Financial Data and Key Metrics Changes - For the full year 2025, revenue was $4 billion, down from $4.3 billion in 2024. Net income totaled $148 million, with adjusted net income at $25 million, excluding $123 million of tax-affected gains on investments. Fully diluted net income per share was $0.89, and adjusted net income per diluted share was $0.15. Full year adjusted EBITDA was $634 million, compared to $922 million in the prior year [20][21] - In Q4 2025, revenue was $1 billion, representing a sequential increase of 10%. Q4 net income was $14 million, down from $43 million in the prior quarter. Adjusted net income was $8 million, compared to a loss of $10 million in the prior quarter. Q4 adjusted EBITDA was $158 million, increasing from $128 million in the prior quarter [20][21] Business Line Data and Key Metrics Changes - The company reported a resilient CROCI of 13% during a volatile year, driven by technological innovation and strong operational execution. The focus on expanding the simulfrac offering and leveraging AI-driven asset optimization software led to a 14% reduction in total maintenance costs per unit of work [4][5] - The LPI execution platform for earnings growth was built through strategic partnerships and targeted investments, capitalizing on the transformation of power supply and redefining the energy landscape [5][10] Market Data and Key Metrics Changes - U.S. power demand is rising at the fastest pace in decades, driven by AI-driven data center expansion, onshoring of domestic manufacturing, and increasing industrial electrification. Data center demand for power is projected to grow threefold by 2030 [10][11] - North American oil and gas markets have stabilized after a period of softening activity, with completions demand projected to hold firm in 2026. The industry is adjusting to last year's OPEC Plus supply concerns and tariff-related volatility [11][12] Company Strategy and Development Direction - The company aims to deploy approximately 3 gigawatts of power projects by 2029, focusing on long-duration earnings and high returns for investors. The strategy includes building a differentiated power business with diverse end markets and less cyclicality [16][25] - The company is focused on driving value creation through its industry-leading completions business and power growth platform, leveraging cutting-edge technology and strategic partnerships [17][26] Management's Comments on Operating Environment and Future Outlook - Management noted that while the precise timing of a broader oil market recovery remains uncertain, stabilization in completions markets and significant demand for the digiTechnologies platform are anticipated. The first quarter is expected to reflect lower sequential revenue and adjusted EBITDA due to pricing headwinds and winter weather disruptions [16][22] - The company expects to see pricing pressures in the completions business, with mid-single-digit declines anticipated. However, strong contributions from the Distributed Power Solutions projects are expected in the coming years [24][54] Other Important Information - The company ended the year with a cash balance of $28 million and net debt of $219 million, which increased by $49 million from the prior year. Total liquidity at the end of the year was $281 million [22][23] - Capital expenditures for 2025 were $571 million, including investments in various projects, with expectations for continued strong demand for the digi offering [23][24] Q&A Session Summary Question: Can you discuss the pipeline of opportunities and the expansion to 3 gigawatts? - Management noted a continued trend towards co-located behind-the-meter power as the best long-term solution for data centers, with increasing urgency from partners to secure power supply [30][32] Question: What is the status of equipment delivery and confidence in meeting timelines? - Management emphasized strong relationships with supply chain partners and confidence in meeting delivery schedules for upcoming projects [44] Question: How will the 3 gigawatts be achieved, and will it involve multiple customers? - Management indicated that it will be a combination of growing opportunities with current customers and adding new customers [46] Question: How will the spending for 2026 be funded? - Management explained that spending would be split between project financing and free cash flow, with a strong balance sheet supporting the funding [49][51] Question: What are the expectations for EBITDA in 2026? - Management anticipates EBITDA will be down, primarily driven by the completions business, with significant contributions expected from the power business starting in 2027 [53][54] Question: Is there urgency from partners to secure fuel sources? - Management confirmed that there is increased urgency from partners to secure agreements, enhancing the attractiveness of the LPI platform [58]

Core Viewpoint - Liberty Oilfield Services reported quarterly earnings of $0.05 per share, exceeding the Zacks Consensus Estimate of a loss of $0.16 per share, and showing a year-over-year decrease from earnings of $0.1 per share [1] Financial Performance - The company achieved an earnings surprise of +130.77% compared to the expected loss of $0.01 per share from the previous quarter, where it actually reported a loss of $0.06, resulting in a surprise of -500% [2] - Revenues for the quarter ended December 2025 were $1.04 billion, surpassing the Zacks Consensus Estimate by 20.76%, compared to revenues of $943.57 million in the same quarter last year [3] Stock Performance - Liberty Oilfield Services shares have increased approximately 20.2% since the beginning of the year, while the S&P 500 has gained 1.9% [4] Future Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [5] - The current consensus EPS estimate for the upcoming quarter is -$0.19 on revenues of $875.72 million, and for the current fiscal year, it is -$0.54 on revenues of $3.68 billion [8] Industry Context - The Oil and Gas - Field Services industry, to which Liberty Oilfield Services belongs, is currently ranked in the top 26% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [9]

Financial Performance - Revenue for the year ended December 31, 2025, was $4.0 billion, a decrease of 7% from $4.3 billion in 2024[17] - Net income for 2025 was $148 million, or $0.89 fully diluted earnings per share, down from $316 million and $1.87 in 2024[17] - Adjusted EBITDA for 2025 was $634 million, a 31% decrease from $922 million in 2024[17] - Fourth quarter 2025 revenue was $1.0 billion, an increase of 10% from $944 million in Q4 2024[19] - Fourth quarter 2025 net income was $14 million, compared to $52 million in Q4 2024[19] - Net income for the three months ended September 30, 2025, was $13,690, a decrease of 68.3% compared to $43,055 in the same period of 2024[37] - Adjusted net income for the three months ended December 31, 2025, was $7,813 million, a significant decrease from $16,722 million in the same period of 2024[43] - Net income for the year ended December 31, 2025, was $147,872 million, a decrease from $316,010 million in 2024[42] - The company reported a diluted net income per share of $0.08 for the three months ended September 30, 2025, compared to $0.26 for the same period in 2024[37] - The company reported a net income per diluted share of $0.89 for the year ended December 31, 2025, down from $1.87 in 2024[43] Cash Flow and Dividends - Cash dividends paid in 2025 totaled $53 million, with a quarterly cash dividend of $0.09 per share declared for Q4 2025[12][13] - Liberty repurchased 1,546,138 shares of Class A common stock in 2025, representing 1% of shares outstanding, for approximately $24 million[15] Assets and Liabilities - Total assets as of December 31, 2025, were $3,558,305, an increase of 7.9% from $3,296,394 as of December 31, 2024[40] - Total liabilities as of December 31, 2025, were $1,479,416, an increase of 12.3% from $1,317,525 as of December 31, 2024[40] - Cash and cash equivalents as of December 31, 2025, were $27,554, an increase of 38.5% from $19,984 as of December 31, 2024[40] - Total capital employed as of December 31, 2025, was $2,325,496 million, up from $2,169,369 million in 2024[44] Capital Expenditures - Capital expenditures for the three months ended September 30, 2025, were $202,843, an increase of 79.6% from $113,034 in the prior year[37] Future Outlook - Liberty plans to deploy approximately 3 GW of power projects by 2029 to support long-term earnings growth[11] - The company expects growth from recent acquisitions and improvements in operating procedures and technology, indicating a positive outlook for future performance[34] Performance Metrics - The average capital employed for the twelve months ended December 31, 2025, is used to calculate ROCE and CROCI, which are important non-GAAP measures for assessing profitability[31] - Cash return on capital invested for the twelve months ended December 31, 2025, was 13%, indicating a stable performance compared to previous periods[46] - The adjusted pre-tax return on capital employed for the year ended December 31, 2025, was 1%[44] - Cash Return on Capital Invested for 2024 is 21%, down from 34% in 2023[49] Historical Performance - The company has shown a consistent increase in total assets over the past eight years, from $35,699 in 2011 to $3,296,394 in 2024[49] - The cash return on capital invested has fluctuated significantly over the years, peaking at 47% in 2012[50] - The company has maintained a positive cash return on capital invested in recent years, despite a decline in 2024[49]

Core Viewpoint - Liberty Energy Inc. reported strong fourth quarter results for 2025, demonstrating resilience amid oil market uncertainty and a focus on technological innovation, achieving a Cash Return on Capital Invested (CROCI) of 13% [3][9][11]. Financial Performance - For the year ended December 31, 2025, Liberty generated revenues of $4.0 billion, a decrease of 7% from $4.3 billion in 2024 [9][17]. - Net income for 2025 was $148 million, or $0.89 per diluted share, down from $316 million, or $1.87 per diluted share in 2024 [9][18]. - Adjusted EBITDA for 2025 was $634 million, a 31% decrease from $922 million in 2024 [9][18]. - Fourth quarter 2025 revenue was $1.0 billion, a 10% increase from $944 million in Q4 2024 [20]. - Fourth quarter net income was $14 million, down from $52 million in Q4 2024 [20]. Operational Highlights - The company expanded its simulfrac offering and reduced total maintenance costs per unit of work by approximately 14% through AI-driven asset optimization software [3][4]. - Liberty announced a 1 GW power development agreement with Vantage Data Centers, with a firm reservation of 400 MW to be delivered in 2027 [3][9]. - A preliminary energy services agreement (ESA) for a 330 MW data center expansion in Texas was also executed, with operations expected to begin in phases starting in Q4 2027 [4][9]. Industry Context - U.S. power demand is rising rapidly, driven by AI-driven data center expansion and increased industrial electrification, with data center demand for power projected to grow threefold by 2030 [6][11]. - The North American oil and gas market has stabilized after a period of softening activity, with completions demand expected to remain firm in 2026 [7][8]. - Industry fundamentals are anticipated to improve as supply-side dynamics gradually rebalance with completions demand [8]. Strategic Initiatives - Liberty is focused on driving value creation through its completions business and power growth platform, planning to deploy approximately 3 GW of power projects by 2029 [5][11]. - The company aims to leverage its experience in the design and operation of complex, industrial-scale assets to meet the evolving energy needs of large consumers [4][11].

Core Viewpoint - Liberty Energy Inc. (LBRT) is expected to report a fourth-quarter earnings loss of 16 cents per share on revenues of $853 million, reflecting ongoing challenges in the oil and gas sector [2][10]. Group 1: Previous Performance - In the last reported quarter, LBRT experienced an adjusted net loss of 6 cents per share, which was wider than the consensus estimate of a loss of 1 cent, attributed to macroeconomic headwinds and a slowdown in frac activity [4]. - Revenues for the previous quarter totaled $947 million, missing the consensus estimate by $12 million, with an average negative surprise of 117.46% over the last four quarters [4][5]. Group 2: Fourth Quarter Expectations - The Zacks Consensus Estimate for fourth-quarter earnings indicates a 260% year-over-year decline, while revenues are expected to decrease by 9.57% compared to the previous year [5]. - LBRT's operating expenses are projected to decline by 4.1% to $880.9 million, with service costs expected to drop from $741.8 million to $704.7 million, providing some relief amid reduced revenues [6]. Group 3: Factors Influencing Performance - The company's digiTechnologies platform and expanding power solutions are anticipated to perform well, driven by demand from AI computing and electrification [7]. - However, revenues are likely to face pressure due to diminished customer activity and a steady slowdown in completions and frac operations [8]. Group 4: Earnings Prediction - The earnings model predicts an earnings beat for LBRT, supported by a positive Earnings ESP of +23.08% and a Zacks Rank of 3 [11][12].

Core Viewpoint - Liberty Energy Inc. has announced a time change for its fourth quarter and full year 2025 earnings conference call, which will now occur at 7:30 a.m. Mountain Time on January 29, 2026, 30 minutes earlier than previously scheduled [1]. Group 1: Earnings Conference Call Details - The financial results for the fourth quarter and full year 2025 will be released after the market closes on January 28, 2026, as scheduled [1]. - Individuals wishing to participate in the conference call can dial (833) 255-2827 for domestic calls or (412) 902-6704 for international callers [2]. - A live webcast of the conference call will be available and can be accessed for 90 days following the call [2]. Group 2: Company Overview - Liberty Energy Inc. is a leading energy services company and one of the largest providers of completion services and technologies to onshore oil, natural gas, and enhanced geothermal energy producers in North America [3]. - The company also owns Liberty Power Innovations LLC, which provides advanced distributed power and energy storage solutions, supported by strategic relationships across advanced nuclear, enhanced geothermal, and battery energy storage systems [3]. - Liberty Energy was founded in 2011 and focuses on value creation through innovation and excellence in developing next-generation technology [3].

Core Viewpoint - Liberty Energy Inc. has declared a dividend of $0.09 per share of Class A common stock, scheduled for payment on March 18, 2026, to shareholders of record as of March 4, 2026 [1] Group 1: Dividend Declaration - The Board of Directors has approved a dividend of $0.09 per share [1] - Future declarations of dividends are subject to the Board's approval and determination of best interests for the company and its shareholders [2] - Future dividends may be adjusted based on market conditions and capital availability [2] Group 2: Company Overview - Liberty Energy Inc. is a leading energy services company and one of the largest providers of completion services and technologies to onshore oil, natural gas, and enhanced geothermal energy producers in North America [3] - The company also operates Liberty Power Innovations LLC, which provides advanced distributed power and energy storage solutions [3] - Liberty Energy was founded in 2011 and focuses on value creation through innovation and the development of next-generation technology [3]

Core Viewpoint - Liberty Energy Inc. will release its financial results for Q4 and the full year ending December 31, 2025, on January 28, 2026, after market close, followed by a conference call on January 29, 2026, at 8:00 a.m. Mountain Time [1] Group 1 - The financial results release will be discussed by Ron Gusek, President and CEO, and Michael Stock, CFO [1] - Individuals can participate in the conference call by dialing specific numbers, with a live webcast available for 90 days post-call [2] - A telephone replay of the call will be accessible shortly after, with a specific passcode and availability until February 5, 2026 [2] Group 2 - Liberty Energy Inc. is a leading energy services company, one of the largest providers of completion services and technologies for onshore oil, natural gas, and enhanced geothermal energy producers in North America [3] - The company also operates Liberty Power Innovations LLC, which provides advanced distributed power and energy storage solutions [3] - Founded in 2011, Liberty Energy focuses on value creation through innovation and the development of next-generation technology, headquartered in Denver, Colorado [3]

Core Insights - Liberty Energy Inc. (LBRT) has formed a transformative partnership with Vantage Data Centers to meet the increasing demand for digital infrastructure through utility-scale, high-efficiency power solutions [1][12] - The collaboration aims to deliver up to 1 gigawatt (GW) of power agreements within five years, including a reservation of 400 megawatts (MW) by 2027, with potential for future expansion [2][8] Partnership Objectives - The partnership focuses on developing and deploying power solutions to support Vantage's expanding data center portfolio in North America, ensuring reliable and sustainable energy for major tech companies [1][12] - Liberty Power Innovations (LPI), a subsidiary of Liberty Energy, will manage these power solutions, leveraging over a decade of experience in advanced distributed power systems [4][12] Technological Innovations - LPI's platform includes advanced technologies such as Forte power generation and Tempo intelligent load management, which are crucial for providing reliable primary power to Vantage's facilities [5][9] - The integrated power solutions will enable data centers to operate independently from the grid or optimize their operations using grid attributes, enhancing reliability and efficiency [7][10] Market Demand and Future Outlook - The growing demand for AI technologies and cloud computing is driving the need for energy-efficient and scalable power solutions, which the LBRT and Vantage partnership aims to address [3][6] - This collaboration sets a new standard for power infrastructure in the digital age, supporting the development of next-generation data centers that can meet evolving AI and cloud computing needs [11][13] Economic and Environmental Impact - The partnership enhances local energy resilience and offers flexibility to support the local grid, addressing rising energy costs and supply constraints [9][10] - By securing long-term, reliable power sources, Vantage can maintain control over energy costs, aligning with broader goals of reducing carbon footprints and promoting sustainable energy practices [10][12]

Core Insights - Liberty Energy Inc. (LBRT) has outperformed the Field Services Oil and Gas sub-industry and the broader oil and energy sector, with shares rising 56.2% over the past six months compared to 22.8% and 6.7% respectively [1][8] Company Performance - LBRT operates in major North American basins, including the Permian, Eagle Ford, and Marcellus Shales, playing a crucial role in the U.S. energy sector [3] - The company has a strategic advantage due to its involvement in sand mining for proppants used in hydraulic fracturing, enhancing supply chain control [3] - LBRT's technological advancements, such as the digiPrime fleets and StimCommander software, have led to significant efficiency improvements, including a 30% reduction in maintenance costs and a 65% improvement in fluid injection rates [6][9] Strategic Initiatives - LBRT is expanding into the high-demand power market, particularly for data centers, with plans to deliver over 1 gigawatt of capacity by 2027 [10] - The company has doubled its sales pipeline in 90 days, focusing on long-term contracts lasting 15 years or more, which provides visibility into future revenue streams [11] Operational Resilience - Despite market downturns, LBRT maintained full fleet utilization and achieved record average daily pumping efficiency during the third quarter [12] - The company is well-positioned to benefit from the growing demand for natural gas, supported by LNG export capacity expansion [13] Financial Considerations - LBRT reported $113 million in net capital expenditures for the third quarter, with guidance of $525-$550 million for full-year 2025, raising concerns about cash flow amid aggressive capital spending [14] - The company ended the third quarter with a cash balance of $13 million and net debt of $240 million, indicating a weakening financial position [15] - Rising project costs for power generation have increased to $1.5-$1.6 million per megawatt, posing risks to project timelines and returns [16] Customer Concentration Risks - The power segment's success is heavily reliant on a small number of large clients, with approximately 70% of the data center market controlled by just 6-7 operators, creating counterparty risk [17] Market Vulnerability - LBRT's recovery forecast is contingent on supportive commodity prices, with potential delays in market recovery impacting pricing and profitability [18][19]