Independence Contract Drilling, Inc. Reports Financial Results For The Third Quarter Ended September 30, 2020 And Announces Additional Rig Reactivations

Rhea-AI Summary

Independence Contract Drilling (ICD) reported a net loss of $15.2 million for Q3 2020, equating to $2.67 per share. Revenue totaled $10.2 million, a significant drop from $45.1 million in Q3 2019. Utilization of the marketed fleet was just 17%, down from 76% a year prior. The company improved liquidity with an $11 million ATM offering, ending the quarter with $39 million in financial liquidity. Despite these challenges, ICD expects to reactivate more rigs, driven by rising natural gas prices.

Positive

• Completed $11 million ATM offering, enhancing liquidity.
• Reactivated two additional rigs, marking a 33% increase in contracted rig count since June 30, 2020.
• Expects further rig reactivations due to improving oil and natural gas prices.

Negative

• Net loss increased to $15.2 million, worsening from $10.5 million in Q3 2019.
• Revenue declined sharply by 77% year-over-year.
• Marketed fleet utilization fell to 17%, down from 76% in Q3 2019.

HOUSTON, Nov. 3, 2020 /PRNewswire/ -- Independence Contract Drilling, Inc. (the "Company" or "ICD") (NYSE: ICD) today reported financial results for the three months ended September 30, 2020.

Third quarter 2020 Highlights

• Net loss of $15.2 million, or $2.67 per share.
• Adjusted net loss, as defined below, of $15.5 million, or $2.73 per share.
• Adjusted EBITDA loss, as defined below, of $0.5 million.
• Net debt, excluding finance leases and net of deferred financing costs, of $118.3 million.
• Marketed fleet utilization of 17%.
• Fully burdened margin of $3,923 per day.

In the third quarter of 2020, the Company reported revenues of $10.2 million, a net loss of $15.2 million, or $2.67 per share, adjusted net loss (defined below) of $15.5 million, or $2.73 per share, and adjusted EBITDA loss (defined below) of $0.5 million.  These results compare to revenues of $45.1 million, a net loss of $10.5 million, or $2.80 per share, adjusted net loss of $7.9 million, or $2.09 per share, and adjusted EBITDA of $7.7 million in the third quarter of 2019, and revenues of $21.4 million, a net loss of $10.1 million, or $2.52 per share, an adjusted net loss of $11.0 million, or $2.73 per share, and adjusted EBITDA of $4.0 million in the second quarter of 2020. 

Chief Executive Officer Anthony Gallegos commented, "Undoubtedly, our third quarter results reflected the full effects of the unprecedented destruction in oil and gas demand caused by the COVID-19 pandemic.  However, ICD also began to reassemble the pieces during the third quarter.  We are a leader in the Haynesville and East Texas natural gas plays, and this is paying dividends as improving natural gas commodity pricing drove incremental demand and rig reactivations for us late in the quarter.  As a result, we exceeded expectations with respect to drilling rig contracting activity and overall cost control during the quarter.  Also, we continued to advance our drilling optimization initiatives, and on the ESG front I am very pleased that six of our eight rigs operating today are using or planning to use our ShaleDriller rigs' dual fuel capabilities.  Lastly, we improved our liquidity profile by completing our $11 million ATM offering, raising the final $3.6 million proceeds during the third quarter, and exited the quarter with total financial liquidity of $39 million, including $18.8 million in cash.

Operationally, we exited the third quarter with six rigs drilling and I am pleased to announce we have since reactivated two additional rigs that are now operating representing a 33% increase in our contracted rig count since June 30th.  Looking forward, based upon improving natural gas prices and stabilized to improving oil prices, as well as our current identified opportunity set, we expect to reactivate additional rigs during the remainder of the year and into the first half of 2021."

Quarterly Operational Results

In the third quarter of 2020, the Company's marketed fleet operated at 17% utilization and recorded 460 revenue days, compared to 76% utilization and 1,943 revenue days in the third quarter of 2019, and 32% utilization and 834 revenue days in the second quarter of 2020.

Operating revenues in the third quarter of 2020 totaled $10.2 million, compared to $45.1 million in the third quarter of 2019 and $21.4 million in the second quarter of 2020.  Included in operating revenues were $1.2 million and $2.2 million of early termination revenue recognized during the third and second quarters of 2020, respectively.  Excluding the impacts from early termination revenue, revenue per day in the third quarter of 2020 was $18,078, compared to $20,559 in the third quarter of 2019 and $19,741 in the second quarter of 2020.  Sequential declines in revenue per day were driven by the expiration of higher-dayrate legacy contracts during the quarter and a higher proportion of rigs drilling at prevailing spot dayrates.

Operating costs in the third quarter of 2020 totaled $8.7 million, compared to $34.2 million in the third quarter of 2019 and $14.1 million in the second quarter of 2020.  Fully burdened operating costs were $14,155 per day in the third quarter of 2020, compared to $14,914 in the third quarter of 2019 and $12,741 in the second quarter of 2020.  Sequential increases in operating costs per day were driven by inefficiencies associated with reduced operating days during the third quarter of 2020 as well as one-time items benefiting costs during the second quarter of 2020.

Excluding the impact from early termination revenues and decommissioning and reactivation costs, fully burdened rig operating margins in the third quarter of 2020 were $3,923 per day, compared to $5,645 per day in the third quarter of 2019 and $7,000 per day in the second quarter of 2020.

Selling, general and administrative expenses in the third quarter of 2020 were $2.8 million (including $0.7 million of non-cash stock-based compensation), compared to $3.8 million (including $0.6 million of non-cash stock-based compensation) in the third quarter of 2019 and $3.5 million (including $0.3 million of non-cash stock-based compensation) in the second quarter of 2020.  Sequential decreases in selling, general and administrative expenses were associated with cost cutting initiatives that impacted the entire third quarter.

Drilling Operations Update

The Company exited the third quarter of 2020 with six rigs earning revenues under drilling contracts. As of October 31, 2020, the Company has reactivated two additional rigs that commenced operations.  The Company's backlog of drilling contracts with original terms of six months or longer was $12.7 million as of September 30, 2020, representing 2.22 rig years of activity.  Approximately 56% of this backlog is expected to be realized during the remainder of 2020.

Capital Expenditures and Liquidity Update

Cash outlays for capital expenditures in the third quarter of 2020 were $0.6 million, offset by asset sales and recoveries of $1.4 million.

As of September 30, 2020, the Company had cash on hand of $18.8 million, an undrawn revolving line of credit with availability of $5.2 million based upon eligible accounts receivable, $130 million principal amount outstanding under its term loan, and $10 million outstanding under a loan issued under the Payroll Protection Program ("PPP") under the CARES Act.  The term loan includes a committed $15 million accordion that remains undrawn.

During the third quarter of 2020, the Company completed its at-the-market ("ATM") common stock offering and issued 1,163,611 shares of common stock pursuant to this program at a weighted average gross selling price of $3.13 per share, resulting in gross proceeds to the Company of $3.6 million.

Conference Call Details

A conference call for investors will be held today, November 3, 2020, at 11:00 a.m. Central Time (12:00 p.m. Eastern Time) to discuss the Company's third quarter 2020 results. 

The call can be accessed live over the telephone by dialing (855) 239-3115 or for international callers, (412) 542-4125.  A replay will be available shortly after the call and can be accessed by dialing (877) 344-7529 or for international callers, (412) 317-0088.  The passcode for the replay is 10148733.  The replay will be available until November 10, 2020.

Interested parties may also listen to a simultaneous webcast of the conference call by logging onto the Company's website at www.icdrilling.com in the Investor Relations section.  A replay of the webcast will also be available for approximately 30 days following the call.

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.

 

 

INDEPENDENCE CONTRACT DRILLING, INC. Unaudited (in thousands, except par value and share data)
CONSOLIDATED BALANCE SHEETS
	September 30, 2020				December 31, 2019
Assets
Cash and cash equivalents	$	18,813			$	5,206
Accounts receivable, net	9,316				35,834
Inventories	1,162				2,325
Assets held for sale	1,700				8,740
Prepaid expenses and other current assets	3,725				4,640
Total current assets	34,716				56,745
Property, plant and equipment, net	418,557				457,530
Other long-term assets, net	2,444				2,726
Total assets	$	455,717			$	517,001
Liabilities and Stockholders' Equity
Liabilities
Current portion of long-term debt (1)	$	3,141			$	3,685
Accounts payable	3,595				22,674
Accrued liabilities	10,438				16,368
Merger consideration payable to an affiliate	—				3,022
Current portion of contingent consideration	—				2,814
Total current liabilities	17,174				48,563
Long-term debt (2)	143,440				134,941
Merger consideration payable to an affiliate	2,902				—
Deferred income taxes, net	568				652
Other long-term liabilities	1,912				1,249
Total liabilities	165,996				185,405
Stockholders' equity
Common stock, $0.01 par value, 50,000,000 shares authorized; 6,245,298 and 3,876,196 shares issued, respectively, and 6,166,720 and 3,812,050 shares outstanding, respectively	62				38
Additional paid-in capital	517,540				505,831
Accumulated deficit	(223,968)				(170,426)
Treasury stock, at cost, 78,589 shares and 64,146 shares, respectively	(3,913)				(3,847)
Total stockholders' equity	289,721				331,596
Total liabilities and stockholders' equity	$	455,717			$	517,001
(1)  As of September 30, 2020 and December 31, 2019, current portion of long-term debt includes $3.1 million and $3.7 million, respectively, of finance lease obligations.
(2)  As of September 30, 2020 and December 31, 2019, long-term debt includes $6.3 million and $7.5 million, respectively, of long-term finance lease obligations.  As of September 30, 2020, long-term debt also includes $10.0 million related to the PPP Loan.

 

 

 

INDEPENDENCE CONTRACT DRILLING, INC. Unaudited (in thousands, except par value and share data)
CONSOLIDATED STATEMENTS OF OPERATIONS
	Three Months Ended												Nine Months Ended
	September 30,								June 30,				September 30,
	2020				2019				2020				2020				2019
Revenues	$	10,224			$	45,073			$	21,381			$	70,099			$	158,310
Costs and expenses
Operating costs	8,663				34,246				14,095				52,987				111,032
Selling, general and administrative	2,796				3,755				3,544				10,101				11,308
Severance and merger-related expenses	—				320				—				1,076				2,688
Depreciation and amortization	10,767				11,154				11,055				33,338				33,838
Asset impairment, net	—				1,966				—				16,619				9,839
(Gain) loss on disposition of assets, net	(326)				265				(836)				(1,208)				3,503
Other expense	—				122				—				—				377
Total costs and expenses	21,900				51,828				27,858				112,913				172,585
Operating loss	(11,676)				(6,755)				(6,477)				(42,814)				(14,275)
Interest expense	(3,554)				(3,560)				(3,654)				(10,812)				(10,913)
Loss before income taxes	(15,230)				(10,315)				(10,131)				(53,626)				(25,188)
Income tax (benefit) expense	(31)				232				(11)				(84)				590
Net loss	$	(15,199)			$	(10,547)			$	(10,120)			$	(53,542)			$	(25,778)
Loss per share:
Basic and diluted	$	(2.67)			$	(2.80)			$	(2.52)			$	(11.91)			$	(6.82)
Weighted average number of common shares outstanding:
Basic and diluted	5,703				3,770				4,018				4,495				3,780

 

 

 

INDEPENDENCE CONTRACT DRILLING, INC. Unaudited (in thousands, except par value and share data)
CONSOLIDATED STATEMENTS OF CASH FLOWS
	Nine Months Ended September 30,
	2020				2019
Cash flows from operating activities
Net loss	$	(53,542)			$	(25,778)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization	33,338				33,838
Asset impairment, net	16,619				9,839
Stock-based compensation	1,554				1,385
(Gain) loss on disposition of assets, net	(1,208)				3,503
Deferred income taxes	(84)				590
Amortization of deferred financing costs	709				610
Bad debt expense (recovery)	16				(42)
Changes in operating assets and liabilities
Accounts receivable	26,985				9,265
Inventories	(7)				(586)
Prepaid expenses and other assets	660				3,330
Accounts payable and accrued liabilities	(17,948)				(8,786)
Net cash provided by operating activities	7,092				27,168
Cash flows from investing activities
Purchases of property, plant and equipment	(12,688)				(34,974)
Proceeds from the sale of assets	2,445				7,806
Proceeds from insurance claims	—				1,000
Collection of principal on note receivable	145				—
Net cash used in investing activities	(10,098)				(26,168)
Cash flows from financing activities
Borrowings under Revolving Credit Facility	11,038				2,511
Repayments under Revolving Credit Facility	(11,038)				(5,077)
Borrowings under PPP Loan	10,000				—
Proceeds from issuance of common stock	10,978				—
Common stock issuance costs	(721)				(177)
Purchase of treasury stock	(66)				(328)
RSUs withheld for taxes	(79)				—
Financing costs paid under Term Loan Facility	—				(5)
Financing costs paid under Revolving Credit Facility	—				(22)
Payments for finance lease obligations	(3,499)				(1,003)
Net cash provided by (used in) financing activities	16,613				(4,101)
Net increase (decrease) in cash and cash equivalents	13,607				(3,101)
Cash and cash equivalents
Beginning of period	5,206				12,247
End of period	$	18,813			$	9,146
	Nine Months Ended September 30,
	2020				2019
Supplemental disclosure of cash flow information
Cash paid during the period for interest	$	10,275			$	10,496
Supplemental disclosure of non-cash investing and financing activities
Change in property, plant and equipment purchases in accounts payable	$	(7,488)			$	(1,320)
Additions to property, plant and equipment through finance leases	$	3,326			$	2,181
Extinguishment of finance lease obligations from sale of assets classified as finance leases	$	(1,504)			$	(141)
Transfer of assets from held and used to held for sale	$	—			$	(5,327)
Transfer from inventory to fixed assets	$	—			$	(357)

The following table provides various financial and operational data for the Company's operations for the three months ending September 30, 2020 and 2019 and June 30, 2020, and the nine months ending September 30, 2020 and 2019.  This information contains non-GAAP financial measures of the Company's operating performance.  The Company believes this non-GAAP information is useful because it provides a means to evaluate the operating performance of the Company on an ongoing basis using criteria that are used by our management.  Additionally, it highlights operating trends and aids analytical comparisons.  However, this information has limitations and should not be used as an alternative to operating income (loss) or cash flow performance measures determined in accordance with GAAP, as this information excludes certain costs that may affect the Company's operating performance in future periods.

 

OTHER FINANCIAL & OPERATING DATA Unaudited
	Three Months Ended												Nine Months Ended
	September 30,								June 30,				September 30,
	2020				2019				2020				2020				2019
Number of marketed rigs end of period (1)	29				29				29				29				29
Rig operating days (2)	460				1,943				834				3,032				7,001
Average number of operating rigs (3)	5.0				21.1				9.2				11.1				25.6
Rig utilization (4)	17		%		76		%		32		%		38		%		85		%
Average revenue per operating day (5)	$	18,078			$	20,559			$	19,741			$	19,536			$	20,738
Average cost per operating day (6)	$	14,155			$	14,914			$	12,741			$	14,049			$	14,034
Average rig margin per operating day	$	3,923			$	5,645			$	7,000			$	5,487			$	6,704
(1)  Marketed rigs exclude idle rigs that will not be reactivated until upgrades or conversions are complete.
(2)  Rig operating days represent the number of days our rigs are earning revenue under a contract during the period, including days that standby revenues are earned.
(3)  Average number of operating rigs is calculated by dividing the total number of rig operating days in the period by the total number of calendar days in the period.
(4)  Rig utilization is calculated as rig operating days divided by the total number of days our marketed drilling rigs are available during the applicable period.
(5)  Average revenue per operating day represents total contract drilling revenues earned during the period divided by rig operating days in the period.  Excluded in calculating average revenue per operating day are revenues associated with the reimbursement of (i) out-of-pocket costs paid by customers of $0.8 million, $4.8 million and $2.7 million during the three months ended September 30, 2020 and 2019, and June 30, 2020, respectively, and $7.5 million and $11.2 million during the nine months ended September 30, 2020 and 2019, respectively, (ii) revenues associated with the amortization of intangible revenue acquired in the Sidewinder merger of $1.1 million during the nine months ended September 30, 2019, and (iii) early termination revenues of $1.2 million, $0.3 million and $2.2 million during the three months ended September 30, 2020 and 2019, and June 30, 2020, respectively, and $3.3 million and $0.8 million during the nine months ended September 30, 2020 and 2019, respectively.  The three and nine months ended September 30, 2020 and the three months ended September 30, 2019 and June 30, 2020 did not include any intangible revenue.
(6)  Average cost per operating day represents operating costs incurred during the period divided by rig operating days in the period.  The following costs are excluded in calculating average cost per operating day: (i) out-of-pocket costs paid by customers of $0.8 million, $4.8 million and $2.7 million during the three months ended September 30, 2020 and 2019, and June 30, 2020, respectively, and $7.5 million and $11.2 million during the nine months ended September 30, 2020 and 2019, respectively, (ii) overhead costs expensed due to reduced rig upgrade activity of $0.5 million, $0.2 million and $0.4 million during the three months ended September 30, 2020 and 2019, and June 30, 2020, respectively, and $1.5 million and $1.3 million during the nine months ended September 30, 2020 and 2019, respectively, (iii) new crew training costs of $0.1 million during the three months ended September 30, 2019 and $0.2 million and $0.1 million during the nine months ended September 30, 2020 and 2019, respectively, (iv) rig de-commissioning costs associated with stacking deactivated rigs of $0.2 million, $0.1 million and $0.3 million during the three months ended September 30, 2020 and 2019, and June 30, 2020, respectively, and $0.5 million and $0.2 million during the nine months ended September 30, 2020 and 2019, respectively, and (v) rig reactivation costs of $0.8 million during the three and nine months ended September 30, 2020.

 

Non-GAAP Financial Measures

Adjusted net (loss) income, EBITDA and adjusted EBITDA are supplemental non-GAAP financial measures that are used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies.  In addition, adjusted EBITDA is consistent with how EBITDA is calculated under our credit facility for purposes of determining our compliance with various financial covenants.  We define "adjusted net (loss) income" as net (loss) income before: asset impairment, net; (gain) loss on disposition of assets, net; intangible revenue; severance and merger-related expenses; and other adjustments.  We define "EBITDA" as earnings (or loss) before interest, taxes, depreciation, and amortization, and we define "adjusted EBITDA" as EBITDA before stock-based compensation, non-cash asset impairments, gains or losses on disposition of assets, and other non-recurring items added back to, or subtracted from, net income for purposes of calculating EBITDA under our credit facilities.  Neither adjusted net (loss) income, EBITDA or adjusted EBITDA is a measure of net income as determined by U.S. generally accepted accounting principles ("GAAP").

Management believes adjusted net (loss) income, EBITDA and adjusted EBITDA are useful because they allow our stockholders to more effectively evaluate our operating performance and compliance with various financial covenants under our credit facility and compare the results of our operations from period to period and against our peers without regard to our financing methods or capital structure or non-recurring, non-cash transactions. We exclude the items listed above from net income (loss) in calculating adjusted net (loss) income, EBITDA and adjusted EBITDA because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. None of adjusted net (loss) income, EBITDA or adjusted EBITDA should be considered an alternative to, or more meaningful than, net income (loss), the most closely comparable financial measure calculated in accordance with GAAP, or as an indicator of our operating performance or liquidity. Certain items excluded from adjusted net (loss) income, EBITDA and adjusted EBITDA are significant components in understanding and assessing a company's financial performance, such as a company's return on assets, cost of capital and tax structure. Our presentation of adjusted net (loss) income, EBITDA and adjusted EBITDA should not be construed as an inference that our results will be unaffected by unusual or non-recurring items.  Our computations of adjusted net (loss) income, EBITDA and adjusted EBITDA may not be comparable to other similarly titled measures of other companies.

Reconciliation of Net Loss to Adjusted Net Loss:

	(Unaudited)																								(Unaudited)
	Three Months Ended																								Nine Months Ended
	September 30,																June 30,								September 30,
	2020								2019								2020								2020								2019
	Amount				Per Share				Amount				Per Share				Amount				Per Share				Amount				Per Share				Amount				Per Share
(in thousands)
Net loss	$	(15,199)			$	(2.67)			$	(10,547)			$	(2.80)			$	(10,120)			$	(2.52)			$	(53,542)			$	(11.91)			$	(25,778)			$	(6.82)
Add back:
Asset impairment, net (1)	—				—				1,966				0.52				—				—				16,619				3.70				9,839				2.60
(Gain) loss on disposition of assets, net (2)	(326)				(0.06)				265				0.07				(836)				(0.21)				(1,208)				(0.27)				3,503				0.93
Intangible revenue (3)	—				—				—				—				—				—				—				—				(1,079)				(0.28)
Severance and merger-related expenses (4)	—				—				320				0.09				—				—				1,076				0.24				2,688				0.71
Other expense	—				—				122				0.03				—				—				—				—				377				0.10
Adjusted net loss	$	(15,525)			$	(2.73)			$	(7,874)			$	(2.09)			$	(10,956)			$	(2.73)			$	(37,055)			$	(8.24)			$	(10,450)			$	(2.76)

 

Reconciliation of Net Loss to EBITDA and Adjusted EBITDA:

	(Unaudited)												(Unaudited)
	Three Months Ended												Nine Months Ended
	September 30,								June 30,				September 30,
	2020				2019				2020				2020				2019
(in thousands)
Net loss	$	(15,199)			$	(10,547)			$	(10,120)			$	(53,542)			$	(25,778)
Add back:
Income tax (benefit) expense	(31)				232				(11)				(84)				590
Interest expense	3,554				3,560				3,654				10,812				10,913
Depreciation and amortization	10,767				11,154				11,055				33,338				33,838
Asset impairment, net (1)	—				1,966				—				16,619				9,839
EBITDA	(909)				6,365				4,578				7,143				29,402
(Gain) loss on disposition of assets, net (2)	(326)				265				(836)				(1,208)				3,503
Stock-based compensation	694				582				290				1,554				1,385
Intangible revenue (3)	—				—				—				—				(1,079)
Severance and merger-related expenses (4)	—				320				—				1,076				2,688
Other expense	—				122				—				—				377
Adjusted EBITDA	$	(541)			$	7,654			$	4,032			$	8,565			$	36,276
(1)  We did not record any asset impairment during the third quarter of 2020.  In the first quarter of 2020, we recorded an asset impairment of $16.6 million to reflect the remaining assets on rigs removed from our marketed fleet, as well as certain other component equipment, inventory and assets held for sale.  In the third quarter of 2019, we impaired 100% of the goodwill recorded in connection with the Sidewinder Merger.
(2)  In the third and second quarters of 2020, we recorded a gain on the disposition of miscellaneous drilling equipment.  In the third quarter of 2019, we recorded a loss on the disposition of miscellaneous drilling equipment.
(3)  In the first and second quarters of 2019, we amortized intangible revenue related to unfavorable contract liability acquired in the Sidewinder merger.
(4)  Severance and merger-related expenses were recorded in the third quarter of 2019 primarily comprised of severance, professional fees and other Sidewinder merger-related expenses.  Severance expenses of $1.1 million were recorded in the first quarter of 2020 in connection with our cost reduction measures instituted in response to the COVID-19 pandemic and current deteriorating market conditions.  We did not record any severance expense during the second or third quarter of 2020.

 

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 were Independence Contract Drilling's Q3 2020 financial results?

Independence Contract Drilling reported a net loss of $15.2 million and revenues of $10.2 million for Q3 2020.

How did ICD's revenues in Q3 2020 compare to Q3 2019?

Revenues in Q3 2020 were $10.2 million, a decrease from $45.1 million in Q3 2019.

What is the current rig utilization rate for ICD?

As of Q3 2020, ICD's marketed fleet utilization was 17%, down from 76% in Q3 2019.

Has ICD improved its liquidity position?

Yes, ICD completed an $11 million ATM offering and ended Q3 2020 with $39 million in total financial liquidity.

What are the future expectations for rig reactivations at ICD?

ICD anticipates further rig reactivations based on improving natural gas and oil prices.