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Dec 31, 2024
Liberty Energy Q4 2024 Earnings Report
Liberty Energy's financial performance softened with industry activity while achieving solid financial results and operational records in technological innovation and executional excellence.
Key Takeaways
Liberty Energy Inc. reported Q4 2024 revenue of $944 million and net income of $52 million, or $0.31 fully diluted earnings per share. The company repurchased 1.0% of shares outstanding during the quarter and raised the quarterly cash dividend by 14% to $0.08 per share. They are focused on technology innovation in completion services and expansion of their power generation services business.
Q4 2024 revenue reached $944 million with a net income of $52 million, or $0.31 fully diluted earnings per share.
Adjusted EBITDA for Q4 2024 was $156 million.
The company repurchased and retired 1.0% of shares outstanding during the fourth quarter, and a cumulative 15.1% since reinstating the repurchase program in July 2022.
The quarterly cash dividend was raised by 14% to $0.08 per share beginning in the fourth quarter of 2024.
Liberty Energy
Liberty Energy
Forward Guidance
In the first quarter, Liberty anticipates a modest sequential increase in revenue and Adjusted EBITDA. The completions services business is expected to generate solid free cash flow as capital expenditures moderate, even as pricing headwinds impact profitability. Liberty will significantly grow its investment in power infrastructure to take advantage of a generational opportunity in power demand growth.
Positive Outlook
- Expect a modest sequential increase in revenue and Adjusted EBITDA in Q1 2025.
- Completions services business is expected to generate solid free cash flow.
- Capital expenditures are expected to moderate.
- Significant growth in investment in power infrastructure is planned.
- Liberty is focused on providing both return of and return on capital for shareholders.
Challenges Ahead
- Frac markets reached a trough at the end of 2024.
- Near term price pressure to start 2025, most notably impacting conventional fleets.
- Slowing pace of activity in late 2024.
- Global oil markets reflect ongoing uncertainties in geopolitics and economic growth.
- Pricing headwinds are expected to impact profitability.