Independence Contract Drilling Inc (ICD) 2023 Q3 法說會逐字稿

Good morning, and welcome to the Independence Contract Drilling third quarter 2023 financial results conference call. All participants will be in a listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask a question. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Philip Choyce, Executive Vice President and Chief Financial Officer. Please go ahead.

早安，歡迎參加獨立合約鑽井公司 2023 年第三季財務業績電話會議。所有參與者將處於僅聽模式。 （操作員說明）今天的演示結束後，將有機會提問。 （操作員說明）請注意，正在記錄此事件。現在我想將會議交給執行副總裁兼財務長 Philip Choyce。請繼續。

Good morning, everyone, thank you for joining us today to discuss ICD's third-quarter 2023 results. With me today is Anthony Gallegos our President and Chief Executive Officer. Before we begin, I would like to remind all participants that our comments today will include forward-looking statements, which are subject to certain risks and uncertainties. A number of factors and uncertainties could cause actual results in future periods to differ much materially from what we talked about today.

大家早安，感謝您今天加入我們討論 ICD 2023 年第三季業績。今天與我在一起的是我們的總裁兼執行長安東尼·加萊戈斯 (Anthony Gallegos)。在開始之前，我想提醒所有參與者，我們今天的評論將包括前瞻性陳述，這些陳述存在一定的風險和不確定性。許多因素和不確定性可能導致未來時期的實際結果與我們今天討論的結果大不相同。

For complete discussions of these risks, we encourage you to read the company's release and our documents on filed with the SEC. In addition, we refer to non-GAAP measures starting the call. Please refer to the earnings release and our public filings for a full reconciliation of net loss to adjusted net loss, EBITDA and adjusted EBITDA, and for definitions of our non-GAAP measures. With that, I'll turn it over to Anthony for opening remarks.

為了完整討論這些風險，我們鼓勵您閱讀公司的新聞稿和我們向 SEC 提交的文件。此外，我們在電話會議中提到了非公認會計準則措施。請參閱收益報告和我們的公開文件，以了解淨虧損與調整後淨虧損、EBITDA 和調整後 EBITDA 的全面對賬，以及我們的非 GAAP 指標的定義。接下來，我將把它交給安東尼致開幕詞。

Hello, everyone, thank you for joining us for our third-quarter 2023 earnings conference call. During my prepared remarks today, I want to talk about three topics: first, I'll talk about the super-spec rig market; second, I want to talk about the progress we made on some important strategic initiatives during the third quarter; and lastly, I want to close out talking about our plans as we exit 2023.

大家好，感謝您參加我們的 2023 年第三季財報電話會議。在我今天準備的發言中，我想談三個主題：一是超規格鑽機市場；二是超規格鑽機市場。第二，我想談談第三季我們在一些重要策略舉措上的進展；最後，我想結束對 2023 年結束時我們的計劃的討論。

But first, just a few comments looking back on the third quarter, which was a meaningful quarter for ICD on several fronts. First and foremost, we believe the third quarter represents the low point for ICD operating utilization, as we expect our operating fleet utilization to increase over the next several quarters. The third quarter also represented the end of the transition of rigs from our Haynesville market to the Permian, and the elevated churn associated with repositioning our work in fleet with customers with longer-term drilling programs.

但首先，我們回顧一下第三季的一些評論，對於 ICD 來說，第三季在多個方面都是有意義的季度。首先也是最重要的是，我們認為第三季是 ICD 營運利用率的低點，因為我們預計我們的營運機隊利用率在未來幾季將會增加。第三季也標誌著鑽機從海恩斯維爾市場向二疊紀盆地過渡的結束，以及與具有長期鑽井計劃的客戶重新定位我們的船隊工作相關的客戶流失率上升。

During the quarter, we also saw increased rig inquiries that are leading to rig reactivations during the fourth quarter, and a line of sight for more reactivations in 2024. All of this manifested itself in our third quarter results. Philip will provide more details during his prepared comments, but overall, I see these third quarter results came in at the low end of our prior guidance.

在本季度，我們還看到鑽機詢價增加，導致第四季度鑽機重新啟用，並預計在 2024 年重新啟用更多鑽機。所有這些都在我們第三季度的業績中得到了體現。菲利普將在他準備好的評論中提供更多細節，但總的來說，我認為第三季的業績處於我們之前指導的低端。

Cost per day was impacted by higher labor costs, as we staffed up for known fourth quarter reactivations. We also had slightly lower operating days compared to expectations, driven by rig churn as we prioritized repositioning rigs with customers with longer-term development programs. During the third quarter, we continued the pursuit of our most important strategic initiative, which is deleveraging our balance sheet by paying down a second $5 million tranche of convertible notes at par.

每日成本受到勞動力成本上升的影響，因為我們為已知的第四季度重新啟動準備了人員。由於鑽機流失，我們的營運天數也略低於預期，因為我們優先考慮與具有長期開發計劃的客戶重新定位鑽機。在第三季度，我們繼續追求我們最重要的策略舉措，即透過以面額支付第二筆 500 萬美元的可轉換票據來去槓桿化我們的資產負債表。

We look forward to continuing to take advantage of these opportunities to pay down debt and we have one more at the end of the fourth quarter and four additional opportunities next year. Equally important to continuing to take advantage of paydown opportunities, is positioning the ICD fleet in a manner that optimizes refinancing opportunities for the convertible debt, when the debt refinancing, when that begins to open approximately 12 months from now.

我們期待繼續利用這些機會來償還債務，第四季末我們還有一個機會，明年還有四個機會。與繼續利用還款機會同樣重要的是，當債務再融資從現在起大約 12 個月開始開放時，以優化可轉換債務再融資機會的方式定位 ICD 機隊。

We believe that involves returning to approximately 21 rigs operating, with a higher concentration of 300 Series rigs, working for the right type of customer and stair-stepping our contractual day rates in a manner that maximizes day rate opportunities when we believe market conditions will be stronger. With that background, I'd like to talk a minute about the market super-spec rigs in our target markets, what we're seeing from a rig reactivation day rate perspective, and I assume these priorities as we navigate what we expect to see over the next several quarters.

我們認為，這涉及恢復大約21 個鑽機的運行，其中300 系列鑽機的集中度更高，為正確類型的客戶工作，並在我們認為市場狀況將改善時，以最大限度地提高日費率機會的方式逐步提高我們的合約日費率。更強。在此背景下，我想談談我們目標市場中的市場超規格鑽機，我們從鑽機重新激活日費率角度看到的情況，並且在我們瀏覽我們期望看到的情況時，我假設這些優先事項在接下來的幾個季度中。

As expected, we saw the US land rig count decrease over the third quarter. That was driven by the continued decline of drilling activity in the Haynesville and Permian, softer commodity prices during the summer, and strong capital discipline on the part of E&P companies. For ICD, this resulted in an overall decline in average operating rate rigs during the quarter. But as I mentioned before, we believe the third quarter is the bottom for us.

正如預期的那樣，我們看到美國陸地鑽井平台數量在第三季有所下降。這是由於海恩斯維爾和二疊紀盆地鑽探活動持續下降、夏季大宗商品價格疲軟以及勘探與生產公司嚴格的資本紀律所致。對於 ICD 來說，這導致該季度鑽機平均開工率整體下降。但正如我之前提到的，我們相信第三季是我們的底部。

Based upon what we are seeing, our expectation is that overall rig counts in our target markets will improve over the next several quarters. Some of these opportunities are high-grade efforts on the part of the E&P's attracted to our 300 series rigs. We expect the Haynesville to remain relatively muted until at least later in 2024. In the near term, I think the impending winter withdrawal season will determine Haynesville activity levels in the first-half of 2024.

根據我們所看到的情況，我們預計目標市場的整體鑽機數量將在未來幾季有所改善。其中一些機會是我們的 300 系列鑽機所吸引的勘探與生產部門的高水準努力。我們預計海恩斯維爾至少在 2024 年晚些時候之前將保持相對平靜。短期內，我認為即將到來的冬季撤退季節將決定海恩斯維爾 2024 年上半年的活動水平。

We also believe rig adds in the near-term are going to be weighted more toward privates, a key customer base for us. From one day rate perspective, in light of the existing softness in US land rig count and the fact that new contracting opportunities have only just began to emerge, we have seen some pressure on day rates. This is more pronounced for incremental rig adds than for renewals with existing customers. And as you might expect, there's more day rate pressure in the Haynesville that in the Permian.

我們也認為，短期內增加的鑽孔機將更偏向私人客戶，這是我們的關鍵客戶群。從每日費率角度來看，鑑於美國陸地鑽井平台數量目前疲軟以及新的承包機會才剛開始出現，我們已經看到日費率面臨一些壓力。對於增量鑽機添加而言，這一點比現有客戶的續約更為明顯。如您所料，海恩斯維爾的日費壓力比二疊紀更大。

Day rates for our 300 Series rigs have generally stabilized in the low $30,000 range. And for our 200 Series rigs, the high $20,000 range. But I'd be remiss if I did not mention there are instances where we have lost work to competitors who have gone below these levels. As we get through this initial wave of reactivations, our expectation is that opportunities for day rate improvement will increase, as smaller contractors' pad optimal fleets are more fully utilized and competition for incremental rig (technical difficulty) concentrates within your drilling contractors.

我們 300 系列鑽孔機的日費普遍穩定在 30,000 美元的低位範圍內。對於我們的 200 系列鑽孔機，價格高達 20,000 美元。但如果我沒有提到，在某些情況下，我們會因為低於這些水準的競爭對手而失去工作，那就是我的失職。隨著我們度過第一輪重新啟動浪潮，我們預計，隨著小型承包商的平台最佳機隊得到更充分的利用，以及增量鑽機（技術難度）的競爭集中在鑽井承包商內，日費率改善的機會將會增加。

We're also seeing increased demand for our 300 Series rigs, which are principally 100% utilized at this time, which is leading to increased opportunities for our 200 to 300 Series conversion solution. So what are the near-term priorities that we believe maximize our strategic objectives as we move forward in this expected uptick in activity? We like our fleet to return to 21 operating rigs by the middle of 2024, and we would like to continue increasing the penetration of our 300 Series rigs via our 200 to 300 series conversion, so that at least 75% of our operating rigs earning 300 series day rates by mid-2024.

我們也看到 300 系列鑽孔機的需求增加，目前這些鑽孔機基本上已 100% 利用率，這導致我們的 200 至 300 系列轉換解決方案的機會增加。那麼，當我們朝著預期的活動成長方向前進時，我們認為哪些近期優先事項可以最大限度地實現我們的策略目標呢？我們希望我們的機隊到 2024 年中期恢復到 21 台運營鑽機，並且我們希望透過 200 至 300 系列轉換繼續提高 300 系列鑽機的滲透率，以便至少 75% 的運營鑽機賺取 300到2024 年中期，系列日費率將公佈。

We also want to maintain our Haynesville presence to maximize opportunities there later in 2024 and beyond, when incremental LNG exportation capacity is expected to come online. We believe this setup maximizes ICD's opportunity to return to margin per day levels that existed prior to the 2023 slowdown. In the near term, as we reactivate rigs, there will be some day rate pressure, thus, we will be looking to sign most of our contracts on shorter-terms, which allow for contract renewals higher rates, when we believe the market will be stronger.

我們還希望維持我們在海恩斯維爾的業務，以便在 2024 年晚些時候及以後最大限度地利用那裡的機會，屆時預計將增加液化天然氣出口能力。我們相信，這種設定可以最大限度地提高 ICD 恢復到 2023 年經濟放緩之前的每日保證金水準的機會。短期內，隨著我們重新啟動鑽井平台，將會出現一些日費率壓力，因此，我們將尋求簽署短期合同，這樣當我們相信市場將會更強。

In addition, we want full payback on the initial contract or any reactivation that involves CapEx expenditures associated with our 200 to 300 Series conversion. But how are we doing pursuing these priorities? First, with respect to the Haynesville, I'm very pleased that we now have three of our four rigs there placed with customers' long-term drilling programs. We have one more 300 Series rigs in the Haynesville that we expect to contract here in the fourth quarter for an early 2024 reactivation.

此外，我們希望能夠全額收回初始合約或任何涉及與 200 至 300 系列轉換相關的資本支出的重新啟動。但我們如何追求這些優先事項呢？首先，關於海恩斯維爾，我很高興我們現在有四台鑽機中的三台在那裡用於客戶的長期鑽井計劃。我們在海恩斯維爾還有一台 300 系列鑽機，預計第四季度在這裡簽訂合同，並於 2024 年初重新啟動。

There was a lot of rig churn over the last few quarters to achieve this setup, but we believe that it behind us. Overall, in an environment which we return to 21 operating rigs mid-summer 2024, I'd like to have five operating in the Haynesville, which will be an appropriate balance in terms of commodity and basin exposure for our company, and allows us to leverage our strong brand and reputation for tailoring technology and equipment solutions to exceed our customers' expectations.

在過去的幾個季度中，為了實現這一設置，進行了大量的鑽機攪拌，但我們相信它已經過去了。總體而言，在我們於2024 年仲夏恢復21 個作業鑽機的環境中，我希望在海恩斯維爾有5 個作業鑽機，這將在我們公司的商品和盆地風險方面實現適當的平衡，並使我們能夠利用我們強大的品牌和聲譽來客製化技術和設備解決方案，超越客戶的期望。

We expect to end 2023 with 17 rigs operating, with another rig likely contracted for an early 2024 reactivation. In this regard, we've already signed two contracts for mid-fourth quarter reactivations, entering in advanced discussions for additional reactivations here in the fourth quarter. We also have begun dialogue for additional reactivations mid to late first quarter 2024. But I would consider those more in the early stages of discussion, which makes their outcomes much harder to predict at this time, given the indecisiveness and lack of formal guidance from E&Ps regarding their 2024 upstream CapEx plans.

我們預計到 2023 年底，將有 17 座鑽井平台投入運營，另一座鑽井平台可能會在 2024 年初重新啟動。在這方面，我們已經簽署了兩份第四季度中期重新啟動的合同，並就第四季度進一步重新啟動進行了深入討論。我們也開始就 2024 年第一季中後期進一步重新啟動進行對話。但我會更多地在討論的早期階段考慮這些問題，鑑於勘探與生產部門的優柔寡斷和缺乏正式指導，目前更難預測其結果關於2024 年上游資本支出計畫。

With respect to 200 to 300 Series conversions, we completed two additional 200 to 300 Series conversions during the third quarter, and last week completed an additional conversion supported by a signed contract that more than guarantees full simple payback of the CapEx investments. With the completion of the most recent conversion last week, we have now converted four of our 200 Series rigs to 300 Series specification. Bigger-picture, this means that about three-quarters of the 17 to 18 rigs we expect to be operating at year-end will be 300 Series rigs, with opportunities to increase that percentage as we move through 2024.

關於200 至300 系列轉換，我們在第三季度完成了另外兩次200 至300 系列轉換，並於上週完成了由已簽署合約支持的另一次轉換，該合約不僅保證了資本支出投資的完全簡單回報。隨著上週最近一次轉換的完成，我們現在已將四台 200 系列鑽孔機轉換為 300 系列規格。從更大的角度來看，這意味著我們預計年底運營的 17 至 18 台鑽機中約有四分之三將是 300 系列鑽機，隨著我們進入 2024 年，這一比例有機會增加。

This is big for us as these conversions have important strategic implications for ICD, as they provide higher margin potential and additional exposure to the rig market segment with the highest specification requirements for the most technologically demanding work in the industry. By comparison, if you look at the end of the first quarter of this year when we were generating record margins and operated approximately 20 rigs, only half of those rigs were 300 Series rigs. In addition to the conversions, we are continuing to execute on our rollout of our ICD impact offerings, including technology.

這對我們來說意義重大，因為這些轉換對ICD 具有重要的戰略意義，因為它們提供了更高的利潤潛力，並為鑽機市場領域提供了額外的機會，對行業中技術要求最高的工作具有最高的規格要求。相較之下，如果你看看今年第一季末，當時我們創造了創紀錄的利潤並運營了大約 20 台鑽機，那麼這些鑽機中只有一半是 300 系列鑽機。除了轉換之外，我們還將繼續推出 ICD 影響產品，包括技術。

We deployed additional systems during the third quarter. And also here in the fourth quarter, including oscillation, stick-slip mitigation, and back to bottom software, EDR packages, and hydropipe systems, and we will have additional rigs operating using the utility grid here in the fourth quarter. We are excited about what ICD impact means for our customers, the environment, and other stakeholders of our company going forward. And I expect the provision of these offerings will continue to enhance our financial performance as I indicated to you during our last earnings call.

我們在第三季部署了更多系統。同樣在第四季度，包括振盪、黏滑緩解和回到底部軟體、EDR 軟體包和水管系統，我們將在第四季度使用公用電網運行更多鑽機。我們對 ICD 的影響對我們的客戶、環境和我們公司的其他利害關係人意味著什麼感到興奮。正如我在上次財報電話會議上向您表示的那樣，我預計這些產品的提供將繼續提高我們的財務表現。

So rolling all this up, I'm confident that ICD has experienced the worst of the 2023 slowdown. And we have commenced adding working rigs and repositioning our fleet to maximize utilization and margin potential as market conditions improve. I'll make some additional concluding remarks before opening the call for questions, but right now, one of the call over to Philip to discuss our financial results and outlook in a little more detail.

因此，綜合所有這些，我相信 ICD 已經經歷了 2023 年經濟放緩最嚴重的時期。隨著市場狀況的改善，我們已經開始增加工作鑽機並重新定位我們的船隊，以最大限度地提高利用率和利潤潛力。在開始提問之前，我將做一些額外的總結發言，但現在，其中一個電話請菲利普更詳細地討論我們的財務表現和前景。

Thanks, Anthony. During the quarter, we reported an adjusted net loss of $5.2 million or $0.37 per share, and adjusted EBITDA of $12.9 million. In calculating adjusted EBITDA and loss per share, we exclude $1.1 million associated with non-cash SG&A charges during the quarter, associated within a contract modification and extension. We operated 13.4 average rigs during the quarter, slightly below guidance, private provided on our prior conference call, caused by greater than expected idle days between contracts, as we repositioned rigs with customers for longer term drilling programs.

謝謝，安東尼。本季度，我們報告調整後淨虧損為 520 萬美元，即每股 0.37 美元，調整後 EBITDA 為 1,290 萬美元。在計算調整後的 EBITDA 和每股虧損時，我們排除了與本季度與合約修改和延期相關的非現金 SG&A 費用相關的 110 萬美元。我們在本季度平均運營了 13.4 個鑽機，略低於我們之前電話會議上提供的私人指導，這是由於合約之間的閒置天數超出預期，因為我們與客戶重新定位了鑽機以進行長期鑽探計劃。

During the quarter, we recognized $800,000 of transition costs associated with rig transitions. Early termination revenues during the quarter of $700,000 were recognized and offset partially these costs. Moving on to our per day statistics, these statistics exclude both the early termination revenues and transition expenses I just mentioned. Revenue per day during the quarter was $32,925, representing a 4.5% sequential decrease from the second quarter. Cost per day during the quarter was $18,900, essentially flat with the second quarter.

在本季度，我們確認了與鑽孔機轉換相關的 800,000 美元轉換成本。本季度 70 萬美元的提前終止收入已得到確認並部分抵消了這些成本。繼續我們的每日統計數據，這些統計數據不包括我剛才提到的提前終止收入和過渡費用。該季度每日收入為 32,925 美元，比第二季度環比下降 4.5%。本季每天的成本為 18,900 美元，與第二季基本持平。

And overall margin per day was $14,005, on the low end of guidance representing a 9.4% sequential decline compared to the second quarter. SG&A costs were $6.9 million during the quarter, which included approximately $2 million of stock-based and deferred compensation expenses. It also included the $1.1 million charge I previously mentioned.

每日整體利潤率為 14,005 美元，處於指導值的下限，與第二季相比連續下降 9.4%。本季的 SG&A 成本為 690 萬美元，其中包括約 200 萬美元的股票和遞延補償費用。它還包括我之前提到的 110 萬美元費用。

Breaking out the components, cash, SG&A, expenses of $3.8 million were essentially flat compared to the second quarter. And non-cash base SG&A compensation expense $2 million increased sequentially, driven by variable accounting on awards by the changes in our stock price and full quarter amortization of awards granted during the prior quarter. Interest expense during the quarter aggregated $9.2 million, which included $2.4 million associated with non-cash amortization of deferred issuance costs and debt discounts, which we excluded when presenting adjusted net income.

按組成部分計算，現金、SG&A 費用為 380 萬美元，與第二季基本持平。非現金的 SG&A 補償費用環比增加了 200 萬美元，這是由於我們的股價變化和上一季度授予的獎勵的全季度攤銷導致獎勵的可變會計處理所致。本季利息支出總計 920 萬美元，其中包括與遞延發行成本和債務折扣的非現金攤銷相關的 240 萬美元，我們在列報調整後淨利潤時將其排除在外。

Tax benefits for the quarter were diminimus and in line with guidance. During the quarter, cash payments for capital expenditures, net of disposals were approximately $3.9 million. For the remainder of the year, assuming we move towards 17 rigs reactivated by year-end, we expect capital expenditures during the fourth quarter to aggregate $5.5 million. This includes cost to complete two additional 200, 300 Series reactivations and purchases of additional strings of drill pipe.

本季的稅收優惠微乎其微，符合指導方針。本季資本支出現金支付（扣除處置費用）約 390 萬美元。在今年剩餘時間裡，假設我們在年底前重新啟用 17 個鑽井平台，我們預期第四季的資本支出總計為 550 萬美元。這包括完成兩次額外的 200、300 系列重新啟動和購買額外鑽桿串的成本。

Moving on to our balance sheet. So we continue to make progress towards debt reduction goals. We've repaid $5 million of convertible notes at par at quarter end and reduce revolver borrowings by $8.5 million during the quarter. The overall reduction and adjusted net debt during the quarter was $8 million. Our financial liquidity at quarter end was $21.7 million, comprised of cash on hand of $6 million and $15.7 million of availability under our revolving credit facility.

繼續我們的資產負債表。因此，我們繼續在實現債務削減目標方面取得進展。我們在季度末以面額償還了 500 萬美元的可轉換票據，並在本季度減少了循環借款 850 萬美元。本季整體減少和調整後的淨債務為 800 萬美元。截至季末，我們的財務流動性為 2,170 萬美元，其中包括 600 萬美元的手頭現金和循環信貸額度下的 1,570 萬美元的可用資金。

Now moving on to our fourth quarter guidance, we expect operating days to approximately 1,355 days, representing 14.7 average rigs going revenue during the quarter, with reactivations only partially benefiting the fourth quarter. We expect margin per day to come in between $11,700 to $12,300, with sequential decline related to lower day rates on contract renewals, slightly higher cost per day level, this contract mix becomes more heavily weighted towards the Permian Basin.

現在轉向我們的第四季度指導，我們預計作業天數約為 1,355 天，相當於本季度平均 14.7 個鑽機的收入，重新啟用僅使第四季度部分受益。我們預計每日保證金將在 11,700 美元至 12,300 美元之間，連續下降與合約續約日費率較低、每日成本水準略高有關，該合約組合更加偏向二疊紀盆地。

Breaking out the components, we expect revenue per day to range between $31,000 and $31,500. We also expect sequential cost efficiencies during the quarter associated with contract reactivations, with the cost per day expected to range between $19,200 to $19,600 per day. I think it's important to point out that only 4.5% of our expected fourth quarter revenue will be generated from legacy contracts executed in 2022. Plus, we believe the fourth quarter provides a reasonable estimation of the current spot day rate environment during the initial stages for the expected recovery in US land rig count.

按各個組成部分，我們預計每天的收入將在 31,000 美元到 31,500 美元之間。我們也預計本季與合約重新啟動相關的連續成本效率，預計每天的成本在 19,200 美元至 19,600 美元之間。我認為重要的是要指出，我們預期的第四季度收入中只有 4.5% 來自 2022 年執行的遺留合約。此外，我們認為第四季度為初始階段的當前現貨日費率環境提供了合理的估計。美國陸地鑽機數量的預期復甦。

Given only three of our current rig contracts extend past the first quarter of next year and then beyond the second quarter of next year, we believe we have positioned ICD to participate in a day rate recovery, driven by expected growth in the US rig count of the third quarter bottoms. Unabsorbed overhead expenses are expected to be about $600,000. We've excluded those expenses from our cost per day guidance. We do expect to incur rig reactivation expenses during the fourth quarter associated with the rehiring crew and the replenishment of operating supplies for the rig additions to our operating fleet during the fourth quarter and early 2024.

鑑於我們目前只有三份鑽機合約延續到明年第一季之後，然後再延續到明年第二季度之後，我們認為，在美國鑽機數量預期增長的推動下，我們已將ICD 定位為參與日費率復甦。第三季觸底。未吸收的管理費用預計約為 60 萬美元。我們已將這些費用排除在每日費用指導之外。我們確實預計第四季度將產生與重新僱用船員以及第四季度和 2024 年初為我們的營運船隊增加的鑽機補充營運供應相關的鑽機重新啟動費用。

Overall, we expect these will aggregate approximately $1 million during the quarter and are excluded from a margin per day guidance. We expect fourth quarter cash SG&A expense to be approximately $4 million. Stock based compensation expense should approximate $2 million, assuming no material changes to our stock price that would impact variable accounting on awards. We expect interest expense to be approximately $9.7 million.

總體而言，我們預計本季這些資金總計約為 100 萬美元，並且不包括在每日利潤指引中。我們預計第四季現金 SG&A 費用約為 400 萬美元。假設我們的股價沒有發生影響獎勵可變會計的重大變化，基於股票的薪酬支出應約為 200 萬美元。我們預計利息支出約為 970 萬美元。

Of this amount, approximately $2.6 million will relate to non-cash amortization of the deferred financing costs and debt discounts. Depreciation expense for the fourth quarter is expected to be flat with the third quarter, and we expect tax benefits to be diminimus during the fourth quarter. And with that, I'll turn the call back over to Anthony.

其中，約 260 萬美元將用於遞延融資成本和債務折扣的非現金攤提。第四季的折舊費用預計將與第三季持平，我們預計第四季的稅收優惠將微乎其微。然後，我會將電話轉回安東尼。

Thanks, Philip. So wrapping all of this up, we believe ICD is very well positioned as we exit this most recent slowdown. In fact, I feel this is the strongest ICD there have ever been when entering an expected upturn in drilling activity. We continue to make progress on the three most important strategic initiatives we had, which include paying down debt, increasing our exposure to the 300 series market, and leveraging our ICD impact offerings.

謝謝，菲利普。總而言之，我們相信，隨著我們擺脫最近的經濟放緩，ICD 處於非常有利的位置。事實上，我認為這是鑽井活動進入預期改善階段以來最強的 ICD。我們繼續在三個最重要的策略舉措上取得進展，其中包括償還債務、增加我們對 300 系列市場的投資以及利用我們的 ICD 影響產品。

We remain optimistic about market momentum strengthening as we spread to year end 2023, primarily in all directed markets based on recently increased commodity prices during customer inquiries and discussions we're having, and our expectation that WTI pricing will remain higher than the levels we saw during the second, third quarters of 2023. I also think the effects of depleted duck inventories and more cash flow for our customers will provide additional boost to demand for drilling rigs in our target markets during 2024 from recharged E&P capital budget next year.

隨著我們擴展到2023 年底，我們對市場勢頭增強仍然持樂觀態度，主要是在所有定向市場中，基於最近在客戶詢問和討論期間商品價格的上漲，以及我們預計WTI 定價將繼續高於我們看到的水平2023 年第二、第三季。我還認為，鴨子庫存耗盡和客戶現金流增加的影響將透過明年補充的勘探與生產資本預算，進一步推動 2024 年目標市場對鑽機的需求。

For these reasons, I'm optimistic about reactivating our remaining idle rigs, on our way back to 21 operating rigs over the coming quarters. With that, we'll open up the call for questions.

基於這些原因，我對重新啟用剩餘的閒置鑽機持樂觀態度，我們將在未來幾季恢復到 21 台正在運行的鑽孔機。至此，我們將開始提問。

We will now begin the question-and-answer session. (Operator Instructions)

我們現在開始問答環節。 （操作員說明）

Don Crist, Johnson Rice.

唐克里斯特、約翰遜賴斯。

Morning guys. Anthony, obviously, you walk through the demand picture out there, but can we get a little bit more color on particularly in the Haynesville? Obviously, you had a bunch of rigs running their early part of last year and then it fell off fairly significantly. And I think, if I heard you correctly, that you're expecting to be five rigs again back in that area. Can you just expand on that a little bit and just the overall demand picture color?

早安各位。安東尼，顯然，你瀏覽了那裡的需求情況，但是我們可以得到更多的顏色，特別是在海恩斯維爾嗎？顯然，去年年初有很多鑽機運行，然後數量大幅下降。我想，如果我沒聽錯的話，您預計將有五台鑽機再次回到該地區。能否稍微擴充一下整體需求的圖片顏色？

Sure, Dan. Thanks for the question. You're right. A lot of what happened to ICD this year was a function of our market presence in the Haynesville at the beginning of the year. And to put it into perspective, we had half our fleet contracted, just 10 rigs, working in Haynesville. Half of that 10 was with one customer who went from five rigs to zero.

當然，丹。謝謝你的提問。你說得對。今年 ICD 發生的很多事情都是我們年初在海恩斯維爾的市場影響力的結果。從長遠來看，我們有一半的船隊是承包的，只有 10 台鑽孔機，在海恩斯維爾工作。這 10 位客戶中有一半是一位客戶，他的鑽孔機數量從 5 台減少到了 0 台。

So that played out for us over the second and the third quarter, we bottomed out at to two rigs operating in over there, three rigs contracted. As commodity prices and rehab has improved as some of the local takeaway issues have been addressed, there's been a small amount of demand appear. Some of it's been in the western part of the Haynesville, the stuff over and Leon and Robertson County. I think we heard an operator talk about that earlier this week; fantastic results they were reporting for their sixth and seventh wells, that's good for our industry.

因此，這在第二季和第三季對我們產生了影響，我們觸底到那裡有兩台鑽機在運行，三台鑽機合約了。隨著商品價格和康復的改善以及一些當地外賣問題的解決，出現了少量的需求。其中一些位於海恩斯維爾西部、萊昂縣和羅伯遜縣。我想我們本週早些時候聽到一位接線員談論過這個問題；他們報告的第六口和第七口井取得了出色的成果，這對我們的行業有利。

For us, a prior customer of ours has started back up. We were their first call, that rig is back up and running now. It's exciting for us as a company because we have started talking a lot about technology, so they picked up a sister rig to a rig they had before. This time, we have our technology, the technology that's coming from third party partners that we have deployed and they're seeing amazing results: better ROP, the same or better whole quality stuff like that.

對我們來說，我們之前的客戶已經開始恢復。我們是他們的第一個電話，該設備現在已恢復運作。作為一家公司，這對我們來說是令人興奮的，因為我們已經開始談論很多技術，所以他們為他們之前擁有的設備挑選了一個姊妹設備。這次，我們擁有我們的技術，這些技術來自我們部署的第三方合作夥伴，他們看到了驚人的結果：更好的 ROP、相同或更好的整體品質等。

In addition to that, as we're approaching fourth quarter, we expect to have the fourth rig contracted and running as we round out next year. So just to put it in perspective, that means that the four rigs that we still have in base and all four will be contracted by the end of the year. We don't have that for contract signed, but I'm pretty confident is going to come. When I mentioned five, that's looking out into next year.

除此之外，隨著第四季的臨近，我們預計第四個鑽機將在明年完工時簽約並運行。因此，從長遠來看，這意味著我們基地中仍然擁有的四台鑽機以及所有四台鑽機都將在今年年底前簽訂合約。我們還沒有簽署合同，但我很有信心它會到來。當我提到五個時，這是對明年的展望。

Obviously, it would require that we move a rig back. We're only going to do that if the conditions around the contractor are better than what we think we can do in the Permian. But as we think about that market longer term, from an ICD status quo perspective, five would be the top out of the 2021 that we would expect to be running in the back part of next year.

顯然，這需要我們將鑽孔機移回來。只有當承包商周圍的條件比我們認為在二疊紀可以做的更好時，我們才會這樣做。但當我們從長遠角度考慮該市場時，從 ICD 現狀的角度來看，我們預計 2021 年將有 5 個高峰出現在明年下半年。

Rates are softer. I mentioned that in the comments, when you think about the two markets. Haynesville, rates are a bit softer and that's just a function of having gone from 80 rigs in the basin work into 38, 39 today. Hasn't been a lot of capacity move out, we'd probably move more about than anyone, still a lot of capacity on the sidelines.

利率較軟。當你考慮這兩個市場時，我在評論中提到了這一點。海恩斯維爾 (Haynesville) 的費率有所下降，這只是盆地內作業的鑽機數量從 80 台減少到如今的 38 台、39 台的結果。並沒有大量產能轉移，我們可能會比任何人轉移得更多，但仍有大量產能處於觀望狀態。

So we would expect pricing in the Haynesville to remain more challenging than the Permian, even against the backdrop of recharge budgets, capital budgets for 2024. But we're very bullish in the long-term. I think in the short term, winter is going to be very, very important to what happens to gas prices. But our conversation with E&P customers in the Haynesville, there's a lot of bullishness around the back part of 2024, especially 2025 and beyond, and that's being driven by the expectations around LNG exports.

因此，我們預計海恩斯維爾的定價仍然比二疊紀盆地更具挑戰性，即使是在補給預算和 2024 年資本預算的背景下。但從長遠來看，我們非常樂觀。我認為從短期來看，冬季對於天然氣價格的變化將非常非常重要。但我們與海恩斯維爾的勘探與生產客戶的對話顯示，2024 年下半年，尤其是 2025 年及以後，人們普遍看漲，這是由液化天然氣出口的預期推動的。

So it's a great market for us. It's one of our two core markets. Strong brand and reputation over there, certainly don't want to abandon that market. I think it's a place where we can really bring our talents to bear. And not just compete with everybody but outperform them as welI. But that's what I would say about the Haynesville market, Don.

所以這對我們來說是一個巨大的市場。這是我們的兩個核心市場之一。那裡有強大的品牌和聲譽，當然不想放棄那個市場。我認為這是一個我們可以真正發揮才能的地方。不僅要與每個人競爭，也要超越他們。但這就是我對海恩斯維爾市場的評價，唐。

All right, I appreciate that color. And to talk a little bit -- or to touch on the conversions, I'm assuming that it's contracts that are pulling forward those conversions that you're not just doing those on spec. And can you remind us of the of the day rate uplift that you get when converting a Series 200 to a 300?

好吧，我很欣賞這個顏色。稍微談談——或者談一下轉換，我假設是合約推動了這些轉換，而不僅僅是按照規範進行轉換。您能否提醒我們，將 200 系列轉換為 300 系列時，日費會有所提升？

Yes, you're correct. We are doing those against a contract that is going to guarantee us simple payback, cash-on-cash. Obviously, we want to make a return on that, too. But just given the volatility, cyclicality of the business, it's very, very important that at a minimum, we get that cash back.

是的，你是對的。我們是根據合約來做這些事情的，該合約將保證我們簡單的現金回報。顯然，我們也希望從中獲得回報。但考慮到業務的波動性和週期性，至少我們能收回現金是非常非常重要的。

What we've said in the past and it's holding out to be true, is it's $2,000 to $3,000 a day uplift is what we see. It is interesting to me also because of the four conversions that we've completed so far, and we did two in the third quarter and we just finished another one; in fact, that rig started moving yesterday. But three of the four have been with customers that had the 200 series rig running first. Great rig.

我們過去說過並且現在證明是真的，我們所看到的是每天增加 2,000 至 3,000 美元。這對我來說也很有趣，因為我們到目前為止已經完成了四次轉換，我們在第三季度完成了兩次轉換，我們剛剛完成了另一次轉換；事實上，該鑽機昨天就開始移動了。但這四台中的三台都是先運作 200 系列鑽孔機的客戶。很棒的裝備。

And I am always concerned when I talk about our 300 that are somehow casting the 200 in about a lot of knot. They are super-spec pad optimal rigs, they go toe-to-toe with everything that's out there. But the reason I point this out is three of the four have gone to customers that used to 200 Series rigs. They were very, very pleased with the 200 Series rigs and they like the fact that we can give them a little bit more capability with the 300 Series conversion. And [Mike said] we've been able to sign contracts that meet our requirements in terms as of the cash-on-cash payback.

當我談論我們的 300 項目時，我總是很擔心，它們不知何故讓 200 項目陷入了困境。它們是超規格的墊最佳裝備，它們可以與現有的一切進行直接競爭。但我指出這一點的原因是，這四台設備中的三台已經是針對使用過 200 系列鑽孔機的客戶。他們對 200 系列鑽孔機非常非常滿意，他們喜歡我們可以透過 300 系列轉換為他們提供更多功能。 [麥克說]我們已經能夠簽署滿足我們現金回報要求的合約。

Okay. And just one final one for me. Can you remind us what the current conversion prices? It's a couple hundred thousand, right?

好的。對我來說，這只是最後一件事。您能提醒我們目前的轉換價格是多少嗎？幾十萬吧？

So it's $650,000 to $800,000.

所以是 65 萬美元到 80 萬美元。

Okay. But you're getting cash-on-cash payback over the contract term on those, right?

好的。但你會在合約期間內獲得現金回報，對嗎？

Yes.

是的。

Yes.

是的。

Okay, I appreciate it. I'll get back in queue. Thanks.

好的，我很感激。我會回到隊列中。謝謝。

Great. Thank you, Don.

偉大的。謝謝你，唐。

Steve Ferazani, Sidoti

史蒂夫費拉扎尼，西多蒂

Good afternoon, everyone. Appreciate the detail on the call. I just want to do a lot of numbers; I just want to connect some of the dots. Based on your guidance, how many rigs do you have drilling at the end of 3Q? And how much do you have how many rigs are drilling right now?

大家下午好。欣賞通話中的細節。我只想做很多數字；我只是想把一些點連結起來。根據您的指導，第三季末您有多少台鑽孔機？您現在有多少台鑽孔機正在鑽探？

We had 14 rigs drilling at the end of the quarter, we'll have 16 rigs drilling at the end of November. And then obviously, we're looking to add a 17th rig there in December.

截至本季末，我們有 14 台鑽機進行鑽探，到 11 月底，我們將有 16 台鑽機進行鑽探。顯然，我們計劃在 12 月在那裡添加第 17 個鑽孔機。

Okay. So the guidance of the average 14.7 rigs in 4Q is assuming probably some year-end white space with some of the rigs they finished programs a little bit early. Is that being a little bit conservative, assuming your endpoint?

好的。因此，第四季度平均 14.7 台鑽機的指導是假設年底可能存在一些空白，其中一些鑽機提前完成了專案。假設你的終點是不是有點保守？

(multiple speakers) There's are a rig -- we have moving between customers as we position rigs where there's a couple of weeks of -- there's a little bit of white space. But there's not any white space at the end of that. We would expect all of the 16 rigs to continue into next year.

（多個演講者）有一個鑽機 - 我們在客戶之間移動，因為我們將鑽機放置在有幾個星期的地方 - 有一點空白。但末尾沒有任何空白。我們預計所有 16 台鑽機都將持續到明年。

But the rollout, they're biased more toward (multiple speakers). Yeah.

但在推出時，他們更偏向（多個發言人）。是的。

Okay. As far as the day rate trends, obviously, it held up for a while, Q3 was down, but not way off. The guidance for 4Q is down pretty -- another step down. So you're still seeing pricing pressure, you're agreeing to short-term deals, but how differentiated is the pressure coming on pricing and to get rigs back to work? How much concessions you're making?

好的。就日均利率趨勢而言，顯然，它持續了一段時間，第三季有所下降，但幅度還不算太大。第四季的指引大幅下降——又下降了一步。因此，您仍然看到定價壓力，您同意短期交易，但定價和讓鑽機恢復工作所面臨的壓力有何不同？你做了多少讓步？

Yeah, great question, Steve. I don't think that's isolated to ICD. I think the reason is kind of stands out more when we talk as Phil noted in his comments, we don't have a lot of backlog. So certainly, everything we're bringing out now is exposed to the spot market. And then, the fact that we're constantly negotiating renewals with existing customers gives us added exposure towards current spot market rates are.

是的，很好的問題，史蒂夫。我不認為這與 ICD 無關。我認為，當我們談話時，正如菲爾在評論中指出的那樣，原因更加突出，我們沒有太多積壓。當然，我們現在推出的所有產品都針對現貨市場。然後，我們不斷與現有客戶協商續約的事實使我們對當前現貨市場費率有了更多的了解。

Yeah, I'd point out that the most important metric when we talk about this is margin per day. And the things that the team's doing around added services and stuff like that is going to be additive to margin per day. That's what we focused on here. It is a bit softer, obviously, you see this anytime you go through a cycle: the ratcheting down of day rates as you're moving down in rig count -- you don't feel it as much as when that incremental demand begins to appear.

是的，我想指出，當我們談論這個時，最重要的指標是每天的保證金。團隊圍繞附加服務和類似的事情所做的事情將增加每天的利潤。這就是我們在這裡關注的重點。顯然，它有點軟，你在經歷一個週期的任何時候都會看到這一點：隨著鑽機數量的減少，日費率逐漸下降——你不會像增量需求開始增加時那樣感受到它。出現。

Meaning, you bounced off bottom, there's opportunities out there, it always gets a little bit more competitive, and that's where we are right now. I pointed out in my comments that we have had missed out on some work where we were undercut. But I would say that, especially, among the big three in the industry, we're seeing a lot of price discipline. The smaller contractors that tend to be a little bit more aggressive and where we sit is right there in the middle.

意思是，你從底部反彈，那裡有機會，競爭總是會變得更加激烈，這就是我們現在所處的位置。我在評論中指出，我們錯過了一些被削弱的工作。但我想說的是，尤其是在業界三大巨頭中，我們看到了很多價格紀律。規模較小的承包商往往更具侵略性，而我們則處於中間位置。

And with a smaller fleet, we can be a little bit more patient. We don't have to just go after and swing at every pitch that comes across plate. But we're thinking about, obviously, geographic positioning, we're thinking about commodity exposure, and we're thinking a lot about the counterparty: who the E&P company is. A lot of focus around multi-rig clients and making sure that we're got a lot of exposure on that front.

由於機隊規模較小，我們可以多一點耐心。我們不必只是追隨本板上的每一個投球並揮桿。但顯然，我們正在考慮地理定位，我們正在考慮商品風險，我們正在考慮許多關於交易對手的問題：勘探與生產公司是誰。我們非常關注多鑽機客戶，並確保我們在這方面獲得大量曝光。

So when Philip talks about positioning with customers and stuff like that, those are the drivers that he's referring to.

因此，當菲利普談到與客戶的定位等類似問題時，他指的是這些驅動因素。

Yeah, that's really helpful. As you tried to crew up these rigs back to work, what's the labor? Obviously, the rate kind of weighed down right now. Is it fairly easy to bring back crews and what type of costs? Because I know you hit your cost per operating day guidance is up a little bit.

是的，這真的很有幫助。當你試圖讓這些鑽孔機恢復工作時，你需要耗費多少人力？顯然，目前利率有所下降。帶回工作人員是否相當容易？費用是多少？因為我知道您的每營業日成本指引有所上升。

Yeah, it's been relatively easy. Look, it's never easy to Steve. I've been really pleased with our people development group, the team, their efforts, but more importantly, the results and bringing some really good talent into the company. Cost to bring that talent in isn't any higher today than it was in the last upcycle where we see the added cost is -- we want to bring these people as, even industry experienced people in, we want to bring them in a little bit early.

是的，這相對容易。瞧，這對史蒂夫來說從來都不容易。我對我們的人才發展團隊、團隊和他們的努力感到非常滿意，但更重要的是，我們取得的成果以及為公司帶來了一些真正優秀的人才。今天引進人才的成本並不比上一個升級週期高，我們看到增加的成本是——我們希望引進這些人才，因為即使是行業經驗豐富的人，我們也希望讓他們稍微增加一點有點早。

So they have a hitch or two with the company. They know what to do at the rig side in terms of technical skills, but they're going to be new to our systems and processes, they're certainly going to be new to our culture, and that's where we see the cost inefficiencies as we were beginning the expansion of our operating rig count.

所以他們與公司之間有一、兩個問題。他們知道在技術技能方面在鑽機方面要做什麼，但他們對我們的系統和流程來說是新的，他們對我們的文化來說肯定是新的，這就是我們看到成本效率低下的地方我們開始擴大我們的營運鑽機數量。

Okay. That makes a lot of sense. Thanks, Anthony. Thanks, Philip.

好的。這很有意義。謝謝，安東尼。謝謝，菲利普。

Thanks, Steve.

謝謝，史蒂夫。

John Daniel, Daniel Energy.

約翰·丹尼爾，丹尼爾·能源。

Hey, guys, thanks for having me. One question on the demand outlook, -- I think you say you're at 15 rigs today and I guess -- I might characterize this -- as hope at this point that you'll be at 21 in the middle of next year, that would be very impressive growth, right? And I'm curious, is this isolated to two or three of your, maybe customers you work with in the past are just coming back? Could you just walk us through that percent increase, relative to what the broader market might do? Again, I know its total speculation right now because (multiple speakers).

嘿，夥計們，謝謝你邀請我。關於需求前景的一個問題，--我想你說今天有 15 台鑽機，我想--我可能會描述這一點--希望在明年年中你將擁有 21 台鑽機，這將是非常令人印象深刻的成長，對嗎？我很好奇，這種情況是否只發生在您的兩三個人身上，也許您過去合作過的客戶剛剛回來？您能否向我們介紹相對於更廣泛的市場可能表現的百分比漲幅？再說一遍，我現在知道它的全部猜測，因為（多個發言者）。

Yeah, no, fully anticipated that question, John. I think the consensus out there is we should see in 14 to 17 rigs, go back to work over the course of 2024. I'm very confident that we're going to end this year with 17 contracted, I think it's probably 18. So to get back to the 21, there's another three or four. You take the three or four and you compare that to the 14 to 17, that would imply that we would be punching our weight.

是的，不，完全預料到了這個問題，約翰。我認為大家的共識是我們應該看到 14 到 17 個鑽機在 2024 年恢復工作。我非常有信心我們將在今年年底簽訂 17 個合同，我認為可能是 18 個。回到21 個，還有另外三四個。你拿 3 到 4 個，然後將其與 14 到 17 個進行比較，這意味著我們會加大力度。

We certainly did that in the last up cycle, if you recall. You've got to think also where we think a lot of the incremental demand is going to come from, and I think it's going to be made more biased toward privates. That's the same group of customer that really started to pull back a year ago. You've seen the percent of rig count working for privates continue to decline, I think that starts to go the other way.

如果你還記得的話，我們在上一個上升週期中確實做到了這一點。你還必須考慮我們認為大量增量需求將來自哪裡，我認為它將更偏向私人。這正是一年前真正開始減少的客戶群。你已經看到為私人工作的鑽機數量百分比持續下降，我認為情況開始走向相反的方向。

I was at an industry function last week and I was talking with an investment banker on the E&P side, not on the services side, and he shared something when they and I haven't heard this and call it a decade. But apparently, there's a lot of money being raised, private equity money being raised to be deployed among E&P companies. And that's very important because, if you think about the business over the last 20 or 30 years, M&A continues to accelerate. But through your career and my career, those management teams would go and raise money and do something else.

上週我參加了一個行業活動，我正在與勘探與生產方面的一位投資銀行家交談，而不是服務方面的，他分享了一些東西，而我和他們都沒有聽說過這一點，並稱其為十年。但顯然，已經籌集了大量資金，私募股權資金被籌集到勘探與生產公司。這非常重要，因為如果你考慮過去 20 或 30 年的業務，你會發現併購持續加速。但透過你和我的職業生涯，這些管理團隊會去籌集資金並做其他事情。

And that's not been the case in the last three, four, eight years. It feels like, with the backdrop that's out there today, in terms of the commodity where people think things are going, even in the face of this energy transition stop, I just think there is going to be a lot of private opportunities in 2024. And as you know, we do a lot of work for private E&P companies. And I think that growth is going to happen primarily in the south also.

過去三年、四年、八年的情況並非如此。感覺就像，在今天的背景下，就人們認為事情正在發展的大宗商品而言，即使面對能源轉型的停止，我只是認為 2024 年將會有很多私人機會。如你所知，我們為私營勘探與生產公司做了很多工作。我認為成長也將主要發生在南方。

So think Permian, obviously, think Eagleford, and think [anyford]. I just think, against that backdrop, for us to expect to put three or four more rigs out in the first two quarters of 2024, it's not a layup, it's never a layup. But I feel pretty good about our chances there.

因此，顯然，想想二疊紀，想想伊格爾福德，然後想想[anyford]。我只是認為，在這種背景下，我們預計在 2024 年前兩個季度再投入三到四台鑽機，這不是上籃，從來都不是上籃。但我對我們在那裡的機會感覺很好。

Well, that's all I had. I am hoping that you are correct, my friend.

嗯，這就是我所擁有的一切。我希望你是對的，我的朋友。

Great. Thank you, John.

偉大的。謝謝你，約翰。

[Dave Strohm, Stonegate.]

[戴夫·斯特羅姆，《石門》。]

Morning.

早晨。

Good morning, Dave.

早上好，戴夫。

Morning. Just want to start: you've got a lot of new contracts come up that seems structural and strategic. I just want to get your sense on where you think the big sticking points are going to be again on those contracts over the finish line. Is it going to be the payback provisions? Is it going to be mostly great pressure terms, added services? Just would love to hear your thoughts around how you think the negotiating table is going to be.

早晨。只是想開始：你已經簽訂了很多看起來是結構性和策略性的新合約。我只是想了解一下您認為最終合約的最大癥結點在哪裡。這會是回報條款嗎？主要是壓力很大的條款、附加服務嗎？只是很想聽聽您對談判桌的看法。

Yeah, I think it's going to start with is your rig capable. And that it sounds obvious, but if you think about what's happening in the industry, with M&A and stuff like that, you're seeing and hearing more discussion around longer laterals, obviously, everybody wants to be more efficient. It's just a function of where we are in US shale today and the maturation that's occurring. So I think it starts with what your rigs capability.

是的，我認為這要從你的裝備是否有能力開始。這聽起來很明顯，但如果你考慮一下行業中正在發生的事情，透過併購之類的事情，你會看到和聽到更多關於較長支線的討論，顯然，每個人都希望提高效率。這只是我們今天在美國頁岩油中所處的位置以及正在發生的成熟度的函數。所以我認為這要從你的裝備能力開始。

Obviously, they want to understand your performance. That starts always with HS&E safety, but also just operational performance. We only have one 300 Series rig left in our inventory. That said, that's probably the next rig or the second rig that gets contracted by the end of the year. So that when we look at the last couple to get us to 21, they don't have to be converted to 300 Series.

顯然，他們想了解你的表現。這始終從 HS&E 安全開始，但也只是營運績效。我們的庫存只剩下一台 300 系列鑽孔機。也就是說，這可能是今年年底簽約的下一個或第二個鑽機。因此，當我們查看最後一對使我們達到 21 的產品時，它們不必轉換為 300 系列。

They're 200 Series rigs today. In fact, we're in pretty advanced discussions around an existing 200 Series rig, one-year type situation, Permian Basin opportunity. And obviously, if we can secure that contract at a reasonable day rate without having to invest the capital and punt that upgrade three or four quarters out, that's what we were going to do. But I think, to answer your question, is going to start with your technical capability around your rig and your rig specification.

今天它們是 200 系列鑽孔機。事實上，我們正​​在圍繞現有 200 系列鑽機、一年型情況、二疊紀盆地機會進行非常深入的討論。顯然，如果我們能夠以合理的日費率獲得該合同，而無需投資資本並在三四個季度後進行升級，那麼這就是我們要做的。但我認為，要回答你的問題，首先要從你的鑽孔機技術能力和鑽孔機規格開始。

And that's why you've heard us to pounding the table, really over the last year, year-and-a-half about the need to continue to have more exposure to the 300 Series market. Because as we think about where things are going on in US shale, it's going to be the 300 Series spec. Our investors should be pleased to know we've got a very obvious and relatively easy and relatively cost-effective pathway for gaining more of that exposure.

這就是為什麼您聽到我們在過去一年半的時間裡不斷地討論需要繼續更多地涉足 300 系列市場。因為當我們思考美國頁岩油的發展時，我們會想到 300 系列規格。我們的投資者應該很高興知道我們有一個非常明顯、相對容易且相對具有成本效益的途徑來獲得更多的曝光。

Understood. That's very helpful. One more if I could, with it's all the new tech initiatives that you've been rolling out, is there any difference in capabilities between the 200 and 300 Series rigs on what kind of tech they can operate there, or is it pretty homogenous?

明白了。這非常有幫助。如果可以的話，我再問一個問題，即你們推出的所有新技術舉措，200 和 300 系列鑽機在可操作的技術方面的功能是否有任何差異，或者是否相當同質？

Not on the software side. Things such as back to bottom sequencing, the oscillation, stick-slip, mitigation that that is deployed on both our 200 and 300 Series rig. Where you will see a difference is in the high torque capability. So think about the high torque drill strings, certainly the longer laterals, the hard toward top drives that we need to be able to put all that torque at the end of the three-mile lateral. That's where you see the difference.

不是在軟體方面。我們的 200 和 300 系列鑽孔機上都部署了諸如自底向上排序、振盪、黏滑、緩解等功能。您會發現差異在於高扭力能力。因此，考慮高扭矩鑽柱，當然是更長的支管，以及我們需要的硬頂驅動，以便能夠在三英里的支管結束時施加所有扭矩。這就是你看到差異的地方。

And that also is what drives that day rate differential that we talked about earlier in the call of anywhere from $2,000 to $3,000 a day.

這也是我們之前在電話會議中談到的每天 2,000 美元到 3,000 美元之間的日利率差異的原因。

That's perfect. Thank you for taking my questions and good luck in the fourth quarter.

那很完美。感謝您回答我的問題，祝第四季好運。

Thank you, Dave.

謝謝你，戴夫。

Jeff Robertson, Water Tower Research.

傑夫·羅伯遜，水塔研究。

Thanks. Good morning. Anthony, you mentioned (multiple speakers) the refinance window on the notes opening up late next or I guess fourth quarter of '24. How does that play into your thoughts around being able to remarket 300 Series rigs and contract duration for those both in the Permian and in the Haynesville as you look to trying to be in a position to maximize EBITDA looking into 2025 when you're trying to consider doing something with the notes?

謝謝。早安.安東尼，您提到（多個發言者）票據上的再融資窗口將於明年晚些時候或我猜是 2024 年第四季度開放。當您希望在 2025 年實現 EBITDA 最大化時，您對能夠重新行銷二疊紀和海恩斯維爾的 300 系列鑽機以及合約期限的想法有何影響？考慮用筆記做點什麼？

Great. Thank you for that question, Jeff. When we think about it, we want to put ourselves in a position to be able to maximize the opportunities as we enter that window. And that starts with having the 20 or 21 rigs running. Day rates are a bit softer than any of us would like. We talked a lot about that on this call, that we want to go relatively short.

偉大的。謝謝你提出這個問題，傑夫。當我們思考這個問題時，我們希望在進入該視窗時能夠將自己置於能夠最大化機會的位置。首先要讓 20 或 21 台鑽孔機運轉。日費率比我們任何人想要的都要軟一些。我們在這次電話會議上討論了很多，我們希望相對較短。

Keep them short so that as we approach what we think will be more demand for super-spec rigs in the back half of 2024 throughout 2025, then we'll have the opportunity to get back to ratcheting rates up in the way that we did in the last upcycle, so that we're in the best position possible to be able to evaluated many alternatives as there are available, to address the debt that will come due in 2026. Long way off. But as you know, you've got to be taking measures today to be able to make sure you put the company in the best position possible to address that. That's how we may (multiple speakers).

保持簡短，這樣當我們接近我們認為的 2024 年下半年到 2025 年對超規格鑽機的更多需求時，我們將有機會像 2020 年那樣重新提高費率。最後一個升級週期，以便我們處於最佳位置，能夠評估許多可用的替代方案，以解決2026 年到期的債務。還有很長的路要走。但如您所知，您今天必須採取措施，以確保您使公司處於盡可能最好的位置來解決這個問題。我們就是這樣（多名發言者）。

Thanks. You mentioned I believe at year-end 2023, that 75% of the fleet working will be plus 300 Series capability. If you skip forward to the fourth quarter of '24, is there a case where you'd expect 100% of the of fleet to be 300 Series?

謝謝。您提到，我相信到 2023 年底，75% 的機隊將具備 300 系列能力。如果您跳到 24 年第四季度，您是否會期望 100% 的機隊都是 300 系列？

It's probably in the 90% -- of the remaining 200 Series to come out, all but one are the same. And we're working on some engineering around that one. It already has a high torque top drive on it, so it has that and we can put the iron roughneck, the tool, on it, we just need to make sure we understand the pathway toward the mast and substructure upgrades, in a way that we've completed that upgrade on the other 200. But it's upwards of 90%.

剩下的 200 系列中的 90% 可能都會出現這種情況，除了一個之外，其他都是一樣的。我們正在圍繞這個進行一些工程設計。它已經有一個高扭矩頂部驅動器，所以它有這個，我們可以把鐵鑽工，工具，放在上面，我們只需要確保我們了解桅杆和下部結構升級的途徑，以一種方式我們已經完成了另外200 台的升級。但升級率高達90% 以上。

And yes, there is a path there, a scenario where they're all at 100%. But look, if we can contract our 200 Series rigs without having to make that investment generate what we think are appropriate returns, there wouldn't be a need to do that. So there's not a hard-and-fast rule. We haven't said to ourselves, it's not about ego. We haven't said 100% has to be 300 series. But we do feel that, as we continue in this cycle and US shale, that that's where things are going.

是的，那裡有一條路，一個他們都處於 100% 狀態的場景。但是，如果我們可以承包 200 系列鑽孔機，而不必讓該投資產生我們認為適當的回報，那麼就沒有必要這樣做。所以沒有硬性規定。我們沒有對自己說過，這與自我無關。我們沒有說 100% 必須是 300 系列。但我們確實感覺到，隨著這個週期和美國頁岩油的持續發展，事情就會朝著這個方向發展。

Thanks for taking my questions.

感謝您回答我的問題。

Mr. Jeff, thank you.

傑夫先生，謝謝您。

Don Crist, Johnson Rice.

唐克里斯特、約翰遜賴斯。

Thanks for letting me back in, guys. Anthony, I wanted to ask a more macro question, and I fully admit that this may not have a direct answer. But as you look at the market today and surveying the guys who are depressing prices on the private side, any sense as to how many rigs that may be? And once those rigs are soaked up with incremental demand, do you think that pricing just rebounds towards that mid-30s level, given that the larger companies have held pricing as well as they have?

謝謝你們讓我回來，夥伴們。安東尼，我想問一個更宏觀的問題，我完全承認這可能沒有直接的答案。但當你觀察今天的市場並調查那些在私人方面壓低價格的人時，你知道可能有多少鑽機嗎？一旦這些鑽孔機吸收了增量需求，考慮到大公司一直保持定價，您認為定價會反彈到 30 年代中期的水平嗎？

Yeah, I don't think it's as much as people think, Don, and the reason is: think about how much the requirements from our customers have changed since COVID, right? The laterals certainly are getting longer. The M&A that's happening around us is -- there's a lot of drivers to that. But certainly, the ability to put together more contiguous acreage on the part of our customers is a big driver, which again, is going to drive that need for the ability to drill the longer laterals, more setback capacity, on and on and on.

是的，我認為這不像人們想像的那麼嚴重，唐，原因是：想想自新冠疫情以來我們客戶的要求發生了多大變化，對嗎？側線肯定越來越長。我們周圍發生的併購有很多驅動因素。但可以肯定的是，我們的客戶擁有更多連續面積的能力是一個很大的驅動力，這將再次推動對鑽更長支管、更大後退能力的能力的需求，等等。

And when you survey the smaller contractors and installers, it's not just them. Like I said, I think the big three are really doing a great job at it being very disciplined in the market. And as you've read into that, what you all, but certainly of the smaller contractors that are out there, there's not as many of those types of rigs in those fleets. In fact, for a couple of them, they're essentially 100% utilized today among what we would consider to be 300-like type rigs.

當你調查較小的承包商和安裝商時，你會發現這不僅僅是他們。就像我說的，我認為三大巨頭在市場紀律方面確實做得很好。正如您所讀到的那樣，你們所有人，但當然還有那些較小的承包商，這些船隊中沒有那麼多類型的鑽孔機。事實上，對於其中的一些設備來說，在我們所認為的 300 類鑽孔機中，它們今天基本上得到了 100% 的利用率。

So what you just described is what I think is going to happen that in the first couple of quarters of next year, what excess capacity there is in this 300 Series market held by the smaller guys that is going to get snapped up, which is going to set the fairway for the big three to come in and do what they do. Because they're going to have, at that time, what will be remaining big rig capacity. So yes, that is part of the thesis and how we see this playing out over the next 12 to 18 months.

所以你剛才描述的是我認為明年前幾季將會發生的情況，300 系列市場中規模較小的公司所擁有的過剩產能將被搶購，這將是為三巨頭進入並做他們所做的事情設定球道。因為到那時他們將擁有剩餘的大鑽機能力。是的，這是本文的一部分，也是我們如何看待未來 12 到 18 個月的情況。

I appreciate the color. Thanks a lot, guys.

我很欣賞它的顏色。非常感謝，夥計們。

Thanks, Don.

謝謝，唐。

[Dick Ryan] with Oak Ridge.

[迪克·林恩]與橡樹嶺。

Thank you. So Anthony, on your ICD impact, how many of those systems are you currently have deployed? I know you had expectations that you could generate some incremental margins. Are you seeing any of that yet? Or are these still on a trial basis?

謝謝。安東尼，關於您的 ICD 影響，您目前部署了多少個這樣的系統？我知道您期望能夠產生一些增量利潤。你還看到這些嗎？或者這些仍處於試驗階段？

Yeah, it's really a mixture. So we have -- depending on how you classify it, four to six out there right now. There are some that we are getting paid for on a per-day basis. There's a couple where there may be certain aspects that we've offered on a trial basis. Certainly, when we provided equipment, whether it be the biofuel, dual fuel capability of the rig or the ability to plug in the utility grid or the high torque drill strings that we've provided, we are getting paid for all of those at an appropriate rate that justifies the investment and earns an incremental return.

是的，這確實是一個混合物。所以我們現在有四到六個，這取決於你如何分類。有些是我們按天付費的。我們可能在試用的基礎上提供了一些方面的服務。當然，當我們提供設備時，無論是生物燃料、鑽機的雙燃料能力還是插入公用電網的能力或我們提供的高扭矩鑽柱，我們都會以一定的價格獲得所有這些設備的報酬。適當的利率可以證明投資的合理性並獲得增量回報。

We look out longer term when we think that there's going to be increasing demand for these services. And certainly, our expectation would be we would get paid for any of these kind of things that we're providing. Right now, it's somewhat of a mixture. It's not the driver for us today, as much as the driver is getting these things out, proving these things up with our customers. And most importantly, being able to demonstrate, quantify where values being added to them.

當我們認為對這些服務的需求將會增加時，我們會放眼長遠。當然，我們的期望是我們會因我們提供的任何此類東西而獲得報酬。現在，它有點混合。今天，這不是我們的司機，而是司機將這些東西拿出來，向我們的客戶證明這些東西。最重要的是，能夠展示、量化為其添加的價值。

But our expectation would be like said, we are not just starting incremental day rate for it, but actually earning incremental margin. And while we're doing that on some of them today, the expectation would be able to do that on all levels of over time.

但我們的期望就像所說的那樣，我們不僅僅是開始增量日費率，而是實際上賺取增量利潤。雖然我們今天正在對其中一些項目進行此操作，但隨著時間的推移，我們期望能夠在所有級別上實現這一點。

Is this a differentiator as you're talking to customers going into '24, maybe some of the smaller competitors that are cutting prices, is this a differentiator for you guys?

當您與即將進入 24 世紀的客戶交談時，這是否是一個差異化因素，也許一些較小的競爭對手正在降價，這對您來說是一個差異化因素嗎？

Yes, it is. I appreciate you asking that because I should have pointed out earlier, it is. It just one more way, I think, that we stand out among what people would consider to be the smaller drilling contractors, right? The goal with ICD is like: I think we've got the best rigs in the industry; I know we have the best people in the industry, but we want to be able to offer the same level of, not just service, but equipment and capabilities as anyone else that's out there. And that's the pathway that we're on.

是的。我很感激你問這個問題，因為我應該早點指出，確實如此。我認為，這只是我們在人們心目中的小型鑽井承包商中脫穎而出的另一種方式，對嗎？ ICD 的目標是：我認為我們擁有業內最好的鑽孔機；我知道我們擁有業內最優秀的人才，但我們希望能夠提供與其他任何人相同等級的服務，以及設備和功能。這就是我們正在走的路。

We've been working on this for a while, but it's really exciting right now, especially here in the back part of this year to see this stuff finally getting deployed, seeing the adoption, but being able to walk into our customers' office and show where value is being created.

我們已經為此工作了一段時間，但現在真的很令人興奮，特別是在今年下半年，看到這些東西最終得到部署，看到採用，但能夠走進我們客戶的辦公室並顯示正在創造價值的地方。

Great. Thank you, Anthony.

偉大的。謝謝你，安東尼。

Great. Thank you, Dick.

偉大的。謝謝你，迪克。

This concludes our question-and-answer session. I would like to turn the conference back over to Anthony Gallegos for any closing remarks.

我們的問答環節到此結束。我想將會議轉回安東尼·加列戈斯（Anthony Gallegos）發表閉幕詞。

We sure appreciate everyone dialling, and I would like to say thank you very much to all the employees of ICD, the hard work, their dedication, their sacrifice, we really appreciate that. But thank you, everybody, for dialling into today's call. We appreciate you making time. We'll end the call from here.

我們非常感謝每個撥打電話的人，我想對 ICD 的所有員工表示非常感謝，感謝他們的辛勤工作、奉獻精神和犧牲，我們真的很感激。但謝謝大家撥打今天的電話。我們感謝您抽出時間。我們將從這裡結束通話。

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。