SUPPLEMENTAL GUARANTORS CONSOLIDATING CONDENSED FINANCIAL INFORMATION

On March 20, 2013, the Company completed a private placement of 9½% Senior Notes in the aggregate principal amount of $250.0 million. The Company’s payment obligations under the 9½% Senior Notes are jointly and severally guaranteed by substantially all of the Company’s significant 100% owned U.S. subsidiaries (“Guarantor Subsidiaries”). All subsidiaries of the Company that do not guarantee the 9½% Senior Notes are referred to as Non-Guarantor Subsidiaries.

The indenture governing the 9½% Senior Notes provides that the guarantees by the Guarantor Subsidiaries will be released in the following customary circumstances: (i) upon a sale or other disposition, whether by merger, consolidation or otherwise, of the equity interests of that guarantor to a person that is not the Company or a restricted subsidiary of the Company; (ii) the guarantor sells all or substantially all of its assets to a person that is not the Company or a restricted subsidiary of the Company; (iii) the guarantor is properly designated as an unrestricted subsidiary or ceases to be a restricted subsidiary; (iv) upon legal defeasance of the 9½% Senior Notes or satisfaction and discharge of the indenture governing the 9½% Senior Notes; (v) the guarantor becomes an immaterial subsidiary or (vi) the guarantor is released from its guarantee obligations under the Credit Facility.

The consolidating condensed financial statements are presented below and should be read in connection with the condensed consolidated financial statements of the Company. Separate financial statements of the Guarantor Subsidiaries are not presented because (i) the Guarantor Subsidiaries are wholly-owned and have fully and unconditionally guaranteed the 9½% Senior Notes on a joint and several basis and (ii) the Company’s management has determined such separate financial statements are not material to investors.

The following consolidating condensed financial information presents the consolidating condensed balance sheets as of March 31, 2016 and December 31, 2015, and the consolidating condensed statements of operations, statements of comprehensive income (loss) and statements of cash flows for the three months ended March 31, 2016 and March 31, 2015 of (a) the Company; (b) the Guarantor Subsidiaries; (c) the Non-Guarantor Subsidiaries; (d) elimination entries; and (e) the Company, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries on a consolidated basis.

Investments in subsidiaries are accounted for under the equity method. The principal elimination entries eliminate investments in subsidiaries, intercompany balances, intercompany transactions and intercompany sales.

CONSOLIDATING CONDENSED BALANCE SHEET

As of March 31, 2016

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations			Consolidated Total
ASSETS
Cash and cash equivalents	$	—		$	55,206		$	1,829		$	—		$	57,035
Receivables
Trade, net	—			6,680			1,092			—			7,772
Notes and other	—			7			1,687			—			1,694
Due from Seitel Holdings, Inc.	—			1,167			—			—			1,167
Intercompany receivables (payables)	(28,816		)	31,533			(2,717		)	—			—
Investment in subsidiaries	412,589			414,620			601			(827,810		)	—
Net seismic data library	—			120,694			33,182			(78		)	153,798
Net property and equipment	—			1,101			1,342			—			2,443
Prepaid expenses, deferred charges and other	145			1,943			366			—			2,454
Intangible assets, net	900			2,811			842			—			4,553
Goodwill	—			107,688			76,940			—			184,628
Deferred income taxes	—			66			—			—			66
TOTAL ASSETS	$	384,818		$	743,516		$	115,164		$	(827,888	)	$	415,610
LIABILITIES AND STOCKHOLDER’S EQUITY
LIABILITIES
Accounts payable and accrued liabilities	$	10,946		$	10,841		$	5,839		$	—		$	27,626
Senior Notes	245,975			—			—			—			245,975
Obligations under capital leases	—			—			1,721			—			1,721
Deferred revenue	—			21,997			2,136			—			24,133
Deferred income taxes	—			—			1,037			—			1,037
TOTAL LIABILITIES	256,921			32,838			10,733			—			300,492
STOCKHOLDER’S EQUITY
Common stock	—			—			—			—			—
Additional paid-in capital	400,527			—			—			—			400,527
Parent investment	—			764,105			156,432			(920,537		)	—
Retained deficit	(272,630		)	(53,427		)	(38,983		)	92,410			(272,630		)
Accumulated other comprehensive loss	—			—			(13,018		)	239			(12,779		)
TOTAL STOCKHOLDER’S EQUITY	127,897			710,678			104,431			(827,888		)	115,118
TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY	$	384,818		$	743,516		$	115,164		$	(827,888	)	$	415,610

CONSOLIDATING CONDENSED BALANCE SHEET

As of December 31, 2015

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations			Consolidated Total
ASSETS
Cash and cash equivalents	$	—		$	51,192		$	1,483		$	—		$	52,675
Receivables
Trade, net	—			12,459			2,371			—			14,830
Notes and other	—			3			1,315			—			1,318
Due from Seitel Holdings, Inc.	—			1,156			—			—			1,156
Intercompany receivables (payables)	(29,144		)	31,537			(2,393		)	—			—
Investment in subsidiaries	420,547			419,499			692			(840,738		)	—
Net seismic data library	—			125,253			36,180			(70		)	161,363
Net property and equipment	—			1,273			1,330			—			2,603
Prepaid expenses, deferred charges and other	139			1,737			307			—			2,183
Intangible assets, net	900			3,613			1,015			—			5,528
Goodwill	—			107,688			72,104			—			179,792
Deferred income taxes	—			39			—			—			39
TOTAL ASSETS	$	392,442		$	755,449		$	114,404		$	(840,808	)	$	421,487
LIABILITIES AND STOCKHOLDER’S EQUITY
LIABILITIES
Accounts payable and accrued liabilities	$	5,007		$	13,253		$	5,390		$	—		$	23,650
Senior Notes	245,696			—			—			—			245,696
Obligations under capital leases	—			—			1,661			—			1,661
Deferred revenue	—			23,525			2,378			—			25,903
Deferred income taxes	—			—			2,361			—			2,361
TOTAL LIABILITIES	250,703			36,778			11,790			—			299,271
STOCKHOLDER’S EQUITY
Common stock	—			—			—			—			—
Additional paid-in capital	400,505			—			—			—			400,505
Parent investment	—			764,105			156,395			(920,500		)	—
Retained deficit	(258,766		)	(45,434		)	(34,102		)	79,536			(258,766		)
Accumulated other comprehensive loss	—			—			(19,679		)	156			(19,523		)
TOTAL STOCKHOLDER’S EQUITY	141,739			718,671			102,614			(840,808		)	122,216
TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY	$	392,442		$	755,449		$	114,404		$	(840,808	)	$	421,487

CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS

For the Three Months Ended March 31, 2016

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations			Consolidated Total
REVENUE	$	—		$	10,474		$	1,819		$	(343	)	$	11,950
EXPENSES:
Depreciation and amortization	—			8,910			6,204			(13		)	15,101
Cost of sales	—			15			7			—			22
Selling, general and administrative	213			4,087			1,987			(328		)	5,959
	213			13,012			8,198			(341		)	21,082
LOSS FROM OPERATIONS	(213		)	(2,538		)	(6,379		)	(2		)	(9,132		)
Interest expense, net	(5,656		)	(607		)	(93		)	—			(6,356		)
Foreign currency exchange gains	—			—			173			—			173
Other income	—			6			—			—			6
Loss before income taxes and equity in loss of subsidiaries	(5,869		)	(3,139		)	(6,299		)	(2		)	(15,309		)
Benefit for income taxes	—			(27		)	(1,418		)	—			(1,445		)
Equity in loss of subsidiaries	(7,995		)	(4,881		)	—			12,876			—
NET LOSS	$	(13,864	)	$	(7,993	)	$	(4,881	)	$	12,874		$	(13,864	)

CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS)

For the Three Months Ended March 31, 2016

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations		Consolidated Total
Net loss	$	(13,864	)	$	(7,993	)	$	(4,881	)	$	12,874	$	(13,864	)
Foreign currency translation adjustments	—			—			6,661			83		6,744
Comprehensive income (loss)	$	(13,864	)	$	(7,993	)	$	1,780		$	12,957	$	(7,120	)

CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS

For the Three Months Ended March 31, 2015

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations			Consolidated Total
REVENUE	$	—		$	11,763		$	12,898		$	(335	)	$	24,326
EXPENSES:
Depreciation and amortization	—			12,119			10,974			(13		)	23,080
Cost of sales	—			78			22			—			100
Selling, general and administrative	304			4,379			1,966			(335		)	6,314
	304			16,576			12,962			(348		)	29,494
LOSS FROM OPERATIONS	(304		)	(4,813		)	(64		)	13			(5,168		)
Interest expense, net	(5,460		)	(711		)	(136		)	—			(6,307		)
Foreign currency exchange losses	—			(3		)	(1,456		)	—			(1,459		)
Loss before income taxes and equity in loss of subsidiaries	(5,764		)	(5,527		)	(1,656		)	13			(12,934		)
Benefit for income taxes	(2,461		)	(2,419		)	(408		)	—			(5,288		)
Equity in loss of subsidiaries	(4,343		)	(1,248		)	—			5,591			—
NET LOSS	$	(7,646	)	$	(4,356	)	$	(1,248	)	$	5,604		$	(7,646	)

CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE LOSS

For the Three Months Ended March 31, 2015

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations		Consolidated Total
Net loss	$	(7,646	)	$	(4,356	)	$	(1,248	)	$	5,604	$	(7,646	)
Foreign currency translation adjustments	—			—			(11,518		)	130		(11,388		)
Comprehensive loss	$	(7,646	)	$	(4,356	)	$	(12,766	)	$	5,734	$	(19,034	)

CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS

For the Three Months Ended March 31, 2016

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations			Consolidated Total
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	(194	)	$	10,195		$	703		$	(15	)	$	10,689
Cash flows from investing activities:
Cash invested in seismic data	—			(5,915		)	(486		)	15			(6,386		)
Cash paid to acquire property and equipment	—			(75		)	—			—			(75		)
Cash from sale of property and equipment	—			14			—			—			14
Advances to Seitel Holdings, Inc.	—			(11		)	—			—			(11		)
Net cash used in investing activities	—			(5,987		)	(486		)	15			(6,458		)
Cash flows from financing activities:
Principal payments on capital lease obligations	—			—			(48		)	—			(48		)
Intercompany transfers	194			(194		)	—			—			—
Net cash provided by (used in) financing activities	194			(194		)	(48		)	—			(48		)
Effect of exchange rate changes	—			—			177			—			177
Net increase in cash and cash equivalents	—			4,014			346			—			4,360
Cash and cash equivalents at beginning of period	—			51,192			1,483			—			52,675
Cash and cash equivalents at end of period	$	—		$	55,206		$	1,829		$	—		$	57,035

CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS

For the Three Months Ended March 31, 2015

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations		Consolidated Total
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	(533	)	$	33,258		$	12,340		$	—	$	45,065
Cash flows from investing activities:
Cash invested in seismic data	—			(15,922		)	(6,978		)	—		(22,900		)
Cash paid to acquire property and equipment	—			(104		)	(3		)	—		(107		)
Advances to Seitel Holdings, Inc.	—			(3		)	—			—		(3		)
Net cash used in investing activities	—			(16,029		)	(6,981		)	—		(23,010		)
Cash flows from financing activities:
Principal payments on capital lease obligations	—			(8		)	(51		)	—		(59		)
Intercompany transfers	533			9,967			(10,500		)	—		—
Net cash provided by (used in) financing activities	533			9,959			(10,551		)	—		(59		)
Effect of exchange rate changes	—			(3		)	(1,062		)	—		(1,065		)
Net increase (decrease) in cash and cash equivalents	—			27,185			(6,254		)	—		20,931
Cash and cash equivalents at beginning of period	—			48,525			10,650			—		59,175
Cash and cash equivalents at end of period	$	—		$	75,710		$	4,396		$	—	$	80,106