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Mar 31, 2020
Liberty Energy Q1 2020 Earnings Report
Reported revenue of $472 million and net income of $2 million for the quarter ended March 31, 2020.
Key Takeaways
Liberty Oilfield Services Inc. announced first quarter 2020 financial and operational results with revenue of $472 million and net income of $2 million, or $0.02 fully diluted income per share. Adjusted EBITDA was $54 million and annualized Adjusted EBITDA per average active fleet was $9 million. The company ended the quarter with available liquidity of $259 million.
Revenue grew 19% to $472 million compared to the fourth quarter of 2019.
Net income was $2 million, or $0.02 per fully diluted share.
Adjusted EBITDA increased 77% to $54 million sequentially.
Ended the quarter with available liquidity of $259 million.
Liberty Energy
Liberty Energy
Forward Guidance
Liberty currently projects to be free cash flow positive for the last three quarters of this year, ending the year with a greater cash balance than at the end of the first quarter.
Positive Outlook
- Balance sheet and Liberty culture will allow us the necessary flexibility to navigate this industry disruption.
- Team is strongly focused on preserving our culture and our competitive advantages while always delivering superior service to our customers.
- Working closely with customers to bring innovative engineering to their completion strategies to maximize their return for each precious investment dollar.
- Largest customers are top tier players that we chose to align with because they had strong balance sheets, high quality assets and, most importantly, are managed by great people.
- With the flexible cost structure now in place, Liberty currently projects to be free cash flow positive for the last three quarters of this year.
Challenges Ahead
- Expect very low frac activity in the oil basins in the next few months.
- The toll on separated and present Liberty employees has been significant.
- Unprecedented global oversupply of oil has negatively impacted demand for frac services.
- Suspension of future quarterly dividends until business conditions warrant reinstatement.
- Duration and depth of the oil demand contraction remains uncertain.