Download PDF

1. Company Snapshot

1.a. Company Description

Independence Contract Drilling, Inc.provides land-based contract drilling services for oil and natural gas producers in the United States.The company constructs, owns, and operates a fleet of pad-optimal ShaleDriller rigs in the Permian Basin, the Haynesville Shale, and the Eagle Ford Shale.


Its fleet consists of 24 rigs.Independence Contract Drilling, Inc.was incorporated in 2011 and is headquartered in Houston, Texas.

Show Full description

1.b. Last Insights on ICD

Independence Contract Drilling's recent performance was negatively driven by a 28% sequential decrease in Adjusted EBITDA, resulting in a net loss of $16.7 million, or $1.15 per share. The company's average rigs working decreased by 4% sequentially, leading to a 18% sequential decrease in fully burdened margin per day. Additionally, the company's adjusted net debt increased by 3% sequentially, indicating a potential liquidity concern.

1.c. Company Highlights

2. Transcript Summary

Unfortunately this company is not part of our coverage yet. But as part of your subscription plan you can request it by clicking just below and we'll process.

Request Coverage

3. NewsRoom

Card image cap

Tradeweb Introduces T-bill Trading on ICD Portal

Jun -26

Source: businesswire.com

Card image cap

Independence Contract Drilling, Inc. Announces Commencement of Trading on the OTCQX Best Market under the Symbol ICDI Effective August 29, 2024

Aug -28

Source: prnewswire.com

Card image cap

Stonegate Updates Coverage on Independence Contract Drilling, Inc. (ICD) 2Q24

Aug -09

Source: newsfilecorp.com

Card image cap

Independent Contract Drilling (ICD) Reports Q2 Loss, Tops Revenue Estimates

Aug -07

Source: zacks.com

Card image cap

Independence Contract Drilling, Inc. Reports Financial Results for the Second Quarter Ended June 30, 2024

Aug -07

Source: prnewswire.com

Card image cap

NeuroOne® Granted Approval of ICD-10 Procedure Code for sEEG RF Ablation

Jun -20

Source: globenewswire.com

Card image cap

Boston Scientific (BSX) mCRM System Study Outcome Favorable

May -20

Source: https://www.zacks.com

Card image cap

Stonegate Capital Partners Updates Coverage on Independence Contract Drilling, Inc (ICD) Q1 2024

May -02

Source: newsfilecorp.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.47%)

6. Segments

Dayrate Drilling

Expected Growth: 4.5%

Independence Contract Drilling's 4.5% dayrate drilling growth driven by increasing demand for oil and gas, improved operational efficiency, and strategic fleet expansion. Additionally, rising shale drilling activities, growing international operations, and favorable market conditions contribute to the growth.

Reimbursables

Expected Growth: 4.2%

The 4.2% growth in reimbursables from Independence Contract Drilling, Inc. is driven by increased drilling activity, higher day rates, and improved operational efficiency. Additionally, the company's strategic expansion into new markets and its focus on providing high-specification rigs have contributed to the growth.

Early Termination

Expected Growth: 3.8%

Early termination from Independence Contract Drilling, Inc. is driven by increasing demand for drilling services, improved operational efficiency, and strategic cost management. The 3.8% growth is also attributed to the company's ability to secure lucrative contracts, expand its fleet, and capitalize on the rising oil prices.

Mobilization

Expected Growth: 4.8%

Mobilization from Independence Contract Drilling, Inc. driven by increasing demand for oil and gas, improved operational efficiency, and strategic expansion into new markets, resulting in 4.8% growth. Additionally, investments in technology and equipment upgrades, as well as a strong balance sheet, have enabled the company to capitalize on emerging opportunities.

Capital Modification

Expected Growth: 5.2%

Capital modification from Independence Contract Drilling, Inc. is driven by increasing demand for oil and gas, rising rig utilization rates, and strategic acquisitions. Additionally, the company's focus on operational efficiency, cost reduction, and investment in new technologies have contributed to the 5.2% growth.

Other

Expected Growth: 4.0%

Independence Contract Drilling, Inc.'s 4.0% growth is driven by increasing demand for oil and gas, rising rig utilization rates, and expansion into new markets. Additionally, the company's focus on pad-optimal drilling and its fleet of high-specification rigs have improved operational efficiency, leading to higher revenue and profitability.

7. Detailed Products

Land Drilling Rigs

Independence Contract Drilling, Inc. provides land drilling rigs for oil and gas exploration and production companies, offering a range of drilling services and equipment to support drilling operations.

Pad Optimal Drilling (POD) Rigs

The company's POD rigs are designed for multi-well pad drilling, offering increased efficiency and reduced costs for operators.

Super Spec Rigs

Independence Contract Drilling's Super Spec rigs are high-performance drilling rigs designed for complex drilling operations, offering advanced features and capabilities.

Drilling Services

The company offers a range of drilling services, including drilling, completion, and workover operations, to support operators' drilling programs.

Wellbore Placement Services

Independence Contract Drilling provides wellbore placement services, including directional drilling and navigation, to optimize wellbore placement and improve drilling efficiency.

8. Independence Contract Drilling, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Independence Contract Drilling, Inc. is medium because while there are alternative drilling services available, the company's specialized equipment and experienced personnel provide a competitive advantage.

Bargaining Power Of Customers

The bargaining power of customers is low for Independence Contract Drilling, Inc. because the company's services are specialized and customers have limited alternatives.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for Independence Contract Drilling, Inc. because while the company relies on a few key suppliers, it also has some flexibility to negotiate prices and terms.

Threat Of New Entrants

The threat of new entrants is high for Independence Contract Drilling, Inc. because the industry is attractive and there are few barriers to entry, making it easier for new companies to enter the market.

Intensity Of Rivalry

The intensity of rivalry is high for Independence Contract Drilling, Inc. because the industry is highly competitive, with many companies competing for a limited number of contracts.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 46.06%
Debt Cost 23.94%
Equity Weight 53.94%
Equity Cost 28.38%
WACC 26.33%
Leverage 85.39%

11. Quality Control: Independence Contract Drilling, Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
NCS Multistage Holdings

A-Score: 5.3/10

Value: 7.9

Growth: 4.8

Quality: 6.9

Yield: 0.0

Momentum: 10.0

Volatility: 2.3

1-Year Total Return ->

View Full Report
Stock-Card
PEDEVCO

A-Score: 4.6/10

Value: 8.7

Growth: 7.3

Quality: 7.1

Yield: 0.0

Momentum: 0.5

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
Dawson Geophysical

A-Score: 4.5/10

Value: 7.2

Growth: 4.6

Quality: 3.2

Yield: 4.0

Momentum: 8.0

Volatility: 0.0

1-Year Total Return ->

View Full Report
Stock-Card
Borr Drilling

A-Score: 4.4/10

Value: 8.6

Growth: 8.2

Quality: 4.6

Yield: 2.0

Momentum: 1.0

Volatility: 2.0

1-Year Total Return ->

View Full Report
Stock-Card
Hallador Energy

A-Score: 3.8/10

Value: 5.5

Growth: 1.4

Quality: 3.5

Yield: 0.0

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
Independence Contract Drilling

A-Score: 3.7/10

Value: 10.0

Growth: 3.8

Quality: 2.4

Yield: 0.0

Momentum: 5.0

Volatility: 1.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.59$

Current Price

0.59$

Potential

-0.00%

Expected Cash-Flows