Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 15, 2024 | |
Class of Stock [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-38081 | |
Entity Registrant Name | Liberty Energy Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 81-4891595 | |
Entity Address, Address Line One | 950 17th Street | |
Entity Address, Address Line Two | Suite 2400 | |
Entity Address, City or Town | Denver | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80202 | |
City Area Code | 303 | |
Local Phone Number | 515-2800 | |
Title of 12(b) Security | Class A Common Stock, par value $0.01 | |
Trading Symbol | LBRT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001694028 | |
Current Fiscal Year End Date | --12-31 | |
Shares of Class A Common Stock | ||
Class of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding | 166,651,693 | |
Shares of Class B Common Stock | ||
Class of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding | 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 23,788 | $ 36,784 |
Unbilled revenue (including amounts from related parties of $51 and $13,379, respectively) | 219,389 | 188,940 |
Inventories | 210,060 | 205,865 |
Prepaid and other current assets | 94,952 | 124,135 |
Total current assets | 978,008 | 954,254 |
Property and equipment, net | 1,694,232 | 1,645,368 |
Finance lease right-of-use assets | 195,955 | 182,319 |
Operating lease right-of-use assets | 88,485 | 92,640 |
Other assets (including amounts from related parties of $0 and $14,785, respectively) | 140,939 | 158,976 |
Total assets | 3,097,619 | 3,033,557 |
Current liabilities: | ||
Accounts payable | 315,998 | 293,733 |
Accrued liabilities | 234,895 | 261,066 |
Income taxes payable | 0 | 12,060 |
Current portion of payable pursuant to tax receivable agreements | 37,444 | 5,170 |
Current portion of finance lease liabilities | 46,146 | 39,867 |
Current portion of operating lease liabilities | 27,882 | 27,528 |
Total current liabilities | 662,365 | 639,424 |
Long-term debt | 166,000 | 140,000 |
Deferred tax liability | 102,340 | 102,340 |
Payable pursuant to tax receivable agreements | 75,027 | 112,471 |
Noncurrent portion of finance lease liabilities | 147,578 | 133,654 |
Noncurrent portion of operating lease liabilities | 59,825 | 64,260 |
Total liabilities | 1,213,135 | 1,192,149 |
Commitments & contingencies (Note 14) | ||
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 | 1,070,383 | 1,093,498 |
Retained earnings | 822,256 | 752,328 |
Accumulated other comprehensive loss | (9,807) | (6,084) |
Total stockholders’ equity | 1,884,484 | 1,841,408 |
Total liabilities and equity | 3,097,619 | 3,033,557 |
Nonrelated Party | ||
Current assets: | ||
Accounts receivable, after allowance for credit loss, current | 429,819 | 381,185 |
Related Party | ||
Current assets: | ||
Accounts receivable, after allowance for credit loss, current | 0 | 17,345 |
Unbilled revenue (including amounts from related parties of $51 and $13,379, respectively) | 51 | 13,379 |
Class A, $0.01 par value, 400,000,000 shares authorized and 165,201,928 issued and outstanding as of March 31, 2024 and 166,610,199 issued and outstanding as of December 31, 2023 | ||
Common Stock: | ||
Common stock, par value $0.01 | 1,652 | 1,666 |
Class B, $0.01 par value, 400,000,000 shares authorized and none issued and outstanding | ||
Common Stock: | ||
Common stock, par value $0.01 | $ 0 | $ 0 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Unbilled receivables, current | $ 219,389 | $ 188,940 |
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 |
Nonrelated Party | ||
Allowance for bad debts | $ 939 | $ 939 |
Related Party | ||
Unbilled receivables, current | 51 | 13,379 |
Other assets | $ 0 | $ 14,785 |
Shares of Class A 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) | 165,201,928 | 166,610,199 |
Common stock, shares outstanding (in shares) | 165,201,928 | 166,610,199 |
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) | 0 | |
Common stock, shares outstanding (in shares) | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue: | ||
Total revenue | $ 1,073,125 | $ 1,262,077 |
Operating costs and expenses: | ||
Cost of services (exclusive of depreciation, depletion, and amortization shown separately below) | 782,680 | 888,416 |
General and administrative | 52,986 | 53,036 |
Transaction, severance, and other costs | 0 | 617 |
Depreciation, depletion, and amortization | 123,186 | 94,401 |
(Gain) loss on disposal of assets | (1,160) | 487 |
Total operating costs and expenses | 957,692 | 1,036,957 |
Operating income | 115,433 | 225,120 |
Other expense: | ||
Interest income—related party | (478) | (373) |
Interest expense, net | 7,541 | 8,264 |
Total other expense, net | 7,063 | 7,891 |
Net income before income taxes | 108,370 | 217,229 |
Income tax expense | 26,478 | 54,483 |
Net income | 81,892 | 162,746 |
Less: Net income attributable to non-controlling interests | 0 | 91 |
Net income attributable to Liberty Energy Inc. stockholders | $ 81,892 | $ 162,655 |
Net income attributable to Liberty Energy Inc. stockholders per common share: | ||
Basic (in dollars per share) | $ 0.49 | $ 0.92 |
Diluted (in dollars per share) | $ 0.48 | $ 0.90 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 166,325 | 176,569 |
Diluted (in shares) | 171,441 | 181,088 |
Nonrelated Party | ||
Revenue: | ||
Total revenue | $ 1,050,558 | $ 1,232,320 |
Related Party | ||
Revenue: | ||
Total revenue | $ 22,567 | $ 29,757 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 81,892 | $ 162,746 |
Other comprehensive (loss) | ||
Foreign currency translation | (3,723) | (470) |
Comprehensive income | 78,169 | 162,276 |
Comprehensive income attributable to non-controlling interest | 0 | 92 |
Comprehensive income attributable to Liberty Energy Inc. | $ 78,169 | $ 162,184 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Total Stockholders’ Equity | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) | Non-controlling Interest | Shares of Class A Common Stock | Shares of Class A Common Stock Common Stock | Shares of Class B Common Stock | Shares of Class B Common Stock Common Stock |
Beginning balance (in shares) at Dec. 31, 2022 | 178,753,000 | 250,000 | ||||||||
Beginning balance at Dec. 31, 2022 | $ 1,497,306 | $ 1,495,017 | $ 1,266,097 | $ 234,525 | $ (7,396) | $ 2,289 | $ 1,788 | $ 3 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Exchanges of Class B Common Stock for Class A Common Stock (shares) | 250,000 | (250,000) | ||||||||
Exchange of Class B Common Stock for Class A Common Stock | 0 | 2,360 | 2,360 | (2,360) | $ 3 | $ (3) | ||||
Offering Costs | (223) | (223) | (223) | |||||||
Deferred tax and tax receivable agreements impact of Liberty LLC merger into the Company | 7,885 | 7,885 | 7,885 | |||||||
$0.07/share of Class A Common Stock dividend | (9,116) | (9,116) | (9,116) | |||||||
Share repurchase (shares) | (5,167,000) | |||||||||
Share repurchases | (74,648) | (74,625) | (74,573) | (23) | $ (52) | |||||
Excise tax on share repurchases | (539) | (539) | (539) | |||||||
Stock-based compensation expense | 7,178 | 7,175 | 7,175 | 3 | ||||||
Vesting of restricted stock units (shares) | 109,000 | |||||||||
Vesting of restricted stock units | 0 | 1 | 1 | (1) | $ 0 | |||||
Currency translation adjustment | (470) | (471) | (471) | 1 | ||||||
Net income | 162,746 | 162,655 | 162,655 | 91 | ||||||
Ending balance (in shares) at Mar. 31, 2023 | 173,945,000 | 0 | ||||||||
Ending balance at Mar. 31, 2023 | 1,590,119 | $ 1,590,119 | 1,208,183 | 388,064 | (7,867) | $ 0 | $ 1,739 | $ 0 | ||
Beginning balance (in shares) at Dec. 31, 2023 | 166,610,199 | 166,610,000 | 0 | |||||||
Beginning balance at Dec. 31, 2023 | 1,841,408 | 1,093,498 | 752,328 | (6,084) | $ 1,666 | $ 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
$0.07/share of Class A Common Stock dividend | (11,964) | (11,964) | ||||||||
Share repurchase (shares) | (1,480,000) | |||||||||
Share repurchases | (30,167) | (30,152) | $ (15) | |||||||
Excise tax on share repurchases | (289) | (289) | ||||||||
Stock-based compensation expense | 7,327 | 7,327 | ||||||||
Vesting of restricted stock units (shares) | 72,000 | |||||||||
Vesting of restricted stock units | 0 | (1) | $ 1 | |||||||
Currency translation adjustment | (3,723) | (3,723) | ||||||||
Net income | 81,892 | 81,892 | ||||||||
Ending balance (in shares) at Mar. 31, 2024 | 165,201,928 | 165,202,000 | 0 | 0 | ||||||
Ending balance at Mar. 31, 2024 | $ 1,884,484 | $ 1,070,383 | $ 822,256 | $ (9,807) | $ 1,652 | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Common stock dividend (in dollars per share) | $ 0.07 | $ 0.05 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 81,892 | $ 162,746 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, depletion, and amortization | 123,186 | 94,401 |
(Gain) loss on disposal of assets | (1,160) | 487 |
Stock-based compensation expense | 7,327 | 7,178 |
Other non-cash items, net | 519 | 2,037 |
Changes in operating assets and liabilities: | ||
Accounts receivable and unbilled revenue | (93,580) | (136,514) |
Accounts receivable and unbilled revenue—related party | 45,456 | (11,458) |
Inventories | (4,604) | 17,790 |
Prepaid and other assets | 16,350 | (14,917) |
Accounts payable and accrued liabilities | (15,583) | 82,438 |
Initial payment of operating lease liability | (407) | (249) |
Net cash provided by operating activities | 159,396 | 203,939 |
Cash flows from investing activities: | ||
Purchases of property and equipment and construction in-progress | (144,986) | (133,138) |
Proceeds from sale of assets | 2,993 | 3,484 |
Net cash used in investing activities | (141,993) | (129,654) |
Cash flows from financing activities: | ||
Proceeds from borrowings on line-of-credit | 573,000 | 242,000 |
Repayments on borrowings on line-of-credit | (547,000) | (147,000) |
Repayments of borrowings on term loan | 0 | (104,716) |
Payments on finance lease obligations | (9,254) | (2,165) |
Class A Common Stock dividends and dividend equivalents upon restricted stock vesting | (11,642) | (8,777) |
Payments of payables pursuant to tax receivable agreements | (5,170) | 0 |
Share repurchases | (30,167) | (74,648) |
Payments of equity issuance costs | 0 | (223) |
Payments of debt issuance costs | 0 | (1,566) |
Net cash used in financing activities | (30,233) | (97,095) |
Net decrease in cash and cash equivalents before translation effect | (12,830) | (22,810) |
Translation effect on cash | (166) | 10 |
Cash and cash equivalents—beginning of period | 36,784 | 43,676 |
Cash and cash equivalents—end of period | 23,788 | 20,876 |
Supplemental disclosure of cash flow information: | ||
Net cash paid (received) for income taxes | 16,694 | (3,473) |
Cash paid for interest | 7,450 | 5,765 |
Non-cash investing and financing activities: | ||
Capital expenditures included in accounts payable and accrued liabilities | 97,993 | 126,847 |
Capital expenditures reclassified from prepaid and other current assets | 18,291 | 8,060 |
Capital expenditures reclassified from finance lease right-of-use assets | $ 6,894 | $ 0 |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Organization Liberty Energy Inc., formerly known as 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”). On April 19, 2022, the stockholders of the Company approved an amendment to the Company’s Amended and Restated Certificate of Incorporation for the purpose of changing the Company’s name from “Liberty Oilfield Services Inc.” to “Liberty Energy Inc.” and thereafter, the Company filed with the Secretary of State of the State of Delaware a Certificate of Amendment to the Company’s Amended and Restated Certificate of Incorporation to reflect the new name, effective April 25, 2022. Effective January 31, 2023, Liberty LLC was merged into the Company, with the Company surviving the merger (the “Merger”). In connection with the Merger, all outstanding shares of the Company’s Class B Common Stock, par value $0.01 per share (the “Class B Common Stock”), were redeemed and exchanged for an equal number of shares of the Company’s Class A Common Stock, par value $0.01 per share (the “Class A Common Stock”). The Company did not make any distributions or receive any proceeds in connection with this exchange. The Merger did not have a significant impact on the Company’s consolidated financial statements. The Company, together with its subsidiaries, is a leading integrated energy services and technology company focused on providing innovative hydraulic fracturing services and related technologies to onshore oil and natural gas exploration and production (“E&P”) companies in North America. We offer customers hydraulic fracturing services, together with complementary services including wireline services, proppant delivery solutions, field gas processing, compressed natural gas (“CNG”) delivery, data analytics, related goods (including our sand mine operations), and technologies to facilitate lower emission completions, thereby helping our customers reduce their emissions profile. 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 GAAP for annual financial statements and should be read together with the annual financial statements and notes thereto included in the Annual Report. The accompanying unaudited condensed consolidated financial statements and related notes present the condensed consolidated financial position of the Company as of March 31, 2024 and December 31, 2023, and the results of operations, cash flows, and equity of the Company as of and for the three months ended March 31, 2024 and 2023. 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, 2024 are not necessarily indicative of the results of operations expected for the entire fiscal year ended December 31, 2024. Further, these estimates and other factors, including those outside the Company’s control, such as the impact of sustained lower commodity prices, could have a significant adverse impact to the Company’s financial condition, results of operations, and cash flows. All intercompany amounts have been eliminated in the presentation of the unaudited condensed consolidated financial statements of the Company. The Company’s operations are organized into a single reportable segment, which consists of hydraulic fracturing and related goods and services. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Recently Issued Accounting Standards Segment Reporting: Improvements to Reportable Segment Disclosures In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting: Improvements to Reportable Segment Disclosures , which requires more detailed disclosures, on an annual and interim basis, related to the Company’s reportable segment. The guidance is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Although the Company has only one reportable segment, the Company is currently assessing the impact of this ASU on the Company’s financial statements. Income Taxes: Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU No. 2023-09, Income Taxes: Improvements to Income Tax Disclosures , which requires disaggregation of certain components included in the Company’s effective tax rate and income taxes paid disclosures. The guidance is effective for annual periods beginning after December 15, 2024. The Company is currently assessing the impact of this ASU on the Company’s financial statements but does not expect it will have a material impact. Siren Acquisition On April 6, 2023, the Company completed the acquisition of a Permian focused integrated natural gas compression and compressed natural gas delivery business, Siren Energy & Logistics, LLC, for cash consideration of $75.7 million, after post-closing adjustments and net of cash received, (the “Siren Acquisition”). The Siren Acquisition was accounted for under the acquisition method of accounting for business combinations. Accordingly, the Company conducted assessments of the net assets acquired and recognized amounts for identifiable assets acquired and liabilities assumed at their estimated acquisition date fair values, while transaction and integration costs associated with the acquisition were expensed as incurred. In connection with the Siren Acquisition, the Company recorded goodwill of $42.0 million, property and equipment of $34.9 million, net working capital of $2.5 million, deferred revenue of $5.2 million, and other assets of $1.8 million. Goodwill is recorded in other assets and deferred revenue is recorded in accrued liabilities in the accompanying unaudited condensed consolidated balance sheets. Due to the immateriality of the Siren Acquisition, the related revenue and earnings, supplemental pro forma financial information, and detailed purchase price allocation are not disclosed. Reclassifications Certain amounts in the prior period financial statements have been reclassified to conform to current period financial statement presentation. The Company combined amounts previously presented within “Effect of exchange on deferred tax asset, net of liability under tax receivable agreements” and “Deferred tax impact of ownership changes from issuance of Class A Common Stock” into “Deferred tax and tax receivable agreements impact of the Liberty LLC merger into the Company” in the accompanying unaudited condensed consolidated statements of changes in equity. In the accompanying consolidated statement of cash flows, amounts in the prior period financial statements have been reclassified from “Amortization of debt issuance costs” and “Non-cash lease expense” into “Other non-cash items, net”. Additionally, amounts in the prior period financial statements have been reclassified from “Deferred revenue” into “Accounts payable and accrued liabilities”. These reclassifications had no effect on the previously reported net income or loss. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following: March 31, December 31, ($ in thousands) 2024 2023 Proppants $ 14,271 $ 17,124 Chemicals 16,840 16,896 Maintenance parts and other 178,949 171,845 $ 210,060 $ 205,865 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2024 | |
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) 2024 2023 Land N/A $ 28,784 $ 29,384 Field services equipment 2-10 2,644,577 2,520,336 Vehicles 4-7 66,340 63,423 Lease equipment 10 141,932 138,781 Buildings and facilities 5-30 149,992 149,876 Mineral reserves >25 76,823 76,823 Office equipment and furniture 2-7 12,093 11,836 3,120,541 2,990,459 Less accumulated depreciation and depletion (1,610,349) (1,501,685) 1,510,192 1,488,774 Construction in-progress N/A 184,040 156,594 Property and equipment, net $ 1,694,232 $ 1,645,368 During the three months ended March 31, 2024 and 2023, the Company recognized depreciation expense of $110.9 million and $88.4 million, respectively. Depletion expense for the three months ended March 31, 2024 and 2023 was $0.3 million and $0.3 million, respectively. As of March 31, 2024 and December 31, 2023, the Company concluded that no triggering events that could indicate possible impairment of property and equipment had occurred, other than related to the assets held for sale discussed below. As of March 31, 2024, the Company classified $1.2 million of land and $2.8 million of buildings, net of accumulated depreciation, of two properties that it intends to sell within the next year, and that meet the held for sale criteria, as assets held for sale, included in prepaid and other current assets in the accompanying unaudited condensed consolidated balance sheet. The Company estimates that the carrying value of the assets is less than the fair value less the estimated costs to sell, net of write-downs taken in the prior period, and therefore no gain or loss was recorded during the three months ended March 31, 2024. As of December 31, 2023, the Company classified $0.7 million of land and $0.8 million of buildings, net of accumulated depreciation, of one property that it intends to sell within one year, and that meet the held for sale criteria, as assets held for sale, included in prepaid and other current assets in the accompanying unaudited condensed consolidated balance sheet. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | Leases The Company has operating and finance leases primarily for vehicles, equipment, railcars, office space, and facilities. The terms and conditions for these leases vary by the type of underlying asset. Certain leases include variable lease payments for items such as property taxes, insurance, maintenance, and other operating expenses associated with leased assets. Payments that vary based on an index or rate are included in the measurement of lease assets and liabilities at the rate as of the commencement date. All other variable lease payments are excluded from the measurement of lease assets and liabilities, and are recognized in the period in which the obligation for those payments is incurred. The components of lease expense for the three months ended March 31, 2024 and 2023 were as follows: Three Months Ended March 31, ($ in thousands) 2024 2023 Finance lease cost: Amortization of right-of-use assets $ 8,911 $ 2,236 Interest on lease liabilities 3,373 694 Operating lease cost 9,035 10,574 Variable lease cost 1,767 1,246 Short-term lease cost 1,022 2,051 Total lease cost, net $ 24,108 $ 16,801 Supplemental cash flow and other information related to leases for the three months ended March 31, 2024 and 2023 were as follows: Three Months Ended March 31, ($ in thousands) 2024 2023 Cash paid for amounts included in measurement of liabilities: Operating leases $ 9,055 $ 9,877 Finance leases 12,627 2,936 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases 4,242 4,562 Finance leases 30,138 2,789 Lease terms and discount rates as of March 31, 2024 and December 31, 2023 were as follows: March 31, 2024 December 31, 2023 Weighted-average remaining lease term: Operating leases 4.2 years 4.3 years Finance leases 3.3 years 3.3 years Weighted-average discount rate: Operating leases 6.1 % 6.0 % Finance leases 7.9 % 8.0 % Future minimum lease commitments as of March 31, 2024 are as follows: ($ in thousands) Finance Operating Remainder of 2024 $ 43,633 $ 24,083 2025 58,721 30,609 2026 60,803 19,423 2027 31,915 9,538 2028 23,539 2,574 Thereafter 7,021 12,569 Total lease payments 225,632 98,796 Less imputed interest 31,908 11,089 Total $ 193,724 $ 87,707 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, 2024 is $14.8 million; the payment is not probable and therefore has not been included in the measurement of the lease liability and right-of-use asset. For vehicle leases that are classified as finance leases, the Company includes the residual value guarantee, estimated in the lease agreement, in the financing lease liability. Lessor Arrangements The Company leases dry and wet sand containers and conveyor belts to customers through operating leases, where the lessor for tax purposes is considered to be the owner of the equipment during the term of the lease. The lease agreements do not include options for the lessee to purchase the underlying asset at the end of the lease term for either a stated fixed price or fair market value. However, some of the leases contain a termination clause in which the customer can cancel the contract. The leases can be subject to variable lease payments if the customer requests more units than what is agreed upon in the lease. The Company does not record any lease assets or liabilities related to these variable items. The carrying amount of equipment leased to others, included in property, plant and equipment, under operating leases as of March 31, 2024 and December 31, 2023 were as follows: ($ in thousands) March 31, 2024 December 31, 2023 Equipment leased to others - at original cost $ 141,932 $ 138,781 Less: Accumulated depreciation (31,301) (25,819) Equipment leased to others - net $ 110,631 $ 112,962 Future payments receivable for operating leases as of March 31, 2024 are as follows: ($ in thousands) Remainder of 2024 $ 6,353 2025 5,412 2026 2,239 2027 — 2028 — Thereafter — Total $ 14,004 Revenues from operating leases |
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, 2024 and 2023 were as follows: Three Months Ended March 31, ($ in thousands) 2024 2023 Finance lease cost: Amortization of right-of-use assets $ 8,911 $ 2,236 Interest on lease liabilities 3,373 694 Operating lease cost 9,035 10,574 Variable lease cost 1,767 1,246 Short-term lease cost 1,022 2,051 Total lease cost, net $ 24,108 $ 16,801 Supplemental cash flow and other information related to leases for the three months ended March 31, 2024 and 2023 were as follows: Three Months Ended March 31, ($ in thousands) 2024 2023 Cash paid for amounts included in measurement of liabilities: Operating leases $ 9,055 $ 9,877 Finance leases 12,627 2,936 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases 4,242 4,562 Finance leases 30,138 2,789 Lease terms and discount rates as of March 31, 2024 and December 31, 2023 were as follows: March 31, 2024 December 31, 2023 Weighted-average remaining lease term: Operating leases 4.2 years 4.3 years Finance leases 3.3 years 3.3 years Weighted-average discount rate: Operating leases 6.1 % 6.0 % Finance leases 7.9 % 8.0 % Future minimum lease commitments as of March 31, 2024 are as follows: ($ in thousands) Finance Operating Remainder of 2024 $ 43,633 $ 24,083 2025 58,721 30,609 2026 60,803 19,423 2027 31,915 9,538 2028 23,539 2,574 Thereafter 7,021 12,569 Total lease payments 225,632 98,796 Less imputed interest 31,908 11,089 Total $ 193,724 $ 87,707 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, 2024 is $14.8 million; the payment is not probable and therefore has not been included in the measurement of the lease liability and right-of-use asset. For vehicle leases that are classified as finance leases, the Company includes the residual value guarantee, estimated in the lease agreement, in the financing lease liability. Lessor Arrangements The Company leases dry and wet sand containers and conveyor belts to customers through operating leases, where the lessor for tax purposes is considered to be the owner of the equipment during the term of the lease. The lease agreements do not include options for the lessee to purchase the underlying asset at the end of the lease term for either a stated fixed price or fair market value. However, some of the leases contain a termination clause in which the customer can cancel the contract. The leases can be subject to variable lease payments if the customer requests more units than what is agreed upon in the lease. The Company does not record any lease assets or liabilities related to these variable items. The carrying amount of equipment leased to others, included in property, plant and equipment, under operating leases as of March 31, 2024 and December 31, 2023 were as follows: ($ in thousands) March 31, 2024 December 31, 2023 Equipment leased to others - at original cost $ 141,932 $ 138,781 Less: Accumulated depreciation (31,301) (25,819) Equipment leased to others - net $ 110,631 $ 112,962 Future payments receivable for operating leases as of March 31, 2024 are as follows: ($ in thousands) Remainder of 2024 $ 6,353 2025 5,412 2026 2,239 2027 — 2028 — Thereafter — Total $ 14,004 Revenues from operating leases |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consist of the following: ($ in thousands) March 31, 2024 December 31, 2023 Accrued vendor invoices $ 101,294 $ 99,620 Operations accruals 52,252 61,150 Accrued benefits and other 81,349 100,296 $ 234,895 $ 261,066 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt consists of the following: March 31, December 31, ($ in thousands) 2024 2023 Revolving Line of Credit $ 166,000 $ 140,000 On September 19, 2017, the Company entered into two credit agreements for (i) a revolving line of credit up to $250.0 million, subsequently increased to $525.0 million, see below, (the “ABL Facility”) and (ii) a $175.0 million term loan (the “Term Loan Facility”). On January 23, 2023, the Company borrowed $106.7 million on the ABL Facility and used the proceeds to pay off and terminate the Term Loan Facility. The amount paid included the balance of the Term Loan Facility at pay off of $104.7 million, $0.9 million of accrued interest, and a $1.1 million prepayment premium. The weighted average interest rate on all borrowings outstanding as of March 31, 2024 and December 31, 2023 was 7.5% and 7.6%, respectively. ABL Facility Under the terms of the ABL Facility, up to $525.0 million may be borrowed, subject to certain borrowing base limitations based on a percentage of eligible accounts receivable and inventory. As of March 31, 2024, the borrowing base was calculated to be $465.1 million, and the Company had $166.0 million outstanding in addition to letters of credit in the amount of $7.4 million, with $291.7 million of remaining availability. Borrowings under the ABL Facility bear interest at Secured Overnight Financing Rate (“SOFR”) or a base rate, plus an applicable SOFR margin of 1.5% to 2.0% or base rate margin of 0.5% to 1.0%, as described in the ABL Facility credit agreement (the “Credit Agreement”). Additionally, borrowings as of March 31, 2024 incurred interest at a weighted average rate of 7.5%. The average monthly unused commitment is subject to an unused commitment fee of 0.25% to 0.375%. Interest and fees are payable in arrears at the end of each month, or, in the case of SOFR loans, at the end of each interest period. The ABL Facility matures on January 23, 2028. Borrowings under the ABL Facility are collateralized by accounts receivable and inventory, and further secured by the Company as parent guarantor. The ABL Facility includes 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 ABL Facility is not subject to financial covenants unless liquidity, as defined in the Credit Agreement, drops below a specific level. The Company is required to maintain a minimum fixed charge coverage ratio, as defined in the Credit Agreement, of 1.0 to 1.0 for each period if excess availability is less than 10% of the borrowing base or $52.5 million, whichever is greater. The Company was in compliance with these covenants as of March 31, 2024. Maturities of debt are as follows: ($ in thousands) Remainder of 2024 $ — 2025 — 2026 — 2027 — 2028 166,000 Thereafter — $ 166,000 |
Fair Value Measurements and Fin
Fair Value Measurements and Financial Instruments | 3 Months Ended |
Mar. 31, 2024 | |
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 on 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 on 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, 2024 and 2023. The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, notes 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 of the Company’s financial instruments included in the accompanying unaudited condensed consolidated balance sheets approximated or equaled their fair values on March 31, 2024 and December 31, 2023. • The carrying values of cash and cash equivalents, accounts receivable, and accounts payable (including accrued liabilities) approximated fair value on March 31, 2024 and December 31, 2023, due to their short-term nature. • The carrying value of amounts outstanding under long-term debt agreements with variable rates approximated fair value on March 31, 2024 and December 31, 2023, as the effective interest rates approximated market rates. • The carrying values of amounts outstanding under finance and operating lease obligations approximated fair value on March 31, 2024 and December 31, 2023, as the effective borrowing rates approximated market rates. Nonrecurring Measurements Certain assets and liabilities are measured at fair value on a nonrecurring basis. These items are not measured at fair value on an ongoing basis but may be subject to fair value adjustments in certain circumstances. As of March 31, 2024, the Company recorded $1.2 million of land and $2.8 million of buildings, net of accumulated depreciation, of two properties that met the held for sale criteria, to assets held for sale at a total fair value of $3.4 million, which are included in prepaid and other current assets in the accompanying unaudited condensed consolidated balance sheets. The Company estimated the fair value of the properties based on the listed selling price for the two properties, which is a Level 3 input. The Company estimates that the carrying value of the assets is less than the fair value less the estimated costs to sell, net of write-downs taken in the prior period, and therefore no gain or loss was recorded during the three months ended March 31, 2024. As of December 31, 2023, the Company recorded $0.7 million of land and $0.8 million of buildings, net of accumulated depreciation, of one property that met the held for sale criteria, to assets held for sale at a total fair value of $0.8 million, which are included in prepaid and other current assets in the accompanying unaudited condensed consolidated balance sheets. The Company estimated the fair value of the property based on a communicated selling price for one property, which is a Level 3 input. Recurring Measurements The fair values of the Company’s cash equivalents measured on a recurring basis pursuant to ASC 820-10 Fair Value Measurements and Disclosures are carried at estimated fair value. Cash equivalents consist of money market accounts which the Company has classified as Level 1 given the active market for these accounts. As of March 31, 2024 and December 31, 2023, the Company had cash equivalents, measured at fair value, of $0.3 million. 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 unaudited condensed consolidated financial statements. No such measurements were required as of March 31, 2024 and December 31, 2023 as no triggering event was identified. 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 and cash equivalent balances on deposit with financial institutions total $23.8 million and $36.8 million as of March 31, 2024 and December 31, 2023, respectively, which exceeded FDIC insured limits. The Company regularly monitors these institutions’ financial condition. The majority of the Company’s customers have payment terms of 45 days or less. As of March 31, 2024, customer A accounted for 15% of total accounts receivable and unbilled revenue. As of December 31, 2023, no customers accounted for 10% of total consolidated accounts receivable and unbilled revenue. During the three months ended March 31, 2024, customer A accounted for 15% of consolidated revenues. During the three months ended March 31, 2023, customer B accounted for 12% of consolidated revenues. No other customers accounted for more than 10% of revenues during the respective periods. The Company mitigates the associated credit risk by performing credit evaluations and monitoring the payment patterns of its customers. The Company applies historic loss factors to its receivable portfolio segments that are not expected to be further impacted by current economic developments, and an additional economic conditions factor to portfolio segments anticipated to experience greater losses in the current economic environment. While the Company has not experienced significant credit losses in the past and has not seen material changes to the payment patterns of its customers, the Company cannot predict with any certainty the degree to which unforeseen events may affect the ability of its customers to timely pay receivables when due. Accordingly, in future periods, the Company may revise its estimates of expected credit losses. As of both March 31, 2024 and December 31, 2023, the Company had $0.9 million in allowance for credit losses as follows: ($ in thousands) Allowance for credit losses on December 31, 2023 $ 939 Credit losses: Current period provision — Amounts written off, net of recoveries — Allowance for credit losses on March 31, 2024 $ 939 |
Equity
Equity | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Equity | Equity 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 three years. Changes in non-vested RSUs outstanding under the LTIP during the three months ended March 31, 2024 were as follows: Number of Units Weighted Average Grant Date Fair Value per Unit Non-vested as of December 31, 2023 2,985,218 $ 13.90 Granted 540,570 17.52 Vested (72,155) 14.59 Forfeited (36,133) 13.54 Outstanding as of March 31, 2024 3,417,500 $ 14.46 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 and performance period, with the vesting percentage of the target award dependent on the satisfaction of the performance goals set forth in the applicable award agreement. 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, 2024 were as follows: Number of Units Weighted Average Grant Date Fair Value per Unit Non-vested as of December 31, 2023 1,339,568 $ 13.49 Granted 336,682 17.36 Vested — — Forfeited — — Outstanding as of March 31, 2024 1,676,250 $ 14.27 Stock-based compensation is included in cost of services and general and administrative expenses in the Company’s unaudited condensed consolidated statements of operations. The Company recognized stock-based compensation expense of $7.3 million and $7.2 million for the three months ended March 31, 2024 and 2023, respectively. There was approximately $40.7 million of unrecognized compensation expense relating to outstanding RSUs and PSUs as of March 31, 2024. The unrecognized compensation expense will be recognized on a straight-line basis over the weighted average remaining vesting period of two years . Dividends The Company paid cash dividends of $0.07 per share of Class A Common Stock on March 20, 2024 to stockholders of record as of March 6, 2024, which totaled $11.6 million. The Company paid cash dividends of $0.05 per share of Class A Common Stock on March 20, 2023 to stockholders of record as of March 6, 2023, which totaled $8.8 million. As of March 31, 2024 and December 31, 2023, the Company had $1.3 million and $1.0 million of dividend equivalents payable related to RSUs and PSUs to be paid upon vesting, respectively. Dividend equivalents related to forfeited RSUs or PSUs will be forfeited. Share Repurchase Program On July 25, 2022, the Company’s board of directors authorized and the Company announced a share repurchase program that allowed the Company to repurchase up to $250.0 million of the Company’s Class A Common Stock beginning immediately and continuing through July 31, 2024. Additionally, on January 24, 2023, the Board authorized and the Company announced an increase of the cumulative repurchase authorization to $500.0 million. Furthermore, on January 23, 2024, the Board authorized and the Company announced an increase of the cumulative repurchase authorization to $750.0 million and extended the authorization through July 31, 2026. The shares may be repurchased from time to time in open market or privately negotiated transactions or by other means in accordance with applicable state and federal securities laws. The timing, as well as the number and value of shares repurchased under the program, will be determined by the Company at its discretion and will depend on a variety of factors, including management’s assessment of the intrinsic value of the Company’s Class A Common Stock, the market price of the Company’s Class A Common Stock, general market and economic conditions, available liquidity, compliance with the Company’s debt and other agreements, applicable legal requirements, and other considerations. The exact number of shares to be repurchased by the Company is not guaranteed, and the program may be suspended, modified, or discontinued at any time without prior notice. The Company expects to fund any repurchases by using cash on hand, borrowings under its revolving credit facility and expected free cash flow to be generated through the duration of the share repurchase program. During the three months ended March 31, 2024, the Company repurchased and retired 1,480,084 shares of Class A Common Stock for $30.2 million or $20.38 average price per share including commissions, under the share repurchase program. During the three months ended March 31, 2023, the Company repurchased and retired 5,166,730 shares of Class A Common Stock for $74.6 million or $14.45 average price per share including commissions, under the share repurchase program. As of March 31, 2024, $391.8 million remained authorized for future repurchases of Class A Common Stock under the share repurchase program. The Company accounts for the purchase price of repurchased common shares in excess of par value ($0.01 per share of Class A Common Stock) as a reduction of additional paid-in capital, and will continue to do so until additional paid-in capital is reduced to zero. Thereafter, any excess purchase price will be recorded as a reduction to retained earnings. As enacted by the Inflation Reduction Act of 2022, the Company accrued stock repurchase excise tax of $0.3 million and $0.5 million for the three months ended March 31, 2024 and 2023. As of March 31, 2024 and December 31, 2023 the Company had excise tax payables of $2.2 million and $1.9 million in accrued liabilities in the accompanying unaudited condensed consolidated balance sheets. |
Net Income per Share
Net Income per Share | 3 Months Ended |
Mar. 31, 2024 | |
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 RSUs and PSUs. 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 Class A Common Stock and Class B Common Stock outstanding: Three Months Ended (In thousands, except per share data) March 31, 2024 March 31, 2023 Basic Net Income Per Share Numerator: Net income attributable to Liberty Energy Inc. stockholders $ 81,892 $ 162,655 Denominator: Basic weighted average common shares outstanding 166,325 176,569 Basic net income per share attributable to Liberty Energy Inc. stockholders $ 0.49 $ 0.92 Diluted Net Income Per Share Numerator: Net income attributable to Liberty Energy Inc. stockholders $ 81,892 $ 162,655 Effect of exchange of the shares of Class B Common Stock for shares of Class A Common Stock — 70 Diluted net income attributable to Liberty Energy Inc. stockholders $ 81,892 $ 162,725 Denominator: Basic weighted average shares outstanding 166,325 176,569 Effect of dilutive securities: Restricted stock units 5,116 4,433 Class B Common Stock — 86 Diluted weighted average shares outstanding 171,441 181,088 Diluted net income per share attributable to Liberty Energy Inc. stockholders $ 0.48 $ 0.90 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company is a corporation and is subject to taxation in the United States, Canada, Australia and various state, local and provincial jurisdictions. Historically, Liberty LLC was treated as a partnership, and its income was passed through to its owners for income tax purposes. Liberty LLC’s members, including the Company, were liable for federal, state and local income taxes based on their share of Liberty LLC’s pass-through taxable income. Effective January 31, 2023, the Company adopted a plan of merger, pursuant to which Liberty LLC merged into the Company, ceasing the existence of Liberty LLC with the Company remaining as the surviving entity. Liberty LLC filed a final tax return during the 2023 calendar year. The Company is still party to the TRAs; the associated liabilities are discussed below. On October 8, 2021, the Organization for Economic Co-operation and Development (“OECD”) released a statement on the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting, which agreed to a two-pillar solution to address tax challenges of the digital economy. On December 20, 2021, the OECD released Pillar Two model rules defining a 15% global minimum tax rate for large multinational corporations (the “Pillar Two Framework”). The OECD continues to release additional guidance and countries are implementing legislation with widespread adoption of the Pillar Two Framework expected by 2024. The Company is continuing to evaluate the Pillar Two Framework and its potential impact on future periods, including any legislation enacted in the jurisdictions in which the Company operates. The Company may distribute cash from foreign subsidiaries to its U.S. parent as business needs arise. The Company has not provided for deferred income taxes on the undistributed earnings from certain foreign subsidiaries, as such earnings are considered to be indefinitely reinvested. If such earnings were to be distributed, any income and/or withholding tax is not expected to be significant. The effective global income tax rate applicable to the Company for the three months ended March 31, 2024 was 24.4% , compared to 25.1% for the period ended March 31, 2023. The Company’s effective tax rate is greater than the statutory federal income tax rate of 21.0% due to the Company’s Canadian operations, state income taxes in the states the Company operates, as well as nondeductible executive compensation. The Company recognized an income tax expense of $26.5 million an d $54.5 million during the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024 and December 31, 2023, the Company recognized a net deferred tax liability in the amount of $102.3 million. Deferred income tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial reporting and tax bases of assets and liabilities, and are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. 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 units in Liberty LLC (“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. On January 31, 2023, the last redemption of the Liberty LLC Units occurred. As such, the Company recorded an increase of $7.8 million of deferred tax assets for the impact of the adopted plan of merger of Liberty LLC into the Company. Additionally, exchanges of Liberty LLC Units and shares of Class B Common Stock resulted in a net increase of $0.7 million in deferred tax assets, and an increase of $0.6 million in amounts payable under the TRAs, all of which was recorded through equity during the three months ended March 31, 2023. As of March 31, 2024, the Company ’ s liability under the TRAs was $112.4 million, of which $37.4 million is payable within the next 12 months, and $75.0 million thereafter. The Company made TRA payments of $5.2 million for the three months ended March 31, 2024. As of December 31, 2023, the Company ’ |
Defined Contribution Plan
Defined Contribution Plan | 3 Months Ended |
Mar. 31, 2024 | |
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 and federal limits. Contributions made by the Company w ere $8.7 million an d $7.7 million f |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Schlumberger Limited During 2020, the Company acquired certain assets and liabilities of Schlumberger Technology Corporation (“Schlumberger”) in exchange for the issuance of shares of the Company ’ s Class A Common Stock amongst other consideration. During the three months ended March 31, 2023, the Company repurchased and retired 3,000,000 shares of Class A Common Stock for $45.0 million or $15.00 average price per share from Schlumberger, under the share repurchase program. Effective January 31, 2023, after the repurchase and retirement, Schlumberger owned no shares of Class A Common Stock of the Company and no longer qualified as a related party. Within the normal course of business, the Company purchased chemicals, proppant, other equipment, and maintenance parts from Schlumberger and its subsidiaries. During the period from January 1, 2023 until January 31, 2023, total purchases from Schlumberger were approximately $1.7 million. Although the Company continues to do business with Schlumberger, the Company no longer presents cash flows with Schlumberger as related party in the accompanying unaudited condensed consolidated statements of cash flows. Franklin Mountain Energy, LLC A member of the board of directors of the Company, Audrey Robertson, serves as Executive Vice President of Finance of Franklin Mountain Energy, LLC (“Franklin Mountain”). During the three months ended March 31, 2024 and March 31, 2023, the Company performed hydraulic fracturing services for Franklin Mountain in the amount of $11.5 million and $23.3 million, respectively. Amounts included in unbilled revenue from Franklin Mountain as of March 31, 2024 and December 31, 2023, were $0.1 million and $13.4 million, respectively. Receivables from Franklin Mountain as of March 31, 2024 and December 31, 2023 were $0.0 million and $12.1 million, respectively. Liberty Resources LLC Liberty Resources LLC, an oil and gas exploration and production company, and its successor entity (collectively, the “Affiliate”) had certain common ownership and management with the Company. Effective March 14, 2024, the Affiliate is no longer a related party, following its acquisition by an unaffiliated party. The amounts of the Company’s revenue related to hydraulic fracturing services provided to the Affiliate for the period January 1, 2024 through March 13, 2024, and the three months ended March 31, 2023, were $11.1 million and $6.5 million, respectively. On December 28, 2022 (the “Agreement Date”), the Company entered into an agreement with the Affiliate to amend payment terms for outstanding invoices due as of the Agreement Date to be due on April 1, 2024. Additionally, on August 15, 2023, the agreement was further amended in order to extend the due dates for certain invoices to January 1, 2025. Amounts outstanding from the Affiliate as of December 31, 2023 were $14.8 million, included in other assets in the accompanying unaudited condensed consolidated balance sheet. All amounts outstanding with the Affiliate under the agreement were collected in full during the three months ended March 31, 2024. Receivables from the successor entity as of March 31, 2024 were $5.5 million, included in accounts receivable. Receivables from the Affiliate as of December 31, 2023 were $5.2 million, included in accounts receivable—related party. During the period January 1, 2024 through March 13, 2024, and the three months ended March 31, 2023, interest income from the Affiliate was $0.5 million and $0.4 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments & Contingencies Purchase Commitments (tons are not in thousands) The Company enters into purchase and supply agreements to secure supply and pricing of proppants, transload, and equipment. As of March 31, 2024 and December 31, 2023, the agreements provide pricing and committed supply sources for the Company to purchas e 1,108,782 and 1,854,000 tons, respectively, of proppant through December 31, 2025. Amounts below also include commitments to pay for transport fees on minimum amounts of proppants. Additionally, related proppant transload service commitments run through 2024. Future proppant, transload, and equipment commitments are as follows: ($ in thousands) Remainder of 2024 $ 84,498 2025 12,960 2026 — 2027 — 2028 — Thereafter — $ 97,458 Certain 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. In circumstances where the Company does not make the minimum purchase required under the contract, the Company and its suppliers have a history of amending such minimum purchase contractual terms and in rare cases does the Company incur shortfall fees. If the Company were unable to make any of the minimum purchases and the Company and its suppliers cannot come to an agreement to avoid such fees, the Company could incur shortfall fees in the amounts of $16.0 million and $5.4 million for the remainder of 2024 and 2025, respectively. Based on forecasted levels of activity, the Company does not currently expect to incur significant shortfall fees. Included in the commitments for the remainder of 2024 are $3.1 million of payments expected to be made in the second quarter of 2024 for the use of certain light duty trucks, heavy tractors, and field equipment used to various degrees in frac and wireline operations. The Company is in negotiations with the third-party owner of such equipment to lease or purchase some or all of such aforementioned vehicles and equipment, subject to agreement on terms and conditions. No gain or loss is expected upon consummation of any such agreement. Litigation From time to time, the Company is subject to legal and administrative proceedings, settlements, investigations, claims and actions. The Company’s assessment of the likely outcome of litigation matters is based on its judgment of a number of factors including experience with similar matters, past history, precedents, relevant financial and other evidence and facts specific to the matter. Notwithstanding the uncertainty as to the final outcome, based upon the information currently available, management does not believe any matters, individually or in aggregate, will have a material adverse effect on the Company ’ s financial position or results of operations. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On April 16, 2024, the Company’s board of directors approved a quarterly dividend of $0.07 per share of Class A Common Stock to be paid on June 20, 2024 to holders of record as of June 6, 2024. No other significant subsequent events have occurred that would require recognition or disclosure in the unaudited condensed consolidated financial statements and notes thereto. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income | $ 81,892 | $ 162,655 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
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 GAAP for annual financial statements and should be read together with the annual financial statements and notes thereto included in the Annual Report. The accompanying unaudited condensed consolidated financial statements and related notes present the condensed consolidated financial position of the Company as of March 31, 2024 and December 31, 2023, and the results of operations, cash flows, and equity of the Company as of and for the three months ended March 31, 2024 and 2023. 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, 2024 are not necessarily indicative of the results of operations expected for the entire fiscal year ended December 31, 2024. Further, these estimates and other factors, including those outside the Company’s control, such as the impact of sustained lower commodity prices, could have a significant adverse impact to the Company’s financial condition, results of operations, and cash flows. All intercompany amounts have been eliminated in the presentation of the unaudited condensed consolidated financial statements of the Company. The Company’s operations are organized into a single reportable segment, which consists of hydraulic fracturing and related goods and services. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Segment Reporting: Improvements to Reportable Segment Disclosures In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting: Improvements to Reportable Segment Disclosures , which requires more detailed disclosures, on an annual and interim basis, related to the Company’s reportable segment. The guidance is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Although the Company has only one reportable segment, the Company is currently assessing the impact of this ASU on the Company’s financial statements. Income Taxes: Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU No. 2023-09, Income Taxes: Improvements to Income Tax Disclosures , which requires disaggregation of certain components included in the Company’s effective tax rate and income taxes paid disclosures. The guidance is effective for annual periods beginning after December 15, 2024. The Company is currently assessing the impact of this ASU on the Company’s financial statements but does not expect it will have a material impact. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: March 31, December 31, ($ in thousands) 2024 2023 Proppants $ 14,271 $ 17,124 Chemicals 16,840 16,896 Maintenance parts and other 178,949 171,845 $ 210,060 $ 205,865 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consist of the following: Estimated March 31, December 31, ($ in thousands) 2024 2023 Land N/A $ 28,784 $ 29,384 Field services equipment 2-10 2,644,577 2,520,336 Vehicles 4-7 66,340 63,423 Lease equipment 10 141,932 138,781 Buildings and facilities 5-30 149,992 149,876 Mineral reserves >25 76,823 76,823 Office equipment and furniture 2-7 12,093 11,836 3,120,541 2,990,459 Less accumulated depreciation and depletion (1,610,349) (1,501,685) 1,510,192 1,488,774 Construction in-progress N/A 184,040 156,594 Property and equipment, net $ 1,694,232 $ 1,645,368 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Lease, Cost | The components of lease expense for the three months ended March 31, 2024 and 2023 were as follows: Three Months Ended March 31, ($ in thousands) 2024 2023 Finance lease cost: Amortization of right-of-use assets $ 8,911 $ 2,236 Interest on lease liabilities 3,373 694 Operating lease cost 9,035 10,574 Variable lease cost 1,767 1,246 Short-term lease cost 1,022 2,051 Total lease cost, net $ 24,108 $ 16,801 |
Lessee, Supplemental Cash Flow Information | Supplemental cash flow and other information related to leases for the three months ended March 31, 2024 and 2023 were as follows: Three Months Ended March 31, ($ in thousands) 2024 2023 Cash paid for amounts included in measurement of liabilities: Operating leases $ 9,055 $ 9,877 Finance leases 12,627 2,936 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases 4,242 4,562 Finance leases 30,138 2,789 |
Lease Term and Discount Rate, Lessee | Lease terms and discount rates as of March 31, 2024 and December 31, 2023 were as follows: March 31, 2024 December 31, 2023 Weighted-average remaining lease term: Operating leases 4.2 years 4.3 years Finance leases 3.3 years 3.3 years Weighted-average discount rate: Operating leases 6.1 % 6.0 % Finance leases 7.9 % 8.0 % |
Lessee, Operating Lease, Liability, Maturity | Future minimum lease commitments as of March 31, 2024 are as follows: ($ in thousands) Finance Operating Remainder of 2024 $ 43,633 $ 24,083 2025 58,721 30,609 2026 60,803 19,423 2027 31,915 9,538 2028 23,539 2,574 Thereafter 7,021 12,569 Total lease payments 225,632 98,796 Less imputed interest 31,908 11,089 Total $ 193,724 $ 87,707 |
Finance Lease, Liability, Maturity | Future minimum lease commitments as of March 31, 2024 are as follows: ($ in thousands) Finance Operating Remainder of 2024 $ 43,633 $ 24,083 2025 58,721 30,609 2026 60,803 19,423 2027 31,915 9,538 2028 23,539 2,574 Thereafter 7,021 12,569 Total lease payments 225,632 98,796 Less imputed interest 31,908 11,089 Total $ 193,724 $ 87,707 |
Carrying Amount of Equipment Leased to Others | The carrying amount of equipment leased to others, included in property, plant and equipment, under operating leases as of March 31, 2024 and December 31, 2023 were as follows: ($ in thousands) March 31, 2024 December 31, 2023 Equipment leased to others - at original cost $ 141,932 $ 138,781 Less: Accumulated depreciation (31,301) (25,819) Equipment leased to others - net $ 110,631 $ 112,962 |
Lessor, Operating Lease, Payment to be Received, Maturity | Future payments receivable for operating leases as of March 31, 2024 are as follows: ($ in thousands) Remainder of 2024 $ 6,353 2025 5,412 2026 2,239 2027 — 2028 — Thereafter — Total $ 14,004 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following: ($ in thousands) March 31, 2024 December 31, 2023 Accrued vendor invoices $ 101,294 $ 99,620 Operations accruals 52,252 61,150 Accrued benefits and other 81,349 100,296 $ 234,895 $ 261,066 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consists of the following: March 31, December 31, ($ in thousands) 2024 2023 Revolving Line of Credit $ 166,000 $ 140,000 |
Schedule of Maturities of Long-term Debt | Maturities of debt are as follows: ($ in thousands) Remainder of 2024 $ — 2025 — 2026 — 2027 — 2028 166,000 Thereafter — $ 166,000 |
Fair Value Measurements and F_2
Fair Value Measurements and Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Allowance for Doubtful Accounts | As of both March 31, 2024 and December 31, 2023, the Company had $0.9 million in allowance for credit losses as follows: ($ in thousands) Allowance for credit losses on December 31, 2023 $ 939 Credit losses: Current period provision — Amounts written off, net of recoveries — Allowance for credit losses on March 31, 2024 $ 939 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Nonvested Restricted Stock Units Activity | Changes in non-vested RSUs outstanding under the LTIP during the three months ended March 31, 2024 were as follows: Number of Units Weighted Average Grant Date Fair Value per Unit Non-vested as of December 31, 2023 2,985,218 $ 13.90 Granted 540,570 17.52 Vested (72,155) 14.59 Forfeited (36,133) 13.54 Outstanding as of March 31, 2024 3,417,500 $ 14.46 |
Schedule of Performance Restricted Stock Units Activity | Changes in non-vested PSUs outstanding under the LTIP during the three months ended March 31, 2024 were as follows: Number of Units Weighted Average Grant Date Fair Value per Unit Non-vested as of December 31, 2023 1,339,568 $ 13.49 Granted 336,682 17.36 Vested — — Forfeited — — Outstanding as of March 31, 2024 1,676,250 $ 14.27 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 Class A Common Stock and Class B Common Stock outstanding: Three Months Ended (In thousands, except per share data) March 31, 2024 March 31, 2023 Basic Net Income Per Share Numerator: Net income attributable to Liberty Energy Inc. stockholders $ 81,892 $ 162,655 Denominator: Basic weighted average common shares outstanding 166,325 176,569 Basic net income per share attributable to Liberty Energy Inc. stockholders $ 0.49 $ 0.92 Diluted Net Income Per Share Numerator: Net income attributable to Liberty Energy Inc. stockholders $ 81,892 $ 162,655 Effect of exchange of the shares of Class B Common Stock for shares of Class A Common Stock — 70 Diluted net income attributable to Liberty Energy Inc. stockholders $ 81,892 $ 162,725 Denominator: Basic weighted average shares outstanding 166,325 176,569 Effect of dilutive securities: Restricted stock units 5,116 4,433 Class B Common Stock — 86 Diluted weighted average shares outstanding 171,441 181,088 Diluted net income per share attributable to Liberty Energy Inc. stockholders $ 0.48 $ 0.90 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments | Future proppant, transload, and equipment commitments are as follows: ($ in thousands) Remainder of 2024 $ 84,498 2025 12,960 2026 — 2027 — 2028 — Thereafter — $ 97,458 |
Organization and Basis of Pre_2
Organization and Basis of Presentation - Narrative (Details) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 | Jan. 31, 2023 |
Shares of Class B Common Stock | |||
Class of Stock [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Shares of Class A Common Stock | |||
Class of Stock [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
PropX | Common Stock | Shares of Class B Common Stock | |||
Class of Stock [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0.01 | ||
PropX | Common Stock | Shares of Class A Common Stock | |||
Class of Stock [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0.01 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) $ in Millions | 3 Months Ended | |
Apr. 06, 2023 USD ($) | Mar. 31, 2024 segment | |
Business Acquisition [Line Items] | ||
Number of reportable segments | segment | 1 | |
Siren Energy | ||
Business Acquisition [Line Items] | ||
Payments to acquire businesses, net of cash acquired | $ 75.7 | |
Goodwill | 42 | |
Property and equipment | 34.9 | |
Business combination, net working capital | 2.5 | |
Business combination, recognized identifiable assets acquired and liabilities assumed, current liabilities, deferred revenue | 5.2 | |
Business combination, recognized identifiable assets acquired and liabilities assumed, other assets (liabilities), net | $ 1.8 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Inventory [Line Items] | ||
Inventories | $ 210,060 | $ 205,865 |
Inventory write-down | 0 | 5,800 |
Proppants | ||
Inventory [Line Items] | ||
Inventories | 14,271 | 17,124 |
Chemicals | ||
Inventory [Line Items] | ||
Inventories | 16,840 | 16,896 |
Maintenance parts and other | ||
Inventory [Line Items] | ||
Inventories | $ 178,949 | $ 171,845 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 3,120,541 | $ 2,990,459 |
Less accumulated depreciation and depletion | (1,610,349) | (1,501,685) |
Property and equipment, before construction in-progress, net | 1,510,192 | 1,488,774 |
Construction in-progress | 184,040 | 156,594 |
Property and equipment, net | 1,694,232 | 1,645,368 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 28,784 | 29,384 |
Field services equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,644,577 | 2,520,336 |
Field services equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives (in years) | 2 years | |
Field services equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives (in years) | 10 years | |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 66,340 | 63,423 |
Vehicles | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives (in years) | 4 years | |
Vehicles | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives (in years) | 7 years | |
Lease equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 141,932 | 138,781 |
Estimated useful lives (in years) | 10 years | |
Buildings and facilities | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 149,992 | 149,876 |
Buildings and facilities | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives (in years) | 5 years | |
Buildings and facilities | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives (in years) | 30 years | |
Mineral reserves | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 76,823 | 76,823 |
Estimated useful lives (in years) | 25 years | |
Office equipment and furniture | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 12,093 | $ 11,836 |
Office equipment and furniture | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives (in years) | 2 years | |
Office equipment and furniture | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives (in years) | 7 years |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 USD ($) property | Mar. 31, 2023 USD ($) property | Dec. 31, 2023 USD ($) property | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 110.9 | $ 88.4 | |
Depletion | 0.3 | 0.3 | |
Land available-for-sale | 1.2 | 1.1 | $ 0.7 |
Real estate, building, held-for-sale | $ 2.8 | $ 6.2 | $ 0.8 |
Number of property available-for-sale | property | 2 | 2 | 1 |
Gain (loss) on sale of properties | $ 0 | $ 0 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||
Amortization of right-of-use assets | $ 8,911 | $ 2,236 |
Interest on lease liabilities | 3,373 | 694 |
Operating lease cost | 9,035 | 10,574 |
Variable lease cost | 1,767 | 1,246 |
Short-term lease cost | 1,022 | 2,051 |
Total lease cost, net | $ 24,108 | $ 16,801 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash paid for amounts included in measurement of liabilities: | ||
Operating leases | $ 9,055 | $ 9,877 |
Finance leases | 12,627 | 2,936 |
Right-of-use assets obtained in exchange for new lease liabilities: | ||
Operating leases | 4,242 | 4,562 |
Finance leases | $ 30,138 | $ 2,789 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rates (Details) | Mar. 31, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
Operating lease, weighted average remaining lease term | 4 years 2 months 12 days | 4 years 3 months 18 days |
Finance lease, weighted average remaining lease term | 3 years 3 months 18 days | 3 years 3 months 18 days |
Operating lease, weighted average discount rate | 6.10% | 6% |
Finance lease, weighted average discount rate | 7.90% | 8% |
Leases - Finance and Operating
Leases - Finance and Operating Leases Maturity (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Finance | |
Remainder of 2024 | $ 43,633 |
2025 | 58,721 |
2026 | 60,803 |
2027 | 31,915 |
2028 | 23,539 |
Thereafter | 7,021 |
Total lease payments | 225,632 |
Less imputed interest | 31,908 |
Total | 193,724 |
Operating | |
Remainder of 2024 | 24,083 |
2025 | 30,609 |
2026 | 19,423 |
2027 | 9,538 |
2028 | 2,574 |
Thereafter | 12,569 |
Total lease payments | 98,796 |
Less imputed interest | 11,089 |
Total | 87,707 |
Operating lease, residual value of leased asset | $ 14,800 |
Leases - Carrying Amount of Equ
Leases - Carrying Amount of Equipment Leased to Others (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
Equipment leased to others - at original cost | $ 141,932 | $ 138,781 |
Less: Accumulated depreciation | (31,301) | (25,819) |
Equipment leased to others - net | $ 110,631 | $ 112,962 |
Leases - Lessor, Operating Leas
Leases - Lessor, Operating Lease, Payment to be Received, Maturity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||
Remainder of 2024 | $ 6,353 | |
2025 | 5,412 | |
2026 | 2,239 | |
2027 | 0 | |
2028 | 0 | |
Thereafter | 0 | |
Total | $ 14,004 | |
Operating lease, lease income, statement of income or comprehensive income [Extensible Enumeration] | Total revenue | Total revenue |
Revenue from operating leases | $ 9,100 | $ 8,600 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Payables and Accruals [Abstract] | ||
Accrued vendor invoices | $ 101,294 | $ 99,620 |
Operations accruals | 52,252 | 61,150 |
Accrued benefits and other | 81,349 | 100,296 |
Accrued Liabilities | $ 234,895 | $ 261,066 |
Debt - Summary of Debt (Details
Debt - Summary of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 166,000 | |
Revolving Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 166,000 | $ 140,000 |
Debt - Narrative (Details)
Debt - Narrative (Details) $ in Thousands | 3 Months Ended | ||||
Jan. 23, 2023 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Sep. 19, 2017 USD ($) agreement | |
Debt Instrument [Line Items] | |||||
Proceeds from borrowings on line-of-credit | $ 573,000 | $ 242,000 | |||
Long-term debt, gross | 166,000 | ||||
Revolving Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 166,000 | $ 140,000 | |||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Number of credit agreements | agreement | 2 | ||||
Weighted average interest rate | 7.50% | 7.60% | |||
Revolving Credit Facility | ABL Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 250,000 | ||||
Revolving Credit Facility | ABL Credit Facility | Revolving Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Proceeds from borrowings on line-of-credit | $ 106,700 | ||||
Weighted average interest rate | 7.50% | ||||
Maximum borrowing capacity | 525,000 | ||||
Current borrowing capacity | $ 465,100 | ||||
Long-term debt, gross | $ 166,000 | ||||
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% | ||||
Line of credit facility, covenant compliance, excess availability threshold, amount | $ 52,500 | ||||
Revolving Credit Facility | ABL Credit Facility | Revolving Line of Credit | Minimum | |||||
Debt Instrument [Line Items] | |||||
Unused capacity, commitment fee percentage | 0.25% | ||||
Revolving Credit Facility | ABL Credit Facility | Revolving Line of Credit | Minimum | Secured Overnight Financing Rate (SOFR) | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.50% | ||||
Revolving Credit Facility | ABL Credit Facility | Revolving Line of Credit | Minimum | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.50% | ||||
Revolving Credit Facility | ABL Credit Facility | Revolving Line of Credit | Maximum | |||||
Debt Instrument [Line Items] | |||||
Unused capacity, commitment fee percentage | 0.375% | ||||
Revolving Credit Facility | ABL Credit Facility | Revolving Line of Credit | Maximum | Secured Overnight Financing Rate (SOFR) | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2% | ||||
Revolving Credit Facility | ABL Credit Facility | Revolving Line of Credit | Maximum | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1% | ||||
Revolving Credit Facility | Term Loan Facility | Revolving Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 175,000 | ||||
Revolving Line of Credit | Term Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Remaining borrowing capacity | 104,700 | ||||
Line of credit facility, accrued interest | 900 | ||||
Payment for debt extinguishment or debt prepayment cost | $ 1,100 | ||||
Letter of Credit | ABL Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Remaining borrowing capacity | $ 291,700 | ||||
Letters of credit outstanding, amount | $ 7,400 |
Debt - Maturities of Debt (Deta
Debt - Maturities of Debt (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Debt Disclosure [Abstract] | |
Remainder of 2024 | $ 0 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 | 166,000 |
Thereafter | 0 |
Long-term debt, gross | $ 166,000 |
Fair Value Measurements and F_3
Fair Value Measurements and Financial Instruments - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 USD ($) property | Mar. 31, 2023 USD ($) property | Dec. 31, 2023 USD ($) property | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Land available-for-sale | $ 1,200 | $ 1,100 | $ 700 |
Real estate, building, held-for-sale | $ 2,800 | $ 6,200 | $ 800 |
Number of property available-for-sale | property | 2 | 2 | 1 |
Assets held-for-sale, long lived, fair value disclosure | $ 3,400 | $ 800 | |
Cash equivalents measured at fair value | 300 | 300 | |
Cash and cash equivalents | $ 23,788 | 36,784 | |
Customer payment terms | 45 days | ||
Allowance for uncollectible accounts | $ 939 | $ 939 | |
Customer A | Accounts Receivable | Customer Concentration Risk | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Concentration risk, percentage | 15% | ||
Customer A | Total Revenue | Customer Concentration Risk | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Concentration risk, percentage | 15% | ||
Customer B | Total Revenue | Customer Concentration Risk | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Concentration risk, percentage | 12% |
Fair Value Measurements and F_4
Fair Value Measurements and Financial Instruments - Schedule of Allowance for Doubtful Accounts (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Allowance for credit losses on December 31, 2023 | $ 939 |
Credit losses: | |
Current period provision | 0 |
Amounts written off, net of recoveries | 0 |
Allowance for credit losses on March 31, 2024 | $ 939 |
Equity - Narrative (Details)
Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||||||
Mar. 06, 2024 | Mar. 06, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Jan. 23, 2024 | Dec. 31, 2023 | Jan. 24, 2023 | Jul. 25, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock, dividends, per share, declared (in dollars per share) | $ 0.07 | $ 0.05 | ||||||
Remaining authorized repurchase amount | $ 391.8 | |||||||
Stock repurchase, accrued excise tax | 0.3 | $ 0.5 | ||||||
Accrued Liabilities | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock repurchase, accrued capital expenditures | $ 2.2 | $ 1.9 | ||||||
Shares of Class A Common Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock repurchase program, authorized amount | $ 750 | $ 500 | $ 250 | |||||
Stock repurchased and retired during period, shares (in shares) | 1,480,084 | 5,166,730 | ||||||
Stock repurchased and retired during period, value | $ 30.2 | $ 74.6 | ||||||
Stock repurchased and retired during period, average price per share (in dollars per share) | $ 20.38 | $ 14.45 | ||||||
Shares of Class A Common Stock | Common Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock, dividends, per share, declared (in dollars per share) | $ 0.07 | $ 0.05 | ||||||
Dividends, common stock, cash | $ 11.6 | $ 8.8 | ||||||
Par value reduction (in dollars per share) | $ 0.01 | |||||||
Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period of awards | 3 years | |||||||
Share-based compensation expense | $ 7.3 | $ 7.2 | ||||||
Unamortized compensation expense | $ 40.7 | |||||||
Weighted average remaining vesting period | 2 years | |||||||
Performance Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period of awards | 3 years | |||||||
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 payable | $ 1.3 | $ 1 |
Equity - Restricted Stock Units
Equity - Restricted Stock Units and Performance Restricted Stock Units (Details) | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Restricted Stock Units | |
Number of Units | |
Outstanding at beginning of period (in shares) | shares | 2,985,218 |
Granted (in shares) | shares | 540,570 |
Vested (in shares) | shares | (72,155) |
Forfeited (in shares) | shares | (36,133) |
Outstanding at end of period (in shares) | shares | 3,417,500 |
Weighted Average Grant Date Fair Value per Unit | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 13.90 |
Granted (in dollars per share) | $ / shares | 17.52 |
Vested (in dollars per share) | $ / shares | 14.59 |
Forfeited (in dollars per share) | $ / shares | 13.54 |
Outstanding at end of period (in dollars per share) | $ / shares | $ 14.46 |
Performance Restricted Stock Units | |
Number of Units | |
Outstanding at beginning of period (in shares) | shares | 1,339,568 |
Granted (in shares) | shares | 336,682 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Outstanding at end of period (in shares) | shares | 1,676,250 |
Weighted Average Grant Date Fair Value per Unit | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 13.49 |
Granted (in dollars per share) | $ / shares | 17.36 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Outstanding at end of period (in dollars per share) | $ / shares | $ 14.27 |
Net Income per Share - Schedule
Net Income per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator: | ||
Net income attributable to Liberty Energy Inc. stockholders | $ 81,892 | $ 162,655 |
Denominator: | ||
Basic weighted average shares outstanding (in shares) | 166,325 | 176,569 |
Basic net income per share attributable to Liberty Energy Inc. stockholders (in dollars per share) | $ 0.49 | $ 0.92 |
Numerator: | ||
Net income attributable to Liberty Energy Inc. stockholders | $ 81,892 | $ 162,655 |
Effect of exchange of the shares of Class B Common Stock for shares of Class A Common Stock | 0 | 70 |
Diluted net income attributable to Liberty Energy Inc. stockholders | $ 81,892 | $ 162,725 |
Denominator: | ||
Basic weighted average shares outstanding (in shares) | 166,325 | 176,569 |
Effect of dilutive securities: | ||
Restricted stock units (in shares) | 5,116 | 4,433 |
Class B Common Stock (in shares) | 0 | 86 |
Diluted weighted average shares outstanding (in shares) | 171,441 | 181,088 |
Diluted net income per share attributable to Liberty Energy Inc. stockholders (in dollars per share) | $ 0.48 | $ 0.90 |
Income Taxes (Details)
Income Taxes (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Jan. 17, 2018 property | |
Operating Loss Carryforwards [Line Items] | ||||
Effective combined income tax rate | 24.40% | 25.10% | ||
Income tax expense | $ 26,478 | $ 54,483 | ||
Deferred tax liability | 102,340 | $ 102,340 | ||
Number of tax receivable agreements | property | 2 | |||
Increase in deferred tax asset | 7,800 | |||
Total liability under TRA | 0 | 12,060 | ||
Payable pursuant to tax receivable agreements | 75,027 | 112,471 | ||
Tax Receivable Agreement | ||||
Operating Loss Carryforwards [Line Items] | ||||
Total liability under TRA | 112,400 | 117,700 | ||
Taxes payable, current | 37,400 | 5,200 | ||
Payable pursuant to tax receivable agreements | 75,000 | $ 112,500 | ||
Tax Receivable Agreement | Shares of Class B Common Stock | Common Stock | ||||
Operating Loss Carryforwards [Line Items] | ||||
Deferred tax asset, net | 700 | |||
Total liability under TRA | $ 600 | |||
Payments for tax receivable agreements | $ 5,200 |
Defined Contribution Plan (Deta
Defined Contribution Plan (Details) - 401(k) Defined Contribution Retirement Plan - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Employer matching contribution per one dollar of employee contribution | $ 1 | |
Maximum annual contribution per employee, percent | 6% | |
Contributions made by the employer | $ 8,700,000 | $ 7,700,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Jan. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Related Party Transaction [Line Items] | ||||
Total revenue | $ 1,073,125 | $ 1,262,077 | ||
Unbilled revenue (including amounts from related parties of $51 and $13,379, respectively) | 219,389 | $ 188,940 | ||
Prepaid and other current assets | 94,952 | 124,135 | ||
Interest income | 478 | 373 | ||
Related Party | ||||
Related Party Transaction [Line Items] | ||||
Total revenue | 22,567 | $ 29,757 | ||
Unbilled revenue (including amounts from related parties of $51 and $13,379, respectively) | 51 | 13,379 | ||
Accounts receivable, after allowance for credit loss, current | $ 0 | 17,345 | ||
Schlumberger | OneStim | Common Stock | ||||
Related Party Transaction [Line Items] | ||||
Number of shares issued in business acquisition (in shares) | 0 | |||
Shares of Class A Common Stock | ||||
Related Party Transaction [Line Items] | ||||
Stock repurchased and retired during period, shares (in shares) | 1,480,084 | 5,166,730 | ||
Stock repurchased and retired during period, value | $ 30,200 | $ 74,600 | ||
Stock repurchased and retired during period, average price per share (in dollars per share) | $ 20.38 | $ 14.45 | ||
Schlumberger | Related Party | ||||
Related Party Transaction [Line Items] | ||||
Purchases from related party | $ 1,700 | |||
Schlumberger | Shares of Class A Common Stock | ||||
Related Party Transaction [Line Items] | ||||
Stock repurchased and retired during period, shares (in shares) | 3,000,000 | |||
Stock repurchased and retired during period, value | $ 45,000 | |||
Stock repurchased and retired during period, average price per share (in dollars per share) | $ 15 | |||
Franklin Mountain Energy, LLC | Related Party | Hydraulic Fracturing Services | ||||
Related Party Transaction [Line Items] | ||||
Total revenue | $ 11,500 | $ 23,300 | ||
Unbilled revenue (including amounts from related parties of $51 and $13,379, respectively) | 100 | 13,400 | ||
Accounts receivable, after allowance for credit loss, current | 0 | 12,100 | ||
Liberty Resources LLC | Affiliated Entity | Hydraulic Fracturing Services | ||||
Related Party Transaction [Line Items] | ||||
Total revenue | 11,100 | 6,500 | ||
Accounts receivable, after allowance for credit loss, current | 5,200 | |||
Prepaid and other current assets | $ 14,800 | |||
Interest income | 500 | $ 400 | ||
Liberty Resources LLC | Successor Entity | Hydraulic Fracturing Services | ||||
Related Party Transaction [Line Items] | ||||
Accounts receivable, after allowance for credit loss, current | $ 5,500 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 USD ($) T | Dec. 31, 2023 T | |
Schlumberger | ||
Loss Contingencies [Line Items] | ||
Shortfall fees, remainder of 2024 | $ 3.1 | |
Shortfall Fees | ||
Loss Contingencies [Line Items] | ||
Shortfall fees, remainder of 2024 | 16 | |
Shortfall fees in 2025 | $ 5.4 | |
Proppants | ||
Loss Contingencies [Line Items] | ||
Minimum mass required (in tons) | T | 1,108,782 | 1,854,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Proppant, Chemical and Rail Car Commitments (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2024 | $ 84,498 |
2025 | 12,960 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
Thereafter | 0 |
Other commitment | $ 97,458 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | 3 Months Ended | ||||
Apr. 16, 2024 | Mar. 06, 2024 | Mar. 06, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Subsequent Event [Line Items] | |||||
Common stock, dividends, per share, declared (in dollars per share) | $ 0.07 | $ 0.05 | |||
Shares of Class A Common Stock | Common Stock | |||||
Subsequent Event [Line Items] | |||||
Common stock, dividends, per share, declared (in dollars per share) | $ 0.07 | $ 0.05 | |||
Shares of Class A Common Stock | Common Stock | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Common stock, dividends, per share, declared (in dollars per share) | $ 0.07 |