Independence Contract Drilling, Inc. Announces Continued Dayrate Progression and Progress on Rig Reactivation Plans

Rhea-AI Summary

Independence Contract Drilling (ICD) announced the reactivation of its 16th rig, scheduled to commence operations in the Permian Basin by mid-October 2021. CEO Anthony Gallegos highlighted improving market fundamentals and increased demand for the company's rigs. The dayrates for ICD's fleet have risen significantly, exceeding $3,000 per day compared to Q2 2021 averages. Future plans include reactivating an additional 300 series rig before year-end, indicating a positive outlook for ICD's operational results as the market improves into 2022.

Positive

• Reactivation of the 16th rig scheduled for mid-October 2021.
• Significant increase in dayrates, with recent awards up by over $3,000 per day compared to Q2 2021.
• Plans to reactivate at least one more 300 series rig by year-end 2021.

Negative

• None.

HOUSTON, Sept. 20, 2021 /PRNewswire/ -- Independence Contract Drilling, Inc. (the "Company" or "ICD") (NYSE: ICD) today announced that it has signed a drilling contract for the reactivation of its 16th rig which will work in the Permian Basin, with a scheduled start date in mid-October 2021.

Anthony Gallegos, President & Chief Executive Officer commented, "Overall oil and natural gas market fundamentals and demand for ICD rigs continues to improve.  After this most recent reactivation, which will be of a 200 series rig, future reactivations will focus on our 300 series rigs.  We expect to reactivate at least one additional 300 series rig by year end.  On the dayrate front, rates continue to move upward across our fleet with rates on our most recent awards rating over $3,000 per day higher than our second quarter 2021 reported averages.  With our intentional focus on short term contract tenors to capture continued dayrate growth in an improving market, the vast majority of our rigs are scheduled to reprice at least once during the remainder of the year. This along with additional repricing opportunities in 2022 and an increasing percentage of our working fleet being comprised of 300 series rigs, sets up nicely for ICD operating results as we move into 2022."

About Independence Contract Drilling, Inc.

Independence Contract Drilling provides land-based contract drilling services for oil and natural gas producers in the United States. The Company constructs, owns and operates a fleet of pad-optimal ShaleDriller rigs that are specifically engineered and designed to accelerate its clients' production profiles and cash flows from their most technically demanding and economically impactful oil and gas properties. For more information, visit www.icdrilling.com.

Forward-Looking Statements

This news release contains certain forward-looking statements within the meaning of the federal securities laws. Words such as "anticipated," "estimated," "expected," "planned," "scheduled," "targeted," "believes," "intends," "objectives," "projects," "strategies" and similar expressions are used to identify such forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements relating to Independence Contract Drilling's operations are based on a number of expectations or assumptions which have been used to develop such information and statements but which may prove to be incorrect. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict, and there can be no assurance that actual outcomes and results will not differ materially from those expected by management of Independence Contract Drilling. For more information concerning factors that could cause actual results to differ materially from those conveyed in the forward-looking statements, please refer to the "Risk Factors" section of the Company's Annual Report on Form 10-K, filed with the SEC and the information included in subsequent amendments and other filings. These forward-looking statements are based on and include our expectations as of the date hereof. Independence Contract Drilling does not undertake any obligation to update or revise such forward-looking statements to reflect events or circumstances that occur, or which Independence Contract Drilling becomes aware of, after the date hereof.  

INVESTOR CONTACTS:

Independence Contract Drilling, Inc.
E-mail inquiries to: Investor.relations@icdrilling.com
Phone inquiries: (281) 598-1211

 

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SOURCE Independence Contract Drilling, Inc.

FAQ

What is the significance of ICD's 16th rig reactivation?

The reactivation signifies increased operational capacity in response to improved market conditions.

When will ICD's 16th rig start operating?

ICD's 16th rig is scheduled to start operations in mid-October 2021.

How much have ICD's dayrates increased recently?

ICD's recent dayrates have increased by over $3,000 per day compared to second quarter 2021 averages.

What future plans does ICD have for rig reactivations?

ICD plans to reactivate at least one additional 300 series rig by the end of 2021.