# EDGAR Filing Document

**Accession Number:** 0001537028
**File Stem:** 0000950170-23-005690
**Filing Date:** 2023-3
**Character Count:** 79029
**Document Hash:** 3fb56199f5d0e090fa0e3c80123d048f
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000950170-23-005690.hdr.sgml**: 20230302

**ACCESSION NUMBER**: 0000950170-23-005690

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 56

**CONFORMED PERIOD OF REPORT**: 20230302

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230302

**DATE AS OF CHANGE**: 20230302

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Independence Contract Drilling, Inc.
- **CENTRAL INDEX KEY:** 0001537028
- **STANDARD INDUSTRIAL CLASSIFICATION:** DRILLING OIL & GAS WELLS [1381]
- **IRS NUMBER:** 371653648
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-36590
- **FILM NUMBER:** 23696330

**BUSINESS ADDRESS:**
- **STREET 1:** 20475 STATE HIGHWAY 249
- **STREET 2:** SUITE 300
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77070
- **BUSINESS PHONE:** 2815981230

**MAIL ADDRESS:**
- **STREET 1:** 20475 STATE HIGHWAY 249
- **STREET 2:** SUITE 300
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77070

?xml version="1.0" encoding="ASCII"? 8-K

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549**

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**FORM** 8-K

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**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported):** March 02, 2023<br>

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Independence Contract Drilling, Inc.

**(Exact name of Registrant as Specified in Its Charter)**

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| | | |
|:---|:---|:---|
| Delaware | 001-36590 | 37-1653648 |
| **(State or Other Jurisdiction<br>of Incorporation)** | **(Commission File Number)** | **(IRS Employer<br>Identification No.)** |
| 20475 State Highway 249<br>Suite 300 |  |  |
| Houston**,** Texas |  | 77070 |
| **(Address of Principal Executive Offices)** |  | **(Zip Code)** |

---

**Registrant's Telephone Number, Including Area Code:** 281 598-1230<br>

**(Former Name or Former Address, if Changed Since Last Report)**

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

**Securities registered pursuant to Section 12(b) of the Act:**

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| | |
|:---|:---|
| **<br>Title of each class** | **<br>Name of each exchange on which registered** |
| Common Stock, $0.01 par value per share<br> ICD | The New York Stock Exchange |

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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**Item 2.02 Results of Operations and Financial Condition.**

On March 2, 2023, Independence Contract Drilling, Inc. (the "Company" or "ICD") issued a press release reporting financial results for the fourth quarter and year ended December 31, 2022. A copy of the press release is being furnished as Exhibit 99.1 hereto and is incorporated herein by reference.

The information furnished pursuant to Item 2.02, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), is not subject to the liabilities of that section and is not deemed incorporated by reference in any filing of the Company under the Exchange Act or the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.

**Item 7.01 Regulation FD Disclosure.**

On March 2, 2023, Independence Contract Drilling, Inc. published a new March 2023 Investor Presentation, which is attached as Exhibit 99.2 to this Current Report on Form 8-K, which is incorporated herein by reference.

**Item 9.01 Financial Statements and Exhibits.**

(d) Exhibits

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| | |
|:---|:---|
| **<u>Exhibit No.</u>** | **<u>Description</u>** |
| 99.1 | [<u>Press Release dated March 2, 2023</u>](icd-ex99_1.htm) |
| 99.2 | [<u>Investor Presentation dated March 2, 2023</u>](icd-ex99_2.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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| | | | |
|:---|:---|:---|:---|
|  |  |  | **Independence Contract Drilling, Inc.** |
| Date: | March 2, 2023 | By:  | /s/ Philip A. Choyce |
|  |  |  | Name: Philip A. Choyce<br>Title: Executive Vice President, Chief Financial Officer, Treasurer and Secretary |

---

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## Ex-99

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Exhibit 99.1**

**Independence Contract Drilling, Inc. Reports Financial Results for the Fourth Quarter and Year Ended December 31, 2022**

HOUSTON, March 2, 2023 /PRNewswire/ -- Independence Contract Drilling, Inc. (the "Company" or "ICD") (NYSE: ICD) today reported financial results for the three and twelve months ended December 31, 2022.

**<u>Fourth quarter 2022 Highlights</u>**

* Net income, as defined below, of $3.5 million, or $0.20 per diluted share.

* Adjusted net loss, as defined below, of $0.1 million, or $0.01 per share.

* Adjusted EBITDA, as defined below, of $18.5 million, representing an approximate 48% sequential improvement from the third quarter of 2022.

* Adjusted net debt, as defined below, of $182.5 million.

* 18.5 average rigs working during the quarter.

* Fully burdened margin per day of $14,517 representing an approximate 28% sequential improvement from the third quarter of 2022.

In the fourth quarter of 2022, the Company reported revenues of $60.3 million, net income of $3.5 million, or $0.20 per diluted share, adjusted net loss (defined below) of $0.1 million, or $0.01 per share, and adjusted EBITDA (defined below) of $18.5 million. These results compare to revenues of $28.6 million, a net loss of $31.5 million, or $3.23 per share, adjusted net loss of $13.2 million, or $1.35 per share, and adjusted EBITDA of $1.5 million in the fourth quarter of 2021, and revenues of $49.1 million, a net loss of $7.2 million, or $0.53 per share, an adjusted net loss of $4.8 million, or $0.35 per share, and adjusted EBITDA of $12.5 million in the third quarter of 2022.

For the year ended December 31, 2022, the Company reported revenues of $186.7 million, a net loss of $65.3 million, or $5.01 per share, an adjusted net loss of $25.7 million, or $1.98 per share, and adjusted EBITDA of $43.8 million. This compares to revenues of $88.0 million, a net loss of $66.7 million, or $8.89 per share, an adjusted net loss of $57.9 million, or $7.72 per share, and adjusted EBITDA loss of $0.3 million for the year ended December 31, 2021.

Chief Executive Officer Anthony Gallegos commented, "Fiscal 2022 was a transformative year for ICD and one in which we attained record levels of quarterly revenues, margins and EBITDA. Financially, we have closed the historic margin- per-day gap between ICD and our larger competitors. Operationally, we have transformed our fleet with the penetration of our 300 series rigs and commencement of our 200-to-300 series rig conversion program. Despite the operational challenges associated with achieving this growth while navigating an historically tight labor market, we maintained operational integrity and achieved a safety record in 2022 well below U.S. land drilling averages.

The overall market for pad optimal super spec rigs remains strong with greater than 90% utilization of this class of rig. However, while oil directed drilling activity in the Permian remains robust, recent declines in natural gas prices as well as take-away constraints have created softness in the natural-gas-driven Haynesville market. Against a backdrop of a shrinking Haynesville rig count, we have begun to transition rigs from the Haynesville to our customer base in the Permian Basin. Our first rig moved in late February, and we expect additional relocations to the Permian through the summer of 2023. Our 21st rig is scheduled to reactivate and begin operations during the second quarter of 2023 in the Permian Basin. However, in light of the recent shift in operational focus towards transitioning rigs from our Haynesville operation to the Permian Basin, we intend to postpone reactivation of our 22nd rig and will re-evaluate additional reactivation opportunities once our planned rig relocations are complete.

With this backdrop, as our pace of rig reactivations temporarily slows, progress towards our free cash flow and net debt reduction targets will accelerate as cash flow previously earmarked for rig reactivations will begin accumulating on our balance sheet, with a goal to be below 2x levered as we exit 2023 on a net debt basis. Our 2023 capital expenditure budget is currently set at $30.4 million, net of disposals. We also expect to see further sequential improvements in revenues and margin per day during the first quarter of 2023. Our current expectations are that first quarter margin per day will exceed reported fourth quarter levels between 3% and 7%, and we are excited about further opportunities for margin expansion beyond these levels once rig transitions to the Permian are complete."

**<u>Quarterly Operational Results</u>**

In the fourth quarter of 2022, operating days increased sequentially by 6% compared to the third quarter of 2022. The Company's marketed fleet operated at 71% utilization and recorded 1,704 revenue days, compared to 1,378 revenue days in the fourth quarter of 2021, and 1,601 revenue days in the third quarter of 2022.

Operating revenues in the fourth quarter of 2022 totaled $60.3 million, compared to $28.6 million in the fourth quarter of 2021 and $49.1 million in the third quarter of 2022. Revenue per day in the fourth quarter of 2022 was $32,778, compared to $19,042 in the fourth quarter of 2021 and $28,646 in the third 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 fourth quarter of 2022 totaled $36.0 million, compared to $24.0 million in the fourth quarter of 2021 and $31.4 million in third quarter of 2022. Fully burdened operating costs were $18,261 per day in the fourth quarter of 2022, compared to $15,504 in the fourth quarter of 2021 and $17,305 in the third quarter of 2022. Sequential increases in operating costs per day were driven primarily by higher labor costs associated with increases in field-level incentive compensation.

Fully burdened rig operating margins in the fourth quarter of 2022 were $14,517 per day, compared to $3,538 per day in the fourth quarter of 2021 and $11,341 per day in the third quarter of 2022. The Company currently expects per day operating margins in the first quarter of 2023 to increase sequentially between 3% and 7% compared to the fourth quarter of 2022, driven primarily by favorable dayrate momentum on reactivated rigs and contract repricing.

Selling, general and administrative expenses in the fourth quarter of 2022 were $7.7 million (including $1.9 million of non-cash compensation), compared to $3.9 million (including $0.8 million of non-cash compensation) in the fourth quarter of 2021 and $7.0 million (including $1.7 million of non-cash compensation) in the third quarter of 2022. Cash selling, general and administrative expenses increased sequentially during the quarter due to higher incentive compensation accruals. Stock-based incentive compensation expense increased due to variable accounting tied to period end stock prices.

During the fourth quarter of 2022, the Company recorded interest expense of $8.6 million, including $2.4 million, or $0.18 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.

The Company recorded a tax benefit of $7.0 million, or $0.51 per share, during the fourth quarter of 2022. This included a non-cash benefit of $6.8 million, or $0.50 per share, related to deductibility of Convertible Notes interest. This non-cash benefit was excluded when presenting adjusted net income/loss.

**<u>Drilling Operations Update</u>**

The Company exited the fourth quarter with 20 rigs operating. Overall, the Company's operating rig count averaged 18.5 rigs during the quarter. The Company's backlog of drilling contracts with original terms of six months or longer is $79.1 million. This backlog excludes rigs operating on short term pad-to-pad drilling contracts. All of this backlog is expected to be realized in 2023.

**<u>Capital Expenditures and Liquidity Update</u>**

Cash outlays for capital expenditures in the fourth quarter of 2022, net of asset sales and recoveries, were $18.8 million. This included $13.5 million associated with prior period deliveries.

As of December 31, 2022, the Company had cash on hand of $5.3 million and a revolving line of credit with availability of $21.3 million. The Company reported adjusted net debt as of December 31, 2022 of $182.5 million, consisting of the full amount of the outstanding Convertible Notes and outstanding borrowings under the Company's revolving line of credit. Adjusted net debt also includes $5.8 million of accrued interest at year-end under the Company's Convertible Notes that the Company has elected to pay in-kind when due on March 31, 2023.

**<u>Conference Call Details</u>**

A conference call for investors will be held today, March 2, 2023, at 11:00 a.m. Central Time (12:00 p.m. Eastern Time) to discuss the Company's fourth quarter and year end 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 5187801. The replay will be available until March 9, 2023.

Interested parties may also listen to a simultaneous webcast of the conference call by logging onto the Company's website at www.icdrilling.com in the Investor Relations section. A replay of the webcast will also be available for approximately 30 days following the call.

**<u>About Independence Contract Drilling, Inc.</u>**

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 www.icdrilling.com.

**<u>Forward-Looking Statements</u>**

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.

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| | | |
|:---|:---|:---|
| **INDEPENDENCE CONTRACT DRILLING, INC.** | **INDEPENDENCE CONTRACT DRILLING, INC.** | **INDEPENDENCE CONTRACT DRILLING, INC.** |
| **Unaudited** | **Unaudited** | **Unaudited** |
| **(in thousands, except par value and share data**) | **(in thousands, except par value and share data**) | **(in thousands, except par value and share data**) |
| **CONSOLIDATED BALANCE SHEETS** | **CONSOLIDATED BALANCE SHEETS** | **CONSOLIDATED BALANCE SHEETS** |
|  | **December 31, 2022** | **December 31, 2021** |
| **Assets** |  |  |
| Cash and cash equivalents | $5326 | $4140 |
| Accounts receivable | 39775 | 22211 |
| Inventories | 1508 | 1171 |
| Assets held for sale | 325 |  |
| Prepaid expenses and other current assets | 4736 | 4787 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 51670 | 32309 |
| Property, plant and equipment, net | 376084 | 362346 |
| Other long-term assets, net | 1960 | 2449 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $429714 | $397104 |
| **Liabilities and Stockholders' Equity** |  |  |
| Liabilities |  |  |
| &nbsp;&nbsp;Current portion of long-term debt (1) | $2485 | $4464 |
| &nbsp;&nbsp;Accounts payable | 31946 | 15304 |
| &nbsp;&nbsp;Accrued liabilities | 17608 | 15617 |
| &nbsp;&nbsp;Merger consideration payable to an affiliate |  | 2902 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 52039 | 38287 |
| &nbsp;&nbsp;Long-term debt (2) | 143223 | 141740 |
| &nbsp;&nbsp;Deferred income taxes, net | 12266 | 19037 |
| &nbsp;&nbsp;Other long-term liabilities | 7474 | 2811 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 215002 | 201875 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commitments and contingencies |  |  |
| Stockholders' equity |  |  |
| &nbsp;&nbsp;Common stock, $0.01 par value, 250,000,000 shares authorized; 13,698,851 and 10,287,931 shares issued, respectively, and 13,613,759 and 10,206,085 shares outstanding, respectively | 136 | 102 |
| &nbsp;&nbsp;Additional paid-in capital | 617606 | 532826 |
| &nbsp;&nbsp;Accumulated deficit | (399097) | (333776) |
| &nbsp;&nbsp;Treasury stock, at cost, 85,092 shares and 81,846 shares, respectively | (3933) | (3923) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 214712 | 195229 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $429714 | $397104 |

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| | |
|:---|:---|
| _____________________ | _____________________ |
| (1) | As of December 31, 2022 and December 31, 2021, current portion of long-term debt includes $2.5 million and $4.5 million, respectively, of finance lease obligations.  |
| (2) | As of December 31, 2022 and December 31, 2021, long-term debt includes $1.6 million and $1.3 million, respectively, of long-term finance lease obligations.  |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **INDEPENDENCE CONTRACT DRILLING, INC.** | **INDEPENDENCE CONTRACT DRILLING, INC.** | **INDEPENDENCE CONTRACT DRILLING, INC.** | **INDEPENDENCE CONTRACT DRILLING, INC.** | **INDEPENDENCE CONTRACT DRILLING, INC.** | **INDEPENDENCE CONTRACT DRILLING, INC.** |
| **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** |
| **(in thousands, except par value and share data**) | **(in thousands, except par value and share data**) | **(in thousands, except par value and share data**) | **(in thousands, except par value and share data**) | **(in thousands, except par value and share data**) | **(in thousands, except par value and share data**) |
| **CONSOLIDATED STATEMENTS OF OPERATIONS** | **CONSOLIDATED STATEMENTS OF OPERATIONS** | **CONSOLIDATED STATEMENTS OF OPERATIONS** | **CONSOLIDATED STATEMENTS OF OPERATIONS** | **CONSOLIDATED STATEMENTS OF OPERATIONS** | **CONSOLIDATED STATEMENTS OF OPERATIONS** |
|  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Year Ended**  | **Year Ended**  |
|  | **December 31,**  | **December 31,**  | **September 30,**  | **December 31,**  | **December 31,**  |
|  | **2022** | **2021** | **2022** | **2022** | **2021** |
| Revenues | $60259 | $28561 | $49147 | $186710 | $87955 |
| Costs and expenses |  |  |  |  |  |
| &nbsp;&nbsp;Operating costs | 35950 | 24047 | 31379 | 123399 | 75751 |
| &nbsp;&nbsp;Selling, general and administrative | 7714 | 3870 | 7007 | 24809 | 15699 |
| &nbsp;&nbsp;Depreciation and amortization | 10724 | 9671 | 10120 | 40443 | 38915 |
| &nbsp;&nbsp;Asset impairment, net | 350 | 25 |  | 350 | 800 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss (gain) on disposition of assets, net | 469 | (63) | 433 | (196) | (245) |
| &nbsp;&nbsp;Other expense |  | 150 |  |  | 150 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total costs and expenses | 55207 | 37700 | 48939 | 188805 | 131070 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating income (loss) | 5052 | (9139) | 208 | (2095) | (43115) |
| Interest expense | (8570) | (3899) | (8098) | (29575) | (15193) |
| (Loss) gain on extinguishment of debt |  |  |  | (46347) | 10128 |
| Change in fair value of embedded derivative liability |  |  |  | (4265) |  |
| Realized gain on extinguishment of derivative |  |  |  | 10765 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss before income taxes | (3518) | (13038) | (7890) | (71517) | (48180) |
| Income tax (benefit) expense | (6979) | 18446 | (696) | (6196) | 18532 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) | $3461 | $(31484) | $(7194) | $(65321) | $(66712) |
| Income (loss) per share: |  |  |  |  |  |
| &nbsp;&nbsp;Basic | $0.25 | $(3.23) | $(0.53) | $(5.01) | $(8.89) |
| &nbsp;&nbsp;Diluted | $0.20 | $(3.23) | $(0.53) | $(5.01) | $(8.89) |
| Weighted average number of common shares outstanding: |  |  |  |  |  |
| &nbsp;&nbsp;Basic | 13617 | 9743 | 13590 | 13026 | 7507 |
| &nbsp;&nbsp;Diluted | 51880 | 9743 | 13590 | 13026 | 7507 |

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| | | |
|:---|:---|:---|
| **INDEPENDENCE CONTRACT DRILLING, INC.** | **INDEPENDENCE CONTRACT DRILLING, INC.** | **INDEPENDENCE CONTRACT DRILLING, INC.** |
| **Unaudited** | **Unaudited** | **Unaudited** |
| **(in thousands**) | **(in thousands**) | **(in thousands**) |
| **CONSOLIDATED STATEMENTS OF CASH FLOWS** | **CONSOLIDATED STATEMENTS OF CASH FLOWS** | **CONSOLIDATED STATEMENTS OF CASH FLOWS** |
|  | **Year Ended December 31,**  | **Year Ended December 31,**  |
|  | **2022** | **2021** |
| **Cash flows from operating activities** |  |  |
| Net loss | $(65321) | $(66712) |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities |  |  |
| &nbsp;&nbsp;Depreciation and amortization | 40443 | 38915 |
| &nbsp;&nbsp;Asset impairment, net | 350 | 800 |
| &nbsp;&nbsp;Stock-based compensation | 4644 | 2295 |
| &nbsp;&nbsp;Gain on disposition of assets, net | (196) | (245) |
| &nbsp;&nbsp;Non-cash interest expense | 15859 | 5883 |
| &nbsp;&nbsp;Non-cash loss (gain) on extinguishment of debt | 46347 | (10128) |
| &nbsp;&nbsp;Amortization of deferred financing costs | 346 | 1115 |
| &nbsp;&nbsp;Amortization of Convertible Notes issuance costs and debt discount | 6714 |  |
| &nbsp;&nbsp;Change in fair value of embedded derivative liability | 4265 |  |
| &nbsp;&nbsp;Gain on extinguishment of derivative | (10765) |  |
| &nbsp;&nbsp;Deferred income taxes | (6771) | 18532 |
| &nbsp;&nbsp;Bad debt expense (recovery) | 256 | (52) |
| &nbsp;&nbsp;Changes in operating assets and liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (17820) | (12136) |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | (365) | (133) |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | 266 | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | 10325 | 12230 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) operating activities | 28577 | (9579) |
| **Cash flows from investing activities** |  |  |
| Purchases of property, plant and equipment | (43047) | (16415) |
| Proceeds from the sale of assets | 4552 | 2037 |
| Proceeds from insurance claims | 191 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (38304) | (14378) |
| **Cash flows from financing activities** |  |  |
| Proceeds from issuance of convertible debt | 157500 |  |
| Repayments under Term Loan Facility | (139076) |  |
| Borrowings under Revolving ABL Credit Facility | 5589 | 6309 |
| Repayments under Revolving ABL Credit Facility | (78) | (17) |
| Payment of merger consideration | (2902) |  |
| Proceeds from issuance of common stock through at-the-market facility, net of issuance costs | 3038 | 8969 |
| Proceeds from issuance of common stock under purchase agreement |  | 4239 |
| Purchase of treasury stock | (10) | (10) |
| RSUs withheld for taxes | (10) | (14) |
| Convertible debt issuance costs | (6986) |  |
| Financing costs paid under Term Loan Facility |  | (64) |
| Financing costs paid under Revolving ABL Credit Facility | (341) |  |
| Payments for finance lease obligations | (5811) | (3594) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 10913 | 15818 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) in cash and cash equivalents | 1186 | (8139) |
| **Cash and cash equivalents** |  |  |
| Beginning of year | 4140 | 12279 |
| End of year | $5326 | $4140 |

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| | | |
|:---|:---|:---|
|  | **Year Ended December 31,**  | **Year Ended December 31,**  |
|  | **2022** | **2021** |
| **Supplemental disclosure of cash flow information** |  |  |
| Cash paid during the period for interest | $5084 | $6918 |
| **Supplemental disclosure of non-cash investing and financing activities** |  |  |
| Change in property, plant and equipment purchases in accounts payable | $11686 | $3564 |
| Additions to property, plant and equipment through finance leases | $4440 | $1503 |
| Extinguishment of finance lease obligations from sale of assets classified as finance leases | $(281) | $(65) |
| Transfer of assets from held and used to held for sale | $(325) | $(1082) |
| Gain on extinguishment of debt | $— | $10000 |
| Initial embedded derivative liability upon issuance of Convertible Notes | $75733 | $— |
| Extinguishment of embedded derivative liability | $(69232) | $— |
| Shares issued for structuring fee | $9163 | $— |

---

The following table provides various financial and operational data for the Company's operations for the three months ended December 31, 2022 and 2021 and September 30, 2022 and the year ended December 31, 2022 and 2021. This information contains non-GAAP financial measures of the Company's operating performance. The Company believes this non-GAAP information is useful because it provides a means to evaluate the operating performance of the Company on an ongoing basis using criteria that are used by the Company's management. Additionally, it highlights operating trends and aids analytical comparisons. However, this information has limitations and should not be used as an alternative to operating income (loss) or cash flow performance measures determined in accordance with GAAP, as this information excludes certain costs that may affect the Company's operating performance in future periods.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **OTHER FINANCIAL & OPERATING DATA** | **OTHER FINANCIAL & OPERATING DATA** | **OTHER FINANCIAL & OPERATING DATA** | **OTHER FINANCIAL & OPERATING DATA** | **OTHER FINANCIAL & OPERATING DATA** | **OTHER FINANCIAL & OPERATING DATA** |
| **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** |
|  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Year Ended**  | **Year Ended**  |
|  | **December 31,**  | **December 31,**  | **September 30,**  | **December 31,**  | **December 31,**  |
|  | **2022** | **2021** | **2022** | **2022** | **2021** |
| Number of marketed rigs end of period (1) | 26 | 24 | 26 | 26 | 24 |
| Rig operating days (2) | 1704 | 1378 | 1601 | 6308 | 4651 |
| Average number of operating rigs (3) | 18.5 | 15.0 | 17.4 | 17.3 | 12.7 |
| Rig utilization (4) | 71% | 62% | 70% | 70% | 53% |
| Average revenue per operating day (5) | $32778 | $19042 | $28646 | $27258 | $17224 |
| Average cost per operating day (6) | $18261 | $15504 | $17305 | $16940 | $13943 |
| Average rig margin per operating day | $14517 | $3538 | $11341 | $10318 | $3281 |

---

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| | |
|:---|:---|
| ______________________ | ______________________ |
| (1) | Marketed rigs exclude idle rigs that will not be reactivated unless market conditions materially improve. |
| (2) | Rig operating days represent the number of days the Company's rigs are earning revenue under a contract during the period, including days that standby revenue is earned. |
| (3) | Average number of operating rigs is calculated by dividing the total number of rig operating days in the period by the total number of calendar days in the period. |
| (4) | Rig utilization is calculated as rig operating days divided by the total number of days the Company's marketed drilling rigs are available during the applicable period. |
| (5) | Average revenue per operating day represents total contract drilling revenues earned during the period divided by rig operating days in the period. Excluded in calculating average revenue per operating day are revenues associated with the reimbursement of out-of-pocket costs paid by customers of $4.4 million, $2.3 million and $3.3 million during the three months ended December 31, 2022 and 2021, and September 30, 2022, respectively, and $14.8 million and $7.8 million during the year ended December 31, 2022 and 2021, respectively. |
| (6) | Average cost per operating day represents operating costs incurred during the period divided by rig operating days in the period. The following costs are excluded in calculating average cost per operating day: (i) out-of-pocket costs paid by customers of $4.4 million, $2.3 million and $3.3 million during the three months ended December 31, 2022 and 2021, and September 30, 2022, respectively, and $14.8 million and $7.8 million during the year ended December 31, 2022 and 2021, respectively; (ii) overhead costs of $0.4 million, $0.4 million and $0.4 million during the three months ended December 31, 2022 and 2021, and September 30, 2022, respectively, and $1.8 million and $1.6 million during the year ended December 31, 2022 and 2021, respectively; and (iii) rig reactivation costs, inclusive of new crew training costs, of zero and $1.4 million during the year ended December 31, 2022 and 2021, respectively. There were no rig reactivation costs for the three months ended December 31, 2022 and 2021 or September 30, 2022. |

---

**Non-GAAP Financial Measures**

Adjusted net debt, adjusted net (loss) income, EBITDA and adjusted EBITDA are supplemental non-GAAP financial measures that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. In addition, adjusted EBITDA is consistent with how EBITDA is calculated under the Company's credit facility for purposes of determining the Company's compliance with various financial covenants. The Company defines "adjusted net debt" as long-term notes (excluding long-term capital leases) less cash. The Company defines "adjusted net (loss) income" as net (loss) income before: asset impairment, net; gain or loss on disposition of assets, net; amortization of debt discount; amortization of issuance costs; gain or loss on extinguishment of debt; change in fair value of embedded derivative liability, gain on extinguishment of derivative and other adjustments. The Company defines "EBITDA" as earnings (or loss) before interest, taxes, depreciation and amortization, and asset impairment, net and the Company defines "adjusted EBITDA" as EBITDA before stock-based compensation, gain or loss on disposition of assets, gain or loss on extinguishment of debt, gain on extinguishment of derivative and other non-recurring items added back to, or subtracted from, net income for purposes of calculating EBITDA under the Company's credit facilities. Neither adjusted net (loss) income, EBITDA or adjusted EBITDA is a measure of net income as determined by U.S. generally accepted accounting principles ("GAAP").

Management believes adjusted net debt, adjusted net (loss) income, EBITDA and adjusted EBITDA are useful because they allow the Company's stockholders to more effectively evaluate the Company's operating performance and compliance with various financial covenants under the Company's credit facility and compare the results of the Company's operations from period to period and against the Company's peers without regard to the Company's financing methods or capital structure or non-recurring, non-cash transactions. The Company excludes the items listed above from net income (loss) in calculating adjusted net (loss) income, EBITDA and adjusted EBITDA because these amounts can vary substantially from company to company within the Company's industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. None of adjusted net (loss) income, EBITDA or adjusted EBITDA should be considered an alternative to, or more meaningful than, net income (loss), the most closely comparable financial measure calculated in accordance with GAAP, or as an indicator of the Company's operating performance or liquidity. Certain items excluded from adjusted net (loss) income, EBITDA and adjusted EBITDA are significant components in understanding and assessing a company's financial performance, such as a company's return on assets, cost of capital and tax structure. The Company's presentation of adjusted net debt, adjusted net (loss) income, EBITDA and adjusted EBITDA should not be construed as an inference that the Company's results will be unaffected by unusual or non-recurring items. The Company's computations of adjusted net debt, adjusted net (loss) income, EBITDA and adjusted EBITDA may not be comparable to other similarly titled measures of other companies.

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| | |
|:---|:---|
| **Calculation of Adjusted Net Debt:** |  |
| (in thousands) | **December 31, 2022** |
| &nbsp;&nbsp;&nbsp;&nbsp;Convertible Notes | $170166 |
| &nbsp;&nbsp;&nbsp;&nbsp;Revolving ABL Credit Facility | 11811 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of additional Convertible Notes for PIK interest due on March 31, 2023 | 5842 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Cash | (5326) |
| **Adjusted net debt** | $182493 |

---

---

| | |
|:---|:---|
| **Reconciliation of Adjusted Net Debt to Reported Long-Term Debt:** |  |
| (in thousands) | **December 31, 2022** |
| Adjusted net debt | $182493 |
| Add back: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash | 5326 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term portion of finance lease obligations | 1599 |
| Less: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt discount, net of amortization | (32906) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred issuance costs, net of amortization | (7447) |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of additional Convertible Notes for PIK interest due on March 31, 2023 | (5842) |
| **Total reported long-term debt** | $143223 |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Reconciliation of Net Income (Loss) to Adjusted Net Loss:** | **Reconciliation of Net Income (Loss) to Adjusted Net Loss:** | **Reconciliation of Net Income (Loss) to Adjusted Net Loss:** | **Reconciliation of Net Income (Loss) to Adjusted Net Loss:** | **Reconciliation of Net Income (Loss) to Adjusted Net Loss:** | **Reconciliation of Net Income (Loss) to Adjusted Net Loss:** | **Reconciliation of Net Income (Loss) to Adjusted Net Loss:** | **Reconciliation of Net Income (Loss) to Adjusted Net Loss:** | **Reconciliation of Net Income (Loss) to Adjusted Net Loss:** | **Reconciliation of Net Income (Loss) to Adjusted Net Loss:** | **Reconciliation of Net Income (Loss) to Adjusted Net Loss:** |
|  | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** | **Year Ended** | **Year Ended** |
|  | **December 31,**  | **December 31,**  | **December 31,**  | **December 31,**  | **September 30,**  | **September 30,**  | **December 31,**  | **December 31,**  | **December 31,**  | **December 31,**  |
|  | **2022** | **2022** | **2021** | **2021** | **2022** | **2022** | **2022** | **2022** | **2021** | **2021** |
|  | **Amount** | **Per Share** | **Amount** | **Per Share** | **Amount** | **Per Share** | **Amount** | **Per Share** | **Amount** | **Per Share** |
| (in thousands) |  |  |  |  |  |  |  |  |  |  |
| Net income (loss) | $3461 | $0.25 | $(31484) | $(3.23) | $(7194) | $(0.53) | $(65321) | $(5.01) | $(66712) | $(8.89) |
| Add back: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Asset impairment, net (1) | 350 | 0.03 | 25 |  |  |  | 350 | 0.02 | 800 | 0.11 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on disposition of assets, net (2) | 469 | 0.03 | (63) | (0.01) | 433 | 0.03 | (196) | (0.02) | (245) | (0.03) |
| &nbsp;&nbsp;Amortization of debt discount | 1855 | 0.14 |  |  | 1354 | 0.10 | 4671 | 0.36 |  |  |
| &nbsp;&nbsp;Amortization of issuance costs | 551 | 0.04 |  |  | 606 | 0.05 | 1676 | 0.13 |  |  |
| &nbsp;&nbsp;Loss (gain) on extinguishment of debt (3) |  |  |  |  |  |  | 46347 | 3.56 | (10128) | (1.35) |
| &nbsp;&nbsp;Change in fair value of embedded derivative liability (4) |  |  |  |  |  |  | 4265 | 0.33 |  |  |
| &nbsp;&nbsp;Gain on extinguishment of derivative (5) |  |  |  |  |  |  | (10765) | (0.83) |  |  |
| &nbsp;&nbsp;Purchase agreement costs (6) |  |  | 150 | 0.02 |  |  |  |  | 150 | 0.02 |
| &nbsp;&nbsp;Non-cash income tax expense related to IRC Section 382 limitation (7) |  |  | 18192 | 1.87 |  |  |  |  | 18192 | 2.42 |
| &nbsp;&nbsp;Non-cash income tax benefit related to deductibility of Convertible Note interest (8) | (6773) | (0.50) |  |  |  |  | (6773) | (0.52) |  |  |
| **Adjusted net loss** | $(87) | $(0.01) | $(13180) | $(1.35) | $(4801) | $(0.35) | $(25746) | $(1.98) | $(57943) | $(7.72) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA:** | **Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA:** | **Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA:** | **Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA:** | **Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA:** | **Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA:** |
|  | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
|  | **December 31,**  | **December 31,**  | **September 30,**  | **December 31,**  | **December 31,**  |
|  | **2022** | **2021** | **2022** | **2022** | **2021** |
| (in thousands) |  |  |  |  |  |
| Net income (loss) | $3461 | $(31484) | $(7194) | $(65321) | $(66712) |
| Add back: |  |  |  |  |  |
| &nbsp;&nbsp;Income tax (benefit) expense  | (6979) | 18446 | (696) | (6196) | 18532 |
| &nbsp;&nbsp;Interest expense | 8570 | 3899 | 8098 | 29575 | 15193 |
| &nbsp;&nbsp;Depreciation and amortization | 10724 | 9671 | 10120 | 40443 | 38915 |
| &nbsp;&nbsp;Asset impairment, net (1) | 350 | 25 |  | 350 | 800 |
| **EBITDA** | 16126 | 557 | 10328 | (1149) | 6728 |
| &nbsp;&nbsp;Loss (gain) on disposition of assets, net (2) | 469 | (63) | 433 | (196) | (245) |
| &nbsp;&nbsp;Stock-based and deferred compensation cost | 1890 | 808 | 1709 | 5251 | 3229 |
| &nbsp;&nbsp;Loss (gain) on extinguishment of debt (3) |  |  |  | 46347 | (10128) |
| &nbsp;&nbsp;Change in fair value of embedded derivative liability (4) |  |  |  | 4265 |  |
| &nbsp;&nbsp;Gain on extinguishment of derivative (5) |  |  |  | (10765) |  |
| &nbsp;&nbsp;Purchase agreement costs (6) |  | 150 |  |  | 150 |
| **Adjusted EBITDA** | $18485 | $1452 | $12470 | $43753 | $(266) |

---

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| | |
|:---|:---|
| ______________________ | ______________________ |
| (1) | During the fourth quarter of 2022, we impaired $0.4 million of drilling equipment that was designated held for sale. We impaired the drilling equipment to fair market value less cost to sell, recorded asset impairment expense of $0.4 million and recorded $0.3 million of assets held for sale. |
| (2) | Gain or loss on disposition of assets, net represents recognition of the sale or disposition of miscellaneous drilling equipment in each respective period.  |
| (3) | Loss on extinguishment of debt related to unamortized debt issuance costs on our prior term loan facility, non-cash structuring fees settled in shares to the affiliates of our prior term loan facility and the fair value of the embedded derivatives attributable to the affiliates of our prior term loan facility in the first quarter of 2022. During the third quarter of 2021, we received notice from the SBA of full forgiveness of our PPP loan and recorded a gain on extinguishment of debt of $10.1 million. |
| (4) | Represents the change in fair value of embedded derivative liability between March 18, 2022 and June 8, 2022. The embedded derivative liability was extinguished on June 8, 2022. |
| (5) | Represents the gain on extinguishment of the variable PIK interest rate feature of the derivative liability. |
| (6) | Purchase agreement costs were recorded in the fourth quarter of 2021 in connection with the Company's committed equity line of credit. |
| (7) | During the fourth quarter of 2021, the Company recorded non-cash income tax expense related to the inability to utilize net operating loss ("NOL") deferred tax assets to offset deferred tax losses due to an IRC Section 382 change in ownership occurring in October 2021 and the limitations therefrom placed upon the NOLs. |
| (8) | During the fourth quarter of 2022, the Company recorded non-cash income tax benefit related to the determination of deductibility of the Convertible Note interest. |

---

**INVESTOR CONTACTS:**

Independence Contract Drilling, Inc. <br>E-mail inquiries to: Investor.relations@icdrilling.com <br>Phone inquiries: (281) 598-1211

![](icd-ex99_1i0.jpg)

## Ex-99

![Slide 1](icd-ex99_2s1.jpg)

March 2023 Investor Presentation Exhibit 99.2

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![Slide 2](icd-ex99_2s2.jpg)

Various statements contained in this presentation, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward-looking statements. These forward-looking statements may include projections and estimates concerning the timing and success of specific projects and our future revenues, income and capital spending. Our forward-looking statements are generally accompanied by words such as "estimate," "project," "predict," "believe," "expect," "anticipate," "potential," "plan," "goal," "will" or other words that convey the uncertainty of future events or outcomes. The forward-looking statements in this presentation speak only as of the date of this presentation; we disclaim any obligation to update these statements unless required by law, and we caution you not to rely on them unduly. We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. These and other important factors, including those discussed under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K, may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. These risks, contingencies and uncertainties include, but are not limited to, the following: decline in or substantial volatility of crude oil and natural gas commodity prices; a decrease in domestic spending by the oil and natural gas exploration and production industry; fluctuation of our operating results and volatility of our industry; inability to maintain or increase pricing of our contract drilling services, or early termination of any term contract for which early termination compensation is not paid; our backlog of term contracts declining rapidly; the loss of any of our customers, financial distress or management changes of potential customers or failure to obtain contract renewals and additional customer contracts for our drilling services; overcapacity and competition in our industry; an increase in interest rates and deterioration in the credit markets; our inability to comply with the financial and other covenants in debt agreements that we may enter into as a result of reduced revenues, financial performance or financial requirements; unanticipated costs, delays and other difficulties in executing our long-term growth strategy; the loss of key management personnel; new technology that may cause our drilling methods or equipment to become less competitive; labor costs or shortages of skilled workers; the loss of or interruption in operations of one or more key vendors; the effect of operating hazards and severe weather on our rigs, facilities, business, operations and financial results, and limitations on our insurance coverage; increased regulation of drilling in unconventional formations; the incurrence of significant costs and liabilities in the future resulting from our failure to comply with new or existing environmental regulations or an accidental release of hazardous substances into the environment; and the potential failure by us to establish and maintain effective internal control over financial reporting. All forward-looking statements are necessarily only estimates of future results, and there can be no assurance that actual results will not differ materially from expectations, and, therefore, you are cautioned not to place undue reliance on such statements. Any forward-looking statements are qualified in their entirety by reference to the factors discussed throughout this presentation and in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K. Further, any forward-looking statement speaks only as of the date of this presentation, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. Adjusted Net Income or Loss, EBITDA and adjusted EBITDA are supplemental non-GAAP financial measures that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company's management believes adjusted Net Income or Loss, EBITDA and adjusted EBITDA are useful because such measures allow the Company and its stockholders to more effectively evaluate its operating performance and compare the results of its operations from period to period and against its peers without regard to its financing methods or capital structure. See non-GAAP financial measures at the end of this presentation for a full reconciliation of Net Income or Loss to adjusted Net Income or Loss, EBITDA and adjusted EBITDA. Preliminary Matters

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![Slide 3](icd-ex99_2s3.jpg)

Land Drilling's Only U.S. Publicly-Traded, Pure-Play, Pad-Optimal, Super-Spec, Growth Story Highest Asset Quality 100% Pad-Optimal, Super-Spec Fleet Premier Customer Base Expansion of Margins/Cash Flows Driving Overall Net Debt Reduction and Shareholder Upside Significant Investment Opportunity - Meaningful Current Valuation Discount to Market Based Upon Both Asset Values and Cash Flow Multiples Fleet 100% Dual-Fuel Enabled / Electric Hi- Line Capable: Substantial GHG Reduction / Elimination Recognized Industry Leader for Service and Professionalism Ideal Geographic Focus on Most Prolific Oil and Natural Gas Producing Regions

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![Slide 4](icd-ex99_2s4.jpg)

Company Background: Pure-Play, 100% Pad-Optimal, Super-Spec U.S. Land Contract Driller Market Dynamics and Outlook Drivers of Returns and Free Cash Flow in Current Market Drivers of Debt Reduction and Imbedded Value ESG Appendices Presentation Outline

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![Slide 5](icd-ex99_2s5.jpg)

COMPANY BACKGROUND Pure-Play, 100% Pad-Optimal, Super-Spec U.S. Land Contract Driller

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![Slide 6](icd-ex99_2s6.jpg)

20 rigs operating at December 31, 2022 4Q'22 Financial Results Adjusted EBITDA: $18.5 million, representing an approximate 48% sequential increase Margin per day: $14,517, representing an approximate 28% sequential increase, and exceeding prior margin guidance by approximately 14% 18.5 average rigs working Forward-Looking Guidance 1Q'23: margin per day: $15,000 to $15,500, exceeding prior guidance Expect Haynesville market softness based upon decline in natural gas prices Currently expect overall rig count in Haynesville to fall 25 to 35 rigs Currently expect to relocate five to six rigs from Haynesville market to Permian market during 2Q'23 and 3Q'23 Pausing rig reactivation program in light of natural gas softness: accelerating strategic focus on free cash flow and net debt reduction 21st rig: early to mid 2Q'23 commencement of contract 22nd rig +: postponed due to natural gas market softness Financial & Operating Rig Update

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![Slide 7](icd-ex99_2s7.jpg)

Introduction: ICD Best-in-Class Asset Quality and Geographic Focus Marketed fleet comprised entirely of Pad-Optimal, Super-Spec rigs Established presence in oil rich Permian play Leading presence in natural gas rich Haynesville and East Texas regions Fit-for-purpose rigs engineered/outfitted to address particular basin drivers All rigs software-optimization-capable High Quality Customer Base Supported by Industry Leading Customer Service and Operations #1 ranked land contract driller for service and professionalism past five years: 2018 - 2022 Established relationships with publics and well-capitalized private operators Constructive Market, Asset Quality Driving Incremental Cash Flows and Shareholder Upside Strength of Permian market and ICD customer base expected to fully-absorb ICD pad-optimal rigs relocating from Haynesville Pause in rig reactivations in response to recent natural gas weakness accelerates ICD free cash flow and net reduction goals as cash flows redirected away from reactivation capex ESG Focus Marketed fleet 100% dual-fuel and hi-line power capable Omni-directional walking reduces operational footprints and environmental impacts Increasingly diverse workforce: 38% from under-represented groups Leading percentage concentration of rigs directed at natural gas production Sector's only U.S. publicly-traded, pure-play, Pad-Optimal, Super-Spec drilling contractor focused solely on North America's most attractive oil and natural gas basins

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![Slide 8](icd-ex99_2s8.jpg)

Rig Fleet & Geographic Markets Texas Oklahoma Arkansas Louisiana New Mexico ICD owned or leased location ICD Operating Area AVERAGE AGE OF MARKETED FLEET: 7.29 YEARS(3) 26 Marketed Pad-Optimal Super-Spec Rigs(1) 17 "300" Series ShaleDriller Rigs(2) 1,500 – 2,000 HP drawworks; 25K+ racking Three pump / four engine capable; drilling optimization software capable Targeting developing market niche for larger diameter casing strings and extreme laterals Dual-Fuel Enabled / Hi-Line Electric Power Capable Hi-torque top drive 9 "200" Series ShaleDriller Rigs 1,500 HP drawworks; 20K+ racking / 750K lb. hook Three pump / four engine capable; drilling optimization software capable Dual-Fuel Enabled / Hi-Line Electric Power Capable Includes eight rigs capable of conversion to 300 Series specifications with only modest capex pursuant to recently announced 200-to-300 Series conversion program announced in August '22 Excludes six idle but not marketed rigs (three rigs capable of conversion to 300 Series specifications) Includes two planned 200-to-300 Series conversions and one completed conversion As of December 31, 2022; based upon date of first well spud following rig construction or material upgrade ICD Operations Strategically Focused on the Most Prolific Oil and Natural Gas Producing Regions in the United States

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![Slide 9](icd-ex99_2s9.jpg)

300 Series Rigs Lead Transformation of Operating Fleet Compared to Pre-COVID levels Demand for 300 Series spec rigs being driven by rapidly evolving industry dynamics: Shift towards longer laterals and deeper wells Shift towards larger diameter and high-torque drill pipe Steadily increasing number of wells per drilling pad Increased deep gas drilling by ICD customers in Haynesville / E. TX gas plays Rigs meeting 300 Series specs are in the shortest supply and command the highest dayrates when matched with customers requiring such specifications Initial fourteen 300 Series rigs acquired by ICD in 4Q'18 Sidewinder merger – current recovery represents first opportunity for ICD to market and place these rigs with customers in an improving rig count environment ICD 200-300 Series Conversion Program: ICD recently announced its 200-to-300 Series conversion program in 3Q'22, resulting in ICD now marketing 96% of its marketed fleet with 300 Series specifications First conversion completed 4Q'22 Conversion cost per rig: $650K Payback less than one year based upon dayrate differential Conversion completed on long rig move (minimal operational downtime) 2018 Pre-Sidewinder Merger Post Sidewinder Merger Current: Following 200-300 Series Conversion Program 0% 60% 96% ICD Marketed Fleet Transformation: % 300 Series 200 Series 300 Series

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![Slide 10](icd-ex99_2s10.jpg)

ICD Margins Rapidly Expanding Beyond Pre-COVID Levels as Operating Fleet Evolves to 300 Series Specs ICD Fleet Composition Compared to ICD Margin-Per-Day Progression 1) Margin and fleet operating mix per Q4'22 earnings call press release guidance Margin Per Day Operating Rigs Most recent quarters: ICD already reporting record margin per day

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![Slide 11](icd-ex99_2s11.jpg)

Projected ICD Rigs By Basin (following planned Haynesville-to-Permian transition) Geographic Mix / Customer Relationships Current and Prior ICD Customers Premier Customer Base Current ICD Rigs By Basin Occidental Petroleum Corporation via Anadarko Petroleum acquisition; ConocoPhillips via Concho Reources acquisition Permian 12 Haynesville / ETX: 9 (1) (1) Permian 17 Haynesville / ETX: 4

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![Slide 12](icd-ex99_2s12.jpg)

Market Dynamics and Outlook

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![Slide 13](icd-ex99_2s13.jpg)

Defining a Pad-Optimal, Super-Spec Rig Omni-Directional Walking 1500 HP Drawworks High-Pressure Mud Systems (7500 psi) Fast Moving AC Programmable Fleet must have flexibility to provide differing equipment packages to meet particular requirements of E&Ps' drilling programs Three pump / four engine: 100% of ICD marketed fleet High-Torque top drive: 96% of ICD marketed fleet Enhanced racking (25K ft) : 96% of ICD marketed fleet Drilling optimization software capable: 100% of marketed fleet Dual-fuel / Electric Hi-line capable : 100% of marketed fleet 476 Pad Optimal Rigs 144 Upgradeable Rigs(2) 1) Source: Enverus and Company estimates. Includes AC, 1500HP+, 750,000lb+ hookload; excludes rigs not operating since 2018 and rigs owned by non-operating entities 2) 1500HP AC rigs with skidding systems upgradeable to omni-directional walking (capex estimated at $7M+ per rig)

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![Slide 14](icd-ex99_2s14.jpg)

Constructive oil supply / natural gas (long-term) demand fundamentals Prolonged underinvestment and industry capital discipline Depleted drilled-but-uncompleted (DUC) inventories Pad-Optimal, Super-Spec capacity consolidated within small number of players Even with expected declines in natural gas drilling in 2023, U.S. Pad-Optimal fleet utilization still expected to exceed 90% Pad-Optimal, Super-Spec Market Drivers

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![Slide 15](icd-ex99_2s15.jpg)

Industry Underinvestment & Capital Discipline Source: Capital IQ as of October 26, 2022. Companies include: Antero, APA, Chesapeake, Conoco Phillips, Continental, Coterra, Devon, Dimaondback, EOG, EQT, Hess, Marathon, Occidental, Ovintiv & Pioneer Source: EIA DUC Inventory Completed Wells US E&P Cash Flows Compared to Capital Expenditures(1) $millions Significant industry underinvestment since 2014, industry capital discipline and depleted DUC inventories driving constructive market backdrop despite natural gas declines and general U.S. and global recessionary concerns

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![Slide 16](icd-ex99_2s16.jpg)

Pad-Optimal Rig Demand in Permian Expected to Absorb Rigs Transitioning from Other Basins AC Pad-Optimal Rigs AC Pad-Optimal Rigs: Relocation Candidates SCR Rigs Permian Current Rig Count: 293 Haynesville Current Rig Count: 79 Assuming a 25 to 35 rig decline in the Haynesville rig count, there are significant rig replacement and high-grading opportunities available to absorb the estimated 15-20 Pad-Optimal, Super-Spec rigs that likely could relocate to the Permian Basin AC Pad-Optimal Rigs AC Rigs (Lower Spec/Performing): High-Grade Opportunities SCR Rigs: Rig Replacement Opportunities 15 15-20 23 40 Source: Enverus 2/10/23, Company estimates; Rig counts represent AC/SCR 1,500HP+ rigs operating in applicable basin

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Even with Natural Gas Softness, Still Minimal Spare Pad-Optimal Super Spec Capacity Pad optimal rid defined as AC, walking 1500HP+, 750,000lb hookload +, 3 pumps (7500psi) / 4 engines Market share based upon AC, walking or skidding, 1500HP+, 7500,000lb hookload +, 3 pumps (7500psi) / 4 engines) Source: Enverus and Company estimates 80% Utilization Estimated Pad- Optimal Fleet Estimated Pad- Optimal Supply(1) Pad-Optimal Operating Rigs: U.S. Land(1)(2) 4Q'22 Market conditions for Pad-Optimal Super-Spec equipment expected to remain strong based upon continued strong utilization rates and expected capital discipline by the market's principal participants 4Q'18

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Drivers of Returns and Free Cash Flow in Current Market

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![Slide 19](icd-ex99_2s19.jpg)

Drivers of Returns /FCF Through Oil and Gas Cycle Fleet Utilization Short transition (2Q'23 / 3Q'23) of five to six rigs from Haynesville to Permian in response to softness in natural gas markets Rig 21 scheduled for reactivation early-to mid 2Q'23 (300 Series rig) (Permian) 200-to-300 Series conversion opportunities 300 Series rigs are in shortest supply and command highest dayrates in the market Dayrate and Margin Momentum Even during transition of rigs from Haynesville to Permian, ICD expects to generate revenue per day exceeding 4Q'22 levels U.S. Pad-Optimal, Super-Spec fleet utilization expected to remain above 90% as Pad-Optimal rigs in "gassier" basins transition to oil basins and realize upon high grading and rig replacement opportunities Shift of Focus from Rig Reactivations Drives Substantial Improvements in Cash Flows While investments in rig reactivations pause during rig transitions from Haynesville to Permian, ICD free cash flow generation profile accelerates ICD capital expenditure focus shifts entirely to maintenance mode and less capital intensive 200-to-300 Series conversions

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![Slide 20](icd-ex99_2s20.jpg)

ICD Margin Expansion During 2023, the following factors are expected to positively impact ICD revenues and margin per day: 300 Series rig pricing and market penetration 200-to-300 Series conversion opportunities Backlog of contracts protects margins while rigs transitioning between basins (63% of ICD backlog tied to Haynesville rigs) Rigs transitioning from Haynesville to Permian are expected to realize dayrate improvements on new, post relocation contracts One contract already executed, and rig has commenced operations in Permian at higher dayrate Additional rig at final contract negotiation stage and expected to commence operations in Permian at higher dayrate following relocation in March '23 1) Sidewinder Merger closed 10/1/2018 2) Estimates from ICD 4Q'22 earnings press release 3) Backlog margin assumes approximately $700 per day in revenue adders Margin Per Day ICD current contractual backlog extending into 2023 is priced at an average revenue per day exceeding $35K, with expected margin on these contracts approximating $17.5K per day(3)

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![Slide 21](icd-ex99_2s21.jpg)

Led By Increasing 300 Series Market Penetration, ICD Margins Have Closed Historical Pre-COVID Profitability Gap (1) Average margin per day for HP, PTEN, NBR and PDS Source: Public company filings ICD margin per day guidance at midpoint – 1Q'23: $15,250

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![Slide 22](icd-ex99_2s22.jpg)

ICD Backlog and Spot Market Exposure 4Q'22 Reported Revenue Per Day Pricing within existing backlog provides margin protection while ICD transitions rigs from the Haynesville to the Permian Basin: 63% of backlog tied to Haynesville rigs Backlog Revenue Days Spot Market Exposure Revenue Per Day in ICD Contracted Backlog 1Q'23 Revenue Per Day Guidance $33,500 $35,873 $36,459 $37,331 $32,778

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![Slide 23](icd-ex99_2s23.jpg)

Drivers of Debt Reduction and Imbedded Value

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ICD Operating Leverage Potential in an Improving Market Adjusted Annualized EBITDA Potential Across Various Rig Margin Per Day Scenarios ICD has significant operating leverage potential: 4Q'22 margin per day was $14,517 and currently expect 1Q'23 margin per day between $15,000 and $15,500 Potential to maintain or improve margins after 1Q'23 expected to be driven by: Current contractual backlog extending into 2023 priced at average revenue per day exceeding $35,000 generating $17,500+ per day margins at current operating cost and revenue adder levels Incremental 200-to-300 Series conversions Indicative potential Adjusted EBITDA based upon the following additional assumptions: Margin per day illustration based upon 4Q'22 actuals, 1Q'23 guidance and 2023 backlog pricing 21 rig operating fleet at full effective utilization (99% realization) following transition of rigs from Haynesville to Permian Cash SG&A: $18.5 million $000s Illustrative Margin Per Day

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![Slide 25](icd-ex99_2s25.jpg)

Illustrative ICD Free Cash Flow Growth $000s Key Assumptions Assume average margin of $15,250 consistent with 1Q'23 margin guidance throughout the illustrative periods Cash SG&A: $18.5 million per year Maintenance/Other capex: $3,000 per day Growth Capex: Reactivate rig 21: assumes five additional rigs in marketed fleet are not reactivated Full effective utilization of operating rigs (99% realization) in 2024 and 2025; average 19.5 rigs in 2023 while rigs transition from Haynesville to Permian $4.0 million of basin transition costs in 2023 PIK interest in 2023 (SOFR + 9.5%) Cash interest in 2024 and 2025 (SOFR + 12.5%) SOFR: 5.0% ICD does not exercise any rights to repurchase convertible debt Mandatory offer to repurchase notes not accepted by noteholders ICD becomes cash federal income taxpayer beginning in 2025 when NOL usage not expected to fully offset estimated taxable income 1 Even assuming a flat market through 2025 and no rig reactivations past 21st rig, ICD poised to generate significant free cash flow that can be utilized to reduce net debt, repay outstanding indebtedness and return capital to stockholders

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ICD Balance Sheet & Capital Structure Refinancing completed March 18, 2022 significantly de-risked ICD balance sheet Prior to refinancing, near-term debt maturities and balance sheet risk impeded investor interest and ICD's ability to reactivate rigs into a very strong market ICD poised to significantly delever balance sheet even with no conversion of the Convertible Notes Even assuming full conversion of the Convertible Notes issued in the refinancing, significant upside exists for ICD stockholders Long –Term Debt December 31, 2022 $000s Convertible Notes (Face) $170,166 Revolver Borrowings 11,811 Capital Leases (Long-Term) 1,599 Debt Discount & Debt Issuance Costs (40,353) Reported LT Debt $143,233 Convertible Notes Material Terms Maturity: March 18, 2026 Conversion Price: $4.51 (at Holder's option) Ability to PIK interest at ICD option for entirety of the Convertible Notes term PIK Interest Rate: SOFR + 9.5% Cash Interest Rate: SOFR + 12.5% See Appendices for additional terms and details

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![Slide 27](icd-ex99_2s27.jpg)

Illustrative Debt Reduction 1.40X 1.99X 2.5X Assuming a flat market through 2025, ICD cash flow significantly improves ICD leverage position and can be utilized to repay/refinance outstanding indebtedness or return capital to stockholders PIK interest assumed through March '24 Utilizes cash flow assumptions from Slide 25 Ratio of Net Debt / Adjusted EBITDA as of end of period 1.08X $000s

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![Slide 28](icd-ex99_2s28.jpg)

Significant potential for uplift as the overhang related to our prior leverage profile gives way to imbedded value in our premier fleet. Newbuild Super-Spec, Pad-Optimal rigs estimated to cost $30+ million with 12+ month lead times Adjusted Enterprise Value / Active Rig(1) ($ in millions) Significant Potential Value Uplift Source: public filings and Enverus as of 2/10/23 calculated as Adjusted Enterprise Value divided by Active Rigs. Active rig counts based upon U.S. active rigs per Enverus (50% value for SCR rigs) for each of HP, PTEN, NBR and PDS. Adjusted Enterprise Values reflect estimated proportion of total company represented by U.S. land drilling business based upon reported asset book values and segment revenues and operating income, as reported. "Unconverted" value per rig based upon current ICD stock price and no conversion of Notes; "As-Converted" value per rig assumes full conversion of the Notes on December 31, 2022 and ICD stock price of $6.00 per share 3) As of February 28, 2023 Unconverted (2) As-Converted(2) ICD current share price: $3.80(3) Even assuming a $6.00 share price, ICD is discounted on $/rig metrics ICD is materially undervalued vs. peers based on $/rig metrics Average: $19.7 million

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![Slide 29](icd-ex99_2s29.jpg)

Even assuming full conversion of the convertible notes, significant upside exists for ICD stockholders as they participate in value creation driven by a constructive market, free cash flow generation, and ICD closing the valuation gap between its public company peers Current public company valuations for active Super-Spec rigs currently estimated to be approximately $19.7 million Illustrative table based on the following assumptions: ICD reactivates 21st rig during 2Q'23 ICD elects PIK interest through 1Q'24 PIK interest rate: 9.5% + SOFR, with SOFR assumed to be 5.0% No redemption of Convertible Notes during term / No mandatory offer accepted by noteholders Convertible Notes fully convert at maturity ICD free cash flow build consistent with assumptions on slide 25 Excludes potential reactivations of rigs 22 through 26 ICD closing share price on February 28, 2023: $3.80 Significant Potential Value Uplift Illustration of potential stockholder upside assuming full conversion of convertible notes based upon enterprise value to active rig ($millions except per share data) Beginning Convertible Notes Balance as of December 31, 2022 See Appendix slide 38 for roll forward of debt balance and PIK interest Calculated as value per rig multiplied by ending contracted rigs plus illustrative cash balance (assuming full conversion of notes)

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![Slide 30](icd-ex99_2s30.jpg)

Significant Potential Value Uplift Illustration of potential stockholder upside assuming full conversion of convertible notes based upon illustrative EBITDA trading multiples ($millions except margin per day and per share data) Even based upon reasonable EBITDA trading multiples and assuming full conversion of the convertible notes, significant upside exists for ICD stockholders as they participate in value creation driven by a constructive market, free cash flow generation, and ICD closing the valuation gap between its public company peers Illustrative table based on the following assumptions: Average rigs: ICD averages 19.5 rigs during 2023 as rigs transition between basins and reaches full effective utilization by FYE 23 of its 21-rig operating fleet. No further rig reactivations after 21st rig ICD elects PIK interest through 1Q'24 PIK interest rate is 9.5% + SOFR No redemption of convertible notes during term Convertible Notes fully convert at end of illustrative period Illustrative cash flow based upon assumptions on slide 25 Excludes potential reactivations of rigs 22 through 26 ICD closing share price on February 28, 2023: $3.80 See Appendix slide 38 for roll forward of convertible debt balance and PIK interest Calculated as illustrative EBITDA multiplied by valuation multiple plus illustrative cash (assuming full conversion of notes)

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ESG

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![Slide 32](icd-ex99_2s32.jpg)

ESG and Sustainability Focused Environment ICD operations substantially reduce GHG emissions and environmental footprints at the wellsite 100% of ICD marketed rigs are dual-fuel enabled and high-line capable, permitting substantial reduction and elimination of GHG emissions at the wellsite from rig operations 100% of ICD rigs utilize omni-directional walking systems that enable large-scale pad operations which substantially reduces environmental footprints at the wellsite 100% of ICD rigs utilize energy-efficient LED lighting and/or crown lighting which substantially reduces energy use and "dark sky" environmental impacts ICD is a leading provider of contract drilling services in the natural gas producing regions located in ETX/Haynesville areas which are expected to become increasingly relevant as energy transition efforts continue to develop and accelerate Social ICD believes our people are our greatest resource and continuously focuses on creating a culture where employee safety, opportunity, well-being and development is prioritized ICD utilizes leading safety management and training systems; 100% of ICD employees completed social, ethics and compliance training in 2021 ICD is committed to a culture of diversity and inclusion - 38% of ICD's workforce is currently comprised of historically underrepresented groups(1) ICD provides industry leading health and welfare benefits focused on employee well-being ICD actively participates in community outreach programs in regions where we operate Governance ICD's Board prioritizes shareholder alignment and ESG initiatives that benefit all stakeholders and the environment Board level oversight of ESG goal setting, performance and outreach ICD Executive LTIP compensation substantially at-risk and performance-based, and thus closely aligned with shareholder interests Executive compensation structures include safety, environmental and other ESG goals and metrics 1) As of September 30, 2022

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ICD ShaleDriller Rigs Substantially Reduce and Eliminate GHG Emissions at the Wellsite Utilizing natural gas rather than diesel substantially reduces GHG emissions. ICD customers routinely use field natural gas to power our rigs, providing even more significant positive impacts on the environment. The first rig ICD built in 2012 was equipped with Dual-Fuel engines and today 100% of ICD's marketed fleet is equipped with Dual- Fuel capabilities. Dual-Fuel Equipped 100% of ICD's Rigs Similar to an electric car, utilizing the electric grid to power a rig's engines substantially eliminates GHG emissions at the wellsite. All ICD rigs are capable of running on Hi-Line Electric Power. ICD began operating rigs on Hi-Line Electric power in 2019 and continually markets this option to its customers where operational infrastructure permits. Hi-Line Electric Power Capable 100% of ICD's Rigs LED/CROWN LIGHTING 100% of ICD's Rigs In 2019, ICD converted all of its rigs from fluorescent lighting to LED lighting and is in process of converting all of its rigs from traditional lighting to crown lighting systems. LED and crown lighting systems substantially reduce energy use and eliminate light pollution, in particular in environmentally sensitive areas where "dark sky" environmental issues exist.

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Land Drilling's Only U.S. Publicly-Traded, Pure-Play, Pad-Optimal, Super-Spec, Growth Story Highest Asset Quality 100% Pad-Optimal, Super-Spec Fleet Premier Customer Base Expansion of Margins/Cash Flows Driving Overall Net Debt Reduction and Shareholder Upside Significant Investment Opportunity - Meaningful Current Valuation Discount to Market Based Upon Both Asset Values and Cash Flow Multiples Fleet 100% Dual-Fuel Enabled / Electric Hi- Line Capable: Substantial GHG Reduction / Elimination Recognized Industry Leader for Service and Professionalism Ideal Geographic Focus on Most Prolific Oil and Natural Gas Producing Regions

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Investor Contact Information Email inquiries: investor.relations@icdrilling.com Phone inquiries: (281) 878-8710

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APPENDICES

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![Slide 37](icd-ex99_2s37.jpg)

Convertible Debt Terms Amount/Maturity Current balance at 12/30/22: $170.2 million: optional $7.5 million uncommitted accordion upsizing Matures March 18, 2026 Defeasance options begin 18 months prior to maturity Interest; PIK Amount Cash interest at SOFR + 12.5%(1) PIK Interest at SOFR + 9.5%(1) ICD has right to PIK interest throughout term of the Notes Paid semi-annually on March 31st and September 30th through maturity Conversion Conversion price: $4.51 ICD has the right to mandatorily convert Notes in certain change of control transactions involving larger public companies, subject to a minimum MOIC Redemption Through 9/18/23, ICD has right to redeem up to $25 million at 108% plus accrued interest. Redemptions funded by equity sales at price equal to greater than conversion price ("Optional Redemption Rights") Company obligated to offer to redeem notes at par in principal amount of $5.0 million on each of June 30, 2023, Sept 30, 2023, Dec 31, 2023, and in principal amounts of $3.5 million on each of Mar 31, 2024, June 30, 2024 and September 30, 2024 (obligation falls away to extent optional redemption rights exercised) Governance Limitation on Voting Rights. Each Holder's beneficial common stock ownership post conversion limited to 19.9% or lower of outstanding shares; any conversion in excess of ownership limitations issued in pre-funded, non-voting warrants Board Rights: Holders entitled to appoint up to three members of a seven-member Board, one of which must be independent, subject to reduction if note ownership declines 1) Six Month Term SOFR as reported by CME Group at the beginning of each interest payment period

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PIK Interest Rollforward Illustration ICD permitted to PIK interest at its option over entirety of Convertible Notes term: the following illustration assumes PIK interest through March 31, 2024 1) PIK interest rate SOFR + 9.5% utilizing six-month term SOFR at beginning of interest period; 6 Month SOFR assumed to be 4.0% through 3/31/23 and 5.0% thereafter; interest compounds/paid semi-annually on March 31st and September 30th of each calendar year through maturity; indicative convertible debt balances between interest payment dates include accrued interest Assumes ICD begins paying cash interest after 3/31/24

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Maximizing Returns By Strategically Marketing ICD Fleet Across Target Markets Texas Oklahoma Arkansas Louisiana New Mexico Permian – Midland Basin 200 Series Target Market Eagle Ford/STX 200 Series Target Market Haynesville/ETX 300 Series Target Market Permian – Delaware Basin 300 Series Target Market

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ICD Fleet Utilization Growth Substantially Outperforming Overall Market Source: BHI Rig Count

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![Slide 41](icd-ex99_2s41.jpg)

ICD Positioning in a Consolidating Market Number of Operating Super-Spec or AC Rigs Convertible into Super-Spec Rigs ICD Target Markets: TX, LA, NM(1) Enverus. Active AC rigs with 1500-2000hp drawworks (as of February 10, 2022) Defined as a company listed on NYSE, NASDAQ, or Toronto Exchanges with market cap of at least US$350M and public float of at least US$250M ICD well positioned to participate in industry consolidation activity as it develops during the current market upcycle ICD SG&A overhead structure scalable and will not materially increase in the event of additions to its operating fleet in its target markets ICD has the ability to mandatorily convert the convertible notes and deliver a delevered company in transaction with larger public company(2)