Independence Contract Drilling, Inc. U.S. Land-Based Contract Driller Providing Premium Services Successfully Completed IPO in August 2014 (NYSE: ICD). 14 Rig Fleet Composition: Sectors most modern and technologically advanced…
Right People. Seasoned management team with over 200 years of industry leading land and offshore drilling and HSE performance focused on operational excellence and best in class safety performance. Nimble organization capable of…
Right Equipment. ShaleDriller TM rigs are custom designed to reduce cycle times and drill more wells per year: - Integrated multi-directional walking system designed to optimize pad drilling. - Move in any direction and quickly…
Right Time. US land drilling will be the accelerator for increased shale oil and natural gas production while the US strives to become energy independent. Continued shift to manufacturing well bores through multi-well pad drilling…
ICD Operational Footprint New Construction Q32015 Target Areas of Growth Texas, Louisiana, Oklahoma and www.icdrilling.com New Mexico 8 May 1, 2015
Current Market Conditions Operators remain focused on unconventional assets. Operators focused on differentiating technology that reduces overall costs to develop reserves. Operators focused on horizontal development rather…
Rig Replacement Cycle In 2008, only 9% of US land drilling fleet was AC drive. Today, over 50% of the fleet is Legacy AC Rigs: AC drive. Rigs: 49% 51% Due to shortage of pad-optimal equipment, 39% of horizontal wells are…
Advantages of AC Eliminate Errors and Increase Accuracy With Digital and Analog Displays: - pump strokes - weight on bit Increased Rate of - RPM and torque = Penetration (ROP) - pressures (drilling or well control) Direct…
Pad Optimal Rigs As Defined by Operators 1,500 hp. Four day conventional move capability SAFE By Design. Dual Fuel. 7,500 psi mud systems. Omni Directional Walking System Ability to walk over raised wellheads and adjust to…
ICD ShaleDriller 200 Series PAD OPTIMAL Hook load: 750,000 Vertical Depth Rating: 20,000 Horse Power Rating: 1,500 Mud Pumps: 1600 HP, 5,000/7500 psi Omni-Directional Walking System Ability to Walk Over Well Heads AC Drive and…
Shaledriller = Enabling Technology BOPCo, L.P. Drilling Island Project Eddy County New Mexico Potential for +40 wells on single pad. Bifuel drilling operation (1,500/day savings). Concrete coffin cellars for multi-wells. SEMS II…
ICD Operating Utilization Culture dedicated to safety and operational excellence drives ICD value proposition to E&P operators. ICD newbuilds operate at highest industry standards on their very first wells: Modular…
Days Equal Value Target: 15 Days based on existing wells in the field. Saved 10 days 250,000 www.icdrilling.com 17
HSE Culture Evolution ICD Total Recordable Incident Rates Year End 2014 - 1.14 Rolling 12 Month April 15 1.04 18
Quality Customer Base ICD customers are well capitalized with established, long-term drilling plans. Demand the highest quality and safest operations. ICD has Contracts in-place with some of the Most Utilize pad drilling to…
Term Contract Coverage 2015 Contract Backlog Greater than 2014 revenues. Greater operating days than 2014. At higher average day rate than 2014. Drives increase in operating cash flows even in face of declining market…
Control Over Cost Chain Modular manufacturing drives Modular Manufacturing operational efficiencies and eliminates fixed costs. Rig crews assemble rigs, driving safety and uptime. Subassemblies manufactured by select vendors with…
Delivering Value to Stakeholders Large Operators are Leading Unconventional Resource Capture ShaleDrillerTM Offers a Major Secular Shift in Compelling Value Unconventional Proposition to E&P Development is Customers…
Financial Strategy and Capitalization Financial Strategy Financial Flexibility and Liquidity millions Maintain conservative balance sheet: - Debt/EBITDA ratio of less than 3.0x throughout completion of 2015 rig build. Cash…
2015 Capex Budget Provides Flexibility Completion of 3 new builds pursuant to multi-year term contracts. Completion of critical spare inventory. Maintenance capex. Allocation for growth capex: - Upgrade 100 Series rigs or…
APPENDICES
Income Statement Three Months Ended March 31, December 31, 2015 2014 2014 Revenues 22,306 13,549 23,014 Costs and expenses Operating costs 13,106 8,777 12,685 Selling, general and administrative 3,827 2,094 4,437 Depreciation and…
Balance Sheet March 31, 2015 December 31, 2014 Assets Cash and cash equivalents 11,043 10,757 Accounts receivable, net 17,999 19,127 Inventory 2,191 2,124 Deferred taxes 364 323 Prepaid expenses and other current assets 3,535…
Operating Data Three Months Ended March 31, March 31, December 31, 2015 2014 2014 Number of completed rigs end of period (1) 13 6 11 Rig operating days (2) 951.2 607.3 921.4 Average number of operating rigs (3) 10.6 6.7 10.0 Rig…
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