Independence Contract Drilling, Inc. Reports Certain Operational And Financial Data For Second Quarter Of 2020

Rhea-AI Summary

Independence Contract Drilling (ICD) reported operational and financial updates for Q2 2020, expecting approximately 834 revenue days for the period. The company has a backlog of term contracts worth $15.1 million, with 84% expected to be realized in 2020. As of June 30, 2020, ICD operated five rigs and had one additional rig earning revenue. During Q2 2020, the company issued over 1.19 million shares at an average price of $6.15 each, anticipating around 4 million shares outstanding for the quarter.

Positive

• Expected backlog of term contracts at approximately $15.1 million, providing revenue visibility.
• 84% of the backlog projected to be realized within 2020.
• Five rigs operational, indicating stable operational capability.

Negative

• Issuance of 1,192,566 shares may dilute existing shareholders.
• -

HOUSTON, July 1, 2020 /PRNewswire/ -- Independence Contract Drilling, Inc. (the "Company" or "ICD") (NYSE: ICD) provided the following operational and financial updates for the three months ended June 30, 2020:

• The Company expects to report approximately 834 revenue days during the three months ended June 30, 2020. Reported revenue days exclude rigs earning revenues on an early termination basis.
• The Company expects to report a backlog of term contracts with original terms of six months or more of approximately $15.1 million as of June 30, 2020, representing approximately 2.26 rig years of work. Of this backlog, 84% is expected to be realized during the remainder of 2020.
• The Company exited the quarter with five rigs operating and one additional rig earning revenue on an early termination basis.
• During the second quarter of 2020, the Company issued 1,192,566 shares of common stock at an average gross selling price of $6.15 per share pursuant to its ATM stock offering. The Company expects weighted average shares outstanding for the three months ended June 30, 2020, to be approximately 4,018,000 shares.

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 expected revenue days for ICD in Q2 2020?

Independence Contract Drilling expects to report approximately 834 revenue days for the three months ended June 30, 2020.

What is the backlog value reported by ICD for Q2 2020?

Independence Contract Drilling reported a backlog of term contracts worth approximately $15.1 million as of June 30, 2020.

How many rigs were operating for ICD at the end of Q2 2020?

Independence Contract Drilling exited Q2 2020 with five rigs operational.

What was the average selling price of shares issued by ICD in Q2 2020?

ICD issued shares at an average gross selling price of $6.15 per share during the second quarter of 2020.

How many shares does ICD expect to have outstanding for Q2 2020?

Independence Contract Drilling anticipates approximately 4,018,000 shares outstanding for the three months ended June 30, 2020.