Independence Contract Drilling, Inc.

No Longer Reporting

The company has not filed an annual or quarterly report since its Q3 FY2024 10-Q, filed Nov 19, 2024. Its latest SEC filing is a SCHEDULE 13D/A from Jan 22, 2025.

The sections below describe the company as of the FY2023 annual report.

What Did They Do?

Drills wells on land for oil and natural gas producers developing unconventional resource areas in the United States.

How Did They Make Money?

Oil and natural gas producers pay negotiated daily rates while rigs work, move, or wait under contract. Customers generally pay mobilization as a lump sum at contract start; they also reimburse requested supplies and services as costs arise, and may owe early-cancellation fees.

revenue

Segment	Share	How money arrives
Dayrate drilling Usage-based	90% FY2020: 85%	Usage-based
Mobilization Recurring	2.4% FY2020: 3.9%	Recurring
Reimbursables Usage-based	4.4% FY2020: 7.0%	Usage-based
Early termination Recurring	2.8% FY2020: 4.0%	Recurring
Capital modification Recurring	0.2% FY2020: 0.0%	Recurring
Other	0.1% FY2020: 0.0%

Who Were Their Customers?

Markets drilling services to major and independent oil and natural gas companies, as well as small-to-mid-sized public and private producers.

Customers above 10% of revenue, FY2023

of revenue from one customer

FY2022: 45% from three customers

Did Revenues Turn Into Profits?

Not on paper. It lost $37.7M in FY2023, but brought in more cash than it spent: $20.4M of free cash flow.

Operating income, FY2023

−2% of revenue

▲ +77% (Loss) vs FY2022 (−$2.1M, −1%)

Net income, FY2023

−18% of revenue

▼ −42% (Loss) vs FY2022 (−$65.3M, −35%)

Free cash flow, FY2023

10% of revenue

▲ Now profitable vs FY2022 (−$14.5M, −8%)

How Were They Changing?

Since the FY2023 annual report

Latest quarter: Q3 FY2024, the three months to Sep 30, 2024

Revenue: ▼ −14%; vs $44.2M in Q3 FY2023
Net income: ▲ +143% (Loss); vs −$7.6M in Q3 FY2023

Dayrate drilling share of revenue vs 90.3% in Q3 FY2023

Jan 15, 2025 Bankruptcy court confirmed the reorganization plan Noteholders will receive reorganized-company common stock; existing common shares will be canceled without a distribution to current holders.
Dec 3, 2024 Filed for Chapter 11 and proposed a debt-for-equity reorganization The plan proposed exchanging noteholder claims for equity and canceling existing common stock.
Aug 29, 2024 NYSE delisted the company's stock Trading moved to OTCQX after the company fell below the exchange's minimum market capitalization rule.
Aug 7, 2024 Gave third-quarter revenue-per-day outlook It expected third-quarter revenue per day to decline approximately 2% from second-quarter levels.

Held flat. Revenue was $210.1M in FY2023, about the same as the $203.6M of FY2019.

Formalized upgraded rig packages The older report described pad-optimal rigs with flexible equipment options; the latest report distinguishes an upgraded ShaleDriller series for customers' drilling programs and describes converting rigs to that package.

Revenue over time

Dayrate drilling Mobilization Reimbursables Early termination Capital modification Other Intangible

$250M$125M$0

FY2019 FY2020 FY2021 FY2022 FY2023

Who Did They Compete With?

Competes with Helmerich & Payne, Patterson-UTI Energy, Nabors Industries, and Precision Drilling