ICD - Earnings call transcript Q3 2019 | Independence Contract Drilling, Inc.

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Operator

Good morning, and welcome to Independent Contract Drilling’s Third Quarter 2019 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded.

I would like to now turn the conference over to Philip Choyce, Executive Vice President and Chief Financial Officer. ahead. go Please

Philip Choyce

and discuss everyone, today for us Executive joining Anthony Good third thank quarter to Officer. Chief and ICD’s our me XXXX today Gallegos, morning, President you results. is With

about like would will to actual and results could today statements, today. uncertainties. I begin, number forward-looking we materially we to all from factors our include to participants subject are periods cause of in differ remind what which A future comments that risks talk uncertainties Before and

discussion on complete we you the a risks, For of release encourage to these earnings Company’s and SEC. read file the our documents with

to addition, to net adjusted and and non-GAAP the In filings loss, measures for refer and EBITDA our non-GAAP definitions release call. loss our public Please reconciliation to measures. adjusted refer earnings full for EBITDA during we’d a of the net of

it I’ll Anthony And turn opening with over remarks. to that, for

Anthony Gallegos

like on initiatives comments Thank rig and remarks, underway. In discuss playing out strategic summary I’d prepared a some results, have briefly quarter today quick view you, of my on and third what’s some to my we market Philip. the the

caused the to reported First, was for which choppy with cost continuing quarter to we customers, between per definitely rigs day would than be transition higher ICD, like. third our

the rigs due in quarter. was This moved as But quarter not our began contracts the but continued more operating as customer than with revenues rigs, labor, under due exited around for to we we our third to rigs cost we increases such transition-related earning base. cost,

we during quarter. marketed of three our SCR rig you contracted we if out that the actually fleet the of rigs pad-optimal our the fact, by the AC at three end count increased rigs In exclude second quarter, took

contracted in one that enter strong to a with during the net increase basis strategically In addition and on rig we I’d recontracted our land in on like pad-optimal another some we ICD count the XX still look offer detailed market as what’s Texas in we And quarter, rigs, perspective have rigs. year. how today. conviction point, our we forward, market these a into current as South fits next operation, more will net adding resulting contracted going And on including incremental increase U.S. all that to successfully to adds, the

closed industry is what range-bound We It and in common for and the financing North XXXX believe between cash to and count new capital. rig in in they and returns on a is free shift knowledge as $XX $XX expect a that what per seen is capital our we operating of rigs. XXXX markets purposes has growth operator within between as XXX barrel mostly beyond and behavior focus American X,XXX range-bound flow this normal, are oil E&P generally prices see and

will that and environment new companies overreacting the business this than supply their cyclical the succeed to in one across more is this will paradigm the or And will another And be few environment. way manage pieces in ones swings. demand rearranging this see that the several simply we’ve past over and choppiness quarters over and operate in the disruption rather the likely efficiently market to a seen

we during example, rigs alone, to an as quarter operators. new had five third moved Just the

focused in and multi-well their XXXX counts Our customers manufacturing of efficiencies and a operating ever to have higher budgets, face reduced in than commodity compared model. rig pad-based more prices XXXX, even on the are

past the software we’ve declining rapidly order just dayrates drilling remains fleet, greater past the consider of seeing that and the and require willingness well And relatively production. as in in robust, And efficiencies, technologies rig our rig are To optimization and XX today. even operations costs a up the we in and represents such be to competitive, reduce in Super-spec seen are customers customers experiencing XX% new up now dynamics fleet rig in of XX% we’re that U.S. our months, maximize count evaluate count six The maximize maximizes to count months. AC a holding efficiencies. rigs rig environment. overall

down to in in In the that to Simply believe drilling come. put, there are industry never this in and new our this XX equipment months is doing final has Within been operations rig the efficiency. of that maximize away opinion, drilling seeing a more from will way operate shift the declining going there’s order. just equipment and decline, again there’s the legacy on contract count. we that business, than we fundamental equipment, more past world old And laid

In is extremely of ICD is market in cycle participate the And manifestation dynamic. ongoing final the well replacement underway. evolving other words, to this positioned rig

Our young. is rig fleet

rigs to efficiencies gas oil prolific and pad-optimally North maximize Our are our focused for And we’re manufacturing engineered most America’s customers. on regions. producing

an expanded budget. customer XXXX their merger we’re they rig as larger complete, Our our integration is base across now and fleet prepare marketing

our couple respect As over the of with drilling software. made progress we’ve noted significant in weeks, last press optimization releases to

and as being one the speak. one world’s we have of deployed largest We second with deployed a system major operators

providers, that fleet. recall, opposed deployed in past rigs oilfield over service XX rig choosing the chose the in software third-party we’ve several with in drilling able equipping of to As our a we are as new systems, which across developing to solutions this established our entire partner a path to these with develop technology. now world few companies And months, the and may we be you internally third-party largest

our as drive ultimately to short, continue efficiencies, and costs. In operating these fleet is reliability increase development ready solutions method down as customers our drive entire to adopt a software

combination ICD’s in capability pathway the pad-optimal a software positioned with for value-creation our well and rigs of our as We’re to when market. ShaleDriller prove earning margin excited rig evolving used very this incremental to is this very toward compete fleet in rigs.

consensus operators the be be, to customer at XXXX rig budget spending at have Of E&P E&P believe next the remains ICD course, upstream But and few plans in just view count near-term, XXXX for flattish their environment, into as flattish regarding the seems to we I is XXXX. released reasons Very best, move XXXX. market we in the our for for for operating visibility choppy increasing forward we but year, plans type cloudy. outlined, will even a compared

the of we’ve third end operating extensions the already executed Since quarter, on four rigs.

us, racking we four to We are robust highest willing pumps, reenter the the also rigs industry, XX,XXX words, drilling market in meet have dayrates just hook capacity, specifications important our two including to feet the optimization other marketed expect enhanced the if operate and that I in that overall and load, most needed, will rigs fleet three rigs will engines, of for. customers that pay ready. operators In order in for must effectively have E&P discussed, technical

next and are very shorter than lower to work for the strong, even for rigs. discussions opportunities. contract would most we And is generally Most rigs, with contracts, idle high-grading though are with opportunities and than contract rig customers tenders longer have six-month customer more have Dayrate some the of pad-to-pad year like. lines activations we today excellent work for

I’d Board stock granted under important Lastly, the summer. strategic underway. our this active We’ve been initiatives discuss by buyback authorization some like to

debt will our market pad-optimal valuation expect repayment As our value to we are buyback our we our as what obvious required the and repurchases of in balance an perceive to we active forward, program. against and real today we we public fleet, fleet where flows. and and But dislocation in company, move available continue cash investments between be

On a the in liquidity and debt we’re position. side, good very

approximately cap October and our Our is of debt years loan we our times, to X.X have million. XX%. adjusted at debt We have comprised four and a until revolver net accordion term XXXX, cash and $XX trailing XX-month to committed net maturity debt liquidity EBITDA undrawn X/XX, our total accessible not is do ratio of and for

in Our any or debt time. part is prepayable all at

is our first On completion we’re AC capable. which conversion, nearing of to fleet, NOVOS SCR our

capability rig ICD million XXX, to complete mentioned X I capability As setback upgraded marketed. load earlier, being had hook and is its and enhanced, currently pound which our

the conditions believe we market upgrades improve. until forward, final complete Looking will I be two these

we be $XX approximately XXXX our to that earn next $X CapEx customers We pumps fourth likely lower can justifies million our add our million in will with to XXXX to substantially dayrate the expect million incremental expenditures, range, the year But to mud continue budget engines maintenance as require, third representing we fleet, estimate. $XX where than of capital and expenditure. this

to So the over call us with can financial results Philip, back he so the that, company. the I’ll through walk turn for

Philip Choyce

Thanks, Anthony.

final reported purchase Excluded in associated quarter, During final preliminary of in based transaction. weeks per accounting are numbers impairment the net of with net we for was Overall, loss upon adjusted an higher of with a couple non-cash results or ago, was consistent calculating we the goodwill million impairment share million. the million a our slightly the reported non-cash recorded of adjusted $X.X and goodwill Sidewinder although $X.XX $X transaction. $X.X price adjusted reported EBITDA loss

items revenues to other With during quarter, revenue. of early respect termination included the $XXX,XXX

early below conference in delay reactivations on primarily decline this a per guidance revenue rig second per provided the day. XX% a during came $XXX day revenue, to call, quarter. Excluding sequential day, of $XX,XXX representing utilization was Rig termination in of our quarter per due scheduled

of expense merger payments million, our came of and in additions, insurance Cash realization consistent and expense days rig $XXX,XXX the $XX,XXX transition with the came crew quarter. including synergies per day to during SG&A lease capital compensation capital tax in $X.X full guidance, recoveries higher-than-anticipated of guidance with our the net interest million during came for quarter. guidance. non-cash in and than higher $X.X day operating Depreciation, expenditures, reductions as of disposals, Cost costs. in per and prior occurred of relating consistent was

and overall million recoveries XXXX net $XX budget unchanged. capital disposals, remains Our of of leases

and At This financial financing excluding on deferred not net is – comprised at $XXX.X which from to million. The our of this debt net four balance finance time and leases Moving minimal does October of facility reported net we prepayable debt XX, mature is years amortization and debt, now. of September our entirely costs, until requires covenant. of term any contains loan, XXXX, sheet. no

had undrawn under revolver million, of of September accordion. and At total and we hand $XX liquidity on comprised XX, loan availability term cash our

in XX At operating $XX.X of Our we backlog not had quarter-end, backlog. representing included stood years September X.X million, reported rigs this work. at short-term at under contracts, rig seven

for on guidance quarter of moving to fourth Now XXXX. the

to see expect the We following.

is undergoing $XX,XXX X% expected We $XX,XXX range fourth Anthony expectation benefit two expect Revenue rigs the day prepared to from day, between per quarter. and the discussed in minimal increase his the per with to to see remarks. that that approximately we operating quarter upgrades the no days third over in

to are per transition all the SG&A, costs. third day fourth depreciation, reflecting day, range compared to sequentially per $XX,XXX some are expense, but the than with and quarter, quarter interest the lower between rig to expected quarter. still during third and associated Cost $XX,XXX be inefficiencies expected flat tax

I And will over call that, with Anthony. back to turn the

Anthony Gallegos

Thanks, let’s no time. comments further and the line this Phil. have open I for at up Operator, go questions. ahead

Operator

session. question We’ll go [Operator Please first Hallead begin Kurt question-and-answer RBC. comes from with now The the ahead. Instructions]

Kurt Hallead

Hey, good morning.

Anthony Gallegos

Good morning, Kurt.

Philip Choyce

Kurt. Hi,

Kurt Hallead

appreciate I color that and update.

say, as optimistic of look than the opportunity quarter some more budgets XXXX the to spending right? I’d out to having well. beyond, give to far and say, say, plans the a the too thinking discussions we’ve year it’s if heard say, I their others, how they’re work rigs maybe In is, was can So for next and context, though bit as consensus fourth as additional insights early not commentary first the context customer back some Anthony, and some around with us from, put viewpoint, kind little regarding into some from you part, the you about wondering you’re base

Anthony Gallegos

great That’s Kurt. Sure. question, a

those – things. customer our influenced budget early was driven related you year, by certainly in the in our a a to utilization hit just particular performance, rigs, – of exhaustion that of we year, spend, recalibration Just by may number dropped of recall, some of the a factors, earlier not kind

year So earlier We I’m is in trying the to be we the what came rest year of out, said, say. we’ll suffered the rigs. adding

and began, the guidance case. rigs. showed ended more third rigs continue We reaffirming quarter than that to be performance quarter that the add certainly of the to think the ICD we’re working over to that we’re going I we with

we’re to Where rigs we’re discussions to to some good ICD. add with right both to but about, are having to now conversations These going that have small too the of now him. legacy are I’m able may guys what really merger, prior customers have like existing the discussion. to that, be are excited new with been customers, will some have that And serious companies that the we’re of

rolls where and and reduced count of this XXXX. opportunities he into of those seeing we’re where certainly plans to as in looking Some recalibrated can opportunities, across fleet performance where customer finding rig to them be be – high-grade improved, kind and the he has spend. he’s But are discussions. He’s its now

upgraded go. The two the year, we the which is of in rigs, back one part here ready to

in And excited really the We’re rig. that discussions we’re about then AC on conversion.

completion We’re of that nearing project.

to start as capable. rig, commissioning That early November. is about in We’re NOVOS the phase we’ve here discussed,

of the like U.S. it surrounding the would that all that it’s So has rig whistles pumps, all the on bells and interest in unconventionals. three technology, a customer got

think So I think the specifications rig. rig the about when and rig all, you the got the capabilities, we’ve class, right

we in We’re even feels some the will slightly to flattish guess we like rig E&P the about think be its expect would talking too in that to count. it but flattish. we’re it’s down It’s as overall I’ve to to environment, spend seen is process case confirm, ICD down right at the increase – customers. that continue XXXX, maybe Clearly, contracted slightly way I make early numbers. to upstream even a trying to year-over-year. But see best

Kurt Hallead

Okay. I appreciate that color.

Now like right, massive XXXX, – discussion were coming for costs set like race the flat at it down, down look you quarter. third they’re the as on where the pricing. around of bottom op on But opportunity pricing these out in margins fourth dayrates on overall, with to coming there’s leading-edge down, cash Again, relatively the been looks to this coming there’s a so look not margin. in not the it’s you quarter context some with commentary maybe

how that maybe into rigs see on year? going out indications you playing some us your give for So next

Anthony Gallegos

three continuum incremental situation whether whether add you may a or customer competitive like about it’s situation dayrates different, technology things a Yes. and negotiating, of where be it’s that. not is pumps two with to contract We’ve have and or the existing talked the that the whether new you rollover-type customer an or pumps an

average think high-grade rigs to As you has think at the to above in be year, we’re those about especially for dayrate been. but we it at still average some even and where – dayrate about right ICD’s those the as that next is, to That off now. expect would for highest looking where the room where some, back ICD allows we are we our day for opportunities be dayrates has or would been for rates incremental where

that the Kurt. average a fleet our believe we incremental the So opportunity and looking at there’s front in that’s that we’re bias upward mix, it’s dayrate, and the adds in rig it’s set us, of

Kurt Hallead

Okay, just one CapEx. maybe great. And dynamic on

us we the both up we that’s, your the so and I with statement, XXXX? asset of and sales guys this So gave and a But And you of gross for for basis, you CapEx net on in about kind CapEx XXXX. gross match how XX-Qs net XXXX on. because CapEx cash put know, flow know do what numbers I think

Philip Choyce

range. We some it that We asset plans sales any would $XX million we’ll $XX It at. that to be don’t there that range, but yet, – have look in in be that it’s would be in I’d Philip. million range. Kurt, are

Kurt Hallead

that. Okay. you. Thank Appreciate

Anthony Gallegos

Thanks, Kurt.

Operator

Please ahead. next with Ryan The from comes B. question FBR. Pfingst go Riley

Ryan Pfingst

taking Hey, guys. Thanks my questions. for

Anthony Gallegos

You’re welcome.

Ryan Pfingst

Somewhat guys terms ICD’s on following and higher. a and Is rig could that you rig margin? to bottom fair XQ be up rig both in rig say see the guide, count margin it of XQ count

Philip Choyce

about talked Anthony rig count. Philip. It’s

there, well. margin bottom I a was as it think do we So think on

on with The lot transition third a alleviating the difficult on. for We see quarter. basis, cost very going of fourth in quarter some us was per that day

guided the quite our guidance. next costs year, move we to normalizing lower they fourth As where what down quarter a in were, bit into we really from the see even we

Ryan Pfingst

for scheduled place contract rig the a And then the in that upgraded? where during completion does exit have quarter, fourth count you conversion share rig to do operating once And you for your XQ? SCR expect

Philip Choyce

Yes.

days, XX rig that’s have not commenced that the We in today. a it September. August, on to So a project figured That’s early XX does upgraded, we been commissioning. back including contract

or So on rig. the where entered should we period be less the that. with we’re We’ve more marketing track

backdrop Of of course, recalibrating of finalizing against this and kind stuff. is happening budgets the and this customers our

upgrade construction that of expectation our complete or during – month the it’s will commissioning So November. the the and be

end think as It think could a few It with haven’t we’re year. start-up the for targeting start XXXX, into the on question. could be it, And of about track we other earlier. a that. I kind but little of weeks – I sorry, we’re caught

Ryan Pfingst

if Just where you share operating you could exit XQ? count to expect guys rig

Philip Choyce

Sure. Yes.

that, XX something kind year. exit said of rigs, think the like maybe we XX I we’ve XX, as to

If you rigs we be, about but it’s feel year range, where the confident of expect end that probably lower XX that. had on down pin pretty is the XX, of to end me to today,

Ryan Pfingst

helpful. That’s I’ll guys. back. turn Great. Thanks, it

Philip Choyce

Thanks, Ryan.

Operator

question ahead. The comes Please Rice. from Daniel Johnson next Burke with go

Daniel Burke

Good Hey, morning. guys.

Philip Choyce

Good morning, Daniel.

Daniel Burke

I correctly. heard something wanted think make I revisit and Q&A Kurt’s sure I to

to level guys Just year call per or would XXXX guide, just of correct? be than on of kind $XX,XXX QX’s day midpoint-ish day revenue revenue clear, you the trends, at per so just expect be that is that, kind per of higher it, day full

Anthony Gallegos

That’s what it’s feeling like, Daniel.

Daniel Burke

All is want guys a figure that certain a and I low in talk – margin kind had rig And little getting down rigs. to you have that down. utilization wanted mid-$XX,XXX the other But be Phil, the you bit. operating correctly. burden there across to kind level active And to do has I that of makes level? spread the say back Okay. of to cost get get I’ve costs cost heard of flex But to confidence or to there’s some just great. other rigs know certain have to down a to you pursue to that level about of then per side to day, I sure – number and what make I right, mean pinned the I

Philip Choyce

Yes.

XXX% look operated, if than in XX we’re would at absorption that even going ran third moving quarter a have better realized had in back when we between We the could quarter could utilization. you But little not fourth from things there, bit in us below we’re day. we do XX and offset affect if We us actually or affected around be is cost rigs. to that transaction $XX,XXX rigs – we to a the we’re But There’s environment. down fixed some running the quarters that get we that customers. going to synergies that. So the that

We customers third the rigs in between had quarter. five move

have quarter. We’re of this some that going to

the of to creates don’t guys There’s you because So rig we and are stack count, leave it. and for important. it back the see to within We’ve here, crews have rig – pay the crews, a want lot and go still we a don’t forth, churning of got weeks extremely couple a inefficiencies. to

alleviates of as it budgets year getting pretty as come us and that will see we type So range, the itself, think then play, with. comfortable down next $XX,XXX I’m I the into

I’d year, we’ll the say that than utilization $XX,XXX or lower would average reasonable little next if XX% should – like do better hopefully range. $XX,XXX market we we XX.X us. – between XX% a we year rigs that, average, we and that on XX be in market for to we’re rigs we think running be average, If but seems next run a XX of can number

Daniel Burke

you is count still then That’s from kind current for is – as of helpful. quarter? clarification. it – last Are the about finished third small still you one just And it today, active guys rig Okay. of where me, the XX,

Anthony Gallegos

Yes.

Daniel Burke

All right, Thanks there. guys. very great okay. leave I’ll much. Okay, it

Anthony Gallegos

you. Thank

Operator

from The Morgan go ahead. Dan Please with comes next Stanley. question Katz

Dan Katz

morning. Hey, thanks. Good

Anthony Gallegos

morning. Good

Dan Katz

color just that I you on guys debt that a guys makes how to definitely bit share little more valuation just So and at you could know reduction CapEx attractive. bit Thanks. forward? your more buybacks get talk But share to versus current about you’re thinking said a priorities. are little you looking buybacks allocation versus upgrade going your capital wanted that how

Philip Choyce

are That’s table would or customers two pay look don’t is upgrade our fourth there’s where rigs that willing rigs to adding other upgrade upgrade right Yes. of to CapEx any this anything us The off to kind at related you we got we now. we’re only any software, and we about for rigs looking CapEx, upgrade. third Those to rigs idle AC right our upgrade pumps have what we’re our it. could be plans the engines that could think two at fleet. When to AC. in going And going Philip. to Hi, We’ve are our SCR forward. now,

think in far capital price. in As dislocation as the do our allocation there’s we near term, share a

think do point and move debt debt to you that think in leaning share paying then towards when can be as forward. near-term do in we debt need That in versus prepayable the repayment, we more debt so we repayment, And our – repurchases And time, we about thinking about at or down is part. all any probably that.

we move debt in we’ll well. as paying down more about on – So as be year, next start probably we’ll later looking thinking

Dan Katz

it Got other it. rigs, of Or your us, to utilization a that initiatives any kind Thanks a cost would thoughts absorption? leads there factor Thanks. on that. lot. to fixed with And then you are behind better so is realization recontracting and Just improving guys love undertaking? just are synergy that hear of cost merger more just savings

Anthony Gallegos

that But think pressure the secured our the well. as pressure same type obviously, from margin, we’ve We’ve the good better that see we our opportunity that. which job purchasing every same help some Anthony. over our we’ve (XX:XX) forward, [indiscernible] the continuing on ERP and really the application, benefit I Certainly, of expect benefits. days, would vendors power, specifically going to to we’re this really to Obviously, all Yes, is had providers use. to we leverage applying cent is going to us. purchasing Dan, a are on year. this service wringing leveraging that Certainly, feeling out combined done customers, absorption continue operating system, The synergy integration,

where So work lower cost we we’re to going to to can. continue

to trying the what than going individually company to we’re I years a say. up to is think we’ve do ago let focus had not as year, I’m got a we X.X But combined opportunity that. X better

even very So of average cost and and about increasing being smarter certainly, with. selective holding by it, do we can a it’ll be the where revenue better it being about do we we absorption, combination lowering vendors but what

Dan Katz

Great. the I’ll color. Thanks a lot back. turn for it

Anthony Gallegos

you. Thank

Operator

Holt. comes question with Tudor, Pickering from Zurcher Please ahead. Taylor go next The and

Taylor Zurcher

Hey, good morning.

Anthony Gallegos

morning. Good

Taylor Zurcher

willing I mean, year. wanted you I allocation next clearly, or now? the mentioned XXXX, for repurchases I for to share capital think repurchases? do a approach like you on right next mean, to kind vis-à-vis order. – Phil, any that have – follow-up target look as any term, year question really earlier at But net sort climbed of debt that the you it it absolute might Or are near of sounds have absolute sort pecking beyond reduction we you of share about on wait-and-see share internal or is

Philip Choyce

today. target absolute no There’s

we for our that’s incredible be we is next We for our think budgets share today, But it At it’s that where target. in may put price an today, haven’t time, – value year. us. finalized a point going to with

place and – there’s we So wait for us. have in the we see. obviously, absolute which next put our that – budgets, put year, be And when no final we’ll so board have will then sets we may target a early an it our

Taylor Zurcher

Okay. Understood.

understand quarters, line, over past that fully On QX. the inefficiencies and couple the will the in cost spill of into

at sequentially Should in higher provided higher. – quarter to payroll count you’ll that be about like and modeling as we a are QX, about I QX, typically rig think that least having on things taxes so think lumpy and have tend we today. in costs the you outlook some theoretically, As there,

be the items will absorption to So enough cost lumpy QX. outweigh typically of those in fixed that some occur impact

Philip Choyce

the where guided for first the quarter, I think quarter. we than today we’ll be for lower fourth

to we’re the have planning think get to during more come we out that if going I benefits some rigs quarter.

think a day I per quarter. – added you see reasons I what think it because than of don’t lower to for think, the $XX,XXX day, will cost you just the about. be we’ll I we talked fourth guided

Taylor Zurcher

Okay. one more in. And I’ll sneak

you the horizon you’re into more programs. of first and contracts new signing feels test of mentioned churn turn program as do you Is for a that? like you rig kind are kind want ones remarks market in that in lot these out now, just with You the to your six-month hands. because to short type a well-to-well they of or market in new the just see trading three of to more budgets lot And part work the in year? and in on fleet, with Q&A well-to-well operators’ prepared pretty of rigs here within XXXX of – that a time there’s type see keeping customers, come given are ICD likely of the are XXXX, Or really next where it

Anthony Gallegos

Yes, so I’ll Anthony. take that. This is

the that of a working been guy has churn driven lot true was driven year, the recontract make He my it’s to – I by and rig. you a to is We the that So first think ended. rig budget our able the referred – point – rig peers X, months were – for ICD, working that for exhaustion. I – the line A that’s is with of rig. we released budget XX successfully guess, would for the I been

the us tried down primarily that with and out work a customer. with that taking That a it wasn’t for we had to road. has put churn. and the reason like out it that move rig on been particular said, I the didn’t someone So had customer, new finished It’s, it

that the also I feels not tough count. we’re no is Certainly marketplace brand, It’s we’ve reputation it. like nearing built I about out a the think operational testament – rigs, well. also fact but recontract a year-to-date doubt the as on idle only there, in working that about been the we’ve to the rigs now rig out market mean bottom. XX% bring we’re off reputation to able

would like the bottom other early at You and last to see XXXX. week, in or nearing we we’re so like month another count you’re go way bottom. rig next expect think see did to the we bottom rig and dozen it but feel begin And here in two does decline, overall the you out the

Taylor Zurcher

appreciate the Understood. responses. I Thank you.

Operator

like to would turn the This for to back Gallegos any question-and-answer Anthony session. remarks. over I concludes our closing conference

Anthony Gallegos

today. making beforehand. your Okay, guys. out. of appreciate if everybody forward talking to time available we’re road seeing ICD. not in sure you you you and to to look We out Please all from That’s interest on feel here. to dial any reach And the questions. support or have free appreciate if I Obviously, I

Operator

Thank now The attending for is conference you presentation. concluded. today’s

disconnect. now You may

Independence Contract Drilling (ICDIQ) 1 Nov 192019 Q3 Earnings call transcript