For the fourth quarter of 2016, the Company reported revenues of $18.0 million, a net loss of $10.4 million, or $0.28 per share, an adjusted net loss of $5.2 million, or $0.14 per share and adjusted EBITDA of $2.6 million. This compares to revenues of $14.5 million, a net loss of $7.2 million, or $0.19 per share, an adjusted net loss of $6.5 million, or $0.17 per share, and adjusted EBITDA of $1.0 million for the third quarter of 2016, and revenues of $23.7 million, a net loss of $5.2 million, or $0.22 per share, an adjusted net loss of $0.9 million, or $0.04 per share, and adjusted EBITDA of $7.2 million for the fourth quarter of 2015.

For the year ended December 31, 2016, the Company reported revenues of $70.1 million, a net loss of $22.2 million, or $0.67 per share, an adjusted net loss of $14.4 million, or $0.43 per share and adjusted EBITDA of $16.4 million. This compares to revenues of $88.4 million, a net loss of $7.9 million, or $0.33 per share, an adjusted net loss of $1.8 million, or $0.08 per share, and adjusted EBITDA of $25.4 million for the twelve months ended December 31, 2015.

Chief Executive Officer Byron Dunn commented, "I am very pleased with ICD's performance throughout the extraordinarily difficult 2016 fiscal year. Despite suffering the worst energy industry downturn in history, ICD remained EBITDA positive with substantial margins generated by working rigs. During 2016, the ICD team reorganized and streamlined, and exited 2016 with a much more efficient cost structure. True pad-optimal ShaleDriller rigs were the last rigs to go down during the downturn, and have been the first to return to work as the market recovers. Since the end of 2016, ICD has signed term contracts with tenors ranging from six months to one year or longer for six rigs, and 100% of its marketed fleet is now contracted. ICD will be running more rigs than at any other point in the Company's history. Driven by what we believe is 100% effective utilization of available pad optimal rigs across the industry, dayrates for pad optimal ShaleDriller rigs have now moved higher from trough dayrates. We are in discussions with multiple customers for the addition of three ShaleDriller rigs to our marketed fleet, including our final rig conversion, and expect to resume ICD's growth arc shortly as market conditions continue to improve."

Quarterly Operational Results

The Company's marketed fleet operated at 78.2% utilization and recorded 936 revenue days for the fourth quarter of 2016 compared to 64.7% utilization and 774 revenue days for the third quarter of 2016 and 87.1% utilization and 962 revenue days for the fourth quarter of 2015. Rig operating margins, excluding reactivation and rig construction costs, for the fourth quarter of 2016 were $7,543 per day, compared to $7,806 per day for the third quarter of 2016 and $10,419 per day for the fourth quarter of 2015.

Operating costs for the fourth quarter of 2016 totaled $12.1 million, compared to $11.2 million for the third quarter of 2016 and $14.4 million for the fourth quarter of 2015. Fourth quarter 2016 operating costs included $0.9 million of reactivation costs and $0.2 million of rig construction costs. On an operating cost per day basis, operating expenses, excluding reactivation and rig construction costs, were $10,681 per day for the fourth quarter of 2016, compared to $9,614 for the third quarter of 2016 and $13,298 for the fourth quarter of 2015.

Selling, general and administrative expenses for the fourth quarter of 2016 were $4.3 million (including $0.9 million of non-cash stock-based compensation), compared to $3.2 million (including $1.0 million of non-cash stock based compensation) for the third quarter of 2016 and $3.1 million (including $1.1 million of non-cash stock based compensation) for the fourth quarter of 2015. The sequential increase in selling, general and administrative expenses compared to the third quarter of 2016 relates primarily to the accrual of annual incentive compensation expense during the quarter. Excluding the impact of these compensation accruals, aggregate selling, general and administrative expenses declined sequentially over 8% between the third and fourth quarters of 2016.

Depreciation expense for the fourth quarter of 2016 was $6.2 million, compared to $6.0 million for the third quarter of 2016 and $6.1 million for the fourth quarter of 2015.

Drilling Operations Update

At the end of the fourth quarter, the Company reactivated two idle rigs on one-year term contracts. Since the end of the year, the Company signed contracts with tenors ranging from six to 15 months for five rigs operating under contracts expiring during the first quarter of 2017. In addition, ICD signed a one-year term contract for its remaining idle drilling rig, with expected mobilization during the middle of the second quarter of 2017.

Capital Expenditures and Liquidity Update

Aggregate cash outlays for capital expenditures during the fourth quarter of 2016 were $3.8 million. The Company's capital expenditure budget for 2017 is $14.1 million. The carrying value of assets held for sale at year end, after the write-down to fair value, was $3.9 million.

At December 31, 2016, the Company's backlog of revenues from contracts with original terms of six months or more was $42.5 million, of which $36.8 million is estimated to be realized in 2017. This backlog does not include expected revenues to be earned from six term contracts signed after year end. Adjusted to include these new contracts, the Company's backlog at December 31, 2016 would have been $75.0 million, of which $61.8 million would be estimated to be realized in 2017.

As of December 31, 2016, the Company had drawn $25.8 million on its $85.0 million revolving credit facility and had net debt, excluding capital leases, of $18.7 million. The borrowing base under the Company's credit facility was $91.8 million as of December 31, 2016.

Conference Call Details

A conference call for investors will be held today, February 28, 2017, at 10:00 a.m. Central Time (11:00 a.m. Eastern Time) to discuss the Company's fourth quarter and year end 2016 results. Hosting the call will be Byron A. Dunn, President and Chief Executive Officer, and Philip A. Choyce, Executive Vice President and Chief Financial Officer.

The call can be accessed live over the telephone by dialing (855) 239-3115 or for international callers, (412) 542-4125. A replay will be available shortly after the call and can be accessed by dialing (877) 344-7529 or for international callers, (412) 317-0088. The passcode for the replay is 10100320. The replay will be available until March 7, 2017.

Interested parties may also listen to a simultaneous webcast of the conference call by logging onto the Company's website at http://www.icdrilling.com in the Investor Relations section. A replay of the webcast will also be available for approximately 30 days following the call.

About Independence Contract Drilling, Inc.

Independence Contract Drilling provides land-based contract drilling services for oil and natural gas producers in the United States. The Company constructs, owns and operates a fleet of pad-optimal ShaleDriller rigs that are specifically engineered and designed to accelerate its clients' production profiles and cash flows from their most technically demanding and economically impactful oil and gas properties. For more information, visit http://www.icdrilling.com.

Forward-Looking Statements

This news release contains certain forward-looking statements within the meaning of the federal securities laws. Words such as "anticipated," "estimated," "expected," "planned," "scheduled," "targeted," "believes," "intends," "objectives," "projects," "strategies" and similar expressions are used to identify such forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements relating to Independence Contract Drilling's operations are based on a number of expectations or assumptions which have been used to develop such information and statements but which may prove to be incorrect. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict, and there can be no assurance that actual outcomes and results will not differ materially from those expected by management of Independence Contract Drilling. For more information concerning factors that could cause actual results to differ materially from those conveyed in the forward-looking statements, please refer to the "Risk Factors" section of the Company's Annual Report on Form 10-K, filed with the SEC and the information included in subsequent amendments and other filings. These forward-looking statements are based on and include our expectations as of the date hereof. Independence Contract Drilling does not undertake any obligation to update or revise such forward-looking statements to reflect events or circumstances that occur, or which Independence Contract Drilling becomes aware of, after the date hereof.

INDEPENDENCE CONTRACT DRILLING, INC.

Unaudited

(in thousands, except par value and share data)

BALANCE SHEETS

December 31, 2016

December 31, 2015

Assets

Cash and cash equivalents

$ 7,071

$ 5,344

Accounts receivable, net

11,468

18,240

Inventories

2,336

2,317

Assets held for sale

3,915

-

Prepaid expenses and other current assets

3,102

3,436

Total current assets

27,892

29,337

Property, plant and equipment, net

273,188

283,378

Other long-term assets, net

1,027

2,074

Total assets

$ 302,107

$ 314,789

Liabilities and Stockholders' Equity

Liabilities

Current portion of long-term debt (1)

$ 441

$ -

Accounts payable

10,031

8,584

Accrued liabilities

7,821

10,206

Total current liabilities

18,293

18,790

Long-term debt (2)

26,078

62,708

Deferred income taxes

396

193

Other long-term liabilities

88

361

Total liabilities

44,855

82,052

Commitments and contingencies

Stockholders' equity

Common stock, $0.01 par value, 100,000,000 shares authorized;

37,831,723 and 24,539,937shares issued, respectively;

and 37,617,920 and 24,403,659 shares outstanding, respectively

376

244

Additional paid-in capital

323,918

276,948

Accumulated deficit

(65,347)

(43,169)

Treasury stock, at cost, 213,803 and 136,278 shares, respectively

(1,695)

(1,286)

Total stockholders' equity

257,252

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Independence Contract Drilling, Inc. Reports Financial Results For The Fourth Quarter And Year Ended December 31 ... - PR Newswire (press release)