Financial Data and Key Metrics Changes - For the full year 2019, revenue was $2.0 billion, an 8% decrease from $2.2 billion in 2018 [6][26] - Net income totaled $75 million for the full year, with adjusted EBITDA at $277 million, a 37% decline from $438 million in 2018 [7][26] - Annualized EBITDA per fleet was $12.2 million compared to $20.6 million in the prior year [7][26] - In Q4 2019, revenue decreased 23% to $398 million from $515 million in Q3 2019, with a net loss of $18 million compared to net income of $19 million in Q3 [12][31] - Q4 adjusted EBITDA decreased 57% to $30 million from $70 million in Q3, with annualized adjusted EBITDA per fleet at $5.2 million compared to $12.1 million in Q3 [12][32] Business Line Data and Key Metrics Changes - The average number of frac fleets deployed increased by 7% during the year, but this was offset by a challenging price environment [26] - The pricing dynamic entering 2020 is challenging, with total industry frac stages in North America up only marginally year-over-year in 2019 [13] - Efficiency gains across the industry have raised the number of frac stages completed by each fleet by 10% to 20%, implying a decrease of at least 10% in the active frac fleets needed to meet demand [13] Market Data and Key Metrics Changes - The substantial oversupply of frac equipment in the second half of 2019 created pricing pressure for services [14] - Future activity projections for the industry depend on multiple factors including commodity prices, availability of capital, and takeaway capacity in each basin [15] Company Strategy and Development Direction - The company employs a strategy of investing for the future based on long-term fundamentals, focusing on a competitively advantaged portfolio of efficient, environmentally friendly frac fleets [16] - Liberty is committed to advancing ESG solutions and has been a leader in environmentally conscious practices since its founding [17][18] - The company plans to continue developing next-generation frac fleets to reduce environmental impacts and customer costs [19] Management's Comments on Operating Environment and Future Outlook - Management noted that U.S. oil production growth has slowed and anticipates a reduction in EMP CapEx in 2020 [45] - The company expects significant progress in 2020 across all fronts, including customers, culture, operations, technology, and next-generation frac fleets [25] - Management expressed confidence in the long-term outlook despite current market challenges, emphasizing the importance of aligning with strong customers [99] Other Important Information - The company returned $41 million in cash to shareholders in 2019 through dividends and share repurchases [8][27] - Capital expenditures for 2020 are projected to be approximately $165 million, including $45 million for the completion of fleet 25 [40] Q&A Session Summary Question: Details on the 25th fleet - The 25th fleet is a new-built fleet, driven by strong customer demand for ESG fleets [50] Question: Investment justification for the 25th fleet - The EBITDA contribution from the 25th fleet is expected to be higher than the average, with a return profile improving over the next two years [60][62] Question: Comparison of the 24th fleet's return metrics - The return metrics for the 24th fleet are expected to be above average due to strategic customer relationships [63] Question: Pricing dynamics and revenue expectations - Spot pricing was very low in Q4 due to oversupply, but Q1 is expected to see a rebound in revenue by 10% to 15% [82][83] Question: Customer interest in new technologies - There is significant customer interest in next-generation fleets, but economic challenges make widespread adoption slow [138]

Liberty Oilfield Services Inc. (NYSE:LBRT) Q3 2019 Earnings Conference Call October 30, 2019 10:00 AM ET Company Participants Chris Wright - Chief Executive Officer Michael Stock - Chief Financial Officer Ron Gusek - President Conference Call Participants John Daniel - Simmons Energy Sean Meakim - JPMorgan Blake Gendron - Wolfe Research David Anderson - Barclays Chris Voie - Wells Fargo George O'Leary - Tudor Pickering Holt & Co. Waqar Syed - AltaCorp Capital Chase Mulvehill - Bank of America Stephen Gengar ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 001-38081 Liberty Oilfield Services Inc. (Exact Name of Registrant as Specified in its Charter) (State or Other Jurisdiction of Incorporation or Organization) 950 17 ...

10101010110100101010101010101 (100011010101010101010101010101010 100101010000001111110100010 11110100010 110100101001001001001 011010010000111110011011110101010101010101 /10 010101010101 01017111000101110000010110001011001 001100111111 (0 001010101010101010 0101 01010101010101011100101001001101 010110010011013111111110 1010 0010101010101010101010101010 0101010101012010010 0101010001 101010101 010100101010101010 101010010101010 10101010100101000 10101010100 LISTED Investor Presentation August 2019 NYSE: LBRT ...

Liberty Oilfield Services, Inc. (NYSE:LBRT) Q2 2019 Earnings Conference Call July 31, 2019 10:00 AM ET Company Participants Christopher Wright - Founder, Chairman & CEO Michael Stock - CFO & Treasurer Ron Gusek - President Conference Call Participants Christopher Voie - Wells Fargo Securities Sean Meakim - JPMorgan Chase & Co. George O'Leary - Tudor, Pickering, Holt & Co. Stephen Gengaro - Stifel, Nicolaus & Company Blake Gendron - Wolfe Research Thomas Curran - B. Riley FBR, Inc. Operator Good morning, and ...

[PART I: FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section presents the company's unaudited condensed consolidated financial statements and related management discussion for the periods ended June 30, 2019 [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents unaudited condensed consolidated financial statements for Q2 and H1 2019, detailing financial position, operational results, and cash flows [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$1.30 billion** due to new lease accounting and receivables, with liabilities rising to **$510.9 million** and equity to **$792.4 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2019 (unaudited) | December 31, 2018 | | :--- | :--- | :--- | | **Total Assets** | **$1,303,375** | **$1,116,501** | | Cash and cash equivalents | $32,503 | $103,312 | | Accounts receivable—trade | $248,160 | $153,589 | | Finance & Operating lease right-of-use assets | $120,565 | $— | | **Total Liabilities** | **$510,929** | **$375,687** | | Current liabilities | $270,696 | $219,736 | | Finance & Operating lease liabilities | $113,712 | $— | | **Total Equity** | **$792,446** | **$740,814** | [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q2 2019 revenue decreased to **$542.1 million** and net income to **$40.5 million**, with H1 2019 revenue at **$1.08 billion** and net income at **$74.4 million** Key Income Statement Data (in thousands, except per share data) | Metric | Q2 2019 | Q2 2018 | YTD 2019 | YTD 2018 | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $542,147 | $628,084 | $1,077,295 | $1,123,244 | | Operating Income | $51,203 | $114,211 | $95,354 | $182,771 | | Net Income | $40,523 | $94,741 | $74,432 | $148,728 | | Diluted EPS | $0.32 | $0.71 | $0.58 | $1.05 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) H1 2019 operating cash flow was **$97.7 million**, with **$130.1 million** used in investing and **$38.5 million** in financing, leading to a **$70.8 million** net cash decrease Six Months Ended June 30 Cash Flow Summary (in thousands) | Activity | 2019 | 2018 | | :--- | :--- | :--- | | Net cash provided by operating activities | $97,713 | $109,201 | | Net cash used in investing activities | ($130,064) | ($137,843) | | Net cash (used in) provided by financing activities | ($38,458) | $95,652 | | **Net (decrease) increase in cash** | **($70,809)** | **$67,010** | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes explain accounting policies, including ASC 842 adoption, debt, equity, related party transactions, and significant commitments - Adoption of ASC Topic 842 on January 1, 2019, led to recognition of **$57.2 million** in finance lease assets and **$64.0 million** in operating lease assets[33](index=33&type=chunk)[37](index=37&type=chunk) - As of June 30, 2019, **$111.3 million** was outstanding on the Term Loan Facility, with **$233.9 million** available on the **$250.0 million** ABL Facility, and all debt covenants were in compliance[56](index=56&type=chunk)[57](index=57&type=chunk)[61](index=61&type=chunk) - The company repurchased **1,303,003** Class A Common Stock shares for **$18.4 million** in H1 2019, with **$98.7 million** remaining authorized for future repurchases[81](index=81&type=chunk)[82](index=82&type=chunk) - Significant future purchase commitments for proppants and chemicals total approximately **$546.6 million** through 2022[102](index=102&type=chunk)[105](index=105&type=chunk) - In July 2019, unitholders redeemed **6,190,483** Liberty LLC Units for Class A Common Stock, increasing the company's ownership in Liberty LLC[110](index=110&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses decreased revenue and profitability in Q2 and H1 2019 due to frac service pricing pressure, covering operational results, non-GAAP measures, liquidity, and accounting policies [Recent Trends and Outlook](index=26&type=section&id=Recent%20Trends%20and%20Outlook) Q2 2019 saw lower WTI prices and rig counts, with frac service pricing reductions due to oversupply, and stable demand expected through Q3, potentially decreasing in Q4 - Oversupply of staffed frac fleets and reduced customer activity led to rapid pricing reductions for frac services starting in Q4 2018[118](index=118&type=chunk) - Demand for frac services is expected to remain stable through 2019, with a potential decrease in Q4 due to customer budget exhaustion[119](index=119&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Operating results declined in Q2 and H1 2019 due to significant pricing pressure on revenue per average active fleet, leading to lower operating and net income Q2 2019 vs Q2 2018 Performance | Metric | Q2 2019 | Q2 2018 | Change | | :--- | :--- | :--- | :--- | | Revenue | $542.1M | $628.1M | -13.7% | | Operating Income | $51.2M | $114.2M | -55.2% | | Revenue per average active fleet | $23.6M | $29.5M | -20.1% | | Average active fleets | 23.0 | 21.3 | +8.0% | H1 2019 vs H1 2018 Performance | Metric | H1 2019 | H1 2018 | Change | | :--- | :--- | :--- | :--- | | Revenue | $1,077.3M | $1,123.2M | -4.1% | | Operating Income | $95.4M | $182.8M | -47.8% | | Revenue per average active fleet | $47.7M | $55.1M | -13.4% | | Average active fleets | 22.6 | 20.4 | +10.8% | [Comparison of Non-GAAP Financial Measures](index=30&type=section&id=Comparison%20of%20Non-GAAP%20Financial%20Measures) Adjusted EBITDA decreased in Q2 and H1 2019, primarily due to lower revenue outpacing operating expense reductions Adjusted EBITDA Reconciliation (in thousands) | Period | Adjusted EBITDA 2019 | Adjusted EBITDA 2018 | Change | | :--- | :--- | :--- | :--- | | Three Months Ended June 30 | $92,120 | $148,600 | ($56,480) | | Six Months Ended June 30 | $176,935 | $248,767 | ($71,832) | [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and cash equivalents decreased to **$32.5 million** due to increased receivables, but operating cash flow and credit facilities are deemed sufficient for the next twelve months - Cash and cash equivalents decreased by **$70.8 million** in H1 2019, mainly due to a **$94.6 million** increase in accounts receivable and a **$19.0 million** increase in unbilled revenue[149](index=149&type=chunk) - Net cash from operating activities decreased by **$11.5 million** in H1 2019, and financing activities used **$38.5 million**, a shift from **$95.7 million** provided in H1 2018 including IPO proceeds[150](index=150&type=chunk)[151](index=151&type=chunk)[153](index=153&type=chunk) - The company has access to a **$250.0 million** ABL Facility, with **$233.9 million** available as of June 30, 2019[154](index=154&type=chunk) [Quantitative and Qualitative Disclosure about Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20about%20Market%20Risk) The company reports no material changes to its market risk exposure, particularly interest rate risk, since December 31, 2018 - No material changes in the company's exposure to market risk have occurred since December 31, 2018[164](index=164&type=chunk) [Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 30, 2019, with no material changes to internal control over financial reporting during the quarter - The principal executive and financial officers concluded the company's disclosure controls and procedures were effective as of June 30, 2019[165](index=165&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended June 30, 2019[166](index=166&type=chunk) [PART II: OTHER INFORMATION](index=36&type=section&id=PART%20II%20OTHER%20INFORMATION) This section addresses legal proceedings, risk factors, equity sales, and required exhibits [Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings, with no expected material adverse effect on financial position or operations - The ultimate costs to resolve current legal matters are not expected to have a material adverse effect on financial condition or operations[169](index=169&type=chunk) [Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) The company reports no material changes to the risk factors previously disclosed in its Annual Report - No material changes in risk factors have occurred from those described in the company's Annual Report[170](index=170&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no repurchases of Class A Common Stock during the three months ended June 30, 2019 - No shares of Class A Common Stock were repurchased during the three months ended June 30, 2019[171](index=171&type=chunk) [Exhibits](index=37&type=section&id=Item%206.%20Exhibits) This section provides an index of exhibits filed with the Form 10-Q, including certifications and XBRL data files

Liberty Oilfield Services (NYSE:LBRT) Q1 2019 Earnings Conference Call May 1, 2019 10:00 AM ET Company Participants Chris Wright - Chief Executive Officer Michael Stock - Chief Financial Officer Conference Call Participants Sean Meakim - JPMorgan John Daniel - Simmons Energy George O’Leary - Tudor, Pickering, Holt Angie Sedita - Goldman Sachs Vebs Vaishnav - Howard Weil Stephen Gengaro - Stifel Operator Good morning and welcome to the Liberty Oilfield Services First Quarter 2019 Earnings Conference Call. [O ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 001-38081 Liberty Oilfield Services Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 81-4891595 (State or Other Jurisdiction of Incorporation or Orga ...

PART I [Business](index=5&type=section&id=Item%201.%20Business) Liberty Oilfield Services provides hydraulic fracturing services to North American E&P companies, covering its corporate structure, services, assets, customer relations, and regulatory environment [Overview and Corporate Structure](index=5&type=section&id=Overview%20and%20Corporate%20Structure) The company, an independent hydraulic fracturing provider, grew to 22 fleets by 2019, adopted a holding company structure post-2018 IPO, and initiated TRAs, share repurchases, and dividends - The company is an independent provider of hydraulic fracturing services in major North American basins, including the **Permian, Eagle Ford, DJ, Williston, and Powder River Basins**[18](index=18&type=chunk) - Liberty grew organically from one active hydraulic fracturing fleet in December 2011 to **22 active fleets by February 2019**[29](index=29&type=chunk) - Following its January 2018 IPO, the company adopted a holding company structure, with Liberty Inc.'s primary asset being its equity interest in Liberty LLC[19](index=19&type=chunk)[178](index=178&type=chunk) - The company entered into Tax Receivable Agreements (TRAs) to pay legacy owners **85% of net cash savings** from certain tax benefits, potentially leading to substantial future payments[25](index=25&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk) - In 2018 and early 2019, the company authorized two separate **$100 million share repurchase programs** and initiated a quarterly cash dividend of **$0.05 per share**[32](index=32&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk) [Our Services and Technology](index=8&type=section&id=Our%20Services%20and%20Technology) The company provides advanced hydraulic fracturing services, differentiating through custom solutions, proprietary data, and innovative technologies like Liberty Quiet Fleet® and custom fluid systems - The core service is hydraulic fracturing, stimulating production by pumping a pressurized fluid mixture into a well to crack underground formations[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk) - The company utilizes proprietary databases and multi-variable data analysis to optimize fracture design and well completions for customers[52](index=52&type=chunk) - Key technological innovations include the **Liberty Quiet Fleet®** for noise reduction and custom fluid systems like **Liberty Spirit™** for specific basins[31](index=31&type=chunk)[39](index=39&type=chunk)[53](index=53&type=chunk) [Properties and Equipment](index=11&type=section&id=Properties%20and%20Equipment) The company operates 22 hydraulic fracturing fleets from leased headquarters and owned/leased facilities, with a focus on Quiet Fleet® technology and dual-fuel capability Principal Properties | District Facility Location | Size | Leased or Owned | | :--- | :--- | :--- | | Odessa, TX | 77,500 sq. ft on 47 acres | Owned | | Henderson, CO | 50,000 sq. ft on 13 acres | Leased | | Williston, ND | 30,000 sq. ft on 15 acres | Owned | | Gillette, WY | 32,757 sq. ft on 15 acres | Leased | | Cibolo, TX | 90,000 sq. ft on 34 acres | Owned | | Sedalia, CO | 11,805 sq. ft on 112 acres | Owned | - As of 2019, the company operates **22 hydraulic fracturing fleets**, with **eight utilizing Liberty Quiet Fleet® technology** and approximately **40% having dual-fuel capability**[56](index=56&type=chunk) [Marketing, Customers, Suppliers, and Competition](index=11&type=section&id=Marketing%2C%20Customers%2C%20Suppliers%2C%20and%20Competition) The company manages sales regionally, has concentrated customer revenue (42% from top five in 2018), diversified suppliers, and competes in a fragmented market Top 5 Customer Revenue Concentration | Year | % of Revenues | | :--- | :--- | | 2018 | 42% | | 2017 | 53% | | 2016 | 59% | - **Extraction Oil & Gas, Inc.** was the only customer accounting for more than **10% of revenues in 2018**[60](index=60&type=chunk) - The company competes in a highly fragmented market against large integrated companies and specialized hydraulic fracturing providers[63](index=63&type=chunk) [Environmental and Occupational Safety and Health Matters](index=13&type=section&id=Environmental%20and%20Occupational%20Safety%20and%20Health%20Matters) The company's operations are subject to stringent federal, state, and local environmental and safety regulations, particularly concerning hydraulic fracturing and climate change - Operations are subject to stringent regulations from agencies like the **EPA and OSHA**, potentially imposing significant compliance costs and penalties[67](index=67&type=chunk) - Worker health and safety is regulated under **OSHA**, including standards for hazardous materials and respirable crystalline silica[70](index=70&type=chunk) - The company operates as a motor carrier, subject to **DOT regulations** governing safety, hours of service, and hazardous materials transport[72](index=72&type=chunk) - Hydraulic fracturing faces increased regulatory oversight at federal, state, and local levels, potentially leading to new restrictions or bans that could reduce demand[93](index=93&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk) - Climate change regulations, including those limiting **GHG and methane emissions**, could increase operating costs for the company and its customers[86](index=86&type=chunk)[87](index=87&type=chunk) [Risk Factors](index=20&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant business risks from industry cyclicality, competition, and regulations, alongside stock-related risks from its holding company structure and TRA obligations [Risks Related to Our Business](index=20&type=section&id=Risks%20Related%20to%20Our%20Business) Business risks include dependence on E&P spending, commodity price volatility, intense competition, customer credit risk, operational hazards, capital requirements, and extensive environmental and safety regulations - The business is directly dependent on the capital spending of oil and natural gas companies, highly sensitive to volatile commodity prices[101](index=101&type=chunk)[104](index=104&type=chunk) - The company has significant customer concentration, with the **top five customers representing 42% of revenue in 2018**, posing a risk of loss or non-payment[113](index=113&type=chunk) - Federal, state, and local initiatives on hydraulic fracturing and induced seismicity could limit oil and gas activities, reducing demand for services[123](index=123&type=chunk)[124](index=124&type=chunk) - The business is subject to numerous environmental and safety laws, such as those concerning silica exposure, water disposal, air emissions, and climate change, imposing significant costs and liabilities[131](index=131&type=chunk)[134](index=134&type=chunk)[148](index=148&type=chunk) [Risks Related to Our Class A Common Stock](index=34&type=section&id=Risks%20Related%20to%20Our%20Class%20A%20Common%20Stock) Stock risks stem from the holding company structure, dependence on Liberty LLC distributions, controlled company status, substantial TRA obligations, and potential stock price volatility - Liberty Inc. is a holding company dependent on distributions from Liberty LLC to cover taxes, corporate expenses, and TRA payments[178](index=178&type=chunk) - The company is a **"controlled company"** due to majority voting power by Principal Stockholders, exempting it from certain NYSE corporate governance requirements[187](index=187&type=chunk) - The **Tax Receivable Agreements (TRAs)** require Liberty Inc. to pay **85% of certain tax savings** to legacy owners, with payments potentially accelerating upon a change of control[203](index=203&type=chunk)[206](index=206&type=chunk) - Estimated TRA termination payments were approximately **$67.3 million** as of December 31, 2018, potentially impacting liquidity negatively[207](index=207&type=chunk) [Unresolved Staff Comments](index=42&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[217](index=217&type=chunk) [Properties](index=42&type=section&id=Item%202.%20Properties) Property information is incorporated by reference from the 'Business' section (Item 1) of this report - This section incorporates property information by reference from **Item 1. Business**[218](index=218&type=chunk) [Legal Proceedings](index=42&type=section&id=Item%203.%20Legal%20Proceedings) A patent infringement lawsuit by SandBox Logistics, LLC was dismissed in December 2018, and other legal matters are not expected to be material - A patent infringement and breach of contract lawsuit by **SandBox Logistics, LLC** was dismissed with prejudice on **December 19, 2018**[219](index=219&type=chunk) - The company does not expect other ordinary course legal matters to materially impact its financial condition[220](index=220&type=chunk) [Mine Safety Disclosures](index=42&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company - Not applicable[221](index=221&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=43&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's Class A Common Stock began trading on NYSE in January 2018, initiated a $0.05 quarterly dividend, and repurchased $29.0 million in shares in Q4 2018 - The company's Class A Common Stock trades on the NYSE under **"LBRT"** following its **January 17, 2018 IPO**[224](index=224&type=chunk) - A quarterly cash dividend of **$0.05 per share** of Class A Common Stock was initiated and paid in September and December 2018[226](index=226&type=chunk) Q4 2018 Share Repurchases | Period | Total number of shares purchased | Average price paid per share | Total value of shares purchased as part of publicly announced plans or programs | | :--- | :--- | :--- | :--- | | October | — | $ — | $ — | | November | 191,712 | $ 18.83 | $3,610,000 (approx) | | December | 1,558,778 | $ 16.25 | $25,340,000 (approx) | | **Total Q4** | **1,750,490** | **$ 16.53** | **$29,000,000 (approx)** | - As of December 31, 2018, **$17.1 million** remained available for future repurchases under the **$100 million share repurchase program** authorized in September 2018[228](index=228&type=chunk) [Selected Financial Data](index=44&type=section&id=Item%206.%20Selected%20Consolidated%20Financial%20Data) This section presents selected historical financial and operational data for the years ended December 31, 2015 through 2018, including statements of operations, cash flows, balance sheet, non-GAAP measures, and operational metrics Selected Statement of Operations Data (in thousands) | | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | | Total revenue | $ 2,155,136 | $ 1,489,855 | $ 374,773 | | Operating income (loss) | $ 306,563 | $ 181,137 | $ (54,434) | | Net income (loss) | $ 249,033 | $ 168,501 | $ (60,560) | | Net income attributable to Liberty Inc. stockholders | $ 126,349 | $ — | $ — | Selected Other Financial & Operational Data (in thousands, except fleet data) | | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | | Capital expenditures | $ 258,835 | $ 311,794 | $ 102,428 | | Adjusted EBITDA | $ 438,234 | $ 280,728 | $ (5,588) | | Total Fleets at end of period | 22 | 19 | 10 | | Average Active Fleets | 21.3 | 15.1 | 7.4 | Selected Balance Sheet Data (at end of period, in thousands) | | 2018 | 2017 | | :--- | :--- | :--- | | Total assets | $ 1,116,501 | $ 852,103 | | Long-term debt (including current) | $ 106,524 | $ 196,357 | | Total equity | $ 740,814 | $ 392,766 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=47&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, revenue growth, market trends, non-GAAP measures, liquidity, capital resources, debt, contractual obligations, and critical accounting policies [Overview, Recent Trends and Outlook](index=47&type=section&id=Overview%2C%20Recent%20Trends%20and%20Outlook) Demand for hydraulic fracturing is tied to E&P activity and commodity prices, with WTI crude oil price declines impacting frac service pricing in late 2018, yet long-term trends like drilling efficiencies and increased completion intensity remain beneficial - **WTI crude oil prices averaged $65.23 in 2018** but fell significantly in the second half, reducing frac service pricing in late 2018[241](index=241&type=chunk)[242](index=242&type=chunk) - Long-term industry trends benefiting the company include improved drilling economics and increased complexity and service intensity of well completions[244](index=244&type=chunk)[246](index=246&type=chunk)[248](index=248&type=chunk) - The average proppant used per well more than doubled from **six million pounds in 2014 to over 13 million pounds in 2018**, indicating higher service intensity[248](index=248&type=chunk) [Results of Operations](index=50&type=section&id=Results%20of%20Operations) This section details financial results for 2018 vs 2017 and 2017 vs 2016, attributing significant revenue and income growth to fleet expansion and improved market conditions [Year Ended December 31, 2018, Compared to Year Ended December 31, 2017](index=50&type=section&id=Year%20Ended%20December%2031%2C%202018%2C%20Compared%20to%20Year%20Ended%20December%2031%2C%202017) In 2018, revenue increased 44.7% to $2.2 billion, driven by a 41.1% increase in average active fleets and a 2.5% increase in revenue per fleet, leading to significant growth in operating and net income Financial Performance Comparison (2018 vs. 2017) | (in thousands) | 2018 | 2017 | Change | | :--- | :--- | :--- | :--- | | Revenue | $ 2,155,136 | $ 1,489,855 | $ 665,281 | | Operating income | $ 306,563 | $ 181,137 | $ 125,426 | | Net income | $ 249,033 | $ 168,501 | $ 80,532 | - Revenue increased due to a **41.1% increase in average active fleets** (from 15.1 to 21.3) and a **2.5% increase in revenue per average active fleet**[260](index=260&type=chunk) - Cost of services increased by **42.0% to $1.6 billion**, primarily due to a **34.8% increase in material volumes** and a **39.4% increase in personnel costs**[261](index=261&type=chunk) [Year Ended December 31, 2017, Compared to Year Ended December 31, 2016](index=51&type=section&id=Year%20Ended%20December%2031%2C%202017%2C%20Compared%20to%20Year%20Ended%20December%2031%2C%202016) In 2017, revenue surged 297.5% to $1.5 billion, driven by a 104.0% increase in average active fleets and a 94.8% increase in revenue per fleet, leading to a significant swing to operating and net income Financial Performance Comparison (2017 vs. 2016) | (in thousands) | 2017 | 2016 | Change | | :--- | :--- | :--- | :--- | | Revenue | $ 1,489,855 | $ 374,773 | $ 1,115,082 | | Operating income (loss) | $ 181,137 | $ (54,434) | $ 235,571 | | Net income (loss) | $ 168,501 | $ (60,560) | $ 229,061 | - The revenue surge resulted from a **104.0% increase in average active fleets** and a **94.8% increase in revenue per average active fleet**, reflecting industry recovery[270](index=270&type=chunk) [Comparison of Non-GAAP Financial Measures](index=52&type=section&id=Comparison%20of%20Non-GAAP%20Financial%20Measures) Management uses EBITDA and Adjusted EBITDA to assess financial performance, with Adjusted EBITDA increasing to $438.2 million in 2018, reflecting strong operational growth - **EBITDA and Adjusted EBITDA** are used by management to assess financial performance by removing capital structure, asset base, and non-recurring item effects[278](index=278&type=chunk)[279](index=279&type=chunk) Reconciliation of Net Income to Adjusted EBITDA (in thousands) | | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | | Net income (loss) | $ 249,033 | $ 168,501 | $ (60,560) | | EBITDA | $ 431,673 | $ 262,610 | $ (13,072) | | Adjusted EBITDA | $ 438,234 | $ 280,728 | $ (5,588) | [Liquidity and Capital Resources](index=54&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity stems from operations, IPO proceeds, and credit facilities, with $103.3 million cash and $224.3 million available under its ABL Facility as of December 31, 2018 Summary of Cash Flows (in thousands) | | 2018 | 2017 | | :--- | :--- | :--- | | Net cash provided by operating activities | $ 351,258 | $ 195,109 | | Net cash used in investing activities | $ (255,492) | $ (310,043) | | Net cash (used in) provided by financing activities | $ (8,775) | $ 119,771 | - As of December 31, 2018, the company had **$103.3 million in cash and cash equivalents**[286](index=286&type=chunk) - The company has a **$250 million ABL Facility with $224.3 million available** and a **Term Loan Facility with $111.7 million outstanding** as of year-end 2018[296](index=296&type=chunk)[297](index=297&type=chunk) [Contractual Obligations](index=58&type=section&id=Contractual%20Obligations) As of December 31, 2018, total contractual obligations were approximately $1.01 billion, primarily comprising purchase commitments, operating leases, and the Term Loan Facility Contractual Obligations as of December 31, 2018 (in thousands) | | Total | Less than 1 year | 1 – 3 years | 4 – 5 years | More than 5 years | | :--- | :--- | :--- | :--- | :--- | :--- | | Term Loan Facility | $ 111,715 | $ 1,750 | $ 3,500 | $ 106,465 | $ — | | Estimated interest payments | $ 41,533 | $ 11,407 | $ 22,307 | $ 7,819 | $ — | | Operating lease obligations | $ 153,930 | $ 42,717 | $ 81,075 | $ 10,396 | $ 19,742 | | Purchase commitments | $ 690,862 | $ 341,970 | $ 344,947 | $ 3,945 | $ — | | Obligations under the TRAs | $ 16,818 | $ — | $ 3,994 | $ 1,947 | $ 10,877 | | **Total** | **$ 1,014,858** | **$ 397,844** | **$ 455,823** | **$ 130,572** | **$ 30,619** | [Critical Accounting Policies and Estimates](index=59&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Management identifies critical accounting policies requiring significant judgment, including revenue recognition, allowance for doubtful accounts, inventory valuation, property and equipment depreciation/impairment, and Tax Receivable Agreements - Key areas requiring significant management judgment and estimates include Revenue Recognition, Allowance for doubtful accounts, Inventory valuation, Depreciation and impairment of property and equipment, and Accounting for Tax Receivable Agreements[309](index=309&type=chunk)[310](index=310&type=chunk)[311](index=311&type=chunk)[312](index=312&type=chunk)[315](index=315&type=chunk)[317](index=317&type=chunk) [Quantitative and Qualitative Disclosure about Market Risk](index=61&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosure%20about%20Market%20Risk) The company faces market risks primarily from volatile oil and gas drilling activity, interest rate risk on variable-rate debt, and commodity price risk for materials and fuel - The company's primary market risk is its dependence on volatile U.S. oil and natural gas drilling and completion activity, driven by commodity prices[321](index=321&type=chunk) - The company is exposed to interest rate risk on its **$111.7 million of variable-rate debt**; a **1% change** would impact annual interest expense by about **$1.1 million**[323](index=323&type=chunk) - The company faces commodity price risk for materials and diesel fuel, managed through customer pass-throughs and fixed-price supply agreements[324](index=324&type=chunk) [Financial Statements and Supplementary Data](index=62&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section incorporates the company's audited consolidated and combined financial statements and supplementary data by reference, located at page F-1 - The company's financial statements and supplementary data are included beginning on **page F-1** of the report[326](index=326&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=62&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[327](index=327&type=chunk) [Controls and Procedures](index=62&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2018, having remediated a prior material weakness - Management concluded that the company's disclosure controls and procedures were effective as of **December 31, 2018**[328](index=328&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of **December 31, 2018**[333](index=333&type=chunk) - During the quarter ended December 31, 2018, the company remediated a previously identified material weakness related to segregation of duties[334](index=334&type=chunk) [Other Information](index=63&type=section&id=Item%209B.%20Other%20Information) The company reports no other information in this section - None[336](index=336&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=64&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2019 proxy statement - Information is incorporated by reference from the **2019 proxy statement**[339](index=339&type=chunk) [Executive Compensation](index=64&type=section&id=Item%2011.%20Executive%20Compensation) Information on executive compensation is incorporated by reference from the 2019 proxy statement - Information is incorporated by reference from the **2019 proxy statement**[340](index=340&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=64&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership is incorporated by reference from the 2019 proxy statement - Information is incorporated by reference from the **2019 proxy statement**[341](index=341&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=64&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related party transactions and director independence is incorporated by reference from the 2019 proxy statement - Information is incorporated by reference from the **2019 proxy statement**[342](index=342&type=chunk) [Principal Accountant Fees and Services](index=64&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information on principal accountant fees and services is incorporated by reference from the 2019 proxy statement - Information is incorporated by reference from the **2019 proxy statement**[343](index=343&type=chunk) PART IV [Exhibits, Financial Statement Schedules](index=65&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section provides an index to financial statements and lists all exhibits filed, noting that schedules are omitted as information is presented elsewhere - This item provides an index to the financial statements and a list of exhibits filed with the report[346](index=346&type=chunk)[347](index=347&type=chunk) [Form 10-K Summary](index=66&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has not provided a summary for its Form 10-K - None[350](index=350&type=chunk)

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