Independence Contract Drilling, Inc. Reports Unaudited Financial Results for the Third Quarter Ended September 30, 2022, Including Record Revenue Per Day and Margin Per Day
Independence Contract Drilling (ICD) reported a net loss of $7.2 million ($0.53 per share) for Q3 2022, compared to a net loss of $4.3 million in Q3 2021. Revenues rose to $49.1 million, up from $24.0 million year-over-year, and adjusted EBITDA improved to $12.5 million, a 35% increase sequentially. Average rigs working during the quarter was 17.4, with a backlog of $101.6 million for long-term contracts. The company anticipates further margin growth, projecting a 10-15% increase for Q4 2022.
- Revenue increased to $49.1 million, up 104% from Q3 2021.
- Adjusted EBITDA rose to $12.5 million, a 35% sequential improvement.
- Backlog increased by 87% compared to Q2 2022, reaching $101.6 million.
- Operating margins improved to $11,341 per day, up 27% sequentially.
- Net loss of $7.2 million, an increase from $4.3 million in Q3 2021.
- Operating costs rose to $31.4 million, compared to $20.1 million in Q3 2021.
HOUSTON, Nov. 1, 2022 /PRNewswire/ -- Independence Contract Drilling, Inc. (the "Company" or "ICD") (NYSE: ICD) today reported financial results for the three months ended September 30, 2022.
Third quarter 2022 Highlights
- Net loss, as defined below, of
$7.2 million , or$0.53 per share. - Adjusted net loss, as defined below, of
$4.8 million , or$0.35 per share. - Adjusted EBITDA, as defined below, of
$12.5 million , representing an approximate35% sequential improvement from the second quarter of 2022. - Adjusted net debt, as defined below, of
$170.4 million . - 17.4 average rigs working during the quarter.
- Fully burdened margin per day of
$11,341 representing an approximate27% sequential improvement from the second quarter of 2022.
In the third quarter of 2022, the Company reported revenues of
Chief Executive Officer Anthony Gallegos commented, "ICD achieved significant progress towards its rig reactivation, rig margin and adjusted EBITDA goals during the third quarter of 2022. The Company achieved quarterly revenue per day and margin per day records during the quarter, buoyed by continued penetration of our 300 series rigs and our marketing strategy of patiently waiting to seek longer-term contracts. All of this drove sequential improvements in quarterly adjusted EBITDA of
Against a backdrop of greater general macroeconomic uncertainty, market conditions for the Company's services have continued to tighten as overall supply and demand fundamentals driven by historically low underinvestment over the past decade have outweighed general economic headwinds. During the quarter, we began to strategically sign longer-term contracts and have increased our quarter-end backlog by
With this backdrop, we expect to see further sequential improvements in revenues and margin per day during the remainder of this year and into 2023. Our current expectations are that fourth quarter margin per day will exceed reported third quarter levels between
Operationally, our rig reactivations remain on schedule and our 200-to-300-series conversion program has commenced with our first conversion in process. Our 19th rig mobilized for operations at the end of October and our 20th rig is scheduled for mobilization at the end of the fourth quarter. Both of these reactivations are pursuant to one-year contracts at leading edge dayrates where expected margins will earn back reactivation costs well within the contract terms. Looking forward into 2023, we are marketing our 21st rig for mobilization early-to-mid first quarter of 2023 and our 22nd rig for the end of the first quarter or early second quarter of 2023."
Quarterly Operational Results
In the third quarter of 2022, operating days increased sequentially by
Operating revenues in the third quarter of 2022 totaled
Operating costs in the third quarter of 2022 totaled
Fully burdened rig operating margins in the third quarter of 2022 were
Selling, general and administrative expenses in the third quarter of 2022 were
During the quarter, the Company recorded interest expense of
The Company recorded a tax benefit of
Drilling Operations Update
The Company exited the third quarter with 18 rigs operating. Overall, the Company's operating rig count averaged 17.4 rigs during the quarter. The Company's backlog of drilling contracts with original terms of six months or longer is
Capital Expenditures and Liquidity Update
Cash outlays for capital expenditures in the third quarter of 2022, net of asset sales and recoveries, were
As of September 30, 2022, the Company had cash on hand of
Conference Call Details
A conference call for investors will be held today, November 1, 2022, at 11:00 a.m. Central Time (12:00 p.m. Eastern Time) to discuss the Company's third quarter 2022 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 2879534. The replay will be available until November 8, 2022.
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 the Company's 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, 2022 | December 31, 2021 | |||||
Assets | ||||||
Cash and cash equivalents | $ | 7,566 | $ | 4,140 | ||
Accounts receivable | 33,967 | 22,211 | ||||
Inventories | 1,433 | 1,171 | ||||
Prepaid expenses and other current assets | 2,940 | 4,787 | ||||
Total current assets | 45,906 | 32,309 | ||||
Property, plant and equipment, net | 365,160 | 362,346 | ||||
Other long-term assets, net | 2,159 | 2,449 | ||||
Total assets | $ | 413,225 | $ | 397,104 | ||
Liabilities and Stockholders' Equity | ||||||
Liabilities | ||||||
Current portion of long-term debt (1) | $ | 3,302 | $ | 4,464 | ||
Accounts payable | 28,859 | 15,304 | ||||
Accrued liabilities | 13,162 | 11,245 | ||||
Accrued interest | 122 | 4,372 | ||||
Current portion of merger consideration payable to an affiliate | — | 2,902 | ||||
Total current liabilities | 45,445 | 38,287 | ||||
Long-term debt (2) | 136,756 | 141,740 | ||||
Deferred income taxes, net | 19,391 | 19,037 | ||||
Other long-term liabilities | 1,661 | 2,811 | ||||
Total liabilities | 203,253 | 201,875 | ||||
Commitments and contingencies | ||||||
Stockholders' equity | ||||||
Common stock, | 136 | 102 | ||||
Additional paid-in capital | 616,316 | 532,826 | ||||
Accumulated deficit | (402,557) | (333,776) | ||||
Treasury stock, at cost, 81,846 shares and 81,846 shares, respectively | (3,923) | (3,923) | ||||
Total stockholders' equity | 209,972 | 195,229 | ||||
Total liabilities and stockholders' equity | $ | 413,225 | $ | 397,104 | ||
(1) | As of September 30, 2022 and December 31, 2021, current portion of long-term debt includes |
(2) | As of September 30, 2022 and December 31, 2021, long-term debt includes |
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, | |||||||||||||
2022 | 2021 | 2022 | 2022 | 2021 | |||||||||||
Revenues | $ | 49,147 | $ | 24,035 | $ | 42,313 | $ | 126,451 | $ | 59,394 | |||||
Costs and expenses | |||||||||||||||
Operating costs | 31,379 | 20,123 | 28,904 | 87,448 | 51,704 | ||||||||||
Selling, general and administrative | 7,007 | 4,068 | 4,860 | 17,096 | 11,829 | ||||||||||
Depreciation and amortization | 10,120 | 9,739 | 9,848 | 29,719 | 29,244 | ||||||||||
Asset impairment, net | — | 482 | — | — | 775 | ||||||||||
Loss (gain) on disposition of assets, net | 433 | 222 | (582) | (665) | (182) | ||||||||||
Total costs and expenses | 48,939 | 34,634 | 43,030 | 133,598 | 93,370 | ||||||||||
Operating income (loss) | 208 | (10,599) | (717) | (7,147) | (33,976) | ||||||||||
Interest expense | (8,098) | (3,812) | (8,232) | (21,005) | (11,294) | ||||||||||
Gain (loss) on extinguishment of debt | — | 10,128 | — | (46,347) | 10,128 | ||||||||||
Change in fair value of embedded derivative liability | — | — | (2,408) | (4,265) | — | ||||||||||
Realized gain on extinguishment of derivative | — | — | 10,765 | 10,765 | — | ||||||||||
Loss before income taxes | (7,890) | (4,283) | (592) | (67,999) | (35,142) | ||||||||||
Income tax (benefit) expense | (696) | 19 | 2,199 | 783 | 86 | ||||||||||
Net loss | $ | (7,194) | $ | (4,302) | $ | (2,791) | $ | (68,782) | $ | (35,228) | |||||
Loss per share: | |||||||||||||||
Basic and diluted | $ | (0.53) | $ | (0.59) | $ | (0.21) | $ | (5.36) | $ | (5.22) | |||||
Weighted average number of common shares outstanding: | |||||||||||||||
Basic and diluted | 13,590 | 7,321 | 13,590 | 12,836 | 6,754 | ||||||||||
INDEPENDENCE CONTRACT DRILLING, INC. Unaudited (in thousands, except par value and share data) | ||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
Nine Months Ended September 30, | ||||||
2022 | 2021 | |||||
Cash flows from operating activities | ||||||
Net loss | $ | (68,782) | $ | (35,228) | ||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities | ||||||
Depreciation and amortization | 29,719 | 29,244 | ||||
Asset impairment, net | — | 775 | ||||
Stock-based compensation | 2,976 | 1,770 | ||||
Gain on disposition of assets, net | (665) | (182) | ||||
Non-cash interest expense | 15,859 | 2,828 | ||||
Non-cash loss (gain) on extinguishment of debt | 46,347 | (10,128) | ||||
Amortization of deferred financing costs | 320 | 836 | ||||
Amortization of Convertible Notes issuance costs and debt discount | 4,310 | — | ||||
Change in fair value of embedded derivative liability | 4,265 | — | ||||
Gain on extinguishment of derivative | (10,765) | — | ||||
Deferred income taxes | 354 | 86 | ||||
Bad debt expense (recovery) | 256 | (52) | ||||
Changes in operating assets and liabilities | ||||||
Accounts receivable | (12,012) | (6,863) | ||||
Inventories | (291) | (40) | ||||
Prepaid expenses and other assets | 2,098 | 1,929 | ||||
Accounts payable and accrued liabilities | 208 | 7,322 | ||||
Net cash provided by (used in) operating activities | 14,197 | (7,703) | ||||
Cash flows from investing activities | ||||||
Purchases of property, plant and equipment | (22,286) | (9,692) | ||||
Proceeds from the sale of assets | 2,749 | 1,849 | ||||
Net cash used in investing activities | (19,537) | (7,843) | ||||
Cash flows from financing activities | ||||||
Proceeds from issuance of convertible debt | 157,500 | — | ||||
Repayments under Term Loan Facility | (139,076) | — | ||||
Borrowings under Revolving ABL Credit Facility | 1,576 | 4,309 | ||||
Repayments under Revolving ABL Credit Facility | (28) | (17) | ||||
Payment of merger consideration | (2,902) | — | ||||
Proceeds from issuance of common stock through at-the-market facility, net of issuance costs | 3,038 | 3,859 | ||||
Proceeds from issuance of common stock under purchase agreement | — | 2,072 | ||||
RSUs withheld for taxes | (32) | (11) | ||||
Convertible debt issuance costs | (7,230) | — | ||||
Financing costs paid under Revolving ABL Credit Facility | (266) | — | ||||
Payments for finance lease obligations | (3,814) | (2,643) | ||||
Net cash provided by financing activities | 8,766 | 7,569 | ||||
Net increase (decrease) in cash and cash equivalents | 3,426 | (7,977) | ||||
Cash and cash equivalents | ||||||
Beginning of period | 4,140 | 12,279 | ||||
End of period | $ | 7,566 | $ | 4,302 | ||
Nine Months Ended September 30, | ||||||
2022 | 2021 | |||||
Supplemental disclosure of cash flow information | ||||||
Cash paid during the period for interest | $ | 4,745 | $ | 6,660 | ||
Supplemental disclosure of non-cash investing and financing activities | ||||||
Change in property, plant and equipment purchases in accounts payable | $ | 9,015 | $ | 3,755 | ||
Additions to property, plant and equipment through finance leases | $ | 3,250 | $ | 754 | ||
Extinguishment of finance lease obligations from sale of assets classified as finance leases | $ | (163) | $ | — | ||
Transfer of assets from held and used to held for sale | $ | — | $ | (1,082) | ||
Gain on extinguishment of debt | $ | — | $ | 10,000 | ||
Shares issued for structuring fee | $ | 9,163 | $ | — | ||
The following table provides various financial and operational data for the Company's operations for the three months ended September 30, 2022 and 2021 and June 30, 2022 and the nine months ended September 30, 2022 and 2021. 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 the Company's 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, | ||||||||||||||||||
2022 | 2021 | 2022 | 2022 | 2021 | ||||||||||||||||
Number of marketed rigs end of period (1) | 26 | 24 | 24 | 26 | 24 | |||||||||||||||
Rig operating days (2) | 1,601 | 1,268 | 1,540 | 4,604 | 3,273 | |||||||||||||||
Average number of operating rigs (3) | 17.4 | 13.8 | 16.9 | 16.9 | 12.0 | |||||||||||||||
Rig utilization (4) | 70 | % | 58 | % | 71 | % | 69 | % | 50 | % | ||||||||||
Average revenue per operating day (5) | $ | 28,646 | $ | 17,141 | $ | 24,875 | $ | 25,216 | $ | 16,459 | ||||||||||
Average cost per operating day (6) | $ | 17,305 | $ | 13,685 | $ | 15,929 | $ | 16,452 | $ | 13,285 | ||||||||||
Average rig margin per operating day | $ | 11,341 | $ | 3,456 | $ | 8,946 | $ | 8,764 | $ | 3,174 | ||||||||||
(1) | Marketed rigs exclude idle rigs that will not be reactivated unless market conditions materially improve. |
(2) | Rig operating days represent the number of days the Company's rigs are earning revenue under a contract during the period, including days that standby revenue is 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 the Company's 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 out-of-pocket costs paid by customers of |
(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 |
Non-GAAP Financial Measures
Adjusted net debt, adjusted net (loss) income, EBITDA and adjusted EBITDA are supplemental non-GAAP financial measures that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. In addition, adjusted EBITDA is consistent with how EBITDA is calculated under the Company's credit facility for purposes of determining the Company's compliance with various financial covenants. The Company defines "adjusted net debt" as long-term notes (excluding long-term capital leases) less cash. The Company defines "adjusted net (loss) income" as net (loss) income before: asset impairment, net; gain or loss on disposition of assets, net; amortization of debt discount; amortization of issuance costs; gain or loss on extinguishment of debt; change in fair value of embedded derivative liability, gain on extinguishment of derivative and other adjustments. The Company defines "EBITDA" as earnings (or loss) before interest, taxes, depreciation and amortization, and asset impairment, net and the Company defines "adjusted EBITDA" as EBITDA before stock-based compensation, gain or loss on disposition of assets, gain or loss on extinguishment of debt, gain on extinguishment of derivative and other non-recurring items added back to, or subtracted from, net income for purposes of calculating EBITDA under the Company's 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 debt, adjusted net (loss) income, EBITDA and adjusted EBITDA are useful because they allow the Company's stockholders to more effectively evaluate the Company's operating performance and compliance with various financial covenants under the Company's credit facility and compare the results of the Company's operations from period to period and against the Company's peers without regard to the Company's financing methods or capital structure or non-recurring, non-cash transactions. The Company excludes 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 the Company's 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 the Company's 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. The Company's presentation of adjusted net debt, adjusted net (loss) income, EBITDA and adjusted EBITDA should not be construed as an inference that the Company's results will be unaffected by unusual or non-recurring items. The Company's computations of adjusted net debt, adjusted net (loss) income, EBITDA and adjusted EBITDA may not be comparable to other similarly titled measures of other companies.
Calculation of Adjusted Net Debt: | |||
(in thousands) | September 30, 2022 | ||
Convertible Notes | $ | 170,166 | |
Revolving ABL Credit Facility | 7,848 | ||
Less: Cash | (7,566) | ||
Adjusted net debt | $ | 170,448 | |
Reconciliation of Adjusted Net Debt to Reported Long-Term Debt: | |||
(in thousands) | September 30, 2022 | ||
Adjusted net debt | $ | 170,448 | |
Add back: | |||
Cash | 7,566 | ||
Long-term portion of finance lease obligations | 1,745 | ||
Less: | |||
Debt discount, net of amortization | (34,761) | ||
Deferred issuance costs, net of amortization | (8,242) | ||
Total reported long-term debt | $ | 136,756 | |
Reconciliation of Net Loss to Adjusted Net Loss: | ||||||||||||||||||||||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||
September 30, | June 30, | September 30, | ||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2022 | 2021 | ||||||||||||||||||||||||||||||||
Amount | Per Share | Amount | Per Share | Amount | Per Share | Amount | Per Share | Amount | Per Share | |||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||
Net loss | $ | (7,194) | $ | (0.53) | $ | (4,302) | $ | (0.59) | $ | (2,791) | $ | (0.21) | $ | (68,782) | $ | (5.36) | $ | (35,228) | $ | (5.22) | ||||||||||||||||
Add back: | ||||||||||||||||||||||||||||||||||||
Asset impairment, net (1) | — | — | 482 | 0.07 | — | — | — | — | 775 | 0.12 | ||||||||||||||||||||||||||
Loss (gain) on disposition | 433 | 0.03 | 222 | 0.03 | (582) | (0.04) | (665) | (0.05) | (182) | (0.03) | ||||||||||||||||||||||||||
Amortization of debt discount | 1,354 | 0.10 | — | — | 1,462 | 0.11 | 2,816 | 0.22 | — | — | ||||||||||||||||||||||||||
Amortization of issuance costs | 606 | 0.05 | — | — | 518 | 0.04 | 1,124 | 0.09 | — | — | ||||||||||||||||||||||||||
Loss (gain) on extinguishment | — | — | (10,128) | (1.38) | — | — | 46,347 | 3.61 | (10,128) | (1.50) | ||||||||||||||||||||||||||
Change in fair value of | — | — | — | — | 2,408 | 0.17 | 4,265 | 0.33 | — | — | ||||||||||||||||||||||||||
Gain on extinguishment of | — | — | — | — | (10,765) | (0.79) | (10,765) | (0.84) | — | — | ||||||||||||||||||||||||||
Adjusted net loss | $ | (4,801) | $ | (0.35) | $ | (13,726) | $ | (1.87) | $ | (9,750) | $ | (0.72) | $ | (25,660) | $ | (2.00) | $ | (44,763) | $ | (6.63) | ||||||||||||||||
Reconciliation of Net Loss to EBITDA and Adjusted EBITDA: | ||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | June 30, | September 30, | ||||||||||||||
2022 | 2021 | 2022 | 2022 | 2021 | ||||||||||||
(in thousands) | ||||||||||||||||
Net loss | $ | (7,194) | $ | (4,302) | $ | (2,791) | $ | (68,782) | $ | (35,228) | ||||||
Add back: | ||||||||||||||||
Income tax (benefit) expense | (696) | 19 | 2,199 | 783 | 86 | |||||||||||
Interest expense | 8,098 | 3,812 | 8,232 | 21,005 | 11,294 | |||||||||||
Depreciation and amortization | 10,120 | 9,739 | 9,848 | 29,719 | 29,244 | |||||||||||
Asset impairment, net (1) | — | 482 | — | — | 775 | |||||||||||
EBITDA | 10,328 | 9,750 | 17,488 | (17,275) | 6,171 | |||||||||||
Loss (gain) on disposition of assets, net (2) | 433 | 222 | (582) | (665) | (182) | |||||||||||
Stock-based and deferred compensation cost | 1,709 | 819 | 674 | 3,361 | 2,421 | |||||||||||
Loss (gain) on extinguishment of debt (3) | — | (10,128) | — | 46,347 | (10,128) | |||||||||||
Change in fair value of embedded derivative liability (4) | — | — | 2,408 | 4,265 | — | |||||||||||
Gain on extinguishment of derivative (5) | — | — | (10,765) | (10,765) | — | |||||||||||
Adjusted EBITDA | $ | 12,470 | $ | 663 | $ | 9,223 | $ | 25,268 | $ | (1,718) | ||||||
(1) | During the third quarter of 2021, we impaired |
(2) | Loss or gain on disposition of assets, net represents the sale or disposition of miscellaneous drilling equipment in each respective period. |
(3) | Loss on extinguishment of debt related to unamortized debt issuance costs on our prior term loan facility, non-cash structuring fees settled in shares to the affiliates of our prior term loan facility and the fair value of the embedded derivatives attributable to the affiliates of our prior term loan facility in the first quarter of 2022. During the third quarter of 2021, we received notice from the SBA of full forgiveness of our PPP loan and recorded a gain on extinguishment of debt of |
(4) | Represents the change in fair value of embedded derivative liability between March 31, 2022 and June 8, 2022, and March 18, 2022 and June 8, 2022, respectively. The embedded derivative liability was extinguished on June 8, 2022. |
(5) | Represents the gain on extinguishment of the variable PIK interest rate feature of the derivative liability. |
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 the earnings results for ICD in Q3 2022?
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What is the outlook for ICD's margins in Q4 2022?
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