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Jun 30, 2022
Liberty Energy Q2 2022 Earnings Report
Revenue increased sequentially and year-over-year, with net income and adjusted EBITDA also showing significant growth.
Key Takeaways
Liberty Energy Inc. reported strong second-quarter results with a 19% sequential increase in revenue to $943 million and a net income of $105 million, or $0.55 per share. The company reinstated its return of capital program with a $250 million share repurchase authorization and is expanding its strategic partnerships with key customers.
Revenue increased 19% sequentially and 62% year-over-year, reaching $943 million.
Net income totaled $105 million, resulting in fully diluted earnings per share of $0.55.
Adjusted EBITDA increased to $196 million.
The company reinstated its return of capital program with a share repurchase authorization of up to $250 million.
Liberty Energy
Liberty Energy
Forward Guidance
Liberty Energy anticipates approximately 10% sequential revenue growth in the third quarter, driven by fleet reactivations and modest net pricing increases. Margins are expected to improve, offset by supply chain pressures.
Positive Outlook
- Strong frac market and specific conversations with customers give confidence in the demand for Liberty services into the coming year.
- Approximately 10% sequential revenue growth is expected in the third quarter.
- Growth will be primarily driven by fleet reactivations and modest net pricing increases.
- Third quarter margins are expected to improve from the contribution of incremental fleets.
- Price improvements are expected to contribute to margin improvements.
Challenges Ahead
- Global economic recovery outlook has softened due to higher inflation and rising interest rates.
- The Russia/Ukraine conflict adds uncertainty to the energy markets.
- Supply chain, operational and inflationary pressures are ongoing.
- A severe recession could lead to a drop in global demand for oil and natural gas.
- Supply is restricted by a tight frac market, where equipment, supply chain and labor constraints limit frac fleet availability and service quality available to our customers.