reports
- Jeff Robertson
Premium Rig Fleet Supports Deleveraging Goal
Despite turbulence affecting the 2Q23 and 3Q23 oilfield services markets, demand for ICD’s fleet of pad-optimal super-spec drilling rigs supports management’s ultimate goal of deleveraging the balance sheet and shifting value to equity owners. ICD generated $18.7 million of adjusted EBITDA in 2Q23 from 15.0 average rigs earning revenue. Margin per day averaged $15,462, landing in the high end of management’s $15,000-15,500 guidance range. Margin was helped by operating costs, which declined to $...
- Jeff Robertson
Estimate Update Reflects Curtailed Industry Drilling Activity
The US rig count has declined in recent months as operators have curtailed activity in the face of declining oil and natural gas prices. According to the Baker Hughes rig count, total US working rigs had declined to 669 on July 21, 2023, from 755 on March 31, 2023. ICD’s fleet of pad-optimal super-spec rigs primarily serves customers in the Haynesville, Permian, and Eagle Ford regions. The ability of ICD’s rigs to support multi-well pad development projects targeting long-lateral horizontal well...
- Jeff Robertson
Fundamentals Support Deleveraging Path
We hosted a fireside chat with President and Chief Executive Officer Anthony Gallegos on April 4. Our wide-ranging conversation touched on market conditions for ICD's fleet of pad-optimal super-spec drilling rigs, transitioning rigs to oil-directed drilling in the Permian Basin from gas-directed drilling in the Haynesville Shale, and the ability of ICD to deleverage the balance sheet through free cash flow generation. This report contains a transcript of the fireside chat from April 4, which can...
- Jeff Robertson
Expect Cash Build Despite Near-Term Margin Pressure
Strong demand for pad-optimal super-spec drilling rigs drove ICD's solid 1Q23 financial and operating results. ICD generated 1Q23 adjusted EBITDA of $21.4 million on revenue of $63.8 million, up 16% from 4Q22. Adjusted EBITDA in 1Q22 was $3.6 million. Revenue was earned on an average of 19.4 rigs working for 1,744 days. Rig utilization was 75%. In 4Q22, ICD averaged 18.5 rigs working for 1,704 days...
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