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Transformative Refinancing Overview – Independence Contract Drilling, Inc.

Independence Contract Drilling, Inc. · Mar 21, 2022 · 11 slides

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Slides

  1. Transformative Refinancing Overview – Independence Contract Drilling, Inc. – slide 1
    Independence 1 Contract Drilling, Independence Contract Drilling, Inc. Inc. Transformative Refinancing Overview March 21, 2022
  2. Transformative Refinancing Overview – Independence Contract Drilling, Inc. – slide 2
    Introduction: ICD 3 Sectors only publicly-traded, pure-play, pad-optimal, super-spec drilling contractor focused solely on North Americas most attractive oil and natural gas basins Marketed fleet comprised entirely of pad-optimal,…
  3. Transformative Refinancing Overview – Independence Contract Drilling, Inc. – slide 3
    Summary Transaction Terms 4 Floating Rate Convertible Senior Secured PIK Toggle Notes Due 2026 (Notes) Issuer Independence Contract Drilling, Inc. (NYSE: ICD) (the Company) Amount 157.5 million; optional 7.5 million uncommitted…
  4. Transformative Refinancing Overview – Independence Contract Drilling, Inc. – slide 4
    Approximate Sources and Uses 5 Approximate Sources and Uses ( in millions) Sources Uses New Notes 157.5 Repay Term Loan and Accrued Interest(1) 141.7 Third Term Loan Amendment Payment 1.0 Sidewinder Merger Consideration due…
  5. Transformative Refinancing Overview – Independence Contract Drilling, Inc. – slide 5
    Strategic Merits 6 The refinancing checks all the boxes to ensure that ICD has the runway to achieve its financial and operational goals Eliminates Near-Term Maturities Extends debt maturity from October 2023 to March 2026 No…
  6. Transformative Refinancing Overview – Independence Contract Drilling, Inc. – slide 6
    Immediate Liquidity Boost 7 New Convertible Notes provide PIK option and significant cash interest savings in the future which can be deployed to accretively reinvest in the business. Unfunded accordion provides capital flexibility…
  7. Transformative Refinancing Overview – Independence Contract Drilling, Inc. – slide 7
    Clear Path to Deleveraging 8 Rising Dayrates Drive Lower Leverage Multiples (Annualized EBITDA in millions) (Debt in millions) 200 Debt / EBITDA Multiples 200 4.5x 3.0x 2.3x Total Debt Principal + One Year PIK(1) 150…
  8. Transformative Refinancing Overview – Independence Contract Drilling, Inc. – slide 8
    Dilution Analysis 9 Existing Shareholders as Percent of Enterprise Value(1) Pre-Deal Common Equity Noteholders' Equity Debt or Convertible Notes 78.8% 73.4% 4.4% 21.2% 22.2% (2) As of 12/31/21 Today (Fully…
  9. Transformative Refinancing Overview – Independence Contract Drilling, Inc. – slide 9
    Significant Potential Value Uplift 10 Significant potential for uplift as the overhang related to our prior leverage profile gives way to imbedded value in our premier fleet. Newbuild super-spec rigs estimated to cost 25+ million…
  10. Transformative Refinancing Overview – Independence Contract Drilling, Inc. – slide 10
    Flexibility Positions the Company for Continued Growth 11 No near term maturity Ability to convert with conversion prices in line with market price Other equity offering of this magnitude would have been impossible and any sizable…
  11. Transformative Refinancing Overview – Independence Contract Drilling, Inc. – slide 11
    12 Highest Asset Quality 100% Super Spec - Pad Optimal Marketed Fleet with Best Geographic Fleet 100% Dual-Fuel Focus Enabled / Electric Hi- Geographic Locations Line Capable: Focused on Most Prolific Substantial GHG Oil and…

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