Tue, Nov 19, 10:01 PM (230 days ago)
Independence Contract Drilling, Inc. (ICDI) reported significant financial challenges in its Q3 2024 results, with revenues declining 14% to $38 million compared to Q3 2023, attributed to decreased dayrates and operating days. The net loss increased to $18.5 million from $7.6 million year-over-year, driven by higher operating costs and increased depreciation. The company’s liquidity position is concerning, with a negative working capital of $9.5 million and total liquidity of $19.1 million as of September 30, 2024, including $6.1 million in cash and $13 million available on its Revolving ABL Credit Facility. The company is facing pressures from declining oil and gas prices, leading to reduced demand for drilling services, particularly in the Haynesville Shale. Additionally, ICDI's common stock was delisted from the NYSE due to market capitalization issues and now trades on OTCQX. The company is currently negotiating with convertible noteholders to restructure its debt, reflecting ongoing financial uncertainties and potential future liquidity constraints.