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Liberty Oilfield Services (LBRT)
NYSE:LBRT
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Liberty Oilfield Services
(NYSE:LBRT)
70Neutral
Positive Factors
Financial Performance
LBRT reported an upside 1Q and guided to sequential improvement in 2Q.
Operational Efficiency
LBRT's Completion Services business is considered best in class, with frac assets almost fully utilized compared to industry averages.
Strategic Initiatives
LBRT's new Power Generation Services business and the value that these investments create seem under-appreciated, suggesting potential for future growth.
Negative Factors
Macroeconomic Risks
Macroeconomic and oil price uncertainty creates potential downside risk for LBRT as a high beta, pureplay US Land Oil Field Services stock.
Market Uncertainty
Lack of firm offtake and plans to play in the merchant power market create uncertainty around future cash flows.
Oil Price Sensitivity
There is plausible downside to previous EBITDA guidance if WTI falls below $60 per barrel, indicating potential risks due to macroeconomic and oil price uncertainty.
Liberty Oilfield Services (LBRT) vs. S&P 500 (SPY)
Market Cap
$1.82B
Dividend Yield2.45%
Average Volume (3M)3.91M
Price to Earnings (P/E)6.0
Beta (1Y)1.12
Revenue Growth-7.45%
EPS Growth-44.88%
CountryUS
Employees5,700
SectorEnergy
Sector Strength47
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.31
Shares Outstanding162,336,100
10 Day Avg. Volume4,677,603
30 Day Avg. Volume3,913,080
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 Ratio7.60
Enterprise Value/Market Cap2.11
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit6.30
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$17.28Price Target Upside40.95% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
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 exhibits a strong financial performance with solid profitability margins and a stable balance sheet. The company effectively manages leverage while generating robust cash flows. However, the recent decline in revenue growth could pose a challenge, necessitating strategic initiatives to revitalize top-line growth.Income Statement
Liberty Oilfield Services shows a positive trajectory in profitability. The TTM Gross Profit Margin is 12.57%, and the Net Profit Margin is 6.02%, indicating effective cost management. However, Revenue Growth Rate has been negative recently, reflecting a decrease in revenue compared to the previous year. EBIT and EBITDA margins are solid at 6.95% and 20.41%, respectively, showcasing operational efficiency.75
Positive
Balance Sheet
The company maintains a stable financial position with a Debt-to-Equity Ratio of 0.29, indicating moderate leverage. The Return on Equity (ROE) is 12.88%, which suggests a decent return on shareholder investments. The Equity Ratio is 58.83%, highlighting a strong equity base relative to total assets. However, there is room for improvement in asset growth.70
Positive
Cash Flow
The cash flow position is robust with a positive Free Cash Flow Growth Rate of 24.54% from the last annual report. The Operating Cash Flow to Net Income Ratio is 3.39, demonstrating strong cash generation efficiency relative to net income. The Free Cash Flow to Net Income Ratio is 0.87, indicating effective conversion of net income into free cash flow.78
Positive
| 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
Neutral
12.26
Price Trends
13.94
Negative
16.64
Negative
18.02
Negative
Market Momentum
-0.55
Negative
46.58
Neutral
41.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LBRT, the sentiment is Neutral. The current price of 12.26 is above the 20-day moving average (MA) of 11.55, below the 50-day MA of 13.94, and below the 200-day MA of 18.02, indicating a neutral trend. The MACD of -0.55 indicates Negative momentum. The RSI at 46.58 is Neutral, neither overbought nor oversold. The STOCH value of 41.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LBRT.
Liberty Oilfield Services Peers Comparison
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.09B | 8.65 | 10.07% | ― | 49.31% | 10605.17% | |
70 Neutral | $1.82B | 6.00 | 13.18% | 2.45% | -7.45% | -44.88% | |
66 Neutral | $1.79B | 26.33 | 6.30% | 6.08% | 71.99% | -48.41% | |
66 Neutral | $997.07M | 11.99 | 5.64% | ― | 0.34% | ― | |
56 Neutral | $6.99B | 3.76 | -4.38% | 5.90% | -0.24% | -48.46% | |
54 Neutral | $267.89M | 48.87 | 0.76% | ― | -9.04% | ― | |
53 Neutral | $515.81M | ― | -16.24% | ― | -13.32% | -309.35% |
* Energy Sector Average
Performance Comparison
LBRT
Liberty Oilfield Services
12.26
-9.54
-43.76%
INVX
Innovex International
15.77
-3.03
-16.12%
HLX
Helix Energy
6.58
-4.77
-42.03%
OIS
Oil States International
4.33
-0.07
-1.59%
PUMP
Propetro Holding
5.51
-4.09
-42.60%
AESI
Atlas Energy Solutions
14.46
-7.47
-34.06%
Liberty Oilfield Services Earnings Call Summary
Earnings Call Date:Apr 16, 2025
(Q1-2025)
| % Change Since: 7.26%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mix of positive developments and challenges. While the company reported strong revenue and EBITDA growth supported by technological advancements and strategic acquisitions, it also faced a decline in net income and increased G&A expenses. Market uncertainties due to tariffs and OPEC strategies pose potential risks. Overall, the sentiment is cautiously optimistic but mindful of external pressures.Q1-2025 Updates
Positive Updates
Strong First Quarter Revenue
Liberty Energy Inc. reported a first quarter revenue of $977 million, marking a 4% sequential increase from $944 million in the prior quarter.
Improved Adjusted EBITDA
The company achieved an adjusted EBITDA of $168 million, an 8% increase from $156 million in the previous quarter.
Advanced Technological Initiatives
Liberty Energy Inc. launched The Hive, a next-generation digital intelligence hub, and saw increased life expectancy of equipment components by implementing AI-driven predictive maintenance.
Strategic Acquisition
The acquisition of IMG, a leader in distributed power systems, strengthens Liberty's position in the PJM utility market.
Expansion of Power Services
Liberty is expanding its power services beyond the oilfield, including projects in data centers up to 250 megawatts in size.
Resilient Pricing for Next-Gen Assets
Pricing remains strong for next-generation Digi fleets, reflecting continued customer demand for high-quality assets.
Negative Updates
Decline in Net Income
Net income for the first quarter was $20 million, down from $52 million in the previous quarter.
Increased General and Administrative Expenses
G&A expenses rose to $66 million, an increase from $56 million in the prior quarter, due to accelerated and modified stock-based compensation.
Market Uncertainty Due to Tariffs and OPEC Plus Strategies
The company is facing potential challenges from tariff announcements and evolving OPEC Plus production strategies, impacting future market conditions.
Decline in Adjusted Net Income per Share
Adjusted net income per diluted share dropped to $0.04 from $0.10 in the prior quarter.
Company Guidance
In the first quarter of fiscal year 2025, Liberty Energy Inc. reported robust financial and operational performance, with revenue reaching $977 million and a net income of $20 million. The company achieved an adjusted EBITDA of $168 million, marking an 8% increase from the previous quarter. Liberty Energy distributed $37 million to shareholders through share repurchases and dividends. The quarter also saw significant operational improvements, including heightened utilization across the fleet, advancements in operational efficiencies, and a new high in equipment component life expectancy, with engine, fluid end, and power end lifespans increasing by 27%, 40%, and 37% respectively over the past two years. Despite market uncertainties linked to tariffs and OPEC plus production strategies, the company anticipates sequential growth in revenue and profitability in the second quarter, leveraging its scale, vertical integration, and technological advancements. Liberty Energy ended the quarter with a cash balance of $24 million and net debt of $186 million, while capital expenditures included $119 million in investments across various initiatives. The company is maintaining a strong balance sheet to navigate potential market challenges while pursuing long-term growth opportunities in power services and beyond.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.
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.