Independence Contract Drilling, Inc. (NYSE:ICD) Q1 2024 Earnings Call Transcript

Anthony Gallegos: Yes. I think it is showing, Don. Sometimes it shows in utilization, right, where you might win an opportunity that you otherwise might not have won, or you may be able to displace someone else’s rig all things being equal because you can perform better. I do think you are seeing that in dayrate revenues, the average dayrate revenues at the company. It’s not just that we have to necessarily compete on price. Certainly, the market is going to determine a certain baseline in regards to the dayrate, but we have to be able to demonstrate that we can add value 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 I said, days on well, days on pad. And I think you see that reflected today in ICD’s utilization. And 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.

Don Crist: Okay. But none of your contracts are structured today, where you have a bonus structure or anything like that where if you meet certain thresholds, you get additional capital, right?

Anthony Gallegos: That’s correct, Don. We are — we’ve had those discussions in the past. We’re open to them. And I would expect at some point, we would be able to have that type of structure, we’re certainly open to it today.

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

Anthony Gallegos: 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. I would also like to thank our customers for their business and would like to say thank you to you for taking the time to listen to our earnings call. With that, we’ll sign off from here. Thank you.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.