20th Annual B. Riley FBR Investor Conference May 23, 2019 www.icdrilling.com
Investment Thesis Sectors only pure-play, pad-optimal growth story focused solely on North Americas most attractive oil and gas basins Sidewinder strategic combination more than doubled fleet size by Scale, combining complementary…
Corporate Snapshot Proforma Capitalization & Liquidity: 3/31/19 (2) Sectors only pure play, pad-optimal USMM, unless otherwise noted growth story Share Price (/Share) 2.75 Share Outstanding (MM) 77.1 Fleet composed of 32 marketed…
ICD Today: Nothing has Changed but Everything is Different Post combination, ICDs strategic focus and operational priorities remain unchanged, but our ability to generate free cash flow and investor returns increased dramatically Pre…
Fleet & Operational Footprint 14 300 Series ShaleDriller Rigs(1) 1500 HP drawworks; 25K+ racking / 1M lb hook with only modest capex Oklahoma Three pump / four engine capable; drilling Arkansas optimization software capable New…
Geographic Mix and Customer Relationships Active Rig Count by Basin Strong Customer Base ICD Customers 25% 75% Permian Haynesville 7
Market Overview: Long-term View Oil prices generally range bound in Investor and capital market sentiment Continued innovation results in US shale forces E&Ps to focus on financial returns the 50bbl to 70bbl WTI range, plays becoming…
Pad-Optimal Drilling Fleet Characteristics Omni-Directional Walking 1500 HP Drawworks High-Pressure Mud Systems (7500 psi) Fast Moving AC Programmable Flexibility to provide differing equipment packages to meet particular…
Meaningful Player in Consolidating Pad-Optimal Market Market Share ICD Target Markets TX & 1,200 Operating Rigs(1) Contiguous States Operating Rigs Pad-Optimal & Upgradeable (1)(2) 1,000 800 600 ICD 400 PDS HP 200…
Drivers Towards Returns / Free Cash Flow Through Oil and Gas Cycle Operational and Financial Post combination integration substantially complete 6/30/19 Synergies from Sidewinder Expect realization of runrate synergies of 10 million+…
Synergy Realization Driving Overhead Efficiencies SG&A Expense as a % of Revenue 14% 12% Full realization of strategic combination 10% synergies expected 3Q19 8% 6% 4% 2% 0% ICD 3Q'18: Pre-SW ICD 1Q'19 Other…
Attractive Free Cash Flow Generation Free cash flow grows organically through the following opportunities: Indicative Organic Growth Opportunities(1) Repricing of older legacy contracts 120,000 to current market day rates and…
Free Cash Flow Generation Across the Entire Cycle In an oil and gas environment in 140,000 Indicative Adjusted EBITDA which oil prices are range bound 000s between 50 bbl and 70 bbl, ICD 120,000 is structured to generate free cash…
M&A Opportunities Sidewinder combination illustrates Pad-optimal / upgradeable operating rigs in ICD how consolidating transactions target markets of Texas and contiguous states owned by private or public drilling contractors with…
Financial Liquidity 130 million term loan Financial Liquidity Five-year term millions No amortization At March 31, 2019 Additional 15 million delayed- Cash 12.5 draw availability Minimal financial covenants Undrawn Revolver…
Closing Summary Maintaining a Pad-Optimal drilling fleetwhile increasing Returns and Free Cash Flow by focusing on operational excellence and executable high-return internal Growth opportunities High-quality pad-optimal drilling…
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Balance Sheet March 31, 2019 December 31, 2018 Assets Cash and cash equivalents 12,549 12,247 Accounts receivable, net 42,137 41,987 Inventories 2,738 2,693 Assets held for sale 19,369 19,711 Prepaid expenses and other current…
Income Statement Three Months Ended March 31, December 31, 2019 2018 2018 Revenues 60,358 25,627 62,789 Costs and expenses Operating costs 39,333 18,926 39,908 Selling, general and administrative 4,545 3,479 5,030…
Non-GAAP Financial Measures Adjusted net income and loss, EBITDA and adjusted EBITDA are supplemental non-GAAP financial measure that are used by management and external users of our financial statements, such as industry analysts,…
Non-GAAP Financial Measures Reconciliation of Net Loss to Adjusted Net Income (Loss): (Unaudited) Three Months Ended March 31, March 31, December 31, 2019 2018 2018 Per Per Per Amount Amount Amount Share Share Share (in…
Non-GAAP Financial Measures (1) In the first quarter of 2019, we recorded an impairment to assets held for sale of 2.0 million to reflect the proceeds received when these assets were sold at auction in April 2019. In the fourth…
Non-GAAP Financial Measures Three Months Ended March 31, March 31, December 31, 2019 2018 2018 Number of marketed rigs end of period (1) 32 14 32 Rig operating days (2) 2,728.1 1,259.4 2,817.5 Average number of operating rigs (3)…
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