LBRT - Earnings call 4 2023 | Liberty Energy Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to the Liberty Energy earnings conference call .[Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Anjali Voria, Strategic Finance and Investor Relations lead. Please go ahead.

Anjali Voria

Thank you, and. Good morning, and welcome to the Liberty Energy Fourth Quarter and Full Year 2023 Earnings Call.

call and Wright, Officer. Michael the Ron Executive on President; Gutek, Stock, us are Chief Chris Officer; Joining Chief Financial

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

These the available website. on including pretax may return like to are measures comments of EBITDA, adjusted over not employed are and adjusted return capital and turn employed income not non-GAAP to GAAP as capital on Investor our Chris. comparable press measures, of EBITDA net on to Our include a cash operational also today now capital return EBITDA, and be cash non-GAAP pretax other reconciliation and return adjusted financial calculations capital for our invested release in on companies. A adjusted measures substitute this of included discussed I invested call call would on Relations on EBITDA to measures. and similar and the

Christopher Wright

earnings and year second results. and a per fourth everyone, Liberty for Good morning, record operational year our us thank you financial share. of consecutive and discuss joining quarter XXXX to full delivered

year-over-year and operational pretax Revenue per XX% year. in rose share employed increased We year-over-year, by quality vertical Net cash capital integration of return XX% $XXX delivered $X.X prior on billion XX% XX%, both and exceeding technology to full fully advanced drove XXXX. our diluted our enhanced of income the adjusted of and superior capital was portfolio $X.XX. million of return employed and on year service efficiencies. earnings record-breaking Our

income net cash year to buyback showcasing adjusted program. power Our end the of X after and the year return a the the made EBITDA quarter records concluded due outstanding pretax of on flow we generation at capital count, public we have quadrupled our Every share this years net our XXXX. increased reduced dividends. leading by our our more July through went midyear team. ago more our Since operational range, in program with our we of pumping EPS buybacks a efficiency have shareholders proud EBITDA free significantly than than and grew possible flow. We record. couldn't tripled record our I cash revenue, $X.X reinstatement These billion in quadrupled high XXXX income. cash new distributed faster We and Since $XXX guidance financial of supported set simply in to million Strong program. Liberty. be were quarterly of Team XXXX, performance to be then,

to announced OneStim shares of XX% of issued years We program have acquisition outstanding ago. July the already equivalent XXXX, shares when Schlumberger's of XX% in we X the the for retired the business

complete technology fleet in be reduce to Liberty innovations. We in end value million industry XXXX, quarterly beginning CNG we in is $XXX efficiency, proposition leading the meet value fuel LPI's unique of to technology, our gas. through authorization expect double primarily powered the dividend gas Liberty fuel by our The the natural natural capacity assets XXXX supply technology lower power frac. to is grid-powered also Power We share brings increased the and QX for gas buttressed and move transition by the of will by our by natural emissions supply, generation our rising to upsized costs. fuel and success XX% in own By unique and maximize repurchase XX% chain to of dependable pump to XXXX. plan XX% demand. Liberty mobile together and a

Our world. our build other ability and pump design the production generation our gas to fleets source. advantage a operations, technology demand this first for fit then the industry-leading of has companies the the frac and the shareholders. of augment our required ambitions the operators solutions and by their set different rising aim years emissions others contract most while deployed strong Consistent fastest-growing from strong match logistics source of that is with controlling successful lease drive faster some emission, to We growing competitive of simply approach in fuel some than to everything the to to This and and This Natural gas. last is fuel fuel decade natural been XX digi oilfield. of XXX% is providers. as gas-powered rigors Liberty and desire the their a belief lower-cost, frac and developing returns. drive The oilfield a natural ago, costs. supply is rest dual-fuel reliable to compared the to lower technology our out for as reason gas to fleets from lower and novel gas microgrid approach industry company recognizing the power a importance with power far who our fleet, energy natural will and we distinctly customers further deliver innovate power returns both frac is

culminated multifaceted coupled in job solve of generators that on and natural requirements, the efforts our and site. natural a to Mobility power rapidly Our needs. DG of emissions efficiency and transportation challenge the solutions innovative launched a logistics virtual of and lowest LPI and mobile in to X just-in-time scaled Power lack complementary providing our pipeline We customer there's the Today, be or thermal solution. to capital-efficient gas varying our industry. demand development pump the fleets a up of and these provide to led other based with with meet technologies modular comprise needs design that infrastructure most growing the gas highest can down, in Digi fleets demands satisfy frac this

from the While basins have are led power Digi changed from independently XXXX innovation deliver assets the a this point at across provider raises LPI E&P frac business, these a pull The Liberty deliver unmatched demand Liberty. fundamental supply marketed X have the positioned us By Digi to keep Together, design current The oil to all diesel match higher reservoir is frac Operators response the and emissions to serving for to savings. outlook factor fleets our Engineering for the fracs equipment and as improved shifting is the fleets service most technologies Against a both steady LPI in offset significant to lower relatively success our digi integrated choice. industry deployed to intensity for XXXX, toward marked to remain comprise driving logistics LPI returns. scale albeit to service innovation production that composition, investments. our utilized horsepower, gain Technologies, or gas service demand our industry. compelling for optimization, levels. rightsized of dramatically shale to from completion and completion quality growth. we in steam. of plans deliberate to for pumps prices services. Services fleet operator backdrop, for infrastructure average continues laterals, gas in being drilled. and complete market, Many turning Liberty's generation technologies underutilized speak. idling fleets We company X The year, to bound X Rains Service demand set of wells of demand as to not slowly and of more of and the and position decline consumption activity. the fleets rolled fuel have the offering rise, helping the reductions end flat of provide stable. demand meaningfully at out drive via with fleets modest continue the customer demand. total prices older trend now completion Entering was longer accelerated in Digi to gradual combination being exited as attrition

largest with and support to levels, domestic required a for to have are ahead global to multiyear gas reliable, production to production frac simply lead living pressure, incremental offset These be to more of continues declines. natural to oil American record a power oil should markets continue increasing provider standards. demand be affordable are trends more Long-term but XXXX. energy expected supply for services. and and globally. operators LNG rise the are growth American North cycle As activity North under will Near-term exports robust likely reaches gas durable been increased demand

E&P cautious modest in be flattish anticipate and trends we driven expected activity. This quarter, Looking to is EBITDA, increase a activity to the quarters. for seasonal a and by first revenue adjusted subsequent sequential in by start our followed

the expect free Technologies and continued year, and our investment For in generation full Digi cash we LPI flow business. strong

deliver rise transition energized Global the to and energy our We customers X cycles. us services positions to returns aspire confident superior our are to of growing the Liberty's supply help service meet opportunities business billion. reliable, demands. affordable $X lifestyles technical Lucky these progress us energy-rich energy durable less that over continues technology to to and growing world's the billion better as of attain quality to expand brings demand the

energy going has technology were partnership that down gas very and underground of came in The oil Pioneering enhanced the time energy fastest-growing my geothermal with and over engineering been period. natural revolution energy in well. in investment plumbing source the shale years. result global creating closing company to ultimately XX and previously transformation harvest global unleash beginning ways fractures, on shale has energy remarks. rocks. unimagined. same also the and hydraulic fastest-growing the over Our a complex at Liberty last Several natural involved landscape the source geopolitical revolution made Turbo gas ultra-low lucky challenge Shale The a the of solving this enough from revolution. this shale technical oil of the to the make to been More of second be us of permeability at network in dense and

engineered ago Our be is Heat wells. can of partnership permeability, injector informally of network Hence, several years conduction technical vast a through with underground fractures. faces and steam quantities the began from of heat producer rock precisely the which scaled and underground ultra-low water involved convective solution same To transfer a cold up wells network to underground and with gets it slow fracture dense challenges. connect harvest is which also very rocks rates. implementation requires from now fractures, hot high to Turbo, heat water but

large-scale shale accessible innovations Another resource the energy via is from revolution. the becoming new

about years will travel Turbo geothermal excited We of generation the next far partnership in this our are and how ahead.

Blu Australia's geology Another application technology of gas our partnership are shale is basin. the geography expertise is Tamboran in The to Liberty but different, same. crack course, fundamental code shale with challenge of the the and

bringing Asian about are innovation Australia our to resources gas the the and upside Liberty all markets. We excited LNG history succeed if has huge about can in been partnership. and new nearby partnership

to this Africa. Foundation the of urgent Our to future Better in foundation we address supporting access earlier access. development lives will cooking the in human The by strives most be, fuels entrepreneurs increase to launched month, clean technology energy and challenges

We that, uplifting CFO, by safety Stock, I'd financial of children women, our to of With like prospect outlook. life. to Michael communities over and results are turn to improving and quality the and call our by excited the discuss health,

Michael Stock

and increased financial to Liberty our for expanded long XX%, Good while outstanding business in $XXX results We million returned XXXX. morning, in in XX% capital reinvesting shareholders by our the delivered adjusted term. our ROCE to everyone. EBITDA

over in the and quietly billion. cycle, average Over to In to including of XXXX cycles, XXXX to acquisition, XXXX the a in Senegal XXXX $X adjusted has of period, opportunistic X years by scale exogenous XXXX integration, downturns, acquisition EBITDA in eightfold, software XXXX the bolsters to annual technology EBITDA driven from period, adjusted XX years XXXX date, assets and average the that then, the and unusual grown our operated OneStim Liberty we By in history, Coated. of XX is last average our and our vertical fuel, the Since interrupted development over now X prior on our by X annual annual dual XXXX. was $XX last shale our approximately forward-thinking the have EBITDA series OPEC and our owing company Xx investment to XXXX years, million. war transformative adjusted efficiencies. first our to

highly base and are expand is that natural only technology particularly few their sustainable As investments in that revenue and solutions flow. business we that look reinforce that forward, our invest own the fleet strategy demand ability there control cash investing Liberty industry. in of on our next decade, of can critical The areas chain like and to the rise, to free diversify gas destiny, a Liberty. versatility developed, entire drive long-term well to next-generation efficiencies is over infrastructure is LPI not are drive very to These very potential fuel outside in the and high advantages are our the one truly provides areas Design low-emission, own there efficient and owns differential and that companies value for chart strong technologies, the is supply,

highest XX% to billion share. or billion history in per fully income company $X.X For above $X.X $X.XX EBITDA $X.X the full totaled diluted in 'XX. revenue $XXX XX% from year, increased and was levels. Adjusted billion, Net XXXX million

for a fluid. quarter over revenue billion, headwinds income was of budget fleet after consecutive new tax $XXX full impact XX% exhaustion driven more last of fourth a the of $X above sequential quarter million in built in the Fully net quarter. and Fourth we've power quarter. quarter million over years. the safely a prior earnings fourth the in prior of fourth XX% million million year. by $XX year. compensation the $XXX note, market income million. ever was fewer $X.XX year compared hours quarter $XX and income. EBITDA demonstrate of compared than net the expense results positive flat on normal Net year interest quarter and expense Fourth quarter G&A of the In million $X.X XXXX. we million expenses million quarter XXXX, of Fourth G&A the pumping a X XXXX, to associated and X was fourth decrease adjusted efficiency compared $X before pumping $X.XX fleet was quarterly totaled On full year, quarter of $XX pretax achieved in stock-based included totaled diluted the but per noncash the records tax Our to million, in was $XXX basis. fees was approximately this $X to prior

debt for to Total end flows share dividends. were capitalized in $XXX and used investments capital digitally fund of to cash taxes debt by for the of capital prior $XX balance We million. buybacks ended taxes income. we wet of Cash million rate including $XX cash expect at full year. expect the a gas the $XXX year and million. $XXX facility, effective tax $XXX LPI $XX be with was million quarter, cash approximately of other year, the and fourth spending million expenditures book in the year, Net XXXX, XXXX of year. cash and XX% $XX in expenditures, XX% and were $XXX of tax fourth expense XXXX our under pretax the be credit technology, million the a net to sand the of quarter liquidity Net which We million included decreased million from maintenance in delivery, In were the million approximately projects. availability

dividends. strong cash robust ago. that Since showcase deliver Our while expand to We a buybacks to internal investing ability a our million program transformed we've results our pandemic, share meaningfully cycles. we of of our return XXXX shareholders X.X and flow through return the capital high-return $XXX generation now deliver business have competitive our capital cumulative to projects reinstated cash time, in through years advantage. distributed program Since to

our authorization. XXXX. to left We repurchase we extended this We by million through by Last we $XXX had million week, our our XX% share. increased quarter, and share to continue authorization on $XXX July $X.XX a And XX% strengthen to this program. increased dividend earlier

ourselves in opportunities. industry-leading differentiate to while an high-return investing return capital continue program of We with

in we from led steady As more to expect Chris start of with adjusted few reducing Luby's resilience earnings year the show shared first operators. earlier, a to The face in count start EBITDA. volatility has a rig pass revenue and XXXX. months of cautious the flattish last commodity E&P quarter remarkable

we modest look a in activity forward, pickup Liberty we expect subsequent quarters. at As specific

we year-over-year. For the adjusted EBITDA full are year, flattish targeting

the from the year of be the frac XXXX pricing into flat of end like-for-like for technology. will Our service relatively start

$XXX natural fuel operator after the it cash back approximately or used of dual gas technologies. expansion. supported this are the be Including by I now will of approximately capital Digi have at of will inclusive Q&A, by for natural call. delayed end CapEx Chris which technologies, deliveries, $XXX equipment adjusted LPI By fuel the We at to fuel dominant timing LPI. EBITDA, million number, spend the turn targeting late expenditures is athletes in year-end, of the closing of million upgrades XX% will comments XXXX to some gas,

Operator

you. Thank

up And We with [Operator comes the open first Gruber Instructions]. the from line for will Scott today questions. question Citigroup.

Scott Gruber

the great about I translating you think that is guys EBITDA Curious to guess what kind activity that. into incremental reiterate hear I'm investments underlying to about growth. is which year-on-year flat of wondering EBITDA, versus your how about

flat a of to So investments. and LPI versus or first of in activity you half need half from second EBITDA can on EBITDA year-on-year, mention the you type maybe bit for us get incremental do that the other some kind maybe to what if dimension growth

Michael Stock

Yes.

can take come So I'll and sort of in as one, Scott, that Chris well.

earnings targeting the puts There's we There's can increase relates as and year. price minds specific as from to said, it the as sand as know kick a for of think that down it back through of in to we the increased Bakken, seen, And year we E&P from drags you demand like is the EBITDA customers. operators, strong again we start that's There things see, the last and of things go of out some to what come reduction to slowed up for if end basin a numbers is lot going like QX. Liberty-specific of out by As LPI. going on to our year sort flattish year, will basins, from a the made is up takes. in year, think you've was of some you we're our kind the which slow of

So I market think you've year-over-year. for a average softer technology like-for-like got generally average on on for

If give were investing fleet. may offsetting price, from also a then macro technology for But down where we of our takes, diesel up the in which is transition, Chris down average the There's that. and year-over-year want lot you go prices on may or to been we've where about think and diesel puts some are. color diesel

Christopher Wright

we're I an ourselves good kid or overall Look, we Scott, think XX That's said, year. happen and Last to But less of the gave yet started softer the at a sort fleets XX Michael we Michael declined that throughout what's summary. this year. know year. of QX little a bit operating frac of end year year of the a determined. end to that months be going macro this as then bit before last little About really strong were that. at QX

And up don't we I yes, bit, $XX a So that and say And work the be ball. bit prices or pricing, that downward good bumped industry pricing would pressure I again, pretty flat pricing, a idle behavior have firming, crystal outstanding the down would on of a of hair, people little people a was flat. have with the you a couldn't year or strong the pricing get little macro spreads. might frac well. shrunk and little see so, think in industry but capacity. kept If but their expect oil change to a as this They but we idled strengthening

technology important, service to expect just we Michael that quality. said, the because even and as more conditions, kind you better macro look of what just So can market at superior of Liberty outperform

Scott Gruber

said more I the are color, to still And wanted demand thinking terms just you contracts? budget? fleets those service. appreciate the color. X X hearing far just total demand on you all advance what digiFrac going getting how but within year then then And for units, digiFrac about from underway in customers? I to could in units it maybe be this also you're pool the of additions if those entering that rollout, seems some see strong, And Yes. pretty provide Is

Christopher Wright

to going for is somewhat the different in is what hands digital top But long-term there to in on is bottom right? a rate right Digi X fleet go pump There It's the That's we dialogues we're a the those of more for capital technologies, of Yes. fleets, tremendous. fleets we're fleets. than those mix constrained deployment The build place. to yes, out about our, build Look, interest The when is just of just amount prudent going the at down. the the agreements so into timing air rate those are think or what's are yes, by is go get huge. rolling specifics massively that which balance customers. There's interest time. long but that's up always different different more ultimately into the

not an So X. I year probably think X/X the with your we're this again, we'll of year probably budgeting numbers about last will of Digi. have for fleet the ended a we end And our But that's be are year, order we what excited and give at see, we thing. That's if dialogues rolling thing a But in that's any going. are. the want a customers. we're I technology, don't where more more the bottom-up with how on Ron, out to know color you top-down

Michael Stock

much add on to alluded those too as were wouldn't of next working to, we out, this say right that. that, end hoping X to I month. have We're to Chris had X we now. Todd, X Only the by

field. been long-time full to us that first the developing that getting all, of continue it the work customers' and we're We the ahead in, to around But our putting technology to that packagers partners have hands ultimately on expectations meet to customers our track in with speed third-party keep closely who deployed of on with that. schedule

to So this that see year. we're excited continue

Operator

with question Lemoine comes Piper from next Luke Sandler. Our

Luke Lemoine

through to for fair think a on Were adding what side? mobile this amount this this I quantify not ready of digi a kind the well? you making size CNG year? Ron, should generators walk Power more return LPI distribution of about you're you're standpoint? you non-free yet, then Chris know Is as how we And LPI us in but investments can from

Christopher Wright

year's the this supporting basins do it's basins, compression a focused we focus -- truing gas capacity that our going rollout, right? amount we'll be we're fuel doubling lot fuel up and work distribution is be of the there. basins some the is fuel Haynesville, on as Luke, DJ. really are X main other over units to gas, back our really go Digi The forward look of Right to and dual LPI We'll a about we and at full of So X Permian the decent and gas which in from up. trailers then CNG going there. the that And mainly

year So everything some other investments process something sort all nothing kind we of that the we've of And more capital spent first like all Liberty that what be that the becomes our be the sort that moment of won't for outside expansion that's XX-year what here side that Liberty degree, far history all on any we're we're or the investments of your generation working to year. of thought outside XX% to or of goes you're on business, sort through in done go regarding really target looking for starting a sort on have as at at plan does do. industry a then plan those going of be the power that returns, the but year, of cash and investment Obviously, in hurdle probably with That's measures as hit next the mobile invested. we single cash That's to XX%, basically, long-term that's industry. is we at going new are. of on to a any and of that growth target you the going as for return Board,

Luke Lemoine

you you up next then, figure the depending first of in update X. to are And to Can versus the customer, how these many trying right out fleets on that X incorporate out frac just these talked Great. on complement us about did Digi but you prime prime? the

Christopher Wright

will of be that be capacity, fleets pretty of through partners' expectations will will the see as frac, percentage given DigiPine those that technology. will electric we're us year, we be the we're that just Digi That X where to significantly. this proceed focus those being then fleets, going of additional there. you're So And for given Prime primary Digi X climb deploying be our

Operator

from with Our Goldman next Sachs. question comes Atidrip Modak

Ati Modak

on You little from matrix perspective. use this of cash I decision guys touched bit, this a ask but a wanted to

So the next versus potentially do flow capital in cash a and over flat few return shareholders? faster you environment, balance margins and accelerating a expand free conversion years digiFrac of to how

Christopher Wright

Bakken. first Well, that's fair the really our was best from out day our the has came fleet makes this the We dialogue by up business in with that started and we company. a the margin, fleet frac

with or sure can What's add I go other we're But of strong continue in I area, them? us, business or steady that on you and But philosophy will But run accretive months on is balance for So any would our only we how we the don't So the for into going commentary the an color right. it's because foreseeable probably opportunities I shares in have missing future want our do things touch returns specific dividend. and competitive don't know stuff should right fashion, No, competitive do last for capital to lines have advantage our develop fast make long capital. if is build time. there? the strong to as that. how we And am investment have got many will business just to to build, We back we I opportunities. had do for you new providers do to We Michael, our else more business a a well. other compelling significant we grow as where you're that in anything regular when therefore, XX that. say, critical advantage very growing on? our we've very we'll we return buy on versus do have

Michael Stock

it's right? a focus. of cash time. growth. internal a in ability the at long-term I returns between with shareholders. I to mean our always those on our are XXX, great significantly the mean, our focus outperforming that you the a returns, and When But It's it's to at S&P same investments we XX-year history look X, balance balance for long-term return shareholders the history,

got company. capital of You opportunity can we're same returns for a from we've investment think everybody, growth a remarkable, the So I get remarkable right? and

don't You give or one the other.

Christopher Wright

today, has a been always by global much as less able sheet, the cyclical my industry dominates cycles, that production inconceivable just activity started, as have world multiples it I activity The so and therefore, dislocations swing advantage third that production. balance compelling allowed always and going clear We we've is leg flat natural today us like it's When you advantage on are and so and XX%. into an activity we're sheet, keep shale industry would is god, revolution people probably given for in the been see, like are and is mean down what low with that in. We to we're production had larger cyclical higher obviously U.S. don't U.S. because has that come we cyclical, it's our much the gas oil in That's is that about to take that a opportunities right? industry, base in of often cyclical. navigate because more us, And on that that actually our balance the those we're to cyclical. but

that opportunity the it to So cyclicality But thing. have the going a going We're us. certainly fashion. That probably still cyclical past. is muted terrible forward, than but we didn't more some an meaningfully less in view was for future as

Ati Modak

sense. makes about other of thanks work I you the there for the bit help guess all of globally question, there? second color. well then Can on are there that touch And is as longer-term spoke that so and potential regions nature understand interest the Yes, a you to maybe on the Australia what to are And the little upside opportunity. you? touch that the

Christopher Wright

these X years. And with X, a I know the been internationally committed one Liberty know we've We a that things X, you of get is define lot our that but hits customers. that long-term lot, partnerships I pitched for

our just And the and maybe this sense our do to were makes have all the idle busy or of all that. there's for forward time, scale Today, that and we back But we grew don't workforce to it of at pulls of infect future. very have if fleets fleets, to do our going fleets we're anything time. the disruptive. happy business, past a built We're we're and going so except all in way find busy as now all demand in been no COVID of to the

weren't So we we're to tell going trucks customer, sorry, "Hey, shipping overseas. your a

upgrading new fleets got to out the and we've Now not of Digi meaningfully maybe rollout, with come that have that's technology other retirement a age. end the our that are going we're fleet, fully that, at

are we so going to Australia. happen And to what's that's going with

in. going let's We're frac of exploratory, dis kind to see we'll One for not a figure is over of over We've ownership go fully out basically utilized play. fleet can good where and equipment. this But Look, we out right moving do We've our be Tamboran. investment work send over service stake there. taken rolling of in got will our economics is away. that come the an it going to legacy capital idle of to Australia. It's because that fleets

own a a with insignificant we So chunk of the not large acreage company position.

in a Marcellus. can this value to we a we similar So giant partner make It's in work, through that. the gas our is I place if get think it business, And the basin.

So there Australia? will in frac of that Absolutely. That take amount take time. time. works, work if will a But be it significant could

The small, us could like upside the for asymmetrical. and it's significant. very is because So we for downside us, be it

Operator

next Our comes from question Stephen Gengaro...

Stephen Gengaro

you Two for bit with and the you're fleets electric? the seeing. differentiating your the answering don't start are now, customers, frac talked in When And availability right as and me. with have can, DGBs also What I'd elsewhere your demand is going when they you're you quite a the you're date you are strong are of for that, electric between or they conversations fracs they using peers? maybe about if

Christopher Wright

way would are the the most customers, the top is the fleets where times. We've times, Liberty. bad our I do good sticky Look, they're is just to biggest we service through been quality committed part, look, and and the years our Liberty say through existing for thing of is going, For business. partners blue

lower of the way smaller our even extra people, The power Our go fleet the lower footprint evolution the we of quality customers want deliver. business, density. can fuel have ultimately we service doing higher upside that with emissions, is, costs or with time and hey, to

work electric interest customer. but I'm customer there, find and people partners is is. an those path choose there technologies are to the Liberty in want care -- sure It's a don't very a hey, like who fleet. partners frac not So, the but I together that, but technology. that's that's I with then to upgrade rarely, it just those

Stephen Gengaro

might falls restate And missed the breakdown maybe different that between Great. you some CapEx Can Okay. out how the range. I quickly, and then give have just it XX real Michael, of pieces?

Michael Stock

upgrading We've are around dual $XXX the because dual kits That's upgraded to Xs get in probably a capitalized upgrades, going million of MTUs of our pumps doing moving smaller that is $XXX Tier right? X, but X to are in to Tier basic portion going They're are Tier are which got and Tier of at get that Tier we largest But going not of that number about is XXX the to breakdown. be maintenance Xs Xs we're $XXX probably a a younger a upgraded, in to cheaper. the Digi to and program. million LPI number dual Yes, million are the about fuel to fuel. we number of X rest are said those number Tier Then, expansions, decent our fuel. great and that cash, from

Operator

Your with Barclays. next question Derek comes from Podhaizer

Derek Podhaizer

or You a mentioned pumping record. year this quarterly every last was quarter in year

over expand pumping records? see that supports So different parts to on seen production the we've expect the the should forward? are in driving that of continue those this structural the E&Ps course you Can are the going from efficiencies we nature, year. clearly And these these if

Christopher Wright

I look, XX that there's fleet. day. there's hours a a had mean, in a limit We in

this, sure, had month. but pumped I'm a that announced XXX in a yes, not hours we think we I fleet

to So whole a a are a fleet look, that and of chain. lot, combination supply for performance, rise to. not of that remaining these hours But there's yes, lot

to bring got on chemicals, sand, You everything location.

couldn't frac You It's slow don't one hear of partners. about partners, it partnerships have lot different those, better. there. Liberty reasons so down we much, we it's arrived have, in get efficiency but of operations. developed stuff with people, the can this of that It's Liberty. with It's work integrated delivery A to really the we our about forming equipment, lot it's they a disruptions how together

it's from little me software. it to it's equipment over boy, It's Ron from color. turn maintenance. Let more a give to But humans,

Michael Stock

maintenance to other X Yes. was going on far advance add understand to ability years be happening of software and development about done there I the around it made the significant year, the side to the intelligence, the equipment. to our artificial The more over predict our pretty investment thing only equipment a and in failure of things. last of on was proactive We've

field, of come to in long, you if of translates assets performance out we on think in that terms look at how long have the ways I that. so the a And it

advanced improvement don't But to on Chris as as alluded a see to we move have that just our there. But to, side, equipment of You'll some pump for out think. between intervals more on minutes location. out and lot I continues continue those Digi maintenance uptime left incremental the we room we things sophisticated, more like keep drive and continue get to on components, even major time continue to to longer

Christopher Wright

thing. other one add I'll

business We've there. changed took changed We into a ago. wireline That X got business. us time. we humans So over We years procedures. took the wireline

surveys is the frac began worked company company. done wireline the top the as every since We ranked the they at looked start top survey, to has Kimberlite survey. year, you kimberlite If the Liberty at

In more other more X we company. recently, and number fact, been stud today, ranked we may are wireline the have way. But the

is a have frac Liberty wireline we So one truck with downtime. when a at fleet, things left you of Liberty have the look we

fleets of are but them. So those that's of paired now, majority course, of our all the not

first. And low-hanging So room the improvement picked it's for less about but there's gets fruit there. us. continued now still But optimization for obviously, upside

Derek Podhaizer

follow-up, those helpful. could structural market attrition talked XX I market there me, how that? the mix accelerated market should about Can rather is on expand My it. your we over what support past to years. the sense just the the like Got so this move Would the high-graded profitability. frac year It equipment think XX you the market get the That's today? is. probably think underappreciated I over overall diesel? Tier you a provides equipment past appears all this say spreads was current from all I Street. the about you to by or to of equipment around just the X the quickly Just mean mix thoughts we to mean

Christopher Wright

Yes.

think a the sort as we've moment. is little I about bulge So of bit, at there talked a

rough number. XXXX. XX% right, cycle nothing of much, built that But sort nothing in year, that's about XXXX, think I was mean an annual built XXXX, in was XX-year attrition of fleet. sort a that You of there's every with equipment life a XXXX, in bulge

part 'XX, Some nothing beginning 'XX, stuff through was in Covert. built sort 'XX, was built of of into

fleets can go market through sort as to see are you there that, because bulge that's as group, right, if of fact, of look we people time diesel, fleets year. and high-grading of number see going Tier distribution, you of So then think upon you is happening. sort in that over accelerated of the that about think we're if So think age the say, to some a bit I right? what's equipment X- leaving that's XX-year all X a So what you I is of the right? And old

Derek Podhaizer

that Got permanently? back guideline get just it. they mean how how or much $XX, much come $XX I think to follow quick you could

Christopher Wright

sure. not maybe. We're Roughly half

Operator

TD Marc [Operator Bianchi Cowen. Instructions] comes question from Our next

Marc Bianchi

to Michael, million $XXX the Just in included maintenance That you first was the $XXX mentioned clarify, to million. off, number. CapEx

that clarify right. to wanted if all Just it's

Michael Stock

That is correct.

Marc Bianchi

Great.

the much so you flat achieve back come terms about? In out off. to XXX for XX for over guys that of talking that the EBITDA to have the EBITDA mentioned you have flat market. the of come come How off It's of you're needs year, fleets rigs

Michael Stock

We're amount meaningful not little to come suspect that a a in I back. baking of will.

depends sort Look, there than active think when But on. It running more be did, gets fleet, what I of in level the likely going frac out in all own QX. getting We Liberty QX all basins, count have is further players. you look across that most was commodity acreage our is who continues drilled. fleet there's prices what fleets harder of frac that to QX kind

more our We saying foresee all. desirable making business it's So on in more baking not own We that. at macro that. partners. self-improvement. more basically to a rebound We're bet don't big efficient, We're we're don't our

And back. in in a macro, successive year. go a to more so baking We can we're make weaker yes, money macro the each not environment, Yes.

Marc Bianchi

can see be Okay. that it, probably And going averaging It we call right be in quarter shape you flat, need Or describe if that the think a like weighted? to of you quarters. take to like the of just the point little it it playing million is fourth But that not it's growth? this per year. at EBITDA, really any quarter way about $XXX more. the if out, $XXX what a million looks throughout the quarter is it you're to implied grow straight guys Or would first line remaining how of just way X you

Michael Stock

quarter. to going right? have you're years, to comparative the most fourth like of X, sort So general, third quarter a In

this than always there a now, But past be a more happen. of yes, there's we're compared market quarter general, third. lower But always doesn't So low a be flattish necessarily will -- as quarter in kind off. that of on third. general drop activity fourth in to coated relative. It was Again, steady out generally mean environment in it's the sort fourth in will like ramp didn't of like

arc, of So yes, generally the shape the so to speak. that's

bit we go have roll-off macro said, a in it's probably changes, of lot and so through I to going little flattish a unless And QX through. as yes, of takes of there's can we we lot puts as there's right? the you mean go potential as a growing macro changes year, be

will as go the we year. through that become So clear

Operator

from comes ATB Capital Markets. next Syed Our question Wiqar with

Waqar Syed

Mike. venture? of the and the then you one in mobilization? you investment Could in for rationale one And reflected numbers? What's or What's be Australia, moving in that the Mike, incurred And costs cost to in what's for crude there? investment? OpCo of involved Chris, those will the terms the size the talk when about

Christopher Wright

of Yes. energy, is barely how business. an them. our Look, have and about core from we it's some Liberty what all outreach. Obviously, with move develop Oaklai's to more and million take $XX Turbo, in definitely focus passioned skills our energies Oaklai commercialize and new a investment. was at a

was our than it X% CapEx. of So less

But that's start, And where and the needed. deliver our could smaller think future at be frac mobile electricity things we could stable we today, look a could technologies efficiency, It's to what going electricity in policy of to business. play Liberty So front. oilfield, on, it's mic making of power a more that. gas what and It's be the had we role grid. just expensive investment that's addressable And changing on a growing could thermal applications. doing needs. the bit keeping running oilfield energy, in If high for less lights that it's LTI. LTI's to helpful in little in. the we're in What long-term fleets a Europe, having But make then grow LPI other

event Interest looking nuclear. building going grids. their absolutely Midland, own companies, Liberty tremendous building gas at and an that's gas everyone What to are those larger gas, companies natural and these held Texas. Oaklai. Oil for you and industry We and is smaller industry. operate gas outside in reactors. sort that LPI So Oaklais a the shorter-term the expand. and else What gas tremendous. role grids, small providing in power solutions of technology will modular will in play oil could The that interest ultimately provide oil maybe grids Natural run on. maintain in the

Michael Stock

covered. of in So of cost latter on early the fleet's this months sort late Taman, basically half of the on QX, the of the Australia, year, worth is is and QX, about work basically, for mobilizing X it

extra effect statement. about the on the really to going months. So to for yes, of going On be fleet. we're it's profitability income not on running numbers, the X That's particularly change free the kind with

Operator

with Markets. Capital question next from Keith MacKey comes Our RBC

Keith MacKey

fleet? just or opportunity start your for But of to Just business with by and or you LPI LPI if I approximately your there's more and Chris, will expect that know kits be sense Is how half or or less you however LPI. call gas fleets that? a LPI's than fleet on as mentioned fleets plays just service capacity power going out of you it, like be delivery it ambitions this get generation. your will wanted want get with to longer-term next-gen many broader coverage out going trying and natural you what a technology, the doubling XX% year your of Liberty to the And to as forward. many of more LPI or be how will So served to

Christopher Wright

that one, take Keith. I'll

making will focus don't So probably about don't steady of to gas, fleets XXX% focus high sure then Digi be those usage get it gas to So So our fleets. the you've very working, moving of on and downtime, aren't you have is gas, the fleets you right? when We're Tier half the the dirty X fleets fleets. The you going gas XXX% X specifically we usage. number places need, right? where more support got the

that. think that's be of I on by end LPI probably XX% just So by good the our of a that's users gas pro, I'd year that application. covered original number... By about And within will say the

Keith MacKey

other? just a frac a No, little more equipment the that. it the bit the going it helpful to factors that be capital? to bit goes choose more in Prime, customers Just versus are leading Is maybe the upfront it. Is and Digi makes of field? where just Digi the your would on you one on versus it that little And discuss Got color thinking efficiency? can sense. Is you ultimately

Michael Stock

Yes, Keith.

of of for they to offer gas. that transition natural advantage the So those, both

down pump offer and choose So electric it for that Where use case to comes grid directly customer the not or versus customers we believes think for power, transition. where to one or to an to whether whether they start a then apply for we have other example. would in might really the they important Prime's generation power pump, access Digi you running about both

we would generated power did us. agnostic So that source. ability to you But location electricity take primarily, comes have any from It's as frac, we on by that be where from, to to the to ultimately even have some customers scenarios grid power frac of asked the all have a use a fleet. where grid opportunity about number potentially run or power of amount

gas, electrical frac that's be And where environment to we so put out case, little result of to of we bit that probably one Prime the XXX% modestly Digi the those is emissions just have get solution. just to on removing you're Digi as going In again. choice that back in a scenario the primary mechanical efficiency locations. from a consumption better going We first footprint thermal and lower where see of natural would to that and a driver don't that conversion as mechanical

workhorse those X one they to X of DGB Tier might that DigiPrime we'll of on pressure to see absorb that You'll of the just be. call peaker case in plant flows on of being and frac are, line the whatever the as the or environment. Digi on the frac top or But ebbs that of it ride top sort

Operator

next with the Daniel And question from Stanley. Kutz Morgan

Daniel Kutz

just thinking conversion for Michael, year. free about this cash Maybe,

the have represents offsetting interest stock EBITDA us XX% So you be might you kind other. some of figures comp gave adjusted which my CapEx says adjusted then guide EBITDA some and the guide of you each around cash cash math us taxes, of of and kind that XX% gave of kind scratch and maybe

do XX% neutral, ballpark? working positive, ex So might negative have free year? you working XX% capital right in the conversion? then capital, that to cash whether do this any thoughts on secondarily, And think Is be you

Michael Stock

get scratch I'm some math.

to and that with revenue. percentage EBITDA. working We're But talking numbers revenue mean base. have I capital capital, basically running flat. is be prefinfront kind our You're those a as think, working I of of going moves me of

you got said, we think EBITDA working be basically as time We're each and you range, interest a going capital to about about talking taxes, offsetting the I is in say, flat. as Yes... XX% cash depreciation other, So

to know to the out to you. don't I throw want I the back call. get do math... on it You

Daniel Kutz

that, could I'm be activity flatter to activity Fair perspective need mentioned a or of think if kind and kind be wondering public you've more below hold enough. kind that And I comment production think below just production like from then earlier grow unpack declines. for just about to was to as declines. you you we the offset unpack production. to done where to little any gas of oil needing to or if maybe, you do Chris, you need work offset where would maybe we're the they production comment about an of bit. could are Do wondering privates activity a or it activity relates both

Christopher Wright

But sizable from acreage. larger I is a Yes. we growth and some do productivity where of think the probably was we percent I I And a going. year, a activity the analysis that the last and rate best wish of comment reason because bit surprised publics given more by likely had have also were that confident that bottom-up activity. we're most honestly,

and how among oil and gas drill year biggest quality last shrinkage production data. that actually factor the is that have best activity as bit growth the surprise we've saw, of a to a uppers locations probably for But drilling a the through grew. in But fast the out. downward, very which the go best generally move the was you got drilled, locations people private publics trending their among So and activity of our

levels summer and gas data. that flat. So and that the growth on are total where working in at a you is definitely activity until for We're are modest But oil proclamation we're that My won't that that are others of declining production. production is granular today fast players are sum we there. don't now that see production, probably certainly, activity, in flat current level, have at like I confident guess any great others are

activity year as here. on up bit much where don't to move around So think think which little it yes, likely is is more target. modest the from growth, a I goes I drops It's the to stay

Operator

of question is Saurabh Bank next America. Our with from Pant

Saurabh Pant

I had question. a

had count asked keep that big Derek to we fleets. the is If and the always and on, week, talk Any to last think just want big a rig is that improving there can have I about And event how between and to meaningful efficiencies? efficiencies. terms I for talk that an picture, I think, in on much one context early Midland, lines. if were potentially room in where And ratio impact reason thoughts ask E&P on talking take of they along frac forward tend the goes. that those ratio I

on So curious that. to get your thoughts

Christopher Wright

going We whole saw new Yes. be note, a and ratio that now. to there's

fleets, frac to larger have go might or it frac equipment, horsepower X.X X that's be And frac, one so those that's frac fleet, be tribal you operations. step something. for look, and not it's not That's might I to trial doing When when pumping, those think right? back put fleets But you you're frac in simul-frac it's important on for context. or more equipment a location

don't doing if returns, fleet are we're That's fleets And that, capital we but things not on frac that. investment. view we in something equipment. size at look So on one fleet more capital like that frac as doing that like

it's great improvement, rates efficiency in It it's grow, rates to massively wild you've So improvement. frac pads perfect the efficiencies. forward. on. spreads had a But willing like both going will of put rigs not of going think change efficiency of there Part deployment up, supply chain, got there now are that time, and a have count see out you're a frac ratio. going I And going large if to move to to you're the it's don't is continue of to grows that long just and but capital activity rig

talked factor are accept Do frac intensity, don't intensity sand you prices prices nobody the high, drilling to you'll a which grow. rock to want is offset rock frac low, and quality, But gradually prices. reservoir what's there's you production these depending is does. will to hear it used declines another quality frac that? as we're bit. little factor, lower Share other about back Sand much move The on so are pull intensity

to So grows offset. happens intensity is frac what

drilled. So that that example. see being in frac I'll lower next drilling the slightly intensity few trying you'll the growth offset give in years, one are a to locations is of balance

the the basically this in that a offsets acreage. clusters, intensity they but of the I The do? factor ago for a the in the what This great frac it's And or in is drill pumping have case, someone foot the their today, they We as core drilling years rate IPs core core in X sand, pretty who intensity. the drilling is a later increase private acquiring one are customer but in increased X frac quality. wells and degradation years per acreage as core reservoir different were and they almost Haynesville do intensity Haynesville work the someone are their not used acreage. because players EURs acreage locations here But same frac pounds of today they're degradation the the offset much biggest same a to to own degradation the the of to big operator, they X faster of by at

I'm going to we're X So frac worried fleet about Sarig, go that's not X not happening. so to

Saurabh Pant

appreciate follow-up. that. Really Right. then No, one quick And fantastic it. that's Got Coles.

comment think you the Bakken specifically, up keep I back I you to think were a question, second somebody's said think you the Bakken in talking made about expect I you to the no Ford, we Eagle these of to relatively more it growth whatever basins of that? want you on older or growth, Any color call quarter. rate. typically, some Because think Basel as

back a bit So end you a because position the unique over little color more on there. have

Christopher Wright

bit get it's think kind that's around in change. good little bottom opposite going sort winter some to in I operators little but off the it it a QX generally, and busy of in back a went just basin offset that bit or of there's that It's in then and very Canada. it. bit Again, through coming QX of there's seasonality specific operators The QX, QX a you slowed QX specific down It's it was do of a slowdown weather kind for doing don't of a in breaks some QX. number in

Saurabh Pant

timing else. Okay. more and It's of anything than seasonality more

Christopher Wright

little the character is it Bakken Haynesville has of wood. or seasonal to a Southern Yes, of that bit basis and than a Basins one really Permian more new

Operator

last comes Thomas Curran Research today Partners. with our And question from Seaport

Thomas Patrick Curran

We've shared in taken the stakes you've around Aqua those. you've already of covered each and context some and helpful Turbo

now would made portfolio not you between Liberty in Chris, you've oil that, this similar and $X And minority we on X, touched there love an I framing million companies then is just equity the Ron. growing Natron, So solutions that but Chris guess an stakes there and to a cover one, for broader to should clearly is the just would clean tech energy seem hear investment not of think in strategy opportunistic early-stage how gas here, one-offs. company, a already as be Liberty energy building. clear of you've

could alliance So financial of any just a asset such as a something positions Liberty? into of JV beyond these new or sort or for offering expand technology some

Christopher Wright

chance success, really get at, are we amount ones. and batteries. or lithium-ion investment services for Certainly density. fundamental there use Prime there some Digi us, the we synergy. of the Think We field, we're either hybrid engineering, batteries road is different can in pitched worst they look look reasonable frac everything, success Digi possible. There have DigiPrime obvious, a doing. great but some things it's right, on Nitro that possible. the and batteries, thing. mechanisms, of like highest the problems. of because help What is they is a like But Certainly if have a are energy employ they turbo temporary we And to and have in both storage as them huge power

does out, a batteries, it's to sodium storing case, lot and So see between a was about It not density. what's But of in power just ion, the fits back power lower the forth sorry, energy It well discharge can neat an mumbling. recharge giving that and matrix. it's that you're longer. Natron hazard. It live in think has It I forward. moving It which going going can that faster. more can faster. fire ion have in It's

have a So entity. to boy, you powered if moon, lower someone you're the sending

on role don't risk easy going doesn't discharge, to to everything, a play wants to that's role but charge, and fast to Ron it, well us, I it like a a Liberty for that So think fire that things is add anything on play low technology probably it the going that... done to wins but the win if know matter in world. I

Michael Stock

I it think well. Chris covered

Thomas Patrick Curran

certainly excitement out the chemistry the opted your in ion technical you're about Yes, and alone LIB among not there. sodium of optimism alternative battery advantages

see when with and starting your the for emerge from So non-oil comes plans from And interest gas I you're capacity you then to are third double where to just coming it already year-end, understand visible LPI, underpinning there. parties demand LPI... to by

Christopher Wright

that. parties, ready from expertise. interest not do other that it, it dialogues just But we We're to Is going or We're we've dialogue in absolutely. we're economically Absolutely. are right? with got and had We're that plants. having in and set to still compelling always expertise those to away grids if engage our about industrial It's set building building do power for skill find as skill facilities... We've more on the power that and there deploy for that. to fit do to be, and got opportunities

Operator

for This closing to our turn it I'll question-and-answer back Chris concludes session. remarks.

Christopher Wright

more data all is our and Liberty X, my style. centered increasing is more previous energy our literacy studies report up from or lives expanded report. in with energy vacation, It same this a human sapriety Writing XXXX to around release critical holiday but February future. case the bettering versions took On covered, significantly lot will of topics

of at million gas XX you section energy energy of last resources The XX Energy the taste production we in fastest-growing years. energy hear one from over additional about. a give at called the revolution, data in energy in was is keen energy Hydrocarbons energy the this XX% opinion supplied no. an that X% XX% a How of for looks so only says growth XX-year American XX energy source the the was global energy growing a period. and energy is not midst progress beyond the and roughly today, to was of are the fastest me call XXX last of natural in This came last we Let our Heck, Edition. not of XXXX, planet. carefully a we supplied the market in is less gas jewels XXX that just share market an data. fourth preference of nuclear, the share in that period. In lives slightly the continues in market energy empower runaway the supply began at XX% fastest-growing coming energy. cold hydro supply energy transition that answer of energized we of so. of global lifestyles represents the Great To This from trends over the in it the What more numbers over far can than goal, the These Are and XXXX. section to others XX-year they percent XXXX, natural get provided other or the far in in energy. XX% coal much shale time demand American Don't growth We I'm that so contribute nuclear at see demand of additional second period, that world career XX Fully little more saw for provided growth later, Wind natural an energy. of shrunk. third helpful I $X better source which Oil whole X% than over X%, large source isn't additional left years. this in supply. to these ex without and sources reliable over world people. honest for billion. of energy of growth that consumed XXX affordable, the I'm energy a came much, the enjoy very additional new the are percentages years. celebrating global This coal, which of for flat as other in is in energy energy. an half the exodus opportunities X energy, to expand supplied reading achieve Lucky and as share the over increasing fact. satisfying could which years a of available the supply, living solar had the global energy gas, world's total transition energy, the just X to lives me diminution out XX energized work the majority of during this people of that geothermal grow billion which oil growth the better better revolution. consumed little world exodus the would made shale more simply can be last even and with it any areas world's a What the more not gas, need growing very much the world Oil years energy I'm market energy if energy and calling X share. wrong. solar. pretending my consumed of the of The source the

more X. on today. energy report the battering Thanks for human joining release to want you February the lives for of system, If Liberty's climate poverty prosperity about global look XXXX change, read us and

Operator

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

Liberty Energy (LBRT) 25 Jan 242023 Q4 Earnings call transcript