Independence Contract Drilling (ICDIQ) 10-Q 1 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Jul. 29, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	Independence Contract Drilling, Inc.
Entity Central Index Key	0001537028
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		76,948,679
Entity Small Business	true
Entity Ex Transition Period	true
Entity Emerging Growth	true
Entity Current Reporting Status	Yes
Entity Shell Company	false

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Assets
Cash and cash equivalents	$ 10,278	$ 12,247
Accounts receivable, net	35,862	41,987
Inventories	2,443	2,693
Assets held for sale	13,796	19,711
Prepaid expenses and other current assets	3,321	8,930
Total current assets	65,700	85,568
Property, plant and equipment, net	489,074	496,197
Goodwill	1,627	1,627
Other long-term assets, net	2,212	1,470
Total assets	558,613	584,862
Liabilities
Current portion of long-term debt	1,161	587
Accounts payable	19,606	16,312
Accrued liabilities	16,057	29,219
Current portion of contingent consideration	13,950	0
Total current liabilities	50,774	46,118
Long-term debt	128,654	130,012
Contingent consideration	0	15,748
Deferred income taxes, net	1,132	774
Other long-term liabilities	1,125	677
Total liabilities	181,685	193,329
Commitments and contingencies (Note 13)
Stockholders’ equity
Common stock, $0.01 par value, 200,000,000 shares authorized; 77,469,233 and 77,598,806 shares issued, respectively, and 76,948,679 and 77,078,252 shares outstanding, respectively	769	771
Additional paid-in capital	504,074	503,446
Accumulated deficit	(124,869)	(109,638)
Treasury stock, at cost, 520,554 shares	(3,046)	(3,046)
Total stockholders’ equity	376,928	391,533
Total liabilities and stockholders’ equity	$ 558,613	$ 584,862

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Shares authorized (in shares)	200,000,000	200,000,000
Shares issued (in shares)	77,469,233	77,598,806
Shares outstanding (in shares)	76,948,679	77,078,252
Treasury stock (in shares)	520,554	520,554

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Statement [Abstract]
Revenues	$ 52,879	$ 25,754	$ 113,237	$ 51,381
Costs and expenses
Operating costs	37,453	17,966	76,786	36,892
Selling, general and administrative	3,008	3,495	7,553	6,974
Merger-related expenses	1,287	443	2,368	443
Depreciation and amortization	11,371	6,579	22,684	13,170
Asset impairment (insurance recoveries), net	5,855	0	7,873
Asset impairment (insurance recoveries), net				(35)
Loss (gain) on disposition of assets, net	(18)	333	(3,238)	415
Total costs and expenses	58,992	28,150	120,502	57,029
Operating loss	(6,113)	(2,396)	(7,265)	(5,648)
Interest expense	(3,592)	(938)	(7,353)	(1,881)
Other expense	(255)	0	(255)	0
Loss before income taxes	(9,960)	(3,334)	(14,873)	(7,529)
Income tax expense (benefit)	2,898	(21)	358	(70)
Net loss	$ (12,858)	$ (3,313)	$ (15,231)	$ (7,459)
Loss per share:
Basic and diluted (in dollars per share)	$ (0.17)	$ (0.09)	$ (0.20)	$ (0.20)
Weighted average number of common shares outstanding:
Basic and diluted (in shares)	75,692	38,253	75,692	38,188

Consolidated Statements of Stoc

Consolidated Statements of Stockholders’ Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Treasury Stock
Beginning balance (shares) at Dec. 31, 2017		37,985,225
Beginning balance at Dec. 31, 2017	$ 235,482	$ 380	$ 326,616	$ (89,645)	$ (1,869)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	644		644
Net loss	(4,146)			(4,146)
RSUs vested, net of shares withheld for taxes (shares)		350,528
RSUs vested, net of shares withheld for taxes	(95)	$ 3	(98)
Purchase of treasury stock (shares)		(82,988)
Purchase of treasury stock	(350)				(350)
Ending balance (shares) at Mar. 31, 2018		38,252,765
Ending balance at Mar. 31, 2018	231,535	$ 383	327,162	(93,791)	(2,219)
Beginning balance (shares) at Dec. 31, 2017		37,985,225
Beginning balance at Dec. 31, 2017	235,482	$ 380	326,616	(89,645)	(1,869)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(7,459)
Ending balance (shares) at Jun. 30, 2018		38,252,765
Ending balance at Jun. 30, 2018	228,940	$ 383	327,880	(97,104)	(2,219)
Beginning balance (shares) at Mar. 31, 2018		38,252,765
Beginning balance at Mar. 31, 2018	231,535	$ 383	327,162	(93,791)	(2,219)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	718		718
Net loss	(3,313)			(3,313)
Ending balance (shares) at Jun. 30, 2018		38,252,765
Ending balance at Jun. 30, 2018	228,940	$ 383	327,880	(97,104)	(2,219)
Beginning balance (shares) at Dec. 31, 2018		77,078,252
Beginning balance at Dec. 31, 2018	391,533	$ 771	503,446	(109,638)	(3,046)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issuance costs	(177)
Stock-based compensation	387		387
Net loss	$ (2,373)			(2,373)
Ending balance (shares) at Mar. 31, 2019	77,078,252
Ending balance at Mar. 31, 2019	$ 389,370	$ 771	503,656	(112,011)	(3,046)
Beginning balance (shares) at Dec. 31, 2018		77,078,252
Beginning balance at Dec. 31, 2018	391,533	$ 771	503,446	(109,638)	(3,046)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(15,231)
Ending balance (shares) at Jun. 30, 2019		76,948,679
Ending balance at Jun. 30, 2019	$ 376,928	$ 769	504,074	(124,869)	(3,046)
Beginning balance (shares) at Mar. 31, 2019	77,078,252
Beginning balance at Mar. 31, 2019	$ 389,370	$ 771	503,656	(112,011)	(3,046)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	416		416
Net loss	(12,858)			(12,858)
Restricted stock forfeiture (in shares)		(129,573)
Restricted stock forfeiture	0	$ (2)	2
Ending balance (shares) at Jun. 30, 2019		76,948,679
Ending balance at Jun. 30, 2019	$ 376,928	$ 769	$ 504,074	$ (124,869)	$ (3,046)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities
Net loss	$ (15,231)	$ (7,459)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization	22,684	13,170
Asset impairment (insurance recoveries), net	7,873
Asset impairment (insurance recoveries), net		(35)
Stock-based compensation	803	1,362
Loss (gain) on disposition of assets, net	3,238	(415)
Deferred income taxes	358	(70)
Amortization of deferred financing costs	406	185
Bad debt (recovery) expense	(42)	22
Changes in operating assets and liabilities
Accounts receivable	6,167	(1,668)
Inventories	(61)	(136)
Prepaid expenses and other assets	2,751	(951)
Accounts payable and accrued liabilities	(8,953)	(539)
Net cash provided by operating activities	19,993	3,466
Cash flows from investing activities
Purchases of property, plant and equipment	(23,344)	(13,023)
Proceeds from insurance claims	1,000	0
Proceeds from the sale of assets	3,912	327
Net cash used in investing activities	(18,432)	(12,696)
Cash flows from financing activities
Common stock issuance costs	(177)	0
Purchase of treasury stock	0	(350)
RSUs withheld for taxes	0	(95)
Financing costs paid	0	(215)
Payments for finance and capital lease obligations	(770)	(330)
Net cash (used in) provided by financing activities	(3,530)	9,251
Net (decrease) increase in cash and cash equivalents	(1,969)	21
Cash and cash equivalents
Beginning of period	12,247	2,533
End of period	10,278	2,554
Supplemental disclosure of cash flow information
Cash paid during the period for interest	7,047	1,878
Supplemental disclosure of non-cash investing and financing activities
Change in property, plant and equipment purchases in accounts payable	591	3,621
Additions to property, plant and equipment through capital leases	2,223	309
Transfer of assets from held and used to held for sale	(4,028)	0
Transfer from inventory to fixed assets	(311)	0
ABL Credit Facility
Cash flows from financing activities
Borrowings under Credit Facility	2,511	0
Repayments under Credit Facility	(5,077)	0
Financing costs paid	(12)	0
CIT Credit Facility
Cash flows from financing activities
Borrowings under Credit Facility	0	27,441
Repayments under Credit Facility	0	(17,200)
Term Loan Facility
Cash flows from financing activities
Financing costs paid	$ (5)	$ 0

Nature of Operations and Recent

Nature of Operations and Recent Events	6 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations and Recent Events	Nature of Operations and Recent Events Except as expressly stated or the context otherwise requires, the terms “we,” “us,” “our,” “ICD,” and the “Company” refer to Independence Contract Drilling, Inc. and its subsidiary. We provide land-based contract drilling services for oil and natural gas producers targeting unconventional resource plays in the United States. We own and operate a premium fleet comprised of modern, technologically advanced drilling rigs that are specifically engineered and designed to optimize the development of our customers’ most technically demanding oil and gas properties. Our rig fleet includes 29 AC powered (“AC”) rigs and three 1500-HP ultra-modern SCR rigs. During the second quarter of 2019, we elected to cease marketing these three SCR rigs in order to convert them to meet our AC pad-optimal specifications. These rigs will be removed from our marketed fleet until their conversions are complete. We ordered long lead-time items required to complete the conversions in the fourth quarter of 2018, and the first conversion is scheduled for completion during the third quarter of 2019. In addition, we own two idle rigs, including one non-walking 1500-HP AC rig and one 1500-HP SCR, which will not be marketed or reactivated until converted to AC pad-optimal status prior to entering our fleet. These two rigs will not be scheduled for conversion until market conditions improve. We currently focus our operations on unconventional resource plays located in geographic regions that we can efficiently support from our Houston, Texas and Midland, Texas facilities in order to maximize economies of scale. Currently, our rigs are operating in the Permian Basin, the Haynesville Shale and the Eagle Ford Shale; however, our rigs have previously operated in the Mid-Continent and Eaglebine regions as well. Our business depends on the level of exploration and production activity by oil and natural gas companies operating in the United States, and in particular, the regions where we actively market our contract drilling services. The oil and natural gas exploration and production industry is historically cyclical and characterized by significant changes in the levels of exploration and development activities. Oil and natural gas prices and market expectations of potential changes in those prices significantly affect the levels of those activities. Worldwide political, regulatory, economic, and military events, as well as natural disasters have contributed to oil and natural gas price volatility historically, and are likely to continue to do so in the future. Any prolonged reduction in the overall level of exploration and development activities in the United States and the regions where we market our contract drilling services, whether resulting from changes in oil and natural gas prices or otherwise, could materially and adversely affect our business. Oil and Natural Gas Prices and Drilling Activity Oil prices declined from a high of $107.95 per barrel in the second quarter of 2014, to a low of $26.19 per barrel in the first quarter of 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 $2.52 per MMBtu in 2016. As a result, our industry experienced an exceptional downturn, with the U.S. land rig count falling from a high of 1,930 rigs in 2014 to a low of 404 rigs in 2016. In addition to overall rig count decline, pricing for our contract drilling services also substantially declined during this period of time. Although crude oil prices experienced a mild recovery in 2017 and 2018, reaching a high of $77.41 per barrel in the second quarter of 2018, the U.S. land rig count never recovered to its 2014 highs, only reaching 1,083 rigs the week ended December 28, 2018. Similarly, although pricing for our drilling services improved during this period, pricing never reached the rates experienced in 2014. During the fourth quarter of 2018, oil prices began to decline, reaching a low of $44.48 . Although oil prices have recently recovered to the $50.00 to $60.00 range as of the end of the second quarter 2019, most of our E&P customers have decreased planned capital expenditure budgets with the goal of operating within their cash flows. These changes have resulted in softening demand for contract drilling services. Although we believe market conditions for our services have stabilized, we believe this stabilization is predicated on oil prices remaining above a $50 per barrel or higher range. If oil prices were to fall below these levels for any sustainable period, demand and pricing for our contract drilling services could decline and have a material adverse affect on our operations and financial condition. Sidewinder Merger On July 18, 2018, ICD, Patriot Saratoga Merger Sub, LLC, a wholly owned subsidiary of ICD (“Merger Sub”), Sidewinder Drilling, LLC (“Sidewinder”) and MSD Credit Opportunity Master Fund, L.P., as Members’ Representative, entered into a definitive merger agreement (the “Merger Agreement”) pursuant to which Merger Sub merged with and into Sidewinder (the “Merger”), with Sidewinder surviving the Merger and becoming a wholly owned subsidiary of the ICD. The Merger transaction was completed on October 1, 2018. Pursuant to the terms of the Merger Agreement, Sidewinder Series A members received 36,752,657 shares of ICD common stock in exchange for 100% of the outstanding Series A Common Units of Sidewinder (the “Series A Common Units”). The Merger was accounted for using the acquisition method of accounting with ICD identified as the accounting acquirer.

Interim Financial Information

Interim Financial Information	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Interim Financial Information	Interim Financial Information These unaudited consolidated financial statements include the accounts of ICD and its subsidiary, and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). These financial statements should be read along with our audited financial statements for the year ended December 31, 2018 , included in our Annual Report on Form 10-K for the year ended December 31, 2018 . In management’s opinion, these financial statements contain all adjustments necessary to fairly present our financial position, results of operations, cash flows and changes in stockholders’ equity for all periods presented. As we had no items of other comprehensive income in any period presented, no other components of comprehensive income is presented. Interim results for the three and six months ended June 30, 2019 may not be indicative of results that will be realized for the full year ending December 31, 2019 . Leases 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 are required to recognize (with the exception of leases with terms of 12 months or less) 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. In July 2018, the FASB issued ASU No. 2018-11, Leases: Targeted Improvements, which provides an option to apply the guidance prospectively, and provides a practical expedient allowing lessors to combine the lease and non-lease components of revenues where the revenue recognition pattern is the same and where the lease component, when accounted for separately, would be considered an operating lease. The practical expedient also allows a lessor to account for the combined lease and non-lease components under ASC Topic 606, Revenue from Contracts with Customers, when the non-lease component is the predominant element of the combined components. We adopted ASU No. 2016-02 and its related amendments (collectively known as ASC 842) effective on January 1, 2019, using the effective date method. See Note 3 “Leases” for the required disclosures related to the impact of adopting this standard and a discussion of our policies related to leases. Segment and Geographical Information Our operations consist of one reportable segment because all of our drilling operations are located in the United States and have similar economic characteristics. Corporate management administers all properties as a whole rather than as discrete operating segments. Operational data is tracked by rig; however, financial performance is measured as a single enterprise and not on a rig-by-rig basis. Further, the allocation of capital resources is employed on a project-by-project basis across our entire asset base to maximize profitability without regard to individual geographic areas. Other Matters We have not elected to avail ourselves of the extended transition period available to emerging growth companies (“EGCs”) as provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended, for complying with new or revised accounting standards; therefore, we will be subject to new or revised accounting standards at the same time as other public companies that are not EGCs. Recent Accounting Pronouncements In 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 public companies 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 currently evaluating the impact this guidance will have on our accounts receivable. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other, which simplifies the subsequent measurement of goodwill by eliminating Step 2 of the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Under this new standard, an entity should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and then recognize an impairment charge, as necessary, for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to that reporting unit. This guidance is effective for fiscal years beginning after December 15, 2019, with early adoption permitted for interim and annual periods beginning after January 1, 2017. We do not believe this new guidance will have a material impact on our consolidated financial statements.

Leases

Leases	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Leases	Leases Effective January 1, 2019, we adopted ASC 842. The most significant changes of the new standard are (1) lessees recognize a lease liability and a right-of-use (“ROU”) asset for all leases, including operating leases, with an initial term greater than 12 months on their balance sheets and (2) lessees and lessors disclose additional key information about their leasing transactions. We have elected to implement ASC 842 using the effective date method which recognizes and measures all leases that exist at the effective date, January 1, 2019, using a modified retrospective transition approach. There was no cumulative-effect adjustment required to be recorded in connection with the adoption of the new standard and the reported amount of lease expense and cash flows are substantially unchanged under ASC 842. Comparative periods are presented in accordance with ASC 840 and do not include any retrospective adjustments. As a Lessor Our daywork drilling contracts, under which the vast majority of our revenues are derived, contain both a lease component and a service component. ASU 2018-11 amended ASC 842 to, among other things, provide lessors with a practical expedient to not separate non-lease components from lease components and, instead, to account for those components as a single amount, if the non-lease components otherwise would be accounted for under Topic 606 and both of the following are met: 1) The timing and pattern of transfer of non-lease components and lease components are the same. 2) The lease component, if accounted for separately, would be classified as an operating lease. If the non-lease component is the predominant component of the combined amount, an entity is required to account for the combined amount in accordance with Topic 606. Otherwise, the entity must account for the combined amount as an operating lease in accordance with Topic 842. Revenues from our daywork drilling contracts meet both of the criteria above and we have determined both quantitatively and qualitatively that the service component of our daywork drilling contracts is the predominant component. Accordingly, we combine the lease and service components of our daywork drilling contracts and account for the combined amount under Topic 606. See Note 5 - Revenue from Contracts with Customers. We have multi-year operating and financing leases for corporate office space, field location facilities, land, vehicles and various other equipment used in our operations. We also have a significant number of rentals related to our drilling operations that are day-to-day or month-to-month arrangements. Our multi-year leases have remaining lease terms of greater than one year to 5 years. As a Lessee As a practical expedient, a lessee may elect not to apply the recognition requirements in ASC 842 to short-term leases. Instead a lessee may recognize the lease payments in profit or loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred. We have elected to utilize this practical expedient. We have elected the package of practical expedients permitted in ASC 842. Accordingly, we accounted for our existing capital leases as finance leases under the new guidance, without reassessing whether the contracts contained a lease under ASC 842, whether classification of the capital lease would be different in accordance with ASC 842 and without reassessing any initial costs associated with the lease. As a result, we recognized on January 1, 2019 a lease liability at the carrying amount of the capital lease obligation on December 31, 2018, of $1.2 million and a ROU asset at the carrying amount of the capital lease asset of $1.3 million . Additionally, we accounted for our existing operating leases as operating leases under the new guidance, without reassessing (a) whether the contract contains a lease under ASC 842 or (b) whether classification of the operating lease would be different in accordance with ASC 842. As a result, we recognized on January 1, 2019 a lease liability of $1.7 million , which represents the present value of the remaining lease payments discounted using our incremental borrowing rate of 8.17% , and a ROU asset of $0.9 million , which represents the lease liability of $1.7 million plus any prepaid lease payments, and less any unamortized lease incentives, totaling $0.8 million . On January 1, 2019, the vehicle leases assumed in the Sidewinder merger were amended to be consistent with our existing vehicle leases, which resulted in a change in the classification from operating leases to finance leases. On the amendment date, we recorded $0.4 million in finance lease obligations and right of use assets. The components of lease expense were as follows: (in thousands) Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Operating lease expense $ 124 $ 249 Short-term lease expense 1,234 2,427 Variable lease expense 185 271 Finance lease cost: Amortization of right-of-use assets $ 314 $ 579 Interest expense on lease liabilities 47 79 Total finance lease expense 361 658 Total lease expenses $ 1,904 $ 3,605 Supplemental cash flow information related to leases is as follows: (in thousands) Six Months Ended June 30, 2019 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 216 Operating cash flows from finance leases $ 74 Financing cash flows from finance leases $ 770 Right-of-use assets obtained or recorded in exchange for lease obligations: Operating leases $ 955 Finance leases $ 2,223 Supplemental balance sheet information related to leases is as follows: (in thousands) June 30, 2019 Operating leases: Operating lease right-of-use assets $ 772 Accrued liabilities $ 421 Other long-term liabilities 1,126 Total operating lease liabilities $ 1,547 Finance leases: Property and equipment $ 4,313 Accumulated depreciation (1,347 ) Property and equipment, net $ 2,966 Current portion of long-term debt $ 1,161 Long-term debt 1,523 Total finance lease liabilities $ 2,684 Weighted-average remaining lease term Operating leases 4.2 years Finance leases 2.2 years Weighted-average discount rate Operating leases 8.17 % Finance leases 7.06 % Maturities of lease liabilities at June 30, 2019 were as follows: (in thousands) Operating Leases Finance Leases 2019 $ 315 $ 601 2020 384 915 2021 350 607 2022 360 129 2023 370 — Thereafter 47 — Total cash lease payment 1,826 2,252 Add: expected residual value — 679 Less: imputed interest (279 ) (247 ) Total lease liabilities $ 1,547 $ 2,684 As of December 31, 2018, future total obligations on our noncancellable capital and operating leases were $3.7 million in the aggregate, which consisted of the following: $1.4 million in 2019, $1.0 million in 2020, $0.5 million in 2021 and $0.8 million thereafter.
Leases	Leases Effective January 1, 2019, we adopted ASC 842. The most significant changes of the new standard are (1) lessees recognize a lease liability and a right-of-use (“ROU”) asset for all leases, including operating leases, with an initial term greater than 12 months on their balance sheets and (2) lessees and lessors disclose additional key information about their leasing transactions. We have elected to implement ASC 842 using the effective date method which recognizes and measures all leases that exist at the effective date, January 1, 2019, using a modified retrospective transition approach. There was no cumulative-effect adjustment required to be recorded in connection with the adoption of the new standard and the reported amount of lease expense and cash flows are substantially unchanged under ASC 842. Comparative periods are presented in accordance with ASC 840 and do not include any retrospective adjustments. As a Lessor Our daywork drilling contracts, under which the vast majority of our revenues are derived, contain both a lease component and a service component. ASU 2018-11 amended ASC 842 to, among other things, provide lessors with a practical expedient to not separate non-lease components from lease components and, instead, to account for those components as a single amount, if the non-lease components otherwise would be accounted for under Topic 606 and both of the following are met: 1) The timing and pattern of transfer of non-lease components and lease components are the same. 2) The lease component, if accounted for separately, would be classified as an operating lease. If the non-lease component is the predominant component of the combined amount, an entity is required to account for the combined amount in accordance with Topic 606. Otherwise, the entity must account for the combined amount as an operating lease in accordance with Topic 842. Revenues from our daywork drilling contracts meet both of the criteria above and we have determined both quantitatively and qualitatively that the service component of our daywork drilling contracts is the predominant component. Accordingly, we combine the lease and service components of our daywork drilling contracts and account for the combined amount under Topic 606. See Note 5 - Revenue from Contracts with Customers. We have multi-year operating and financing leases for corporate office space, field location facilities, land, vehicles and various other equipment used in our operations. We also have a significant number of rentals related to our drilling operations that are day-to-day or month-to-month arrangements. Our multi-year leases have remaining lease terms of greater than one year to 5 years. As a Lessee As a practical expedient, a lessee may elect not to apply the recognition requirements in ASC 842 to short-term leases. Instead a lessee may recognize the lease payments in profit or loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred. We have elected to utilize this practical expedient. We have elected the package of practical expedients permitted in ASC 842. Accordingly, we accounted for our existing capital leases as finance leases under the new guidance, without reassessing whether the contracts contained a lease under ASC 842, whether classification of the capital lease would be different in accordance with ASC 842 and without reassessing any initial costs associated with the lease. As a result, we recognized on January 1, 2019 a lease liability at the carrying amount of the capital lease obligation on December 31, 2018, of $1.2 million and a ROU asset at the carrying amount of the capital lease asset of $1.3 million . Additionally, we accounted for our existing operating leases as operating leases under the new guidance, without reassessing (a) whether the contract contains a lease under ASC 842 or (b) whether classification of the operating lease would be different in accordance with ASC 842. As a result, we recognized on January 1, 2019 a lease liability of $1.7 million , which represents the present value of the remaining lease payments discounted using our incremental borrowing rate of 8.17% , and a ROU asset of $0.9 million , which represents the lease liability of $1.7 million plus any prepaid lease payments, and less any unamortized lease incentives, totaling $0.8 million . On January 1, 2019, the vehicle leases assumed in the Sidewinder merger were amended to be consistent with our existing vehicle leases, which resulted in a change in the classification from operating leases to finance leases. On the amendment date, we recorded $0.4 million in finance lease obligations and right of use assets. The components of lease expense were as follows: (in thousands) Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Operating lease expense $ 124 $ 249 Short-term lease expense 1,234 2,427 Variable lease expense 185 271 Finance lease cost: Amortization of right-of-use assets $ 314 $ 579 Interest expense on lease liabilities 47 79 Total finance lease expense 361 658 Total lease expenses $ 1,904 $ 3,605 Supplemental cash flow information related to leases is as follows: (in thousands) Six Months Ended June 30, 2019 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 216 Operating cash flows from finance leases $ 74 Financing cash flows from finance leases $ 770 Right-of-use assets obtained or recorded in exchange for lease obligations: Operating leases $ 955 Finance leases $ 2,223 Supplemental balance sheet information related to leases is as follows: (in thousands) June 30, 2019 Operating leases: Operating lease right-of-use assets $ 772 Accrued liabilities $ 421 Other long-term liabilities 1,126 Total operating lease liabilities $ 1,547 Finance leases: Property and equipment $ 4,313 Accumulated depreciation (1,347 ) Property and equipment, net $ 2,966 Current portion of long-term debt $ 1,161 Long-term debt 1,523 Total finance lease liabilities $ 2,684 Weighted-average remaining lease term Operating leases 4.2 years Finance leases 2.2 years Weighted-average discount rate Operating leases 8.17 % Finance leases 7.06 % Maturities of lease liabilities at June 30, 2019 were as follows: (in thousands) Operating Leases Finance Leases 2019 $ 315 $ 601 2020 384 915 2021 350 607 2022 360 129 2023 370 — Thereafter 47 — Total cash lease payment 1,826 2,252 Add: expected residual value — 679 Less: imputed interest (279 ) (247 ) Total lease liabilities $ 1,547 $ 2,684 As of December 31, 2018, future total obligations on our noncancellable capital and operating leases were $3.7 million in the aggregate, which consisted of the following: $1.4 million in 2019, $1.0 million in 2020, $0.5 million in 2021 and $0.8 million thereafter.

Sidewinder Merger

Sidewinder Merger	6 Months Ended
	Jun. 30, 2019
Business Combinations [Abstract]
Sidewinder Merger	Sidewinder Merger We completed the merger with Sidewinder Drilling LLC on October 1, 2018, through an exchange of 100% of Sidewinder’s outstanding voting interests for 36,752,657 shares of ICD common stock, which were valued at $173.1 million at the time of closing. We also assumed $58.5 million of Sidewinder indebtedness in the transaction. During the three and six months ended June 30, 2019 , we recorded $1.3 million and $2.4 million , respectively, of merger-related expenses comprised primarily of severance, professional fees and various other integration related expenses. Certain intangible liabilities were recorded in connection with the Sidewinder merger for drilling contracts in place at the closing date of the transaction that had unfavorable contract terms as compared to then current market terms for comparable drilling rigs. The intangible liabilities are amortized to operating revenues over the remaining underlying contract terms. During the three and six months ended June 30, 2019 , $46.0 thousand and $1.1 million of intangible revenue was recognized as a result of this amortization and the intangible liabilities were fully amortized. The following table summarizes the components of intangible liabilities, net: (in thousands) June 30, 2019 December 31, 2018 Intangible liabilities $ 3,123 $ 3,123 Accumulated amortization (3,123 ) (2,044 ) Intangible liabilities, net $ — $ 1,079 In addition, at the time of consummation of the Sidewinder Merger, Sidewinder owned 11 mechanical rigs and related equipment (the "Mechanical Rigs") located principally in the Utica and Marcellus plays. As these rigs are not consistent with ICD’s core strategy or geographic focus, ICD agreed that these rigs can be disposed of, with the Sidewinder unitholders receiving the net proceeds. As a result of this arrangement, on the closing date, we recorded $15.9 million , representing the fair value of the Mechanical Rigs less costs to sell, as assets held for sale, with an offsetting liability in contingent consideration at the closing of the transaction. Certain of these assets have been sold, and we expect to sell or liquidate substantially all of the remaining assets and pay out the related net proceeds by April 2020.

Revenue from Contracts with Cus

Revenue from Contracts with Customers	6 Months Ended
	Jun. 30, 2019
Revenue from Contract with Customer [Abstract]
Revenue from Contracts with Customer	Revenue from Contracts with Customers The following table summarizes revenues from our contracts disaggregated by revenue generating activity contained therein for the three and six months ended June 30, 2019 and 2018 : Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2019 2018 2019 2018 Dayrate drilling $ 48,133 $ 24,447 $ 104,584 $ 48,224 Mobilization 1,177 271 2,437 730 Reimbursables 2,950 1,002 4,554 2,233 Early termination 501 — 501 — Capital modification 62 34 72 194 Intangible 46 — 1,079 — Other 10 — 10 — Total revenue $ 52,879 $ 25,754 $ 113,237 $ 51,381 The following table provides information about receivables, contract assets and contract liabilities related to contracts with customers: (in thousands) June 30, 2019 December 31, 2018 Receivables, which are included in “Accounts receivable, net” $ 35,670 $ 41,987 Contract assets $ — $ — Contract liabilities $ (730 ) $ (1,374 ) Significant changes in contract assets and contract liabilities balances during the period are as follows: Three Months Ended Six Months Ended (in thousands) Contract Assets Contract Liabilities Contract Assets Contract Liabilities Revenue recognized that was included in contract liabilities at beginning of period $ — $ 574 $ — $ 1,305 Increase in contract liabilities due to cash received, excluding amounts recognized as revenue $ — $ (500 ) $ — $ (661 ) Transferred to receivables from contract assets at beginning of period $ — $ — $ — $ — The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2019 . The estimated revenue does not include amounts of variable consideration that are constrained. Year Ending December 31, (in thousands) 2019 2020 2021 Total Revenue $ 730 $ — $ — $ 730 The amounts presented in the table above consist only of fixed consideration related to fees for rig mobilizations and demobilizations, if applicable, which are allocated to the drilling services performance obligation as such performance obligation is satisfied. We have elected the exemption from disclosure of remaining performance obligations for variable consideration. Therefore, dayrate revenue to be earned on a rate scale associated with drilling conditions and level of service provided for each fractional-hour time increment over the contract term and other variable consideration such as penalties and reimbursable revenues, have been excluded from the disclosure. Contract Costs We capitalize costs incurred to fulfill our contracts that (i) relate directly to the contract, (ii) are expected to generate resources that will be used to satisfy our performance obligations under the contract and (iii) are expected to be recovered through revenue generated under the contract. These costs, which principally relate to rig mobilization costs at the commencement of a new contract, are deferred as a current or noncurrent asset (depending on the length of the contract term), and amortized ratably to contract drilling expense as services are rendered over the initial term of the related drilling contract. Such contract costs, recorded as “Prepaid expenses and other current assets”, amounted to $1.0 million and $1.1 million on our consolidated balance sheets at June 30, 2019 and December 31, 2018, respectively. During the three and six months ended June 30, 2019 , contract costs increased by $0.9 million and $1.5 million , respectively, and we amortized $0.9 million and $1.6 million of contract costs.

Financial Instruments and Fair

Financial Instruments and Fair Value	6 Months Ended
	Jun. 30, 2019
Fair Value Disclosures [Abstract]
Financial Instruments and Fair Value	Financial Instruments and Fair Value Fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, there exists a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1 Unadjusted quoted market prices for identical assets or liabilities in an active market; Level 2 Quoted market prices for identical assets or liabilities in an active market that have been adjusted for items such as effects of restrictions for transferability and those that are not quoted but are observable through corroboration with observable market data, including quoted market prices for similar assets or liabilities; and Level 3 Unobservable inputs for the asset or liability only used when there is little, if any, market activity for the asset or liability at the measurement date. This hierarchy requires us to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. The carrying value of certain of our assets and liabilities, consisting primarily of cash and cash equivalents, accounts receivable, accounts payable and certain accrued liabilities 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 7.1% . The following table summarizes the carrying value and fair value of our long-term debt as of June 30, 2019 and December 31, 2018 . Balances at June 30, 2019 December 31, 2018 (in thousands) Carrying Value Fair Value Carrying Value Fair Value Term Loan Facility $ 130,000 $ 141,496 $ 130,000 $ 131,893 ABL Credit Facility $ — $ — $ 2,566 $ 2,258 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 non-recurring basis, which would consist of measurements primarily of long-lived assets.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2019
Inventory Disclosure [Abstract]
Inventories	Inventories All of our inventory as of June 30, 2019 and December 31, 2018 consisted of supplies held for use in our drilling operations.

Accrued Liabilities

Accrued Liabilities	6 Months Ended
	Jun. 30, 2019
Payables and Accruals [Abstract]
Accrued Liabilities	Accrued Liabilities Accrued liabilities consisted of the following: (in thousands) June 30, 2019 December 31, 2018 Accrued salaries and other compensation $ 3,157 $ 12,379 Insurance 2,930 5,464 Deferred revenues (contract liabilities) 730 1,374 Property and other taxes 3,224 3,829 Intangible liability — 1,079 Interest 3,370 3,318 Operating lease liability - current 421 — Other 2,225 1,776 $ 16,057 $ 29,219

Long-term Debt

Long-term Debt	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Long-term Debt	Long-term Debt Our long-term debt consisted of the following: June 30, December 31, (in thousands) 2019 2018 Term Loan Facility due October 1, 2023 $ 130,000 $ 130,000 ABL Credit Facility due October 1, 2023 — 2,566 Finance and capital lease obligations 2,684 1,235 132,684 133,801 Less: current portion (1,161 ) (587 ) Less: Term Loan Facility deferred financing costs (2,869 ) (3,202 ) Long-term debt $ 128,654 $ 130,012 Credit Facilities In conjunction with the closing of the Sidewinder Merger on October 1, 2018, we entered into a term loan Credit Agreement (the “Term Loan Credit Agreement”) for an initial term loan in an aggregate principal amount of $130.0 million , (the “Term Loan Facility”) and (b) a delayed draw term loan facility in an aggregate principal amount of up to $15.0 million (the “DDTL Facility”, and together with the Term Loan Facility, the “Term Facilities”). The Term Facilities have a maturity date of October 1, 2023, at which time all outstanding principal under the Term Facilities and other obligations become due and payable in full. At our election, interest under the Term Loan Facility is determined by reference at our option to either (i) a “base rate” equal to the higher of (a) the federal funds effective rate plus 0.05% , (b) the London Interbank Offered Rate with an interest period of one month (“LIBOR”), plus 1.0% , and (c) the rate of interest as publicly quoted from time to time by the Wall Street Journal as the “prime rate” in the United States; plus an applicable margin of 6.5% , or (ii) a “LIBOR rate” equal to LIBOR with an interest period of one month, plus an applicable margin of 7.5% . The Term Loan Credit Agreement contains financial covenants, including a liquidity covenant of $10.0 million and a springing fixed charge coverage ratio covenant of 1.00 to 1.00 that is tested when availability under the ABL Credit Facility (defined below) and the DDTL Facility is below $5.0 million at any time that a DDTL Facility loan is outstanding. The Term Loan Credit Agreement also contains other customary affirmative and negative covenants, including limitations on indebtedness, liens, fundamental changes, asset dispositions, restricted payments, investments and transactions with affiliates. The Term Loan Credit Agreement also provides for customary events of default, including breaches of material covenants, defaults under the ABL Credit Facility or other material agreements for indebtedness, and a change of control. The obligations under the Term Loan Credit Agreement are secured by a first priority lien on collateral (the “Term Priority Collateral”) other than accounts receivable, deposit accounts and other related collateral pledged as first priority collateral (“Priority Collateral”) under the ABL Credit Facility (defined below) and a second priority lien on such Priority Collateral, and are unconditionally guaranteed by all of our current and future direct and indirect subsidiaries. MSD PCOF Partners IV, LLC (an affiliate of MSD Partners, L.P. "MSD Partners") is the lender of our $130.0 million Term Loan Facility. MSD Partners, together with its affiliate, MSD Capital, L.P. (“MSD Capital”) own approximately 30% of the outstanding shares of the Company’s common stock. Additionally, in connection with the closing of the Sidewinder Merger on October 1, 2018, we entered into a $40.0 million revolving Credit Agreement (the “ABL Credit Facility”), including availability for letters of credit in an aggregate amount at any time outstanding not to exceed $7.5 million . Availability under the ABL Credit Facility is subject to a borrowing base calculated based on 85% of the net amount of our eligible accounts receivable, minus reserves. The ABL Credit Facility has a maturity date of the earlier of October 1, 2023 or the maturity date of the Term Loan Credit Agreement. At our election, interest under the ABL Credit Facility is determined by reference at our option to either (i) a “base rate” equal to the higher of (a) the federal funds effective rate plus 0.05% , (b) LIBOR with an interest period of one month, plus 1.0% , and (c) the prime rate of Wells Fargo, plus in each case, an applicable base rate margin ranging from 1.0% to 1.5% based on quarterly availability, or (ii) a revolving loan rate equal to LIBOR for the applicable interest period plus an applicable LIBOR margin ranging from 2.0% to 2.5% based on quarterly availability. We also pay, on a quarterly basis, a commitment fee of 0.375% (or 0.25% at any time when revolver usage is greater than 50% of the maximum credit) per annum on the unused portion of the ABL Credit Facility commitment. The ABL Credit Facility contains a springing fixed charge coverage ratio covenant of 1.00 to 1.00 that is tested when availability is less than 10% of the maximum credit. The ABL Credit Facility also contains other customary affirmative and negative covenants, including limitations on indebtedness, liens, fundamental changes, asset dispositions, restricted payments, investments and transactions with affiliates. The ABL Credit Facility also provides for customary events of default, including breaches of material covenants, defaults under the Term Loan Agreement or other material agreements for indebtedness, and a change of control. We are in compliance with our covenants as of June 30, 2019 . The obligations under the ABL Credit Facility are secured by a first priority lien on Priority Collateral, which includes all accounts receivable and deposit accounts, and a second priority lien on the Term Priority Collateral, and are unconditionally guaranteed by all of our current and future direct and indirect subsidiaries. As of June 30, 2019 , the weighted-average interest rate on our borrowings was 10.09% . At June 30, 2019 , the borrowing base under our ABL Credit Facility was $24.2 million , and we had $21.7 million of availability remaining of our $40.0 million commitment on that date. Subsequent to June 30, 2019, we received notification from our insurance carrier that our collateral requirement supported by a letter of credit from our ABL Credit Facility decreased from $2.5 million to $0.4 million . Pro forma for the new collateral requirement, availability under our ABL Credit Facility at June 30, 2019 would have been $23.8 million .

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation Prior to June 2019, we issued common stock-based awards to employees and non-employee directors under our 2012 Long-Term Incentive Plan adopted in March 2012 (the “2012 Plan”). In June 2019, we adopted the 2019 Omnibus Incentive Plan (the “2019 Plan”) providing for common stock-based awards to employees and non-employee directors. The 2019 Plan permits the granting of various types of awards, including stock options, restricted stock and restricted stock unit awards, and up to 5,500,000 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. As of June 30, 2019 , approximately 3,995,488 shares were available for future awards under the 2019 Plan. In connection with the adoption of the 2019 Plan, no further awards will be made under the 2012 Plan. 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: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2019 2018 2019 2018 Compensation cost recognized: Stock options $ — $ — $ — $ — Restricted stock and restricted stock units 416 718 803 1,362 Total stock-based compensation $ 416 $ 718 $ 803 $ 1,362 No stock-based compensation was capitalized in connection with rig construction activity during the three and six months ended June 30, 2019 or 2018 . Stock Options We use the Black-Scholes option pricing model to estimate the fair value of stock options granted to employees and non-employee directors. The fair value of the options is amortized to compensation expense on a straight-line basis over the requisite service periods of the stock awards, which are generally the vesting periods. There were no stock options granted during the six months ended June 30, 2019 or 2018 . A summary of stock option activity and related information for the six months ended June 30, 2019 is as follows: Six Months Ended June 30, 2019 Options Weighted Average Exercise Price Outstanding at January 1, 2019 669,213 $ 12.74 Granted — — Exercised — — Forfeited/expired — — Outstanding at June 30, 2019 669,213 $ 12.74 Exercisable at June 30, 2019 669,213 $ 12.74 The number of options vested at June 30, 2019 was 669,213 with a weighted average remaining contractual life of 2.8 years and a weighted average exercise price of $12.74 per share. There were no unvested options or unrecognized compensation cost related to outstanding stock options at June 30, 2019 . Time-based Restricted Stock and Restricted Stock Units We have granted time-based restricted stock and restricted stock units to key employees under the 2012 Plan and 2019 Plan. Time-based Restricted Stock Time-based restricted stock awards consist of grants of our common stock that vest ratably over three to five years . We recognize compensation expense on a straight-line basis over the vesting period. The fair value of restricted stock awards is determined based on the estimated fair market value of our shares on the grant date. As of June 30, 2019 , there was $3.6 million in unrecognized compensation cost related to unvested restricted stock awards. This cost is expected to recognized over a weighted-average period of 2.3 years. A summary of the status of our time-based restricted stock awards and of changes in our time-based restricted stock awards outstanding for the six months ended June 30, 2019 is as follows: Six Months Ended June 30, 2019 Shares Weighted Outstanding at January 1, 2019 1,385,973 $ 3.22 Granted — — Vested — — Forfeited (129,573 ) 3.22 Outstanding at June 30, 2019 1,256,400 $ 3.22 Time-based Restricted Stock Units We have granted three -year time vested restricted stock unit awards where each unit represents the right to receive, at the end of a vesting period, one share of ICD common stock with no exercise price. The fair value of time-based restricted stock unit awards is determined based on the estimated fair market value of our shares on the grant date. As of June 30, 2019 , there was $2.5 million of total unrecognized compensation cost related to unvested time-based restricted stock unit awards. This cost is expected to be recognized over a weighted-average period of 1.2 years. A summary of the status of our time-based restricted stock unit awards and of changes in our time-based restricted stock unit awards outstanding for the six months ended June 30, 2019 is as follows: Six Months Ended June 30, 2019 RSUs Weighted Outstanding at January 1, 2019 409,607 $ 4.79 Granted 564,994 1.94 Vested and converted — — Forfeited — — Outstanding at June 30, 2019 974,601 $ 3.14 Performance-Based and Market-Based Restricted Stock Units We have granted three-year performance-based and market-based restricted stock unit awards, 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 restricted stock unit awards is based on our total shareholder return ("TSR") as measured against the TSR of a defined peer group and vesting of the performance-based restricted stock unit awards is based on our cumulative return on invested capital ("ROIC") as measured against ROIC performance goals determined by the compensation committee of our Board of Directors. We used a Monte Carlo simulation model to value the TSR market-based restricted stock unit awards. The fair value of the performance-based restricted stock unit awards is based on the market price of our common stock on the date of grant. During the restriction period, the performance-based and market-based restricted stock unit awards may not be transferred or encumbered, and the recipient does not receive dividend equivalents or have voting rights until the units vest. As of June 30, 2019 , there was unrecognized compensation cost related to unvested performance-based or market-based restricted stock unit awards totaling $0.8 million . This cost is expected to be recognized over a weighted-average period of 1.4 years . The assumptions used to value our TSR market-based restricted stock unit awards granted during the six months ended June 30, 2019 were a risk-free interest rate of 1.86% , an expected volatility of 58.2% and an expected dividend yield of 0.0% . Based on the Monte Carlo simulation, these restricted stock unit awards were valued at $1.45 . A summary of the status of our performance-based and market-based restricted stock unit awards and of changes in our restricted stock unit awards outstanding for the six months ended June 30, 2019 is as follows: Six Months Ended June 30, 2019 RSUs Weighted Outstanding at January 1, 2019 — $ — Granted 469,759 1.69 Vested and converted — — Forfeited — — Outstanding at June 30, 2019 469,759 $ 1.69

Stockholders_ Equity and Earnin

Stockholders’ Equity and Earnings (Loss) per Share	6 Months Ended
	Jun. 30, 2019
Earnings Per Share [Abstract]
Stockholders' Equity and Earnings (Loss) per Share	Stockholders’ Equity and Earnings (Loss) per Share As of June 30, 2019 , we had a total of 76,948,679 shares of common stock, $0.01 par value, outstanding. We also had 520,554 shares held as treasury stock. Total authorized common stock is 200,000,000 shares. Basic earnings (loss) per common share (“EPS”) are computed by dividing income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock. A reconciliation of the numerators and denominators of the basic and diluted losses per share computations is as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands, except per share data) 2019 2018 2019 2018 Net loss (numerator): $ (12,858 ) $ (3,313 ) $ (15,231 ) $ (7,459 ) Loss per share: Basic and diluted $ (0.17 ) $ (0.09 ) $ (0.20 ) $ (0.20 ) Shares (denominator): Weighted average common shares outstanding - basic 75,692 38,253 75,692 38,188 Weighted average common shares outstanding - diluted 75,692 38,253 75,692 38,188 For all periods presented, the computation of diluted loss per share excludes the effect of certain outstanding stock options and RSUs because their inclusion would be anti-dilutive. The number of options that were excluded from diluted loss per share were 669,213 during the three and six months ended June 30, 2019 and 682,950 during the three and six months ended June 30, 2018 . The number of RSUs, which are not participating securities, that were excluded from our basic and diluted loss per share because they are anti-dilutive, were 1,444,360 for the three and six months ended June 30, 2019 and 1,226,173 for the three and six months ended June 30, 2018 .

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our effective tax rate was (29.1)% and (2.4)% for the three and six months ended June 30, 2019 , and 0.6% and 0.9% for the three and six months ended June 30, 2018 . Taxes in both periods relate to Louisiana state income tax and Texas margin tax. For federal income tax purposes, we have applied a valuation allowance against any potential deferred tax asset which would have ordinarily resulted.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Purchase Commitments As of June 30, 2019 , we had outstanding purchase commitments to a number of suppliers totaling $10.5 million , net of deposits previously made, related primarily to the operation and upgrade of drilling rigs. All of these commitments relate to equipment and services currently scheduled for delivery in 2019. Contingencies We may be the subject of lawsuits and claims arising in the ordinary course of business from time to time. Management cannot predict the ultimate outcome of such lawsuits and claims. While lawsuits and claims are asserted for amounts that may be material should an unfavorable outcome be the result, management does not currently expect that the outcome of any of these known legal proceedings or claims will have a material adverse effect on our financial position or results of operations.

Related Parties

Related Parties	6 Months Ended
	Jun. 30, 2019
Related Party Transactions [Abstract]
Related Parties	Related Parties In conjunction with the closing of the Sidewinder Merger on October 1, 2018, we entered into the Term Loan Credit Agreement for an initial term loan in an aggregate principal amount of $130.0 million and a delayed draw term loan facility in an aggregate principal amount of up to $15.0 million . MSD PCOF Partners IV, LLC (an affiliate of MSD Partners) is the lender of our $130.0 million Term Loan Facility. MSD Partners, together with MSD Capital, own approximately 30% of the outstanding shares of the Company’s common stock as of June 30, 2019 . We made interest payments on the Term Loan Facility totaling $3.3 million and $6.6 million for the three and six months ended June 30, 2019 , respectively.

Interim Financial Information (

Interim Financial Information (Policies)	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Basis of Accounting	These unaudited consolidated financial statements include the accounts of ICD and its subsidiary, and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). These financial statements should be read along with our audited financial statements for the year ended December 31, 2018 , included in our Annual Report on Form 10-K for the year ended December 31, 2018 . In management’s opinion, these financial statements contain all adjustments necessary to fairly present our financial position, results of operations, cash flows and changes in stockholders’ equity for all periods presented. As we had no items of other comprehensive income in any period presented, no other components of comprehensive income is presented. Interim results for the three and six months ended June 30, 2019 may not be indicative of results that will be realized for the full year ending December 31, 2019 .
Leases	Leases 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 are required to recognize (with the exception of leases with terms of 12 months or less) 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. In July 2018, the FASB issued ASU No. 2018-11, Leases: Targeted Improvements, which provides an option to apply the guidance prospectively, and provides a practical expedient allowing lessors to combine the lease and non-lease components of revenues where the revenue recognition pattern is the same and where the lease component, when accounted for separately, would be considered an operating lease. The practical expedient also allows a lessor to account for the combined lease and non-lease components under ASC Topic 606, Revenue from Contracts with Customers, when the non-lease component is the predominant element of the combined components. We adopted ASU No. 2016-02 and its related amendments (collectively known as ASC 842) effective on January 1, 2019, using the effective date method. See Note 3 “Leases” for the required disclosures related to the impact of adopting this standard and a discussion of our policies related to leases.
Segment and Geographical Information	Segment and Geographical Information Our operations consist of one reportable segment because all of our drilling operations are located in the United States and have similar economic characteristics. Corporate management administers all properties as a whole rather than as discrete operating segments. Operational data is tracked by rig; however, financial performance is measured as a single enterprise and not on a rig-by-rig basis. Further, the allocation of capital resources is employed on a project-by-project basis across our entire asset base to maximize profitability without regard to individual geographic areas.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In 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 public companies 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 currently evaluating the impact this guidance will have on our accounts receivable. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other, which simplifies the subsequent measurement of goodwill by eliminating Step 2 of the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Under this new standard, an entity should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and then recognize an impairment charge, as necessary, for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to that reporting unit. This guidance is effective for fiscal years beginning after December 15, 2019, with early adoption permitted for interim and annual periods beginning after January 1, 2017. We do not believe this new guidance will have a material impact on our consolidated financial statements.
Fair Value Measurement	Fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, there exists a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1 Unadjusted quoted market prices for identical assets or liabilities in an active market; Level 2 Quoted market prices for identical assets or liabilities in an active market that have been adjusted for items such as effects of restrictions for transferability and those that are not quoted but are observable through corroboration with observable market data, including quoted market prices for similar assets or liabilities; and Level 3 Unobservable inputs for the asset or liability only used when there is little, if any, market activity for the asset or liability at the measurement date. This hierarchy requires us to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. The carrying value of certain of our assets and liabilities, consisting primarily of cash and cash equivalents, accounts receivable, accounts payable and certain accrued liabilities approximates their fair value due to the short-term nature of such instruments.

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Lease, cost	The components of lease expense were as follows: (in thousands) Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Operating lease expense $ 124 $ 249 Short-term lease expense 1,234 2,427 Variable lease expense 185 271 Finance lease cost: Amortization of right-of-use assets $ 314 $ 579 Interest expense on lease liabilities 47 79 Total finance lease expense 361 658 Total lease expenses $ 1,904 $ 3,605 Supplemental cash flow information related to leases is as follows: (in thousands) Six Months Ended June 30, 2019 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 216 Operating cash flows from finance leases $ 74 Financing cash flows from finance leases $ 770 Right-of-use assets obtained or recorded in exchange for lease obligations: Operating leases $ 955 Finance leases $ 2,223
Assets and liabilities, lessee	Supplemental balance sheet information related to leases is as follows: (in thousands) June 30, 2019 Operating leases: Operating lease right-of-use assets $ 772 Accrued liabilities $ 421 Other long-term liabilities 1,126 Total operating lease liabilities $ 1,547 Finance leases: Property and equipment $ 4,313 Accumulated depreciation (1,347 ) Property and equipment, net $ 2,966 Current portion of long-term debt $ 1,161 Long-term debt 1,523 Total finance lease liabilities $ 2,684 Weighted-average remaining lease term Operating leases 4.2 years Finance leases 2.2 years Weighted-average discount rate Operating leases 8.17 % Finance leases 7.06 %
Maturity of operating lease liability	Maturities of lease liabilities at June 30, 2019 were as follows: (in thousands) Operating Leases Finance Leases 2019 $ 315 $ 601 2020 384 915 2021 350 607 2022 360 129 2023 370 — Thereafter 47 — Total cash lease payment 1,826 2,252 Add: expected residual value — 679 Less: imputed interest (279 ) (247 ) Total lease liabilities $ 1,547 $ 2,684
Maturity of finance lease liability	Maturities of lease liabilities at June 30, 2019 were as follows: (in thousands) Operating Leases Finance Leases 2019 $ 315 $ 601 2020 384 915 2021 350 607 2022 360 129 2023 370 — Thereafter 47 — Total cash lease payment 1,826 2,252 Add: expected residual value — 679 Less: imputed interest (279 ) (247 ) Total lease liabilities $ 1,547 $ 2,684

Sidewinder Merger (Tables)

Sidewinder Merger (Tables)	6 Months Ended
	Jun. 30, 2019
Business Combinations [Abstract]
Schedule of Business Acquisitions, by Acquisition	The following table summarizes the components of intangible liabilities, net: (in thousands) June 30, 2019 December 31, 2018 Intangible liabilities $ 3,123 $ 3,123 Accumulated amortization (3,123 ) (2,044 ) Intangible liabilities, net $ — $ 1,079

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	6 Months Ended
	Jun. 30, 2019
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table summarizes revenues from our contracts disaggregated by revenue generating activity contained therein for the three and six months ended June 30, 2019 and 2018 : Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2019 2018 2019 2018 Dayrate drilling $ 48,133 $ 24,447 $ 104,584 $ 48,224 Mobilization 1,177 271 2,437 730 Reimbursables 2,950 1,002 4,554 2,233 Early termination 501 — 501 — Capital modification 62 34 72 194 Intangible 46 — 1,079 — Other 10 — 10 — Total revenue $ 52,879 $ 25,754 $ 113,237 $ 51,381
Summary of Contract with Customer, Asset and Liability	Significant changes in contract assets and contract liabilities balances during the period are as follows: Three Months Ended Six Months Ended (in thousands) Contract Assets Contract Liabilities Contract Assets Contract Liabilities Revenue recognized that was included in contract liabilities at beginning of period $ — $ 574 $ — $ 1,305 Increase in contract liabilities due to cash received, excluding amounts recognized as revenue $ — $ (500 ) $ — $ (661 ) Transferred to receivables from contract assets at beginning of period $ — $ — $ — $ — The following table provides information about receivables, contract assets and contract liabilities related to contracts with customers: (in thousands) June 30, 2019 December 31, 2018 Receivables, which are included in “Accounts receivable, net” $ 35,670 $ 41,987 Contract assets $ — $ — Contract liabilities $ (730 ) $ (1,374 )
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction	The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2019 . The estimated revenue does not include amounts of variable consideration that are constrained. Year Ending December 31, (in thousands) 2019 2020 2021 Total Revenue $ 730 $ — $ — $ 730

Financial Instruments and Fai_2

Financial Instruments and Fair Value (Tables)	6 Months Ended
	Jun. 30, 2019
Fair Value Disclosures [Abstract]
Schedule of fair value of liabilities	The following table summarizes the carrying value and fair value of our long-term debt as of June 30, 2019 and December 31, 2018 . Balances at June 30, 2019 December 31, 2018 (in thousands) Carrying Value Fair Value Carrying Value Fair Value Term Loan Facility $ 130,000 $ 141,496 $ 130,000 $ 131,893 ABL Credit Facility $ — $ — $ 2,566 $ 2,258

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	6 Months Ended
	Jun. 30, 2019
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	Accrued liabilities consisted of the following: (in thousands) June 30, 2019 December 31, 2018 Accrued salaries and other compensation $ 3,157 $ 12,379 Insurance 2,930 5,464 Deferred revenues (contract liabilities) 730 1,374 Property and other taxes 3,224 3,829 Intangible liability — 1,079 Interest 3,370 3,318 Operating lease liability - current 421 — Other 2,225 1,776 $ 16,057 $ 29,219

Long-term Debt (Tables)

Long-term Debt (Tables)	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Schedule of Long-term Debt	Our long-term debt consisted of the following: June 30, December 31, (in thousands) 2019 2018 Term Loan Facility due October 1, 2023 $ 130,000 $ 130,000 ABL Credit Facility due October 1, 2023 — 2,566 Finance and capital lease obligations 2,684 1,235 132,684 133,801 Less: current portion (1,161 ) (587 ) Less: Term Loan Facility deferred financing costs (2,869 ) (3,202 ) Long-term debt $ 128,654 $ 130,012

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2019
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: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2019 2018 2019 2018 Compensation cost recognized: Stock options $ — $ — $ — $ — Restricted stock and restricted stock units 416 718 803 1,362 Total stock-based compensation $ 416 $ 718 $ 803 $ 1,362
Summary of Stock Option Activity and Related Information	A summary of stock option activity and related information for the six months ended June 30, 2019 is as follows: Six Months Ended June 30, 2019 Options Weighted Average Exercise Price Outstanding at January 1, 2019 669,213 $ 12.74 Granted — — Exercised — — Forfeited/expired — — Outstanding at June 30, 2019 669,213 $ 12.74 Exercisable at June 30, 2019 669,213 $ 12.74
Schedule of Restricted Stock Activity	A summary of the status of our time-based restricted stock awards and of changes in our time-based restricted stock awards outstanding for the six months ended June 30, 2019 is as follows: Six Months Ended June 30, 2019 Shares Weighted Outstanding at January 1, 2019 1,385,973 $ 3.22 Granted — — Vested — — Forfeited (129,573 ) 3.22 Outstanding at June 30, 2019 1,256,400 $ 3.22 A summary of the status of our performance-based and market-based restricted stock unit awards and of changes in our restricted stock unit awards outstanding for the six months ended June 30, 2019 is as follows: Six Months Ended June 30, 2019 RSUs Weighted Outstanding at January 1, 2019 — $ — Granted 469,759 1.69 Vested and converted — — Forfeited — — Outstanding at June 30, 2019 469,759 $ 1.69 A summary of the status of our time-based restricted stock unit awards and of changes in our time-based restricted stock unit awards outstanding for the six months ended June 30, 2019 is as follows: Six Months Ended June 30, 2019 RSUs Weighted Outstanding at January 1, 2019 409,607 $ 4.79 Granted 564,994 1.94 Vested and converted — — Forfeited — — Outstanding at June 30, 2019 974,601 $ 3.14

Stockholders_ Equity and Earn_2

Stockholders’ Equity and Earnings (Loss) per Share (Tables)	6 Months Ended
	Jun. 30, 2019
Earnings Per Share [Abstract]
Reconciliation of Numerators and Denominators of Basic and Diluted (Loss) Earnings Per Share	A reconciliation of the numerators and denominators of the basic and diluted losses per share computations is as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands, except per share data) 2019 2018 2019 2018 Net loss (numerator): $ (12,858 ) $ (3,313 ) $ (15,231 ) $ (7,459 ) Loss per share: Basic and diluted $ (0.17 ) $ (0.09 ) $ (0.20 ) $ (0.20 ) Shares (denominator): Weighted average common shares outstanding - basic 75,692 38,253 75,692 38,188 Weighted average common shares outstanding - diluted 75,692 38,253 75,692 38,188

Nature of Operations and Rece_2

Nature of Operations and Recent Events - Operations & Oil and Natural Gas Prices and Drilling Activity (Details)	3 Months Ended					6 Months Ended	12 Months Ended
	Jun. 30, 2019drilling_rig$ / bbl	Dec. 31, 2018$ / bbl	Jun. 30, 2018$ / bbl	Mar. 31, 2016$ / bbl	Jun. 30, 2014$ / bbl	Jun. 30, 2019drilling_rig$ / bbl	Dec. 31, 2016drilling_rig$ / MMBTU	Dec. 31, 2014drilling_rig$ / MMBTU	Dec. 28, 2018drilling_rig
Property, Plant and Equipment [Line Items]
Number of idle rigs	2					2
Market price of oil (in dollars per barrel) | $ / bbl		44.48	77.41	26.19	107.95
Natural gas price (in dollars per MMBtu) | $ / MMBTU							2.52	4.37
Number of oil and natural gas rigs							404	1,930	1,083
AC Powered Rigs
Property, Plant and Equipment [Line Items]
Number of rigs	29					29
Number of idle rigs	1					1
SCR Rigs
Property, Plant and Equipment [Line Items]
Number of rigs	3					3
Number of idle rigs	1					1
Minimum
Property, Plant and Equipment [Line Items]
Market price of oil (in dollars per barrel) | $ / bbl	50					50
Maximum
Property, Plant and Equipment [Line Items]
Market price of oil (in dollars per barrel) | $ / bbl	60

Nature of Operations and Rece_3

Nature of Operations and Recent Events - Announcement Of Merger (Details)	Oct. 01, 2018shares
Business Acquisition [Line Items]
Voting interests acquired (in shares)	36,752,657
Voting interests acquired	100.00%
Sidewinder Drilling, Inc.
Business Acquisition [Line Items]
Voting interests acquired (in shares)	36,752,657
Voting interests acquired	100.00%

Interim Financial Information -

Interim Financial Information - Narrative (Details)	6 Months Ended
	Jun. 30, 2019segment
Accounting Policies [Abstract]
Reportable segments	1

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Thousands	Jan. 01, 2019	Jun. 30, 2019	Dec. 31, 2018
Leases [Abstract]
Finance lease liabilities	$ 1,200	$ 2,684
Finance lease, right-of-use asset	1,300	2,966
Operating lease liabilities	$ 1,700	1,547
Discount rate	8.17%
Operating lease right-of-use assets	$ 900	772
Unamortized lease incentive	800
Right-of-use asset obtained in exchange for finance lease liability	$ 400	$ 2,223
Future total obligations on noncancellable capital and operating leases			$ 3,700
2019			1,400
2020			1,000
2021			500
Thereafter			$ 800

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) - USD ($) $ in Thousands	Jan. 01, 2019	Jun. 30, 2019	Jun. 30, 2019
Leases [Abstract]
Operating lease expense		$ 124	$ 249
Short-term lease expense		1,234	2,427
Variable lease expense		185	271
Finance lease cost:
Amortization of right-of-use assets		314	579
Interest expense on lease liabilities		47	79
Total finance lease expense		361	658
Total lease expenses		$ 1,904	3,605
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases			216
Operating cash flows from finance leases			74
Financing cash flows from finance leases			770
Right-of-use assets obtained or recorded in exchange for lease obligations:
Operating leases			955
Finance leases	$ 400		$ 2,223

Leases - Lease Assets and Liabi

Leases - Lease Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
Operating leases:
Operating lease right-of-use assets	$ 772	$ 900
Accrued liabilities	421		$ 0
Other long-term liabilities	1,126
Total operating lease liabilities	1,547	1,700
Finance leases:
Property and equipment	4,313
Accumulated depreciation	(1,347)
Property and equipment, net	2,966	1,300
Current portion of long-term debt	1,161
Long-term debt	1,523
Total finance lease liabilities	$ 2,684	$ 1,200
Weighted-average remaining lease term
Operating leases	4 years 2 months 12 days
Finance leases	2 years 2 months 12 days
Weighted-average discount rate
Operating leases	8.17%
Finance leases	7.06%

Leases - Lease Maturities (Deta

Leases - Lease Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jan. 01, 2019
Operating Leases
2019	$ 315
2020	384
2021	350
2022	360
2023	370
Thereafter	47
Total cash lease payment	1,826
Less: imputed interest	(279)
Total lease liabilities	1,547	$ 1,700
Finance Leases
2019	601
2020	915
2021	607
2022	129
2023	0
Thereafter	0
Total cash lease payment	2,252
Add: expected residual value	679
Less: imputed interest	(247)
Total lease liabilities	$ 2,684	$ 1,200

Sidewinder Merger (Details)

Sidewinder Merger (Details) $ in Thousands	Oct. 01, 2018USD ($)drilling_rigshares	Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)
Business Acquisition [Line Items]
Voting interests acquired	100.00%
Voting interests acquired (in shares) | shares	36,752,657
Value of voting interests acquired	$ 173,100
Indebtedness assumed	$ 58,500
Merger-related expenses		$ 1,287	$ 443	$ 2,368	$ 443
Revenues		52,879	25,754	113,237	51,381
Intangible
Business Acquisition [Line Items]
Revenues		$ 46	$ 0	$ 1,079	$ 0
Rigs, Mechanical | Sidewinder Drilling, Inc.
Business Acquisition [Line Items]
Number of rigs | drilling_rig	11
Sidewinder Drilling, Inc.
Business Acquisition [Line Items]
Voting interests acquired	100.00%
Voting interests acquired (in shares) | shares	36,752,657
Contingent consideration	$ 15,900

Sidewinder Merger Table (Detail

Sidewinder Merger Table (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Business Combinations [Abstract]
Intangible liabilities	$ 3,123	$ 3,123
Accumulated amortization	(3,123)	(2,044)
Intangible liabilities, net	$ 0	$ 1,079

Revenue From Contracts with C_3

Revenue From Contracts with Customers - Disaggregation of Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Disaggregation of Revenue [Line Items]
Revenues	$ 52,879	$ 25,754	$ 113,237	$ 51,381
Dayrate drilling
Disaggregation of Revenue [Line Items]
Revenues	48,133	24,447	104,584	48,224
Mobilization
Disaggregation of Revenue [Line Items]
Revenues	1,177	271	2,437	730
Reimbursables
Disaggregation of Revenue [Line Items]
Revenues	2,950	1,002	4,554	2,233
Early termination
Disaggregation of Revenue [Line Items]
Revenues	501	0	501	0
Capital modification
Disaggregation of Revenue [Line Items]
Revenues	62	34	72	194
Intangible
Disaggregation of Revenue [Line Items]
Revenues	46	0	1,079	0
Other
Disaggregation of Revenue [Line Items]
Revenues	$ 10	$ 0	$ 10	$ 0

Revenue from Contracts with C_4

Revenue from Contracts with Customers - Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Revenue from Contract with Customer [Abstract]
Receivables, which are included in “Accounts receivable, net”	$ 35,670	$ 41,987
Contract assets	0	0
Contract liabilities	$ (730)	$ (1,374)

Revenue from Contracts with C_5

Revenue from Contracts with Customers - Assets and Liabilities Rollforward (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Revenue from Contract with Customer [Abstract]
Revenue recognized that was included in contract liabilities at beginning of period	$ 574	$ 1,305
Increase in contract liabilities due to cash received, excluding amounts recognized as revenue	(500)	(661)
Transferred to receivables from contract assets at beginning of period	$ 0	$ 0

Revenue from Contracts with C_6

Revenue from Contracts with Customers - Remaining Performance Obligation (Details) $ in Thousands	Jun. 30, 2019USD ($)
Revenue from Contract with Customer [Abstract]
Performance obligations, expected to be satisfied	$ 730
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01
Revenue from Contract with Customer [Abstract]
Performance obligations, expected to be satisfied	$ 730
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Revenue from Contract with Customer [Abstract]
Performance obligations, expected to be satisfied	$ 0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue from Contract with Customer [Abstract]
Performance obligations, expected to be satisfied	$ 0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year

Revenue from Contracts with C_7

Revenue from Contracts with Customers Revenue from Contracts with Customers (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Revenue from Contract with Customer [Abstract]
Capitalized contract cost, current	$ 1	$ 1	$ 1.1
Capitalized contract cost, increase	0.9	1.5
Amortization of contract costs	$ 0.9	$ 1.6

Financial Instruments and Fai_3

Financial Instruments and Fair Value (Details) $ in Thousands	Jun. 30, 2019USD ($)	Dec. 31, 2018USD ($)
Term Loan Facility | Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	$ 130,000	$ 130,000
Term Loan Facility | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	141,496	131,893
ABL Credit Facility | Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	2,566
ABL Credit Facility | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	$ 0	$ 2,258
Discount rate
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, measurement input	0.071

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Payables and Accruals [Abstract]
Accrued salaries and other compensation	$ 3,157	$ 12,379
Insurance	2,930	5,464
Deferred revenues (contract liabilities)	730	1,374
Property and other taxes	3,224	3,829
Intangible liability	0	1,079
Interest	3,370	3,318
Operating lease liability - current	421	0
Other	2,225	1,776
Accrued liabilities	$ 16,057	$ 29,219

Long-term Debt - Schedule of Lo

Long-term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Long-term debt, including current portion	$ 132,684	$ 133,801
Less: current portion	(1,161)	(587)
Less: Term Loan Facility deferred financing costs	(2,869)	(3,202)
Long-term debt	128,654	130,012
Capital lease obligations
Debt Instrument [Line Items]
Long-term debt, including current portion	2,684	1,235
Term Loan Facility
Debt Instrument [Line Items]
Long-term debt, including current portion	130,000	130,000
ABL Credit Facility
Debt Instrument [Line Items]
Long-term debt, including current portion	$ 0	$ 2,566

Long-term Debt - Narrative (Det

Long-term Debt - Narrative (Details)	Oct. 01, 2018USD ($)	Jul. 01, 2019USD ($)	Jun. 30, 2019USD ($)
Debt Instrument [Line Items]
Ownership percentage			30.00%
Debt Instrument, collateral amount			$ 2,500,000
Line of credit
Debt Instrument [Line Items]
Weighted average interest rate			10.09%
Term Loan Facility
Debt Instrument [Line Items]
Face amount	$ 130,000,000
Term Loan Facility | Line of credit
Debt Instrument [Line Items]
Face amount	130,000,000
Liquidity covenant	$ 10,000,000
Fixed charge coverage ratio	1
Term Loan Facility | Line of credit | LIBOR
Debt Instrument [Line Items]
Interest rate, basis spread (as a percent)	7.50%
Term Loan Facility | Line of credit | Prime Rate
Debt Instrument [Line Items]
Interest rate, basis spread (as a percent)	6.50%
Delayed Draw Term Loan
Debt Instrument [Line Items]
Face amount	$ 15,000,000
Delayed Draw Term Loan | Line of credit
Debt Instrument [Line Items]
Face amount	15,000,000
ABL Credit Facility And Delayed Draw Facility | Line of credit
Debt Instrument [Line Items]
Minimum availability	$ 5,000,000
ABL Credit Facility | Line of credit
Debt Instrument [Line Items]
Fixed charge coverage ratio	1
Line of credit facility, borrowing base threshold, percentage	85.00%
Commitment fee on unused capacity (as a percent)	0.375%
Line of credit facility, unused commitment fee percentage, revolver contingency	0.25%
Unused commitment fee percentage, maximum credit threshold	50.00%
Fixed charge coverage ratio, maximum credit threshold	10.00%
Borrowing base			$ 24,200,000
ABL Credit Facility | Line of credit | Federal funds, effective rate
Debt Instrument [Line Items]
Interest rate, basis spread (as a percent)	0.05%
ABL Credit Facility | Line of credit | LIBOR
Debt Instrument [Line Items]
Interest rate, basis spread (as a percent)	1.00%
ABL Credit Facility | Revolving credit facility | Line of credit
Debt Instrument [Line Items]
Revolving credit facility, maximum borrowing capacity	$ 40,000,000		40,000,000
Remaining availability			$ 21,700,000
ABL Credit Facility | Letter of Credit | Line of credit
Debt Instrument [Line Items]
Revolving credit facility, maximum borrowing capacity	$ 7,500,000
Minimum | ABL Credit Facility | Line of credit | LIBOR
Debt Instrument [Line Items]
Interest rate, basis spread (as a percent)	2.00%
Minimum | ABL Credit Facility | Line of credit | Wells Fargo Prime Rate
Debt Instrument [Line Items]
Interest rate, basis spread (as a percent)	1.00%
Maximum | Line of credit | Wells Fargo Prime Rate
Debt Instrument [Line Items]
Interest rate, basis spread (as a percent)	1.50%
Maximum | Term Loan Facility | Line of credit | Federal funds, effective rate
Debt Instrument [Line Items]
Interest rate, basis spread (as a percent)	0.05%
Maximum | Term Loan Facility | Line of credit | LIBOR
Debt Instrument [Line Items]
Interest rate, basis spread (as a percent)	1.00%
Maximum | ABL Credit Facility | Line of credit | LIBOR
Debt Instrument [Line Items]
Interest rate, basis spread (as a percent)	2.50%
Independence Contract Drilling, Inc. | MSD Partners
Debt Instrument [Line Items]
Ownership percentage			30.00%
Pro Forma | ABL Credit Facility | Revolving credit facility | Line of credit
Debt Instrument [Line Items]
Remaining availability			$ 23,800,000
Subsequent Event
Debt Instrument [Line Items]
Debt Instrument, collateral amount		$ 400,000

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation capitalized due to rig construction activity	$ 0	$ 0	$ 0	$ 0
Options, granted (in shares)			0	0
Options, exercisable (in shares)	669,213		669,213
Remaining contractual life (years)			2 years 9 months
Weighted-average exercise price (in dollars per share)	$ 12.74		$ 12.74
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs	$ 3,600,000		$ 3,600,000
Period for recognition			2 years 4 months
Restricted stock | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (years)			3 years
Restricted stock | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (years)			5 years
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (years)			3 years
Unrecognized compensation costs	$ 2,500,000		$ 2,500,000
Period for recognition			1 year 2 months 18 days
Exercise price (in dollars per share)	$ 0		$ 0
Performance-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs	$ 800,000		$ 800,000
Period for recognition			1 year 4 months 24 days
Exercise price (in dollars per share)	$ 1.45		$ 1.45
Risk free interest rate			1.86%
Expected volatility rate			58.20%
Expected dividend rate			0.00%
2019 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)	5,500,000		5,500,000
Number of shares available for future awards (in shares)	3,995,488		3,995,488

Stock-Based Compensation - Comp

Stock-Based Compensation - Compensation Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	$ 416	$ 718	$ 803	$ 1,362
Stock options
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	0	0	0	0
Restricted stock and restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	$ 416	$ 718	$ 803	$ 1,362

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Option Activity (Details) - $ / shares	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Options
Options, beginning balance (in shares)	669,213
Options, granted (in shares)	0	0
Options, exercised (in shares)	0
Options, forfeited/expired (in shares)	0
Options, ending balance (in shares)	669,213
Options, exercisable (in shares)	669,213
Weighted Average Exercise Price
Weighted average exercise price, beginning balance (in dollars per share)	$ 12.74
Weighted average exercise price, granted (in dollars per share)	0
Weighted average exercise price, exercised (in dollars per share)	0
Weighted average exercise price, forfeited/expired (in dollars per share)	0
Weighted average exercise price, ending balance (in dollars per share)	12.74
Weighted-average exercise price, exercisable (in dollars per share)	$ 12.74

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Stock Activity (Details)	6 Months Ended
	Jun. 30, 2019$ / sharesshares
Restricted stock
Shares
Number, beginning balance (in shares) | shares	1,385,973
Number, granted (in shares) | shares	0
Number, vested and converted (in shares) | shares	0
Number, forfeited (in shares) | shares	(129,573)
Number, ending balance (in shares) | shares	1,256,400
Weighted Average Grant-Date Fair Value Per Share
Weighted average grant date fair value per share, beginning balance (in dollars per share) | $ / shares	$ 3.22
Weighted average grant date fair value per share, granted (in dollars per share) | $ / shares	0
Weighted average grant date fair value per share, vested and converted (in dollars per share) | $ / shares	0
Weighted average grant date fair value per share, forfeited (in dollars per share) | $ / shares	3.22
Weighted average grant date fair value per share, ending balance (in dollars per share) | $ / shares	$ 3.22
RSUs
Shares
Number, beginning balance (in shares) | shares	409,607
Number, granted (in shares) | shares	564,994
Number, vested and converted (in shares) | shares	0
Number, forfeited (in shares) | shares	0
Number, ending balance (in shares) | shares	974,601
Weighted Average Grant-Date Fair Value Per Share
Weighted average grant date fair value per share, beginning balance (in dollars per share) | $ / shares	$ 4.79
Weighted average grant date fair value per share, granted (in dollars per share) | $ / shares	1.94
Weighted average grant date fair value per share, vested and converted (in dollars per share) | $ / shares	0
Weighted average grant date fair value per share, forfeited (in dollars per share) | $ / shares	0
Weighted average grant date fair value per share, ending balance (in dollars per share) | $ / shares	$ 3.14
Performance-based RSUs
Shares
Number, beginning balance (in shares) | shares	0
Number, granted (in shares) | shares	469,759
Number, vested and converted (in shares) | shares	0
Number, forfeited (in shares) | shares	0
Number, ending balance (in shares) | shares	469,759
Weighted Average Grant-Date Fair Value Per Share
Weighted average grant date fair value per share, beginning balance (in dollars per share) | $ / shares	$ 0
Weighted average grant date fair value per share, granted (in dollars per share) | $ / shares	1.69
Weighted average grant date fair value per share, vested and converted (in dollars per share) | $ / shares	0
Weighted average grant date fair value per share, forfeited (in dollars per share) | $ / shares	0
Weighted average grant date fair value per share, ending balance (in dollars per share) | $ / shares	$ 1.69

Stockholders_ Equity and Earn_3

Stockholders’ Equity and Earnings (Loss) per Share - Narrative (Details) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares outstanding (in shares)					77,078,252
Common stock, par value (usd per share)	$ 0.01		$ 0.01			$ 0.01
Treasury stock, number of shares held (in shares)	520,554		520,554			520,554
Shares authorized (in shares)	200,000,000		200,000,000			200,000,000
Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	669,213	682,950	669,213	682,950
RSU's
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	1,444,360	1,226,173	1,444,360	1,226,173
Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares outstanding (in shares)	76,948,679	38,252,765	76,948,679	38,252,765		77,078,252	38,252,765	37,985,225

Stockholders_ Equity and Earn_4

Stockholders’ Equity and Earnings (Loss) per Share - Basic and Diluted Computation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Net loss (numerator):
Net loss	$ (12,858)	$ (2,373)	$ (3,313)	$ (4,146)	$ (15,231)	$ (7,459)
Loss per share:
Basic and diluted (in dollars per share)	$ (0.17)		$ (0.09)		$ (0.20)	$ (0.20)
Shares (denominator):
Weighted average common shares outstanding - basic (in shares)	75,692		38,253		75,692	38,188
Weighted average common shares outstanding - diluted (in shares)	75,692		38,253		75,692	38,188

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Effective income tax rate (as a percent)	(29.10%)	0.60%	(2.40%)	0.90%

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	Jun. 30, 2019USD ($)
Commitments and Contingencies Disclosure [Abstract]
Outstanding purchase commitments	$ 10.5

Related Parties (Details)

Related Parties (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	Oct. 01, 2018
Ownership percentage	30.00%	30.00%
Term Loan Facility
Face amount			$ 130,000,000
Interest payments	$ 3,300,000	$ 6,600,000
Delayed Draw Term Loan
Face amount			$ 15,000,000