NYSE$LBRT

Liberty Energy Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Liberty Energy's financial performance was excellent, driven by operational execution and customer engagement in a softer market.

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.

Headline financials

Total Revenue

$1.22B

Previous: $1.19B+2.3%
EPS (adj)

$0.85

Previous: $0.78+9.0%
Adjusted EBITDA

$319M

Previous: $277M+15.2%
Free Cash Flow

$149M

Previous: $147M+1.1%
Net Income

$149M

Previous: $147M+1.1%
Operating Income

$205M

Previous: $183M+12.2%
Gross Profit

$366M

Previous: $314M+16.5%
Cash & Equivalents

$26.6M

Previous: $24M+10.6%
Total Assets

$3.09B

Previous: $2.53B+22.3%
Stock-Based Comp

$8.6M

Previous: $6.11M+40.6%

Revenue & EPS history

Liberty Energy · Revenue · Quarterly

$1.22B

Q3 2023+2.3%vs Q3 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

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.

Tailwinds

  • 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.

Headwinds

  • 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.

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 Q3 2023

Historical avgQ3 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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