Summary Results and Highlights
Revenue of
Net income1 of
Adjusted EBITDA2 of
Achieved third consecutive quarter of record average daily pumping efficiency driving solid results
Began commercial deployment of digiPrime? hybrid pumps, the primary source of future horsepower anchored by the most efficient natural gas frac engines with the lowest emissions profile
Delivered strong third quarter free cash flow and returned
Repurchased and retired 1.0% of shares outstanding during the quarter, and a cumulative 10.6% of shares outstanding since reinstating the repurchase program in
Increased quarterly cash dividend by 40% to
Included in the S&P 600 Index prior to the market open on
'Liberty delivered excellent quarterly financial results reflecting outstanding operational execution, focused customer engagement and agility across a softer North American frac market. Record pumping efficiencies drove sequential growth in revenue and Adjusted EBITDA while idling one fleet during the quarter. The industry remained disciplined, championing steady pricing for quality services while withdrawing underutilized frac fleets from the market. Our superior execution combined with expanded vertical integration and technology investments culminated in a trailing 12-month Adjusted Pre-Tax Return on Capital Employed3 of 44%,' commented
'Over the years, our investment decisions have increased our competitive advantage, driving value creation through technology, scale and vertical integration. Today, the latest piece in our digiTechnologies? suite is demonstrating impressive operating results. The commercial deployment of our proprietary digiPrime units commenced in late September, quickly becoming the crew and customer's favorite technology on location. Our digiFrac? fleets deployed during the year reached new operating records, maximizing fuel efficiency with Liberty Power Innovations ('LPI') CNG logistics and on-site management. We are on track to be operating four digiFleets by year end and six digiFleets by the end of
'Our returns-focused strategy centers on strong cash flow generation to fund compelling investments while returning cash to shareholders. During the third quarter, we repurchased 1% of our shares outstanding, or a cumulative 11% since our buyback reinstatement in July 2022.'
'Our investment in differential technologies and innovative businesses build on our competitive advantage and expand our market opportunities. We increased our quarterly cash dividend by 40% in response to the significant growth in our per share earnings and cash generating abilities from our business transformation over the last three years. We remain focused on maximizing the value of each Liberty share and driving higher total returns for years to come.'
Outlook
Frac industry dynamics are encouraging amidst moderating demand trends, as service prices have remained relatively steady while underutilized frac fleets exited the market. Fleets across the industry were idled in response to completions activity softness, supporting a better supply-demand balance of marketed fleets as compared to prior cycles. As the Shale Revolution matures, the industry has adapted to a new era in frac markets through consolidation, technological progress, disciplined investment and serving increasingly complex customer needs.
Frac activity has largely stabilized at current levels, representing a baseload of frac fleet demand needed to sustain E&P operators' flattish production levels. Fourth quarter trends will likely see seasonal softness, winter weather, and holiday disruptions. We expect the recent strengthening of commodity prices will drive a modest increase in activity beginning in 2024.
Global oil and gas markets found firmer footing during the third quarter, driving higher oil and gas prices. Volatility in commodity markets has emerged from the possibility of an escalating conflict in the
'Energy market fundamentals support positive momentum in
'Liberty teams outperformed in the third quarter despite industry activity headwinds, delivering significant operating efficiencies and attractive returns. Fourth quarter activity is expected to slow modestly on normal seasonality and the related impact on efficiency. For full year 2023, we expect Adjusted EBITDA will be at the high end of our guidance range of 30% to 40% growth over 2022,' continued
Share Repurchase Program
During the quarter ended
The shares may be repurchased from time to time in open market transactions, through block trades, in privately negotiated transactions, through derivative transactions or by other means in accordance with federal securities laws. The timing, as well as the number and value of shares repurchased under the program, will be determined by the Company at its discretion and will depend on a variety of factors, including management's assessment of the intrinsic value of the Company's common stock, the market price of the Company's common stock, general market and economic conditions, available liquidity, compliance with the Company's debt and other agreements, applicable legal requirements, and other considerations. The exact number of shares to be repurchased by the Company is not guaranteed, and the program may be suspended, modified, or discontinued at any time without prior notice. The Company expects to fund the repurchases by using cash on hand, borrowings under its revolving credit facility and expected free cash flow to be generated through the authorization period.
Quarterly Cash Dividend
During the quarter ended
On
Future declarations of quarterly cash dividends are subject to approval by the Board of Directors and to the Board's continuing determination that the declarations of dividends are in the best interests of Liberty and its stockholders. Future dividends may be adjusted at the Board's discretion based on market conditions and capital availability.
S&P 600 Inclusion
Liberty was recently included in the S&P 600 Index effective prior to the market open on
Third Quarter Results
For the third quarter of 2023, revenue grew to
Net income1 (after taxes) totaled
Adjusted EBITDA2 of
Fully diluted earnings per share was
Balance Sheet and Liquidity
As of
Conference Call
Liberty will host a conference call to discuss the results at
Individuals wishing to participate in the conference call should dial (833) 255-2827, or for international callers (412) 902-6704. Participants should ask to join the
About Liberty
Liberty is a leading North American energy services firm that offers one of the most innovative suites of completion services and technologies to onshore oil and natural gas exploration and production companies. Liberty was founded in 2011 with a relentless focus on developing and delivering next generation technology for the sustainable development of unconventional energy resources in partnership with our customers. Liberty is headquartered in
Net income attributable to controlling and non-controlling interests.
Adjusted EBITDA' is a financial measure not presented in accordance with generally accepted accounting principles in
Adjusted Pre-Tax Return on Capital Employed ('ROCE') is a non-
Forward-Looking and Cautionary Statements
The information above includes 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included herein concerning, among other things, statements about our expected growth from recent acquisitions, expected performance, future operating results, oil and natural gas demand and prices and the outlook for the oil and gas industry, future global economic conditions, improvements in operating procedures and technology, our business strategy and the business strategies of our customers, the deployment of fleets in the future, planned capital expenditures, future cash flows and borrowings, pursuit of potential acquisition opportunities, our financial position, return of capital to stockholders, business strategy and objectives for future operations, are forward-looking statements. These forward-looking statements are identified by their use of terms and phrases such as 'may,' 'expect,' 'estimate,' 'outlook,' 'project,' 'plan,' 'position,' 'believe,' 'intend,' 'achievable,' 'forecast,' 'assume,' 'anticipate,' 'will,' 'continue,' 'potential,' 'likely,' 'should,' 'could,' and similar terms and phrases. However, the absence of these words does not mean that the statements are not forward-looking. Although we believe that the expectations reflected in these forward-looking statements are reasonable, they do involve certain assumptions, risks and uncertainties. The outlook presented herein is subject to change by Liberty without notice and Liberty has no obligation to affirm or update such information, except as required by law. These forward-looking statements represent our expectations or beliefs concerning future events, and it is possible that the results described in this earnings release will not be achieved. These forward-looking statements are subject to certain risks, uncertainties and assumptions identified above or as disclosed from time to time in Liberty's filings with the
Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, we do not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for us to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in 'Item 1A. Risk Factors' included in our Annual Report on Form 10-K for the year ended
Contact:
Tel: 303-515-2851
Email: IR@libertyenergy.com
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