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Dec 31, 2022
Liberty Energy Q4 2022 Earnings Report
Achieved record earnings per share and expanded return of capital strategy.
Key Takeaways
Liberty Energy Inc. reported a 3% sequential increase in revenue to $1.2 billion and net income of $153 million, or $0.82 fully diluted earnings per share, for the fourth quarter of 2022. The company also increased its share repurchase authorization to $500 million and declared a cash dividend of $0.05 per share.
Revenue of $1.2 billion, a 3% sequential increase.
Net income of $153 million, or $0.82 fully diluted earnings per share.
Adjusted EBITDA of $295 million, a 7% sequential increase.
Increased share repurchase authorization to $500 million.
Liberty Energy
Liberty Energy
Forward Guidance
Liberty Energy anticipates a robust multi-year outlook for North American hydrocarbon activity, underpinned by disciplined customer investments and healthy drilling returns, particularly in oil. They expect rising free cash flow and strong returns to shareholders in the coming years, driven by their competitive advantages and strong demand for their services.
Positive Outlook
- The frac market is currently tight in all the shale basins.
- The fundamental outlook for North American hydrocarbons is the healthiest Liberty has seen in our 12-year history.
- E&P customers continue to see attractive drilling returns, particularly in oil, even as breakeven prices have increased from the pandemic lows.
- Majors are redirecting capital spending to North America.
- Liberty is creating opportunity through ingenuity and innovation not just in frac fleet technologies, but also in wet sand handling equipment, logistics software and systems to optimize supply chains, predictive software generating operational efficiencies, and so much more.
Challenges Ahead
- We do expect to see some industry pullback in response to gas prices.
- Markets are preparing for the most widely anticipated recession in nearly 50 years.
- Oil supply growth remains challenged as the release of U.S. strategic petroleum reserves subsides.
- The impact of the Russian oil products export embargo hits next month.
- Reduced investment across the Russian industry gradually impacts production.