[Summary Results and Highlights](index=1&type=section&id=Summary%20Results%20and%20Highlights) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Ron Gusek highlighted solid Q3 2025 operational results, record efficiency, and safety, driven by digiPrime and StimCommander, with a strengthening power business - Liberty achieved revenue of **$947 million** and Adjusted EBITDA of **$128 million** in Q3 2025, despite a slowdown in industry completions activity and market pricing pressure[3](index=3&type=chunk) - The company delivered the highest combined average daily pumping efficiency and safety performance in Liberty's history[3](index=3&type=chunk) - digiPrime pumps are realizing measurable cost improvements, with early indications showing total maintenance cost savings greater than **30%** relative to conventional technologies[3](index=3&type=chunk) - AI-driven automated and intelligent rate and pressure control software, StimCommander, is driving a **65% improvement** in time to deliver desired fluid injection rate and a **5% to 10% improvement** in hydraulic efficiency[3](index=3&type=chunk) - Liberty's power opportunities are strengthening, with total power generation capacity increasing to over **one gigawatt** expected to be delivered through 2027[3](index=3&type=chunk)[6](index=6&type=chunk) [Key Financial & Operational Highlights](index=1&type=section&id=Key%20Financial%20%26%20Operational%20Highlights) Liberty Energy reported Q3 2025 revenue of **$947 million** and Adjusted EBITDA of **$128 million**, increased its dividend, and achieved record efficiency with Forge launch Q3 2025 Key Financial Metrics | Metric | Q3 2025 | Sequential Change | | :----- | :------ | :------------------ | | Revenue | $947 million | 9% decrease | | Net income | $43 million | | | Fully diluted EPS | $0.26 | | | Adjusted EBITDA | $128 million | | - Distributed **$13 million** to shareholders through cash dividends and increased quarterly cash dividend by **13%** to **$0.09 per share** beginning fourth quarter of 2025[5](index=5&type=chunk) - Achieved quarterly record pumping efficiency and tons of sand sold from Liberty mines[5](index=5&type=chunk) - Launched Forge, Liberty's large language model for intelligent asset orchestration[5](index=5&type=chunk) - Appointed Alice Yake (Jackson) to the Board of Directors, bringing decades of experience in energy infrastructure and power generation[5](index=5&type=chunk) [Business Outlook](index=2&type=section&id=Outlook) [Industry Frac Activity Outlook](index=2&type=section&id=Industry%20Frac%20Activity%20Outlook) Industry frac activity moderates due to uncertainty, accelerating attrition, and setting the stage for improved supply/demand and pricing in late 2026 for next-gen fleets - Industry frac activity has fallen below levels required to sustain North American oil production, driven by macroeconomic uncertainty and producers moderating completions[7](index=7&type=chunk) - The moderation in activity is anticipated to be transitory, with global oil oversupply expected to peak during the first half of 2026, and improving frac fundamentals later in 2026[8](index=8&type=chunk) - Lower industry activity and underutilized fleets are driving pricing pressure, accelerating equipment attrition and fleet cannibalization, which is expected to lead to a more constructive supply and demand balance[9](index=9&type=chunk) - The outlook for higher quality, next-generation fleets (like Liberty's digiTechnologies platform) remains strong due to demand for fuel savings, emissions benefits, and operational efficiencies[10](index=10&type=chunk) [Power Business Outlook](index=2&type=section&id=Power%20Business%20Outlook) Structural power demand strengthens from AI, electrification, and reshoring, positioning Liberty's on-site solutions to address grid reliability and capacity challenges - Structural demand for power continues to strengthen, evidenced by large-scale, long-duration power commitments across the industry[11](index=11&type=chunk) - AI compute load, broader electrification trends, and industrial reshoring efforts are driving meaningful long-term growth opportunities and incremental, steady base load demand[11](index=11&type=chunk) - Liberty's on-site power solutions provide consumers with reliability and clarity around power costs, serving as a strategic hedge against potentially significant increases in grid power prices, addressing grid reliability and capacity challenges[11](index=11&type=chunk) [Shareholder Returns](index=2&type=section&id=Cash%20Dividend) [Cash Dividend Details](index=2&type=section&id=Cash%20Dividend%20Details) Liberty paid a Q3 2025 cash dividend of **$0.08 per share** (**$13 million** total) and increased the Q4 2025 dividend by **13%** to **$0.09 per share**, reflecting confidence in future performance Quarterly Cash Dividend Details | Dividend Event | Amount per share | Total (approx.) | Payment Date | Record Date | | :------------- | :--------------- | :-------------- | :----------- | :---------- | | Q3 2025 Paid | $0.08 | $13 million | (during Q3) | (during Q3) | | Q4 2025 Declared | $0.09 (13% increase) | | Dec 18, 2025 | Dec 4, 2025 | - Future declarations of quarterly cash dividends are subject to Board approval and may be adjusted based on market conditions and capital availability[13](index=13&type=chunk) [Financial Performance](index=3&type=section&id=Third%20Quarter%20Results) [Income Statement Overview](index=3&type=section&id=Income%20Statement%20Overview) Liberty's Q3 2025 revenue decreased **17%** YoY and **9%** QoQ to **$947 million**, with net income declining to **$43 million** from **$74 million** in Q3 2024 Income Statement Summary | Metric | Q3 2025 | Q3 2024 | Q2 2025 | YoY Change | QoQ Change | | :----- | :------ | :------ | :------ | :--------- | :--------- | | Revenue | $947 million | $1.1 billion | $1.0 billion | -17% | -9% | | Net income | $43 million | $74 million | $71 million | -41.89% | -39.39% | [Non-GAAP Financial Measures Performance](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20Performance) Q3 2025 Adjusted EBITDA was **$128 million**, a **48%** YoY and **29%** QoQ decrease, with Adjusted Net (Loss) Income turning negative at (**$10 million**) Non-GAAP Financial Measures | Metric | Q3 2025 | Q3 2024 | Q2 2025 | YoY Change | QoQ Change | | :----- | :------ | :------ | :------ | :--------- | :--------- | | Adjusted EBITDA | $128 million | $248 million | $181 million | -48% | -29% | | Adjusted Net (Loss) Income | ($10 million) | $76 million | $20 million | -113.16% | -150% | | Fully diluted EPS | $0.26 | $0.44 | $0.43 | -40.91% | -39.53% | | Adjusted Net (Loss) Income per Diluted Share | $(0.06) | $0.45 | $0.12 | -113.33% | -150% | [Financial Position](index=3&type=section&id=Balance%20Sheet%20and%20Liquidity) [Balance Sheet and Liquidity Overview](index=3&type=section&id=Balance%20Sheet%20and%20Liquidity%20Overview) As of September 30, 2025, Liberty had **$13 million** cash, **$253 million** total debt, and **$146 million** total liquidity, expanding its credit facility to **$750 million** in July 2025 Balance Sheet and Liquidity | Metric | As of Sep 30, 2025 | | :----- | :----------------- | | Cash on hand | $13 million | | Total debt | $253 million | | Total liquidity | $146 million | - In July 2025, Liberty expanded its credit facility to provide for a **$225 million** increase in aggregate commitments to **$750 million**, subject to borrowing base limitations[17](index=17&type=chunk) [Corporate Information](index=3&type=section&id=Corporate%20Information) [Conference Call Details](index=3&type=section&id=Conference%20Call) Liberty will host a conference call on October 17, 2025, at 8:30 a.m. MT to discuss Q3 2025 results, featuring CEO Ron Gusek and CFO Michael Stock, with live and replay access details provided - Liberty will host a conference call to discuss Q3 2025 results on Friday, October 17, 2025, at 8:30 a.m. Mountain Time (10:30 a.m. Eastern Time)[18](index=18&type=chunk) - Presenting Liberty's results will be Ron Gusek, President and Chief Executive Officer, and Michael Stock, Chief Financial Officer[18](index=18&type=chunk) - Access details for the live webcast and a telephone replay (available until October 24, 2025) are provided[19](index=19&type=chunk) [About Liberty Energy Inc.](index=3&type=section&id=About%20Liberty) Liberty Energy Inc. is a leading North American energy services company providing completion services for oil, natural gas, and geothermal, also offering advanced distributed power solutions via Liberty Power Innovations - 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[20](index=20&type=chunk) - The company owns and operates Liberty Power Innovations LLC, which provides advanced distributed power and energy storage solutions for commercial and industrial, data center, energy, and mining industries[20](index=20&type=chunk) - Founded in 2011 and headquartered in Denver, Colorado, Liberty focuses on value creation through innovation and next-generation technology[20](index=20&type=chunk) [Non-GAAP Financial Measures Explanation](index=4&type=section&id=Non-GAAP%20Financial%20Measures) [Definition and Use of Non-GAAP Measures](index=4&type=section&id=Definition%20and%20Use%20of%20Non-GAAP%20Measures) This section defines non-GAAP measures like EBITDA, Adjusted EBITDA, Adjusted Net Income, and ROCE, explaining their use for assessing financial performance by excluding non-recurring items, while cautioning they are not U.S. GAAP and may not be comparable - The earnings release includes unaudited non-GAAP financial measures such as EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income per Diluted Share, and Adjusted Pre-Tax Return on Capital Employed ('ROCE')[21](index=21&type=chunk) - Adjusted EBITDA is defined as EBITDA adjusted to eliminate effects of items like non-cash stock-based compensation, start-up costs, fleet lay-down costs, gains/losses on asset disposal/investments, bad debt reserves, and other non-recurring expenses[21](index=21&type=chunk) - Adjusted Net (Loss) Income and Adjusted Net (Loss) Income per Diluted Share exclude after-tax impacts of unusual or one-time benefits or costs, such as gain or loss on investments, net and transaction and other costs[23](index=23&type=chunk) - ROCE is presented as a measure to evaluate profitability and the efficiency with which management has employed capital over time, calculated as the ratio of adjusted pre-tax net income to Average Capital Employed[24](index=24&type=chunk) - These non-GAAP measures are used by the board, management, investors, and lenders to assess financial performance on a consistent basis, but they do not have standardized meanings and are not substitutes for U.S. GAAP measures[22](index=22&type=chunk)[25](index=25&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) [Forward-Looking Statements Disclaimer](index=5&type=section&id=Forward-Looking%20Statements%20Disclaimer) This section advises that the earnings release contains forward-looking statements regarding future performance, market outlook, and strategies, subject to inherent risks and uncertainties, cautioning that actual results may differ materially, and recommends reviewing SEC filings for risk factors - The information includes 'forward-looking statements' concerning expected growth, future operating results, industry outlooks, business strategy, capital expenditures, and financial position[26](index=26&type=chunk) - These statements involve certain assumptions, risks, and uncertainties, and actual results may differ materially from those indicated or implied[26](index=26&type=chunk) - Liberty has no obligation to affirm or update such information, except as required by law, and advises readers to consider risk factors in its most recent Annual Report on Form 10-K and other SEC filings[26](index=26&type=chunk)[27](index=27&type=chunk) [Contact Information](index=5&type=section&id=Contact) [Investor Relations Contact](index=5&type=section&id=Investor%20Relations%20Contact) Contact information for Liberty Energy's investor relations is provided, including the Chief Financial Officer and Vice President of Investor Relations, with phone and email details - Contact for investor relations: Michael Stock (Chief Financial Officer) and Anjali Voria, CFA (Vice President of Investor Relations)[28](index=28&type=chunk) - Phone: 303-515-2851; Email: IR@libertyenergy.com[28](index=28&type=chunk) [Selected Financial Data (Tables)](index=6&type=section&id=Selected%20Financial%20Data%20(Tables)) [Statement of Operations Data](index=6&type=section&id=Statement%20of%20Operations%20Data) This table presents unaudited statement of operations data for the three and nine months ended September 30, 2025, and comparable periods, detailing revenue, costs, operating income/loss, net income, and EPS Statement of Operations Data (Amounts in Thousands, Except for Per Share Data) | | Three Months Ended | | | | Nine Months Ended | | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | Sep 30, 2025 | Sep 30, 2024 | | **Statement of Operations Data:** | (amounts in thousands, except for per share data) | | | | | | | Revenue | $ 947,397 | $ 1,042,521 | $ 1,138,578 | $ 2,967,379 | $ 3,371,587 | | Costs of services (exclusive of | | | | | | | | depreciation, depletion, and | | | | | | | | amortization shown separately below) | 769,761 | 812,107 | 840,274 | 2,343,484 | 2,458,752 | | General and administrative (1) | 58,284 | 58,344 | 58,614 | 182,403 | 169,300 | | Transaction and other costs | — | — | — | 811 | — | | Depreciation, depletion, and | | | | | | | | amortization | 122,981 | 129,366 | 126,395 | 380,089 | 372,886 | | (Gain) loss on disposal of assets, net | (1,210) | 5,631 | 6,017 | 7,766 | 6,105 | | Total operating costs and expenses | 949,816 | 1,005,448 | 1,031,300 | 2,914,553 | 3,007,043 | | Operating (loss) income | (2,419) | 37,073 | 107,278 | 52,826 | 364,544 | | (Gain) loss on investments, net | (68,353) | (68,242) | 2,727 | (155,883) | (4,474) | | Interest expense, net | 10,902 | 10,162 | 8,589 | 30,607 | 23,715 | | Net income before income taxes | 55,032 | 95,153 | 95,962 | 178,102 | 345,303 | | Income tax expense | 11,977 | 24,137 | 22,158 | 43,920 | 81,186 | | Net income | 43,055 | 71,016 | 73,804 | 134,182 | 264,117 | | Net income per common share: | | | | | | | | Basic | $ 0.27 | $ 0.44 | $ 0.45 | $ 0.83 | $ 1.59 | | Diluted | $ 0.26 | $ 0.43 | $ 0.44 | $ 0.81 | $ 1.55 | | Weighted average common shares | | | | | | | | outstanding: | | | | | | | | Basic | 161,959 | 161,865 | 164,741 | 161,921 | 165,755 | | Diluted | 165,066 | 164,243 | 168,595 | 165,126 | 169,947 | | Other Financial and Operational Data | | | | | | | | Capital expenditures (2) | $ 113,034 | $ 134,046 | $ 162,835 | $ 367,958 | $ 438,909 | | Adjusted EBITDA (3) | $ 127,679 | $ 180,798 | $ 247,811 | $ 476,627 | $ 765,853 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This table provides unaudited condensed consolidated balance sheet data as of September 30, 2025, and December 31, 2024, detailing assets, liabilities, and stockholders' equity Condensed Consolidated Balance Sheets (Amounts in Thousands) | | | September 30, | | December 31, | | :--- | :--- | :--- | :--- | :--- | | | | 2025 | | 2024 | | **Assets** | | | | | | Current assets: | | | | | | Cash and cash equivalents | $ | 13,454 | $ | 19,984 | | Accounts receivable and unbilled revenue | | 573,801 | | 539,856 | | Inventories | | 184,420 | | 203,469 | | Prepaids and other current assets | | 122,733 | | 85,214 | | Total current assets | | 894,408 | | 848,523 | | Property and equipment, net | | 1,925,871 | | 1,890,998 | | Operating and finance lease right-of-use assets | | 398,358 | | 356,435 | | Other assets | | 135,928 | | 119,402 | | Investment in equity securities | | 148,820 | | 81,036 | | **Total assets** | $ | **3,503,385** | $ | **3,296,394** | | **Liabilities and Equity** | | | | | | Current liabilities: | | | | | | Accounts payable and accrued liabilities | $ | 559,673 | $ | 571,305 | | Current portion of operating and finance lease liabilities | | 117,530 | | 95,218 | | Total current liabilities | | 677,203 | | 666,523 | | Long-term debt | | 253,000 | | 190,500 | | Noncurrent portion of operating and finance lease liabilities | | 255,454 | | 247,888 | | Deferred tax liability | | 180,883 | | 137,728 | | Payable pursuant to tax receivable agreements | | 67,180 | | 74,886 | | **Total liabilities** | | **1,433,720** | | **1,317,525** | | Stockholders' equity: | | | | | | Common stock | | 1,620 | | 1,619 | | Additional paid in capital | | 970,123 | | 977,484 | | Retained earnings | | 1,113,968 | | 1,019,517 | | Accumulated other comprehensive loss | | (16,046) | | (19,751) | | **Total stockholders' equity** | | **2,069,665** | | **1,978,869** | | **Total liabilities and equity** | $ | **3,503,385** | $ | **3,296,394** | [Reconciliation of Net Income to EBITDA and Adjusted EBITDA](index=8&type=section&id=Reconciliation%20of%20Net%20Income%20to%20EBITDA%20and%20Adjusted%20EBITDA) This table provides a reconciliation of net income to EBITDA and Adjusted EBITDA for the three and nine months ended September 30, 2025, and comparable periods, detailing the specific adjustments made to arrive at these non-GAAP measures Reconciliation of Net Income to EBITDA and Adjusted EBITDA (Amounts in Thousands) | | | | | Three Months Ended | | | | | Nine Months Ended | | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | | Sep 30, | | | Jun 30, | | Sep 30, | | | Sep 30, | | | | 2025 | | | 2025 | | 2024 | 2025 | | | 2024 | | Net income | $ | 43,055 | $ | 71,016 | $ | 73,804 | $ | 134,182 | $ | 264,117 | | Depreciation, depletion, and | | | | | | | | | | | | amortization | | 122,981 | | 129,366 | | 126,395 | | 380,089 | | 372,886 | | Interest expense, net | | 10,902 | | 10,162 | | 8,589 | | 30,607 | | 23,715 | | Income tax expense | | 11,977 | | 24,137 | | 22,158 | | 43,920 | | 81,186 | | **EBITDA** | $ | **188,915** | $ | **234,681** | $ | **230,946** | $ | **588,798** | $ | **741,904** | | Stock-based compensation expense | | 7,301 | | 8,101 | | 8,121 | | 33,482 | | 22,318 | | (Gain) loss on investments, net | | (68,353) | | (68,242) | | 2,727 | | (155,883) | | (4,474) | | (Gain) loss on disposal of assets, net | | (1,210) | | 5,631 | | 6,017 | | 7,766 | | 6,105 | | Transaction and other costs | | — | | — | | — | | 811 | | — | | Provision for credit losses | | 1,026 | | 627 | | — | | 1,653 | | — | | **Adjusted EBITDA** | $ | **127,679** | $ | **180,798** | $ | **247,811** | $ | **476,627** | $ | **765,853** | [Reconciliation of Net Income and Net Income per Diluted Share to Adjusted Net (Loss) Income and Adjusted Net (Loss) Income per Diluted Share](index=8&type=section&id=Reconciliation%20of%20Net%20Income%20and%20Net%20Income%20per%20Diluted%20Share%20to%20Adjusted%20Net%20(Loss)%20Income%20and%20Adjusted%20Net%20(Loss)%20Income%20per%20Diluted%20Share) This table reconciles GAAP net income and diluted EPS to Adjusted Net (Loss) Income and Adjusted Net (Loss) Income per Diluted Share for the three and nine months ended September 30, 2025, and comparable periods, showing non-GAAP adjustments Reconciliation of Net Income and Net Income per Diluted Share to Adjusted Net (Loss) Income and Adjusted Net (Loss) Income per Diluted Share (Amounts in Thousands, Except for Per Share Data) | | | | Three Months Ended | | | | | | Nine Months Ended | | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | | Sep 30, | | Jun 30, | | Sep 30, | | Sep 30, | | | 2024 | | | 2025 | | 2025 | | 2024 | | 2025 | | | | | Net income | $ | 43,055 | $ | 71,016 | $ | 73,804 | $ | 134,182 | $ | 264,117 | | Adjustments: | | | | | | | | | | | | Less: (Gain) Loss on investments, net | | (68,353) | | (68,242) | | 2,727 | | (155,883) | | (4,474) | | Add back: Transaction and other costs | | — | | — | | — | | 811 | | — | | Total adjustments, before income | | | | | | | | | | | | taxes | | (68,353) | | (68,242) | | 2,727 | | (155,072) | | (4,474) | | Income tax effect of adjustments | | (15,756) | | (17,373) | | 656 | | (38,303) | | (1,051) | | **Adjusted Net (Loss) Income** | $ | **(9,542)** | $ | **20,147** | $ | **75,875** | $ | **17,413** | $ | **260,694** | | Diluted weighted average common | | | | | | | | | | | | shares outstanding | | 165,066 | | 164,243 | | 168,595 | | 165,126 | | 169,947 | | Net income per diluted share | $ | 0.26 | $ | 0.43 | $ | 0.44 | $ | 0.81 | $ | 1.55 | | **Adjusted Net (Loss) Income per Diluted** | | | | | | | | | | | | **Share** | $ | **(0.06)** | $ | **0.12** | $ | **0.45** | $ | **0.11** | $ | **1.53** | [Calculation of Adjusted Pre-Tax Return on Capital Employed](index=9&type=section&id=Calculation%20of%20Adjusted%20Pre-Tax%20Return%20on%20Capital%20Employed) This table details the calculation of Adjusted Pre-Tax Return on Capital Employed (ROCE) for the twelve months ended September 30, 2025, showing adjustments to net income and average capital employed, resulting in an ROCE of **2%** Calculation of Adjusted Pre-Tax Return on Capital Employed (Amounts in Thousands) | | | Twelve Months Ended | | | | :--- | :--- | :--- | :--- | :--- | | | | September 30, | | | | | | 2025 | | 2024 | | Net income | $ | 186,075 | | | | Add back: Income tax expense | | 49,995 | | | | Add back: Loss on remeasurement of liability under tax receivable agreements (1) | | 3,210 | | | | Less: Gain on investments, net | | (200,636) | | | | Add back: Transaction and other costs | | 811 | | | | **Adjusted Pre-tax net income** | $ | **39,455** | | | | **Capital Employed** | | | | | | Total debt | $ | 253,000 | $ | 123,000 | | Total equity | | 2,069,665 | | 1,968,998 | | **Total Capital Employed** | $ | **2,322,665** | $ | **2,091,998** | | **Average Capital Employed (2)** | $ | **2,207,332** | | | | **Adjusted Pre-Tax Return on Capital Employed (3)** | | **2 %** | | |

DENVER--(BUSINESS WIRE)--Liberty Energy Inc. (NYSE: LBRT; "Liberty†or the "Company†) today reported third quarter 2025 financial and operational results. Summary Results and Highlights Revenue of $947 million, a 9% sequential decrease Net income of $43 million, or $0.26 fully diluted earnings per share ("EPS†) Adjusted EBITDA1 of $128 million Distributed $13 million to shareholders through cash dividends Increased quarterly cash dividend by 13% to $0.09 per share beginning fourth quarter of 20. ...

Core Insights - Liberty Energy Inc. (LBRT) has significantly underperformed over the past year, with a decline of approximately 39.7%, making it one of the worst performers in its sector and sub-industry [1][2][18] - The broader Oil & Gas Field Services sub-industry saw a decline of 13.6%, while the Oil & Energy sector faced a decrease of 4.3%, highlighting LBRT's negative performance relative to its peers [2] Performance Overview - LBRT's performance is starkly contrasted by companies like Ranger Energy Services (RNGR), which maintained stable performance without losses [1] - ProPetro Holding (PUMP) and Oceaneering International (OII) also experienced declines of around 37.2% and 12.2%, respectively, but LBRT's decline is more pronounced [2] Headwinds Impacting Performance - LBRT is highly concentrated in completions services, making it vulnerable to the volatile boom-bust cycles of North America's shale activity, unlike competitors with more diversified operations [5][10] - Management has guided for a sequential decline in revenues and adjusted EBITDA for Q3 2025 due to reduced customer activity and pricing pressures [6][8] - The company faces significant pricing pressure in the completions market, with management noting "unconstructive" pricing behavior among peers [9] Market Conditions - The core business of LBRT is heavily tied to North American oil and gas completions, which are expected to slow down in the latter half of the year due to producer discipline [10] - The company acknowledges that the current slowdown will lead to increased equipment cannibalization and attrition, exacerbated by persistent overcapacity in the pressure pumping market [13] Customer Dependence and Analyst Sentiment - LBRT's strategy involves deepening relationships with a limited number of large customers, increasing customer concentration risk [14] - Over the past 60 days, analysts have revised earnings estimates downward for LBRT, indicating growing bearish sentiment regarding its earnings outlook [15][17] Long-Term Prospects - The power business initiatives are still in early stages, with minimal revenue contributions expected in the near term, creating uncertainty for future earnings [11][18] - Unless the company demonstrates improved financial results and operational stability, it may be advisable for investors to consider other opportunities within the oil and gas sector [19]

Key Takeaways Liberty Energy will report Q3 earnings on Oct. 16, with breakeven EPS forecast and revenues at $959.1M.Lower customer activity and slower completions are expected to weigh on quarterly performance.Reduced operating and service costs may offer modest support to Liberty Energy's Q3 bottom line.Liberty Energy Inc. (LBRT) , a leading provider of hydraulic services and related technologies to onshore oil and natural gas exploration and production companies in North America, is set to report third-q ...

Core Viewpoint - Liberty Energy Inc. is set to release its financial results for Q3 2025 on October 16, 2025, followed by a conference call on October 17, 2025, to discuss the results [1]. Group 1: Financial Results Announcement - The financial results for the third quarter ending September 30, 2025, will be released after market close on October 16, 2025 [1]. - A conference call to discuss the results will take place at 8:30 a.m. Mountain Time (10:30 a.m. Eastern Time) on October 17, 2025 [1]. Group 2: Conference Call Participation - Individuals can participate in the conference call by dialing (833) 255-2827 for domestic calls or (412) 902-6704 for international callers [2]. - A live webcast will be available at the company's investor relations website, accessible for 90 days post-call [2]. - A telephone replay of the call will be available shortly after, with access numbers provided for both domestic and international callers [2]. Group 3: Company Overview - Liberty Energy Inc. is a leading energy services company and 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 offers advanced distributed power and energy storage solutions for various industries [3]. - Founded in 2011, Liberty Energy focuses on value creation through innovation and the development of next-generation technology [3].

Core Insights - X-ELIO has launched its Liberty Energy Project in Dayton, Texas, which combines 72 MW of solar photovoltaic capacity with 60 MW of battery storage capacity, marking its first combined solar PV and battery energy storage system project in the U.S. [1][3] - The project will supply 100% of the expected power at BASF's Freeport site from renewable energy, supporting BASF's commitment to net-zero emissions by 2050 [3][7]. Company Developments - The Liberty Project is part of a 12-year Power Purchase Agreement (PPA) between BASF and X-ELIO, where BASF will source 48 MW of electricity from the project [3]. - X-ELIO is developing a pipeline of 2.8 GW of solar PV and 2.1 GW of storage projects in the U.S. to advance competitive energy solutions [3]. Community Engagement - X-ELIO's Community & Nature Plan Program includes initiatives such as the creation of a shared green space, construction of a boardwalk for improved accessibility, and restoration of the drainage system at the Liberty Food Bank [4][5]. - The company is also actively recruiting volunteers for local initiatives like Meals on Wheels, demonstrating its commitment to social responsibility [5]. Financial Overview - BASF Corporation reported sales of $19.7 billion in 2024, indicating a strong financial position to support sustainable initiatives [6]. - BASF generated sales of €65.3 billion in 2024, showcasing its global market presence and commitment to sustainability [8]. Company Background - X-ELIO, a Brookfield-owned company, specializes in renewable energy project development with a global presence and over 3 GW built [9]. - BASF operates as a leading chemical company with a focus on enabling customers' green transformation [8].

Core Insights - Liberty Energy Inc. (LBRT) is a North American oilfield services provider focused on hydraulic fracturing and related completion services for onshore shale producers, playing a crucial role in the energy value chain [1] - The company has diversified into power solutions, but the majority of its revenue still comes from its core fracking operations [1] - Over the past 12 months, LBRT's stock has dramatically underperformed, declining by 45.4%, significantly worse than the 10.1% drop in the oilfield services sub-industry and the nearly flat performance of the broader oil and energy sector at -0.3% [3][4] Financial Performance - For Q2 2025, LBRT reported an adjusted net income of $20 million, down from $103 million in Q2 2024, and adjusted EBITDA fell to $181 million from $273 million year-over-year, indicating a significant deterioration in financial performance [5] - The decline in earnings is attributed to softening completion activity and increasing pricing pressures in the industry [5] Market Challenges - Management has warned of emerging pricing headwinds expected to negatively impact results in the second half of 2025, with anticipated pricing erosion across its fleet [6][9] - The company has cut its 2025 capital expenditure (CapEx) by $75 million, signaling reduced demand and a cautious outlook [8][12] - LBRT plans to reduce the number of active fleets, indicating falling demand for its services, which may lead to lower revenues and earnings in the coming quarters [11] Strategic Adjustments - The withdrawal of full-year financial guidance highlights elevated near-term uncertainty and volatility in the macro environment [10] - The anticipated slowdown in activity is expected to accelerate equipment attrition, with the attrition rate projected to climb into the "mid-teens" [13] - Despite efforts to diversify into power solutions, these ventures have long gestation periods, with revenues not expected until at least 2027 [15] Cash Management - The suspension of share buybacks in Q2 2025 reflects a priority on cash preservation and balance sheet strength amid market uncertainties [16] - Management's cautious stance is further evidenced by the reduction in capital expenditures, indicating a focus on preserving cash rather than pursuing growth opportunities [12] Industry Context - Liberty's heavy reliance on the cyclical U.S. onshore fracking market exposes it to volatility and inconsistent revenues, contrasting with more diversified peers [14] - The company faces execution risks in its non-core power business expansion, which may impact performance if integration issues arise [17]

Liberty Energy (LBRT) Conference Summary Company Overview - Liberty Energy is a leading fracking company in the United States, celebrating its 15th anniversary in 2026, having been founded in 2011 [4][2] - The company has been ranked as the number one frack company in the U.S. for eight consecutive years according to the Kimberlite survey [4] Financial Performance - Liberty Energy reported over $4 billion in revenue last year [6] - The company has a cash return on capital invested averaging 24%, which is 50% higher than the S&P 500 and significantly higher than the OSX average [18] Business Strategy - The company aims to control critical inputs for successful fracking operations, including fuel, sand, and logistics [25] - Liberty has expanded its operations to include a power generation business, launching a CNG (Compressed Natural Gas) business to ensure fuel supply for its operations [27][28] - The company has made strategic acquisitions during downturns, such as acquiring the U.S. assets of Sangio and Schlumberger's onshore North American frac business [22][23] Technological Innovations - Liberty has introduced several technological advancements, including e-frac systems and various iterations of its DigiPrime technology [16] - The company has a complete engineering department that includes geology, reservoir evaluation, frac engineering, and big data analysis teams [17] - Liberty is focused on increasing efficiency through methods like simul frac, which has led to higher utilization of assets [35] Market Dynamics - The fracking market is currently experiencing downward pricing trends, prompting Liberty to explore additional service offerings to maintain margins [24] - The company is adapting to market conditions by lowering its headline fleet count while ensuring that all pumps are utilized effectively [34] Future Outlook - Liberty is investing in power generation, with plans to order 400 megawatts of power generation capacity [39] - The company is exploring partnerships for advanced energy solutions, including small modular nuclear reactors and enhanced geothermal energy [45][46] - Liberty aims to address global energy disparities through initiatives like the Bettering Human Lives Foundation, which focuses on transitioning homes in Sub-Saharan Africa to clean-burning LPG [50][51] Key Takeaways - Liberty Energy has established itself as a leader in the fracking industry with a strong focus on technology, efficiency, and strategic growth [4][18] - The company is well-positioned to navigate current market challenges and capitalize on future opportunities in energy generation and sustainability [39][50]

Financial Performance - Liberty Energy Inc. reported a second-quarter 2025 adjusted net income of 12 cents per share, missing the Zacks Consensus Estimate of 14 cents, and down significantly from 61 cents in the same quarter last year [1][10] - The company's revenues totaled $1 billion, exceeding the Zacks Consensus Estimate by $37 million, but decreased by 10% from $1.2 billion in the prior-year quarter due to a softening of completions activity [2][10] - Adjusted EBITDA was reported at $180.8 million, down from $273.3 million in the year-ago quarter and below the prediction of $194.1 million [2] Costs and Expenses - Total costs and expenses for Liberty Energy were $1 billion in the second quarter, a decrease of 1.2% from the previous year, but higher than the estimated $963.3 million [6] Shareholder Returns - The board of directors declared a quarterly dividend of 8 cents per share, unchanged from the previous quarter, with a total of $13 million returned to shareholders through dividends during the quarter [4] Strategic Initiatives - Liberty Energy announced a collaboration with Oklo to develop advanced power solutions, integrating distributed natural gas power with future small modular nuclear reactors [3] - The company is advancing its technology leadership with the introduction of a variable-speed gas engine and sand slurry system aimed at reducing costs, boosting reliability, and minimizing emissions [5] - Strategic alliances were formed in Pennsylvania and Colorado to develop power facilities that utilize on-site generation and microgrids to meet evolving energy needs [5] Balance Sheet and Capital Expenditure - As of June 30, Liberty Energy had approximately $19.6 million in cash and cash equivalents, with long-term debt of $160 million, resulting in a debt-to-capitalization ratio of 7.3% [7] - The company spent $134 million on its capital program during the quarter, which was lower than the estimated $165.7 million [7] Market Outlook - The oil markets are experiencing volatility due to global economic shifts and geopolitical tensions, yet North America's production remains stable [11] - Producers are maintaining stable production levels while cautiously managing capital spending, which may lead to increased equipment attrition and a tightening of service supply [12] - Liberty Energy plans to scale down its deployed fleet slightly while reallocating capacity to support its growing simul frac business for key long-term clients [14]

[PART I: FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents Liberty Energy Inc.'s unaudited condensed consolidated financial statements for the quarter ended June 30, 2025, including balance sheets, statements of operations, comprehensive income, equity changes, and cash flows [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$3.44 billion** as of June 30, 2025, from **$3.30 billion** at year-end 2024, with total liabilities rising to **$1.41 billion** and stockholders' equity reaching **$2.03 billion** Condensed Consolidated Balance Sheet Highlights (in thousands of USD) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $921,377 | $848,523 | | **Property and equipment, net** | $1,929,426 | $1,890,998 | | **Total Assets** | **$3,441,048** | **$3,296,394** | | **Total Current Liabilities** | $793,378 | $666,523 | | **Long-term debt** | $160,000 | $190,500 | | **Total Liabilities** | **$1,406,065** | **$1,317,525** | | **Total Stockholders' Equity** | **$2,034,983** | **$1,978,869** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 revenue decreased to **$1.04 billion** from **$1.16 billion** year-over-year, with net income falling to **$71.0 million**, while six-month revenue declined to **$2.02 billion** and net income to **$91.1 million** Statement of Operations Summary (in thousands of USD, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $1,042,521 | $1,159,884 | $2,019,982 | $2,233,009 | | **Operating Income** | $37,073 | $141,833 | $55,245 | $257,266 | | **Net Income** | $71,016 | $108,421 | $91,127 | $190,313 | | **Diluted EPS** | $0.43 | $0.64 | $0.55 | $1.12 | - A significant contributor to net income in Q2 2025 was a **$68.2 million** gain on investments, compared to a **$7.2 million** gain in Q2 2024[17](index=17&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities for H1 2025 was **$362.7 million**, a decrease from the prior year, with net cash used in investing activities decreasing and financing activities increasing, leading to a slight overall decrease in cash Cash Flow Summary for Six Months Ended June 30 (in thousands of USD) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $362,707 | $407,587 | | **Net cash used in investing activities** | ($189,293) | ($292,130) | | **Net cash used in financing activities** | ($174,083) | ($121,988) | | **Net decrease in cash and cash equivalents** | ($669) | ($6,531) | | **Cash and cash equivalents—end of period** | $19,563 | $30,043 | - Key financing activities in H1 2025 included **$24.9 million** in share repurchases and **$26.9 million** in dividend payments[25](index=25&type=chunk) - Investing activities in H1 2025 included **$271.4 million** in property and equipment purchases and proceeds of **$80.8 million** from the sale of equity securities[25](index=25&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section details accounting policies, recent acquisitions, debt facilities, equity transactions, and subsequent events, highlighting the IMG Energy Solutions acquisition, ABL Facility replacement, share repurchases, dividends, and equity investment gains - On March 3, 2025, the Company acquired IMG Energy Solutions for approximately **$19.6 million** in cash, recording **$12.6 million** in goodwill and intangible assets[38](index=38&type=chunk) - The Company's investment in Oklo Inc. was valued at **$58.0 million** as of June 30, 2025, resulting in a gain of **$87.2 million** during the first six months of 2025, with **$80.8 million** in shares sold during this period[75](index=75&type=chunk) - Subsequent to the quarter end, on July 24, 2025, the Company terminated its **$525.0 million** ABL Facility and entered into a new Credit Agreement for a **$750.0 million** Revolving Credit Facility[63](index=63&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk) - During the six months ended June 30, 2025, the Company repurchased **1.55 million** shares for **$24.0 million** and paid cash dividends of **$0.16 per share** totaling **$25.9 million**[89](index=89&type=chunk)[95](index=95&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a **10%** year-over-year revenue decline for Q2 2025 due to lower pricing and reduced activity, anticipating a gradual slowdown in completions for H2 2025, while highlighting strong operating cash flow and a new credit facility [Recent Trends and Outlook](index=29&type=section&id=Recent%20Trends%20and%20Outlook) North American oil production remains stable, but a gradual slowdown in completions activity is anticipated for H2 2025, leading to pricing pressure and planned modest reductions in the company's deployed fleet count - Completions activity is expected to gradually slow during the second half of 2025 due to disciplined capital deployment by producers[146](index=146&type=chunk) - The Company plans to modestly reduce its deployed fleet count for the remainder of 2025 and reposition horsepower to support expanded simul-frac offerings[147](index=147&type=chunk) Key Market Indicators | Indicator | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | **Avg. WTI Price ($/Bbl)** | $64.57 | $71.78 | $81.81 | | **Avg. Henry Hub Price ($/MMBtu)** | $3.19 | $4.14 | $2.06 | | **Avg. US & Canada Rig Count** | 686 | 788 | 716 | [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Q2 2025 revenue decreased **10%** year-over-year to **$1.0 billion** due to lower pricing and activity, significantly impacting operating income, though a **$87.5 million** gain on investments partially offset the decline in H1 2025 net income Results of Operations Comparison (in thousands of USD) | Description | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $1,042,521 | $1,159,884 | ($117,363) | | **Operating income** | $37,073 | $141,833 | ($104,760) | | **Net income** | $71,016 | $108,421 | ($37,405) | Non-GAAP Reconciliation: Net Income to Adjusted EBITDA (in thousands of USD) | Description | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net income** | $71,016 | $108,421 | $91,127 | $190,313 | | **EBITDA** | $234,681 | $272,339 | $399,883 | $510,958 | | **Adjusted EBITDA** | $180,798 | $273,256 | $348,948 | $518,042 | - The decrease in Adjusted EBITDA for Q2 2025 compared to Q2 2024 was primarily driven by lower pricing, partially offset by changes in activity levels[169](index=169&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by operating cash flow and a new **$750.0 million** Revolving Credit Facility, replacing the prior ABL Facility, with H1 2025 operating cash flow at **$362.7 million** used for capital expenditures, share repurchases, and dividends - As of June 30, 2025, the company had **$160.0 million** outstanding on its ABL Facility with **$256.4 million** of remaining availability[174](index=174&type=chunk) - Effective July 24, 2025, the ABL Facility was terminated and replaced by a new Credit Agreement with a **$750.0 million** revolving credit facility, enhancing financial flexibility[176](index=176&type=chunk) Cash Flow Summary for Six Months Ended June 30 (in thousands of USD) | Description | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $362,707 | $407,587 | | **Net cash used in investing activities** | ($189,293) | ($292,130) | | **Net cash used in financing activities** | ($174,083) | ($121,988) | [Item 3. 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 from Canadian and Australian operations, resulting in a **$6.1 million** translation gain for H1 2025, with no other material changes to market risk exposures - The company's operations in Canada and Australia expose it to foreign currency translation risk[193](index=193&type=chunk) - For the six months ended June 30, 2025, a foreign currency translation gain of **$6.1 million** was recorded, compared to a loss of **$5.4 million** for the same period in 2024[194](index=194&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, following the integration of IMG Energy Solutions' accounting functions and corresponding internal control updates - The principal executive officer and principal financial officer concluded that disclosure controls and procedures were effective as of June 30, 2025[196](index=196&type=chunk) - During Q2 2025, the company integrated the accounting functions of the recently acquired IMG Energy Solutions, modifying business processes and internal controls accordingly[197](index=197&type=chunk) [PART II: OTHER INFORMATION](index=37&type=section&id=PART%20II%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) Information on legal proceedings is incorporated by reference from Note 14, with management not expecting any current matters to materially adversely affect the company's financial position - The company is subject to various legal proceedings from time to time, but management does not expect them to have a material adverse effect on financial results[129](index=129&type=chunk)[201](index=201&type=chunk) [Item 1A. Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K have been identified - No material changes to the risk factors set forth in the Annual Report were identified[203](index=203&type=chunk) [Item 5. Other Information](index=37&type=section&id=Item%205.%20Other%20Information) This section details significant post-quarter corporate financing activities, including the termination of the existing ABL Facility and the establishment of a new, larger **$750.0 million** revolving credit facility on July 24, 2025 - On July 24, 2025, the Company terminated its ABL Facility and entered into a new Credit Agreement[208](index=208&type=chunk)[209](index=209&type=chunk) - The new Credit Agreement provides for a revolving credit facility with initial commitments of **$750.0 million**, an increase from the previous facility, and includes an accordion feature for an additional **$200.0 million**[210](index=210&type=chunk) [Item 6. Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section indexes exhibits filed with the Form 10-Q, including corporate governance documents, the new Credit Agreement, officer certifications, and XBRL data files - Key exhibits filed include the new Credit Agreement dated July 24, 2025, and officer certifications pursuant to the Sarbanes-Oxley Act[219](index=219&type=chunk)