Independence Contract Drilling, Inc. Reports Financial Results For The Third Quarter Ended September 30, 2016

Operating expenses, excluding reactivation costs, were $9,614 per day during the third quarter of 2016, compared to $8,757 during the second quarter of 2016 and $13,239 during the third quarter of 2015.  The increase in operating costs per day was principally driven by a reduction in the number of standby-without-crew days during the quarter compared to the prior periods.   At the rig level, costs per day for rigs operating throughout the quarter remained relatively flat at $10,594.

Selling, general and administrative expenses during the third quarter were $3.2 million, compared to $5.0 million during the second quarter of 2016 and $3.8 million during the third quarter of 2015.  Selling, general and administrative expenses during the third quarter of 2016 included $0.1 million in severance expense, and during the second quarter of 2016, included a $1.5 million retirement accrual.  Non-cash stock-based compensation expense was $1.0 million during the third quarter of 2016, compared to $1.2 million and $0.7 million in the second quarter of 2016 and the third quarter of 2015, respectively.  

Excluding severance and retirement expense and non-cash stock-based compensation expense, selling, general and administrative expenses during the third quarter of 2016 were $2.2 million, compared to $2.3 million during the second quarter of 2016 and $3.0 million during the third quarter of 2015.  The overall decrease in selling, general and administrative expenses, excluding these items, compared to the prior periods relates to efficiency initiatives instituted during 2015 and 2016.

Drilling Operations Update

During the third quarter of 2016, the Company reactivated five rigs from cold stack and standby status and began the fourth quarter of 2016 with ten contracted rigs, including one rig earning revenue on a standby basis.

Since the end of the third quarter, the Company has signed two new one-year term contracts, with expected rig mobilizations at the end of the year, bringing the number of contracted rigs to twelve, approximately 92% of ICD's marketed fleet. 

Capital Expenditures and Liquidity Update

Aggregate cash outlays for capital expenditures, net of disposal proceeds, during the third quarter were $6.7 million.  The Company's capital expenditure budget for the remainder of 2016 has been increased to $7.0 million, representing an increase of approximately $5.7 million associated with additional rig upgrades compared to the prior budget.

At September 30, 2016, the Company had drawn $23.0 million on its revolving credit facility and had net debt, excluding capital lease obligations, of $15.1 million.  Increases in borrowings during the quarter resulted from capital expenditures and working capital investments associated with rig reactivations.  The borrowing base under the credit facility was $78.0 million at September 30, 2016.  Remaining availability under the credit facility was $55.0 million at September 30, 2016.

Summary of Charges

Charges incurred during the third quarter of 2016 included the following items:

• $0.7 million, or $0.02 per share, non-cash disposal of equipment in connection with the upgrade to 7,500psi mud systems.

Charges incurred during the second quarter of 2016 included the following items:

• $1.5 million, or $0.04 per share, of retirement benefits associated with the departure of an executive officer, and 
• $0.5 million, or $0.01 per share, related to the amortization of deferred financing costs in connection with a reduction of commitments under the Company's revolving credit facility.

Charges incurred during the third quarter of 2015 included the following items:

• $2.2 million, or $0.09 per share, non-cash disposal charge associated with the conversion of one of the Company's non-walking rigs to 200 series pad-optimal status.

Conference Call Details

A conference call for investors will be held today, October 26, 2016, at 10:00 a.m. Central Time (11:00 p.m. Eastern Time) to discuss the Company's third quarter 2016 results.  Hosting the call will be Byron A. Dunn, President and Chief Executive Officer, and Philip A. Choyce, Executive Vice President and Chief Financial Officer.

The call can be accessed live over the telephone by dialing (855) 239-3115 or for international callers, (412) 542-4125.  A replay will be available shortly after the call and can be accessed by dialing (877) 344-7529 or for international callers, (412) 317-0088.  The passcode for the replay is 10094308.  The replay will be available until November 2, 2016.

Interested parties may also listen to a simultaneous webcast of the conference call by logging onto the Company's website at www.icdrilling.com in the Investor Relations section.  A replay of the webcast will also be available for approximately 30 days following the call.

About Independence Contract Drilling, Inc.

Independence Contract Drilling provides land-based contract drilling services for oil and natural gas producers in the United States. The Company constructs, owns and operates a fleet of pad-optimal ShaleDriller rigs that are specifically engineered and designed to accelerate its clients' production profiles and cash flows from their most technically demanding and economically impactful oil and gas properties. For more information, visit www.icdrilling.com.

Forward-Looking Statements

This news release contains certain forward-looking statements within the meaning of the federal securities laws. Words such as "anticipated," "estimated," "expected," "planned," "scheduled," "targeted," "believes," "intends," "objectives," "projects," "strategies" and similar expressions are used to identify such forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements relating to Independence Contract Drilling's operations are based on a number of expectations or assumptions which have been used to develop such information and statements but which may prove to be incorrect. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict, and there can be no assurance that actual outcomes and results will not differ materially from those expected by management of Independence Contract Drilling. For more information concerning factors that could cause actual results to differ materially from those conveyed in the forward-looking statements, please refer to the "Risk Factors" section of the Company's Annual Report on Form 10-K, filed with the SEC and the information included in subsequent amendments and other filings. These forward-looking statements are based on and include our expectations as of the date hereof. Independence Contract Drilling does not undertake any obligation to update or revise such forward-looking statements to reflect events or circumstances that occur, or which Independence Contract Drilling becomes aware of, after the date hereof.

INVESTOR CONTACTS:
Independence Contract Drilling, Inc.
E-mail inquiries to: investor.relations@icdrilling.com
Phone inquiries: (281) 598-1211

INDEPENDENCE CONTRACT DRILLING, INC. Unaudited (in thousands, except par value and share data)
BALANCE SHEETS
							September 30, 2016		December 31, 2015
Assets
Cash and cash equivalents							$                         7,912		$                        5,344
Accounts receivable, net							8,965		18,240
Inventory							2,537		2,317
Prepaid expenses and other current assets							3,043		3,436
		Total current assets					22,457		29,337
Property, plant and equipment, net							281,494		283,378
Other long-term assets, net							1,178		2,074
		Total assets					$                     305,129		$                    314,789
Liabilities and Stockholders' Equity
Liabilities
	Current portion of long-term debt (1)						$                            439		$                                -
	Accounts payable						7,975		8,584
	Accrued liabilities						6,214		10,206
		Total current liabilities					14,628		18,790
	Long-term debt (2)						23,362		62,708
	Deferred income taxes						261		193
	Other long-term liabilities						100		361
		Total liabilities					38,351		82,052
Commitments and contingencies
Stockholders' equity
	Common stock, $0.01 par value, 100,000,000 shares authorized; 37,808,242 and 24,539,937 shares issued, respectively; and 37,606,508 and 24,403,659 shares outstanding, respectively
							376		244
	Additional paid-in capital						323,005		276,948
	Accumulated deficit						(54,972)		(43,169)
	Treasury stock, at cost, 201,734 and 136,278 shares, respectively						(1,631) Werbung Mehr Nachrichten zur Independence Contract Drilling Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 22.04.24 - PR Newswire Ashtead Group Plc - Transaction in Own Shares 22.04.24 - PR Newswire Rightmove Plc - Transaction in Own Shares 22.04.24 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Accrol Group Holdings plc Der KI-Boom ist vorbei!    Aber dieser heiße Sektor verspricht, weiter zu wachsen... weiterlesen» Anzeige wo-site-teaser-box-16737_site-teaser-box_2024-04-23_09%253A00%253A00_2024-04-24_09%253A00%253A59