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Sep 30, 2023
Liberty Energy Q3 2023 Earnings Report
Liberty Energy's financial performance was excellent, driven by operational execution and customer engagement in a softer market.
Key Takeaways
Liberty Energy reported revenue of $1.2 billion, a 2% increase year-over-year, and net income of $149 million, or $0.85 earnings per share. The company achieved record pumping efficiencies and began commercial deployment of digiPrime hybrid pumps. They also increased the quarterly cash dividend by 40% to $0.07 per share.
Revenue increased by 2% year-over-year to $1.2 billion.
Net income rose to $149 million, with earnings per share at $0.85.
Adjusted EBITDA was $319 million, with a 12-month Adjusted Pre-Tax Return on Capital Employed of 44%.
The quarterly cash dividend increased by 40% to $0.07 per share.
Forward Guidance
Fourth quarter trends will likely see seasonal softness, winter weather, and holiday disruptions. We expect the recent strengthening of commodity prices will drive a modest increase in activity beginning in 2024.
Positive Outlook
- Frac industry dynamics are encouraging amidst moderating demand trends.
- Service prices have remained relatively steady while underutilized frac fleets exited the market.
- Fleets across the industry were idled in response to completions activity softness, supporting a better supply-demand balance of marketed fleets as compared to prior cycles.
- Frac activity has largely stabilized at current levels, representing a baseload of frac fleet demand needed to sustain E&P operators’ flattish production levels.
- The long-term demand outlook for secure North American energy anchors a more durable cycle.
Challenges Ahead
- Fourth quarter trends will likely see seasonal softness.
- Winter weather is expected to cause disruptions.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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