New contract extensions add 3 rig-years of backlog; board approves another ShaleDriller newbuild
Carrying on from Q4, all 14 of Houston-based Independence Contract Drilling, Inc.’s (ticker: ICD) ShaleDriller rigs are currently contracted and operating under term contracts.
As of December 31, 2017, the company’s proforma backlog of revenues from contracts with original terms of six months or more, including contract extensions signed subsequent to year end, was $75 million. Approximately 88% of this backlog is expected to be realized during 2018.
CapEx
Capital expenditures in the fourth quarter of 2017, net of disposals, were $4.2 million, including $2.5 million of payments for third quarter deliveries.
The company’s capital expenditure budget for 2018 is $20.5 million, including $10 million associated with the completion of one additional newbuild rig.
Operational results
In the fourth quarter of 2017, the company’s fleet operated at 100.0% utilization and recorded 1,289 revenue days. There were no revenue days earned on a standby-without-crew basis in the fourth or third quarters of 2017.
Operating revenues in the fourth quarter of 2017 totaled $25.0 million, compared to $23.4 million in the third quarter of 2017 and $18.0 million in the fourth quarter of 2016. On a revenue-per-day basis, revenues were $18,338 per day in the fourth quarter of 2017. Operating costs in the fourth quarter of 2017 totaled $18.8 million.
Financial results
In the fourth quarter of 2017, Independence had a net loss of $5.7 million, or $(0.15) per share. For the year ended December 31, 2017, the company reported revenues of $90.0 million, a net loss of $24.3 million, or $(0.64) per share.
CEO Byron Dunn commented, “The fourth quarter represented a significant milestone for ICD as we generated record revenue days on 100% utilization of our entire rig fleet. Market conditions continue to improve since year end, with demand and dayrates increasing for ICD’s ShaleDriller rigs.
“Since year-end, we extended contracts for four rigs, adding three rig years of backlog. As a result of improving market conditions and outlook for our business, I am pleased to announce that our board has approved completion of our next newbuild ShaleDriller rig, which we anticipate entering the market in early-to-mid third quarter of this year.”
ICD’s ShaleDriller rigs can be configured to walk in multiple directions over existing wellheads – three hour release to spud times, the company said. “Rig up and down does not require the use of cranes.”
