Independence Contract Drilling (ICD) Tops Q4 EPS by 3c

Independence Contract Drilling (NYSE: ICD) reported Q4 EPS of $0.01, $0.03 better than the analyst estimate of ($0.02). Revenue for the quarter came in at $62.79 million versus the consensus estimate of $58.15 million.

• Net loss of $8.6 million, or $0.11 per share.
• Adjusted net income, as defined below, of $1.0 million, or $0.01 per share.
• Adjusted EBITDA, as defined below, of $16.0 million.
• Net debt, excluding capitalized leases, of $117.1 million.
• Fleet utilization of 95.7%.
• Fully-burdened margin of $7,501 per day.
• Completion of the Sidewinder merger on October 1, 2018.

Chief Executive Officer Anthony Gallegos commented, "The fourth quarter of 2018 was transformational for Independence Contract Drilling. We successfully completed the combination with Sidewinder, more than doubling our operating fleet. The combination fundamentally improved our profitability and free cash flow and the operating and financial scale of the Company.

The post-combination integration is progressing exceptionally well thanks to the efforts of our dedicated field and corporate employees who have worked diligently while maintaining our focus on safe and reliable operations and cost control. We are confident that we can exceed our $10 million synergy goal by the third quarter of 2019.

During the fourth quarter, we mobilized an incremental rig that commenced drilling operations in December under a one-year contract. We also successfully recontracted or extended contracts on five rigs with expiring contracts. As a result, we exited 2018 with 32 drilling rigs operating.

Looking forward into 2019, the decline in oil price during the fourth quarter of 2018 negatively impacted our customers' budgeting processes and 2019 capital budgets. Although we remain encouraged by the oil price recovery and recent stabilization, we have seen some softness in drilling activity. However, we expect super-spec rig utilization to remain robust, with only minimal periods of transitory idle time as operators reshape and high-grade their contracted rig fleets in light of their capital budgets."

For earnings history and earnings-related data on Independence Contract Drilling (ICD) click here.

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