Liberty Energy Inc. (NYSE:LBRT) Q4 2022 Earnings Conference Call January 26, 2023 10:00 AM ET Company Participants Anjali Voria - Head of IR Chris Wright - CEO Ron Gusek - President Michael Stock - CFO Conference Call Participants Derek Podhaizer - Barclays Stephen Gengaro - Stifel Scott Gruber - Citigroup Marc Bianchi - Cowen Atidrip Modak - Goldman Sachs Arun Jayaram - JPMorgan Chase Waqar Syed - ATB Capital Markets Keith MacKey - RBC Capital Markets Tom Curran - Seaport Research Partners Saurabh Pant - B ...

PART I: FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) The unaudited condensed consolidated financial statements for the period ended September 30, 2022, reflect significant financial performance improvement and strategic capital management [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$2.53 billion** as of September 30, 2022, driven by current assets and property, with total equity rising to **$1.41 billion** Condensed Consolidated Balance Sheet Highlights (as of Sep 30, 2022 vs. Dec 31, 2021) | Balance Sheet Item | Sep 30, 2022 ($ in thousands) | Dec 31, 2021 ($ in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | 996,061 | 630,377 | | **Property and equipment, net** | 1,295,189 | 1,199,287 | | **Total Assets** | **2,525,158** | **2,040,660** | | **Total Current Liabilities** | 704,857 | 569,247 | | **Long-term debt, net** | 252,682 | 121,445 | | **Total Liabilities** | **1,117,720** | **810,221** | | **Retained earnings (accumulated deficit)** | 90,779 | (155,954) | | **Total Equity** | **1,407,438** | **1,230,439** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company achieved a significant turnaround in profitability, with Q3 2022 revenue surging to **$1.19 billion** and net income reaching **$147.0 million** Q3 2022 vs Q3 2021 Performance | Metric | Q3 2022 ($ in thousands) | Q3 2021 ($ in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenue** | 1,188,247 | 653,727 | +81.8% | | **Operating Income (Loss)** | 182,983 | (39,566) | N/A | | **Net Income (Loss) to Stockholders** | 146,953 | (38,890) | N/A | | **Diluted EPS** | $0.78 | $(0.22) | N/A | Nine Months 2022 vs Nine Months 2021 Performance | Metric | Nine Months 2022 ($ in thousands) | Nine Months 2021 ($ in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenue** | 2,923,636 | 1,787,047 | +63.6% | | **Operating Income (Loss)** | 297,426 | (117,789) | N/A | | **Net Income (Loss) to Stockholders** | 246,733 | (123,655) | N/A | | **Diluted EPS** | $1.30 | $(0.72) | N/A | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations significantly increased to **$292.6 million** for the nine months ended September 30, 2022, supporting higher capital expenditures and share repurchases Cash Flow Summary (Nine Months Ended Sep 30) | Cash Flow Activity | 2022 ($ in thousands) | 2021 ($ in thousands) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | 292,610 | 80,142 | | **Net cash used in investing activities** | (333,875) | (119,319) | | **Net cash provided by financing activities** | 45,642 | 5,149 | | **Net increase (decrease) in cash** | 4,377 | (34,028) | | **Cash and cash equivalents - end of period** | 24,045 | 34,705 | - Key financing activities in the first nine months of 2022 included net borrowings of **$132.0 million** on the line-of-credit and **$70.1 million** used for share repurchases[25](index=25&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail the PropX acquisition integration, ABL facility amendment, a **$250 million** share repurchase program, and the reinstatement of a quarterly dividend - On July 25, 2022, the Board authorized a share repurchase program of up to **$250.0 million** During the nine months ended Sep 30, 2022, the company repurchased **4.7 million** shares for **$70.1 million**[88](index=88&type=chunk)[91](index=91&type=chunk) - In July 2022, the ABL Facility was amended to increase the maximum borrowing amount by **$75.0 million** to **$425.0 million** and replace LIBOR with SOFR as the interest rate benchmark[60](index=60&type=chunk)[62](index=62&type=chunk) - Subsequent to quarter end, on October 18, 2022, the board approved the reinstatement of a quarterly dividend of **$0.05** per share of Class A Common Stock[126](index=126&type=chunk) - The company maintains a full valuation allowance on its U.S. net deferred tax assets but believes there is a reasonable possibility that it could be reversed as soon as Q4 2022, which would impact income tax expense and the TRA liability[102](index=102&type=chunk)[185](index=185&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q3 2022 performance to robust demand and higher pricing in a tight frac market, driving significant revenue and EBITDA growth [Recent Trends and Outlook](index=27&type=section&id=Recent%20Trends%20and%20Outlook) Management observes a tight frac market with near-full utilization, driven by capital discipline and supply constraints, potentially strengthening demand for North American energy - The frac market is described as relatively tight with near-full utilization of available capacity, making service quality and reliability important differentiators for customers[135](index=135&type=chunk) - Global supply risks, including OPEC+ production cuts and sanctions on Russia, alongside low global inventories, may strengthen demand for North American energy[134](index=134&type=chunk) Key Market Indicators (Q3 2022) | Indicator | Q3 2022 | Q3 2021 | Q2 2022 | | :--- | :--- | :--- | :--- | | **WTI Price (Avg. per Bbl)** | $93.06 | $70.58 | $108.83 | | **US & Canada Rig Count (Avg.)** | 942 | 634 | 810 | [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Financial results dramatically improved year-over-year, with Q3 2022 revenue increasing **81.8%** to **$1.2 billion** and a significant swing to operating income Q3 2022 vs Q3 2021 Results Summary | Description | Q3 2022 ($ in thousands) | Q3 2021 ($ in thousands) | Change ($ in thousands) | | :--- | :--- | :--- | :--- | | **Revenue** | 1,188,247 | 653,727 | 534,520 | | **Operating income (loss)** | 182,983 | (39,566) | 222,549 | | **Net income (loss) to Stockholders** | 146,953 | (38,890) | 185,843 | - The **$534.5 million** (**81.8%**) increase in Q3 revenue was attributed to higher service pricing and an activity-driven increase in fleet utilization and efficiency[139](index=139&type=chunk) Nine Months 2022 vs 2021 Results Summary | Description | Nine Months 2022 ($ in thousands) | Nine Months 2021 ($ in thousands) | Change ($ in thousands) | | :--- | :--- | :--- | :--- | | **Revenue** | 2,923,636 | 1,787,047 | 1,136,589 | | **Operating income (loss)** | 297,426 | (117,789) | 415,215 | | **Net income (loss) to Stockholders** | 246,733 | (123,655) | 370,388 | [Non-GAAP Financial Measures](index=31&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted EBITDA significantly increased to **$276.9 million** for Q3 2022 and **$564.8 million** for the nine-month period, reflecting improved market conditions and operational leverage Reconciliation of Net Income (Loss) to Adjusted EBITDA | Metric ($ in thousands) | Q3 2022 | Q3 2021 | Nine Months 2022 | Nine Months 2021 | | :--- | :--- | :--- | :--- | :--- | | **Net income (loss)** | 147,263 | (39,379) | 247,122 | (130,467) | | **EBITDA** | 239,456 | 31,233 | 501,533 | 81,585 | | **Adjusted EBITDA** | **276,853** | **32,008** | **564,793** | **100,266** | [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with **$273.6 million** available under its ABL Facility and a **$250.0 million** share repurchase program - As of September 30, 2022, the company had **$273.6 million** of remaining availability under its **$425.0 million** ABL Facility[169](index=169&type=chunk) - A share repurchase program authorizes up to **$250.0 million** in repurchases through July 31, 2024[175](index=175&type=chunk) Cash Flow Summary (Nine Months Ended Sep 30) | Description ($ in thousands) | 2022 | 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | 292,610 | 80,142 | | Net cash used in investing activities | (333,875) | (119,319) | | Net cash provided by financing activities | 45,642 | 5,149 | [Quantitative and Qualitative Disclosure about Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20about%20Market%20Risk) The company's primary market risk is foreign currency exchange rates, resulting in an **$8.3 million** translation loss for the nine months ended September 30, 2022 - The company's main market risk is foreign currency translation due to its Canadian subsidiary For the nine months ended September 30, 2022, this resulted in a translation loss of **$8.3 million**[191](index=191&type=chunk) [Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2022, following the integration of PropX accounting functions - The principal executive and financial officers concluded that disclosure controls and procedures were effective as of September 30, 2022[193](index=193&type=chunk) - During Q3 2022, the company integrated the accounting functions of the PropX acquisition and updated its internal controls over financial reporting to reflect the changes[194](index=194&type=chunk) PART II: OTHER INFORMATION [Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to legal proceedings but does not anticipate a material adverse effect on its financial position or operations - The company is subject to legal proceedings but does not expect them to have a material adverse effect on its financial condition or operations[124](index=124&type=chunk)[198](index=198&type=chunk) [Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) Key risk factors include the Russia-Ukraine conflict, OPEC+ production decisions impacting oil and gas prices, and choice of forum provisions in the company's charter - The ongoing military conflict between Russia and Ukraine is cited as a significant risk that could lead to market disruptions, commodity price volatility, and supply chain interruptions[201](index=201&type=chunk) - Actions by OPEC+ to set and maintain oil production levels are a key uncertainty that could lead to increased volatility in oil and natural gas prices, affecting the company's business[204](index=204&type=chunk) - The company's charter includes choice of forum provisions that designate Delaware courts for certain disputes and federal courts for Securities Act claims, which may limit stockholders' ability to choose a favorable judicial forum[202](index=202&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **4.7 million** shares for **$70.1 million** during Q3 2022, with **$180.0 million** remaining authorized under the share repurchase program Share Repurchases (Q3 2022) | Period | Total Shares Purchased | Average Price Paid per Share | Value Remaining for Repurchase ($) | | :--- | :--- | :--- | :--- | | **July 2022** | — | — | 250,000,000 | | **August 2022** | 3,196,002 | $15.08 | 201,792,691 | | **September 2022** | 1,506,164 | $14.47 | 180,000,041 | | **Total Q3** | **4,702,166** | **$14.89** | **180,000,041** | [Defaults Upon Senior Securities](index=38&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported - None[207](index=207&type=chunk) [Mine Safety Disclosures](index=38&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures, as required by the Dodd-Frank Act, are provided in Exhibit 95 of this quarterly report - Mine safety disclosures required under Regulation S-K are provided in Exhibit 95 of the report[208](index=208&type=chunk) [Other Information](index=39&type=section&id=Item%205.%20Other%20Information) No other material information is reported in this section - None[209](index=209&type=chunk)

Financial Data and Key Metrics Changes - Revenue for Q3 2022 was $1.2 billion, representing a 26% sequential increase and an 82% year-over-year increase [7][18] - Net income for the quarter was $147 million, or $0.78 per fully diluted share, compared to $105 million and $0.55 per share in the previous quarter [7][19] - Adjusted EBITDA increased to $277 million, a 41% increase from the previous quarter [7][21] - General and administrative expenses totaled $50 million, reflecting an increase due to performance-based compensation and inflationary pressures [20] Business Line Data and Key Metrics Changes - The deployment of six fleets acquired from OneStim contributed significantly to revenue growth, with nearly half of the sequential growth attributed to this deployment [18] - The operational execution led to record-breaking metrics in profit pumped, pump hours, and technology rollouts [8] Market Data and Key Metrics Changes - The frac market is near full utilization, with operators focused on securing reliable crews and supply chains [10][15] - Demand for next-generation digiFrac fleets is strong, with expectations for deployment in customer locations soon [11] Company Strategy and Development Direction - The company aims to maintain a flexible approach to capital allocation, balancing shareholder returns with investments in growth opportunities [7][24] - Liberty is focused on technology innovation and vertical integration to enhance service quality and operational efficiency [10][12] - The company is investing in partnerships and technology developments, including a recent investment in Natron Energy for battery technology [11][57] Management's Comments on Operating Environment and Future Outlook - Management highlighted global macroeconomic concerns, including rising interest rates and inflation, but noted that oil and gas markets remained tight [13] - The outlook for oil demand continues to grow, with North America expected to be a leading supplier of incremental barrels [14] - Management expressed confidence in the company's ability to navigate challenges and capitalize on market opportunities [15] Other Important Information - The company announced a return of capital program, including a share repurchase of 2.5% of outstanding shares and the restoration of a quarterly cash dividend of $0.05 per share [7][24] - The company ended the quarter with a cash balance of $24 million and net debt of $230 million [22] Q&A Session Summary Question: Fleet count and incremental fleets - Management indicated that the current fleet count is in the low 40s and that additional fleets will only be added if compelling customer relationships exist [30] Question: CapEx expectations for next year - Management expects CapEx to be at or slightly below 2022 levels, with potential for some spending to shift into early 2023 due to supply chain delays [32] Question: Market tightness and budget exhaustion - Management noted that operators are more concerned about securing reliable crews than typical budget exhaustion, leading to less seasonal slowdown than in previous years [38][40] Question: Pricing and profitability expansion - Management discussed the potential for pricing resets and emphasized the importance of service quality and efficiency in driving profitability [42][44] Question: Vertical integration impact on earnings - Management stated that while frac remains the dominant segment, vertical integration helps ensure high-speed operations and reduces risks associated with supply [62] Question: Share buyback strategy - Management expressed interest in acquiring more shares at attractive valuations, emphasizing that buyback aggressiveness is price-dependent [66] Question: Frac sand capacity utilization - Management confirmed that frac sand capacity is running at 100% utilization, with the majority of sand supplied through Liberty's operations [69] Question: Future investments in technology - Management indicated a focus on technology investments that provide competitive advantages, with a modest investment in Natron Energy being a recent example [57][59]

Enercom C H R I S W R I G H T, C E O& C H A I R M A N • August 8, 2022 Important Disclosures 2 FORWARD LOOKING STATEMENTS The information in this presentation includes "forward-looking statements". All statements, other than statements of historical fact included in this presentation regarding Liberty Energy Inc.'s ("Liberty" or the "Company") including, without limitation, statements about our expected growth from recent acquisitions such as the acquisition from Schlumberger (the "OneStim acquisition") and ...

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 June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 001-38081 LIBERTY ENERGY INC. (Exact Name of Registrant as Specified in its Charter) (State or Other Jurisdiction of Incorporation or Organization) 950 17th Street, Suite ...

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, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 001-38081 Liberty Energy Inc. (Exact Name of Registrant as Specified in its Charter) (State or Other Jurisdiction of Incorporation or Organization) 950 17th Street, Suit ...

Financial Data and Key Metrics Changes - Revenue for Q1 2022 was $793 million, a 16% increase sequentially from $694 million in Q4 2021 [7][18] - Adjusted EBITDA rose to $92 million from $21 million in the previous quarter, reflecting solid incremental gains from increased activity and net service pricing [19][20] - Net loss after tax was $5 million in Q1 2022, compared to a loss of $250 million in Q4 2021, with fully diluted net loss per share at $0.03 [18][19] Business Line Data and Key Metrics Changes - The majority of revenue growth was driven by the frac business, with vertical integration in sand logistics enhancing efficiency [37] - The integration of acquisitions from 2021 is now yielding benefits, contributing to improved operational performance [6][20] Market Data and Key Metrics Changes - The frac services market is experiencing robust activity improvements, with tight supply-demand balance leading to increased pricing [14][15] - Labor shortages and logistics bottlenecks are significant challenges impacting operations across the industry [8][46] Company Strategy and Development Direction - The company is focused on vertical integration and technological advancements, including the deployment of the digiFrac electric fleet [6][11] - The strategy emphasizes partnerships and innovation to enhance operational efficiency and reduce costs [23][81] Management's Comments on Operating Environment and Future Outlook - Management highlighted the critical need for reliable energy infrastructure amid global energy crises and emphasized the importance of North American oil and gas supply [4][13] - The company expects approximately 10% sequential revenue growth in Q2 2022, driven by increased activity levels and modest service price increases [22][39] Other Important Information - The company ended Q1 2022 with a cash balance of $33 million and total liquidity of $222 million [20] - Capital expenditures totaled $90 million in Q1 2022, driven by upgrades and improvements in sand logistics [21] Q&A Session Summary Question: Path to mid-cycle fleet profitability target - Management indicated that achieving mid-cycle economics requires higher utilization and pricing, with current market conditions driving net service pricing upwards [28][30] Question: Drivers of Q1 performance - The majority of the Q1 performance beat was attributed to the frac business, with vertical integration playing a key role in efficiency [36][37] Question: Supply-demand balance in frac services - The market is tight, with limited spare capacity, and the company expects increased activity to drive revenue growth in Q2 [38][39] Question: Pricing dynamics and inflation - Pricing is expected to continue migrating higher due to inflationary pressures, with a partnership approach to pricing discussions with customers [44][45] Question: Impact of sand prices on profitability - Long-term sand prices are expected to be neutral for profitability, as costs are generally passed through to customers [58] Question: Competitive landscape changes - Industry consolidation has improved decision-making and structure within the market, with a few companies holding significant frac capacity [59] Question: Incremental pricing realization - Pricing changes generally occur annually, with some incremental adjustments throughout the year based on market conditions [63][64] Question: Demand pull from gas basins - There is an increase in activity in gas basins, particularly in response to higher natural gas prices [65] Question: Lead time for fleet contracts - New fleet contracts would likely see delivery in 2023 due to current demand and capacity constraints [89] Question: Free cash flow outlook - The company is focused on investing in new technologies while maintaining a commitment to returning cash through the cycle [75]

Debt and Financial Obligations - As of February 18, 2022, the company had $106.5 million outstanding under its Term Loan Facility and $133.0 million under its ABL Facility, with a total borrowing base of $273.1 million[136]. - The company may incur substantial additional debt, which could limit its flexibility in planning and obtaining financing for working capital and acquisitions[137]. - The company had $124.5 million of debt outstanding at December 31, 2021, with a weighted average interest rate of 8.6%, where a 1% change in interest rates would impact interest expense by approximately $1.2 million per year[249]. Market and Economic Conditions - The demand for hydraulic fracturing services is largely dependent on U.S. oil and natural gas drilling activity, which is influenced by various uncontrollable factors including oil prices and economic conditions[247]. - A material decline in oil and natural gas prices could adversely affect the company's business, financial condition, and cash flows[248]. - The company is exposed to commodity price risk related to material and fuel purchases, which can fluctuate based on market conditions[250]. Operational Risks - The company acquired two state-of-the-art sand mines in the Permian Basin as part of the OneStim Acquisition, which may face risks related to environmental compliance and operational permits[146]. - The company is subject to stringent health and safety standards under the Federal Mine Safety and Health Act, and non-compliance could adversely affect its operations[149]. - Unsatisfactory safety performance could negatively impact customer relationships and revenues, as safety records are critical for customer retention[139]. Competitive Position - The company does not have patents for many key processes and technologies, which could diminish its competitive advantage if trade secrets are compromised[140].

Liberty Oilfield Services Inc. (NYSE:LBRT) Q4 2021 Earnings Conference Call February 9, 2022 10:00 AM ET Company Participants Chris Wright - Chief Executive Officer Michael Stock - Chief Financial Officer Ron Gusek - President Conference Call Participants Arun Jayaram - JPMorgan Chase & Co. Ian MacPherson - Piper Sandler Neil Mehta - Goldman Sachs Chase Mulvehill - Bank of America Merrill Lynch Scott Gruber - Citigroup Inc. Waqar Syed - ATB Capital Markets Inc. Taylor Zurcher - Tudor, Pickering, Holt & Co. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 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 | (I.R ...