoVentures business has really developed a very successful offering around integrated geophysical programs. We have a broad spectrum of programs today. If you went back and turned back the clock and looked at that business in 2005 and 2006, it was primarily shooting 2D, large exploration type surveys in the Gulf of Mexico. And since then it’s expanded that BasinSPAN offering globally. And so now we have shot BasinSPANS all over the world in many of the hot basins, including off Brazil, East and West coast Africa, Australia, down in Indonesia, and have a very considerable offering in the arctic with program both in the Chukchi, the Beaufort off Greenland. And in addition we have shot in the Russian Arctic. In fact we got as close to 200 kilometers to the North Pole last year.

And coming out of that offering has been the development of quite a significant data library. So we have a very broad data library today that we can offer to oil companies as they are looking for information or data in specific areas of the world where we they want to get a little bit more understanding of the regional geology. In addition to that the GeoVentures business two year ago introduced their ResSCAN offering, and I will talk a little bit more about that. But that’s more on the development side of the house. It’s specific to shales and tight gas sand plays and it really is all about well optimization and completion techniques.

We have a survey design and software services business. Our Concept Systems business is really the operating system that’s used on marine seismic vessels today to shoot seismic. And today it’s located on over 65 high end vessels shooting marine seismic work. And in addition to that we are in the equipment business. So we have always been pioneers of the next generation of technology whether it’s been used on land or in marine. Our marine business is located in Harahan, Louisiana, and it has a broad spectrum of product offering from towed streamers to positioning devices used on the vessels, and a seabed offering.

Read the rest of this transcript for free on seekingalpha.com

More from Stocks

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Canopy Growth: First Cannabis Firm on the NYSE Fails to Generate Buzz

Canopy Growth: First Cannabis Firm on the NYSE Fails to Generate Buzz

PayPal Wants to Consolidate the World of Rewards Points

PayPal Wants to Consolidate the World of Rewards Points

Rising Oil Prices Will Be a Wash for U.S. Economy, JPMorgan Says

Rising Oil Prices Will Be a Wash for U.S. Economy, JPMorgan Says

Dow Tumbles as Trump Calls Off North Korea Summit

Dow Tumbles as Trump Calls Off North Korea Summit