Seismic Spending Surge Indicates Market Shift for Oil and Gas Industry

Seismic spending by oil and gas companies has surged in the past month, prompting Seitel officials to forecast a significant increase in revenue and earnings. According to the company, its second-quarter seismic revenue will exceed $33 million, a 48% increase from the first quarter. This upward trend is attributed to the industry's "prospect-poor" situation and crew shortages, which are expected to sustain the current market shift. Seitel's decision to resume new prefunded seismic shoots, halted last year due to market conditions, is also expected to contribute to the company's revenue growth.

Key Takeaways:

Seitel's second-quarter seismic revenue is expected to exceed $33 million, a 48% increase from the first quarter.
The company projects a record $22 million in revenue from the sale of library seismic records, a 97% increase from last quarter.
About $12 million of the revenue from library seismic records came within the past four weeks.
Seitel's total revenue is expected to exceed $39 million, beating current estimates.
Earnings from operations before the restructuring charge are projected to exceed 12[cent]/share.
Seitel has resumed new prefunded seismic shoots three weeks ago, which will contribute to revenue growth in the fourth quarter.
The oil and gas industry is facing a "prospect-poor" situation and crew shortages, making the current market shift sustainable.

Statistics:

Second-quarter seismic revenue: $33 million (48% increase from the first quarter)
Revenue from library seismic records: $22 million (97% increase from last quarter)
Revenue contribution from library seismic records in the past four weeks: $12 million
Total revenue: $39 million (exceeding current estimates)
Earnings from operations before the restructuring charge: 12[cent]/share (expected to meet or exceed)

Sources:

Seitel officials
Herald-Tribune