Independence Contract Drilling (ICDIQ) 10-Q 28 Apr 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 27, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	Independence Contract Drilling, Inc.
Entity Central Index Key	1,537,028
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		37,628,659

Balance Sheets

Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Assets
Cash and cash equivalents	$ 7,410	$ 5,344
Accounts receivable, net	14,433	18,240
Inventory	2,408	2,317
Prepaid expenses and other current assets	3,485	3,436
Total current assets	27,736	29,337
Property, plant and equipment, net	281,202	283,378
Other long-term assets, net	1,821	2,074
Total assets	310,759	314,789
Liabilities
Current portion of long-term debt	366	0
Accounts payable	5,562	8,584
Accrued liabilities	7,778	10,206
Total current liabilities	13,706	18,790
Long-term debt	63,145	62,708
Other long-term liabilities	233	361
Deferred income taxes	197	193
Total liabilities	$ 77,281	$ 82,052
Commitments and contingencies (Note 10)
Stockholders’ equity
Common stock, $0.01 par value, 100,000,000 shares authorized; 24,539,937 shares issued; and 24,403,659 shares outstanding	$ 244	$ 244
Additional paid-in capital	278,103	276,948
Accumulated deficit	(43,583)	(43,169)
Treasury stock, at cost, 136,278 shares	(1,286)	(1,286)
Total stockholders’ equity	233,478	232,737
Total liabilities and stockholders’ equity	$ 310,759	$ 314,789

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Shares authorized (in shares)	100,000,000	100,000,000
Shares issued (in shares)	24,539,937	24,539,937
Shares outstanding (in shares)	24,403,659	24,403,659
Treasury stock (in shares)	136,278	136,278

Statements of Operations

Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Revenues	$ 22,455	$ 22,306
Costs and expenses
Operating costs	12,567	13,106
Selling, general and administrative	3,621	3,827
Depreciation and amortization	5,825	4,289
(Insurance recoveries) asset impairment, net	0	(841)
(Gain) loss on disposition of assets	(125)	393
Total costs and expenses	21,888	20,774
Operating income	567	1,532
Interest expense	(977)	(312)
(Loss) income before income taxes	(410)	1,220
Income tax expense (benefit)	4	(155)
Net (loss) income	$ (414)	$ 1,375
Net (loss) income per share:
Basic and diluted (usd per share)	$ (0.02)	$ 0.06
Weighted average number of common shares outstanding:
Basic and diluted (shares)	24,015	24,629

Statements of Stockholders_ Equ

Statements of Stockholders’ Equity - 3 months ended Mar. 31, 2016 - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Treasury Stock
Beginning balance (shares) at Dec. 31, 2015		24,403,659
Beginning balance at Dec. 31, 2015	$ 232,737	$ 244	$ 276,948	$ (43,169)	$ (1,286)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	1,155		1,155
Net loss	(414)			(414)
Ending balance (shares) at Mar. 31, 2016		24,403,659
Ending balance at Mar. 31, 2016	$ 233,478	$ 244	$ 278,103	$ (43,583)	$ (1,286)

Statements of Cash Flows

Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities
Net (loss) income	$ (414,000)	$ 1,375,000
Adjustments to reconcile net (loss) income to net cash provided by operating activities
Depreciation and amortization	5,825,000	4,289,000
(Insurance recoveries) asset impairment, net	0	(841,000)
Stock-based compensation	1,155,000	933,000
(Gain) loss on disposition of assets	(125,000)	393,000
Deferred income taxes	4,000	0
Amortization of deferred financing costs	152,000	153,000
Bad debt expense	0	73,000
Changes in operating assets and liabilities
Accounts receivable	3,807,000	1,055,000
Inventory	(47,000)	(67,000)
Prepaid expenses and other current assets	(110,000)	(811,000)
Accounts payable and accrued liabilities	(3,026,000)	(1,080,000)
Income taxes payable	0	(155,000)
Net cash provided by operating activities	7,221,000	5,317,000
Cash flows from investing activities
Purchases of property, plant and equipment	(5,677,000)	(21,283,000)
Proceeds from insurance claims	0	2,899,000
Proceeds from the sale of property, plant and equipment	648,000	93,000
Net cash used in investing activities	(5,029,000)	(18,291,000)
Cash flows from financing activities
Borrowings under credit facility	26,949,000	39,760,000
Repayments under credit facility	(26,937,000)	(26,339,000)
Financing costs paid	0	(161,000)
Payments for capital lease obligations	(138,000)	0
Net cash (used in) provided by financing activities	(126,000)	13,260,000
Net increase in cash and cash equivalents	2,066,000	286,000
Beginning of period	5,344,000	10,757,000
End of period	7,410,000	11,043,000
Supplemental disclosure of cash flow information
Cash paid during the period for interest	944,000	603,000
Supplemental disclosure of non-cash investing and financing activities
Stock-based compensation capitalized as property, plant and equipment	0	221,000
Change in property, plant and equipment purchases in accounts payable	(2,552,000)	7,333,000
Additions to property, plant and equipment through capital leases	$ 929,000	$ 0

Nature of Operations

Nature of Operations	3 Months Ended
	Mar. 31, 2016
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 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. We are focused on creating stockholder and customer value through our commitment to operational excellence and our focus on safety. Our standardized fleet consists of fourteen premium ShaleDriller® rigs. Of these fourteen rigs, thirteen are 200 Series rigs equipped with our integrated omni-directional walking system that is specifically designed to optimize pad drilling for our customers. We have the ability to upgrade our remaining non-walking rig to 200 Series status when market conditions improve, but until such time this rig has been decommissioned, and we do not intend to market it. Every ShaleDriller® rig in our fleet is a 1500-hp, AC programmable rig (“AC rig”) designed to be fast-moving between drilling sites and is equipped with top drives, automated tubular handling systems and blowout preventer (“BOP”) handling systems. Twelve of our fourteen rigs are equipped with bi-fuel capabilities, able to operate on either diesel or a natural gas-diesel blend. Our first rig began drilling in May 2012. We currently focus our operations on unconventional resource plays located in geographic regions that we can efficiently support from our Houston, Texas facilities in order to maximize economies of scale. Currently, our rigs are predominantly operating in the Permian Basin, however, our rigs have previously operated in the Mid-Continent and Eaglebine regions and the Eagle Ford Shale, as well. 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 historically, 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. Recent Declines in Oil and Gas Prices and Drilling Activity Oil prices began to decline in the second half of 2014, declined further during 2015 and continued to decline in early 2016. The closing price of oil was as high as $106.06 per barrel during the third quarter of 2014, was $37.13 per barrel on December 31, 2015 and fell as low as $26.19 during the first quarter of 2016 (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 an exceptional downturn, and 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 2016 will be an exceptionally challenging year for ICD and our industry. We believe the vast majority of exploration and production ("E&P") companies, including our customers, have significantly reduced their 2016 capital spending plans compared to 2015 levels. The initial impact of these spending reductions is evidenced by the published rig counts which have declined more than 70% since their peak in October 2014, and we believe the rig count in the United States may decline further in 2016 until oil and gas prices begin to stabilize and improve. As a result of this deterioration in market conditions, our customers are principally focused on their most economic wells, drilling to maintain leasehold positions and on maintaining their most cost efficient operations that deliver the overall lowest cost of producing their wells and minimize their capital expenditures. As a result, operators are focusing more of their capital spending on horizontal drilling programs compared to vertical drilling. They also 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 utilizing “pad optimal” rig technology. 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 have been 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 the first quarter of 2016, our premium drilling fleet operated at 86% utilization, but we do not expect to maintain this level of utilization while this current market downturn continues. Amendment to Revolving Credit Facility On April 14, 2016, we entered into a Fourth Amendment (the “Fourth Amendment”) to the Amended and Restated Credit Agreement (the “Credit Agreement”) dated as of November 5, 2014. Among other things, the Fourth Amendment (a) decreases the aggregate commitments under the Credit Agreement from $125.0 million to $85.0 million , but maintains the $25.0 million uncommitted accordion feature pursuant to which commitments may be increased in the future; (b) amends the Leverage Ratio, and Rig Utilization and Fixed Charge covenants; (c) amends the advance rate on Eligible Equipment for purposes of calculating the borrowing base; and (d) adds a springing covenant associated with capital expenditures consistent with our previously announced capital plans as described below. In addition, in connection with the execution of the Fourth Amendment, the Administrative Agent has agreed to include certain capital spare equipment in the calculation of our borrowing base through December 31, 2016. The addition of such equipment would have increased our borrowing base at March 31, 2016 by approximately $6.3 million to $86.4 million . Public Offering of Common Stock On April 26, 2016, we completed an underwritten public offering of 13,225,000 shares of common stock at a price to the public of $3.50 per share. We received net proceeds of approximately $43.0 million , after deducting underwriting discounts and commissions and estimated offering expenses. We used the net proceeds from this offering to repay a portion of outstanding borrowings under our revolving credit facility and for general corporate purposes.

Interim Financial Information

Interim Financial Information	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Interim Financial Information	Interim Financial Information These unaudited financial statements include 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, 2015 , included in our Annual Report on Form 10-K for the year ended December 31, 2015 . 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 stockholders' equity for all periods presented. As we had no items of other comprehensive income in any period presented, no other components of comprehensive income or comprehensive income is presented. Interim results for the three months ended March 31, 2016 may not be indicative of results that will be realized for the full year ending December 31, 2016 . 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. Other Matters We have not elected to avail ourselves of the extended transition period available to emerging growth companies("EGCs") as provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended, for complying with new or revised accounting standards, therefore, we will be subject to new or revised accounting standards at the same time as other public companies that are not EGCs. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (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, as updated, is effective for interim and annual periods beginning after December 15, 2017. 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 adopted this accounting standard in the first quarter of 2016. Adoption of this guidance did not have an impact 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 will begin performing the assessments and making the required disclosures, if applicable, beginning at the end of fiscal year 2016. In April 2015, the FASB issued an accounting standards update intended to simplify the presentation of debt issuance costs. The 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. Subsequently, the FASB issued an update clarifying that since the accounting standards update does not address debt issuance costs associated with revolving debt arrangements it would not object to an entity deferring and presenting such costs as an asset and subsequently amortizing the costs ratably over the term of the revolving debt arrangement. This guidance is effective for public companies for fiscal years beginning after December 15, 2015. As our debt is revolving debt, we have elected to continue to present the debt issuance costs, net of accumulated amortization, as an asset on our balance sheets. In July 2015, the FASB issued an accounting standards update requiring an entity to measure inventory at the lower of cost or market. Market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. The amendments do not apply to inventory that is measured using last-in, first-out ("LIFO") or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out ("FIFO") or average cost. Management should measure in scope inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. This guidance is effective for public companies for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The amendments should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. Adoption of this pronouncement is not expected to have a material impact on our financial statements. In February 2016, the FASB issued an accounting standards update to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. Under the new guidance, lessees will be required to recognize (with the exception of short-term leases) at the commencement date, a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. This guidance is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted for all public business entities upon issuance. We are currently evaluating the impact this guidance will have on our financial statements. In March 2016, the FASB issued an accounting standards update intended to improve the accounting for employee share-based payments and affect all organizations that issue share-based payment awards to their employees. Several aspects of the accounting for share-based payment award transactions are simplified, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. For public companies, the amendments are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any organization in any interim or annual period. We are currently evaluating the impact this guidance will have on our financial statements.

Financial Instruments and Fair

Financial Instruments and Fair Value	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Financial Instruments and Fair Value	Financial Instruments and Fair Value In accordance with Accounting Standards Codification 815 “Accounting for Derivative Instruments and Hedging Activities,” as amended, this warrant derivative liability was marked-to-market each reporting period, with a corresponding non-cash gain or loss charged to the current 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. 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 are our capital lease obligations and long-term debt. The fair value of our revolving debt is determined by Level 3 measurements based on the amount of future cash flows associated with the debt, discounted using our current borrowing rate for comparable debt instruments (the Income Method). Based on our evaluation of the risk free rate, the market yield and credit spreads on comparable company publicly traded debt issues, we used an annualized discount rate, including a credit valuation allowance, of 8.4% . The fair value of our lease obligations is determined using level 3 measurements using our current incremental borrowing rate. The estimated fair value of our long-term debt totaled $59.5 million and $59.7 million as of March 31, 2016 and December 31, 2015 , respectively, compared to a carrying amount of $63.1 million and $62.7 million as of March 31, 2016 and December 31, 2015 , 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 long-lived assets.

Inventory

Inventory	3 Months Ended
	Mar. 31, 2016
Inventory Disclosure [Abstract]
Inventory	Inventory Inventory consisted of the following: (in thousands) March 31, 2016 December 31, 2015 Rig components and supplies $ 2,408 $ 2,317

Accrued Liabilities

Accrued Liabilities	3 Months Ended
	Mar. 31, 2016
Payables and Accruals [Abstract]
Accrued Liabilities	Accrued Liabilities Accrued liabilities consisted of the following: (in thousands) March 31, 2016 December 31, 2015 Accrued salaries and other compensation $ 629 $ 2,050 Insurance 1,114 600 Deferred revenues 4,447 4,591 Property, sales and other taxes 1,255 2,585 Other 333 380 $ 7,778 $ 10,206

Long-term Debt

Long-term Debt	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Long-term Debt	Long-term Debt Our Long-term Debt consisted of the following: March 31, 2016 December 31, 2015 Credit facility due November 5, 2018 $ 62,720 $ 62,708 Capital lease obligations 791 — 63,511 62,708 Less: current portion (366 ) — Long-term debt $ 63,145 $ 62,708 Credit Facility In November 2014, we entered into an amended and restated credit agreement (the “Credit Facility”) with a syndicate of financial institutions led by CIT Finance, LLC, that provided for a committed $155.0 million revolving credit facility and an additional uncommitted $25.0 million accordion feature that allowed for future increases in the facility. On April 23, 2015, we amended the Credit Facility to provide for a springing lock-box arrangement. On October 20, 2015, in light of current market conditions and our reduced capital plans, we entered into an amendment to the Credit Facility to reduce aggregate commitments to $125.0 million and modified certain maintenance covenants. On April 14, 2016, we again amended the Credit Facility to reduce aggregate commitments to $85.0 million and further modify certain maintenance covenants. The obligations under the Credit Facility are secured by all of our assets and are unconditionally guaranteed by all of our current and future direct and indirect subsidiaries. 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 72.5% of the appraised forced liquidation value of our eligible, completed and owned drilling rigs. This advance rate declines 1.25% per quarter beginning in 2017. Rigs that remain idle for 90 consecutive days or longer are removed from the borrowing base until they are contracted. In addition, rigs are appraised on a semi-annual basis and are subject to upward or downward revisions as a result of market conditions as well as the age of the rig. The 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. As of March 31, 2016 , the weighted average interest rate on our borrowings was 5.22% . 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. Under the Credit Agreement, as amended, for purposes of calculating EBITDA, non-cash stock-based compensation is added back to EBITDA as well as up to $2.0 million per year of previously capitalized construction costs that may be incurred in 2016 and 2017. At March 31, 2016, our calculated leverage ratio under this covenant was approximately 1.9 x. 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 will be required to be classified as current in the event the springing lock-box event occurs, regardless of the actual maturity of the borrowings. The Fourth Amendment reduces the requirement for a mandatory lock-box trigger from $15 million of availability under the credit facility to $10 million of availability under the Credit Facility. In addition, in connection with the execution of the Fourth Amendment, the Administrative Agent under our revolving credit facility has agreed to include certain capital spare equipment in the calculation of our borrowing base through December 31, 2016. The addition of such equipment increased our reported borrowing base at March 31, 2016 by approximately $6.3 million to $86.4 million . We had $62.7 million in outstanding borrowings under the Credit Facility at March 31, 2016 . Remaining availability under the Credit Facility was $23.7 million at March 31, 2016 , based on the amended borrowing base formula, and we are currently in compliance with all covenants under the Credit Facility. Capital Lease Obligations During the first quarter of 2016, our vehicle lease agreements were amended, which resulted in a change in the classification of certain leases from operating leases to capital leases. On the amendment date we recorded $0.8 million in capital lease obligations, representing the lesser of fair market value or the present value of future minimum lease payments on the conversion date. These leases generally have initial terms of 36 months and are paid monthly.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2016
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 was subsequently amended in August of 2014. The 2012 Plan, as amended, permits the granting of various types of awards, including stock options, restricted stock and restricted stock unit awards, 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 ten 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, 2016 , approximately 31,648 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, 2016 2015 Compensation cost recognized: Stock options $ 69 $ 214 Restricted stock and restricted stock units 1,086 940 Total stock-based compensation $ 1,155 $ 1,154 No stock-based compensation was capitalized in connection with rig construction activity during the three months ended March 31, 2016 . Approximately $0.2 million in stock-based compensation was capitalized in connection with rig construction activity during the three months ended March 31, 2015 . 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 is amortized to compensation expense on a straight-line basis over the requisite service periods of the stock awards, which are generally the vesting periods. There were no stock options granted during the three months ended March 31, 2016 or the three months ended March 31, 2015 . A summary of stock option activity and related information for the three months ended March 31, 2016 is as follows: Three Months Ended March 31, 2016 Options Weighted Average Exercise Price Outstanding at January 1, 2016 956,653 $ 12.74 Granted — — Exercised — — Forfeited/expired — — Outstanding at March 31, 2016 956,653 $ 12.74 Exercisable at March 31, 2016 882,340 $ 12.74 A summary of our unvested stock options as of March 31, 2016 , and the changes during the three months then ended is presented below: Three Months Ended March 31, 2016 Outstanding Weighted Average Grant-Date Fair Value Unvested as of January 1, 2016 104,143 $ 3.88 Granted — — Vested (29,830 ) 4.27 Forfeited/expired — — Unvested as of March 31, 2016 74,313 $ 3.73 The number of options vested at March 31, 2016 was 882,340 with a weighted average remaining contractual life of 6.1 years and a weighted-average exercise price of $12.74 per share. As of March 31, 2016 , the unrecognized compensation cost related to outstanding stock options was $0.2 million . This cost is expected to be recognized over a weighted-average period of 0.4 years. 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, 2016 , there was $2.9 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 0.7 years . A summary of the status of our restricted stock awards as of March 31, 2016 , and of changes in restricted stock outstanding during the three months ended March 31, 2016 , is as follows: Three Months Ended March 31, 2016 Shares Weighted Average Grant-Date Fair Value Per Share Outstanding at January 1, 2016 388,265 $ 10.80 Granted — — Vested — — Forfeited — — Outstanding at March 31, 2016 388,265 $ 10.80 Restricted Stock Units We have granted restricted stock units ("RSUs") to key employees under the 2012 Plan. We have granted three year vesting RSUs, as well as performance-based and market-based RSUs, where each unit represents the right to receive, at the end of a vesting period, up to one and a half to two shares of ICD common stock at no cost. 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 at the date of grant. The fair value of the CEBITDA performance-based RSUs was 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, 2016 , there was $5.1 million of unrecognized compensation cost related to unvested RSUs that is expected to be recognized over a weighted-average period of 1.1 years . A summary of the status of our RSUs as of March 31, 2016 , and of changes in RSUs outstanding during the three months ended March 31, 2016 , is as follows: Three Months Ended March 31, 2016 RSUs Weighted Outstanding at January 1, 2016 463,413 $ 12.97 Granted 814,170 4.01 Vested and converted — — Forfeited — — Outstanding at March 31, 2016 1,277,583 $ 7.26

Stockholders_ Equity and Earnin

Stockholders’ Equity and Earnings (Loss) per Share	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Stockholders' Equity and Earnings (Loss) per Share	Stockholders’ Equity and Earnings (Loss) per Share As of March 31, 2016 , we had a total of 24,403,659 shares of common stock, $0.01 par value outstanding, including 388,265 shares of restricted stock. We also had 136,278 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 (loss) earnings per share computations is as follows: (in thousands, except per share data) Three Months Ended March 31, 2016 2015 Net (loss) income (numerator): $ (414 ) $ 1,375 Net (loss) earnings per share: Basic and diluted $ (0.02 ) $ 0.06 Shares (denominator): Weighted-average number of shares outstanding - basic 24,015 24,629 Net effect of dilutive stock options, warrants and restricted stock units — — Weighted-average number of shares outstanding - diluted 24,015 24,629 For all years presented, the computation of diluted loss per share excludes the effect of certain outstanding stock options because their inclusion would be anti-dilutive. The number of options that were excluded from diluted loss per share were 963,196 during three months ended March 31, 2016 and 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 1,277,583 and 507,684 for the three months ended March 31, 2016 and 2015 , respectively.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our effective tax rate was (1.0)% and (12.7)% for the three months ended March 31, 2016 and 2015 , respectively. The rate in both periods 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.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Purchase Commitments As of March 31, 2016 , we had outstanding purchase commitments to a number of suppliers totaling $27.2 million , net of deposits previously made, related primarily to the construction of drilling rigs. Of these commitments, $10.9 million relates to equipment currently scheduled for delivery in 2016, $9.2 million relates to equipment scheduled for delivery in 2017 and $7.1 million relates to equipment scheduled for delivery in 2018. Lease Commitments We lease certain equipment and vehicles under non-cancelable operating and capital leases. Future minimum lease payments under operating and capital lease commitments, with lease terms in excess of one year subsequent to March 31, 2016 , were as follows: (in thousands) 2016 $ 409 2017 319 2018 125 2019 58 2020 — Thereafter — $ 911 As of March 31, 2016, property, plant and equipment in our balance sheets included $0.9 million of equipment under capital lease, net of $0.1 million of accumulated amortization. There were no capital leases as of December 31, 2015. 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, 2016
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. One of our directors, was a director of the ultimate parent company of GES as of March 31, 2016 , and one of our directors was a director of the ultimate parent company of GES through May 31, 2015. The director who continues to serve as a director of the ultimate parent company of GES is also the director of a fund that owned approximately 36% of the ultimate parent company of GES as of March 31, 2016 . We purchased certain items used in the construction of our drilling rigs from a former affiliate of GES. This vendor was sold by GES to a third party during the second quarter of 2015. As a related party, total purchases from the vendor amounted to $0.4 million during the three months ended March 31, 2015. We did not have any related party outstanding payables with this vendor as of March 31, 2016 or December 31, 2015. One of our directors is also a director of one of our vendors from which we purchase oilfield and related supplies. Total purchases from this vendor were $1.3 million and $0.4 million during the three months ended March 31, 2016 and 2015 , respectively. We had outstanding payables of $0.6 million and $0.1 million as of March 31, 2016 and December 31, 2015, respectively. During 2015, the son of an executive officer and director of the Company began working in a sales capacity at, and became a minority owner of, a vendor from which we purchase oilfield equipment and related supplies. Total purchases from this vendor during the first quarter of 2016 were $5.4 thousand and we had outstanding payables of $4.0 thousand and $0.1 million as of March 31, 2016 and December 31, 2015, respectively. We did no t do any business with this company in the first quarter of 2015.

Interim Financial Information (

Interim Financial Information (Policies)	3 Months Ended
	Mar. 31, 2016
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 May 2014, the Financial Accounting Standards Board (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, as updated, is effective for interim and annual periods beginning after December 15, 2017. 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 adopted this accounting standard in the first quarter of 2016. Adoption of this guidance did not have an impact 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 will begin performing the assessments and making the required disclosures, if applicable, beginning at the end of fiscal year 2016. In April 2015, the FASB issued an accounting standards update intended to simplify the presentation of debt issuance costs. The 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. Subsequently, the FASB issued an update clarifying that since the accounting standards update does not address debt issuance costs associated with revolving debt arrangements it would not object to an entity deferring and presenting such costs as an asset and subsequently amortizing the costs ratably over the term of the revolving debt arrangement. This guidance is effective for public companies for fiscal years beginning after December 15, 2015. As our debt is revolving debt, we have elected to continue to present the debt issuance costs, net of accumulated amortization, as an asset on our balance sheets. In July 2015, the FASB issued an accounting standards update requiring an entity to measure inventory at the lower of cost or market. Market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. The amendments do not apply to inventory that is measured using last-in, first-out ("LIFO") or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out ("FIFO") or average cost. Management should measure in scope inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. This guidance is effective for public companies for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The amendments should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. Adoption of this pronouncement is not expected to have a material impact on our financial statements. In February 2016, the FASB issued an accounting standards update to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. Under the new guidance, lessees will be required to recognize (with the exception of short-term leases) at the commencement date, a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. This guidance is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted for all public business entities upon issuance. We are currently evaluating the impact this guidance will have on our financial statements. In March 2016, the FASB issued an accounting standards update intended to improve the accounting for employee share-based payments and affect all organizations that issue share-based payment awards to their employees. Several aspects of the accounting for share-based payment award transactions are simplified, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. For public companies, the amendments are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any organization in any interim or annual period. We are currently evaluating the impact this guidance will have on our financial statements.

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Mar. 31, 2016
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventory consisted of the following: (in thousands) March 31, 2016 December 31, 2015 Rig components and supplies $ 2,408 $ 2,317

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	3 Months Ended
	Mar. 31, 2016
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	Accrued liabilities consisted of the following: (in thousands) March 31, 2016 December 31, 2015 Accrued salaries and other compensation $ 629 $ 2,050 Insurance 1,114 600 Deferred revenues 4,447 4,591 Property, sales and other taxes 1,255 2,585 Other 333 380 $ 7,778 $ 10,206

Long-term Debt (Tables)

Long-term Debt (Tables)	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Schedule of Long-term Debt	Our Long-term Debt consisted of the following: March 31, 2016 December 31, 2015 Credit facility due November 5, 2018 $ 62,720 $ 62,708 Capital lease obligations 791 — 63,511 62,708 Less: current portion (366 ) — Long-term debt $ 63,145 $ 62,708

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2016
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, 2016 2015 Compensation cost recognized: Stock options $ 69 $ 214 Restricted stock and restricted stock units 1,086 940 Total stock-based compensation $ 1,155 $ 1,154
Summary of Stock Option Activity and Related Information	A summary of stock option activity and related information for the three months ended March 31, 2016 is as follows: Three Months Ended March 31, 2016 Options Weighted Average Exercise Price Outstanding at January 1, 2016 956,653 $ 12.74 Granted — — Exercised — — Forfeited/expired — — Outstanding at March 31, 2016 956,653 $ 12.74 Exercisable at March 31, 2016 882,340 $ 12.74
Unvested Stock Option Activity	A summary of our unvested stock options as of March 31, 2016 , and the changes during the three months then ended is presented below: Three Months Ended March 31, 2016 Outstanding Weighted Average Grant-Date Fair Value Unvested as of January 1, 2016 104,143 $ 3.88 Granted — — Vested (29,830 ) 4.27 Forfeited/expired — — Unvested as of March 31, 2016 74,313 $ 3.73
Schedule of Restricted Stock Activity	A summary of the status of our RSUs as of March 31, 2016 , and of changes in RSUs outstanding during the three months ended March 31, 2016 , is as follows: Three Months Ended March 31, 2016 RSUs Weighted Outstanding at January 1, 2016 463,413 $ 12.97 Granted 814,170 4.01 Vested and converted — — Forfeited — — Outstanding at March 31, 2016 1,277,583 $ 7.26 A summary of the status of our restricted stock awards as of March 31, 2016 , and of changes in restricted stock outstanding during the three months ended March 31, 2016 , is as follows: Three Months Ended March 31, 2016 Shares Weighted Average Grant-Date Fair Value Per Share Outstanding at January 1, 2016 388,265 $ 10.80 Granted — — Vested — — Forfeited — — Outstanding at March 31, 2016 388,265 $ 10.80

Stockholders_ Equity and Earn23

Stockholders’ Equity and Earnings (Loss) per Share (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Reconciliation of Numerators and Denominators of Basic and Diluted (Loss) Earnings Per Share	A reconciliation of the numerators and denominators of the basic and diluted (loss) earnings per share computations is as follows: (in thousands, except per share data) Three Months Ended March 31, 2016 2015 Net (loss) income (numerator): $ (414 ) $ 1,375 Net (loss) earnings per share: Basic and diluted $ (0.02 ) $ 0.06 Shares (denominator): Weighted-average number of shares outstanding - basic 24,015 24,629 Net effect of dilutive stock options, warrants and restricted stock units — — Weighted-average number of shares outstanding - diluted 24,015 24,629

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Future Minimum Lease Payments Under Operating and Capital Lease Commitments	Future minimum lease payments under operating and capital lease commitments, with lease terms in excess of one year subsequent to March 31, 2016 , were as follows: (in thousands) 2016 $ 409 2017 319 2018 125 2019 58 2020 — Thereafter — $ 911

Nature of Operations (Details)

Nature of Operations (Details)	Apr. 26, 2016USD ($)$ / sharesshares	Mar. 31, 2016USD ($)drilling_rig	Dec. 31, 2015$ / bbl	Mar. 31, 2016USD ($)drilling_rig$ / bbl	Sep. 30, 2014$ / bbl	Dec. 31, 2015	Apr. 14, 2016USD ($)	Oct. 20, 2015USD ($)	Nov. 30, 2014USD ($)
Property, Plant and Equipment [Line Items]
Price per barrel | $ / bbl			37.13	26.19	106.06
Published rig count, decrease (more than) (as a percent)				70.00%
Drilling rigs, utilization (as a percent)						86.00%
Line of credit | Revolving credit facility
Property, Plant and Equipment [Line Items]
Increase to borrowing base		$ 6,300,000
Borrowing base		$ 86,400,000		$ 86,400,000
Line of credit | Revolving credit facility | CIT Finance, LLC syndicate
Property, Plant and Equipment [Line Items]
Revolving credit facility, maximum borrowing capacity								$ 125,000,000	$ 155,000,000
Subsequent Event
Property, Plant and Equipment [Line Items]
Proceeds from offering	$ 43,000,000
Subsequent Event | IPO
Property, Plant and Equipment [Line Items]
Shares issued (in shares) | shares	13,225,000
Price per share (in dollars per share) | $ / shares	$ 3.50
Subsequent Event | Line of credit | Revolving credit facility | CIT Finance, LLC syndicate
Property, Plant and Equipment [Line Items]
Revolving credit facility, maximum borrowing capacity							$ 85,000,000
Accordion feature | Line of credit | Revolving credit facility | CIT Finance, LLC syndicate
Property, Plant and Equipment [Line Items]
Revolving credit facility, maximum borrowing capacity									$ 25,000,000
Accordion feature | Subsequent Event | Line of credit | Revolving credit facility | CIT Finance, LLC syndicate
Property, Plant and Equipment [Line Items]
Revolving credit facility, maximum borrowing capacity							$ 25,000,000
Operating rig
Property, Plant and Equipment [Line Items]
Number of rigs | drilling_rig		14		14
Omni-directional walking system
Property, Plant and Equipment [Line Items]
Number of rigs | drilling_rig		13		13
Bi-fuel capabilities
Property, Plant and Equipment [Line Items]
Number of rigs | drilling_rig		12		12

Interim Financial Information26

Interim Financial Information (Details)	3 Months Ended
	Mar. 31, 2016segment
Accounting Policies [Abstract]
Reportable segments	1

Financial Instruments and Fai27

Financial Instruments and Fair Value (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Annualized discount rate (as a percent)	8.40%
Long-term debt, fair value	$ 59,500	$ 59,700
Long-term debt, carrying value	$ 63,145	$ 62,708

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Rig components and supplies	$ 2,408	$ 2,317

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Payables and Accruals [Abstract]
Accrued salaries and other compensation	$ 629	$ 2,050
Insurance	1,114	600
Deferred revenues	4,447	4,591
Property, sales and other taxes	1,255	2,585
Other	333	380
Accrued liabilities	$ 7,778	$ 10,206

Long-term Debt (Narrative) (Det

Long-term Debt (Narrative) (Details) - USD ($)	Mar. 31, 2016	Mar. 31, 2016	Jan. 01, 2017	Apr. 14, 2016	Dec. 31, 2015	Oct. 20, 2015	Nov. 30, 2014
Debt Instrument [Line Items]
Long-term debt	$ 63,145,000	$ 63,145,000			$ 62,708,000
Capital lease obligations recorded, reclassification from operating leases	$ 800,000	$ 800,000
Capital leases, term		36 months
Revolving credit facility | Line of credit
Debt Instrument [Line Items]
Borrowing limit based on eligible trade accounts (up to) (as a percent)	85.00%	85.00%
Eligible trade accounts receivable days outstanding limit (not more than)		90 days
Borrowing limit based on appraised forced liquidation of eligible completed and owned drilling rigs (up to) (as a percent)	72.50%	72.50%
Interest rate, basis spread based on availability (as a percent)		3.50%
Commitment fee on unused capacity (as a percent)		0.50%
Weighted average interest rate on borrowings (as a percent)	5.22%	5.22%
Line of credit facility, higher borrowing capacity option (up to)	$ 20,000,000	$ 20,000,000
Maximum leverage ratio		1.9
Line of credit facility, springing lock box arrangement, threshold	15,000,000	$ 15,000,000
Increase to borrowing base	6,300,000
Borrowing base	86,400,000	86,400,000
Long-term debt	62,700,000	62,700,000
Remaining availability	$ 23,700,000	$ 23,700,000
Revolving credit facility | Line of credit | LIBOR
Debt Instrument [Line Items]
Interest rate, basis spread (as a percent)		4.50%
Revolving credit facility | Line of credit | Three-month LIBOR
Debt Instrument [Line Items]
Interest rate, basis spread (as a percent)		1.00%
Revolving credit facility | Line of credit | Federal funds, effective rate
Debt Instrument [Line Items]
Interest rate, basis spread (as a percent)		0.05%
Revolving credit facility | Line of credit | CIT Finance, LLC syndicate
Debt Instrument [Line Items]
Revolving credit facility, maximum borrowing capacity						$ 125,000,000	$ 155,000,000
Maximum amount of previously capitalized construction costs added back to EBITDA (up to)		$ 2,000,000
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
Scenario, forecast | Revolving credit facility | Line of credit
Debt Instrument [Line Items]
Decrease borrowing limit quarterly (as a percent)			1.25%
Subsequent Event | Revolving credit facility | Line of credit
Debt Instrument [Line Items]
Line of credit facility, springing lock box arrangement, threshold				$ 10,000,000
Subsequent Event | Revolving credit facility | Line of credit | CIT Finance, LLC syndicate
Debt Instrument [Line Items]
Revolving credit facility, maximum borrowing capacity				85,000,000
Subsequent Event | 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

Long-term Debt (Schedule of Lon

Long-term Debt (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Long-term debt, including current portion	$ 63,511	$ 62,708
Less: current portion	(366)	0
Long-term debt	63,145	62,708
Capital lease obligations
Debt Instrument [Line Items]
Long-term debt, including current portion	791	0
Revolving credit facility | Line of credit
Debt Instrument [Line Items]
Long-term debt, including current portion	$ 62,720	$ 62,708

Stock-Based Compensation (Narra

Stock-Based Compensation (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation capitalized due to rig construction activity	$ 0	$ 221,000
Options, granted (in shares)	0
Options, exercisable (in shares)	882,340
Remaining contractual life	6 years 1 month
Weighted-average exercise price (in dollars per share)	$ 12.74
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs	$ 200,000
Weighted average recognition period	5 months
Restricted stock and restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs	$ 2,900,000
Weighted average recognition period	8 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]
Vesting period	3 years
Unrecognized compensation costs	$ 5,100,000
Weighted average recognition period	1 year 1 month
Restricted stock units (RSUs) | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, number of shares	1.5
Restricted stock units (RSUs) | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, number of shares	2
2012 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (up to)	3,454,000
Number of shares available for future awards	31,648
Options, granted (in shares)	0	0
2012 Plan | Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option expiration period	10 years

Stock-Based Compensation (Compe

Stock-Based Compensation (Compensation Cost) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	$ 1,155	$ 1,154
Stock options
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	69	214
Restricted stock and restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	$ 1,086	$ 940

Stock-Based Compensation (Stock

Stock-Based Compensation (Stock Option Activity) (Details)	3 Months Ended
	Mar. 31, 2016$ / sharesshares
Options
Options, beginning balance (in shares) | shares	956,653
Options, granted (in shares) | shares	0
Options, exercised (in shares) | shares	0
Options, forfeited/expired (in shares) | shares	0
Options, ending balance (in shares) | shares	956,653
Options, exercisable (in shares) | shares	882,340
Weighted Average Exercise Price
Weighted average exercise price, beginning balance (in dollars per share) | $ / shares	$ 12.74
Weighted average exercise price, granted (in dollars per share) | $ / shares	0
Weighted average exercise price, exercised (in dollars per share) | $ / shares	0
Weighted average exercise price, forfeited/expired (in dollars per share) | $ / shares	0
Weighted average exercise price, ending balance (in dollars per share) | $ / shares	12.74
Weighted-average exercise price, exercisable (in dollars per share) | $ / shares	$ 12.74

Stock-Based Compensation (Unves

Stock-Based Compensation (Unvested Stock Option Activity) (Details)	3 Months Ended
	Mar. 31, 2016$ / sharesshares
Outstanding
Options, beginning balance (in shares) | shares	104,143
Options, granted (in shares) | shares	0
Options, vested (in shares) | shares	(29,830)
Options, forfeited/expired (in shares) | shares	0
Options, ending balance (in shares) | shares	74,313
Weighted Average Grant-Date Fair Value
Weighted average grant date fair value, beginning balance (in dollars per share) | $ / shares	$ 3.88
Weighted average grant date fair value, granted (in dollars per share) | $ / shares	0
Weighted average grant date fair value, vested (in dollars per share) | $ / shares	4.27
Weighted average grant date fair value, forfeited/expired (in dollars per share) | $ / shares	0
Weighted average grant date fair value, ending balance (in dollars per share) | $ / shares	$ 3.73

Stock-Based Compensation (Restr

Stock-Based Compensation (Restricted Stock Activity) (Details)	3 Months Ended
	Mar. 31, 2016$ / sharesshares
Shares
Number, beginning balance (in shares) | shares	463,413
Number, granted (in shares) | shares	814,170
Number, vested (in shares) | shares	0
Number, forfeited (in shares) | shares	0
Number, ending balance (in shares) | shares	1,277,583
Weighted Average Grant-Date Fair Value Per Share
Weighted average grant date fair value per share, beginning balance (in dollars per share) | $ / shares	$ 12.97
Weighted average grant date fair value per share, granted (in dollars per share) | $ / shares	4.01
Weighted average grant date fair value per share, vested (in dollars per share) | $ / shares	0
Weighted average grant date fair value per share, forfeited (in dollars per share) | $ / shares	0
Weighted average grant date fair value per share, ending balance (in dollars per share) | $ / shares	$ 7.26
Restricted stock and restricted stock units
Shares
Number, beginning balance (in shares) | shares	388,265
Number, granted (in shares) | shares	0
Number, vested (in shares) | shares	0
Number, forfeited (in shares) | shares	0
Number, ending balance (in shares) | shares	388,265
Weighted Average Grant-Date Fair Value Per Share
Weighted average grant date fair value per share, beginning balance (in dollars per share) | $ / shares	$ 10.80
Weighted average grant date fair value per share, granted (in dollars per share) | $ / shares	0
Weighted average grant date fair value per share, vested (in dollars per share) | $ / shares	0
Weighted average grant date fair value per share, forfeited (in dollars per share) | $ / shares	0
Weighted average grant date fair value per share, ending balance (in dollars per share) | $ / shares	$ 10.80

Stockholders_ Equity and Earn37

Stockholders’ Equity and Earnings (Loss) per Share (Basic and Diluted Computation) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Net (loss) income (numerator):
Net (loss) income	$ (414)	$ 1,375
Net (loss) earnings per share:
Basic and diluted (usd per share)	$ (0.02)	$ 0.06
Shares (denominator):
Weighted-average number of shares outstanding - basic	24,015	24,629
Net effect of dilutive stock options, warrants and restricted stock units	0	0
Weighted-average number of shares outstanding - diluted	24,015	24,629

Stockholders_ Equity and Earn38

Stockholders’ Equity and Earnings (Loss) per Share (Narrative) (Details) - $ / shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock, par value (usd per share)	$ 0.01		$ 0.01
Number of shares of restricted stock	1,277,583		463,413
Treasury stock, number of shares held	136,278
Shares authorized (in shares)	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 units (RSUs)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities	1,277,583	507,684
Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares outstanding	24,403,659		24,403,659
Restricted stock and restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of shares of restricted stock	388,265		388,265

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Tax Disclosure [Abstract]
Effective income tax rate	(1.00%)	(12.70%)

Commitments and Contingencies40

Commitments and Contingencies (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Outstanding purchase commitments	$ 27,200,000
Outstanding purchase commitments, equipment to be delivered in 2016	10,900,000
Outstanding purchase commitments, equipment to be delivered in 2017	9,200,000
Outstanding purchase commitments, equipment to be delivered in 2018	7,100,000
2,016	409,000
2,017	319,000
2,018	125,000
2,019	58,000
2,020	0
Thereafter	0
Total future lease payments	911,000
Long-term Purchase Commitment [Line Items]
Property, plant and equipment, net	281,202,000	$ 283,378,000
Assets Held under Capital Leases
Long-term Purchase Commitment [Line Items]
Property, plant and equipment, net	900,000	$ 0
Accumulated depreciation	$ 100,000

Related Parties (Narrative) (De

Related Parties (Narrative) (Details)	3 Months Ended
	Mar. 31, 2016USD ($)Director	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)	May. 31, 2015Director
Global Energy Services Operating, LLC | Affiliated entity
Related Party Transaction [Line Items]
Number of directors | Director	1			1
Ownership percentage	36.00%
Purchases		$ 400,000
Outstanding payables	$ 0		$ 0
Vendor One | Purchases of Oilfield Equipment and Related Supplies [Member] | Director
Related Party Transaction [Line Items]
Number of directors | Director	1
Purchases	$ 1,300,000	400,000
Outstanding payables	600,000		100,000
Vendor Two | Purchases of Oilfield Equipment and Related Supplies [Member] | Affiliated entity
Related Party Transaction [Line Items]
Purchases	5,400	$ 0
Outstanding payables	$ 4,000		$ 100,000