Title of Presentation (Arial 28 pt Bold)

Disrupting Decision-making

Barclay’s CEO Energy-Power Conference

September 5, 2018

Disclaimers

2

Forward-Looking Statements

The information herein contains certain 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. These forward-looking statements may include information and other statements that

are not of historical fact. Actual results may vary materially from those described in these forward-looking statements. All forward-looking

statements reflect numerous assumptions and involve a number of risks and uncertainties. These risks and uncertainties include the risks

associated with the timing and development of ION Geophysical Corporation's products and services; pricing pressure; decreased

demand; changes in oil prices; and political, execution, regulatory, and currency risks. These risks and uncertainties also include risks

associated with the WesternGeco litigation and other related proceedings. We cannot predict the outcome of this litigation or the related

proceedings. For additional information regarding these various risks and uncertainties, including the WesternGeco litigation, see our

Form 10-K for the year ended December 31, 2017, filed on February 8, 2018. Additional risk factors, which could affect actual results, are

disclosed by the Company in its fillings with the Securities and Exchange Commission ("SEC"), including its Form 10-K, Form 10-Qs and

Form 8-Ks filed during the year. The Company expressly disclaims any obligation to revise or update any forward-looking statements.

Non-GAAP Financial Measures

This presentation contains certain non-GAAP financial measures. These measures should not be considered in isolation or as a

substitute for measures prepared in accordance with GAAP. These non-GAAP measures should be evaluated only in connection with our

GAAP results, including those in our Form 10-K. Reconciliations of these non-GAAP measures to the most directly comparable GAAP

measures are in the appendix.

ION at a Glance

50 years in business

23 years on the NYSE (ticker: IO)

$400B E&P market

$198M 2017 revenue

$64M 2017 Adjusted EBITDA

500 employees

8% revenues invested in R&D

500 patents and pending applications

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Delivering the power of data-driven decision-making

Technology leader with a history of innovation

Aligning offerings to select growing E&P and adjacent markets

Asset light with creative business models and high returns

HEADQUARTERS

HOUSTON,TEXAS

ABOUT

Please see the appendix for reconciliations to comparable GAAP measures.

At ION, we Deliver the Power of Data-driven Decision-making

4

Powering data-driven decisions>>

Improving E&P decision-making

Enhancing reservoir management

Optimizing offshore operations

We develop and leverage innovative technologies,

creating value through data capture, analysis and

optimization to enhance critical decision-making,

enabling superior returns.

ION is Organized into Three Business Segments

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E&P Technology & Services Operations OptimizationOcean Bottom

Integrated Technologies

Create digital data assets and

deliver services that improve

decision-making, mitigate risk and

maximize portfolio value.

Develop mission-critical subscription

offerings and engineering services

that enable operational control and

optimization.

Integrate ION’s advanced

technologies to accelerate data

capture and delivery for enhanced

reservoir decision-making, and

improved returns.

E&P Technology & Services

6



Create digital data assets and deliver services that improve

decision-making, mitigate risk and maximize portfolio value.

E&P Advisors

Provide technical, commercial and

strategic advice to evaluate and market

oil and gas opportunities/assets world-

wide, sharing in the value we create.

Imaging Services

Combine leading technologies and

experience to maximize image quality,

delivering enhanced subsurface

characterization.

Multi-client Data Library

Leverage world-class geoscience skills to

create global digital data assets that we

license to multiple E&P companies to

optimize their investment decisions.

Operations Optimization

7

Develop mission-critical subscription offerings and engineering

services that enable operational control and optimization.

Devices

Develop intelligent devices controlled by

our software to optimize operations.

Software

Leverage leading data integration

platform to control and optimize

operations in real-time.



Offshore Services

Our experts deliver in-field optimization

services, equipment maintenance and

training to get the most out of our offerings.

Ocean Bottom Integrated Technologies

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Integrate ION’s advanced

technologies to accelerate OBS

data capture and delivery for

enhanced reservoir decision-

making, and improved returns.



Growing, production-focused

$1B ocean bottom seismic

(OBS) market

4Sea system delivers step

change in image quality, cost,

QHSE and turnaround time

Asset light recurring revenue

business model shares in the

value our technology delivers

Where the E&P Life Cycle is Today

Higher oil prices improve cash flow

Cash flow growth allows increased investment

Higher reinvestment grows production

Prices drop, hurting cash flow

Cash flow declines, forces spending cuts

Cash flow growth allows increased investment

2015 2016 20172011 2012 2013 20142010 2018 20202019

Higher reinvestment grows production

Low reinvestment hurts production

Production growth outpaces demand

Landscape

Today

9 Sources: IHS, Morgan Stanley

Higher oil prices improve cash flow

Production undershoots demand

E&P market recovering: healthy global demand and moderated supply

Operational cash flow growth: provides opportunity for increased investment

Strong Demand Growth, Supply Increasingly ChallengedBy 2025, Rystad estimates 35 mbbl/d of new supply is required to meet demand

10

Global liquids*production

Million bbl/d

20

40

60

80

100

120

0

1980 1990 2000 2010

Global liquids

production 1980-2016Real decline

ForecastHistory

~1%

To meet demand in

2025, the industry

needs to achieve 10

mbbl/d net growth

50

25

25

Most will

come from

brownfields

New

fields

35 mbbl/d from

new fields

10

Replace

50

mmbbl/d

of decline

Infill,

workover

and

IOR**

Declin

era

tes

Future sources

Source: Rystad Energy *Liquids includes crude oil, condensate, NGLs and refinery gains; **IOR = increased oil recovery

• OPEC routinely

under producing

• Rising shale costs

and infrastructure

constraints

• After years of

over-supply, we

could be heading

for a supply crunch

Unsustainably Low Conventional Resource Replacement RatesIncreasing requirement to re-invest in conventional resources

11

0%

50%

100%

150%

2008 2010 2012 2014 2016 2018

Conventional RRR

0%

100%

200%

300%

400%

500%

600%

700%

2008 2010 2012 2014 2016 2018

Shale RRR

9%ShaleShort-cycled, low-costnewcomer

40%OPEC

51%ROWLong cycledand rational

Politically driven

behavior96.7

mmbbld

2017

Global Average RRR <100% since 2013 and 81% in 2017

Source: Rystad Energy

ION Programs Well Positioned for Upcoming License RoundsClients looking to replace reserves and restructure portfolios w/ lower cost resources

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Active Licensing Rounds

LEGEND

3D Programs

BasinSPAN

In Progress

ION DATA LIBRARY

ION programs are relevant to 63 of the 111 active or

anticipated offshore license rounds in 2018-2019.

Source: ION, July 2018

BasinSPAN Programs Value Proposition

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Represent an efficient investment in risk mitigation

– Frontier exploration / entering new basins

– Evaluating new acreage – farm-in opportunities

– Long term regional strategy

Access terms licensing round commitments

– 2D seismic:

$1 million to $20 million

– 3D seismic commitments:

$5 million to >$100 million

– Well commitments:

1 to 3 well commitments

$60 million to $150 million each

– Signing bonuses:

Tens to hundreds of millions of dollars

– Production sharing, tax, royalties

Regional

Basin

Knowledge

BasinSPAN Expl 2D HD 2D 3D Drilling

Risk

Cost

$500

$250

$750

$0

Trap,

Charge,

Reservoir

Risk

Risk

Risk

The Truth

Risk

HC

Volume &

Fluid Type

$200

$100

$50

$150

$0

$1,000

Risk

($ in

mill

ion

s)

Value of Knowledge

Multi-Client Data Library

ION’s rigorous project selection process yields multi-client data that

continues to generate revenue long after completion of the original project

14

($ in millions)

Note: Vintage year represents the year that a program was complete (year data went “on-the-shelf”)

0

50

100

150

200

250

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Vintage 2007 & Prior Vintage 2008 Vintage 2009 Vintage 2010 Vintage 2011 Vintage 2012

Vintage 2013 Vintage 2014 Vintage 2015 Vintage 2016 Vintage 2017 & WIP

E&P Technology & Services: Quality of RevenueBiggest driver of our business in the near-term

15

E&P Advisors

• Further penetration of consulting

services along with emergence of

success-based business models

• Consulting services 1.2-1.5X

• Success-based services 3-10X+

Multi-client Programs

• Earning 3-10X+ multiple on

asset investments

• Reprocessing and new

acquisition projects

• Growth engine near-term

Imaging Services

• Historically low margin business

with low cash generation

• Intentionally re-allocated resources

to support higher return businesses

• Proprietary work is high end,

keeping tools sharp

0

50

100

FY13 FY14 FY15 FY16 FY17

Imaging Services Revenue ($M)

0

5

10

15

20

FY16 FY17

E&P Advisors Revenue ($M)

Success-based Services Consulting Services

0

100

200

300

FY09 FY11 FY13 FY15 FY17

Multi-client Program Revenue ($M)

Multi-client 2D Example: Yucatan ProgramFirst Glimpse of Hydrocarbon Potential

Data has been selected from the UT data base (red lines –

approx. 9,300miles /15,000 kms) for “YucatánSPAN” and will be

incorporated into the GoM SPAN programs.

CHALLENGE

• It was becoming clear Mexico was going

to open up for international investment

and E&P companies needed to quickly

evaluate the potential of this area

SOLUTION

RESULTS

• Leveraged existing regional knowledge

base and data set in US Gulf of Mexico

• Integrated and reimaged 1970’s academic

data using our cutting-edge algorithms and

Gulf of Mexico expertise

• Generated $41M revenue in 2 years, >10X

return less royalty

• Unique insight gained from program was

used to drive ION’s Mexico strategy0

10

20

30

40

50

2013 2014 2015 2016

Yucatan Financials

Revenue

Existing ION Data

Yucatan Program

Mill

ion

s

16

Multi-client 3D Example: Campeche ProgramMoving Closer to the Reservoir

17




CHALLENGE

• Quickly and cost-effectively deliver 3D

seismic data insights prior to bid round

• Complex geology

• Competitive landscape

SOLUTION

RESULTS

• Reprocess 20 legacy data sets as a multi-

client product in unprecedented turnaround

time by leveraging ION’s unique and

proprietary software platform

• Imaging Services + E&P Advisors + Ventures

• Project size equivalent to South Carolina

• Data available for investment decisions

• Significant imaging uplift to inform E&P

investment decisions for multiple years

• Plan to exceed initial $60-80M revenue

projections, has long-term sales potential

Data processed by ION in partnership with Schlumberger

Campeche Program Offshore Mexico

ION proprietary imaging supported Talos’ >1B discovery

Campeche 3D

Reimaging Program

E&P Advisors Example: Tanzania License Round ManagementAttracting Maximum Investment

18

-

10

20

30

40

50

60

2012 2013 2014

Revenue




CHALLENGE

• Tanzanian government wanted to attract

maximum investment in an upcoming

license round

SOLUTION

RESULTS

• Leveraged our expertise and advisory

services to:

• evaluate data to recommend block

sizes, locations and commercial value

• prescribe and acquire additional data

• promote the license round

• 2 blocks carved out for Tanzania to operate

• 5 / 8 blocks awarded, generating significant

investment to Tanzania

• Generated $52M ION revenue from

Tanzania bid round package and program

sale, >3X returns less royalty

4th Tanzania

Offshore License

Round 2013-15

8 blocks on offer

Tanzania 4 & Bid Round Data Package Financials

Mill

ion

s

Exciting Opportunities in Data-Driven Decision Optimization

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ION >> Powering data-driven decisions

Broadened market:

Moved closer to the

reservoir, diversifying

into adjacent markets

Streamlined business:

Reduced costs and

focused on offerings with

highest return potential

Exploration recovery:

Impending resumption

in spending to replace

conventional resources

Scalable model:

Fixed costs with high

leverage and potential

to generate EBITDA

Evolution of the Cycle

21 Source: Bloomberg, Morgan Stanley

Initial Rebalancing (H2 2016):

• Inventory levels reduce

• Oil prices start to improve

Recovery (2017)

• Balance sheets start to repair

• E&P spending increases

Seismic spend will

be delayed relative to

E&P spend recovery

Key Leading Indicators of Market Recovery

We are seeing improvements in all four key leading indicators

Historical E&P Spending

22 Source: Barclay’s

23

ION FY 2017 Financial Highlights

$33 $34173

198

$0

$50

$100

$150

$200

$250

FY16 FY17

Revenue ($m)

OBITOps OptimizationE&P T&S

11

64

$0

$10

$20

$30

$40

$50

$60

$70

FY16 FY17

Adjusted EBITDA ($m)

(5.80)

(1.61)

$(6.00)

$(5.00)

$(4.00)

$(3.00)

$(2.00)

$(1.00)

$-

FY16 FY17

Adjusted EPS

(66)

(19)

-$70

-$60

-$50

-$40

-$30

-$20

-$10

$0

FY16 FY17

Adjusted Net Loss ($m)

Adjusted EPS and Adjusted EBITDA are non-GAAP financial measures. See the appendix for reconciliations to their comparable GAAP measures.

Revenue of $198m

– Up 14% vs FY16

Up 45%, excluding Ocean Bottom Integrated Technologies

– YoY improvements driven by continued sales of 3D multi-

client reimaging programs and newly launched programs

Net loss of $30m in FY17 vs $65m in FY16

Adjusted net loss of $19m in FY17 vs $66m in FY16

Adjusted EPS of ($1.61) in FY17 vs ($5.80) in FY16

Adjusted EBITDA of $64m vs $11m in FY16

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ION 1H-18 Financial Highlights

$33 $34

Revenue down 26% vs 1H-17

– E&P Technology & Services down 30%

– Operations Optimization down 13%

– No Ocean Bottom Integrated Technologies revenues

Net loss of $44m vs $34m in 1H-17

Adjusted net loss of $41m vs $29m in 1H-17

Adjusted EPS of $(3.03) vs $(2.43) one year ago

Adjusted EBITDA of $(8m) vs $14m in prior year

79

58

$0

$30

$60

$90

1H-17 1H-18

Revenue ($m)

OBITOps OptimizationE&P T&S

14

(8)

-$10

-$5

$0

$5

$10

$15

1H-17 1H-18

Adjusted EBITDA ($m)

(2.43)

(3.03)

$(3.50)

$(3.00)

$(2.50)

$(2.00)

$(1.50)

$(1.00)

$(0.50)

$-

1H-17 1H-18

Adjusted EPS

(29)

(41)

-$50

-$40

-$30

-$20

-$10

$0

1H-17 1H-18

Adjusted Net Loss ($m)

Adjusted EPS and Adjusted EBITDA are non-GAAP financial measures. See the appendix for reconciliations to their comparable GAAP measures.

ION Financial HighlightsCash Flow $m

25

FY16 FY17 1H-17 1H-18

Net income (loss) $ (64.7) $ (29.4) $(33.0) $(43.8)

Non-cash adjustments 58.8 68.5 36.2 24.5

Working capital 7.5 (11.1) 0.3 19.1

Net cash from operations 1.6 28.0 3.5 (0.2)

Multi-client investment (14.9) (23.7) (8.5) (13.8)

PP&E capital expenditures (1.5) (1.1) (0.9) (0.4)

Other investing activities 2.7 - - -

Net cash from investing activities (13.6) (24.8) (9.4) (14.2)

Payment to repurchase bonds (15.0) - (3.2) (29.7)

Costs associated with issuance of debt (6.7) (0.1) - -

Net Proceeds from issuance of stock - - - 47.2

Repurchase of common stock (1.0) - - -

Borrowings under revolving credit facility 10.0 - - (10.0)

Other financing activities (8.9) (3.5) (0.3) (1.1)

Net cash from financing activities (21.6) (3.6) (3.5) 6.4

Effect of change on f/x 1.4 (0.3) (0.2) 0.3

Net change in cash (32.3) (0.6) (9.5) (7.7)

Cash & restricted cash (beg. of period) 84.9 52.7 53.4 52.4

Cash & restricted cash (end of period) $ 52.7 $ 52.1 $43.9 $44.7

FY17

– Net cash flows from operations of $28m vs $2m in

FY16

– Total net cash flows of $(1m) vs $(32m) in FY16

– Total liquidity (cash & revolver availability) of $68m at

Dec-17

1H-18

– Net cash flows from operations of $0m in 1H-18 vs

$4m in prior year

– Total net cash flows (including investing & financing

activities) of $(8m) in 1H-18 vs $(10m) in prior year

– Total liquidity of $67m at Q2-18, consisting of $44m

cash and $23m of available and undrawn borrowing

capacity under credit facility

– Current debt outstanding of $0.5m

– Long-term debt of $121m due December 2021

– Total net debt of $73m

Reconciliation of Non-GAAP Financial MeasuresAdjusted EBITDA (in thousands)

26

Adjusted EBITDA is not a measure of financial performance under generally accepted accounting principles and should not be

considered in isolation from or as a substitute for net income (loss) or cash flow measures prepared in accordance with generally

accepted accounting principles or as a measure of profitability or liquidity. Adjusted EBITDA may not be comparable to other similarly

titled measures of other companies. The Company has included Adjusted EBITDA as a supplemental disclosure because its

management believes that Adjusted EBITDA provides investors a helpful measure for comparing its operating performance with the

performance of other companies that have different financing and capital structures or tax rates.

Twelve Months Ended December 31, Six Months Ended June 30,

2017 2016 2018 2017

Net loss $ (29,377 ) $ (64,727 ) $ (43,839 ) $ (33,049 )

Interest expense, net 16,709 18,485 6,747 8,705

Income tax expense (benefit) 24 4,421 1,226 1,984

Depreciation and amortization expense 65,998 55,310 24,335 30,963

Accrual (reduction) of loss contingency related to legal proceedings 5,000 (1,168 ) — 5,000

Loss on bond exchange — 2,182 — —

Recovery of INOVA bad debts — (3,983 ) — —

Stock appreciation rights expense 6,141 — 3,738 —

Adjusted EBITDA $ 64,495 $ 10,520 $ (7,793) $ 13,603

Six Months Ended June 30, 2018 Six Months Ended June 30, 2017

As Reported

Special

Items As Adjusted As Reported Special

Items As Adjusted

Net revenues $ 58,251 $ — $ 58,251 $ 78,557 $ — $ 78,557

Cost of sales 52,915 — 52,915 56,838 — 56,838

Gross profit 5,336 — 5,336 21,719 — 21,719

Operating expenses 40,495 (3,738) (1) 36,757 39,203 — 39,203

Loss from operations (35,159 ) 3,738 (31,421 ) (17,484 ) — (17,484 )

Interest expense, net (6,747 ) — (6,747 ) (8,705 ) — (8,705 )

Other income (expense), net (707 ) — (707 ) (4,876 ) 5,000 (2) 124

Income tax expense 1,226 — 1,226 1,984 1,984

Net loss (43,839 ) 3,738 (40,101 ) (33,049 ) 5,000 (28,049 )

Net income attributable to

noncontrolling interest (453 ) —

(453 ) (734 ) —

(734 )

Net loss attributable to ION $ (44,292 ) $ 3,738 $ (40,554 ) $ (33,783 ) $ 5,000 $ (28,783 )

Net loss per share:

Basic $ (3.31 ) $ (3.03 ) $ (2.85 ) $ (2.43 )

Diluted $ (3.31 ) $ (3.03 ) $ (2.85 ) $ (2.43 )

Reconciliation of Non-GAAP Financial MeasuresAdjusted Net Income (Loss) (in thousands)

27

The financial results are reported in accordance with GAAP. However, management believes that certain non-GAAP performance measures may

provide users of this financial information, additional meaningful comparisons between current results and results in prior operating periods. This

adjusted income (loss) amount is not a measure of financial performance under GAAP. Accordingly, it should not be considered as a substitute for

income (loss) from operations, net income (loss) or other income data prepared in accordance with GAAP.

(1) Represents stock appreciation right awards expense(2) Represents an accrual related to the WesternGeco legal contingency during the first quarter 2017(3) Represents severance charges during the second quarter 2016(4) Represents $1.2 million reduction in the WesternGeco legal contingency and $4.0 million recovery of INOVA bad debts, partially offset by a $2.2

million loss on extinguishment of debt associated with the Company's second quarter 2016 bond exchange

Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016

As Reported Special

Items As Adjusted As Reported Special

Items As Adjusted

Net revenues $ 197,554 $ — $ 197,554 $ 172,808 $ — $ 172,808

Cost of sales 121,915 — 121,915 136,776 (1,077 ) (3) 135,699

Gross profit 75,639 — 75,639 36,032 1,077 37,109

Operating expenses 84,338 (6,141 ) (1) 78,197 79,203 (932 ) (3) 78,271

Loss from operations (8,699 ) 6,141 (2,558 ) (43,171 ) 2,009 (41,162 )

Interest expense, net (16,709 ) — (16,709 ) (18,485 ) — (18,485 )

Other income (expense), net (3,945 ) 5,000 (2) 1,055 1,350 (2,969 ) (4) (1,619 )

Income tax expense 24 — 24 4,421 — 4,421

Net loss (29,377 ) 11,141 (18,236 ) (64,727 ) (960 ) (65,687 )

Net income attributable to

noncontrolling interests (865 ) —

(865 ) (421 ) —

(421 )

Net loss attributable to ION $ (30,242 ) $ 11,141 $ (19,101 ) $ (65,148 ) $ (960 ) $ (66,108 )

Net loss per share:

Basic $ (2.55 ) $ (1.61 ) $ (5.71 ) $ (5.80 )

Diluted $ (2.55 ) $ (1.61 ) $ (5.71 ) $ (5.80 )

Multi-client Process

28

Acquire permit to conduct survey from

government or secure rights to reprocess

existing survey

Seek client interest in program & secure

underwriting (discounted rate for early commitment)

Design the survey with input from

underwriters, local stakeholders &

geological experts

Sanction the program if underwriting >75% of investment and looks

promising

Oversee survey acquisition by third

party contractor

Receive, process, and interpret the data

Survey “goes on the shelf” when processing

and interpretation is complete

Clients can purchase data library off the

shelf

Data is fully amortized after 4 years, but we often have marketing

rights for 10 years

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