Independence Contract Drilling (ICD) Misses Q4 EPS by 2c, Revenues Beat

Independence Contract Drilling (NYSE: ICD) reported Q4 EPS of ($2.65), $0.02 worse than the analyst estimate of ($2.63). Revenue for the quarter came in at $13.3 million versus the consensus estimate of $13.2 million.

Fourth Quarter 2020 Highlights

• Net loss of $43.1 million, or $7.02 per share.
• Adjusted net loss, as defined below, of $16.3 million, or $2.65 per share.
• Adjusted EBITDA loss, as defined below, of $1.5 million.
• Net debt, excluding finance leases and net of deferred financing costs, of $125.1 million.
• Marketed fleet utilization of 27%.
• Fully burdened margin of $3,001 per day.

Chief Executive Officer Anthony Gallegos commented, "The fourth quarter of 2020 marked an inflection point as our contracted rig count increased materially as demand for our services continued to recover from the effects of the COVID-19 pandemic. Our operating teams, supported by our industry leading systems and processes, performed exceptionally well during this period. In addition, several of our prior customers reinitiated drilling activities and contracted ICD rigs to execute their programs. Overall, since the trough of three operating rigs during the third quarter of 2020, we reactivated five rigs as of year end, representing a 167% increase over this low point. All of these reactivations were completed safely, on time, on budget and with exceptional uptime performance. We are grateful for our customers and appreciate the hard work of ICD's dedicated employees to make this performance possible."

"Looking out across our primary markets, including the Permian, Haynesville and Eagle Ford, we continue to see opportunities to increase our contracted rig count as the underlying macro environment continues to improve. Since the beginning of 2021, we have reactivated an additional three rigs and a fourth reactivation is scheduled to occur in early March. Driven by our desire to maximize shareholder returns and capitalize on improving market conditions, our Board of Directors has approved a capital budget for 2021 of $5.8 million, the vast majority of which will be maintenance driven, representing a substantial reduction compared to 2020 capital expenditures of $14.2 million."

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

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