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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.
Liberty Energy
Liberty Energy
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.
- Holiday disruptions are anticipated.
- Volatility in commodity markets has emerged from the possibility of an escalating conflict in the Middle East.
- Renewed recessionary fears are present.