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Liberty Oilfield Services (LBRT)
NYSE:LBRT
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Liberty Oilfield Services
(NYSE:LBRT)
63Neutral
Positive Factors
Operational Performance
LBRT's discounted valuation, steady FCF conversion, cash returns, fleet quality and operational performance support a positive outlook.
Strategic Collaboration
Liberty Energy announced a strategic collaboration with DC Grid to support its initiative to deliver power outside the oil patch.
Negative Factors
Financial Performance
LBRT missed EBITDA by 5% and guided down 4Q ~25% below consensus.
Operational Challenges
Liberty Oilfield Services has idled 5% of its deployed fleets due to weak demand, indicating operational challenges.
Pricing Pressure
Pricing pressure in frac has now spread to Tier 1 Pumpers and equipment, impacting Liberty Oilfield Services.
Liberty Oilfield Services (LBRT) vs. S&P 500 (SPY)
Market Cap
$2.34B
Dividend Yield2.01%
Average Volume (3M)3.65M
Price to Earnings (P/E)7.7
Beta (1Y)0.79
Revenue Growth-9.11%
EPS Growth-40.79%
CountryUS
Employees5,700
SectorEnergy
Sector Strength73
IndustryFossil Fuels
Share Statistics
EPS (TTM)1.86
Shares Outstanding162,336,100
10 Day Avg. Volume3,473,896
30 Day Avg. Volume3,647,137
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.53
Price to Cash Flow (P/CF)2.40
P/FCF Ratio7.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$20.56Price Target Upside42.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
Liberty Oilfield Services Business Overview & Revenue Model
Company DescriptionLiberty Oilfield Services (LBRT) is a leading oilfield services company that specializes in hydraulic fracturing services for the oil and gas industry. The company operates primarily in the United States and serves a diverse base of exploration and production companies. Liberty is known for its innovative technologies and efficient service delivery, which help clients maximize the production of oil and natural gas from their wells.
How the Company Makes MoneyLiberty Oilfield Services generates revenue primarily through providing hydraulic fracturing services, which are essential in the extraction of oil and gas from unconventional reservoirs, such as shale formations. The company's key revenue streams include service fees charged for fracturing operations, which comprise the deployment of equipment, personnel, and technology to client sites. Liberty's earnings are influenced by the demand for oil and gas, technological advancements, and its ability to maintain strong relationships with major exploration and production companies. Additionally, the company may benefit from strategic partnerships and contracts that provide a steady flow of business and enhance its market presence.
Liberty Oilfield Services Financial Statement Overview
Summary
Liberty Oilfield Services presents a mixed financial picture. The income statement reflects revenue volatility and declining profit margins, hinting at operational difficulties. The balance sheet shows a stable financial structure with manageable leverage, while cash flow analysis is constrained by missing data, complicating liquidity assessment. The company must focus on enhancing profitability and generating stable cash flows to strengthen its financial standing.Income Statement
Liberty Oilfield Services showed fluctuating revenue with a decline in 2024 compared to 2023, indicating instability in revenue growth. The gross profit margin improved, achieving 100% in 2024, but net profit margin suffered significantly, dropping to 7.32% from 11.72% in 2023. EBIT and EBITDA margins decreased, suggesting increased operational challenges. Despite these challenges, the company maintains a positive net income.65
Positive
Balance Sheet
The balance sheet reflects moderate stability with a debt-to-equity ratio of 0.27 in 2024, indicating manageable leverage levels. Stockholders' equity has grown, enhancing financial resilience. The return on equity decreased to 15.97%, reflecting reduced profitability. The equity ratio is solid at 60.03%, demonstrating a strong equity base against total assets.70
Positive
Cash Flow
The cash flow statement lacks vital data for 2024, hindering comprehensive analysis. In 2023, the company showcased positive free cash flow and a strong operating cash flow to net income ratio, but without current data, assessing the present cash flow health is challenging. The absence of free cash flow in 2024 raises concerns about the company's liquidity position.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 4.32B | 4.75B | 4.15B | 2.47B | 965.79M | Gross Profit |
| 609.61M | 977.04M | 677.16M | -41.90M | -72.28M | EBIT |
| 389.47M | 760.58M | 97.91M | -181.22M | -177.03M | EBITDA |
| 940.53M | 1.19B | 748.99M | 100.57M | 3.32M | Net Income Common Stockholders |
| 316.01M | 556.32M | 399.60M | -187.00M | -160.67M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 19.98M | 36.78M | 43.68M | 20.00M | 68.98M | Total Assets |
| 3.30B | 3.03B | 2.58B | 2.04B | 1.89B | Total Debt |
| 533.61M | 405.31M | 348.92M | 243.63M | 211.58M | Net Debt |
| 513.62M | 368.52M | 305.24M | 223.64M | 142.61M | Total Liabilities |
| 1.32B | 1.19B | 1.08B | 810.22M | 579.90M | Stockholders Equity |
| 1.98B | 1.84B | 1.50B | 1.21B | 1.15B |
| Cash Flow | Free Cash Flow | |||
| 178.34M | 411.29M | 71.04M | -63.33M | -18.21M | Operating Cash Flow |
| 829.37M | 1.01B | 530.36M | 135.47M | 85.42M | Investing Cash Flow |
| -643.11M | -672.33M | -450.66M | -186.49M | -100.27M | Financing Cash Flow |
| -202.71M | -349.31M | -55.77M | 2.06M | -28.87M |
Liberty Oilfield Services Technical Analysis
Negative
14.39
Price Trends
18.79
Negative
18.36
Negative
19.55
Negative
Market Momentum
-1.09
Positive
24.60
Positive
5.54
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LBRT, the sentiment is Negative. The current price of 14.39 is below the 20-day moving average (MA) of 16.70, below the 50-day MA of 18.79, and below the 200-day MA of 19.55, indicating a bearish trend. The MACD of -1.09 indicates Positive momentum. The RSI at 24.60 is Positive, neither overbought nor oversold. The STOCH value of 5.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LBRT.
Liberty Oilfield Services Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $41.44B | 13.83 | 18.47% | 2.09% | 9.10% | 55.56% | |
77 Outperform | $10.64B | 13.94 | 27.06% | 0.79% | 16.23% | 1403.29% | |
75 Outperform | $21.41B | 8.79 | 25.14% | 2.73% | -0.32% | -3.41% | |
75 Outperform | $5.43B | 9.22 | 10.12% | 1.86% | 3.42% | -35.98% | |
75 Outperform | $55.94B | 13.32 | 21.59% | 2.70% | 9.58% | 6.53% | |
63 Neutral | $2.34B | 7.75 | 16.54% | 2.01% | -9.11% | -40.79% | |
57 Neutral | $8.36B | 5.49 | -6.03% | 7.47% | 0.03% | -68.64% |
* Energy Sector Average
Performance Comparison
LBRT
Liberty Oilfield Services
14.39
-5.49
-27.62%
BKR
Baker Hughes Company
41.85
10.83
34.91%
FTI
TechnipFMC
25.88
2.82
12.23%
HAL
Halliburton
24.66
-11.03
-30.91%
NOV
NOV
14.25
-4.00
-21.92%
SLB
Schlumberger
40.08
-11.13
-21.73%
Liberty Oilfield Services Earnings Call Summary
Earnings Call Date: Jan 29, 2025 | % Change Since: -29.98% | Next Earnings Date: Apr 16, 2025
Earnings Call Sentiment Neutral
Despite facing revenue and adjusted EBITDA declines due to market headwinds, Liberty Energy showcased strong financial performance, technological advancements, and strategic expansion into power generation. The company maintained solid shareholder returns and set operational records, positioning itself for future growth. However, increased capital expenditures and market challenges present ongoing concerns.Highlights
Strong Financial Performance
Liberty Energy concluded the year with revenue of $4.3 billion, net income of $316 million, and adjusted EBITDA of $922 million. Full-year return on capital employed was 17%, and cash return on capital invested was 21%, exceeding the 13-year S&P average.
Technological Innovations
Liberty announced the development of the digiPrime platform with the industry's first natural gas variable speed, large displacement engine with Cummins, enhancing the digiFleet offering by combining high fuel efficiency with transient load management and precision rate control.
Record Operational Performance
A Liberty digiPrime fleet set a company record of 7,143 hours pumped in a year, averaging nearly 600 hours per month, equating to approximately 96% of available hours under normal dedicated fleet utilization.
Expansion into Power Generation
Liberty is expanding its power generation services to meet rising energy demand, expecting to deploy an incremental 400 megawatts of power generation by the end of 2026, with initial deployments commencing late this year.
Shareholder Returns
Since July 2022, Liberty has distributed $550 million to shareholders through share retirements and quarterly dividends. In the fourth quarter, they repurchased approximately 1% of shares and increased dividends by 14%.
Lowlights
Revenue Decline
The full-year revenue was $4.3 billion compared to $4.7 billion in 2023, representing a 9% decline. The fourth quarter revenue was $944 million, a sequential decline of 17%.
Adjusted EBITDA Decline
Full-year adjusted EBITDA was $922 million, down from $1.2 billion in the prior year. Fourth quarter adjusted EBITDA was $156 million, down from $248 million in the prior quarter.
Market Headwinds
Late 2024 saw a slowing pace of activity, resulting in near-term price pressure, especially impacting conventional fleets. This led to a soft repricing environment as the company entered 2025.
Increased Capital Expenditures
2025 capital expenditures are expected to be approximately $650 million, with $450 million in completions and $200 million in power generation, representing a significant investment that may impact cash flow.
Company Guidance
During the fourth quarter and full year 2024 earnings call, Liberty Energy outlined their strategic guidance and financial performance metrics. The company reported revenue of $4.3 billion, net income of $316 million, and adjusted EBITDA of $922 million for the year. They achieved a return on capital employed of 17% and a cash return on capital invested of 21%, surpassing the 13-year S&P average. Liberty Energy highlighted their focus on technological innovation and fleet transition initiatives, leading to operational records. They forecast a modest sequential increase in revenue and adjusted EBITDA in the first quarter of 2025, with anticipated full-year adjusted EBITDA between $700 million and $750 million. The company plans to moderate completions capital expenditures to approximately $450 million and invest around $200 million in their power generation business, aiming for significant expansion. Liberty has already deployed 130 megawatts for digiFleet applications and expects to add an incremental 400 megawatts by the end of 2026. The company remains committed to shareholder returns, having distributed $550 million since July 2022 through share buybacks and dividends.Liberty Oilfield Services Corporate Events
Executive/Board Changes
Liberty Energy Director Audrey Robertson Resigns
Neutral
Feb 18, 2025
On February 12, 2025, Audrey Robertson, a member of the Board of Directors of Liberty Energy Inc., announced her intention to resign from the board. Her resignation is contingent upon her confirmation by the U.S. Senate as the incoming Assistant Secretary of Energy, Efficiency and Renewables in the Department of Energy.
Executive/Board ChangesBusiness Operations and Strategy
Liberty Oilfield Services Announces Leadership Restructuring
Neutral
Jan 22, 2025
On January 22, 2025, Liberty Energy Inc. announced the expansion of its Board of Directors, appointing Arjun Murti as a Class I director and Ron Gusek as a Class II director, contingent on CEO Chris Wright’s resignation due to his potential new role as the U.S. Secretary of Energy. The appointments signify strategic changes in leadership, with Gusek set to succeed Wright as CEO, reflecting the company’s focus on ensuring continuity and growth. Additionally, the Compensation Committee approved accelerated vesting of restricted stock units for Wright and established a comprehensive compensation package for Gusek, highlighting the company’s commitment to rewarding leadership and aligning incentives with performance goals.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.