LBRT - Earnings call transcript Q1 2018

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Operator

Good morning, and welcome to the Liberty Oilfield Services First Quarter 2018 Earnings Conference Call. All participants will be in listen-only mode [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. Please note this event is being recorded.

Some of our comments today may include forward-looking statements, reflecting the company's view about future prospects, revenues, expenses or profits. These matters involve risks and uncertainties that could cause actual results to differ materially from our forward-looking statements. and company's certain on are risks the earnings the are conditions detailed reflect company's to filings. subject and release statements beliefs, current based that in These public other uncertainties that

and reconciliation comparable comments our for and measures, capital calculation -- net return GAAP presented sir. may ahead, non-GAAP of pretax on measures employed, Chris also turn measures. release, its and of as company's are to conference are like companies. employed, be on which the adjusted the include non-GAAP and CEO, and including financial Our adjusted Wright. call, operational to website. today over the not Please EBITDA of now These Liberty's return capital EBITDA A I is available EBITDA, go discussed on similar measures on pretax in include would income-to-EBITDA earnings a not substitute this to

Christopher Wright

thank take challenges beyond logistics I quarter. and unusual above us. and encountered you during joining to everyone, and weather winter team from going issues. entire operational significant moment morning, our We a Good for for to arising the like sand would thank

basis. per and team active income Adjusted our to together our record EBITDA. average on the quarter and deliver for annualized quarter, or EBITDA However, the million In frac was million first revenue revenue $XX.X million came $XXX million. was adjusted net $XX $XXX an was fleet

appropriate. growth company. cash in flow returning returns-driven, aim combination organic cash return, as at value our are We of reinvesting shareholders to compound rates our We to shareholder high by with

XXXX. for grew to the capital XX-month trailing full up XX%, employed Our from return on XX% year pretax

any weather our suppliers shutting caused But experienced X In February, team, execution operations. relationships Despite we fleet we challenges to with logistics in across our our temporarily and without from sand. March, There due our basins, and and cases, also and to the and these supply second returned generated we start. in due by operational sand January The excellent operating sand the fleet challenges excess by down adjusted an of rail challenges, expected levels per first downtime industry-wide chain average to logistic quarter to unusual Throughput annualized profitability organization. presented throughput EBITDA waiting the we deep on challenges. reducing successfully all were million significant off $XX quarter deft across see is navigated dedicated some to of and winter interruptions. these

of The We have customer strong, our are returned supply, our excited remainder XXXX. with in the remains drive in to and wireline frac water challenges increases and With the we market continue entire what mirror, for to rearview across we see fleet. winter normal. wellheads throughput

day more relationships every All our via EBITDA customers with to tandem procedures, in results equipment. are systems we are Permian, of per our the get from In our with and metrics done and are pleased year's the us we QX. to current adjusted surpass last the In fleet quarter, deepening improved we customer coordination, seeing. working expect

very deployed we top-tier market a is and under Permian our quarter, first arrangement. sixth Permian strong. The tight pricing the During remains fleet frac fleets, dedicated high-efficiency for

partners for Permian find over of We months, same to up share of that the new of gains a seeing logistics efficiency. the over the who began full enhance than throughput typically are the basin throughput fleets our crews, efficiency our train XX efficiency to A to as end the XXXX. we in importantly, we and We profitability basin. efficiency, passion operations X XXXX. at increase period across and quarter and third right ramps and libertize in continue will our throughput Eagle price, course Ford in More meaningful the so believe more and the

that pleased customers, the hit on and both stride. are have begun a with Ford one to quarter, entering their multiple are fleets dedicated Eagle current basis, working We

design focus with in averaged our of that's continued We and maintenance equipment than less fleet. first than Our down pump quarter. the equipment any ownership, X% technology-driven pay the total predictive on time, to goal dividends per cost achieving of of X lowest at less

they than day. the are major XXX on demand markets more of In continuous and fleet, fact, demand year X,XXX has achieved than the our oldest balance. million oil time seen completion one XX this Bakken. stages this on its U.S. up reflect incremental oil pumping The oil the is a improvements almost frac original days projected, X.X move and rebuild barrels towards year and just of minutes in the oil nonstop The be lower major million of just March, a worldwide supplier prices which cycle, growth robust, per barrels of U.S. coming year's were will X.X [ph] roughly supply first record inventories in last normalization. and major in pumping ball-and-sleeve ago, of

field appears customers partner oil strong. for to predominantly crews. growth, out different satisfy. is for although for Tier more fleets Liberty market a reliable a We where frac X market fleets need X Tier loosened also a X cash remains crews the, Tier closely market flow. have still X requests tight. is intriguing market crew then got Our The there I this are far of have frac robust, to The, to we I frac get bit, appears conditions driving can versus related somewhat market production Tier or The be

deployment capital XXXX for unchanged. remain plans Our

For the first fleets. XX we active frac quarter, averaged

first XXst fleets previously arrangements the XXth under existing with quarter dedicated customers. As announced, we our deployed and during

fleet XXnd hand the Michael and the staffed second XXrd of end deploy We at call on financial of to at track the I fleets quarter. quarters, our discuss over third that respectively. remain will Stock, the the our anticipate fourth our to deployment and now We end the XXth and to our fleet CFO, of have results.

Michael Stock

morning. Good

and results. and revenue Liberty EBITDA. XXXX entire quarter's the The first team deliver pulled quarter operational record overcome to our with pleased are together We challenges first

The grew revenue to XXXX fourth XXXX. $XXX from XX% million $XXX the million in first quarter of quarter

$XX million compared in $XX million quarter. fleet increased $XX totaled the from For quarter. adjusted in quarter the $XX.X fourth Net million to quarter. in net first fourth $XX.X X% fourth to per quarter million the first million first in million to of increased income EBITDA income compared adjusted the $XXX the EBITDA Annualized the in quarter to

early First our quarter $X the public with results million expense to conjunction included of in nonrecurring debt onetime a offering. initial related retirement

tax First totaled was $X not Liberty tax initial offering. to public income million. quarter subject its prior to income expense

$XX EBITDA of million. adjusted annualized is excluding for In fleet million announced, totaled fleet, EBITDA expected day, cash expected fleet. flows was are drive per and commitments. and as sustaining cash And our as per per metric per Sustaining from an administrative company General said, We metric the fleet we returns-focused of the investment quarter. cash CapEx cycle to will at for fleet fleet per million expected annual in fleet. activation quarter, capital profitability our is $XX.X a year expense, an approximately million maintenance use As we we and this use annual define our flow have capital costs, a measure sustaining the input $X.X less deciding fleet to returns. $X.X previously through annualized we important in the the flow the future end first the maintenance is

stock-based finalize include equity quarter. did not did G&A after plan the compensation compensation our expense until quarter as not we first First

tax nonrecurring fees per associated We compensation, excluding retirement million, $X to totaled $XX portion million, average million and the with Interest expense, this quarter, our fleet expense from XXXX. $X noncash, what for million which start-up including expect of proceeds the the G&A, for quarter. have anticipate $X expenses. a expense share-based totaled million remainder first expense XXXX. relating remainder $X been to of basis a early Interest of of with expense, to for for is million loan in the onetime of excluding $XX would we the on our term quarter the is including quarterly nonrecurring This IPO. line Income

income. be the of we tax reported For of to our XXXX, expense XX% remainder pretax expect approximately net income

share ABL our quarter total of million fully effective rate the earnings XX%. cash we of the per $XX under credit facility; credit Chris $XXX million. under we We open At be diluted For before balance tax ended I borrowings for debt that, calculation, facility, will With quarter and total the the was turn liquidity, up a end, back to with million. including would and availability Q&A. $XXX no had call the

Christopher Wright

Thanks, Michael.

with to can the we returns always cash and control, organization, gross main we are team in and significant interest. earnings-focused our such that As compensation shareholder drivers aligning the Throughout we company margin. of variable related said, profit members throughput compensation a have believe as and have

strengthening to by driven partnerships barrel the produce will based at to make and will throughput, share. a majority shareholder increase with cycle our ultimately revolution for landscape. that that We interests decisions suppliers structural believe changing year call to worked has the Board thank the value shale our Q&A. capital team operational to and accretion, XXXX our on sake. growth world's forward team, this now cost variable will executive look to tirelessly whole to that on lowering is rather decided by I than the the advance believe the efficiency metrics: Liberty cash working back of reinforces defined growths our start continuing of energy customers, short-term We operator earnings the be long-term, I a and who be customer hand our execution. compensation commitment oil. that to alignment employed return and and per to We provides For X want to together through

Operator

[Operator Sean JPMorgan. go Thank sir. Please question Meakim you. come first Instructions] from from ahead, will Our

Sean Meakim

Hey, good you. morning. Thank

Christopher Wright

Good morning, Sean.

Sean Meakim

I So start. to Chris, guess,

look on allocation is pretty curious could XXXX our sustaining and in on cash yield have Just lead how decisions, those et numbers year flow you as given priorities to change? unchanged, equipment I'm make capital through substantial capital but for XXXX thinking, plan times you your the you cetera. 'XX. need allocation I'm

And cash? be so Or could those adequately if market is solid, begin the that to realistic all it think you'll shift? to reinvest to priorities able stays

Christopher Wright

of adequately that all think it's in we I invest unlikely flow very XXXX. cash our will

near all nowhere cash our will reinvest cash all We -- XXXX. our of of in invest in flows flows

So for next to percent and percent move our in of a cycle, greater growth. return mode in the reinvested year, a decreasing likely into flow a we see as to shareholder you're cash further

Sean Meakim

sense give think transparency. great. a you over is I time? to that there clarity more Okay, the And of you out will little timing, market play as a guess, How or plan

Christopher Wright

late towards with of our a constant view what customers. We're XXXX. be have for Probably, will a likely dialogue growth in in that year. we'll say late are this I'd CapEx plans year clearer this -- the end

Sean Meakim

for us dedicated decisions? so Understood. dialogue, prioritizing the the so that customers through speaking spot that those And Maybe, between difference those those those a looking you little you fleets. Thinking then of -- how and in are context fleets versus are I decisions highlighted customer conversations could are market going? give discussions of for, of types are really of how about more kind what XX XX, evolving guess

Christopher Wright

the It's inventory, of partnership and the very relationship, always combination -- commitment of going. where the have. of and to the We are it's efficiency a XX firm fleets depth history we XX the

We have multiple be well exactly will it advance arrival. that very parties resolved And in interested will go XX. of its in where fleet

Sean Meakim

enough. Thanks feedback. for Fair Okay. the

Christopher Wright

Thank you.

Operator

from Jud is Fargo. Wells Please ahead. question next Bailey go Our from

Jud Bailey

through just to to of is regarding if that to -- give 'XX starting up after us think reopeners? us the the you if Wanted some price much projecting, how the up move the quarter. just or regaining third pieces on Eagle Michael, guidance of How per in levels? in some it Chris, Maybe good of kind help the quarter how fleet quarter? on the just second is kind the Ford? increase in could efficiency surpassing you're morning. about profitability of follow walk due think Thanks, How maybe second for of to up about that moving EBITDA much

Christopher Wright

increases it was think, -- will both. of the a bet. I reporting in little the the You higher than we're year. were higher it QX again, not in EBITDA controls. per QX, by largest sequential year. should last of start It's clarify, Liberty's in challenges rate had the and of driver most fleet from at of far be in It QX. But now, a pricing QX throughput. was the in run this this We in QX little Like-for-like, of quarter to I will again bit be was But increase and efficiency challenges higher the QX in

frac customer takes and the -- Our runs takes care wireline, of wellheads, water. supplies

the some challenges So beginning of at if then down, we down. unusual this those QX. things slow But there slow were just

weather normal to think I Now, back conditions. we're

course, strong throughput what our the profitability, it. it's our rising. there's those increased are will drive driver dominant issues, of Of always but and it's is across our That's normal. normal, And fleets performance

Jud Bailey

wanted Okay. past, on follow And you be cash of the priority terms probably then, think guys a dividend. talked any cash? returning a shareholders, like I In your my thoughts. still on or I would follow-up on about special prefer other to Sean's just a something an to is of in more avenue return of your Is get you dividend question. have more permanent type versus the to that update

Christopher Wright

I think choices Well, share there the is third buyback.

mechanism way is which we of obviously, looks and what return to are stock really most cycle, one be so what where right depends in And to capital on is price those the the shareholders. effective to our the

that. we closer on that concrete like -- to think I something more we'll obviously, as doing get get

likely think, cash in return will shareholders XXXX. I think I -- before, we a see said to meaningful it's it's you as of

Jud Bailey

Thank back. it I’ll turn Great. you.

Christopher Wright

Jeff. Thanks,

Operator

Next go is & Simmons Company. Daniel John ahead. question from from Please

John Daniel

guys. and Hey, results commentary. Nice nice

can two the rank various Chris. When factors look you Tier X me, and ones tiers? frac players, alluded from separate Just guys, for Tier you X quick you like the at us Tier the really, believe to and which you the X

Christopher Wright

in a operators as supply are doing what runs from water solutions the basic safe and upfront Technology, Look, as execute as far having reliable, that delivering. is you commodity fast that one differential materials most a operations; perform the a deliver doing frac perform as work; what can to to quality -- fleet. ability throughput operator; the say be and field, frac

of really lead think there's and things technology, that quite have quite -- I Tier gets There's of customer. location a Do equipment, So you for range just a number but for X partnership to a design, delivered quality on partnership. a of not the frac of what the optimization?

John Daniel

seamless call rude -- a it ever -- you the how mean, lower where but consolidation X great -- you are out of, could think makes quality Tier being you a acquisition how it I it I'm sense, guys from Tier if Is job you I it'd done I X, lower you assets. Okay. know have libertize Sanjel with wondering if just an [extend] would be Like to think competitors, that where going. playing everything. say of see I'm will,

Christopher Wright

even meaningful definitely not the X, upgrades probably to a number hardware that equipment. had, they was Yes, Tier had one, core might well, assets, to look, argue, Sanjel's good Tier were it. do not X. They There

As we you're it well aware, we spent more upgrading than spent buying it.

operate Ron I So way a of them there, chunk half. deliver the -- together, for maybe fleets is there, culture, safe, fleets maybe but a high-quality half it's But going that they than the can We've less piece ownership bigger don't with of fleets know, high-efficiency factor not certainly equipment what's than -- even we of the communicate, the I, people the take on. out just speak of better it's could, the free. way libertize, operations. There's people, they the can got And it's probably throughput deliver good we investment, the out to really, not humans. take wouldn't way with

We have businesses. not we've an just -- acquirer of been

John Daniel

Okay, of One operational other fair enough. sort one, here.

set, have Colorado? seen Just opportunity pay any for you to fleets it? help that from willing Just, understand quiet they us are to interest of outside and bring clients

Christopher Wright

there's the X. In basins operations it's also let lower, Basin, factor. other you towns near near percent are an Marsalis, additional it's But -- There in Absolutely, a DJ it's When but absolutely. and can typical voice, higher fleet. the the you in frac more people can nowhere People high and health safety. communicate you foremost, can have and know and This, going in significant effectively much is a so a a a where fleet in normal on. first you what's then talk on location, Utica.

The more helps much going You're efficiency. communicate on. aware of also to what's ability

So interest for yes, Quiet customers I'd say operate. basin been every from significant we there's in Liberty Fleets

John Daniel

guys. quarter I Okay. Great had. That’s all

Christopher Wright

Appreciate it. John. Thanks,

Operator

& go from George sir. is The Pickering next from Holt. question Tudor, O'Leary ahead, Please

George O'Leary

guys. Morning,

Christopher Wright

Morning, George.

George O'Leary

a at not modeling revenue XXnd much really Just helpful. the we fleet at trying second from quarter, or of from early -- that of about when that, impact June? exactly comes second coming that a that should think end sorry, would perspective, fleet end curious, quarter -- June, gauge to the of coming super that be just so Just -- in, the this late

Christopher Wright

model I'd George, that mid-June.

earnings QX I it's think will it's We'll the of but kind sort of so -- small have QX. of a will costs in, effect. -- full hit QX. in utilization relatively in start-up kick The power it the

George O'Leary

the That's biggest just that where in in very if your second longer we the kind getting those quarter provided versus of the areas. Permian times the some Basin versus rate and Basin contrast the of and you're contrast fracs equipment? as of frac in of help the helpful. maybe, profitability, you're helpful And legacy the the change other couldn't you some snuff particular, rest And and of on compare of in quarter? really the kind of pump the frac Permian commentary with you up seeing wonder, nature head then, dynamics Texas different the into last to seeing guys generally some Permian then fleets, fleets, areas? Is pricing compare I it

Christopher Wright

bet. You

say you can in to highest and profitability, the and throughput. around the a we style, currently, probably work the know Eagle we're that for and together trying again, If in drive efficiency you rate new change last price, for quarter, term shopping Ford. find it's to basin. of We're spot not want our And partner we're brand long

different for prospecting we're So people.

-- basin, there's area basin, have in significant as original fleet ago new profitability called Eagle Ford a reduced out ago. in change the new necessarily arrival profitability. today fleet a had so we new months X in than in but X an not it that going to And a or and that's the So a new a months

say, I rate the that's, So greatest would change. of

higher the bit operators, than other Permian efficiencies but rapid As we it's because has growth, all the the a like-for-like, water that, it's or little lower marginal and coming basins. the mentioned just throughput supply before, crew on, wireline it margin, has lower pricing market, and experienced on

throughput a off some fully the there, that. third -- of it's at parties still suffer tip growth. has you But pricing inefficiency So more rapid and offset from

would had saying fastest the if profitability, that I the Permian if with be economics say, likely he Michael I'm second me Permian. growth thinks in -- good say, I'd to basin it incorrectly. But the already. in are will So second kick the the

yes, And So look -- say, you we in done continuing get certainly. new operate. but to profitability to QX, we'll probably day. I see in is And every out would if finding QX, a basin and innovate that more ways increased

Michael Stock

just George, And efficiency the average basins. frac our I is differential the it the to as in is Permian versus think the across fleet, say, same other

Permian our we may, whereas, get fleets. be done -- of So fleet a than day of in because forces, might slightly some outside other less the

you between fleet average obviously say, the differential As Liberty and fleet the frac frac is the same. is but the pricing there

whole think itself that we going continue in differential. up a of we'll the come to basin efficiency, is maintain that So and to bit little

George O'Leary

helpful. Good for very quarter. Thanks guys. That’s Great. color the

Michael Stock

Appreciate Thanks. it.

Operator

Please from Our from next question Gruber [Operator sir. Instructions] go Scott Citigroup. is ahead,

Scott Gruber

Yes. Good morning.

Christopher Wright

Scott. Morning,

Michael Stock

Morning, Scott.

Scott Gruber

comp hear. variable great the applaud do I formula, So to it's

a investors the trying go in speculative concern companies order Another is out capacity to on today and frac marketplace of basis. they're to

grow shift contract demanding to increasing focused, fleets. you're fees? a contract a scale receiving over as But up you're with to growth achieving some time where capital? here, You you customers after or mode deploy only Is from it return a you guys are XX

Christopher Wright

never a fleet first find then spec Scott, a it. I'll we've Well, home and for we'd ordered on hope of say,

is customers, our for there downturn, of -- on it's that of of all ordering kept long and Even to last new is We start our fleets fleet discussions of based with All going dialogues. where company, all our of know time. going from the fleets a through busy. the we be

doesn't them changes rig. with them. relationship employ parking a someone hoping been been the we human-focused that and fleets, cycle has little It's has with with nature find And to I different than of think than drilling the equipment radically buying not a historically shift can it bit than probably But we're a frac contract different business. it more little spec-focused the rigs. but So

We customer they somebody and So company high faced think know have for wants but with commitment. long-term us, with we fleet year can agree more. be next today, a a multiyear, we There to declines your about turnover, fully or a X to performing okay X are and the work I or that's years are careful and very a disciplined only I it's with sign quality their fleet. take-or-pay contract some, point, going order where don't a for ordering a if

Scott Gruber

option your and should at get to that your I performance, to it uneven Got there's frac it. in very able would viable the in and that operators, dynamic give -- record contracts complexity track to that, market. not crew. curious, you lock strikes comments. you're X just and just to this that a site, where with continue the job crews to your attests to in be from that And is you mean, the crew that uneven I'm that able of their obviously, to well such would given just go me customers contract? commitment want commitment performance, market But get in is going Tier the that It are you're you this work like execute want seems

Christopher Wright

doable. are They

We have fleets. contracts like that for

a our the are we our is other do tradeoffs? we four keep outperforming the and drop So work are fleets some we best decline the it decided, want best decline, it large that fleets will of they've input that fleets We situation and no. where dialogue, we fleets. materials half, will customers' guys will be costs of down. all to a balance softened, revenues fleets, their flex comp got -- are our being the a variable will cut their our we're If could X want proactively with very going is to but decline, revenues, working for situation will customer in doable our like in $XX, those have buy and -- will and prices be we're working. mostly But model? to percent in our we that and comp, Is revenues We be We've and partner. in it variable the oil if our X

they're So our a really format. going to don't be model that I vary, X active business, in are is a drilling amount in with do some amount and wells customers. going over a or we next partnership they as in work get of long-term And returns of they to revenue what them the know rigid -- and cycle wells, it's our going X may years to vary, they're cyclical partnership. that through the this with know

Scott Gruber

you. you in contract the you of, think of flex could workload where percentage with as a a you Got way certain trade ever if to, lock kind needed? Do customer's a them

Christopher Wright

We could, we could.

we that fixed We a we want don't a we -- fully percent. dedicated loaded. arrangements isn't want if is range have that. like What of want fleet fleet, we it fully But have a loaded,

and to a keep what we So time, we work down frac they're what want fleets fleet of the the to fleets frac running for their for and to work frac that's goes want downturn last happen that want fleet we time. happened them. -- in us next loaded if fully we X in for That's X have downturn them, of XX%, we're XX% a don't X want

Scott Gruber

color, do formula. it. comp the Got applaud the and certainly appreciate again, I

Christopher Wright

industry. absolutely we discipline focus important. the on your in And It's you. appreciate Thank

Operator

Cowen. And our is next Vebs from question Please go from ahead. Vaishnav

Vebs Vaishnav

taking morning. thanks good question. my Hey, And for

guiding cost Just you over fleets. for in How guide? seems also, just the would adding clarification. report, comparison? and all fleet like you comp make fleet that when it stock $XX to is much XX to around And profitability of are apples-to-apples It in be reactivation million just XQ you included

Michael Stock

think a Yes, of fleet numbers. Vebs, around so fleet, million to on QX $X.X in the reactivation north just of of -- is $X activation we'll have probably, sort $X.XX million north million I -- sort

G&A, as stock-based ongoing include that's concerned. in an cost will our far We as compensation we're

for I And numbers those in an we're hair we're fleets you're have So that to, think, as will active expense. using right, a XX guiding second quarter. just we over that the

Christopher Wright

particular guide EBITDA over to guided to any threshold. certain fleet we And a per didn't we metric, just

Vebs Vaishnav

okay. it, Got okay,

how to decisions made? if more us and if costs and relocation down steps, Just they I'm in need What in getting like through we the slows making generally, be region, moves walk other involved you activity Permian like, wait do fleet? wait Who months, decide the would for the the month, time, the How you is to think very is cost? be employer to reallocate help can much any does before And X helpful. guys time cost? That allocations. X it you much bears

Christopher Wright

you Yes, bet.

do Yes, here catch basins, down gap redeployment, it unlikely can the here and we'll move fleet of a But I a say fleet. to softening now, Liberty. redeploying on leading in or basin. basin, pretty There XX% the of fleets sometime a would XX%, what's a Liberty and it's Liberty a that would going to amount or continue got pretty it's piles move very mostly fleet. a though that, with of First, soften, that the of The indeed unlikely move to redeployments slow if might do, if and Liberty. the unlikely to fleet and -- lead total shrunk in out would or be may it to basins out we rolled whatever, between what be work case work between over Permian a we've in -- and the of -- Permian, if very we unlikely

Michael Stock

not a same, the -- we went Generally the to costs very count Permian, X. additional the accommodation out schedule. down Even the during of additional the rig the for crews. our a on only they're They paid fleets get little still there's move bit cost, downturn, of of same Powder fleet much did into any River actually we when the permanently. Rockies' We redeployed that

Powder, the they up So we walked went the think, X, have they -- they off drove straight in started Powder redeployed fleet the -- them into they onto had south, -- didn't last to down I drove hadn't at we Permian, fracking, when location, the we the site last even within, set the fact hotels weeks, time. in that we X.X for

had So are But, on possible for fleets, the with at services fleets the a presence, what generally again, do the wheels, difficult. a which a that's and Permian, it's the downturn the XXXX more in proved to of Liberty the of Liberty-style to yes, is you beginning we demand little it's it. and contacts did where can during that first-tier redeploy we we the we if depths -- didn't basin have and

Vebs Vaishnav

That's I if If I obviously, I I think pretty X XX%, a impressive. it's think costs, And costs Tier expensive, maybe last know, X little versus Tier may. X Tier Could in Do don't you you X about for margins Tier to on returns on You cost? that make Tier XX%. get the the compensate higher on general? higher industry question, you or compare contrast X?

Michael Stock

of I fleets. you'll both a no. last those general, site that fleets mean, of Tier fleet for X have same X Pricing one the on our In built or is the we year.

as a our that I running additional Tier fleet a small there's relatively but bit of there right? is it's again, that this little fleet, amount -- a we obviously, as of is cost X mean, thinking a through building, cycle, years. when expense now a on move XX-plus this goes industry, and plays for amount, into huge we as XX-year you're and But returns-focused decision. a capital into put a company, allocation especially yes, you're returns-focused as So when the

really of the So initial that profile change return doesn't that capital that increase much.

Christopher Wright

in XX% to less that you the cost the all-in fleet And -- XX% mentioned than XX% is a increase the increase fleet.

Michael Stock

Correct.

helpful for very and That is thanks taking the question. Okay.

Michael Stock

you. Thank bet. You

Operator

turn would And, conclude back for Chris like Wright to remarks. I any our conference closing question-and-answer the will over to ladies and gentlemen, session. this

Christopher Wright

joining us dialogue Thanks, appreciate proud the and and your call growing forward Liberty in We are advancing. the today. love everyone, and energy and for the certainly see marching most technology American feedback. for interest questions importantly, And to and

Thank the do. what So you we better keep so and at industry they getting much.

Operator

for concluded. today's Thank The conference now has attending you presentation.

may your lines. disconnect You now

Liberty Energy (LBRT) 13 May 182018 Q1 Earnings call transcript