Liberty Energy (LBRT) Conference Summary Company Overview - Liberty Energy is a leading fracking company in the United States, celebrating its 15th anniversary in 2026, having been founded in 2011 [4][2] - The company has been ranked as the number one frack company in the U.S. for eight consecutive years according to the Kimberlite survey [4] Financial Performance - Liberty Energy reported over $4 billion in revenue last year [6] - The company has a cash return on capital invested averaging 24%, which is 50% higher than the S&P 500 and significantly higher than the OSX average [18] Business Strategy - The company aims to control critical inputs for successful fracking operations, including fuel, sand, and logistics [25] - Liberty has expanded its operations to include a power generation business, launching a CNG (Compressed Natural Gas) business to ensure fuel supply for its operations [27][28] - The company has made strategic acquisitions during downturns, such as acquiring the U.S. assets of Sangio and Schlumberger's onshore North American frac business [22][23] Technological Innovations - Liberty has introduced several technological advancements, including e-frac systems and various iterations of its DigiPrime technology [16] - The company has a complete engineering department that includes geology, reservoir evaluation, frac engineering, and big data analysis teams [17] - Liberty is focused on increasing efficiency through methods like simul frac, which has led to higher utilization of assets [35] Market Dynamics - The fracking market is currently experiencing downward pricing trends, prompting Liberty to explore additional service offerings to maintain margins [24] - The company is adapting to market conditions by lowering its headline fleet count while ensuring that all pumps are utilized effectively [34] Future Outlook - Liberty is investing in power generation, with plans to order 400 megawatts of power generation capacity [39] - The company is exploring partnerships for advanced energy solutions, including small modular nuclear reactors and enhanced geothermal energy [45][46] - Liberty aims to address global energy disparities through initiatives like the Bettering Human Lives Foundation, which focuses on transitioning homes in Sub-Saharan Africa to clean-burning LPG [50][51] Key Takeaways - Liberty Energy has established itself as a leader in the fracking industry with a strong focus on technology, efficiency, and strategic growth [4][18] - The company is well-positioned to navigate current market challenges and capitalize on future opportunities in energy generation and sustainability [39][50]

Financial Data and Key Metrics Changes - High Peak Energy reported an average production of over 53,000 BOEs per day, a 6% increase compared to Q4 [6] - The company generated nearly $200 million in EBITDA during the quarter, reflecting a 10% increase from the previous quarter [6] - Cash margins remained healthy, supported by a 3% decrease in lease operating expenses quarter over quarter [7] Business Line Data and Key Metrics Changes - The drilling team spud 20 wells during the quarter, exceeding the initial plan of 12 wells, and rig released 16 wells [9] - The average spud to spud timing improved from 14 days to about 11 days, translating to a single rig drilling over 30 wells per year [8] Market Data and Key Metrics Changes - The company is experiencing a 3% increase in costs for tubular goods due to tariffs, which could raise overall AFE by approximately 2% [16] - Despite the tariff impact, overall well costs are seeing low single-digit declines [18] Company Strategy and Development Direction - High Peak is narrowing its production guidance and raising the bottom end due to strong Q1 performance [8] - The company plans to drop one of its two rigs for four months to manage operational DUCs and maintain capital discipline [13][14] - High Peak is implementing simul frac operations to enhance efficiency and reduce costs further [18] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the current market environment and indicated flexibility to adjust development plans based on market conditions [14][15] - The company remains in a healthy financial position with no near-term debt maturities and is focused on optimizing its capital structure [27][28] Other Important Information - High Peak's reserve replacement ratio over the past three years is 400%, primarily driven by organic growth [20] - The company has a long runway of high-value drilling locations, which is becoming increasingly scarce in the industry [28] Q&A Session Summary Question: Impact of simul frac on costs - Management explained that simul frac could reduce completion time from 25-28 days to 11-14 days, resulting in approximately $1 million savings for a four-well pad [33][34][37] Question: Update on well results in Borden County - Management reported that eight wells in Borden County are performing well, with new wells showing a 20% improvement in production compared to the previous year [40][41] Question: Economic development locations with Middle Spraberry - Management indicated that they have about 200 Middle Spraberry wells in inventory, with expectations to move many into the sub $50 breakeven category over the next year [46][47] Question: Impact of 2025 development plan changes on 2026 - Management noted that maintaining efficiency gains will depend on working closely with vendor partners and market conditions [48][49] Question: Production guidance adjustments - Management confirmed that the raised production guidance is primarily due to strong Q1 performance and efficiencies, with expectations for continued strong production in 2025 [51][52] Question: Balance sheet recapitalization goals - Management emphasized the importance of optimizing capital structure and the potential for significant free cash flow generation in the coming years [56][59]

Financial Data and Key Metrics Changes - The company reported an average production of over 53,000 BOEs per day, a 6% increase compared to Q4 [6] - EBITDA for the quarter reached nearly $200 million, reflecting a 10% increase from the previous quarter [6][13] - Cash margins improved due to a 3% decrease in lease operating expenses quarter over quarter [7] Business Line Data and Key Metrics Changes - The drilling team spud 20 wells during the quarter, exceeding the initial plan of 12 wells [10] - The average spud to spud timing improved from 14 days to about 11 days, representing over a 20% efficiency gain [8] - The company is building additional drilled but uncompleted (DUC) inventory, with a work in progress well count of 28 at the end of the first quarter [11] Market Data and Key Metrics Changes - The cost of tubular goods is expected to rise by approximately 3% due to tariffs, impacting overall AFE by roughly 2% [17] - The company is experiencing low single-digit overall declines in well costs, despite the increased tubular goods prices [19] Company Strategy and Development Direction - The company is narrowing its production guidance and raising the bottom end due to strong Q1 performance [8] - A decision was made to drop one of the two rigs for four months to manage operational DUCs and maintain capital discipline [14][15] - The company plans to implement simul frac operations to further reduce development costs and improve efficiency [20] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the current market environment and indicated flexibility to adjust the development program as needed [15][29] - The company remains in a healthy financial position with no near-term debt maturities and is focused on optimizing its capital structure [28][29] - Management emphasized the importance of maintaining a long-term outlook on value creation despite market volatility [29] Other Important Information - The company has achieved a 400% reserve replacement ratio over the past three years, primarily through organic growth [21] - High Peak's profitability is highlighted as superior compared to peers, driven by a better cost structure [22] Q&A Session Summary Question: Impact of simul frac on per foot D&C cost - Management explained that simul frac could reduce completion time from 25-28 days to 11-14 days, resulting in approximately $250,000 savings per well [32][36][39] Question: Update on well results in Borden County - Management reported positive performance from eight wells in Borden County, with new wells showing a 20% improvement in production compared to the previous year [40][42] Question: Economic development locations with Middle Spraberry - Management indicated that they have about 200 Middle Spraberry wells in inventory, with expectations to move many into the sub $50 breakeven category [47][49] Question: Impact of 2025 development plan changes on 2026 - Management noted that maintaining efficiencies will depend on working closely with vendor partners and market conditions [50][51] Question: Production guidance increase rationale - The increase in production guidance was attributed to strong Q1 performance and the expectation of continued efficiency gains [52][54] Question: Balance sheet recapitalization goals - Management discussed the importance of optimizing capital structure and the potential for significant free cash flow generation in the coming years [56][60]