Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-36590 | |
Entity Registrant Name | Independence Contract Drilling, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 37-1653648 | |
Entity Address, Address Line One | 20475 State Highway 249 | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77070 | |
City Area Code | 281 | |
Local Phone Number | 598-1230 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | ICD | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 6,518,180 | |
Entity Central Index Key | 0001537028 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 5,440 | $ 12,279 |
Accounts receivable, net | 10,340 | 10,023 |
Inventories | 1,071 | 1,038 |
Assets held for sale | 507 | 0 |
Prepaid expenses and other current assets | 3,920 | 4,102 |
Total current assets | 21,278 | 27,442 |
Property, plant and equipment, net | 373,749 | 382,239 |
Other long-term assets, net | 3,271 | 3,528 |
Total assets | 398,298 | 413,209 |
Liabilities | ||
Current portion of long-term debt | 12,093 | 7,637 |
Accounts payable | 4,837 | 4,072 |
Accrued liabilities | 9,472 | 10,723 |
Total current liabilities | 26,402 | 22,432 |
Long-term debt | 132,954 | 137,633 |
Merger consideration payable to an affiliate | 2,902 | 2,902 |
Deferred income taxes, net | 539 | 505 |
Other long-term liabilities | 2,655 | 2,704 |
Total liabilities | 165,452 | 166,176 |
Commitments and contingencies (Note 12) | ||
Stockholders’ equity | ||
Common stock, $0.01 par value, 50,000,000 shares authorized; 6,594,158 and 6,254,396 shares issued, respectively, and 6,515,580 and 6,175,818 shares outstanding, respectively | 65 | 62 |
Additional paid-in capital | 519,783 | 517,948 |
Accumulated deficit | (283,089) | (267,064) |
Treasury stock, at cost, 78,578 shares and 78,578 shares, respectively | (3,913) | (3,913) |
Total stockholders’ equity | 232,846 | 247,033 |
Total liabilities and stockholders’ equity | $ 398,298 | $ 413,209 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Stockholders’ equity | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (shares) | 6,594,158 | 6,254,396 |
Common stock, shares outstanding (shares) | 6,515,580 | 6,175,818 |
Treasury stock (shares) | 78,578 | 78,578 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Revenues | $ 15,542 | $ 38,494 |
Costs and expenses | ||
Operating costs | 14,541 | 30,229 |
Selling, general and administrative | 3,686 | 3,761 |
Severance expense | 0 | 1,076 |
Depreciation and amortization | 9,989 | 11,516 |
Asset impairment | 43 | 16,619 |
Gain on disposition of assets, net | (435) | (46) |
Total costs and expenses | 27,824 | 63,155 |
Operating loss | (12,282) | (24,661) |
Interest expense | (3,709) | (3,604) |
Loss before income taxes | (15,991) | (28,265) |
Income tax expense (benefit) | 34 | (42) |
Net loss | $ (16,025) | $ (28,223) |
Loss per share: | ||
Basic and diluted (in dollars per share) | $ (2.58) | $ (7.53) |
Weighted average number of common shares outstanding: | ||
Basic and diluted (in shares) | 6,215 | 3,750 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Treasury Stock |
Beginning balance (shares) at Dec. 31, 2019 | 3,812,050 | ||||
Beginning balance at Dec. 31, 2019 | $ 331,596 | $ 38 | $ 505,831 | $ (170,426) | $ (3,847) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
RSUs vested, net of shares withheld for taxes (shares) | 11,941 | ||||
RSUs vested, net of shares withheld for taxes | (26) | (26) | |||
Purchase of treasury stock (shares) | (14,443) | ||||
Purchase of treasury stock | (66) | (66) | |||
Stock-based compensation | 570 | 570 | |||
Net loss | (28,223) | (28,223) | |||
Ending balance (shares) at Mar. 31, 2020 | 3,809,548 | ||||
Ending balance at Mar. 31, 2020 | 303,851 | $ 38 | 506,375 | (198,649) | (3,913) |
Beginning balance (shares) at Dec. 31, 2020 | 6,175,818 | ||||
Beginning balance at Dec. 31, 2020 | 247,033 | $ 62 | 517,948 | (267,064) | (3,913) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
RSUs vested, net of shares withheld for taxes (shares) | 25,285 | ||||
RSUs vested, net of shares withheld for taxes | (11) | (11) | |||
Issuance of common stock through at-the-market facility, net of offering costs (shares) | 140,377 | ||||
Issuance of common stock through at-the-market facility, net of offering costs | 521 | $ 1 | 520 | ||
Issuance of common stock under purchase agreement (in shares) | 174,100 | ||||
Issuance of common stock under purchase agreement | 874 | $ 2 | 872 | ||
Stock-based compensation | 454 | 454 | |||
Net loss | (16,025) | (16,025) | |||
Ending balance (shares) at Mar. 31, 2021 | 6,515,580 | ||||
Ending balance at Mar. 31, 2021 | $ 232,846 | $ 65 | $ 519,783 | $ (283,089) | $ (3,913) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Cash flows from operating activities | |||
Net loss | $ (16,025) | $ (28,223) | |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities | |||
Depreciation and amortization | 9,989 | 11,516 | |
Asset impairment | 43 | 16,619 | |
Stock-based compensation | 537 | 570 | |
Gain on disposition of assets, net | (435) | (46) | |
Deferred income taxes | 34 | (42) | |
Amortization of deferred financing costs | 279 | 204 | |
Bad debt expense | 0 | 16 | |
Changes in operating assets and liabilities | |||
Accounts receivable | (317) | 8,925 | |
Inventories | (33) | (27) | |
Prepaid expenses and other assets | 323 | (462) | |
Accounts payable and accrued liabilities | (685) | (5,959) | |
Net cash (used in) provided by operating activities | (6,290) | 3,091 | |
Cash flows from investing activities | |||
Purchases of property, plant and equipment | (1,742) | (9,139) | |
Proceeds from the sale of assets | 654 | 628 | |
Collection of principal on note receivable | 0 | 145 | |
Net cash used in investing activities | (1,088) | (8,366) | |
Cash flows from financing activities | |||
Borrowings under Revolving ABL Credit Facility | 0 | 11,038 | |
Repayments under Revolving ABL Credit Facility | (8) | (38) | |
Proceeds from issuance of common stock | $ 11,000 | ||
Purchase of treasury stock | 0 | (66) | |
RSUs withheld for taxes | (11) | (26) | |
Payments for finance lease obligations | (837) | (1,086) | |
Net cash provided by financing activities | 539 | 9,822 | |
Net (decrease) increase in cash and cash equivalents | (6,839) | 4,547 | |
Cash and cash equivalents | |||
Beginning of period | 12,279 | 5,206 | 5,206 |
End of period | 5,440 | 9,753 | $ 12,279 |
Supplemental disclosure of cash flow information | |||
Cash paid during the period for interest | 3,171 | 3,541 | |
Supplemental disclosure of non-cash investing and financing activities | |||
Change in property, plant and equipment purchases in accounts payable | 70 | (5,285) | |
Additions to property, plant and equipment through finance leases | 376 | 55 | |
Extinguishment of finance lease obligations from sale of assets classified as finance leases | 0 | (204) | |
Transfer of assets from held and used to held for sale | (550) | 0 | |
ATM Offering | |||
Cash flows from financing activities | |||
Proceeds from issuance of common stock | 521 | 0 | |
Common Stock Purchase Agreement | |||
Cash flows from financing activities | |||
Proceeds from issuance of common stock | $ 874 | $ 0 |
Nature of Operations and Recent
Nature of Operations and Recent Events | 3 Months Ended |
Mar. 31, 2021 | |
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. 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. COVID-19 Pandemic and Market Conditions Update On January 30, 2020, the World Health Organization (“WHO”) announced a global health emergency because of a new strain of coronavirus (“COVID-19”) and the risks to the international community as the virus spread globally. In March 2020, the WHO classified the COVID-19 outbreak as a pandemic, based on the rapid increase in exposure globally. The continued spread of the COVID-19 virus and the responses taken to try to contain the virus, such as travel bans and restrictions, quarantines, shelter in place orders, and shutdowns, caused significant declines in global demand for crude oil. This reduction in demand occurred concurrent with the initiation of a crude oil price war between members of the Organization of the Petroleum Exporting Countries (“OPEC”) and Russia (collectively, the “OPEC+” group). Even with the production cuts announced by the OPEC+ group and others on April 9, 2020, and the cessation to the crude oil price war, crude oil inventories continued to rise and to test storage capacity and logistics networks. These factors led to a collapse in oil prices, with the WTI price for May 2020 delivery closing at negative $37.63 per barrel on April 20, 2020. Oil prices have recently recovered with the WTI price reaching $63.33 on April 19, 2021 supported by production cuts by OPEC+. The long-term effects of the pandemic on production and demand are unknown at this time. While vaccinations have become available and made progress in certain regions during the first quarter of 2021, considerable uncertainty remains regarding ongoing measures to contain the virus, including travel restrictions, as well as uncertainty on how long OPEC+ will continue to maintain current production cuts. Accordingly, we cannot predict when worldwide supply and demand for oil will stabilize. In response to these adverse market conditions and uncertainty, our customers reduced planned capital expenditures and drilling activity throughout 2020. During the first quarter of 2020, our operating rig count reached a peak of 22 rigs and temporarily reached a low of three rigs during the third quarter of 2020. During the third quarter, oil and natural gas prices began to stabilize, and demand for our products began to modestly improve from their historic lows, which allowed us to reactivate additional rigs during the back half of 2020. As of April 30, 2021, we had 13 contracted rigs. However, due to the lack of visibility and confidence towards customer intentions and the unknown future impacts of COVID-19 and changes to OPEC+ production cuts on economic conditions and oil and gas demand and drilling activity, we cannot assure you that we will be able to maintain this operating rig count or that our operating rig count will continue to improve in the future. Two contracts that expired at the end of 2020 had higher dayrates than prevailing spot rates. As a result, although our operating rig count has been increasing, these rigs are being contracted at prevailing market rates that remain depressed, and we expect to see our average revenue per day decline. Due to these rapidly declining market conditions, we took the following actions at the end of the first quarter of 2020 in order to reduce our cost structure: • Salary or compensation reductions for substantially all our employees, including members of executive management; • Suspension of all cash-based incentive compensation, including all members of executive management; • Reduced the number of executive management positions by two; • Reduced the number of directors from seven to five, which became effective following director elections at our 2020 Annual Meeting of Stockholders; • Annual compensation reductions for our directors; and • Reduced headcount significantly for non-field-based personnel. On March 27, 2020, President Trump signed into law the “Coronavirus Aid, Relief, and Economic Security (CARES) Act.” The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations, increased limitations on qualified charitable contributions, and technical corrections to tax depreciation methods for qualified improvement property. The social security deferral program ended December 31, 2020. We deferred $0.8 million of employer side social security payments during the year ended December 31, 2020. The CARES Act did not have a material impact on our income taxes. Management will continue to monitor future developments and interpretations for any further impacts on our financial condition, results of operations, or liquidity. We cannot predict the length of time that the market disruptions resulting from the COVID-19 pandemic will continue; or when, or if, oil and gas prices and demand for our contract drilling services will decline, continue to improve or return to pre-COVID-19 levels. The extent to which our operating and financial results are affected by the COVID-19 pandemic will depend on various factors and consequences beyond our control, such as the duration and scope of the pandemic; additional actions by businesses and governments in response to the pandemic; and the speed and effectiveness of responses to combat the virus. As a result, our business, operating results and financial conditions are subject to various risks, many of which are aggravated as a result of the declining market conditions and significant uncertainty caused by the COVID-19 pandemic. ATM Offering On June 5, 2020, we entered into an equity distribution agreement (the “Agreement”) with Piper Sandler & Co. (the “Agent”), through its Simmons Energy division. Pursuant to the Agreement, we were able to offer and sell through the Agent shares of our common stock, par value $0.01 per share, having an aggregate offering price of up to $11,000,000 (the “Shares”). We issued and sold approximately $11 million in shares of common stock during 2020. On March 8, 2021, in conjunction with the equity distribution agreement entered into on June 5, 2020, our board of directors authorized an additional $2.2 million in shares of common stock to be sold in transactions that are deemed to be “at the market offerings.” As of March 31, 2021, we raised gross proceeds of $0.7 million from the sale of shares in the offering. Common Stock Purchase Agreement On November 11, 2020, we entered into a Common Stock Purchase Agreement (the “Commitment Purchase Agreement”) and a Registration Rights Agreement (the “Registration Rights Agreement”) with Tumim Stone Capital LLC (“Tumim”). Pursuant to the Commitment Purchase Agreement, the Company has the right to sell to Tumim up to $5,000,000 (the “Total Commitment”) in shares of its common stock, par value $0.01 per share (the “Shares”) (subject to certain conditions and limitations) from time to time during the term of the Commitment Purchase Agreement. Sales of common stock pursuant to the Commitment Purchase Agreement, and the timing of any sales, are solely at our option and we are under no obligation to sell securities pursuant to this arrangement. Shares may be sold by the Company pursuant to this arrangement over a period of up to 24 months, commencing on December 1, 2020. Under the applicable rules of the New York Stock Exchange (“NYSE”), in no event may we issue more than 1,234,546 shares of our common stock, which represents 19.99% of the shares of our common stock outstanding immediately prior to the execution of the Commitment Purchase Agreement (the “Exchange Cap”), to Tumim under the Commitment Purchase Agreement, unless (i) we obtain stockholder approval to issue shares of our common stock in excess of the Exchange Cap or (ii) the price of all applicable sales of our common stock to Tumim under the Commitment Purchase Agreement equals or exceeds the lower of (A) the official closing price on the NYSE immediately preceding the delivery by us of an applicable purchase notice under the Commitment Purchase Agreement and (B) the average of the closing prices of our common stock on the NYSE for the five business days immediately preceding the delivery by us of an applicable purchase notice under the Commitment Purchase Agreement, in each case plus $0.128, such that the transactions contemplated by the Commitment Purchase Agreement are exempt from the Exchange Cap limitation under applicable NYSE rules. In any event, the Commitment Purchase Agreement specifically provides that we may not issue or sell any shares of our common stock under the Commitment Purchase Agreement if such issuance or sale would breach any applicable rules or regulations of the NYSE. The Company has also limited the aggregate number of shares of common stock reserved for issuance under the Commitment Purchase Agreement to 1,500,000 shares without subsequent board approval. In all instances, we may not sell shares of our common stock to Tumim under the Commitment Purchase Agreement if it would result in Tumim beneficially owning more than 4.99% of the common stock (the “Beneficial Ownership Cap”). The proceeds under the Commitment Purchase Agreement will depend on the frequency and prices at which the Company sells shares of its stock to Tumim. We determined that the right to sell additional shares represents a freestanding put option under ASC 815 Derivatives and Hedging, but has a fair value of zero, and therefore no additional accounting was required. Transaction costs of $0.5 million, incurred in connection with entering into the Purchase Agreement were expensed as selling, general and administrative expense during the fourth quarter of 2020. During the first quarter of 2021, we sold 174,100 shares for a total of $0.9 million in proceeds. |
Interim Financial Information
Interim Financial Information | 3 Months Ended |
Mar. 31, 2021 | |
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 consolidated financial statements should be read along with our audited consolidated financial statements for the year ended December 31, 2020, included in our Annual Report on Form 10-K for the year ended December 31, 2020. 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 months ended March 31, 2021 may not be indicative of results that will be realized for the full year ending December 31, 2021. 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. Asset Impairment During the first quarter of 2021, our management committed to a plan to sell one of our field location facilities. As a result, we reclassified an aggregate $0.5 million of land and buildings to assets held for sale on our March 31, 2021 balance sheet and recognized a $43 thousand impairment charge representing the difference between the carrying value and the fair value, less the costs to sell the related property. During the three months ended March 31, 2020, as a result of the rapidly deteriorating market conditions described in “ COVID-19 Pandemic and Market Conditions Update ”, we concluded that a triggering event occurred and, accordingly, an interim asset impairment test was performed as of March 31, 2020. As a result, we further impaired $3.3 million associated with the decline in the market value of our assets held for sale and $13.3 million related to the remaining assets on rigs removed from our marketed fleet, as well as certain other component equipment and inventory. Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. In October 2019, the FASB approved a proposal which grants smaller reporting companies additional time to implement FASB standards on current expected credit losses (CECL) to January 2023. As a smaller reporting company, we will defer adoption of ASU 2016-13 until January 2023. We are currently evaluating the impact this guidance will have on our consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes , to simplify the accounting for income taxes. The amendments in the update are effective for public companies for interim and annual periods beginning after December 15, 2020, with early adoption permitted. We adopted this guidance on January 1, 2021 and there has been no material impact on our consolidated financial statements. On April 1, 2020, we adopted the standard, ASU 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform (e.g., discontinuation of LIBOR) if certain criteria are met. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform to provide clarifying guidance regarding the scope of Topic 848, effective immediately. As of March 31, 2021, we have not yet elected any optional expedients provided in the standard. We will apply the accounting relief as relevant contract and hedge accounting relationship modifications are made during the reference rate reform transition period. We do not expect the standard to have a material impact on our consolidated financial statements. In August 2020, the FASB issued ASU No. 2020-06, Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity , to simplify the accounting for convertible instruments by removing certain separation models in Subtopic 470-20, Debt-Debt with Conversion and Other Options, for convertible instruments. The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2021, with early adoption permitted. We are currently evaluating the impact this guidance will have on our consolidated financial statements. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The following table summarizes revenues from our contracts disaggregated by revenue generating activity contained therein for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, (in thousands) 2021 2020 Dayrate drilling $ 14,261 $ 34,478 Mobilization 522 1,541 Reimbursables 759 2,448 Early termination — 27 Total revenue $ 15,542 $ 38,494 The following table provides information about receivables, contract assets and contract liabilities related to contracts with customers: (in thousands) March 31, 2021 December 31, 2020 Receivables, which are included in “Accounts receivable, net” $ 10,261 $ 9,772 Contract assets, which are included in "Prepaid expenses and other current assets" $ 32 $ — Contract liabilities, which are included in “Accrued liabilities - deferred revenue” $ (208) $ (119) Significant changes in contract assets and contract liabilities balances during the period are as follows: Three Months Ended March 31, (in thousands) 2021 2020 Revenue recognized that was included in contract liabilities at beginning of period $ 119 $ 311 Decrease (increase) in contract liabilities due to cash received, excluding amounts recognized as revenue $ (208) $ (505) 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 March 31, 2021. The estimated revenue does not include amounts of variable consideration that are constrained. Year Ending December 31, (in thousands) 2021 2022 2023 2024 Revenue $ 217 $ — $ — $ — 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 $0.2 million and $0.1 million on our consolidated balance sheets at March 31, 2021 and December 31, 2020, respectively. During the three months ended March 31, 2021, contract costs increased by $0.5 million, and we amortized $0.4 million of contract costs. During the three months ended March 31, 2020, contract costs increased by $1.2 million, and we amortized $0.8 million of contract costs. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases 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 four years. The components of lease expense were as follows: Three Months Ended March 31, (in thousands) 2021 2020 Operating lease expense $ 235 $ 149 Short-term lease expense 550 1,281 Variable lease expense 97 134 Finance lease expense: Amortization of right-of-use assets $ 259 $ 392 Interest expense on lease liabilities 166 195 Total finance lease expense 425 587 Total lease expense $ 1,307 $ 2,151 Supplemental cash flow information related to leases is as follows: Three Months Ended March 31, (in thousands) 2021 2020 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 241 $ 160 Operating cash flows from finance leases $ 164 $ 194 Financing cash flows from finance leases $ 837 $ 1,086 Right-of-use assets obtained or recorded in exchange for lease obligations: Operating leases $ — $ 178 Finance leases $ 376 $ 54 Supplemental balance sheet information related to leases is as follows: (in thousands) March 31, 2021 December 31, 2020 Operating leases: Other long-term assets, net $ 1,966 $ 2,150 Accrued liabilities $ 908 $ 964 Other long-term liabilities 1,544 1,729 Total operating lease liabilities $ 2,452 $ 2,693 Finance leases: Property, plant and equipment $ 14,076 $ 13,700 Accumulated depreciation (1,239) (981) Property, plant and equipment, net $ 12,837 $ 12,719 Current portion of long-term debt $ 3,522 $ 3,351 Long-term debt 3,940 4,570 Total finance lease liabilities $ 7,462 $ 7,921 Weighted-average remaining lease term Operating leases 3.0 years 3.2 years Finance leases 1.8 years 2.0 years Weighted-average discount rate Operating leases 10.68 % 8.25 % Finance leases 8.89 % 8.88 % Maturities of lease liabilities at March 31, 2021 were as follows: (in thousands) Operating Leases Finance Leases 2021 $ 888 $ 3,043 2022 840 4,377 2023 760 662 2024 372 74 2025 — — Thereafter — — Total cash lease payment 2,860 8,156 Less: imputed interest (408) (694) Total lease liabilities $ 2,452 $ 7,462 |
Leases | Leases 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 four years. The components of lease expense were as follows: Three Months Ended March 31, (in thousands) 2021 2020 Operating lease expense $ 235 $ 149 Short-term lease expense 550 1,281 Variable lease expense 97 134 Finance lease expense: Amortization of right-of-use assets $ 259 $ 392 Interest expense on lease liabilities 166 195 Total finance lease expense 425 587 Total lease expense $ 1,307 $ 2,151 Supplemental cash flow information related to leases is as follows: Three Months Ended March 31, (in thousands) 2021 2020 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 241 $ 160 Operating cash flows from finance leases $ 164 $ 194 Financing cash flows from finance leases $ 837 $ 1,086 Right-of-use assets obtained or recorded in exchange for lease obligations: Operating leases $ — $ 178 Finance leases $ 376 $ 54 Supplemental balance sheet information related to leases is as follows: (in thousands) March 31, 2021 December 31, 2020 Operating leases: Other long-term assets, net $ 1,966 $ 2,150 Accrued liabilities $ 908 $ 964 Other long-term liabilities 1,544 1,729 Total operating lease liabilities $ 2,452 $ 2,693 Finance leases: Property, plant and equipment $ 14,076 $ 13,700 Accumulated depreciation (1,239) (981) Property, plant and equipment, net $ 12,837 $ 12,719 Current portion of long-term debt $ 3,522 $ 3,351 Long-term debt 3,940 4,570 Total finance lease liabilities $ 7,462 $ 7,921 Weighted-average remaining lease term Operating leases 3.0 years 3.2 years Finance leases 1.8 years 2.0 years Weighted-average discount rate Operating leases 10.68 % 8.25 % Finance leases 8.89 % 8.88 % Maturities of lease liabilities at March 31, 2021 were as follows: (in thousands) Operating Leases Finance Leases 2021 $ 888 $ 3,043 2022 840 4,377 2023 760 662 2024 372 74 2025 — — Thereafter — — Total cash lease payment 2,860 8,156 Less: imputed interest (408) (694) Total lease liabilities $ 2,452 $ 7,462 |
Financial Instruments and Fair
Financial Instruments and Fair Value | 3 Months Ended |
Mar. 31, 2021 | |
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 and merger consideration payable to an affiliate are 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 10.4%. The following table summarizes the carrying value and fair value of our long-term debt and merger consideration payable to an affiliate as of March 31, 2021 and December 31, 2020. March 31, 2021 December 31, 2020 (in thousands) Carrying Value Fair Value Carrying Value Fair Value Term Loan Facility $ 130,000 $ 124,599 $ 130,000 $ 106,854 Revolving ABL Credit Facility $ — $ — $ 8 $ 6 PPP Loan $ 10,000 $ 9,154 $ 10,000 $ 8,589 Merger consideration payable to an affiliate $ 2,902 $ 3,873 $ 2,902 $ 3,490 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 | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | InventoriesAll of our inventory as of March 31, 2021 and December 31, 2020 consisted of supplies held for use in our drilling operations. |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following: (in thousands) March 31, 2021 December 31, 2020 Accrued salaries and other compensation $ 1,961 $ 1,472 Insurance 1,008 2,127 Deferred revenues 208 119 Property and other taxes 1,651 2,166 Interest 3,472 3,573 Operating lease liability - current 908 964 Other 264 302 $ 9,472 $ 10,723 |
Long-term Debt
Long-term Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt Our long-term debt consisted of the following: (in thousands) March 31, 2021 December 31, 2020 Term Loan Facility due October 1, 2023 $ 130,000 $ 130,000 Revolving ABL Credit Facility due October 1, 2023 — 8 PPP Loan 10,000 10,000 Finance lease obligations 7,462 7,921 147,462 147,929 Less: current portion of PPP Loan (8,571) (4,286) Less: current portion of finance leases (3,522) (3,351) Less: Term Loan Facility deferred financing costs (2,415) (2,659) Long-term debt $ 132,954 $ 137,633 Credit Facilities 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 (“LIBOR”) with an interest period of one month, 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. We are in compliance with our covenants as of March 31, 2021. 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. In July 2019, we revised our Term Loan Credit Agreement to explicitly permit the repurchase of equity interests by the Company pursuant to the stock purchase program that was approved by our Board of Directors. In June 2020, we revised our Term Loan Credit Agreement to elect to pay accrued and unpaid interest, solely during one three Additionally 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 financial covenants as of March 31, 2021. 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 March 31, 2021, the weighted-average interest rate on our borrowings was 9.00%. At March 31, 2021, the borrowing base under our ABL Credit Facility was $7.9 million, and we had $7.7 million of availability remaining of our $40.0 million commitment on that date. On April 27, 2020, we entered into an unsecured loan in the aggregate principal amount of $10.0 million (the “PPP Loan”) pursuant to the Paycheck Protection Program (the “PPP”), sponsored by the Small Business Administration (the “SBA”) as guarantor of loans under the PPP. The PPP is part of the CARES Act, and it provides for loans to qualifying businesses in a maximum amount equal to the lesser of $10.0 million and 2.5 times the average monthly payroll expenses of the qualifying business. The proceeds of the loan may only be used for payroll costs, rent, utilities, mortgage interests, and interest on other pre-existing indebtedness (the “permissible purposes”) during the covered period that ended on or about October 13, 2020. Interest on the PPP loan is equal to 1.0% per annum. All or part of the loan is forgivable based upon the level of permissible expenses incurred during the covered period and changes to the Company's headcount during the covered period to headcount during the period from January 1, 2020 to February 15, 2020. On October 7, 2020, the SBA released guidance clarifying the deferral period for PPP loan payments. The Paycheck Protection Flexibility Act of 2020 extended the deferral period for loan payments to either (1) the date that the SBA remits the borrower's loan forgiveness amount to the lender or (2) if the borrower does not apply for loan forgiveness, 10 months after the end of the borrower's loan forgiveness covered period. While there can be no assurance that such PPP loan can be forgiven, we submitted our application for forgiveness during the first quarter of 2021. Given the nature of the process, we do not know when a final determination on |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [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, restricted stock unit awards, and stock appreciation rights (“SARs”), and up to 275,000 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 March 31, 2021, approximately 48,687 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. 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 March 31, (in thousands) 2021 2020 Compensation cost recognized: Restricted stock and restricted stock units $ 454 $ 570 Cash-settled stock appreciation rights 83 — Total stock-based compensation $ 537 $ 570 No stock-based compensation was capitalized in connection with rig construction activity during the three months ended March 31, 2021 or 2020. Stock Options We use the Black-Scholes option pricing model to estimate the fair value of stock options granted to employees and non-employee directors. The fair value of the options is amortized to compensation expense on a straight-line basis over the requisite service periods of the stock awards, which are generally the vesting periods. There were no stock options granted during the three months ended March 31, 2021 or 2020. A summary of stock option activity and related information for the three months ended March 31, 2021 is as follows: Three Months Ended March 31, 2021 Options Weighted Outstanding at January 1, 2021 33,458 $ 254.80 Granted — — Exercised — — Forfeited/expired — — Outstanding at March 31, 2021 33,458 $ 254.80 Exercisable at March 31, 2021 33,458 $ 254.80 The number of options vested at March 31, 2021 was 33,458 with a weighted average remaining contractual life of 0.8 years and a weighted average exercise price of $254.80 per share. There were no unvested options or unrecognized compensation cost related to outstanding stock options at March 31, 2021. 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 over 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 March 31, 2021, there was $1.4 million in unrecognized compensation cost related to unvested restricted stock awards. This cost is expected to be recognized over a weighted-average period of 1.4 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 three months ended March 31, 2021 is as follows: Three Months Ended March 31, 2021 Shares Weighted Outstanding at January 1, 2021 40,334 $ 64.40 Granted — — Vested — — Forfeited — — Outstanding at March 31, 2021 40,334 $ 64.40 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. 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 March 31, 2021, there was $1.1 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 0.7 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 three months ended March 31, 2021 is as follows: Three Months Ended March 31, 2021 RSUs Weighted Outstanding at January 1, 2021 63,897 $ 22.78 Granted 77,938 4.95 Vested and converted (25,285) 16.74 Forfeited (1,809) 38.80 Outstanding at March 31, 2021 114,741 $ 11.74 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. Vesting and conversion 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 March 31, 2021, there was unrecognized compensation cost related to unvested performance-based or market-based restricted stock unit awards totaling $0.2 million. This cost is expected to be recognized over a weighted-average period of 0.8 years. 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 three months ended March 31, 2021 is as follows: Three Months Ended March 31, 2021 RSUs Weighted Outstanding at January 1, 2021 38,559 $ 22.95 Granted — — Vested and converted — — Forfeited (10,785) 18.92 Outstanding at March 31, 2021 27,774 $ 24.51 Time-Based Cash-Settled Stock Appreciation Rights We have granted time-based, cash-settled stock appreciation rights (“SARs”) to certain employees. The SARs have a term of seven years, an exercise price of $5.73 per share, with the market price upon exercise capped at $10.00 per share, and vest ratably on the first, second and third anniversaries of the date of grant. Because these SARs are cash-settled, they are classified as “liability-classified awards” which are remeasured at their fair value at the end of each reporting period until settlement. Time-based, cash-settled SARs have no effect on dilutive shares or shares outstanding as any appreciation of our common stock over the exercise price is paid in cash and not in common stock. The fair value of time-based cash-settled SARs is revalued (mark-to-market) each reporting period using a Monte Carlo simulation model based on period-end stock price. Expected term of the SARs is calculated as the average of each vesting tranche’s midpoint between vesting date and expiration date plus the vesting period. Expected volatility is based on the historical volatility of our stock for the length of time corresponding to the expected term of the SARs. The risk-free interest rate is based on the U.S. treasury yield curve in effect as of the reporting date for the length of time corresponding to the expected term of the SARs. The following weighted-average assumptions were used in calculating the fair value of time-based cash-settled SARs granted during the three months ended March 31, 2021 using the Monte Carlo simulation model: Three Months Ended Expected term of cash-settled SARs 4.4 years Expected volatility factor 113.3 % Expected dividend yield 0.00 % Risk-free interest rate 0.73 % Changes to the company's non-vested time-based cash-settled SARs during the three months ended March 31, 2021 are as follows: Three Months Ended March 31, 2021 Cash-settled SARs Weighted Average Non-vested cash-settled SARs at January 1, 2021 — $ — Granted 2,954 0.64 Vested — — Non-vested cash-settled SARs at March 31, 2021 2,954 $ 0.64 |
Stockholders_ Equity and Earnin
Stockholders’ Equity and Earnings (Loss) per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Stockholders' Equity and Earnings (Loss) per Share | Stockholders’ Equity and Earnings (Loss) per Share As of March 31, 2021, we had a total of 6,515,580 shares of common stock, $0.01 par value, outstanding. We also had 78,578 shares held as treasury stock. Total authorized common stock is 50,000,000 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 March 31, (in thousands, except per share data) 2021 2020 Net loss (numerator): $ (16,025) $ (28,223) Loss per share: Basic and diluted $ (2.58) $ (7.53) Shares (denominator): Weighted average common shares outstanding - basic 6,215 3,750 Weighted average common shares outstanding - diluted 6,215 3,750 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesOur effective tax rate was (0.2)% and 0.1% for the three months ended March 31, 2021 and 2020, respectively. Taxes in both periods relate to Louisiana state income tax and Texas margin tax. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Commitments As of March 31, 2021, we had outstanding purchase commitments to a number of suppliers totaling $0.4 million related primarily to the operation of drilling rigs. All of these commitments relate to equipment and services currently scheduled for delivery in 2021. 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 | 3 Months Ended |
Mar. 31, 2021 | |
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. We made interest payments on the Term Loan Facility totaling $2.9 million and $3.2 million for the three months ended March 31, 2021 and 2020, respectively. |
Interim Financial Information (
Interim Financial Information (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
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 consolidated financial statements should be read along with our audited consolidated financial statements for the year ended December 31, 2020, included in our Annual Report on Form 10-K for the year ended December 31, 2020. 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. |
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. |
Asset Impairments | |
Recent Accounting Pronouncements | In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. In October 2019, the FASB approved a proposal which grants smaller reporting companies additional time to implement FASB standards on current expected credit losses (CECL) to January 2023. As a smaller reporting company, we will defer adoption of ASU 2016-13 until January 2023. We are currently evaluating the impact this guidance will have on our consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes , to simplify the accounting for income taxes. The amendments in the update are effective for public companies for interim and annual periods beginning after December 15, 2020, with early adoption permitted. We adopted this guidance on January 1, 2021 and there has been no material impact on our consolidated financial statements. On April 1, 2020, we adopted the standard, ASU 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform (e.g., discontinuation of LIBOR) if certain criteria are met. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform to provide clarifying guidance regarding the scope of Topic 848, effective immediately. As of March 31, 2021, we have not yet elected any optional expedients provided in the standard. We will apply the accounting relief as relevant contract and hedge accounting relationship modifications are made during the reference rate reform transition period. We do not expect the standard to have a material impact on our consolidated financial statements. In August 2020, the FASB issued ASU No. 2020-06, Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity , to simplify the accounting for convertible instruments by removing certain separation models in Subtopic 470-20, Debt-Debt with Conversion and Other Options, for convertible instruments. The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2021, with early adoption permitted. We are currently evaluating the impact this guidance will have 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. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 months ended March 31, 2021 and 2020: Three Months Ended March 31, (in thousands) 2021 2020 Dayrate drilling $ 14,261 $ 34,478 Mobilization 522 1,541 Reimbursables 759 2,448 Early termination — 27 Total revenue $ 15,542 $ 38,494 |
Summary of Contract with Customer, Asset and Liability | The following table provides information about receivables, contract assets and contract liabilities related to contracts with customers: (in thousands) March 31, 2021 December 31, 2020 Receivables, which are included in “Accounts receivable, net” $ 10,261 $ 9,772 Contract assets, which are included in "Prepaid expenses and other current assets" $ 32 $ — Contract liabilities, which are included in “Accrued liabilities - deferred revenue” $ (208) $ (119) Significant changes in contract assets and contract liabilities balances during the period are as follows: Three Months Ended March 31, (in thousands) 2021 2020 Revenue recognized that was included in contract liabilities at beginning of period $ 119 $ 311 Decrease (increase) in contract liabilities due to cash received, excluding amounts recognized as revenue $ (208) $ (505) |
Estimated Revenue Expected to be Recognized in the Future | 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 March 31, 2021. The estimated revenue does not include amounts of variable consideration that are constrained. Year Ending December 31, (in thousands) 2021 2022 2023 2024 Revenue $ 217 $ — $ — $ — |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Lease, cost | The components of lease expense were as follows: Three Months Ended March 31, (in thousands) 2021 2020 Operating lease expense $ 235 $ 149 Short-term lease expense 550 1,281 Variable lease expense 97 134 Finance lease expense: Amortization of right-of-use assets $ 259 $ 392 Interest expense on lease liabilities 166 195 Total finance lease expense 425 587 Total lease expense $ 1,307 $ 2,151 Supplemental cash flow information related to leases is as follows: Three Months Ended March 31, (in thousands) 2021 2020 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 241 $ 160 Operating cash flows from finance leases $ 164 $ 194 Financing cash flows from finance leases $ 837 $ 1,086 Right-of-use assets obtained or recorded in exchange for lease obligations: Operating leases $ — $ 178 Finance leases $ 376 $ 54 |
Assets and liabilities, lessee | Supplemental balance sheet information related to leases is as follows: (in thousands) March 31, 2021 December 31, 2020 Operating leases: Other long-term assets, net $ 1,966 $ 2,150 Accrued liabilities $ 908 $ 964 Other long-term liabilities 1,544 1,729 Total operating lease liabilities $ 2,452 $ 2,693 Finance leases: Property, plant and equipment $ 14,076 $ 13,700 Accumulated depreciation (1,239) (981) Property, plant and equipment, net $ 12,837 $ 12,719 Current portion of long-term debt $ 3,522 $ 3,351 Long-term debt 3,940 4,570 Total finance lease liabilities $ 7,462 $ 7,921 Weighted-average remaining lease term Operating leases 3.0 years 3.2 years Finance leases 1.8 years 2.0 years Weighted-average discount rate Operating leases 10.68 % 8.25 % Finance leases 8.89 % 8.88 % |
Maturity of operating lease liability | Maturities of lease liabilities at March 31, 2021 were as follows: (in thousands) Operating Leases Finance Leases 2021 $ 888 $ 3,043 2022 840 4,377 2023 760 662 2024 372 74 2025 — — Thereafter — — Total cash lease payment 2,860 8,156 Less: imputed interest (408) (694) Total lease liabilities $ 2,452 $ 7,462 |
Maturity of finance lease liability | Maturities of lease liabilities at March 31, 2021 were as follows: (in thousands) Operating Leases Finance Leases 2021 $ 888 $ 3,043 2022 840 4,377 2023 760 662 2024 372 74 2025 — — Thereafter — — Total cash lease payment 2,860 8,156 Less: imputed interest (408) (694) Total lease liabilities $ 2,452 $ 7,462 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 and merger consideration payable to an affiliate as of March 31, 2021 and December 31, 2020. March 31, 2021 December 31, 2020 (in thousands) Carrying Value Fair Value Carrying Value Fair Value Term Loan Facility $ 130,000 $ 124,599 $ 130,000 $ 106,854 Revolving ABL Credit Facility $ — $ — $ 8 $ 6 PPP Loan $ 10,000 $ 9,154 $ 10,000 $ 8,589 Merger consideration payable to an affiliate $ 2,902 $ 3,873 $ 2,902 $ 3,490 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following: (in thousands) March 31, 2021 December 31, 2020 Accrued salaries and other compensation $ 1,961 $ 1,472 Insurance 1,008 2,127 Deferred revenues 208 119 Property and other taxes 1,651 2,166 Interest 3,472 3,573 Operating lease liability - current 908 964 Other 264 302 $ 9,472 $ 10,723 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Our long-term debt consisted of the following: (in thousands) March 31, 2021 December 31, 2020 Term Loan Facility due October 1, 2023 $ 130,000 $ 130,000 Revolving ABL Credit Facility due October 1, 2023 — 8 PPP Loan 10,000 10,000 Finance lease obligations 7,462 7,921 147,462 147,929 Less: current portion of PPP Loan (8,571) (4,286) Less: current portion of finance leases (3,522) (3,351) Less: Term Loan Facility deferred financing costs (2,415) (2,659) Long-term debt $ 132,954 $ 137,633 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Compensation Cost | A summary of compensation cost recognized for stock-based payment arrangements is as follows: Three Months Ended March 31, (in thousands) 2021 2020 Compensation cost recognized: Restricted stock and restricted stock units $ 454 $ 570 Cash-settled stock appreciation rights 83 — Total stock-based compensation $ 537 $ 570 |
Summary of Stock Option Activity and Related Information | A summary of stock option activity and related information for the three months ended March 31, 2021 is as follows: Three Months Ended March 31, 2021 Options Weighted Outstanding at January 1, 2021 33,458 $ 254.80 Granted — — Exercised — — Forfeited/expired — — Outstanding at March 31, 2021 33,458 $ 254.80 Exercisable at March 31, 2021 33,458 $ 254.80 |
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 three months ended March 31, 2021 is as follows: Three Months Ended March 31, 2021 Shares Weighted Outstanding at January 1, 2021 40,334 $ 64.40 Granted — — Vested — — Forfeited — — Outstanding at March 31, 2021 40,334 $ 64.40 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 three months ended March 31, 2021 is as follows: Three Months Ended March 31, 2021 RSUs Weighted Outstanding at January 1, 2021 63,897 $ 22.78 Granted 77,938 4.95 Vested and converted (25,285) 16.74 Forfeited (1,809) 38.80 Outstanding at March 31, 2021 114,741 $ 11.74 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 three months ended March 31, 2021 is as follows: Three Months Ended March 31, 2021 RSUs Weighted Outstanding at January 1, 2021 38,559 $ 22.95 Granted — — Vested and converted — — Forfeited (10,785) 18.92 Outstanding at March 31, 2021 27,774 $ 24.51 |
Schedule of Stock Appreciation Rights | The following weighted-average assumptions were used in calculating the fair value of time-based cash-settled SARs granted during the three months ended March 31, 2021 using the Monte Carlo simulation model: Three Months Ended Expected term of cash-settled SARs 4.4 years Expected volatility factor 113.3 % Expected dividend yield 0.00 % Risk-free interest rate 0.73 % Changes to the company's non-vested time-based cash-settled SARs during the three months ended March 31, 2021 are as follows: Three Months Ended March 31, 2021 Cash-settled SARs Weighted Average Non-vested cash-settled SARs at January 1, 2021 — $ — Granted 2,954 0.64 Vested — — Non-vested cash-settled SARs at March 31, 2021 2,954 $ 0.64 |
Stockholders_ Equity and Earn_2
Stockholders’ Equity and Earnings (Loss) per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, (in thousands, except per share data) 2021 2020 Net loss (numerator): $ (16,025) $ (28,223) Loss per share: Basic and diluted $ (2.58) $ (7.53) Shares (denominator): Weighted average common shares outstanding - basic 6,215 3,750 Weighted average common shares outstanding - diluted 6,215 3,750 |
Nature of Operations and Rece_2
Nature of Operations and Recent Events - Additional Information (Details) | Mar. 08, 2021USD ($) | Nov. 11, 2020USD ($)day$ / sharesshares | Jun. 05, 2020USD ($)$ / shares | Mar. 31, 2021USD ($)directorexecutive$ / sharesshares | Mar. 31, 2020USD ($)drillingRig | Dec. 31, 2020USD ($)drillingRigdirector$ / shares |
Property, Plant and Equipment [Line Items] | ||||||
Number of oil and natural gas rigs | drillingRig | 13 | |||||
Reduction in executive management positions | executive | 2 | |||||
Reduction in number of directors | director | 5 | 7 | ||||
Social security tax, employer, deferral, CARES Act | $ 800,000 | |||||
Common stock, par value (usd per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||
Proceeds from issuance of common stock through at-the-market facility, net of issuance costs | $ 11,000,000 | |||||
Selling, general and administrative | $ 3,686,000 | $ 3,761,000 | ||||
Maximum aggregate offering price for sale of stock | $ 11,000,000 | |||||
Maximum aggregate offering price for sale of additional stock | $ 2,200,000 | |||||
ATM Offering | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Proceeds from issuance of common stock through at-the-market facility, net of issuance costs | 521,000 | 0 | ||||
Gross proceeds on sale of stock | 700,000 | |||||
Common Stock Purchase Agreement | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Consecutive business days | day | 5 | |||||
Additional price per share (in dollars per share) | $ / shares | $ 0.128 | |||||
Proceeds from issuance of common stock through at-the-market facility, net of issuance costs | 874,000 | $ 0 | ||||
Tumim Stone Capital LLC | Common Stock Purchase Agreement | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Maximum sale of stock | $ 5,000,000 | |||||
Common stock, par value (usd per share) | $ / shares | $ 0.01 | |||||
Period of stock agreement | 24 months | |||||
Maximum share issuance threshold (in shares) | shares | 1,234,546 | |||||
Maximum threshold percentage of outstanding stock | 19.99% | |||||
Maximum sale of stock (in shares) | shares | 1,500,000 | |||||
Maximum amount of common stock Tumim is allowed to own (as percent) | 4.99% | |||||
Selling, general and administrative | $ 500,000 | |||||
Gross proceeds on sale of stock | $ 900,000 | |||||
Number of shares issued (in shares) | shares | 174,100 | |||||
Maximum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Number of rigs | drillingRig | 22 | |||||
Minimum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Number of rigs | drillingRig | 3 |
Interim Financial Information -
Interim Financial Information - Narrative (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021USD ($)segment | Mar. 31, 2020USD ($) | |
Accounting Policies [Abstract] | ||
Reportable segments | segment | 1 | |
COVID - 19 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Impairment of assets held for use | $ 3,300 | |
Impairment of assets held for sale | $ 13,300 | |
Land and Building | Disposal Group, Held-for-sale, Not Discontinued Operations | Field Location Facilities | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Impairment of assets held for sale | $ 500 | |
Asset impairment charges | $ 43 |
Revenue From Contracts with C_3
Revenue From Contracts with Customers - Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 15,542 | $ 38,494 |
Dayrate drilling | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 14,261 | 34,478 |
Mobilization | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 522 | 1,541 |
Reimbursables | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 759 | 2,448 |
Early termination | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 0 | $ 27 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Receivables and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Receivables, which are included in “Accounts receivable, net” | $ 10,261 | $ 9,772 |
Contract assets, which are included in "Prepaid expenses and other current assets" | 32 | 0 |
Contract liabilities, which are included in “Accrued liabilities - deferred revenue” | $ (208) | $ (119) |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Assets and Liabilities Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized that was included in contract liabilities at beginning of period | $ 119 | $ 311 |
Decrease (increase) in contract liabilities due to cash received, excluding amounts recognized as revenue | $ (208) | $ (505) |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Remaining Performance Obligations (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 217 |
Revenue, remaining performance obligation, period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 0 |
Revenue, remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 0 |
Revenue, remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 0 |
Revenue, remaining performance obligation, period | 1 year |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |||
Capitalized contract cost, current | $ 0.2 | $ 0.1 | |
Capitalized contract cost, increase | 0.5 | $ 1.2 | |
Amortization of contract costs | $ 0.4 | $ 0.8 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Mar. 31, 2021 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Term of lease, operating | 1 year |
Term of lease, finance | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Term of lease, operating | 4 years |
Term of lease, finance | 4 years |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Operating lease expense | $ 235 | $ 149 |
Short-term lease expense | 550 | 1,281 |
Variable lease expense | 97 | 134 |
Finance lease expense: | ||
Amortization of right-of-use assets | 259 | 392 |
Interest expense on lease liabilities | 166 | 195 |
Total finance lease expense | 425 | 587 |
Total lease expense | 1,307 | 2,151 |
Cash paid for amounts included in measurement of lease liabilities: | ||
Operating cash flows from operating leases | 241 | 160 |
Operating cash flows from finance leases | 164 | 194 |
Financing cash flows from finance leases | 837 | 1,086 |
Right-of-use assets obtained or recorded in exchange for lease obligations: | ||
Operating leases | 0 | 178 |
Finance leases | $ 376 | $ 54 |
Leases - Lease Assets and Liabi
Leases - Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Operating leases: | ||
Other long-term assets, net | $ 1,966 | $ 2,150 |
Accrued liabilities | 908 | 964 |
Other long-term liabilities | 1,544 | 1,729 |
Total operating lease liabilities | 2,452 | 2,693 |
Finance leases: | ||
Property, plant and equipment | 14,076 | 13,700 |
Accumulated depreciation | (1,239) | (981) |
Property, plant and equipment, net | 12,837 | 12,719 |
Current portion of long-term debt | 3,522 | 3,351 |
Long-term debt | 3,940 | 4,570 |
Total finance lease liabilities | $ 7,462 | $ 7,921 |
Weighted-average remaining lease term | ||
Operating leases | 3 years | 3 years 2 months 12 days |
Finance leases | 1 year 9 months 18 days | 2 years |
Weighted-average discount rate | ||
Operating leases | 10.68% | 8.25% |
Finance leases | 8.89% | 8.88% |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other long-term assets, net | Other long-term assets, net |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued liabilities | Accrued liabilities |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other long-term liabilities | Other long-term liabilities |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, plant and equipment, net | Property, plant and equipment, net |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current portion of long-term debt | Current portion of long-term debt |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term debt | Long-term debt |
Leases - Lease Maturities (Deta
Leases - Lease Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Operating Leases | ||
2021 | $ 888 | |
2022 | 840 | |
2023 | 760 | |
2024 | 372 | |
2025 | 0 | |
Thereafter | 0 | |
Total cash lease payment | 2,860 | |
Less: imputed interest | (408) | |
Total lease liabilities | 2,452 | $ 2,693 |
Finance Leases | ||
2021 | 3,043 | |
2022 | 4,377 | |
2023 | 662 | |
2024 | 74 | |
2025 | 0 | |
Thereafter | 0 | |
Total cash lease payment | 8,156 | |
Less: imputed interest | (694) | |
Total lease liabilities | $ 7,462 | $ 7,921 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value - Narrative (Details) | Mar. 31, 2021 |
Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Debt instrument, measurement input | 0.104 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Merger consideration payable to an affiliate | $ 2,902 | $ 2,902 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Merger consideration payable to an affiliate | 2,902 | 2,902 |
Carrying Value | Term Loan Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 130,000 | 130,000 |
Carrying Value | Revolving ABL Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 0 | 8 |
Carrying Value | PPP Loan [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 10,000 | 10,000 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Merger consideration payable to an affiliate | 3,873 | 3,490 |
Fair Value | Term Loan Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 124,599 | 106,854 |
Fair Value | Revolving ABL Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 0 | 6 |
Fair Value | PPP Loan [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 9,154 | $ 8,589 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Accrued salaries and other compensation | $ 1,961 | $ 1,472 |
Insurance | 1,008 | 2,127 |
Deferred revenues | 208 | 119 |
Property and other taxes | 1,651 | 2,166 |
Interest | 3,472 | 3,573 |
Operating lease liability - current | 908 | 964 |
Other | 264 | 302 |
Accrued liabilities | $ 9,472 | $ 10,723 |
Long-term Debt - Schedule of Lo
Long-term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Finance lease liabilities | $ 7,462 | $ 7,921 |
Long-term debt and finance lease obligations, including current maturities | 147,462 | 147,929 |
Less: current portion of finance leases | (3,522) | (3,351) |
Less: Term Loan Facility deferred financing costs | (2,415) | (2,659) |
Long-term debt | 132,954 | 137,633 |
PPP Loan | ||
Debt Instrument [Line Items] | ||
Total | 10,000 | 10,000 |
Less: current portion of PPP Loan | (8,571) | (4,286) |
Line of credit | Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Total | 130,000 | 130,000 |
Line of credit | Revolving ABL Credit Facility | ||
Debt Instrument [Line Items] | ||
Total | $ 0 | $ 8 |
Long-term Debt - Narrative (Det
Long-term Debt - Narrative (Details) | Apr. 01, 2021USD ($) | Oct. 01, 2018USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2021USD ($) | Apr. 27, 2020USD ($) |
Debt Instrument [Line Items] | |||||
Accrued and unpaid interest only payment period | 3 months | ||||
Line of credit, additional payment as a percentage of principal | 0.75% | ||||
Direct reduction from face amount | $ 1,000,000 | ||||
Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Paid-in-kind interest | $ 2,800,000 | ||||
Term Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 130,000,000 | ||||
Delayed Draw Term Loan | |||||
Debt Instrument [Line Items] | |||||
Face amount | 15,000,000 | ||||
Line of credit | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate | 9.00% | ||||
Line of credit | Term Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Face amount | 130,000,000 | ||||
Liquidity covenant | $ 10,000,000 | ||||
Fixed charge coverage ratio | 1 | ||||
Line of credit | Term Loan Facility | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Interest rate, basis spread (as a percent) | 7.50% | ||||
Line of credit | Term Loan Facility | Prime Rate | |||||
Debt Instrument [Line Items] | |||||
Interest rate, basis spread (as a percent) | 6.50% | ||||
Line of credit | Term Loan Facility | Maximum | Federal funds, effective rate | |||||
Debt Instrument [Line Items] | |||||
Interest rate, basis spread (as a percent) | 0.05% | ||||
Line of credit | Term Loan Facility | Maximum | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Interest rate, basis spread (as a percent) | 1.00% | ||||
Line of credit | Delayed Draw Term Loan | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 15,000,000 | ||||
Line of credit | ABL Credit Facility And Delayed Draw Facility | |||||
Debt Instrument [Line Items] | |||||
Minimum availability | $ 5,000,000 | ||||
Line of credit | ABL Credit Facility | |||||
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 | $ 7,900,000 | ||||
Line of credit | ABL Credit Facility | Revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility, maximum borrowing capacity | $ 40,000,000 | 40,000,000 | |||
Remaining availability | $ 7,700,000 | ||||
Line of credit | ABL Credit Facility | Letter of Credit | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility, maximum borrowing capacity | $ 7,500,000 | ||||
Line of credit | ABL Credit Facility | Federal funds, effective rate | |||||
Debt Instrument [Line Items] | |||||
Interest rate, basis spread (as a percent) | 0.05% | ||||
Line of credit | ABL Credit Facility | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Interest rate, basis spread (as a percent) | 1.00% | ||||
Line of credit | ABL Credit Facility | Maximum | LIBOR | Revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Interest rate, basis spread (as a percent) | 2.50% | ||||
Line of credit | ABL Credit Facility | Maximum | Prime Rate | |||||
Debt Instrument [Line Items] | |||||
Interest rate, basis spread (as a percent) | 1.50% | ||||
Line of credit | ABL Credit Facility | Minimum | LIBOR | Revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Interest rate, basis spread (as a percent) | 2.00% | ||||
Line of credit | ABL Credit Facility | Minimum | Prime Rate | |||||
Debt Instrument [Line Items] | |||||
Interest rate, basis spread (as a percent) | 1.00% | ||||
Unsecured Debt | PPP Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 10,000,000 | ||||
Stated interest rate (as a percent) | 1.00% |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation capitalized due to rig construction activity | $ 0 | $ 0 |
Granted (in shares) | 0 | 0 |
Exercisable (in shares) | 33,458 | |
Remaining contractual life (years) | 9 months 18 days | |
Weighted-average exercise price (in dollars per share) | $ 254.80 | |
Restricted stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period (years) | 5 years | |
Unrecognized compensation costs | $ 1,400,000 | |
Period for recognition (in years) | 1 year 4 months 24 days | |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period (years) | 3 years | |
Unrecognized compensation costs | $ 1,100,000 | |
Period for recognition (in years) | 8 months 12 days | |
Performance-based RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period (years) | 3 years | |
Unrecognized compensation costs | $ 200,000 | |
Period for recognition (in years) | 9 months 18 days | |
Shares received per restricted stock unit (in shares) | 2 | |
Cash-settled stock appreciation rights | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation costs | $ 1,800,000 | |
Period for recognition (in years) | 1 year 6 months | |
Expiration period (in years) | 7 years | |
Exercise price (in dollars per share) | $ 5.73 | |
Cash-settled stock appreciation rights | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price (in dollars per share) | $ 10 | |
2019 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized (in shares) | 275,000 | |
Number of shares available for future awards (in shares) | 48,687 |
Stock-Based Compensation - Comp
Stock-Based Compensation - Compensation Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation | $ 537 | $ 570 |
Restricted stock and restricted stock units | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation | 454 | 570 |
Cash-settled stock appreciation rights | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation | $ 83 | $ 0 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Options | ||
Beginning balance (in shares) | 33,458 | |
Granted (in shares) | 0 | 0 |
Exercised (in shares) | 0 | |
Forfeited/expired (in shares) | 0 | |
Ending balance (in shares) | 33,458 | |
Exercisable (in shares) | 33,458 | |
Weighted Average Exercise Price | ||
Beginning balance (in dollars per share) | $ 254.80 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 0 | |
Forfeited/expired (in dollars per share) | 0 | |
Ending balance (in dollars per share) | 254.80 | |
Exercisable (in dollars per share) | $ 254.80 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Activity (Details) | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Restricted stock | |
Shares | |
Beginning balance (in shares) | shares | 40,334 |
Granted (in shares) | shares | 0 |
Vested and converted (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Ending balance (in shares) | shares | 40,334 |
Weighted Average Grant-Date Fair Value Per Share | |
Beginning balance (in dollars per share) | $ / shares | $ 64.40 |
Granted (in dollars per share) | $ / shares | 0 |
Vested and converted (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Ending balance (in dollars per share) | $ / shares | $ 64.40 |
RSUs | |
Shares | |
Beginning balance (in shares) | shares | 63,897 |
Granted (in shares) | shares | 77,938 |
Vested and converted (in shares) | shares | (25,285) |
Forfeited (in shares) | shares | (1,809) |
Ending balance (in shares) | shares | 114,741 |
Weighted Average Grant-Date Fair Value Per Share | |
Beginning balance (in dollars per share) | $ / shares | $ 22.78 |
Granted (in dollars per share) | $ / shares | 4.95 |
Vested and converted (in dollars per share) | $ / shares | 16.74 |
Forfeited (in dollars per share) | $ / shares | 38.80 |
Ending balance (in dollars per share) | $ / shares | $ 11.74 |
Performance-based RSUs | |
Shares | |
Beginning balance (in shares) | shares | 38,559 |
Granted (in shares) | shares | 0 |
Vested and converted (in shares) | shares | 0 |
Forfeited (in shares) | shares | (10,785) |
Ending balance (in shares) | shares | 27,774 |
Weighted Average Grant-Date Fair Value Per Share | |
Beginning balance (in dollars per share) | $ / shares | $ 22.95 |
Granted (in dollars per share) | $ / shares | 0 |
Vested and converted (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 18.92 |
Ending balance (in dollars per share) | $ / shares | $ 24.51 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Appreciation Rights (Details) - Cash-settled stock appreciation rights $ / shares in Units, shares in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($)$ / sharesshares | |
Weighted-Average Assumptions | |
Expected term of cash-settled SARs (in years) | 4 years 4 months 24 days |
Expected volatility (as percent) | 113.30% |
Expected dividend yield (as percent) | $ | $ 0 |
Risk-free interest rate (as percent) | 0.73% |
Cash-settled SARs | |
Beginning balance (in shares) | shares | 0 |
Granted (in shares) | shares | 2,954 |
Vested and converted (in shares) | shares | 0 |
Ending balance (in shares) | shares | 2,954 |
Weighted Average Fair Value Price Per Share | |
Beginning balance (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 0.64 |
Vested and converted (in dollars per share) | $ / shares | 0 |
Ending balance (in dollars per share) | $ / shares | $ 0.64 |
Stockholders_ Equity and Earn_3
Stockholders’ Equity and Earnings (Loss) per Share - Narrative (Details) - $ / shares | 3 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Jun. 05, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||
Treasury stock, number of shares held (in shares) | 78,578 | 78,578 | |||
Common stock, shares authorized (shares) | 50,000,000 | 50,000,000 | |||
Equity Option | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities (in shares) | 33,458 | 33,458 | |||
Restricted Stock Units (RSUs) | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities (in shares) | 142,515 | 142,715 | |||
Common Stock | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Shares outstanding (in shares) | 6,515,580 | 3,809,548 | 6,175,818 | 3,812,050 |
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 | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net loss (numerator): | ||
Net loss | $ (16,025) | $ (28,223) |
Loss per share: | ||
Basic and diluted (in dollars per share) | $ (2.58) | $ (7.53) |
Shares (denominator): | ||
Weighted average common shares outstanding - basic (in shares) | 6,215 | 3,750 |
Weighted average common shares outstanding - diluted (in shares) | 6,215 | 3,750 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate (as a percent) | (0.20%) | 0.10% |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Mar. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Outstanding purchase commitments | $ 0.4 |
Related Parties (Details)
Related Parties (Details) - USD ($) | 3 Months Ended | 8 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Oct. 01, 2018 | |
Accrued interest payable | $ 500,000 | |||
MSD Credit Opportunity Master Fund, L.P. | Merger Consideration Payable | ||||
Related Party Transaction, Rate | 15.00% | |||
MSD Credit Opportunity Master Fund, L.P. | Merger Consideration Payable, Period Two Rate | ||||
Related Party Transaction, Rate | 25.00% | |||
Sidewinder Drilling, Inc. | ||||
Merger consideration payable to an affiliate | 2,900,000 | |||
Term Loan Facility | ||||
Face amount | $ 130,000,000 | |||
Interest payments | $ 2,900,000 | $ 3,200,000 | ||
Delayed Draw Term Loan | ||||
Face amount | $ 15,000,000 |