Independence Contract Drilling, Inc. Provides Interim Update On Certain Operational And Financial Data

Rhea-AI Summary

Independence Contract Drilling (ICD) announced positive interim operational updates for Q3 2020. The company has secured contracts for reactivating four rigs, expecting 455-465 operating days. Additionally, ICD completed an ATM offering, raising $11 million through the sale of 2.4 million shares at an average price of $4.66. CEO Anthony Gallegos expressed optimism about financial liquidity and potential future rig reactivations, signaling growth in core markets.

Positive

• Signed contracts for reactivating four rigs, with three extending to end of 2020.
• Expected operating days between 455 and 465 for Q3 2020.
• Successfully raised $11 million from ATM offering.

Negative

• None.

HOUSTON, Sept. 3, 2020 /PRNewswire/ -- Independence Contract Drilling, Inc. (the "Company" or "ICD") (NYSE: ICD) provided the following interim operational and financial updates for the third quarter of 2020:

• Since June 30, 2020, the Company has signed contracts for the reactivation of four rigs, with three of the contracts extending until at least the end of 2020.  The Company currently expects operating days during the third quarter to range between 455 and 465 days.
• The Company has completed its ATM offering. Overall, the Company raised $11 million of gross proceeds, issuing 2.4 million shares at an average gross selling price of $4.66 per share.  Incremental gross proceeds from sales since June 30, 2020 totaled $3.6 million.

Anthony Gallegos, President and Chief Executive Officer, commented, "We are very pleased with our overall progress quarter to date, especially regarding rig reactivations, which are ahead of the cadence we expected earlier in the quarter.  With the completion of our ATM offering process, we have made significant strides to improve our balance sheet and financial liquidity.  Looking forward, we continue to have constructive conversations with existing and new customers in all of our core markets for potential additional reactivations later this year and are beginning to discuss incremental rig adds for 2021 as well." 

Piper Sandler & Co., through its Simmons Energy division, served as exclusive agent for the ATM offering.

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 operational updates did ICD provide for Q3 2020?

ICD announced that it signed contracts for the reactivation of four rigs and expects operating days to range between 455 and 465.

How much did ICD raise in its ATM offering?

Independence Contract Drilling raised $11 million in its ATM offering by issuing 2.4 million shares.

Are there any expectations for future rig reactivations from ICD?

CEO Anthony Gallegos stated that discussions for potential additional rig reactivations later this year are ongoing.