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Dec 31, 2023
Liberty Energy Q4 2023 Earnings Report
Announced fourth quarter and full year 2023 financial and operational results.
Key Takeaways
Liberty Energy Inc. reported Q4 2023 revenue of $1.1 billion and net income of $92 million, or $0.54 fully diluted earnings per share. The company repurchased and retired 1.2% of shares outstanding during the quarter and increased the share repurchase authorization to $750 million. A quarterly cash dividend was raised by 40% to $0.07 per share.
Revenue of $1.1 billion for the fourth quarter 2023.
Net income of $92 million, or $0.54 fully diluted earnings per share for the fourth quarter 2023.
Adjusted EBITDA of $253 million for the fourth quarter 2023.
Increased share repurchase authorization to $750 million through July 2026.
Liberty Energy
Liberty Energy
Forward Guidance
Entering 2024, the fundamental outlook for the frac industry is stable. For the full year, the company expects strong free cash flow generation, with continued investment in digiTechnologies and LPI business. Looking to the first quarter, the company anticipates flattish sequential revenue and Adjusted EBITDA driven by seasonal trends and a cautious start for E&P activity.
Positive Outlook
- Demand for Liberty services is positioned to rise, albeit slowly, from current levels.
- Trend toward higher intensity fracs raises demand for horsepower, serving to keep frac assets well utilized and drive service company returns.
- North American operators likely serve as the largest provider of incremental oil and gas supply globally.
- Technology transition better positions the company to deliver superior, durable returns over cycles.
- Company enters 2024 with significant competitive advantages and the flexibility to execute on long-term strategic investments that enhance cash generation capabilities.
Challenges Ahead
- Near term natural gas markets are under pressure.
- Global oil and gas markets continue to contend with commodity price fluctuations, owing to developments in geopolitics, interest rates, and macroeconomic data.
- Range bound oil prices have not meaningfully changed E&P operator plans to deliver flat to modest production growth.
- First quarter anticipates flattish sequential revenue and Adjusted EBITDA driven by seasonal trends and a cautious start for E&P activity.
- Lower completions activity.