Liberty Energy (US:LBRT) ZACKSยท2025-07-28 13:06Financial Performance - Liberty Energy Inc. reported a second-quarter 2025 adjusted net income of 12 cents per share, missing the Zacks Consensus Estimate of 14 cents, and down significantly from 61 cents in the same quarter last year [1][10] - The company's revenues totaled $1 billion, exceeding the Zacks Consensus Estimate by $37 million, but decreased by 10% from $1.2 billion in the prior-year quarter due to a softening of completions activity [2][10] - Adjusted EBITDA was reported at $180.8 million, down from $273.3 million in the year-ago quarter and below the prediction of $194.1 million [2] Costs and Expenses - Total costs and expenses for Liberty Energy were $1 billion in the second quarter, a decrease of 1.2% from the previous year, but higher than the estimated $963.3 million [6] Shareholder Returns - The board of directors declared a quarterly dividend of 8 cents per share, unchanged from the previous quarter, with a total of $13 million returned to shareholders through dividends during the quarter [4] Strategic Initiatives - Liberty Energy announced a collaboration with Oklo to develop advanced power solutions, integrating distributed natural gas power with future small modular nuclear reactors [3] - The company is advancing its technology leadership with the introduction of a variable-speed gas engine and sand slurry system aimed at reducing costs, boosting reliability, and minimizing emissions [5] - Strategic alliances were formed in Pennsylvania and Colorado to develop power facilities that utilize on-site generation and microgrids to meet evolving energy needs [5] Balance Sheet and Capital Expenditure - As of June 30, Liberty Energy had approximately $19.6 million in cash and cash equivalents, with long-term debt of $160 million, resulting in a debt-to-capitalization ratio of 7.3% [7] - The company spent $134 million on its capital program during the quarter, which was lower than the estimated $165.7 million [7] Market Outlook - The oil markets are experiencing volatility due to global economic shifts and geopolitical tensions, yet North America's production remains stable [11] - Producers are maintaining stable production levels while cautiously managing capital spending, which may lead to increased equipment attrition and a tightening of service supply [12] - Liberty Energy plans to scale down its deployed fleet slightly while reallocating capacity to support its growing simul frac business for key long-term clients [14]