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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
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| X | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- ----- EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1998
--------------
OR
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| | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- ----- EXCHANGE ACT OF 1934
For the transition period to .
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Commission File Number 0-14488
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SEITEL, INC.
(Exact name of registrant as specified in charter)
DELAWARE 76-0025431
-------- ----------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification Number)
50 Briar Hollow Lane
West Building, 7th Floor
HOUSTON, TEXAS 77027
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(Address of principal (Zip Code)
executive offices)
(713) 881-8900
--------------
(Registrant's telephone number, including area code)
NOT APPLICABLE
--------------
Former name, former address and former fiscal year,
if changed since last report.
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
---- ----
Yes X No
---- ----
As of May 11, 1998 there were 22,556,682 shares of the Company's common stock,
par value $.01 per share, outstanding.
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- --------------------------------------------------------------------------------
<PAGE>
INDEX
Page
----
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets as of
March 31, 1998 (Unaudited) and December 31, 1997.................. 3
Consolidated Statements of Income and
Comprehensive Income (Unaudited) for the
Three Months Ended March 31, 1998 and 1997........................ 4
Consolidated Statements of Stockholders' Equity (Unaudited)
for the Three Months Ended March 31, 1998......................... 5
Consolidated Statements of Cash Flows (Unaudited)
for the Three Months Ended March 31, 1998 and 1997................ 6
Notes to Consolidated Interim Financial Statements................ 8
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations........... 9
PART II. OTHER INFORMATION................................................. 12
<PAGE>
<TABLE>
SEITEL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
<CAPTION>
(Unaudited)
March 31, December 31,
1998 1997
--------- ---------
<S> <C> <C>
ASSETS
Cash and equivalents $ 2,729 $ 4,881
Receivables
Trade 45,083 44,563
Notes and other 1,726 2,121
Net data bank 194,349 180,936
Net oil and gas properties 120,344 112,915
Net other property and equipment 2,438 2,349
Investment in affiliate 15,227 15,054
Prepaid expenses, deferred charges and other assets 3,174 2,863
--------- ---------
TOTAL ASSETS $ 385,070 $ 365,682
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued liabilities $ 36,248 $ 28,014
Payable to affiliate 11,100 12,500
Income taxes payable 2,120 1,242
Debt
Senior Notes 75,000 75,000
Line of credit 18,000 15,000
Term loans 375 477
Obligations under capital leases 66 89
Contingent payables 274 274
Deferred income taxes 19,406 18,050
Deferred revenue 10,234 7,763
--------- ---------
TOTAL LIABILITIES 172,823 158,409
--------- ---------
CONTINGENCIES AND COMMITMENTS
STOCKHOLDERS' EQUITY
Preferred stock, par value $.01 per share; authorized
5,000,000 shares; none issued -- --
Common stock, par value $.01 per share; authorized
50,000,000 shares; issued and outstanding
22,553,682 and 22,548,408 at March 31, 1998
and December 31,1997, respectively 226 225
Additional paid-in capital 128,488 128,406
Retained earnings 87,607 82,742
Treasury stock, 175,818 shares at cost at
March 31, 1998 and December 31, 1997 (2,977) (2,977)
Notes receivable from officers and employees (1,109) (1,109)
Accumulated other comprehensive income (loss) 12 (14)
--------- ---------
TOTAL STOCKHOLDERS' EQUITY 212,247 207,273
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 385,070 $ 365,682
========= =========
</TABLE>
The accompanying notes are an integral
part of these consolidated financial
statements.
<PAGE>
<TABLE>
SEITEL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) (In
thousands, except per share amounts)
<CAPTION>
Three Months Ended
March 31,
----------------------
1998 1997
-------- --------
<S> <C> <C>
REVENUE $ 30,927 $ 27,219
EXPENSES
Depreciation, depletion and amortization 15,156 10,108
Cost of sales 1,129 5,042
Selling, general and administrative expenses 5,950 4,718
-------- --------
22,235 19,868
-------- --------
INCOME FROM OPERATIONS 8,692 7,351
Interest expense, net (995) (1,039)
Equity in earnings of affiliate 41 --
-------- --------
Income before provision for income taxes 7,738 6,312
Provision for income taxes 2,873 2,228
-------- --------
NET INCOME 4,865 4,084
Other comprehensive income, net of tax:
Foreign currency translation adjustments,
net of income tax expense of $8 and $0 26 (38)
-------- --------
Comprehensive income $ 4,891 $ 4,046
======== ========
Net income per share:
Basic $ .22 $ .20
======== ========
Diluted $ .21 $ .19
======== ========
Weighted average number of common and common equivalent shares:
Basic 22,552 20,736
======== ========
Diluted 22,968 21,746
======== ========
</TABLE>
The accompanying notes are an integral
part of these consolidated financial
statements.
<PAGE>
<TABLE>
SEITEL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(In thousands, except share amounts)
<CAPTION>
Notes
Receivable
from Accumulated
Common Stock Additional Treasury Stock Officers Other
-------------------- Paid-In Retained ------------------ & Comprehensive
Shares Amount Capital Earnings Shares Amount Employees Income
---------- ------ --------- -------- -------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Balance, December 31, 1996 10,362,102 $ 104 $ 105,544 $ 51,185 (409) $ (4) $ (1,205) $ 17
Net proceeds from issuance
of common stock 912,472 8 17,318 -- -- -- --
Two-for-one stock split 11,273,834 113 (113) -- (409) -- -- --
Tax reduction from exercise
of stock options -- -- 5,657 -- -- -- -- --
Treasury stock purchased -- -- -- -- (175,000) (2,973) -- --
Payments received on notes
receivable from officers
and employees -- -- -- -- -- -- 96 --
Foreign currency translation
adjustment -- -- -- -- -- -- -- (31)
Net income -- -- -- 31,557 -- -- -- --
---------- ----- --------- -------- -------- ------- --------- ------
Balance, December 31, 1997 22,548,408 225 128,406 82,742 (175,818) (2,977) (1,109) (14)
Net proceeds from
issuance of
common stock 5,274 1 82 -- -- -- -- --
Foreign currency translation
adjustment -- -- -- -- -- -- -- 26
Net income -- -- -- 4,865 -- -- -- --
---------- ----- --------- -------- -------- ------- --------- ------
Balance, March 31, 1998
(unaudited) 22,553,682 $ 226 $ 128,488 $ 87,607 (175,818) $(2,977) $ (1,109) $ 12
========== ===== ========= ======== ======== ======= ========= ======
</TABLE>
The accompanying notes are an integral
part of these consolidated financial
statements.
<PAGE>
<TABLE>
SEITEL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
<CAPTION>
Three Months Ended
March 31,
----------------------
1998 1997
-------- --------
<S> <C> <C>
Cash flows from operating activities:
Cash received from customers $ 33,809 $ 34,695
Cash paid to suppliers and employees (2,651) (14,822)
Interest paid (298) (323)
Interest received 33 136
Income taxes paid (646) (40)
-------- --------
Net cash provided by operating activities 30,247 19,646
-------- --------
Cash flows from investing activities:
Cash invested in seismic data (23,435) (14,910)
Cash invested in oil and gas properties (11,593) (8,059)
Cash paid to acquire property and equipment (299) (7,067)
Cash from disposal of property and equipment -- 28
Collections on loans made -- 154
-------- --------
Net cash used in investing activities (35,327) (29,854)
-------- --------
Cash flows from financing activities:
Borrowings under line of credit agreement 6,000 27,000
Principal payments under line of credit (3,000) (22,000)
Borrowings under term loans -- 7,564
Principal payments on term loans (102) (678)
Principal payments under capital lease obligations (23) (363)
Proceeds from issuance of common stock 84 255
Costs of debt and equity transactions (1) (2)
-------- --------
Net cash provided by financing activities 2,958 11,776
-------- --------
Effect of exchange rate changes (30) (84)
-------- --------
Net increase (decrease) in cash and equivalents (2,152) 1,484
Cash and cash equivalents at beginning of period 4,881 3,340
-------- --------
Cash and equivalents at end of period $ 2,729 $ 4,824
======== ========
</TABLE>
The accompanying notes are an integral
part of these consolidated financial
statements.
<PAGE>
<TABLE>
SEITEL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited), continued
(In thousands)
<CAPTION>
Three Months Ended
March 31,
----------------------
1998 1997
-------- --------
<S> <C> <C>
Reconciliation of net income to net cash
provided by operating activities:
Net income $ 4,865 $ 4,084
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation, depletion and amortization 15,156 10,485
Deferred income tax provision 1,356 1,114
Equity in earnings of affiliate (41) --
Amortization of deferred revenue -- (2,253)
Discount on note receivable -- (26)
Gain on sale of property and equipment -- (16)
Decrease (increase) in receivables (113) 8,278
Increase in other assets (350) (6,240)
Increase in accounts payable and other liabilities 9,374 4,220
-------- --------
Total adjustments 25,382 15,562
-------- --------
Net cash provided by operating activities $ 30,247 $ 19,646
======== ========
Supplemental schedule of non-cash investing activities:
Capital lease obligations incurred $ -- $ 300
======== ========
</TABLE>
The accompanying notes are an integral
part of these consolidated financial
statements.
<PAGE>
SEITEL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited)
March 31, 1998
NOTE A-BASIS OF PRESENTATION
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim financial
information and with the instructions of Regulation S-X. Accordingly, they do
not include all of the information and notes required by generally accepted
accounting principles for complete financial statements. In the opinion of
management, all adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included. Certain reclassifications
have been made to the amounts in the prior year's financial statements to
conform to the current year's presentation. Operating results for the three
months ended March 31, 1998 are not necessarily indicative of the results that
may be expected for the year ending December 31, 1998. For further information,
refer to the financial statements and notes thereto for the year ended December
31, 1997.
In accordance with Statement of Financial Accounting Standards ("SFAS") No.
130, "Reporting Comprehensive Income," the Company has reported comprehensive
income for the quarters ended March 31, 1998 and 1997. Accumulated other
comprehensive income consists of foreign currency translation adjustments.
NOTE B-EARNINGS PER SHARE
In accordance with SFAS No. 128, "Earnings per Share," basic earnings per
share is computed based on the weighted average shares of common stock
outstanding during the periods. Diluted earnings per share is computed based on
the weighted average shares of common stock plus the assumed issuance of common
stock for all potentially diluted securities. Earnings per share computations to
reconcile basic and diluted net income for the three months ended March 31, 1998
and 1997 consist of the following (in thousands except per share amounts):
<TABLE>
<CAPTION>
Three Months Ended
March 31,
----------------------
1998 1997
-------- --------
<S> <C> <C>
Net income $ 4,865 $ 4,084
======== ========
Basic weighted average shares 22,552 20,736
Effect of dilutive securities: (1)<F1>
Options and warrants 416 1,010
-------- --------
Diluted weighted average shares 22,968 21,746
======== ========
Per share income:
Basic $ .22 $ .20
Diluted $ .21 $ .19
- ------------------
<FN>
(1)<F1> A weighted average quarter-to-date number of options and warrants to
purchase 2,468,000 and 176,000 shares of common stock were outstanding
during the first quarter of 1998 and 1997, respectively, but were not
included in the computation of diluted per share income because their
exercise prices were greater than the average market price of the
common shares.
</FN>
</TABLE>
<PAGE>
NOTE C-DATA BANK
Costs incurred in the creation of proprietary seismic data, including the
direct and incremental costs of Company personnel engaged in project management
and design, are capitalized. Seismic data costs are amortized for each project
in the proportion that its revenue for a period relates to management's estimate
of its ultimate revenue. Since inception, management has established guidelines
regarding its annual charge for amortization. Under these guidelines, 90% of the
cost incurred in the creation of proprietary seismic data is amortized within
five years of inception for two-dimensional seismic data and within seven years
of inception for three-dimensional data, and the final 10% is amortized on a
straight-line basis over fifteen years. Costs of existing seismic data libraries
purchased by the Company are fully amortized within ten years from date of
purchase. On a periodic basis, the carrying value of seismic data is compared to
its estimated future revenue and, if appropriate, is reduced to its estimated
net realizable value.
NOTE D-OIL AND GAS PROPERTIES
The Company accounts for its oil and gas exploration and production
activities using the full-cost method of accounting. Under this method, all
costs associated with acquisition, exploration and development of oil and gas
reserves are capitalized, including directly related overhead costs, and
interest costs related to its unevaluated properties and certain properties
under development which are not currently being amortized. For the three months
ended March 31, 1998 and 1997, exploration and development related overhead
costs of $421,000 and $322,000, respectively, have been capitalized to oil and
gas properties. For the three months ended March 31, 1998 and 1997, interest
costs of $608,000 and $479,000, respectively, have been capitalized to oil and
gas properties.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
-----------------------------------------------------------
RESULTS OF OPERATIONS
- ---------------------
Total revenue was $30,927,000 and $27,219,000 in the first quarters of 1998
and 1997, respectively, representing an increase of 14%. Revenue primarily
consists of revenue generated from the marketing of seismic data and oil and gas
production. Additionally, the first quarter of 1997 includes revenue of
$4,900,000 related to proprietary seismic data acquisition services performed by
Eagle Geophysical, Inc. ("Eagle") which was spun-off on August 11, 1997.
Revenue from the marketing of seismic data increased from $14,382,000
during the first quarter of 1997 to $26,316,000 during the first quarter of
1998. The increase is primarily attributable to an increase in demand for
high-resolution seismic data, which is being used increasingly in oil and gas
exploration and development efforts.
Oil and gas revenue decreased from $7,937,000 during the first quarter of
1997 to $4,611,000 during the first quarter of 1998. The decrease in oil and gas
revenue was caused by both lower production volumes and prices in the 1998
quarter. The production decline from certain of the Company's shallow,
short-lived producing properties has not yet been offset by production from new
wells coming on-line. First quarter 1998 production volumes were essentially
flat with the fourth quarter of 1997 volumes. Net volume and price information
for the Company's oil and gas production for the first quarters of 1998 and 1997
is summarized in the following table:
Quarter Ended
March 31,
----------------------
1998 1997
-------- --------
Natural gas volumes (mmcf) 1,357 1,949
Average natural gas price ($/mcf) $ 2.40 $ 3.09
Crude oil/condensate volumes (mbbl) 93 116
Average crude oil/condensate price ($/bbl) $ 13.67 $ 15.45
<PAGE>
Depreciation, depletion and amortization consists primarily of data bank
amortization and depletion of oil and gas properties. Data bank amortization
increased from $5,898,000 during the first quarter of 1997 to $11,972,000 during
the first quarter of 1998. As a percentage of revenue from licensing seismic
data, data bank amortization was 46% and 43% for the first quarters of 1998 and
1997, respectively. These changes between periods are primarily due to the mix
of sales of 2D and 3D data amortized at varying percentages based on each data
program's current and expected future revenue stream.
Depletion of oil and gas properties was $3,597,000 for the first quarter of
1997 compared to $2,975,000 for the first quarter of 1998, which amounted to
$1.36 and $1.55, respectively, per mcfe of gas produced during such periods. The
increase in the rate reflects the amount of exploration and development costs
incurred increasing at a higher rate than the proven reserve base.
Cost of sales consists of expenses associated with oil and gas production
and seismic resale support services, as well as geophysical services in the
first quarter of 1997. The decrease in cost of sales from $5,042,000 for the
first quarter of 1997 to $1,129,000 for the first quarter of 1998 is primarily
due to the first quarter 1997 including cost of sales associated with
geophysical services of $3,625,000 whereas in 1998 there are none due to the
spin-off of Eagle in 1997. Oil and gas production costs amounted to $.55 per
mcfe of gas produced in the first quarter of 1998 compared to $.49 per mcfe in
1997.
The Company's selling, general and administrative expenses increased from
$4,718,000 during the first quarter of 1997 to $5,950,000 during the first
quarter of 1998 primarily as a result of variable expenses related to the
increased volume of business and the addition of employees to meet the demands
of the increased level of activities. As a percentage of total revenue, these
expenses were 17% in the first quarter of 1997 and 19% in the first quarter of
1998.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
On March 16, 1998, the Company increased its $50,000,000 unsecured
revolving line of credit facility to $75,000,000. The facility bears interest at
a rate determined by the ratio of the Company's debt to cash flow from
operations. Pursuant to the interest rate pricing structure, funds can currently
be borrowed at LIBOR plus 3/4%, the bank's prevailing prime rate, or the sum of
the Federal Funds effective rate for such day plus 1/2%. The facility matures on
March 16, 2001. As of May 11, 1998, the balance outstanding on the revolving
line of credit amounted to $36,000,000 bearing an interest rate of 6.44%.
On December 28, 1995, the Company completed a private placement of three
series of unsecured Senior Notes totaling $75 million. The Company
contemporaneously issued its Series A Notes and Series B Notes, which total
$52.5 million and bear interest at a fixed rate of 7.17%. On April 9, 1996, the
Company issued its Series C Notes, which total $22.5 million and bear interest
at a fixed rate of 7.48%. The Series A Notes mature on December 30, 2001, and
require annual principal payments of $8.333 million beginning December 30, 1999.
The Series B and Series C Notes mature on December 30, 2002, and require
combined annual principal payments of $10 million beginning December 30, 1998.
Interest on all series of the notes is payable semi-annually on June 30 and
December 30.
The Company may offer from time to time in one or more series (i) unsecured
debt securities, which may be senior or subordinated, (ii) preferred stock, par
value $0.01 per share, and (iii) common stock, par value $.01 per share, or any
combination of the foregoing, up to an aggregate of $41,041,600 pursuant to an
effective "shelf" registration statement filed with the Securities and Exchange
Commission.
From July 1995 to April 1997, the Company and two of its wholly-owned
subsidiaries obtained four separate three-year term loans totaling $1,077,000.
Two of the loans bear interest at the rate of 8.413%, and two at the rate of
7.9%. The proceeds were used for the purchase of certain property and equipment,
which secures the debt. Monthly principal and interest payments total
approximately $34,000. The balance outstanding on the loans at May 11, 1998, was
$334,000.
<PAGE>
The Company owns 1,520,000 shares of Eagle common stock. As of March 31,
1998, the market value of the Company's remaining equity interest in Eagle was
$24,510,000, based on the March 31, 1998 closing price of $16.125 per share as
quoted by NASDAQ. These shares are subject to certain trading restrictions.
From January 1, 1998, through May 11, 1998, the Company received $111,000
from the exercise of common stock purchase warrants and options and the
Company's 401(k) stock purchases.
During December 1997, the Company repurchased 175,000 shares of its common
stock in the open market at a cost of $2,973,000, pursuant to a stock repurchase
program authorized by the Board of Directors on December 12, 1997. The Board has
authorized expenditures of up to $25 million towards the repurchase of its
common stock.
During the first three months of 1998, gross seismic data bank additions
and capitalized oil and gas exploration and development costs amounted to
$25,386,000 and $10,404,000, respectively. These capital expenditures, as well
as taxes, interest expenses, cost of sales and general and administrative
expenses, were funded by operations and borrowings under the Company's revolving
line of credit.
Currently, the Company anticipates capital expenditures for the remainder
of 1998 to total approximately $131 million. Such expenditures include
approximately $105 million for the creation of proprietary seismic data, and
approximately $26 million for oil and gas exploration and development efforts.
The Company believes its current cash balances, revenues from operating sources
and proceeds from the exercise of common stock purchase warrants and options,
combined with its available revolving line of credit and project financing where
applicable, should be sufficient to fund the 1998 capital expenditures, along
with expenditures for operating and general and administrative expenses.
Additionally, the Company could arrange for additional debt or equity financing
during 1998; however, there can be no assurance that the Company would be able
to accomplish any such debt or equity financing on satisfactory terms.
Recent Accounting Pronouncements
- --------------------------------
In June 1997, the Financial Accounting Standards Board issued SFAS No. 131,
"Disclosures about Segments of an Enterprise and Related Information." Under the
new standard, companies will be required to report certain information about
operating segments in consolidated statements. Operating segments will be
determined based on the method by which management organizes its business for
making operating decisions and assessing performance. The standard also requires
that companies report certain information about their products and services, the
geographic areas in which they operate, and their major customers. SFAS No. 131
is effective for financial statements for periods beginning after December 15,
1997.
The American Institute of Certified Public Accountants has issued Statement
of Position ("SOP") 98-5, "Reporting on the Costs of Start-Up Activities." Under
this SOP, all costs of start-up activities and organizational costs are to be
expensed as incurred. SOP 98-5 is effective for fiscal years beginning after
December 15, 1998, although earlier implementation is permitted. As of March 31,
1998, the Company had not adopted this SOP; however, the Company anticipates
that the application of this SOP will not have a material effect on its
consolidated financial statements.
<PAGE>
Information Regarding Forward Looking Statements
- ------------------------------------------------
This Quarterly Report on Form 10-Q includes forward looking statements
within the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. Although the Company believes that its
expectations are based on reasonable assumptions, it can give no assurance that
its goals will be achieved. Important factors that could cause actual results to
differ materially from those in the forward looking statements herein include,
but are not limited to, changes in the exploration budgets of the Company's
seismic data and related services customers, actual customer demand for the
Company's seismic data and related services, the extent of the Company's success
in acquiring oil and gas properties and in discovering, developing and producing
reserves, the timing and extent of changes in commodity prices for natural gas,
crude oil and condensate and natural gas liquids and conditions in the capital
markets and equity markets during the periods covered by the forward looking
statements.
PART II - OTHER INFORMATION
---------------------------
Items 1. through 6. Not applicable.
- -------------------
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SEITEL, INC.
Dated: May 13, 1998 /s/ Paul A. Frame
-----------------------------------
Paul A. Frame
President
Dated: May 13, 1998 /s/ Debra D. Valice
-----------------------------------
Debra D. Valice
Chief Financial Officer
Dated: May 13, 1998 /s/ Marcia H. Kendrick
-----------------------------------
Marcia H. Kendrick
Chief Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1998
<CASH> 2,729
<SECURITIES> 0
<RECEIVABLES> 47,445
<ALLOWANCES> 636
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 162,786<F2>
<DEPRECIATION> 40,004
<TOTAL-ASSETS> 385,070
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 93,441
0
0
<COMMON> 226
<OTHER-SE> 212,021
<TOTAL-LIABILITY-AND-EQUITY> 385,070
<SALES> 30,927
<TOTAL-REVENUES> 30,927
<CGS> 1,129
<TOTAL-COSTS> 1,129
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 995
<INCOME-PRETAX> 7,738
<INCOME-TAX> 2,873
<INCOME-CONTINUING> 4,865
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,865
<EPS-PRIMARY> .22
<EPS-DILUTED> .21
<FN>
<F1> The Company does not present a classified balance sheet; therefore, current
assets and current liabilities are not reflected in the Company's financial
statement.
<F2> PP&E does not include seismic data bank assets with a cost of $399,306,000
and related accumulated amortization of $204,957,000.
</FN>
</TABLE>
