Independence Contract Drilling (ICDIQ) 10-Q1 May 242024 Q1 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2024	Apr. 26, 2024
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-36590
Entity Registrant Name	Independence Contract Drilling, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	37-1653648
Entity Address, Address Line One	20475 State Highway 249
Entity Address, Address Line Two	Suite 300
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77070
City Area Code	281
Local Phone Number	598-1230
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	ICD
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		15,213,277
Entity Central Index Key	0001537028
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Assets
Cash and cash equivalents	$ 6,944	$ 5,565
Accounts receivable	27,188	31,695
Inventories	1,570	1,557
Prepaid expenses and other current assets	3,697	4,759
Total current assets	39,399	43,576
Property, plant and equipment, net	342,701	348,193
Other long-term assets, net	2,670	2,908
Total assets	384,770	394,677
Liabilities
Current portion of long-term debt	1,525	1,226
Accounts payable	18,800	22,990
Accrued liabilities	9,783	16,371
Total current liabilities	30,108	40,587
Long-term debt, net	170,378	154,549
Deferred income taxes, net	9,521	9,761
Other long-term liabilities	1,316	8,201
Total liabilities	211,323	213,098
Commitments and contingencies (Note 12)
Stockholders' equity
Common stock, $0.01 par value, 250,000,000 shares authorized; 15,369,536 and 14,523,124 shares issued, respectively, and 15,213,277 and 14,425,864 shares outstanding, respectively	152	144
Additional paid-in capital	623,174	622,169
Accumulated deficit	(445,780)	(436,794)
Treasury stock, at cost, 156,259 shares and 97,260 shares, respectively	(4,099)	(3,940)
Total stockholders' equity	173,447	181,579
Total liabilities and stockholders' equity	$ 384,770	$ 394,677

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Consolidated Balance Sheets
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	250,000,000	250,000,000
Common stock, shares issued (in shares)	15,369,536	14,523,124
Common stock, shares outstanding (in shares)	15,213,277	14,425,864
Treasury stock (in shares)	156,259	97,260

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Consolidated Statements of Operations
Revenues	$ 46,636	$ 63,756
Costs and expenses
Operating costs	30,816	37,460
Selling, general and administrative	4,337	6,727
Depreciation and amortization	11,826	10,854
Gain on disposition of assets, net	(1,004)	(14)
Total costs and expenses	45,975	55,027
Operating income	661	8,729
Interest expense	(9,878)	(8,719)
(Loss) income before income taxes	(9,217)	10
Income tax benefit	(231)	(2)
Net (loss) income	$ (8,986)	$ 12
(Loss) income per share:
Basic (in dollars per share)	$ (0.62)	$ 0
Diluted (in dollars per share)	$ (0.62)	$ 0
Weighted average number of common shares outstanding:
Basic (in shares)	14,504	13,865
Diluted (in shares)	14,504	13,881

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Treasury Stock	Total
Beginning balance at Dec. 31, 2022	$ 136	$ 617,606	$ (399,097)	$ (3,933)	$ 214,712
Beginning balance (in shares) at Dec. 31, 2022	13,613,759
Increase (Decrease) in Stockholders' Equity [Roll Forward]
RSUs vested, net of shares withheld for taxes	$ 5	(390)			(385)
RSUs vested, net of shares withheld for taxes (in shares)	448,635
Issuance of common stock through at-the-market facility, net of offering costs		(34)			(34)
Stock-based compensation		1,374			1,374
Net Income (Loss)			12		12
Ending balance at Mar. 31, 2023	$ 141	618,556	(399,085)	(3,933)	215,679
Ending balance (in shares) at Mar. 31, 2023	14,062,394
Beginning balance at Dec. 31, 2023	$ 144	622,169	(436,794)	(3,940)	181,579
Beginning balance (in shares) at Dec. 31, 2023	14,425,864
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Restricted stock issued	$ 7	(7)
Restricted stock issued (in shares)	692,607
RSUs vested, net of shares withheld for taxes	$ 2	(14)			(12)
RSUs vested, net of shares withheld for taxes (in shares)	153,805
Purchase of treasury stock	$ (1)			(159)	(160)
Purchase of treasury stock (in shares)	(58,999)
Stock-based compensation		1,026			1,026
Net Income (Loss)			(8,986)		(8,986)
Ending balance at Mar. 31, 2024	$ 152	$ 623,174	$ (445,780)	$ (4,099)	$ 173,447
Ending balance (in shares) at Mar. 31, 2024	15,213,277				15,213,277

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities
Net (loss) income	$ (8,986)	$ 12
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization	11,826	10,854
Stock-based compensation	216	1,672
Gain on disposition of assets, net	(1,004)	(14)
Non-cash interest expense	6,487	11,619
Amortization of deferred financing costs	27	27
Amortization of Convertible Notes debt discount and issuance costs	2,720	2,378
Deferred income taxes	(231)	(13)
Credit loss expense		31
Changes in operating assets and liabilities
Accounts receivable	4,507	(2,094)
Inventories	(13)	(35)
Prepaid expenses and other assets	1,208	324
Accounts payable and accrued liabilities	(5,758)	(11,203)
Net cash provided by operating activities	10,999	13,558
Cash flows from investing activities
Purchases of property, plant and equipment	(9,974)	(18,835)
Proceeds from the sale of assets	1,783	748
Net cash used in investing activities	(8,191)	(18,087)
Cash flows from financing activities
Payments to redeem Convertible Notes	(3,500)
Borrowings under Revolving ABL Credit Facility	19,624	11,321
Repayments under Revolving ABL Credit Facility	(16,874)	(4,334)
Proceeds from issuance of common stock through at-the-market facility, net of issuance costs		(34)
Purchase of treasury stock	(160)
Taxes paid for vesting of RSUs	(12)	(385)
Payments for finance lease obligations	(507)	(650)
Net cash (used in) provided by financing activities	(1,429)	5,918
Net increase in cash and cash equivalents	1,379	1,389
Cash and cash equivalents
Beginning of period	5,565	5,326
End of period	6,944	6,715
Supplemental disclosure of cash flow information
Cash paid during the period for interest	549	419
Cash paid during the period for taxes	110
Supplemental disclosure of non-cash investing and financing activities
Change in property, plant and equipment purchases in accounts payable	(4,135)	(5,091)
Additions to property, plant and equipment through finance leases	1,513	$ 51
Extinguishment of finance lease obligations from sale of assets classified as finance leases	$ (304)

Nature of Operations and Recent

Nature of Operations and Recent Events	3 Months Ended
Nature of Operations and Recent Events	Mar. 31, 2024
Nature of Operations and Recent Events
Nature of Operations and Recent Events	1. Except as expressly stated or the context otherwise requires, the terms “we,” “us,” “our,” “ICD,” and the “Company” refer to Independence Contract Drilling, Inc. and its subsidiary. We provide land-based contract drilling services for oil and natural gas producers targeting unconventional resource plays in the United States. We own and operate a premium fleet comprised of modern, technologically advanced drilling rigs. We currently focus our operations on unconventional resource plays located in geographic regions that we can efficiently support from our Houston, Texas and Midland, Texas facilities in order to maximize economies of scale. Currently, our rigs are operating in the Permian Basin and the Haynesville Shale; however, our rigs have previously operated in the Eagle Ford Shale, Mid-Continent and Eaglebine regions as well. Our business depends on the level of exploration and production activity by oil and natural gas companies operating in the United States, and in particular, the regions where we actively market our contract drilling services. The oil and natural gas exploration and production industry is historically cyclical and characterized by significant changes in the levels of exploration and development activities. Oil and natural gas prices and market expectations of potential changes in those prices significantly affect the levels of those activities. Worldwide political, regulatory, economic and military events, as well as natural disasters have contributed to oil and natural gas price volatility historically and are likely to continue to do so in the future. Any prolonged reduction in the overall level of exploration and development activities in the United States and the regions where we market our contract drilling services, whether resulting from changes in oil and natural gas prices or otherwise, could materially and adversely affect our business. Market Conditions Oil prices (WTI-Cushing) reached a high of $123.64 per barrel on March 8, 2022; however, prices have fallen since those highs. As of April 22, 2024, oil was On August 22, 2022, natural gas prices reached a high of $9.85 per mmcf, but fell to $3.52 per mmcf as of December 31, 2022 and were $2.58 per mmcf as of December 31, 2023 and $1.59 per mmcf as of April 23, 2024. These commodity price declines, as well as take away capacity issues, caused market conditions in the Haynesville Shale to weaken rapidly, which resulted in a reduction in the number of drilling rigs operating in the Haynesville Shale, including a reduction in our operating rigs. At the end of the first quarter of 2023, we began relocating a portion of these rigs to the Permian Basin where market conditions were stronger. However, there can be no assurance that market conditions in the Permian Basin will not decline and will not be adversely affected by recent volatility in oil prices nor any assurance that we will be successful in marketing our rigs in the Permian Basin or that they will be contracted on a timely basis or upon terms that are acceptable to us.

Interim Financial Information

Interim Financial Information	3 Months Ended
Interim Financial Information	Mar. 31, 2024
Interim Financial Information
Interim Financial Information	2. These unaudited consolidated financial statements include the accounts of the Company and its subsidiary and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). These consolidated financial statements should be read along with our audited consolidated financial statements for the year ended December 31, 2023, included in our Annual Report on Form 10-K for the year ended December 31, 2023. In management’s opinion, these financial statements contain all adjustments necessary for a fair statement of our financial position, results of operations, cash flows and changes in stockholders’ equity for all periods presented. As we had no items of other comprehensive income in any period presented, no other components of comprehensive income are presented. Interim results for the three months ended March 31, 2024 Segment and Geographical Information Our operations consist of one reportable segment because all of our drilling operations are located in the United States and have similar economic characteristics. Corporate management administers all properties as a whole rather than as discrete operating segments. Operational data is tracked by rig; however, financial performance is measured as a single enterprise and not on a rig-by-rig basis. Further, the allocation of capital resources is employed on a project-by-project basis across our entire asset base to maximize profitability without regard to individual geographic areas. Recent Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . This guidance requires an entity to disclose significant segment expenses impacting profit and loss that are regularly provided to the Chief Operating Decision Maker (“CODM”) to assess segment performance and to make decisions about resource allocations. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We do not expect the standard to have a material impact on our financial statement disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . This guidance requires that an entity disclose specific categories in the effective tax rate reconciliation as well as provide additional information for reconciling items that meet a quantitative threshold. Also, this guidance requires certain disclosures of state versus federal income tax expense and taxes paid. The amendments in this guidance are effective for annual periods beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact this guidance will have on our financial statement disclosures.

Revenue from Contracts with Cus

Revenue from Contracts with Customers	3 Months Ended
Revenue from Contracts with Customers	Mar. 31, 2024
Revenue from Contracts with Customers
Revenue from Contracts with Customers	3. The following table summarizes revenues from our contracts disaggregated by revenue generating activity contained therein for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, (in thousands) 2024 2023 Dayrate drilling $ 41,645 $ 60,242 Mobilization 1,831 1,371 Reimbursables 3,077 1,902 Early termination 53 — Capital modification — 218 Other 30 23 Total revenue $ 46,636 $ 63,756 Two customers accounted for approximately 25% and 15% of consolidated revenue for the three months ended March 31, 2024. Three customers accounted for approximately 14%, 12%, and 11% of consolidated revenue for the three months ended March 31, 2023. Accounts receivable is our right to consideration once it becomes unconditional. Payment terms typically range from . The following table provides information about receivables and contract liabilities related to contracts with customers. There were March 31, December 31, (in thousands) 2024 2023 Receivables, which are included in “Accounts receivable” $ 26,869 $ 31,380 Contract liabilities, which are included in “Accrued liabilities” $ (614) $ (578) The primary changes in contract liabilities balances during the period are as follows: Three Months Ended March 31, (in thousands) 2024 2023 Revenue recognized that was included in contract liabilities at beginning of period $ 431 $ 540 Increase in contract liabilities due to cash received, excluding amounts recognized as revenue $ (467) $ (751) The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of March 31, 2024. The estimated revenue does not include amounts of variable consideration that are constrained. Year Ending December 31, (in thousands) 2024 2025 2026 2027 Revenue $ 614 $ — $ — $ — The amounts presented in the table above consist only of fixed consideration related to fees for rig mobilizations and demobilizations, if applicable, which are allocated to the drilling services performance obligation as such performance obligation is satisfied. We have elected the exemption from disclosure of remaining performance obligations for variable consideration. Therefore, dayrate revenue to be earned on a rate scale associated with drilling conditions and level of service provided for each fractional-hour time increment over the contract term and other variable consideration such as penalties and reimbursable revenues, have been excluded from the disclosure. Contract Costs We capitalize costs incurred to fulfill our contracts that (i) relate directly to the contract, (ii) are expected to generate resources that will be used to satisfy our performance obligations under the contract and (iii) are expected to be recovered through revenue generated under the contract. These costs, which principally relate to rig mobilization costs at the commencement of a new contract, are deferred as a current or noncurrent asset (depending on the length of the contract term), and amortized ratably to contract drilling expense as services are rendered over the initial term of the related drilling contract. Such contract costs, recorded as “Prepaid expenses and other current assets”, amounted to $0.6 million and $0.5 million on our consolidated balance sheets at March 31, 2024 and December 31, 2023, respectively. During the three months ended March 31, 2024, contract costs increased by $1.1 million and we amortized $1.0 million of contract costs, respectively. During the three months ended March 31, 2023, contract costs increased by $0.9 million and we amortized $0.5 million of contract costs

Leases

Leases	3 Months Ended
Leases	Mar. 31, 2024
Leases [Abstract]
Leases	4. We have multi-year operating and financing leases for corporate office space, field location facilities, land, vehicles and various other equipment used in our operations. We also have a significant number of rentals related to our drilling operations that are day-to-day or month-to-month arrangements. The components of lease expense were as follows: Three Months Ended March 31, (in thousands) 2024 2023 Operating lease expense $ 299 $ 191 Short-term lease expense 2,143 1,730 Variable lease expense 127 162 Finance lease expense: Amortization of right-of-use assets $ 467 $ 555 Interest expense on lease liabilities 73 73 Total finance lease expense 540 628 Total lease expense $ 3,109 $ 2,711 Supplemental cash flow information related to leases is as follows: Three Months Ended March 31, (in thousands) 2024 2023 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 253 $ 196 Operating cash flows from finance leases $ 73 $ 73 Financing cash flows from finance leases $ 507 $ 650 Right-of-use assets obtained or recorded in exchange for lease obligations: Operating leases $ 75 $ 618 Finance leases $ 1,513 $ 51 Supplemental balance sheet information related to leases is as follows: (in thousands) March 31, 2024 December 31, 2023 Operating leases: Other long-term assets, net $ 2,029 $ 2,205 Accrued liabilities $ 889 $ 934 Other long-term liabilities 1,242 1,375 Total operating lease liabilities $ 2,131 $ 2,309 Finance leases: Property, plant and equipment $ 5,931 $ 6,238 Accumulated depreciation (1,734) (1,829) Property, plant and equipment, net $ 4,197 $ 4,409 Current portion of long-term debt $ 1,525 $ 1,226 Long-term debt 2,204 1,659 Total finance lease liabilities $ 3,729 $ 2,885 Weighted-average remaining lease term Operating leases 3.2 years 3.4 years Finance leases 2.2 years 2.0 years Weighted-average discount rate Operating leases 8.60 % 8.75 % Finance leases 7.95 % 8.25 % Maturities of lease liabilities at March 31, 2024 were as follows: (in thousands) Operating Leases Finance Leases 2024 $ 840 1,395 2025 540 1,486 2026 401 1,118 2027 370 97 2028 285 — Total cash lease payment 2,436 4,096 Less: imputed interest (305) (367) Total lease liabilities $ 2,131 $ 3,729

Financial Instruments and Fair

Financial Instruments and Fair Value	3 Months Ended
Financial Instruments and Fair Value	Mar. 31, 2024
Financial Instruments and Fair Value
Financial Instruments and Fair Value	5. Fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, there exists a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1 Unadjusted quoted market prices for identical assets or liabilities in an active market; Level 2 Quoted market prices for identical assets or liabilities in an active market that have been adjusted for items such as effects of restrictions for transferability and those that are not quoted but are observable through corroboration with observable market data, including quoted market prices for similar assets or liabilities; and Level 3 Unobservable inputs for the asset or liability only used when there is little, if any, market activity for the asset or liability at the measurement date. This hierarchy requires us to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. Our financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, certain accrued liabilities and our debt. Our debt consists primarily of our Convertible Notes and Revolving ABL Facility as of March 31, 2024 and December 31, 2023. The fair value of cash and cash equivalents, accounts receivable, accounts payable and certain accrued liabilities approximate their carrying value because of the short-term nature of these instruments. We believe the carrying value of our Revolving ABL Facility approximates fair value because the interest rates are variable and reflective of current market rates. The following table summarizes the carrying value and fair value of our Convertible Notes as of March 31, 2024 and December 31, 2023. March 31, 2024 December 31, 2023 Carrying Fair Carrying Fair (in thousands) Value Value Value Value Convertible Notes $ 189,023 $ 151,000 $ 179,209 $ 164,800 The fair value of the Convertible Notes is also determined to be a Level 3 measurement as this instrument is not actively traded and was estimated using a binomial lattice model. The factors used to determine fair value as of March 31, 2024 are subject to management's judgement and expertise and include, but are not limited to our share price, expected price volatility (48.0%), risk-free rate (4.6%), and credit spread (2,855 bps) relative to our credit rating. The factors used to determine fair value as of December 31, 2023 included, but were not limited to our share price, expected price volatility ( There were no transfers between fair value measurement levels during the first quarter of 2024. See Note 9 “Stock-Based Compensation” Fair value measurements are applied with respect to our non-financial assets and liabilities measured on a non-recurring basis, which would consist of measurements primarily related to the potential impairment of long-lived assets.

Inventories

Inventories	3 Months Ended
Inventories	Mar. 31, 2024
Inventories
Inventories	6. All of our inventory as of March 31, 2024 and December 31, 2023 consisted of supplies held for use in our drilling operations.

Supplemental Balance Sheet Info

Supplemental Balance Sheet Information	3 Months Ended
Supplemental Balance Sheet Information	Mar. 31, 2024
Supplemental Balance Sheet Information
Supplemental Balance Sheet Information	7. Prepaid expenses and other current assets consisted of the following: (in thousands) March 31, 2024 December 31, 2023 Prepaid insurance $ 2,390 $ 3,502 Deferred mobilization costs 591 467 Prepaid and other current assets 716 790 $ 3,697 $ 4,759 Accrued liabilities consisted of the following: (in thousands) March 31, 2024 December 31, 2023 Accrued salaries and other compensation $ 2,643 $ 6,625 Insurance 1,859 2,996 Deferred mobilization revenues 614 578 Property and other taxes 1,617 2,124 Interest 46 25 Operating lease liability - current 889 934 Cash-settled SARs liability 1,183 2,054 Other 932 1,035 $ 9,783 $ 16,371

Long-term Debt

Long-term Debt	3 Months Ended
Long-term Debt	Mar. 31, 2024
Long-term Debt.
Long-term Debt	8. Our long-term debt consisted of the following: (in thousands) March 31, 2024 December 31, 2023 Convertible Notes due March 18, 2026 $ 189,023 $ 179,209 Revolving ABL Credit Facility due September 30, 2025 8,250 5,500 Finance lease obligations 3,729 2,885 201,002 187,594 Less: Convertible Notes debt discount and issuance costs (29,099) (31,819) Less: current portion of finance leases (1,525) (1,226) Long-term debt, net $ 170,378 $ 154,549 Convertible Notes On March 18, 2022, we entered into a subscription agreement with affiliates of MSD Partners, L.P. and an affiliate of Glendon Capital Management L.P. (the “Subscription Agreement”) for the placement of $157.5 million aggregate principal amount of convertible secured PIK toggle notes due 2026 (the “Convertible Notes”), and currently have $189.0 million of Convertible Notes outstanding as of March 31, 2024. The Convertible Notes were issued pursuant to an Indenture, dated as of March 18, 2022 (the “Indenture”). The obligations under the Convertible Notes are secured by a first priority lien on collateral other than accounts receivable, deposit accounts and other related collateral pledged as first priority collateral (“Priority Collateral”) under the Revolving ABL Credit Facility (defined below). The Convertible Notes mature on March 18, 2026. The Convertible Notes have a cash interest rate of the Secured Overnight Financing Rate plus a 10-basis point credit spread, with a floor of 1% (collectively, “SOFR”) plus 12.5%. The Convertible Notes have a PIK interest rate of SOFR plus 9.5%. We have the right at our option, to PIK interest under the Convertible Notes for the entire term of the Convertible Notes. Interest on the Convertible Notes is due on March 31 and September 30 each year. We elected to PIK outstanding interest as of September 30, 2022, March 31, 2023, September 30, 2023 and March 31, 2024 resulting in the issuance of an additional $50.0 million principal amount of Convertible Notes as of March 31, 2024. We also have elected to PIK outstanding interest that will be due and payable on September 30, 2024. As of March 31, 2024 and December 31, 2023, accrued PIK interest of $0.1 million and $6.8 million, respectively, was classified as “Other Long-Term Liabilities” on our consolidated balance sheets. The effective conversion price of the Convertible Notes is $4.51 per share (221.72949 shares of Common Stock per $1,000 principal amount of Convertible Notes). We may issue up to Each noteholder has a right to convert our Convertible Notes into shares of ICD common stock at any time after issuance through maturity. The conversion price is $4.51 per share. Under the Indenture, a holder is not entitled to receive shares of our common stock upon conversion of any Convertible Notes to the extent to which the aggregate number of shares of common stock that may be acquired by such beneficial owner upon conversion of Convertible Notes, when added to the aggregate number of shares of common stock deemed beneficially owned, directly or indirectly, by such beneficial owner and each person subject to aggregation of Common Stock with such beneficial owner under Section 13 or Section 16 of the Securities Exchange Act of 1934 (the “Exchange Act”) and the rules promulgated thereunder at such time (an “Aggregated Person”) (other than by virtue of the ownership of securities or rights to acquire securities that have limitations on such beneficial owner’s or such person’s right to convert, exercise or purchase similar to this limitation), as determined pursuant to the rules and regulations promulgated under Section 13(d) of the Exchange Act, would exceed 9.9% (the “Restricted Ownership Percentage”) of the total issued and outstanding shares of Common Stock (the “Section 16 Conversion Blocker”); provided that any holder has the right to elect for the Restricted Ownership Percentage to be 19.9% with respect to such Holder, (x) at any time, in which case, such election will become effective sixty-one days following written notice thereof to us or (y) in the case of a holder acquiring Convertible Notes on the Issue Date, in such Holder’s Subscription Agreement. In lieu of any shares of common stock not delivered to a converting holder by operation of the Restricted Ownership Percentage limitation, we will deliver to such Holder Pre-Funded Warrants in respect of any equal number of shares of common stock. Such Pre-Funded Warrants will contain substantially similar Restricted Ownership Percentage terms. The Indenture includes a mandatory redemption offer requirement (the “Mandatory Offer Requirement”). The mandatory offer price is an amount in cash equal to the principal amount of such Note plus accrued and unpaid interest on such Note. We redeemed $5.0 million of Convertible Notes plus accrued interest on a quarterly basis June 30, 2023 through December 31, 2023, and redeemed $3.5 million of Convertible Notes plus accrued interest on March 31, 2024. We are obligated to offer to redeem $3.5 million of Convertible Notes on a quarterly basis through March 31, 2025. We have the ability and intent to refinance the mandatory redemption offers that occur within the next twelve months under our Revolving ABL Credit Facility and as a result such amounts have been classified as long-term debt. On each of the mandatory offer payment dates we borrowed the principal amount of such note under our Revolving ABL Credit Facility to refinance the accepted mandatory offerings. The Indenture contains financial covenants, including a liquidity covenant of $10.0 million; a springing fixed charge coverage ratio covenant of 1.00 to 1.00 that is tested when availability under the Revolving ABL Credit Facility (defined below) is below $5.0 million at any time that the Convertible Notes are outstanding; and capital expenditure limits of $14.8 million during the nine months ended September 30, 2024 and $11.25 million during the nine months ended June 30, 2025, subject to adjustment upward by $500,000 per year for each rig above 17 that operates during each year. In addition, capital expenditures are excluded from this covenant (a) if funded from equity proceeds, (b) if relating to the reactivation of a rig so long as (i) we have a signed contract with a customer with respect to each such rig of at least one year duration providing for early termination payments consistent with past practice equal to at least the expected margin on the contract, (ii) the expected margin on such rig contract will be equal to or exceed such reactivation capital expenditures, and (iii) the reactivation capital expenditures, rig contract and the expected margin calculation are approved by our board of directors or (c) relate to other capital expenditures specifically approved by written or electronic consent by both (i) the required holders (which approval may, for the avoidance of doubt, be provided by the required holders in their sole discretion for an amount of capital expenditures to be committed or made by us or a subsidiary of us within 90 days after the date of such consent) and (ii) our Board of Directors. The Indenture also contains other customary affirmative and negative covenants, including limitations on indebtedness, liens, fundamental changes, asset dispositions, restricted payments (including the payment of dividends), investments and transactions with affiliates. The Indenture also provides for customary events of default, including breaches of material covenants, defaults under the Revolving ABL Credit Facility or other material agreements for indebtedness, and a change of control. At any time on or after September 18, 2024, we may execute an in-substance defeasance of the Convertible Notes and suspend all covenants and related security interests in the Company’s equipment and assets under the Indenture by irrevocably depositing with the trustee funds sufficient funds to pay the principal and interest on the outstanding Convertible Notes through the maturity date of the Convertible Notes. Our Board of Directors has initiated a formal review process to begin evaluating alternatives with respect to refinancing the Convertible Notes and other strategic opportunities and has formed a special committee of independent directors for that purpose. There can be no assurance that this process or evaluation will result in one or more transactions or any particular transaction or strategic outcome. We are in compliance with our covenants as of March 31, 2024. Upon a Qualified Merger (defined below), we may elect to convert all, but not less than all, of the Convertible Notes at a Conversion Rate equal to our Conversion Rate on the date on which the relevant “Qualified Merger” is consummated (a “Qualified Merger Conversion”), so long as the “MOIC Condition” is satisfied with respect to such potential Qualified Merger Conversion. A “Qualified Merger” means a Common Stock Change Event consolidation, merger, combination or binding or statutory share exchange of the Company with a Qualified Acquirer. A “Qualified Merger Conversion Date” means the date on which the relevant Qualified Merger is consummated. A “Qualified Acquirer” means any entity that (i) has its common equity listed on the New York Stock Exchange, the NYSE American, Nasdaq Global Market or Nasdaq Global Select Market, or Toronto Stock Exchange, (ii) has an aggregate equity market capitalization of at least $350 million, and (iii) has a “public float” (as defined in Rule 12b-2 under the Securities Act of 1933) of at least $250 million in each case, as determined by the calculation agent based on the last reported sale price of such common equity on date of the signing of the definitive agreement in respect of the relevant Common Stock Change Event. A “Common Stock Change Event” means the occurrence of any: (i) recapitalization, reclassification or change of our common stock (other than (x) changes solely resulting from a subdivision or combination of the common stock, (y) a change only in par value or from par value to no par value or no par value to par value and (z) stock splits and stock combinations that do not involve the issuance of any other series or class of securities); (ii) consolidation, merger, combination or binding or statutory share exchange involving us; (iii) sale, lease or other transfer of all or substantially all of the assets of ours and our Subsidiaries, taken as a whole, to any person; or (iv) other similar event, and, as a result of which, the common stock is converted into, or is exchanged for, or represents solely the right to receive, other securities, cash or other property, or any combination of the foregoing. A “Company Conversion Rate” means, in respect of any Qualified Merger, the greater of (a) the relevant Conversion Rate, (b) (5) VWAP Trading Days prior to the earlier of signing or public announcement (by any party, and whether formal or informal, including for the avoidance of doubt any media reports thereof) of a definitive agreement in respect of such Qualified Merger as calculated by the Calculation Agent. The “MOIC Condition” means, with respect to any potential Qualified Merger Conversion, MOIC is greater than or equal to the MOIC Required Level. The “MOIC Required Level” means We recorded a debt discount of $37.8 million upon the issuance of the Convertible Notes and issuance costs consisting of cash fees of $7.4 million and a non-cash structuring fee settled in shares of $2.3 million. The debt discount and issuance costs are recorded as a direct deduction from the Convertible Notes in the consolidated balance sheets and are amortized to interest expense using the effective interest rate method over the term of the Convertible Notes. The effective interest rate for the Convertible Notes as of March 31, 2024 is 25.7% . For the three months ended March 31, 2024, the contractual interest expense was $6.9 million and the debt discount and issuance cost amortization was $2.7 million. For the three months ended March 31, 2023, the contractual interest expense was $5.9 million and the debt discount and issuance cost amortization was $2.4 million. Revolving ABL Credit Facility On October 1, 2018, we entered into a $40.0 million revolving credit agreement (the “Revolving ABL Credit Facility”), including availability for letters of credit in an aggregate amount at any time outstanding not to exceed $7.5 million. Availability under the Revolving ABL Credit Facility is subject to a borrowing base calculated based on 85% of the net amount of our eligible accounts receivable, minus reserves. The Revolving ABL Credit Facility has a maturity date of September 30, 2025. Interest under the Revolving ABL Credit Facility is determined by reference, at our option, to either (i) a “base rate” equal to the higher of (a) the floor, or 0.0%, (b) the federal funds effective rate plus 0.05%, (c) term SOFR for a one month tenor plus 1.0% based on availability and (d) the prime rate of Wells Fargo, plus in each case, an applicable base rate margin ranging from 1.0% to 1.5% based on quarterly availability, or (ii) a revolving loan rate equal to SOFR for the applicable interest period plus an applicable SOFR margin ranging from 2.36% to 2.86% based on quarterly availability. We also pay, on a quarterly basis, a commitment fee of 0.375% (or 0.25% at any time when revolver usage is greater than 50% of the maximum credit) per annum on the unused portion of the Revolving ABL Credit Facility commitment. The Revolving ABL Credit Facility contains a springing fixed charge coverage ratio covenant of 1.00 to 1.00 that is tested when availability is less than 10% of the maximum credit. The Revolving ABL Credit Facility also contains other customary affirmative and negative covenants, including limitations on indebtedness, liens, fundamental changes, asset dispositions, restricted payments (including the payment of dividends), investments and transactions with affiliates. The Revolving ABL Credit Facility also provides for customary events of default, including breaches of material covenants, defaults under the Indenture or other material agreements for indebtedness, and a change of control. We are in compliance with our financial covenants as of March 31, 2024. The obligations under the Revolving ABL Credit Facility are secured by a first priority lien on Priority Collateral, which includes all accounts receivable and deposit accounts, and a second priority lien on the Indenture, and are unconditionally guaranteed by all of our current and future direct and indirect subsidiaries. As of March 31, 2024, the weighted-average interest rate on our borrowings was 14.87%. As of March 31, 2024, the borrowing base under our Revolving ABL Credit Facility was $21.9 million, and we had $13.5 million of availability remaining of our $40.0 million commitment on that date.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
Stock-Based Compensation	Mar. 31, 2024
Stock-Based Compensation
Stock-Based Compensation	9. In June 2019, we adopted the 2019 Omnibus Incentive Plan (the “2019 Plan”) providing for common stock-based awards to employees and non-employee directors. The 2019 Plan permits the granting of various types of awards, including stock options, restricted stock, restricted stock unit awards, and stock appreciation rights (“SARs”), and up to 4.6 million shares were authorized for issuance. Restricted stock and restricted stock units may be granted for no consideration other than prior and future services. The purchase price per share for stock options and SARs may not be less than the market price of the underlying stock on the date of grant. As of March 31, 2024, approximately 306,008 shares were available for future awards under the 2019 Plan. Our policy is to account for forfeitures of share-based compensation awards as they occur. A summary of compensation cost recognized for stock-based payment arrangements is as follows: Three Months Ended March 31, (in thousands) 2024 2023 Compensation cost recognized: Restricted stock, restricted stock units and stock-settled stock appreciation rights $ 1,026 $ 1,374 Cash-settled stock appreciation rights and performance-based phantom units (810) 298 Total stock-based compensation $ 216 $ 1,672 Time-based Restricted Stock and Restricted Stock Units We have granted time-based restricted stock and restricted stock units to key employees under the 2019 Plan. Time-based Restricted Stock In the first quarter of 2024, we granted time-based restricted stock awards that vest over one A summary of the status of our time-based restricted stock awards and of changes in our time-based restricted stock awards outstanding for the three months ended March 31, 2024 is as follows: Weighted Average Grant-Date Fair Value Shares Per Share Outstanding at January 1, 2024 — $ — Granted 692,607 1.88 Vested — — Forfeited — — Outstanding at March 31, 2024 692,607 $ 1.88 Time-based Restricted Stock Units We have granted one A summary of the status of our time-based restricted stock unit awards and of changes in our time-based restricted stock unit awards outstanding for the three months ended March 31, 2024 is as follows: Weighted Average Grant-Date Fair Value RSUs Per Share Outstanding at January 1, 2024 753,180 $ 4.10 Granted — — Vested and converted (151,818) 4.02 Forfeited (4,221) 4.13 Outstanding at March 31, 2024 597,141 $ 4.12 Performance-Based and Market-Based Restricted Stock Units In the first quarter of 2023, we granted certain employees 299,411 three-year performance-based restricted stock unit awards with a market condition. Based on target shares of performance period of January 1, 2023 to December 31, 2025 and vest fully on the third anniversary of the date of the grant subject to continued employment. The payout of the awards will be further adjusted by a TSR multiplier that may adjust the payout between -company peer group of oilfield service companies for the same period. As these awards are performance-based with a market condition, we utilized a Monte Carlo simulation model to determine grant date fair value per share. During the restriction period, the performance-based and market-based restricted stock unit awards may not be transferred or encumbered, and the recipient does not receive dividend equivalents or have voting rights until the units vest. As of March 31, 2024, there was $0.3 million of unrecognized compensation cost related to unvested performance-based and market-based restricted stock unit awards, which is expected to be recognized over a weighted-average period of 1.8 years. The assumptions used to value our FCF restricted stock unit awards on the grant date in the first quarter of 2023 were a risk-free interest rate of 4.15%, an expected volatility of 135.3% and an expected dividend yield of 0.0% . Based on the Monte Carlo simulation, these restricted stock unit awards were valued at A summary of the status of our performance-based and market-based restricted stock unit awards and of changes in our restricted stock unit awards outstanding for the three months ended March 31, 2024 is as follows: Weighted Average Grant-Date Fair Value RSUs Per Share Outstanding at January 1, 2024 299,411 $ 4.47 Granted — — Vested and converted (1,987) 4.47 Forfeited (102,604) 4.47 Outstanding at March 31, 2024 194,820 $ 4.47 Phantom Units In the first quarter of 2024, we granted 279,630 three-year time-vested phantom unit awards where each unit represents the right to receive, at the end of a vesting period, the cash value of one share of ICD common stock. The phantom units are cash-settled awards and are accounted for as a liability classified award. The grant date fair value of the phantom units was period, with the amount recognized fluctuating as a result of the phantom units being remeasured to fair value at the end of each reporting period due to their liability-award classification. We recognized $16.0 thousand of compensation expense in the three months ended March 31, 2024. In the first quarter of 2024, we granted independent directors 66,664 one-year time-vested phantom unit awards where each unit represents the right to receive, at the end of a vesting period, the cash value of one share of ICD common stock. The phantom units are cash-settled awards and are accounted for as a liability classified award. The grant date fair value of the phantom units was In the first quarter of 2024, we granted 1,306,415 three-year performance-based phantom units with a market condition. Based on target shares of performance period of January 1, 2024 to December 31, 2026 and vest fully on the third anniversary of the date of the grant subject to continued employment. The payout of the awards will be further adjusted by a TSR multiplier that may adjust the payout upward or downward by up to -company peer group of oilfield service companies for the same period. The phantom units are cash-settled awards and are accounted for as a liability classified award. The grant date fair value of the phantom units at target was In the first quarter of 2023, we granted 94,708 three-year time-vested phantom unit awards where each unit represents the right to receive, at the end of a vesting period, the cash value of one share of ICD common stock. In the first quarter of 2024, 32,544 shares vested and were cash-settled. As of March 31, 2024, there were unvested shares outstanding. The phantom units are cash-settled awards and are accounted for as a liability classified award. The grant date fair value of the phantom units was In the first quarter of 2023, we granted independent directors 41,665 one-year time-vested phantom unit awards where each unit represents the right to receive, at the end of a vesting period, the cash value of one share of ICD common stock. As of December 31, 2023, there were 33,332 unvested shares outstanding. In the first quarter of 2024, 33,332 shares vested. As of March 31, 2024, there were unvested shares outstanding. The phantom units are cash-settled awards and are accounted for as a liability classified award. The grant date fair value of the phantom units was In the first quarter of 2023, we granted 149,709 three-year performance-based phantom units with a market condition. Based on target shares of performance period of January 1, 2023 to December 31, 2025 and vest fully on the third anniversary of the date of grant subject to continued employment. The payout of the awards will be further adjusted by a TSR multiplier that may adjust the payout between -company peer group of oilfield service companies for the same period. In the first quarter of 2024, shares were forfeited. As of March 31, 2024, there were unvested shares outstanding. The phantom units are cash-settled awards and are accounted for as a liability classified award. The grant date fair value of the phantom units was being remeasured to fair value at the end of each reporting period due to their liability-award classification. We recognized $9.0 thousand of compensation expense in the three months ended March 31, 2024. Time-Based Stock-Settled Stock Appreciation Rights In the second quarter of 2022, we granted time-based, stock-settled stock appreciation rights (“SARs”) to certain employees. The SARs have a term of seven years, an exercise price of $5.19 per share, and vested one The assumptions used in calculating the fair value of time-based stock-settled SARs as of the grant date were a risk-free interest rate of 3.03%, an expected volatility factor of 103.3% and an expected dividend yield of 0.0%. Changes to our time-based stock-settled SARs outstanding during the three months ended March 31, 2024 are as follows: Weighted Average Grant Date Fair Value Stock-settled SARs Per Share Outstanding at January 1, 2024 1,421,740 $ 2.83 Granted — — Exercised — — Forfeited/Expired — — Outstanding at March 31, 2024 1,421,740 $ 2.83 Exercisable at March 31, 2024 947,826 $ 2.83 Non-vested at January 1, 2024 592,391 $ 2.83 Vested (118,477) 2.83 Non-vested at March 31, 2024 473,914 $ 2.83 Time-Based Cash-Settled Stock Appreciation Rights In the first quarter of 2021, we granted time-based, cash-settled stock appreciation rights (“SARs”) to certain employees. The SARs have a term of seven years, an exercise price of $5.73 per share, with the market price upon exercise capped at $10.00 per share, and vest ratably on the first, second and third anniversaries of the date of grant. Because these SARs are cash-settled, they are classified as “liability-classified awards” which are remeasured at their fair value at the end of each reporting period until settlement. As of March 31, 2024 and December 31, 2023, we have recorded a liability, classified as “Accrued Liabilities” on our consolidated balance sheets, of Time-based, cash-settled SARs have no effect on dilutive shares or shares outstanding as any appreciation of our common stock over the exercise price is paid in cash and not in common stock. The fair value of time-based cash-settled SARs is revalued (mark-to-market) each reporting period using a Monte Carlo simulation model based on period-end stock price. Expected term of the SARs is calculated as the average of each vesting tranche’s midpoint between vesting date and expiration date plus the vesting period. Expected volatility is based on the historical volatility of our stock for the length of time corresponding to the expected term of the SARs. The risk-free interest rate is based on the U.S. treasury yield curve in effect as of the reporting date for the length of time corresponding to the expected term of the SARs. The following weighted-average assumptions were used in calculating the fair value of the time-based cash-settled SARs using the Monte Carlo simulation model: Three Months Ended Year Ended March 31, 2024 December 31, 2023 Remaining term to maturity 3.9 years 4.1 years Expected volatility factor 82.9 % 119.5 % Expected dividend yield — % — % Risk-free interest rate 4.27 % 3.88 % Changes to our time-based cash-settled SARs outstanding during the three months ended March 31, 2024 are as follows: Weighted Average Exercise Price Cash-settled SARs Per Share Outstanding at January 1, 2024 2,885,722 $ 5.73 Granted — — Exercised — — Forfeited/Expired — — Outstanding at March 31, 2024 2,885,722 $ 5.73 Exercisable at March 31, 2024 2,885,722 $ 5.73 As of March 31, 2024, there was zero unrecognized compensation cost related to time-based cash-settled SARs.

Stockholders' Equity and Earnin

Stockholders' Equity and Earnings (Loss) per Share	3 Months Ended
Stockholders' Equity and Earnings (Loss) per Share	Mar. 31, 2024
Stockholders' Equity and Earnings (Loss) per Share
Stockholders' Equity and Earnings (Loss) per Share	10. As of March 31, 2024, we had a total of 15,213,277 shares of common stock, $0.01 par value, outstanding. We also had 156,259 shares held as treasury stock. Total authorized common stock is 250,000,000 shares. Basic earnings (loss) per common share (“EPS”) are computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS are computed by dividing net income (loss) available to common stockholders by the weighted-average number of common shares outstanding during the period, including potential dilutive securities. When the Convertible Notes are dilutive, interest expense, net of tax, is added back to net income to calculate diluted EPS. A reconciliation of the numerators and denominators of the basic and diluted losses per share computations is as follows: Three Months Ended March 31, (in thousands, except per share data) 2024 2023 Net (loss) income (numerator): $ (8,986) $ 12 (Loss) income per share: Basic $ (0.62) $ 0.00 Diluted $ (0.62) $ 0.00 Shares (denominator): Weighted average common shares outstanding - basic 14,504 13,865 Weighted average common shares outstanding - diluted 14,504 13,881 The following number of potential common shares at the end of each period were excluded from the calculation of diluted EPS because their effect would have been anti-dilutive for the periods presented. Three Months Ended March 31, (in thousands) 2024 2023 Potentially dilutive securities excluded as anti-dilutive 40,453 39,230

Income Taxes

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2024
Income Taxes
Income Taxes	11. Our effective income tax rate fluctuates from the U.S. statutory tax rate based on, among other factors, changes in pretax income in jurisdictions with varying statutory tax rates, the impact of U.S. state and local taxes, the realizability of deferred tax assets and other differences related to the recognition of income and expense between GAAP and tax accounting. Our effective tax rate was 2.5% for the three months ended March 31, 2024 and (20.0)% for the three months ended March 31, 2023. Our effective tax rate for the three months ended March 31, 2024 and 2023 differed from the statutory federal income tax rate primarily due to the impact of the change in valuation allowance on deferred tax assets, state taxes, and permanent items related to certain debt items that are expensed for book purposes but are not deductible for tax purposes. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized, and when necessary, valuation allowances are recorded. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We assess the realizability of our deferred tax assets quarterly and consider carryback availability, the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. In the first quarter of 2024, the effective tax rate takes into consideration the estimated valuation allowance based on forecasted 2024 income. We continue to monitor income tax developments in the United States. We will incorporate into our future financial statements the impacts, if any, of future regulations and additional authoritative guidance when finalized.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2024
Commitments and Contingencies.
Commitments and Contingencies	12. Purchase Commitments As of March 31, 2024, we had outstanding purchase commitments to a number of suppliers totaling $5.1 million related primarily to the operation of drilling rigs. All of these commitments relate to equipment and services currently scheduled for delivery in 2024. Contingencies We may be the subject of lawsuits and claims arising in the ordinary course of business from time to time. Management cannot predict the ultimate outcome of such lawsuits and claims. While lawsuits and claims are asserted for amounts that may be material should an unfavorable outcome be the result, management does not currently expect that the outcome of any of these known legal proceedings or claims will have a material adverse effect on our financial position or results of operations.

Defined Contribution Plan

Defined Contribution Plan	3 Months Ended
Defined Contribution Plan	Mar. 31, 2024
Defined Contribution Plan
Defined Contribution Plan	13. Substantially all employees may elect to participate in our 401(k) plan by contributing a portion of their earnings. We contribute an amount equal to 100 percent of the first six percent of the participant’s compensation subject to certain limitations. The expense incurred for this defined contribution plan was $0.4 million for three months ended March 31, 2024. The expense incurred for this defined contribution plan for the three months ended March 31, 2023 was

Related Parties

Related Parties	3 Months Ended
Related Parties	Mar. 31, 2024
Related Parties
Related Parties	14. In connection with the issuance of the Convertible Notes on March 18, 2022, we issued to affiliates of MSD Partners, L.P. (the “MSD Investors”) $78.9 million principal amount of Convertible Notes and entered into an Investor’s Rights Agreement permitting MSD Partners to nominate one director to our Board so long as MSD Partners and its affiliates continue to own $25.0 million principal amount of Convertible Notes (the “Sunset Date”). We also entered into an Investor’s Rights Agreement with Glendon Capital Management L.P. (“GCM”) that permits GCM to designate director, provided that the third representative must be an independent director unless one of the MSD Partners and the GCM representatives is independent for New York Stock Exchange purposes. The proposed representatives are subject to review by our Nominating and Corporate Governance Committee. Following the Sunset Date for the applicable party, MSD Partners and/or GCM, as applicable, will cause its designee to offer to tender his or her resignation, unless otherwise requested by the Board, and the third representative may be removed by the Board. members effective July 1, 2022.

Interim Financial Information (

Interim Financial Information (Policies)	3 Months Ended
Interim Financial Information (Policies)	Mar. 31, 2024
Interim Financial Information
Basis of Presentation	These unaudited consolidated financial statements include the accounts of the Company and its subsidiary and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). These consolidated financial statements should be read along with our audited consolidated financial statements for the year ended December 31, 2023, included in our Annual Report on Form 10-K for the year ended December 31, 2023. In management’s opinion, these financial statements contain all adjustments necessary for a fair statement of our financial position, results of operations, cash flows and changes in stockholders’ equity for all periods presented. As we had no items of other comprehensive income in any period presented, no other components of comprehensive income are presented. Interim results for the three months ended March 31, 2024
Segment and Geographical Information	Segment and Geographical Information Our operations consist of one reportable segment because all of our drilling operations are located in the United States and have similar economic characteristics. Corporate management administers all properties as a whole rather than as discrete operating segments. Operational data is tracked by rig; however, financial performance is measured as a single enterprise and not on a rig-by-rig basis. Further, the allocation of capital resources is employed on a project-by-project basis across our entire asset base to maximize profitability without regard to individual geographic areas.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . This guidance requires an entity to disclose significant segment expenses impacting profit and loss that are regularly provided to the Chief Operating Decision Maker (“CODM”) to assess segment performance and to make decisions about resource allocations. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We do not expect the standard to have a material impact on our financial statement disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . This guidance requires that an entity disclose specific categories in the effective tax rate reconciliation as well as provide additional information for reconciling items that meet a quantitative threshold. Also, this guidance requires certain disclosures of state versus federal income tax expense and taxes paid. The amendments in this guidance are effective for annual periods beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact this guidance will have on our financial statement disclosures.

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	3 Months Ended
Revenue from Contracts with Customers (Tables)	Mar. 31, 2024
Revenue from Contracts with Customers
Disaggregation of Revenue	The following table summarizes revenues from our contracts disaggregated by revenue generating activity contained therein for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, (in thousands) 2024 2023 Dayrate drilling $ 41,645 $ 60,242 Mobilization 1,831 1,371 Reimbursables 3,077 1,902 Early termination 53 — Capital modification — 218 Other 30 23 Total revenue $ 46,636 $ 63,756
Summary of Contract with Customer, Asset and Liability	Accounts receivable is our right to consideration once it becomes unconditional. Payment terms typically range from . The following table provides information about receivables and contract liabilities related to contracts with customers. There were March 31, December 31, (in thousands) 2024 2023 Receivables, which are included in “Accounts receivable” $ 26,869 $ 31,380 Contract liabilities, which are included in “Accrued liabilities” $ (614) $ (578) The primary changes in contract liabilities balances during the period are as follows: Three Months Ended March 31, (in thousands) 2024 2023 Revenue recognized that was included in contract liabilities at beginning of period $ 431 $ 540 Increase in contract liabilities due to cash received, excluding amounts recognized as revenue $ (467) $ (751)
Estimated Revenue Expected to be Recognized in the Future	The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of March 31, 2024. The estimated revenue does not include amounts of variable consideration that are constrained. Year Ending December 31, (in thousands) 2024 2025 2026 2027 Revenue $ 614 $ — $ — $ —

Leases (Tables)

Leases (Tables)	3 Months Ended
Leases (Tables)	Mar. 31, 2024
Leases [Abstract]
Lease, cost	The components of lease expense were as follows: Three Months Ended March 31, (in thousands) 2024 2023 Operating lease expense $ 299 $ 191 Short-term lease expense 2,143 1,730 Variable lease expense 127 162 Finance lease expense: Amortization of right-of-use assets $ 467 $ 555 Interest expense on lease liabilities 73 73 Total finance lease expense 540 628 Total lease expense $ 3,109 $ 2,711 Supplemental cash flow information related to leases is as follows: Three Months Ended March 31, (in thousands) 2024 2023 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 253 $ 196 Operating cash flows from finance leases $ 73 $ 73 Financing cash flows from finance leases $ 507 $ 650 Right-of-use assets obtained or recorded in exchange for lease obligations: Operating leases $ 75 $ 618 Finance leases $ 1,513 $ 51
Assets and liabilities, lessee	Supplemental balance sheet information related to leases is as follows: (in thousands) March 31, 2024 December 31, 2023 Operating leases: Other long-term assets, net $ 2,029 $ 2,205 Accrued liabilities $ 889 $ 934 Other long-term liabilities 1,242 1,375 Total operating lease liabilities $ 2,131 $ 2,309 Finance leases: Property, plant and equipment $ 5,931 $ 6,238 Accumulated depreciation (1,734) (1,829) Property, plant and equipment, net $ 4,197 $ 4,409 Current portion of long-term debt $ 1,525 $ 1,226 Long-term debt 2,204 1,659 Total finance lease liabilities $ 3,729 $ 2,885 Weighted-average remaining lease term Operating leases 3.2 years 3.4 years Finance leases 2.2 years 2.0 years Weighted-average discount rate Operating leases 8.60 % 8.75 % Finance leases 7.95 % 8.25 %
Maturity of finance lease liability	Maturities of lease liabilities at March 31, 2024 were as follows: (in thousands) Operating Leases Finance Leases 2024 $ 840 1,395 2025 540 1,486 2026 401 1,118 2027 370 97 2028 285 — Total cash lease payment 2,436 4,096 Less: imputed interest (305) (367) Total lease liabilities $ 2,131 $ 3,729
Maturity of operating lease liability	(in thousands) Operating Leases Finance Leases 2024 $ 840 1,395 2025 540 1,486 2026 401 1,118 2027 370 97 2028 285 — Total cash lease payment 2,436 4,096 Less: imputed interest (305) (367) Total lease liabilities $ 2,131 $ 3,729

Financial Instruments and Fai_2

Financial Instruments and Fair Value (Tables)	3 Months Ended
Financial Instruments and Fair Value (Tables)	Mar. 31, 2024
Financial Instruments and Fair Value
Schedule of carrying and fair value of convertible notes	The following table summarizes the carrying value and fair value of our Convertible Notes as of March 31, 2024 and December 31, 2023. March 31, 2024 December 31, 2023 Carrying Fair Carrying Fair (in thousands) Value Value Value Value Convertible Notes $ 189,023 $ 151,000 $ 179,209 $ 164,800

Supplemental Balance Sheet In_2

Supplemental Balance Sheet Information (Tables)	3 Months Ended
Supplemental Balance Sheet Information (Tables)	Mar. 31, 2024
Supplemental Balance Sheet Information
Schedule of prepaid expenses and other current assets	Prepaid expenses and other current assets consisted of the following: (in thousands) March 31, 2024 December 31, 2023 Prepaid insurance $ 2,390 $ 3,502 Deferred mobilization costs 591 467 Prepaid and other current assets 716 790 $ 3,697 $ 4,759
Schedule of accrued Liabilities	Accrued liabilities consisted of the following: (in thousands) March 31, 2024 December 31, 2023 Accrued salaries and other compensation $ 2,643 $ 6,625 Insurance 1,859 2,996 Deferred mobilization revenues 614 578 Property and other taxes 1,617 2,124 Interest 46 25 Operating lease liability - current 889 934 Cash-settled SARs liability 1,183 2,054 Other 932 1,035 $ 9,783 $ 16,371

Long-term Debt (Tables)

Long-term Debt (Tables)	3 Months Ended
Long-term Debt (Tables)	Mar. 31, 2024
Long-term Debt.
Schedule of Long-term Debt	Our long-term debt consisted of the following: (in thousands) March 31, 2024 December 31, 2023 Convertible Notes due March 18, 2026 $ 189,023 $ 179,209 Revolving ABL Credit Facility due September 30, 2025 8,250 5,500 Finance lease obligations 3,729 2,885 201,002 187,594 Less: Convertible Notes debt discount and issuance costs (29,099) (31,819) Less: current portion of finance leases (1,525) (1,226) Long-term debt, net $ 170,378 $ 154,549

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
Stock-Based Compensation (Tables)	Mar. 31, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of Compensation Cost	A summary of compensation cost recognized for stock-based payment arrangements is as follows: Three Months Ended March 31, (in thousands) 2024 2023 Compensation cost recognized: Restricted stock, restricted stock units and stock-settled stock appreciation rights $ 1,026 $ 1,374 Cash-settled stock appreciation rights and performance-based phantom units (810) 298 Total stock-based compensation $ 216 $ 1,672
Schedule of Restricted Stock Activity	A summary of the status of our time-based restricted stock awards and of changes in our time-based restricted stock awards outstanding for the three months ended March 31, 2024 is as follows: Weighted Average Grant-Date Fair Value Shares Per Share Outstanding at January 1, 2024 — $ — Granted 692,607 1.88 Vested — — Forfeited — — Outstanding at March 31, 2024 692,607 $ 1.88
Schedule of Restricted Stock Unit Activity	A summary of the status of our time-based restricted stock unit awards and of changes in our time-based restricted stock unit awards outstanding for the three months ended March 31, 2024 is as follows: Weighted Average Grant-Date Fair Value RSUs Per Share Outstanding at January 1, 2024 753,180 $ 4.10 Granted — — Vested and converted (151,818) 4.02 Forfeited (4,221) 4.13 Outstanding at March 31, 2024 597,141 $ 4.12 A summary of the status of our performance-based and market-based restricted stock unit awards and of changes in our restricted stock unit awards outstanding for the three months ended March 31, 2024 is as follows: Weighted Average Grant-Date Fair Value RSUs Per Share Outstanding at January 1, 2024 299,411 $ 4.47 Granted — — Vested and converted (1,987) 4.47 Forfeited (102,604) 4.47 Outstanding at March 31, 2024 194,820 $ 4.47
Stock-settled stock appreciation rights
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of Stock Appreciation Rights	Changes to our time-based stock-settled SARs outstanding during the three months ended March 31, 2024 are as follows: Weighted Average Grant Date Fair Value Stock-settled SARs Per Share Outstanding at January 1, 2024 1,421,740 $ 2.83 Granted — — Exercised — — Forfeited/Expired — — Outstanding at March 31, 2024 1,421,740 $ 2.83 Exercisable at March 31, 2024 947,826 $ 2.83 Non-vested at January 1, 2024 592,391 $ 2.83 Vested (118,477) 2.83 Non-vested at March 31, 2024 473,914 $ 2.83
Stock Appreciation Rights (SARs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of Assumptions Used in Calculation of SARs Granted	The following weighted-average assumptions were used in calculating the fair value of the time-based cash-settled SARs using the Monte Carlo simulation model: Three Months Ended Year Ended March 31, 2024 December 31, 2023 Remaining term to maturity 3.9 years 4.1 years Expected volatility factor 82.9 % 119.5 % Expected dividend yield — % — % Risk-free interest rate 4.27 % 3.88 %
Schedule of Stock Appreciation Rights	Changes to our time-based cash-settled SARs outstanding during the three months ended March 31, 2024 are as follows: Weighted Average Exercise Price Cash-settled SARs Per Share Outstanding at January 1, 2024 2,885,722 $ 5.73 Granted — — Exercised — — Forfeited/Expired — — Outstanding at March 31, 2024 2,885,722 $ 5.73 Exercisable at March 31, 2024 2,885,722 $ 5.73

Stockholders' Equity and Earn_2

Stockholders' Equity and Earnings (Loss) per Share (Tables)	3 Months Ended
Stockholders' Equity and Earnings (Loss) per Share (Tables)	Mar. 31, 2024
Stockholders' Equity and Earnings (Loss) per Share
Reconciliation of Numerators and Denominators of Basic and Diluted (Loss) Earnings Per Share	Three Months Ended March 31, (in thousands, except per share data) 2024 2023 Net (loss) income (numerator): $ (8,986) $ 12 (Loss) income per share: Basic $ (0.62) $ 0.00 Diluted $ (0.62) $ 0.00 Shares (denominator): Weighted average common shares outstanding - basic 14,504 13,865 Weighted average common shares outstanding - diluted 14,504 13,881
Schedule of Antidilutive Securities excluded from computation of earnings per share	Three Months Ended March 31, (in thousands) 2024 2023 Potentially dilutive securities excluded as anti-dilutive 40,453 39,230

Nature of Operations and Rece_2

Nature of Operations and Recent Events (Market Conditions) (Details)						12 Months Ended
	Apr. 23, 2024 $ / MMcf	Apr. 22, 2024 $ / bbl	Dec. 31, 2022 $ / MMcf	Aug. 22, 2022 $ / MMcf	Mar. 08, 2022 $ / bbl	Dec. 31, 2023 $ / MMcf
Market price of oil (in dollars per barrel) \| $ / bbl		83.82			123.64
Natural gas price (in dollars per mmcf)			3.52	9.85		2.58
Subsequent Event
Natural gas price (in dollars per mmcf)	1.59

Interim Financial Information_2

Interim Financial Information (Details)	3 Months Ended
Interim Financial Information (Details)	Mar. 31, 2024 segment
Segment Reporting [Abstract]
Reportable segments	1

Revenue from Contracts with C_3

Revenue from Contracts with Customers (Disaggregation of Revenues) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) customer	Mar. 31, 2023 USD ($) customer
Disaggregation of Revenue [Line Items]
Revenues	$ 46,636	$ 63,756
Revenue \| Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Number of Major Customers \| customer	2	3
Revenue \| Customer Concentration Risk \| Customer One
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	25%	14%
Revenue \| Customer Concentration Risk \| Customer Two
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	15%	12%
Revenue \| Customer Concentration Risk \| Customer Three
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage		11%
Dayrate drilling
Disaggregation of Revenue [Line Items]
Revenues	$ 41,645	$ 60,242
Mobilization
Disaggregation of Revenue [Line Items]
Revenues	1,831	1,371
Reimbursables
Disaggregation of Revenue [Line Items]
Revenues	3,077	1,902
Early termination
Disaggregation of Revenue [Line Items]
Revenues	53	0
Capital modification
Disaggregation of Revenue [Line Items]
Revenues		218
Other
Disaggregation of Revenue [Line Items]
Revenues	$ 30	$ 23

Revenue from Contracts with C_4

Revenue from Contracts with Customers (Contract Balances) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Contract assets	$ 0	$ 0
Receivables, which are included in "Accounts receivable"	26,869	31,380
Contract liabilities, which are included in "Accrued liabilities"	$ (614)	$ (578)
Minimum
Payment terms (in days)	30 days
Maximum
Payment terms (in days)	60 days

Revenue from Contracts with C_5

Revenue from Contracts with Customers (Changes in Contract Liabilities) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenue from Contracts with Customers
Revenue recognized that was included in contract liabilities at beginning of period	$ 431	$ 540
Increase in contract liabilities due to cash received, excluding amounts recognized as revenue	$ (467)	$ (751)

Revenue from Contracts with C_6

Revenue from Contracts with Customers (Remaining Performance Obligation) (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 $ in Thousands	Mar. 31, 2024 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 614
Revenue, remaining performance obligation, period	9 months

Revenue from Contracts with C_7

Revenue from Contracts with Customers (Contract Costs) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Revenue from Contracts with Customers
Capitalized contract cost, current	$ 0.6		$ 0.5
Capitalized contract cost, increase	1.1	$ 0.9
Amortization of contract costs	$ 1	$ 0.5

Leases (Lease Cost) (Details)

Leases (Lease Cost) (Details) - USD ($) $ in Thousands	3 Months Ended
Leases (Lease Cost) (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023
Leases [Abstract]
Operating lease expense	$ 299	$ 191
Short-term lease expense	2,143	1,730
Variable lease expense	127	162
Finance lease expense:
Amortization of right-of-use assets	467	555
Interest expense on lease liabilities	73	73
Total finance lease expense	540	628
Total lease expense	3,109	2,711
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	253	196
Operating cash flows from finance leases	73	73
Financing cash flows from finance leases	507	650
Right-of-use assets obtained or recorded in exchange for lease obligations:
Operating leases	75	618
Finance leases	$ 1,513	$ 51

Leases (Lease Assets and Liabil

Leases (Lease Assets and Liabilities) (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Operating leases:
Other long-term assets, net	$ 2,029	$ 2,205
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other Assets, Noncurrent	Other Assets, Noncurrent
Accrued liabilities	$ 889	$ 934
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accrued Liabilities, Current	Accrued Liabilities, Current
Other long-term liabilities	$ 1,242	$ 1,375
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other Liabilities, Noncurrent	Other Liabilities, Noncurrent
Total operating lease liabilities	$ 2,131	$ 2,309
Finance leases:
Property, plant and equipment	5,931	6,238
Accumulated depreciation	(1,734)	(1,829)
Property, plant and equipment, net	$ 4,197	$ 4,409
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Property, plant and equipment, net	Property, plant and equipment, net
Current portion of long-term debt	$ 1,525	$ 1,226
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Long-term Debt and Lease Obligation, Current	Long-term Debt and Lease Obligation, Current
Long-term debt	$ 2,204	$ 1,659
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Long-term Debt and Lease Obligation	Long-term Debt and Lease Obligation
Total finance lease liabilities	$ 3,729	$ 2,885
Weighted-average remaining lease term
Operating leases	3 years 2 months 12 days	3 years 4 months 24 days
Finance leases	2 years 2 months 12 days	2 years
Weighted-average discount rate
Operating leases	8.60%	8.75%
Finance leases	7.95%	8.25%

Leases (Lease Maturities) (Deta

Leases (Lease Maturities) (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Operating Leases
2024	$ 840
2025	540
2026	401
2027	370
2028	285
Total cash lease payment	2,436
Less: imputed interest	(305)
Total lease liabilities	2,131	$ 2,309
Finance Leases
2024	1,395
2025	1,486
2026	1,118
2027	97
2028	0
Total cash lease payment	4,096
Less: imputed interest	(367)
Total lease liabilities	$ 3,729	$ 2,885

Financial Instruments and Fai_3

Financial Instruments and Fair Value (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value assets transfer	$ 0
Convertible Notes.
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Carrying Value	189,023	$ 179,209
Fair Value	$ 151,000	$ 164,800
Convertible Notes \| Volatility rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Debt instrument, measurement input	0.480	0.585
Convertible Notes \| Risk-free rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Debt instrument, measurement input	0.046	0.042
Convertible Notes \| Credit Spread
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Debt instrument, measurement input	0.2855	0.2702

Supplemental Balance Sheet In_3

Supplemental Balance Sheet Information (Prepaid Expenses and Other Current Assets) (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Supplemental Balance Sheet Information
Prepaid insurance	$ 2,390	$ 3,502
Deferred mobilization costs	591	467
Prepaid and other current assets	716	790
Prepaid expenses and other current assets	$ 3,697	$ 4,759

Supplemental Balance Sheet In_4

Supplemental Balance Sheet Information (Accrued Liabilities) (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Supplemental Balance Sheet Information
Accrued salaries and other compensation	$ 2,643	$ 6,625
Insurance	1,859	2,996
Deferred mobilization revenues	614	578
Property and other taxes	1,617	2,124
Interest	46	25
Operating lease liability - current	889	934
Cash-settled SARs liability	1,183	2,054
Other	932	1,035
Accrued liabilities	$ 9,783	$ 16,371

Long-term Debt (Details)

Long-term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Finance lease obligations	$ 3,729	$ 2,885
Long-term debt and finance lease obligations, including current maturities	201,002	187,594
Less: Convertible Notes debt discount and issuance costs	(29,099)	(31,819)
Less: current portion of finance leases	(1,525)	(1,226)
Long-term debt	170,378	154,549
Convertible Notes
Debt Instrument [Line Items]
Long-term debt	189,023	179,209
Revolving ABL Credit Facility.
Debt Instrument [Line Items]
Long-term debt	$ 8,250	$ 5,500

Long-term Debt (Narrative) (Det

Long-term Debt (Narrative) (Details)			3 Months Ended
Long-term Debt (Narrative) (Details)	Mar. 18, 2022 USD ($) D	Oct. 01, 2018 USD ($)	Mar. 31, 2024 USD ($) $ / shares	Dec. 31, 2023 USD ($)	Sep. 30, 2023 USD ($)	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Jun. 30, 2025 USD ($)	Sep. 30, 2024 USD ($)	Jun. 08, 2022 $ / shares
Debt Instrument [Line Items]
Aggregate principal amount	$ 78,900,000
Interest			$ 46,000	$ 25,000
Amortization of deferred financing costs			27,000				$ 27,000
Principal of convertible notes			3,500,000
Revolving ABL Credit Facility.
Debt Instrument [Line Items]
Convertible debt principal notes			$ 8,250,000	5,500,000
Line of credit
Debt Instrument [Line Items]
Weighted average interest rate			14.87%
Line of credit \| Revolving ABL Credit Facility.
Debt Instrument [Line Items]
Fixed charge coverage ratio		1
Line of credit facility, borrowing base threshold, percentage		85%
Commitment fee on unused capacity (as a percent)		0.375%
Line of credit facility, unused commitment fee percentage, revolver contingency		0.25%
Unused commitment fee percentage, maximum credit threshold		50%
Fixed charge coverage ratio, maximum credit threshold		10%
Borrowing base			$ 21,900,000
Line of credit \| Federal funds, effective rate \| Revolving ABL Credit Facility.
Debt Instrument [Line Items]
Stated interest rate (as a percent)		0.05%
Line of credit \| SOFR \| Revolving ABL Credit Facility.
Debt Instrument [Line Items]
Stated interest rate (as a percent)		1%
Revolving ABL Credit Facility \| Line of credit \| Revolving ABL Credit Facility.
Debt Instrument [Line Items]
Revolving credit facility, maximum borrowing capacity		$ 40,000,000	40,000,000
Remaining availability			13,500,000
Letter of Credit \| Line of credit \| Revolving ABL Credit Facility.
Debt Instrument [Line Items]
Revolving credit facility, maximum borrowing capacity		$ 7,500,000
Minimum \| Line of credit \| Prime Rate \| Revolving ABL Credit Facility.
Debt Instrument [Line Items]
Stated interest rate (as a percent)		1%
Minimum \| Revolving ABL Credit Facility \| Line of credit \| SOFR \| Revolving ABL Credit Facility.
Debt Instrument [Line Items]
Stated interest rate (as a percent)		2.36%
Maximum \| Line of credit \| Prime Rate \| Revolving ABL Credit Facility.
Debt Instrument [Line Items]
Stated interest rate (as a percent)		1.50%
Maximum \| Line of credit \| Base Rate \| Revolving ABL Credit Facility.
Debt Instrument [Line Items]
Interest rate, basis spread (as a percent)		0%
Maximum \| Revolving ABL Credit Facility \| Line of credit \| SOFR \| Revolving ABL Credit Facility.
Debt Instrument [Line Items]
Stated interest rate (as a percent)		2.86%
Convertible Notes
Debt Instrument [Line Items]
Aggregate principal amount			50,000,000
Interest			$ 100,000	6,800,000
Conversion ratio			0.22172949
Threshold additional shares to be issued, value			$ 7,500,000
Interest expenses			$ 6,900,000				5,900,000
Convertible conversion price \| $ / shares			$ 4.51
Convertible debt principal notes			$ 189,000,000
Debt discounts	37,800,000
Cash fee	7,400,000
Non cash structuring fee	$ 2,300,000
Effective interest rate			25.70%
Amortization of debt discount			$ 2,700,000				$ 2,400,000
Principal of convertible notes			$ 3,500,000	$ 5,000,000	$ 5,000,000	$ 5,000,000
Convertible Notes \| SOFR
Debt Instrument [Line Items]
Interest rate, basis spread (as a percent)	10%
Debt instrument, variable rate, cash interest	12.50%
Debt instrument, decreased variable rate, paid in kind	9.50%
Convertible Notes \| Floor Rate
Debt Instrument [Line Items]
Interest rate, basis spread (as a percent)	1%
Convertible Notes \| Subscription Agreement
Debt Instrument [Line Items]
Aggregate principal amount	$ 157,500,000
Convertible conversion price \| $ / shares										$ 4.51
Holder elected restricted ownership percentage	19.90%
Threshold period following written notice after which the election becomes effective	61 days
Principal amount of debt that is used in conversion calculations	$ 1,000
Threshold volume-weighted average price trading days under debt conversion \| D	5
MOIC Required Level	$ 1,350
Convertible Notes \| Subscription Agreement \| Scenario of Redemption of Debt, After March 31, 2025
Debt Instrument [Line Items]
Redemption amount on quarterly basis	3,500,000
Convertible Notes \| Subscription Agreement \| Line of credit \| Revolving ABL Credit Facility.
Debt Instrument [Line Items]
Liquidity covenant	$ 10,000,000
Fixed charge coverage ratio	1
Minimum availability	$ 5,000,000
Capital expenditure limits								$ 11,250,000	$ 14,800,000
Subjective increase in capital expenditures	$ 500,000

Stock-Based Compensation (Restr

Stock-Based Compensation (Restricted Stock and Restricted Stock Units - Narrative) (Details) $ / shares in Units, $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2024 USD ($) shares	Mar. 31, 2023 item $ / shares shares	Dec. 31, 2023 shares	Jun. 30, 2019 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock outstanding (in shares)			33,332
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	1 year
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	3 years
Time-Based Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs \| $	$ 1.1
Granted (in shares)	692,607
Period for recognition (in years)	1 year 4 months 24 days
Restricted stock outstanding (in shares)	692,607		0
Time-Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs \| $	$ 1.9
Granted (in shares)	0
Period for recognition (in years)	6 months
Shares received per restricted stock unit (in shares)	1
Restricted stock outstanding (in shares)	597,141		753,180
Time-Based Restricted Stock Units \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	1 year
Time-Based Restricted Stock Units \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	3 years
Performance-based and market-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs \| $	$ 0.3
Granted (in shares)	0
Period for recognition (in years)	1 year 9 months 18 days
Restricted stock outstanding (in shares)	194,820		299,411
Performance-based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)		3 years
Target shares		173,570
Granted (in shares)			299,411
Percent adjusted to payout due to TSR multiplier	15%
Number of peer group companies \| item		8
Performance-based Restricted Stock Units \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of units that can be awarded based upon the measurement of Free cash flow		0%
Percent adjusted to payout due to TSR multiplier		85%
Performance-based Restricted Stock Units \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of units that can be awarded based upon the measurement of Free cash flow		150%
Percent adjusted to payout due to TSR multiplier		115%
TSR market-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value assumptions, exercise price (in dollars per share) \| $ / shares		$ 4.47
Risk-free interest rate (as percent)		4.15%
Expected volatility factor (as percent)		135.30%
Expected dividend yield (as percent)		0%
2019 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)				4,600,000
Number of shares available for future awards (in shares)	306,008

Stock-Based Compensation (Compe

Stock-Based Compensation (Compensation Cost) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 216	$ 1,672
Restricted stock, restricted stock units and stock-settled stock appreciation rights
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	1,026	1,374
Cash-settled stock appreciation rights and performance-based phantom units
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ (810)	$ 298

Stock-Based Compensation (Res_2

Stock-Based Compensation (Restricted Stock and Restricted Stock Units Activity) (Details)	3 Months Ended
	Mar. 31, 2024 $ / shares shares
Shares
Outstanding at Beginning balance (in share)	33,332
Outstanding at Ending balance (in shares)
Time-Based Restricted Stock
Shares
Outstanding at Beginning balance (in share)	0
Granted (in shares)	692,607
Vested (in shares)	0
Forfeited (in shares)	0
Outstanding at Ending balance (in shares)	692,607
Weighted Average Grant-Date Fair Value Per Share
Outstanding at Beginning balance (in dollars per share) \| $ / shares	$ 0
Granted (in dollars per share) \| $ / shares	1.88
Vested and converted (in dollars per share) \| $ / shares	0
Forfeited/Expired (in dollars per share) \| $ / shares	0
Outstanding at Ending balance (in dollars per share) \| $ / shares	$ 1.88
Time-Based Restricted Stock Units
Shares
Outstanding at Beginning balance (in share)	753,180
Granted (in shares)	0
Vested (in shares)	(151,818)
Forfeited (in shares)	(4,221)
Outstanding at Ending balance (in shares)	597,141
Weighted Average Grant-Date Fair Value Per Share
Outstanding at Beginning balance (in dollars per share) \| $ / shares	$ 4.10
Granted (in dollars per share) \| $ / shares	0
Vested and converted (in dollars per share) \| $ / shares	4.02
Forfeited/Expired (in dollars per share) \| $ / shares	4.13
Outstanding at Ending balance (in dollars per share) \| $ / shares	$ 4.12
Performance-based and market-based RSUs
Shares
Outstanding at Beginning balance (in share)	299,411
Granted (in shares)	0
Vested (in shares)	(1,987)
Forfeited (in shares)	(102,604)
Outstanding at Ending balance (in shares)	194,820
Weighted Average Grant-Date Fair Value Per Share
Outstanding at Beginning balance (in dollars per share) \| $ / shares	$ 4.47
Granted (in dollars per share) \| $ / shares	0
Vested and converted (in dollars per share) \| $ / shares	4.47
Forfeited/Expired (in dollars per share) \| $ / shares	4.47
Outstanding at Ending balance (in dollars per share) \| $ / shares	$ 4.47

Stock-Based Compensation (Phant

Stock-Based Compensation (Phantom Units) (Details)	3 Months Ended
Stock-Based Compensation (Phantom Units) (Details)	Mar. 31, 2024 USD ($) item shares	Mar. 31, 2023 USD ($) item shares	Dec. 31, 2023 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested shares outstanding (in shares)			33,332
Compensation expense \| $	$ 216,000	$ 1,672,000
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	1 year
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	3 years
Performance-based phantom units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	1,306,415	149,709
Vesting period (in years)	3 years	3 years
Target shares	649,151	86,789
Number of peer group companies \| item	8	8
Grant date fair value \| $	$ 1,200,000	$ 300,000
Compensation expense \| $	$ 16,000
Performance-based phantom units \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	0%	0%
Payout percentage		85%
Performance-based phantom units \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	175%	150%
Payout percentage		115%
Target shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards vested	1,389
Shares forfeited	50,907
Unvested shares outstanding (in shares)	97,413
Three-year time-vested phantom unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	279,630	94,708
Vesting period (in years)	3 years	3 years
Shares forfeited	32,544
Unvested shares outstanding (in shares)	60,914
Grant date fair value \| $	$ 500,000	$ 400,000
Compensation expense \| $	5,000	$ 9,000
Three-year performance-based phantom unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense \| $	$ 36,000
One-year time-vested phantom unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	66,664	41,665
Vesting period (in years)	1 year	1 year
Shares forfeited	33,332
Unvested shares outstanding (in shares)	0
Grant date fair value \| $	$ 100,000	$ 200,000
Compensation expense \| $	$ 11,000	$ 6,000

Stock-Based Compensation (Stock

Stock-Based Compensation (Stock-Settled SARs) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Jun. 30, 2022	Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash-settled SARs liability	$ 1,183		$ 2,054
Stock-settled and Cash-settled SARs
Outstanding at Beginning balance (in share)	33,332
Outstanding at Ending balance (in shares)			33,332
Stock-settled stock appreciation rights
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period (in years)		7 years
Exercise price (in dollars per share)		$ 5.19
Unrecognized compensation costs	$ 1,400
Period for recognition (in years)	6 months
Remaining contractual life (years)	5 years
Weighted-Average Assumptions
Expected volatility factor (as percent)	103.30%
Expected dividend yield (as percent)	0%
Risk-free interest rate (as percent)	3.03%
Stock-settled and Cash-settled SARs
Outstanding at Beginning balance (in shares)	1,421,740
Granted (in shares)	0
Exercised (in shares)	0
Forfeited/Expired (in shares)	0
Outstanding at Ending balance (in shares)	1,421,740		1,421,740
Exercisable (in shares)	947,826
Outstanding at Beginning balance (in share)	592,391
Vested (in shares)	(118,477)
Outstanding at Ending balance (in shares)	473,914		592,391
Weighted Average Fair Value Price Per Share
Outstanding at Beginning balance (in dollars per share)	$ 2.83
Granted (in dollars per share)	0
Exercised (in dollars per share)	0
Forfeited/Expired (in dollars per share)	0
Outstanding at Ending balance (in dollars per share)	2.83		$ 2.83
Exercisable (in dollar per share)	2.83
Vested (in dollars per share)	$ 2.83
Stock-settled stock appreciation rights \| March 18, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage		33.33%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	1 year
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	3 years

Stock-Based Compensation (Cash-

Stock-Based Compensation (Cash-Settled SARs) (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2021	Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Accrued liabilities for time-based, cash-settled stock appreciation rights	$ 1,183,000		$ 2,054,000
Stock-settled and Cash-settled SARs
Outstanding at Beginning balance (in share)	33,332
Outstanding at Ending balance (in shares)			33,332
Stock Appreciation Rights (SARs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period (in years)		7 years
Exercise price (in dollars per share)		$ 5.73
Market cap price per share		$ 10
Accrued liabilities for time-based, cash-settled stock appreciation rights	$ 1,200,000		$ 2,100,000
Unrecognized compensation costs	$ 0
Vesting period (in years)	5 years
Weighted-Average Assumptions
Remaining term to maturity (in years)	3 years 10 months 24 days		4 years 1 month 6 days
Expected volatility factor (as percent)	82.90%		119.50%
Expected dividend yield (as percent)			0%
Risk-free interest rate (as percent)	4.27%		3.88%
Stock-settled and Cash-settled SARs
Outstanding at Beginning balance (in share)	2,885,722
Granted (in shares)	0
Exercised (in shares)	0
Forfeited (in shares)	0
Outstanding at Ending balance (in shares)	2,885,722		2,885,722
Exercisable (in shares)	2,885,722
Weighted Average Grant-Date Fair Value Per Share
Outstanding at Beginning balance (in dollars per share)	$ 5.73
Granted (in dollars per share)	0
Exercised (in dollars per share)	0
Forfeited/Expired (in dollars per share)	0
Outstanding at Ending balance (in dollars per share)	5.73		$ 5.73
Exercisable (in dollar per share)	$ 5.73

Stockholders' Equity and Earn_3

Stockholders' Equity and Earnings (Loss) per Share (Narrative) (Details) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Stockholders' Equity and Earnings (Loss) per Share
Shares outstanding (in shares)	15,213,277
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Treasury stock (in shares)	156,259	97,260
Shares authorized (in shares)	250,000,000	250,000,000

Stockholders' Equity and Earn_4

Stockholders' Equity and Earnings (Loss) per Share (Basic and Diluted Losses per Share Computations) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Stockholders' Equity and Earnings (Loss) per Share
Net (loss) income (numerator):	$ (8,986)	$ 12
(Loss) income per share:
Basic (in dollars per share)	$ (0.62)	$ 0
Diluted (in dollars per share)	$ (0.62)	$ 0
Shares (denominator):
Weighted average common shares outstanding - basic (in shares)	14,504	13,865
Weighted average common shares outstanding - diluted (in shares)	14,504	13,881

Stockholders' Equity and Earn_5

Stockholders' Equity and Earnings (Loss) per Share (Anti-dilutive) (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Stockholders' Equity and Earnings (Loss) per Share
Potentially dilutive securities excluded as anti-dilutive	40,453	39,230

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details)	3 Months Ended
Income Taxes (Narrative) (Details)	Mar. 31, 2024	Mar. 31, 2023
Income Taxes
Effective tax rate	2.50%	(20.00%)

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	Mar. 31, 2024 USD ($)
Commitments and Contingencies.
Outstanding purchase commitments	$ 5.1

Defined Contribution Plan (Deta

Defined Contribution Plan (Details) - 401 (k) Plan - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Defined Contribution Plan
Defined contribution plan, Contribution percentage	100%
Defined Contribution Plan, Matching contribution percentage	6%
Defined contribution plan, Expense	$ 0.4	$ 0.4

Related Parties (Details)

Related Parties (Details) $ in Millions	Mar. 18, 2022 USD ($) director	Jul. 01, 2022 director
Related Parties
Aggregate principal amount \| $	$ 78.9
Number of directors who can be nominated	1
Principal amount \| $	$ 25
Number of holder representatives that have the right to nominate additional representative as director	2
Number of additional representatives to be appointed as individual director	1
Number of directors	6	7

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (8,986)	$ 12

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false