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 on a senior basis 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, having also been a guarantor under a credit facility, is released from its guarantee obligations under a credit facility and does not guarantee any indebtedness of the Company or the Guarantor Subsidiaries.

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, 2018 and December 31, 2017, the consolidating condensed statements of operations, statements of comprehensive income (loss) and statements of cash flows for the three months ended March 31, 2018 and March 31, 2017 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, 2018

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations			Consolidated Total
ASSETS
Cash and cash equivalents	$	—		$	57,692		$	23,282		$	—		$	80,974
Receivables
Trade, net	—			7,884			1,802			—			9,686
Notes and other	2,357			47			128			—			2,532
Due from Seitel Holdings, Inc.	—			1,193			—			—			1,193
Intercompany receivables (payables)	(75,762		)	73,360			2,402			—			—
Investment in subsidiaries	416,025			425,304			633			(841,962		)	—
Net seismic data library	—			53,444			15,503			—			68,947
Net property and equipment	—			598			924			—			1,522
Prepaid expenses, deferred charges and other	135			1,649			1,098			—			2,882
Intangible assets, net	900			—			—			—			900
Goodwill	—			107,688			77,400			—			185,088
Deferred income taxes	—			56			145			—			201
TOTAL ASSETS	$	343,655		$	728,915		$	123,317		$	(841,962	)	$	353,925
LIABILITIES AND STOCKHOLDER’S EQUITY
LIABILITIES
Accounts payable and accrued liabilities	$	10,945		$	3,927		$	3,281		$	—		$	18,153
Income taxes payable	15			37			—			—			52
Senior Notes	248,484			—			—			—			248,484
Obligations under capital leases	—			—			1,259			—			1,259
Deferred revenue	—			11,430			1,435			—			12,865
Deferred income taxes	—			—			904			—			904
TOTAL LIABILITIES	259,444			15,394			6,879			—			281,717
STOCKHOLDER’S EQUITY
Common stock	—			—			—			—			—
Additional paid-in capital	400,594			—			—			—			400,594
Parent investment	—			764,105			156,784			(920,889		)	—
Retained deficit	(316,383		)	(50,584		)	(27,967		)	78,551			(316,383		)
Accumulated other comprehensive loss	—			—			(12,379		)	376			(12,003		)
TOTAL STOCKHOLDER’S EQUITY	84,211			713,521			116,438			(841,962		)	72,208
TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY	$	343,655		$	728,915		$	123,317		$	(841,962	)	$	353,925

CONSOLIDATING CONDENSED BALANCE SHEET

As of December 31, 2017

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations			Consolidated Total
ASSETS
Cash and cash equivalents	$	—		$	43,380		$	27,201		$	—		$	70,581
Receivables
Trade, net	—			19,183			4,147			—			23,330
Notes and other	2,357			151			109			—			2,617
Due from Seitel Holdings, Inc.	—			1,191			—			—			1,191
Intercompany receivables (payables)	(75,641		)	73,244			2,397			—			—
Investment in subsidiaries	411,423			425,736			702			(837,861		)	—
Net seismic data library	—			57,703			16,839			—			74,542
Net property and equipment	—			593			1,006			—			1,599
Prepaid expenses, deferred charges and other	31			1,164			647			—			1,842
Intangible assets, net	900			—			—			—			900
Goodwill	—			107,688			79,555			—			187,243
Deferred income taxes	—			51			152			—			203
TOTAL ASSETS	$	339,070		$	730,084		$	132,755		$	(837,861	)	$	364,048
LIABILITIES AND STOCKHOLDER’S EQUITY
LIABILITIES
Accounts payable and accrued liabilities	$	5,007		$	9,421		$	5,770		$	—		$	20,198
Income taxes payable	—			12			2,765			—			2,777
Senior Notes	248,142			—			—			—			248,142
Obligations under capital leases	—			—			1,363			—			1,363
Deferred revenue	—			11,568			1,527			—			13,095
Deferred income taxes	—			—			1,359			—			1,359
TOTAL LIABILITIES	253,149			21,001			12,784			—			286,934
STOCKHOLDER’S EQUITY
Common stock	—			—			—			—			—
Additional paid-in capital	400,592			—			—			—			400,592
Parent investment	—			764,105			156,782			(920,887		)	—
Retained deficit	(314,671		)	(55,022		)	(27,652		)	82,674			(314,671		)
Accumulated other comprehensive loss	—			—			(9,159		)	352			(8,807		)
TOTAL STOCKHOLDER’S EQUITY	85,921			709,083			119,971			(837,861		)	77,114
TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY	$	339,070		$	730,084		$	132,755		$	(837,861	)	$	364,048

CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS

For the Three Months Ended March 31, 2018

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations			Consolidated Total
REVENUE	$	—		$	16,855		$	3,221		$	(587	)	$	19,489
EXPENSES:
Depreciation and amortization	—			7,172			3,139			—			10,311
Cost of sales	—			280			1			(264		)	17
Selling, general and administrative	130			4,669			1,231			(323		)	5,707
	130			12,121			4,371			(587		)	16,035
INCOME (LOSS) FROM OPERATIONS	(130		)	4,734			(1,150		)	—			3,454
Interest income (expense), net	(6,211		)	52			105			—			(6,054		)
Foreign currency exchange gains (losses)	—			(1		)	643			—			642
Other income	—			9			—			—			9
Income (loss) before income taxes and equity in income (loss) of subsidiaries	(6,341		)	4,794			(402		)	—			(1,949		)
Provision (benefit) for income taxes	—			41			(87		)	—			(46		)
Equity in income (loss) of subsidiaries	4,438			(315		)	—			(4,123		)	—
NET INCOME (LOSS)	$	(1,903	)	$	4,438		$	(315	)	$	(4,123	)	$	(1,903	)

CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS)

For the Three Months Ended March 31, 2018

(In thousands)



	Parent			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Consolidating Eliminations			Consolidated Total
Net income (loss)	$	(1,903	)	$	4,438	$	(315	)	$	(4,123	)	$	(1,903	)
Foreign currency translation adjustments	—			—		(3,220		)	24			(3,196		)
Comprehensive income (loss)	$	(1,903	)	$	4,438	$	(3,535	)	$	(4,099	)	$	(5,099	)

CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS

For the Three Months Ended March 31, 2017

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations			Consolidated Total
REVENUE	$	—		$	13,802		$	7,134		$	(341	)	$	20,595
EXPENSES:
Depreciation and amortization	—			16,116			6,160			(13		)	22,263
Cost of sales	—			10			14			(14		)	10
Selling, general and administrative	123			4,627			1,223			(327		)	5,646
	123			20,753			7,397			(354		)	27,919
LOSS FROM OPERATIONS	(123		)	(6,951		)	(263		)	13			(7,324		)
Interest expense, net	(5,874		)	(321		)	(15		)	—			(6,210		)
Foreign currency exchange losses	—			—			(51		)	—			(51		)
Loss before income taxes and equity in loss of subsidiaries	(5,997		)	(7,272		)	(329		)	13			(13,585		)
Benefit for income taxes	—			(2		)	(204		)	—			(206		)
Equity in loss of subsidiaries	(7,382		)	(125		)	—			7,507			—
NET LOSS	$	(13,379	)	$	(7,395	)	$	(125	)	$	7,520		$	(13,379	)

CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS)

For the Three Months Ended March 31, 2017

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations		Consolidated Total
Net loss	$	(13,379	)	$	(7,395	)	$	(125	)	$	7,520	$	(13,379	)
Foreign currency translation adjustments	—			—			711			111		822
Comprehensive income (loss)	$	(13,379	)	$	(7,395	)	$	586		$	7,631	$	(12,557	)

CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS

For the Three Months Ended March 31, 2018

(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	$	(186	)	$	19,910		$	630		$	—	$	20,354
Cash flows from investing activities:
Cash invested in seismic data	—			(5,320		)	(4,424		)	—		(9,744		)
Cash paid to acquire property and equipment	—			(89		)	(11		)	—		(100		)
Advances to Seitel Holdings, Inc.	—			(2		)	—			—		(2		)
Net cash used in investing activities	—			(5,411		)	(4,435		)	—		(9,846		)
Cash flows from financing activities:
Principal payments on capital lease obligations	—			—			(69		)	—		(69		)
Intercompany transfers	186			(186		)	—			—		—
Net cash provided by (used in) financing activities	186			(186		)	(69		)	—		(69		)
Effect of exchange rate changes	—			(1		)	(45		)	—		(46		)
Net increase (decrease) in cash and cash equivalents	—			14,312			(3,919		)	—		10,393
Cash and cash equivalents at beginning of period	—			43,380			27,201			—		70,581
Cash and cash equivalents at end of period	$	—		$	57,692		$	23,282		$	—	$	80,974

CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS

For the Three Months Ended March 31, 2017

(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	$	(215	)	$	8,513		$	5,836		$	—	$	14,134
Cash flows from investing activities:
Cash invested in seismic data	—			(3,747		)	(2,001		)	—		(5,748		)
Cash paid to acquire property and equipment	—			(98		)	(38		)	—		(136		)
Advances to Seitel Holdings, Inc.	—			(3		)	—			—		(3		)
Net cash used in investing activities	—			(3,848		)	(2,039		)	—		(5,887		)
Cash flows from financing activities:
Principal payments on capital lease obligations	—			—			(53		)	—		(53		)
Intercompany transfers	215			(215		)	—			—		—
Net cash provided by (used in) financing activities	215			(215		)	(53		)	—		(53		)
Effect of exchange rate changes	—			—			60			—		60
Net increase in cash and cash equivalents	—			4,450			3,804			—		8,254
Cash and cash equivalents at beginning of period	—			47,971			8,026			—		55,997
Cash and cash equivalents at end of period	$	—		$	52,421		$	11,830		$	—	$	64,251