LBRT - Earnings call transcript Q1 2019

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Operator

Good morning and welcome to the Liberty Oilfield Services First Quarter 2019 Earnings Conference Call. [Operator Instructions] 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. These statements reflect the company’s beliefs based on current conditions that are subject to certain risks and uncertainties that are detailed in the company’s earning release and other public filings.

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

Chris Wright

Good morning, and us. everyone thank you joining for

long-term $X.XX. our increase teams. first XX% execute We fleets results XXXX million invest market, XX free and million returning capital, a superior the the earnings repurchase summer-like total base excellence some strong per our achieve distributions discuss are to ended success, the significant employed after pumped at shareholders. have increase strong and on sheet March cash of we pleased to with on income of continue growth chain due in XXXX, operations in We assets. to of net delivered proud invested a EBITDA asset cash to shares. of was weather, are quarterly Despite commitment winter significant future. you balance delivered of a income of the $XX challenging while XX% dividends, today flow profit months record we XX% to adjusting a our with were on performed to enabled generating on revenue efficiencies X% to our taxes $XX our gain continue sequential the increase XX% maintain for for for our capital returning quarter, our a million and in while and XX, diluted us to financial fully million of of quarter. quarter financial $XX focus facing a These before to results. of pre-tax With the organic of $XXX we and of disposal return performance returns We to form supply able shareholders and Even the and In loss share, our outstanding volume this to the cash adjusted

Our rebound our in first from experienced of fleet challenges the XXXX. XXXX quarter fourth results quarter reflect in a activity utilization the

that Northern regional has delivers, pad that move a conjunction This, both in decline of produce development driven activity us. the year, in structural We Permian high. efficiencies this our of balanced the reduction White to a Based for Liberty’s in significant is services sand due demand pricing the have the fully job decline frac of differentiated on end demand pipeline Liberty acceptable for with for average consequential fleets down on XXXX customer our in the with market utilized significant the structural meaningfully at frac fleet. in growth remains the returns dynamics like-for-like to visibility And fleet this of additional market supply without sand. we fleet customer fleet, in with it new the and inherent quarter, was at our and XXXX. and Pricing active to count frac the XX the when work XXXX. to pricing A it customers was projected was to is Tier price for the hurting quarter first ordered in to that the deployed regional taking X portion end. to our of the operator activated more long-term This from price helps

with and of relates the the of fleets Entering staffed of services. to which, the pricing first was However, cyclical reduction market frac the the additional negotiations middle not another These way a to quarter in our worked fourth part reduction but their was reductions in quarter through pricing. in fourth of customer for an of the through the re-pricing XXXX activity, structural of price frac quarter there combined rapid to nature XXXX, decline oversupply service in fleet led XXXX.

While of process that frac of we the to were fleet that oversupply frac believe continues idled. idle an to there market, being either or active be are XXXX the XX% in the in of summer fleets roughly the now of

with to deliver of As drive services. and continues to expect we frac efficiency strong high improve pricing demand across Working balances for in translates supply This frac this entire our potentially with efficiency innovation that fleets differential demand, to operational Liberty’s concert active year. customers, later fleet. performance equipment Liberty

growing We and are capital in to cash in flow while focused on our on and invest competitive technology generating free strong advantages. XXXX continuing returns

final We quarter, XX for of of dynamics. current demand fleet be the the delivery to in and are taking will it not strong the a correct deployed year. customer start was but market equipment strategic the without QX combination

challenges we the total inefficiencies. supply, schedules more to slightly through may to quarter near with rolling flat QX, Liberty than expect results Together reductions fleets remains aligning price we for down a full some in demand While there some have term. for lead in

opportunity the strengthen later returns on in and to employed. continue potential to the basin with have year. diversity, the customer quality, provides coupled results capital generating company Premium However, service the strong

Liberty’s reduce and and ongoing of throughput our long-term that fleets multiyear to investments Liberty’s strong gas-fueled to and financial in our improve the continue results, compounding customers shareholders to as to data shareholder is is are opportunities efficiency. our value work; a sheet software from returning been investments day more communities the to of key economics. are disciplined return from and our by responsive fleets growth natural committed our technology we support This design be and and and high has favorable improve at big These innovation our productive to balanced the will wells; a wherever investments continue commitment flow strategy to help returns stockholders. Liberty’s reinvesting to customers’ cash and capital safety cash we that the on operations in appropriate. range of rates improve balance focus of both we to outlook to and cost long-term of investments X. part front, where DNA These returning efficiencies quiet drive drive Liberty cycle. and On and

growth over front excited financial industry our will a by the that I benefit and and of our CFO, positive as the shale the are opportunities the to Michael brings country us for discuss in to We hand results. Stock, whole. outlook long-term call to now revolution our the and the this

Michael Stock

Good morning, everyone.

level in to their want executed challenging team fact volume are pumped we is partner. the We evidenced performance Liberty softer drives a during first by in supply in the at operations Liberty of that This history with customers as of the pleased patch the our our and midst of quarter. quarterly a chain profit the industry. the highest teams

$XXX quarter quarter. the revenue as the to increased the to assets. $XXX For of income from net Pre-tax XXXX. XX% million million loss quarter adjusting first fourth $XX the in after XX% $XX increased quarter, disposal on the after the of Net gain tax totaled of same income fourth XXXX, first for million in million

credit fourth to million to in million was of quarter. debt Annualized and we $XX EBITDA $X.X expenses expense $XX including quarter million from adjusted end, fourth the compared $XX balance the million. the totaled for $X $XX compared had our $X and totaled prior compensation facility. EBITDA increased ABL and million. in million. to in of $X fourth under first the a and million of income quarter and included compared quarter total $XX liquidity, fleet credit adjusted At in million borrowings million for to per expense stock-based net And $XX quarter quarter. increased in $XXX the $X.X the the million under no First Interest first the administrative with million $XX quarter associated ended fees quarter. million General totaled quarter. of revenue quarter million or the And X% quarter expense tax cash availability We facility, to

As to total of $X.X In and quarter, compelling to paid we returning strategy distributions and dividend of growth a to long-term returns the strong shareholders, unitholders the will we opportunities a balance shareholders when our maintaining dividends shareholders and to million. $X.XX sheet, seek distributions for best for in share we’ve discussed capital in investing follow previously, appropriate. proven first of order a per

Directors Common Stock been use announced same A XX, of XXXX, be as LLC, on Our holders date. of to A for per and in approved on Liberty Board has April the cash of will a also XX, Class unit share per XXXX, dividend XXXX. payment of June June distribution $X.XX of $X.XX paid record record which of of units X, holders to

additional January is expires XX, $XXX ‘XX. million repurchase plan Our plan, September share repurchase Board completed approved share the an Board XX, $XXX on fully January XXXX, in On XXXX, approved million January XXXX. which which in

ended recording onto In asset lease Common Topic Stock $XXX quarter XXXX, XX, share XXX. A corresponding March of and retired for The authorization lease The March million. sheet. Liberty returned new million. ASC and the accounting total impact adopted standard, remaining was XX, on of balance a Class repurchases $XX X.X XXXX, this During liability QX common XXXX, order of we of shares future as a lease $XX of was repurchased, million a use of the use million

drive XXXX, its we we how returns. positive forward Liberty for positioned continue are to into As very look to is mission best-in-class

to well And and solid for to long-term customer produce before even market. footprint, challenging open we will in diverse position Chris us returns the operations I highly geographical Our turn a call back partnerships efficient Q&A.

Chris Wright

continued the in Berra improvement actively response discipline available is our the to said, ongoing in quarters. As predictions the due a market several next returns space. future. forecast particularly frac see guess current players best in decline about idling fleet are hard, Capital gradual capacity drive But modest may many over for to that may a marketed we Yogi

market that is aged with at equipment As will of amount be of result to we season competitive. there others this remain retired horsepower portion in years. the general further few by we the likely point most is is a significant comments next significant a earnings reinvestment future, The the that to over permanently made agree that look this of the needing tend during into

we on any decisions this not are based making However, idea.

but will truly Our us are pursue we mind returns, of our gradually, independent movement. any driving focus to our frac of they for efforts for bear top a in us to Thanks differential to fruit long-term allow our company. mission that and us price increase medium These on joining very as everyday build operations is today. improvements only technologies

We up will for questions. open it

Operator

Instructions] [Operator go Sean The comes ahead. Please first Meakim of from JPMorgan. question

Sean Meakim

morning. Good Thanks.

Chris Wright

morning. Good

Sean Meakim

considering of I And am in start, the a other a is could sense be terms just your startup fleet you fleet bottom drag Chris that XX, level terms if in of I in any how profitability? guess, to give confidence from being influence quarter of that curious So per we XQ there sense the to second EBITDA even are let’s maybe I levers profitability quarter, pieces us should parts? moving for other in are quarter you what couple out in the say, of long-term, opportunities to there or the near-term, medium some a the flat get third of of the next that the but to a the pricing quarters? there, hear the are in, on trying drive environment can

Chris Wright

Well, don’t way. utilization of look driver from so really think our these fleet relatively either of I all, challenging modest improvement less perspective. in costs than start-up was They’re a a X% quarters. first are of all they’re QX the EBITDA,

EBITDA proud schedule. team customers efficiency. the yes, but we QX. ago, drove very result on be the in QX, utilization expect challenges, challenge was said higher from bottom did we say I we for notice significant utilization basically, X and had a in it’s very in story, That we And, higher QX would was prices Always to that room improvement down. that months QX, As in I than utilization on and was the fair per good in efficiency statement the that major for the obviously, but think what changes in the fleet. delivered QX average is high those, short-term of

Sean Meakim

understood. Okay,

tightened the or the over same couple I have then last it’s work. has largely as how setup gotten see the Permian, just customer and about think E&Ps. that am how specifically, year demand incremental into helped has big not factoring oversupply you curious And if of So private behavior the of situation back half today the the been last and market that of your changed folks in back sure to a has year. the you quarters for I’m the their part mix

Chris Wright

Yes.

changing long-term same. to horses Permian, in slow is have much happen in So, the partnerships, makeup customer We tend our at department. customer base very very slowly. Changes we’re the the and in Liberty in customer

So would no, there of changes to none due customers. the be different

privates, we see expectation because a with I quite CapEx are again budgets, them. meaningful about in our think, announced that is drop-off relevant publics QX comments the Your probably from

operations, have efficient highly run budget. a you people If

You little run efficiently, tend bit to spend the budget quicker. a

do better tracking further of so dynamics activity challenges tighter I won’t. in same some that is as QX. I There we oil budget think oil demand well. So, increase I from a an QX. understand others on for of inevitably depends think year fill expenditures that just in certainly from will have prices. to will part there out. in you If we likely be we that. $XX that communication prices Liberty, see see versus privates. excess Oil a to into going is think we’re will But of and I right doing in What the open gaps are is Privates QX, That expect of QX believe to that this meaningful now, activity their

we as as noise did year responses. as I make well and will and think movement year as in probably well. we QX and the we But in next and we of advance, long struggles year see calendar know can same some going As this to schedule last we’re

Sean Meakim

Make Great. sense. Thank you.

Operator

from John question next comes Please The ahead. go Energy. of Daniel Simmons

John Daniel

Great last you remanufacturing on over to etcetera. speak XXXX rebuild, years? questions be compare quarter. just going of you of quick two I sort to Can that your how what would to and efforts what the just did couple in are have

Chris Wright

think I too. they rebuild And you year, last fleets. look efforts so age, a year some will. are cycle. bit suspect and absolutely early be little fleet they Quite are yes, our them is commercial year? eighth of our I business, this in they at in If Might greater were ongoing, They ongoing this the those

Michael Stock

Michael. it’s John,

$X and really fleet. we on as rebuild that’s of that $XX think moving $X.X to of million think, we maintenance, from average I about a cycle, about million said, capitalized million

So, a this rebuilt. have little you year; more getting fleets early going very on

John Daniel

Okay. narrative oversimplify fleets how out rebuild, over But is expect because Can Because very you because all spreading this you would you are would units. smart. to I’m pumps trying just the not I’m you or to that you rebuild forward.” going that we’re every people and you an guys the lower-performing can’t or if look, player. X XX fleets, say, going not are can to our reinvest, curious just right, okay, effectively X I’m underperforming year of many

Michael Stock

sort John, that think XX% right, aging think a we’re of in about to going Again, will it’s That’s of mean, Yes. probably fairly I range; steady average. between got I it sort bought I sort depend newbuild. we’ve sort done most fleets picked of was of equipment average relatively what we’ve fleet of when a of it. X.X-year up Sanjel the is we age And of we that

so yes, I going So, steady. be it’s to think relatively

X see fleets. Some years, you’ll

Some years, fleets. you’ll X see

that of is those And bring X% can see it how just it a field. think to depend also, on but how might of bring the you you You kind of and lot out are XX%, I cycle. will busy just equipment’s

Chris Wright

probably us whole new new we of cost over a total before, will say fleet. a design mindset fleet, fleet or the add, build ownership And you our the when is John, I as life heard also of

next different what you You these fleets thinking about can in you term, our is that’s pay this designing cheaper components. year issues. And we’ll talking fleets, years of to XX there never than get we when like? have the long some are you’ve aging today. for XX but So, fundamental how it. have we’re short term. were XX from right? years fleets Now fleet about the When fundamental save just are that, years more also on perfect probably just we’re And mentality, can was the now, that XX we’re old, that them from view I what not but look going in components and right, its now, XX better that’s got on we years and than

are didn’t maintained, if them. addition old, very obsolescence first you them if even to you when a decisions get fleets make maintain there’s as the well you in didn’t essentially, built factor get then they So slow you and

John Daniel

age Like for putting of on in you gets me, what guys dual stuff and dual are them And automatically one Last investing. in at How just you rising fuel comes enough. as rebuilt, today? percent dual fuel there? for calls Fair looking kits are the what fleets? of ESG fuel kits through doing are your you’re

Chris Wright

Yes.

to is Number we’ve always than There SOx gas, in about particulate dual that of way operation. So, fuel. got a just gas intrigued but frac things is one been right? natural is Definitely, again, natural cheaper and emissions, NOx by emissions. when a that. availability So, like a COX not to lower diesel, lot got to and run cheaper it’s it’s on and you’ve emissions,

So, United in use grid, is and right? look, States oil to don’t We electricity make source. gas electricity, at look perfect a any world, biggest natural our

is gas dual at with have a gas fleets do only fuel. right, like because to to natural probably of to fuel to see, see expect or natural fuel, and running that, that fleets actually half our today not customers gas of to running are you’ve an pumps field, level increasing work we’re of dual so So Close hope frac power to the to fleets. to preferred consumption half are so in capability, certainly, we with our power that we our see we but got

Michael Stock

of we John, fuel And been build is number now much and years. has everything dual pretty a for

John Daniel

so Thank much. Perfect. you

Michael Stock

John. Thanks

Operator

of Tudor, Holt. The Pickering, go Please ahead. next question George comes from O’Leary

George O’Leary

guys. morning Good

Michael Stock

Good morning George.

George O’Leary

misunderstand entered Just it didn’t trying or that you was slightly where could profitability overall per-fleet First or versus the sure make which that. that likely EBITDA? I be where QX, given to understandable, question, really, just a is the flatter pricing When quarter clarifying in down profits quarter-over-quarter, question. quarter mentioned exited

Michael Stock

EBITDA so that’s but fleet fleet difference. had very thinking said only EBITDA, a QX overall we’re sort profitability. George, a I ‘XX. overall lot of X/X There’s additional for not of similar of to We So,

Chris Wright

the depends on just dynamics. It

price, And going mentioned we a winter unusual guys they’re get had, You QX, QX the it’s to not down. over and maybe operational I right? is be but getting going lot, but exceptional for more QX, for a season, seasoned, Average sure, almost, would and performance in be better. down price in say, utilization to our

And go from much too short in to higher so, the it’s hard that run.

QX headwind in another there scheduling so, a that’s Yes, whatever be could possible. that’s And challenges more little or certainly factor?

George O’Leary

helpful. was going month, think segue. a how I of better in let actually that’s if be it next question can you per but to full good think we hours you My or kind Okay, of you My per be question, that sand next near-term if terms fleet much get might was very you not? about that answered So, pumped efficiencies? reaching I’ll or respond

Chris Wright

procedures. on-long That’s is near-term, growth That’s here. technology On relationships. there Absolutely. room customer term, That’s efficiencies? operating significant for and development

a So, Liberty we look, no, of still and, fair on history. improvement that’s see room mission really our that, for in entire amount a been

number from up QX, to But in point, yes, other your the in course, at over lumpy trend years brand-new that pumping clarify short not a because we’re are years hours upward we’re and of that of look it QX real-world X day, in going certainly short upward expect there ago the you X it’s run, to really ago, and are things the continue. If run. we trend drive to in

some I there. year, later think developments positive more this see So, we’ll

George O’Leary

Great.

Michael Stock

think modeling near that year on as – year. Yes. on you is clarification And, anywhere just little for as pronounced a it all, this average winter you pronounced uptick always a really average. be a I said, George, summer was we’ve that as – as over will don’t was get just a

of try message So, to we kind that. just

George O’Leary

on of clarification. Okay. I’ll piggyback That’s – helpful one John’s very questions. On

to historically. half I dual fuel pumps that. and commitment – How your do it how On you know the shows side, you framed

makes curious updated thoughts versus other? e-frac and on Just for your the why one over dual fuel sense

Ron Gusek

George, this is Ron.

that an a from – when circumstances by And on. makes problem. dual sense together will technology an always a the we think trade-offs frac electric we’re what that, right we We’ve see But this to continue at we better we’ve we keep served the see come tackled we eye in point set just far the time, us, for to running be standpoint, we fuel. noise e-frac think it’s I I when out fleet. think prepared roll I see still said given of as, the feel

have have that. challenge a that really footprint fleets like who today. And there want those for don’t quiet We or We do run already. to the out customers, we face capability anything gas,

boxes we’re be time when e-frac have all on think we in like I and at top put in something technology market. comes, prepared – we’re we rest-assured, what And So, we’ve feel demand, of time. and this the point we’ll to if checked will be, the when those

George O’Leary

Ron. very Thanks color, too. much the for music Good

Ron Gusek

Sorry about that.

Operator

Sedita comes question of Angie Goldman from Sachs. The Please ahead. next go

Angie Sedita

morning, good guys. Hi,

Chris Wright

Good morning, Angie.

Michael Stock

Good morning.

Angie Sedita

in? on bit. color So, and dig solely Can us driven potential year, later little bit us but into this fill activity, comments give you Chris, pricing that of Is a to little for your that supply? – upside about want supply a lower and by

Chris Wright

our driver less So, today it was The the driver supply. less than and months sole is is is oversupplied the ago. it and guess ago X much X was that maybe than months oversupplied market dominant lower

critical reliable, the and to So, them high lower throughput, supply from to it’s removed with aggressive production customers efficient targets, With we’re budgets have seeing market. operations.

bit on fleets So, now right the even in is strong. little in of skew maybe there’s that, quite pull there Liberty actually a

the plenty today. for for there have we we capacity – we people to of We’re – like, work don’t like are know, we’d

So, – yes, future, the know don’t we are said. I we as

that then and see if crazy, obvious to year, $XX not happen. it’s you’ll to going in So, but increased goes the late activity maybe that��s oil privates go

fourth rockier assumption Our here probably of sort activity macro flattish relatively and from quarter. a general is

than little that’s is bit we market, that exiting don’t the to when macro but that say so firming else’s, a the no take we our bank, market. anybody Now better supply expect

Angie Sedita

pricing, back did to fleets that’s And is we into see see additional so wouldn’t the you market? in fleets that then generally And you Okay. think movement behind could out or come in the we do many if expect thought some coming us? QX

Chris Wright

Yes.

of I I a bit see the both of exiting market. we’ll we’ll still see fleets think suspect those.

number I been you’re you’re cash if quite players flow think that rational the we’ve lot have responded a there’s in market of asset, when meaningfully players, rational still seen a a And of way. lot to positive of I in aging doesn’t and capital-intensive have make a that sense. the not a think that generating

So, capacity don’t would. of But no, not there’s customers, bias laying not up if way down of our expect going moved and dialogs I But think where up that bit expect fleets we I potential bit. forward. year, I don’t the and would of is those certainly very of either back? for they would. over. idling come meaningfully, a from prices some with changes it’s changes they price modest now, We It’s see. certainly radical customers if the rest little a is little the might but price flat a and modest, expect it’s

Angie Sedita

hearing any fleets retiring And talking your just XXXX some about just that I we’re mean, or as are idling on the XXXX? you okay. then fleets. on attrition and we overall enough. views Fair clearly, into of go what end and Okay, have you

Chris Wright

anything age probably profitability thing you’re and thing. it’s I a different We’re hearing, not hearing a operating fleet than think right?

fleet you it, But quantitative I’ve you cutting to It’s any not spend a rebuild I no fleet, not don’t today, to money have. today. but smaller, to If no. you’re a say and you have others it operationally with cash or fleet quality it’s think have performing have going making it’s we great, really large are better not got of average insight slightly people in number than would there higher that a that

Angie Sedita

I it over. you. Thank turn will enough. Fair

Chris Wright

Angie. Thanks,

Operator

Weil. next go of from The Vaishnav Please comes Vebs Instructions] [Operator Howard question ahead.

Vebs Vaishnav

congratulations quarter. on good Hey, morning, very guys and good a

Chris Wright

Thanks, Vebs. Good morning.

Michael Stock

you. Thank

Vebs Vaishnav

about thinking year? work how just to this that go XXth likely So fleet, does

Chris Wright

– decision granular a it’s us. for So, macro that for decision is a not us,

a dialogs talking existing capacity. I that a while Liberty in mentioned earlier, customers, for in are of aren’t maybe I existing to customers we’ve customers So, think with with number interested we’re been

and going demand. and comfortable, of keep we’d to in us come can uncertainties have for fleet, deploy active that existing with going will for fleets long-term a our so it’s customer great to all to feel deployed we it to strategic a And be home that that’s that

So, But of could certainly checked but That’s to there’s need as just certainly happen be it likely – this number year, fleet for a likely, call. very it’s a a boxes might happen. whole again, year. certainly very – utilization not to but a that Well, happen micro for on particular that macro and on the a it’s not opportunity. us, call call this macro

Vebs Vaishnav

on, it, it. I And as million Got it maybe XX so next CapEx a say, CapEx let’s for Got it. thinking, $X top it? and additional of of fair year, think about is way just fleet on call XX, fleets some

Michael Stock

it you maintenance, No, about I talking mean, Vebs? – about if capital you think are

Vebs Vaishnav

sir. Yes,

Michael Stock

No.

between $X.X and We think of still million will right? million. somewhere probably what kind to million to go $X I I average around $X So, $X.X million. the it we’re going wouldn’t yet million. to It $X is high, too be expect budget don’t But I of think we have think we’ll rebuild. probably

improvements. technology You’re going to see some investments in

operation. number that we’re finish really Just cost looking other the to technologies like we this There’s did rollout. of the arm at articulating reduce a out of year, we’ll

So, the some order in I be it what would to of there. this Will zip think order that the you’re possible. $XX see it it’s I going be investment year, – around million? we code in of in which in did will was

of then disruption is to there’s new going So to if comes be – fleets. new it and any there fleets, down any for demand just

Chris Wright

Yes.

year, ways that’s to not to flow cash right fleets I is is near order likely. Liberty the next That’s trigger not year modest, front next relatively to But now. would away. burner be like are say new in of right obviously, the We now, a yes, CapEx relative likely but,

Vebs Vaishnav

it. Got I color on some have asked, want think been more it but just pricing. to And has

later you the guys should So, year. in improving pricing be think

sequentially. guys budget average then talked because you drop discussion. You the And could pricing about of you about talked lower in guys activity quarter, also E&Ps XQ public fourth think

then you and is saying then just XQ what or basically reconcile are like is be how So to to it? is trying you’re thinking about XQ pricing in guys going in like flattish up

Chris Wright

Okay.

I I clarify yes, guess said. what So, already to

this of we reductions down going prices through happened We say quarter. table, saying the going that not have our any I’m just much guess modest that there’s are opposed in about not price whole pricing, and best I for I in know average And in that more likely that in down like that up about expect is – our be existing QX don’t are dialogs, prices QX, I So, to are to future pricing now or potential in world, The QX just bumps – flat are definitely sequentially going that. year. the that upward to want probably bumps. as flow of close there a flattish to in kind the middle downward don’t maybe to frac down. there’s dialogs QX, pretty QX, a

if Don’t don’t want but that very that’s from And, yes, to there’s well. rapid market think I for some but of I – that depends unfold reset big how not is pretty So It true a pricing that’s shock, had down, – don’t whole the as know absent here, may anything market, I likely But it’s that. if qualified, the we very a more more modest exogenous statement. a I than it’s suspect think up imply – bottomed. I than little unfolds. movement

Vebs Vaishnav

That makes questions. my for sense. Thank taking you

Chris Wright

Vebs. Thanks, bet. You

Operator

ahead. Stifel. The Please next go comes from Stephen Gengaro question from

Stephen Gengaro

and morning, Thanks, gentlemen. good

Chris Wright

Good morning, Steve.

Stephen Gengaro

don’t you if things, Two mind.

seeing on opposed pricing the sort it the on was XQ into as XQ a to that front, price flowing degradation we’re follow-up is in average the Vebs’ price The on of XQ, first, sort fair question, of bigger declines? just what

Chris Wright

that. say to fair absolutely That’s Yes.

Stephen Gengaro

Okay.

there’s in So slight that as the more of reflected still already you’re a just – in sort of XQ? degradation numbers highlighting to this opposed was

Chris Wright

there. end way markets for the and QX is than and for There into fleets in QX, market. looking frac of work there – you QX, so price of frac beginning in so demand very work supply the was in a was And or resetting just supply rapidly, Think QX there and more falling when not the and Yes. at the lot – that’s commodity look, of work get even get pricing you frac QX. prices of demand importantly, going the just just more response particularly

I were through ones of already the QX, long little a an it you later there, there’s resets QX, way but yes, to would but big So, a reset impact say flowed yes, and part said from of say bit the middle large a correctly. that of

Stephen Gengaro

great. Okay,

forward? then secondly, period over a talked of of out sure. the requirements, what we of fleet outside as couple is for sort anything any would going maintenance kind abnormal that’s model consider Thank when of takes you. of mix normal the making time some of there we that about you And this Just next of the quarters

Michael Stock

No.

Chris Wright

No.

Stephen Gengaro

clarification. Thanks perfect. good, for Okay, the

Chris Wright

Thank you.

Michael Stock

now. for Thanks

Operator

concludes session. Wright like question-and-answer Mr. conference for over the to would This back turn closing our I to remarks.

Chris Wright

literally Thanks we today, your great all everyone from makes day, industries round. for for now. joining other us in look talking and you for and in the to Liberty go world that this X Have a powers industry to your interest interest the months forward and

Operator

is concluded. for Thank conference attending The today’s you now presentation.

You disconnect. may now

Liberty Energy (LBRT) 5 May 192019 Q1 Earnings call transcript