Research from Water Tower Research, Water Tower Research

Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Research from Water Tower Research

Equity Research Firm

Equity Bottom-Up

Independence Contract Drilling / Equity Bottom-Up

<div><div><div><div><ul style="list-style-type: disc;"><li><p>Despite turbulence affecting the 2Q23 and 3Q23 oilfield services markets, demand for ICD’s fleet of pad-optimal super- spec drilling rigs supports management’s ultimate goal of deleveraging the balance sheet and shifting value to equity owners.</p></li><li><p>ICD generated $18.7 million of adjusted EBITDA in 2Q23 from 15.0 average rigs earning revenue.</p></li><li><p>Margin per day averaged $15,462, landing in the high end of management’s $15,000-15,500 guidance range.</p></li></ul></div></div></div></div>

Despite turbulence affecting the 2Q23 and 3Q23 oilfield services markets, demand for ICD’s fleet of pad-optimal super- spec drilling rigs supports management’s ultimate goal of deleveraging the balance sheet and shifting value to equity owners.ICD generated $18.7 million of adjusted EBITDA in 2Q23 from 15.0 average rigs earning revenue.Margin per day averaged $15,462, landing in the high end of management’s $15,000-15,500 guidance range.

Independence Contract Drilling, Inc. - Premium Rig Fleet Supports Deleveraging Goal