DENVER - Liberty Energy Inc. (NYSE: LBRT) announced its financial and operational results for the second quarter of 2024, with earnings per share (EPS) matching analyst expectations and revenue slightly missing the consensus estimate. The company reported an EPS of $0.61, precisely in line with the analyst estimate, and revenue of $1.16 billion, just shy of the anticipated $1.17 billion.
Liberty Energy's stock experienced a positive response, with shares climbing 2% following the earnings release. The market's movement reflects investor satisfaction with the company's ability to meet earnings expectations.
In comparison to the same quarter last year, the company's revenue saw a decrease of 3%, down from $1.2 billion in the second quarter of 2023. Despite softer industry drilling and completions activity, the company achieved an 8% sequential increase in revenue and a 12% sequential increase in adjusted EBITDA, which totaled $273 million.
Chris Wright, Chief Executive Officer of Liberty Energy, attributed the strong performance to the company's culture, customer partnerships, and innovative technologies. "We delivered 8% and 12% sequential increases in revenue and Adjusted EBITDA, respectively, while industry drilling and completions activity modestly softened over the same period," said Wright. He also highlighted the company's record average daily pumping efficiencies and safety performance as key factors underpinning the results.
Liberty Energy's focus on capital-efficient, low-emissions natural gas-fueled technologies has led to the highest diesel displacement in the company's history. The deployment of natural gas-fueled digiFleets and record gas substitution with dual fuel equipment has been a significant development. Over the past year, the company has increased dual fuel gas substitution levels by over 25%.
The company's strategic investments are expected to drive higher earnings and cash flow generation potential. Wright emphasized the company's commitment to returning capital to shareholders, noting that since the reinstatement of the capital returns program, Liberty Energy has distributed $458 million to shareholders through share repurchases and quarterly cash dividends.
Looking forward, the global oil and gas markets are expected to remain favorable, with the company anticipating similar financial performance in the second half of the year compared to the first half. Despite some softening in North American completions activity, Liberty Energy is positioned to continue investing in its portfolio, deliver healthy free cash flow, and return capital to shareholders.
Liberty Energy's results reflect its ability to navigate a modestly softer industry environment while maintaining a strong operational and financial performance. The company's emphasis on efficiency, innovation, and capital discipline continues to resonate with investors, as evidenced by the positive market reaction to the earnings announcement.
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