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Independence Contract Drilling, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in revenues to $37,992,000 from $44,164,000 in the same quarter the previous year. The decrease is attributed to lower contractual dayrates and a reduction in operating days.
Operating costs for the quarter increased to $29,674,000 from $27,494,000 in the same quarter of the previous year. This increase was primarily due to a decrease in operating days and an increase in cost per day.
The company reported a net loss of $18,494,000 for the quarter, compared to a net loss of $7,598,000 in the previous year. The increased loss is attributed to higher depreciation and amortization expenses and increased interest expenses.
Cash provided by operating activities was $29,089,000 for the nine months ended September 30, 2024, compared to $53,548,000 for the same period in 2023. The decrease is due to changes in working capital and increased net loss.
Independence Contract Drilling had a negative working capital of $9,500,000 as of September 30, 2024. The company is evaluating strategic alternatives to address liquidity and capital structure challenges.
The filing also details the company's delisting from the New York Stock Exchange due to non-compliance with market capitalization requirements. Trading of the company's common stock commenced on the OTCQX Best Market under the symbol ICDI.
The company is in discussions with holders of its Convertible Notes regarding potential refinancing and liquidity options, including the possibility of a Chapter 11 restructuring.
Independence Contract Drilling does not anticipate cash dividend payments to common stockholders in the near future.
The company continues to focus on marketing its drilling rigs in core markets, despite challenges posed by industry consolidation and increased operating efficiencies among customers.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Independence Contract Drilling Inc. quarterly 10-Q report dated November 19, 2024. To report an error, please email earnings@qz.com.