Independence Contract Drilling Breakout Notes
Byron A. Dunn, president and CEO of Independence Contract Drilling, (ticker: ICD) presented today at EnerCom’s The Oil & Gas Conference® 22.
Independence Contract Drilling—a drilling service company—has oriented its services towards horizontal shale plays that are now the norm in the oil industry with the introduction of the ShaleDriller® series rigs, which are optimized for pad drilling.
During Q2, Independence reported fleet utilization of 93.9%, and 1,111 revenue days. All 14 of the company’s ShaleDriller® rigs are contracted—with plans for the 14th to spud at the end of July.
During the company’s breakout session, management was asked the following questions:
- Your presentation indicated there could be a 200-300 rig drop, why is that?
- You slide said the “end of the day rate” is approaching, could you justify that?
- Are you worried you’re going to burn up your new rigs during low cost times?
- Is there a scenario where you expand out of Texas?
- What do you need to see to complete your two in-progress rigs, and what is next for your build-out?
- Does it make sense to buy back your stock?
- How should we think about upgrading the remaining inventory of rigs?
- Are you seeing differences between the behavior of mid and large-cap companies?
- If approximately 80% of the U.S. drilling is horizontal, how much of that is pad drilling?
- Can you talk about information management and drilling?
Independence Contract Drilling presented at EnerCom’s 2017 The Oil & Gas Conference®.
You can listen to the company’s presentation by clicking here.
