Independence Contract Drilling (ICD) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was $38.0M, down 14% year-over-year due to lower dayrates and operating days.

• Net loss for Q3 2024 was $18.5M, compared to a net loss of $7.6M in Q3 2023.

• Company faces substantial doubt about its ability to continue as a going concern due to expected covenant breaches and liquidity constraints.

• Delisted from NYSE in August 2024; now trades on OTCQX under symbol ICDI.

Financial highlights

• Q3 2024 revenues: $38.0M (Q3 2023: $44.2M); nine months ended Sept 2024: $128.0M (2023: $164.3M).

• Q3 2024 operating loss: $8.9M (Q3 2023: $0.8M income); nine months: $15.9M loss (2023: $13.4M income).

• Q3 2024 net loss: $18.5M (Q3 2023: $7.6M); nine months: $44.2M loss (2023: $11.7M).

• Cash from operations for nine months: $29.1M (2023: $53.5M); cash at period end: $6.1M.

• Negative working capital of $9.5M as of September 30, 2024.

Outlook and guidance

• Average operating rig count expected to decline in Q4 2024 due to rig churn and customer consolidation.

• Borrowing base under Revolving ABL Credit Facility expected to decline as activity drops.

• Company expects to pay interest in-kind on Convertible Notes until maturity in March 2026.