NYSE$LBRT

Liberty Energy Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported a 75% increase in revenue compared to the third quarter and a net loss of $48 million.

Liberty Oilfield Services Inc. reported a significant increase in revenue for Q4 2020, alongside a net loss. The company successfully completed the acquisition of Schlumberger's North American pressure pumping business, OneStim®, and expects to maintain 30 frac fleets working in the first quarter of 2021.

  • Revenue increased by 75% compared to the third quarter.
  • Net loss was $48 million, or $0.41 fully diluted loss per share.
  • Adjusted EBITDA was $7 million, excluding stock-based compensation.
  • Completed the acquisition of Schlumberger’s North American pressure pumping business, OneStim®.

Headline financials

Total Revenue

$258M

Previous: $398M-35.3%
EPS (adj)

-$0.41

Previous: -$0.12-241.7%
Net Income

-$48M

Previous: -$18M-166.7%
Operating Income

-$54.4M

Previous: -$18.3M-196.7%
Gross Profit

-$24.8M

Previous: $9.24M-367.8%
Cash & Equivalents

$69M

Previous: $113M-38.8%
Total Assets

$1.89B

Previous: $1.28B+47.3%
Stock-Based Comp

$4.25M

Previous: $3.6M+17.9%

Revenue & EPS history

Liberty Energy · Revenue · Quarterly

$258M

Q4 2020-35.3%vs Q4 2019
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Forward guidance

Liberty expects to maintain approximately 30 active frac fleets in the first quarter of 2021, with the potential of adding more fleets later in the year if the economics improve. Increased efficiencies that lower our cost of delivery coupled with a gradual, modest rise in frac pricing are the factors that can drive improved fleet profitability.

Tailwinds

  • Early signs of a global economic recovery are now evident, driven by the rollout of COVID-19 vaccines.
  • Stimulative fiscal and monetary policies around the world, and pent-up demand for goods and services are positives.
  • Controlled OPEC+ production and discipline among U.S. shale companies are supporting oil and gas prices.
  • Rising rig count throughout the fourth quarter.
  • Liberty is having many productive discussions with customers to phase in modest price improvements throughout the year.

Headwinds

  • The current pricing dynamic remains challenging.
  • E&P operators are navigating through significant industry consolidation.
  • Change in the political climate is a negative factor.
  • General commitment to flat production levels relative to 2020 exit rates.
  • Frac market will experience flat to slightly rising demand for frac services in 2021.

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 Q4 2020

Historical avgQ4 2020

+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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