Geokinetics' covenants "now manageable" due to loan changes, CEO says

By Jennifer Lanning Drey

Savannah, Ga., Jan. 5 - Geokinetics Inc.'s covenants are "now manageable going forward," as a result of the amendments made to the company's revolving credit facility in December, Richard Miles, Geokinetics' chief executive officer, said Wednesday during a presentation at the Pritchard Capital Partners Energize 2011 Conference in San Francisco.

As previously reported, on Dec. 14, Geokinetics amended its revolving credit facility, waiving the cumulative EBITDA covenant for the month ended Nov. 30 and all financial covenants at Dec. 31.

Additionally, the amendment adjusted the monthly maximum total leverage ratio and the monthly minimum interest coverage ratio.

Also during Wednesday's presentation, Miles noted that Geokinetics expects to keep its 2011 capital expenditures in line with the $40 million spent on capital expenditures in 2010 due to its focus on generating cash and improving liquidity.

The company's plans for 2011 include expanding its exploration and production spending by 8% in North America, 5% in Canada and 10% internationally.

"I am very bullish on 2011, and I think we're in a good position to take advantage of it," Miles said.

Geokinetics is a Houston-based provider of seismic data acquisition, seismic data processing services and multi-client seismic data to the oil and gas industry.

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