Independence Contract Drilling (Independence Contract Drilling) Debt-to-EBITDA

: -6.46 (As of Dec. 2023)

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Debt-to-EBITDA measures a company's ability to pay off its debt.

Independence Contract Drilling's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $2.2 Mil. Independence Contract Drilling's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $154.5 Mil. Independence Contract Drilling's annualized EBITDA for the quarter that ended in Dec. 2023 was $-24.3 Mil. Independence Contract Drilling's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was -6.46.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Independence Contract Drilling's Debt-to-EBITDA or its related term are showing as below:

ICD' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -123.32 Med: 3.9 Max: 24.78
Current: 3.94

During the past 12 years, the highest Debt-to-EBITDA Ratio of Independence Contract Drilling was 24.78. The lowest was -123.32. And the median was 3.90.

ICD's Debt-to-EBITDA is ranked worse than
75.14% of 716 companies
in the Oil & Gas industry
Industry Median: 1.735 vs ICD: 3.94

Independence Contract Drilling Debt-to-EBITDA Historical Data

The historical data trend for Independence Contract Drilling's Debt-to-EBITDA can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Independence Contract Drilling Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

-123.32

-3.82

24.78

-97.70

3.94

Independence Contract Drilling Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-EBITDA																2.32	2.13	2.59	3.61	-6.46

Competitive Comparison

For the Oil & Gas Drilling subindustry, Independence Contract Drilling's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Independence Contract Drilling Debt-to-EBITDA Distribution

For the Oil & Gas industry and Energy sector, Independence Contract Drilling's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Independence Contract Drilling's Debt-to-EBITDA falls into.

Independence Contract Drilling Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Independence Contract Drilling's Debt-to-EBITDA for the fiscal year that ended in Dec. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(2.16	+	154.549)	/	39.826
	=	3.93

Independence Contract Drilling's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(2.16	+	154.549)	/	-24.256
	=	-6.46

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Dec. 2023) EBITDA data.

Independence Contract Drilling (NYSE:ICD) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.

Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

Independence Contract Drilling Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Independence Contract Drilling's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.

Independence Contract Drilling (Independence Contract Drilling) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Independence Contract Drilling Inc (NYSE:ICD) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

N/A

Address

20475 State Highway 249, Suite 300, Houston, TX, USA, 77070

Website

https://www.icdrilling.com

Independence Contract Drilling Inc is engaged in providing land-based contract drilling services for oil and natural gas producers. The company constructs its own and operates a premium land rig fleet. It develops and assembles its ShaleDriller series rig which is used for the development of oil and gas properties. The company's customers for contract drilling services in the United States include oil and natural gas companies, independent oil and natural gas companies, as well as various small to mid-sized publicly traded and privately held oil and gas companies.

Executives

Brian Berman	director	20475 STATE HIGHWAY 249, SUITE 300, HOUSTON TX 77070
Msd Capital L P	10 percent owner	1 VANDERBILT AVENUE, 26TH FLOOR, NEW YORK NY 10017-5407
Msd Credit Opportunity Master Fund, L.p.	director, 10 percent owner	ONE VANDERBILT AVENUE, 26TH FLOOR, NEW YORK NY 10017
Msd Pcof Partners Lxxiii, Llc	director, 10 percent owner	ONE VANDERBILT AVENUE, 26TH FLOOR, NEW YORK NY 10017
Msd Private Credit Opportunity (non-eci) Fund, Llc	director, 10 percent owner	ONE VANDERBILT AVENUE, 26TH FLOOR, NEW YORK NY 10017
Michael S Dell	10 percent owner	C/O DELL INC., ONE DELL WAY, ROUND ROCK TX 78682-2244
Msd Energy Investments, L.p.	10 percent owner	ONE VANDERBILT AVENUE, 26TH FLOOR, NEW YORK NY 10017
Msd Partners, L.p.	director, 10 percent owner	ONE VANDERBILT AVENUE, 26TH FLOOR, NEW YORK NY 10017
William Monroe	10 percent owner	C/O HIGIER ALLEN & LAUTIN, P.C., 2711 N. HASKELL AVE., SUITE 2400, DALLAS TX 75204
James Minmier	director	777 N.W. 63RD ST., OKLAHOMA CITY OK 73116
Daniel F Mcnease	director	2800 POST OAK BLVD, STE 5450, HOUSTON TX 77056-6127
Barrett Robert J. Iv	director	20475 STATE HIGHWAY 249, SUITE 300, HOUSTON TX 77070
Vincent J Cebula	director	1301 AVENUE OF THE AMERICAS, 34 TH FLOOR, NEW YORK NY 10019
Christopher Gleysteen	director	ONE VANDERBILT AVENUE, 26TH FLOOR, NEW YORK NY 10017
Scott A. Keller	officer: SVP - SALES AND MARKETING	20475 SH 249, SUITE 300, HOUSTON TX 77070