NYSE$LBRT

Liberty Energy Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Liberty Energy reported solid results driven by efficiency gains amidst a slowing demand environment.

Liberty Energy reported Q3 2024 revenue of $1.1 billion and net income of $74 million, or $0.44 per share. The company delivered a 22% TTM Adjusted Pre-Tax Return on Capital Employed and distributed $51 million to shareholders through share repurchases and cash dividends. They are planning to temporarily and modestly reduce our deployed fleet count while continuing to support long-term partners.

  • Revenue of $1.1 billion, a 2% sequential decrease
  • Net income of $74 million, or $0.44 fully diluted earnings per share
  • Adjusted EBITDA of $248 million
  • Distributed $51 million to shareholders through share repurchases and cash dividends

Headline financials

Total Revenue

$1.14B

Previous: $1.22B-6.4%
EPS

$0.44

Previous: $0.85-48.2%
Adjusted EBITDA

$248M

Previous: $319M-22.3%
Capital Expenditures

-$167M

No prior period
Free Cash Flow

$73.8M

Previous: $149M-50.3%
Net Income

$73.8M

Previous: $149M-50.3%
Operating Income

$107M

Previous: $205M-47.7%
Gross Profit

$298M

Previous: $366M-18.4%
Cash & Equivalents

$23M

Previous: $26.6M-13.5%
Total Assets

$3.27B

Previous: $3.09B+5.9%
Stock-Based Comp

$8.12M

Previous: $8.6M-5.5%

Revenue & EPS history

Liberty Energy · Revenue · Quarterly

$1.14B

Q3 2024-6.4%vs Q3 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

The company expects a low double-digit percentage reduction in Q4 activity, with completions activity likely increasing in early 2025. They anticipate healthy free cash flow generation in 2025 and plan to shift strategic investment towards growing opportunities for power generation services.

Tailwinds

  • Global demand for oil will grow by approximately one million barrels of oil per day this year and is expected to exceed this next year.
  • The commissioning of LNG export facilities in the U.S. and Canada is expected to stimulate gas activity in 2025 and support higher sustained natural gas demand.
  • Frac industry dynamics are poised to improve in 2025 from today’s levels.
  • Large, well-capitalized E&Ps are enjoying attractive economics across a wide range of oil prices.
  • The company expects to deliver healthy free cash flow generation in 2025.

Headwinds

  • Oil markets reflect significant uncertainty across the global economy, OPEC+ production plans, Chinese economic growth and Middle East geopolitical dynamics.
  • While global oil production may be in surplus in 2025, oil prices are expected to remain relatively rangebound and supportive of North American activity.
  • Natural gas prices rose in recent weeks after storage congestion concerns eased due to producer curtailments and strong domestic power generation demand, but higher prices may incentivize reversal of curtailments and prove to be transitory.
  • Elevated uncertainty in energy markets has further left operators reluctant to accelerate completions activity in advance of the new year.
  • Soft year end frac activity levels are pressuring prices in the near term to levels that are inconsistent with the anticipated market demand and supply of horsepower in 2025.

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 2024

Historical avgQ3 2024

+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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