Liberty Energy Inc. (LBRT) Bundle
A Brief History of Liberty Energy Inc.
Company Overview
Liberty Energy Inc. is a leading integrated energy services and technology company, primarily involved in hydraulic fracturing services and related technologies for onshore oil and natural gas exploration and production companies. Since its inception, Liberty has expanded its operations significantly, boasting over 40 active hydraulic fracturing fleets as of September 30, 2024, compared to just one in December 2011.
Financial Performance
For the nine months ending September 30, 2024, Liberty reported:
| Description | 2024 (in thousands) | 2023 (in thousands) | Change |
|---|---|---|---|
| Revenue | $3,371,587 | $3,672,970 | ($301,383) |
| Cost of Services | $2,458,752 | $2,572,119 | ($113,367) |
| General and Administrative Expenses | $169,300 | $166,110 | $3,190 |
| Operating Income | $364,544 | $636,825 | ($272,281) |
| Net Income | $264,117 | $464,025 | ($199,908) |
Cash Flow Analysis
Liberty's cash flow for the nine months ended September 30, 2024, was as follows:
| Description | 2024 (in thousands) | 2023 (in thousands) | Change |
|---|---|---|---|
| Net cash provided by operating activities | $652,082 | $719,841 | ($67,759) |
| Net cash used in investing activities | ($454,965) | ($528,435) | $73,470 |
| Net cash used in financing activities | ($210,804) | ($208,340) | ($2,464) |
Debt and Liquidity
As of September 30, 2024, Liberty had a revolving line of credit agreement with a maximum capacity of $525 million. The outstanding balance on this line was $123 million, with $329.3 million available for future borrowings. The company’s total debt structure is as follows:
| Debt Description | Amount (in thousands) |
|---|---|
| Revolving Line of Credit | $123,000 |
Share Repurchase Program
Liberty Energy initiated a share repurchase program, with a cumulative authorization of $750 million extended through July 31, 2026. As of September 30, 2024, the company repurchased:
| Period | Shares Repurchased | Value of Shares (in thousands) |
|---|---|---|
| Three Months Ended September 30, 2024 | 1,939,072 | $39,350 |
| Nine Months Ended September 30, 2024 | 4,739,041 | $99,093 |
Recent Developments
In 2024, Liberty Energy's effective global income tax rate decreased to 23.5% from 24.6% in 2023. For the nine months ending September 30, 2024, the company recognized an income tax expense of $81.2 million compared to $151.7 million for the same period in the prior year. The company's deferred tax liabilities as of September 30, 2024, were recorded at $102.3 million.
Market Position and Future Outlook
Liberty Energy continues to maintain a strong position in the hydraulic fracturing market, with services extending across major shale basins in the U.S. and Canada. The company is focused on innovation, including the development of lower emission technologies to enhance its service offerings.
A Who Owns Liberty Energy Inc. (LBRT)
Ownership Structure
As of September 30, 2024, Liberty Energy Inc. has the following ownership structure:
| Class of Stock | Shares Outstanding | Par Value | Total Equity |
|---|---|---|---|
| Class A Common Stock | 163,393,279 | $0.01 | $996,336,000 |
| Class B Common Stock | 0 | $0.01 | $0 |
Major Shareholders
The major shareholders of Liberty Energy Inc. as of 2024 include institutional investors and individual stakeholders. Below is a summary of the significant shareholders:
| Shareholder | Ownership Percentage | Shares Held |
|---|---|---|
| Vanguard Group Inc. | 8.5% | 13,867,000 |
| BlackRock Inc. | 7.9% | 12,750,000 |
| State Street Corporation | 4.2% | 6,800,000 |
| FMR LLC (Fidelity) | 5.1% | 8,200,000 |
Insider Ownership
Insider ownership is also a critical component of the ownership structure:
| Insider Name | Position | Shares Held | Ownership Percentage |
|---|---|---|---|
| Chris Wright | CEO | 1,200,000 | 0.73% |
| Michael Stock | CFO | 450,000 | 0.27% |
Institutional Ownership Summary
As of September 30, 2024, institutional ownership represented a significant portion of Liberty Energy Inc.'s total shares:
| Institutional Owner | Percentage Ownership | Shares Held |
|---|---|---|
| Vanguard Group Inc. | 8.5% | 13,867,000 |
| BlackRock Inc. | 7.9% | 12,750,000 |
| State Street Corporation | 4.2% | 6,800,000 |
| FMR LLC (Fidelity) | 5.1% | 8,200,000 |
Recent Shareholder Actions
Liberty Energy Inc. has undertaken a share repurchase program which has affected the ownership distribution:
| Period | Shares Repurchased | Value of Shares Repurchased |
|---|---|---|
| Q3 2024 | 1,939,072 | $39,350,000 |
| YTD 2024 | 4,739,041 | $99,093,000 |
Dividend Payments
Liberty Energy Inc. has also distributed dividends which impact shareholder value:
| Dividend Type | Amount per Share | Total Paid (YTD 2024) |
|---|---|---|
| Class A Common Stock | $0.08 | $35,531,000 |
Liberty Energy Inc. (LBRT) Mission Statement
Company Overview
Liberty Energy Inc. (LBRT) is a leading integrated energy services and technology company focused on providing innovative hydraulic fracturing services and related technologies to onshore oil and natural gas exploration and production companies. As of September 30, 2024, Liberty operates over 40 active hydraulic fracturing fleets, significantly contributing to its mission of enhancing operational efficiency and reducing emissions in the energy sector.
Mission Statement
Liberty Energy Inc.'s mission is to deliver innovative and sustainable energy solutions to its customers, enabling them to achieve lower-emission completions while enhancing operational efficiencies. The company aims to be a leader in the hydraulic fracturing industry by leveraging advanced technologies and a commitment to safety and environmental stewardship.
Key Financial Metrics (as of September 30, 2024)
| Metric | Value |
|---|---|
| Revenue | $3,371,587,000 |
| Net Income | $264,117,000 |
| Operating Income | $364,544,000 |
| Total Assets | $3,272,884,000 |
| Total Liabilities | $1,303,886,000 |
| Total Stockholders’ Equity | $1,968,998,000 |
| Effective Tax Rate | 23.5% |
Operational Highlights
As of September 30, 2024, Liberty Energy has achieved significant operational milestones:
- Expanded operational footprint across major shale basins including the Permian Basin, Williston Basin, and Eagle Ford Shale.
- Increased fleet efficiency leading to higher activity levels despite a decrease in service and materials pricing.
- Invested in technology to facilitate lower emission completions, aligning with the company's sustainability goals.
Recent Developments
Liberty Energy has made strategic investments to enhance its service offerings. Notably, it has engaged in the following:
- Acquisition of tax credits under the Inflation Reduction Act, valued up to $40 million, to support its sustainability initiatives.
- Investment in Oklo Inc. for $10 million, a company focused on fission power and nuclear fuel recycling, further diversifying its portfolio.
- Implemented a share repurchase program with $322.9 million remaining authorized for future repurchases of Class A Common Stock as of September 30, 2024.
Dividend Information
Liberty Energy has maintained a consistent dividend policy:
| Dividend Payment Date | Dividend Amount |
|---|---|
| March 20, 2024 | $0.07 |
| June 20, 2024 | $0.07 |
| September 20, 2024 | $0.07 |
| Total Dividends Paid (2024) | $34.7 million |
Conclusion
Liberty Energy Inc. is positioned to continue its growth trajectory while adhering to its mission of providing innovative and sustainable energy solutions, as evidenced by its operational performance and strategic initiatives.
How Liberty Energy Inc. (LBRT) Works
Company Overview
Liberty Energy Inc. is a leading integrated energy services and technology company focused on providing innovative hydraulic fracturing services and related technologies primarily to onshore oil and natural gas exploration and production companies. As of September 30, 2024, the company operates over 40 active hydraulic fracturing fleets across major U.S. basins including the Permian Basin, Williston Basin, and Eagle Ford Shale.
Financial Performance
For the nine months ended September 30, 2024, Liberty Energy reported total revenue of $3.37 billion, a decrease of 8.2% from $3.67 billion in the same period in 2023. This drop was attributed to lower service and materials pricing, despite increased activity levels driven by enhanced fleet efficiency.
| Financial Metrics | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | Change |
|---|---|---|---|
| Revenue | $3,371,587,000 | $3,672,970,000 | $(301,383,000) |
| Cost of Services | $2,458,752,000 | $2,572,119,000 | $(113,367,000) |
| General and Administrative Expenses | $169,300,000 | $166,110,000 | $3,190,000 |
| Operating Income | $364,544,000 | $636,825,000 | $(272,281,000) |
| Net Income | $264,117,000 | $464,025,000 | $(199,908,000) |
Operational Highlights
Liberty Energy's operations have expanded significantly since its inception, focusing on hydraulic fracturing services, wireline services, proppant delivery solutions, and data analytics. The company is committed to providing lower emission completions to reduce environmental impact.
Liquidity and Capital Resources
As of September 30, 2024, Liberty Energy had cash and cash equivalents of $23.0 million, a decrease from $36.8 million at the end of 2023. The company had a revolving line of credit with a borrowing base calculated at $459.7 million, with $123.0 million outstanding and $329.3 million remaining available.
| Liquidity Metrics | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $23,012,000 | $36,784,000 |
| Outstanding Revolving Credit | $123,000,000 | $140,000,000 |
| Remaining Credit Availability | $329,300,000 | Not Applicable |
Shareholder Returns
Liberty Energy has a share repurchase program authorized to repurchase up to $750 million of its Class A Common Stock, with $322.9 million remaining available as of September 30, 2024. The company has also declared dividends, with a quarterly dividend of $0.08 per share approved on October 15, 2024, to be paid on December 20, 2024.
| Share Repurchase and Dividends | Value |
|---|---|
| Share Repurchase Authorization Remaining | $322,900,000 |
| Quarterly Dividend per Share | $0.08 |
Investment Activities
In 2024, Liberty Energy has invested in various energy-related companies and projects. The company reported investment activities including $16.1 million in investments during the nine months ended September 30, 2024, reflecting its strategic focus on growth and diversification.
Income Tax and Effective Tax Rate
The effective global income tax rate for Liberty Energy for the nine months ended September 30, 2024, was 23.5%, compared to 24.6% for the same period in 2023. The company recognized an income tax expense of $81.2 million for the nine months ended September 30, 2024.
| Income Tax Metrics | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|
| Income Tax Expense | $81,186,000 | $151,658,000 |
| Effective Tax Rate | 23.5% | 24.6% |
Conclusion
As Liberty Energy Inc. continues to navigate a challenging market environment, its operational efficiencies and strategic investments are crucial for maintaining its competitive edge in the energy sector.
How Liberty Energy Inc. (LBRT) Makes Money
Revenue Streams
Liberty Energy Inc. generates revenue primarily through hydraulic fracturing services, along with complementary services such as wireline services, proppant delivery, and field gas processing. For the nine months ended September 30, 2024, the company reported total revenue of $3,371.6 million, down from $3,672.9 million during the same period in 2023, marking a decrease of 8.2%.
| Period | Total Revenue ($ millions) | Service Revenue ($ millions) | Revenue from Related Parties ($ millions) |
|---|---|---|---|
| Q3 2024 | $1,138.6 | $1,111.9 | $26.6 |
| Q3 2023 | $1,215.9 | $1,136.4 | $79.5 |
| 9M 2024 | $3,371.6 | $3,280.8 | $90.8 |
| 9M 2023 | $3,672.9 | $3,511.5 | $161.5 |
Cost Structure
The cost of services, excluding depreciation, depletion, and amortization, for the nine months ended September 30, 2024, was $2,458.8 million, a decrease from $2,572.1 million in 2023. General and administrative expenses rose slightly to $169.3 million from $166.1 million.
| Cost Category | 9M 2024 ($ millions) | 9M 2023 ($ millions) |
|---|---|---|
| Cost of Services | $2,458.8 | $2,572.1 |
| General and Administrative | $169.3 | $166.1 |
Operating Income and Net Income
Liberty Energy's operating income for the nine months ended September 30, 2024, was $364.5 million, significantly lower than $636.8 million in the same period in 2023. The net income attributable to Liberty Energy Inc. stockholders also saw a decline to $264.1 million from $463.9 million.
| Period | Operating Income ($ millions) | Net Income ($ millions) |
|---|---|---|
| 9M 2024 | $364.5 | $264.1 |
| 9M 2023 | $636.8 | $463.9 |
EBITDA Analysis
EBITDA for the nine months ended September 30, 2024, was $741.9 million, a decrease from $939.9 million in the same period of the previous year. Adjusted EBITDA also declined to $765.9 million from $960.6 million.
| Metric | 9M 2024 ($ millions) | 9M 2023 ($ millions) |
|---|---|---|
| EBITDA | $741.9 | $939.9 |
| Adjusted EBITDA | $765.9 | $960.6 |
Dividends and Share Repurchase
Liberty Energy declared dividends totaling $34.7 million for the nine months ended September 30, 2024, compared to $25.8 million in 2023. The share repurchase program saw the company repurchase 4.7 million shares for $99.1 million during the same nine-month period.
| Type | 9M 2024 ($ millions) | 9M 2023 ($ millions) |
|---|---|---|
| Dividends Paid | $34.7 | $25.8 |
| Share Repurchases | $99.1 | $164.0 |
Debt and Liquidity
As of September 30, 2024, Liberty Energy had a total debt of $123.0 million under its revolving line of credit, with an available borrowing base of $459.7 million. The weighted average interest rate on borrowings was 6.9%.
| Metric | Amount ($ millions) |
|---|---|
| Total Debt | $123.0 |
| Available Borrowing Base | $459.7 |
| Weighted Average Interest Rate | 6.9% |
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Resources:
- Liberty Energy Inc. (LBRT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Liberty Energy Inc. (LBRT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Liberty Energy Inc. (LBRT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.