Liberty Energy Inc. (NYSE: LBRT; “Liberty” or the “Company”)
announced today full year and fourth quarter 2024 financial and
operational results.
Summary Results and Highlights
- Revenue of $4.3 billion for the year ended December 31,
2024
- Net income of $316 million, or $1.87 fully diluted earnings per
share (“EPS”), for the year ended December 31, 2024
- Adjusted EBITDA1 of $922 million for the year ended December
31, 2024
- Achieved 17% Adjusted Pre-Tax Return on Capital Employed
(“ROCE”)2 and 21% Cash Return on Invested Capital (“CROCI”)3 for
the year ended December 31, 2024
- Distributed $175 million to shareholders in 2024 with the
repurchase of 3.8% of shares and quarterly cash dividends
- Fourth quarter 2024 revenue of $944 million and net income of
$52 million, or $0.31 fully diluted earnings per share
- Fourth quarter 2024 Adjusted EBITDA1 of $156 million
- Repurchased and retired 1.0% of shares outstanding during the
fourth quarter, and a cumulative 15.1% of shares outstanding since
reinstating the repurchase program in July 2022
- Raised quarterly cash dividend by 14% to $0.08 per share
beginning in the fourth quarter of 2024
- Accelerated digiTechnologiesSM commercial deployments with the
innovative digiPrime technology offering, making a revolutionary
step forward in frac technology optimizing efficiency and
emissions
- Achieved a record 7,143 pumping hours on a single fleet in the
year, averaging nearly 600 hours a month
- Expanded Liberty Power Innovations’ (“LPI”) natural gas
compression, fueling, and delivery services infrastructure to
optimal scale
- Announced LPI collaboration with DC Grid to provide advanced
power solutions for commercial fleet electric vehicle hubs and data
centers
“Liberty delivered strong leadership in technological innovation
and executional excellence in 2024. Solid financial performance and
several operational records were achieved, even as industry
activity softened through the year. Full year ROCE2 was 17%, and a
CROCI3 of 21% exceeded the 13-year S&P average,” commented Ron
Gusek, incoming chief executive officer. “We executed on our fleet
transition initiatives, cost optimization efforts using AI-enhanced
digital systems, and expansion of our natural gas fueling and
delivery capacity to optimal scale.”
“Entering 2025, we have two key strategic priorities: a
continued focus on technology innovation in completions services
and significant expansion of our burgeoning power generation
services business. As the preeminent completions service provider,
the innovation cycle in software, equipment, and design is driving
long-term margin enhancement, improvement in capital efficiency,
and lower emissions. This year, our pace of next generation
equipment deployment will moderate to four to five digiFleets,
alongside the retirement of legacy conventional equipment,”
continued Mr. Gusek.
“As we look ahead, the rising demand for electrons from the
proliferation of data centers, onshoring of manufacturing activity,
expansion in mining operations, and industrial electrification
provides a supportive backdrop to expand our power generation
business outside the oilfield. We are uniquely positioned to
rapidly deploy distributed modular power solutions with low
emission, scalable power infrastructure tailored to meet project
demands,” continued Mr. Gusek. “We have already successfully
deployed 130 MW primarily for completion services applications. By
the end of 2026, we expect to take delivery of an incremental 400
MW of power generation for commercial, merchant, and industrial
applications, with deployments commencing later this year.”
“We are relentlessly focused on long-term value creation,
balancing compelling growth opportunities with return of capital to
shareholders. Since July 2022, we have distributed $550 million to
shareholders through the retirement of 15% of shares outstanding
and quarterly cash dividends,” commented Mr. Gusek. “We have built
strong partnerships and investments across the energy corridor, in
geothermal, nuclear, battery, power generation technologies, and
the Australian Beetaloo basin assets. Today, we have an undeniable
opportunity to leverage our knowledge and expertise in energy
systems to meet incremental power demand with an advantaged
platform.”
Outlook
Frac markets reached a trough at the end of 2024 after
progressive quarterly declines in industry activity since early
2023. Early signs of an inflection in completions activity have now
emerged from 2024 lows. Oil producers, which comprise the vast
majority of frac activity, are working to simply maintain
production and returning to anticipated activity levels after the
year end slowdown. Improving natural gas fundamentals are
encouraging. For the full year, industry-wide lateral footage
completed is expected to be approximately flat with 2024.
The slowing pace of activity in late 2024 resulted in near term
price pressure to start 2025, most notably impacting conventional
fleets. The fundamental outlook for next generation, higher quality
fleets remains strong, as operators continue to demand technologies
that provide significant emissions reductions, fuel savings, and
operational efficiency advantages. The growing complexities of
E&P demands and the continued drive for efficiency gains
necessitate continued investment in technology and partnerships
with high quality service companies. Liberty is well positioned to
meet this demand.
Fleet idling, attrition, and cannibalization of aging equipment
likely accelerate in the next two years as a large swath of
equipment reaches end of life. Concurrently, fleet sizes continue
to expand to meet increased horsepower requirements for higher
intensity fracs. These two dynamics imply the supply and demand
balance in horsepower is tighter than industry frac fleet counts
infer. An improvement in frac activity through the year could
support better pricing dynamics.
Global oil markets reflect ongoing uncertainties in geopolitics,
Chinese economic growth, OPEC+ production plans, and a change in
the domestic political climate, but the resulting commodity price
fluctuation has not led to a meaningful change in E&P activity
plans. Natural gas demand is supported by LNG export capacity
expansion and a large projected multi-year increase in North
American power consumption.
Power demand is rising at the fastest pace since the start of
the century, as accelerating demand from data centers is converging
with the reshoring of manufacturing activity and projected
increases from mining, electrification, and other commercial and
industrial applications. This pace of growth requires power
infrastructure solutions that can be adapted to the dynamic needs
of individual customers. Liberty is well positioned to meet this
demand with a modular solution that offers reliability, redundancy,
and the ability to accelerate deployment timelines and scale
alongside the growing load requirements for critical infrastructure
projects.
“Entering 2025, we are excited to lead the industry with
innovative and durable technologies that will drive our continued
success in the years ahead. We are investing to build truly
differential competitive advantages both in the completions arena
and in our new power business, to generate significant value for
our customers and our shareholders,” commented Mr. Gusek. “We
expect our investments today will lead to strong returns in the
coming years.”
“In the first quarter, we anticipate a modest sequential
increase in revenue and Adjusted EBITDA. For the completions
services business, we expect solid free cash flow generation as
capital expenditures moderate, even as pricing headwinds impact
profitability. As we embark on the next chapter of Liberty’s story,
we will also significantly grow our investment in power
infrastructure to take advantage of a generational opportunity in
power demand growth,” continued Mr. Gusek. “Liberty is a unique
technology growth company that is focused on providing both return
of and return on capital for shareholders.”
Share Repurchase Program
During the quarter ended December 31, 2024, Liberty repurchased
and retired 1,581,495 shares of Class A common stock at an average
of $17.88 per share, representing 1.0% of shares outstanding, for
approximately $28 million.
During the year ended December 31, 2024, Liberty repurchased and
retired 6,320,536 shares of Class A common stock at an average of
$20.14 per share, representing 3.8% of shares outstanding, for
approximately $127 million.
Liberty has cumulatively repurchased and retired 15.1% of shares
outstanding at program commencement on July 25, 2022. Total
remaining authorization for future common share repurchases is
approximately $294 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 December 31, 2024, Liberty paid a
quarterly cash dividend of $0.08 per share of Class A common stock,
or approximately $13 million in aggregate to shareholders. During
the year ended December 31, 2024, Liberty paid cash dividends of
$48 million in aggregate to shareholders.
On January 22, 2025, the Board declared a cash dividend of $0.08
per share of Class A common stock, to be paid on March 20, 2025 to
holders of record as of March 6, 2025.
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.
2024 Full Year Results
For the year ended December 31, 2024, revenues of $4.3 billion
decreased 9% from $4.7 billion for the year ended December 31,
2023.
Net income (after taxes) totaled $316 million for the year ended
December 31, 2024 compared to $556 million for the year ended
December 31, 2023.
Adjusted Net Income4 (after taxes) totaled $277 million for the
year ended December 31, 2024 compared to $558 million for the year
ended December 31, 2023.
Adjusted EBITDA1 of $922 million for the year ended December 31,
2024, decreased 24% from $1.2 billion for the year ended December
31, 2023. Please refer to the reconciliation of Adjusted EBITDA (a
non-GAAP measure) to net income (a GAAP measure) in this earnings
release.
Fully diluted earnings per share was $1.87 for the year ended
December 31, 2024 compared to $3.15 for the year ended December 31,
2023.
Adjusted Net Income per Diluted Share4 of $1.64 for the year
ended December 31, 2024 compared to $3.16 for the year ended
December 31, 2023.
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.
Fourth Quarter Results
For the fourth quarter of 2024, revenue was $944 million, a
decrease of 12% from $1.1 billion in the fourth quarter of 2023 and
a decrease of 17% from $1.1 billion in the third quarter of
2024.
Net income (after taxes) totaled $52 million for the fourth
quarter of 2024 compared to $92 million in the fourth quarter of
2023 and $74 million in the third quarter of 2024.
Adjusted Net Income4 (after taxes) totaled $17 million for the
fourth quarter of 2024 compared to $93 million in the fourth
quarter of 2023 and $76 million in the third quarter of 2024.
Adjusted EBITDA1 of $156 million for the fourth quarter of 2024
decreased 38% from $253 million in the fourth quarter of 2023 and
decreased 37% from $248 million in the third quarter of 2024.
Please refer to the reconciliation of Adjusted EBITDA (a non-GAAP
measure) to net income (a GAAP measure) in this earnings
release.
Fully diluted earnings per share was $0.31 for the fourth
quarter of 2024 compared to $0.54 for the fourth quarter of 2023
and $0.44 for the third quarter of 2024.
Adjusted Net Income per Diluted Share4 of $0.10 for the fourth
quarter of 2024 compared to $0.54 for the fourth quarter of 2023
and $0.45 for the third quarter of 2024.
Balance Sheet and Liquidity
As of December 31, 2024, Liberty had cash on hand of $20
million, a small decrease from third quarter levels, and total debt
of $191 million drawn on the secured asset-based revolving credit
facility (“ABL Facility”), a $68 million increase from third
quarter. Total liquidity, including availability under the credit
facility, was $135 million as of December 31, 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,
January 30, 2025. Presenting Liberty’s results will be Ron Gusek,
incoming chief executive officer, 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 http://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 8767950. The replay
will be available until February 6, 2025.
About Liberty
Liberty Energy Inc. (NYSE: LBRT) is a leading energy services
company. Liberty is one of the largest providers of completion
services and technologies to onshore oil, natural gas, and enhanced
geothermal energy producers in North America. Liberty also owns and
operates Liberty Power Innovations LLC, providing advanced
distributed power and energy storage solutions for the commercial
and industrial, data center, energy, and mining industries. Liberty
was founded in 2011 with a relentless focus on value creation
through a culture of innovation and excellence and the development
of next generation technology.
Liberty is headquartered in Denver, Colorado. For more
information, please visit www.libertyenergy.com and
www.libertypowerinnovations.com, or 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 Cash Return on Capital Invested (“CROCI”) is a non-U.S. GAAP
operational measure. Please see the supplemental financial
information in the table under “Calculation of Cash Return on
Capital Invested” at the end of this earnings release.
4 “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 and transaction and other costs, 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 December 31, 2024 to Average Capital
Employed. Average Capital Employed is the simple average of total
capital employed (both debt and equity) as of December 31, 2024 and
December 31, 2023. CROCI is defined as the ratio of Adjusted EBITDA
to the average of the beginning and ending period Gross Capital
Invested (total assets plus accumulated depreciation and depletion
less non-interest bearing current liabilities). ROCE and CROCI are
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
and CROCI are not measures 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, 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 Securities and Exchange Commission. As a
result of these factors, 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 Annual Report on Form 10-K for the year ended
December 31, 2023 as filed with the SEC on February 9, 2024 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
Year Ended
December 31,
September 30,
December 31,
December 31,
2024
2024
2023
2024
2023
Statement of Operations Data:
(amounts in thousands, except
for per share data)
Revenue
$
943,574
$
1,138,578
$
1,074,958
$
4,315,161
$
4,747,928
Costs of services, excluding depreciation,
depletion, and amortization shown separately
741,754
840,274
777,251
3,200,506
3,349,370
General and administrative
56,174
58,614
55,296
225,474
221,406
Transaction, severance, and other
costs
—
—
249
—
2,053
Depreciation, depletion, and
amortization
132,164
126,395
118,421
505,050
421,514
(Gain) loss on disposal of assets
(11,442
)
6,017
(13
)
(5,337
)
(6,994
)
Total operating expenses
918,650
1,031,300
951,204
3,925,693
3,987,349
Operating income
24,924
107,278
123,754
389,468
760,579
Loss (gain) on remeasurement of liability
under tax receivable agreements
3,210
—
(1,817
)
3,210
(1,817
)
Unrealized (gain) loss on investments
(44,753
)
2,727
—
(49,227
)
—
Interest expense, net
8,499
8,589
6,364
32,214
27,506
Net income before taxes
57,968
95,962
119,207
403,271
734,890
Income tax expense
6,075
22,158
26,824
87,261
178,482
Net income
51,893
73,804
92,383
316,010
556,408
Less: Net income attributable to
non-controlling interests
—
—
—
—
91
Net income attributable to Liberty Energy
Inc. stockholders
$
51,893
$
73,804
$
92,383
$
316,010
$
556,317
Net income attributable to Liberty Energy
Inc. stockholders per common share:
Basic
$
0.32
$
0.45
$
0.55
$
1.91
$
3.24
Diluted
$
0.31
$
0.44
$
0.54
$
1.87
$
3.15
Weighted average common shares
outstanding:
Basic
162,856
164,741
168,016
165,026
171,845
Diluted
167,163
168,595
172,661
169,398
176,360
Other Financial and Operational
Data
Capital expenditures (1)
$
188,148
$
162,835
$
133,610
$
627,057
$
576,389
Adjusted EBITDA (2)
$
155,740
$
247,811
$
252,507
$
921,593
$
1,213,068
(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)
December 31,
December 31,
2024
2023
Assets
Current assets:
Cash and cash equivalents
$
19,984
$
36,784
Accounts receivable and unbilled
revenue
539,856
587,470
Inventories
203,469
205,865
Prepaids and other current assets
85,214
124,135
Total current assets
848,523
954,254
Property and equipment, net
1,890,998
1,645,368
Operating and finance lease right-of-use
assets
356,435
274,959
Other assets
200,438
158,976
Total assets
$
3,296,394
$
3,033,557
Liabilities and Equity
Current liabilities:
Accounts payable and accrued
liabilities
$
571,305
$
572,029
Current portion of operating and finance
lease liabilities
95,218
67,395
Total current liabilities
666,523
639,424
Long-term debt, net of discount
190,500
140,000
Long-term operating and finance lease
liabilities
247,888
197,914
Deferred tax liability
137,728
102,340
Payable pursuant to tax receivable
agreements
74,886
112,471
Total liabilities
1,317,525
1,192,149
Stockholders’ equity:
Common stock
1,619
1,666
Additional paid in capital
977,484
1,093,498
Retained earnings
1,019,517
752,328
Accumulated other comprehensive loss
(19,751
)
(6,084
)
Total stockholders’ equity
1,978,869
1,841,408
Total liabilities and equity
$
3,296,394
$
3,033,557
Liberty Energy Inc.
Reconciliation and Calculation
of Non-GAAP Financial and Operational Measures
(unaudited, amounts in
thousands)
Reconciliation of Net Income to EBITDA
and Adjusted EBITDA
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
December 31,
2024
2024
2023
2024
2023
Net income
$
51,893
$
73,804
$
92,383
$
316,010
$
556,408
Depreciation, depletion, and
amortization
132,164
126,395
118,421
505,050
421,514
Interest expense, net
8,499
8,589
6,364
32,214
27,506
Income tax expense (benefit)
6,075
22,158
26,824
87,261
178,482
EBITDA
$
198,631
$
230,946
$
243,992
$
940,535
$
1,183,910
Stock-based compensation expense
10,094
8,121
9,288
32,412
33,026
Unrealized (gain) loss on investments,
net
(44,753
)
2,727
—
(49,227
)
—
Loss (gain) on disposal of assets
(11,442
)
6,017
(13
)
(5,337
)
(6,994
)
(Gain) loss on remeasurement of liability
under tax receivable agreements
3,210
—
(1,817
)
3,210
(1,817
)
Fleet start-up costs
—
—
—
—
2,082
Transaction, severance, and other
costs
—
—
249
—
2,053
Provision for credit losses
—
—
808
—
808
Adjusted EBITDA
$
155,740
$
247,811
$
252,507
$
921,593
$
1,213,068
Reconciliation of Net Income and Net
Income per Diluted Share to Adjusted Net Income and Adjusted Net
Income per Diluted Share
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
December 31,
2024
2024
2023
2024
2023
Net income
$
51,893
$
73,804
$
92,383
$
316,010
$
556,408
Adjustments:
Less: Unrealized (gain) loss on
investments, net
(44,753
)
2,727
—
(49,227
)
—
Add back: Transaction and other costs
—
—
249
—
2,053
Total adjustments, before taxes
(44,753
)
2,727
249
(49,227
)
2,053
Income tax expense (benefit) of
adjustments
(9,582
)
656
55
(10,633
)
499
Adjusted Net Income
$
16,722
$
75,875
$
92,577
$
277,416
$
557,962
Diluted weighted average common shares
outstanding
167,163
168,595
172,661
169,398
176,360
Net income per diluted share
$
0.31
$
0.44
$
0.54
$
1.87
$
3.15
Adjusted Net Income per Diluted Share
$
0.10
$
0.45
$
0.54
$
1.64
$
3.16
Calculation of Adjusted Pre-Tax Return
on Capital Employed
Twelve Months Ended
December 31,
2024
2023
Net income
$
316,010
Add back: Income tax expense
87,261
Add back: Loss on remeasurement of
liability under tax receivable agreements (1)
3,210
Less: Unrealized gain on investments,
net
(49,227
)
Adjusted Pre-tax net income
$
357,254
Capital Employed
Total debt, net of discount
$
190,500
$
140,000
Total equity
1,978,869
1,841,408
Total Capital Employed
$
2,169,369
$
1,981,408
Average Capital Employed (2)
$
2,075,389
Adjusted Pre-Tax Return on Capital
Employed (3)
17
%
(1)
Loss on remeasurement of the liability
under tax receivable agreements is a result of a change in the
estimated future effective tax rate and should be excluded in the
determination of pre-tax return on capital employed.
(2)
Average Capital Employed is the simple
average of Total Capital Employed as of December 31, 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 December 31, 2024 to Average Capital Employed.
Calculation of Cash Return on Capital
Invested
Twelve Months Ended
December 31,
2024
2023
Adjusted EBITDA (1)
$
921,593
Gross Capital Invested
Total assets
$
3,296,394
$
3,033,557
Add back: Accumulated depreciation,
depletion, and amortization
1,917,551
1,501,685
Less: Accounts payable and accrued
liabilities
571,305
572,029
Total Gross Capital Invested
$
4,642,640
$
3,963,213
Average Gross Capital Invested (2)
$
4,302,927
Cash Return on Capital Invested (3)
21
%
(1)
Adjusted EBITDA is a non-GAAP financial
measure. See the tables entitled “Reconciliation and Calculation of
Non-GAAP Financial and Operational Measures” above.
(2)
Average Gross Capital Invested is the
simple average of Gross Capital Invested as of December 31, 2024
and 2023.
(3)
Cash Return on Capital Invested is the
ratio of Adjusted EBITDA, as reconciled above, for the twelve
months ended December 31, 2024 to Average Gross Capital
Invested.
Reconciliation of Historical Net Income
(Loss) to EBITDA and Adjusted EBITDA
Year Ended December
31,
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
Net income (loss)
$
556,408
$
400,302
$
(187,004
)
$
(160,674
)
$
74,864
$
249,033
$
168,501
$
(60,560
)
$
(9,061
)
$
34,519
$
8,881
$
25,807
Depreciation, depletion, and
amortization
421,514
323,028
262,757
180,084
165,379
125,110
81,473
41,362
36,436
21,749
12,881
5,875
Interest expense, net
27,506
22,715
15,603
14,505
14,681
17,145
12,636
6,126
5,501
3,610
1,139
—
Income tax (benefit) expense
178,482
(793
)
9,216
(30,857
)
14,052
40,385
—
—
—
—
—
—
EBITDA
$
1,183,910
$
745,252
$
100,572
$
3,058
$
268,976
$
431,673
$
262,610
$
(13,072
)
$
32,876
$
59,878
$
22,901
$
31,682
Stock-based compensation expense
33,026
23,108
19,946
17,139
13,592
5,450
—
—
—
—
—
—
Fleet start-up costs
2,082
17,007
2,751
12,175
4,519
10,069
13,955
4,280
1,044
4,502
2,711
—
Transaction, severance, and other
costs
2,053
5,837
15,138
21,061
—
834
4,015
5,877
446
—
—
—
(Gain) loss on disposal of assets
(6,994
)
(4,603
)
779
(411
)
2,601
(4,342
)
148
(2,673
)
423
494
—
—
Provision for credit losses
808
—
745
4,877
1,053
—
—
—
6,424
—
—
—
Loss (gain) on remeasurement of liability
under tax receivable agreements
(1,817
)
76,191
(19,039
)
—
—
—
—
—
—
—
—
—
Gain on investments
—
(2,525
)
—
—
—
—
—
—
—
—
—
—
Adjusted EBITDA
$
1,213,068
$
860,267
$
120,892
$
57,899
$
290,741
$
443,684
$
280,728
$
(5,588
)
$
41,213
$
64,874
$
25,612
$
31,682
Calculation of Historical Cash Return
on Capital Invested
Year Ended December
31,
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
Adjusted EBITDA (1)
$
1,213,068
$
860,267
$
120,892
$
57,899
$
290,741
$
443,684
$
280,728
$
(5,588
)
$
41,213
$
64,874
$
25,612
31,682
Gross Capital Invested
Total assets
$
3,033,557
$
2,575,932
$
2,040,660
$
1,889,942
$
1,283,429
$
1,116,501
$
852,103
$
451,845
$
296,971
$
331,671
$
174,813
$
107,225
$
35,699
Add back: Accumulated depreciation,
depletion, and amortization
1,501,685
1,141,656
863,194
622,530
455,687
307,277
198,453
117,779
77,057
40,715
19,082
6,196
321
Less: Accounts payable and accrued
liabilities
572,029
609,790
528,468
311,721
226,567
219,351
220,494
118,949
52,688
99,005
26,600
13,275
1,718
Total Gross Capital Invested
$
3,963,213
$
3,107,798
$
2,375,386
$
2,200,751
$
1,512,549
$
1,204,427
$
830,062
$
450,675
$
321,340
$
273,381
$
167,295
$
100,146
$
34,302
Average Gross Capital Invested (2)
$
3,535,506
$
2,741,592
$
2,288,069
$
1,856,650
$
1,358,488
$
1,017,245
$
640,369
$
386,008
$
297,361
$
220,338
$
133,721
67,224
Cash Return on Capital Invested (3)
34
%
31
%
5
%
3
%
21
%
44
%
44
%
(1
)%
14
%
29
%
19
%
47
%
(1)
Adjusted EBITDA is a non-GAAP financial
measure. See the tables entitled “Reconciliation and Calculation of
Historical Non-GAAP Financial and Operational Measures” above.
(2)
Average Gross Capital Invested is the
simple average of Gross Capital Invested as of the end of the
current year and prior year.
(3)
Cash Return on Capital Invested is the
ratio of Adjusted EBITDA, as reconciled above, for the year then
ended to Average Gross Capital Invested.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250129912964/en/
Michael Stock Chief Financial Officer
Anjali Voria, CFA Director of Investor Relations
303-515-2851 IR@libertyenergy.com
Liberty Energy (NYSE:LBRT)
Historical Stock Chart
From Jan 2025 to Feb 2025
Liberty Energy (NYSE:LBRT)
Historical Stock Chart
From Feb 2024 to Feb 2025
