Financial Data and Key Metrics Changes - Revenue for the second quarter of 2025 was $1,000 million, a 7% increase from $977 million in the prior quarter [19] - Net income rose to $71 million from $20 million in the previous quarter, while adjusted net income increased to $20 million from $7 million [19] - Adjusted EBITDA for the quarter was $181 million, up 8% from $168 million in the prior quarter [20] - General and administrative expenses decreased to $58 million from $66 million in the previous quarter [20] - The company ended the quarter with a cash balance of $20 million and net debt of $140 million, a decrease of $46 million from the prior quarter [20] Business Line Data and Key Metrics Changes - The company experienced increased activity across nearly all business lines, which helped offset pricing headwinds and softer conditions in the Permian sand markets [18] - The company is planning to reduce its deployed fleet count and reposition horsepower to support expanded demand for simul frac offerings [5][18] Market Data and Key Metrics Changes - The energy sector faced renewed uncertainty due to tariff policies, OPEC production changes, and geopolitical tensions [5] - Completions activity is expected to gradually slow in the second half of 2025, reflecting disciplined capital deployment and contributing to market pricing pressures [15] Company Strategy and Development Direction - The company is focusing on leveraging its full suite of completion products and services to drive increased engagement with customers [5] - Strategic alliances have been formed for power facility development in Pennsylvania and Colorado, addressing barriers faced by commercial and industrial developers [11] - The company is committed to innovation in high-efficiency, low-emission technologies, with advancements in its DigiPrime enhancement and the introduction of a sand slurry system [6][10] Management's Comments on Operating Environment and Future Outlook - Management noted that while the second quarter was strong, a reduction in activity is anticipated due to falling rig counts and pricing headwinds [38][42] - The company expects third-quarter revenue and EBITDA to soften sequentially, with a potential low single-digit pricing headwind [22][43] - Management expressed confidence in the company's ability to navigate market uncertainties and create value through strategic investments [23] Other Important Information - The company announced a $225 million increase in its credit facility to support strategic growth in power generation [21] - Total capital expenditures for 2025 are expected to be approximately $575 million, with a reduction in planned spending due to market conditions [22] Q&A Session Summary Question: Can you talk about the current supply chain for incremental capacity in power generation? - Management indicated that there is incremental capacity available, and they could significantly expand their order book for 2026 if desired [26][27] Question: How do you view the relationship with Aqua regarding long-term power solutions? - Management stated that the partnership provides a bridge for immediate power needs until SMRs can be deployed, with a focus on flexibility and reliability [30][32] Question: What is the outlook for revenue and EBITDA in the third quarter? - Management expects a mid-single-digit reduction in activity and low single-digit pricing headwinds, with more clarity on fourth-quarter expectations to come [38][43] Question: Can you clarify the CapEx reduction and its components? - Management noted that the reduction is approximately split between frac and power generation delays, with no significant concerns about delivery times [66][67] Question: What is the expected timeline for revenue from the Oklo partnership? - Management anticipates revenue from initial power generation to begin in 2027, with nuclear power revenue expected in the early 2030s [108]

Company Performance - Liberty Oilfield Services reported quarterly earnings of $0.12 per share, missing the Zacks Consensus Estimate of $0.14 per share, and down from $0.61 per share a year ago [1] - The quarterly report represents an earnings surprise of -14.29%, while the previous quarter saw a positive surprise of +33.33% [2] - The company posted revenues of $1.04 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.70%, but down from $1.16 billion year-over-year [3] Stock Performance - Liberty Oilfield Services shares have lost about 33.4% since the beginning of the year, contrasting with the S&P 500's gain of 8.1% [4] - The current consensus EPS estimate for the coming quarter is $0.06 on revenues of $985.9 million, and $0.29 on revenues of $3.88 billion for the current fiscal year [8] Industry Outlook - The Oil and Gas - Field Services industry is currently in the bottom 4% of over 250 Zacks industries, indicating a challenging environment for stocks in this sector [9] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment [6]

[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) [Q2 2025 Performance Summary](index=1&type=section&id=Q2%202025%20Performance%20Summary) Liberty Energy reported strong Q2 2025 results, achieving sequential revenue and Adjusted EBITDA growth through record efficiencies and increased utilization, despite market pricing pressures, and distributed $13 million to shareholders Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Sequential Change | | :--- | :--- | :--- | | Revenue | $1.0 billion | +7% | | Net Income | $71 million | - | | Fully Diluted EPS | $0.43 | - | | Adjusted EBITDA | $181 million | +8% | - Strong performance was attributed to record efficiencies and increased utilization, which more than compensated for industry pricing headwinds amidst softening completions activity[3](index=3&type=chunk) - The company delivered a **7%** Trailing Twelve Months (TTM) Adjusted Pre-Tax Return on Capital Employed (ROCE)[5](index=5&type=chunk) - Distributed **$13 million** to shareholders via cash dividends during the quarter[5](index=5&type=chunk)[12](index=12&type=chunk) [Strategic Developments & Technology](index=1&type=section&id=Strategic%20Developments%20%26%20Technology) The company advanced its technology leadership by field-testing its digiPrime enhancement and a last-mile sand slurry pipe system, while forming strategic alliances for integrated power solutions for data centers and industrial users, including small modular nuclear reactors - Commenced field testing of the digiPrime technology using a natural gas variable speed engine, aiming for high efficiency and low emissions[3](index=3&type=chunk)[5](index=5&type=chunk) - Successfully completed a field trial of the PropX slurry pipe system, designed to reduce costs, improve reliability, and decrease the environmental footprint of last-mile sand delivery[3](index=3&type=chunk)[5](index=5&type=chunk) - Announced strategic collaborations to supply integrated power solutions for potential data center and industrial developments in Pennsylvania (with Range Resources) and Colorado (with AltitudeX Aviation Group)[3](index=3&type=chunk)[5](index=5&type=chunk) - Formed a strategic alliance with Oklo to provide integrated utility-scale power solutions, combining Liberty's Forte℠ natural gas power with a path to integrate small modular nuclear reactors for large load customers[5](index=5&type=chunk)[6](index=6&type=chunk) [Market Outlook](index=2&type=section&id=Market%20Outlook) Despite global economic uncertainties, North American production remains stable due to well-capitalized producers, though completions activity is expected to slow in H2, leading Liberty to modestly reduce its deployed fleet and reposition horsepower to support expanded simulfrac offerings - North American production has remained relatively stable, with larger producers weathering commodity price volatility due to strong balance sheets and efficient operations[7](index=7&type=chunk)[8](index=8&type=chunk) - Completions activity is expected to gradually slow in the second half of the year due to disciplined capital deployment, which will contribute to market pricing pressure on services[9](index=9&type=chunk) - In response to market pressures, Liberty plans to modestly reduce its deployed fleet count and reposition assets to support its expanded simulfrac offering[11](index=11&type=chunk) [Financial Results](index=3&type=section&id=Financial%20Results) [Second Quarter 2025 Results](index=3&type=section&id=Second%20Quarter%202025%20Results) For Q2 2025, Liberty generated $1.0 billion in revenue, a 7% sequential increase but a 10% year-over-year decrease, with net income of $71 million and Adjusted EBITDA of $181 million, reflecting mixed performance compared to prior periods Comparative Financial Performance | Financial Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Revenue | $1.0B | $977M | $1.2B | | Net Income | $71M | $20M | $108M | | Adjusted EBITDA | $181M | $168M | $273M | | Diluted EPS | $0.43 | $0.12 | $0.64 | | Adjusted Diluted EPS | $0.12 | $0.04 | $0.61 | [Balance Sheet and Liquidity](index=3&type=section&id=Balance%20Sheet%20and%20Liquidity) As of June 30, 2025, Liberty maintained $20 million in cash and $160 million in total debt, with total liquidity of $276 million, further enhancing its financial flexibility by expanding its credit facility to $750 million in July 2025 Balance Sheet Snapshot | Balance Sheet Item | As of June 30, 2025 | | :--- | :--- | | Cash on Hand | $20 million | | Total Debt | $160 million | | Total Liquidity | $276 million | - In July 2025, the company expanded its credit facility from **$525 million to $750 million** to support strategic growth in power generation[5](index=5&type=chunk)[17](index=17&type=chunk) [Shareholder Returns](index=2&type=section&id=Shareholder%20Returns) During Q2, Liberty paid a cash dividend of $0.08 per share, totaling approximately $13 million, and the Board of Directors declared another quarterly dividend of $0.08 per share payable on September 18, 2025 - Paid a quarterly cash dividend of **$0.08 per share** of Class A common stock, totaling approximately **$13 million**, during Q2 2025[12](index=12&type=chunk) - On July 15, 2025, the Board declared a cash dividend of **$0.08 per share**, to be paid on September 18, 2025[12](index=12&type=chunk) [Appendix: Financial Statements and Reconciliations](index=6&type=section&id=Appendix%3A%20Financial%20Statements%20and%20Reconciliations) [Selected Financial Data (Statements of Operations)](index=6&type=section&id=Selected%20Financial%20Data%20%28Statements%20of%20Operations%29) This section provides unaudited consolidated statements of operations for Q2 2025 and Q2 2024, detailing revenue, costs, operating income, net income, and earnings per share Selected Statements of Operations Data (Unaudited) | (In thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenue | $1,042,521 | $1,159,884 | | Operating Income | $37,073 | $141,833 | | Net Income | $71,016 | $108,421 | | Diluted EPS | $0.43 | $0.64 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents unaudited condensed consolidated balance sheets as of June 30, 2025, and December 31, 2024, outlining the company's assets, liabilities, and stockholders' equity Condensed Consolidated Balance Sheets (Unaudited) | (In thousands) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $921,377 | $848,523 | | Total Assets | $3,441,048 | $3,296,394 | | Total Current Liabilities | $793,378 | $666,523 | | Long-term debt | $160,000 | $190,500 | | Total Stockholders' Equity | $2,034,983 | $1,978,869 | [Non-GAAP Reconciliations](index=8&type=section&id=Non-GAAP%20Reconciliations) This section provides detailed reconciliations of non-GAAP financial measures to their most directly comparable GAAP counterparts, including EBITDA, Adjusted EBITDA, Adjusted Net Income, and Adjusted Pre-Tax Return on Capital Employed (ROCE) [Reconciliation of Net Income to EBITDA and Adjusted EBITDA](index=8&type=section&id=Reconciliation%20of%20Net%20Income%20to%20EBITDA%20and%20Adjusted%20EBITDA) For Q2 2025, Net Income of $71.0 million was reconciled to EBITDA of $234.7 million and Adjusted EBITDA of $180.8 million, with key adjustments including depreciation & amortization, a gain on investments, and stock-based compensation Reconciliation of Net Income to EBITDA and Adjusted EBITDA (Unaudited) | (In thousands) | Q2 2025 | | :--- | :--- | | Net Income | $71,016 | | EBITDA | $234,681 | | Adjustments | ($53,883) | | **Adjusted EBITDA** | **$180,798** | [Reconciliation of Net Income to Adjusted Net Income](index=8&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Net%20Income) For Q2 2025, GAAP Net Income of $71.0 million ($0.43 per diluted share) was reconciled to Adjusted Net Income of $20.1 million ($0.12 per diluted share), primarily by excluding a $68.2 million pre-tax gain on investments Reconciliation of Net Income to Adjusted Net Income (Unaudited) | (In thousands, except per share) | Q2 2025 | | :--- | :--- | | Net Income | $71,016 | | Total adjustments, before income taxes | ($68,242) | | **Adjusted Net Income** | **$20,147** | | Net income per diluted share | $0.43 | | **Adjusted Net Income per Diluted Share** | **$0.12** | [Calculation of Adjusted Pre-Tax Return on Capital Employed (ROCE)](index=9&type=section&id=Calculation%20of%20Adjusted%20Pre-Tax%20Return%20on%20Capital%20Employed%20%28ROCE%29) For the twelve months ended June 30, 2025, the company calculated an Adjusted Pre-Tax Return on Capital Employed (ROCE) of 7%, derived from an Adjusted Pre-tax net income of $151.5 million and an Average Capital Employed of $2.14 billion Adjusted Pre-Tax Return on Capital Employed (ROCE) Calculation (Unaudited) | (In thousands) | Twelve Months Ended June 30, 2025 | | :--- | :--- | | Adjusted Pre-tax net income | $151,465 | | Average Capital Employed | $2,139,439 | | **Adjusted Pre-Tax ROCE** | **7%** |

Core Viewpoint - Liberty Energy Inc. (LBRT) is expected to report second-quarter earnings on July 24, with earnings estimated at 15 cents per share and revenues at $1.01 billion, reflecting significant year-over-year declines in both metrics [1][9]. Group 1: Recent Performance - In the previous quarter, LBRT reported adjusted net income of 4 cents per share, exceeding the Zacks Consensus Estimate by 1 cent, driven by improved operational efficiency and higher utilization of its frac and wireline fleets [3]. - The company's revenues for the last quarter were $977.5 million, surpassing the Zacks Consensus Estimate by 3.4% [3]. - LBRT has beaten the Zacks Consensus Estimate three times in the last four quarters, with an average surprise of 6.98% [3]. Group 2: Q2 Earnings Expectations - The Zacks Consensus Estimate for second-quarter earnings indicates a 75.41% year-over-year decline, while revenues are expected to decrease by 13.04% from the previous year's $1.16 billion [4][5][9]. - Factors contributing to the anticipated revenue decline include a subdued global macroeconomic environment and fluctuating energy prices, which typically affect demand for hydraulic fracturing services [6]. Group 3: Cost Management - LBRT is expected to see a reduction in operating expenses, projected to reach $963.3 million, down 5.4% from the previous year [7]. - The cost of services is anticipated to decrease from $835.8 million to $783.6 million, which may help mitigate the impact of lower revenues [7][9]. Group 4: Earnings Prediction Model - The Zacks model does not indicate a conclusive earnings beat for LBRT this quarter, with an Earnings ESP of -6.21% and a Zacks Rank of 4 (Sell) [8][10].

Core Insights - Liberty Energy Inc. (LBRT) has experienced a significant share price decline of 40.9% over the past six months, contrasting sharply with the broader oil and energy sector's 3.6% gain and the 10.2% drop in the oil and gas field services sub-industry [1] - The company's net income for Q1 2025 was $20 million, down 75.4% year-over-year from $82 million, indicating severe profitability challenges [5][6] - Liberty Energy's operations are primarily focused on hydraulic fracturing services and related technologies for onshore oil and gas producers in North America, managing around 40 active frac spreads [4] Financial Performance - Adjusted net income fell to $7 million in Q1 2025 from $82 million in Q1 2024, highlighting significant profitability concerns [5] - Adjusted EBITDA decreased by 31% year-over-year to $168 million in Q1 2025, reflecting operational difficulties [14] - The company's capital expenditures (CapEx) reached $121 million in Q1 2025, with plans for $450 million on completions and $200 million on power assets for the year [9] Market Challenges - Liberty Energy faces pricing pressures in its core frac services, with CEO Ron Gusek noting a "modestly lower" pricing reset for 2025 [11] - The company is exposed to tariff and macroeconomic risks, with management acknowledging that tariff announcements and OPEC+ production strategies create uncertainty in the energy sector [7] - Volatility in commodity prices poses a risk to Liberty Energy's revenues and profitability, particularly if oil prices fall below $60 per barrel [8] Operational Risks - High capital expenditures and rising debt levels, with net debt at $186 million and liquidity at $164 million, raise concerns about financial flexibility [9] - The company's dependence on the North American market makes it vulnerable to regional downturns, especially if OPEC+ adjusts production [10] - Customer concentration risks exist, as revenues depend on a limited number of large exploration and production customers [15] Strategic Initiatives - Liberty Energy's expansion into distributed power systems through the acquisition of IMG Energy Solutions carries execution risks, with project timelines extending to Q1 2026 [12] - The company repurchased $24 million in shares in Q1 2025 but indicated a cautious approach due to macroeconomic risks, prioritizing balance sheet strength [13]

Liberty Energy Overview - Liberty Energy is the 4th largest North American Oilfield Services (OFS) company based on TTM revenue through December 31, 2023[7, 9, 25, 27] - The company's average Cash Return on Capital Invested (CROCI) from 2012-2023 is 24%[11, 25] - Liberty Energy's trailing twelve month (TTM) revenue is $47 billion and adjusted EBITDA is $12 billion as of December 31, 2023[25] Technology and Fleet Transition - Liberty Energy expects 90% of its fleet to be primarily natural gas powered by the end of 2024[19] - The company's digiFleets and dual fuel fleets earn premium pricing[19] - digiFleets are expected to comprise the majority of Liberty's fleet within 5-7 years[19] Capital Returns - Liberty Energy has returned $328 million to shareholders through buybacks[20] - The company has repurchased 12% of shares outstanding since the buyback reinstatement in July 2022[20, 25] - Liberty Energy raised the quarterly cash dividend to $007 per share in Q4 2023[20]

Liberty Energy's Performance and Strategy - Liberty Energy is the 4th largest North American Oilfield Services (OFS) company[7, 39] - The company boasts a 12-year average Cash Return on Capital Invested (CROCI) of 24%[11, 39] - Liberty's Adjusted EBITDA for the trailing twelve months (TTM) is $11 billion, with a net income of $431 million and EPS of $250[39] - Liberty has repurchased 13% of its shares since July 2022[35, 39] - The company's annualized dividends are payable at $028 per share[39] Energy Market Dynamics and Liberty's Position - Hydrocarbons still account for 85% of global energy consumption[64, 65] - Liberty expects 90% of its fleets to be primarily natural gas-powered by the end of 2024[29] - Liberty's lateral feet completed have increased by 27% since 2022[24] Return of Capital Program - Liberty has returned $388 million through buybacks[35] - The company's cumulative return of capital is $459 million[35] - Since 2021, Liberty's return of capital is over $600 million[35]

Core Insights - Liberty Energy Inc. (LBRT) is a significant player in the oil and gas field services sector, specializing in hydraulic fracturing, which is crucial for extracting hydrocarbons from challenging geological formations [1][3] - The company operates in key North American oil and gas regions, including the Permian, Eagle Ford, and Marcellus basins, and has its own sand mines to enhance supply chain management [2][3] Financial Position and Shareholder Returns - Liberty maintains a robust financial position with $164 million in liquidity and returned $37 million to shareholders in Q1 through dividends and share buybacks [4] - The company has repurchased 15.9% of its outstanding shares since 2022, indicating strong confidence in its intrinsic value [4] - With a low net debt of $186 million, Liberty is well-positioned to handle market uncertainties [4] Strategic Expansion - The acquisition of IMG Energy Solutions enhances Liberty's capabilities in distributed power systems and opens opportunities in the PJM utility market [5] - Liberty has signed a memorandum of understanding (MOU) for a power generation facility, indicating potential growth beyond traditional oilfield services [5] Market Dynamics - Rising LNG export demand and stronger natural gas prices have led to increased activity in gas-focused basins like Haynesville, allowing Liberty to optimize its fleet for gas-related work [6] - The company benefits from a "flight-to-quality" trend, with customers favoring high-tier service providers, which helps maintain pricing power despite competitive pressures [7] Operational Efficiency and Technology - Liberty has demonstrated strong operational efficiency, with AI-driven predictive maintenance systems extending the lifespan of critical equipment components by 27% for engines and 40% for fluid ends [8] - The introduction of digiPrime technology, including the first natural gas variable speed pump, enhances performance and reduces costs, positioning Liberty as a leader in operational excellence [8] Risks and Challenges - Liberty's earnings are closely tied to oil prices, with a sustained decline below $60 per barrel potentially leading to reduced drilling activity [9] - The company faces inflationary pressures from tariffs on engines and equipment components, which could elevate operational costs [10] - High capital expenditures of $650 million planned for 2025, including $450 million for completions and $200 million for the power business, could strain free cash flow [11] - Competitive pressures in the fracking services market may lead to pricing challenges, especially if smaller competitors undercut rates [12] Outlook and Strategic Uncertainty - Management has indicated uncertainty regarding activity levels in the second half of 2025 due to evolving OPEC+ production strategies and ongoing tariff negotiations [13] - While second-quarter guidance remains positive, a slowdown in North America's production could lead to downward revisions of the full-year EBITDA outlook of $700-$750 million [13] Conclusion - Liberty Energy shows strong financial resilience, significant shareholder returns, and disciplined capital management, positioning the company for long-term growth [14] - However, vulnerabilities to oil price volatility, tariff-related cost inflation, and high capital expenditures present challenges to sustained performance [15]

Core Viewpoint - Liberty Oilfield Services has seen a slight increase in share price by approximately 1.1% since the last earnings report, which is underperforming compared to the S&P 500 [1] Group 1: Earnings and Estimates - Estimates for Liberty Oilfield Services have trended upward over the past month, with a significant shift of 48.95% in the consensus estimate [2] - The most recent earnings report is crucial for understanding the key drivers affecting the company's performance [1] Group 2: VGM Scores - The company currently holds an average Growth Score of C and a Momentum Score of D, while achieving an A grade in the value category, placing it in the top quintile for this investment strategy [3] - The aggregate VGM Score for Liberty Oilfield Services is B, which is relevant for investors not focused on a single strategy [3] Group 3: Outlook - The upward trend in estimates suggests a promising outlook for Liberty Oilfield Services, with a Zacks Rank of 3 (Hold), indicating expectations for an in-line return in the coming months [4]

Company Overview - PEC Ltd has been approved for a 100% acquisition by Alliance Energy Services Pte Ltd for a transaction valued at US$160 million, leading to PEC's delisting from the Singapore Stock Exchange [1] - Liberty Energy Solutions Ltd, the majority owner of Alliance, provides energy engineering solutions and proprietary products to oil & gas refineries and petrochemical facilities globally, holding over 200 patents and performing more than 200 plant turnarounds annually for major clients [2] - PEC reported revenue of SGD 391 million and a net profit of SGD 15 million for the year ending December 31, 2024, with a net cash position of SGD 142 million [2] Strategic Alignment - The acquisition aligns with Liberty Energy's strategy to build a global platform for best-in-class energy solutions, leveraging PEC's strong management team and technical expertise [2] - PEC will continue to operate under its current leadership, enhancing Liberty Energy's capabilities in delivering a broader range of engineering services and products [2] Subsidiaries and Operations - Liberty Energy owns two subsidiaries: CR3 Pte Ltd, which specializes in energy engineering solutions across Asia and the Middle East, and ZymeFlow LLC, known for its innovative chemical decontamination solutions [2][4][6] - CR3 has a strong reputation in handling mission-critical reactor catalysts and offers various services including maintenance and EPC solutions [4] - ZymeFlow's product line is 100% biodegradable and aims to help clients meet sustainability goals while optimizing facility performance [6]