As part of its shareholder return policy, LBRT repurchased shares worth $30 million at an average price of $20.36 per share during the reported quarter. Costs and Expenses LBRT reported total costs and expenses of $957.7 million in the first quarter, down 7.65% from the year-ago quarter's level. The figure was also higher than our projection of $950.4 million. It has been about a month since the last earnings report for Liberty Oilfield Services (LBRT) . Shares have added about 4.1% in that time frame, unde ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q OR Title of each class Trading symbol(s) Name of each exchange on which registered If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of ...

Liberty Energy Inc. (LBRT) reported first-quarter 2024 earnings of 48 cents per share, which missed the Zacks Consensus Estimate of 54 cents. The bottom line also underperformed the year-ago quarter’s reported figure of 90 cents. This was primarily due to poor equipment and services execution, and lower activity in the reported quarter.Revenues totaled $1.07 billion, which missed the Zacks Consensus Estimate by 0.9%. The top line was also lower than the prior-year quarter’s level of $1.26 billion by 15.08%. ...

Liberty Oilfield Services (LBRT) came out with quarterly earnings of $0.48 per share, missing the Zacks Consensus Estimate of $0.54 per share. This compares to earnings of $0.90 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -11.11%. A quarter ago, it was expected that this provider of hydraulic fracturing services would post earnings of $0.57 per share when it actually produced earnings of $0.54, delivering a surprise of -5. ...

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Liberty reported flat Q1 2024 revenue, decreased net income and Adjusted EBITDA, strong capital returns, and record safety, reflecting technology leadership [Q1 2024 Performance Highlights](index=1&type=section&id=Q1%202024%20Performance%20Highlights) Liberty Energy Inc. announced its first quarter 2024 financial and operational results, reporting flat sequential revenue, a decrease in net income and Adjusted EBITDA, but a strong TTM Adjusted Pre-Tax Return on Capital Employed Q1 2024 Key Financial and Operational Highlights | Metric | Value | | :----- | :---- | | Revenue | **$1.1 billion** (flat sequentially) | | Net income | **$82 million** | | Fully diluted EPS | **$0.48** | | Adjusted EBITDA | **$245 million** (**3% decrease sequentially**) | | TTM Adjusted Pre-Tax Return on Capital Employed | **32%** | | Distributed to shareholders | **$42 million** | | Shares repurchased (Q1) | **0.9%** of shares outstanding | | Cumulative shares repurchased (since July 2022) | **12.5%** of shares outstanding | - Achieved record TTM safety performance and operational efficiency[4](index=4&type=chunk) [CEO Commentary & Strategic Vision](index=1&type=section&id=CEO%20Commentary%20%26%20Strategic%20Vision) CEO Chris Wright highlighted Liberty's leadership in technology innovation, service quality, and talent investment, resulting in strong Q1 results despite softening industry activity - Liberty's strong first quarter results demonstrate the continued benefits of leading the industry in **technology innovation**, **service quality** and investment in **talent**[4](index=4&type=chunk) - The operations teams delivered the **highest combined safety performance** and **average daily pumping efficiency** in Liberty's history over the last year[4](index=4&type=chunk) - The company is in a generational shift towards **low emissions**, **capital efficient natural gas fueled technologies**, with digiFleet deployments and Liberty Power Innovations (LPI) supporting customers and benefiting from growing power demand from **AI-driven data centers** and **reshoring industrial activity**[4](index=4&type=chunk) [Shareholder Returns](index=2&type=section&id=Shareholder%20Returns) Liberty increased share repurchase authorization to $750 million, repurchased $30 million in Q1 2024, and maintained a $0.07 quarterly cash dividend [Share Repurchase Program](index=2&type=section&id=Share%20Repurchase%20Program) Liberty's Board increased the share repurchase authorization to $750 million, extending it through July 2026, with $30 million repurchased in Q1 2024, bringing cumulative repurchases to 12.5% of shares outstanding - Board increased Liberty's existing share repurchase authorization to **$750 million**, a **$250 million increase**, and extended the authorization through **July 31, 2026**[5](index=5&type=chunk) Share Repurchase Details | Metric | Q1 2024 | Cumulative (since July 2022) | | :------------------------------------ | :------ | :--------------------------- | | Shares repurchased and retired | **1,480,084** | - | | Average price per share | **$20.36** | - | | Total value of repurchases | **~$30 million** | **~$417 million** (including dividends) | | % of shares outstanding repurchased | **0.9%** | **12.5%** | | Total remaining authorization | **~$392 million** | - | - Repurchases may be conducted through open market transactions, block trades, privately negotiated transactions, derivative transactions, or other means, funded by **cash on hand**, **revolving credit facility**, and **expected free cash flow**[24](index=24&type=chunk) [Cash Dividend](index=2&type=section&id=Cash%20Dividend) Liberty paid a quarterly cash dividend of $0.07 per share in Q1 2024, totaling approximately $12 million, and declared another $0.07 per share dividend for Q2 2024 Cash Dividend Details | Quarter | Dividend per Share | Total Payout (Q1 2024) | Declaration Date | Payment Date | Record Date | | :------ | :----------------- | :--------------------- | :--------------- | :----------- | :---------- | | Q1 2024 | **$0.07** | **~$12 million** | - | - | - | | Q2 2024 | **$0.07** | - | April 16, 2024 | June 20, 2024 | June 6, 2024 | - Future declarations of quarterly cash dividends are subject to approval by the Board of Directors and their continuing determination that the declarations are in the best interests of Liberty and its stockholders, and may be adjusted based on **market conditions** and **capital availability**[25](index=25&type=chunk) [Outlook & Industry Dynamics](index=2&type=section&id=Outlook%20%26%20Industry%20Dynamics) The frac industry remains constructive with steady demand; Liberty anticipates low double-digit sequential revenue growth in Q2 2024 from strategic investments [Industry Outlook](index=2&type=section&id=Industry%20Outlook) The frac industry remains constructive with steady demand, disciplined pricing, and a focus on service quality, with oil prices rallying and natural gas prices expected to strengthen - Frac industry dynamics remain constructive, with relatively **steady demand** focusing service companies on **disciplined pricing** and **quality of service**[9](index=9&type=chunk) - Oil prices have rallied since early in the year due to an **improved global economic outlook**, ongoing **OPEC+ voluntary production cuts**, and rising **geopolitical tensions**[10](index=10&type=chunk) - Natural gas prices have declined considerably but are likely to strengthen in the future with increasing **LNG exports** and surging **domestic power demand**[10](index=10&type=chunk) [Company Outlook](index=2&type=section&id=Company%20Outlook) Liberty is focused on profitable growth through disciplined investment in talent, technology, and equipment, expecting low double-digit sequential revenue growth in Q2 2024 with improved profitability - Focus is on **profitable growth** through disciplined investment in **talent**, **technology**, and **equipment** that leads the industry in efficiency and emissions[11](index=11&type=chunk) - Strategic investment in **digiFleets** and **power and fuel supply through LPI** is expected to deliver **superior returns** over cycles[11](index=11&type=chunk) - For Q2 2024, the company expects **low double-digit sequential growth in revenue** on **stable pricing** and **increased efficiency**, with corresponding improvement in **profitability** and **strong cash flow generation**[12](index=12&type=chunk) [First Quarter Financial Results](index=3&type=section&id=First%20Quarter%20Financial%20Results) Liberty reported Q1 2024 revenue of $1.1 billion, flat sequentially, with decreased net income and Adjusted EBITDA, maintaining $315 million liquidity [Results Overview](index=3&type=section&id=First%20Quarter%20Results%20Overview) Liberty reported Q1 2024 revenue of $1.1 billion, flat sequentially but down 15% year-over-year, with net income of $82 million and Adjusted EBITDA of $245 million Q1 2024 Financial Performance Overview | Metric | Q1 2024 | Q4 2023 | Q1 2023 | YoY Change (Q1 24 vs Q1 23) | QoQ Change (Q1 24 vs Q4 23) | | :---------------- | :------ | :------ | :------ | :-------------------------- | :-------------------------- | | Revenue | **$1.1 billion** | **$1.1 billion** | **$1.3 billion** | **-15%** | **Flat** | | Net Income | **$82 million** | **$92 million** | **$163 million** | **-49.7%** | **-10.9%** | | Fully Diluted EPS | **$0.48** | **$0.54** | **$0.90** | **-46.7%** | **-11.1%** | | Adjusted EBITDA | **$245 million** | **$253 million** | **$330 million** | **-25.8%** | **-3.2%** | [Statement of Operations Data](index=6&type=section&id=Statement%20of%20Operations%20Data) The detailed statement of operations shows Q1 2024 revenue at $1,073,125 thousand, with total operating expenses of $957,692 thousand, leading to an operating income of $115,433 thousand Consolidated Statements of Operations Data (in thousands) | Metric (in thousands) | March 31, 2024 | December 31, 2023 | March 31, 2023 | | :-------------------------------------------------------------------- | :------------- | :---------------- | :------------- | | Revenue | **$1,073,125** | **$1,074,958** | **$1,262,077** | | Costs of services, excluding depreciation, depletion, and amortization | **$782,680** | **$777,251** | **$888,416** | | General and administrative | **$52,986** | **$55,296** | **$53,036** | | Depreciation, depletion, and amortization | **$123,186** | **$118,421** | **$94,401** | | Total operating expenses | **$957,692** | **$951,204** | **$1,036,957** | | Operating income | **$115,433** | **$123,754** | **$225,120** | | Net income attributable to Liberty Energy Inc. stockholders | **$81,892** | **$92,383** | **$162,655** | | Diluted EPS | **$0.48** | **$0.54** | **$0.90** | | Capital expenditures | **$141,993** | **$133,610** | **$129,654** | [Balance Sheet and Liquidity](index=3&type=section&id=Balance%20Sheet%20and%20Liquidity) As of March 31, 2024, Liberty reported total assets of $3,097,619 thousand and total liabilities of $1,213,135 thousand, with total liquidity of $315 million Consolidated Balance Sheet Data (in thousands) | Metric (in thousands) | March 31, 2024 | December 31, 2023 | | :------------------------------------ | :------------- | :---------------- | | Cash and cash equivalents | **$23,788** | **$36,784** | | Accounts receivable and unbilled revenue | **$649,208** | **$587,470** | | Total current assets | **$978,008** | **$954,254** | | Property and equipment, net | **$1,694,232** | **$1,645,368** | | Total assets | **$3,097,619** | **$3,033,557** | | Accounts payable and accrued liabilities | **$588,337** | **$572,029** | | Total current liabilities | **$662,365** | **$639,424** | | Long-term debt | **$166,000** | **$140,000** | | Total liabilities | **$1,213,135** | **$1,192,149** | | Total stockholders' equity | **$1,884,484** | **$1,841,408** | - Total liquidity, including availability under the credit facility, was **$315 million** as of March 31, 2024[27](index=27&type=chunk) [Company Information](index=3&type=section&id=Company%20Information) This section outlines Liberty Energy's profile, Q1 conference call, non-GAAP measures, forward-looking statements, and investor contact [About Liberty](index=3&type=section&id=About%20Liberty) Liberty is a leading North American energy services firm, founded in 2011, specializing in innovative completion services and technologies for onshore oil and natural gas exploration and production companies - Liberty is a leading North American energy services firm offering innovative suites of **completion services** and **technologies** to onshore oil and natural gas exploration and production companies[29](index=29&type=chunk) - Founded in **2011**, Liberty focuses on developing and delivering **next-generation technology** for the sustainable development of unconventional energy resources[29](index=29&type=chunk) - Liberty is headquartered in **Denver, Colorado**[29](index=29&type=chunk) [Conference Call Details](index=3&type=section&id=Conference%20Call) Liberty hosted a conference call on April 18, 2024, to discuss Q1 results, featuring CEO Chris Wright, President Ron Gusek, and CFO Michael Stock - A conference call to discuss results was hosted on **Thursday, April 18, 2024**, at **8:00 a.m. Mountain Time** (**10:00 a.m. Eastern Time**)[17](index=17&type=chunk) - Presenting Liberty's results were **Chris Wright** (Chief Executive Officer), **Ron Gusek** (President), and **Michael Stock** (Chief Financial Officer)[17](index=17&type=chunk) - A live webcast was available at **http://investors.libertyfrac.com**, and a telephone replay was available until **April 25, 2024**[28](index=28&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) This section defines non-GAAP financial and operational measures used by Liberty, including EBITDA, Adjusted EBITDA, and Adjusted Pre-Tax Return on Capital Employed (ROCE) - The earnings release includes unaudited non-GAAP financial and operational measures: **EBITDA**, **Adjusted EBITDA**, and **Adjusted Pre-Tax Return on Capital Employed ("ROCE")**[18](index=18&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) - Adjusted EBITDA is defined as EBITDA adjusted to eliminate effects of items such as **non-cash stock-based compensation**, **new fleet/basin start-up costs**, **asset disposal gains/losses**, **bad debt reserves**, and other **non-recurring expenses**[18](index=18&type=chunk) - ROCE is defined as the ratio of pre-tax net income (adjusted for income tax and tax receivable agreement impacts) for the three months ended March 31, 2024, to Average Capital Employed, which is the simple average of total capital employed as of **March 31, 2024**, and **March 31, 2023**[31](index=31&type=chunk)[34](index=34&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20and%20Cautionary%20Statements) The release contains forward-looking statements regarding expected growth, performance, industry outlook, business strategy, and financial position, which involve assumptions, risks, and uncertainties - The information includes "**forward-looking statements**" concerning expected growth, performance, future operating results, oil and natural gas demand and prices, industry outlook, business strategy, planned capital expenditures, future cash flows, and return of capital to stockholders[19](index=19&type=chunk) - These statements involve certain **assumptions**, **risks**, and **uncertainties**, and actual results may differ materially from those indicated or implied[19](index=19&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 Annual Report on Form 10-K and other SEC filings[19](index=19&type=chunk)[35](index=35&type=chunk) [Contact Information](index=4&type=section&id=Contact) Contact information for investor relations is provided, including Michael Stock (Chief Financial Officer) and Anjali Voria, CFA (Director of Investor Relations) - Contact information for investor relations includes **Michael Stock**, Chief Financial Officer, and **Anjali Voria, CFA**, Director of Investor Relations[20](index=20&type=chunk)[21](index=21&type=chunk) - Investor Relations email: **IR@libertyenergy.com**[1](index=1&type=chunk)[29](index=29&type=chunk) [Supplemental Financial Information](index=6&type=section&id=Supplemental%20Financial%20Information) This section details reconciliations of net income to EBITDA and Adjusted EBITDA, plus the 32% Adjusted Pre-Tax Return on Capital Employed calculation [Reconciliation of Net Income to EBITDA and Adjusted EBITDA](index=8&type=section&id=Reconciliation%20of%20Net%20Income%20to%20EBITDA%20and%20Adjusted%20EBITDA) This section provides a reconciliation of net income to EBITDA and Adjusted EBITDA for the three months ended March 31, 2024, December 31, 2023, and March 31, 2023 Reconciliation of Net Income to EBITDA and Adjusted EBITDA | Metric | March 31, 2024 | December 31, 2023 | March 31, 2023 | | :------------------------------------------------- | :------------- | :---------------- | :------------- | | Net income | **$81,892** | **$92,383** | **$162,746** | | Depreciation, depletion, and amortization | **$123,186** | **$118,421** | **$94,401** | | Interest expense, net | **$7,063** | **$6,364** | **$7,891** | | Income tax expense | **$26,478** | **$26,824** | **$54,483** | | **EBITDA** | **$238,619** | **$243,992** | **$319,521** | | Stock-based compensation expense | **$7,327** | **$9,288** | **$7,178** | | (Gain) loss on disposal of assets | **$(1,160)** | **$(13)** | **$487** | | **Adjusted EBITDA** | **$244,786** | **$252,507** | **$329,885** | [Calculation of Pre-Tax Return on Capital Employed](index=8&type=section&id=Calculation%20of%20Pre-Tax%20Return%20on%20Capital%20Employed) This section details the calculation of Adjusted Pre-Tax Return on Capital Employed (ROCE) for the twelve months ended March 31, 2024, which was 32% Calculation of Adjusted Pre-Tax Return on Capital Employed | Metric | Twelve Months Ended March 31, 2024 | Twelve Months Ended March 31, 2023 | | :----------------------------------------------------------------- | :--------------------------------- | :--------------------------------- | | Net income | **$475,554** | - | | Add back: Income tax expense | **$150,477** | - | | Add back: Gain on remeasurement of liability under tax receivable agreements (1) | **$(1,817)** | - | | **Adjusted Pre-tax net income** | **$624,214** | - | | Total debt | **$166,000** | **$210,000** | | Total equity | **$1,884,484** | **$1,590,119** | | **Total Capital Employed** | **$2,050,484** | **$1,800,119** | | Average Capital Employed (2) | **$1,925,302** | - | | **Adjusted Pre-Tax Return on Capital Employed (3)** | **32%** | - | - Average Capital Employed is the simple average of Total Capital Employed as of **March 31, 2024**, and **March 31, 2023**[34](index=34&type=chunk) - Adjusted Pre-tax Return on Capital Employed is the ratio of pre-tax net income for the twelve months ended March 31, 2024, to **Average Capital Employed**[34](index=34&type=chunk)

Liberty Energy Inc. (LBRT) is set to report first-quarter 2024 earnings on Apr 17, after the closing bell. The Zacks Consensus Estimate for earnings is pegged at 53 cents per share on revenues of $1.08 billion.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 Q4 Earnings In the previous reported quarter, the Denver, CO-based oilfield service co ...

Part I [Business](index=5&type=section&id=Item%201.%20Business) Liberty Energy Inc. provides hydraulic fracturing and complementary services to North American E&P companies, emphasizing technology and vertical integration, with its top five customers accounting for **34% of 2023 revenue** - The company's core business is providing hydraulic fracturing services, along with complementary offerings like wireline services, proppant delivery, field gas processing, and data analytics across major North American shale basins[21](index=21&type=chunk)[22](index=22&type=chunk) - Liberty has grown significantly from one active hydraulic fracturing fleet in December 2011 to over **40 active fleets** as of December 31, 2023[30](index=30&type=chunk) - The company focuses on ESG-friendly technologies, including its Liberty Quiet Fleet®, dual-fuel DGB fleets, and innovative digiFleets℠, which have a lower CO2e emission profile[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) - In 2023, Liberty launched Liberty Power Innovations (LPI) and acquired Siren Energy to provide integrated natural gas supply and power solutions, supporting the transition to lower-emission fleets[29](index=29&type=chunk) - For the year ended December 31, 2023, the company's top five customers accounted for approximately **34% of its revenues**, with no single customer exceeding 10%[67](index=67&type=chunk) [Risk Factors](index=16&type=section&id=Item%201A.%20Risk%20Factors) The company faces substantial risks from volatile commodity prices, E&P capital spending, extensive environmental regulations, reliance on large customers, operational liabilities, cybersecurity threats, and significant obligations under Tax Receivable Agreements - The business is highly dependent on E&P capital spending, which is influenced by volatile oil and natural gas prices, global economic conditions, and OPEC+ actions[88](index=88&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk) - Extensive and evolving federal, state, and local regulations on hydraulic fracturing, emissions, and water disposal could impose significant costs, operational delays, and reduce demand for services[76](index=76&type=chunk)[77](index=77&type=chunk)[81](index=81&type=chunk) - The company is required to make potentially significant payments under its Tax Receivable Agreements (TRAs), which could negatively impact liquidity; a change of control could trigger an immediate lump-sum payment[120](index=120&type=chunk)[123](index=123&type=chunk) - Reliance on a few large customers is a key risk, with the top five customers representing **34% of consolidated revenue** in 2023[128](index=128&type=chunk) - Cybersecurity threats pose a significant risk; the company experienced a denial-of-service attack in early 2020, which was managed without material impact, but future incidents remain a possibility[129](index=129&type=chunk) [Unresolved Staff Comments](index=31&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[155](index=155&type=chunk) [Cybersecurity](index=31&type=section&id=Item%201C.%20Cybersecurity) Liberty has an integrated cybersecurity risk management program overseen by the Audit Committee, managed by senior leadership including a CIO, and supported by external experts and simulated incidents - The Board of Directors has designated the Audit Committee to oversee risk management associated with cybersecurity threats[161](index=161&type=chunk) - A cybersecurity risk management committee, including the CIO, evaluates risks and provides at least quarterly briefings to the Audit Committee[162](index=162&type=chunk) - The company periodically engages external experts and auditors to evaluate and test its information systems and has processes to oversee risks associated with third-party service providers[158](index=158&type=chunk)[159](index=159&type=chunk) [Properties](index=32&type=section&id=Item%202.%20Properties) The company's corporate headquarters are leased in Denver, Colorado, with numerous owned and leased principal properties across key operating areas in North America, deemed adequate for operations Key Owned and Leased Properties | District Facility Location | Size | Leased or Owned | | :--- | :--- | :--- | | Midland, TX | 90,000 sq. ft on 35 acres | Owned | | Odessa, TX | 77,500 sq. ft on 48 acres | Owned | | Kermit, TX | 5,000 acres | Owned | | Monahans, TX | 3,200 acres | Owned | | Shreveport, LA | 215,000 sq ft. on 45 acres | Owned | | Cheyenne, WY | 115,000 sq. ft on 60 acres | Owned | | Red Deer, AB | 170,000 sq. ft on 42 acres | Owned | [Legal Proceedings](index=32&type=section&id=Item%203.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 15—Commitments & Contingencies in the financial statements section of the report - The company is subject to various legal proceedings from time to time, but management does not believe any current matters will have a material adverse effect on its financial position or results of operations[167](index=167&type=chunk)[501](index=501&type=chunk)[503](index=503&type=chunk) [Mine Safety Disclosures](index=32&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Information concerning mine safety violations and other regulatory matters is included in Exhibit 95 to the Form 10-K - Mine safety disclosure information is provided in Exhibit 95 of the 10-K filing[168](index=168&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=33&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Liberty's Class A Common Stock trades on the NYSE under 'LBRT', with a reinstated quarterly dividend totaling **$37.5 million in 2023**, and a significant share repurchase program increased to **$750 million** cumulative authorization - The company's dividend was reinstated in Q4 2022, totaling **$37.5 million** for the year[173](index=173&type=chunk)[174](index=174&type=chunk) - The Board authorized increases to the share repurchase program, reaching a cumulative authorization of **$750 million**, extended through July 31, 2026[176](index=176&type=chunk) - During the year ended December 31, 2023, the company repurchased and retired **13.7 million shares** of Class A Common Stock for **$203.1 million** at an average price of **$14.82 per share**[177](index=177&type=chunk) Share Repurchases for Q4 2023 | Period | Total number of shares purchased | Average price paid per share | Approximate dollar value of shares that may yet be purchased under the plans or programs (1) | | :--- | :--- | :--- | :--- | | October 1, 2023 - October 31, 2023 | 351,632 | $19.91 | $203,968,909 | | November 1, 2023 - November 30, 2023 | 1,161,489 | $19.45 | $181,379,741 | | December 1, 2023 - December 31, 2023 | 518,615 | $18.22 | $171,930,956 | | **Total** | **2,031,736** | **$19.21** | **$171,930,956** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2023, revenue increased **14% to $4.7 billion**, driving operating income to **$760.6 million**, with a stable 2024 outlook supported by strong liquidity and strategic investments in advanced technologies [Results of Operations](index=40&type=section&id=7.1%20Results%20of%20Operations) For fiscal year 2023, revenue grew by **$598.7 million (14%) to $4.7 billion** compared to 2022, with operating income increasing to **$760.6 million** and Adjusted EBITDA reaching **$1.21 billion** Consolidated Results of Operations (2023 vs. 2022) | Description | 2023 (in thousands) | 2022 (in thousands) | Change (in thousands) | | :--- | :--- | :--- | :--- | | **Revenue** | **$4,747,928** | **$4,149,228** | **$598,700** | | Cost of services | $3,349,370 | $3,149,036 | $200,334 | | General and administrative | $221,406 | $180,040 | $41,366 | | Depreciation, depletion, and amortization | $421,514 | $323,028 | $98,486 | | **Operating income** | **$760,579** | **$495,890** | **$264,689** | | Net income before income taxes | $734,890 | $399,509 | $335,381 | | **Net income attributable to Liberty Energy Inc. stockholders** | **$556,317** | **$399,602** | **$156,715** | - The **14% increase in revenue** was primarily driven by higher service pricing and an activity-driven increase in fleet efficiency[208](index=208&type=chunk) Reconciliation of Net Income to Adjusted EBITDA | Description | 2023 (in thousands) | 2022 (in thousands) | Change (in thousands) | | :--- | :--- | :--- | :--- | | Net income | $556,408 | $400,302 | $156,106 | | EBITDA | $1,183,910 | $745,252 | $438,658 | | **Adjusted EBITDA** | **$1,213,068** | **$860,267** | **$352,801** | [Liquidity and Capital Resources](index=42&type=section&id=7.2%20Liquidity%20and%20Capital%20Resources) The company's liquidity is primarily sourced from **$1.0 billion** in 2023 cash flow from operations and its upsized ABL Facility, funding significant capital expenditures, share repurchases, and dividends Summary of Cash Flows | Description | 2023 (in thousands) | 2022 (in thousands) | Change (in thousands) | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $1,014,583 | $530,364 | $484,219 | | Net cash used in investing activities | ($672,328) | ($450,656) | ($221,672) | | Net cash used in financing activities | ($349,315) | ($55,770) | ($293,545) | - In January 2023, the company borrowed **$106.7 million** on its ABL Facility to pay off and terminate its Term Loan Facility[226](index=226&type=chunk) - As of December 31, 2023, the company had **$140.0 million** outstanding under its ABL Facility, with **$277.7 million** of remaining availability[224](index=224&type=chunk) [Quantitative and Qualitative Disclosure about Market Risk](index=48&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosure%20about%20Market%20Risk) The company is exposed to market risks including industry volatility from commodity prices, interest rate risk on variable-rate debt, commodity price risk affecting costs, and foreign translation risk from Canadian operations - The business is exposed to industry risk, as demand is dependent on volatile oil and natural gas drilling and completion activity[261](index=261&type=chunk) - The company has interest rate risk from its ABL Facility; a **1% change** in the weighted average interest rate would impact annual interest expense by about **$1.4 million**[263](index=263&type=chunk) - Foreign translation risk is present due to Canadian operations, with a foreign currency translation gain of **$1.3 million** recorded in 2023[265](index=265&type=chunk) [Financial Statements and Supplementary Data](index=48&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section includes the company's audited consolidated financial statements for 2023, showing total assets of **$3.03 billion**, total revenue of **$4.75 billion**, and net income of **$556.4 million**, along with detailed notes on accounting policies and transactions [Consolidated Statements of Operations](index=63&type=section&id=8.1%20Consolidated%20Statements%20of%20Operations) For 2023, total revenues were **$4.75 billion**, operating income was **$760.6 million**, and net income attributable to stockholders was **$556.3 million**, or **$3.15 per diluted share** Key Operating Results (2023 vs. 2022) | Description (In thousands) | 2023 | 2022 | | :--- | :--- | :--- | | Total revenue | $4,747,928 | $4,149,228 | | Operating income | $760,579 | $495,890 | | Net income attributable to Liberty Energy Inc. stockholders | $556,317 | $399,602 | | Diluted EPS | $3.15 | $2.11 | [Consolidated Balance Sheets](index=62&type=section&id=8.2%20Consolidated%20Balance%20Sheets) As of December 31, 2023, total assets were **$3.03 billion**, with total liabilities of **$1.19 billion** and total stockholders' equity increasing to **$1.84 billion** Key Balance Sheet Items (As of Dec 31) | Description (In thousands) | 2023 | 2022 | | :--- | :--- | :--- | | Total current assets | $954,254 | $956,673 | | Property and equipment, net | $1,645,368 | $1,362,364 | | **Total assets** | **$3,033,557** | **$2,575,932** | | Total current liabilities | $639,424 | $649,497 | | Long-term debt, net | $140,000 | $217,426 | | **Total liabilities** | **$1,192,149** | **$1,078,626** | | **Total stockholders' equity** | **$1,841,408** | **$1,495,017** | [Consolidated Statements of Cash Flows](index=66&type=section&id=8.3%20Consolidated%20Statements%20of%20Cash%20Flows) For 2023, the company generated **$1.01 billion** in cash from operating activities, with **$672.3 million** used in investing activities and **$349.3 million** in financing activities, resulting in a **$7.06 million decrease** in cash Cash Flow Summary (For the year ended Dec 31) | Description (In thousands) | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,014,583 | $530,364 | | Net cash used in investing activities | ($672,328) | ($450,656) | | Net cash used in financing activities | ($349,315) | ($55,770) | | **Net (decrease) increase in cash** | **($7,060)** | **$23,938** | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=48&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[267](index=267&type=chunk) [Controls and Procedures](index=49&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of December 31, 2023, with the accounting functions of the acquired Siren entity integrated during the year - Management concluded that disclosure controls and procedures were effective as of December 31, 2023[268](index=268&type=chunk) - The company integrated the accounting functions of Siren Energy following its acquisition on April 6, 2023[269](index=269&type=chunk) [Other Information](index=49&type=section&id=Item%209B.%20Other%20Information) This section discloses the adoption of Rule 10b5-1 trading plans by CFO Michael Stock and CEO Chris Wright in December 2023 for the potential sale of shares acquired from vested restricted stock units - CFO Michael Stock adopted a Rule 10b5-1 trading plan in December 2023 for the potential sale of up to **200,000 shares** of Class A common stock between March and December 2024[272](index=272&type=chunk) - CEO Chris Wright adopted a Rule 10b5-1 trading plan in December 2023 for the potential sale of up to **240,000 shares** of Class A common stock between March and August 2024[273](index=273&type=chunk) Part III Part III of the report, covering directors, executive compensation, security ownership, and certain relationships, incorporates information by reference from the company's definitive proxy statement for its 2024 annual meeting of stockholders [Directors, Executive Officers and Corporate Governance](index=50&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the forthcoming 2024 proxy statement - Information regarding directors, executive officers, and corporate governance is incorporated by reference from the forthcoming 2024 proxy statement[277](index=277&type=chunk) [Executive Compensation](index=50&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the forthcoming 2024 proxy statement - Information regarding executive compensation is incorporated by reference from the forthcoming 2024 proxy statement[278](index=278&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=50&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership is incorporated by reference from the forthcoming 2024 proxy statement - Information regarding security ownership is incorporated by reference from the forthcoming 2024 proxy statement[279](index=279&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=50&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding related party transactions and director independence is incorporated by reference from the forthcoming 2024 proxy statement - Information regarding related party transactions and director independence is incorporated by reference from the forthcoming 2024 proxy statement[280](index=280&type=chunk) [Principal Accountant Fees and Services](index=50&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the forthcoming 2024 proxy statement - Information regarding principal accountant fees and services is incorporated by reference from the forthcoming 2024 proxy statement[281](index=281&type=chunk) Part IV Part IV contains the list of financial statements, schedules, and exhibits filed with the report; Item 16, Form 10-K Summary, is noted as 'None' [Exhibits and Financial Statement Schedules](index=51&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This item lists the financial statements, schedules, and exhibits filed as part of the Annual Report - This section refers to the Index to Financial Statements and the Index to Exhibits for a list of all filed documents[283](index=283&type=chunk)[284](index=284&type=chunk) [Form 10-K Summary](index=52&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has not provided a Form 10-K summary - None[286](index=286&type=chunk)

Liberty Energy Inc. (NYSE:LBRT) Q4 2023 Earnings Conference Call January 25, 2024 12:00 PM ET Company Participants Anjali Voria - Strategic Finance and Investor Relations Lead Chris Wright - Chief Executive Officer Ron Gusek - President Michael Stock - Chief Financial Officer Conference Call Participants Scott Gruber – Citigroup Luke Lemoine – Piper Sandler Atidrip Modak – Goldman Sachs Stephen Gengaro – Stifel Derek Podhaizer – Barclays Marc Bianchi – TD Cowen Waqar Syed – ATB Capital Markets Keith MacKey ...

Financial Data and Key Metrics Changes - The company achieved a third quarter net income after tax of $149 million, representing a 1% increase from the prior year and a modest decrease from the $153 million in the second quarter [77] - Fully diluted net income per share was $0.85, a 10% increase from the prior year, highlighting the benefits of the share buyback program [77] - Third quarter adjusted EBITDA increased 15% year-over-year and 2% sequentially to $319 million [78] - Revenue for the third quarter was $1.2 billion, a 2% year-over-year increase and a 2% increase from the second quarter [97] Business Line Data and Key Metrics Changes - The company reported record average daily pumping efficiencies, achieving the highest pump hours of sand pumped in its history, despite idling one fleet during the quarter [63][77] - The deployment of the proprietary digiPrime units commenced in late September, quickly becoming a favorite technology among crews and customers [87] - The company increased its quarterly cash dividend by 40% to $0.07 per share, reflecting significant growth in per share earnings and cash generation abilities [68] Market Data and Key Metrics Changes - The company noted that fleets across the industry were idled in response to softness in completions activity, supporting a better supply-demand balance of marketed fleets compared to prior cycles [69] - The sustained strength in crude oil prices is stimulating demand for frac fleets among smaller private oil producers, with modest growth in frac activity expected in 2024 [70][92] - The company anticipates that the rig count is likely bottoming and will grow over the next 6 to 12 months, albeit at a slower pace [42] Company Strategy and Development Direction - The company is focused on vertical integration and technology investments, which have positioned it to address the diversity and complexity of customer needs [94] - The company aims to maximize operational efficiency and optimize equipment maintenance through advanced analytical tools and processes [89] - The long-term demand outlook for North American energy is expected to anchor a more durable cycle, with OPEC+ decisions supporting commodity prices [71] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate strong free cash flow through cycles, with expectations for adjusted EBITDA growth at the high end of the guidance range for 2023 [95][120] - The company expects modest seasonal softness in the fourth quarter but does not plan to idle any additional fleets due to demand in Q1 of 2024 [80] - Management highlighted the importance of long-term partnerships with customers, emphasizing that the business thrives when both the company and its customers succeed [129] Other Important Information - The company has returned $325 million to shareholders over the past five quarters through its buyback program [119] - The company ended the quarter with a cash balance of $27 million and net debt of $196 million, which decreased by $60 million from the end of the second quarter [78] Q&A Session All Questions and Answers Question: Can you provide insights on the pricing power and customer relationships? - Management noted that customers are increasingly looking for quality service rather than just the cheapest option, indicating a shift in how pricing power is perceived in the industry [108][109] Question: What is the outlook for capital expenditures and free cash flow? - Management indicated that capital expenditures are expected to fall as a percentage of EBITDA, leading to robust free cash flow next year [104][106] Question: How do you view the future mix of digiFrac versus digiPrime? - Management explained that both technologies will be used in combination, with the mix depending on customer needs and access to grid power [135] Question: What are the expectations for the fourth quarter given the strong performance in the third quarter? - Management acknowledged seasonal slowdowns but expressed confidence in maintaining efficiency and picking up activity in Q1 of 2024 [121]

[CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](index=3&type=section&id=CAUTIONARY%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section cautions that the report contains forward-looking statements, subject to inherent risks and not routinely updated - The report includes forward-looking statements regarding expected performance, future operating results, oil and natural gas demand and prices, industry outlook, global economic conditions, and business strategies[10](index=10&type=chunk) - Actual results could differ materially from forward-looking statements due to important factors, many beyond the company's control, including risks and uncertainties detailed in the Annual Report and this Quarterly Report[10](index=10&type=chunk) - The Company does not intend or is obligated to update or revise any forward-looking statements, except as required by law[10](index=10&type=chunk) [PART I: FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This part presents the unaudited condensed consolidated financial statements and management's discussion and analysis of financial results [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section provides Liberty Energy Inc.'s unaudited condensed consolidated financial statements and related notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's financial position, detailing assets, liabilities, and equity at specific points in time Condensed Consolidated Balance Sheets | Metric | Sep 30, 2023 (in thousands) | Dec 31, 2022 (in thousands) | | :-------------------------------- | :-------------------------- | :-------------------------- | | Total Assets | $3,089,123 | $2,575,932 | | Total Liabilities | $1,300,561 | $1,078,626 | | Total Equity | $1,788,562 | $1,497,306 | - Current assets increased from **$956,673 thousand** at December 31, 2022, to **$1,067,624 thousand** at September 30, 2023, primarily driven by an increase in accounts receivable—trade and unbilled revenue[15](index=15&type=chunk) - Property and equipment, net, significantly increased from **$1,362,364 thousand** at December 31, 2022, to **$1,613,437 thousand** at September 30, 2023[15](index=15&type=chunk) [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) This section presents the company's financial performance over specific periods, detailing revenues, expenses, and net income Condensed Consolidated Statements of Income (3 Months Ended Sep 30) | Metric | 3 Months Ended Sep 30, 2023 (in thousands) | 3 Months Ended Sep 30, 2022 (in thousands) | Change (in thousands) | YoY Change (%) | | :------------------------------------------------- | :----------------------------------------- | :----------------------------------------- | :-------------------- | :------------- | | Total Revenue | $1,215,905 | $1,188,247 | $27,658 | 2.33% | | Operating Income | $205,227 | $182,983 | $22,244 | 12.16% | | Net Income attributable to Liberty Energy Inc. stockholders | $148,608 | $146,953 | $1,655 | 1.13% | | Basic EPS | $0.88 | $0.79 | $0.09 | 11.39% | | Diluted EPS | $0.85 | $0.78 | $0.07 | 8.97% | Condensed Consolidated Statements of Income (9 Months Ended Sep 30) | Metric | 9 Months Ended Sep 30, 2023 (in thousands) | 9 Months Ended Sep 30, 2022 (in thousands) | Change (in thousands) | YoY Change (%) | | :------------------------------------------------- | :----------------------------------------- | :----------------------------------------- | :-------------------- | :------------- | | Total Revenue | $3,672,970 | $2,923,636 | $749,334 | 25.63% | | Operating Income | $636,825 | $297,426 | $339,399 | 114.04% | | Net Income attributable to Liberty Energy Inc. stockholders | $463,934 | $246,733 | $217,201 | 88.03% | | Basic EPS | $2.68 | $1.33 | $1.35 | 101.50% | | Diluted EPS | $2.62 | $1.30 | $1.32 | 101.54% | [Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section presents the company's comprehensive income, including net income and other comprehensive income items Condensed Consolidated Statements of Comprehensive Income (3 Months Ended Sep 30) | Metric | 3 Months Ended Sep 30, 2023 (in thousands) | 3 Months Ended Sep 30, 2022 (in thousands) | Change (in thousands) | YoY Change (%) | | :----------------------------------------- | :----------------------------------------- | :----------------------------------------- | :-------------------- | :------------- | | Net Income | $148,608 | $147,263 | $1,345 | 0.91% | | Foreign Currency Translation | $(3,148) | $(6,343) | $3,195 | -50.37% | | Comprehensive Income attributable to Liberty Energy Inc. | $145,460 | $140,621 | $4,839 | 3.44% | Condensed Consolidated Statements of Comprehensive Income (9 Months Ended Sep 30) | Metric | 9 Months Ended Sep 30, 2023 (in thousands) | 9 Months Ended Sep 30, 2022 (in thousands) | Change (in thousands) | YoY Change (%) | | :----------------------------------------- | :----------------------------------------- | :----------------------------------------- | :-------------------- | :------------- | | Net Income | $464,025 | $247,122 | $216,903 | 87.77% | | Foreign Currency Translation | $(1,618) | $(8,299) | $6,681 | -80.50% | | Comprehensive Income attributable to Liberty Energy Inc. | $462,315 | $238,444 | $223,871 | 93.89% | [Condensed Consolidated Statements of Changes in Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) This section details changes in the company's equity accounts, including retained earnings and additional paid-in capital Condensed Consolidated Statements of Changes in Equity | Metric | Dec 31, 2022 (in thousands) | Sep 30, 2023 (in thousands) | Change (in thousands) | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------- | | Total Stockholders' Equity | $1,495,017 | $1,788,562 | $293,545 | | Retained Earnings | $234,525 | $671,924 | $437,399 | | Additional Paid in Capital | $1,266,097 | $1,123,967 | $(142,130) | - Key activities impacting equity during the nine months ended September 30, 2023, included **$463.9 million** in net income, **$23.7 million** in stock-based compensation expense, and **$164.0 million** in share repurchases[24](index=24&type=chunk) - The company paid **$26.5 million** in Class A Common Stock dividends during the nine months ended September 30, 2023[24](index=24&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the company's cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (9 Months Ended Sep 30) | Metric | 9 Months Ended Sep 30, 2023 (in thousands) | 9 Months Ended Sep 30, 2022 (in thousands) | Change (in thousands) | | :---------------------------------------- | :----------------------------------------- | :----------------------------------------- | :-------------------- | | Net Cash Provided by Operating Activities | $719,841 | $292,610 | $427,231 | | Net Cash Used in Investing Activities | $(528,435) | $(333,875) | $(194,560) | | Net Cash (Used in) Provided by Financing Activities | $(208,340) | $45,642 | $(253,982) | | Cash and Cash Equivalents—End of Period | $26,603 | $24,045 | $2,558 | - Purchases of property and equipment and construction in-progress increased to **$465.2 million** in 2023 from **$327.0 million** in 2022[27](index=27&type=chunk) - The Siren Energy acquisition used **$75.7 million** in cash, net of cash received, during the nine months ended September 30, 2023[27](index=27&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements [Note 1—Organization and Basis of Presentation](index=11&type=section&id=Note%201%E2%80%94Organization%20and%20Basis%20of%20Presentation) This note describes the company's business, corporate structure, and the basis for financial statement presentation - Liberty Energy Inc. is a leading integrated energy services and technology company focused on hydraulic fracturing and related services for onshore oil and natural gas E&P companies in North America[32](index=32&type=chunk) - Effective January 31, 2023, Liberty LLC merged into the Company, resulting in the redemption of all Class B Common Stock for Class A Common Stock[31](index=31&type=chunk) - The company's name changed from "Liberty Oilfield Services Inc." to "Liberty Energy Inc." effective April 25, 2022[31](index=31&type=chunk) [Note 2—Significant Accounting Policies](index=12&type=section&id=Note%202%E2%80%94Significant%20Accounting%20Policies) This note outlines the key accounting policies and recent accounting pronouncements adopted by the company - The Company completed the acquisition of Siren Energy on April 6, 2023, for **$76.0 million** in cash, recognizing **$42.0 million** in goodwill[40](index=40&type=chunk) - Transaction and integration costs associated with acquisitions are expensed as incurred[38](index=38&type=chunk) - The Company adopted ASU No. 2021-08, Business Combinations: Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, effective December 15, 2022, with no material impact[39](index=39&type=chunk) [Note 3—Inventories](index=12&type=section&id=Note%203%E2%80%94Inventories) This note provides a breakdown of inventory categories and related accounting adjustments Inventories | Inventory Category | Sep 30, 2023 (in thousands) | Dec 31, 2022 (in thousands) | | :----------------- | :-------------------------- | :-------------------------- | | Proppants | $17,691 | $31,350 | | Chemicals | $17,554 | $32,392 | | Maintenance parts and other | $176,502 | $150,712 | | **Total Inventories** | **$211,747** | **$214,454** | - The company recorded an inventory write-down of **$2.2 million** for the nine months ended September 30, 2023[43](index=43&type=chunk) [Note 4—Property and Equipment](index=13&type=section&id=Note%204%E2%80%94Property%20and%20Equipment) This note details the composition of property and equipment, including depreciation and assets held for sale Property and Equipment, Net | Category | Sep 30, 2023 (in thousands) | Dec 31, 2022 (in thousands) | | :-------------------------- | :-------------------------- | :-------------------------- | | Field services equipment | $2,398,065 | $1,925,848 | | Construction in-progress | $179,345 | $158,518 | | **Property and equipment, net** | **$1,613,437** | **$1,362,364** | - Depreciation expense for the nine months ended September 30, 2023, was **$280.9 million**, up from **$219.9 million** in the prior year period[45](index=45&type=chunk) - As of September 30, 2023, the company classified **$0.7 million** of land and **$0.8 million** of buildings as assets held for sale[47](index=47&type=chunk) [Note 5—Leases](index=13&type=section&id=Note%205%E2%80%94Leases) This note provides information on the company's lease arrangements, including lease costs and right-of-use assets Lease Cost Components (9 Months Ended Sep 30) | Lease Cost Component | 9 Months Ended Sep 30, 2023 (in thousands) | 9 Months Ended Sep 30, 2022 (in thousands) | | :------------------------- | :----------------------------------------- | :----------------------------------------- | | Amortization of ROU assets (Finance) | $11,008 | $3,796 | | Interest on lease liabilities (Finance) | $3,271 | $1,066 | | Operating lease cost | $30,562 | $32,809 | | Variable lease cost | $3,932 | $3,473 | | Short-term lease cost | $6,359 | $5,113 | | **Total Lease Cost** | **$55,132** | **$46,257** | - Right-of-use assets obtained in exchange for new finance lease liabilities increased substantially to **$105.3 million** for the nine months ended September 30, 2023, from **$14.7 million** in the prior year[53](index=53&type=chunk) - The company leases dry and wet sand containers and conveyor belts to customers through operating leases, generating **$27.8 million** in revenue for the nine months ended September 30, 2023[57](index=57&type=chunk)[58](index=58&type=chunk) [Note 6—Accrued Liabilities](index=16&type=section&id=Note%206%E2%80%94Accrued%20Liabilities) This note presents a breakdown of the company's accrued liabilities by category Accrued Liabilities | Accrued Liability Category | Sep 30, 2023 (in thousands) | Dec 31, 2022 (in thousands) | | :------------------------- | :-------------------------- | :-------------------------- | | Accrued vendor invoices | $104,033 | $119,801 | | Operations accruals | $73,270 | $72,348 | | Accrued benefits and other | $90,715 | $84,670 | | **Total Accrued Liabilities** | **$268,018** | **$276,819** | [Note 7—Debt](index=16&type=section&id=Note%207%E2%80%94Debt) This note details the company's debt instruments, including the ABL Facility and Term Loan Facility Debt, Net of Deferred Financing Costs and Original Issue Discount | Debt Category | Sep 30, 2023 (in thousands) | Dec 31, 2022 (in thousands) | | :-------------------------------------------------- | :-------------------------- | :-------------------------- | | Term Loan outstanding | $0 | $104,716 | | Revolving Line of Credit | $223,000 | $115,000 | | **Total debt, net of deferred financing costs and original issue discount** | **$223,000** | **$218,446** | - The ABL Facility's maximum revolver amount was increased from **$425.0 million** to **$525.0 million**, and its maturity date was extended to January 23, 2028[62](index=62&type=chunk) - The Term Loan Facility was paid off and terminated on January 23, 2023, using proceeds from the ABL Facility[63](index=63&type=chunk)[65](index=65&type=chunk) [Note 8—Fair Value Measurements and Financial Instruments](index=17&type=section&id=Note%208%E2%80%94Fair%20Value%20Measurements%20and%20Financial%20Instruments) This note describes the fair value measurements of financial instruments and assets held for sale - The carrying values of cash and cash equivalents, accounts receivable, accounts payable, long-term debt, and lease obligations approximated their fair values as of September 30, 2023, and December 31, 2022[73](index=73&type=chunk) - The Siren Acquisition involved nonrecurring fair value measurements for acquired assets and liabilities[75](index=75&type=chunk) - As of September 30, 2023, assets held for sale (land and buildings) were recorded at a total fair value of **$0.8 million**, based on Level 3 inputs[76](index=76&type=chunk) [Note 9—Equity](index=19&type=section&id=Note%209%E2%80%94Equity) This note provides details on the company's equity, including share repurchases, dividends, and stock-based compensation Non-vested Equity Awards Outstanding | Metric | Sep 30, 2023 | Dec 31, 2022 | | :-------------------------------- | :----------- | :----------- | | Non-vested RSUs Outstanding | 3,064,132 | 2,985,727 | | Non-vested PSUs Outstanding | 1,339,568 | 1,390,588 | - The company repurchased **11,673,886 shares** of Class A Common Stock for **$164.0 million** during the nine months ended September 30, 2023, under its expanded **$500.0 million** share repurchase program[91](index=91&type=chunk)[92](index=92&type=chunk) - Cash dividends of **$0.05 per share** of Class A Common Stock were paid quarterly, totaling **$25.8 million** for the nine months ended September 30, 2023[89](index=89&type=chunk) [Note 10—Net Income per Share](index=21&type=section&id=Note%2010%E2%80%94Net%20Income%20per%20Share) This note presents the basic and diluted net income per share calculations for various periods Net Income per Share (3 Months Ended Sep 30) | Metric | 3 Months Ended Sep 30, 2023 | 3 Months Ended Sep 30, 2022 | | :------------------------------------------------- | :-------------------------- | :-------------------------- | | Basic Net Income per Share | $0.88 | $0.79 | | Diluted Net Income per Share | $0.85 | $0.78 | Net Income per Share (9 Months Ended Sep 30) | Metric | 9 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2022 | | :------------------------------------------------- | :-------------------------- | :-------------------------- | | Basic Net Income per Share | $2.68 | $1.33 | | Diluted Net Income per Share | $2.62 | $1.30 | [Note 11—Income Taxes](index=21&type=section&id=Note%2011%E2%80%94Income%20Taxes) This note details the company's income tax expense, effective tax rate, and Tax Receivable Agreements liability Income Tax Metrics (9 Months Ended Sep 30) | Metric | 9 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2022 | | :-------------------------- | :-------------------------- | :-------------------------- | | Effective Global Income Tax Rate | 24.6% | 1.5% | | Income Tax Expense (in thousands) | $151,658 | $3,637 | - The increase in the effective tax rate is primarily due to recording taxes on U.S. activity in 2023, compared to having a valuation allowance on U.S. net deferred tax assets in 2022[104](index=104&type=chunk)[159](index=159&type=chunk) - The company's liability under the Tax Receivable Agreements (TRAs) was **$119.5 million** as of September 30, 2023, with related deferred tax assets totaling **$100.6 million**[109](index=109&type=chunk) [Note 12—Defined Contribution Plan](index=22&type=section&id=Note%2012%E2%80%94Defined%20Contribution%20Plan) This note provides information on company matching contributions to the defined contribution plan Company Matching Contributions (9 Months Ended Sep 30) | Metric | 9 Months Ended Sep 30, 2023 (in thousands) | 9 Months Ended Sep 30, 2022 (in thousands) | | :-------------------------------- | :----------------------------------------- | :----------------------------------------- | | Company Matching Contributions | $24,400 | $18,800 | [Note 13—Related Party Transactions](index=23&type=section&id=Note%2013%E2%80%94Related%20Party%20Transactions) This note discloses transactions and balances with related parties, including revenue from services and share repurchases - The company repurchased **3,000,000 shares** of Class A Common Stock for **$45.0 million** from Schlumberger, which ceased to be a related party after January 31, 2023[111](index=111&type=chunk) Related Party Transactions (9 Months Ended Sep 30) | Related Party | Service/Transaction | 9 Months Ended Sep 30, 2023 (in millions) | 9 Months Ended Sep 30, 2022 (in millions) | | :------------------------ | :-------------------------------- | :---------------------------------------- | :---------------------------------------- | | Franklin Mountain Energy, LLC | Hydraulic fracturing services revenue | $128.0 | $79.0 | | Liberty Resources LLC | Hydraulic fracturing services revenue | $33.5 | $10.3 | - Amounts outstanding from Liberty Resources LLC under an amended payment agreement were **$14.7 million** as of September 30, 2023, generating **$1.3 million** in interest income for the nine months ended September 30, 2023[115](index=115&type=chunk)[116](index=116&type=chunk) [Note 14—Commitments & Contingencies](index=24&type=section&id=Note%2014%E2%80%94Commitments%20%26%20Contingencies) This note outlines the company's contractual commitments, purchase obligations, and potential legal contingencies Purchase Obligations | Commitment Period | Amount (in thousands) | | :---------------- | :-------------------- | | Remainder of 2023 | $91,442 | | 2024 | $87,643 | | **Total** | **$179,085** | - The company has committed to purchase **2,041,893 tons** of proppant through December 31, 2024[118](index=118&type=chunk) - Potential shortfall fees for failing to purchase minimum volumes could be **$31.0 million** for the remainder of 2023 and **$17.7 million** for 2024, though the company does not expect to incur significant fees[119](index=119&type=chunk) [Note 15—Selected Quarterly Financial Data](index=25&type=section&id=Note%2015%E2%80%94Selected%20Quarterly%20Financial%20Data) This note provides a summary of key financial data for recent quarterly periods - For the three months ended September 30, 2023, net income was **$148.6 million**, while share repurchases amounted to **$29.3 million** and dividends paid were **$8.7 million**[123](index=123&type=chunk) - For the three months ended September 30, 2022, net income was **$147.0 million**, and share repurchases were **$70.0 million**[123](index=123&type=chunk) [Note 16—Subsequent Events](index=25&type=section&id=Note%2016%E2%80%94Subsequent%20Events) This note discloses significant events occurring after the reporting period but before financial statement issuance - A quarterly dividend of **$0.07 per share** of Class A Common Stock was declared on October 17, 2023, payable on December 20, 2023[124](index=124&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on financial performance, operational highlights, market trends, liquidity, and non-GAAP measures [Overview](index=26&type=section&id=Overview) This section provides a general description of Liberty Energy Inc.'s business, services, and recent strategic acquisitions - Liberty Energy Inc. provides hydraulic fracturing services, wireline services, proppant delivery, field gas processing, CNG delivery, data analytics, and lower emission technologies to North American E&P companies[127](index=127&type=chunk) - The company has grown from one active hydraulic fracturing fleet in December 2011 to over **40 active fleets** as of September 30, 2023[127](index=127&type=chunk) - Liberty Power Innovations (LPI) acquired Siren Energy on April 6, 2023, for **$76.0 million**, expanding its natural gas compression and CNG delivery capabilities in the Permian Basin[129](index=129&type=chunk) [Recent Trends and Outlook](index=26&type=section&id=Recent%20Trends%20and%20Outlook) This section discusses current industry trends, market conditions, and the company's expectations for future activity - The frac industry has stabilized with a better supply and demand balance due to consolidation, technological progress, disciplined investment, and underutilized fleets exiting the market[131](index=131&type=chunk) - Seasonal softness, winter weather, and holiday disruptions are expected in Q4 2023, but a modest increase in activity is anticipated in 2024 due to strengthening commodity prices[132](index=132&type=chunk)[133](index=133&type=chunk) Key Market Metrics | Metric | Q3 2023 | Q3 2022 | Q2 2023 | | :-------------------------------- | :------ | :------ | :------ | | Average WTI Price (per Bbl) | $82.25 | $93.06 | $73.54 | | Average Domestic Onshore Rig Count (US & Canada) | 817 | 942 | 815 | [Results of Operations](index=27&type=section&id=Results%20of%20Operations) This section analyzes the company's financial results, detailing changes in revenues, costs, and profitability for specific periods [Three Months Ended September 30, 2023, Compared to Three Months Ended September 30, 2022](index=27&type=section&id=Three%20Months%20Ended%20September%2030%2C%202023%2C%20Compared%20to%20Three%20Months%20Ended%20September%2030%2C%202022) This section compares the company's financial performance for the three months ended September 30, 2023, against the prior year period Consolidated Results (3 Months Ended Sep 30) | Metric | 3 Months Ended Sep 30, 2023 (in thousands) | 3 Months Ended Sep 30, 2022 (in thousands) | Change (in thousands) | YoY Change (%) | | :------------------------------------------------- | :----------------------------------------- | :----------------------------------------- | :-------------------- | :------------- | | Total Revenue | $1,215,905 | $1,188,247 | $27,658 | 2.3% | | Cost of Services (excl. DDA) | $850,247 | $874,453 | $(24,206) | -2.8% | | General and Administrative | $55,040 | $50,473 | $4,567 | 9.0% | | Depreciation, Depletion, and Amortization | $108,997 | $82,848 | $26,149 | 31.6% | | Operating Income | $205,227 | $182,983 | $22,244 | 12.2% | | Net Income attributable to Liberty Energy Inc. stockholders | $148,608 | $146,953 | $1,655 | 1.1% | - The decrease in cost of services was primarily related to lower costs of materials and lower operating overhead costs[138](index=138&type=chunk) - The increase in depreciation, depletion, and amortization was due to additional equipment placed in service, including digiTechnologies[142](index=142&type=chunk) [Nine Months Ended September 30, 2023, Compared to Nine Months Ended September 30, 2022](index=29&type=section&id=Nine%20Months%20Ended%20September%2030%2C%202023%2C%20Compared%20to%20Nine%20Months%20Ended%20September%2030%2C%202022) This section compares the company's financial performance for the nine months ended September 30, 2023, against the prior year period Consolidated Results (9 Months Ended Sep 30) | Metric | 9 Months Ended Sep 30, 2023 (in thousands) | 9 Months Ended Sep 30, 2022 (in thousands) | Change (in thousands) | YoY Change (%) | | :------------------------------------------------- | :----------------------------------------- | :----------------------------------------- | :-------------------- | :------------- | | Total Revenue | $3,672,970 | $2,923,636 | $749,334 | 25.6% | | Cost of Services (excl. DDA) | $2,572,119 | $2,258,190 | $313,929 | 13.9% | | General and Administrative | $166,110 | $130,953 | $35,157 | 26.8% | | Depreciation, Depletion, and Amortization | $303,093 | $234,815 | $68,278 | 29.1% | | Operating Income | $636,825 | $297,426 | $339,399 | 114.0% | | Net Income attributable to Liberty Energy Inc. stockholders | $463,934 | $246,733 | $217,201 | 88.0% | - The increase in cost of services was primarily due to higher materials and parts consumption, increased labor costs related to additional fleets and efficiency, and inflationary impacts[151](index=151&type=chunk) - General and administrative expenses increased due to labor cost inflation, corporate costs related to increased activity, and higher share-based compensation[152](index=152&type=chunk) [Comparison of Non-GAAP Financial Measures](index=30&type=section&id=Comparison%20of%20Non-GAAP%20Financial%20Measures) This section reconciles and analyzes non-GAAP financial measures such as EBITDA and Adjusted EBITDA - EBITDA is defined as net income before interest, income taxes, and depreciation, depletion, and amortization. Adjusted EBITDA further adjusts for non-cash stock-based compensation, fleet costs, transaction costs, asset disposal gains/losses, and other non-recurring items[160](index=160&type=chunk) Non-GAAP Financial Measures (9 Months Ended Sep 30) | Metric | 9 Months Ended Sep 30, 2023 (in thousands) | 9 Months Ended Sep 30, 2022 (in thousands) | Change (in thousands) | YoY Change (%) | | :---------------- | :----------------------------------------- | :----------------------------------------- | :-------------------- | :------------- | | Net Income | $464,025 | $247,122 | $216,903 | 87.8% | | EBITDA | $939,918 | $501,533 | $438,385 | 87.4% | | Adjusted EBITDA | $960,561 | $564,793 | $395,768 | 70.1% | - The increases in EBITDA and Adjusted EBITDA were primarily driven by improved market conditions and increased activity levels[165](index=165&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's sources and uses of cash, capital structure, and financial flexibility [Overview](index=32&type=section&id=Overview_Liquidity) This section outlines the company's primary sources of liquidity and current cash position - Primary liquidity sources are cash flows from operations and borrowings under the ABL Facility, supplemented by an additional equipment leasing facility[167](index=167&type=chunk) Cash and Cash Equivalents | Metric | Sep 30, 2023 (in thousands) | Dec 31, 2022 (in thousands) | Change (in thousands) | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------- | | Cash and Cash Equivalents | $26,603 | $43,676 | $(17,073) | - The ABL Facility was increased to **$525.0 million**, with **$295.6 million** of remaining availability as of September 30, 2023[169](index=169&type=chunk)[170](index=170&type=chunk) [Share Repurchase Program](index=33&type=section&id=Share%20Repurchase%20Program_Liquidity) This section details the company's share repurchase activities and remaining authorization under the program - The share repurchase program's cumulative authorization was increased to **$500.0 million**[175](index=175&type=chunk) - During the nine months ended September 30, 2023, the company repurchased **$164.0 million** of Class A Common Stock[175](index=175&type=chunk) - As of September 30, 2023, **$211.0 million** remained authorized for future repurchases[93](index=93&type=chunk) [Cash Flows](index=33&type=section&id=Cash%20Flows_Liquidity) This section analyzes the company's cash flows from operating, investing, and financing activities Cash Flows (9 Months Ended Sep 30) | Metric | 9 Months Ended Sep 30, 2023 (in thousands) | 9 Months Ended Sep 30, 2022 (in thousands) | Change (in thousands) | | :---------------------------------------- | :----------------------------------------- | :----------------------------------------- | :-------------------- | | Net Cash Provided by Operating Activities | $719,841 | $292,610 | $427,231 | | Net Cash Used in Investing Activities | $(528,435) | $(333,875) | $(194,560) | | Net Cash (Used in) Provided by Financing Activities | $(208,340) | $45,642 | $(253,982) | - The increase in operating cash flow was primarily due to a **$749.3 million** increase in revenues, partially offset by increased costs and a decrease in cash from changes in working capital[177](index=177&type=chunk) - Investing activities were higher due to investments in new equipment (digiTechnologies) and the **$75.7 million** Siren Energy acquisition[178](index=178&type=chunk) [Cash Requirements](index=33&type=section&id=Cash%20Requirements) This section identifies the company's material cash commitments, including debt, leases, and purchase obligations - Material cash commitments include long-term debt, TRAs, finance and operating leases, share repurchases, dividends, and purchase obligations[180](index=180&type=chunk) - Purchase obligations for the remainder of 2023 and 2024 total **$179.1 million**[180](index=180&type=chunk) - Finance lease obligations increased by **$105.3 million** during the three months ended September 30, 2023, due to expanded equipment lease facilities[181](index=181&type=chunk) [Income Taxes](index=34&type=section&id=Income%20Taxes_MD%26A) This section discusses the company's income tax expense and effective tax rate, including factors influencing changes Income Tax Metrics (9 Months Ended Sep 30) | Metric | 9 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2022 | | :-------------------------- | :-------------------------- | :-------------------------- | | Effective Global Income Tax Rate | 24.6% | 1.5% | | Income Tax Expense (in thousands) | $151,700 | $3,600 | - The increase in the effective tax rate is primarily due to recording taxes on U.S. activity in 2023, following the release of a valuation allowance on U.S. net deferred tax assets in 2022[184](index=184&type=chunk) [Tax Receivable Agreements](index=34&type=section&id=Tax%20Receivable%20Agreements_MD%26A) This section explains the company's obligations and benefits under the Tax Receivable Agreements - The company's liability under the TRAs was **$119.5 million** as of September 30, 2023, with related deferred tax assets totaling **$100.6 million**[109](index=109&type=chunk) - TRAs provide for payments by the Company of **85%** of net cash savings in U.S. federal, state, and local income tax resulting from certain tax basis increases and net operating losses[106](index=106&type=chunk) [Critical Accounting Estimates](index=34&type=section&id=Critical%20Accounting%20Estimates) This section highlights key accounting estimates and assumptions that are fundamental to the company's financial results - Financial statements are prepared using GAAP, requiring estimates and assumptions, particularly for critical accounting estimates that are fundamental to results of operations[187](index=187&type=chunk) - No material changes in critical accounting policies and estimates have occurred since the Annual Report[188](index=188&type=chunk) [Item 3. Quantitative and Qualitative Disclosure about Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20about%20Market%20Risk) The company faces market risk primarily from foreign currency translation in its Canadian operations, with no other material changes since December 31, 2022 - The company's operations in Canada expose it to foreign currency translation risk, as the Canadian dollar is the functional currency of its foreign subsidiary[190](index=190&type=chunk) Foreign Currency Translation Losses | Metric | 9 Months Ended Sep 30, 2023 (in millions) | 9 Months Ended Sep 30, 2022 (in millions) | | :-------------------------- | :---------------------------------------- | :---------------------------------------- | | Foreign Currency Translation Losses | $1.6 | $8.3 | - No other material changes to market risk exposures have occurred since December 31, 2022[191](index=191&type=chunk) [Item 4. Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) As of September 30, 2023, disclosure controls were effective, with updates to internal controls following the Siren Acquisition - The principal executive officer and principal financial officer concluded that disclosure controls and procedures were effective as of September 30, 2023[192](index=192&type=chunk) - Accounting functions of the Siren Acquisition were integrated during the quarter, resulting in updates to internal controls over financial reporting[193](index=193&type=chunk) - No other material changes in internal control over financial reporting occurred during the quarter ended September 30, 2023[194](index=194&type=chunk) [PART II: OTHER INFORMATION](index=36&type=section&id=PART%20II%20OTHER%20INFORMATION) This part provides additional information, including legal proceedings, risk factors, equity sales, and other disclosures [Item 1. Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates legal proceedings information from Note 14, indicating no material adverse effects are expected from current matters - The company is subject to legal and administrative proceedings from time to time, but management does not believe any current matters will have a material adverse effect on financial position or results of operations[121](index=121&type=chunk)[197](index=197&type=chunk) [Item 1A. Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) This section refers to risk factors in the Annual Report, noting no new or material changes in this Quarterly Report - Readers should consider the risk factors described in the Annual Report and other SEC filings[198](index=198&type=chunk) - No new risk factors or material changes to existing risk factors were identified in this Quarterly Report[199](index=199&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's share repurchase program, including shares bought and remaining authorization for the quarter Share Repurchase Program Activity (July 1 - Sep 30, 2023) | Period | Total Shares Purchased | Average Price Paid per Share | Approximate Dollar Value Remaining | | :-------------------------- | :--------------------- | :--------------------------- | :--------------------------------- | | July 1 - Sep 30, 2023 | 1,784,899 | $16.38 | $210,968,900 | - The share repurchase program's cumulative authorization was increased to **$500.0 million** on January 24, 2023[200](index=200&type=chunk) [Item 3. Defaults Upon Senior Securities](index=36&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - There were no defaults upon senior securities[202](index=202&type=chunk) [Item 4. Mine Safety Disclosures](index=36&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section refers to Exhibit 95 for mine safety disclosures, as required by the Federal Mine Safety and Health Act of 1977 - Mine safety disclosures, as required by the Federal Mine Safety and Health Act of 1977, are provided in Exhibit 95[203](index=203&type=chunk) [Item 5. Other Information](index=36&type=section&id=Item%205.%20Other%20Information) No director or Section 16 officer adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter - No director or Section 16 officer adopted, modified, or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter ended September 30, 2023[204](index=204&type=chunk) [Item 6. Exhibits](index=37&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Quarterly Report, including agreements, corporate documents, certifications, and XBRL files - The exhibits include the Master Transaction Agreement, Amended and Restated Certificate of Incorporation, Bylaws, CEO/CFO certifications, Mine Safety Disclosure, and XBRL taxonomy files[206](index=206&type=chunk) [SIGNATURES](index=38&type=section&id=SIGNATURES) This section contains the official signatures of the company's principal executive and financial officers - The report was signed by the Chief Executive Officer, Chief Financial Officer, and Chief Accounting Officer on October 19, 2023[211](index=211&type=chunk)