Financial Data and Key Metrics Changes - For the full year 2025, revenue was $4 billion, down from $4.3 billion in 2024. Net income totaled $148 million, with adjusted net income at $25 million, excluding $123 million of tax-affected gains on investments. Fully diluted net income per share was $0.89, and adjusted net income per fully diluted share was $0.15. Full year adjusted EBITDA was $634 million, compared to $922 million in the prior year [19][20] - In Q4 2025, revenue was $1 billion, representing a sequential increase of 10%. Q4 net income was $14 million, down from $43 million in the prior quarter. Adjusted net income was $8 million, compared to a loss of $10 million in the prior quarter. Q4 adjusted EBITDA was $158 million, increasing from $128 million in the prior quarter [19][20] Business Line Data and Key Metrics Changes - The company reported a resilient CROCI of 13% during a volatile year, driven by technological innovation and strong operational execution. The focus on expanding the simulfrac offering and leveraging AI-driven asset optimization software led to a reduction in total maintenance costs per unit of work by approximately 14% [5][6] - The LPI execution platform for earnings growth has gained strong commercial traction, with significant agreements for power solutions, including a 1 gigawatt utility-scale project with Vantage Data Centers [7][8] Market Data and Key Metrics Changes - U.S. power demand is rising at the fastest pace in decades, driven by AI-driven data center expansion and increasing industrial electrification. Data center demand for power is projected to grow threefold by 2030, highlighting the urgent need for flexible, scalable capacity [10][11] - North American oil and gas markets have stabilized after a period of softening activity, with fourth quarter completions activity exceeding expectations. Completions demand is projected to hold firm in 2026 [11][12] Company Strategy and Development Direction - The company aims to deploy approximately 3 gigawatts of power projects by 2029, focusing on long-term value creation and sustainable returns. The strategy includes investing in technology and partnerships to enhance its power solutions business [15][18] - The company is transitioning from a premier North American completions company to a diversified energy technology and power infrastructure platform, emphasizing the importance of advanced technology and strategic partnerships [14][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate market cycles and capitalize on power growth potential, despite anticipated pricing headwinds and increased development costs for the LPI Distributed Power Solutions business [15][23] - The company expects to see strong demand for its digiTechnologies platform and improved economics, with a focus on driving value creation and prioritizing long-term returns [16][19] Other Important Information - The company ended the year with a cash balance of $28 million and net debt of $219 million, which increased by $49 million from the prior year. Total liquidity at the end of the year was $281 million [21][22] - Capital expenditures for 2025 were $571 million, including investments in infrastructure and technology, with expectations for continued strong demand for the company's offerings [22][23] Q&A Session Summary Question: Can you discuss the pipeline of opportunities and market conditions? - Management noted a continued trend towards co-located behind-the-meter power as the best long-term solution for data centers, with increasing urgency from customers to secure power agreements [30][32] Question: How do you see the mix of power generation technology evolving? - The company can achieve the 3 gigawatts target with current technology and is confident in the efficiency of gas reciprocating engines as the preferred choice for deployment [34][36] Question: Can you comment on the delivery of equipment and confidence in timelines? - Management has strengthened relationships with suppliers and secured delivery schedules through 2029, ensuring the ability to meet project timelines [43][44] Question: How will the 3 gigawatts be achieved? - The company expects a combination of growing opportunities with existing customers and adding new customers, with ongoing conversations in the market [45] Question: What are the expectations for EBITDA in 2026? - EBITDA is expected to be down, primarily driven by the completions business, with a significant contribution from the power business anticipated in 2027 [52][53]

Financial Data and Key Metrics Changes - For the full year 2025, revenue was $4 billion, down from $4.3 billion in 2024. Adjusted EBITDA was $634 million, compared to $922 million in the prior year. Net income totaled $148 million, with adjusted net income at $25 million, excluding $123 million of tax-affected gains on investments [19][21] - In Q4 2025, revenue was $1 billion, representing a sequential increase of 10%. Fourth quarter net income was $14 million, down from $43 million in the prior quarter. Adjusted net income was $8 million, compared to a loss of $10 million in the prior quarter [19][20] Business Line Data and Key Metrics Changes - The company reported a resilient CROCI of 13% during a volatile year, driven by technological innovation and operational execution [5] - The completions business showed strong performance, with fourth quarter completions activity exceeding expectations despite seasonal declines [11][12] Market Data and Key Metrics Changes - North American oil and gas markets have stabilized after a period of softening activity, with flat oil production targets and modest growth in gas-directed activity expected [12] - Data center demand for power is projected to grow threefold by 2030, highlighting the urgent need for flexible, scalable capacity [11] Company Strategy and Development Direction - The company is focused on expanding its power infrastructure platform, aiming to deploy approximately 3 GW of power projects by 2029, which is expected to deliver sustained earnings and high returns [15][26] - The strategy includes leveraging AI-driven asset optimization software and enhancing operational efficiency through technology [5][14] Management's Comments on Operating Environment and Future Outlook - Management noted that the U.S. power demand is rising at the fastest pace in decades, driven by AI-driven data center expansion and increasing industrial electrification [10] - The company anticipates stabilization in completions markets and significant demand for its technology platform, with expectations of improved economics in the future [15][19] Other Important Information - The company ended the year with a cash balance of $28 million and net debt of $219 million, which increased by $49 million from the prior year [21] - Capital expenditures for 2025 were $571 million, including investments in infrastructure and technology [22] Q&A Session Summary Question: Can you talk about the pipeline of opportunities and what you're seeing in the market commercially right now? - Management noted a continued trend towards co-located behind-the-meter power as the best long-term solution for data centers, with increasing urgency from customers to secure power supply [30][32] Question: How do you see your mix evolving and do the customers care about the technology? - Management confirmed that they can achieve the 3 GW target with current technology and emphasized the efficiency of gas reciprocating engines as the preferred choice for deployment [34][36] Question: Can you comment on the delivery of equipment and your confidence in meeting timelines? - Management highlighted strong relationships with suppliers and confidence in meeting delivery schedules for upcoming projects [43][44] Question: Will the 3 GW deployment likely involve multiple customers or exponential add-on capacity? - Management indicated it would be a combination of both, with expectations of growing opportunities with current customers and adding new ones [45] Question: How should we think about the level of EBITDA for 2026? - Management expects EBITDA to be down, primarily driven by the completions business, with significant contributions from the power business anticipated in 2027 [53][54]

Core Viewpoint - Liberty Energy Inc. reported strong fourth quarter results for 2025, demonstrating resilience amid oil market uncertainty and a focus on technological innovation, achieving a Cash Return on Capital Invested (CROCI) of 13% [3][9][11]. Financial Performance - For the year ended December 31, 2025, Liberty generated revenues of $4.0 billion, a decrease of 7% from $4.3 billion in 2024 [9][17]. - Net income for 2025 was $148 million, or $0.89 per diluted share, down from $316 million, or $1.87 per diluted share in 2024 [9][18]. - Adjusted EBITDA for 2025 was $634 million, a 31% decrease from $922 million in 2024 [9][18]. - Fourth quarter 2025 revenue was $1.0 billion, a 10% increase from $944 million in Q4 2024 [20]. - Fourth quarter net income was $14 million, down from $52 million in Q4 2024 [20]. Operational Highlights - The company expanded its simulfrac offering and reduced total maintenance costs per unit of work by approximately 14% through AI-driven asset optimization software [3][4]. - Liberty announced a 1 GW power development agreement with Vantage Data Centers, with a firm reservation of 400 MW to be delivered in 2027 [3][9]. - A preliminary energy services agreement (ESA) for a 330 MW data center expansion in Texas was also executed, with operations expected to begin in phases starting in Q4 2027 [4][9]. Industry Context - U.S. power demand is rising rapidly, driven by AI-driven data center expansion and increased industrial electrification, with data center demand for power projected to grow threefold by 2030 [6][11]. - The North American oil and gas market has stabilized after a period of softening activity, with completions demand expected to remain firm in 2026 [7][8]. - Industry fundamentals are anticipated to improve as supply-side dynamics gradually rebalance with completions demand [8]. Strategic Initiatives - Liberty is focused on driving value creation through its completions business and power growth platform, planning to deploy approximately 3 GW of power projects by 2029 [5][11]. - The company aims to leverage its experience in the design and operation of complex, industrial-scale assets to meet the evolving energy needs of large consumers [4][11].