Independence Contract Drilling Inc (ICD) 2024 Q1 法說會逐字稿

Good day and welcome to the Independence Contract Drilling Inc. first quarter 2020. For financial results and conference call (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Philip Joyce, Executive Vice President and CFO. Please go ahead.

美好的一天，歡迎來到獨立合約鑽井公司 2020 年第一季。用於財務業績和電話會議（操作員說明）請注意此事件正在被記錄。我現在將會議交給執行副總裁兼財務長菲利普‧喬伊斯 (Philip Joyce)。請繼續。

Good morning, everyone, and thank you for joining us today to discuss ICD's First Quarter 2024 results. With me today as Antigua goes our President and Chief Executive Officer.

大家早安，感謝您今天加入我們討論 ICD 2024 年第一季的業績。今天，我作為安提瓜島的總裁兼執行長與我同在。

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 materially from what we talked about today. For a complete discussion of these risks, we encourage you to read the company's earnings release and our documents on file with the SEC. In addition, we refer to non-GAAP measures during the call. Please refer to the earnings release and our public filings for a full reconciliation of net loss, adjusted net loss, EBITDA and adjusted EBITDA, and for our definitions of our non-GAAP measures.

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有重大差異。為了全面討論這些風險，我們鼓勵您閱讀公司的收益報告以及我們向 SEC 備案的文件。此外，我們在電話會議中提到了非公認會計原則措施。請參閱收益發布和我們的公開文件，以了解淨虧損、調整後淨虧損、EBITDA 和調整後 EBITDA 的完整調整表，以及我們對非 GAAP 指標的定義。

With that, I'll turn it over to Anthony for opening remarks.

接下來，我將把它交給安東尼致開幕詞。

Thank you, Phil, and hello, everyone. I want to say thank you for joining us for our first quarter 2024 earnings conference call. During my prepared remarks, I'll talk about the positioning and progress we made during the first quarter. Our outlook for the rest of this year and offer some perspective on the current super-spec rig market. First, just a few comments. Looking back on the first quarter, our financial results for the quarter were better than our prior guidance, driven by slightly better utilization and strong cost control during the quarter, ICD's utilization outperformance and a flat to declining overall rig count environment was possible given our brand and reputation in the marketplace and helped by the relocation of a working rig from the Haynesville to our Permian market, where the rate rig went straight to work for a new customer cost efficiencies were driven by the hard work of our rig and support staff and the cost reduction initiatives we implemented early in the quarter. We also completed one additional 200 to 300 series conversion early in the quarter, which is our fifth such conversion. They only one of our operating rigs is a 200 series rig. It is scheduled for conversion later this year, with actual timing being dictated by customer preference.

謝謝你，菲爾，大家好。我想說，感謝您參加我們的 2024 年第一季財報電話會議。在我準備好的發言中，我將談談我們第一季的定位和取得的進展。我們對今年剩餘時間的展望以及對當前超規格鑽機市場的一些看法。首先，僅發表一些評論。回顧第一季度，我們本季度的財務業績好於先前的指導，這得益於本季度利用率略有提高和強有力的成本控制、ICD 的利用率表現出色以及考慮到我們的品牌，整體鑽機數量環境可能持平甚至下降我們的鑽機和支援人員的辛勤工作以及我們在本季度初實施了成本削減措施。我們還在本季初完成了一次額外的 200 至 300 系列轉換，這是我們第五次此類轉換。我們唯一的一台操作鑽孔機是 200 系列鑽孔機。計劃於今年稍後進行轉換，實際時間將根據客戶偏好決定。

Now I'd like to talk about what we're seeing and how we're responding to the market for super-spec rigs in our target markets. In summary, our Permian market continues to hold up pretty well in the Haynesville market remains challenged in the short and medium term, we started 2024 with three rigs working in the Haynesville. And in January, we will have relocated one of the folks, three rigs to West Texas and the process of relocating that rig. We cannibalized an opportunity we previously had earmarked for an incremental ICD rig yet. As a result today, we are working two rigs in the Haynesville and we expect to run two rigs in that market for the foreseeable future. We want to maintain a presence in the Haynesville and like exposing an appropriate portion of our fleet to nat gas activity. And we appreciate and want to maintain the brand and reputation we've earned over the last decade in Haynesville, we are optimistic about a longer-term activity rebound in the basin, but we don't expect to see that until the second half of 2025 at the earliest. On the other hand, our West Texas market has been the growth vehicle for ICD over the last year as we've been successful in adding rigs across our customer base and increasing term contract exposure where it makes sense. This is in spite of a steady decline in overall rig count in that basin over the last 12 months, our reputation for service and professionalism as well as our 200 to 300 series conversion program.

現在我想談談我們所看到的情況以及我們如何應對目標市場的超規格鑽機市場。總而言之，我們的二疊紀市場持續保持良好狀態，而海恩斯維爾市場在中短期內仍面臨挑戰，2024 年伊始，我們在海恩斯維爾有三台鑽機在運作。一月份，我們將把其中一個人、三台鑽孔機搬到德州西部，並進行搬遷該鑽孔機的過程。我們蠶食了先前指定用於增量 ICD 設備的機會。因此，今天我們正在海恩斯維爾運行兩台鑽機，並且預計在可預見的將來在該市場上運行兩台鑽機。我們希望保持在海恩斯維爾的存在，並希望將我們船隊的適當部分暴露於天然氣活動中。我們讚賞並希望保持過去十年在海恩斯維爾贏得的品牌和聲譽，我們對該盆地的長期活動反彈持樂觀態度，但我們預計要到今年下半年才能看到這種情況最快2025年。另一方面，去年，我們的西德克薩斯市場一直是 ICD 的成長工具，因為我們成功地在客戶群中增加了鑽機，並在有意義的情況下增加了定期合約風險。儘管過去 12 個月該盆地的鑽機總數穩步下降，但我們的服務和專業精神以及 200 至 300 系列轉換計劃的聲譽卻在穩步下降。

Our catalyst for this market outperformance during the first quarter, we moved the last idle 300 series rig from the Haynesville to the Permian market. And I expect that rig will go to work for one of the most active public E&P operators in West Texas late in the second quarter. The contracts not yet signed, but I feel very good about our chances with this formal customer standing here today, all indications are for a flattish overall rig count in the Permian during the first half of this year in the low 300 ish rig range, primarily due to capital discipline and consolidation amongst E&P companies and flattish WTI prices and my expectation is for our average rig count to be flattish during the second quarter with a bias upwards in the second half of 2024. We also expect elevated churn and rig movement within the Permian market to continue driven by the rebalancing of fleets following the expected closings of announced E&P consolidation transactions, thus incremental rig add opportunities for ICD in the Permian during the second quarter will come primarily from high-grade opportunities where we displace lower spec and under performing competitor rigs. These opportunities are very competitive. But so far, we've been successful in winning more than our fair share. We do expect to see overall Permian rig count tick up in the back half of this year, driven by incremental activity on the part of private E & P's where ICD has a very strong presence right now. We are actively marketing 16 rigs in the Permian Basin. But because of rig churn, we do not expect all of those rigs to be working throughout the quarter. Overall, I would expect us to operate 13 to 14 average net rigs in the Permian over the next quarter.

我們在第一季將最後一台閒置的 300 系列鑽孔機從海恩斯維爾轉移到了二疊紀市場，這是我們在第一季表現出色的催化劑。我預計該鑽機將在第二季末為西德克薩斯州最活躍的公共勘探與生產運營商之一投入使用。合約尚未簽署，但我對今天站在這裡的這位正式客戶的機會感到非常滿意，所有跡像都表明今年上半年二疊紀的總體鑽機數量基本持平，主要在300 台左右的鑽機範圍內，主要是由於勘探與生產公司之間的資本紀律和整合以及 WTI 價格持平，我預計第二季度我們的平均鑽機數量將持平，2024 年下半年將有所上升。我們也預計，在宣布的勘探與生產合併交易預計完成後，船隊的重新平衡將繼續推動二疊紀市場內的流失和鑽機移動增加，因此第二季度二疊紀ICD 的增量鑽機增加機會將主要來自高我們取代較低規格和性能不佳的競爭對手鑽機的機會。這些機會競爭非常激烈。但到目前為止，我們已經成功地贏得了超出應有份額的份額。我們確實預計今年下半年二疊紀鑽機總數將有所增加，這主要是受到私人勘探與生產公司活動增量的推動，而 ICD 目前在私人勘探與生產公司中佔有非常重要的地位。我們正在二疊紀盆地積極行銷 16 台鑽孔機。但由於鑽機流失，我們預計所有這些鑽機在整個季度都不會正常運作。總體而言，我預計下個季度我們將在二疊紀運作 13 至 14 個平均淨鑽井平台。

And two rigs in the Haynesville with a bias towards 17 average net rigs during the back half of the year, based upon our expectations for an increase in private operator rig count that we believe will alleviate the current rig churn that ICD is experiencing. Day rates have generally moved sideways year to date in light of flattish overall rig count in Lower 48. We expect this day rate trend to continue the next couple of quarters. Day rate revenues and daily margins for super-spec rigs are healthy, but obviously lower than they were a year ago, day rate revenues in the Permian for our 300 series rigs have remained stable around the $30,000 range. And for our remaining 200 Series rigs the high 20s a day rate revenues for our two rigs in the Haynesville are lower than these levels.

根據我們對私人業者鑽機數量增加的預期，海恩斯維爾的兩座鑽機在今年下半年平均淨鑽機數量偏向於 17 台，我們相信這將緩解 ICD 目前所經歷的鑽機流失情況。鑑於 48 個州的總體鑽機數量持平，今年迄今為止，日費率普遍橫向波動。我們預計這一日利率趨勢將在接下來的幾季持續下去。超規格鑽機的日費收入和每日利潤狀況良好，但明顯低於一年前，我們 300 系列鑽機在二疊紀的日費收入一直穩定在 30,000 美元左右。對於我們剩餘的 200 系列鑽孔機，我們位於海恩斯維爾的兩個鑽機每天 20 美元的高收入水準低於這些水準。

So as I wind down my prepared remarks, I'd like to reiterate that our strategic operating priority today is maintaining current levels of utilization here in the second quarter and grow in our reported average rig count by end of year. We have a lot of wood to chop as most of our contracts are short term in nature, but most of our customers have rig lines that stretch through most, if not all of this year, I believe we have appropriately positioned our rig fleet through the two additional Haynesville, the Permian relocations early in the first quarter as we expect the effects of lower nat gas prices and customer count consolidation and capital allocation priorities will continue to put a drag on the Haynesville market. The rest of this year, I expect we will continue to see opportunities to solidify our Permian Basin presence as this year plays out as the benefits of our 300 series rigs combined with our operational and HS&E performance and ICD. impact offerings continue to bring new customers into the fold and allow us to expand existing customer relationships in the face of a likely flat overall Permian rig count through the summer this year it is imperative that we continue to punch above our weight class to drive incremental ICD rig utilization. But I believe we've shown that we're more than able to do that. I'll make some additional concluding remarks before opening the call up for questions right now, I want to turn the call over to Phillippe to discuss our financial results and financial outlook in a little more detail.

因此，當我結束準備好的發言時，我想重申，我們今天的戰略運營重點是在第二季度維持當前的利用率水平，並在年底之前增加我們報告的平均鑽機數量。我們有很多木材需要砍伐，因為我們的大多數合約本質上都是短期的，但我們大多數客戶的鑽機生產線延伸到今年的大部分時間（即使不是全部），我相信我們已經通過適當的方式定位了我們的鑽機隊由於我們預計天然氣價格下降、客戶數量整合和資本配置優先事項的影響將繼續拖累海恩斯維爾市場，因此第一季初將有另外兩個海恩斯維爾、二疊紀盆地搬遷。今年剩下的時間裡，我預計我們將繼續看到鞏固我們在二疊紀盆地業務的機會，因為今年我們的 300 系列鑽機的優勢與我們的營運和 HS&E 性能以及 ICD 相結合。影響力產品繼續吸引新客戶加入，並使我們能夠擴大現有客戶關係，儘管今年夏季二疊紀總體鑽機數量可能持平，但我們必須繼續超越我們的重量級別，以推動增量 ICD鑽機利用率。但我相信我們已經證明我們完全有能力做到這一點。在現在開始提問之前，我將做一些額外的總結發言，我想將電話轉給菲利普，更詳細地討論我們的財務表現和財務前景。

Thanks, Anthony. During the quarter, we reported an adjusted net loss of 7.2 million or $0.5 per share and adjusted EBITDA of 11.8 million. We operated 15.1 average rigs during the quarter, in line with our prior conference call. Guidance. Margin per day during the quarter came in at $11,829 per day exceeding guidance by various due to very strong cost control. Early termination revenues during the quarter or de minimus SG&A costs were 4.3 million which included approximately $216,000 of stock-based and deferred compensation expenses. Cash SG&A expense of 4 million during the quarter was in line with guidance and included approximately $300,000 in one-time charges associated with cost initiatives implemented during the quarter. Stock-based compensation expense was lower than guidance, driven by variable accounting tied to changes in our stock price.

謝謝，安東尼。本季度，我們報告調整後淨虧損為 720 萬美元，即每股 0.5 美元，調整後 EBITDA 為 1,180 萬美元。本季我們平均營運 15.1 台鑽機，與我們先前的電話會議一致。指導。由於非常強有力的成本控制，本季的每日利潤為 11,829 美元，超過了各種指導。本季提前終止收入或最低 SG&A 成本為 430 萬美元，其中包括約 21.6 萬美元的股票和遞延補償費用。本季的現金 SG&A 費用為 400 萬美元，符合指導方針，其中包括與本季實施的成本計劃相關的約 30 萬美元的一次性費用。由於與股價變動相關的可變會計處理，股票薪酬費用低於指導水準。

Interest expense during the quarter aggregated 9.9 million. This included 2.7 million associated with noncash amortization of deferred issuance costs and debt discount, which we excluded when presenting adjusted net income tax benefit for the quarter was $231,000 during the quarter, cash payments for capital expenditures, net of disposals were approximately 8.2 million and included 8.1 million of payments related to prior period items. And there was approximately 4 million of CapEx accrued in accounts payable at quarter end.

本季利息支出總計 990 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270 萬美元，我們在介紹本季度調整後淨利潤稅收益時排除了這一點，本季度資本支出的現金支付（扣除處置後約為820 萬美元） 810 萬美元與前期項目相關的付款。季度末應付帳款中應計了約 400 萬資本支出。

Moving on to our balance sheet. We repaid 3.5 million of convertible notes at quarter end. And at quarter end, we also paid in-kind 13.3 million of accrued interest due on the convertible notes. Borrowings under our revolving credit facility were 8.3 million at quarter end, a slight increase compared to prior year end associated with working capital investments. Overall net working capital investments during the quarter increased by $6.3 million associated with normal seasonal ad valorem taxes and annual incentive compensation payments.

繼續我們的資產負債表。我們在季度末償還了 350 萬張可轉換票據。截至季末，我們也以實物形式支付了 1,330 萬美元的可轉換票據到期應計利息。截至季末，我們的循環信貸額度下的借款為 830 萬美元，與上年末相比，與營運資本投資相關的借款略有增加。該季度的整體淨營運資本投資增加了 630 萬美元，其中包括正常的季節性從價稅和年度激勵補償付款。

Our financial liquidity at quarter end was 20.4 million, comprised of cash on hand of 6.26 0.9 million and 13.5 million of availability under our revolving credit facility.

截至季末，我們的財務流動性為 2,040 萬美元，其中包括 626 萬美元的手頭現金和 1,350 萬美元的循環信貸額度。

Now moving on to guidance for the second quarter of 2020. For right now, we have 17, 18 rigs actively in play for ICT from a marketing perspective, but a handful of these rigs utilization is affected by elevated churn and basin relocations between the Haynesville and Permian markets. Our two rigs operating in the Haynesville also have the additional headwinds of a very challenged market. Anthony already outlined our expectation for a relatively flat reported average rig count for the second quarter, as well as our expectation for some improvement during the back half of the year as we address some of the near term utilization headwinds. Overall, during the second quarter, we expect operating days to approximate 1,350 days, relatively flat on an average rate basis with the first quarter, we expect margin per day to come in between 9,750 and $10,250 per day. With a sequential decline related to lower day rates on contract renewal renewals as all legacy contracts have now expired and some small increases in cost per day compared to the first quarter. As Anthony mentioned, our two Haynesville rigs are operating at lower dayrates compared to the broader US land market. Breaking out the components, we expect revenue per day to range between 29,029 thousand $500 per day and cost per day to range between 18,919 thousand $400 per day, unabsorbed overhead expenses will be about 1 million, and we have excluded these expenses from our cost per day guidance. The increase in these costs is associated with the consolidation of our Houston operating yard into our West Texas operations, which will occur during the second and third quarter of 2024 and a result in annual operating cost savings thereafter of 1 million or more Once completed, we expect second quarter cash SG&A expense to be approximately 3.7 million and non-cash stock-based compensation expense to be approximately 1 million, assuming no material changes to our stock price that would impact variable awards. Interest expense to be approximately 10.4 million. Of this amount, approximately 2.9 million relate to non-cash amortization of deferred financing costs and debt discounts. Depreciation expense for the second quarter is expected to be flat with the first quarter. We expect the tax benefit for the second quarter bill to be in line with the first quarter as well.

現在轉向 2020 年第二季的指導。目前，從行銷角度來看，我們有 17、18 個鑽機積極參與 ICT，但其中少數鑽機的利用率受到海恩斯維爾和二疊紀市場之間的流失增加和盆地搬遷的影響。我們在海恩斯維爾營運的兩座鑽井平台也面臨充滿挑戰的市場帶來的額外阻力。安東尼已經概述了我們對第二季度報告的平均鑽機數量相對持平的預期，以及我們對今年下半年因解決一些近期利用率不利因素而有所改善的預期。總體而言，我們預計第二季的營業天數約為 1,350 天，與第一季的平均水平相對持平，我們預計每日利潤率將在 9,750 至 10,250 美元之間。連續下降與合約續約日費率較低有關，因為所有舊合約現已到期，並且與第一季相比，每日成本略有增加。正如安東尼所提到的，與更廣泛的美國土地市場相比，我們的兩個海恩斯維爾鑽井平台的日費率較低。將各個組成部分分開，我們預計每天的收入將在29,029,000 美元/天之間，每天的成本將在18,919,000 美元/天之間，未吸收的管理費用約為100 萬美元，並且我們已將這些費用從我們的每項成本中排除。這些成本的增加與我們的休士頓作業船廠併入我們的西德州作業有關，這將在2024 年第二季和第三季進行，並導致此後每年節省100 萬美元或更多的營運成本一旦完成，我們假設我們的股價沒有發生影響可變獎勵的重大變化，預計第二季現金 SG&A 費用約為 370 萬美元，非現金股票補償費用約為 100 萬美元。利息支出約1040萬。其中，約 290 萬美元涉及遞延融資成本和債務折扣的非現金攤提。第二季的折舊費用預計將與第一季持平。我們預計第二季帳單的稅收優惠也將與第一季保持一致。

Before I turn the call back over to Anthony, I did want to discuss capital and balance sheet priorities that we as we navigate the remainder of this year and move into next year. We have made the election to pick our next interest payment due under our convertible notes on September 30th of this year, and will likely pick subsequent interest payments as well. Our anticipation is that our lenders will continue to accept mandatory offers to repurchase notes at par, which will somewhat offset increases in the overall convertible note balance. Our expectations for relatively flat market conditions is obviously one driver for our decision to continue to pick interest, but there are several other key considerations. Most important, the PIC interest rate on our notes is lower than our cash rate by 300 basis points. So from a cash-on-cash perspective through maturity, we believe this decision is best for managing our overall net debt and other info important considerations to manager manage overall liquidity while budgeting to pay down our revolver balance prior to its maturity in September of 2025. Our expectation is it will be challenging to extend or replace the revolver facility until over our convertible notes are refinanced. The maturity is extended in that regard. As we previous previously announced, our Board of Directors has initiated a formal review process to begin evaluating alternatives with respect to refinancing our convertible notes and other strategic opportunities and formed a committee of independent directors for that purpose. Obviously, there can be no assurance at this time that this process or evaluation will result in any any one or more transactions or any particular transaction or strategic outcome or the timing of any such outcome.

在我把電話轉回給安東尼之前，我確實想討論今年剩餘時間和明年的資本和資產負債表優先事項。我們已選擇選擇今年 9 月 30 日根據可轉換票據到期的下一次利息支付，並且也可能選擇後續利息支付。我們的預期是，我們的貸方將繼續接受按面值回購票據的強制性要約，這將在一定程度上抵消可轉換票據總體餘額的增長。我們對相對平穩的市場狀況的預期顯然是我們決定繼續選擇興趣的驅動因素之一，但還有其他幾個關鍵考慮因素。最重要的是，我們票據上的 PIC 利率比我們的現金利率低 300 個基點。因此，從到期日現金對現金的角度來看，我們認為這項決定最適合管理我們的整體淨債務和其他重要考慮因素，以管理整體流動性，同時制定預算以在2025 年9 月到期之前償還我們的循環餘額。我們的期望是，在我們的可轉換票據獲得再融資之前，延長或更換左輪手槍設施將具有挑戰性。在這方面，成熟度得到了延長。正如我們先前宣布的，我們的董事會已啟動正式審查流程，開始評估有關可轉換票據再融資和其他策略機會的替代方案，並為此目的成立了一個獨立董事委員會。顯然，目前無法保證此過程或評估將導致任何一項或多項交易或任何特定交易或策略結果或任何此類結果的時間表。

And with that, I'll turn the call back over to Anthony.

然後，我會將電話轉回安東尼。

Thanks, Phil. So rolling all this up, I'm pleased with our efforts year to date to position the Company to maximize the opportunities that are available to us here in 2024, we continue to grow our Permian Basin presence, which is the most important land rig market in the Lower 48 in the process. We continue to make progress on the three most important overall strategic initiatives we have, which include paying down debt, increasing our exposure to the 300 series market and leveraging our operational and HS&E performance, along with our ICT impact offerings to win incremental contracts and eventually better margin per day.

謝謝，菲爾。因此，總而言之，我對我們今年迄今為止為使公司最大限度地利用我們在2024 年可獲得的機會所做的努力感到高興，我們將繼續擴大我們在二疊紀盆地的業務，這是最重要的陸域鑽機市場在下48的過程中。我們繼續在三項最重要的整體戰略舉措上取得進展，包括償還債務、增加我們在300 系列市場的曝光度、利用我們的運營和HS&E 績效以及我們的ICT 影響力產品來贏得增量合同，並最終每天更好的利潤。

With that, we will take your questions. Operator, please open up the line for Q&A.

這樣，我們將回答您的問題。接線員，請開通問答線。

(Operator Instructions) Alex Henderson, Sidoti & Co.

（操作員說明）Alex Henderson，Sidoti & Co.

Yes, hi, this is Alex on for Steve Ferazani. And a few questions on my end. The first on dayrates, and I know some of that again, as is decreasing the margin there. Can you talk about any stabilization in pricing that you're feeling and you're getting a premium for the super-spec rigs end? Is that a function of your competitors being less disciplined in pricing or just sort of a function of a weaker market too much supply that kind of stuff?

是的，大家好，我是史蒂夫·費拉扎尼的亞歷克斯。最後還有幾個問題。第一個是日費率，我又知道了一些，就像減少利潤一樣。您能談談您感覺價格是否穩定以及您從超級規格鑽機端獲得溢價嗎？這是因為您的競爭對手在定價方面缺乏紀律，還是因為市場疲軟而導致此類產品供應過多？

Well, Alex, appreciate the question.

好吧，亞歷克斯，謝謝你的問題。

Have we done well, I think that the rates have played out this year pretty much the way that we expected. Things have kind of moved sideways, especially in on the higher end 300 series spec rigs where you've seen a decrease in the average day rate revenues for us has really been around the contract renewals. For example, we had a rig that rolled off a one year contract that was put in place quite a while ago. Obviously, it's repricing and the rate's lower today than it was a year ago. And I think that's what you're seeing in terms of our guidance, we expect things to move sideways for the next quarter or two, and that's what we're seeing. That's a function of just the churn data that we're experiencing in the market, especially out in the Permian. The overall rig count out there is more or less flat, has been flat for the last few months. But there is a lot of churn below the surface and that's what's creating that headwind on day rate revenues. But still on a historical basis, they're okay. Obviously, they're lower than they were a year ago, but pleased with what the company has been able to do and generate in the first quarter in light of the current market.

我們做得好嗎？事情發生了一些橫向變化，特別是在高端 300 系列規格的鑽機中，您可以看到我們的平均日費收入的下降實際上是由於合約續約造成的。例如，我們有一個鑽井平台，該鑽井平台簽訂了不久前簽訂的一年合約。顯然，它正在重新定價，而且今天的利率比一年前要低。我認為這就是你在我們的指導中所看到的，我們預計未來一兩個季度事情會橫向發展，這就是我們所看到的。這只是我們在市場上經歷的流失數據的函數，尤其是在二疊紀盆地。整體鑽機數量或多或少持平，過去幾個月一直持平。但表面之下存在著大量的流失，這就是日費收入面臨阻力的原因。但從歷史的角度來看，他們還是可以的。顯然，它們比一年前要低，但根據當前市場，公司對第一季的業績和產出感到滿意。

Thank you for the context very helpful. And second question on SG&A, yes, it is much lower, which is great. Is that sustainable? And could you talk a little bit more about how you're able to achieve?

感謝您提供的上下文非常有幫助。關於SG&A 的第二個問題，是的，它低得多，這很好。這是可持續的嗎？您能多談談您是如何實現這一目標的嗎？

Yes, some of that?

是的，其中一些？

Yes.

是的。

So the SG&A actually was a little elevated in the fourth quarter on the first quarter compared to our guidance in the first quarter. Some of that seasonal and we also had some one-time costs on some reorg costs that we incurred in the first quarter. We're tracking along on a cash SG&A basis, you know, maybe 15 million a year-ish on an annualized basis, the stock-based comp that was lower for the quarter. A lot of that had to do with variable accounting on our awards with the change in stock price. So I don't expect it to be that low on this next quarter. But it all depends on weather what happens to our stock price over the next three months.

因此，與我們第一季的指導相比，第四季度的銷售及管理費用實際上比第一季略有上升。其中一些是季節性成本，我們在第一季產生的一些重組成本中也有一些一次性成本。我們正在以現金 SG&A 為基礎進行跟踪，你知道，按年化計算，每年可能為 1500 萬左右，本季度基於股票的比較較低。其中很大一部分與我們的獎勵隨股價變化的可變會計有關。所以我預計下個季度不會那麼低。但這一切都取決於未來三個月我們的股價會發生什麼變化。

Thanks.

謝謝。

For clarifying.

為了澄清。

Appreciate that. And last question, just zooming out, curious to get your view on 2025 in terms of the rig market.

感謝。最後一個問題，只是縮小範圍，很想知道您對 2025 年鑽孔機市場的看法。

Look, we're not it's optimistic if you think about where oil prices are today it up, if you think there'd be a little bit more excitement out there, but our customers continue to demonstrate tremendous discipline. I'm sticking to their guns in terms of what their priorities are, what they've communicated to their investors. A lot of it quarters between now and then and up. We'll just have to see appreciate that.

聽著，如果你想想今天的油價上漲了多少，如果你認為外面會有更多的興奮，我們並不樂觀，但我們的客戶繼續表現出極大的紀律。我堅持他們的立場，即他們的優先事項是什麼，以及他們向投資者傳達的訊息。其中很多是從現在到那時以及以後的季度。我們只需要看到欣賞這一點。

That's all for me. Thank you.

這就是我的全部。謝謝。

Thank Alex.

謝謝亞歷克斯。

Don Crist, Johnson Rice.

唐克里斯特、約翰遜賴斯。

Morning, guys. How are you all this morning doing good will be.

早安，夥計們。今天早上你們好嗎？

Well, I am on I wanted to ask about the costs. You know, cost have been rising for quite a while, but it looks like you were able to take a big, a decent chunk out in the first quarter. Are there any specific drivers behind that? And it sounds like they may go up just a touch here in the second quarter about what actually happened on the cost side in the first quarter that that had some pullbacks?

嗯，我想問一下費用。你知道，成本已經上升了很長一段時間，但看起來你能夠在第一季獲得相當大的收益。這背後有什麼具體的驅動因素嗎？聽起來他們可能會在第二季度略微上漲，因為第一季成本方面實際發生了什麼，導致了一些回調？

Yes.

是的。

Well, first on up in January, we did institute some measures to kind of rightsize the organization for what was obvious. That point would be a lower level of activity in 2024 compared to what we thought as we began to put our budget together in the third and fourth quarter of last year. So you see that primarily and some in SG&A, but off support field support type of costs. Some of it also was timing of our smaller size, drill line purchases. And when they flow through and how many flow through can can have an impact. I think we have made progress some of the cost reductions are sustainable. But I would point out that as we enter the summer months, we typically see cost move up a couple hundred bucks a day, and that's going to be just driven by heat as more of our fleet today as a percentage is it is working in West Texas Permian Basin. I don't have to tell you how high it gets out there, the impact that has some of it's obvious around radiators and AC units and stuff like that. But there's some other stuff that's not so obvious such as just believe it or not water, Gatorade and that kind of stuff. So yes, I do think that some of it is sustainable. We'll probably give some of it back in Q2 just because of the reasons that I pointed out. But again, really pleased with the way the companies performed, especially on the cost line year to date.

嗯，首先從一月開始，我們確實採取了一些措施來調整組織規模，以實現顯而易見的目標。與我們去年第三季和第四季開始匯總預算時的預期相比，2024 年的活動水準將較低。因此，您會看到，這主要是在 SG&A 中，但不是支援現場支援類型的成本。其中一些也是我們購買較小尺寸鑽探繩的時機。它們何時流經以及有多少流經會產生影響。我認為我們已經取得了進展，一些成本降低是可持續的。但我要指出的是，當我們進入夏季時，我們通常會看到成本每天上漲幾百美元，而這將只是由高溫驅動，因為今天我們的機隊中有更多的機隊在西部工作。德州二疊紀盆地。我不需要告訴你它有多高，它對散熱器和空調裝置以及類似的東西的影響是顯而易見的。但還有一些其他的東西不那麼明顯，例如信不信由你，水、佳得樂之類的東西。所以，是的，我確實認為其中一些是可持續的。由於我指出的原因，我們可能會在第二季度歸還其中一部分。但我再次對這些公司的表現感到非常滿意，尤其是今年迄今的成本線。

Appreciate that color. And you know, obviously, you've done a very, very good job over the past nine months or so moving stuff from the Haynesville to the Permian and displacing them high-grading some of your customers' rigs out there, but can you just touch on who you're butting up against or are we pretty much to the point where all the high spec rigs are working and the lower spec rigs have been displaced or is there still some of that to go out more or less surrounding that comment that you had, you know, maybe putting another rig back to work in the back half of the year?

欣賞那個顏色。你知道，顯然，在過去九個月左右的時間裡，你已經做得非常非常好，將東西從海恩斯維爾轉移到二疊紀，並將它們替換為你客戶的一些高等級鑽井平台，但是你可以嗎？評論你知道，你可能在今年下半年讓另一台鑽孔機重新投入工作？

Yes, I do think there's more to come. And Dan, just on the decision to move rigs in the first quarter, no doubt that was the right move. If you think about markets around the country, Haynesville has been hit the hardest and that's following what was a really tough 2023 as you know, but we had a better chance of putting those two rigs to work in the Permian. One went straight to work, and fortunately, we cannibalize an opportunity as we mentioned, but the other one really excited about the contracts that we're working on for the second rig. I expect that rig would go back up late Q2, early Q3 and up. I do think there are some lower spec rigs that are still under contract today. That's going to provide some opportunities in the near term for our fleet. And then as we look out over the balance of this year. I do think that rig count in the Permian will begin to tick up during Q3 and Q4, and that's going to be primarily driven by private E&P activity. And those are guys that we've had long-standing relationships with. So it had nothing to lay up in this business anymore, but I feel pretty optimistic about running flat here in Q2 and then devices at one rig at two, we'll see in the back part of this year.

是的，我確實認為還會有更多的事情發生。丹，剛剛決定在第一季移動鑽孔機，毫無疑問這是正確的舉動。如果你考慮全國各地的市場，海恩斯維爾受到的打擊最為嚴重，正如你所知，這是在經歷了非常艱難的2023 年之後，但我們有更好的機會讓這兩個鑽井平台在二疊紀地區投入使用。一個直接開始工作，幸運的是，正如我們所提到的，我們蠶食了一個機會，但另一個對我們正在為第二台鑽機處理的合約感到非常興奮。我預計該鑽機將在第二季末、第三季初及以上恢復。我確實認為今天仍有一​​些規格較低的鑽機仍在合約期間。這將在短期內為我們的機隊提供一些機會。然後當我們展望今年的餘額時。我確實認為二疊紀的鑽機數量將在第三季和第四季開始增加，這將主要由私人勘探與生產活動推動。這些人與我們有著長期的合作關係。因此，它在這項業務中已經沒有什麼可保留的了，但我對第二季度的平穩運行感到非常樂觀，然後設備在一台設備上運行兩台設備，我們將在今年下半年看到。

I appreciate the color.

我很欣賞它的顏色。

I'll turn it back like into the next question comes from David storms with Stonegate Capital. Please go ahead.

我將把它轉回來自 Stonegate Capital 的 David Storms 的下一個問題。請繼續。

Morning.

早晨。

Morning.

早晨。

Wondering just hoping we could touch back on the break. Dave, relocated to the Permian on. Could you just maybe give us a little more color around what the thought process was to you mentioned the cannibalization. And was that customer driven than the 300 series rig? Was that just timing and cost consideration. Maybe any more color you could give us there would be helpful.

想知道只是希望我們能回到休息時間。戴夫，搬遷到二疊紀。您能否給我們更多關於您提到的蠶食的思考過程的資訊。是客戶驅動的而不是 300 系列鑽孔機嗎？這只是時間和成本的考量嗎？也許你能給我們更多的顏色會有幫助。

Yes. I think it's really just being sober and looking at the Haynesville over the balance of this year, David. And in fact, I think with one of our we only have two rigs working in the Haynesville to day one just rolled from one customer to the next. And I think we've just won the only incremental opportunity that's out there over the next quarter or two of that. That market's been down over 20% year to date. I think there's still some downdraft to come and have was very confident that that quality of rig that we moved.

是的。我認為這實際上只是保持清醒，並在今年餘下的時間裡審視海恩斯維爾，大衛。事實上，我認為我們的其中一台只有兩台鑽孔機在海恩斯維爾工作，第一天剛從一個客戶滾到下一個客戶。我認為我們剛剛贏得了未來一兩個季度唯一的增量機會。今年迄今為止，該市場已下跌 20% 以上。我認為仍有一些下降趨勢，我們對我們移動的鑽機的品質非常有信心。

The second one is such that given our what we're seeing in the market, the discussions we're having with customers, I was pretty confident that we'd be able to put it to work in the Permian Basin. So really the decision was do I leave it, do we leave it in the Haynesville and the odds of it going to work over the next 12 months, relatively low or put a few chips on the table spent some money to relocate the rig. And we felt like we would have a pretty good opportunity to put it to work and the Permian. And I think that's what's going to happen, sir.

第二個是這樣的，鑑於我們在市場上看到的情況以及我們與客戶進行的討論，我非常有信心我們能夠將其在二疊紀盆地發揮作用。所以真正的決定是我是否把它留在海恩斯維爾，以及它在未來 12 個月內發揮作用的可能性相對較低，或者花一些錢重新安置鑽機。我們覺得我們將有一個很好的機會將其運用到二疊紀。我認為這就是將會發生的事情，先生。

Very helpful. And then just one more for me. Can you just talk a little bit more about the customer acquisition process when you're competing to replace some of these lower spec rigs. Is that just also a timing thing where you're waiting for they're contracts to be up? Are there other considerations to think about?

很有幫助。然後再給我一個。當您競相更換一些較低規格的鑽孔機時，您能多談談客戶獲取流程嗎？這是否也是您等待合約到期的時間問題？還有其他需要考慮的因素嗎？

Yes, that's part of it.

是的，這是其中的一部分。

You know, there's friction when a customer releases one rig and brings another one and is a demo that rig has got to move another one and sometimes you're starting up a rig. So it might not be quite as efficient in the first few weeks or month as it will be over the course of a couple of months with that customer so those are things that the client passed away. But we've got some pretty exciting things that we've been working on year to date around attacking cycle times of the pressure that we feel from customers today around efficiencies and reducing days per well days on the pad. It's as intense as I've ever seen it and the quality of the equipment that we have the quality of the people that we have to look at wringing out every last bit of efficiencies. It's really gone well for us year to date. So we've got data now we've got things that we can show customers where we can demonstrate to them that while changing out the rig, the friction that's going to be cost is worth it. But bigger picture, we're going to help you drill a better wellbore. We're going to help you drill that well on that pad in fewer days. And at the end of the day, reduce your cost per foot.

您知道，當客戶釋放一台設備並帶來另一台設備時，會出現摩擦，並且演示設備必須移動另一台設備，有時您要啟動一台設備。因此，在最初的幾週或幾個月內，與該客戶的幾個月內的效率可能不會那麼高，所以這些都是客戶去世的事情。但今年迄今為止，我們一直在做一些非常令人興奮的事情，圍繞著解決我們今天從客戶那裡感受到的壓力週期時間，圍繞著效率和減少每井天數。這是我所見過的最激烈的情況，我們必須考慮設備的品質和人員的質量，以榨取最後一點效率。今年迄今為止，我們確實進展順利。因此，我們現在已經有了數據，我們可以向客戶展示我們可以向他們證明，在更換鑽孔機時，所產生的摩擦是值得的。但從更大的角度來看，我們將幫助您鑽出更好的井眼。我們將幫助您在更少的時間內在該平台上鑽出這口井。最終，降低每英尺的成本。

I mean that's the value proposition. That's the pitch.

我的意思是這就是價值主張。這就是球場。

And I think the fact that we've increased our our rig count in the Permian by 50% over the last 15 months and not having to do that based necessarily on rate is a testament see what's going on here at ICD today.

我認為，在過去 15 個月裡，我們在二疊紀的鑽機數量增加了 50%，而且不必根據速率來增加，這一事實證明了今天 ICD 所發生的情況。

So very helpful. Thank you for the commentary.

非常有幫助。謝謝您的評論。

Thank you, Dave.

謝謝你，戴夫。

Next question comes from Don Crist with Johnson Rice with a follow-up. Please go ahead.

下一個問題來自唐·克里斯特（Don Crist）和約翰遜·賴斯（Johnson Rice）的跟進。請繼續。

Anthony, I just wanted to ask about your most recent comment. You know, obviously, one of your competitors has kind of moved towards performance-based contracts and is forming for lack of a better term, more partnerships with the operators today. You know, it sounds like you are doing some of that, but has the contracts really reflected that or you can get many kind of uplift from make it more, you know, consistent hole or or saving days, et cetera. I mean, any comments around that?

安東尼，我只是想問你最近的評論。您知道，顯然，您的競爭對手之一已經轉向基於績效的合同，並且由於缺乏更好的條款而正在與當今的運營商建立更多的合作夥伴關係。你知道，聽起來你正在做其中的一些事情，但是合約是否真正反映了這一點，或者你可以通過增加更多，你知道，持續的漏洞或節省時間等來獲得多種提升。我的意思是，對此有什麼評論嗎？

Yes, I think it is showing, Dan. Sometimes it shows in utilization, right, where you might win an opportunity that that you otherwise might not have won or you may be able to displace someone else's rig, all things being equal before because you can perform better. I do think up you are seeing that in day rate revenues, the average day rate revenues at the company, it's not just that we have to necessarily compete on price.

是的，我認為它正在顯現，丹。有時它會體現在利用率上，對吧，你可能會贏得一個你本來可能不會贏得的機會，或者你可能能夠取代別人的裝備，在所有條件都相同的情況下，因為你可以表現得更好。我確實認為您會看到，在日費收入中，也就是公司的平均日費收入中，我們不僅必須在價格上競爭。

Certainly the market's got to determine a certain baseline in regards to the day rate, but we have to be able to demonstrate that we can add value.

當然，市場必須確定日費率的某個基準，但我們必須能夠證明我們可以增加價值。

And the way that we add value today is first working safe not doing anything that's going to harm the environment. But third, reducing like said, days on well days on pad. And I think you you see that reflected today in ICD's utilization I think going forward, maybe not Q2, but certainly later this year, rolling into next year, I think you begin to see that margin per day.

我們今天增加價值的方式首先是安全工作，不做任何會損害環境的事情。但第三，如前所述，減少油井上的天數。我認為您今天已經看到了 ICD 利用率的反映，我認為未來，也許不是第二季度，但肯定是今年晚些時候，進入明年，我認為您開始看到每天的利潤。

Okay.

好的。

But none of your contracts are structured today with either a bonus structure or anything like that where if you meet certain thresholds, you get additional capital, right?

但現在你們的合約都沒有獎金結構或類似的結構，如果你們達到一定的門檻，你們就會獲得額外的資本，對嗎？

That's correct, Dan.

沒錯，丹。

We are we've had those discussions in the past, we're open to them up. And I would expect at some point we would would be able to have that type of structure. We're certainly open to it today.

我們過去已經進行過這些討論，我們對此持開放態度。我希望在某個時候我們能夠擁有這種類型的結構。今天我們當然對此持開放態度。

I appreciate the follow-up.

我很欣賞後續行動。

Thank you.

謝謝。

Yes, sure, Dan.

是的，當然，丹。

Thank you.

謝謝。

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。

Thank you very much. So as I close out this call, I do want to say thank you. Thank you to the many employees at ICD for their hard work and dedication.

非常感謝。因此，當我結束這通通話時，我確實想說謝謝。感謝ICD眾多員工的辛勤工作和奉獻精神。

I would also like to thank our customers for their business, and we'd like to say thank you to you for taking the time to listen Earnings Call. So with that we'll sign off from here.

我還要感謝我們的客戶的業務，我們要感謝您抽出時間收聽收益電話會議。那我們就從這裡結束。

Thank you. Conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

謝謝。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。