NYSE$LBRT

Liberty Energy Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Liberty Energy reported strong financial results for Q2 2023, driven by operational efficiency and strategic acquisitions.

Liberty Energy Inc. reported a revenue of $1.2 billion, a net income of $153 million, and an adjusted EBITDA of $311 million for the second quarter of 2023. The company also returned $69 million to shareholders through share repurchases and dividends.

  • Revenue increased by 27% year-over-year to $1.2 billion.
  • Net income rose by 45% year-over-year to $153 million, with fully diluted earnings per share at $0.87.
  • Adjusted EBITDA reached $311 million, and the 12-month Adjusted Pre-Tax Return on Capital Employed was 44%.
  • The company repurchased 2.7% of shares outstanding and closed the acquisition of Siren Energy.

Headline financials

Total Revenue

$1.19B

Previous: $943M+26.8%
EPS (adj)

$0.87

Previous: $0.55+58.2%
Adjusted EBITDA

$311M

No prior period
Free Cash Flow

$153M

Previous: $105M+45.2%
Net Income

$153M

Previous: $105M+45.2%
Operating Income

$206M

Previous: $111M+86.7%
Gross Profit

$362M

Previous: $229M+57.9%
Cash & Equivalents

$31.7M

Previous: $41.5M-23.6%
Total Assets

$2.92B

Previous: $2.34B+25.2%
Stock-Based Comp

$7.97M

Previous: $4.2M+89.6%

Revenue & EPS history

Liberty Energy · Revenue · Quarterly

$1.19B

Q2 2023+26.8%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

Liberty Energy anticipates a moderation in North American completions activity in the second half of the year, with service companies reducing fleets in response. The company expects to continue delivering healthy free cash flow and returning capital to shareholders through share repurchases and dividends.

Tailwinds

  • Frac markets in North America are at steady, healthy activity levels.
  • E&P operators are benefiting from lower well costs from consumable inputs.
  • Some operators are evaluating plans to pull-forward completions activity.
  • Global oil markets are signaling a constructive outlook on a tightening supply-demand balance.
  • OPEC+ supply cuts are beginning to take hold, and markets are anticipating a subsequent draw on global oil inventories.

Headwinds

  • Crude oil prices are now at pre-Russia-Ukraine war levels which has spurred private operators in oilier basins to reduce activity.
  • Lower natural gas prices have led to a curtailment of activity in gas basins.
  • Demand for frac fleets is expected to parallel recent rig count trends at approximately a one quarter lag.
  • Natural gas markets likely don’t meaningfully increase activity until 2024 in advance of rising LNG and Mexico exports.
  • Despite recessionary risks, demand for oil remains resilient given several factors, including global travel trending towards pre-Covid levels, robust demand from India and strength in emerging markets.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+3.5%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+4.0%

Avg return

30 days after

68%

23 / 34 earnings

Positive

+47.3%

Q1 2020

Best reaction

-13.2%

Q3 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.6%+12.3%+8.2%
Q4 2025+15.6%+19.4%+28.9%
Q3 2025+29.1%+27.2%+33.3%
Q2 2025-2.4%-5.2%-4.9%
Q1 2025+5.7%+5.1%+7.1%
Q4 2024-7.1%-11.4%-16.4%
Q3 2024-7.6%-11.5%-14.6%
Q2 2024+1.6%-2.8%-6.1%
Q1 2024+2.4%+2.5%+9.7%
Q4 2023+11.1%+12.9%+18.6%
Q3 2023+7.2%+5.6%+0.9%
Q2 2023-0.7%+0.8%+3.8%
Q1 2023+2.5%+6.2%-0.9%
Q4 2022+3.9%+6.0%+4.9%
Q3 2022+1.2%+5.8%+9.3%
Q2 2022+14.5%+17.8%+31.2%
Q1 2022+1.3%-6.0%-14.1%
Q4 2021-8.2%-2.2%+21.3%
Q3 2021-12.0%-16.5%-35.5%
Q2 2021-7.1%-13.1%-13.8%
Q1 2021+12.2%+7.6%+37.7%
Q4 2020-1.5%-12.2%+6.2%
Q3 2020-13.2%-12.8%+35.9%
Q2 2020-3.9%-15.8%-1.0%
Q1 2020+47.3%+30.0%+64.5%
Q4 2019-2.6%-2.7%-41.8%
Q3 2019+1.4%+6.2%-3.2%
Q2 2019+8.8%+1.6%-17.4%
Q1 2019+3.9%+8.1%-13.6%
Q4 2018+0.6%-4.3%-8.7%
Q3 2018+11.8%+16.9%+2.9%
Q2 2018+1.0%-0.4%+0.2%
Q1 2018+1.3%+2.8%-1.2%
Q4 2017+0.2%-3.7%+3.3%
Q3 2017
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q4 2015

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