Independence Contract Drilling (ICD) Tops Q1 EPS by 10c, Revenues Miss

Independence Contract Drilling (NYSE: ICD) reported Q1 EPS of ($2.64), $0.10 better than the analyst estimate of ($2.74). Revenue for the quarter came in at $15.54 million versus the consensus estimate of $19 million.

First quarter 2021 Highlights

• Net loss of $16.0 million, or $2.58 per share.
• Adjusted net loss, as defined below, of $16.4 million, or $2.64 per share.
• Adjusted EBITDA loss, as defined below, of $2.0 million.
• Net debt, excluding finance leases and net of deferred financing costs, of $132.1 million.
• Marketed fleet utilization of 43%.
• Fully burdened margin of $2,802 per day.

Chief Executive Officer Anthony Gallegos commented, "I am very pleased with our operational performance during the first quarter of 2021. It played out very much as expected as we safely and successfully reactivated several rigs during the quarter. The reactivations were on budget, and the rigs hit the ground running for our clients with minimal downtime, in a few instances setting drilling records for our clients right away. We have maintained strong cost control and operational efficiency throughout this process, but I am even more excited with the progress we made at quarter end and so far during the second quarter. We continue to see increasing demand for all of our rigs and are experiencing dayrate improvement on renewals and reactivations across our fleet which will drive sequential improvements in reported margins over at least the remainder of the year. Demand for ICD rigs is being driven not only by rig specification, but also by operating performance as we have displaced several larger competitor rigs with key customers. In particular, we are seeing strong improvements in utilization for our 300 series rigs involving customers drilling extended reach laterals or using high torque drill strings. By the end of the second quarter, we expect to have at least 15 rigs operating, of which six will be 300 series rigs, and based upon inquiries to date and stable commodity prices, we expect further reactivations during the back half of the year and continued positive dayrate momentum."

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

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