Liberty Energy Earnings: Reduced Frac Activity Weighs on Fleet Utilization and Pricing Dynamics

Liberty Energy delivered a weaker fourth quarter as lower fracking activity persisted across North America. December featured the lowest completions activity for all of 2023, and we expect seasonal headwinds will continue to weigh on Liberty’s performance through the first quarter of 2024. We’ll incorporate the firm’s full financial and operating results shortly, but after this first look maintain our no-moat rating and $18 fair value estimate. Shares are slightly overvalued at the time of writing.