Document_and_Entity_Informatio
Document and Entity Information Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 11-May-15 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Independence Contract Drilling, Inc. | |
Entity Central Index Key | 1537028 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 24,620,243 |
Balance_Sheets
Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Deferred Tax Assets, Net, Current | $364 | $323 |
Assets | ||
Cash and cash equivalents | 11,043 | 10,757 |
Accounts receivable, net | 17,999 | 19,127 |
Inventory | 2,191 | 2,124 |
Prepaid expenses and other current assets | 3,535 | 3,969 |
Total current assets | 35,132 | 36,300 |
Property, plant and equipment, net | 273,924 | 250,498 |
Other long-term assets, net | 2,580 | 2,749 |
Total assets | 311,636 | 289,547 |
Liabilities | ||
Current portion of long-term debt | 0 | 22,519 |
Accounts payable | 30,013 | 21,993 |
Accrued liabilities | 5,386 | 6,970 |
Income taxes payable | 253 | 408 |
Total current liabilities | 35,652 | 51,890 |
Long-term debt | 35,940 | 0 |
Other long-term liabilities | 415 | 598 |
Deferred taxes | 364 | 323 |
Total liabilities | 72,371 | 52,811 |
Commitments and contingencies | ||
Stockholders’ equity | ||
Common stock, $0.01 par value, 100,000,000 shares authorized; 24,705,254 and 24,714,344 issued, respectively; 24,620,243 and 24,629,333 outstanding, respectively | 246 | 246 |
Additional paid-in capital | 273,904 | 272,750 |
Accumulated deficit | -33,914 | -35,289 |
Treasury shares, at cost, 85,011 shares | -971 | -971 |
Total stockholders’ equity | 239,265 | 236,736 |
Total liabilities and stockholders’ equity | $311,636 | $289,547 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $0.01 | $0.01 |
Shares authorized | 100,000,000 | 100,000,000 |
Shares issued | 24,705,254 | 24,714,344 |
Shares outstanding | 24,620,243 | 24,629,333 |
Treasury stock | 85,011 | 85,011 |
Statements_of_Operations
Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Revenues | $22,306 | $13,549 |
Costs and expenses | ||
Operating costs | 13,106 | 8,777 |
Selling, general and administrative | 3,827 | 2,094 |
Depreciation and amortization | 4,289 | 3,416 |
(Insurance recoveries) asset impairment, net | -841 | 4,650 |
Loss (gain) on disposition of assets | 393 | -189 |
Total costs and expenses | 20,774 | 18,748 |
Operating income (loss) | 1,532 | -5,199 |
Interest expense | -312 | -394 |
Gain on warrant derivative | 0 | 3 |
Income (loss) before income taxes | 1,220 | -5,590 |
Income tax benefit | -155 | -1,885 |
Net income (loss) | $1,375 | ($3,705) |
Earnings (loss) per share: | ||
Earings (loss) per share - basic | $0.06 | ($0.30) |
Earings (loss) per share - diluted | $0.06 | ($0.30) |
Weighted average number of common shares outstanding: | ||
Weighted average number of common shares outstanding: Basic and diluted | 24,629 | 12,251 |
Statements_of_Stockholders_Equ
Statements of Stockholders’ Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Treasury Stock |
In Thousands, except Share data | |||||
Beginning balance at Dec. 31, 2014 | $236,736 | $246 | $272,750 | ($35,289) | ($971) |
Beginning balance (in shares) at Dec. 31, 2014 | 24,629,333 | ||||
Restricted stock forfeited, shares | -9,090 | ||||
Restricted stock forfeited | 0 | 0 | 0 | ||
Total stock-based compensation | 1,154 | 1,154 | |||
Stock-based compensation | 1,154 | ||||
Net income | 1,375 | 1,375 | |||
Ending balance at Mar. 31, 2015 | $239,265 | $246 | $273,904 | ($33,914) | ($971) |
Ending balance (in shares) at Mar. 31, 2015 | 24,620,243 |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities | ||
Net income (loss) | $1,375 | ($3,705) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ||
Depreciation and amortization | 4,289 | 3,416 |
(Insurance recoveries) asset impairment, net | -841 | 4,650 |
Stock-based compensation | 933 | 448 |
Gain on warrant derivative | 0 | -3 |
Loss (gain) on disposition of assets | 393 | -189 |
Deferred taxes | 0 | -1,885 |
Amortization of deferred financing costs | 153 | 152 |
Bad debt expense | 73 | 0 |
Changes in operating assets and liabilities | ||
Accounts receivable | 1,055 | -1,718 |
Inventory | -67 | -406 |
Vendor advances | 0 | -2,450 |
Prepaid expenses and other current assets | -811 | -1,500 |
Accounts payable and accrued liabilities | -1,080 | -1,547 |
Income taxes payable | -155 | 0 |
Net cash provided by (used in) operating activities | 5,317 | -4,737 |
Cash flows from investing activities | ||
Purchases of property, plant and equipment | -21,283 | -12,432 |
Proceeds from insurance claims | 2,899 | 0 |
Proceeds from the sale of property, plant and equipment | 93 | 464 |
Net cash used in investing activities | -18,291 | -11,968 |
Cash flows from financing activities | ||
Borrowings under credit facility | 39,760 | 32,012 |
Repayments under credit facility | -26,339 | -13,694 |
Financing costs paid | -161 | -1,232 |
Net cash provided by financing activities | 13,260 | 17,086 |
Net increase in cash and cash equivalents | 286 | 381 |
Beginning of period | 10,757 | 2,730 |
End of period | 11,043 | 3,111 |
Supplemental disclosure of cash flow information | ||
Cash paid during the period for taxes | 0 | 0 |
Cash paid during the period for interest | 603 | 303 |
Supplemental disclosure of non-cash investing and financing activties | ||
Stock-based compensation capitalized as property, plant and equipment | 221 | 106 |
Purchases of property plant and equipment in accounts payable | $7,333 | $5,647 |
Nature_of_Operations
Nature of Operations | 3 Months Ended |
Mar. 31, 2015 | |
Nature of operations [Abstract] | |
Nature of Operations | Nature of Operations |
Independence Contract Drilling, Inc. (“we,” “us,” “our,” the “Company” or “ICD”) was incorporated in Delaware on November 4, 2011. We provide land-based contract drilling services for oil and natural gas producers targeting unconventional resource plays in the United States. We construct, own and operate a premium fleet comprised entirely of newly constructed, technologically advanced, custom designed ShaleDriller™ rigs that are specifically engineered and designed to optimize the development of our customers’ most technically demanding oil and gas properties. Our first rig began drilling in May 2012. | |
Our standardized fleet consisted of fourteen premium rigs as of March 31, 2015. Of these fourteen rigs, two were completed in March 2015 and one was under construction and scheduled for completion during the third quarter of 2015. Currently, twelve of our fourteen rigs contain our integrated multi-directional walking system that is specifically designed to optimize pad drilling for our customers. | |
Our business depends on the level of exploration and production activity by oil and gas companies operating in the U.S., and in particular, the regions where we actively market our contract drilling services. The oil and gas exploration and production industry is a historically cyclical industry characterized by significant changes in the levels of exploration and development activities. Oil and gas prices and market expectations of potential changes in those prices significantly affect the levels of those activities. Worldwide political, regulatory, economic, and military events as well as natural disasters have contributed to oil and gas price volatility and are likely to continue to do so in the future. Any prolonged reduction in the overall level of exploration and development activities in the U.S. and the regions where we market our contract drilling services, whether resulting from changes in oil and gas prices or otherwise, could materially and adversely affect our business. | |
In this regard, oil prices declined significantly during the second half of 2014 and have continued to decline in 2015. The closing price of oil was as high as $106.06 per barrel during the third quarter of 2014, as low as $44.08 per barrel in late January 2015 and around $58.92 per barrel during the first week in May 2015 (WTI spot price as reported by the United States Energy Information Administration). As a result of the decline in oil prices, our industry is now experiencing a severe downturn. Market conditions remain very dynamic and are changing quickly. Although the magnitude as well as the duration of this downturn are not yet known, we believe that 2015 will continue to be a very challenging year for our industry. | |
We believe the vast majority of exploration and production companies, including our customers, have significantly reduced their 2015 capital spending plans. The initial impact of these spending reductions is evidenced by the published rig counts in the United States, which have declined more than 50% since their recent peak in October 2014, and we believe the rig count in the United States will significantly decline further in 2015. | |
As a result of this deterioration in market conditions, our customers are principally focused on their most economic wells and on maintaining their most cost efficient operations that deliver the overall lowest cost of producing their wells. As a result, operators are focusing more of their capital spending on horizontal drilling programs on multi-well pads compared to vertical drilling and are more focused on utilizing drilling equipment and techniques that optimize costs and efficiency. Thus, we believe this rapid market deterioration has significantly accelerated the pace of the ongoing land rig replacement cycle and continued shift to horizontal drilling from multi-well pads. | |
Although we believe that the current market downturn is rapidly increasing the focus of our customers towards the use of premium drilling rigs such as our ShaleDriller™, and that premium operations such as ours will be less affected by the downturn relative to operations conducted by legacy fleets, the rapid pace and level of the market decline has negatively impacted pricing, utilization and contract tenors for premium rigs, including our ShaleDriller™ rig. During 2014, we operated our premium drilling fleet with 99.7% contractual utilization, but we do not expect to maintain this level of utilization while this current market downturn continues. In the first quarter of 2015, one of our non-walking rigs became idle and we are evaluating whether to upgrade it with our multi-directional walking system. During the second quarter of 2015, we have three contracts with terms expiring. We expect to market these rigs at substantially lower dayrates than their expiring contracts and at lower contractual utilization rates than where we historically have operated, and there can be no assurance that these rigs will remain operating at profitable levels. | |
Damage Sustained on Rig 102 | |
On March 9, 2014, one of our non-walking drilling rigs (Rig 102) suspended drilling operations due to damage to the rig’s mast and other operating equipment. While under repair, we upgraded this rig by adding a substructure and other equipment that includes a multi-directional walking system. The cost of the upgrades were not covered by insurance. The repairs and upgrades were completed in October 2014 and the upgraded rig was renamed Rig 208. We recorded an asset impairment charge of $4.7 million during the three months ended March 31, 2014, representing a preliminary estimate of the damage sustained to the rig ($2.9 million), as well as the impairment of certain non-damaged items associated with the upgrade ($1.8 million). During the three months ended June 30, 2014, we recorded approximately $2.3 million in insurance proceeds related to repairing damage to the rig ($2.0 million) as well as the recovery of certain out-of-pocket expenses ($0.3 million), for which we had received a partial proof of loss from the insurance company. As of September 30, 2014, all of the $2.3 million had been collected. In the fourth quarter of 2014, we recorded an additional $1.6 million in insurance recoveries related to repairing damage to the rig ($1.0 million) as well as the recovery of out-of-pocket expenses ($0.6 million), for which we had received a second partial proof of loss from the insurance company. During the first quarter of 2015, we received a final payment of $2.9 million from the insurance company, and recognized an additional $1.3 million insurance recovery, representing the excess of the insurance recovery over the total impairment attributable to the damage to the rig. | |
Stock Split | |
On July 14, 2014, our board of directors approved a resolution to effect a 1.57-for-1 stock split of our common stock in the form of a stock dividend. The dividend was distributed on July 24, 2014 to holders of record as of July 21, 2014. The earnings per share information and all common stock information in these financial statements have been retroactively restated for all periods presented to reflect this stock split. | |
Initial Public Offering | |
On August 7, 2014, our registration statement on Form S-1 (File No. 333-196914) (the "Form S-1") was declared effective by the Securities and Exchange Commission for our initial public offering pursuant to which we sold an aggregate of 11,500,000 shares of our common stock at a price to the public of $11.00 per share, which included 1,500,000 share of our common stock sold pursuant to the exercise by the underwriters in full of their option to purchase additional shares of common stock to cover over-allotments (the "Over-Allotment Option"). Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and Tudor, Pickering, Holt & Co. Securities, Inc. acted as book runners. We completed our initial public offering of 10,000,000 shares of our common stock on August 13, 2014 and subsequently closed the issuance and sale of the additional 1,500,000 shares of our common stock pursuant to the Over-Allotment Option on August 29, 2014. Our common stock trades on the New York Stock Exchange under the ticker symbol "ICD." Net proceeds from the offering were $116.5 million after deducting $7.6 million of underwriting discounts and commissions, as well as legal, accounting, printing and other expenses directly associated with the offering totaling $2.4 million. All of the outstanding borrowings on our revolving credit facility were repaid immediately following the offering. |
Interim_Financial_Information
Interim Financial Information | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Interim Financial Information | Interim Financial Information |
These unaudited financial statements include all the accounts of ICD, and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These financial statements should be read along with our audited financial statements for the year ended December 31, 2014, included in our Annual Report on Form 10-K, as certain information and footnote disclosures included in annual financial statements prepared in accordance with GAAP have been omitted. In management’s opinion, these financial statements contain all adjustments necessary to fairly present our financial position, results of operations, cash flows and changes in equity for all periods presented. | |
As we had no items of other comprehensive income in any period presented, no other comprehensive income or comprehensive income is presented. | |
Interim results for the three months ended March 31, 2015 may not be indicative of results that will be realized for the full year ending December 31, 2015. | |
Segment and Geographical Information | |
Our operations consist of one reportable segment because all of our drilling operations are located in the United States and have similar economic characteristics. Corporate management administers all properties as a whole rather than as discrete operating segments. Operational data is tracked by rig; however, financial performance is measured as a single enterprise and not on a rig-by-rig basis. Further, the allocation of capital resources is employed on a project-by-project basis across our entire asset base to maximize profitability without regard to individual geographic areas. | |
Recent Accounting Pronouncements | |
In April 2014, the Financial Accounting Standards Board (the "FASB") issued an accounting standards update to provide guidance on the reporting of discontinued operations and the disclosures related to disposals of components of an entity. Under the new guidance, only disposals representing a major strategic shift in operations should be presented as discontinued operations. This guidance is effective for interim and annual periods that begin after December 15, 2014. Early application was permitted. Adoption of this guidance did not materially impact our financial statements. | |
In May 2014, the FASB issued an accounting standards update to provide guidance on the recognition of revenue from customers. Under this guidance, an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. This guidance also requires more detailed disclosures to enable users of the financial statements to understand the nature, amount, timing and uncertainty, if any, of revenue and cash flows arising from contracts with customers. This guidance is effective for interim and annual periods beginning after December 15, 2016. We are currently evaluating the impact this guidance will have on our financial statements. | |
In June 2014, the FASB issued an accounting standards update to provide guidance on the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period is treated as a performance condition. This guidance is effective for interim and annual periods beginning after December 15, 2015. We are currently evaluating the impact this guidance will have on our financial statements. | |
In August 2014, the FASB issued guidance requiring management to perform interim and annual assessments of an entity’s ability to continue as a going-concern within one year of the date the financial statements are issued. The standard also provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. An entity must provide certain disclosures if there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going-concern. Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. The new guidance applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. We are currently evaluating the impact this will have on our financial statements. | |
In April 2015, the FASB issued an accounting standards update intended to simplify the presentation of debt issuance costs. This new guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. This guidance is effective for public companies for fiscal years beginning after December 15, 2015. We believe the guidance will affect the classification of our deferred financing costs in our financial statements. |
Revision_of_Prior_Year_Financi
Revision of Prior Year Financial Statements (Notes) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Revision of Prior Year Financial Statements | Revision of Prior Year Financial Statements |
We revised the classification of long-term debt in our balance sheet as of December 31, 2014 from long-term debt to current portion of long-term debt due to our credit facility including both a required lock-box payment method and a subjective acceleration clause permitting the lenders to declare an event of default in the event of a material adverse change. We subsequently amended our credit facility to provide for a springing lock-box arrangement to permit the long-term classification of the debt, subject to the credit facility’s ultimate maturity and our compliance with its terms and conditions. The correction of the misclassification did not affect previously reported net income, total assets, total liabilities or stockholders' equity or cash flows as of and for the year ended December 31, 2014 or 2013. The net impact of the reclassification to the balance sheet at December 31, 2014, was to (i) reduce long-term debt from $22.5 million to zero; (ii) increase current portion of long-term debt from zero to $22.5 million; and (iii) increase current liabilities from $29.4 million to $51.9 million. We analyzed the reclassifications under SEC staff guidance and determined that the impact of the reclassification was not material to previously issued financial statements. |
Financial_Instruments_and_Fair
Financial Instruments and Fair Value | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Fair Value Disclosures [Abstract] | ||||||||
Financial Instruments and Fair Value | Financial Instruments and Fair Value | |||||||
The carrying value of certain of our assets and liabilities, consisting primarily of cash and cash equivalents, accounts receivable and accounts payable, approximates their fair value due to the short-term nature of such instruments. Our financial instruments that are subject to fair value measurements consist of a warrant to purchase approximately 2.2 million shares of our common stock, held by Global Energy Services Operating, LLC (the "GES Warrant") and long-term debt. | ||||||||
The GES Warrant, which expired unexercised on March 2, 2015, contained a provision that protected the holder from a decline in the issue price of our common stock, or a “down-round” provision. Down-round provisions reduce the exercise or conversion price of a warrant or convertible instrument if a company either issues equity shares for a price that is lower than the exercise or conversion price of those instruments or issues new warrants or convertible instruments that have a lower exercise or conversion price. As a result of this provision, we accounted for this warrant as a liability. Following our initial public offering completed on August 13, 2014, and the full exercise of the Over-Allotment Option on August 29, 2014, the exercise price of the GES Warrant was reduced from $12.74 per share to $11.37 per share. | ||||||||
In accordance with Accounting Standards Codification ("ASC") 815 “Accounting for Derivative Instruments and Hedging Activities,” as amended, our warrant derivative liability was marked-to-market each reporting period, with a corresponding non-cash gain or loss charged to earnings (loss) in the applicable period. Fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, there exists a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: | ||||||||
Level 1- Unadjusted quoted market prices for identical assets or liabilities in an active market; | ||||||||
Level 2- Quoted market prices for identical assets or liabilities in an active market that have been adjusted for items such as effects of restrictions for transferability and those that are not quoted but are observable through corroboration with observable market data, including quoted market prices for similar assets; and | ||||||||
Level 3- Unobservable inputs for the asset or liability only used when there is little, if any, market activity for the asset or liability at the measurement date. | ||||||||
This hierarchy requires us to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. | ||||||||
Prior to the completion of our initial public offering in August 13, 2014, the warrant liability was recorded at fair value using Level 3 inputs. Significant Level 3 inputs used to calculate the fair value of the warrant include the estimated share price on the valuation date, expected volatility, risk-free interest rate and management’s assumptions regarding the likelihood of a future repricing of these warrants pursuant to the adjustment provision. After the initial public offering completed on August 13, 2014, the warrant liability was recorded at fair value using Level 1 inputs. | ||||||||
As of December 31, 2014, the fair value of the GES Warrant was estimated at zero, and the warrant expired unexercised on March 2, 2015. There was no gain or loss associated with the warrant for the three months ended March 31, 2015 and we recorded a non-cash gain on the warrant derivative of $3.0 thousand during the three months ended March 31, 2014. | ||||||||
The following provides a reconciliation of financial liabilities measured at fair value on a recurring basis: | ||||||||
(in thousands) | Three Months Ended March 31, | |||||||
2015 | 2014 | |||||||
Beginning balance | $ | — | $ | 3,189 | ||||
(Gain) loss on warrant derivative | — | (3 | ) | |||||
Ending balance | $ | — | $ | 3,186 | ||||
The fair value of our long-term debt is determined by Level 3 measurements based on quoted market prices and terms for similar instruments, where available, or on the amount of future cash flows associated with the debt, discounted using the current borrowing rate for comparable debt instruments. The estimated fair value of our long-term debt totaled $35.7 million and $22.9 million as of March 31, 2015 and December 31, 2014, respectively, compared to a carrying amount of $35.9 million and $22.5 million as of March 31, 2015 and December 31, 2014, respectively. | ||||||||
Fair value measurements are applied with respect to our non-financial assets and liabilities measured on a non-recurring basis, which would consist of measurements primarily of other long-lived assets. |
Inventory
Inventory | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventory | Inventory | |||||||
Inventory consisted of the following: | ||||||||
(in thousands) | March 31, 2015 | December 31, 2014 | ||||||
Rig components and supplies | $ | 2,191 | $ | 2,124 | ||||
We determined that no reserve for obsolescence was needed at March 31, 2015 or December 31, 2014. No inventory obsolescence expense was recognized during the three months ended March 31, 2015 and 2014. |
Accrued_Liabilities
Accrued Liabilities | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Accrued Liabilities | Accrued Liabilities | |||||||
Accrued liabilities consisted of the following: | ||||||||
(in thousands) | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
Accrued salaries and other compensation | $ | 1,925 | $ | 2,710 | ||||
Insurance | 174 | 488 | ||||||
Deferred mobilization revenues | 1,261 | 1,281 | ||||||
Property, sales and other taxes | 1,289 | 1,710 | ||||||
Other | 737 | 781 | ||||||
$ | 5,386 | $ | 6,970 | |||||
LongTerm_Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt |
On May 10, 2013, we entered into a credit agreement (the “Credit Facility”) with a syndicate of financial institutions led by CIT Finance LLC, that provided for a committed $60.0 million revolving credit facility and an additional uncommitted $20.0 million accordion feature that allowed for future increases in the facility. | |
On February 21, 2014 we amended our Credit Facility in order to increase the aggregate commitments from $60.0 million to $125.0 million. The final $25.0 million of commitments under the amended Credit Facility was subject to us obtaining additional equity or indebtedness, subordinated to the Credit Facility, of at least $40.0 million (“Junior Event”). The Credit Facility, as amended, also provided for an additional uncommitted $25.0 million accordion feature that allowed for future increases in the facility. | |
On May 12, 2014, we amended our Credit Facility again, to expand the commitments not subject to the Junior Event from $100.0 million to $110.0 million. The amendment also adjusted the minimum EBITDA covenants contained in the Credit Facility to reflect the removal of Rig 102 from service during the pendency of its upgrade. As a result of our initial public offering, completed on August 13, 2014, the final $25.0 of our $125.0 million Credit Facility became available to us. | |
On November 5, 2014, we amended our Credit Facility again to increase the commitments under the facility from $125.0 million to $155.0 million. In addition, the amendment provides for an additional uncommitted $25.0 million accordion feature that allows for future increases in borrowing availability. | |
On April 23, 2015, we amended our Credit Facility to provide for a springing lock box arrangement. | |
Borrowings under the Credit Facility are subject to a borrowing base formula that allows for borrowings of up to 85% of eligible trade accounts receivable not more than 90 days outstanding, plus up to 75% of the appraised forced liquidation value of our eligible, completed and owned drilling rigs. Beginning on November 5, 2015, the 75% advance rate on our eligible completed and owned drilling rigs decreases by 1.25% per quarter. The amended Credit Facility matures on November 5, 2018. | |
At our election, interest under the Credit Facility is determined by reference at our option to either (i) the London Interbank Offered Rate (“LIBOR”), plus 4.5% or (ii) a “base rate” equal to the higher of the prime rate published by JP Morgan Chase Bank or three-month LIBOR plus 1%, plus in each case, 3.5%, the federal funds effective rate plus 0.05%. We also pay, on a quarterly basis, a commitment fee of 0.50% per annum on the unused portion of the Credit Facility commitment. The obligations under the Credit Facility are secured by all our assets and is unconditionally guaranteed by all of our future direct and indirect subsidiaries. | |
The amended Credit Facility contains various financial covenants including a leverage covenant, springing fixed charge coverage ratio and rig utilization ratio. Additionally, there are restrictive covenants that limit our ability to, among other things: incur or guarantee additional indebtedness or issue disqualified capital stock; transfer or sell assets; pay dividends or distributions; redeem subordinated indebtedness; make certain types of investments or make other restricted payments; create or incur liens; consummate a merger, consolidation or sale of all or substantially all assets; and engage in business other than a business that is the same or similar to the current business and reasonably related businesses. The Credit Facility does, however, permit us to incur up to $20.0 million of additional indebtedness for the purchase of additional rigs or rig equipment. | |
The Credit Facility provides for a springing lock box arrangement that is only triggered upon the occurrence of an event of default under the Credit Facility or availability under the Credit Facility falls below the greater of (A) $15 million and (B) the lesser of 15% of the borrowing base or 15% of the total commitments under the facility. The Credit Facility provides that an event of default may occur if a material adverse change to the Company occurs, which is considered a subjective acceleration clause under applicable accounting rules. Under ASC 470-10-45, because of the existence of this clause, borrowings under the Credit Facility are required to be classified as current in the event the springing lock box event occurs, regardless of the actual maturity of the borrowings. | |
We had $35.9 million in outstanding borrowings under the Credit Facility at March 31, 2015. Remaining availability under the Credit Facility was $87.9 million at March 31, 2015, based on the borrowing base formula, and we are currently in compliance with all covenants under the Credit Facility and expect to remain in compliance throughout 2015. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||
Stock-Based Compensation | Stock-Based Compensation | |||||||
In March 2012, we adopted the 2012 Omnibus Long-Term Incentive Plan (the “2012 Plan”) providing for common stock-based awards to employees and to non-employee directors. The 2012 Plan, as amended, permits the granting of various types of awards, including stock options, restricted stock and restricted stock units and up to 3,454,000 shares were authorized for issuance. Restricted stock and restricted stock units may be granted for no consideration other than prior and future services. The purchase price per share for stock options may not be less than the market price of the underlying stock on the date of grant. Stock options expire 10 years after the grant date. We have the right to satisfy option exercises from treasury shares and from authorized but unissued shares. As of March 31, 2015, approximately 1,133,134 shares were available for future awards. | ||||||||
A summary of compensation cost recognized for stock-based payment arrangements is as follows: | ||||||||
(in thousands) | Three Months Ended March 31, | |||||||
2015 | 2014 | |||||||
Compensation cost recognized: | ||||||||
Stock options | $ | 214 | $ | 272 | ||||
Restricted stock and restricted stock units | 940 | 282 | ||||||
Total stock-based compensation | $ | 1,154 | $ | 554 | ||||
Approximately $0.2 million and $0.1 million in stock-based compensation was capitalized in connection with rig construction activity during the three months ended March 31, 2015 and March 31, 2014, respectively. | ||||||||
Stock Options | ||||||||
We use the Black-Scholes option pricing model to estimate the fair value of stock options granted to employees and non-employee directors. The fair value of the options are amortized to compensation expense on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. | ||||||||
There were no stock options granted during the three months ended March 31, 2015 or the three months ended March 31, 2014. | ||||||||
A summary of stock option activity and related information for the three months ended March 31, 2015 is as follows: | ||||||||
Three Months Ended March 31, 2015 | ||||||||
Options | Weighted | |||||||
Average | ||||||||
Exercise | ||||||||
Price | ||||||||
Outstanding at January 1, 2015 | 963,196 | $ | 12.74 | |||||
Granted | — | — | ||||||
Exercised | — | — | ||||||
Forfeited/expired | — | — | ||||||
Outstanding at March 31, 2015 | 963,196 | $ | 12.74 | |||||
Exercisable March 31, 2015 | 801,485 | $ | 12.74 | |||||
A summary of our unvested stock options as of March 31, 2015, and the changes during the three months then ended is presented below: | ||||||||
Three Months Ended March 31, 2015 | ||||||||
Outstanding | Weighted | |||||||
Average | ||||||||
Grant-Date | ||||||||
Fair Value | ||||||||
Unvested as of January 1, 2015 | 360,316 | $ | 4.32 | |||||
Granted | — | — | ||||||
Vested | (198,605 | ) | 4.84 | |||||
Forfeited/expired | — | — | ||||||
Unvested as of March 31, 2015 | 161,711 | $ | 3.7 | |||||
The number of options vested at March 31, 2015 was 801,485 with a weighted average remaining contractual life of 7.1 years and a weighted-average exercise price of $12.74 per share. | ||||||||
As of March 31, 2015, the unrecognized compensation cost related to outstanding stock options was $0.5 million. This cost is expected to be recognized over a weighted-average period of 0.8 year. | ||||||||
Restricted Stock | ||||||||
Restricted stock awards consist of grants of our common stock that vest ratably over three to four years. We recognize compensation expense on a straight-line basis over the requisite service period, which is generally the vesting period. The fair value of restricted stock awards is determined based on the fair market value of our shares on the grant date. As of March 31, 2015, there was $6.7 million of total unrecognized compensation cost related to unvested restricted stock awards. This cost is expected to be recognized over a weighted-average period of 1.2 years. | ||||||||
A summary of the status of our restricted stock awards as of March 31, 2015, and of changes in restricted stock outstanding during the three months ended March 31, 2015, is as follows: | ||||||||
Three Months Ended March 31, 2015 | ||||||||
Shares | Weighted | |||||||
Average | ||||||||
Grant-Date | ||||||||
Fair Value | ||||||||
Per Share | ||||||||
Outstanding at January 1, 2015 | 778,765 | $ | 10.85 | |||||
Granted | — | — | ||||||
Vested | — | — | ||||||
Forfeited | (9,090 | ) | 11 | |||||
Outstanding at March 31, 2015 | 769,675 | $ | 10.85 | |||||
Restricted Stock Units | ||||||||
We have granted restricted stock units (RSUs) to key employees under the 2012 Plan. We have granted performance-based and market-based RSUs, where each unit represents the right to receive, at the end of a vesting period, up to two shares of ICD common stock with no exercise price. Vesting of the market-based RSUs is based on our three year total shareholder return (TSR) as measured against a three year TSR of a defined peer group and vesting of the performance-based RSUs is based on our cumulative EBITDA (CEBITDA), as defined in the restricted stock unit agreement, over a three year period. We used a Monte Carlo simulation model to value the TSR market-based RSUs. The fair value of the CEBITDA performance-based RSUs is based on the market price of our common stock on the date of grant. During the restriction period, the RSUs may not be transferred or encumbered, and the recipient does not receive dividend equivalents or have voting rights until the units vest. As of March 31, 2015, there was $2.3 million of unrecognized compensation cost related to unvested RSUs that is expected to be recognized. This cost is expected to be recognized over a weighted-average period of 1.2 years. | ||||||||
A summary of the status of our RSUs as of March 31, 2015, and of changes in RSUs outstanding during the three months ended March 31, 2015, is as follows: | ||||||||
Three Months Ended March 31, 2015 | ||||||||
RSUs | Weighted | |||||||
Average | ||||||||
Grant-Date | ||||||||
Fair Value | ||||||||
Per Share | ||||||||
Outstanding at January 1, 2015 | 343,150 | $ | 13.72 | |||||
Granted | — | — | ||||||
Vested and converted | — | — | ||||||
Forfeited | — | — | ||||||
Outstanding at March 31, 2015 | 343,150 | $ | 13.72 | |||||
Stockholders_Equity_and_Earnin
Stockholders’ Equity and Earnings (loss) per Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Stockholders' Equity and Earnings (loss) per Share | Stockholders’ Equity and Earnings (loss) per Share | ||||||||
As of March 31, 2015, we had a total of 24,620,243 shares of common stock, $0.01 par value outstanding, including 769,675 shares of restricted stock, and 85,011 shares held as treasury stock. Total authorized common stock is 100,000,000 shares. | |||||||||
Basic earnings (loss) per common share (“EPS”) is computed by dividing income (loss) available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock. A reconciliation of the numerators and denominators of the basic and diluted losses per share computations is as follows: | |||||||||
(in thousands, except per share data) | Three Months Ended March 31, | ||||||||
2015 | 2014 | ||||||||
Net income (loss) (numerator): | $ | 1,375 | $ | (3,705 | ) | ||||
Earnings (loss) per share: | |||||||||
Basic | $ | 0.06 | $ | (0.30 | ) | ||||
Diluted | $ | 0.06 | $ | (0.30 | ) | ||||
Shares (denominator): | |||||||||
Weighted-average number of shares outstanding - basic | 24,629 | 12,251 | |||||||
Net effect of dilutive stock options, warrants and restricted stock units | — | — | |||||||
Weighted-average number of shares outstanding - diluted | 24,629 | 12,251 | |||||||
For all periods presented, the computation of diluted earnings (loss) per share excludes the dilutive effect of certain outstanding stock options and warrants because their inclusion would be anti-dilutive. The number of options that were excluded from diluted earnings (loss) per share were 963,196 during both the three months ended March 31, 2015 and 2014. A warrant to purchase 2,198,000 shares of our common stock was anti-dilutive in both periods and expired unexercised on March 2, 2015. Restricted stock units, which are not participating securities and are excluded from our basic and diluted earnings (loss) per share because they are anti-dilutive, were 343,150 and zero for the three months ended March 31, 2015 and 2014, respectively. |
Income_Taxes_Notes
Income Taxes (Notes) | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes |
Our effective tax rate for the quarter ended March 31, 2015 was (12.7%). The rate is primarily comprised of the effect of the Texas margin tax, due to our valuation allowance for federal income tax purposes being applied against any potential deferred tax asset which would have ordinarily resulted. While we do not expect to receive a benefit for the full year, the negative effective tax rate is determined by applying the guidance in ASC 740-270. We expect to owe Texas margin tax for the full year 2015. We were not subject to a valuation allowance for federal taxes in the prior year comparable quarter. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments and Contingencies | Commitments and Contingencies | |||
Purchase Commitments | ||||
As of March 31, 2015, we had outstanding purchase commitments to a number of suppliers totaling $51.8 million related primarily to the construction of drilling rigs. | ||||
Lease Commitments | ||||
We lease certain equipment and vehicles under non-cancelable operating leases. The minimum rental commitments under non-cancelable operating leases, with lease terms in excess of one year subsequent to March 31, 2015, were as follows: | ||||
(in thousands) | ||||
2015 | $ | 546 | ||
2016 | 418 | |||
2017 | 228 | |||
2018 | 49 | |||
2019 | 50 | |||
Thereafter | — | |||
$ | 1,291 | |||
Contingencies | ||||
Our operations inherently expose us to various liabilities and exposures that could result in third party lawsuits, claims and other causes of action. While we insure against the risk of these proceedings to the extent deemed prudent by our management, we can offer no assurance that the type or value of this insurance will meet the liabilities that may arise from any pending or future legal proceedings related to our business activities. |
Related_Parties
Related Parties | 3 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Parties | Related Parties |
During 2011, we entered into an asset contribution and share subscription agreement that involved our acquiring certain assets and liabilities from GES and Independence Contract Drilling LLC. Two of our directors, as of March 31, 2015, also were directors of the parent company of GES. One of these directors is also the director of a fund that owned approximately 36% of the ultimate parent company of GES as of March 31, 2015. | |
We purchased certain items used in the construction of our drilling rigs from an affiliate of GES. Total purchases from this vendor amounted to $0.4 million and $0.2 million during the three months ended March 31, 2015 and March 31, 2014, respectively. We had outstanding payables with this vendor totaling $8,287 and $9,040 as of March 31, 2015 and March 31, 2014 respectively. | |
The son of one of our directors worked in a sales capacity at one of our vendors that sells drilling equipment and related supplies during a portion of the first quarter of 2015. Total purchases from this vendor amounted to $0.5 million million and $0.2 million during the three months ended March 31, 2015 and March 31, 2014, respectively. We had outstanding payables with this vendor totaling $0.2 million and $0.2 million as of March 31, 2015 and March 31, 2014, respectively. |
Interim_Financial_Information_
Interim Financial Information (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Segment and Geographical Information | Segment and Geographical Information |
Our operations consist of one reportable segment because all of our drilling operations are located in the United States and have similar economic characteristics. Corporate management administers all properties as a whole rather than as discrete operating segments. Operational data is tracked by rig; however, financial performance is measured as a single enterprise and not on a rig-by-rig basis. Further, the allocation of capital resources is employed on a project-by-project basis across our entire asset base to maximize profitability without regard to individual geographic areas. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In April 2014, the Financial Accounting Standards Board (the "FASB") issued an accounting standards update to provide guidance on the reporting of discontinued operations and the disclosures related to disposals of components of an entity. Under the new guidance, only disposals representing a major strategic shift in operations should be presented as discontinued operations. This guidance is effective for interim and annual periods that begin after December 15, 2014. Early application was permitted. Adoption of this guidance did not materially impact our financial statements. | |
In May 2014, the FASB issued an accounting standards update to provide guidance on the recognition of revenue from customers. Under this guidance, an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. This guidance also requires more detailed disclosures to enable users of the financial statements to understand the nature, amount, timing and uncertainty, if any, of revenue and cash flows arising from contracts with customers. This guidance is effective for interim and annual periods beginning after December 15, 2016. We are currently evaluating the impact this guidance will have on our financial statements. | |
In June 2014, the FASB issued an accounting standards update to provide guidance on the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period is treated as a performance condition. This guidance is effective for interim and annual periods beginning after December 15, 2015. We are currently evaluating the impact this guidance will have on our financial statements. | |
In August 2014, the FASB issued guidance requiring management to perform interim and annual assessments of an entity’s ability to continue as a going-concern within one year of the date the financial statements are issued. The standard also provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. An entity must provide certain disclosures if there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going-concern. Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. The new guidance applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. We are currently evaluating the impact this will have on our financial statements. | |
In April 2015, the FASB issued an accounting standards update intended to simplify the presentation of debt issuance costs. This new guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. This guidance is effective for public companies for fiscal years beginning after December 15, 2015. We believe the guidance will affect the classification of our deferred financing costs in our financial statements. |
Financial_Instruments_and_Fair1
Financial Instruments and Fair Value (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Fair Value Disclosures [Abstract] | ||||||||
Reconciliation of Financial Liabilities | The following provides a reconciliation of financial liabilities measured at fair value on a recurring basis: | |||||||
(in thousands) | Three Months Ended March 31, | |||||||
2015 | 2014 | |||||||
Beginning balance | $ | — | $ | 3,189 | ||||
(Gain) loss on warrant derivative | — | (3 | ) | |||||
Ending balance | $ | — | $ | 3,186 | ||||
Inventory_Tables
Inventory (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Schedule of Inventory | Inventory consisted of the following: | |||||||
(in thousands) | March 31, 2015 | December 31, 2014 | ||||||
Rig components and supplies | $ | 2,191 | $ | 2,124 | ||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following: | |||||||
(in thousands) | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
Accrued salaries and other compensation | $ | 1,925 | $ | 2,710 | ||||
Insurance | 174 | 488 | ||||||
Deferred mobilization revenues | 1,261 | 1,281 | ||||||
Property, sales and other taxes | 1,289 | 1,710 | ||||||
Other | 737 | 781 | ||||||
$ | 5,386 | $ | 6,970 | |||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||
Summary of Compensation Cost | A summary of compensation cost recognized for stock-based payment arrangements is as follows: | |||||||
(in thousands) | Three Months Ended March 31, | |||||||
2015 | 2014 | |||||||
Compensation cost recognized: | ||||||||
Stock options | $ | 214 | $ | 272 | ||||
Restricted stock and restricted stock units | 940 | 282 | ||||||
Total stock-based compensation | $ | 1,154 | $ | 554 | ||||
Schedule of Options, Valuation Assumptions | A summary of stock option activity and related information for the three months ended March 31, 2015 is as follows: | |||||||
Three Months Ended March 31, 2015 | ||||||||
Options | Weighted | |||||||
Average | ||||||||
Exercise | ||||||||
Price | ||||||||
Outstanding at January 1, 2015 | 963,196 | $ | 12.74 | |||||
Granted | — | — | ||||||
Exercised | — | — | ||||||
Forfeited/expired | — | — | ||||||
Outstanding at March 31, 2015 | 963,196 | $ | 12.74 | |||||
Exercisable March 31, 2015 | 801,485 | $ | 12.74 | |||||
Schedule of Stock Options Activity | A summary of stock option activity and related information for the three months ended March 31, 2015 is as follows: | |||||||
Three Months Ended March 31, 2015 | ||||||||
Options | Weighted | |||||||
Average | ||||||||
Exercise | ||||||||
Price | ||||||||
Outstanding at January 1, 2015 | 963,196 | $ | 12.74 | |||||
Granted | — | — | ||||||
Exercised | — | — | ||||||
Forfeited/expired | — | — | ||||||
Outstanding at March 31, 2015 | 963,196 | $ | 12.74 | |||||
Exercisable March 31, 2015 | 801,485 | $ | 12.74 | |||||
A summary of our unvested stock options as of March 31, 2015, and the changes during the three months then ended is presented below: | ||||||||
Three Months Ended March 31, 2015 | ||||||||
Outstanding | Weighted | |||||||
Average | ||||||||
Grant-Date | ||||||||
Fair Value | ||||||||
Unvested as of January 1, 2015 | 360,316 | $ | 4.32 | |||||
Granted | — | — | ||||||
Vested | (198,605 | ) | 4.84 | |||||
Forfeited/expired | — | — | ||||||
Unvested as of March 31, 2015 | 161,711 | $ | 3.7 | |||||
Schedule of Restricted Stock Activity | A summary of the status of our restricted stock awards as of March 31, 2015, and of changes in restricted stock outstanding during the three months ended March 31, 2015, is as follows: | |||||||
Three Months Ended March 31, 2015 | ||||||||
Shares | Weighted | |||||||
Average | ||||||||
Grant-Date | ||||||||
Fair Value | ||||||||
Per Share | ||||||||
Outstanding at January 1, 2015 | 778,765 | $ | 10.85 | |||||
Granted | — | — | ||||||
Vested | — | — | ||||||
Forfeited | (9,090 | ) | 11 | |||||
Outstanding at March 31, 2015 | 769,675 | $ | 10.85 | |||||
Stockholders_Equity_and_Earnin1
Stockholders’ Equity and Earnings (loss) per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Reconciliation of Numerators and Denominators of Basic and Diluted Losses Per Share | A reconciliation of the numerators and denominators of the basic and diluted losses per share computations is as follows: | ||||||||
(in thousands, except per share data) | Three Months Ended March 31, | ||||||||
2015 | 2014 | ||||||||
Net income (loss) (numerator): | $ | 1,375 | $ | (3,705 | ) | ||||
Earnings (loss) per share: | |||||||||
Basic | $ | 0.06 | $ | (0.30 | ) | ||||
Diluted | $ | 0.06 | $ | (0.30 | ) | ||||
Shares (denominator): | |||||||||
Weighted-average number of shares outstanding - basic | 24,629 | 12,251 | |||||||
Net effect of dilutive stock options, warrants and restricted stock units | — | — | |||||||
Weighted-average number of shares outstanding - diluted | 24,629 | 12,251 | |||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Minimum Rental Commitments Under Non-Cancelable Operating Leases | The minimum rental commitments under non-cancelable operating leases, with lease terms in excess of one year subsequent to March 31, 2015, were as follows: | |||
(in thousands) | ||||
2015 | $ | 546 | ||
2016 | 418 | |||
2017 | 228 | |||
2018 | 49 | |||
2019 | 50 | |||
Thereafter | — | |||
$ | 1,291 | |||
Nature_of_Operations_Narrative
Nature of Operations (Narrative) (Details) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 0 Months Ended | ||||||
In Millions, except Share data, unless otherwise specified | Aug. 29, 2014 | Jul. 14, 2014 | Jan. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2014 | Mar. 31, 2014 | 8-May-15 | Aug. 13, 2014 | Aug. 07, 2014 |
Property, Plant and Equipment [Line Items] | ||||||||||||
Average production costs per barrel of oil equivalents (BOE) | 44.08 | 106.06 | ||||||||||
Drilling rigs, contractual utilization | 99.70% | |||||||||||
Cost of rig repairs | $2.90 | $1 | $2 | |||||||||
Insurance proceeds related to damaged rig | 2.9 | 1.6 | 2.3 | 2.3 | ||||||||
Additional Proceeds From Insurance Settlements, Gross | 1.3 | |||||||||||
Impairment of non-damaged items | 1.8 | |||||||||||
Out of pocket expense, rig repair | 0.6 | 0.3 | ||||||||||
Stock split conversion ratio | 1.57 | |||||||||||
Shares issued | 24,705,254 | 24,714,344 | 24,714,344 | |||||||||
Proceeds from issuance initial public offering | 116.5 | |||||||||||
IPO | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Shares issued | 10,000,000 | 11,500,000 | ||||||||||
Share price | $11 | |||||||||||
Underwriting discounts and commissions expense | 7.6 | |||||||||||
Expenses directly associated with the offering | 2.4 | |||||||||||
Over-allotment option | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Shares issued | 1,500,000 | 1,500,000 | ||||||||||
Operating rig | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Number of rigs | 14 | 14 | 14 | |||||||||
Non-walking rig | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Number of idle rigs | 1 | |||||||||||
Completed rig | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Number of rigs completed | 2 | |||||||||||
Under repair rig | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Impairment charge | $4.70 | |||||||||||
Multi-directional walking system | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Number of rigs | 12 | |||||||||||
Construction in progress rig | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Number of rigs | 1 | 2 | 2 | |||||||||
Subsequent Event | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Average production costs per barrel of oil equivalents (BOE) | 58.92 |
Interim_Financial_Information_1
Interim Financial Information (Details) | 3 Months Ended |
Mar. 31, 2015 | |
segment | |
Accounting Policies [Abstract] | |
Reportable segments | 1 |
Revision_of_Prior_Year_Financi1
Revision of Prior Year Financial Statements (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Long-term debt | $35,940,000 | $0 |
Current portion of long-term debt | 0 | 22,519,000 |
Total current liabilities | 35,652,000 | 51,890,000 |
Previously reported | ||
Long-term debt | 22,500,000 | |
Current portion of long-term debt | 0 | |
Total current liabilities | $29,400,000 |
Financial_Instruments_and_Fair2
Financial Instruments and Fair Value (Reconciliation of Financial Liabilities) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Gain on warrant derivative | $0 | $3,000 |
Level 1 | Derivative warrant | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | 0 | |
(Gain) loss on warrant derivative | 0 | |
Ending balance | 0 | |
Level 3 | Derivative warrant | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | 3,189,000 | |
Gain on warrant derivative | 3,000 | |
Ending balance | $3,186,000 |
Financial_Instruments_and_Fair3
Financial Instruments and Fair Value (Narrative) (Details) (USD $) | 3 Months Ended | |||||
Share data in Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Aug. 29, 2014 | Aug. 28, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Gain on warrant derivative | $0 | $3,000 | ||||
Long-term debt, fair value | 35,700,000 | 22,900,000 | ||||
Long-term Line of Credit | 35,940,000 | 0 | ||||
Current portion of long-term debt | 0 | 22,519,000 | ||||
GES warrant | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Class of warrant or right, outstanding | 2.2 | |||||
Exercise price GES Warrant | $11.37 | $12.74 | ||||
Gain on warrant derivative | 0 | |||||
Derivative warrant | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value GES Warrant | 0 | 0 | ||||
Derivative warrant | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value GES Warrant | 3,186,000 | 3,189,000 | ||||
Gain on warrant derivative | 3,000 | |||||
Line of credit | Revolving credit facility | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Long-term Line of Credit | 35,940,000 | |||||
Current portion of long-term debt | $22,519,000 |
Inventory_Narrative_Details
Inventory (Narrative) (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Inventory Disclosure [Abstract] | |||
Rig components and supplies | $2,191,000 | $2,124,000 | |
Inventory reserve | 0 | 0 | |
Inventory write-down | $0 | $0 |
Accrued_Liabilities_Narrative_
Accrued Liabilities (Narrative) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Accrued salaries and other compensation | $1,925 | $2,710 |
Insurance | 174 | 488 |
Deferred mobilization revenues | 1,261 | 1,281 |
Property, sales and other taxes | 1,289 | 1,710 |
Other | 737 | 781 |
Accrued liabilities | $5,386 | $6,970 |
LongTerm_Debt_Narrative_Detail
Long-Term Debt (Narrative) (Details) (USD $) | 0 Months Ended | 3 Months Ended | ||||||
12-May-14 | Mar. 31, 2015 | Dec. 31, 2014 | Nov. 05, 2014 | Aug. 13, 2014 | Feb. 21, 2014 | 10-May-13 | Nov. 05, 2015 | |
Debt Instrument [Line Items] | ||||||||
Long-term debt | 35,940,000 | $0 | ||||||
Revolving credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowing limit based on eligible trade accounts | 85.00% | |||||||
Eligible trade accounts receivable days outstanding limit | 90 days | |||||||
Borrowing limit based on appraised forced liquidation of eligible completed and owned drilling rigs | 75.00% | |||||||
Commitment fee on unused capacity (as a percentage) | 0.50% | |||||||
Revolving credit facility | Line of credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, basis spread based on availability | 3.50% | |||||||
Line of credit facility, higher borrowing capacity option | 20,000,000 | |||||||
Line of credit facility, springing lock box arrangement, threshold | 15,000,000 | |||||||
Line of credit facility, springing lock box arrangement, threshold, percentage of borrowing base | 15.00% | |||||||
LIne of credit facility, springing lock box arrangement, threshold, percentage of total commitments | 15.00% | |||||||
Long-term debt | 35,940,000 | |||||||
Remaining availability | 87,900,000 | |||||||
Revolving credit facility | Line of credit | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, basis spread | 4.50% | |||||||
Revolving credit facility | Line of credit | Three-month LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, basis spread | 1.00% | |||||||
Revolving credit facility | Line of credit | Federal funds, effective rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, basis spread | 0.05% | |||||||
Revolving credit facility | Line of credit | CIT Finance, LLC syndicate | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving credit facility, maximum borrowing capacity | 155,000,000 | 125,000,000 | 125,000,000 | 60,000,000 | ||||
Maximum borrowing capacity not subject to restrictions | 110,000,000 | 100,000,000 | ||||||
Revolving credit facility | Line of credit | CIT Finance, LLC syndicate | Accordion feature | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving credit facility, maximum borrowing capacity | 25,000,000 | |||||||
Debt instrument, face amount | 25,000,000 | 20,000,000 | ||||||
Revolving credit facility | Junior subordinated debt | CIT Finance, LLC syndicate | ||||||||
Debt Instrument [Line Items] | ||||||||
Contingent commitments | 25,000,000 | 25,000,000 | ||||||
Junior event | $40,000,000 | |||||||
Scenario, forecast | Revolving credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowing limit based on appraised forced liquidation of eligible completed and owned drilling rigs | 75.00% | |||||||
Decrease borrowing limit | 1.25% |
StockBased_Compensation_Compen
Stock-Based Compensation (Compensation Cost) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | $1,154 | $554 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | 214 | 272 |
Restricted stock and restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | $940 | $282 |
StockBased_Compensation_Stock_
Stock-Based Compensation (Stock Option Activity) (Details) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Options | |
Beginning balance | 963,196 |
Granted | 0 |
Exercised | 0 |
Forfeited/expired | 0 |
Ending balance | 963,196 |
Exercisable | 801,485 |
Weighted Average Exercise Price | |
Beginning balance | $12.74 |
Granted | $0 |
Exercised | $0 |
Forfeited/expired | $0 |
Ending balance | $12.74 |
Exercisable, weighted-average exercise price | $12.74 |
StockBased_Compensation_Unvest
Stock-Based Compensation (Unvested Stock Option Activity) (Details) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Outstanding | |
Beginning balance | 360,316 |
Granted | 0 |
Vested | -198,605 |
Forfeited/expired | 0 |
Ending balance | 161,711 |
Weighted Average Grant-Date Fair Value | |
Beginning balance | $4.32 |
Granted | $0 |
Vested | $4.84 |
Forfeited/expired | $0 |
Ending balance | $3.70 |
StockBased_Compensation_Restri
Stock-Based Compensation (Restricted Stock Activity) (Details) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Shares | |
Beginning balance | 343,150 |
Granted | 0 |
Vested | 0 |
Forfeited | 0 |
Ending balance | 343,150 |
Weighted Average Grant-Date Fair Value Per Share | |
Beginning balance | $13.72 |
Granted | $0 |
Vested | $0 |
Forfeited | $0 |
Ending balance | $13.72 |
Restricted stock and restricted stock units | |
Shares | |
Beginning balance | 778,765 |
Granted | 0 |
Vested | 0 |
Forfeited | -9,090 |
Ending balance | 769,675 |
Weighted Average Grant-Date Fair Value Per Share | |
Beginning balance | $10.85 |
Granted | $0 |
Vested | $0 |
Forfeited | $11 |
Ending balance | $10.85 |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options granted | 0 | |
Employee service share-based compensation, allocation of recognized period costs, capitalized amount | $221,000 | $106,000 |
Granted | $0 | |
Exercisable | 801,485 | |
Remaining contractual life | 7 years 1 month 0 days | |
Weighted-average exercise price | $12.74 | |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation costs | 500,000 | |
Weighted average recognition period | 9 months 18 days | |
Restricted stock and restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation costs | 6,700,000 | |
Weighted average recognition period | 1 year 2 months | |
Restricted stock and restricted stock units | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Restricted stock and restricted stock units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 4 years | |
Restricted stock units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation costs | $2,300,000 | |
Weighted average recognition period | 1 year 2 months | |
Vesting period | 3 years | |
2012 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized | 3,454,000 | |
Number of shares available for future awards | 1,133,134 | |
Options granted | 0 | 0 |
2012 Plan | Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock option expiration period | 10 years |
Stockholders_Equity_and_Earnin2
Stockholders’ Equity and Earnings (loss) per Share (Narrative) (Details) (USD $) | 3 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Numerator [Abstract] | |||
Net income | $1,375 | ($3,705) | |
Basic | $0.06 | ($0.30) | |
Diluted | $0.06 | ($0.30) | |
Denominator [Abstract] | |||
Weighted-average number of shares outstanding - basic | 24,629,000 | 12,251,000 | |
Net effect of dilutive stock options, warrants and restricted stock units | 0 | 0 | |
Weighted-average number of shares outstanding - diluted | 24,629,000 | 12,251,000 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common stock, par value | $0.01 | $0.01 | |
Restricted stock | 343,150 | 343,150 | |
Treasury stock, number of shares held | 85,011 | ||
Shares authorized | 100,000,000 | 100,000,000 | |
Equity Option | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 963,196 | 963,196 | |
Restricted stock and restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 343,150 | 0 | |
Warrant | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 2,198,000 | 2,198,000 | |
Accumulated Deficit | |||
Numerator [Abstract] | |||
Net income | $1,375 | ||
Common Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares, outstanding | 24,620,243 | 24,629,333 |
Income_Taxes_Details
Income Taxes (Details) | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Effective income tax rate | 12.70% |
Commitments_and_Contingencies_1
Commitments and Contingencies (Narrative) (Details) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2015 | $546 |
2016 | 418 |
2017 | 228 |
2018 | 49 |
2019 | 50 |
Thereafter | 0 |
Total future lease payments | $1,291 |
Related_Parties_Narrative_Deta
Related Parties (Narrative) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Affiliated entity | ||
Related Party Transaction [Line Items] | ||
Purchases | $400,000 | $200,000 |
Outstanding payables | 8,287 | 9,040 |
Immediate Family Member of Management or Principal Owner | ||
Related Party Transaction [Line Items] | ||
Purchases | 500,000 | 200,000 |
Outstanding payables | $200,000 | $200,000 |
Global Energy Services Operating, LLC | Affiliated entity | ||
Related Party Transaction [Line Items] | ||
Number of Directors | 2 | |
Ownership Percentage | 36.00% | |
Global Energy Services Operating, LLC | Director | ||
Related Party Transaction [Line Items] | ||
Number of Directors | 1 |