He is the leader of the investing group The Daily Drilling Report where he provides investment analysis for the oil and gas industry. Features of the group include: a model portfolio that covers all segments of upstream oilfield activity with weekly updates, ideas for both U.S and international energy companies, coverage from shale to deepwater drillers, technical analysis to identify catalysts, and more. Learn More .Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of t ...

Group 1 - President-elect Trump appointed Liberty Energy CEO Chris Wright as secretary of energy for his second term, which positively impacted the stock prices of both Liberty Energy and Oklo [1][2] - Liberty Energy, an oilfield services and fracking company, has a market capitalization of nearly $3 billion, with its stock gaining over 3% shortly after the market opened on the day of the announcement [2] - Oklo, a nuclear energy company where Wright serves on the board, saw its stock soar by 12% and has increased approximately 90% in 2024 [2] Group 2 - Chris Wright has publicly advocated for the oil and gas industry, claiming there is no climate crisis and that an energy transition is not occurring [3] - The new secretary of energy will also be part of the newly established Council of National Energy, alongside North Dakota Governor Doug Burgum, who has been appointed as secretary of the interior [3]

Core Viewpoint - Liberty Oilfield Services reported disappointing Q3 2024 earnings, missing both net income and revenue estimates, primarily due to poor execution and increased costs, leading to a decline in share performance [2][3][18] Financial Performance - Adjusted net income for Q3 2024 was 45 cents per share, missing the Zacks Consensus Estimate of 55 cents, and down from 86 cents in the prior year [2] - Revenues totaled $1.14 billion, missing estimates by 0.2% and down 6.6% from $1.22 billion in the previous year [3] - Adjusted EBITDA was $247.8 million, below the projection of $255.9 million and down from $319.2 million year-over-year [3] Shareholder Returns - The board announced a dividend of 8 cents per share, a 14% increase from the previous 7 cents, payable on December 20 [4] - In the quarter, Liberty returned $51 million to shareholders through share repurchases and dividends [4] - The company repurchased 1,939,072 shares at an average price of $20.27, totaling approximately $39 million, and has $323 million remaining for future buybacks [5] Operational Developments - Liberty's fleet technology transition is on track, with plans for 90% of fleets powered by natural gas by 2025 [6] - The company achieved a record for pumping efficiency and completed the highest number of monthly pumping hours in its history [6] Cost and Capital Expenditure - Total costs and expenses were $1.031 billion, a 2% increase from the previous year and higher than projections [7] - Capital expenditures for the quarter were $162.8 million, exceeding projections of $136.6 million [8] Market Outlook - Global oil demand is projected to grow by approximately one million barrels per day this year, with stable oil prices expected to support North American activity [11] - The company anticipates a slowdown in the frac market due to adjustments in E&P operators' development programs, expecting a low double-digit percentage reduction in fourth-quarter activity [13][14] - Liberty expects a rebound in completions activity in early 2025 as operators aim to maintain production levels [14] Strategic Focus - The company plans to maintain a disciplined investment approach, focusing on power generation services and expects healthy free cash flow generation in 2025 [15] - Liberty's aggregate VGM Score is A, indicating strong growth potential despite recent downward trends in estimates [17]

Liberty Energy Inc. (LBRT) reported a third-quarter 2024 adjusted net income of 45 cents per share, which missed the Zacks Consensus Estimate of 55 cents. This was primarily due to poor equipment and services' execution, and lower activity in the reported quarter. Additionally, the bottom line declined from the year-ago quarter's reported figure of 86 cents due to a year-over-year increase in costs and expenses. The Denver, CO-based oil and gas equipment company's revenues totaled $1.14 billion, which misse ...

Revenue and Income - Revenue decreased by $77.3 million, or 6.4%, to $1.1 billion for the three months ended September 30, 2024, compared to $1.2 billion for the same period in 2023[88] - Revenue for the nine months ended September 30, 2024, decreased by $301.4 million, or 8.2%, to $3.4 billion compared to $3.7 billion for the same period in 2023[98] - Operating income decreased by $97.9 million, or 47.7%, to $107.3 million for the three months ended September 30, 2024, compared to $205.2 million for the same period in 2023[87] - Net income decreased by $74.8 million, or 50.3%, to $73.8 million for the three months ended September 30, 2024, compared to $148.6 million for the same period in 2023[87] Expenses - Cost of services decreased by $10.0 million, or 1.2%, to $840.3 million for the three months ended September 30, 2024, compared to $850.2 million for the same period in 2023[89] - Cost of services for the nine months ended September 30, 2024, decreased by $113.4 million, or 4.4%, to $2.5 billion compared to $2.6 billion for the same period in 2023[99] - General and administrative expenses increased by $3.6 million, or 6.5%, to $58.6 million for the three months ended September 30, 2024, compared to $55.0 million for the same period in 2023[90] - General and administrative expenses increased by $3.2 million, or 1.9%, to $169.3 million for the nine months ended September 30, 2024, compared to $166.1 million for the same period in 2023[100] - Depreciation, depletion, and amortization expense increased by $17.4 million, or 16.0%, to $126.4 million for the three months ended September 30, 2024, compared to $108.0 million for the same period in 2023[92] - Depreciation, depletion, and amortization expense rose by $69.8 million, or 23.0%, to $372.9 million for the nine months ended September 30, 2024, compared to $303.1 million for the same period in 2023[102] Cash Flow and Investments - Net cash provided by operating activities was $652.1 million for the nine months ended September 30, 2024, a decrease of $67.8 million compared to $719.8 million for the same period in 2023[114] - Net cash provided by operating activities decreased by $67.8 million to $652.1 million for the nine months ended September 30, 2024, compared to $719.8 million for the same period in 2023[115] - Net cash used in investing activities was $455.0 million for the nine months ended September 30, 2024, down from $528.4 million in the prior year, primarily due to the Siren Acquisition and lower proceeds from asset sales[116] - The Company spent $16.1 million on equity investments in Tamboran Resources Corporation, Empire Energy Group Ltd., and Falcon Oil & Gas Ltd. during the nine months ended September 30, 2024, compared to $10.0 million for Oklo Inc. in the prior year[115] - Net cash used in financing activities increased by $2.5 million to $210.8 million for the nine months ended September 30, 2024, primarily due to increased cash paid for finance leases and dividends[116] Taxation - Income tax expense decreased to $81.2 million for the nine months ended September 30, 2024, with an effective rate of 23.5%, down from $151.7 million and an effective rate of 24.6% for the same period in 2023[105] - The effective global income tax rate for the nine months ended September 30, 2024, was 23.5%, down from 24.6% for the same period in 2023[118] - The Company recognized an income tax expense of $81.2 million for the nine months ended September 30, 2024, compared to $151.7 million for the same period in 2023[118] Other Financial Metrics - EBITDA was $741.9 million for the nine months ended September 30, 2024, compared to $939.9 million for the same period in 2023, reflecting a decrease of $198.0 million[110] - Adjusted EBITDA was $765.9 million for the nine months ended September 30, 2024, down from $960.6 million for the same period in 2023, a decrease of $194.7 million[110] Shareholder Activities - The company repurchased and retired shares of Class A Common Stock for $99.1 million during the nine months ended September 30, 2024, under its share repurchase program[113] Foreign Currency and Subsidiary Formation - A foreign currency translation loss of $3.8 million was recorded for the nine months ended September 30, 2024, compared to a loss of $1.6 million for the same period in 2023[121] - The Company formed a subsidiary in Australia during the nine months ended September 30, 2024, which will use the Australian dollar as its functional currency[121] Equipment and Lease Obligations - The Company expanded its equipment lease facilities, resulting in $129.0 million in new finance lease obligations for the nine months ended September 30, 2024[117]

Company Performance - Liberty Oilfield Services reported quarterly earnings of $0.45 per share, missing the Zacks Consensus Estimate of $0.55 per share, and down from $0.85 per share a year ago [1] - The company posted revenues of $1.14 billion for the quarter, missing the Zacks Consensus Estimate by 0.24%, and down from $1.22 billion year-over-year [3] - The earnings surprise for the quarter was -18.18%, and the company has only surpassed consensus EPS estimates once in the last four quarters [2] Market Comparison - Liberty Oilfield Services shares have increased by approximately 9.2% since the beginning of the year, while the S&P 500 has gained 21.9% [4] - The current Zacks Rank for Liberty Oilfield Services is 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.43 on revenues of $1.06 billion, and for the current fiscal year, it is $2.03 on revenues of $4.43 billion [8] - The outlook for the industry, specifically the Oil and Gas - Field Services sector, is currently in the bottom 29% of Zacks industries, which may impact stock performance [9]

Liberty Energy Inc. (LBRT) is set to release third-quarter results on Oct. 16. The Zacks Consensus Estimate for earnings is pegged at 59 cents per share on revenues of $1.16 billion. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. Let's delve into the factors that might have influenced LBRT's performance in the to-be-reported quarter. Before that, it's worth taking a look at the company's performance in the last reported quarter. Highlights of Q2 Earnings In the previous reported q ...

In a volatile oil and energy market, Liberty Energy Inc. (LBRT) has demonstrated resilience, with its share price increasing 10.4% year to date (YTD). This gain significantly outperforms the broader oil and energy sector, which has declined 0.3% in the same timeframe. Moreover, LBRT has outpaced its peers in the oil and gas equipment and services sector, including ProPetro Holding (PUMP) , RPC (RES) and Petrofac (POFCY) . YTD Price Comparison Image Source: Zacks Investment Research Liberty Energy, a leading ...

Liberty achieved the highest diesel displacement in its history with natural gas-powered digiFleets and set a record for gas substitution in dual fuel technologies. The company expanded the Liberty Power Innovations ("LPI") portfolio by launching operations in the DJ Basin, including new compression capacity and logistics assets. LBRT also achieved its first CNG sales, supporting Liberty fleets and customer drilling rigs in June. Costs and Expenses Liberty reported total costs and expenses of $1018.1 millio ...

22 Frac industry trends have moderated marginally in recent periods, on the heels of slightly softer drilling activity in both oil and gas basins during the first half of 2024. Industry-wide completions activity has declined to levels consistent with only flat oil and gas production, and we believe completions activity will need to increase from current levels in order for the U.S. to increase oil and gas production. We expect this to lead to a resurgence in demand for quality frac crews in 2025. During the ...