Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 20, 2018 | Jun. 30, 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-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 38,098,248 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 113,958,200 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 2,533 | $ 7,071 |
Accounts receivable, net | 18,056 | 11,468 |
Inventories | 2,710 | 2,336 |
Assets held for sale | 4,637 | 3,915 |
Prepaid expenses and other current assets | 2,957 | 3,102 |
Total current assets | 30,893 | 27,892 |
Property, plant and equipment, net | 272,388 | 273,188 |
Other long-term assets, net | 1,364 | 1,027 |
Total assets | 304,645 | 302,107 |
Liabilities | ||
Current portion of long-term debt | 533 | 441 |
Accounts payable | 11,627 | 10,031 |
Accrued liabilities | 6,969 | 7,821 |
Total current liabilities | 19,129 | 18,293 |
Long-term debt | 49,278 | 26,078 |
Deferred income taxes, net | 683 | 396 |
Other long-term liabilities | 73 | 88 |
Total liabilities | 69,163 | 44,855 |
Commitments and contingencies (Note 11) | ||
Stockholders’ equity | ||
Common stock, $0.01 par value, 100,000,000 shares authorized; 38,246,919 and 37,831,723 shares issued, respectively; and 37,985,225 and 37,617,920 shares outstanding, respectively | 380 | 376 |
Additional paid-in capital | 326,616 | 323,918 |
Accumulated deficit | (89,645) | (65,347) |
Treasury stock, at cost, 261,694 and 213,803 shares, respectively | (1,869) | (1,695) |
Total stockholders’ equity | 235,482 | 257,252 |
Total liabilities and stockholders’ equity | $ 304,645 | $ 302,107 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 38,246,919 | 37,831,723 |
Common stock, shares outstanding (in shares) | 37,985,225 | 37,617,920 |
Treasury stock (in shares) | 261,694 | 213,803 |
Statements of Operations
Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Revenues | $ 90,007 | $ 70,062 | $ 88,418 |
Costs and expenses | |||
Operating costs | 67,733 | 43,277 | 52,087 |
Selling, general and administrative | 13,213 | 16,144 | 14,483 |
Depreciation and amortization | 25,844 | 23,808 | 21,151 |
Asset impairments, net of insurance recoveries | 2,568 | 3,822 | 2,708 |
Loss on disposition of assets, net | 1,677 | 1,942 | 2,940 |
Total cost and expenses | 111,035 | 88,993 | 93,369 |
Operating loss | (21,028) | (18,931) | (4,951) |
Interest expense | (2,983) | (3,045) | (3,254) |
Loss before income taxes | (24,011) | (21,976) | (8,205) |
Income tax expense (benefit) | 287 | 202 | (325) |
Net loss | $ (24,298) | $ (22,178) | $ (7,880) |
Loss per share: | |||
Basic and diluted (in dollars per share) | $ (0.64) | $ (0.67) | $ (0.33) |
Weighted average number of common shares outstanding: | |||
Basic and diluted (in shares) | 37,762 | 33,118 | 23,904 |
Statements of Changes in Stockh
Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Treasury Stock |
Beginning balance (in shares) at Dec. 31, 2014 | 24,455,709 | ||||
Beginning balance at Dec. 31, 2014 | $ 236,736 | $ 245 | $ 272,751 | $ (35,289) | $ (971) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Restricted stock forfeited (in shares) | (14,419) | ||||
Restricted stock forfeited | 0 | ||||
Restricted stock units vested (in shares) | 13,636 | ||||
Restricted stock units vested | 0 | ||||
Purchase of treasury stock (in shares) | (51,267) | ||||
Purchase of treasury stock | (315) | $ (1) | 1 | (315) | |
Stock-based compensation | 4,196 | 4,196 | |||
Net loss | (7,880) | (7,880) | |||
Ending balance (in shares) at Dec. 31, 2015 | 24,403,659 | ||||
Ending balance at Dec. 31, 2015 | 232,737 | $ 244 | 276,948 | (43,169) | (1,286) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Restricted stock forfeited (in shares) | (8,182) | ||||
Restricted stock forfeited | 0 | ||||
Restricted stock units vested (in shares) | 74,968 | ||||
Restricted stock units vested | 0 | ||||
Purchase of treasury stock (in shares) | (77,525) | ||||
Purchase of treasury stock | (409) | (409) | |||
Public offering, net of offering costs (in shares) | 13,225,000 | ||||
Public offering, net of offering costs | 42,920 | $ 132 | 42,788 | ||
Stock-based compensation | 4,182 | 4,182 | |||
Net loss | (22,178) | (22,178) | |||
Ending balance (in shares) at Dec. 31, 2016 | 37,617,920 | ||||
Ending balance at Dec. 31, 2016 | 257,252 | $ 376 | 323,918 | (65,347) | (1,695) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Restricted stock forfeited (in shares) | (3,195) | ||||
Restricted stock forfeited | 0 | ||||
Restricted stock units vested (in shares) | 418,391 | ||||
Restricted stock units vested | (863) | $ 4 | (867) | ||
Purchase of treasury stock (in shares) | (47,891) | ||||
Purchase of treasury stock | (174) | (174) | |||
Stock-based compensation | 3,565 | 3,565 | |||
Net loss | (24,298) | (24,298) | |||
Ending balance (in shares) at Dec. 31, 2017 | 37,985,225 | ||||
Ending balance at Dec. 31, 2017 | $ 235,482 | $ 380 | $ 326,616 | $ (89,645) | $ (1,869) |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | |||
Net loss | $ (24,298) | $ (22,178) | $ (7,880) |
Adjustments to reconcile net loss to net cash provided by operating activities | |||
Depreciation and amortization | 25,844 | 23,808 | 21,151 |
Asset impairments, net of insurance recoveries | 2,568 | 3,822 | 2,708 |
Stock-based compensation | 3,565 | 4,249 | 3,542 |
Stock-based compensation - executive retirement | 0 | (67) | 0 |
Loss on disposition of assets, net | 1,677 | 1,942 | 2,940 |
Deferred income taxes | 287 | 203 | 193 |
Amortization of deferred financing costs | 434 | 532 | 629 |
Write-off of deferred financing costs | 0 | 504 | 394 |
Bad debt expense | 0 | 0 | 132 |
Changes in operating assets and liabilities | |||
Accounts receivable | (6,588) | 6,772 | 755 |
Inventories | (301) | 55 | (263) |
Prepaid expenses and other assets | 133 | 212 | (853) |
Accounts payable and accrued liabilities | 1,612 | (2,881) | 4,339 |
Income taxes payable | 0 | 0 | (408) |
Net cash provided by operating activities | 4,933 | 16,973 | 27,379 |
Cash flows from investing activities | |||
Purchases of property, plant and equipment | (31,347) | (21,106) | (75,532) |
Proceeds from insurance claims | 0 | 188 | 2,899 |
Proceeds from the sale of assets | 1,253 | 860 | 414 |
Net cash used in investing activities | (30,094) | (20,058) | (72,219) |
Cash flows from financing activities | |||
Borrowings under Credit Facility | 44,451 | 49,048 | 140,610 |
Repayments under Credit Facility | (21,662) | (86,004) | (100,421) |
Public offering proceeds, net of offering costs | 0 | 42,920 | 0 |
Purchase of treasury stock | (174) | (409) | (315) |
RSUs withheld for taxes | (863) | 0 | 0 |
Financing costs paid | (530) | (217) | (447) |
Payments of capital lease obligations | (599) | (526) | 0 |
Net cash provided by financing activities | 20,623 | 4,812 | 39,427 |
Net (decrease) increase in cash and cash equivalents | (4,538) | 1,727 | (5,413) |
Cash and cash equivalents | |||
Beginning of year | 7,071 | 5,344 | 10,757 |
End of year | $ 2,533 | $ 7,071 | $ 5,344 |
Nature of Operations and Recent
Nature of Operations and Recent Developments | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Recent Developments | Nature of Operations and Recent Developments 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 system that is specifically designed to optimize pad drilling for our customers. Every 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 7500 psi mud systems, top drives, automated tubular handling systems and blowout preventer (“BOP”) handling systems. All 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 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 operating in the Permian Basin, Eagle Ford Shale and the Haynesville Shale. Our rigs have previously operated in the Mid-Continent and Eaglebine regions. 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 Both oil and natural gas 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 (West Texas Intermediate - Cushing, Oklahoma (“WTI”) spot price as reported by the United States Energy Information Administration (the “EIA”)). Similarly, natural gas prices (as measured at Henry Hub) declined from an average of $4.37 per MMBtu in 2014, to $2.62 per MMBtu in 2015, and to $2.52 per MMBtu in 2016. As a result, our industry experienced an exceptional downturn and market conditions have only begun to stabilize and slowly recover. In November 2016, Organization of Petroleum Exporting Countries (“OPEC”) members formally agreed to reduce their production quotas, starting January 1, 2017. These production cuts significantly reduced the overhang of global oil supplies. OPEC members met in December 2017 and agreed to extend the freeze into 2018, and are expected to meet again in June 2018 to review market conditions and the impact of their freeze on global supplies. In addition to OPEC members, certain non-OPEC producers such as Russia have agreed to production cuts, which has also supported crude oil and related energy commodity prices. As a result of these supply cuts and positive demand trends, crude oil prices recovered to the $45 to $55 per barrel range, with WTI oil prices reaching a three-year high of $66.27 on January 26, 2018. Similarly, natural gas prices at Henry Hub averaged $2.99 per MMBtu in 2017, and have averaged $3.41 per MMBtu in 2018, as of February 20, 2018. While this continued recovery in pricing is promising, there are no indications at this time that oil and natural gas prices and rig counts will recover to their previous highs experienced in 2014. As market conditions have improved from trough levels in 2016 and begun to stabilize higher, demand for our ShaleDriller rigs has improved. At December 31, 2017, all of our rigs were under contract. In addition to improving utilization, contract tenors are improving 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 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. 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. We recorded a non-cash asset impairment charge of $3.8 million in the fourth quarter of 2016, to write down these assets to estimated fair value less estimated cost to sell. 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 . In the fourth quarter of 2017, we impaired the entire carrying value, or $1.0 million , related to certain of the assets held for sale, for which management currently believes there is substantial doubt that the third party manufacturer will service and warranty the equipment. As of December 31, 2017, the carrying value of drilling equipment in assets held for sale is $1.2 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 balance sheet after recognizing a $0.5 million asset impairment charge representing the difference between the carrying value and the estimated fair value, less the estimated costs to sell the related property. In the third quarter of 2017, we recorded an additional asset impairment on the property, reducing assets held for sale, of $0.6 million , as a result of water related damage from the heavy rainfall that occurred during Hurricane Harvey in August 2017. As of December 31, 2017, the carrying value of the Galayda property in assets held for sale is $3.4 million . Amendment of Credit Facility In July 2017, we amended our existing amended and restated credit agreement ("the Credit Facility"). The Credit Facility amendment maintained the aggregate commitments under the facility at $85.0 million and extended the maturity date by 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. 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation These audited financial statements include all the accounts of ICD, and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). As we had no items of other comprehensive income in any period presented, no other comprehensive income is presented. Cash and Cash Equivalents We consider short-term, highly liquid investments that have an original maturity of three months or less to be cash equivalents. Accounts Receivable Accounts receivable is comprised primarily of amounts due from our customers for contract drilling services. Accounts receivable are reduced to reflect estimated realizable values by an allowance for doubtful accounts based on historical collection experience and specific review of current individual accounts. Receivables are written off when they are deemed to be uncollectible. The allowance for doubtful accounts totaled $8 thousand as of December 31, 2017 and 2016 . Inventories Inventory is stated at lower of cost or market and consists primarily of supplies held for use in our drilling operations. Cost is determined on an average cost basis. Property, Plant and Equipment, net Property, plant and equipment, including renewals and betterments, are stated at cost less accumulated depreciation. All property, plant and equipment are depreciated using the straight-line method based on the estimated useful lives of the assets. The cost of maintenance and repairs are expensed as incurred. Major overhauls and upgrades are capitalized and depreciated over their remaining useful life. Depreciation of property, plant and equipment is recorded based on the estimated useful lives of the assets as follows: Estimated Useful Life Buildings 20 - 39 years Drilling rigs and related equipment 3 - 20 years Machinery, equipment and other 3 - 7 years Vehicles 2 - 5 years Software 2 - 7 years We own substantially all of our rig assembly yard and corporate offices located in Houston, Texas. We lease a number of vehicles and land for equipment and inventory storage. Leases are evaluated at inception or at any subsequent material modification to determine if the lease should be classified as a capital or operating lease. We review our assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The recoverability of assets that are held and used is measured by comparison of the estimated future undiscounted cash flows associated with the asset to the carrying amount of the asset. If the carrying value of such assets is less than the estimated undiscounted cash flow, an impairment charge is recorded in the amount by which the carrying amount of the assets exceeds their estimated fair value. Construction in progress represents the costs incurred for drilling rigs that remain under construction at the end of the period. This includes third party costs relating to the purchase of rig components as well as labor, material and other identifiable direct and indirect costs associated with the construction of the rig. Capitalized Interest We capitalize interest costs related to rig construction projects. Interest costs are capitalized during the construction period based on the weighted average interest rate of the related debt. Capitalized interest amounted to $0.1 million , $0.1 million and $0.9 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. 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; 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 long-term debt is determined by Level 3 measurements based on quoted market prices and terms for similar instruments, where available, and 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 5.6% . 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 $50.6 million and $26.6 million as of December 31, 2017 and 2016 , respectively, compared to a carrying amount of $49.3 million and $26.1 million as of December 31, 2017 and 2016 , respectively. The fair value of our assets held for sale is determined using Level 3 measurements. Fair value measurements are applied with respect to our non-financial assets and liabilities measured on a nonrecurring basis, which would consist of measurements primarily of long-lived assets. There were no transfers between levels of the hierarchy for the years ended December 31, 2017 and 2016 . Revenue and Cost Recognition Our revenues are principally derived from contract drilling services. We record contract drilling revenue for daywork contracts daily as work progresses, assuming collectability is reasonably assured. Daywork drilling contracts provide that revenue is earned daily based on specified rates per day for various activities over the term of the contract, which can be for a specific period of time or a specified number of wells. We generally receive lump-sum payments for the mobilization of rigs and other drilling equipment at the commencement of a new drilling contract. Revenue and costs associated with the initial mobilization are deferred and recognized ratably over the term of the related drilling contract once the rig spuds. Costs incurred to relocate rigs and other equipment to an area in which a contract has not been secured are expensed as incurred. If a contract is terminated prior to the specified contract term, early termination payments received from the customer are only recognized as revenues when all contractual obligations, such as mitigation requirements, are satisfied. Reimbursements for the purchase of supplies, equipment, trucking and other services that are provided at the request of our customers are recorded as revenue when incurred. The related costs are recorded as operating expenses when incurred. Revenue is presented net of any sales tax charged to the customer that we are required to remit to local or state governmental taxing authorities. Stock-Based Compensation We record compensation expense over the applicable requisite service period for all stock-based compensation based on the grant date fair value of the award. The expense is included in selling, general and administrative expense in our statements of operations or capitalized in connection with rig construction activity. Income Taxes We use the asset and liability method of accounting for income taxes. Under this method, we record deferred income taxes based upon differences between the financial reporting basis and tax basis of assets and liabilities, and use enacted tax rates and laws that we expect will be in effect when we realize those assets or settle those liabilities. We review deferred tax assets for a valuation allowance based upon management’s estimates of whether it is more likely than not that a portion of the deferred tax asset will be fully realized in a future period. We recognize the financial statement benefit of a tax position only after determining that the relevant taxing authority would more-likely-than-not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. Our policy is to include interest and penalties related to the unrecognized tax benefits within the income tax expense (benefit) line item in our statements of operations. New tax legislation, commonly referred to as the Tax Cuts and Jobs Act, was enacted on December 22, 2017. ASC 740, Accounting for Income Taxes , requires companies to recognize the effect of tax law changes in the period of enactment even though the effective date for most provisions is for tax years beginning after December 31, 2017. Since our federal deferred tax asset was fully offset by a valuation allowance, the overall net adjustment to our tax provision in the three months ended December 31, 2017 due to the reduction in the U.S. corporate income tax rate to 21% did not materially affect our financial statements. Significant provisions that are not yet effective but may impact income taxes in future years include: the repeal of the corporate Alternative Minimum Tax, the limitation on the current deductibility of net interest expense in excess of 30% of adjusted taxable income for levered balance sheets, a limitation on utilization of net operating losses generated after tax year 2017 to 80% of taxable income, the unlimited carryforward of net operating losses generated after tax year 2017, temporary 100% expensing of certain business assets, additional limitations on certain general and administrative expenses, and changes in determining the excessive compensation limitation. Currently, we do not anticipate paying cash federal income taxes in the near term due to any of the legislative changes, primarily due to the availability of our net operating loss carryforwards. Future interpretations relating to the recently enacted U.S. federal income tax legislation which vary from our current interpretation and possible changes to state tax laws in response to the recently enacted federal legislation may have a significant effect on this projection. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the balance sheet date, and the reported amounts of revenues and expenses recognized during the reporting period. Actual results could differ from these estimates. Significant estimates made by management include depreciation of property, plant and equipment, impairment of property, plant and equipment, and the collectibility of accounts receivable. 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, followed by the issuance of certain additional related accounting standards updates (collectively codified in "ASC 606"), to provide guidance on the recognition of revenue from customers. Under ASC 606, 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. ASC 606 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. We have substantially completed our evaluation of the impact ASC 606 will have on our financial statements. ASC 606 will not have a material impact on the timing of our revenue recognition, however, certain revenues and costs historically presented on a gross basis in our financial statements may be presented on a net basis. We adopted ASC 606 on January 1, 2018, utilizing the modified retrospective approach, which requires us to apply the new revenue standard to (i) all new revenue contracts entered into after January 1, 2018 and (ii) all existing revenue contracts as of January 1, 2018 through a cumulative effect adjustment to equity. In accordance with this approach, our revenues for periods prior to January 1, 2018 will not be adjusted. Given that ASC 606 will not impact the timing of our revenue recognition, no cumulative effect adjustment was required as of January 1, 2018. As mentioned above, certain of our reimbursable revenues may be presented on a net basis beginning as of January 1, 2018, depending on whether we are deemed to be the principal or the agent in the arrangement, which we will evaluate on a case by case basis. Our reimbursable revenues have historically been less than 3% of our total revenues. 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 and have engaged a third party consultant to assist us on this evaluation process. 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. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following: December 31, (in thousands) 2017 2016 Rig components and supplies $ 2,710 $ 2,336 We determined that no reserve for obsolescence was needed at December 31, 2017 or 2016 . No inventory obsolescence expense was recognized during the years ended December 31, 2017 , 2016 and 2015 . |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Major classes of property, plant, and equipment, which include capital lease assets, consisted of the following (in millions): December 31, (in thousands) 2017 2016 Land $ — $ 1,344 Buildings — 4,206 Drilling rigs and related equipment 332,338 294,002 Machinery, equipment and other 1,246 1,571 Capital leases 1,786 1,129 Vehicles 555 405 Software 818 806 Construction in progress 20,706 31,974 Total $ 357,449 $ 335,437 Less: Accumulated depreciation (85,061 ) (62,249 ) Total Property, plant and equipment, net $ 272,388 $ 273,188 Repairs and maintenance expense included in operating costs in our statements of operations totaled $14.3 million , $7.7 million and $10.5 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Depreciation expense was $25.8 million , $23.8 million and $21.2 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. As of December 31, 2017 , property, plant and equipment in our balance sheets included $1.3 million of vehicles under capital lease, which is net of $0.5 million of accumulated amortization. As of December 31, 2016 , property, plant and equipment in our balance sheets included $0.8 million of vehicles under capital lease, net of $0.3 million of accumulated amortization. During 2017, our management committed to a plan to sell our corporate headquarters and rig assembly yard complex 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 balance sheet, after recognizing 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. In the third quarter of 2017, we recorded an additional asset impairment on the property, reducing assets held for sale, of $0.6 million , as a result of water related damage from the heavy rainfall that occurred during Hurricane Harvey in August 2017. During 2017 and 2016, we recorded an additional $0.8 million and $1.8 million , respectively, loss on disposal associated with the upgrade of the mud systems on our rigs to high pressure status. During 2015, we began to convert one of our non-walking rigs to pad optimal status, equipped with our 200 Series substructure, omni-directional walking system and 7500psi mud system. As part of this rig conversion, key components of the prior rig were decommissioned and replaced, including the rig's substructure and various mud system components which were no longer compatible with the converted rig. As a result, we recorded a preliminary estimate of the related disposal loss totaling $2.5 million . During 2015, we recorded an impairment charge of $3.6 million relating to the substructure, mast and various other rig components of our last remaining non-walking rig due to its limited marketability in its current configuration given market conditions. |
Supplemental Balance Sheet and
Supplemental Balance Sheet and Cash Flow Information | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Supplemental Balance Sheet and Cash Flow Information | Supplemental Balance Sheet and Cash Flow Information Accrued liabilities consisted of the following: December 31, (in thousands) 2017 2016 Accrued salaries and other compensation (1) $ 2,646 $ 3,784 Insurance 507 787 Deferred revenues 762 1,139 Property, sales and other tax 2,693 1,943 Other 361 168 $ 6,969 $ 7,821 (1) In June 2016, our President and Chief Operating Officer announced his retirement as an officer and director of ICD effective June 30, 2016. In connection with his retirement, we entered into a Retirement Agreement on June 9, 2016 (the “Retirement Agreement”), setting out certain terms and conditions governing the executive’s retirement. Under the terms of the Retirement Agreement, we agreed to make certain retirement benefits available to the executive, including a cash retirement payment of approximately $1.5 million which was paid in one lump sum on January 3, 2017 and accelerated vesting of certain outstanding equity awards. The retirement payment was recorded as accrued salaries in our balance sheet and as selling, general and administrative expense in our statements of operations as of and for the year ended December 31, 2016. Supplemental cash flow information: Year Ended December 31, (in thousands) 2017 2016 2015 Supplemental disclosure of cash flow information Cash paid during the year for interest $ 2,680 $ 2,198 $ 3,173 Cash (received) paid during the year for taxes — (133 ) 22 Supplemental disclosure of non-cash investing and financing activities Stock-based compensation capitalized as property, plant and equipment — — 654 Change in property, plant and equipment purchases in accounts payable (882 ) 1,670 (14,750 ) Additions to property, plant & equipment through capital leases 1,102 1,293 — |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term Debt Our Long-term Debt consisted of the following: December 31, (in thousands) 2017 2016 Credit Facility due November 5, 2020 $ 48,541 $ 25,752 Capital lease obligations 1,270 767 49,811 26,519 Less: current portion (533 ) (441 ) Long-term debt $ 49,278 $ 26,078 Credit Facility In November 2014, we entered into our Credit Facility with a syndicate of financial institutions led by CIT Finance, LLC, that provided for a committed $155.0 million Credit Facility and an additional uncommitted $25.0 million accordion feature that allowed for future increases in the facility. In 2015, we amended the Credit Facility to provide for a springing lock-box arrangement and, in light of market conditions and our reduced capital plans, reduce aggregate commitments to $125.0 million and modify certain maintenance covenants. In 2016, we 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. In 2017, we amended the Credit Facility to extend the maturity date by two years to November 5, 2020 and provide for an additional uncommitted $65.0 million accordion feature that allows for future increases in facility commitments. 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. 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 a certain percentage, the "advance rate", of the appraised forced liquidation value of our eligible, completed and owned drilling rigs. As of December 31, 2017, the advance rate was 73.75% . The advance rate declines 1.25% each quarter beginning January 1, 2018 through June 2019. Thereafter, through the maturity date, the advance rate remains at 65.0% . 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 December 31, 2017 , the weighted average interest rate on our borrowings was 6.04% . 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. As of December 31, 2017, we are in compliance with these covenants. 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 was incurred in 2017. 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 Fourth Amendment reduced the requirement for a mandatory lock-box trigger from $15.0 million of availability under the Credit Facility to $10.0 million of availability under the Credit Facility. We had $48.5 million in outstanding borrowings under the Credit Facility at December 31, 2017 . Remaining availability of our $85.0 million commitment under the Credit Facility was $36.5 million at December 31, 2017 . 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. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of the income tax benefit are as follows: Year Ended December 31, (in thousands) 2017 2016 2015 Current: Federal $ — $ — $ — State — (1 ) (518 ) $ — $ (1 ) $ (518 ) Deferred: Federal $ — $ — $ — State 287 203 193 $ 287 $ 203 $ 193 Income tax expense (benefit) $ 287 $ 202 $ (325 ) The following is a reconciliation of the income tax benefit that was recorded compared to taxes provided at the United States statutory rate: Year Ended December 31, (in thousands) 2017 2016 2015 Income tax benefit at the statutory federal rate (35%) $ (8,404 ) $ (7,691 ) $ (2,871 ) Effect of federal rate change to ending deferred tax assets and liabilities 7,994 — — Nondeductible expenses 34 23 148 Valuation allowance (1,377 ) 7,063 2,261 State taxes, net of federal benefit 9 204 (211 ) Stock-based compensation and other 2,031 603 348 Income tax expense (benefit) $ 287 $ 202 $ (325 ) Effective tax rate 1.2 % 0.9 % 4.0 % Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows: December 31, (in thousands) 2017 2016 Deferred income tax assets Bad debts $ 2 $ 3 Stock-based compensation 1,344 3,050 Accrued liabilities and other 29 49 Deferred revenue 180 413 Net operating losses 29,274 31,130 Total net deferred tax assets $ 30,829 $ 34,645 Deferred income tax liabilities Prepaids $ (210 ) $ (378 ) Property, plant and equipment (18,906 ) (20,890 ) Total net deferred tax liabilities $ (19,116 ) $ (21,268 ) Valuation allowance $ (12,396 ) $ (13,773 ) Net deferred tax liability $ (683 ) $ (396 ) As of December 31, 2017, the Company had a total of $131.5 million of net operating loss carryforwards, which begin to expire in 2031. On December 22, 2017, the United States enacted tax reform legislation commonly known as the Tax Cuts and Jobs Act (the “Act”), resulting in significant modifications to existing law. The Company has completed the accounting for the effects of the Act during 2017. Our financial statements for the year ended December 31, 2017, reflect the effects of the Act which includes a reduction in the corporate tax rate from 35% to 21%. Accordingly, our deferred tax assets and liabilities were revalued at the newly enacted rates expected to be effective in 2018 and forward. Since our federal deferred tax asset was fully offset by a valuation allowance, the overall net adjustment to our tax provision in the three months ended December 31, 2017 due to the reduction in the U.S. corporate income tax rate to 21% did not materially affect our financial statements. Section 382 of the Internal Revenue Code (“Section 382”) imposes limitations on a corporation’s ability to utilize its NOLs if it experiences an ownership change. In general terms, an ownership change may result from transactions increasing the ownership percentage of certain shareholders in the stock of the corporation by more than 50 percentage points over a three year period. In the event of an ownership change, utilization of the NOLs would be subject to an annual limitation under Section 382. The Company believes it incurred an ownership change in April 2016. The Company is subject to an annual limitation on the usage of its NOL, however, the Company also believes that the entire NOL that existed in April 2016 will be fully available to the Company over the life of the NOL carryforward period. Management will continue to monitor the potential impact of Section 382 with respect to its NOL carryforward. Accounting for uncertainty in income taxes prescribes a recognition threshold and measurement methodology for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. As of December 31, 2017, we had no unrecognized tax benefits. We file income tax returns in the United States and in various state jurisdictions. With few exceptions, we are subject to United States federal, state and local income tax examinations by tax authorities for tax periods 2012 and forward. Our federal and state tax returns for 2012 and subsequent years remain subject to examination by tax authorities. Although we cannot predict the outcome of future tax examinations, we do not anticipate that the ultimate resolution of these examinations will have a material impact on our financial position, results of operations, or cash flows. In assessing the realizability of the deferred tax assets, we consider whether it is more likely than not that some or all of the deferred tax assets will not be realized. The ultimate realization of the deferred tax assets is dependent upon the generation of future income in periods in which the deferred tax assets can be utilized. In all years presented, we determined that the deferred tax assets did not meet the more likely than not threshold of being utilized and thus recorded a valuation allowance. All of our deferred tax liability as of December 31, 2017 relates to state taxes. Estimated interest and penalties related to potential underpayment on any unrecognized tax benefits are classified as a component of tax expense in the statement of operations. We have not recorded any interest or penalties associated with unrecognized tax benefits. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 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 to 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 December 31, 2017 , approximately 1,740,917 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: Year Ended December 31, (in thousands) 2017 2016 2015 Compensation cost recognized: Stock options $ — $ 81 $ 430 Restricted stock and restricted stock units 3,565 4,101 3,766 Total stock-based compensation $ 3,565 $ 4,182 $ 4,196 There was no stock-based compensation capitalized in connection with rig construction activity during the years ended December 31, 2017 and 2016 , and approximately $0.7 million in stock-based compensation was capitalized in connection with rig construction activity during the year ended December 31, 2015 . Stock Options Certain options were granted on March 2, 2012 and began vesting on their date of grant, with 25% of such options vesting on the grant date, and 25% of such options vesting on each anniversary thereafter until fully vested on March 2, 2015. A subsequent grant of 15,700 options was made in August 2012, one third of which vest on each anniversary of the grant date over three years. In December 2012, we granted an additional 229,613 stock options that vest over five years in three equal tranches commencing on the third year anniversary date and each year thereafter. In February 2013, we granted an additional 119,320 stock options that vest over four years. No stock options were granted during the years ended December 31, 2017 , 2016 or 2015 . No options were exercised during the years ended December 31, 2017 , 2016 or 2015 . It is our policy that in the future any shares issued upon option exercise will be issued initially from any available treasury shares or otherwise as newly issued shares. 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. The following summary reflects the stock option activity and related information for the year ended December 31, 2017 : Options Weighted Average Exercise Price Outstanding at January 1, 2017 935,720 $ 12.74 Granted — — Exercised — — Forfeited/expired (252,770 ) 12.74 Outstanding at December 31, 2017 682,950 $ 12.74 Exercisable at December 31, 2017 682,950 $ 12.74 The number of options exercisable at December 31, 2017 was 682,950 with a weighted average remaining contractual life of 4.3 years and a weighted-average exercise price of $12.74 per share. As of December 31, 2017 , there was no unrecognized compensation cost related to outstanding stock options. The fair value of options that vested during the years ended December 31, 2017 , 2016 and 2015 was zero , $0.4 million and $1.1 million , respectively. 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 December 31, 2017 , there was no unrecognized compensation cost related to unvested restricted stock awards. A summary of the status of our restricted stock awards and of changes in restricted stock outstanding for the year ended December 31, 2017 is as follows: Shares Weighted Average Grant Date Fair Value Per Share Outstanding at January 1, 2017 147,368 $ 10.67 Granted — — Vested (144,173 ) 10.72 Forfeited/expired (3,195 ) 8.35 Outstanding at December 31, 2017 — $ — Restricted Stock Units We have granted restricted stock units ("RSUs") to key employees under the 2012 Plan. We have granted three -year time vested 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 total shareholder return ("TSR") as measured against the 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 December 31, 2017 , there was $2.9 million of total unrecognized compensation cost related to unvested RSUs. This cost is expected to be recognized over a weighted-average period of 0.9 years . No RSUs were issued during the year ended December 31, 2015. The assumptions used to value our TSR market-based RSUs granted during the year ended December 31, 2016 were a a risk-free interest rate of 0.93% , an expected volatility of 56.3% and an expected dividend yield of 0.0% . Based on the Monte Carlo simulation, these RSUs were valued at $4.15 . The assumptions used to value our TSR market-based RSUs granted during the year ended December 31, 2017 were a a risk-free interest rate of 1.30% , an expected volatility of 55.5% and an expected dividend yield of 0.0% . Based on the Monte Carlo simulation, these RSUs were valued at $5.62 . A summary of the status of our RSUs as of December 31, 2017 , and of changes in RSUs outstanding during the year ended December 31, 2017 , is as follows: RSUs Weighted Outstanding at January 1, 2017 1,030,658 $ 7.18 Granted 656,631 5.76 Vested and converted (350,895 ) 8.45 Forfeited/expired (343,074 ) 9.14 Outstanding at December 31, 2017 993,320 $ 5.11 |
Stockholders' Equity and Loss p
Stockholders' Equity and Loss per Share | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity and Loss per Share | Stockholders’ Equity and Loss per Share As of December 31, 2017 , we had a total of 37,985,225 shares of common stock, $0.01 par value, outstanding, including zero shares of restricted stock. We also had 261,694 shares held as treasury stock. Total authorized common stock is 100,000,000 shares. 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 $42.9 million , after deducting underwriting discounts and commissions and offering expenses. 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: For the Years Ended December 31, (in thousands, except for per share data) 2017 2016 2015 Net loss (numerator) $ (24,298 ) $ (22,178 ) $ (7,880 ) Loss per share: Basic and diluted $ (0.64 ) $ (0.67 ) $ (0.33 ) Shares (denominator): Weighted-average number of shares outstanding-basic 37,762 33,118 23,904 Net effect of dilutive stock options, warrants and restricted stock units — — — Weighted-average common shares outstanding-diluted 37,762 33,118 23,904 For all years presented, the computation of diluted loss per share excludes the effect of certain outstanding stock options, warrants and restricted stock units because their inclusion would be anti-dilutive. The number of options that were excluded from diluted loss per share were 682,950 , 935,720 , and 956,653 during the years ended December 31, 2017 , 2016 and 2015 , respectively. A warrant to purchase 2,198,000 shares of our common stock was anti-dilutive in the year ended December 31, 2015 and expired unexercised March 31, 2015. RSUs, which are not participating securities and are excluded from our diluted loss per share because they are anti-dilutive were 993,320 , 1,030,658 and 463,413 for the years ended December 31, 2017 , 2016 and 2015 , respectively. |
Segment and Geographical Inform
Segment and Geographical Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment and Geographical Information | Segment and Geographical Information We report one segment because all of our drilling operations are all located in the United States and have similar economic characteristics. We build rigs and engage in land contract drilling for oil and natural gas in the United States. 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. Allocation of capital resources is employed on a project-by-project basis across our entire asset base to maximize profitability without regard to individual areas. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Commitments As of December 31, 2017 , we had outstanding purchase commitments to a number of suppliers totaling $3.7 million related primarily to the construction of drilling rigs. We have paid deposits of $0.8 million related to these commitments. Lease Commitments We lease certain land, 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 December 31, 2017 , were as follows: (in thousands) 2018 $ 759 2019 627 2020 306 Thereafter — $ 1,692 Rent expense was $3.9 million , $2.3 million , and $3.6 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Employment Agreements We have entered into employment agreements with two key executives, with original terms of three years , that automatically extend a year prior to expiration, provided that neither party has provided a written notice of termination before that date. These agreements provide for aggregate minimum annual cash compensation of $0.8 million and aggregate cash severance payments totaling $2.9 million for termination by ICD without cause, or termination by the employee for good reason, both as defined in the agreements. 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. There are no current legal proceedings that we expect will have a material adverse impact on our financial statements. |
Concentration of Market and Cre
Concentration of Market and Credit Risk | 12 Months Ended |
Dec. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
Concentration of Market and Credit Risk | Concentration of Market and Credit Risk We derive all our revenues from drilling services contracts with companies in the oil and natural gas exploration and production industry, a historically cyclical industry with levels of activity that are significantly affected by the levels and volatility in oil and natural gas prices. We have a number of customers that account for 10% or more of our revenues. For 2017, these customers included GeoSouthern Energy Corporation ( 33% ), Devon Energy ( 17% ), RSP Permian, LLC ( 16% ) and Pioneer Natural Resources USA, Inc. ( 11% ). For 2016, these customers included Parsley Energy, LP ( 22% ), Silver Hill Energy Partners, LLC ( 17% ), Pioneer Natural Resources USA, Inc. ( 16% ) and Anadarko Petroleum Corporation ( 11% ). For 2015, these customers included Parsley Energy, LP ( 18% ), Pioneer Natural Resources USA, Inc. ( 18% ), Laredo Petroleum, Inc. ( 14% ), COG Operating, LLC, a subsidiary of Concho Resources, Inc. ( 13% ) and Elevation Resources, LLC ( 11% ). As of December 31, 2017, GeoSouthern Energy Corporation ( 25% ), Devon Energy ( 20% ), RSP Permian, LLC ( 19% ), BHP Billiton Petroleum ( 15% ) and Pioneer Natural Resources USA, Inc. ( 14% ) accounted for 10% or more of our accounts receivable. As of December 31, 2016, Parsley Energy, LP ( 20% ), Pioneer Natural Resources USA, Inc. ( 19% ), GEP Haynesville, LLC ( 17% ), Energen Corporation ( 16% ), Anadarko Petroleum Corporation ( 14% ) and Silver Hill Energy Partners, LLC ( 14% ) accounted for 10% or more of our accounts receivable. As of December 31, 2015, Devon Energy Corporation ( 27% ), Parsley Energy LP ( 18% ), Pioneer Natural Resources USA, Inc. ( 17% ) and Anadarko Petroleum Corporation ( 13% ) accounted for 10% or more of our accounts receivable. We compete with large national and multi-national companies that have longer operating histories, greater financial, technical and other resources and greater name recognition than ICD. Our results of operations, cash flows and financial condition may be affected by these factors. Additionally, these factors could impact our ability to obtain additional debt and equity capital required to implement our rig construction and growth strategy, and the cost of that capital. We have concentrated credit risk for cash by maintaining deposits in major banks, which may at times exceed amounts covered by insurance provided by the United States Federal Deposit Insurance Corporation (“FDIC”). We monitor the financial health of the banks and have not experienced any losses in such accounts and believe we are not exposed to any significant credit risk. As of December 31, 2017 , we had approximately $1.9 million in cash and cash equivalents in excess of FDIC limits. Our trade receivables are with a variety of E&P and other oilfield service companies. We perform ongoing credit evaluations of our customers, and we generally do not require collateral. We do occasionally require deposits from customers whose creditworthiness is in question prior to providing services to them. |
Unaudited Quarterly Financial D
Unaudited Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Financial Data | Unaudited Quarterly Financial Data A summary of our unaudited quarterly financial data is as follows: Year Ended December 31, 2017 Quarter Ended (in thousands, except for per share data) March 31 June 30 September 30 December 31 Revenue $ 20,236 $ 21,285 $ 23,445 $ 25,041 Operating loss (5,593 ) (5,584 ) (5,178 ) (4,673 ) Income tax expense 46 34 30 177 Net loss (6,269 ) (6,304 ) (5,980 ) (5,745 ) Loss per share: Basic and diluted $ (0.17 ) $ (0.17 ) $ (0.16 ) $ (0.15 ) Year Ended December 31, 2016 Quarter Ended (in thousands, except for per share data) March 31 June 30 September 30 December 31 Revenue $ 22,455 $ 15,155 $ 14,464 $ 17,988 Operating income (loss) 567 (3,101 ) (6,710 ) (9,687 ) Income tax expense 4 31 32 135 Net loss (414 ) (4,191 ) (7,198 ) (10,375 ) Loss per share: Basic and diluted $ (0.02 ) $ (0.12 ) $ (0.19 ) $ (0.28 ) |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (in thousands) Balance at Beginning of Period Charged to Costs and Expenses Deductions Balance at End of Period Year Ended December 31, 2017: Allowance for doubtful accounts $ 8 $ — $ — $ 8 Valuation allowance for deferred tax assets $ 13,773 $ (1,377 ) $ — $ 12,396 Year Ended December 31, 2016: Allowance for doubtful accounts $ 8 $ — $ — $ 8 Valuation allowance for deferred tax assets $ 6,710 $ 7,063 $ — $ 13,773 Year Ended December 31, 2015: Allowance for doubtful accounts $ 129 $ 132 $ (253 ) $ 8 Valuation allowance for deferred tax assets $ 4,449 $ 2,261 $ — $ 6,710 |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These audited financial statements include all the accounts of ICD, and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). As we had no items of other comprehensive income in any period presented, no other comprehensive income is presented. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider short-term, highly liquid investments that have an original maturity of three months or less to be cash equivalents. |
Accounts Receivables | Accounts Receivable Accounts receivable is comprised primarily of amounts due from our customers for contract drilling services. Accounts receivable are reduced to reflect estimated realizable values by an allowance for doubtful accounts based on historical collection experience and specific review of current individual accounts. Receivables are written off when they are deemed to be uncollectible. |
Inventory | Inventories Inventory is stated at lower of cost or market and consists primarily of supplies held for use in our drilling operations. Cost is determined on an average cost basis. |
Property, Plant and Equipment | Property, Plant and Equipment, net Property, plant and equipment, including renewals and betterments, are stated at cost less accumulated depreciation. All property, plant and equipment are depreciated using the straight-line method based on the estimated useful lives of the assets. The cost of maintenance and repairs are expensed as incurred. Major overhauls and upgrades are capitalized and depreciated over their remaining useful life. Depreciation of property, plant and equipment is recorded based on the estimated useful lives of the assets as follows: Estimated Useful Life Buildings 20 - 39 years Drilling rigs and related equipment 3 - 20 years Machinery, equipment and other 3 - 7 years Vehicles 2 - 5 years Software 2 - 7 years We own substantially all of our rig assembly yard and corporate offices located in Houston, Texas. We lease a number of vehicles and land for equipment and inventory storage. Leases are evaluated at inception or at any subsequent material modification to determine if the lease should be classified as a capital or operating lease. We review our assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The recoverability of assets that are held and used is measured by comparison of the estimated future undiscounted cash flows associated with the asset to the carrying amount of the asset. If the carrying value of such assets is less than the estimated undiscounted cash flow, an impairment charge is recorded in the amount by which the carrying amount of the assets exceeds their estimated fair value. Construction in progress represents the costs incurred for drilling rigs that remain under construction at the end of the period. This includes third party costs relating to the purchase of rig components as well as labor, material and other identifiable direct and indirect costs associated with the construction of the rig. |
Property, Plant and Equipment, Impairment | We review our assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The recoverability of assets that are held and used is measured by comparison of the estimated future undiscounted cash flows associated with the asset to the carrying amount of the asset. If the carrying value of such assets is less than the estimated undiscounted cash flow, an impairment charge is recorded in the amount by which the carrying amount of the assets exceeds their estimated fair value. |
Capitalized Interest | Capitalized Interest We capitalize interest costs related to rig construction projects. Interest costs are capitalized during the construction period based on the weighted average interest rate of the related debt. |
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; 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 long-term debt is determined by Level 3 measurements based on quoted market prices and terms for similar instruments, where available, and 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 5.6% . 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 $50.6 million and $26.6 million as of December 31, 2017 and 2016 , respectively, compared to a carrying amount of $49.3 million and $26.1 million as of December 31, 2017 and 2016 , respectively. The fair value of our assets held for sale is determined using Level 3 measurements. Fair value measurements are applied with respect to our non-financial assets and liabilities measured on a nonrecurring basis, which would consist of measurements primarily of long-lived assets. There were no transfers between levels of the hierarchy for the years ended December 31, 2017 and 2016 . |
Revenue and Cost Recognition | Revenue and Cost Recognition Our revenues are principally derived from contract drilling services. We record contract drilling revenue for daywork contracts daily as work progresses, assuming collectability is reasonably assured. Daywork drilling contracts provide that revenue is earned daily based on specified rates per day for various activities over the term of the contract, which can be for a specific period of time or a specified number of wells. We generally receive lump-sum payments for the mobilization of rigs and other drilling equipment at the commencement of a new drilling contract. Revenue and costs associated with the initial mobilization are deferred and recognized ratably over the term of the related drilling contract once the rig spuds. Costs incurred to relocate rigs and other equipment to an area in which a contract has not been secured are expensed as incurred. If a contract is terminated prior to the specified contract term, early termination payments received from the customer are only recognized as revenues when all contractual obligations, such as mitigation requirements, are satisfied. Reimbursements for the purchase of supplies, equipment, trucking and other services that are provided at the request of our customers are recorded as revenue when incurred. The related costs are recorded as operating expenses when incurred. Revenue is presented net of any sales tax charged to the customer that we are required to remit to local or state governmental taxing authorities. |
Stock-Based Compensation | Stock-Based Compensation We record compensation expense over the applicable requisite service period for all stock-based compensation based on the grant date fair value of the award. The expense is included in selling, general and administrative expense in our statements of operations or capitalized in connection with rig construction activity. |
Income Taxes | Income Taxes We use the asset and liability method of accounting for income taxes. Under this method, we record deferred income taxes based upon differences between the financial reporting basis and tax basis of assets and liabilities, and use enacted tax rates and laws that we expect will be in effect when we realize those assets or settle those liabilities. We review deferred tax assets for a valuation allowance based upon management’s estimates of whether it is more likely than not that a portion of the deferred tax asset will be fully realized in a future period. We recognize the financial statement benefit of a tax position only after determining that the relevant taxing authority would more-likely-than-not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. Our policy is to include interest and penalties related to the unrecognized tax benefits within the income tax expense (benefit) line item in our statements of operations. New tax legislation, commonly referred to as the Tax Cuts and Jobs Act, was enacted on December 22, 2017. ASC 740, Accounting for Income Taxes , requires companies to recognize the effect of tax law changes in the period of enactment even though the effective date for most provisions is for tax years beginning after December 31, 2017. Since our federal deferred tax asset was fully offset by a valuation allowance, the overall net adjustment to our tax provision in the three months ended December 31, 2017 due to the reduction in the U.S. corporate income tax rate to 21% did not materially affect our financial statements. Significant provisions that are not yet effective but may impact income taxes in future years include: the repeal of the corporate Alternative Minimum Tax, the limitation on the current deductibility of net interest expense in excess of 30% of adjusted taxable income for levered balance sheets, a limitation on utilization of net operating losses generated after tax year 2017 to 80% of taxable income, the unlimited carryforward of net operating losses generated after tax year 2017, temporary 100% expensing of certain business assets, additional limitations on certain general and administrative expenses, and changes in determining the excessive compensation limitation. Currently, we do not anticipate paying cash federal income taxes in the near term due to any of the legislative changes, primarily due to the availability of our net operating loss carryforwards. Future interpretations relating to the recently enacted U.S. federal income tax legislation which vary from our current interpretation and possible changes to state tax laws in response to the recently enacted federal legislation may have a significant effect on this projection. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the balance sheet date, and the reported amounts of revenues and expenses recognized during the reporting period. Actual results could differ from these estimates. Significant estimates made by management include depreciation of property, plant and equipment, impairment of property, plant and equipment, and the collectibility of accounts receivable. |
Recently Issued 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, followed by the issuance of certain additional related accounting standards updates (collectively codified in "ASC 606"), to provide guidance on the recognition of revenue from customers. Under ASC 606, 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. ASC 606 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. We have substantially completed our evaluation of the impact ASC 606 will have on our financial statements. ASC 606 will not have a material impact on the timing of our revenue recognition, however, certain revenues and costs historically presented on a gross basis in our financial statements may be presented on a net basis. We adopted ASC 606 on January 1, 2018, utilizing the modified retrospective approach, which requires us to apply the new revenue standard to (i) all new revenue contracts entered into after January 1, 2018 and (ii) all existing revenue contracts as of January 1, 2018 through a cumulative effect adjustment to equity. In accordance with this approach, our revenues for periods prior to January 1, 2018 will not be adjusted. Given that ASC 606 will not impact the timing of our revenue recognition, no cumulative effect adjustment was required as of January 1, 2018. As mentioned above, certain of our reimbursable revenues may be presented on a net basis beginning as of January 1, 2018, depending on whether we are deemed to be the principal or the agent in the arrangement, which we will evaluate on a case by case basis. Our reimbursable revenues have historically been less than 3% of our total revenues. 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 and have engaged a third party consultant to assist us on this evaluation process. 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. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Assets | Depreciation of property, plant and equipment is recorded based on the estimated useful lives of the assets as follows: Estimated Useful Life Buildings 20 - 39 years Drilling rigs and related equipment 3 - 20 years Machinery, equipment and other 3 - 7 years Vehicles 2 - 5 years Software 2 - 7 years Major classes of property, plant, and equipment, which include capital lease assets, consisted of the following (in millions): December 31, (in thousands) 2017 2016 Land $ — $ 1,344 Buildings — 4,206 Drilling rigs and related equipment 332,338 294,002 Machinery, equipment and other 1,246 1,571 Capital leases 1,786 1,129 Vehicles 555 405 Software 818 806 Construction in progress 20,706 31,974 Total $ 357,449 $ 335,437 Less: Accumulated depreciation (85,061 ) (62,249 ) Total Property, plant and equipment, net $ 272,388 $ 273,188 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following: December 31, (in thousands) 2017 2016 Rig components and supplies $ 2,710 $ 2,336 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Depreciation of property, plant and equipment is recorded based on the estimated useful lives of the assets as follows: Estimated Useful Life Buildings 20 - 39 years Drilling rigs and related equipment 3 - 20 years Machinery, equipment and other 3 - 7 years Vehicles 2 - 5 years Software 2 - 7 years Major classes of property, plant, and equipment, which include capital lease assets, consisted of the following (in millions): December 31, (in thousands) 2017 2016 Land $ — $ 1,344 Buildings — 4,206 Drilling rigs and related equipment 332,338 294,002 Machinery, equipment and other 1,246 1,571 Capital leases 1,786 1,129 Vehicles 555 405 Software 818 806 Construction in progress 20,706 31,974 Total $ 357,449 $ 335,437 Less: Accumulated depreciation (85,061 ) (62,249 ) Total Property, plant and equipment, net $ 272,388 $ 273,188 |
Supplemental Balance Sheet an25
Supplemental Balance Sheet and Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following: December 31, (in thousands) 2017 2016 Accrued salaries and other compensation (1) $ 2,646 $ 3,784 Insurance 507 787 Deferred revenues 762 1,139 Property, sales and other tax 2,693 1,943 Other 361 168 $ 6,969 $ 7,821 (1) In June 2016, our President and Chief Operating Officer announced his retirement as an officer and director of ICD effective June 30, 2016. In connection with his retirement, we entered into a Retirement Agreement on June 9, 2016 (the “Retirement Agreement”), setting out certain terms and conditions governing the executive’s retirement. Under the terms of the Retirement Agreement, we agreed to make certain retirement benefits available to the executive, including a cash retirement payment of approximately $1.5 million which was paid in one lump sum on January 3, 2017 and accelerated vesting of certain outstanding equity awards. The retirement payment was recorded as accrued salaries in our balance sheet and as selling, general and administrative expense in our statements of operations as of and for the year ended December 31, 2016. |
Supplemental Cash Flow Disclosures | Supplemental cash flow information: Year Ended December 31, (in thousands) 2017 2016 2015 Supplemental disclosure of cash flow information Cash paid during the year for interest $ 2,680 $ 2,198 $ 3,173 Cash (received) paid during the year for taxes — (133 ) 22 Supplemental disclosure of non-cash investing and financing activities Stock-based compensation capitalized as property, plant and equipment — — 654 Change in property, plant and equipment purchases in accounts payable (882 ) 1,670 (14,750 ) Additions to property, plant & equipment through capital leases 1,102 1,293 — |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Our Long-term Debt consisted of the following: December 31, (in thousands) 2017 2016 Credit Facility due November 5, 2020 $ 48,541 $ 25,752 Capital lease obligations 1,270 767 49,811 26,519 Less: current portion (533 ) (441 ) Long-term debt $ 49,278 $ 26,078 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Benefit | The components of the income tax benefit are as follows: Year Ended December 31, (in thousands) 2017 2016 2015 Current: Federal $ — $ — $ — State — (1 ) (518 ) $ — $ (1 ) $ (518 ) Deferred: Federal $ — $ — $ — State 287 203 193 $ 287 $ 203 $ 193 Income tax expense (benefit) $ 287 $ 202 $ (325 ) |
Schedule of Effective Income Tax Rate Reconciliation | The following is a reconciliation of the income tax benefit that was recorded compared to taxes provided at the United States statutory rate: Year Ended December 31, (in thousands) 2017 2016 2015 Income tax benefit at the statutory federal rate (35%) $ (8,404 ) $ (7,691 ) $ (2,871 ) Effect of federal rate change to ending deferred tax assets and liabilities 7,994 — — Nondeductible expenses 34 23 148 Valuation allowance (1,377 ) 7,063 2,261 State taxes, net of federal benefit 9 204 (211 ) Stock-based compensation and other 2,031 603 348 Income tax expense (benefit) $ 287 $ 202 $ (325 ) Effective tax rate 1.2 % 0.9 % 4.0 % |
Schedule of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities are as follows: December 31, (in thousands) 2017 2016 Deferred income tax assets Bad debts $ 2 $ 3 Stock-based compensation 1,344 3,050 Accrued liabilities and other 29 49 Deferred revenue 180 413 Net operating losses 29,274 31,130 Total net deferred tax assets $ 30,829 $ 34,645 Deferred income tax liabilities Prepaids $ (210 ) $ (378 ) Property, plant and equipment (18,906 ) (20,890 ) Total net deferred tax liabilities $ (19,116 ) $ (21,268 ) Valuation allowance $ (12,396 ) $ (13,773 ) Net deferred tax liability $ (683 ) $ (396 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 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: Year Ended December 31, (in thousands) 2017 2016 2015 Compensation cost recognized: Stock options $ — $ 81 $ 430 Restricted stock and restricted stock units 3,565 4,101 3,766 Total stock-based compensation $ 3,565 $ 4,182 $ 4,196 |
Schedule of Stock Options Activity | The following summary reflects the stock option activity and related information for the year ended December 31, 2017 : Options Weighted Average Exercise Price Outstanding at January 1, 2017 935,720 $ 12.74 Granted — — Exercised — — Forfeited/expired (252,770 ) 12.74 Outstanding at December 31, 2017 682,950 $ 12.74 Exercisable at December 31, 2017 682,950 $ 12.74 |
Schedule of Restricted Stock Activity | A summary of the status of our restricted stock awards and of changes in restricted stock outstanding for the year ended December 31, 2017 is as follows: Shares Weighted Average Grant Date Fair Value Per Share Outstanding at January 1, 2017 147,368 $ 10.67 Granted — — Vested (144,173 ) 10.72 Forfeited/expired (3,195 ) 8.35 Outstanding at December 31, 2017 — $ — |
Schedule of Restricted Stock Unit Activity | A summary of the status of our RSUs as of December 31, 2017 , and of changes in RSUs outstanding during the year ended December 31, 2017 , is as follows: RSUs Weighted Outstanding at January 1, 2017 1,030,658 $ 7.18 Granted 656,631 5.76 Vested and converted (350,895 ) 8.45 Forfeited/expired (343,074 ) 9.14 Outstanding at December 31, 2017 993,320 $ 5.11 |
Stockholders' Equity and Loss29
Stockholders' Equity and Loss per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Earnings Per Share | A reconciliation of the numerators and denominators of the basic and diluted losses per share computations is as follows: For the Years Ended December 31, (in thousands, except for per share data) 2017 2016 2015 Net loss (numerator) $ (24,298 ) $ (22,178 ) $ (7,880 ) Loss per share: Basic and diluted $ (0.64 ) $ (0.67 ) $ (0.33 ) Shares (denominator): Weighted-average number of shares outstanding-basic 37,762 33,118 23,904 Net effect of dilutive stock options, warrants and restricted stock units — — — Weighted-average common shares outstanding-diluted 37,762 33,118 23,904 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum Rental Commitments Under Non-Cancelable Operating Leases | Future minimum lease payments under operating and capital lease commitments, with lease terms in excess of one year subsequent to December 31, 2017 , were as follows: (in thousands) 2018 $ 759 2019 627 2020 306 Thereafter — $ 1,692 |
Unaudited Quarterly Financial31
Unaudited Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data | A summary of our unaudited quarterly financial data is as follows: Year Ended December 31, 2017 Quarter Ended (in thousands, except for per share data) March 31 June 30 September 30 December 31 Revenue $ 20,236 $ 21,285 $ 23,445 $ 25,041 Operating loss (5,593 ) (5,584 ) (5,178 ) (4,673 ) Income tax expense 46 34 30 177 Net loss (6,269 ) (6,304 ) (5,980 ) (5,745 ) Loss per share: Basic and diluted $ (0.17 ) $ (0.17 ) $ (0.16 ) $ (0.15 ) Year Ended December 31, 2016 Quarter Ended (in thousands, except for per share data) March 31 June 30 September 30 December 31 Revenue $ 22,455 $ 15,155 $ 14,464 $ 17,988 Operating income (loss) 567 (3,101 ) (6,710 ) (9,687 ) Income tax expense 4 31 32 135 Net loss (414 ) (4,191 ) (7,198 ) (10,375 ) Loss per share: Basic and diluted $ (0.02 ) $ (0.12 ) $ (0.19 ) $ (0.28 ) |
Nature of Operations and Rece32
Nature of Operations and Recent Developments (Oil and Natural gas Prices and Drilling Activity) (Details) | Jan. 26, 2018$ / bbl | Feb. 11, 2016$ / bbl | Dec. 31, 2015$ / bbl | Feb. 28, 2018$ / MMBTU | Sep. 30, 2014$ / bbl | Dec. 31, 2017drilling_rig$ / bbl$ / MMBTU | Dec. 31, 2016$ / MMBTU | Dec. 31, 2015$ / MMBTU | Dec. 31, 2014$ / MMBTU |
Property, Plant and Equipment [Line Items] | |||||||||
Price per barrel of oil (usd per barrel) | 26.19 | 37.13 | |||||||
Natural gas price (usd per MMBtu) | $ / MMBTU | 2.99 | 2.52 | 2.62 | 4.37 | |||||
Operating Rig | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Number of rigs | drilling_rig | 14 | ||||||||
Maximum | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Price per barrel of oil (usd per barrel) | 106.06 | 55 | |||||||
Minimum | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Price per barrel of oil (usd per barrel) | 45 | ||||||||
Subsequent Event | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Price per barrel of oil (usd per barrel) | 66.27 | ||||||||
Natural gas price (usd per MMBtu) | $ / MMBTU | 3.41 |
Nature of Operations and Rece33
Nature of Operations and Recent Developments (Assets Held For Sale) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Impairment of assets to be disposed of, non-cash charge | $ 3,800 | ||||||
Loss on disposal of assets | $ 800 | ||||||
Loss on write-down of assets held for sale | $ 1,677 | $ 1,942 | $ 2,940 | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Rig Fleet And Other Capital Equipment | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Impairment of assets to be disposed of, non-cash charge | $ 1,000 | ||||||
Disposal group, property, plant, and equipment | 1,200 | 1,600 | 1,200 | ||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Corporate Headquarters And Rig Assembly Yard | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Disposal group, property, plant, and equipment | $ 3,400 | 4,000 | $ 3,400 | ||||
Loss on write-down of assets held for sale | $ 600 | $ 500 |
Nature of Operations and Rece34
Nature of Operations and Recent Developments (Amendment of Revolving Credit Facility) (Details) - CIT Finance, LLC Syndicate - Revolving Credit Facility - Line of Credit - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Nov. 30, 2014 | |
Debt Instrument [Line Items] | |||||
Revolving credit facility, maximum borrowing capacity | $ 85,000,000 | $ 85,000,000 | $ 85,000,000 | $ 125,000,000 | $ 155,000,000 |
Debt instrument extension term | 2 years | 2 years | |||
Accordion Feature | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility, maximum borrowing capacity | $ 65,000,000 | $ 65,000,000 | $ 25,000,000 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies (Accounts Receivable) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||
Allowance for doubtful accounts | $ 8 | $ 8 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies (Property, Plant and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Buildings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 20 years |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 39 years |
Drilling rigs and related equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 3 years |
Drilling rigs and related equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 20 years |
Machinery, equipment and other | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 3 years |
Machinery, equipment and other | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 7 years |
Vehicles | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 2 years |
Vehicles | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 5 years |
Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 2 years |
Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 7 years |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Capitalized Interest) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Capitalized interest | $ 0.1 | $ 0.1 | $ 0.9 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies (Financial Instruments and Fair Value) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value inputs, discount rate (as a percent) | 5.60% | |
Estimate of Fair Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 50.6 | $ 26.6 |
Reported Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 49.3 | $ 26.1 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies (Recent Accounting Pronouncements) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Reimbursement revenue as a percent of total revenue | 3.00% |
Inventories (Details)
Inventories (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |||
Rig components and supplies | $ 2,336,000 | $ 2,710,000 | |
Reserve for obsolescence | 0 | $ 0 | |
Inventory obsolescence expense | $ 0 | $ 0 |
Property, Plant and Equipment41
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | $ 357,449 | $ 335,437 | |||
Less: Accumulated depreciation | (85,061) | (62,249) | |||
Total Property, plant and equipment, net | 272,388 | 273,188 | |||
Repairs and maintenance expense | 14,300 | 7,700 | $ 10,500 | ||
Depreciation | 25,800 | 23,800 | 21,200 | ||
Equipment under capital lease, net | 1,300 | 800 | |||
Accumulated amortization of equipment under capital lease | 500 | 300 | |||
Loss on disposition of assets, net | 1,677 | 1,942 | 2,940 | ||
Disposal Group, Not Discontinued Operation, Loss, on Write-down, Preliminary Estimate | 2,500 | ||||
Asset Impairment Charges | $ 3,600 | ||||
Land | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 0 | 1,344 | |||
Buildings | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 0 | 4,206 | |||
Drilling rigs and related equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 332,338 | 294,002 | |||
Machinery, equipment and other | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 1,246 | 1,571 | |||
Machinery and Equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Loss on disposition of assets, net | 800 | 1,800 | |||
Capital leases | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 1,786 | 1,129 | |||
Vehicles | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 555 | 405 | |||
Software | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 818 | 806 | |||
Construction in progress | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 20,706 | $ 31,974 | |||
Corporate Headquarters And Rig Assembly Yard | Disposal Group, Held-for-sale, Not Discontinued Operations | |||||
Property, Plant and Equipment [Line Items] | |||||
Disposal group, property, plant, and equipment | $ 4,000 | $ 3,400 | |||
Loss on disposition of assets, net | $ 600 | $ 500 |
Supplemental Balance Sheet an42
Supplemental Balance Sheet and Cash Flow Information (Accrued Liabilities) (Details) - USD ($) $ in Thousands | Jan. 03, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | |||
Accrued salaries and other compensation | $ 2,646 | $ 3,784 | |
Insurance | 507 | 787 | |
Deferred revenues | 762 | 1,139 | |
Property, sales and other tax | 2,693 | 1,943 | |
Other | 361 | 168 | |
Accrued liabilities | $ 6,969 | $ 7,821 | |
Payment of certain retirement benefits | $ 1,500 |
Supplemental Balance Sheet an43
Supplemental Balance Sheet and Cash Flow Information (Supplemental Cash Flow) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplemental disclosure of cash flow information | |||
Cash paid during the year for interest | $ 2,680,000 | $ 2,198,000 | $ 3,173,000 |
Cash (received) paid during the year for taxes | 0 | (133,000) | 22,000 |
Supplemental disclosure of non-cash investing and financing activities | |||
Stock-based compensation capitalized as property, plant and equipment | 0 | 0 | 654,000 |
Change in property, plant and equipment purchases in accounts payable | (882,000) | 1,670,000 | (14,750,000) |
Additions to property, plant & equipment through capital leases | $ 1,102,000 | $ 1,293,000 | $ 0 |
Long-Term Debt (Summary of Long
Long-Term Debt (Summary of Long-term Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Long-term debt and capital lease obligations, including current maturities | $ 49,811 | $ 26,519 |
Less: current portion | (533) | (441) |
Long-term debt | 49,278 | 26,078 |
Capital Lease Obligations | ||
Debt Instrument [Line Items] | ||
Long-term debt and capital lease obligations, including current maturities | 1,270 | 767 |
Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt and capital lease obligations, including current maturities | $ 48,541 | $ 25,752 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Jul. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 01, 2018 | Apr. 14, 2016 | Apr. 13, 2016 | Nov. 30, 2014 | |
Debt Instrument [Line Items] | |||||||||
Write-off of deferred financing costs | $ 0 | $ 504,000 | $ 394,000 | ||||||
Long-term debt | $ 49,278,000 | 26,078,000 | |||||||
Capital lease obligations | $ 800,000 | ||||||||
Vehicle lease 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% | ||||||||
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) | 73.75% | ||||||||
Debt Instrument, Borrowing Limitations, Decrease Borrowing Limited | 65.00% | ||||||||
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) | 6.04% | ||||||||
Line of credit facility, higher borrowing capacity option (up to) | $ 20,000,000 | ||||||||
Line of credit facility, springing lock box arrangement, threshold | $ 10,000,000 | $ 15,000,000 | |||||||
Long-term debt | 48,500,000 | ||||||||
Remaining availability | $ 36,500,000 | ||||||||
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 | $ 85,000,000 | $ 85,000,000 | 85,000,000 | $ 125,000,000 | $ 155,000,000 | ||||
Write-off of deferred financing costs | $ 500,000 | ||||||||
Debt instrument extension term | 2 years | 2 years | |||||||
Previously capitalized construction costs | $ 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 | $ 65,000,000 | $ 65,000,000 | $ 25,000,000 | ||||||
Subsequent Event | Revolving Credit Facility | Line of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Decrease borrowing limit quarterly (as a percent) | 1.25% |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||||||||||
Federal | $ 0 | $ 0 | $ 0 | ||||||||
State | 0 | (1) | (518) | ||||||||
Current income tax expense (benefit) | 0 | (1) | (518) | ||||||||
Deferred: | |||||||||||
Federal | 0 | 0 | 0 | ||||||||
State | 287 | 203 | 193 | ||||||||
Deferred income tax expense (benefit) | 287 | 203 | 193 | ||||||||
Income tax expense (benefit) | $ 177 | $ 30 | $ 34 | $ 46 | $ 135 | $ 32 | $ 31 | $ 4 | $ 287 | $ 202 | $ (325) |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Income Tax Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income tax benefit at the statutory federal rate (35%) | $ (8,404) | $ (7,691) | $ (2,871) | ||||||||
Effect of federal rate change to ending deferred tax assets and liabilities | 7,994 | 0 | 0 | ||||||||
Nondeductible expenses | 34 | 23 | 148 | ||||||||
Valuation allowance | (1,377) | 7,063 | 2,261 | ||||||||
State taxes, net of federal benefit | 9 | 204 | (211) | ||||||||
Stock-based compensation and other | 2,031 | 603 | 348 | ||||||||
Income tax expense (benefit) | $ 177 | $ 30 | $ 34 | $ 46 | $ 135 | $ 32 | $ 31 | $ 4 | $ 287 | $ 202 | $ (325) |
Effective tax rate (as a percent) | 1.20% | 0.90% | 4.00% | ||||||||
Statutory tax rate (as a percent) | 35.00% | 35.00% | 35.00% |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred income tax assets | ||
Bad debts | $ 2 | $ 3 |
Stock-based compensation | 1,344 | 3,050 |
Accrued liabilities and other | 29 | 49 |
Deferred revenue | 180 | 413 |
Net operating losses | 29,274 | 31,130 |
Total net deferred tax assets | 30,829 | 34,645 |
Deferred income tax liabilities | ||
Prepaids | (210) | (378) |
Property, plant and equipment | (18,906) | (20,890) |
Total net deferred tax liabilities | (19,116) | (21,268) |
Valuation allowance | (12,396) | (13,773) |
Net deferred tax liability | $ (683) | $ (396) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | Dec. 31, 2017USD ($) |
Investments, Owned, Federal Income Tax Note [Line Items] | |
Unrecognized tax benefits | $ 0 |
Federal | |
Investments, Owned, Federal Income Tax Note [Line Items] | |
Net operating loss carryforwards | $ 131,500,000 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) | Mar. 02, 2012 | Feb. 28, 2013shares | Dec. 31, 2012trancheshares | Aug. 31, 2012shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation capitalized | $ | $ 0 | $ 0 | $ 654,000 | ||||
Award vesting (as a percent) | 25.00% | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Annual Percentage | 25.00% | ||||||
Options granted (in shares) | 0 | 0 | 0 | ||||
Options exercised (in shares) | 0 | 0 | 0 | ||||
Options exercisable (in shares) | 682,950 | ||||||
Weighted average remaining contractual life (in years) | 4 years 3 months 12 days | ||||||
Weighted-average exercise price (in dollars per share) | $ / shares | $ 12.74 | ||||||
Stock options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation costs | $ | $ 0 | ||||||
Options vested in period, fair value | $ | 0 | $ 400,000 | $ 1,100,000 | ||||
Stock options | Granted in February 2013 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted (in shares) | 119,320 | ||||||
Vesting period (in years) | 4 years | ||||||
Restricted stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation costs | $ | $ 0 | ||||||
Granted (in shares) | 0 | 0 | |||||
Restricted stock units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation costs | $ | $ 2,900,000 | ||||||
Weighted average recognition period (in years) | 11 months | ||||||
Granted (in shares) | 656,631 | ||||||
TSR market-based RSUs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Risk-free interest rate (as a percent) | 1.30% | 0.93% | |||||
Expected volatility (as a percent) | 55.50% | 56.30% | |||||
Dividend yield (as a percent) | 0.00% | 0.00% | |||||
Fair value assumptions, exercise price (in dollars per share) | $ / shares | $ 5.62 | $ 4.15 | |||||
2012 Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of additional shares authorized (up to) (in shares) | 4,754,000 | ||||||
Number of shares available for grant (in shares) | 1,740,917 | ||||||
2012 Plan | Stock options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock option expiration period (in years) | 10 years | ||||||
2012 Plan | Restricted stock units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period (in years) | 3 years | ||||||
Common stock per unit (in shares per unit) | 2 | ||||||
2012 Plan | Performance-based RSUs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period (in years) | 3 years | ||||||
Minimum | Restricted stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period (in years) | 3 years | ||||||
Maximum | Restricted stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period (in years) | 4 years | ||||||
March 2, 2012 | Stock options | Granted on March 2, 2012 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting (as a percent) | 25.00% | ||||||
March 2, 2012 | Stock options | Granted in August 2012 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting (as a percent) | 25.00% | ||||||
March 2, 2012 | Stock options | Granted in December 2012 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting (as a percent) | 25.00% | ||||||
March 2, 2012 | Stock options | Granted in February 2013 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting (as a percent) | 25.00% | ||||||
August 2012 | Stock options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted (in shares) | 15,700 | ||||||
Vesting period (in years) | 3 years | ||||||
August 2012 | Stock options | Granted on March 2, 2012 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting (as a percent) | 33.33333% | ||||||
August 2012 | Stock options | Granted in August 2012 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting (as a percent) | 33.33333% | ||||||
August 2012 | Stock options | Granted in December 2012 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting (as a percent) | 33.33333% | ||||||
December 2012 | Stock options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted (in shares) | 229,613 | ||||||
Vesting period (in years) | 5 years | ||||||
Number of tranches | tranche | 3 | ||||||
December 2012 | Stock options | Granted on March 2, 2012 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting (as a percent) | 33.33333% | ||||||
December 2012 | Stock options | Granted in August 2012 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting (as a percent) | 33.33333% | ||||||
December 2012 | Stock options | Granted in December 2012 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting (as a percent) | 33.33333% |
Stock-Based Compensation (Compe
Stock-Based Compensation (Compensation Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | $ 3,565 | $ 4,182 | $ 4,196 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | 0 | 81 | 430 |
Restricted stock and restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | $ 3,565 | $ 4,101 | $ 3,766 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Option Activity) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Options (in shares) | |||
Beginning balance (in shares) | 935,720 | ||
Granted (in shares) | 0 | 0 | 0 |
Exercised (in shares) | 0 | 0 | 0 |
Forfeited/expired (in shares) | (252,770) | ||
Ending balance (in shares) | 682,950 | 935,720 | |
Exercisable (in shares) | 682,950 | ||
Weighted Average Exercise Price | |||
Beginning balance (in dollars per share) | $ 12.74 | ||
Granted (in dollars per share) | 0 | ||
Exercised (in dollars per share) | 0 | ||
Forfeited/expired (in dollars per share) | 12.74 | ||
Ending balance (in dollars per share) | 12.74 | $ 12.74 | |
Exercisable (in dollars per share) | $ 12.74 |
Stock-Based Compensation (Restr
Stock-Based Compensation (Restricted Stock Activity) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2015 | |
Restricted stock units (RSUs) | ||
Shares | ||
Beginning balance (in shares) | 1,030,658 | |
Granted (in shares) | 656,631 | |
Vested (in shares) | (350,895) | |
Forfeited/expired (in shares) | (343,074) | |
Ending balance (in shares) | 993,320 | |
Weighted Average Grant Date Fair Value Per Share | ||
Beginning balance (in dollars per share) | $ 7.18 | |
Granted (in dollars per share) | 5.76 | |
Vested (in dollars per share) | 8.45 | |
Forfeited/expired (in dollars per share) | 9.14 | |
Ending balance (in dollars per share) | $ 5.11 | |
Restricted stock | ||
Shares | ||
Beginning balance (in shares) | 147,368 | |
Granted (in shares) | 0 | 0 |
Vested (in shares) | (144,173) | |
Forfeited/expired (in shares) | (3,195) | |
Ending balance (in shares) | 0 | |
Weighted Average Grant Date Fair Value Per Share | ||
Beginning balance (in dollars per share) | $ 10.67 | |
Granted (in dollars per share) | 0 | |
Vested (in dollars per share) | 10.72 | |
Forfeited/expired (in dollars per share) | 8.35 | |
Ending balance (in dollars per share) | $ 0 |
Stock-Based Compensation (Res54
Stock-Based Compensation (Restricted Stock Unit Activity) (Details) - Restricted stock units (RSUs) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
RSUs | |
Beginning balance (in shares) | shares | 1,030,658 |
Granted (in shares) | shares | 656,631 |
Vested (in shares) | shares | (350,895) |
Forfeited/expired (in shares) | shares | (343,074) |
Ending balance (in shares) | shares | 993,320 |
Weighted Average Grant Date Fair Value Per Share | |
Beginning balance (in dollars per share) | $ / shares | $ 7.18 |
Granted (in dollars per share) | $ / shares | 5.76 |
Vested (in dollars per share) | $ / shares | 8.45 |
Forfeited/expired (in dollars per share) | $ / shares | 9.14 |
Ending balance (in dollars per share) | $ / shares | $ 5.11 |
Stockholders' Equity and Loss55
Stockholders' Equity and Loss per Share (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 26, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||
Treasury stock (in shares) | 261,694 | 213,803 | |||
Shares authorized (in shares) | 100,000,000 | 100,000,000 | |||
Number of shares issued in a underwritten public offering (in shares) | 13,225,000 | ||||
Sale of stock, price (USD per share) | $ 3.50 | ||||
Proceeds received on sale of stock transaction | $ 42.9 | ||||
Common Stock | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Common stock outstanding (in shares) | 37,985,225 | 37,617,920 | 24,403,659 | 24,455,709 | |
Restricted stock | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Restricted stock outstanding (in shares) | 0 | 147,368 | |||
Equity Option | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 682,950 | 935,720 | 956,653 | ||
Warrant | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2,198,000 | ||||
Restricted Stock Units (RSUs) | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 993,320 | 1,030,658 | 463,413 |
Stockholders' Equity and Loss56
Stockholders' Equity and Loss per Share (Loss Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |||||||||||
Net loss (numerator) | $ (5,745) | $ (5,980) | $ (6,304) | $ (6,269) | $ (10,375) | $ (7,198) | $ (4,191) | $ (414) | $ (24,298) | $ (22,178) | $ (7,880) |
Loss per share: | |||||||||||
Basic and diluted (in dollars per share) | $ (0.15) | $ (0.16) | $ (0.17) | $ (0.17) | $ (0.28) | $ (0.19) | $ (0.12) | $ (0.02) | $ (0.64) | $ (0.67) | $ (0.33) |
Shares (denominator): | |||||||||||
Weighted-average number of shares outstanding-basic (in shares) | 37,762 | 33,118 | 23,904 | ||||||||
Net effect of dilutive stock options, warrants and restricted stock units (in shares) | 0 | 0 | 0 | ||||||||
Weighted-average common shares outstanding-diluted (in shares) | 37,762 | 33,118 | 23,904 |
Segment and Geographical Info57
Segment and Geographical Information (Details) | 12 Months Ended |
Dec. 31, 2017segment | |
Segment Reporting [Abstract] | |
Number of segments | 1 |
Commitments and Contingencies58
Commitments and Contingencies (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)executive | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |||
Purchase commitments | $ 3,700 | ||
Payments for deposits | 800 | ||
Future Minimum Payments: | |||
2,018 | 759 | ||
2,019 | 627 | ||
2,020 | 306 | ||
Thereafter | 0 | ||
Total future lease payments | 1,692 | ||
Rent expense | $ 3,900 | $ 2,300 | $ 3,600 |
Employment agreement, number of executives | executive | 2 | ||
Employment agreement term | 3 years | ||
Employment agreement, minimum annual cash compensation | $ 800 | ||
Employment agreement severance amount | $ 2,900 |
Concentration of Market and C59
Concentration of Market and Credit Risk (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Concentration Risk [Line Items] | |||
Cash, uninsured amount | $ 1.9 | ||
Revenues | Customer Concentration Risk | GeoSouthern Energy Corporation | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 33.00% | ||
Revenues | Customer Concentration Risk | Devon Energy Corporation | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 17.00% | ||
Revenues | Customer Concentration Risk | RSP Permian, LLC | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 16.00% | ||
Revenues | Customer Concentration Risk | Pioneer Natural Resources USA, Inc. | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 11.00% | 16.00% | 18.00% |
Revenues | Customer Concentration Risk | Parsley Energy, LP | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 22.00% | 18.00% | |
Revenues | Customer Concentration Risk | Silver Hill Energy Partners, LLC | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 17.00% | ||
Revenues | Customer Concentration Risk | Anadarko Petroleum Corporation | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 11.00% | ||
Revenues | Customer Concentration Risk | Laredo Petroleum, Inc. | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 14.00% | ||
Revenues | Customer Concentration Risk | COG Operating, LLC | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 13.00% | ||
Revenues | Customer Concentration Risk | Elevation Resources LLC | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 11.00% | ||
Accounts Receivable | Customer Concentration Risk | GeoSouthern Energy Corporation | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 25.00% | ||
Accounts Receivable | Customer Concentration Risk | Devon Energy Corporation | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 20.00% | 27.00% | |
Accounts Receivable | Customer Concentration Risk | RSP Permian, LLC | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 19.00% | ||
Accounts Receivable | Customer Concentration Risk | Pioneer Natural Resources USA, Inc. | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 14.00% | 19.00% | 17.00% |
Accounts Receivable | Customer Concentration Risk | Parsley Energy, LP | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 20.00% | 18.00% | |
Accounts Receivable | Customer Concentration Risk | Silver Hill Energy Partners, LLC | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 14.00% | ||
Accounts Receivable | Customer Concentration Risk | Anadarko Petroleum Corporation | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 14.00% | 13.00% | |
Accounts Receivable | Customer Concentration Risk | BHP Billiton Petroleum | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 15.00% | ||
Accounts Receivable | Customer Concentration Risk | GEP Haynesville, LLC | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 17.00% | ||
Accounts Receivable | Customer Concentration Risk | Energen Corporation | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 16.00% |
Unaudited Quarterly Financial60
Unaudited Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 25,041 | $ 23,445 | $ 21,285 | $ 20,236 | $ 17,988 | $ 14,464 | $ 15,155 | $ 22,455 | $ 90,007 | $ 70,062 | $ 88,418 |
Operating income (loss) | (4,673) | (5,178) | (5,584) | (5,593) | (9,687) | (6,710) | (3,101) | 567 | (21,028) | (18,931) | (4,951) |
Income tax expense | 177 | 30 | 34 | 46 | 135 | 32 | 31 | 4 | 287 | 202 | (325) |
Net loss | $ (5,745) | $ (5,980) | $ (6,304) | $ (6,269) | $ (10,375) | $ (7,198) | $ (4,191) | $ (414) | $ (24,298) | $ (22,178) | $ (7,880) |
Earnings (loss) per share: | |||||||||||
Basic and diluted (in dollars per share) | $ (0.15) | $ (0.16) | $ (0.17) | $ (0.17) | $ (0.28) | $ (0.19) | $ (0.12) | $ (0.02) | $ (0.64) | $ (0.67) | $ (0.33) |
Schedule II - Valuation and Q61
Schedule II - Valuation and Qualifying Accounts Schedule II - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 8 | $ 8 | $ 129 |
Charged to Costs and Expenses | 0 | 0 | 132 |
Deductions | 0 | 0 | (253) |
Balance at End of Period | 8 | 8 | 8 |
Valuation allowance for deferred tax assets | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 13,773 | 6,710 | 4,449 |
Charged to Costs and Expenses | (1,377) | 7,063 | 2,261 |
Deductions | 0 | 0 | 0 |
Balance at End of Period | $ 12,396 | $ 13,773 | $ 6,710 |