Category Archives: Financial Independence

Independence Realty Trust, Inc.'s (NYSE:IRT) Stock Has Seen Strong Momentum: Does That Call For Deeper Study Of Its Financial Prospects?  Simply Wall St

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Independence Realty Trust, Inc.'s (NYSE:IRT) Stock Has Seen Strong Momentum: Does That Call For Deeper Study Of Its Financial Prospects? - Simply Wall...

Financial independence means different things to different people. But, whatever the definition, the rising cost of living is making it harder to achieve.

Forbes Advisor commissioned a survey asking 2,000 people from across the UK what it means to be truly financially independent. The most common response was receiving no financial help from parents or guardians which almost half (44%) of respondents believed to be an accurate depiction of standing on your own two feet.

Others, however, associate financial independence with key life milestones. Buying a home with a mortgage (40%) and paying household bills (37%) were the second and third most popular definitions from our survey.

Currently seven-in-10 (71%) Brits over the age of 18 consider themselves to be financially independent. But while the figure rises to 77% among those aged over 55, this still indicates that almost a quarter (23%) of this age range rely on external financial support to get by.

Just over half (59%) of those aged 18-34 classify themselves as being financially independent.

When asked at what age financial independence is achievable by, the average response was 29. However, a quarter (25%) dont think it is possible until over the age of 30.

When it comes to life milestones that unlock financial independence, our data shows they are generally thought to be reached between the ages of 20 and 30.

Examples include paying rent at your parents home and having a full time job (age 22), renting your own home and getting a credit card (age 24), and paying off your student loan (aged 29).

However, being financially independent enough to support a family is not percieved to happen until age 31, according to our survey respondents.

The ongoing cost-of-living crisis is pushing the dream of financial independence further into the future for many.

For example, those over the age of 55 started paying rent at their parents homes at an average age of 19. This compares to the younger generations, specifically those between the age of 18 and 34, who either started or expect to start paying rent at their childhood home at age 25.

This illustrates how much harder it can be for todays younger generations to start contributing to family household finances. Rising living costs mean it simply is not feasible until theyve had time to increase their earning potential especially if they are also trying to save for a deposit on a home.

The age disparity at which different generations stopped receiving financial help from their parents demonstrates this further. Respondents aged over 55 were aged 22 on average when they stopped receiving assistance from family. This compares to those aged 18-34 who pull the plug on family financial support three years later at 25.

With the economic environment remaining fragile and uncertain, we asked respondents what the future might look like for the next generation.

More than half (58%) of respondents think the average age for reaching financial independence will be much older than previous generations, with one-in-20 (5%) saying theyll never even reach it.

With home ownership being a popular measure of financial autonomy, many also weighed in on the changes wrought by the housing crisis in relation to the impact on younger generations. A fifth (20%) believe home ownership is something only a minority can achieve and that new measures will need to be used to determine what financial independence really means.

Meanwhile, 15% think home ownership wont be possible without help from family members so wouldnt use it as a valid measure of independence.

Whatever step youre taking towards financial independence, making smart decisions early can help to smooth the journey. The finance experts at Forbes Advisor have put together their top tips for those working towards financial independence.

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What Is Financial Independence? Forbes Advisor UK

Have you heard of the Financial Independence/Retire Early (FIRE) movement? Its certainly an alluring pitch. Imagine checking out early from the soul-crushing day job to live on your terms while youre still young. Hike the mountains, see the world, and spend time with your family. All you have to do is live frugallywell below your meansand save like crazy in the first phase of your working years.

Its not just a movement. Its a lifestyle that, if you follow the playbook, could let you retire yearsor even decadesbefore a traditional retirement in your 60s or 70s. FIRE adherents often set aggressive savings goals, live modestly, and invest as much as they can, while building streams of passive income.

A 2022 spike in inflationcombined with a spate of market volatilitycaused many to rethink FIREs feasibility. Still, the discipline thats requiredin both saving and spendingcan help you hit your retirement goals.

With the goal of building up enough assets and passive income to retire early, many FIRE participants make drastic lifestyle changes to reach their FIRE numberthe total amount of assets they need to walk away from the rat race.

Heres one version of the FIRE playbook:

The idea is that after reaching your target number for FIRE, you can quit your job and pursue your passions, such as a less lucrative but more meaningful career, staying home to raise your family, volunteering, or buying a tiny house and living off the nest egg.

To figure out how much you need to retire, do a quick calculation. Figure out how much you need to live on for a year and multiply that by 25. For example, if you need $60,000 a yearover and above other income sourcesto live comfortably and meet your goals, you need to save up $1.5 million before you retire.

The FIRE number calculation is similar to the math behind the 4% rule of retirement. According to the 4% rule, by withdrawing roughly 4% or less per year from your savings, adjusted for inflation, you can raise the probability that your savings may last several decades.

Now lets do another calculation. If you need to save $1.5 million in order to retire early, and youre saving over a period of only 15 years (ages 25 to 40, lets say), your savings (plus your investment earnings) would need to average $100,000 per year.

Reality check: Thats a lot of money. Unless youre a high wage earner in your early years, have an inheritance or a trust fund, or invested in the right start-ups or cryptocurrencies, an early checkout from the workforce might not be feasible.

Not every FIRE participant uses 4% or the 25X calculation as a hard-and-fast rule. Many FIRE participants assume theyll supplement their investment portfolio with passive income or some type of meaningful work. Other members of the FIRE movement dont mind drawing down their portfolios during their early retirement. And the risk of outliving their money? Theyll cross that bridge if and when they come to it.

FIRE isnt one-size-fits-all. The basic strategies for FIRE include:

However, not everyone follows the same path to FIRE. Over the years, different variations have emerged in the movement, with participants tailoring their approach based on income, family situation, and other factors.

Fat FIRE

Lean FIRE

Barista FIRE

Slow FIRE

Pros of FIRE

Cons of FIRE

If youre a FIRE adherent, make sure you have a contingency plan. What if a major medical issue, a market meltdown, or a series of everyday financial emergencies derails your efforts? If your view truly is that youll cross that bridge when you come to it, what if you cant physically cross it? Then what?

The FIRE movement isnt for everyone, and there are certainly risks to the approach. But its key componentsa disciplined approach to saving, investing, and budgetingcan certainly benefit you, even if you plan to stay in the workforce until the traditional retirement age.

Thats something to get FIREd up about.

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The FIRE Movement: Financial Independence; Retire Early | Britannica Money

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Financial Independence

Passive income can help you make more money outside of your day job and reach your financial independence goals. Give one or more of these ideas a try.

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Cullen Roche over at Pragmatic Capitalism writes a short (like always), reflective post which I thought may be something that interests some of you. (Read Needs, Wants and Why We Always Feel Unfulfilled)

He tries to link the recent change in his family dynamics to why many of us feel that life is tougher today than those who live in the past.

By the age of 30, I was financially independent.

My business was self-sustaining, I enjoyed my work immensely and no one could tell me what to do. I wrote a best-selling book. I wrote some great research. I spent years training for and finished a full Ironman despite having never run more than a few miles just a few years before that. I had a dreamy marriage to a woman who is way out of my league. All of my needs were taken care of. Life had transitioned into what I wanted.

In his mind, he was basically FI at a young age. I think that is remarkable if you think that you live in a culture where all your peers have more, making you want to have more.

It is not so easy to say that you have enough.

Some enough can be a misjudgement, and most are aware that they are prone to that error and would buffer for it.

But as I get older I feel that the things I want are endlessly unquantifiable and so after years of feeling like I understood what was enough I began to increasingly fail to grasp what that meant for me.

This all multiplied when I had children. Children mess up your entire concept of living standards because they create so much future uncertainty. As soon as my first daughter was born I felt like I was back in the rate race. Not because I worry about what my neighbour has, but because I feel the need to take care of my kids in perpetuity. And yes, I know thats not the goal. As Warren Buffett says, its better to give your kids enough to do something but not enough to do nothing. But can you quantify that concept? Because I sure cant.

I wonder how many of you feel the same way about your children.

But I think many would agree with him that living with children is like having so many threads of uncertainty.

You dont know how the future is going to turn out.

In investing, heightened uncertainty will cause us to default to inaction. The lack of sophistication in wealth management amplifies the issue.

And this may be why most of us default to living in present if we feel that our resources are stretched.

I do observe that those with ample resources, such as those with $500,000 in annual household income, have less of this problem and would initiate a conversation about planning for the future. This is because as much as their life expanded, they still have a lot of surpluses and after 3-4 years of those surpluses, you began to wonder what to do with that sum.

You feel more okay to locking up that sum of money (because in our minds the money is compartmentalized to be locked up). Not so, if you dont have that margin of safety.

Cullen then explains that as smart and sophisticated as he is, he felt that he has no quantifiable measure of what is enough: What is enough for my kids in 5, 10, 20, 50 years? This is what has happened to my brain in the last few years. And yes, I embrace it. I enjoy the hustle mentality and having something to look forward to. I felt shallow and empty in many ways before kids and they energized my purpose in numerous ways. But at the same time, I feel endlessly unfulfilled despite being someone with all the needs he could ever dream for. Thats because I am fairly certain I will never feel like I have enough because enough is a moving target that can never be pinned down.

And so, if you have a family and aspire towards financial independence but think it is challenging, rest assured that you are not alone. Even some of the better minds struggle with it.

As a finance person, everything is math, but with the uncertainty of how kids will turn out, you dont have a magic figure to pin in the future.

If you ask enough, many wont turn back the clock of not having kids. I have enough friends who has the philosophy of not having kids but come to their late 30s and 40s, things change.

Shallow and emptiness may be real.

In the footnote, Cullen shares with us the nuances of why planning with just yourself and with kids is so different. This is most apparent in modern-day parents. I am an incredibly simple man. Overly simple. If I had it my way my kids would wear the same outfits every day, theyd have the most basic stroller and gadgets, etc. But thats not the world we live in. My daughters have hundreds of outfits. They have dozens of bottles. They have a $1,000 stroller. They have their own iPad. And on and on. The amount of basic stuff they have that makes life easier for the parents is truly absurd. We invest so much time, energy and resources into a modern day child that I think a person from 100+ years ago would have a heart attack if they were transported into the modern world. Are we better off treating our kids this way? I honestly dont know, but thats where were at.

Progress in life does two things:

What I appreciate about Cullens sharing is his model of this problem.

I feel that these problems do exist whether you choose to pursue or not pursue financial independence. You want security (mostly to address a large part of #1).

If you have the resources, you want to do the right thing to make sure your children are well taken care of by optimizing the use of your current and future financial resources. (largely #3)

The solution to this would still be

The reason I like Coast FI so much is that some prioritize their future traditional retirement high enough, earn a good income and wish to take care of it today. We know based on the end-of-history illusion that we might not know exactly what our future self needs forty years from now, but if that kind of security is important to you, you could save up for it first.

If your kids are important, what is stopping us from saving up the major cost for them today? For example, we know that if inflation is consistent today, a local 4-year degree will cost $40,000 today. If you add in the living cost, its $20,000. Have $60,000 and invest it in a balanced fund and that will do reasonably well. If you are more conservative add $20,000 more. If you dont have it immediately, builds it up over the years. Even if you dont have that amount, it at least takes care of 2 of those 4 years!

But if your child is a degen and you are worried about him or her and would want to take care of him or her with your money, then that is a different thing. Still, in the realm of FI, we have a solution for that.

The question is whether can you fund and are you willing to fund that amount.

And if you give a degen child that, will the child become even more degen?

FI planning looks daunting if you squeeze all your expenses in one ball and squeeze the time period into an even bigger ball.

Then you will have the impression that you cannot have it.

Not having FI is ok.

But you will still need to optimize your resources well.

Looking at everything together doesnt help. Break the problem to smaller pieces.

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Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.

Readers also follow Kyith to learn how to plan well for Financial Security and Financial Independence.

Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Fee-only Wealth Advisory firm Providend.

You can view Kyith's current portfolio here, which uses his Free Google Stock Portfolio Tracker.

His investment broker of choice is Interactive Brokers, which allows him to invest in securities from different exchanges all over the world, at very low commission rates, without custodian fees, near spot currency rates.

You can read more about Kyith here.

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Why Financial Independence with Children is Challenging.

Who is ready for the good life of Financial Freedom?

When you read articles about financial freedom, you may hear people drone on and on about how they are spending practically nothing so they can retire at a younger age, like 30. Conversely, they may have already achieved financial freedom and are bragging about how frugal they were so they could retire well before the typical retirement age.

This is what I what I hear. Sell all your stuff, except for a tent, and move to the woods so you will never have to pay rent or utilities again. Joking aside, I actually come across a blog that promoted dumpster diving for food. No thank you! Realistically, most of us will not want to do the things required to retire at 30, 40 or 50. In fact, many people who are reading this likely are not saving enough to maintain their current standard of living during their golden years, if they retired at the age of 70. It pains me to report that about 21% of people have zero, zilch, nada saved for retirement, according to theNorthwestern Mutual's 2018 Planning & Progress Study.

Planning for retirement, or even financial freedom, is a marathon and not a sprint, as the saying goes. Breaking up your financial independence goals into small chunks can help keep you on track while making the process a bit more manageable and, hopefully, a little less stressful. Even if you are starting small, the important thing is to get started.

Here are the seven levels of financial freedom that you should work towards achieving.

Not living paycheck to paycheck may leave more time for hammocks and other relaxing fun.

Level 1: Not Living Paycheck to Paycheck

The first level of financial freedom is building up an emergency fund. Ideally, this will include paying off any credit card debt as well.

Unfortunately, living paycheck to paycheck is the reality of millions of Americans. According to the Federal Reserve's Report on the Economic Well-Being of U.S. Households in 2017, some 40% of households could not cover a $400 unexpected expense. Most of us will have some unexpected bills pop up throughout the year such as car repairs, medical bills and nights out drinking with friends. Having an emergency fund will come in handy during those types of situations.

Level 2: Enough Money to Quit your Job (for a bit)

Financial freedom is all about making work an option. Saving enough money to quit your job forever is a huge undertaking. Accumulating enough money to be able to take some time away from working is a big jump in that direction. This does not mean you have to quit your job, but it sure is a good feeling to know you can.

For extra credit you may want to save up for a sabbatical or extended vacation. I dream of spending a month, or two, in a foreign country each year. By no means will I be quitting my job, but it would take some planning in order to be away from my financial firm for that long.

In the shorter term, that extra money could also serve as your emergency fund. I mentioned that just in case some of you wanted some extra motivation to get to this level.

Financial Freedom - means having enough money to travel and still save for the future.

Level 3: Enough to be Financially Happy and still Save

This is a bit more about enjoying your life and having the money to do it. There is an immense sense of relief when you are earning enough to save, doing the things you enjoy and still having extra at the end of the month.

That extra cushion can be used to move up your financial freedom date. That of course assumes you avoid increasing your lifestyle and spending it.

Related: 5 Principles of Happy Money

Level 4: Freedom of Time

What many people desire is more flexibility with their schedules. Freedom of time and financial independence go hand in hand. Together, they are about leaving the rat race to follow your passion, or spend more time with family, and not going completely broke doing it. It could come in the form of more paid time off, flex time or perhaps working remotely on occasion. Not having to take a day off from work just so you can visit the dentist or take your kid to the doctor could be a huge benefit for some.

The basic level of Financial Freedom may leave you doing your own housecleaning.

Level 5: Enough for a Basic Retirement

Do you know anyone who hates their job? I mean really hates it. I have met a few over the years as a financial planner. Those individuals were willing to do almost anything to retire as soon as possible. Some considered things like moving to a foreign country with a low cost of living, selling their home or getting roommates. I should point out that those people were closer to full retirement age.

For those of you looking to retire early with financial freedom, think about what your bare minimum retirement would look like. Could you move to a place with a lower cost of living? Would you give up going out to dinner? Work towards a nest egg that will support this bare-bones lifestyle. You probably will decide against moving to that cabin in the woods without running water, but it might be nice to know you could. Considering your bare minimum retirement, and knowing you have enough money saved to at least cover some standard of living in your early retirement, will also influence other life choices you may make along the way.

Would you lease a new luxury car if you knew it meant you would have to work a few more years? Downsizing your house might look more appealing if it meant you could retire now rather than in 10 years.

Level 6: Enough to Actually Retire Well

Assuming you are doing pretty well and are happy with your current standard of living, what would you need to maintain your standard of living in retirement? Knowing you are on track to accumulate a nest egg to support that lifestyle is a big win. Gold medals go to those who have accumulated enough assets, or passive income streams, to be in a position to retire well.

Related: 8 Questions to Help You Decide if You Should Move in Retirement

Dining oceanfront may be part of your dream retirement. If you want money to things like this, plan... [+] for it.

Level 7: Enough for Dream Retirement

If you did not spend 40, 60 or more hours per week at work, what would your dream life look like? Would it include things like traveling more and spending more time with friends and family? Traveling the world, flying first class, and staying in nice hotels does not come cheap. Think big here. What would really bring joy into your life.

How great would it feel knowing you are on track to have enough money to retire and be able to live your dream life? What is stopping you from getting there before you are 70 years old?

Level 8: More Money Than You Could Ever Spend

This is probably the most exclusive level of financial freedom. Hopefully, your financial freedom plan will allow you to outlive your money. Having more money than you expected to spend is great. Building enough wealth so that you could not possibly spend all of it is another. This group will likely be filled with people who either won the lottery, inherited a fortune or are founders of companies think Bill Gates or Warren Buffet. Even if they went on a spending spree buying planes, yachts and automobiles; they would still have a hard time spending all of it. I should note that both Gates and Buffet have pledged to give away a vast majority of their wealth when they pass. I would be unfair to count that as spending all their money.

Take a look at where you think you fall on the aforementioned levels of financial freedom. Use it as motivation to keep moving towards your most important financial goals. While I love what I do, and plan to help people with financial planning forever, I take comfort knowing that it will be a choice to continue working in my golden years. Although I am still decades away from full retirement age, I am right between bare bones retirement, if I stayed in Los Angeles, and retiring comfortably if I was willing to leave California. Who knows what the future holds and how far up the chain of financial freedom my household will climb? Where are you at, and where do you want to be in five, 10 or 15 years?

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8 Levels Of Financial Freedom - Forbes

HOUSTON, Nov. 1, 2022 /PRNewswire/ -- Independence Contract Drilling, Inc. (the "Company" or "ICD") (NYSE: ICD) today reported financial results for the three months ended September30,2022.

Third quarter 2022 Highlights

In the third quarter of 2022, the Company reported revenues of $49.1 million, a net loss of $7.2 million, or $0.53 per share, adjusted net loss (defined below) of $4.8 million, or $0.35 per share, and adjusted EBITDA (defined below) of $12.5 million. These results compare to revenues of $24.0 million, a net loss of $4.3 million, or $0.59 per share, adjusted net loss of $13.7 million, or $1.87 per share, and adjusted EBITDA loss of $0.7 million in the third quarter of 2021, and revenues of $42.3 million, a net loss of $2.8 million, or $0.21 per share, an adjusted net loss of $9.8 million, or $0.72 per share, and adjusted EBITDA of $9.2 million in the second quarter of 2022.

Chief Executive Officer Anthony Gallegos commented, "ICD achieved significant progress towards its rig reactivation, rig margin and adjusted EBITDA goals during the third quarter of 2022. The Company achieved quarterly revenue per day and margin per day records during the quarter, buoyed by continued penetration of our 300 series rigs and our marketing strategy of patiently waiting to seek longer-term contracts. All of this drove sequential improvements in quarterly adjusted EBITDA of 35%.

Against a backdrop of greater general macroeconomic uncertainty, market conditions for the Company's services have continued to tighten as overall supply and demand fundamentals driven by historically low underinvestment over the past decade have outweighed general economic headwinds. During the quarter, we began to strategically sign longer-term contracts and have increased our quarter-end backlog by 87% compared to the second quarter. More importantly, our backlog extending into 2023 is priced at levels that we expect will generate revenue per day over 20% higher than our reported third quarter revenue per day levels and margin per day over 55% higher than third quarter levels. In addition, we still have the majority of our fleet on shorter-term contracts that will reprice during the fourth quarter of 2022 or the first quarter of 2023.

With this backdrop, we expect to see further sequential improvements in revenues and margin per day during the remainder of this year and into 2023. Our current expectations are that fourth quarter margin per day will exceed reported third quarter levels between 10% and 15%, and first quarter 2023 margin per day will exceed reported third quarter levels between 28% and 32%. Given pricing already imbedded in our 2023 backlog, we are excited about further opportunities for margin expansion beyond these periods.

Operationally, our rig reactivations remain on schedule and our 200-to-300-series conversion program has commenced with our first conversion in process. Our 19th rig mobilized for operations at the end of October and our 20th rig is scheduled for mobilization at the end of the fourth quarter. Both of these reactivations are pursuant to one-year contracts at leading edge dayrates where expected margins will earn back reactivation costs well within the contract terms. Looking forward into 2023, we are marketing our 21st rig for mobilization early-to-mid first quarter of 2023 and our 22nd rig for the end of the first quarter or early second quarter of 2023."

Quarterly Operational Results

In the third quarter of 2022, operating days increased sequentially by 4% compared to the second quarter of 2022. The Company's marketed fleet operated at 70% utilization and recorded 1,601 revenue days, compared to 1,268 revenue days in the third quarter of 2021, and 1,540 revenue days in the second quarter of 2022.

Operating revenues in the third quarter of 2022 totaled $49.1 million, compared to $24.0 million in the third quarter of 2021 and $42.3 million in the second quarter of 2022. Revenue per day in the third quarter of 2022 was $28,646, compared to $17,141 in the third quarter of 2021 and $24,875 in the second quarter of 2022. The sequential increase quarter over quarter in revenue per day was driven by higher dayrates on contract renewals and reactivated rigs.

Operating costs in the third quarter of 2022 totaled $31.4 million, compared to $20.1 million in the third quarter of 2021 and $28.9 million in second quarter of 2022. Fully burdened operating costs were $17,305 per day in the third quarter of 2022, compared to $13,685 in the third quarter of 2021 and $15,929 in the second quarter of 2022. Sequential increases in operating costs per day were driven primarily by higher labor costs associated with increases in field-level wages implemented during the latter part of the second quarter of 2022, partially offset by improved cost absorption.

Fully burdened rig operating margins in the third quarter of 2022 were $11,341 per day, compared to $3,456 per day in the third quarter of 2021 and $8,946 per day in the second quarter of 2022. The Company currently expects per day operating margins in the fourth quarter of 2022 to increase sequentially between 10% and 15% compared to the third quarter of 2022, driven primarily by favorable dayrate momentum as well as the reactivation of the Company's 19th and 20th rigs.

Selling, general and administrative expenses in the third quarter of 2022 were $7.0 million (including $1.7 million of non-cash compensation), compared to $4.1 million (including $0.8 million of non-cash compensation) in the third quarter of 2021 and $4.9 million (including $0.7 million of non-cash compensation) in the second quarter of 2022. Cash selling, general and administrative expenses increased sequentially during the quarter due to $0.3 million relating to a dispute settlement and higher incentive compensation accruals. Stock-based incentive compensation expense increased sequentially primarily due to full quarter amortization of out-of-the-money stock appreciation rights granted late in the second quarter of 2022.

During the quarter, the Company recorded interest expense of $8.1 million, including $2.0 million, or $0.14 per share, relating to non-cash amortization of debt discount and debt issuance costs. The Company has excluded this non-cash amortization when presenting adjusted net income/loss per share.

The Company recorded a tax benefit of $0.7 million, or $0.05 per share, during the third quarter of 2022, of which $0.1 million relates to cash taxes, attributable to state and local franchise taxes.

Drilling Operations Update

The Company exited the third quarter with 18 rigs operating. Overall, the Company's operating rig count averaged 17.4 rigs during the quarter. The Company's backlog of drilling contracts with original terms of six months or longer is $101.6 million. This backlog excludes rigs operating on short term pad-to-pad drilling contracts. Approximately 31% of this backlog is expected to be realized in 2022. The Company's 19th rig mobilized for drilling operations on a one-year contract in the Haynesville at the end of October 2022 and the Company's 20th rig is contracted and scheduled for reactivation late in the fourth quarter of 2022.

Capital Expenditures and Liquidity Update

Cash outlays for capital expenditures in the third quarter of 2022, net of asset sales and recoveries, were $9.4 million. This included $5.6 million associated with prior period deliveries.

As of September30,2022, the Company had cash on hand of $7.6 million and a revolving line of credit with availability of $19.9 million. The Company elected to pay in-kind interest due under its convertible notes as of September 30, 2022. Following this payment, $170.2 million principal amount was outstanding under the convertible notes.

Conference Call Details

A conference call for investors will be held today, November 1, 2022, at 11:00 a.m. Central Time (12:00 p.m. Eastern Time) to discuss the Company's third quarter 2022 results.

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 2879534. The replay will be available until November 8, 2022.

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 the Company's 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)

CONSOLIDATED BALANCE SHEETS

September30,2022

December31,2021

Assets

Cash and cash equivalents

$

7,566

$

4,140

Accounts receivable

33,967

22,211

Inventories

1,433

1,171

Prepaid expenses and other current assets

2,940

4,787

Total current assets

45,906

32,309

Property, plant and equipment, net

365,160

362,346

Other long-term assets, net

2,159

2,449

Total assets

$

413,225

$

397,104

Liabilities and Stockholders' Equity

Liabilities

Current portion of long-term debt (1)

$

3,302

$

4,464

Accounts payable

28,859

15,304

Accrued liabilities

13,162

11,245

Accrued interest

122

4,372

Current portion of merger consideration payable to an affiliate

2,902

Total current liabilities

45,445

38,287

Long-term debt (2)

136,756

141,740

Deferred income taxes, net

19,391

19,037

Other long-term liabilities

1,661

2,811

Total liabilities

203,253

201,875

Commitments and contingencies

Stockholders' equity

Common stock, $0.01 par value, 250,000,000 shares authorized; 13,698,851 and 10,287,931shares issued, respectively, and 13,617,005 and 10,206,085 shares outstanding, respectively

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Independence Contract Drilling, Inc. Reports Unaudited Financial ...

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Welcome to Sussex Royal, the source for factual information and details relating to the works and structure of Their Royal Highnesses The Duke and Duchess of Sussex. We are so pleased to have you as part of this community. In this section, you will find answers and clarification to questions that have come to the forefront in recent years. Many of you may be familiar with these policies, but for those of you who are not, we hope this page sheds some light on what can sometimes be misreported or quite confusing.

In 2020, The Duke and Duchess of Sussex have made the choice to transition into a new working model. As they step back as senior members of the Royal Family and no longer receive funding through the Sovereign Grant, they will become members of the Royal Family with financial independence which is something they look forward to. As The Duke and Duchess of Sussex prepare to make this change, the answers to the following questions aim to provide clarity on existing and future funding arrangements.

The Duke and Duchess of Sussex take great pride in their work and are committed to continuing their charitable endeavours as well as establishing new ones. In addition, they value the ability to earn a professional income, which in the current structure they are prohibited from doing. For this reason they have made the choice to become members of the Royal Family with financial independence. Their Royal Highnesses feel this new approach will enable them to continue to carry out their duties for Her Majesty The Queen, while having the future financial autonomy to work externally. While the contribution from The Sovereign Grant covers just five percent of costs for The Duke and Duchess and is specifically used for their official office expense, Their Royal Highnesses prefer to release this financial tie. More details on the specifics of the Sovereign Grant are outlined below.

The Sovereign Grant is the annual funding mechanism of the monarchy that covers the work of the Royal Family in support of HM The Queen including expenses to maintain official residences and workspaces. In this exchange, The Queen surrenders the revenue of the Crown Estate and in return, a portion of these public funds are granted to The Sovereign/The Queen for official expenditure. This is outlined in the 2018-19 Annual Report of the Sovereign Grant which is linked below. Please note, this structure replaced The Civil List in 2012. More details on this can be found on The United Kingdoms public sector information website: gov.uk

Yes, there is precedent for this structure and applies to other current members of the Royal Family who support the monarch and also have full time jobs external to their commitment to the monarchy.

No, under the current structure and financing arrangements, they are prohibited from earning any income in any form.

No, see above.

AsworkingmembersoftheRoyalFamily,The Duke and Duchess of Sussex remain dedicated to maximising Her Majestys legacy both in the UK and throughout the Commonwealth. They will continue to proudly do so by supporting their patronages and carrying out works for The Monarchy within the UK or abroad, as called upon.

Five percent of the funding for their official office was provided through the Sovereign Grant starting in 2019 (more details on Sovereign Grant below). Public fundinghasnever been used, nor would it ever be used for privateexpenditure by The Duke and Duchess of Sussex, who also do not receive any tax privileges.

Since the establishment of The Office of The Duke and Duchess of Sussex, 95 percent of the funding received for their Office expenditure is derived from income allocated by HRH The Prince of Wales, generated throughtheDuchyofCornwall.This provision has been in place since Prince William and Prince Harry first established their offices in support of The Queen, and is the responsibility of The Prince of Wales. This information continues to be available on The Duchy of Cornwall website.

As described above, the remaining five percent of funding for the Office of The Duke and Duchess of Sussex, covering costs associated with employing members of their official office, is received through the SovereignGrant. During the course of 2020, The Duke and Duchess of Sussex have made the choice to step back as senior members of the Royal Family and no longer receive funding through the Sovereign Grant, thereby making them members of the Royal Family with financial independence. This phased approach will take time to transition in consultation with other senior members of the Royal Family, but Their Royal Highnesses are hopeful that this change is in the best interest for all and look forward to carrying out their duties to the monarch as well as their charitable work with financial autonomy.

In the 2018-2019 fiscal report, Her Majesty The Queen surrendered approximately 329 million from the Crown Estate to the government. In exchange for this contribution, in return, the government granted the sovereign approximately 82 million to cover the costs for official expenditure. This constitutes the Sovereign Grant. Further detail as stated on gov.uk can be found below:

The Sovereign Grant Act 2011 came into effect on 1 April 2012. It sets the single grant supporting the monarchs official business, enabling The Queen to discharge her duties as Head of State. It meets the central staff costs and running expenses of Her Majestys official household such things as official receptions, investitures, garden parties and so on. It also covers maintenance of the Royal Palaces in England and the cost of travel to carry out royal engagements such as opening buildings and other royal visits.

In exchange for this public support, The Queen surrenders the revenue from The Crown Estate to the government which for 2017-18 was 329.4 million. The Sovereign Grant for 2019-20 is 82.4 million which is 25% of 329.4 million.

It was announced in November 2019 that the Sovereign Grant for 2020-21 will be 85.9 million. This is 25% of The Crown Estates revenue surplus in 2018-19 which was 343.5 million.

It is worth noting that an annual grant of approximately 30 million has been added to the above figure for the 10 year re-servicing plan of Buckingham Palace, bringing the sum to 85.9 million. The below graphic helps to further explain this exchange. For clarity, in the graphic sourced from The BBC, HM refers to Her Majesty.

The contribution from UK taxpayers towards the full overhead of the British Monarchy is equivalent to approximately 1 per head per year.

The British Royal Family generates an estimated 1.8 billion a year in tourism revenues for The United Kingdom.

The refurbishment of Frogmore Cottage, the Grade-2listedbuilding in Windsor Home Park was funded by Her Majesty The Queen through the Sovereign Grant, reflecting the Monarchys responsibility to maintain the upkeep of buildings with historical significance (see above). Expenses related to fixtures, furnishings, and fittings at the official residence which is owned by Her Majesty the Queen were funded privately by The Duke and Duchess of Sussex. As stated on The Official UK Government website: The occupied Royal Palaces are held in trust for the nation by The Queen as Sovereign. Their maintenance and upkeep is one of the expenses met by the government in return for the surrender by the Sovereign of the hereditary revenues of the Crown (mainly the profit from the Crown Estate). The Sovereign Grant will allow the Royal Household to set its own priorities and thus generate economies. The occupied Royal Palaces are: Buckingham Palace, St Jamess Palace, the residential and office areas of Kensington Palace, the Royal Mews and Royal Paddocks at Hampton Court, Windsor Castle and buildings in the Home and Great Parks at Windsor.

The Duke and Duchess of Sussex chose to move to Windsor for various reasons. Their previous residence of Nottingham Cottage on the grounds of Kensington Palace could not accommodate their growing family. The option of Apartment 1 in Kensington Palace was estimated to cost in excess of 4 million for mandated renovations including the removal of asbestos (see details above on the Monarchys responsibility for this upkeep). This residence would not have been available for them to occupy until the fourth quarter of 2020. As a result, Her Majesty The Queen offered The Duke and Duchess the use of Frogmore Cottage, which was already undergoing mandated renovations, and would be available to move in before the birth of their son. The refurbishment cost equated to 50 percent of the originally suggested property for their proposed official residence at Kensington Palace. It is for these reasons, The Duke and Duchess of Sussex chose Frogmore Cottage as their Official Residence.

Frogmore Cottage will continue to be the property of Her Majesty the Queen. The Duke and Duchess of Sussex will continue to use Frogmore Cottage with the permission of Her Majesty The Queen as their official residence as they continue to support the Monarchy, and so that their family will always have a place to call home in the United Kingdom.

All travel arrangements undertaken by The Duke and Duchess in their private time have always been and will continue to be paid for privately and not by UK taxpayers. With their transition to becoming members of the Royal Family with financial independence this will continue to be the case. Wherever possible and unless advised otherwise on security grounds, their logistical arrangements are undertaken via commercial air carriers, local trains and fuel-efficient vehicles, be it for official or personal travel.

The Duke and Duchess proudly carry out official overseas visits in support of Her Majesty The Queen at the request of the Foreign and Commonwealth Office (FCO), as is the case for all members of the Royal Family. The length and location of these tours are determined by the FCO and the Royal Visits Committee. All Official overseas visits are in support of Her Majestys Governments objectives and paid for by The Sovereign Grant as well as contributions from the host country, when appropriate.

The provision of armed security by The Metropolitan Police is mandated by the Home Office, a ministerial department of Her Majestys Government, responsible for security and law & order. As stated on gov.uk, No breakdown of security costs is available as disclosure of such information could compromise the integrity of these arrangements and affect the security of the individuals protected. It is long established policy not to comment upon the protective security arrangements and their related costs for members of the Royal Family or their residences.

More Information, please visit:

Royal Finances

The Duchy of Cornwall

The Official United Kingdom Public Sector Information Website

Read more:

Funding | The Official Website of The Duke & Duchess of Sussex

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(This article was originally published in NextIdea, our weekly newsletter on side hustles and pursuing financial independence. Sign up for it using the box below.)

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Purpose is the common denominator for the honorees of NextUp, NextAdvisors inaugural list of the 25 most influential new voices in money. NextUp is a collection of the online creators making the biggest impact in the world of personal finance. No matter what your money idea may be, theres something to learn from this inspiring list.

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Within the online financial world, audiences dont just want authority. They also want relatability. If you have a clear reason for creating a business and establishing a platform, customers want to hear about that and they want to hear about it directly from you.

As you scroll through the NextUp list, find the honorees who are most inspiring to you, and see what you can learn from their story and purpose. With an incredible group of people like this, we know youll connect with at least one of them.

Were popping the proverbial (and perhaps some real) champagne here at NextAdvisor to celebrate this launch. Join us in amplifying the new voices of money.

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