Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Class of Stock [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | LBRT | |
Entity Registrant Name | Liberty Oilfield Services Inc. | |
Entity Central Index Key | 0001694028 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Shares of Class A Common Stock | ||
Class of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding | 68,962,200 | |
Shares of Class B Common Stock | ||
Class of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding | 43,570,372 |
Condensed and Consolidated Bala
Condensed and Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 58,688 | $ 103,312 |
Accounts receivable—trade | 223,652 | 153,589 |
Accounts receivable—related party | 10,776 | 15,139 |
Unbilled revenue | 86,809 | 79,233 |
Inventories | 74,348 | 60,024 |
Prepaid and other current assets | 24,839 | 49,924 |
Total current assets | 479,112 | 461,221 |
Property and equipment, net | 640,768 | 627,053 |
Other assets | 28,538 | 28,227 |
Finance lease right-of-use assets | 55,315 | 0 |
Operating lease right-of-use assets | 65,123 | 0 |
Total assets | 1,268,856 | 1,116,501 |
Current liabilities: | ||
Accounts payable | 122,673 | 80,490 |
Accrued liabilities: | ||
Accrued vendor invoices | 68,125 | 67,771 |
Operational accruals | 21,195 | 36,414 |
Accrued salaries and benefits | 26,928 | 22,791 |
Accrued interest and other | 7,984 | 9,585 |
Accrued liabilities—related party | 0 | 2,300 |
Current portion of long-term debt, net of discount of $1,357 and $1,365, respectively | 392 | 385 |
Current portion of finance lease liabilities | 12,709 | 0 |
Current portion of operating lease liabilities | 14,403 | 0 |
Total current liabilities | 274,409 | 219,736 |
Long-term debt, net of discount of $3,488 and $3,826, respectively, less current portion | 106,041 | 106,139 |
Deferred tax liability | 27,020 | 32,994 |
Payable pursuant to tax receivable agreements | 20,074 | 16,818 |
Noncurrent portion of finance lease liabilities | 38,022 | 0 |
Noncurrent portion of operating lease liabilities | 47,808 | 0 |
Total liabilities | 513,374 | 375,687 |
Commitments & contingencies (Note 13) | ||
Stockholders’ equity: | ||
Preferred Stock, $0.01 par value, 10,000 shares authorized and none issued and outstanding | 0 | 0 |
Common Stock: | ||
Additional paid in capital | 314,967 | 312,659 |
Retained earnings | 133,877 | 119,274 |
Total stockholders’ equity | 449,967 | 433,069 |
Noncontrolling interest | 305,515 | 307,745 |
Total equity | 755,482 | 740,814 |
Total liabilities and equity | 1,268,856 | 1,116,501 |
Class A, $0.01 par value, 400,000,000 shares authorized and 68,743,704 issued and outstanding as of March 31, 2019 and 68,359,871 issued and outstanding as of December 31, 2018 | ||
Common Stock: | ||
Common stock, par value $0.01 | 687 | 684 |
Class B, $0.01 par value, 400,000,000 shares authorized and 43,570,372 issued and outstanding as of March 31, 2019 and 45,207,372 issued and outstanding as of December 31, 2018 | ||
Common Stock: | ||
Common stock, par value $0.01 | $ 436 | $ 452 |
Condensed Consolidated and Comb
Condensed Consolidated and Combined Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Jan. 17, 2018 |
Current portion of long-term debt, discount | $ 1,357 | $ 1,365 | |
Long-term debt, discount | $ 3,488 | $ 3,826 | |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Preferred stock, shares authorized (in shares) | 10,000 | 10,000 | |
Preferred stock, shares issued (in shares) | 0 | 0 | |
Preferred stock, shares outstanding (in shares) | 0 | 0 | |
Shares of Class A Common Stock | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 10 | |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 | |
Common stock, shares issued (in shares) | 68,743,704 | 68,359,871 | |
Common stock, shares outstanding (in shares) | 68,743,704 | 68,359,871 | 69,975,174 |
Shares of Class B Common Stock | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 | |
Common stock, shares issued (in shares) | 43,570,372 | 45,207,372 | 48,207,372 |
Common stock, shares outstanding (in shares) | 43,570,372 | 45,207,372 | 48,207,372 |
Condensed and Consolidated Stat
Condensed and Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue: | ||
Revenue | $ 528,831 | $ 491,098 |
Revenue—related parties | 6,317 | 4,062 |
Total revenue | 535,148 | 495,160 |
Operating costs and expenses: | ||
Cost of services (exclusive of depreciation and amortization shown separately below) | 429,299 | 376,827 |
General and administrative | 22,088 | 21,677 |
Depreciation and amortization | 38,387 | 28,016 |
Loss on disposal of assets | 1,223 | 80 |
Total operating costs and expenses | 490,997 | 426,600 |
Operating income | 44,151 | 68,560 |
Other expense: | ||
Interest expense | (4,182) | (6,494) |
Net income before income taxes | 39,969 | 62,066 |
Income tax expense | 6,060 | 8,079 |
Net income | 33,909 | 53,987 |
Less: Net income attributable to Predecessor, prior to Corporate Reorganization | 0 | 8,705 |
Less: Net income attributable to noncontrolling interests | 15,788 | 21,607 |
Net income attributable to Liberty Oilfield Services Inc. stockholders | $ 18,121 | $ 23,675 |
Net income attributable to Liberty Oilfield Services Inc. stockholders per common share: | ||
Basic (in dollars per share) | $ 0.27 | $ 0.34 |
Diluted (in dollars per share) | $ 0.26 | $ 0.34 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 67,427 | 68,924 |
Diluted (in shares) | 114,171 | 118,182 |
Condensed and Consolidated St_2
Condensed and Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Thousands | Total | Members' Equity | Additional Paid in Capital | Retained Earnings | Total Stockholders’ equity | Noncontrolling Interest | Shares of Class A Common Stock | Shares of Class A Common StockCommon Stock | Shares of Class B Common Stock | Shares of Class B Common StockCommon Stock |
Beginning Balance at Dec. 31, 2017 | $ 392,766 | |||||||||
Beginning balance (in shares) at Dec. 31, 2017 | 0 | 0 | ||||||||
Beginning balance at Dec. 31, 2017 | $ 392,766 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Return on redeemable common units | (149) | (149) | ||||||||
Net income prior to Corporate Reorganization | 8,705 | 8,705 | ||||||||
Ending Balance at Jan. 17, 2018 | 401,322 | |||||||||
Ending balance (in shares) at Jan. 17, 2018 | 69,975,174 | 0 | 48,207,372 | 0 | ||||||
Ending balance at Jan. 17, 2018 | 401,322 | 0 | 0 | 0 | 0 | $ 0 | $ 0 | |||
Beginning Balance at Dec. 31, 2017 | 392,766 | |||||||||
Beginning balance (in shares) at Dec. 31, 2017 | 0 | 0 | ||||||||
Beginning balance at Dec. 31, 2017 | 392,766 | 0 | 0 | 0 | 0 | $ 0 | $ 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Distribution paid and payable to noncontrolling interest unitholders | (5,353) | (5,353) | ||||||||
Restricted stock forfeited | 0 | 0 | ||||||||
Restricted stock forfeited (shares) | (4,000) | |||||||||
Exchange of Liberty LLC Units for Class A Common Stock and Class B Common Stock and extinguishment of Redeemable Common Units | 46,544 | (401,322) | 446,824 | 0 | 447,866 | 0 | $ 560 | $ 482 | ||
Exchange of Liberty LLC Units for Class A Common Stock and Class B Common Stock and extinguishment of Redeemable Common Units (shares) | 55,986,000 | 48,207,000 | ||||||||
Net deferred tax liability due to corporate reorganization | (28,620) | (28,620) | (28,620) | |||||||
Issuance of Class A Common Stock, net of underwriter discount and offering costs | 219,933 | 219,790 | 219,933 | $ 143 | ||||||
Issuance of Class A Common Stock, net of underwriter discount and offering costs (shares) | 14,340,000 | |||||||||
Redemption of Legacy Ownership, net of underwriter discount | (25,897) | (25,881) | (25,897) | $ (16) | ||||||
Redemption of Legacy Ownership, net of underwriting discount (shares) | (1,609,000) | |||||||||
Issuance of Restricted Stock (shares) | 1,258,000 | |||||||||
Issuance of Restricted Stock | 0 | (13) | 0 | $ 13 | ||||||
Liability due to tax receivable agreements | (2,291) | (2,291) | (2,291) | |||||||
Initial allocation of noncontrolling interest of Liberty LLC effective on the date of the IPO | 0 | (261,844) | (261,844) | 261,844 | ||||||
Net income prior to Corporate Reorganization | 23,675 | |||||||||
Net income | 45,282 | 23,675 | 23,675 | 21,607 | ||||||
Ending Balance at Mar. 31, 2018 | $ 0 | |||||||||
Ending balance (in shares) at Mar. 31, 2018 | 69,971,000 | 48,207,000 | ||||||||
Ending balance at Mar. 31, 2018 | 650,920 | 347,965 | 23,675 | 372,822 | 278,098 | $ 700 | $ 482 | |||
Beginning balance (in shares) at Dec. 31, 2018 | 68,359,871 | 68,360,000 | 45,207,372 | 45,207,000 | ||||||
Beginning balance at Dec. 31, 2018 | 740,814 | 312,659 | 119,274 | 433,069 | 307,745 | $ 684 | $ 452 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Distribution paid and payable to noncontrolling interest unitholders | (222) | (222) | ||||||||
Exchange of Class B Common Stock for Class A Common Stock (shares) | 1,637,000 | (1,637,000) | ||||||||
Exchanges of Class B Common Stock for Class A Common Stock | 0 | 11,413 | 11,413 | (11,413) | $ 16 | $ (16) | ||||
Effect of exchange on deferred tax asset, net of liability under tax receivable agreements | 896 | 896 | 896 | |||||||
$0.05/unit Distribution to noncontrolling unitholders | (2,179) | (2,179) | ||||||||
Regular cash dividends declared and distributions paid | (3,519) | (3,519) | (3,519) | 0 | ||||||
Restricted stock forfeited | 1 | (1) | 1 | $ 0 | ||||||
Restricted stock forfeited (shares) | 0 | |||||||||
Share repurchases | (17,098) | (13,017) | (13,030) | (4,068) | $ (13) | |||||
Share repurchase (shares) | (1,303,000) | |||||||||
Stock based compensation expense | 2,880 | 2,880 | 2,880 | |||||||
RSU Vesting (shares) | 50,000 | |||||||||
RSU Vesting | 0 | 136 | 136 | (136) | ||||||
Net income prior to Corporate Reorganization | 18,121 | |||||||||
Net income | 33,909 | 18,121 | 18,121 | 15,788 | ||||||
Ending balance (in shares) at Mar. 31, 2019 | 68,743,704 | 68,744,000 | 43,570,372 | 43,570,000 | ||||||
Ending balance at Mar. 31, 2019 | $ 755,482 | $ 314,967 | $ 133,877 | $ 449,967 | $ 305,515 | $ 687 | $ 436 |
Condensed and Consolidated St_3
Condensed and Consolidated Statements of Changes in Equity (Unaudited) (Parenthetical) | Mar. 31, 2019$ / shares |
Statement of Stockholders' Equity [Abstract] | |
Price per unit (in dollar per share) | $ 0.05 |
Condensed and Consolidated St_4
Condensed and Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 33,909 | $ 53,987 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 38,387 | 28,016 |
Loss on disposal of assets | 1,223 | 80 |
Interest expense on finance lease liability | 651 | 0 |
Amortization of debt issuance costs | 556 | 2,310 |
Non-cash lease expense | 419 | |
Share based compensation expense | 2,880 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (70,063) | (15,506) |
Accounts receivable—related party | 4,363 | (3,998) |
Unbilled revenue | (7,576) | (15,294) |
Unbilled revenue—related party | 0 | 59 |
Inventories | (14,324) | (4,548) |
Other assets | 20,477 | (20,927) |
Accounts payable and accrued liabilities | 44,683 | 6,523 |
Accounts payable and accrued liabilities—related party | (1,000) | 0 |
Payment of operating lease liability | (5,091) | 0 |
Net cash provided by operating activities | 49,494 | 30,702 |
Cash flows from investing activities: | ||
Purchases of property and equipment and construction in-progress | (66,333) | (54,985) |
Proceeds from sale of assets | 149 | 251 |
Net cash used in investing activities | (66,184) | (54,734) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock, net of underwriter discount | 0 | 230,174 |
Redemption of LLC Units from Legacy Owners | 0 | (25,897) |
Repayments of borrowings on term loan | (438) | (61,097) |
Repayments of borrowings on line-of-credit | 0 | (30,000) |
Contribution of assets from LOS Holdings | 0 | 2,115 |
Payments on capital lease obligations | (3,282) | 0 |
Class A common stock dividend | (3,415) | 0 |
Distributions paid to noncontrolling interest unitholders | (2,179) | (4,125) |
Share buyback | (18,398) | 0 |
Distributions to noncontrolling interest holders | 222 | 0 |
Equity offering costs | 0 | (5,389) |
Net cash (used in) provided by financing activities | (27,934) | 105,781 |
Net increase (decrease) in cash and cash equivalents | (44,624) | 81,749 |
Cash and cash equivalents—beginning of period | 103,312 | 16,321 |
Cash and cash equivalents—end of period | 58,688 | 98,070 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 0 | 5,934 |
Cash paid for interest | 3,267 | 4,441 |
Non-cash investing and financing activities: | ||
Capital expenditures included in accounts payable and accrued liabilities | $ 30,478 | $ 46,569 |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Organization Liberty Oilfield Services Inc. (the “Company”) was incorporated as a Delaware corporation on December 21, 2016, to become a holding corporation for Liberty Oilfield Services New HoldCo LLC (“Liberty LLC”) and its subsidiaries upon completion of a corporate reorganization (the “Corporate Reorganization”) and planned initial public offering of the Company (“IPO”). The Company has no material assets other than its ownership of units in Liberty LLC (“Liberty LLC Units”). Please refer to the Company ’ s 2018 Annual Report for additional information on the Corporate Reorganization and IPO that were completed on January 17, 2018. Prior to the Corporate Reorganization, Liberty Oilfield Services Holdings LLC (“Liberty Holdings”) wholly owned Liberty Oilfield Services LLC (“LOS”) and LOS Acquisition CO I LLC (“ACQI” and, together with LOS, the “Predecessor”), which includes the assets and liabilities of LOS Odessa RE Investments, LLC and LOS Cibolo RE Investments, LLC. Following the Corporate Reorganization, Liberty LLC wholly owns the Predecessor. Effective March 22, 2018, the assets of ACQI were contributed into LOS and ACQI was dissolved. The Company, together with its subsidiaries, is a multi-basin provider of hydraulic fracturing services, with a focus on deploying the latest technologies in the technically demanding oil and gas reservoirs in which it operates, principally in North Dakota, Colorado, Wyoming and Texas. Basis of Presentation The accompanying unaudited condensed consolidated financial statements were prepared using generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and the instructions to Form 10-Q and Regulation S-X. Accordingly, these financial statements do not include all information or notes required by generally accepted accounting principles for annual financial statements and should be read together with the annual financial statements included in the Company ’ s 2018 Annual Report. The accompanying unaudited condensed consolidated financial statements and related notes present the condensed consolidated financial position, results of operations, cash flows, and equity of the Company as of and for the three months ended March 31, 2019 and the financial position, results of operations, cash flows, and equity of the Company as of December 31, 2018 and for the three months ended March 31, 2018 . The interim data includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the interim period. The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results of operations expected for the entire fiscal year ended December 31, 2019 . All intercompany amounts have been eliminated in the presentation of the unaudited condensed consolidated financial statements of the Company. Comprehensive income is not reported due to the absence of items of other comprehensive income or loss during the periods presented. The condensed consolidated financial statements include financial data at historical cost as the contribution of assets is considered to be a reorganization of entities under common control. The condensed consolidated financial statements may not be indicative of the actual level of assets, liabilities and costs that would have been incurred by the Predecessor if it had operated as an independent, publicly-traded company during the periods prior to the IPO or of the costs expected to be incurred in the future. The condensed consolidated and combined financial statements for periods prior to January 17, 2018, reflect the historical results of the Predecessor. The condensed consolidated financial statements include the amounts of the Company and all majority owned subsidiaries where the Company has the ability to exercise control. The Company’s operations are organized into a single reportable segment, which consists of hydraulic fracturing services. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Recently Adopted Accounting Standards Leases On January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Accounting Standard Codification (“ASC”) Topic 842) , as amended by other ASUs issued since February 2016 (“ASU 2016-02” or “ASC Topic 842”), using the modified retrospective transition method applied at the effective date of the standard. By electing this optional transition method, information prior to January 1, 2019 has not been restated and continues to be reported under the accounting standards in effect for the period ( ASC Topic 840 ). The Company elected the package of practical expedients permitted under the transition guidance within the new standard, including the option to carry forward the historical lease classifications and assessment of initial direct costs, account for lease and non-lease components as a single lease, and to not include leases with an initial term of less than 12 months in the lease assets and liabilities. The adoption of ASC Topic 842 resulted in the recognition of finance lease right-of-use assets, operating lease right-of-use assets, and lease liabilities for operating leases. As of January 1, 2019, the adoption of the new standard resulted in the recognition of finance lease assets of $57.2 million , including $2.1 million and $2.0 million reclassified from prepaid and other current assets and other assets, respectively, and finance lease liabilities of $53.2 million . Additionally, the Company recorded operating lease assets of $64.0 million , including $1.9 million reclassified from prepaid and other current assets, and operating lease liabilities of $63.6 million , including $1.5 million reclassified from accrued interest and other liabilities as of January 1, 2019. There was no significant impact to the condensed consolidated statements of income, equity or cash flows. Refer to Note 5-Leases for additional disclosures required under ASC Topic 842. For leases entered into after January 1, 2019, the Company determines if an arrangement is a lease at inception and evaluates identified leases for operating or finance lease treatment. Operating or finance lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Lease terms may include options to renew, however, the Company typically cannot determine its intent to renew a lease with reasonable certainty at inception. Revenue Recognition In connection with the adoption of ASC Topic 842, the Company determined that certain of its service revenue contracts contain a lease component. The Company elected to adopt a practical expedient available to lessors, which allows the Company to combine the lease and non-lease components and account for the combined component is accordance with the accounting treatment for the predominant component. Therefore, the Company combines the lease and service component for certain of the Company’s service contracts and continues to account for the combined component under ASC Topic 606, Revenue from Contracts with Customers. Fleet Start-up Costs The Company incurs start-up costs to commission a new fleet or district. These costs include hiring and training of personnel, and acquisition of consumable parts and tools. Start-up costs are expensed as incurred, and are reflected in general and administrative expenses in the statement of operations. Start-up costs for the three months ended March 31, 2019 and 2018 were $1.1 million and $3.3 million , respectively, related to one and two new fleets deployed during each respective period. The total amount of start-up costs incurred for the commissioning of each new fleet depends primarily on the number and timing of hiring additional personnel to staff such fleets, and such costs may not be entirely incurred in the same period as the fleet is deployed. The terms and conditions of the Credit Facilities, defined herein, between the Company and its lenders provides for the add-back of costs or expenses incurred in connection with the acquisition, deployment and opening of any new hydraulic fracturing fleet or district in the computation of certain financial covenants (see Note 6). Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which is effective for fiscal years and interim periods within fiscal years beginning after December 15, 2019, with a modified-retrospective approach to be used for implementation. ASU 2016-13 changes the impairment model for most financial assets and certain other instruments. Specifically, this new guidance requires using a forward looking, expected loss model for trade and other receivables, held-to-maturity debt securities, loans and other instruments. This will replace the currently used model and may result in an earlier recognition of allowance for losses. The Company is currently evaluating the impact the adoption of this standard will have on its condensed consolidated financial statements. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following: March 31, December 31, ($ in thousands) 2019 2018 Proppants $ 21,377 $ 22,038 Chemicals 10,558 10,781 Maintenance parts 42,413 27,205 $ 74,348 $ 60,024 During the three months ended March 31, 2019 , the Company did not record any write-down to inventory carrying values. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consist of the following: Estimated March 31, December 31, ($ in thousands) 2019 2018 Land N/A $ 5,400 $ 5,400 Field services equipment 2-7 849,478 778,423 Vehicles 4-7 60,071 59,807 Buildings and facilities 5-30 28,057 27,795 Office equipment, furniture, and software 2-7 6,313 6,200 949,319 877,625 Less accumulated depreciation and amortization (340,332 ) (307,277 ) 608,987 570,348 Construction in-progress N/A 31,781 56,705 $ 640,768 $ 627,053 Depreciation expense for the three months ended March 31, 2019 and 2018 was $35.7 million and $28.0 million , respectively. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt consists of the following: March 31, December 31, ($ in thousands) 2019 2018 Term Loan outstanding $ 111,278 $ 111,715 Deferred financing costs and original issue discount (4,845 ) (5,191 ) Total debt, net of deferred financing costs and original issue discount $ 106,433 $ 106,524 Current portion of long-term debt, net of discount $ 392 $ 385 Long-term debt, net of discount and current portion 106,041 106,139 $ 106,433 $ 106,524 The Company has two credit agreements in effect for a revolving line of credit up to $250.0 million (the “ABL Facility”) and a $175.0 million term loan (the “Term Loan Facility”, and together with the ABL Facility the “Credit Facilities”). Following is a description of the ABL Facility and the Term Loan Facility. ABL Facility Under the terms of the ABL Facility, up to $250.0 million may be borrowed, subject to certain borrowing base limitations based on a percentage of eligible accounts receivable and inventory. As of March 31, 2019 , the borrowing base was calculated to be $233.5 million , and the Company had no borrowings outstanding, except for a letter of credit in the amount of $0.3 million , with $233.2 million of remaining availability. The unused commitment fee is 0.375% to 0.5% of average monthly unused commitment. The ABL Facility matures on the earlier of (i) September 19, 2022 and (ii) to the extent the debt under the Term Loan Facility remains outstanding, 90 days prior to the final maturity of the Term Loan Facility, which matures on September 19, 2022. Term Loan Facility The Term Loan Facility provides for a $175.0 million term loan, of which $111.3 million remained outstanding as of March 31, 2019 . The rate on borrowing was 10.1% as of March 31, 2019 . The Company is required to make quarterly principal payments of 1% per annum of the initial principal balance, commencing on December 31, 2017, with final payment due at maturity on September 19, 2022. The Credit Facilities include certain non-financial covenants, including but not limited to restrictions on incurring additional debt and certain distributions. Moreover, the ability of the Company to incur additional debt and to make distributions is dependent on maintaining a maximum leverage ratio. The Term Loan Facility requires mandatory prepayments upon certain dispositions of property or issuance of other indebtedness, as defined, and annually a percentage of excess cash flow ( 25% to 50% , depending on leverage ratio, of consolidated net income less capital expenditures and other permitted payments, commencing with the year ending December 31, 2018). The Credit Facilities are not subject to financial covenants unless liquidity, as defined in the respective credit agreements, drops below a specified level. Under the ABL Facility, the Company is required to maintain a minimum fixed charge coverage ratio, as defined in the credit agreement governing the ABL Facility, of 1.0 to 1.0 for each period if excess availability is less than 10% of the borrowing base or $12.5 million , whichever is greater. Under the Term Loan Facility, the Company is required to maintain a minimum fixed charge coverage ratio, as defined, of 1.2 to 1.0 for each trailing twelve-month period if the Company’s liquidity, as defined, is less than $25.0 million for at least five consecutive business days. The Company was in compliance with these covenants as of March 31, 2019 . Maturities of debt are as follows: ($ in thousands) Remainder of 2019 $ 1,313 2020 1,750 2021 1,750 2022 106,465 2023 — $ 111,278 |
Redeemable Common Units
Redeemable Common Units | 3 Months Ended |
Mar. 31, 2019 | |
Temporary Equity Disclosure [Abstract] | |
Redeemable Common Units | Redeemable Common Units During February 2017, ACQI received $39.8 million in cash from Liberty Holdings in exchange for 40,000,000 redeemable common units of ACQI which accrue a return of 8% per annum (the “Redeemable Common Units”). The Redeemable Common Units were redeemable at the option of the holder on the later of (A) the earlier of an initial public offering or March 23, 2020 and (B) the second business day after all principal and interest outstanding under the ABL Facility have been paid in full and commitments thereunder are terminated. The Redeemable Common Units were deemed extinguished and satisfied in full in connection with the Corporate Reorganization (see Note 1). |
Fair Value Measurements and Fin
Fair Value Measurements and Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Financial Instruments | Fair Value Measurements and Financial Instruments The fair values of the Company’s assets and liabilities represent the amounts that would be received to sell those assets or that would be paid to transfer those liabilities in an orderly transaction at the reporting date. These fair value measurements maximize the use of observable inputs. However, in situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects the Company’s own judgments about the assumptions that market participants would use in pricing the asset or liability. The Company discloses the fair values of its assets and liabilities according to the quality of valuation inputs under the following hierarchy: • Level 1 Inputs: Quoted prices (unadjusted) in an active market for identical assets or liabilities. • Level 2 Inputs: Inputs other than quoted prices that are directly or indirectly observable. • Level 3 Inputs: Unobservable inputs that are significant to the fair value of assets or liabilities. The classification of an asset or liability is based on the lowest level of input significant to its fair value. Those that are initially classified as Level 3 are subsequently reported as Level 2 when the fair value derived from unobservable inputs is inconsequential to the overall fair value, or if corroborating market data becomes available. Assets and liabilities that are initially reported as Level 2 are subsequently reported as Level 3 if corroborating market data is no longer available. Transfers occur at the end of the reporting period. There were no transfers into or out of Levels 1, 2 and 3 during the three months ended March 31, 2019 and 2018 . The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, long-term debt, and finance and operating lease obligations. These financial instruments do not require disclosure by level. The carrying values of all the Company’s financial instruments included in the accompanying condensed consolidated balance sheets approximated or equaled their fair values at March 31, 2019 and December 31, 2018 . • The carrying values of cash and cash equivalents, accounts receivable and accounts payable (including accrued liabilities) approximated fair value at March 31, 2019 and December 31, 2018 , due to their short-term nature. • The carrying value of amounts outstanding under long-term debt agreements with variable rates approximated fair value at March 31, 2019 and December 31, 2018 , as the effective interest rates approximated market rates. Nonfinancial assets The Company estimates fair value to perform impairment tests as required on long-lived assets. The inputs used to determine such fair value are primarily based upon internally developed cash flow models and would generally be classified within Level 3 in the event that such assets were required to be measured and recorded at fair value within the financial statements. There were no such measurements required as of March 31, 2019 and December 31, 2018 . Credit Risk The Company’s financial instruments exposed to concentrations of credit risk consist primarily of cash and cash equivalents, and trade receivables. The Company’s cash balances on deposit with financial institutions total $58.7 million and $103.3 million as of March 31, 2019 and December 31, 2018 , respectively, which exceeded FDIC insured limits. The Company regularly monitors these institutions’ financial condition. The majority of the Company’s customers have stated payment terms of 45 days or less. As of March 31, 2019 and December 31, 2018 , two customers accounted for 23% and 28% of total accounts receivable and unbilled revenue, respectively. The Company mitigates the associated credit risk by performing credit evaluations and monitoring the payment patterns of its customers. During the three months ended March 31, 2019 and 2018 , two customers accounted for 22% and 27% of total revenue, respectively. As of March 31, 2019 and December 31, 2018 , the Company had no provision for doubtful accounts. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Equity | Equity Preferred Stock As of March 31, 2019, the Company had 10,000 shares of preferred stock authorized, par value $0.01 , with none issued and outstanding. If issued, each class or series of preferred stock will cover the number of shares and will have the powers, preferences, rights, qualifications, limitations and restrictions determined by the Company's board of directors, which may include, among others, dividend rights, liquidation preferences, voting rights, conversion rights, preemptive rights and redemption rights. Except as provided by law or in a preferred stock designation, the holders of preferred stock will not be entitled to vote at or receive notice of any meeting of stockholders. Class A Common Stock The Company had a total of 68,743,704 shares of Class A Common Stock outstanding as of March 31, 2019 , which includes 555,713 shares of unvested restricted stock. Holders of Class A Common Stock are entitled to one vote per share on all matters to be voted upon by the stockholders and are entitled to ratably receive dividends when and if declared by the Company’s board of directors. Class B Common Stock The Company had a total of 43,570,372 shares of Class B Common Stock outstanding as of March 31, 2019 . Holders of the Class B Common Stock are entitled to one vote per share on all matters to be voted upon by stockholders. Holders of Class A Common Stock and Class B Common Stock vote together as a single class on all matters presented to the Company’s stockholders for their vote or approval, except with respect to amendment of certain provisions of the Company’s certificate of incorporation that would alter or change the powers, preferences or special rights of the Class B Common Stock so as to affect them adversely, which amendments must be by a majority of the votes entitled to be cast by the holders of the shares affected by the amendment, voting as a separate class, or as otherwise required by applicable law. Restricted Stock Awards Restricted stock awards are awards of Class A Common Stock that are subject to restrictions on transfer and to a risk of forfeitures if the award recipient is no longer an employee or director of the Company for any reason prior to the lapse of the restrictions. The following table summarizes the Company’s unvested restricted stock activity for the three months ended March 31, 2019 : Number of Shares Grant Date Fair Value per Share (1) Outstanding at December 31, 2018 634,653 $ — Vested (78,940 ) — Forfeited — — Outstanding at March 31, 2019 555,713 $ — (1) Prior to the IPO and Corporate Reorganization, Liberty Holdings issued Class B units of Liberty Holdings (“Legacy Units”). The Legacy Units were determined to have a de minimis grant-date fair value based on their assigned benchmark values. In connection with the Corporate Reorganization, the unvested Legacy Units were exchanged for 1,258,514 shares of restricted stock with the same terms and requisite vesting conditions. The shares of restricted stock retain the grant date fair value of the Legacy Units. Restricted Stock Units Restricted stock units (“RSUs”) granted pursuant to the Long Term Incentive Plan (“LTIP”), if they vest, will be settled in shares of the Company’s Class A Common Stock. RSUs were granted with vesting terms up to five years. Changes in non-vested RSUs outstanding under the LTIP during the three months ended March 31, 2019 were as follows: Number of Units Weighted Average Grant Date Fair Value per Unit Non-vested as of December 31, 2018 1,193,683 $ 19.24 Granted 511,354 14.84 Vested (49,836 ) 19.94 Forfeited (9,255 ) 20.07 Outstanding at March 31, 2019 1,645,946 $ 17.85 Performance Restricted Stock Units Performance restricted stock units (“PSUs”) granted pursuant to the LTIP, if they vest, will be settled in shares of the Company’s Class A Common Stock. PSUs were granted with a three year cliff vesting schedule, subject to a performance target compared to an index of competitors ’ results over the three year period from January 1, 2019 through December 31, 2021. The Company records compensation expense based on the Company’s best estimate of the number of PSUs that will vest at the end of the performance period. If such performance targets are not met, or are not expected to be met, no compensation expense is recognized and any recognized compensation expense is reversed. Changes in non-vested PSUs outstanding under the LTIP during the three months ended March 31, 2019 were as follows: Number of Units Weighted Average Grant Date Fair Value per Unit Non-vested as of December 31, 2018 — $ — Granted 356,908 14.93 Vested — — Forfeited — — Outstanding at March 31, 2019 356,908 $ 14.93 Stock-based compensation is included in cost of services and general and administrative expenses in the Company’s condensed consolidated statements of income. The Company recognized stock based compensation expense of $2.9 million for the three months ended March 31, 2019 . The Company recognized no stock based compensation expense in the three months ended March 31, 2018 . There was approximately $27.3 million of unrecognized compensation expense relating to outstanding RSUs and PSUs as of March 31, 2019 . The unrecognized compensation expense will be recognized on a straight-line basis over the weighted average remaining vesting period of 2.4 years. Dividends The Company paid quarterly cash dividends of $0.05 per share of Class A Common Stock on March 20, 2019 to stockholders of record as of March 6, 2019. Liberty LLC paid a distribution of $5.6 million , or $0.05 per Liberty LLC Unit, to all holders of Liberty LLC Units as of March 6, 2019, $3.4 million of which was paid to the Company. The Company used the proceeds of the distribution to pay the dividend to all holders of shares of Class A Common Stock as of March 6, 2019, which totaled $3.4 million . Additionally, the Company accrued $0.1 million of dividends payable related to restricted shares and RSUs to be paid upon vesting. Dividends related to forfeited restricted shares and RSUs will be forfeited. Share Repurchase Program On September 10, 2018 the Company’s board of directors authorized a share repurchase plan to repurchase up to $100.0 million of the Company’s Class A Common Stock through September 30, 2019. On January 22, 2019, the Company’s board of directors authorized an additional $100.0 million under the share repurchase plan through January 31, 2021. During the three months ended March 31, 2019, Liberty LLC purchased and retired 1,303,003 Liberty LLC Units from the Company for $18.4 million , and the Company repurchased and retired 1,303,003 shares of Class A Common Stock for $18.4 million , or $14.66 average price per share. The repurchase in January completed the share repurchase amount authorized on September 10, 2018. Of the total amount of Class A Common Stock repurchased, 117,647 shares were repurchased or returned from R/C Energy IV Direct Partnership, L.P., R/C IV Liberty Holdings, L.P. and Riverstone/Carlyle Energy Partners IV, L.P. (“R/C” and collectively, the “Riverstone Sellers”). For further details of this related party transaction see Note 12. As of March 31, 2019 , $98.7 million remains authorized for future repurchases of Class A Common Stock under the share repurchase program. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company has operating and finance leases primarily for vehicles, equipment, railcars, office space, and facilities. The terms and conditions for these leases vary by the type of underlying asset. Certain leases include variable lease payments for items such as property taxes, insurance, maintenance, and other operating expenses associated with leased assets. Payments that vary based on an index or rate are included in the measurement of lease assets and liabilities at the rate as of the commencement date. All other variable lease payments are excluded from the measurement of lease assets and liabilities, and are recognized in the period in which the obligation for those payments is incurred. The components of lease expense for the three months ended March 31, 2019 were as follows: March 31, ($ in thousands) 2019 Finance lease cost: Amortization of right-of-use assets $ 2,366 Interest on lease liabilities 651 Operating lease cost 5,211 Variable lease cost 1,004 Total lease cost $ 9,232 Rent expense recorded for the three months ended March 31, 2018 was $7.9 million . Supplemental cash flow and other information related to leases for the quarter ended March 31, 2019 were as follows: March 31, ($ in thousands) 2019 Cash paid for amounts included in measurement of liabilities: Operating leases $ 7,798 Finance leases $ 3,282 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases $ 69,430 Finance leases $ 57,421 Lease terms and discount rates as of March 31, 2019 were as follows: March 31, 2019 Weighted-average remaining lease term: Operating leases 6.6 years Finance leases 1.9 years Weighted-average discount rate: Operating leases 5.4 % Finance leases 5.2 % Future minimum lease commitments as of March 31, 2019 are as follows: ($ in thousands) Finance Operating Remainder of 2019 $ 9,879 $ 12,341 2020 25,478 18,250 2021 19,085 13,487 2022 101 7,029 2023 — 4,199 Thereafter — 19,588 Total lease payments 54,543 74,894 Less imputed interest (3,812 ) (12,683 ) Total $ 50,731 $ 62,211 The Company’s vehicle leases typically include a residual value guarantee. For the Company’s vehicle leases classified as operating leases, the total residual value guaranteed as of March 31, 2019 is $3.0 million ; the payment is not probable and therefore has not been included in the measurement of the lease liability and right-of-use asset. For vehicle leases that are classified as financing leases, the Company includes the residual value guarantee in the financing lease liability. At December 31, 2018, future minimum lease payments under operating leases were as follows: ($ in thousands) Years Ending December 31, 2019 $ 42,717 2020 48,685 2021 32,390 2022 6,093 2023 4,303 Thereafter 19,742 $ 153,930 |
Leases | Leases The Company has operating and finance leases primarily for vehicles, equipment, railcars, office space, and facilities. The terms and conditions for these leases vary by the type of underlying asset. Certain leases include variable lease payments for items such as property taxes, insurance, maintenance, and other operating expenses associated with leased assets. Payments that vary based on an index or rate are included in the measurement of lease assets and liabilities at the rate as of the commencement date. All other variable lease payments are excluded from the measurement of lease assets and liabilities, and are recognized in the period in which the obligation for those payments is incurred. The components of lease expense for the three months ended March 31, 2019 were as follows: March 31, ($ in thousands) 2019 Finance lease cost: Amortization of right-of-use assets $ 2,366 Interest on lease liabilities 651 Operating lease cost 5,211 Variable lease cost 1,004 Total lease cost $ 9,232 Rent expense recorded for the three months ended March 31, 2018 was $7.9 million . Supplemental cash flow and other information related to leases for the quarter ended March 31, 2019 were as follows: March 31, ($ in thousands) 2019 Cash paid for amounts included in measurement of liabilities: Operating leases $ 7,798 Finance leases $ 3,282 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases $ 69,430 Finance leases $ 57,421 Lease terms and discount rates as of March 31, 2019 were as follows: March 31, 2019 Weighted-average remaining lease term: Operating leases 6.6 years Finance leases 1.9 years Weighted-average discount rate: Operating leases 5.4 % Finance leases 5.2 % Future minimum lease commitments as of March 31, 2019 are as follows: ($ in thousands) Finance Operating Remainder of 2019 $ 9,879 $ 12,341 2020 25,478 18,250 2021 19,085 13,487 2022 101 7,029 2023 — 4,199 Thereafter — 19,588 Total lease payments 54,543 74,894 Less imputed interest (3,812 ) (12,683 ) Total $ 50,731 $ 62,211 The Company’s vehicle leases typically include a residual value guarantee. For the Company’s vehicle leases classified as operating leases, the total residual value guaranteed as of March 31, 2019 is $3.0 million ; the payment is not probable and therefore has not been included in the measurement of the lease liability and right-of-use asset. For vehicle leases that are classified as financing leases, the Company includes the residual value guarantee in the financing lease liability. At December 31, 2018, future minimum lease payments under operating leases were as follows: ($ in thousands) Years Ending December 31, 2019 $ 42,717 2020 48,685 2021 32,390 2022 6,093 2023 4,303 Thereafter 19,742 $ 153,930 |
Net Income per Share
Net Income per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income per Share | Net Income per Share Basic net income per share measures the performance of an entity over the reporting period. Diluted net income per share measures the performance of an entity over the reporting period while giving effect to all potentially dilutive common shares that were outstanding during the period. The Company uses the “if-converted” method to determine the potential dilutive effect of its Class B Common Stock and the treasury stock method to determine the potential dilutive effect of outstanding restricted stock and restricted stock units. The following table reflects the allocation of net income to common stockholders and net income per share computations for the periods indicated based on a weighted average number of common stock outstanding for periods subsequent to the Corporate Reorganization on January 17, 2018: Three Months Ended (In thousands) March 31, 2019 March 31, 2018 Basic Net Income Per Share Numerator: Net income attributable to Liberty Oilfield Services Inc. stockholders $ 18,121 $ 23,675 Denominator: Basic weighted average shares outstanding 67,427 68,924 Basic net income per share attributable to Liberty Oilfield Services Inc. stockholders $ 0.27 $ 0.34 Diluted Net Income Per Share Numerator: Net income attributable to Liberty Oilfield Services Inc. stockholders $ 18,121 $ 23,675 Effect of exchange of the shares of Class B Common Stock for shares of Class A Common Stock 11,831 16,311 Diluted net income attributable to Liberty Oilfield Services Inc. stockholders $ 29,952 $ 39,986 Denominator: Basic weighted average shares outstanding 67,427 68,924 Effect of dilutive securities: Restricted stock 601 1,051 Restricted stock units 1,581 — Class B Common Stock 44,562 48,207 Diluted weighted average shares outstanding 114,171 118,182 Diluted net income per share attributable to Liberty Oilfield Services Inc. stockholders $ 0.26 $ 0.34 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company is a corporation and is subject to U.S. federal, state and local income tax on its share of Liberty LLC’s taxable income. The effective combined U.S. federal and state income tax rate applicable to the Company for the three months ended March 31, 2019 was 15.2% , compared to 13.0% for the period ended March 31, 2018 commencing on January 17, 2018, the date of the Corporate Reorganization. The Company’s effective tax rate is significantly less than the statutory federal tax rate of 21.0% primarily because no taxes are payable by the Company for the noncontrolling interest’s share of Liberty LLC’s pass through results for federal, state and local income tax reporting. The Company’s effective tax rate is lower for the period ended March 31, 2018 , the shortened taxable period as the Company was a pass-through entity prior to the IPO. The Company recognized income tax expense of $6.1 million during the three months ended March 31, 2019 , compared to $8.1 million during the shortened taxable period ended March 31, 2018 . Tax Receivable Agreements In connection with the IPO, on January 17, 2018, the Company entered into two Tax Receivable Agreements (the “TRAs”) with R/C Energy IV Direct Partnership, L.P. and the then existing owners that continued to own Liberty LLC Units (each such person and any permitted transferee, a “TRA Holder” and together, the “TRA Holders”). The TRAs generally provide for the payment by the Company of 85% of the net cash savings, if any, in U.S. federal, state, and local income tax and franchise tax (computed using simplifying assumptions to address the impact of state and local taxes) that the Company actually realizes (or is deemed to realize in certain circumstances) in periods after the IPO as a result, as applicable to each TRA Holder, of (i) certain increases in tax basis that occur as a result of the Company’s acquisition (or deemed acquisition for U.S. federal income tax purposes) of all or a portion of such TRA Holder’s Liberty LLC Units in connection with the IPO or pursuant to the exercise of redemption or call rights, (ii) any net operating losses available to the Company as a result of the Corporate Reorganization, and (iii) imputed interest deemed to be paid by the Company as a result of, and additional tax basis arising from, any payments the Company makes under the TRAs. During the three months ended March 31, 2019 , exchanges of Liberty Liberty LLC Units and shares of Class B Common Stock resulted in an increase of $5.1 million in amounts payable under the TRAs, and a net increase of $6.0 million in deferred tax assets, all of which were recorded through equity. At March 31, 2019 , the Company's liability under the TRA was $21.9 million , a portion of which is presented as a component of current liabilities of $1.8 million and a portion of which is presented as a component of long term liabilities of $20.1 million , and the related deferred tax assets totaled $25.8 million . |
Defined Contribution Plan
Defined Contribution Plan | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Defined Contribution Plan | Defined Contribution Plan The Company sponsors a 401(k) defined contribution retirement plan covering eligible employees. The Company makes matching contributions at a rate of $1.00 for each $1.00 of employee contribution, subject to a cap of 6% of the employee’s salary. Contributions made by the Company were $4.1 million and $3.3 million for the three months ended March 31, 2019 and 2018 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments & Contingencies Purchase Commitments (tons and gallons are not in thousands) The Company enters into purchase and supply agreements to secure supply and pricing of proppants and chemicals. As of March 31, 2019 and December 31, 2018 , the agreements commit the Company to purchase 10,343,000 and 11,266,000 tons, respectively, of proppant through December 31, 2021. Amounts above also include commitments to pay for transport fees on minimum amounts of proppants or railcars. Certain proppant supply agreements contain a clause whereby in the event that the Company fails to purchase minimum volumes, as defined in the agreement, during a specific time period, a shortfall fee may apply. There were no shortfalls as of March 31, 2019 . As of March 31, 2019 and December 31, 2018 , the Company had commitments to purchase 16,495,000 and 18,852,000 gallons of chemicals through December 31, 2020. Future proppant, including rail car transport, and chemical commitments are as follows: ($ in thousands) Remainder of 2019 $ 275,731 2020 245,002 2021 93,377 2022 3,433 2023 — $ 617,543 Litigation The Company is subject to legal proceedings, claims and litigation arising in the ordinary course of business. While the outcome of these matters is currently undeterminable, the Company does not expect that the ultimate costs to resolve these matters will have a material adverse effect on its condensed consolidated financial position or results of operations. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions During January 2019, the Company repurchased 117,647 shares of Class A Common Stock from the Riverstone Sellers, at a weighted average purchase price of $17.00 per share, pursuant to the share repurchase program (see Note 8 - Equity - Share Repurchase Program ). In connection with the Corporate Reorganization, the Company engaged in transactions with affiliates including entering into the TRAs with affiliates (see Note 10). Also in conjunction with the Corporate Reorganization, Liberty Holdings contributed $2.1 million of assets to Liberty LLC and Redeemable Common Units in the amount of $42.6 million were settled. In September 2011, Liberty Resources LLC, an oil and gas exploration and production company, and its successor entity (collectively, the “Affiliate”) and LOS, companies with common ownership and management, entered into a services agreement (the “Services Agreement”) whereby the Affiliate was to provide certain administrative support functions to LOS and a master service agreement whereby LOS provides hydraulic fracturing services to the Affiliate at market service rates. The amounts incurred under the Services Agreement by LOS during the three months ended March 31, 2018 , were $0.2 million , and there was no payable outstanding as of March 31, 2019 and December 31, 2018 as the Services Agreement was terminated during June 2018. The amounts of the Company’s revenue related to hydraulic fracturing services provided to the Affiliate for the three months ended March 31, 2019 and 2018 was $6.3 million and $3.9 million , respectively. As of March 31, 2019 and December 31, 2018 , $10.8 million and $15.1 million , respectively, of the Company’s accounts receivable was with the Affiliate. The Company had no unbilled revenue with the Affiliate as of March 31, 2019 and December 31, 2018 . Liberty Holdings entered into an advisory agreement dated December 30, 2011 with R/C, in which R/C agreed to provide certain administrative advisory services to Liberty Holdings. The Company incurred no service fees during the three months ended March 31, 2019 and 2018 , and fees accrued as of March 31, 2019 and December 31, 2018 were $0 and $2.3 million , respectively. The advisory services agreement was terminated pursuant to an agreement effective as of January 11, 2018. On January 11, 2018, Liberty Holdings, R/C and other parties entered into a Master Reorganization Agreement that, among other things, crystallized the “waterfall” provisions of Article VI of the Third Amended and Restated Limited Liability Agreement of Liberty Holdings, dated October 11, 2016 (the “Holdings LLC Agreement”) in connection with the IPO. As part of this crystallization, R/C and affiliated entities (collectively, the “R/C Affiliates”) received shares of Class A Common Stock, including 117,647 shares of Class A Common Stock (such 117,647 shares referred to as the “Issued Shares”) to compensate R/C Affiliates for certain accrued preferred returns but which would not have been issued had the $2.0 million in fees owed under the advisory agreement been paid in cash. Had this fee been paid in cash on or prior to January 11, 2018, R/C and Liberty Holdings acknowledge that R/C Affiliates would not have received the Issued Shares in the crystallization pursuant to the provisions of the Holdings LLC Agreement. Subsequently, during the fourth quarter of 2018, R/C asserted that certain provisions of the termination of services agreement provided for R/C to receive $2.0 million in cash as payment of those accrued fees. To resolve this matter, the Company agreed to pay R/C Affiliates $2.0 million in cash in exchange for the purchase, at the IPO price, or return of the Issued Shares and $0.3 million for interest and the settlement of the matter. Accordingly, $2.3 million was recorded as accrued liabilities - related party in the accompanying condensed consolidated balance sheet as of December 31, 2018 and subsequently paid in January 2019. The purchased and returned shares of Class A Common Stock were canceled and retired, and the Company does not expect to incur future expense related to the advisory agreement or termination thereof. During 2016, Liberty Holdings entered into a future commitment to invest and become a noncontrolling minority member in Proppant Express Investments, LLC, the owner of Proppant Express Solutions, LLC (“PropX”), a provider of proppant logistics equipment. LOS was party to a services agreement (the “PropX Services Agreement”) whereby LOS was to provide certain administrative support functions to PropX, and LOS is to purchase and lease proppant logistics equipment from PropX. The PropX Services Agreement was terminated on May 29, 2018, however the Company continues to purchase and lease equipment from PropX. For the three months ended March 31, 2019 and 2018 , the Company purchased proppant logistics equipment of $0 and $2.1 million , and leased proppant logistics equipment for $2.4 million and $1.6 million , respectively. During the three months ended March 31, 2018 , in exchange for a 5% discount, the Company made a prepayment to PropX for rented equipment in the amount of $5.4 million , all of which was recognized in the year ended December 31, 2018 . The Company made an additional $4.2 million prepayment, in exchange for a 5% discount, during the three months ended March 31, 2019 , reflected as a reduction to the operating lease liability as of March 31, 2019 . Receivables from PropX as of March 31, 2019 and December 31, 2018 were $0 . Payables to PropX as of March 31, 2019 and December 31, 2018 were $0.2 million and $0.2 million , respectively. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On April 23, 2019, the Company's board of directors approved a quarterly dividend of $0.05 per share of Class A Common Stock, and a distribution of $0.05 per Liberty LLC Unit, to be paid on June 20, 2019 to holders of record as of June 6, 2019. The Company will use the proceeds from the Liberty LLC distribution to pay the dividend. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Leases | Leases On January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Accounting Standard Codification (“ASC”) Topic 842) , as amended by other ASUs issued since February 2016 (“ASU 2016-02” or “ASC Topic 842”), using the modified retrospective transition method applied at the effective date of the standard. By electing this optional transition method, information prior to January 1, 2019 has not been restated and continues to be reported under the accounting standards in effect for the period ( ASC Topic 840 ). The Company elected the package of practical expedients permitted under the transition guidance within the new standard, including the option to carry forward the historical lease classifications and assessment of initial direct costs, account for lease and non-lease components as a single lease, and to not include leases with an initial term of less than 12 months in the lease assets and liabilities. The adoption of ASC Topic 842 resulted in the recognition of finance lease right-of-use assets, operating lease right-of-use assets, and lease liabilities for operating leases. As of January 1, 2019, the adoption of the new standard resulted in the recognition of finance lease assets of $57.2 million , including $2.1 million and $2.0 million reclassified from prepaid and other current assets and other assets, respectively, and finance lease liabilities of $53.2 million . Additionally, the Company recorded operating lease assets of $64.0 million , including $1.9 million reclassified from prepaid and other current assets, and operating lease liabilities of $63.6 million , including $1.5 million reclassified from accrued interest and other liabilities as of January 1, 2019. There was no significant impact to the condensed consolidated statements of income, equity or cash flows. Refer to Note 5-Leases for additional disclosures required under ASC Topic 842. For leases entered into after January 1, 2019, the Company determines if an arrangement is a lease at inception and evaluates identified leases for operating or finance lease treatment. Operating or finance lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements were prepared using generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and the instructions to Form 10-Q and Regulation S-X. Accordingly, these financial statements do not include all information or notes required by generally accepted accounting principles for annual financial statements and should be read together with the annual financial statements included in the Company ’ s 2018 Annual Report. The accompanying unaudited condensed consolidated financial statements and related notes present the condensed consolidated financial position, results of operations, cash flows, and equity of the Company as of and for the three months ended March 31, 2019 and the financial position, results of operations, cash flows, and equity of the Company as of December 31, 2018 and for the three months ended March 31, 2018 . The interim data includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the interim period. The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results of operations expected for the entire fiscal year ended December 31, 2019 . |
Revenue Recognition | Revenue Recognition In connection with the adoption of ASC Topic 842, the Company determined that certain of its service revenue contracts contain a lease component. The Company elected to adopt a practical expedient available to lessors, which allows the Company to combine the lease and non-lease components and account for the combined component is accordance with the accounting treatment for the predominant component. Therefore, the Company combines the lease and service component for certain of the Company’s service contracts and continues to account for the combined component under ASC Topic 606 |
Fleet Start-up Costs | Fleet Start-up Costs The Company incurs start-up costs to commission a new fleet or district. These costs include hiring and training of personnel, and acquisition of consumable parts and tools. Start-up costs are expensed as incurred, and are reflected in general and administrative expenses in the statement of operations. Start-up costs for the three months ended March 31, 2019 and 2018 were $1.1 million and $3.3 million , respectively, related to one and two new fleets deployed during each respective period. The total amount of start-up costs incurred for the commissioning of each new fleet depends primarily on the number and timing of hiring additional personnel to staff such fleets, and such costs may not be entirely incurred in the same period as the fleet is deployed. The terms and conditions of the Credit Facilities, defined herein, between the Company and its lenders provides for the add-back of costs or expenses incurred in connection with the acquisition, deployment and opening of any new hydraulic fracturing fleet or district in the computation of certain financial covenants |
Recently Adopted and Issued Accounting Standards | Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which is effective for fiscal years and interim periods within fiscal years beginning after December 15, 2019, with a modified-retrospective approach to be used for implementation. ASU 2016-13 changes the impairment model for most financial assets and certain other instruments. Specifically, this new guidance requires using a forward looking, expected loss model for trade and other receivables, held-to-maturity debt securities, loans and other instruments. This will replace the currently used model and may result in an earlier recognition of allowance for losses. The Company is currently evaluating the impact the adoption of this standard will have on its condensed consolidated financial statements. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: March 31, December 31, ($ in thousands) 2019 2018 Proppants $ 21,377 $ 22,038 Chemicals 10,558 10,781 Maintenance parts 42,413 27,205 $ 74,348 $ 60,024 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consist of the following: Estimated March 31, December 31, ($ in thousands) 2019 2018 Land N/A $ 5,400 $ 5,400 Field services equipment 2-7 849,478 778,423 Vehicles 4-7 60,071 59,807 Buildings and facilities 5-30 28,057 27,795 Office equipment, furniture, and software 2-7 6,313 6,200 949,319 877,625 Less accumulated depreciation and amortization (340,332 ) (307,277 ) 608,987 570,348 Construction in-progress N/A 31,781 56,705 $ 640,768 $ 627,053 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consists of the following: March 31, December 31, ($ in thousands) 2019 2018 Term Loan outstanding $ 111,278 $ 111,715 Deferred financing costs and original issue discount (4,845 ) (5,191 ) Total debt, net of deferred financing costs and original issue discount $ 106,433 $ 106,524 Current portion of long-term debt, net of discount $ 392 $ 385 Long-term debt, net of discount and current portion 106,041 106,139 $ 106,433 $ 106,524 |
Schedule of Maturities of Long-term Debt | Maturities of debt are as follows: ($ in thousands) Remainder of 2019 $ 1,313 2020 1,750 2021 1,750 2022 106,465 2023 — $ 111,278 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Nonvested Restricted Stock Shares Activity | The following table summarizes the Company’s unvested restricted stock activity for the three months ended March 31, 2019 : Number of Shares Grant Date Fair Value per Share (1) Outstanding at December 31, 2018 634,653 $ — Vested (78,940 ) — Forfeited — — Outstanding at March 31, 2019 555,713 $ — (1) Prior to the IPO and Corporate Reorganization, Liberty Holdings issued Class B units of Liberty Holdings (“Legacy Units”). The Legacy Units were determined to have a de minimis grant-date fair value based on their assigned benchmark values. In connection with the Corporate Reorganization, the unvested Legacy Units were exchanged for 1,258,514 shares of restricted stock with the same terms and requisite vesting conditions. The shares of restricted stock retain the grant date fair value of the Legacy Units. |
Schedule of Nonvested Restricted Stock Units Activity | Changes in non-vested RSUs outstanding under the LTIP during the three months ended March 31, 2019 were as follows: Number of Units Weighted Average Grant Date Fair Value per Unit Non-vested as of December 31, 2018 1,193,683 $ 19.24 Granted 511,354 14.84 Vested (49,836 ) 19.94 Forfeited (9,255 ) 20.07 Outstanding at March 31, 2019 1,645,946 $ 17.85 Changes in non-vested PSUs outstanding under the LTIP during the three months ended March 31, 2019 were as follows: Number of Units Weighted Average Grant Date Fair Value per Unit Non-vested as of December 31, 2018 — $ — Granted 356,908 14.93 Vested — — Forfeited — — Outstanding at March 31, 2019 356,908 $ 14.93 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lease, Cost | The components of lease expense for the three months ended March 31, 2019 were as follows: March 31, ($ in thousands) 2019 Finance lease cost: Amortization of right-of-use assets $ 2,366 Interest on lease liabilities 651 Operating lease cost 5,211 Variable lease cost 1,004 Total lease cost $ 9,232 Supplemental cash flow and other information related to leases for the quarter ended March 31, 2019 were as follows: March 31, ($ in thousands) 2019 Cash paid for amounts included in measurement of liabilities: Operating leases $ 7,798 Finance leases $ 3,282 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases $ 69,430 Finance leases $ 57,421 |
Lease Term And Discount Rate, Lessee | Lease terms and discount rates as of March 31, 2019 were as follows: March 31, 2019 Weighted-average remaining lease term: Operating leases 6.6 years Finance leases 1.9 years Weighted-average discount rate: Operating leases 5.4 % Finance leases 5.2 % |
Lessee, Operating Lease, Liability, Maturity | March 31, 2019 are as follows: ($ in thousands) Finance Operating Remainder of 2019 $ 9,879 $ 12,341 2020 25,478 18,250 2021 19,085 13,487 2022 101 7,029 2023 — 4,199 Thereafter — 19,588 Total lease payments 54,543 74,894 Less imputed interest (3,812 ) (12,683 ) Total $ 50,731 $ 62,211 |
Schedule of Future Minimum Rental Payments for Operating Leases | At December 31, 2018, future minimum lease payments under operating leases were as follows: ($ in thousands) Years Ending December 31, 2019 $ 42,717 2020 48,685 2021 32,390 2022 6,093 2023 4,303 Thereafter 19,742 $ 153,930 |
Finance Lease, Liability, Maturity | ($ in thousands) Finance Operating Remainder of 2019 $ 9,879 $ 12,341 2020 25,478 18,250 2021 19,085 13,487 2022 101 7,029 2023 — 4,199 Thereafter — 19,588 Total lease payments 54,543 74,894 Less imputed interest (3,812 ) (12,683 ) Total $ 50,731 $ 62,211 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table reflects the allocation of net income to common stockholders and net income per share computations for the periods indicated based on a weighted average number of common stock outstanding for periods subsequent to the Corporate Reorganization on January 17, 2018: Three Months Ended (In thousands) March 31, 2019 March 31, 2018 Basic Net Income Per Share Numerator: Net income attributable to Liberty Oilfield Services Inc. stockholders $ 18,121 $ 23,675 Denominator: Basic weighted average shares outstanding 67,427 68,924 Basic net income per share attributable to Liberty Oilfield Services Inc. stockholders $ 0.27 $ 0.34 Diluted Net Income Per Share Numerator: Net income attributable to Liberty Oilfield Services Inc. stockholders $ 18,121 $ 23,675 Effect of exchange of the shares of Class B Common Stock for shares of Class A Common Stock 11,831 16,311 Diluted net income attributable to Liberty Oilfield Services Inc. stockholders $ 29,952 $ 39,986 Denominator: Basic weighted average shares outstanding 67,427 68,924 Effect of dilutive securities: Restricted stock 601 1,051 Restricted stock units 1,581 — Class B Common Stock 44,562 48,207 Diluted weighted average shares outstanding 114,171 118,182 Diluted net income per share attributable to Liberty Oilfield Services Inc. stockholders $ 0.26 $ 0.34 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments | Future proppant, including rail car transport, and chemical commitments are as follows: ($ in thousands) Remainder of 2019 $ 275,731 2020 245,002 2021 93,377 2022 3,433 2023 — $ 617,543 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019USD ($)fleet | Mar. 31, 2018USD ($)fleet | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | |
Deferred Revenue Arrangement [Line Items] | ||||
Finance lease right-of-use assets | $ 55,315 | $ 0 | ||
Finance lease, liability | 50,731 | |||
Operating lease right-of-use assets | 65,123 | $ 0 | ||
Operating lease, liability | $ 62,211 | |||
Customer payment terms | 45 days | |||
Start-up costs | $ 1,100 | $ 3,300 | ||
Number of fleets established | fleet | 1 | 2 | ||
Accounting Standards Update 2016-02 | ||||
Deferred Revenue Arrangement [Line Items] | ||||
Finance lease right-of-use assets | $ 57,200 | |||
Finance lease, liability | 53,200 | |||
Operating lease right-of-use assets | 64,000 | |||
Operating lease, liability | 63,600 | |||
Prepaid Expenses and Other Current Assets | Accounting Standards Update 2016-02 | ||||
Deferred Revenue Arrangement [Line Items] | ||||
Cumulative effect of new accounting principle in period of adoption | 1,900 | |||
Prepaid Expenses and Other Current Assets | Operating Lease | Accounting Standards Update 2016-02 | ||||
Deferred Revenue Arrangement [Line Items] | ||||
Cumulative effect of new accounting principle in period of adoption | 2,100 | |||
Other Assets | Operating Lease | Accounting Standards Update 2016-02 | ||||
Deferred Revenue Arrangement [Line Items] | ||||
Cumulative effect of new accounting principle in period of adoption | 2,000 | |||
Accrued Interest and Other Liabilities | Accounting Standards Update 2016-02 | ||||
Deferred Revenue Arrangement [Line Items] | ||||
Cumulative effect of new accounting principle in period of adoption | $ 1,500 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory [Line Items] | ||
Inventories | $ 74,348 | $ 60,024 |
Proppants | ||
Inventory [Line Items] | ||
Inventories | 21,377 | 22,038 |
Chemicals | ||
Inventory [Line Items] | ||
Inventories | 10,558 | 10,781 |
Maintenance parts | ||
Inventory [Line Items] | ||
Inventories | $ 42,413 | $ 27,205 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 949,319 | $ 877,625 | |
Less accumulated depreciation and amortization | (340,332) | (307,277) | |
Property and equipment, before construction in-progress, net | 608,987 | 570,348 | |
Construction in-progress | 31,781 | 56,705 | |
Property and equipment, net | 640,768 | 627,053 | |
Depreciation | 35,700 | $ 28,000 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 5,400 | 5,400 | |
Field services equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 849,478 | 778,423 | |
Field services equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 2 years | ||
Field services equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 7 years | ||
Vehicles | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 60,071 | 59,807 | |
Vehicles | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 4 years | ||
Vehicles | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 7 years | ||
Buildings and facilities | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 28,057 | 27,795 | |
Buildings and facilities | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 5 years | ||
Buildings and facilities | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 30 years | ||
Office equipment, furniture, and software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 6,313 | $ 6,200 | |
Office equipment, furniture, and software | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 2 years | ||
Office equipment, furniture, and software | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 7 years |
Debt - Summary of Debt (Details
Debt - Summary of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 111,278 | |
Deferred financing costs and original issue discount | (4,845) | $ (5,191) |
Total debt, net of deferred financing costs and original issue discount | 106,433 | 106,524 |
Current portion of long-term debt, net of discount | 392 | 385 |
Long-term debt, net of discount and current portion | 106,041 | 106,139 |
Term Loan Outstanding | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 111,278 | $ 111,715 |
Revolving Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 0 |
Debt - Credit Facilities (Detai
Debt - Credit Facilities (Details) | 3 Months Ended | |
Mar. 31, 2019USD ($) | Sep. 19, 2017USD ($)agreement | |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 111,278,000 | |
Revolving Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 0 | |
Term Loan | Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 175,000,000 | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Number of credit agreements | agreement | 2 | |
Revolving Credit Facility | ABL Credit Facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 250,000,000 | |
Revolving Credit Facility | Revolving Line of Credit | ABL Credit Facility | ||
Debt Instrument [Line Items] | ||
Current borrowing capacity | $ 233,500,000 | |
Line of credit, maturity, number of days prior maturity of another facility | 90 days | |
Revolving Credit Facility | Revolving Line of Credit | Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 175,000,000 | |
Letter of Credit | ABL Credit Facility | ||
Debt Instrument [Line Items] | ||
Letters of credit outstanding, amount | $ 300,000 | |
Remaining borrowing capacity | $ 233,200,000 | |
Minimum | Revolving Credit Facility | Revolving Line of Credit | ABL Credit Facility | ||
Debt Instrument [Line Items] | ||
Unused capacity, commitment fee percentage | 0.375% | |
Maximum | Revolving Credit Facility | Revolving Line of Credit | ABL Credit Facility | ||
Debt Instrument [Line Items] | ||
Unused capacity, commitment fee percentage | 0.50% |
Debt - Term Loan Facility (Deta
Debt - Term Loan Facility (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Sep. 19, 2017 | |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 111,278,000 | |
Revolving Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 0 | |
Revolving Credit Facility | ABL Credit Facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 250,000,000 | |
Revolving Credit Facility | Revolving Line of Credit | Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 175,000,000 | |
Weighted average interest rate | 10.10% | |
Line of credit facility, outstanding balance, quarterly principal payments, percent | 1.00% | |
Line of credit facility, covenant compliance, fixed charge coverage ratio | 1.2 | |
Line of credit facility, covenant compliance, liquidity threshold for five consecutive business days | $ 25,000,000 | |
Revolving Credit Facility | Revolving Line of Credit | Term Loan Facility | Minimum | ||
Debt Instrument [Line Items] | ||
Line of credit facility, covenant compliance, annual percentage of excess cash flow | 25.00% | |
Revolving Credit Facility | Revolving Line of Credit | Term Loan Facility | Maximum | ||
Debt Instrument [Line Items] | ||
Line of credit facility, covenant compliance, annual percentage of excess cash flow | 50.00% | |
Revolving Credit Facility | Revolving Line of Credit | ABL Credit Facility | ||
Debt Instrument [Line Items] | ||
Line of credit facility, covenant compliance, fixed charge coverage ratio | 1 | |
Line of credit facility, covenant compliance, excess availability threshold, percent of borrowing base | 10.00% | |
Line of credit facility, covenant compliance, excess availability threshold, amount | $ 12,500,000 |
Debt - Maturities of Debt (Deta
Debt - Maturities of Debt (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
2020 | $ 1,313 |
2021 | 1,750 |
2022 | 1,750 |
2023 | 106,465 |
2024 | 0 |
Long-term debt, gross | $ 111,278 |
Redeemable Common Units (Detail
Redeemable Common Units (Details) - ACQI - Liberty LLC - Redeemable Common Units $ in Millions | 1 Months Ended |
Feb. 28, 2017USD ($)shares | |
Temporary Equity [Line Items] | |
Proceeds from issuance of redeemable common units | $ | $ 39.8 |
Temporary equity, shares issued (in shares) | shares | 40,000,000 |
Temporary equity, shares, interest rate | 8.00% |
Fair Value Measurements and F_2
Fair Value Measurements and Financial Instruments (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash balances on deposit with financial institutions | $ 58,688,000 | $ 98,070,000 | $ 103,312,000 | $ 16,321,000 |
Customer payment terms | 45 days | |||
Allowance for uncollectible accounts | $ 0 | $ 0 | ||
Customer Concentration Risk | Largest Two Customers | Accounts Receivable | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Concentration risk, percentage | 23.00% | |||
Customer Concentration Risk | Largest Two Customers | Total Revenue | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Concentration risk, percentage | 27.00% | |||
Customer Concentration Risk | Largest Customer | Accounts Receivable | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Concentration risk, percentage | 28.00% | |||
Customer Concentration Risk | Largest Customer | Total Revenue | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Concentration risk, percentage | 22.00% |
Equity - Additional Information
Equity - Additional Information (Details) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 | Jan. 17, 2018 |
Subsidiary or Equity Method Investee [Line Items] | |||
Preferred stock, shares authorized (in shares) | 10,000 | 10,000 | |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Shares of Class A Common Stock | |||
Subsidiary or Equity Method Investee [Line Items] | |||
Common stock, shares outstanding (in shares) | 68,743,704 | 68,359,871 | 69,975,174 |
Shares of Class A Common Stock | Restricted Stock | |||
Subsidiary or Equity Method Investee [Line Items] | |||
Common stock, shares outstanding (in shares) | 555,713 | ||
Shares of Class B Common Stock | |||
Subsidiary or Equity Method Investee [Line Items] | |||
Common stock, shares outstanding (in shares) | 43,570,372 | 45,207,372 | 48,207,372 |
Equity - Restricted Stock Award
Equity - Restricted Stock Awards and Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 17, 2018 | Mar. 31, 2019 |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding at beginning of period (in shares) | 1,193,683 | |
Granted (in shares) | 511,354 | |
Vested (in shares) | (49,836) | |
Forfeited (in shares) | (9,255) | |
Outstanding at end of period (in shares) | 1,645,946 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Outstanding at beginning of period (in dollars per share) | $ 19.24 | |
Granted (in dollars per share) | 14.84 | |
Vested (in dollars per share) | 19.94 | |
Forfeited (in dollars per share) | 20.07 | |
Outstanding at end of period (in dollars per share) | $ 17.85 | |
Vesting period of awards | 5 years | |
Share-based compensation expense | $ 2.9 | |
Unamortized compensation expense | $ 27.3 | |
Weighted average remaining vesting period | 2 years 4 months 24 days | |
Performance Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding at beginning of period (in shares) | 0 | |
Granted (in shares) | 356,908 | |
Vested (in shares) | 0 | |
Forfeited (in shares) | 0 | |
Outstanding at end of period (in shares) | 356,908 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Outstanding at beginning of period (in dollars per share) | $ 0 | |
Vested (in dollars per share) | 0 | |
Forfeited (in dollars per share) | 0 | |
Outstanding at end of period (in dollars per share) | $ 14.93 | |
Shares of Class A Common Stock | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding at beginning of period (in shares) | 634,653 | |
Vested (in shares) | (78,940) | |
Forfeited (in shares) | 0 | |
Outstanding at end of period (in shares) | 555,713 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Forfeited (in dollars per share) | $ 0 | |
Shares issued (in shares) | 1,258,514 | |
Shares of Class A Common Stock | Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Outstanding at beginning of period (in dollars per share) | 0 | |
Vested (in dollars per share) | 0 | |
Outstanding at end of period (in dollars per share) | $ 0 |
Equity - Dividends and Repurcha
Equity - Dividends and Repurchase of Common Stock (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 20, 2019 | Jan. 31, 2019 | Mar. 31, 2019 | Jan. 22, 2019 |
Shares of Class A Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock repurchase program, authorized amount | $ 100 | |||
Shares of Class A Common Stock | Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividends, common stock, cash | $ 3.4 | |||
Common stock, dividends, per share, declared (in dollars per share) | $ 0.05 | |||
Treasury stock, shares, retired (in shares) | 1,303,003 | |||
Treasury stock, retired, amount | $ 18.4 | |||
Remaining authorized repurchase amount | $ 98.7 | |||
Liberty LLC | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock, dividends, per share, declared (in dollars per share) | $ 0.05 | |||
Liberty LLC | LLC Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividends, common stock, cash | $ 5.6 | |||
Treasury stock, shares, retired (in shares) | 1,303,003 | |||
Treasury stock, retired, amount | $ 18.4 | |||
Restricted Stock and Restricted Stock Units (RSUs) | Shares of Class A Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividends, common stock, cash | $ 0.1 | |||
Riverstone | Affiliated Entity | Shares of Class A Common Stock | Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Treasury stock, shares, retired (in shares) | 117,647 | |||
Treasury stock acquired, average cost per share (in dollars per share) | $ 17 | $ 14.66 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Leases [Abstract] | ||
Amortization of right-of-use assets | $ 2,366 | |
Interest on lease liabilities | 651 | $ 0 |
Operating lease cost | 5,211 | |
Variable lease cost | 1,004 | |
Total lease cost | 9,232 | |
Rent expense | $ 7,900 | |
Operating lease, residual value of leased asset | $ 3,000 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flows (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Cash paid for amounts included in measurement of liabilities: | |
Operating leases | $ 7,798 |
Finance leases | 3,282 |
Right-of-use assets obtained in exchange for new lease liabilities: | |
Operating leases | 69,430 |
Finance leases | $ 57,421 |
Leases - Lease Term And Discoun
Leases - Lease Term And Discount Rates (Details) | Mar. 31, 2019 |
Leases [Abstract] | |
Operating lease, weighted average remaining lease term | 6 years 7 months 6 days |
Finance lease, weighted average remaining lease term | 1 year 10 months 24 days |
Operating lease, weighted average discount rate | 5.40% |
Finance lease, weighted average discount rate | 5.20% |
Leases - Finance and Operating
Leases - Finance and Operating Leases Maturity (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Finance | |
Remainder of 2019 | $ 9,879 |
2020 | 25,478 |
2021 | 19,085 |
2022 | 101 |
2023 | 0 |
Thereafter | 0 |
Total lease payments | 54,543 |
Less imputed interest | (3,812) |
Total | 50,731 |
Operating | |
Remainder of 2019 | 12,341 |
2020 | 18,250 |
2021 | 13,487 |
2022 | 7,029 |
2023 | 4,199 |
Thereafter | 19,588 |
Total lease payments | 74,894 |
Less imputed interest | (12,683) |
Total | $ 62,211 |
- Operating Lease Future Minimu
- Operating Lease Future Minimum Payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 42,717 |
2020 | 48,685 |
2021 | 32,390 |
2022 | 6,093 |
2023 | 4,303 |
Thereafter | 19,742 |
Total lease payments | $ 153,930 |
Net Income per Share - Earnings
Net Income per Share - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | |
Jan. 17, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator: | |||
Net income attributable to Liberty Oilfield Services Inc. Stockholders | $ 8,705 | $ 18,121 | $ 23,675 |
Denominator, Basic [Abstract] | |||
Basic weighted average shares outstanding (in shares) | 67,427 | 68,924 | |
Basic net income per share attributable to Liberty Oilfield Services Inc. Stockholders (in dollars per share) | $ 0.27 | $ 0.34 | |
Numerator, Diluted [Abstract] | |||
Net income attributable to Liberty Oilfield Services Inc. Stockholders | $ 8,705 | $ 18,121 | $ 23,675 |
Effect of exchange of the shares of Class B Common Stock for shares of Class A Common Stock | 11,831 | 16,311 | |
Net Income (Loss) Available to Common Stockholders, Diluted | $ 29,952 | $ 39,986 | |
Denominator, Diluted [Abstract] | |||
Basic weighted average shares outstanding (in shares) | 67,427 | 68,924 | |
Effect of dilutive securities: | |||
Restricted stock (in shares) | 601 | 1,051 | |
Restricted stock units (in shares) | 1,581 | 0 | |
Class B Common Stock (in shares) | 44,562 | 48,207 | |
Diluted weighted average shares outstanding (in shares) | 114,171 | 118,182 | |
Diluted net income per share attributable to Liberty Oilfield Services Inc. Stockholders (in dollars per share) | $ 0.26 | $ 0.34 |
Income Taxes (Details)
Income Taxes (Details) $ in Thousands | Jan. 17, 2018agreement | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) |
Operating Loss Carryforwards [Line Items] | ||||
Effective combined income tax rate | 15.20% | 13.00% | ||
Income tax expense | $ 6,060 | $ 8,079 | ||
Number of tax receivable agreements | agreement | 2 | |||
Deferred tax asset | 25,800 | |||
Taxes payable | 21,900 | |||
Taxes payable, current | (1,800) | |||
Taxes payable, noncurrent | 20,074 | $ 16,818 | ||
Shares of Class B Common Stock | Tax Receivable Agreement | Common Stock | ||||
Operating Loss Carryforwards [Line Items] | ||||
Deferred tax asset | 6,000 | |||
Taxes payable | $ 5,100 |
Defined Contribution Plan (Deta
Defined Contribution Plan (Details) - 401(k) Defined Contribution Retirement Plan - USD ($) | 1 Months Ended | 3 Months Ended | |
Oct. 31, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution per one dollar of employee contribution | $ 1 | ||
Maximum annual contribution per employee, percent | 6.00% | ||
Contributions made by the employer | $ 4,100,000 | $ 3,300,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Jan. 17, 2018 | Jan. 11, 2018 | Jan. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | |||||||
Accrued liabilities—related party | $ 0 | $ 2,300,000 | |||||
Revenue from related parties | 6,317,000 | $ 4,062,000 | |||||
Prepaid expense and other current assets | 24,839,000 | 49,924,000 | |||||
Cost of goods sold | 429,299,000 | 376,827,000 | |||||
Affiliated Entity | Equity transaction, reorganization | |||||||
Related Party Transaction [Line Items] | |||||||
Asset contribution, reorganization | $ 2,100,000 | ||||||
Consideration received | $ 42,600,000 | ||||||
Liberty Resources LLC | Affiliated Entity | Hydraulic Fracturing Services | |||||||
Related Party Transaction [Line Items] | |||||||
Expenses from transactions with related party | 202,000 | 0 | |||||
Due to related parties | 0 | 0 | |||||
Revenue from related parties | 6,300,000 | 3,900,000 | |||||
Accounts receivable, related parties | 10,800,000 | 15,100,000 | |||||
Unbilled receivables, related parties | 0 | 0 | |||||
Riverstone | Affiliated Entity | Service Fees | |||||||
Related Party Transaction [Line Items] | |||||||
Accrued liabilities—related party | 0 | 2,300,000 | $ 2,000,000 | ||||
Interest And Settlement Expense | 300,000 | ||||||
Proppant Express Investments, LLC | Affiliated Entity | Administrative Support and Purchase and Lease Proppant Logistics Equipment | |||||||
Related Party Transaction [Line Items] | |||||||
Due to related parties | 200,000 | $ 200,000 | |||||
Accounts receivable, related parties | 0 | ||||||
Purchases from related party | 0 | 2,100,000 | |||||
Leases from related party | $ 2,400,000 | $ 1,600,000 | |||||
Discount, percentage | 5.00% | 5.00% | |||||
Prepaid Expense | $ 4,200,000 | $ 5,400,000 | |||||
Shares of Class A Common Stock | Common Stock | |||||||
Related Party Transaction [Line Items] | |||||||
Treasury stock, shares, retired (in shares) | 1,303,003 | ||||||
Shares of Class A Common Stock | Common Stock | Riverstone | Affiliated Entity | |||||||
Related Party Transaction [Line Items] | |||||||
Treasury stock, shares, retired (in shares) | 117,647 | ||||||
Treasury stock acquired, average cost per share (in dollars per share) | $ 17 | $ 14.66 | |||||
IPO | Shares of Class A Common Stock | Common Stock | Riverstone | Affiliated Entity | Service Fees | |||||||
Related Party Transaction [Line Items] | |||||||
Number of shares issued (shares) | 117,647 |
Commitments and Contingencies -
Commitments and Contingencies - Proppant, Chemical and Rail Car Commitments (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2020 | $ 275,731 |
2021 | 245,002 |
2022 | 93,377 |
2023 | 3,433 |
2024 | 0 |
Other commitment | $ 617,543 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) T in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019Tgal | Mar. 31, 2018USD ($)T | Dec. 31, 2018gal | |
Long-term Purchase Commitment [Line Items] | |||
Rent expense | $ | $ 7.9 | ||
Proppant | |||
Long-term Purchase Commitment [Line Items] | |||
Minimum mass required (in tons) | T | 10,343 | 11,266 | |
Chemicals | |||
Long-term Purchase Commitment [Line Items] | |||
Minimum volume required | gal | 16,495,000 | 18,852,000 |
Subsequent Event (Details)
Subsequent Event (Details) - $ / shares | Apr. 23, 2019 | Mar. 31, 2019 |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Common stock, dividends, per share, declared (in dollars per share) | $ 0.05 | |
Distribution made to Limited Liability Company (LLC) member, distributions declared, per unit (in dollars per unit) | $ 0.05 | |
Liberty LLC | ||
Subsequent Event [Line Items] | ||
Common stock, dividends, per share, declared (in dollars per share) | $ 0.05 |