Independence Contract Drilling (ICD) Tops Q3 EPS by 45c

Independence Contract Drilling (NYSE: ICD) reported Q3 EPS of ($2.73), $0.45 better than the analyst estimate of ($3.18). Revenue for the quarter came in at $10.2 million versus the consensus estimate of $10 million.

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."

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

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