Seitel Announces Sale of Its Canadian Seismic Data Library and Previews Fourth Quarter and Full Year 2018 Results

Seitel, Inc. (the “Company” or “Seitel”), a leading provider of onshore
seismic data to the oil and gas industry in North America, today
announced the sale of its Canadian seismic data library and provided
certain preliminary unaudited financial results for the fourth quarter
and full year 2018.

Sale of Canadian Seismic Data Library

On January 15, 2019, Seitel entered into a definitive agreement to sell
its 100% ownership in Seitel Canada Ltd., the primary asset of which is
our 2D and 3D seismic data library in Canada, to Pulse Seismic Inc. for
a purchase price of approximately CDN $53 million (approximately $40
million USD at current FX rates), plus an earn out equal to 50% of the
cash resales generated from the assets acquired by Pulse over the two
years following closing, up to a maximum of CDN $5 million. The
transaction closed the same day. The Canadian library consists of
approximately 14,100 square miles of 3D seismic data and approximately
400,000 linear miles of 2D seismic data in Canada.

“Although it is difficult to exit a business that has been part of our
history for so many years, we are pleased to have gained financial
flexibility, which will allow us to focus our capital investment on our
core U.S. library that we believe will deliver the greatest value to our
clients,” commented Rob Monson, president and chief executive officer.

The Canadian seismic data library being sold contributed approximately
CDN $4.2 million (USD $3.2 million) to Seitel’s cash resales in 2018 and
approximately CDN $7.1 million (USD $5.5 million) to total revenue.

Preliminary Unaudited Fourth Quarter and Year-End
2018 Results

The Company is pleased to announce certain preliminary unaudited
financial results for the quarter and year ended December 31, 2018. The
preliminary financial results shown below include the results of Seitel
Canada Ltd.

Fourth Quarter Preliminary Highlights -

• The Company expects total revenue of approximately $41.0 million
  compared to $21.9 million in Q4 2017.
• The Company expects cash resales of approximately $35.3 million
  compared to $16.3 million in Q4 2017.
• The Company expects net cash provided by (used in) operating
  activities of approximately $3.7 million compared to $(3.9) million in
  Q4 2017.
• The Company expects Cash EBITDA of approximately $28.9 million
  compared to $12.2 million in Q4 2017.

Full Year Preliminary Highlights -

• The Company expects total revenue of approximately $95.0 million
  compared to $90.3 million in 2017.
• The Company expects cash resales of approximately $78.7 million
  compared to $59.7 million in 2017.
• The Company expects net cash provided by operating activities of
  approximately $35.3 million compared to $40.4 million in 2017.
• The Company expects Cash EBITDA of approximately $58.2 million
  compared to $41.5 million in 2017.

Cash resales represent new contracts for data licenses from our library
payable in cash and is a component of total revenue. A table summarizing
the components of Seitel’s revenue is included in this press release.

Cash EBITDA is a non-GAAP financial measure that represents cash
generated from licensing data from our seismic library net of recurring
cash operating expenses. A table reconciling Cash EBITDA to net cash
provided by (used in) operating activities is included in this press
release.

INFORMATION REGARDING PRELIMINARY UNAUDITED RESULTS

The preliminary estimated financial information contained in this press
release reflects management’s estimates based solely upon information
available to it as of the date of this press release and is not a
comprehensive statement of our financial results for the three months or
year ended December 31, 2018. The information presented above should not
be considered a substitute for full financial statements for the three
months and year ended December 31, 2018, once they become available and
should not be regarded as a representation by us or our management as to
our actual financial results for the periods indicated. We have not yet
finalized our financial statement close process for the quarter ended
December 31, 2018 or completed our year-end audit. In connection with
the completion of these activities, we may identify items that would
require us to make adjustments to our preliminary results described
above. As a result, our financial results could be different than as
indicated above and those differences could be material. Accordingly,
you should not place undue reliance upon these preliminary estimates.

CONFERENCE CALL

Seitel’s next conference call will be held after the release of its
year-end 2018 results. Should investors or analysts wish to contact the
Company, please feel free to contact Marcia Kendrick at the email
address or telephone number provided in this release.

ABOUT SEITEL

Seitel is a leading provider of onshore seismic data to the oil and gas
industry in the United States. Seitel’s data products and services are
critical in the exploration for and development of oil and gas reserves
by exploration and production companies. Seitel has ownership in an
extensive library of proprietary onshore and offshore seismic data that
it has accumulated since 1982 and that it licenses to a wide range of
exploration and production companies. Seitel believes that its library
of 3D onshore seismic data is one of the largest available for licensing
in the United States and includes leading positions in oil, liquids-rich
and natural gas unconventional plays as well as conventional areas.
Seitel has ownership in over 33,000 square miles of 3D onshore data,
over 10,000 square miles of 3D offshore data and over 600,000 linear
miles of 2D seismic data concentrated in the major active oil and gas
producing regions in the United States. Seitel has also expanded into
Mexico through the reprocessing of existing 2D seismic data for
licensing to oil and gas companies. Seitel serves a market which
includes over 1,500 companies in the oil and gas industry.

FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking statements” within the
meaning of the federal securities laws, which involve risks and
uncertainties. Statements contained in this press release about our
future outlook, prospects, strategies and plans, and about industry
conditions, demand for seismic services and the future economic life of
our seismic data are forward-looking, among others. All
statements that express belief, expectation, estimates or intentions, as
well as those that are not statements of historical fact, are
forward-looking. The words “believe,” “expect,” “anticipate,”
“estimate,” “project,” “propose,” “plan,” “target,” “foresee,” “should,”
“intend,” “may,” “will,” “would,” “could,” “potential” and similar
expressions are intended to identify forward-looking statements.
Forward-looking statements are not guarantees of future performance, but
represent our present belief, based on our current expectations and
assumptions, with respect to future events and their potential effect on
us. While we believe our expectations and assumptions are reasonable,
they involve risks and uncertainties beyond our control that could cause
the actual results or outcome to differ materially from the expected
results or outcome reflected in our forward-looking statements. Such
risks and uncertainties include, without limitation, actual customer
demand for our seismic data and related services, the timing and extent
of changes in commodity prices for natural gas, crude oil and condensate
and natural gas liquids, conditions in the capital markets during the
periods covered by the forward-looking statements, the effect of
economic conditions, our ability to obtain financing on satisfactory
terms if internally generated cash flows are insufficient to fund our
capital needs, the impact on our financial condition as a result of our
debt and our debt service, our ability to obtain and maintain normal
terms with our vendors and service providers, our ability to maintain
contracts that are critical to our operations, changes in the oil and
gas industry or the economy generally and changes in the capital
expenditure budgets of our customers. For additional information
regarding known material factors that could cause our actual results to
differ, please see our filings with the Securities and Exchange
Commission (“SEC”), including our Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K.

The forward-looking statements contained in this press release speak
only as of the date hereof and readers are cautioned not to place undue
reliance or project future results based on such forward-looking
statements or present or prior earnings levels. Except as required by
applicable law, we disclaim any duty to update or revise any
forward-looking statements, whether as a result of new information,
future events or any other reason. All forward-looking statements
attributable to Seitel, Inc. or any person acting on its behalf are
expressly qualified in their entirety by the cautionary statements
contained or referred to herein, in our Annual Report on Form 10-K, our
Quarterly Reports on Form 10-Q, our Current Reports on Form 8-K and
future reports filed with the SEC.

INFORMATION RELATED TO FINANCIAL MEASURES

We report our financial results in accordance with U.S. generally
accepted accounting principles (“GAAP”), but believe that certain
non-GAAP financial measures, such as cash EBITDA, provide useful
supplemental information to investors regarding the Company’s operating
and financial performance and are useful for period-over-period
comparisons. Non-GAAP financial measures should be considered as a
supplement to, and not as a substitute for, or superior to, the
financial measures prepared in accordance with GAAP. The non-GAAP
financial measure included in this press release is Cash EBITDA, for
which the most comparable GAAP measure is net cash provided by (used in)
operating activities. A reconciliation of the non-GAAP financial measure
to its most comparable GAAP measure is included at the end of this press
release.

(Tables to follow)

Components of Total Revenue

Cash resales represent new contracts for data licenses from our library,
including data currently in progress, payable in cash. We believe cash
resales are an important measure of our operating performance and are
useful in assessing overall industry and client activity.

The following table summarizes the components of Seitel's revenue (in
millions):

Reconciliation of Cash EBITDA to Net Cash Provided By (Used In)
Operating Activities

Cash EBITDA includes cash resales plus all other cash revenues other
than from data acquisitions, less cost of goods sold and cash selling,
general and administrative expenses (excluding severance and other
non-routine costs). We believe this measure is helpful in determining
the level of cash from operations we have available for debt service and
funding of capital expenditures (net of the portion funded or
underwritten by our customers).

The following is a quantitative reconciliation of Cash EBITDA, a
non-GAAP financial measure, to the most directly comparable GAAP
financial measure, net cash provided by (used in) operating activities
(in millions):

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