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EnerCom Oil and Gas Conference – Independence Contract Drilling, Inc.

Independence Contract Drilling, Inc. · Aug 13, 2019 · 26 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. EnerCom Oil and Gas Conference – Independence Contract Drilling, Inc. – slide 1
    ENERCOM THE OIL & GAS CONFERENCE August 11-13, 2019 www.icdrilling.com
  2. EnerCom Oil and Gas Conference – Independence Contract Drilling, Inc. – slide 2
    Company Background 8/8/2019 3 3
  3. EnerCom Oil and Gas Conference – Independence Contract Drilling, Inc. – slide 3
    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…
  4. EnerCom Oil and Gas Conference – Independence Contract Drilling, Inc. – slide 4
    Corporate Snapshot Proforma Capitalization & Liquidity: 6/30/19 (2) Sectors only pure play, pad-optimal USMM, unless otherwise noted growth story Share Price (/Share) 1.23 Share Outstanding (MM) 77.1 Fleet composed of 32…
  5. EnerCom Oil and Gas Conference – Independence Contract Drilling, Inc. – slide 5
    Financial Liquidity 130 million term loan Financial Liquidity Five-year term millions No amortization At June 30, 2019 Additional 15 million delayed- Cash 10.3 draw availability Minimal financial covenants Undrawn Revolver 37.5…
  6. EnerCom Oil and Gas Conference – Independence Contract Drilling, Inc. – slide 6
    Geographic Mix and Customer Relationships Active Rig Count by Basin Strong Customer Base ICD Customers 25% 75% Permian Haynesville / Eagleford (1 rig) 7
  7. EnerCom Oil and Gas Conference – Independence Contract Drilling, Inc. – slide 7
    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…
  8. EnerCom Oil and Gas Conference – Independence Contract Drilling, Inc. – slide 8
    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…
  9. EnerCom Oil and Gas Conference – Independence Contract Drilling, Inc. – slide 9
    Company Strategy 8/8/2019 10 10
  10. EnerCom Oil and Gas Conference – Independence Contract Drilling, Inc. – slide 10
    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…
  11. EnerCom Oil and Gas Conference – Independence Contract Drilling, Inc. – slide 11
    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+…
  12. EnerCom Oil and Gas Conference – Independence Contract Drilling, Inc. – slide 12
    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 2Q'19 Other…
  13. EnerCom Oil and Gas Conference – Independence Contract Drilling, Inc. – slide 13
    Free Cash Flow Generation Table summarizes ICD indicative free INDICATIVE FREE CASH FLOW (1) cash flow across a variety of revenue Rigs Operating / Utilization Revenue Per per day and rig utilization Day 18 20 22 24 26 28 30 32…
  14. EnerCom Oil and Gas Conference – Independence Contract Drilling, Inc. – slide 14
    Meaningful Player in Consolidating Pad-Optimal Market Market Share ICD Target Markets TX & 1,000 Operating Rigs(1) Contiguous States Operating Rigs Pad-Optimal & 900 Upgradeable (1)(2) 800 700 600 500 ICD 400 PDS HP…
  15. EnerCom Oil and Gas Conference – Independence Contract Drilling, Inc. – slide 15
    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…
  16. EnerCom Oil and Gas Conference – Independence Contract Drilling, Inc. – slide 16
    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…
  17. EnerCom Oil and Gas Conference – Independence Contract Drilling, Inc. – slide 17
    18
  18. EnerCom Oil and Gas Conference – Independence Contract Drilling, Inc. – slide 18
    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…
  19. EnerCom Oil and Gas Conference – Independence Contract Drilling, Inc. – slide 19
    2Q19 Highlights Adjusted net loss (excluding non-cash tax charge) of 0.03 per share Adjusted EBITDA of 12.8 million Net debt, excluding finance leases, of 119.7 million Fleet utilization of 83.7% Fully burdened margin of 6,713…
  20. EnerCom Oil and Gas Conference – Independence Contract Drilling, Inc. – slide 20
    Balance Sheet June 30, 2019 De ce mbe r 31, 2018 Asse ts Cash and cash equivalents 10,278 12,247 Accounts receivable, net 35,862 41,987 Inventories 2,443 2,693 Assets held for sale 13,796 19,711 Prepaid expenses and other…
  21. EnerCom Oil and Gas Conference – Independence Contract Drilling, Inc. – slide 21
    Income Statement Three Months Ended Six Months Ended June 30, March 31, June 30, 2019 2018 2019 2019 2018 Revenues 52,879 25,754 60,358 113,237 51,381 Costs and expenses Operating costs 37,453 17,966 39,333 76,786 36,892…
  22. EnerCom Oil and Gas Conference – Independence Contract Drilling, Inc. – slide 22
    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,…
  23. EnerCom Oil and Gas Conference – Independence Contract Drilling, Inc. – slide 23
    Non-GAAP Financial Measures Reconciliation of Net Loss to Adjusted Net Income (Loss): (Unaudited) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, March 31, June 30, June 30, 2019 2018 2019 2019 2018 Per Per Per…
  24. EnerCom Oil and Gas Conference – Independence Contract Drilling, Inc. – slide 24
    Non-GAAP Financial Measures (1) In the second quarter of 2019, we recorded an impairment of 5.9 million to reflect (i) a 3.1 million impairment of non-marketable SCR drilling equipment on rigs that will be upgraded, (ii) a 1.1…
  25. EnerCom Oil and Gas Conference – Independence Contract Drilling, Inc. – slide 25
    Non-GAAP Financial Measures Three Months Ended Six Months Ended June 30, June 30, March 31, June 30, June 30, 2019 2018 2019 2019 2018 Number of marketed rigs end of period (1) 30 14 32 30 14 Rig operating days (2) 2,330.2 1,264.7…
  26. EnerCom Oil and Gas Conference – Independence Contract Drilling, Inc. – slide 26

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