Independence Contract Drilling (ICD) Tops Q1 EPS by 1c, Revenues Beat

Independence Contract Drilling (NYSE: ICD) reported Q1 EPS of ($2.82), $0.01 better than the analyst estimate of ($2.83). Revenue for the quarter came in at $38.5 million versus the consensus estimate of $37.1 million.

First Quarter 2020 Highlights

• Net loss of $28.2 million, or $7.53 per share.
• Adjusted net loss, as defined below, of $10.6 million, or $2.82 per share.
• Adjusted EBITDA, as defined below, of $5.1 million.
• Net debt, excluding finance leases and net of deferred financing costs, of $128.9 million.
• Marketed fleet utilization of 66%.
• Fully burdened margin of $5,175 per day.

Chief Executive Officer Anthony Gallegos commented, "The COVID-19 pandemic began to impact our operating rig count and results of operations late in the first quarter of 2020. The historic declines in oil demand and prices during March negatively impacted rig demand as evidenced by the significant decline in active drilling rigs working in North America. The pandemic and its effects are causing a rapid and substantial reduction in drilling activity which we expect will continue to play out throughout the second quarter of 2020 and beyond until economic activity rebounds and oil supply and demand fundamentals improve. In line with this view, the Company took actions beginning in March to reduce its cost structure through reducing headcount, salary, and other elements of compensation for all personnel and other initiatives including reducing planned capital expenditures and elimination of executive management and board positions.

As the impacts of the pandemic continue to play out, we currently estimate that we will exit the second quarter of 2020 with six rigs contracted, and because we cannot estimate the duration and ultimate impact of the COVID-19 pandemic, additional reductions in our operating rig count are possible as contracts on operating rigs expire during the back half of 2020. In this uncertain environment, we are focused on the safety of our workforce, exceeding our customers' expectations, and maximizing our available financial liquidity opportunities."

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

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Star Equity Holdings (STRR) Misses Q2 EPS by 8c
• Boost Run posts Q2 revenue of $31.1M, up 270% year over year