Liberty Energy Inc. Announces Third Quarter 2024 Financial and Operational Results

Rhea-AI Summary

Liberty Energy Inc. (NYSE: LBRT) reported its Q3 2024 financial results with revenue of $1.1 billion, a 2% sequential decrease. The company achieved net income of $74 million, or $0.44 fully diluted earnings per share, and Adjusted EBITDA of $248 million. Liberty delivered a 22% TTM Adjusted Pre-Tax Return on Capital Employed and distributed $51 million to shareholders through share repurchases and cash dividends.

The company increased its quarterly cash dividend by 14% to $0.08 per share starting Q4 2024. Liberty's fleet technology transition is on track to start 2025 with 90% of fleets primarily powered by natural gas. The company also shipped a fleet to Australia, with completions activity commencing in Q4. Despite a slowing demand environment, Liberty reached new efficiency heights, pumping more hours in a quarter than ever before.

Positive

• Revenue of $1.1 billion and Adjusted EBITDA of $248 million in Q3 2024
• Net income of $74 million, or $0.44 fully diluted earnings per share
• 22% TTM Adjusted Pre-Tax Return on Capital Employed
• Distributed $51 million to shareholders through share repurchases and cash dividends
• Increased quarterly cash dividend by 14% to $0.08 per share
• 90% of fleets expected to be primarily powered by natural gas by 2025
• Expansion into Australian market with fleet shipment and upcoming completions activity
• Reached new efficiency heights, pumping more hours in a quarter than ever before
• Repurchased and retired 1.2% of shares outstanding during Q3 2024

Negative

• 2% sequential decrease in revenue compared to Q2 2024
• Net income decreased from $149 million in Q3 2023 to $74 million in Q3 2024
• Adjusted EBITDA decreased from $319 million in Q3 2023 to $248 million in Q3 2024
• Expecting a low double-digit percentage reduction in Q4 activity
• Near-term pressure on frac service prices due to softer activity levels

Insights

Financial Analyst

Liberty Energy's Q3 2024 results show a mixed performance. Revenue decreased slightly to $1.1 billion, down 2% sequentially. Net income fell to $74 million ($0.44 EPS), compared to $149 million in Q3 2023 and $108 million in Q2 2024. Adjusted EBITDA of $248 million also declined year-over-year and sequentially.

Despite the earnings decline, Liberty continues to focus on shareholder returns, repurchasing 1.2% of shares outstanding and increasing its quarterly dividend by 14% to $0.08 per share. The company's 22% TTM Adjusted Pre-Tax ROCE demonstrates solid capital efficiency.

Looking ahead, Liberty expects a low double-digit percentage reduction in Q4 activity, which is more significant than typical seasonal softening. However, the company anticipates improved industry dynamics in 2025, with potential increases in completions activity to support E&P production targets. Liberty's strategic investments in digiFleets and power generation could provide a competitive edge in this evolving market.

Energy Industry Analyst

Liberty Energy's Q3 results reflect the broader challenges facing the frac industry. The company achieved record pumping efficiency and hours, yet revenue and earnings declined due to slowing demand. This highlights the impact of E&P operators' efficiency gains and their reluctance to accelerate completions activity amid market uncertainty.

The outlook for 2025 is cautiously optimistic, with expected growth in global oil demand and the commissioning of new LNG export facilities potentially stimulating gas activity. However, near-term pressures on frac pricing may challenge service providers' ability to invest in next-generation technologies.

Liberty's strategic focus on digiTechnologies and power generation services positions it well for future market demands. The company's expansion into new markets, such as Australia's Beetaloo Basin and its ability to leverage frac fleet expertise for commercial and industrial power applications demonstrate adaptability in a changing energy landscape. Investors should monitor how these initiatives translate into financial performance and market share gains in the coming quarters.

DENVER--(BUSINESS WIRE)-- Liberty Energy Inc. (NYSE: LBRT) (“Liberty” or the “Company”) announced today third quarter 2024 financial and operational results.

Summary Results and Highlights

• Revenue of $1.1 billion, a 2% sequential decrease
• Net income of $74 million, or $0.44 fully diluted earnings per share (“EPS”)
• Adjusted EBITDA¹ of $248 million
• Delivered 22% TTM Adjusted Pre-Tax Return on Capital Employed (“ROCE”)²
• Distributed $51 million to shareholders through share repurchases and cash dividends
• Repurchased and retired 1.2% of shares outstanding during the third quarter, and a cumulative 14.3% of shares outstanding since reinstatement of the repurchase program in July 2022
• Increased quarterly cash dividend by 14% to $0.08 per share beginning fourth quarter of 2024
• Liberty’s multi-year fleet technology transition on track to start 2025 with 90% of fleets primarily powered by natural gas
• A digiPrime fleet completed the highest number of monthly hours pumped of any crew in Liberty history
• Quarterly record for company pumping efficiency
• Shipped Liberty fleet to Australia, with completions activity commencing during the fourth quarter

“Liberty delivered a solid quarter with revenue of $1.1 billion and Adjusted EBITDA¹ of $248 million. We again reached new heights in efficiencies, pumping more hours in a quarter than ever before, amidst a backdrop of a slowing demand environment. A Liberty digiPrime fleet set the company record for number of monthly hours pumped by any crew in company history. I’m proud of our team for executing at the highest operating levels, generating strong financial performance and value for our customers,” commented Chris Wright, Chief Executive Officer.

“Our strategic investments in digiFleets and power generation are expanding our competitive advantage and market opportunities, while enabling a robust return of capital program. Since July 2022, we have distributed $509 million to shareholders through the retirement of 14% of shares outstanding and quarterly cash dividends. This week we announced a 14% increase in our quarterly cash dividend to $0.08 per share. The compounding effect of share buybacks and dividends is driving higher total shareholder returns over cycles,” continued Mr. Wright.

“Focused investments have allowed us to develop new markets and lead technology innovation and operational efficiency in the industry. Over the past year, Liberty entered partnerships to develop the new gas-rich Beetaloo Basin in Australia. We have taken a significant step forward with the arrival of a Liberty fleet in country,” continued Mr. Wright. “During the third quarter, the Liberty Advanced Equipment Technologies (LAET) manufacturing and assembly division delivered its first digiPrime pumps. Additionally, Liberty Power Innovations’ (LPI) expanded operations in the DJ Basin are off to a strong start, helping bring our frac fleet CNG fueling services to critical mass.

“Today, the rising demand for power in commercial and industrial applications offers compelling opportunities for LPI. We are excited to leverage the expertise that we have built constructing and managing power plants for frac fleets to additional opportunities both inside and outside the oilfield.”

Outlook

Oil markets reflect significant uncertainty across the global economy, OPEC+ production plans, Chinese economic growth and Middle East geopolitical dynamics. Global demand for oil will grow by approximately one million barrels of oil per day this year and is expected to exceed this next year. While global oil production may be in surplus in 2025, oil prices are expected to remain relatively rangebound and supportive of North American activity.

Natural gas prices rose in recent weeks after storage congestion concerns eased due to producer curtailments and strong domestic power generation demand, but higher prices may incentivize reversal of curtailments and prove to be transitory. The commissioning of LNG export facilities in the U.S. and Canada is expected to stimulate gas activity in 2025 and support higher sustained natural gas demand.

Frac markets are navigating the slowing of E&P operators’ 2024 development programs in response to the strong first-half 2024 efficiency gains from factors including consolidation, longer laterals, and concentration in high-graded acreage. Elevated uncertainty in energy markets has further left operators reluctant to accelerate completions activity in advance of the new year. We now expect a low double-digit percentage reduction in Q4 activity, a bit more than the typical Q4 softening. Completions activity likely increases in early 2025 to support flattish E&P oil & gas production targets. Since late 2023, U.S. crude oil production has been relatively flat and would likely decline if current completions activity levels persist.

Frac industry dynamics are poised to improve in 2025 from today’s levels. E&Ps brought wells to production faster this year, in part due to completion efficiencies and increased frac intensity with higher pump rates. Efficiencies were aided by a mix shift towards larger producers benefiting from consolidation and partnership with top tier frac service providers. Industry-wide frac efficiency is at its highest levels, but we expect the rate of improvement will slow going forward. Higher intensity fracs require more horsepower. Softer activity has been a catalyst for attrition, equipment cannibalization, and idling of fleets. Together, these imply that the supply and demand balance of frac fleets is tighter than headline fleet counts suggest.

Large, well-capitalized E&Ps are enjoying attractive economics across a wide range of oil prices. To maintain efficiency gains and further support the increasing complexity of E&P needs, investment is necessary in leading edge service technologies. Soft year end frac activity levels are pressuring prices in the near term to levels that are inconsistent with the anticipated market demand and supply of horsepower in 2025. It is important that service prices support investment, especially given aging equipment, industry underinvestment in next generation technologies, and growing fleet sizes.

“Few service providers are positioned to manage the growing complexities of completion demands with quality services and next generation technologies. We are significantly advantaged with our deep customer relationships, leading edge digiTechnologies offering, and the integrated services that enable strong efficiencies for our customers and returns for our shareholders,” commented Mr. Wright.

“We remain disciplined in investing and asset deployment as we seek to drive superior long-term financial results. Over the last two years we have maintained a roughly flat deployed fleet count. However, amidst near term reductions in customer activity and market pressures, we are planning to temporarily and modestly reduce our deployed fleet count while continuing to support our long-term partners.

“Looking ahead, we expect to deliver healthy free cash flow generation in 2025. Our investment cadence within frac slows following an accelerated technology transition push in the last few years. Our strategic investment is expected to shift in support of our growing opportunities for power generation services. We are well-positioned to deliver on our dual priorities of strategic investment and return of capital to shareholders, creating value over the long-term,” continued Mr. Wright.

Share Repurchase Program

During the quarter ended September 30, 2024, Liberty repurchased and retired 1,939,072 shares of Class A common stock at an average of $20.27 per share, representing 1.2% of shares outstanding, for approximately $39 million. Liberty has cumulatively repurchased and retired 14.3% of shares outstanding at program commencement on July 25, 2022. Total remaining authorization for future common share repurchases is approximately $323 million.

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.

Cash Dividend

During the quarter ended September 30, 2024, the Company paid a quarterly cash dividend of $0.07 per share of Class A common stock, or approximately $11 million in aggregate to shareholders.

On October 15, 2024, the Board declared a cash dividend of $0.08 per share of Class A common stock, to be paid on December 20, 2024 to holders of record as of December 6, 2024.

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.

Third Quarter Results

For the third quarter of 2024, revenue was $1.1 billion, compared to $1.2 billion in each of the third quarter of 2023 and the second quarter of 2024.

Net income (after taxes) totaled $74 million for the third quarter of 2024 compared to $149 million in the third quarter of 2023 and $108 million in the second quarter of 2024.

Adjusted Net Income³ (after taxes) totaled $76 million for the third quarter of 2024 compared to $149 million in the third quarter of 2023 and $103 million in the second quarter of 2024.

Adjusted EBITDA¹ was $248 million in the third quarter of 2024 compared to $319 million in the third quarter of 2023 and $273 million in the second quarter of 2024.

Fully diluted earnings per share of $0.44 for the third quarter of 2024 compared to $0.85 for the third quarter of 2023 and $0.64 for the second quarter of 2024.

Adjusted Net Income per Diluted Share³ of $0.45 for the third quarter of 2024 compared to $0.86 for the third quarter of 2023 and $0.61 for the second quarter of 2024.

Please refer to the tables at the end of this earnings release for a reconciliation of Adjusted EBITDA, Adjusted Net Income, and Adjusted Net Income per Diluted Share (each, a non-GAAP financial measure) to the most directly comparable GAAP financial measures.

Balance Sheet and Liquidity

As of September 30, 2024, Liberty had cash on hand of $23 million, a decrease from second quarter levels, and total debt of $123 million, drawn on the secured asset-based revolving credit facility. Total liquidity, including availability under the credit facility, was $352 million as of September 30, 2024.

Conference Call

Liberty will host a conference call to discuss the results at 8:00 a.m. Mountain Time (10:00 a.m. Eastern Time) on Thursday, October 17, 2024. Presenting Liberty’s results will be Chris Wright, Chief Executive Officer, Ron Gusek, President, and Michael Stock, Chief Financial Officer.

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 Liberty Energy call. A live webcast will be available at https://investors.libertyenergy.com. The webcast can be accessed for 90 days following the call. A telephone replay will be available shortly after the call and can be accessed by dialing (877) 344-7529, or for international callers (412) 317-0088. The passcode for the replay is 5442952. The replay will be available until October 24, 2024.

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 Denver, Colorado. For more information about Liberty, please contact Investor Relations at IR@libertyenergy.com.

1 “Adjusted EBITDA” is not presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). Please see the supplemental financial information in the table under “Reconciliation of Net Income to EBITDA and Adjusted EBITDA” at the end of this earnings release for a reconciliation of the non-GAAP financial measure of Adjusted EBITDA to its most directly comparable GAAP financial measure.

2 Adjusted Pre-Tax Return on Capital Employed is a non-U.S. GAAP operational measure. Please see the supplemental financial information in the table under “Calculation of Adjusted Pre-Tax Return on Capital Employed” at the end of this earnings release for a calculation of this measure.

3 “Adjusted Net Income” and “Adjusted Net Income per Diluted Share” are not presented in accordance with U.S. GAAP. Please see the supplemental financial information in the table under “Reconciliation of Net Income and Net Income per Diluted Share to Adjusted Net Income and Adjusted Net Income per Diluted Share” at the end of this earnings release for a reconciliation of the non-GAAP financial measures of Adjusted Net Income and Adjusted Net Income per Diluted Share to the most directly comparable GAAP financial measures.

Non-GAAP Financial Measures

This earnings release includes unaudited non-GAAP financial and operational measures, including EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income per Diluted Share, and Adjusted Pre-Tax Return on Capital Employed (“ROCE”). We believe that the presentation of these non-GAAP financial and operational measures provides useful information about our financial performance and results of operations. We define Adjusted EBITDA as EBITDA adjusted to eliminate the effects of items such as non-cash stock-based compensation, new fleet or new basin start-up costs, fleet lay-down costs, gain or loss on the disposal of assets, unrealized gain or loss on investments, net, bad debt reserves, transaction and other costs, the loss or gain on remeasurement of liability under our tax receivable agreements, and other non-recurring expenses that management does not consider in assessing ongoing performance.

Our board of directors, management, investors, and lenders use EBITDA and Adjusted EBITDA to assess our financial performance because it allows them to compare our operating performance on a consistent basis across periods by removing the effects of our capital structure (such as varying levels of interest expense), asset base (such as depreciation, depletion, and amortization) and other items that impact the comparability of financial results from period to period. We present EBITDA and Adjusted EBITDA because we believe they provide useful information regarding the factors and trends affecting our business in addition to measures calculated under U.S. GAAP.

We present Adjusted Net Income and Adjusted Net Income per Diluted Share because we believe such measures provide useful information to investors regarding our operating performance by excluding the after-tax impacts of unusual or one-time benefits or costs, including items such as unrealized gain or loss on investments, net, transaction and other costs, and the loss or gain on remeasurement of liability under our tax receivable agreements, primarily because management views the excluded items to be outside of our normal operating results. We define Adjusted Net Income as net income after eliminating the effects of such excluded items and Adjusted Net Income per Diluted Share as Adjusted Net Income divided by the number of weighted average diluted shares outstanding. Management analyzes net income without the impact of these items as an indicator of performance to identify underlying trends in our business.

We define ROCE as the ratio of adjusted pre-tax net income (adding back income tax and certain adjustments that include tax receivable agreement impacts, unrealized gain or loss on investments, net, and transaction and other costs, when applicable) for the twelve months ended September 30, 2024 to Average Capital Employed. Average Capital Employed is the simple average of total capital employed (both debt and equity) as of September 30, 2024 and September 30, 2023. ROCE is presented based on our management’s belief that these non-GAAP measures are useful information to investors when evaluating our profitability and the efficiency with which management has employed capital over time. Our management uses ROCE for that purpose. ROCE is not a measure of financial performance under U.S. GAAP and should not be considered an alternative to net income, as defined by U.S. GAAP.

Non-GAAP financial and operational measures do not have any standardized meaning and are therefore unlikely to be comparable to similar measures presented by other companies. The presentation of non-GAAP financial and operational measures is not intended to be a substitute for, and should not be considered in isolation from, the financial measures reported in accordance with U.S. GAAP. See the tables entitled Reconciliation and Calculation of Non-GAAP Financial and Operational Measures for a reconciliation or calculation of the non-GAAP financial or operational measures to the most directly comparable GAAP measure.

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, the impact of worldwide political, military and armed conflict, the impact of announcements and changes in oil production quotas by oil exporting countries, 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 current 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 Securities and Exchange Commission. As a result of these factors, many of which are beyond our control, actual results may differ materially from those indicated or implied by such forward-looking statements.

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 most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q, and in our other public filings with the SEC. These and other factors could cause our actual results to differ materially from those contained in any forward-looking statements.

Liberty Energy Inc. Selected Financial Data (unaudited)
		Three Months Ended												Nine Months Ended
		September 30,				June 30,				September 30,				September 30,
		2024				2024				2023				2024				2023
Statement of Operations Data:		(amounts in thousands, except for per share data)
Revenue		$	1,138,578			$	1,159,884			$	1,215,905			$	3,371,587			$	3,672,970
Costs of services, excluding depreciation, depletion, and amortization shown separately			840,274				835,798				850,247				2,458,752				2,572,119
General and administrative			58,614				57,700				55,040				169,300				166,110
Transaction and other costs			—				—				202				—				1,804
Depreciation, depletion, and amortization			126,395				123,305				108,997				372,886				303,093
Loss (gain) on disposal of assets			6,017				1,248				(3,808	)			6,105				(6,981	)
Total operating expenses			1,031,300				1,018,051				1,010,678				3,007,043				3,036,145
Operating income			107,278				141,833				205,227				364,544				636,825
Unrealized loss (gain) on investments, net			2,727				(7,201	)			—				(4,474	)			—
Interest expense, net			8,589				8,063				6,776				23,715				21,142
Net income before taxes			95,962				140,971				198,451				345,303				615,683
Income tax expense			22,158				32,550				49,843				81,186				151,658
Net income			73,804				108,421				148,608				264,117				464,025
Less: Net income attributable to non-controlling interests			—				—				—				—				91
Net income attributable to Liberty Energy Inc. stockholders		$	73,804			$	108,421			$	148,608			$	264,117			$	463,934
Net income attributable to Liberty Energy Inc. stockholders per common share:
Basic		$	0.45			$	0.65			$	0.88			$	1.59			$	2.68
Diluted		$	0.44			$	0.64			$	0.85			$	1.55			$	2.62
Weighted average common shares outstanding:
Basic			164,741				166,210				169,781				165,755				173,135
Diluted			168,595				169,669				173,984				169,947				177,284
Other Financial and Operational Data
Capital expenditures (1)		$	162,835			$	134,081			$	161,379			$	438,909			$	442,779
Adjusted EBITDA (2)		$	247,811			$	273,256			$	319,213			$	765,853			$	960,561

_______________
(1)		Net capital expenditures presented above include investing cash flows from purchase of property and equipment, excluding acquisitions, net of proceeds from the sales of assets.
(2)		Adjusted EBITDA is a non-GAAP financial measure. See the tables entitled “Reconciliation and Calculation of Non-GAAP Financial and Operational Measures” below.

Liberty Energy Inc.
Condensed Consolidated Balance Sheets
(unaudited, amounts in thousands)
	September 30,				December 31,
	2024				2023
Assets
Current assets:
Cash and cash equivalents	$	23,012			$	36,784
Accounts receivable and unbilled revenue		594,056				587,470
Inventories		197,563				205,865
Prepaids and other current assets		107,889				124,135
Total current assets		922,520				954,254
Property and equipment, net		1,834,214				1,645,368
Operating and finance lease right-of-use assets		357,757				274,959
Other assets		158,393				158,976
Total assets	$	3,272,884			$	3,033,557
Liabilities and Equity
Current liabilities:
Accounts payable and accrued liabilities	$	655,519			$	572,029
Current portion of operating and finance lease liabilities		93,052				67,395
Total current liabilities		748,571				639,424
Long-term debt		123,000				140,000
Long-term operating and finance lease liabilities		255,020				197,914
Deferred tax liability		102,287				102,340
Payable pursuant to tax receivable agreements		75,008				112,471
Total liabilities		1,303,886				1,192,149
Stockholders' equity:
Common Stock		1,634				1,666
Additional paid in capital		996,336				1,093,498
Retained earnings		980,914				752,328
Accumulated other comprehensive loss		(9,886	)			(6,084	)
Total stockholders’ equity		1,968,998				1,841,408
Total liabilities and equity	$	3,272,884			$	3,033,557

Liberty Energy Inc.
Reconciliation and Calculation of Non-GAAP Financial and Operational Measures
(unaudited, amounts in thousands, except per share data)
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
	Three Months Ended												Nine Months Ended
	September 30,				June 30,				September 30,				September 30,
	2024				2024				2023				2024				2023
Net income	$	73,804			$	108,421			$	148,608			$	264,117			$	464,025
Depreciation, depletion, and amortization		126,395				123,305				108,997				372,886				303,093
Interest expense, net		8,589				8,063				6,776				23,715				21,142
Income tax expense		22,158				32,550				49,843				81,186				151,658
EBITDA	$	230,946			$	272,339			$	314,224			$	741,904			$	939,918
Stock-based compensation expense		8,121				6,870				8,595				22,318				23,738
Unrealized loss (gain) on investments, net		2,727				(7,201	)			—				(4,474	)			—
Fleet start-up and lay-down costs		—				—				—				—				2,082
Transaction and other costs		—				—				202				—				1,804
Loss (gain) on disposal of assets		6,017				1,248				(3,808	)			6,105				(6,981	)
Adjusted EBITDA	$	247,811			$	273,256			$	319,213			$	765,853			$	960,561
Reconciliation of Net Income and Net Income per Diluted Share to Adjusted Net Income and Adjusted Net Income per Diluted Share
	Three Months Ended												Nine Months Ended
	September 30,				June 30,				September 30,				September 30,
	2024				2024				2023				2024				2023
Net income	$	73,804			$	108,421			$	148,608			$	264,117			$	464,025
Adjustments:
Less: Unrealized loss (gain) on investments, net		2,727				(7,201	)			—				(4,474	)			—
Add back: Transaction and other costs		—				—				202				—				1,804
Total adjustments, before taxes		2,727				(7,201	)			202				(4,474	)			1,804
Income tax expense (benefit) of adjustments		656				(1,707	)			53				(1,051	)			444
Adjusted Net Income	$	75,875			$	102,927			$	148,757			$	260,694			$	465,385
Diluted weighted average common shares outstanding		168,595				169,669				173,984				169,947				177,284
Net income per diluted share	$	0.44			$	0.64			$	0.85			$	1.55			$	2.62
Adjusted Net Income per Diluted Share	$	0.45			$	0.61			$	0.86			$	1.53			$	2.63

Calculation of Adjusted Pre-Tax Return on Capital Employed
	Twelve Months Ended
	September 30,
	2024				2023
Net income	$	356,500
Add back: Income tax expense		108,010
Less: Gain on remeasurement of liability under tax receivable agreements (1)		(1,817	)
Less: Unrealized gain on investments, net		(4,474	)
Add back: Transaction and other costs		249
Adjusted Pre-tax net income	$	458,468
Capital Employed
Total debt	$	123,000			$	223,000
Total equity		1,968,998				1,788,562
Total Capital Employed	$	2,091,998			$	2,011,562
Average Capital Employed (2)	$	2,051,780
Adjusted Pre-Tax Return on Capital Employed (3)		22	%

(1)		Gain on remeasurement of the liability under tax receivable agreements is calculated using the Company’s effective tax rates and payments expected to be made under the agreements and should be excluded in the determination of adjusted pre-tax return on capital employed.
(2)		Average Capital Employed is the simple average of Total Capital Employed as of September 30, 2024 and 2023.
(3)		Adjusted Pre-tax Return on Capital Employed is the ratio of adjusted pre-tax net income for the twelve months ended September 30, 2024 to Average Capital Employed.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241015141816/en/

Michael Stock

Chief Financial Officer

Anjali Voria, CFA

Director of Investor Relations

303-515-2851

IR@libertyenergy.com

Source: Liberty Energy Inc.

FAQ

What was Liberty Energy's (LBRT) revenue for Q3 2024?

Liberty Energy (LBRT) reported revenue of $1.1 billion for Q3 2024, representing a 2% sequential decrease from the previous quarter.

How much did Liberty Energy (LBRT) distribute to shareholders in Q3 2024?

Liberty Energy (LBRT) distributed $51 million to shareholders through share repurchases and cash dividends in Q3 2024.

What is Liberty Energy's (LBRT) new quarterly cash dividend for Q4 2024?

Liberty Energy (LBRT) increased its quarterly cash dividend by 14% to $0.08 per share, starting in Q4 2024.

How many shares did Liberty Energy (LBRT) repurchase in Q3 2024?

Liberty Energy (LBRT) repurchased and retired 1,939,072 shares of Class A common stock, representing 1.2% of shares outstanding, in Q3 2024.

What is Liberty Energy's (LBRT) outlook for Q4 2024 activity?

Liberty Energy (LBRT) expects a low double-digit percentage reduction in Q4 2024 activity, slightly more than the typical Q4 softening.