PRISM Oil & Gas Spotlight: Independence Contract Drilling

Independence Contract Drilling (NYSE: ICD) is leading the PRISM Emerging Oil & Gas Index on Tuesday afternoon with gains of 10.29%. The company has performed strongly over the past seven days after announcing that its Strategic Alternatives Committee has engaged Piper Sandler & Co. as financial advisor. The committee is made up of independent directors from the company’s board, who have come together to initiate a formal review process to evaluate alternatives with respect to refinancing Independence’s convertible notes and other strategic opportunities.

Independence has $5.0 million of convertible notes redeemed at par, five rig reactivations since the beginning of 2023 and a strong liquidity position of $26.2 million, making it an attractive value proposition for investors.

Chief Executive Officer Anthony Gallegos commented recently, “In spite of the market headwinds in 2023 associated with a declining overall rig count in our target markets, fiscal 2023 represented a period of significant accomplishments for ICD.”

According to Stonegate Capital Partners, Independence is positioning itself for long-term growth while maintaining robust operating results despite broader market conditions. The company saw year-over-year revenue decrease by 24% and adjusted EBITDA decreased by 47%. The company has stated it does not expect any rig reactivations until the second half of 2024 as it focused on stabilizing its rigs.

About Independence Contract Drilling, Inc.

Independence Contract Drilling 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 that are specifically engineered and designed to accelerate its clients’ production profiles and cash flows from their most technically demanding and economically impactful oil and gas properties. For more information, visit www.icdrilling.com.

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PRISM Oil & Gas Spotlight: Independence Contract Drilling

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