Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 24, 2017 | |
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 | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 37,807,467 |
Balance Sheets (Unaudited)
Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 5,465 | $ 7,071 |
Accounts receivable, net | 12,946 | 11,468 |
Inventories | 2,407 | 2,336 |
Assets held for sale | 6,388 | 3,915 |
Prepaid expenses and other current assets | 3,737 | 3,102 |
Total current assets | 30,943 | 27,892 |
Property, plant and equipment, net | 271,725 | 273,188 |
Other long-term assets, net | 865 | 1,027 |
Total assets | 303,533 | 302,107 |
Liabilities | ||
Current portion of long-term debt | 468 | 441 |
Accounts payable | 10,825 | 10,031 |
Accrued liabilities | 5,867 | 7,821 |
Total current liabilities | 17,160 | 18,293 |
Long-term debt | 39,527 | 26,078 |
Deferred income taxes | 476 | 396 |
Other long-term liabilities | 1 | 88 |
Total liabilities | 57,164 | 44,855 |
Commitments and contingencies (Note 10) | ||
Stockholders’ equity | ||
Common stock, $0.01 par value, 100,000,000 shares authorized; 38,025,637 and 37,831,723 shares issued, respectively; and 37,807,467 and 37,617,920 shares outstanding, respectively | 378 | 376 |
Additional paid-in capital | 325,630 | 323,918 |
Accumulated deficit | (77,920) | (65,347) |
Treasury stock, at cost, 218,170 and 213,803 shares, respectively | (1,719) | (1,695) |
Total stockholders’ equity | 246,369 | 257,252 |
Total liabilities and stockholders’ equity | $ 303,533 | $ 302,107 |
Balance Sheets (Unaudited) (Par
Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
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) | 38,025,637 | 37,831,723 |
Shares outstanding (in shares) | 37,807,467 | 37,617,920 |
Treasury stock (in shares) | 218,170 | 213,803 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | ||||
Revenues | $ 21,285 | $ 15,155 | $ 41,521 | $ 37,610 |
Costs and expenses | ||||
Operating costs | 15,808 | 7,398 | 30,706 | 19,965 |
Selling, general and administrative | 3,435 | 5,005 | 7,153 | 8,626 |
Depreciation and amortization | 6,335 | 5,816 | 12,591 | 11,641 |
Asset impairment, net | 546 | 0 | 675 | 0 |
Loss (gain) on disposition of assets, net | 745 | 37 | 1,573 | (88) |
Total costs and expenses | 26,869 | 18,256 | 52,698 | 40,144 |
Operating loss | (5,584) | (3,101) | (11,177) | (2,534) |
Interest expense | (686) | (1,059) | (1,316) | (2,036) |
Loss before income taxes | (6,270) | (4,160) | (12,493) | (4,570) |
Income tax expense | 34 | 31 | 80 | 35 |
Net loss | $ (6,304) | $ (4,191) | $ (12,573) | $ (4,605) |
Loss per share: | ||||
Basic and diluted (usd per share) | $ (0.17) | $ (0.12) | $ (0.33) | $ (0.16) |
Weighted average number of common shares outstanding: | ||||
Basic and diluted (shares) | 37,679 | 33,608 | 37,613 | 28,812 |
Statements of Stockholders_ Equ
Statements of Stockholders’ Equity (Unaudited) - 6 months ended Jun. 30, 2017 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Treasury Stock |
Beginning balance (shares) at Dec. 31, 2016 | 37,617,920 | ||||
Beginning balance at Dec. 31, 2016 | $ 257,252 | $ 376 | $ 323,918 | $ (65,347) | $ (1,695) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Restricted stock forfeited (shares) | (3,195) | ||||
RSUs vested, net of shares withheld for taxes (shares) | 197,109 | ||||
RSUs vested, net of shares withheld for taxes | (455) | $ 2 | (457) | ||
Purchase of treasury stock (shares) | (4,367) | ||||
Purchase of treasury stock | (24) | (24) | |||
Stock-based compensation | 2,169 | 2,169 | |||
Net loss | (12,573) | (12,573) | |||
Ending balance (shares) at Jun. 30, 2017 | 37,807,467 | ||||
Ending balance at Jun. 30, 2017 | $ 246,369 | $ 378 | $ 325,630 | $ (77,920) | $ (1,719) |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities | ||
Net loss | $ (12,573) | $ (4,605) |
Adjustments to reconcile net loss to net cash provided by operating activities | ||
Depreciation and amortization | 12,591 | 11,641 |
Asset impairment, net | 675 | 0 |
Stock-based compensation | 2,169 | 2,360 |
Stock-based compensation - executive retirement | 0 | (67) |
Loss (gain) on disposition of assets, net | 1,573 | (88) |
Deferred income taxes | 80 | 36 |
Amortization of deferred financing costs | 250 | 283 |
Write-off of deferred financing costs | 0 | 504 |
Changes in operating assets and liabilities | ||
Accounts receivable | (1,478) | 11,368 |
Inventories | (3) | (146) |
Prepaid expenses and other assets | (644) | 176 |
Accounts payable and accrued liabilities | (392) | (6,078) |
Net cash provided by operating activities | 2,248 | 15,384 |
Cash flows from investing activities | ||
Purchases of property, plant and equipment | (17,367) | (10,521) |
Proceeds from insurance claims | 0 | 188 |
Proceeds from the sale of assets | 1,060 | 747 |
Net cash used in investing activities | (16,307) | (9,586) |
Cash flows from financing activities | ||
Borrowings under credit facility | 22,611 | 34,775 |
Repayments under credit facility | (9,363) | (81,129) |
Public offering proceeds, net of offering costs | 0 | 42,983 |
Purchase of treasury stock | (24) | (183) |
RSUs withheld for taxes | (455) | 0 |
Financing costs paid | (8) | (217) |
Payments for capital lease obligations | (308) | (285) |
Net cash provided by (used in) financing activities | 12,453 | (4,056) |
Net (decrease) increase in cash and cash equivalents | (1,606) | 1,742 |
Beginning of period | 7,071 | 5,344 |
End of period | 5,465 | 7,086 |
Supplemental disclosure of cash flow information | ||
Cash paid during the period for interest | 1,157 | 1,426 |
Supplemental disclosure of non-cash investing and financing activities | ||
Change in property, plant and equipment purchases in accounts payable | (855) | (2,577) |
Additions to property, plant and equipment through capital leases | $ 536 | $ 965 |
Nature of Operations
Nature of Operations | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Except as expressly stated or the context otherwise requires, the terms "we," "us," "our," "ICD," and the "Company" refer to Independence Contract Drilling, Inc. 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 fleet comprised entirely of custom designed ShaleDriller® rigs. Our standardized fleet currently consists of 14 premium 200 Series ShaleDriller® rigs, all of which are equipped with our integrated omni-directional walking systems. Our final rig that was converted to 200 Series status during the second quarter of 2017 will commence operating during the third quarter of 2017. Every ShaleDriller® rig in our fleet is a 1500-hp, AC programmable rig designed to be fast-moving between drilling sites and is equipped with 7500 psi mud systems, top drives, automated tubular handling systems and blowout preventer handling systems. All 14 of our rigs are equipped with bi-fuel capabilities that enable the rig to operate on either diesel or a natural gas-diesel blend. Our first rig commenced 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 operating in the Permian Basin, Eagle Ford Shale and the Haynesville Shale, however, our rigs have previously operated in the Mid-Continent and Eaglebine regions as well. Our business depends on the level of exploration and production activity by oil and natural gas companies operating in the United States, and in particular, the regions where we actively market our contract drilling services. The oil and natural gas exploration and production industry is a historically cyclical industry characterized by significant changes in the levels of exploration and development activities. Oil and natural 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 natural 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 United States and the regions where we market our contract drilling services, whether resulting from changes in oil and natural gas prices or otherwise, could materially and adversely affect our business. Oil and Natural Gas Prices and Drilling Activity Oil prices began to decline in the second half of 2014, declined further during 2015 and remained low in 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 reached a low of $26.19 on February 11, 2016 (WTI spot price as reported by the United States Energy Information Administration). As a result, our industry experienced an exceptional downturn and market conditions have only begun to stabilize and slowly recover. Recently, and in particular, following the November 2016 decision by the Organization of Petroleum Exporting Countries (“OPEC”) to reduce production quotas, oil prices began to recover. However, there are no indications at this time that oil prices and rig counts will recover, in the near term to their previous highs experienced in 2014. As market conditions have improved from trough levels in 2016 and begun to stabilize, demand for our ShaleDriller® rigs has improved. At June 30, 2017, all of our rigs were under contract. In addition to improving utilization, contract tenors are improved with customers willing to sign term contracts of six to twelve months or longer, and at higher dayrates compared to trough levels. However, the pace and duration of the current recovery is unknown, and recently, oil prices have fallen below $45 per barrel at times. If oil prices were to fall below $45 per barrel for any sustained period of time, market conditions and demand for our products and services could deteriorate. Amendment to Revolving Credit Facility On July 14, 2017, we amended our existing credit facility ("the Credit Facility"). The Credit Facility amendment maintained the aggregate commitments under the facility at $85 million and extended the maturity date two years to November 5, 2020. In addition, the amendment provided for an additional uncommitted $65.0 million accordion feature that allows for future increases in facility commitments. The Credit Facility is secured by substantially all of our assets. Borrowings under the 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 October 1, 2017, the 75% advance rate on our eligible completed and owned drilling rigs decreases by 1.25% per quarter, subject to a floor of 65% . At June 30, 2017, our aggregate borrowings under the credit facility were $39.0 million and the borrowing base was $89.7 million . Proforma for the amendment our borrowing base would have been $95.4 million . Interest under the Credit Facility remains unchanged. The amendment contained various changes to the financial and other covenants to accommodate the extension in term, including changes to the leverage ratio covenant, fixed charge coverage ratio covenant and rig utilization ratio covenant. Assets Held For Sale During the fourth quarter of 2016, we began a review of our rig fleet and other capital equipment with a focus on opportunities to standardize certain rig components across our fleet. The standardization of this equipment creates operating efficiencies in maintaining this equipment, as well as efficiencies when crews transfer between rigs. As a result of our review, we identified several non-standard items which, while fully functional, were less than optimal from an operations perspective. Such assets were classified as held for sale on our December 31, 2016 balance sheet. In the second quarter of 2017, we sold $1.6 million of these assets and recognized a loss on the sale of assets of $0.8 million . During the second quarter of 2017, our management committed to a plan to sell our corporate headquarters and rig assembly yard complex located at 11601 North Galayda Street, Houston, Texas, in order to relocate to office space and a yard facility more suitable to our needs. As a result, we reclassified an aggregate $4.0 million of land, buildings and equipment from property, plant and equipment to assets held for sale on our June 30, 2017 balance sheet and recognized a $0.5 million asset impairment charge representing the difference between the carrying value and the fair value, less the costs to sell the related property. |
Interim Financial Information
Interim Financial Information | 6 Months Ended |
Jun. 30, 2017 | |
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 (“GAAP”). These financial statements should be read along with our audited financial statements for the year ended December 31, 2016 , included in our Annual Report on Form 10-K for the year ended December 31, 2016 . 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 and six months ended June 30, 2017 may not be indicative of results that will be realized for the full year ending December 31, 2017 . 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 Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, 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 in the process of evaluating the impact this guidance will have on our financial statements and have engaged a third party expert to assist us on this evaluation process. We, along with our third party experts, have identified and begun to analyze a sample of contracts that are representative of our business and are in the process of performing a detailed analysis of the performance obligations and pricing arrangements therein. We are also still evaluating the portion of our contract drilling revenues that will be subject to the new leasing guidance discussed below. We currently expect to adopt this new guidance utilizing the modified retrospective approach. Once this new guidance is adopted, additional disclosures will be required in our financial statements. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients, to address certain narrow aspects of ASU No. 2014-09 such as assessing the collectability criterion, presentation of sales taxes and other similar taxes collected from customers, non-cash consideration, contract modifications at transition, completed contracts at transition, and technical correction. The guidance is effective for public companies for annual reporting periods beginning after December 15, 2017. We are currently in the process of evaluating the impact this guidance will have on our financial statements and have engaged a third party expert to assist us on this evaluation process. Once this new guidance is adopted, additional disclosures will be required in our financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases, 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. We are currently evaluating the impact this guidance will have on our financial statements with respect to revenue recognition as a lessor, and have engaged a third party expert to assist us on this evaluation process. Furthermore, the majority of our operating leases with lease terms greater than twelve months, where we are the lessee, are currently accounted for as capital leases. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments, as additional guidance on the measurement of credit losses on financial instruments. The new guidance requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. In addition, the guidance amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The new guidance is effective for SEC filers for interim and annual periods beginning after December 15, 2019, with early adoption permitted for interim and annual periods beginning after December 15, 2018. We are in the initial stages of evaluating the impact this guidance will have on our accounts receivable. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows, to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The update addresses the following eight specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (COLIs) (including bank-owned life insurance policies (BOLIs)); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. We expect the implementation of this standard to change the classification of the described transactions within our Statement of Cash Flows. |
Financial Instruments and Fair
Financial Instruments and Fair Value | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value | Financial Instruments and Fair Value 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 or liabilities; 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. 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 5.9% . 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 $39.5 million and $26.6 million as of June 30, 2017 and December 31, 2016 , respectively, compared to a carrying amount of $39.5 million and $26.1 million as of June 30, 2017 and December 31, 2016 , 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. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories All of our inventory as of June 30, 2017 and December 31, 2016 consisted of rig components and supplies. |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 30, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following: (in thousands) June 30, 2017 December 31, 2016 Accrued salaries and other compensation $ 1,754 $ 3,784 Insurance 1,094 787 Deferred revenues 1,248 1,139 Property, sales and other taxes 1,623 1,943 Other 148 168 $ 5,867 $ 7,821 |
Long-term Debt
Long-term Debt | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt Our Long-term Debt consisted of the following: (in thousands) June 30, 2017 December 31, 2016 Credit facility due November 5, 2018 $ 39,000 $ 25,752 Capital lease obligations 995 767 39,995 26,519 Less: current portion (468 ) (441 ) Long-term debt $ 39,527 $ 26,078 Credit Facility In November 2014, we entered into an amended and restated credit agreement 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. In April 2015, we amended the Credit Facility to provide for a springing lock-box arrangement. In October 2015, in light of 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. In April 2016, we again amended the Credit Facility to reduce aggregate commitments to $85.0 million and further modify certain maintenance covenants. In connection with this amendment, we expensed certain previously deferred debt issuance costs totaling $0.5 million reflecting the reduction in borrowing capacity. On July 14, 2017, we again amended our existing Credit Facility. The Credit Facility amendment maintained the aggregate commitments at $85 million and extended the maturity date two years to November 5, 2020. In addition, the amendment provided for an additional uncommitted $65.0 million accordion feature that allows for future increases in facility commitments. The amendment contained various changes to the financial and other covenants to accommodate the extension in term, including changes to the leverage ratio covenant, fixed charge coverage ratio covenant and rig utilization ratio covenant. Additionally, the advance rate increased to 75% through September 30, 2017, decreasing 1.25% per quarter, subject to a floor of 65% . At June 30, 2017, our aggregate borrowings under the Credit Facility were $39.0 million and the borrowing base was $89.7 million . Proforma for the amendment our borrowing base would have been $95.4 million . 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. Under the Credit Facility, for purposes of calculating EBITDA, non-cash stock-based compensation expense is added back to EBITDA, as well as up to $2.0 million of previously capitalized construction costs that may be incurred in 2017. The Credit Facility also permits us to incur up to $20.0 million of additional indebtedness for the purchase of additional rigs or rig equipment. As of June 30, 2017, we are in compliance with these covenants. The Credit Facility provides that an event of default may occur if a material adverse change to ICD occurs, which is considered a subjective acceleration clause under applicable accounting rules. In accordance with 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 requirement for a mandatory lock-box trigger occurs when availability under the Credit Facility is $10.0 million or less. 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. 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 two times a year and are subject to upward or downward revisions as a result of market conditions as well as the age of the rig. 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 June 30, 2017 , the weighted average interest rate on our borrowings was 5.68% . 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 | 6 Months Ended |
Jun. 30, 2017 | |
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 non-employee directors. The 2012 Plan was subsequently amended in August 2014 and June 2016. 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 4,754,000 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 June 30, 2017 , approximately 1,194,974 shares were available for future awards. In the first quarter of 2017, we adopted ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting. The FASB issued this accounting standard in an effort to simplify the accounting for employee share-based payments and improve the usefulness of the information provided to users of financial statements. Our policy is to account for forfeitures of share-based compensation awards as they occur. A summary of compensation cost recognized for stock-based payment arrangements is as follows: (in thousands) Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Compensation cost recognized: Stock options $ — $ 3 $ — $ 72 Restricted stock and restricted stock units 1,157 1,135 2,169 2,221 Total stock-based compensation $ 1,157 $ 1,138 $ 2,169 $ 2,293 No stock-based compensation was capitalized in connection with rig construction activity during the three and six months ended June 30, 2017 or the three and six months ended June 30, 2016 . 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 six months ended June 30, 2017 or the six months ended June 30, 2016 . A summary of stock option activity and related information for the six months ended June 30, 2017 is as follows: Six Months Ended June 30, 2017 Options Weighted Average Exercise Price Outstanding at January 1, 2017 935,720 $ 12.74 Granted — — Exercised — — Forfeited/expired (135,020 ) 12.74 Outstanding at June 30, 2017 800,700 $ 12.74 Exercisable at June 30, 2017 800,700 $ 12.74 The number of options vested at June 30, 2017 was 800,700 with a weighted average remaining contractual life of 4.8 years and a weighted average exercise price of $12.74 per share. There were no unvested options or unrecognized compensation cost related to outstanding stock options at June 30, 2017 . 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 vesting period. The fair value of restricted stock awards is determined based on the estimated fair market value of our shares on the grant date. As of June 30, 2017 , there was $0.2 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 0.1 years . A summary of the status of our restricted stock awards as of June 30, 2017 , and of changes in restricted stock outstanding during the six months ended June 30, 2017 , is as follows: Six Months Ended June 30, 2017 Shares Weighted Average Grant-Date Fair Value Per Share Outstanding at January 1, 2017 147,368 $ 10.67 Granted — — Vested (15,968 ) 8.35 Forfeited (3,195 ) 8.35 Outstanding at June 30, 2017 128,205 $ 11.02 Restricted Stock Units We have granted restricted stock units ("RSUs") to key employees under the 2012 Plan. We have granted three -year cliff 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 two shares of ICD common stock with no exercise price. Exercisability 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, safety or uptime performance statistics, 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 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 June 30, 2017 , there was $4.3 million of total unrecognized compensation cost related to unvested RSUs. This cost is expected to be recognized over a weighted average period of 1.1 years . A summary of the status of our RSUs as of June 30, 2017 , and of changes in RSUs outstanding during the six months ended June 30, 2017 , is as follows: Six Months Ended June 30, 2017 RSUs Weighted Outstanding at January 1, 2017 1,030,658 $ 7.18 Granted 656,631 5.76 Vested and converted (197,109 ) 4.75 Forfeited (122,357 ) 5.47 Outstanding at June 30, 2017 1,367,823 $ 7.00 |
Stockholders_ Equity and Earnin
Stockholders’ Equity and Earnings (Loss) per Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Stockholders' Equity and Earnings (Loss) per Share | Stockholders’ Equity and Earnings (Loss) per Share As of June 30, 2017 , we had a total of 37,807,467 shares of common stock, $0.01 par value, outstanding, including 128,205 shares of restricted stock. We also had 218,170 shares held as treasury stock. Total authorized common stock is 100,000,000 shares. Basic earnings (loss) per common share (“EPS”) are 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: Three Months Ended June 30, Six Months Ended June 30, (in thousands, except per share data) 2017 2016 2017 2016 Net loss (numerator): $ (6,304 ) $ (4,191 ) $ (12,573 ) $ (4,605 ) Loss per share: Basic and diluted $ (0.17 ) $ (0.12 ) $ (0.33 ) $ (0.16 ) Shares (denominator): Weighted average common shares outstanding - basic 37,679 33,608 37,613 28,812 Net effect of dilutive stock options, warrants and restricted stock units — — — — Weighted average common shares outstanding - diluted 37,679 33,608 37,613 28,812 For all periods presented, the computation of diluted loss per share excludes the effect of certain outstanding stock options and RSUs because their inclusion would be anti-dilutive. The number of options that were excluded from diluted loss per share were 800,700 during the three and six months ended June 30, 2017 and 948,803 during the three and six months ended June 30, 2016 . RSUs, which are not participating securities and are excluded from our basic and diluted loss per share because they are anti-dilutive, were 1,367,823 for the three and six months ended June 30, 2017 and 1,077,663 for the three and six months ended June 30, 2016 . |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective tax rate was (0.5)% and (0.6)% for the three and six months ended June 30, 2017 , respectively, and (0.7)% and (0.8)% for the three and six months ended June 30, 2016 , respectively. The rate in all periods is primarily comprised of the effect of the Texas margin tax. For federal income tax purposes, we have applied a valuation allowance against any potential deferred tax asset which would have ordinarily resulted. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Commitments As of June 30, 2017 , we had outstanding purchase commitments to a number of suppliers totaling $16.0 million , net of deposits previously made, related primarily to the construction of drilling rigs. Of these commitments, $8.4 million relates to equipment currently scheduled for delivery in 2017 and $7.6 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 June 30, 2017 , were as follows: (in thousands) 2017 $ 298 2018 454 2019 332 2020 99 $ 1,183 As of June 30, 2017 , property, plant and equipment in our balance sheets included $1.0 million of equipment under capital lease, net of $0.4 million of accumulated amortization. As of December 31, 2016 , property, plant and equipment in our balance sheets included $0.8 million of equipment under capital lease, net of $0.3 million of accumulated amortization. This equipment consists entirely of vehicles used in our operations. Contingencies We may be the subject of lawsuits and claims arising in the ordinary course of business from time to time. Management cannot predict the ultimate outcome of such lawsuits and claims. While lawsuits and claims are asserted for amounts that may be material should an unfavorable outcome be the result, management does not currently expect that the outcome of any of these known legal proceedings or claims will have a material adverse effect on our financial position or results of operations. |
Interim Financial Information (
Interim Financial Information (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Accounting | These unaudited financial statements include the accounts of ICD, and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). These financial statements should be read along with our audited financial statements for the year ended December 31, 2016 , included in our Annual Report on Form 10-K for the year ended December 31, 2016 . 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 and six months ended June 30, 2017 may not be indicative of results that will be realized for the full year ending December 31, 2017 . |
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 Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, 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 in the process of evaluating the impact this guidance will have on our financial statements and have engaged a third party expert to assist us on this evaluation process. We, along with our third party experts, have identified and begun to analyze a sample of contracts that are representative of our business and are in the process of performing a detailed analysis of the performance obligations and pricing arrangements therein. We are also still evaluating the portion of our contract drilling revenues that will be subject to the new leasing guidance discussed below. We currently expect to adopt this new guidance utilizing the modified retrospective approach. Once this new guidance is adopted, additional disclosures will be required in our financial statements. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients, to address certain narrow aspects of ASU No. 2014-09 such as assessing the collectability criterion, presentation of sales taxes and other similar taxes collected from customers, non-cash consideration, contract modifications at transition, completed contracts at transition, and technical correction. The guidance is effective for public companies for annual reporting periods beginning after December 15, 2017. We are currently in the process of evaluating the impact this guidance will have on our financial statements and have engaged a third party expert to assist us on this evaluation process. Once this new guidance is adopted, additional disclosures will be required in our financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases, 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. We are currently evaluating the impact this guidance will have on our financial statements with respect to revenue recognition as a lessor, and have engaged a third party expert to assist us on this evaluation process. Furthermore, the majority of our operating leases with lease terms greater than twelve months, where we are the lessee, are currently accounted for as capital leases. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments, as additional guidance on the measurement of credit losses on financial instruments. The new guidance requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. In addition, the guidance amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The new guidance is effective for SEC filers for interim and annual periods beginning after December 15, 2019, with early adoption permitted for interim and annual periods beginning after December 15, 2018. We are in the initial stages of evaluating the impact this guidance will have on our accounts receivable. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows, to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The update addresses the following eight specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (COLIs) (including bank-owned life insurance policies (BOLIs)); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. We expect the implementation of this standard to change the classification of the described transactions within our Statement of Cash Flows. |
Fair Value Measurement | 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 or liabilities; 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. |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following: (in thousands) June 30, 2017 December 31, 2016 Accrued salaries and other compensation $ 1,754 $ 3,784 Insurance 1,094 787 Deferred revenues 1,248 1,139 Property, sales and other taxes 1,623 1,943 Other 148 168 $ 5,867 $ 7,821 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Our Long-term Debt consisted of the following: (in thousands) June 30, 2017 December 31, 2016 Credit facility due November 5, 2018 $ 39,000 $ 25,752 Capital lease obligations 995 767 39,995 26,519 Less: current portion (468 ) (441 ) Long-term debt $ 39,527 $ 26,078 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 Compensation cost recognized: Stock options $ — $ 3 $ — $ 72 Restricted stock and restricted stock units 1,157 1,135 2,169 2,221 Total stock-based compensation $ 1,157 $ 1,138 $ 2,169 $ 2,293 |
Summary of Stock Option Activity and Related Information | A summary of stock option activity and related information for the six months ended June 30, 2017 is as follows: Six Months Ended June 30, 2017 Options Weighted Average Exercise Price Outstanding at January 1, 2017 935,720 $ 12.74 Granted — — Exercised — — Forfeited/expired (135,020 ) 12.74 Outstanding at June 30, 2017 800,700 $ 12.74 Exercisable at June 30, 2017 800,700 $ 12.74 |
Schedule of Restricted Stock Activity | A summary of the status of our RSUs as of June 30, 2017 , and of changes in RSUs outstanding during the six months ended June 30, 2017 , is as follows: Six Months Ended June 30, 2017 RSUs Weighted Outstanding at January 1, 2017 1,030,658 $ 7.18 Granted 656,631 5.76 Vested and converted (197,109 ) 4.75 Forfeited (122,357 ) 5.47 Outstanding at June 30, 2017 1,367,823 $ 7.00 A summary of the status of our restricted stock awards as of June 30, 2017 , and of changes in restricted stock outstanding during the six months ended June 30, 2017 , is as follows: Six Months Ended June 30, 2017 Shares Weighted Average Grant-Date Fair Value Per Share Outstanding at January 1, 2017 147,368 $ 10.67 Granted — — Vested (15,968 ) 8.35 Forfeited (3,195 ) 8.35 Outstanding at June 30, 2017 128,205 $ 11.02 |
Stockholders_ Equity and Earn21
Stockholders’ Equity and Earnings (Loss) per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 losses per share computations is as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands, except per share data) 2017 2016 2017 2016 Net loss (numerator): $ (6,304 ) $ (4,191 ) $ (12,573 ) $ (4,605 ) Loss per share: Basic and diluted $ (0.17 ) $ (0.12 ) $ (0.33 ) $ (0.16 ) Shares (denominator): Weighted average common shares outstanding - basic 37,679 33,608 37,613 28,812 Net effect of dilutive stock options, warrants and restricted stock units — — — — Weighted average common shares outstanding - diluted 37,679 33,608 37,613 28,812 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 , were as follows: (in thousands) 2017 $ 298 2018 454 2019 332 2020 99 $ 1,183 |
Nature of Operations - Operatio
Nature of Operations - Operations & Oil and Natural Gas Prices and Drilling Activity (Details) | Jun. 30, 2017drilling_rig$ / bbl | Feb. 11, 2016$ / bbl | Dec. 31, 2015$ / bbl | Sep. 30, 2014$ / bbl |
Property, Plant and Equipment [Line Items] | ||||
Closing price of oil (in dollars per barrel) | $ / bbl | 37.13 | 106.06 | ||
Market price of oil | $ / bbl | 45 | 26.19 | ||
Operating rig | ||||
Property, Plant and Equipment [Line Items] | ||||
Number of rigs | drilling_rig | 14 | |||
Bi-fuel capabilities | ||||
Property, Plant and Equipment [Line Items] | ||||
Number of rigs | drilling_rig | 14 |
Nature of Operations - Amendmen
Nature of Operations - Amendment to Revolving Credit Facility (Details) - USD ($) | Jul. 14, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Apr. 30, 2016 | Oct. 31, 2015 | Nov. 30, 2014 |
Line of Credit Facility [Line Items] | ||||||
Aggregate borrowings | $ 39,995,000 | $ 26,519,000 | ||||
Line of credit | Revolving credit facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Borrowing limit based on eligible trade accounts (as a percent) | 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) | 75.00% | |||||
Aggregate borrowings | $ 39,000,000 | $ 25,752,000 | ||||
Borrowing base | 89,700,000 | |||||
Line of credit | Revolving credit facility | CIT Finance, LLC syndicate | ||||||
Line of Credit Facility [Line Items] | ||||||
Revolving credit facility, maximum borrowing capacity | $ 85,000,000 | $ 125,000,000 | $ 155,000,000 | |||
Line of credit | Subsequent Event | Revolving credit facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Borrowing limit based on appraised forced liquidation of eligible completed and owned drilling rigs (up to) (as a percent) | 75.00% | |||||
Line of credit | Subsequent Event | Revolving credit facility | CIT Finance, LLC syndicate | ||||||
Line of Credit Facility [Line Items] | ||||||
Revolving credit facility, maximum borrowing capacity | $ 85,000,000 | |||||
Decrease borrowing limit quarterly (as a percent) | 1.25% | |||||
Accordion feature | Line of credit | Revolving credit facility | CIT Finance, LLC syndicate | ||||||
Line of Credit Facility [Line Items] | ||||||
Revolving credit facility, maximum borrowing capacity | $ 25,000,000 | |||||
Accordion feature | Line of credit | Subsequent Event | Revolving credit facility | CIT Finance, LLC syndicate | ||||||
Line of Credit Facility [Line Items] | ||||||
Revolving credit facility, maximum borrowing capacity | $ 65,000,000 | |||||
Minimum | Line of credit | Subsequent Event | Revolving credit facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Borrowing limit based on appraised forced liquidation of eligible completed and owned drilling rigs (up to) (as a percent) | 65.00% | |||||
Pro Forma | Line of credit | Revolving credit facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Borrowing base | $ 95,400,000 | |||||
Scenario, Forecast | Line of credit | Revolving credit facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Borrowing limit based on appraised forced liquidation of eligible completed and owned drilling rigs (up to) (as a percent) | 75.00% | |||||
Scenario, Forecast | Line of credit | Revolving credit facility | CIT Finance, LLC syndicate | ||||||
Line of Credit Facility [Line Items] | ||||||
Revolving credit facility, maximum borrowing capacity | $ 85,000,000 | |||||
Additional term from extension | 2 years | |||||
Decrease borrowing limit quarterly (as a percent) | 1.25% | |||||
Scenario, Forecast | Accordion feature | Line of credit | Revolving credit facility | CIT Finance, LLC syndicate | ||||||
Line of Credit Facility [Line Items] | ||||||
Revolving credit facility, maximum borrowing capacity | $ 65,000,000 | |||||
Scenario, Forecast | Minimum | Line of credit | Revolving credit facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Borrowing limit based on appraised forced liquidation of eligible completed and owned drilling rigs (up to) (as a percent) | 65.00% |
Nature of Operations - Assets H
Nature of Operations - Assets Held For Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loss on the sale of assets | $ 800 | |||
Loss (gain) on disposition of assets, net | 745 | $ 37 | $ 1,573 | $ (88) |
Rig Fleet And Other Capital Equipment | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Property, plant and equipment classified as held for sale | 1,600 | 1,600 | ||
Corporate Headquarters And Rig Assembly Yard | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Property, plant and equipment classified as held for sale | 4,000 | $ 4,000 | ||
Loss (gain) on disposition of assets, net | $ 500 |
Interim Financial Information26
Interim Financial Information (Details) | 6 Months Ended |
Jun. 30, 2017segment | |
Accounting Policies [Abstract] | |
Reportable segments | 1 |
Financial Instruments and Fai27
Financial Instruments and Fair Value (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | ||
Annualized discount rate (as a percent) | 5.90% | |
Long-term debt, fair value | $ 39,500 | $ 26,600 |
Long-term debt, carrying value | $ 39,527 | $ 26,078 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Accrued salaries and other compensation | $ 1,754 | $ 3,784 |
Insurance | 1,094 | 787 |
Deferred revenues | 1,248 | 1,139 |
Property, sales and other taxes | 1,623 | 1,943 |
Other | 148 | 168 |
Accrued liabilities | $ 5,867 | $ 7,821 |
Long-term Debt (Schedule of Lon
Long-term Debt (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Long-term debt, including current portion | $ 39,995 | $ 26,519 |
Less: current portion | (468) | (441) |
Long-term debt | 39,527 | 26,078 |
Capital lease obligations | ||
Debt Instrument [Line Items] | ||
Long-term debt, including current portion | 995 | 767 |
Revolving credit facility | Line of credit | ||
Debt Instrument [Line Items] | ||
Long-term debt, including current portion | $ 39,000 | $ 25,752 |
Long-term Debt (Narrative) (Det
Long-term Debt (Narrative) (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Apr. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Jun. 30, 2017USD ($)rig_appraisal | Jun. 30, 2016USD ($) | Jul. 14, 2017USD ($) | Dec. 31, 2016USD ($) | Apr. 14, 2016USD ($) | Oct. 31, 2015USD ($) | Nov. 30, 2014USD ($) | |
Debt Instrument [Line Items] | |||||||||
Deferred debt issuance costs expensed | $ 0 | $ 504,000 | |||||||
Aggregate borrowings | $ 39,995,000 | $ 26,519,000 | |||||||
Number of rig appraisals, annually | rig_appraisal | 2 | ||||||||
Capital lease obligations recorded, reclassification from operating leases | $ 800,000 | ||||||||
Capital leases, term (months) | 36 months | ||||||||
Revolving credit facility | Line of credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowing limit based on appraised forced liquidation of eligible completed and owned drilling rigs (up to) (as a percent) | 75.00% | ||||||||
Aggregate borrowings | $ 39,000,000 | $ 25,752,000 | |||||||
Borrowing base | 89,700,000 | ||||||||
Line of credit facility, higher borrowing capacity option | $ 20,000,000 | ||||||||
Line of credit facility, springing lock box arrangement, threshold | $ 10,000,000 | ||||||||
Borrowing limit based on eligible trade accounts (as a percent) | 85.00% | ||||||||
Eligible trade accounts receivable days outstanding limit (not more than) | 90 days | ||||||||
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) | 5.68% | ||||||||
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 | $ 85,000,000 | $ 125,000,000 | $ 155,000,000 | ||||||
Deferred debt issuance costs expensed | $ 500,000 | ||||||||
Maximum amount of previously capitalized construction costs added back to EBITDA | $ 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 | ||||||||
Subsequent Event | Revolving credit facility | Line of credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowing limit based on appraised forced liquidation of eligible completed and owned drilling rigs (up to) (as a percent) | 75.00% | ||||||||
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 | ||||||||
Decrease borrowing limit quarterly (as a percent) | 1.25% | ||||||||
Subsequent Event | Revolving credit facility | Line of credit | CIT Finance, LLC syndicate | Accordion feature | |||||||||
Debt Instrument [Line Items] | |||||||||
Revolving credit facility, maximum borrowing capacity | $ 65,000,000 | ||||||||
Subsequent Event | Minimum | Revolving credit facility | Line of credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowing limit based on appraised forced liquidation of eligible completed and owned drilling rigs (up to) (as a percent) | 65.00% | ||||||||
Pro Forma | Revolving credit facility | Line of credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowing base | $ 95,400,000 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation capitalized due to rig construction activity | $ 0 | $ 0 | $ 0 | $ 0 |
Options, granted (in shares) | 0 | 0 | ||
Options, exercisable (in shares) | 800,700 | 800,700 | ||
Remaining contractual life (years) | 4 years 9 months | |||
Weighted-average exercise price (in dollars per share) | $ 12.74 | $ 12.74 | ||
Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation costs | $ 200,000 | $ 200,000 | ||
Weighted average recognition period | 1 month | |||
Restricted stock | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (years) | 3 years | |||
Restricted stock | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (years) | 4 years | |||
Restricted stock units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (years) | 3 years | |||
Unrecognized compensation costs | $ 4,300,000 | $ 4,300,000 | ||
Weighted average recognition period | 1 year 1 month | |||
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 (in shares) | 4,754,000 | 4,754,000 | ||
Number of shares available for future awards (in shares) | 1,194,974 | 1,194,974 | ||
2012 Plan | Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option expiration period (years) | 10 years |
Stock-Based Compensation (Compe
Stock-Based Compensation (Compensation Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation | $ 1,157 | $ 1,138 | $ 2,169 | $ 2,293 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation | 0 | 3 | 0 | 72 |
Restricted stock and restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation | $ 1,157 | $ 1,135 | $ 2,169 | $ 2,221 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Option Activity) (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Options | ||
Options, beginning balance (in shares) | 935,720 | |
Options, granted (in shares) | 0 | 0 |
Options, exercised (in shares) | 0 | |
Options, forfeited/expired (in shares) | (135,020) | |
Options, ending balance (in shares) | 800,700 | |
Options, exercisable (in shares) | 800,700 | |
Weighted Average Exercise Price | ||
Weighted average exercise price, beginning balance (in dollars per share) | $ 12.74 | |
Weighted average exercise price, granted (in dollars per share) | 0 | |
Weighted average exercise price, exercised (in dollars per share) | 0 | |
Weighted average exercise price, forfeited/expired (in dollars per share) | 12.74 | |
Weighted average exercise price, ending balance (in dollars per share) | 12.74 | |
Weighted-average exercise price, exercisable (in dollars per share) | $ 12.74 |
Stock-Based Compensation (Restr
Stock-Based Compensation (Restricted Stock Activity) (Details) | 6 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Restricted stock | |
Shares | |
Number, beginning balance (in shares) | shares | 147,368 |
Number, granted (in shares) | shares | 0 |
Number, vested (in shares) | shares | (15,968) |
Number, forfeited (in shares) | shares | (3,195) |
Number, ending balance (in shares) | shares | 128,205 |
Weighted Average Grant-Date Fair Value Per Share | |
Weighted average grant date fair value per share, beginning balance (in dollars per share) | $ / shares | $ 10.67 |
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 | 8.35 |
Weighted average grant date fair value per share, forfeited (in dollars per share) | $ / shares | 8.35 |
Weighted average grant date fair value per share, ending balance (in dollars per share) | $ / shares | $ 11.02 |
Restricted stock units (RSUs) | |
Shares | |
Number, beginning balance (in shares) | shares | 1,030,658 |
Number, granted (in shares) | shares | 656,631 |
Number, vested (in shares) | shares | (197,109) |
Number, forfeited (in shares) | shares | (122,357) |
Number, ending balance (in shares) | shares | 1,367,823 |
Weighted Average Grant-Date Fair Value Per Share | |
Weighted average grant date fair value per share, beginning balance (in dollars per share) | $ / shares | $ 7.18 |
Weighted average grant date fair value per share, granted (in dollars per share) | $ / shares | 5.76 |
Weighted average grant date fair value per share, vested (in dollars per share) | $ / shares | 4.75 |
Weighted average grant date fair value per share, forfeited (in dollars per share) | $ / shares | 5.47 |
Weighted average grant date fair value per share, ending balance (in dollars per share) | $ / shares | $ 7 |
Stockholders_ Equity and Earn35
Stockholders’ Equity and Earnings (Loss) per Share (Narrative) (Details) - $ / shares | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||
Treasury stock, number of shares held (in shares) | 218,170 | 218,170 | 213,803 | ||
Shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | ||
Equity Option | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities (in shares) | 800,700 | 948,803 | 800,700 | 963,196 | |
Restricted stock units (RSUs) | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities (in shares) | 1,367,823 | 1,077,663 | 1,367,823 | 1,277,583 | |
Common Stock | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Shares outstanding (in shares) | 37,807,467 | 37,807,467 | 37,617,920 | ||
Restricted stock | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Number of shares of restricted stock (in shares) | 128,205 | 128,205 | 147,368 |
Stockholders_ Equity and Earn36
Stockholders’ Equity and Earnings (Loss) per Share (Basic and Diluted Computation) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net loss (numerator): | ||||
Net loss | $ (6,304) | $ (4,191) | $ (12,573) | $ (4,605) |
Loss per share: | ||||
Basic and diluted (usd per share) | $ (0.17) | $ (0.12) | $ (0.33) | $ (0.16) |
Shares (denominator): | ||||
Weighted average common shares outstanding - basic | 37,679 | 33,608 | 37,613 | 28,812 |
Net effect of dilutive stock options, warrants and restricted stock units | 0 | 0 | 0 | 0 |
Weighted average common shares outstanding - diluted | 37,679 | 33,608 | 37,613 | 28,812 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate (as a percent) | (0.50%) | (0.70%) | (0.60%) | (0.80%) |
Commitments and Contingencies38
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Commitments and Contingencies Disclosure [Abstract] | ||
Outstanding purchase commitments | $ 16,000 | |
Outstanding purchase commitments, equipment to be delivered in 2017 | 8,400 | |
Outstanding purchase commitments, equipment to be delivered in 2018 | 7,600 | |
2,017 | 298 | |
2,018 | 454 | |
2,019 | 332 | |
2,020 | 99 | |
Total future lease payments | 1,183 | |
Long-term Purchase Commitment [Line Items] | ||
Property, plant and equipment, net | 271,725 | $ 273,188 |
Assets Held under Capital Leases | ||
Long-term Purchase Commitment [Line Items] | ||
Property, plant and equipment, net | 1,000 | 800 |
Accumulated depreciation | $ 400 | $ 300 |