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 ...

[Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) [Q2 2024 Performance Overview](index=1&type=section&id=Q2%202024%20Performance%20Overview) The company demonstrated strong performance with sequential growth in revenue and Adjusted EBITDA, driven by record operational efficiencies and shareholder returns Q2 2024 Key Metrics | Metric | Value | | :--- | :--- | | Revenue | $1.2 billion (8% sequential increase) | | Net Income | $108 million | | Fully Diluted EPS | $0.64 | | Adjusted EBITDA | $273 million (12% sequential increase) | | TTM Adjusted Pre-Tax ROCE | 28% | - Distributed **$41 million to shareholders** in Q2 through a combination of share repurchases ($30 million) and cash dividends ($12 million)[14](index=14&type=chunk)[5](index=5&type=chunk)[7](index=7&type=chunk) - Achieved significant operational milestones, including **record pumping efficiencies**, **record safety performance**, and the deployment of the Sentinel AI-powered logistics platform, which **reduced proppant delivery downtime by 90%**[14](index=14&type=chunk)[15](index=15&type=chunk) - Advanced next-generation fleet technologies by achieving the **highest diesel displacement in company history** with natural gas-fueled digiFleets and commencing Liberty Power Innovations (LPI) operations[14](index=14&type=chunk)[15](index=15&type=chunk) [Financial Results](index=3&type=section&id=Financial%20Results) [Q2 2024 Performance Summary](index=3&type=section&id=Q2%202024%20Performance%20Summary) The company reported $1.2 billion in revenue and $273 million in Adjusted EBITDA, showing strong sequential growth despite a slight year-over-year decline Q2 2024 Financial Performance vs. Prior Periods | Financial Metric | Q2 2024 | Q1 2024 | Q2 2023 | | :--- | :--- | :--- | :--- | | Revenue | $1.2B | $1.1B | $1.2B | | Net Income | $108M | $82M | $153M | | Adjusted Net Income | $103M | $82M | $153M | | Adjusted EBITDA | $273M | $245M | $311M | | Diluted EPS | $0.64 | $0.48 | $0.87 | | Adjusted Diluted EPS | $0.61 | $0.48 | $0.87 | [Balance Sheet and Liquidity](index=3&type=section&id=Balance%20Sheet%20and%20Liquidity) As of June 30, 2024, the company maintained a solid liquidity position with $30 million in cash and $271 million in total available liquidity Liquidity Position as of June 30, 2024 | Metric | Amount | | :--- | :--- | | Cash on Hand | $30 million | | Total Debt | $147 million | | Total Liquidity | $271 million | [Detailed Financial Statements](index=6&type=section&id=Detailed%20Financial%20Statements) The statements detail Q2 2024 operating income of $141.8 million on revenue of $1.16 billion, with total assets growing to $3.24 billion [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2024, the company generated $1.16 billion in revenue and $108.4 million in net income, with a diluted EPS of $0.64 Statement of Operations Highlights (Q2 2024 vs Q2 2023, in thousands) | Line Item | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Revenue | $1,159,884 | $1,194,988 | | Operating Income | $141,833 | $206,478 | | Net Income | $108,421 | $152,671 | | Diluted EPS | $0.64 | $0.87 | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2024, total assets stood at $3.24 billion, supported by $1.94 billion in total stockholders' equity Balance Sheet Highlights (in thousands) | Account | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Current Assets | $1,002,312 | $954,254 | | Total Assets | $3,241,355 | $3,033,557 | | Total Liabilities | $1,304,460 | $1,192,149 | | Total Stockholders' Equity | $1,936,895 | $1,841,408 | [Reconciliation of Non-GAAP Measures](index=8&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) The company reconciled Q2 2024 Net Income of $108.4 million to an Adjusted EBITDA of $273.3 million after key adjustments Reconciliation of Net Income to Adjusted EBITDA (Q2 2024, in thousands) | Line Item | Amount | | :--- | :--- | | Net income | $108,421 | | D&A | $123,305 | | Interest expense, net | $8,063 | | Income tax expense | $32,550 | | **EBITDA** | **$272,339** | | Stock-based compensation | $6,870 | | Other adjustments | ($5,953) | | **Adjusted EBITDA** | **$273,256** | - The company achieved an **Adjusted Pre-Tax Return on Capital Employed (ROCE) of 28%** for the twelve months ended June 30, 2024[30](index=30&type=chunk) [Business Outlook](index=2&type=section&id=Business%20Outlook) [Market Conditions and Company Expectations](index=2&type=section&id=Market%20Conditions%20and%20Company%20Expectations) Liberty anticipates stable financial performance in H2 2024, well-positioned to capitalize on E&P consolidation and demand for low-emission services - The company expects its financial performance in the second half of 2024 to be **similar to the first half**, even as overall North American completions activity is anticipated to soften modestly[5](index=5&type=chunk) - **Long-term natural gas demand is expected to rise**, driven by new LNG export facilities and growth in power demand, which should eventually lead to firmer prices[3](index=3&type=chunk) - The trend of **E&P operator consolidation is increasing demand for service partners** that can deliver superior performance and technical solutions, playing to Liberty's strengths[4](index=4&type=chunk) - The frac industry has seen a moderation in activity, and the **attrition of older equipment may lead to tightness for quality frac crews in 2025**[18](index=18&type=chunk) [Shareholder Returns](index=2&type=section&id=Shareholder%20Returns) [Share Repurchase Program](index=2&type=section&id=Share%20Repurchase%20Program) In Q2 2024, the company repurchased $30 million in shares, with $362 million remaining under its current authorization Q2 2024 Share Repurchase Activity | Metric | Value | | :--- | :--- | | Shares Repurchased | 1,319,885 | | Average Price | $22.39 per share | | Total Cost | ~$30 million | | % of Shares Outstanding | 0.8% | - Since the program began on July 25, 2022, Liberty has cumulatively repurchased and retired **13.2% of its shares outstanding**[5](index=5&type=chunk) - The total remaining authorization for future share repurchases is approximately **$362 million**[5](index=5&type=chunk) [Cash Dividend](index=3&type=section&id=Cash%20Dividend) The company paid a quarterly cash dividend of $0.07 per share, totaling approximately $12 million in Q2 2024, and approved a similar dividend for Q3 - Paid a quarterly cash dividend of **$0.07 per share** of Class A common stock, totaling approximately **$12 million** in Q2 2024[7](index=7&type=chunk) - On July 16, 2024, the Board declared a subsequent cash dividend of **$0.07 per share**, payable on September 20, 2024[21](index=21&type=chunk) [Supplementary Information](index=3&type=section&id=Supplementary%20Information) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) Liberty will host a conference call on July 18, 2024, to discuss its second-quarter results, with access details provided for live and replay viewing - A conference call to discuss Q2 2024 results is scheduled for **Thursday, July 18, 2024, at 10:00 a.m. Eastern Time**[11](index=11&type=chunk) - Participation details, including dial-in numbers and a webcast link, are available, with a **replay accessible until July 25, 2024**[33](index=33&type=chunk) [About Liberty & Non-GAAP Measures](index=4&type=section&id=About%20Liberty%20%26%20Non-GAAP%20Measures) Liberty is a leading North American energy services firm that utilizes non-GAAP financial measures to provide a clearer assessment of its performance - Liberty is a Denver-based energy services firm founded in 2011, focused on **next-generation technology** for unconventional resource development[25](index=25&type=chunk) - The report uses non-GAAP measures like **Adjusted EBITDA, Adjusted Net Income, and ROCE** to help investors compare operating performance on a consistent basis[12](index=12&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This report contains forward-looking statements based on current expectations that are subject to risks and uncertainties which could cause different actual results - The document contains **forward-looking statements** concerning business strategy, future performance, and market outlook, which are not guarantees of future results[35](index=35&type=chunk) - Readers are cautioned that **actual results may differ materially** from those implied by forward-looking statements due to various factors beyond the company's control[35](index=35&type=chunk)

Highlights of Q1 Earnings In the last reported quarter, the Denver, CO-based oilfield service company's earnings missed the consensus mark. LBRT reported an earnings per share of 48 cents, which was 6 cents lower than the Zacks Consensus Estimate. This was primarily due to poor equipment and services execution and lower activity in the reported quarter. Revenues of $1.07 billion also missed the Zacks Consensus Estimate by 0.9%. LBRT's earnings beat the Zacks Consensus Estimate in one of the trailing four qu ...