Company Reports

Liberty Energy posted first-quarter earnings that were relatively in line with management’s expectations. Management indicated that full-year operating results will lean toward flattish across the board, with increased activity in the latter half of the year. At first glance, we expect to maintain our $18 fair value estimate and our no-moat rating.

Liberty Energy has provided hydraulic fracturing services since 2011, expanding from one active fleet to over 40 over the past decade. Most of its management team has been involved in technological innovation for fracking since the 1990s. Current tech solutions include statistical analysis to optimize frac design and dual-fuel fleets. The 2020 acquisition of OneStim from Schlumberger, previously the leader in North American pressure pumping, doubled Liberty's capacity while adding a slew of previously unpenetrated customers and shale basins.

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.

Liberty Energy’s third-quarter earnings reflected the firm’s continued efficiency gains amid relatively stagnant frac activity throughout North America over the last few months. Management indicated full-year operating results will likely favor the high end of guidance, implying an adjusted EBITDA margin near 26% for fiscal 2023. We’re slightly raising our fair value estimate to $18 from $17 following the results, and we maintain our no-moat rating.

Liberty Energy has provided hydraulic fracturing services since 2011, expanding from one active fleet to over 40 over the past decade. Most of its management team has been involved in technological innovation for fracking since the 1990s. Current tech solutions include statistical analysis to optimize frac design and dual-fuel fleets. The 2020 acquisition of OneStim from Schlumberger, previously the leader in North American pressure pumping, doubled Liberty's capacity while adding a slew of previously unpenetrated customers and shale basins.

Liberty Energy has provided hydraulic fracturing services since 2011, expanding from one active fleet to more than 40 over the past decade. Most of its management team has been involved in technological innovation for fracking since the 1990s. Current tech solutions include statistical analysis to optimize frac design and dual-fuel fleets. The 2020 acquisition of OneStim from Schlumberger, previously the leader in North American pressure pumping, doubled Liberty's capacity while adding a slew of previously unpenetrated customers and shale basins.

Liberty Energy posted a slightly weaker-than-expected second quarter owing to prolonged softness across the North American market. Revenue fell just shy of $1.2 billion, a 5% decline compared with last quarter, and reflects lower drilling and completions activity in response to lower oil and gas prices. We expect this dynamic will carry into the second half of the year given the recent decline in the number of rigs (down about 85 rigs versus July 2022, according to Baker Hughes), typically a leading indicator of frac spread demand in subsequent quarters. We’ll incorporate the firm’s full operating and financial results shortly, but after this first look, we maintain our $17 fair value estimate and no-moat rating.

Liberty Energy posted solid first-quarter results as elevated frac spread utilization in North America continues to push pricing power in favor of pressure pumpers. Our no-moat rating and $17 per share fair value estimate are unchanged following results.

Liberty Energy has provided hydraulic fracturing services since 2011, expanding from one active fleet to more than 40 over the past decade. Most of its management team has been involved in technological innovation for fracking since the 1990s. Current tech solutions include statistical analysis to optimize frac design and dual-fuel fleets. The 2020 acquisition of OneStim from Schlumberger, previously the leader in North American pressure pumping, doubled Liberty's capacity while adding a slew of previously unpenetrated customers and shale basins.

Liberty Energy has provided hydraulic fracturing services since 2011, expanding from one active fleet to more than 40 over the past decade. Most of its management team has been involved in technological innovation for fracking since the 1990s. Current tech solutions include statistical analysis to optimize frac design and dual-fuel fleets. The 2020 acquisition of OneStim from Schlumberger, previously the leader in North American pressure pumping, doubled Liberty's capacity while adding a slew of previously unpenetrated customers and shale basins.

Liberty Energy posted a stellar fiscal 2022 as the U.S. pressure pumping market continues to operate near full capacity. Total revenue increased 68% year over year as the firm made full use of its expanded fleet capacity, acquired in early 2021 through its purchase of OneStim from Schlumberger. Consistently maxed out capacity utilization continues to support very favorable pricing for Liberty and its peers. We expect this will persist through 2023 as U.S. production activity remains elevated and as pressure pumpers maintain a commitment to limited capacity expansion.

After incorporating Liberty Energy's full third-quarter financial results, we're slightly raising our fair value estimate to $17 from $16. We maintain the firm's no-moat rating, stable moat trend, and Morningstar Uncertainty Rating of Very High.

Liberty Energy has provided hydraulic fracturing services since 2011, expanding from one active fleet to more than 40 over the past decade. Most of its management team has been involved in technological innovation for fracking since the 1990s. Current tech solutions include statistical analysis to optimize frac design and dual-fuel fleets. The 2020 acquisition of OneStim from Schlumberger, previously the leader in North American pressure pumping, doubled Liberty's capacity while adding a slew of previously unpenetrated customers and shale basins.

Liberty Energy posted very strong results in its third quarter, with revenue increasing 82% year over year and 26% sequentially. We'll incorporate the firm's full financial results shortly, but after this first look we maintain our $16 fair value estimate. The firm's no-moat rating, stable moat trend, and Morningstar Uncertainty Rating of Very High are unchanged following results.

Liberty Energy had a very strong second quarter as exceptionally high demand for pressure pumping equipment drove significant revenue gains and margin expansion for the quarter. We’re slightly raising our fair value estimate to $16 from $15 following the results. Our no-moat rating, stable moat trend, and Morningstar Uncertainty Rating of Very High are unchanged.

Liberty Energy has provided hydraulic fracturing services since 2011, expanding from one active fleet to nearly 40 over the past decade. Most of its management team has been involved in technological innovation for fracking since the 1990s. Current tech solutions include statistical analysis to optimize frac design and dual-fuel fleets. The 2020 acquisition of OneStim from Schlumberger, previously the leader in North American pressure pumping, doubled Liberty's capacity while adding a slew of previously unpenetrated customers and shale basins.

Liberty Oilfield Services posted very strong results in its first quarter of 2022, with revenue increasing 44% year over year and 16% sequentially. Operating profits were positive for the first time in two years, reaching 1% for the quarter. A favorable operating environment drove most of the top and bottom line improvements, and vertical integration from the OneStim and PropX acqusitions further boosted profits this quarter. We’re optimistic about Liberty’s ability to maintain these improvements through 2022 onward as it leverages the technology acquired through these deals across its operations. By our estimate, top line growth will average 11% over the next five years, and operating margins will improve steadily, reaching 8% by midcycle. We’re therefore increasing our fair value estimate to $15 from $12. We maintain our no-moat rating and stable moat trend.

Liberty Oilfield Services has provided hydraulic fracturing services since 2011, expanding from one active fleet to 30 over the last decade. Most of its management team has been involved in technological innovation for hydraulic fracturing since the 1990s. Current tech solutions include statistical analysis to optimize frac design and dual-fuel fleets. The 2020 acquisition of OneStim from Schlumberger, previously the leader in North American pressure pumping, doubled Liberty’s capacity while adding a slew of previously unpenetrated customers and shale basins.

Liberty Oilfield Services has provided hydraulic fracturing services since 2011, expanding from one active fleet to 30 over the last decade. Most of its management team has been involved in technological innovation for hydraulic fracturing since the 1990s. Current tech solutions include statistical analysis to optimize frac design and dual-fuel fleets. The 2020 acquisition of OneStim from Schlumberger, previously the leader in North American pressure pumping, doubled Liberty’s capacity while adding a slew of previously unpenetrated customers and shale basins.

Liberty Oilfield Services posted solid operating results in its fourth-quarter 2021, posting sequential top-line growth of 5% and fourth-quarter operating margins of negative 9%. We intend to incorporate the firm’s financial and operating results shortly, but after this first look our fair value estimate and no moat rating are unchanged.