Earnings call transcript Q2 2023

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Operator

Good day and welcome to the Independence Contract Drilling Second Quarter 2023 Financial Results Conference Call. [Operator Instructions] Please note today’s event is being recorded. I would now like to turn the conference over to Philip Choyce, EVP and CFO. Please go ahead.

Philip Choyce

Good morning, everyone and thank you for joining us today to discuss ICD’s second quarter 2023 results. Anthony President is Officer. Chief today me Gallegos, and our Executive With

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

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

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

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

Anthony Gallegos

you Hello, joining XXXX our earnings second call. for quarter us everyone. conference Thank for

the During to talk my about today, want prepared I following. remarks

highlight quarter took to we some steps strategic want important I toward First, significant second the during initiatives.

want Second, our essentially to efforts complete. which around the Haynesville fleet, transition is I you on update

market to current how about the ICD spec, super I want rigs Third, is pad-optimal talk performing. for and

to want doing position talking for about close some to things the we’re future. out ICD I Lastly,

driven pleased in Haynesville second particularly few with the a $XX.X adjusted primarily at adjusted margin per day reported how came Overall revenues, our comments expectations margin First, just in of held day. I’m came quarter. reported sequential quarter Overall, the up per EBITDA on in ICD’s results terms of and ahead per with in EBITDA. day million. headwinds buoyed market cost by of market, face a improvement in

to de-levering action for which is the took most delivering the impactful in reducing industry-leading the the professionalism most our addition level and way I customers, important can our the is strategic sheet. quarter, we our to initiative of During balance in undertake. this debt company feel step service because second first company, our we

$X our our million at at were the par offer end of to par redeemed $X notes improving quarter. second also borrowings, I’m we quarter, reduced working for a in of pleased lenders at we notes our net position. and the million redeem During to time while convertible accept our revolver at capital same the position convertible the that of

Also essentially during quarter, the rebalancing we process. our completed second geographic fleet

saw Haynesville As a we XX of the rigs reminder, made Haynesville. relocate light ICD We rigs the year, in the drilling the to from we in more in market other the Haynesville working XXXX this XX rigs levered than working Permian. And started earlier with decision were any to to Permian. contractor softening the and the several

we able were the The the experienced from to pace second the choppier relocated Haynesville. in at Permian recontract quarter market which rigs ICD impacted we

in those rigs we have As and currently X are remaining X of of today, contracted. Haynesville, the

possible Haynesville, on it the additional the Although how is months. we that markets depending relocate rigs next from over the XX develop

in crew aggregate, is million approximately the being, during transition the million initial and $X quarter $X.X For of our program second complete. million costs, total. below costs, transition time totaled and including trucking Overall $X.X transition our estimates rig

to the market through turning end year-to-date of land second Now XXX down The overall rigs target quarter. rig count our U.S. is conditions the in markets.

the strong, contracted reshuffling by overall year-to-date some quarter about factors XX% rigs These competitive resulted consistent rig increased expectations seen recent some rigs numerous operators Permian in and by of spite resulting more by of market this, decline XX of rig-on-rig rig E&P and ICD In issues. of Permian the pressures. beginning we this Permian the competition. early of the prices an in second all banking have the base year, count its remained weaker Although caused commodity has with softness our count in at in

people our of quality the to speaks and and our equipment brand. strong that think I

expectation also and strengthen optimistic provide in discussions in primarily moves XXXX, inquiries recharged rolling customers our year, to on next half prices, that year capital in momentum effects remain Permian, having recent will our the market we the We are based this customer credit, in back WTI the into XXXX. market. think commodity and current of reaccelerating the our to of budgets part better back E&P continue about having access to boost additional of will I Permian

gas-driven remain some the rest go challenge rigs back for to a at we this gas While work that of year. we will Haynesville, to in expect believe least markets

over We have, weeks. couple however, the seen inquiries of in the pickup last Haynesville for work

we the for month-to-month, activity softer XX% to year XXXX the in permitting of to commodity spite the compared coming months. permits price bottom on addition, for finding June in we the slightly rig Based this, overall U.S. is believe were and quarter. in will increased Permian all we count as In and date early saw land second begin speak a U.S. land increasing up

the super-spec in the coalescing to little range, day maybe lower, $X,XXX data the the adders. a in minimal a edge spot in for now, leading are current rates Permian front, day compared but bit expect to I rate would including just day rates are the low- there Permian. Right to points Haynesville, mid-$XX,XXX $X,XXX day, On are they

and torque series day a unrelenting our in we are Basin we will and focus in the top have our back investors customer extension increasing in their with fleet, trends we expect arena, of amounts strings E&P’s one should and process knowing high continue, can some very lengths feel In seeing the drill on which of drilling the adders. well planning function connection good capabilities are have of year, in with contract executed a Permian be a XXX half of XXX terms this majority outfitted are these modest for a $XX,XXX mid-XXXX, In conversions enhancing of lateral already this is at which to CapEx. of a rig rest the that and working iron working interest we just rate, these capabilities our the These embedded mid rigs efficiencies. including into in increase as roughnecks to drives,

mention remarks, rollout, As I efforts close our which during out which second our regarding to Impact, we quarter. the my technology ICD want accelerated call I prepared

Our by been investment in youngest our customers and applying strategy knowledge, leverage third-party in with years the insight the our made and fleet to our of collaborating rig industry effort ICD’s of the partners with this arena has professionals, and by employees. their working and skills

today deployed technology demand with XX% have active warrants. systems percentage to We of time objectives as on over our this improve rigs approximately customer

stakeholders customers are We excited what other and going about means for our forward. Impact ICD

right up the call turn some to like little But for concluding financial I’ll to detail. before Philip now, remarks additional I’d outlook the make opening discuss and our over a to more in call questions. results

Philip Choyce

Thanks, Anthony.

loss quarter. net X revenue the rigs million EBITDA and per the during termination This early we of were the of revenues million. average During $X reported rigs early adjusted quarter quarter, $XX.X earning million. of on We excludes $X.X share during average an the or $X.XX basis and termination operated adjusted during an XX quarter,

on day to the per These transition early our and Moving statistics. termination expenses. statistics both revenues exclude

improvement. we Revenue decrease $XX,XXX, of the margin sequential during decline our quarter. margin Cost slight $XX,XXX, per days our quarter from of we rigs and rigs to average quarter. saw day are and in between QX, the pleased per day by first revenue, day operating per degradation fell a the customers during moving minimal Although X.X X% compared we only only an cost a locations per overall $XX,XXX the quarter day representing sequential to representing compared representing and Overall statistics. had was was was number first

stock-based of compared accruals sequentially by cost cash to to during $X.X QX XX% deferred These XX% incentive SG&A expense. cost-cutting declined the expenses decreased out $X.X due were which million lower costs million Breaking the and quarter. components included during efforts compensation the overall. implemented by compensation and quarter, sequentially SG&A

XX% This also quarter a Non-cash this on sequentially and excluded and quarter stock-based performance-based quarter Tax and issuance of million. the Interest stock expense benefit net associated the de awards. by compensation to expense million effect debt presenting due which in adjusted during income. included of amortization non-cash $X.X accounting was $X.X we decreased lower for variable when the with discount minimis. price stock case deferred costs, aggregated

capital includes on There’s quarter. our quarter, final approximately reactivation of in expenditures quarter program, rig that cash of the expenditures for This at beginning payable were our capital of $X.X rig accrued disposals During payments $XX.X CapEx end. approximately XXst including reactivated of net the million. payments million the at accounts

the XXX Series out Breaking and related approximately pipe in and Series to cash related conversions, to rig maintenance to our on $XX.X and CapEx XX% reactivations spares. XXX inventory capital XX% CapEx payments to related XX% drill million during investment quarter,

of half rigs million, XXX purchases. of the expect the remainder the approximately or series when aggregate approximately XX capital expenditures to by million XXX the $X.X year, working towards which we conversions we tubular back in during For move so and year assumes to $X.X year-end, so

sheet. balance our to on Moving

As net quarter. par while Anthony convertible improving reduced our We rig repaid mentioned, do We both improvements We includes these working of $X and goals million borrowings well. $X.X has This working steady by this as also focus in to our at capital progress quarter. the shifted position also during during of million slightly able reactivations notes to were revolver position made capital as overall strategic towards debt our from well. reduction. the

include point I a Adjusted we interest accrued year. $XXX.X end to have September to million, in debt at statistics also quarter out adjusted pay net March. was kind this debt our of approximately XX decrease on net from elected want

availability $XX.X This quarter net $X.X credit. at million improvement of I million mentioned. million, just line comprised capital hand on and in addition liquidity on cash was our revolving to $XX.X financial the of of end working is Our of

to third on moving Now guidance. quarter

during to days Net excludes rigs with operating per between sequential which in revenue $XX,XXX the minimal be on This representing $XX,XXX early and termination basis, decline to margin X,XXX day expect earning to on during lower revenue days, quarter. relating the the day approximately third an come XX.X to We contract X,XXX renewals. average will earning quarter. rates days rigs approximately

sequential with the some operating also quarter and the days. lower reduced associated days We during operating expect inefficiencies cost

are on of operating the contracts From a our contract reflect standpoint, pad-to-pad current the now day short-term vast rate mix and majority environment. rigs

For the entered XX% prior we to to only XX earned this to that year. on were third days into contracts our quarter, expect of during be example, XX% of March revenue

per quarter. cost included our $XXX,XXX and mentioned, any transition expect the day incur third Unabsorbed overhead our expenses to Anthony expenses guidance. be as to We during will Haynesville do not complete. program And is are transition also not in Permian about

would up We to expect increases with primarily approximately increase as onboarding third expected be tied cash sequential expected we expense reactivations begin staffing quarter in a to costs small SG&A for that $X.X is and quarter. recruiting to million, awards. expense today in our million, to third further be material price variable no Stock-based late approximately impact changes expected quarter early $X.X compensation as stock and fourth assuming of

be third costs. and amount, We expense of second flat $X.X interest million And non-cash to expense deferred expect approximately were debt quarter Depreciation to the for amortization the financing million. related this discount approximately expected with is to be quarter. of $X.X

We second expect tax quarter. with flat be to the benefit

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

Anthony Gallegos

Thanks, Philip.

the call briefly Before of enter to opening are questions, as I we XXXX. summarize where second half up we for the want

may is the not a XXXX employees be, that appropriate geographic the are our initiatives and balance executing strategic ICD. to to efforts this be value are of While will year we years. year a technology be proving more our provide ICD repositioning initiatives, would and it sheet, very on very which stockholders, rigs Initiating these for to happening. pathway our the And in important to de-lever our thought customers positioning and coming balance all

to like ICD and professionalism, ourselves. performance, would which day which thank hard safety every work deliver we I and of operations, customer expect members expect our team customers support corporate from to our high service many levels of who in

With up and the for go line operator, questions. let’s ahead that, open

Operator

Thank you.

today’s question-and-answer from the We And with question go comes begin will Don Crist Please Instructions] first Johnson now session. Rice. ahead. [Operator

Don Crist

you Good today? morning, gentleman. How are all

Anthony Gallegos

Doing good.

Don Crist

and topic into of to I third back ‘XX. rigs wanted adding quarter, explore possibly quarter the in fourth late

out there just significant other your they on from conversations gives wanted just that you to are today confidence. have today? anecdotes or are there tenders companies several Are what get We heard and take

Anthony Gallegos

nature last with of couple discussions months. the Don, over Certainly, of customers has the changed the

And U.S. I strengthening I the happening it think think, helped. the commodity in there, obviously, prices helped picture macro what’s

can things that others those some customers they and think in some with back I confidence along have given add. step some

probably rigs. the We do as we little we for doing not independents in to a of super a not of also you ones to the majors. sidelines E&Ps. laying up. over privates it’s think a work that transparency, a over that’s Just have for lot for look the last start us the lot we rigs down months – change as most were ago out And the the quarters. well. in today sat bucket least, first I give we see at And year seen the few bring with on work quarter kind fourth are they couple last work and the do where last for of private we opportunities and Remember They the where of about to third

Don Crist

But some know be moved you a tightening that into the some the to going the Haynesville? that’s starting loosening conversations the are to rigs actually further of take ‘XX that a to since getting versus over not out quarters? of past in see over rigs area. priority just lot several is step a that market to strip is in And back now Haynesville, I $X given you add the

Philip Choyce

of weeks, bottomed revenue X again, out those rigs last Yes. Certainly, as had X also over well. Don, of We at that discussions earning there. the up have couple we the picked

in bottomed We quite at a The this fourth That’s will from the moved. there are look rig from that past count $X. customers January, that probably growing. pretty drop. before about year, we you Strip fourth to optimistic are above X to so today, And looking was third put And we October thinking they has around over out work rig pretty it has $X.XX, at one again. over being about $X.X, rigs. go in quarter. and And at out XX $X.XX. to you are And week, earlier I optimistic. – mid-XXs, guys able talk is the down it’s to we this what hear back it’s work

Don Crist

And final just me. that appreciate for one color. one I

you the customer-driven more On next many conversions of think Series over the those several could do are from you those do and to XXX Series how quarters? conversions, XXX

Anthony Gallegos

great. them. they Obviously, In both great of were really a proud that been I able instances, doing the sign happy. that Series were am Yes. XXX It’s the for to we rigs, customers were our using one up. second job they were very

like which be Our coming across as a rig work over have. maximum spectrum they to and quarters the customers take able projects look would years coming flexibility and they out to the of

we point able in the going So rate in day to what both that to Series relative both were rig out, would the had XXX converted – premium a cases, very I to supportive conversion customers earned of are operators, have And cases, to we would capability. were not we earn it.

second So, that’s speak. this one, in will motion be the we as

more handful We a have can we do. that

kits We have ground. the some on

Our strategy to able earn payback have to now and the that is kits contract, to twice. course those over the been we of that is incremental use there opportunities when do

that have XXX So, super are laterals whistles continue the offer to out standard play flexibility Series for are need – and added capability, But it’s able as spec optimal. we about we they flexibility it. Those the that our rigs, when unconventional to super spec, have us. talk they They the play pad be if our continues pad-optimal bells customers has. the to get as to rig the all longer,

Don Crist

all will the turn it Thanks. appreciate I back. I color.

Philip Choyce

Thank you, Don.

Operator

question And comes Ferazani you. our Sidoti. Thank from Please go with next today Steve ahead.

Steve Ferazani

Anthony afternoon Philip. Good and

little Regarding much bit, going necessarily your rates a might harder? XQ, are rig down getting your then not has And the rates margins you significant in sounds but Permian into it rates? in dropped. day be What given commentary coming day guidance conversations the and like certainly how day seeing are around for count

Anthony Gallegos

so the rigs you softened have when year. X% the dozen some, and at Permian of into But it off put happened is a the Yes. market to just Day or only beginning since year-to-date, Steve. look rates what’s perspective,

margin been been look per some of you the But at obviously you but added probably So, proud day When lot that. held there you well. know, rigs has the pretty that as There we into. of rates as the there trimming guys some has have insight people just don’t churn a reported, regardless, that that nicely. background some have have day in very up is

about as with a think basis and for that, think if bit down we historical going be kind these And saying QX are QX about guiding you we on is flat are QX. a to We little margins, allow optimistic are of next we And good. to that why what underway. another on are ICD have we reason to several big very it’s those the that’s really going about quarters do initiatives strategic important especially

Steve Ferazani

work confidence some your in What’s QX? getting rigs now level back to in

Anthony Gallegos

Very high.

three than minimum the the out, sooner We I end happen of bring it’s think, year. are rather they to And later. before probably going

Steve Ferazani

Haynesville? a with you rigs the of color give given the And term X termination around those the have left of can did Excellent. Any in kind they million? lot early

Anthony Gallegos

Yes, year. on November on contract one this fact, still through is of standby, in

other early The one, it’s about ended here days ago. XX provision term

that three rigs we Haynesville have today, the one there the only of working earnings So, in sitting is standby.

a The on work are day basis. other two

Philip Choyce

Yes.

So, the quarter. rigs end was X.X ended three and the it pretty of much all it the by million, second of really

Steve Ferazani

costs that How Okay. with a much helped that cuts, anything or there rigs It think obviously be of temporary to here, those out Was of you out lot was could getting permanent? you back a work? back a comes of very took lot do took that out lot.

Anthony Gallegos

in hiring was On clearly we in side, second the of mode. the some weren’t SG&A quarter it

We to that. will go back

operating count of gets as costs. in guide that go of permanent, done have down what about the and efficiency we And up in. the the down. some and temporary so quarter, up from rig then which SG&A about are that’s I really that is to consider about when probably side, up third you There is on other think things million type going quarter talking the things Those really some to that operating there. would sequential the second that’s $X and put headcount standpoint we And have from we really are

on all We down rates. some will not earlier part choppy the you have when day – the to talk guide margins, question is of

– is to of going to to be a are back statistics. and choppier quarter There third affect be going it’s that. things to your work per and put we it’s going day rigs as some does cost Some we be – churn that like

Steve Ferazani

Thanks Thanks Anthony. Perfect. Understood. Philip.

Operator

Dave question Markets. Capital Storms next ahead. comes from today Stonegate our Please And with go

Dave Storms

morning. Good

Anthony Gallegos

morning. Good

Dave Storms

most of we to of head next And Just you hoping that any of of some either rear kind mentioned the banking line? on quarter. have any touch like it down could you see kind that issues on in the further of them that for looks potential you up. cleared are seeing Do in again, the the quarter or its

Philip Choyce

Yes.

So, what And credit customers. I know on better you was part was really to you and our I the referring think do. – to of access guys than

are the anecdote they that You commodity that, to out around crisis, And start, playing credit the around – and process July. my those banking what well, drive access which think they June, I were second resolved, going just than while things why when the of quarter. better not understanding with for second May a help the give out I but stuff we the awarded, guys. regional for side talked we especially to lines are the financing today have quarter, we be a they were issues March think that’s project a the program I an that. was reasons And and that, back to that you But March. think early in what’s may verbally other to of redeterminations we program back awarded, think May just as guys completely customers slipped like big you customer. is will that up. a the It’s in One is are changed Permian, share like in prices E&P our to And would operator. in view in now, anecdote about papering it’s capital, that more would Well, slipped we private

Dave Storms

that the out rig for thing mentioned a sense in bottom between coming a finding XXX us of then demand Can Thank the counts That’s months. just around you Series XXX other back just with increase when come versus you. demand very helpful. Series help does you the And break rigs expected rigs? the get the

Anthony Gallegos

Yes.

count, out goes in there look Permian, the, right we We maybe in now, are and in at is to the continue out rigs in are even XXX. bottomed think, you is to Permian. are expect it Basin working rig the grow. working where about half percentage are work, rigs I Basin the work. the the When of would XXXs Out Midland We there the where Delaware that

Basin you some there. of I to would see E&Ps Delaware think talk about you out are adds hearing productivity the the because just that expect in

us being a what’s to move what’s very were the stockholders demand. making that’s for our So, saying and it we entire to we clear go, in specification, not that important is going us or and able have call XXX to – pathway where but incremental is Series meet market that is important opportunities if are towards a to for those

Dave Storms

you my question. That’s taking for perfect. Thank

Anthony Gallegos

Yes. you, Dave. Thank

Operator

question ahead. next Research. comes our Please Marsh Singular And today David with from go

David Marsh

for guys. questions. the Hey taking Thanks

just I a in flow looks but could, note par I you It million if Phil, repurchase, repurchases. question about statement, this convertible wanted the exactly plus said $X cash then spent to crude. like First, the ask

I million in to I did little this note? $X like wanting of you understood, get So, was retire a principle to make just color sure

Philip Choyce

Yes.

million, it. that dollars a be would of of couple $X up the was on and flow the was the it operating and other So, probably piece. hundred interest in cash the crude part statement And thousand

at pay-down yes. par, So, million it’s $X

David Marsh

then And this are callable it. point? continuously at par at Got they

Philip Choyce

There end is the to provision quarter at of make where an par. each we offer a mandatory through pay-down XXXX offer at

this And accepted through offer and made, first so that the June each the $X each the it. million was year quarter XXth. million through it’s $X.X it’s This next – this end quarter the quarter, of first was was and they And we this year. then first

David Marsh

interest this on transition And you payment picking at guys I plan it. update understand. Got this? to us still could kind And cash then of to are on point? possibly you

Philip Choyce

Yes.

most probably was what March That’s have we accepted – is the think is picking ‘XX. March March assuming are opportunity pick with funding offers would mandatory that’s ahead picking our to we Certainly, the Then think – today but where through cease at I to through point at and said ‘XX. likely go will publicly – then plan sit time. what the the lenders. And plan mandatory September, be we to offers, here our and So, would our would be would through we we to in we scenario. up probably we pick stop that being

David Marsh

am that enough Got point? the still not type consider it. favorable I guessing kind refinance of at some refinancing market guys an quite market you of to open is this for

Philip Choyce

of of So, down EBITDA. open are year. the the kind here refinancing EBITDA of indenture next Obviously, a bit September reported window our as as until far market we and under in little doesn’t up a

us rigs there because to some ideal the in think it’s do year. a opportunity be for with some opens we I next I wouldn’t to when have And can opinion, now, pretty – early up. and just get window it as that opportunities is more negotiation. something out, So, It’s as discussions probably my far think that better

David Marsh

I kind to on it. of trying absolutely a just would I pulse the Yes, agree. finger of just put

rigs release Permian. in were many how QX, moved guys $XXX,XXX guys regard to million with in costs some you out the from rigs moved in moving to You total? QX, called – Haynesville press in $X.X

Philip Choyce

Six in total. rigs

David Marsh

Okay. understand the it – me helps helps, Perfect. on. That moving cost just understand of

it. appreciate all I I helpful. have. That’s that’s So, really

else Let someone to me here. yield

Philip Choyce

Thank you, David.

Operator

Research. today go Jeff And ahead. Tower you. Water from Please our Robertson with question Thank comes next

Jeff Robertson

year down ‘XX? you. to as into morning. basin, rates Good start to start rigs expect improve in as maybe put point this firm that and at Thank work do Anthony, churn margins the will you day slows you heading to that back Permian the late and up

Anthony Gallegos

Yes.

going players expect, the the to little the discipline be what it’s reason have laid maintained rigs Look, think pricing. a people business may good in quarter than down. later in and big I the a Jeff, is

The news are opportunities As to the there to rigs get good relatively a trying they for to in their presented is, about. step box, be that I are think of we out. are limited going aggressive into number batter’s people rigs talking it’s

So, about of that’s sideways in a margin laying quarter third decrease kind in of this and out for very because uptick few And XXXX. the has the throughout the decline you been dynamic, year, fourth in those probably quarter, lags XXX quarter. optimistic very and Permian. slight for over we have then the the rig by as a of utilization the been but you United guys are that There only why a States know,

So, the realize, to pricing longer, it’s little like. back I people than inflection going get we later than think little increases, to be a would it’s to probably a but may sooner

Jeff Robertson

then back get customers to optimistic a the the Do they you to to sense gas into if half of back the any get how look that they rig ‘XX at markets and might ‘XX? are starting worry start about Haynesville maybe more view of

Anthony Gallegos

that conversation XXXX. starting a are Jeff, likely actually with challenge them. for to they think had Yes, about us guys as It have have we becomes absolutely.

is south I think we in and deeper. talked, how typically it activity call what’s does, one important of think the note the an biggest as about standpoint I it’s Haynesville equipment drifting is on the to reasons last And from west. is

the of getting some that were over Robertson that Of The stuff doing if made results that bigger this And a in and County western you laterals all this and rig. was area. are a this and extreme course, Texas earlier to longer, it the Comstock week, the edge in extreme at requires well look an want I just what examples, think – announcement at that look they published are as the in of what similar earlier to they is Haynesville, That’s in what I are seeing a gas. feet Haynesville. a was to very now million the are think cubic going lot that, as E&Ps it exciting day XX And it the of And higher. Bossier remember, point the that West, moves deeper as get as is, over I gets reason batch deeper, the I loads there out said, Haynesville test the like hook well. then week it

the that. X big You type I – And equipment. things And limited the that them. to in are for that bodes number bode of dynamic have industry, picking of well equipment. really of general with a Haynesville like there one is those along going is pound that rigs, setback million big contractors of we that course, kind are talking up think just capacities, And

Jeff Robertson

So, specifications migrating is that rigs in of your the towards play needed? terms

Anthony Gallegos

yes, Series, XXX the sir. Absolutely,

Jeff Robertson

mentioned accept the offers. the that lenders you you Philip, anticipate will that redemption

So, be the amount guess but really those naturally ultimately also appears which or you de-lever should balance should producing able ICD principal allow sheet. refinancing decreases between still that I notes, to the it to the burden, on convertible cash also drives add of

leverage profile that up, a lot think leverage to ratio natural is late fair more year, So, a have way maybe look you opens Is opportunities. the starts better to that and refinance mentioned it? about like just your window company’s next

Philip Choyce

think really would It’s quarter. debt opposed spoken the have because guidance mandatory of to think be didn’t certainly kind until the we saw as them past next I what we their Yes, we I the year. had the know offers until in we not past, And of this to with did in pay-down. – accelerates in them now much they really March that what compared accepting provided beginning certainly plans about because those that

Jeff Robertson

much. very you Thank

Anthony Gallegos

you, Thank Jeff.

Operator

Daniel comes And John you. our from with Please ahead. go Thank question next Daniel Energy today Partners.

John Daniel

you is Thank tell guys. the Anthony, I count the what I working of missed Hey Can remarks. prepared part apologize, rig you. me today?

Anthony Gallegos

or rather. revenue, on have rigs We on ICD, one today earning standby, early them of XX term,

John Daniel

or Okay. the But to XX? rigs turning are XX right

Anthony Gallegos

to turning the right. are XX

John Daniel

Perfect.

questions. good listen deploy I rigs am you pretty to are am operators. But if some that private curious, for the with of earnings some this little last you earnings calls likely to asked and know to incremental getting add so guys – flat week Don his. on I of pretty majority all of I going to and a But mentioned you maybe are And follow-up activity bit that. far to go the the week, going a you But E&P bleeds busy all lower. are probably ready saying them Okay. little

want to else? inquiries give I I thoughts. they you obviously, you getting but one curious you are calling but disconnects am thing, names, guys from sales saying are any so publicly customers, are And asking and as don’t your the am E&Ps are catching often something curious And just where your how

Anthony Gallegos

I I think Yes. a say No John. the into more of it’s wouldn’t market. just perspective it’s disconnect, a problem,

working majors past. we today, the the in super We for not although are any of have

And we incremental side. the the adds for have, or rig private on where with so pursuing are it’s more a have independents, the the opportunities most And rig may the than into part, earlier – those that these we lesser are especially in a are independents, we the And privates. with that can independents that are where see rig seeing opportunities opportunities with and talked about an we underperforming have do is offer. we discussions, the large And they high-grade we or large with that the the we capability call. are

of upgrade not As months of we we by can Series do Series quarter certainly are and capability, just see work, get is, I or question XXX that’s where ago. XXX are the we The I of out. and third pursuing whether requirement look for rigs going we end going not Series are on we XXX the to it. think another paid back to a depend it have out over or couple that put that that year, rigs the three and to working probably those two we We

So, as I we three of a those into customers. of classes disconnect, just much market say with fit is it’s where wouldn’t there the

John Daniel

Okay.

baker it’s were do ‘XX? would it low-XXs in the ‘XX? in Where hit rig proxy, low-XXs hopping. think use we I the as times back in might we respect your go several right at trough? now. inquiry probably suggest you were months, you last it What with the clairvoyant I you where could others more count be you And was to the think And than If Haynesville think if when

Anthony Gallegos

the strip, Haynesville we that proper second Look, what’s play, that have I if all they at that’s extreme ago, known, pretty you listen price of over easy see at John, customers activity. happening a can say the you look rigs I but in western need the stimulate which really ignoring to there. And a to part dozen just what dozen see described what there easy. have a looking I

John Daniel

still in it’s And fast. inquiries back where crap us were winter, don’t Okay. fair pretty we knowing ‘XX. to a today things we necessarily got QX if But happens I cold early? put statement That’s obviously, change the mean,

Anthony Gallegos

lower Correct. But remember, supply too. your available is than was, it

a in a rig than lower count Haynesville bigger response needed you at pricing the probably you So, before. see

John Daniel

Awesome. Yes. answers. granular very Thank for you

Anthony Gallegos

John. you, Thank Yes.

Operator

[Operator Instructions] Our Please ahead. Ryan go next Colliers. with question comes Dick from

Dick Ryan

you. Thank

Anthony, in some So, on be position technology in you a litXtle better you provide a a ultimate to are market? that? commentary you your just Can strategic pathways, little help what’s more your goal? Will where share provide take the initiatives, the on in that that you Can commentary rollout?

Anthony Gallegos

me that, Yes. appreciate about you Great. let And talk Dick. I

out a We do for it all to way way. big and gas, is industries technology that. about there, have for its other the and think oil make like lot it’s appreciation technology into and haven’t a and mean expected demand I would what going we in whole I talked Look,

that’s felt get last We to the that would arms race trying there a Part into – phase. also develop we the limitations years to ourselves. we over But have chosen of just this be of would that over not of couple technology shakeout have. time, the this some of

to the – platform in especially strategy But mean AC the right deploy over And that that that on sure front. do wanted precise we our this to have very a technology. we stated of time, second fast systems, So, the rigs make place the to have, strategy mover be in is rigs. controlled control half we are rigs able with we our be

think you you system technology. you a on that this have to to about iPhone, deploy be sure your have able platform got place your in operating So, to make

as a requirement customers, thinking years. over business pretty the to XXXX, the forward, efforts going we to and rolled to were have customers’ coming to those about that going talking to be us add to as our it apparent So, offering technological are increase to the able and that we into productive was be

which rigs just for can to So, where we and what time was proving third-parties just our create ICD value, XXXX deploy not we for spend described, to our on also demonstrate I in stockholders. and technology wanted our but customers,

the that I happening make now. I am point that guess trying that’s is to So,

We have systems of deployed. these four

our has been very biggest We the efforts. in Permian Basin of these supportive have been very lucky because customer

that on a used trial So, systems being of we have basis. are a couple

edges very have We positive some got results we are things stuff, where paid so the this far. around getting for

oscillator. drill a have string We

we Where Trip stick-slip being have software improved. bottom some is What We we to seeing are mitigation mitigated. do those are things think times back sequencing. that are all of being go, think around of between we $XXX day this us. could somewhere and and this. a margin sat incremental and to about $X,XXX that they Look, come thought can Philip are I

been. like rig that been but anything we have show But its if the us. thing this with pleased think the it. on all Like proud we about just people with of for working because haven’t it’s be are lot to Now, front. It’s very am and customers to can really we pleased then want about operating. to didn’t that going customer not that have what working And have it have we deployed years. very just with able doing not it may of this pay last willing deliberate. have prove get are I I contractors, every over we year-to-date on we appreciate I really obviously, talked a said, with. time, we the this over But couple are third-party been quiet, to been value, I partners

Dick Ryan

Thank you. Appreciate the color.

Anthony Gallegos

Yes. Sure. Dick. you, Thank

Operator

to this over session. remarks. I the team gentlemen, management like and the Ladies concludes question-and-answer turn to the conference you. for back your Thank final would

Anthony Gallegos

that, on will thank call again. you. talk all we and until out. that. we talk you in for exciting I us wishes the opportunity time of to going safety appreciate everybody update close want giving the Thank Best for to about things and participate today’s you to making here. We to and prosperity And with

Operator

today’s today’s presentation. call. all sir. you for Thank This We concludes attending you, thank conference

may You a lines, wonderful disconnect now have and your day.

Independence Contract Drilling (ICDIQ) 3 Aug 232023 Q2 Earnings call transcript