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 June 30, 2018 and December 31, 2017, the consolidating condensed statements of operations and statements of comprehensive income (loss) for the three and six months ended June 30, 2018 and June 30, 2017 and the consolidating condensed statements of cash flows for the six months ended June 30, 2018 and 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 June 30, 2018

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations			Consolidated Total
ASSETS
Cash and cash equivalents	$	—		$	52,178		$	22,975		$	—		$	75,153
Receivables
Trade, net	—			8,986			882			—			9,868
Notes and other	2,357			25			201			—			2,583
Due from Seitel Holdings, Inc.	—			1,198			—			—			1,198
Intercompany receivables (payables)	(87,965		)	85,938			2,027			—			—
Investment in subsidiaries	412,751			422,925			653			(836,329		)	—
Net seismic data library	—			50,753			13,841			—			64,594
Net property and equipment	—			565			861			—			1,426
Prepaid expenses, deferred charges and other	211			2,640			2,064			—			4,915
Intangible assets, net	900			—			—			—			900
Goodwill	—			105,170			73,810			—			178,980
Deferred income taxes	—			53			166			—			219
TOTAL ASSETS	$	328,254		$	730,431		$	117,480		$	(836,329	)	$	339,836
LIABILITIES AND STOCKHOLDER’S EQUITY
LIABILITIES
Accounts payable and accrued liabilities	$	5,007		$	6,320		$	2,513		$	—		$	13,840
Income taxes payable	12			21			—			—			33
Senior Notes	248,834			—			—			—			248,834
Obligations under capital leases	—			—			1,166			—			1,166
Deferred revenue	—			13,843			1,343			—			15,186
Deferred income taxes	—			—			748			—			748
TOTAL LIABILITIES	253,853			20,184			5,770			—			279,807
STOCKHOLDER’S EQUITY
Common stock	—			—			—			—			—
Additional paid-in capital	400,595			—			—			—			400,595
Parent investment	—			764,105			156,784			(920,889		)	—
Retained deficit	(326,194		)	(53,858		)	(30,326		)	84,184			(326,194		)
Accumulated other comprehensive loss	—			—			(14,748		)	376			(14,372		)
TOTAL STOCKHOLDER’S EQUITY	74,401			710,247			111,710			(836,329		)	60,029
TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY	$	328,254		$	730,431		$	117,480		$	(836,329	)	$	339,836

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 June 30, 2018

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations			Consolidated Total
REVENUE	$	—		$	11,634		$	1,029		$	(339	)	$	12,324
EXPENSES:
Depreciation and amortization	—			6,291			1,790			—			8,081
Impairment of goodwill	—			2,518			1,978			—			4,496
Cost of sales	—			52			55			(19		)	88
Selling, general and administrative	130			3,984			1,013			(320		)	4,807
	130			12,845			4,836			(339		)	17,472
LOSS FROM OPERATIONS	(130		)	(1,211		)	(3,807		)	—			(5,148		)
Interest income (expense), net	(6,407		)	261			114			—			(6,032		)
Foreign currency exchange gains	—			—			470			—			470
Other income	—			41			22			—			63
Loss before income taxes and equity in loss of subsidiaries	(6,537		)	(909		)	(3,201		)	—			(10,647		)
Provision (benefit) for income taxes	—			6			(842		)	—			(836		)
Equity in loss of subsidiaries	(3,274		)	(2,359		)	—			5,633			—
NET LOSS	$	(9,811	)	$	(3,274	)	$	(2,359	)	$	5,633		$	(9,811	)

CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE LOSS

For the Three Months Ended June 30, 2018

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations		Consolidated Total
Net loss	$	(9,811	)	$	(3,274	)	$	(2,359	)	$	5,633	$	(9,811	)
Foreign currency translation adjustments	—			—			(2,369		)	—		(2,369		)
Comprehensive loss	$	(9,811	)	$	(3,274	)	$	(4,728	)	$	5,633	$	(12,180	)

CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS

For the Three Months Ended June 30, 2017

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations			Consolidated Total
REVENUE	$	—		$	19,291		$	5,010		$	(601	)	$	23,700
EXPENSES:
Depreciation and amortization	—			18,366			3,615			(12		)	21,969
Cost of sales	—			317			(8		)	(276		)	33
Selling, general and administrative	137			4,010			1,183			(325		)	5,005
	137			22,693			4,790			(613		)	27,007
INCOME (LOSS) FROM OPERATIONS	(137		)	(3,402		)	220			12			(3,307		)
Interest expense, net	(6,039		)	(145		)	(3		)	—			(6,187		)
Foreign currency exchange gains (losses)	—			2			(36		)	—			(34		)
Other income	—			—			96			—			96
Income (loss) before income taxes and equity in income (loss) of subsidiaries	(6,176		)	(3,545		)	277			12			(9,432		)
Provision for income taxes	—			1			203			—			204
Equity in income (loss) of subsidiaries	(3,460		)	74			—			3,386			—
NET INCOME (LOSS)	$	(9,636	)	$	(3,472	)	$	74		$	3,398		$	(9,636	)

CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS)

For the Three Months Ended June 30, 2017

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Consolidating Eliminations		Consolidated Total
Net income (loss)	$	(9,636	)	$	(3,472	)	$	74	$	3,398	$	(9,636	)
Foreign currency translation adjustments	—			—			2,569		—		2,569
Comprehensive income (loss)	$	(9,636	)	$	(3,472	)	$	2,643	$	3,398	$	(7,067	)

CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS

For the Six Months Ended June 30, 2018

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations			Consolidated Total
REVENUE	$	—		$	28,489		$	4,250		$	(926	)	$	31,813
EXPENSES:
Depreciation and amortization	—			13,463			4,929			—			18,392
Impairment of goodwill	—			2,518			1,978			—			4,496
Cost of sales	—			332			56			(283		)	105
Selling, general and administrative	260			8,653			2,244			(643		)	10,514
	260			24,966			9,207			(926		)	33,507
INCOME (LOSS) FROM OPERATIONS	(260		)	3,523			(4,957		)	—			(1,694		)
Interest income (expense), net	(12,618		)	313			219			—			(12,086		)
Foreign currency exchange gains (losses)	—			(1		)	1,113			—			1,112
Other income	—			50			22			—			72
Income (loss) before income taxes and equity in income (loss) of subsidiaries	(12,878		)	3,885			(3,603		)	—			(12,596		)
Provision (benefit) for income taxes	—			47			(929		)	—			(882		)
Equity in income (loss) of subsidiaries	1,164			(2,674		)	—			1,510			—
NET INCOME (LOSS)	$	(11,714	)	$	1,164		$	(2,674	)	$	1,510		$	(11,714	)

CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS)

For the Six Months Ended June 30, 2018

(In thousands)



	Parent			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Consolidating Eliminations		Consolidated Total
Net income (loss)	$	(11,714	)	$	1,164	$	(2,674	)	$	1,510	$	(11,714	)
Foreign currency translation adjustments	—			—		(5,589		)	24		(5,565		)
Comprehensive income (loss)	$	(11,714	)	$	1,164	$	(8,263	)	$	1,534	$	(17,279	)

CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS

For the Six Months Ended June 30, 2017

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations			Consolidated Total
REVENUE	$	—		$	33,093		$	12,144		$	(942	)	$	44,295
EXPENSES:
Depreciation and amortization	—			34,482			9,775			(25		)	44,232
Cost of sales	—			327			6			(290		)	43
Selling, general and administrative	260			8,637			2,406			(652		)	10,651
	260			43,446			12,187			(967		)	54,926
LOSS FROM OPERATIONS	(260		)	(10,353		)	(43		)	25			(10,631		)
Interest expense, net	(11,913		)	(466		)	(18		)	—			(12,397		)
Foreign currency exchange gains (losses)	—			2			(87		)	—			(85		)
Other income	—			—			96			—			96
Loss before income taxes and equity in loss of subsidiaries	(12,173		)	(10,817		)	(52		)	25			(23,017		)
Benefit for income taxes	—			(1		)	(1		)	—			(2		)
Equity in loss of subsidiaries	(10,842		)	(51		)	—			10,893			—
NET LOSS	$	(23,015	)	$	(10,867	)	$	(51	)	$	10,918		$	(23,015	)

CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS)

For the Six Months Ended June 30, 2017

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations		Consolidated Total
Net loss	$	(23,015	)	$	(10,867	)	$	(51	)	$	10,918	$	(23,015	)
Foreign currency translation adjustments	—			—			3,280			111		3,391
Comprehensive income (loss)	$	(23,015	)	$	(10,867	)	$	3,229		$	11,029	$	(19,624	)

CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS

For the Six Months Ended June 30, 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	$	(12,127	)	$	30,125		$	937		$	—	$	18,935
Cash flows from investing activities:
Cash invested in seismic data	—			(9,154		)	(4,837		)	—		(13,991		)
Cash paid to acquire property and equipment	—			(141		)	(32		)	—		(173		)
Cash from sale of seismic data and property and equipment	—			32			26			—		58
Advances to Seitel Holdings, Inc.	—			(7		)	—			—		(7		)
Net cash used in investing activities	—			(9,270		)	(4,843		)	—		(14,113		)
Cash flows from financing activities:
Principal payments on capital lease obligations	—			—			(138		)	—		(138		)
Intercompany transfers	12,127			(12,056		)	(71		)	—		—
Net cash provided by (used in) financing activities	12,127			(12,056		)	(209		)	—		(138		)
Effect of exchange rate changes	—			(1		)	(111		)	—		(112		)
Net increase (decrease) in cash and cash equivalents	—			8,798			(4,226		)	—		4,572
Cash and cash equivalents at beginning of period	—			43,380			27,201			—		70,581
Cash and cash equivalents at end of period	$	—		$	52,178		$	22,975		$	—	$	75,153

CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS

For the Six Months Ended June 30, 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	$	(12,220	)	$	17,498		$	15,576		$	—	$	20,854
Cash flows from investing activities:
Cash invested in seismic data	—			(9,491		)	(6,610		)	—		(16,101		)
Cash paid to acquire property and equipment	—			(149		)	(101		)	—		(250		)
Cash from sale of seismic data and property and equipment	—			—			3			—		3
Advances to Seitel Holdings, Inc.	—			(8		)	—			—		(8		)
Net cash used in investing activities	—			(9,648		)	(6,708		)	—		(16,356		)
Cash flows from financing activities:
Principal payments on capital lease obligations	—			—			(112		)	—		(112		)
Intercompany transfers	12,220			(12,220		)	—			—		—
Net cash provided by (used in) financing activities	12,220			(12,220		)	(112		)	—		(112		)
Effect of exchange rate changes	—			—			460			—		460
Net increase (decrease) in cash and cash equivalents	—			(4,370		)	9,216			—		4,846
Cash and cash equivalents at beginning of period	—			47,971			8,026			—		55,997
Cash and cash equivalents at end of period	$	—		$	43,601		$	17,242		$	—	$	60,843