Keep Your Eyes on This Stock: Independence Contract Drilling (NYSE:ICD)

Independence Contract Drilling (NYSE:ICD) stock observed trading -77.82% off 52-week high price. On the other end, the stock has been noted -8.20% away from low price over the last 52-weeks. The stock disclosed a move of -33.51% away from 50 day moving average and -61.08% away from 200 day moving average. Moving closer, we can see that shares have been trading -16.29% off 20-day moving average. It has market cap of $87.67M.

On Aug. 1, 2019, Independence Contract Drilling  (NYSE:ICD)  reported financial results for the three months ended June 30, 2019 and also announced that its Board of Directors has authorized the Company to engage in a stock repurchase program of up to $10 million.

Second Quarter 2019 Highlights

  • Net loss of $12.9 million, or $0.17 per share.
  • Adjusted net loss, as defined below, of $5.5 million, or $0.07 per share. Adjusted net loss includes a charge of $2.7 million, or $0.03 per share, associated with a tax rate adjustment described below.
  • Adjusted EBITDA, as defined below, of $12.8 million.
  • Net debt, excluding finance leases, of $119.7 million.
  • Fleet utilization of 83.7%.
  • Fully burdened margin of $6,713 per day.

In the second quarter of 2019, the Company reported revenues of $52.9 million, a net loss of $12.9 million, or $0.17 per share, adjusted net loss (defined below) of $5.5 million, or $0.07 per share, and adjusted EBITDA (defined below) of $12.8 million.  Included in net loss and adjusted net loss during the quarter was a tax charge of $2.7 million, or $0.03 per share, associated with a change in expected tax rate compared to the first quarter of 2019 which resulted in a reversal of the tax benefit recorded during the first quarter of 2019.

These results compare to revenues of $25.8 million, a net loss of $3.3 million, or $0.09 per share, adjusted net loss of $3.2 million, or $0.08 per share, and adjusted EBITDA of $5.0 million in the second quarter of 2018, revenues of $60.4 million, a net loss of $2.4 million, or $0.03 per share, an adjusted net income of $2.9 million, or $0.04 per share, and adjusted EBITDA of $15.8 million in the first quarter of 2019.  Net income and adjusted net income during the first quarter of 2019 included a tax benefit of $2.5 million, or $0.03 per share.

Chief Executive Officer Anthony Gallegos commented, Second quarter market conditions softened more than original expectations as our customers increased their focus on budget discipline in light of investor demands and commodity price volatility.  As a result, we exited the quarter with 22 rigs operating in the field.  Since exiting the second quarter, we have seen improvement in our contracted AC pad-optimal rig count and we expect to add more contracted rigs during the third quarter. The rig releases experienced during the second quarter caused higher and longer-than-expected, transitory downtime and cost inefficiencies for our rig fleet during the quarter.

The USA based company Independence Contract Drilling moved with change of -15.15% to $1.12 with the total traded volume of 441538 shares in recent session versus to an average volume of 249.81K. The stock was observed in the 5 days activity at -13.85%. The one month performance of stock was -22.22%. ICD’s shares are at -60.00% for the quarter and driving a -72.21% return over the course of the past year and is now at -64.10% since this point in 2018.  Right now the stock beta is 1.88. The average volatility for the week and month was at 13.98% and 9.25% respectively. There are 78.28M shares outstanding and 69.22M shares are floated in market.

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