NYSE$LBRT

Liberty Energy Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Announced fourth quarter and full year 2023 financial and operational results.

Liberty Energy Inc. reported Q4 2023 revenue of $1.1 billion and net income of $92 million, or $0.54 fully diluted earnings per share. The company repurchased and retired 1.2% of shares outstanding during the quarter and increased the share repurchase authorization to $750 million. A quarterly cash dividend was raised by 40% to $0.07 per share.

  • Revenue of $1.1 billion for the fourth quarter 2023.
  • Net income of $92 million, or $0.54 fully diluted earnings per share for the fourth quarter 2023.
  • Adjusted EBITDA of $253 million for the fourth quarter 2023.
  • Increased share repurchase authorization to $750 million through July 2026.

Headline financials

Total Revenue

$1.08B

Previous: $1.23B-12.3%
EPS (adj)

$0.54

Previous: $0.82-34.1%
Adjusted EBITDA

$253M

Previous: $295M-14.4%
Net Income

$92M

Previous: $153M-39.9%
Operating Income

$124M

Previous: $198M-37.6%
Gross Profit

$179M

Previous: $247M-27.3%
Stock-Based Comp

$9.29M

Previous: $5.98M+55.3%

Revenue & EPS history

Liberty Energy · Revenue · Quarterly

$1.08B

Q4 2023-12.3%vs Q4 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

Entering 2024, the fundamental outlook for the frac industry is stable. For the full year, the company expects strong free cash flow generation, with continued investment in digiTechnologies and LPI business. Looking to the first quarter, the company anticipates flattish sequential revenue and Adjusted EBITDA driven by seasonal trends and a cautious start for E&P activity.

Tailwinds

  • Demand for Liberty services is positioned to rise, albeit slowly, from current levels.
  • Trend toward higher intensity fracs raises demand for horsepower, serving to keep frac assets well utilized and drive service company returns.
  • North American operators likely serve as the largest provider of incremental oil and gas supply globally.
  • Technology transition better positions the company to deliver superior, durable returns over cycles.
  • Company enters 2024 with significant competitive advantages and the flexibility to execute on long-term strategic investments that enhance cash generation capabilities.

Headwinds

  • Near term natural gas markets are under pressure.
  • Global oil and gas markets continue to contend with commodity price fluctuations, owing to developments in geopolitics, interest rates, and macroeconomic data.
  • Range bound oil prices have not meaningfully changed E&P operator plans to deliver flat to modest production growth.
  • First quarter anticipates flattish sequential revenue and Adjusted EBITDA driven by seasonal trends and a cautious start for E&P activity.
  • Lower completions activity.

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 2023

Historical avgQ4 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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