Independence Contract Drilling, Inc. (NYSE:ICD) Q4 2022 Earnings Call Transcript

Philip Choyce: So, that the fee €“ that period begins in September of 2024, so early, and then there is a make-whole under the terms of that. So, it’s pretty expensive to do it at that point in time. So, we would have to look at what’s available to do that at that point in time and would it make economic sense. As we move closer to maturity, they gets cheaper. So, it’s hard to say now, what opportunities will lie ahead. And what alternatives there will be until we see what the market looks like, and also depends on what the note holders are interested in doing as well. But as far as the terms of the indenture, it’s begin September of €˜24. And that’s when the window opens up. But there is the make-whole. So, it’s pretty expensive at September, and it gets cheaper as we move closer to maturity.

Anthony Gallegos: And Jeff, I would just add, I mean I am so glad that we are able to give Philip a headache, thinking about these kinds of things now. It’s a function of just everything that we have worked so hard to accomplish over the last couple of years. We had to get to an operating scale, one where we can survive the bumps and bruises that a cyclical industry like ours presents. But more importantly, so that we had operating scale to be able to, like seriously think about these kinds of things and have these kinds of discussions. I hope what everybody has taken away from this call is that this is going to be a pretty good year for ICD, and maybe not the year that we all thought three months or four months ago. But when you think about making sure, we are making progress down the pathway of being able to accomplish our long-term goals this 2023 in spite of any softness coming out of the Haynesville is still going to be a pretty good year towards making that progress.

Jeff Robertson: Looking at Slide 27, the de-leveraging profile just in terms of the leverage ratio, as you transition rigs, it seems like a pretty strong testament to the strength of the business?

Anthony Gallegos: Yes, sir. Thank you. I would agree.

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

Anthony Gallegos: Well, thank you MJ. Look, I hope as everybody has heard here, there are so many good things going on here at ICD. I want to make sure that I say thank you to all of the team members here, especially those around the rotary tables where the work gets done. Obviously, we are very, very excited about 2023, looking forward to updating you on our progress when we report our first quarter results here, pretty soon. So, until then, we want to wish you all safety and success in your endeavors and we will sign-off now. Thank you.

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