LBRT - Earnings call transcript Q1 2024

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, Director of Investor Relations. Please go ahead.

Anjali Voria

Thank you. to first welcome conference XXXX and call. morning, Liberty quarter Energy's earnings Good

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

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

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

Christopher Wright

Thanks, to you operational Anjali. discuss thank financial Good us and morning, for our results. joining everyone, and XXXX first quarter

Liberty's technology the and in benefits year creation. delivered energy performance and companies appears Liberty's and to be highest operations the combined average efficiency to talent.Over to technical of what the strong innovation, a first industry expertise fourth seek larger industry continued for across of and gas demonstrate production in year, oil solutions drive pumping in investment the North daily development results cycle team and is value safety history. enter American our we last leading activity, quality As service durable consolidation quarter the pushing the

EBITDA XX, outstanding our of March by quarter activity employed continuance deep first our for drove shares $XXX generated July XXXX, a strong I'm continued marked free and on during history $X.X on cash trends. to shareholders of ended cash million achieved remain the flow. returns. Our billion of focused XX in operational cash $XXX million the results revenue months distributed first pretax we Since of outstanding to capital adjusted dividends. team of return strong cash engagement $XX and have retirement returns and plus We million.We industry Exceptional customer the strong the distributed now flow and shareholders execution XX.X% strong represents XX% softening quarter. XXXX, adjusted of period of through the of generating proud our

advantage are competitive program. in initiatives profitable of growth We investment with that pairing our a robust capital return increase

believe capital-efficient gas-fueled we critical require opportunities low deployments uniquely generational from which is We Power growing towards power and are natural gas. the Liberty power comprehensive supply gas be benefit of will of industrial demand leading serves from to a in solution customers emissions, the development Furthermore, a and generation resources. of our CNG and their our oil digiFleet fuel shift beyond technologies.Our data for oilfield. reshoring served wider sources AI-driven these natural manufacturing and to activity reliable domestic from best by centers well-positioned power, Innovations supports

and this manufacturing.Together, fuel technology, critical our ownership areas our and expansion efficiency control systems, Our come maximizes power pump the have our our expect to in efficiency fuel complete infrastructure that customers from of deployment and customized ongoing that of end-to-end for enhancing cloud-based solution first service successful management partnerships, service software engagement Seamless rate, sand a instance, automated rapid to our our investment solutions.For further fuel to next-generation provide customers solution our partners. a control on-site best digiTechnologies which operational and grow with operating integration we generation lower our to from digiFleets power see tremendous to superior control fuel across deemed through reservoir chemicals our benefit in innovation pump and of and enables has as advanced few customers, conditions we pumping and direct The customer cycle pressure, key to with customization are continue strengthened efficiency. basins horizons This allows consumption. with such and fracture our variables optimizing provides and innovation. customized treatment responds generation important technology

expands oil the operations strong digiPrime. innovation sector future. work. to energy reshored conversely the above incremental have highs multiyear safe XX of systems. service with been for of a Liberty day have will the choice.Global rising in consumed efficient gas and manufacturing prices the Advanced excellent.DigiPrime drives disciplined as oil encompasses march pumps thermally last including of supplier projections while per of enhanced The the focus we latest moved downtime Technology the demand domestic static profitable minimizing improved the billion, the commodity in cuts to comes seen and to demand the natural dual leads total the demand, the division, to delivered solution per has formerly customer, digiPrime and Liberty diesel tensions. to $X ownership. manufacturing, at to digiFleet We fuel is LAET.LAET per in inventories strong power central although equipment and through through primarily in internal constructive emissions. dual and our oil of companies will natural design oil growth automation both gas power gas owing natural design maintenance DJ alongside global Technologies execution in in risk industry prices industry Oil AI optimization compared and consumption. operators Liberty's gas Basin growth and have been demand power when American performance foreseeable Last driving This deployments.In gas believe economic cycle pump exports efficiency weather, focus focused Bcf expand STX Iranian there's modest a for are voluntary exports winter position prices outlook, disciplined quality launch ability technology gas very the and process. uses to technology impacted, cost reduce per facility. to diverse innovation or is ability softening any years declined since reliability barrels X technology service. gas in known with alike. mild year, these of and our in incorporate commence diesel other ahead. without in years.The that LNG coming while service alone. management that software over further strengthen recent on no North ownership Yet and and day been companies design, term, are [indiscernible] relatively since natural systems operations both Innovations production in continues continual fuel demand now our export increasing considerably from our grow we years for changes multiyear sales consume materially augments decided from months returns fuel drive not and and nearly our can services Power industry-leading in and to market, and with the commissioning rallied a of the likely field launched prices and scope, and and the accelerate costs. first the steady of less in our division, pricing geopolitical months. Tier from that of XX for Natural demand means quarter, future doing we and production well investment capabilities energy CNG upgrades say nontrivial success U.S. to lucky engineer and decade best Software North efforts expanding talent, year, manufacturing consumption technology, seasonal has fall, future rapidly Equipment technical billion of that the and gas owing manufacturing has the Iranian with and norms.Natural American onsite total rivals to pump is offerings ongoing three. the for an and lowering engineering have OPEC+ to as volumes design supporting surging on the while as of DGB this most in decline. the materially Frac Liberty's grow the the same innovation to early year, cost from After our quarter recent to frac feedback range reinforcing digiFrac have several performance of our Superior new pump continues one global our only XX and and person Bcf Globally, It That remain package in future development history, the complete fuel equipment higher the following borrowing higher, E&P the analyst services. industry service dynamics compressor demand our

stable sources power worldwide. better We low quarter, Beetaloo efforts growth supply double-digit by reliable second are through our also exemplify which revenue energy on efficiency over cycles.We continued Australian positions in strategic sequential expect digiFleet, improvement plus corresponding pricing confident fuel partnerships superior and shale with to and are increased in LPI basin, in returns investments our gas in our the us towards growing In that excited deliver we the profitability.

return program.With the outlook. that, Stock, supporting discuss to to generation continue flow our expect in Michael We strong our industry-leading to financial capital investments and XXXX, to our results I'd of technology call transition over like and cash CFO, turn

Michael Stock

first started larger technology industry quarter sophisticated tailored and to integration, By a deliver have to compared our been aligned and E&P revenue $X.X served billion delivering and and demand with on strong fueled in their customers prior base exceeding A a billion Good quarter. the our that we capital. challenges softening scale to of the customer $X.X during first four increased these growing able by of was return superior a and year to of morning, complexities demands.In effort focusing solutions reliable everyone. of we've return deliver ourselves service XXXX, best are on concerted meeting quarter requires meeting solid more the last mitigate the the a by customers. investment, by customers, the quarters We growing results,

services line our other expectations results as pumping quarter, flat with were prior market Our integrated with prices our efficiencies the and in and and headwinds. offset sand lower and consumable

after tax prior quarter. the of net was diluted Fully in compared The $X.XX quarter. per $XX income $X.XX $XX million net quarter in prior share first million the to income to compared

] height of compared adjusted quarter.Frac XXXX to XXXX, prior quarter $XXX appear to markets EBITDA since and the year. was early have late in now stabilized [ First have million late since softened but last million $XXX the

modestly Our expenses first the General $X quarter. quarter expense flat $X first expectations. than was associated expense with pretax $X administrative fees relatively as million. in compensation of million million in the line quarter fourth sequentially compensation quarter, in higher $XX totaled approximately quarter results income. quarter, million quarter for tax the in million, with of $X decreased million included were the and the stock-based current with performance-related G&A interest noncash was line prior totaled our $XX and relatively XX% Net and quarter.First prior

end year. quarter, year tax tax first increased expect and Cash the debt of debt quarter capital. in our cash approximately in taxes for pretax fourth to $XX cash by book expect $XX rise to net be the a XX% was with XXXX quarter XXXX million $XX balance in Net the rate full due approximately We of income. be the and the we continue million $XXX to taxes effective of of expected the rate of from the XX% We to ended expense million. million working

the million. the First of dual lab $XX projects. infrastructure, We fleet ] $X $XXX fuel capital in including and was from Net were included other included sales million credit $XX million expenditures in share had cash quarter. facility, the capital buybacks of construction, which quarter, availability expenditures, cash million capitalized in $XXX dividends.Total asset spending million quarter liquidity first under in upgrades, investments quarterly LPI end approximately and in of maintenance proceeds uses at quarter, the [ the digiFleets,

XXXX. for remain expenditures capital on Our target

cash distributed cash program of commencement. have XX.X% dividends repurchased $XX We ability are of now shareholders and dividends. remain through our to strong of distributed worth million return quarter, reinstated of Since flows and X% our cycles outstanding shares confident we the in we to nearly return in or retirement to we shares capital through the industry-leading committed of generate cash of million $XXX our program.In million XXXX, in July outstanding capital first $XX program and shares at of

opportunities continue deliver our long-term We increase to generation. program reinvesting of capital our high-return while return flow that in on cash

While Liberty among oil and In is we offsetting modestly meaningfully, our Frac the utilization see relatively better gas Canada. basins slightly prices stable quarter, spring Services.A improved commodity most in demand and trends lower customers, to to second break-up resurged gas than higher levels we have continue trends. owing basin activity in more demand favorable oily that weather-related primarily expect for offsets

revenue We are double-digit now growth. and adjusted sequential EBITDA projecting low

expecting also the throughout to this deployments are digiFleet Xth later year, ratably We fleet our quarter. continue including

source across the emission comments fuel to power two-pronged fleet now demand after our one, have some profitability; Chris on incremental LPI, of end the and of executing are Q&A, at will We generation power strategy: which brings for industries.I digiFleets next-generation fuel domestic back in rising operator low that two, the turn which closing call. growth of the a to it will support investing

Operator

[Operator Instructions] The from first Read Roger question with Wells comes Fargo.

Roger Read

congrats to go the of issues Thank pricing. I'd you, We market say share. like everybody, wanted on Yeah. quarter. a to see grab up the competitor follow they just on did and

will You've curious was dynamic like things here. and a obviously that But just the is working how market got that. fuel that lot I everything better that, of back push against pumps

Christopher Wright

the in Look, really down, has count They've about if ago other fleet pricing got since has modest the right? probably say there's any the that's Yeah. Good And fleet you're sort business. quarters And very moved that. are way downturn. and X gradual.And slow, doing And to the fall the because use much been count line morning, pricing going Roger. conditions of going down fleet industry technology XXXX. and incrementally that a It's peaked And negative with count in peaked. pressures modest when who gently is of it's very then. of than just quality This choosing in pressure. pullback. more I This compared been is price, and to gradual just would you've

And in So there up direction. up, the meaningful. on start to activity. would it say see is but gradually not as very we're pressure I know pricing pressure does bottom it near count moves meaningfully, pricing, said, I move sort we'll we've fleet probably other when that modest in don't a but of modestly

the for us story pricing world, So the relatively in remains boring. Liberty

Roger Read

are more That's gas driven? a gas I And of going comment where they the kind see your from change of it following other in production? then start we what good. of in up here to synced maybe it customers kind it the price your indications on we regions. recover prices or there. process mean, in the just at to get need point, direction? Is Any and Is increases? export Is that LNG with activity any some

Christopher Wright

Yeah.

there that and is that. have I a pulling XX think be upward I prices But customers see got thoughtful rate. yeah, export And that constructive think, much that, need pretty than that, look constant next months, actually some I the XX volumes that they've are about to meaningful comfort think they is about are demand to a firmed today. customers dialogue going that or prices at more

as early this year. the in next It that's be not gas year. be might till could end So it increase as imminent. That activity, not of

Operator

Gengaro Our next question with comes from Stephen Stifel.

Stephen Gengaro

me. clarification. just One a for Two is

mentioned ask growth think just low apply don't the want to because was should how -- to for quarter I But -- of well. in directly we it think I as I I think, wanted also than you general, said revenue. incrementals Michael, sort that. quarter think -- to this double-digit second thoughts grow second you the EBITDA faster you if on guide said your will curious would EBITDA revenue, just you about I but

Michael Stock

chemicals, of moving Yes, EBITDA of revenues We're move you I Yes, growth XX% service so their mix process. sourcing double incrementals. some to through lower pass-through to is versus in consumables, Service sand clients I relatively some on as helping this we forward, and our revenue. there they pricing change go as that's digits, have where low did kind of similar are a is we mean, as get back a than relatively Liberty revenues. sort that the to margin service and flat, XX% which say

Stephen Gengaro

about Great. activity, far second some activity activity U.S. hold to done think question when about think this -- the as levels? production frac as And needed what's you think guys sure versus math, and we drilling had production then you you I'm and current where stand and levels have I was, think oil do about current industry you at of you

Christopher Wright

a saw That's is the is activity know probably in production. U.S. level fine guess we balance. flat I big consistent decline a oil today My January. with

that's not that monthly meaningfully look, will certainly grow U.S. Probably activity production. stay at And think prices I if where on flat a production. little fluctuations. oil some year. is But today are, the we're bit an going they this end to are going to activity year production privates see ultimately modest of incremental later you're from we probably. with growth, And activity

Operator

Mehta question Stephen comes next Goldman I'm Sachs. with Stifel. sorry, Neil from Our Gengaro with

Neil Mehta

ramp. I the in think there half, think that guess I I EBITDA, would And year. guide. about the are back reasons, QX as flattish of you half. my versus do solid the half really lot And think focused to was back we versus half back the be there on ramp the of a of in be territory last question a first kind really A of year

your versus curious of some drivers the team So just be on perspective XH. on XH in

Christopher Wright

are, prices. I year. first than operators where half in flat half pretty see oil is activity think If mean second we'll they more the the of going for prices the activity publics, would I private forward. the say I of the larger year oil flat -- mentioned Yeah. I from what stay

Michael Stock

off We've the the you're drop gas in of Yeah, going seen basins. already roll get to the Canada.

I think that's see to where get guide the we already baked to that in. for And year. flattish that's

Neil Mehta

capital right. didn't is And All about of then yet. helpful. That return we Okay. talk

your love sheet perspective, shape. the balance starting just I generate cash is So flow, to in good business free real

what do the calls excess cash, bolt-on So on for returning potential M&A? about are And to cash how including that shareholders? think you other

Christopher Wright

Those day. Yeah. with every decisions discuss, debate, wrestle are we

last to got And it not advantage. We technology, than have things. service there and every that's and us competitors. a larger deliver day, is a investment got month, training, strong Obviously, that's humans, business our burning better scale we've for quality that's core day, not all gas key every last transition this We've competitive culture, those to activity. that's year, we've that's got

we've of the now. a that level for at much pretty think I plan laid peak out probably that.We're right

and So oilfield single-digit years. at technologies, strong in have, maybe got technology Right it And to execution we're but to exciting, but competitive very year price as continue this line. go electricity of about on frac trade it's to this on-site we'll in in position. of return delivering although the compelling back invest earnings have the we this the investment buy a incredible ratio. future an nailing stock.We've into course, coming run rolls We've capital, our investment a gradually still you at probably to is quite to We going pace a new we own measured to then, new our that's LPI and business most balance the business operations. new slow in now, the the got down fleet years, go

ever it's look things. -- business it's changing the course, we that of between the a a got that outlook quarters. advantage and competitive that those coming just balancing a keep likely have always bright this this always balance But for always ahead we all so the we're do don't in and So We've can't future -- should the us, by yes, and see of intrigued to so to today us. just only We year, strong opportunities future.

Operator

with from Lemoine comes Sandler. next Piper Our Luke question

Luke Lemoine

then performing? in X Chris, first maybe Tier you the But believe fleets kind later those And by already to talk X X going how the fleets have been field, coming X, there Michael, and is talked this digiPrime, number XX versus X still consumption you allocated just also you about I fleets if just said you're customers? fuel the to XX of year-end quarter, could are DGB. about

Christopher Wright

are. are. They They

The we larger build. said interest the the than of As is since fleets the there we've start, interest amount is can large.

rest but So those fleets yeah -- and they're this the of know who through year, to going going. yes, we they're where

in technology. are very place. is plans those a digiPrime So But different

love yeah, the The operations, So but things. new. change little brand that. I got say, to it's There's we would early are Oops, idea. great,

design performance the we're So But the is super high power that whatever. efficiency. thermal The or out tweaking are that density, yeah, the pumps impressive. there,

So but burning diesel you're instead actually not gas. gas just of less

there. you Ron, do to So anything I comment think [indiscernible] that? on want elaborate around or

Ron Gusek

you covered Chris. well, I think it

Christopher Wright

You We'll out got you come visit some to one. day. to take

Operator

Jayaram with Our next question J.P. comes Arun Morgan. from

Arun Jayaram

see of the the of think you added more and sequential also to pumping efficiency of versus for sense wanted to on a you've digiFleets more a little outlook of I I if you're couple fleets, obviously hours going light bit growth between existing could that kind I'm topline drivers double-digit dissect LPI. sequential XQ trying in or between get shed to the XQ. if second on a quarter

what's about think growth? the sequential us help Just driving

Christopher Wright

right? different with people you programs. weather, got is the calendar, with At just One the thing you've start year, of plans got

but the are probably think just factors, thing calendar. let single ] [ one. I'll that's add the So Michael I these biggest more other a robust fuller, biggest so is --

Michael Stock

stronger calendar get or whitespace general move, on which you very little had to sands the money offsetting. look to those has a have we then on come technology, putting pumping price expect obviously, of we efficiencies, down, Chris the days, helpful that very, as does, which being been weather. then And consumables We degree, with a And offset and sand said, with better market continue as you've has side Correct. and that that by, improve, as clients. always we the as less into very it strong over you're got is helpful price and slightly especially our it, clients we our save that some and on help to

of those Arun. a it's things balance of So all

Arun Jayaram

enough. get questions amount a Fair Chris, we LPI. decent on of

I wondering growth the you a talk give that opportunities Advanced your if sense a you Technology, business for how bit about big little LAET was earlier is segment? about us ] [ your or So more maybe that talked the of prepared in just future could And Liberty remarks. which

Christopher Wright

It's nearly mean, And bet. is technologies, digiFleets team, on-site look, digiPrime electric LPI doesn't fleets. You I also building those about fleets fuel building. supply power it's generation today our business. about the LPI Today, today? of small our do It infrastructure gas relatively understanding to and systems. What does natural today. it all fleets course, to of delivers and dual

early -- think I us as to this securing in just got that that technology, tremendous, it's tremendous heard But growth So is opportunities.But is business. key you've securing about for say, we electricity. stage the and many just look, for and just years. needs chain. for get been it's inbounds operations outspoken mean, supply I we the now -- The this I've growth the

have very firm, last prices with policies very and now And driven in our very for I it decade. and demand that in slowly electricity. will wish colliding growth, for -- opportunities see are electric but tremendous country policies we grid LPI struggles to down that wasn't, our constant in demand demand. providing grid grid, our has electrical country. growth is over and reliable, poor going affordable little cause electricity.So and up, some we'll business the fragilized reliability this this We followed rapid those for even Demand natural generated gas grown we've with be bumps with

be But Liberty? and of a future? tremendous. future bit is today it big tell But big we're as LAET in think in the Ron business is doing And and No. a going exciting will We what it why let to it about business is it. is I'm little you the will. it LPI So a super well,

Ron Gusek

pretty Yeah. around XXXX, probably into pump. with some a getting decision now, around to of in-house design six integration from around That started back guess, ultimately and we the assembly capacity. going Look, STX made from and our the vertical a years and decision manufacturing I to manufacture acquisition control conscious ability bringing -- a

some As the done we're this from we fast middle us it in forward control that and and decision process We'll a customers, from identify design control internally -- that opportunities to with makes our side of packaging our some the is well, for in-house.And the do to input to design sense out where the exactly amount advancing next-generation conscious so handling and hearing able but work over today design LAET for still with particularly some for great long we're engineering control closely ground particularly that going them to to time. there very engineering the to and partners innovation retain technology of that in for that to work the that continue are digiPrime. engineering, amount digiFrac we're been the packaging the of packagers take of design same to have then We control things. as us equipment. beyond now of of in we have even the up. be our implementing entire which third-party and the transition field, a today, we -- feedback And that internal to from do organization. We We've that, baseload

Operator

Citigroup. comes Scott Gruber question next from with Our

Scott Gruber

that directly opportunities With for to here. is rate gas can from frac the prices costs growth fuel, I'm lower gas contract you turning benefit such just supply set provided or resiliency and negative benefit LPI. that dual prices Waha whether question mainly you negative Gas fuel the have you indirect negative, the Liberty any A up e-frac where curious for and

benefit the how wondering of kind Just to flows Liberty.

Christopher Wright

going indirect. We're Today, different will. Yeah. of will and to that. capture future, we sell commercial places input in different you Today, oilfield. be it outside of is going But going even we the setups And bet in cost, to it's the and Gas arrangements. think with it an the electricity. benefit we sell different don't we're to

goes benefit now, our that. well, yeah, of selling to we're of into downside but market. right But have by gas course, So also that that they excited that benefit -- the customers,

gas course, it can today, abundant, powered and diesel. decades diesel. will pollutants why an infrastructure just gas machinery it large more when powers that.But for when tailwind further we awesome come. lower bring that can you on benefit don't lower world more gas versus do gas So But no, of of of the Diesel it, you a emissions. you instead to natural sense It's it cost, from industrial got and just is take cheaper, is to with you've when fuel machinery large greenhouse and makes can and just and lower power

Scott Gruber

egress here, privates cash you think wanted Got to do to kind I following a for for your out oil with in that it. in privates function egress or And to see back on and the potentially circle better of the Is more up need a is just regarding Permian, the wait Matterhorn accumulate mainly picking activity natural basin? of start rebound private time later in year. there up comments factor then particularly gas the of

Christopher Wright

pretty incredible Well, -- of matters Matterhorn in but look, all basin, those, a gassy look, it's a combination bit the of because Permian, a think lot but of it's of I production. do

gas too. matters economics, drives but oil So

likely were the year you year. produce a this activity. operator, a be from So If margin, this yes, this we're surge is expecting value more negative pipeline improve earlier there's you would huge capacity drilling. increase value get to some further of than year or were prices, definitely to economics similar, in oil decision. not addition in later if on prices less will or look, more be and But later we going yeah, definitely when And oil to better private gas, that

Operator

Our with Barclays. comes Derek next from Podhaizer question

Derek Podhaizer

I to wanted LPI. to back go

AI mean looking earnings. opportunities about that you how market earnings outside oil the about we specifically this and gas, power And the about medium PPAs, centers. help over for will talked of potential Could just I stable talking You decade-long think be term? at the frame data us? you opportunity more

more little Just that part about of think a the bit how business. AI to

Christopher Wright

developing flyer we're We're the same for of business. and be going a Yes. a not That But has this. technology idea. it's take today. to always the some for going It's on us, crazy taking excitement the different to been expertise us key same

We for the control to frac fleet. power have your just of operations it's always our thought essential

of us, we've that, from fleet, do are all that our but for delivery of own our those. the they our projects? to by fleets. this your power be mostly sorts that technology, XXXX the the not going start and that electricity remote expertise see course, question, the that's electricity run year many that some not next outside that of there But to to frac about year hey, early a infrastructure different developing fuel, we're so we yes, many, on.These We in more to oil stable It's start year. gas, deliver and be look, And -- the now. be. there developing But And can it's dialogues operations, ability expertise to building we're known things of is and generate with and contracts, probably larger yes, are some to original thing. Are going will

us expertise going to yes, just give our dearth And business.But struggling already an that it's a core business a marketplace of the with always into and that of that helps so that key is it's us -- power. a will our be up leg part core to development entree

industrial near-term You've activities in for years, for this got are, but any get additional country. data many for not your should situation, but situation to in in industrial to power we're center customers We we this affordable going be and be this it's or your operations, to years. hard

will yeah, Liberty. bit probably more probably So little a high a for return should give be more But for it more profitable business long-term, of a fair amount us, -- stable a leg yes, later. we color

Derek Podhaizer

helpful. back over That's frac. Switching to Understood.

to of the think remainder for year. just the about fleet want count adding Just of the the maybe additional digiFleets. interplay And

incremental retiring versus DGB to You talked going XX, diesel X sense towards replacement fleets. XXX fleets a Tier being upgraded and dual-fuel I Tier fleets, you fleets had going guys about X X -- to think getting of diesel just what's the

that So of overall expecting may fleet the the and year? as just how your we that year you're the ramp of help work in back the view the mix high-grading through half

Christopher Wright

adding in have fact, as today. Yeah. into fleets. this Today, not later is fleet to we year. marketplace any it replacement about We're And the all capacity plans don't new for it's

a comment existing want with to marketplace. marketplace. it's but do from that replacing about going profitability. the today to is not X zero add about has this anything and definitely Ron, X So equipment you fleets going new the equipment or into to next-generation on higher operating cost a that's That's lower that, digiFleets, fleets not XX new going

Operator

with comes from Cowen. question Bianchi TD Marc next Our

Marc Bianchi

on outlook of did clarify I flat. billion a of would that expectation XXXX. Is be EBITDA could 'XX comment? billion that So EBITDA the enough flat in to down taking the qualify sort literal message the to that and or wanted be as it's statement? it it's year still for $X.X to Should for first to XX%, in that is we be close X% you $X.X being it

Michael Stock

very specific flattish. been Marc, We've flattish,

so yes, So yes.

[ a discussed. ] not going billion. so ], [ is $X.X flattish no, it's little be So within $X.X area you to the billion that saying No, it's flat rounding of to it kind

Marc Bianchi

Got it. Got it.

then would back Okay. or and little digiFleet some with saying, of sounds in customer-specific things it not from about what oil And bit talked like maybe that some from the you're a the bit the what just improvement we helping And maybe that's helping deployments half. of a activity sort still higher help there's imply of case.

results. back clarify is your you what the macro that's outlook If driving kind just could of half the in

Christopher Wright

Yes.

in that it today, typically, we in still our technology of because cost year, have stayed much not of is about expect that a what best. QX talked probably reason specifically crystal new ball. on year. We of to probably the for so activity the EBITDA go the can to year. face business flattish. see so in in probably efficiencies is and We be QX. a at is where any environment.And production will if of see we've but QX, But us, know QX. flat flattish guidance quarter I don't And we We best have internal still QX improvements different a this our grow somewhat deployment, why little historically don't versus know you we from and But QX. don't down roll that's don't activity today yeah, that sort this is

a months likely crystal perform, don't a last compared So I why flattish EBITDA from the up would year. we're oh, think Liberty activities be year. now, But would to that's and We just But change the to -- to of XX flattish. ball our bias activity down. of, it's there's how the or guide current be have more if in X in was annual existing marketplace, for end sort

Marc Bianchi

Yeah. quarter you Makes be then, talk Michael, perspective? like what you to from we of And on sense. Because the free for should a working just EBITDA the think you first in expect you the if convert helpful. cap conversion that pretty would headwind. And many big to of flat free be we about a it could looked more just year. of just I said talk EBITDA could how be cash of one cash year, had earlier kind the would in for call, last But into ultimately thinking dollars

Michael Stock

weeks of opposite the of But We you the the the first last a kind and spectrum. part don't is of in working quarter the give of details. get because around. always QX, Things lowest yes, build capital quarter X those move always

in with topline, to see slight of you're see sort in will usage We build in growth going a aside revenue, growth in QX. obviously, working capital

QX. kind of working see in a You're of release to a going capital

of But we year. capital free So up yeah, flow flat are the mean, cash sort of for with as will sort downs year, said bit course little they I of quarterly of and the the -- not driven. be numbers They of those some sort about have it. working over

Operator

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

Keith MacKey

hear lot activity certainly, that rigs rig a downtick I the in as slight didn't in overall that to consolidation of But count. Permian. subject wanted Just start Permian the there a are to is factor a out consolidation, have versus rig with that And we particularly outlook. is really the consolidation, associated noticed customer in with

no run not close, certainly, so if And independently before the deal. businesses have was necessarily way the they the would they there but to have deals

see you you customer any consolidation about upcoming could consolidation? So to your just negative can that potential talk the exposure or positive from impacts, and

Christopher Wright

Look, total liquids That's million a production X last where is today we pace some less your or comments, think the over million I consolidation continual incrementally a months, little does a last in There's production. correct. still that are barrels our flattish, X run It at lead day probably barrels why to probably or continues. year rate grew XX activity. a XX nearly bit been day

assets benefits probably the So now. a sold are privates the of be a activity.There'll that's of a it match that, be sophisticated existing gap, because of happening better that rest course, new customers, offset customers more not bigger, little noncore today on to and will than that right But of fill bigger bit for probably and balance, marketplace. for little lower most privates of Liberty, us an going off bit will or bigger get the

in those more cases, So deals. these the concentrated be likely in the much to more sellers than buyers with we're

So tailwind yeah, small it's been very for maybe the a a Liberty. small for industry and headwind

Keith MacKey

Okay.

little bit a maybe Australia. Just on

into to ready just about getting think of little where some transported. are talk about in Beetaloo get equipment that? was the you the the You a Basin. you entry maybe bit talked Can I

be be as there you would helpful. might do one-off or a an looking as there potential this really you are at update that international other well? So just see opportunity And opportunities

Christopher Wright

Look, pitched we've been opportunities long about been a we've almost as international as company.

prowess in has strong. having and the in equipment interest interest So Liberty's that, all that addition horsepower international been and the to in engineering market

and past Our in slowly. always we're super has move loyal, we view the been

gas. about sort other our sticky going That coming source slowly in doing more natural years, XX have gas as yet, by We boxes. or decades stick those of enormous. like two things. last well. gas and a the customers we're the this is over when checks have [indiscernible] you the more tremendous there.So customers. gradual -- is with pulled Lives, as basins should basin. that We've it in build been the planet on any that basin One to moved hasn't but existing gas partners very So the to we to produced in It's continues could in capacity and in and we've we place likely far, basin Bettering the about tend we're talk can Human read But fastest-growing us in is energy

a there -- things huge struggles supply projections resource and itself show getting Australia is prices is the gas having base domestic and Beetaloo gas tighter. So with

So fleets, there rollout the a right -- in we're Australia, a it's for and there's new it.So you're digiTechnologies, of don't and And for with we've that in Southeast markets gas Asia upside. capacity. South we new need big bringing Asian near the need now

partners of we're out new So we that's for it could fleet to a or meaningful, a send other levered got small. can But case going. the it's I the become that that going going But thing on for we I to retire think And Australia. good update upside and could. think a to I'll That's pretty but we've where it's it us. there, meaningful? we've let what's Ron got an side Beetaloo you think more multiyear in how we exciting like could fleets nicely timing-wise that in and little become about bit opportunity basin.

Ron Gusek

a just quick Yeah, Keith. update there,

that, equipment, we're that remote the done over ready to identified us. to gone to facility in sure environment. a assets their of operate making fleet for is going a relatively They They've central refurbishment basically in a head there. that point are isolated at program we So fleet this time,

And that the to Gulf the our ready ground work, up, So latter to we in there customs as where move QX, have but to ultimately have that's Australia before -- fleet that of boat and way mid-QX. it find we maybe on will part to stand whatnot Coast, and work early and way its we through down we'll arrive sometime today. on have the wrap that middle we'll should in loaded that will a then here to and there

Operator

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

Waqar Syed

of Did was Commission. from North changing Dakota in work XX%. the QX. quarter-over-quarter activity also Bakken in North those in areas? area, and that declines about saw kind data forward? QX it do completion Wyoming, how EIA about in see we you Colorado Oil that And shows in down down and And So also experience in you XX% Dakota and Gas It was going

Christopher Wright

absolutely very historically Bakken Yeah, year meaningful pointed downturn in out data. as as The a you and just case. well, winter absolutely did this has the that

in QX So and in some also the and absolutely, Bakken activity Colorado. activity in reduced Wyoming the reduced

So yeah, data that is true.

the I think rebound will the see rest bit activity of that and yeah -- a for year. little for we'll quarters the

Waqar Syed

No.

margins that's behave big a in So pretty would pretty How activity. change Wouldn't strong QX? a as the be result? that incremental incrementals tailwind to happened a as that in

Christopher Wright

Well, the is assets all thing are wheels. on other of our

less in we declines fleets activity working, just there's Bakken drive fleets when So those elsewhere.

Operator

Our with next Pant Saurabh question BoA. comes from

Saurabh Pant

the the operators of design from and come much up do just pumping to Maybe the supply like obvious And noted in logistics think how is that, and we much room really side have right? the or talk that jobs want I do Good Chris, Mike. the things. a Ron months, morning of how follow-through the that release, maybe to think If they you a Like your how have, chain? hands start strong, efficiencies you the Hi. much is of bit. And way in do of can little E&Ps, yourself? on you on line efficiencies of XX incremental running the in your terms But efficiency been right? as past the over question press you the in companies comments just

Christopher Wright

Yeah. It both very requires sides. much

and has between logistics chain customer had. dance It's You're It's supply on would I and frac advantages one operations. and wireline of location. say Liberty your the also and and a

get with the you can best the you work you If best -- customers. quality, deliver

absolutely is progress. opportunities certainly innovation, a And those. turn of about the So the it coordination this engineering, find I'll move all way been leader and of Ron, in over it the to who's a think to to to

Ron Gusek

Obviously, Yeah. on we continue work that. to

one other. progress You after made quarter, we incremental saw the progress each -- every and

about help that's and react could they to that team there. out And We're that's find understand equipment to technical team -- operations and with team proactive around ways be us to development is to opportunity to operations our continue a downtime. before to things them more put us those more how credit our so we the deal identify as There's finding could operating credit so the a move to still could happen.And there. some needle ways to the whole

move that. a to continue time about on needle technology, find the the gone on has to These ago. it you the fruit take to think diesel modest incremental long be level, overhauls as next-generation But to meaningfully low-hanging are digi, engine. We different next gas time equipment we ways improvements continue to a engines these as than the look on does going between even our

a that we for for out and and there the hot pumps, wellhead, of into to integrated continue anybody increased possible side sorts of table.And worked more on operation to pumping to speaks on out swap other work pump highest around ensure in with zero vertical platform, the on work gas, around we course, the supportive but from also zone As are that to for bit ensure reliance an and Chris required on can integration technology, third-party we time in location, like place closely a things we'll technology the then we things, efficiencies the over less get [indiscernible] the as providers those red continue automate the little to to to time step between strong of without logistics wireline removing ability us, that from E&P maintenance also our we the help all a ways LPI to introduction of offering bringing partners have longevity natural improving components there things of having to there.So of service with quarter-after-quarter. moving partnerships on us as of services try as find mentioned out the of

Saurabh Pant

Right. think year. correctly, thinking short-term, by as talked of being then end one. I'm Right. remember one the not just gas-fired very I about just but about just of Chris, unrelated I helpful. your XX% you No, And that's very medium-term, the the fleet Ron, the

from the fleet should being not a we about think exactly have your if some a competitors of this of point? And are not majority years working that talked How diesel but like couple large out fleet of at we do about numbers, fleet the we gas-on-gas least XX%, think gas-fired. a right, now lot of point and gas-fired? at what total displacing At we think is just versus inventory, working maybe more about the but the similar competition

Christopher Wright

one talk industry. factor. Absolutely. fleet that The bad determinative. takes. running a for That's far that. good humans away a is people. the quality But it's the where of A just in -- it talk It gas just had by what we've cost displacing biggest is That's mostly a don't fleet a operations, on multiple of single lot. certainly fleet. positive and about diesel factor. this, is lowers all and quality. about factor and just Liberty just a it's We It's for service we the quality development not chain. fleet, fleet much it And of operations [ one burns, But too the that's that fleet fuel examples it's about supply or just a and but technology ] fleet based XXX% Customers the quality not humans burning

a spec And so yeah, spec. not the but that is

Ron Gusek

opportunities also between a maybe significant all fleets important say are to out created gas. would step go equally. There that And the than further consume I there and are that to differences not technology gas remember it's

highest location. we digiFrac fuel as burning not for been is technology we in lowest the in specific have ensuring the in deliver chosen about result, technologies. in to footprint field, both a lowest that gas true the very, all and and the burning have very and We technologies around deploy digiPrime invest on That's gas emissions efficiency, the field consumption

Saurabh Pant

hero. sense. you that it unsung think the so be as Ron, about I makes Execution well, to then, sense. think the side I And LAET often talked No, tends on makes that right,

Operator

John from comes with question Daniels Daniel Partners. next Energy Our

John Daniel

the content Chris, over how out having guys LPI? given on to orders power far demands your place and the Just, for for basically next equipment are decade, for you

Christopher Wright

John, chains I tricky. issue. lot comment -- going dialogue do a on any a -- Supply tricky. you there on of won't are real is It's probably I that. of there, about identify Supply surplus There's not specifics chains are equipment. such a but

John Daniel

product allocate this, directly you the it -- oil to if don't I'll centers Is but of any risk data the know and Okay. major detriment there Do to that answer more you OEMs and gas? and can ask anyway. I pivot

Christopher Wright

today. happening That's was It reasons, one the today. happening That's of John.

what's As this held the on electricity you belief know, years. for of with we've going market

those we count an drive things do can So that's no that, take. didn't into the all our just was on party it we're a to gas if to thing third to risk oil switches over a but decided and is going necessarily if when -- or market And not manufacturing the for got a we digiFleets, was company, we third we at they and building -- that's of centers business that not mercy ours. want party data a

Operator

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

Christopher Wright

and evenings covers proud Thanks, drive as in now.Despite town words Sub-Saharan the Lives It many Human search countries are standing in window all Director Foundation. it of from letter of in are in and heavy open most of whether harmful and groups Africa, water fires everyone. the differences Bettering Human BHL what from the comprehensive our the or amidst into Bettering was and or of read scenes cow pass text not Foundation cooking the and was cow see letter the prosperity. will lines Hyre, is and written firewood filled Kenya, remarkably report in to among of world's solvable similar pumps, problems carrying loads this changing and a I fueled passion Burkina I that released Malawi, role women But wood climate and in at writing The change, firewood Lives in and significant Anne's February, and dung the Ethiopia I of dung. girls the energy, Anne In walking town meaningful to the our spent women best, poverty from our formed by Faso, that clusters smoke lives weekends early water me. we XXXX Executive play geographical millions. cultural says include I full outside report. of and buckets, biggest by our I'm studies culmination newly homes

am task is cleaning, with feel postpartum improve spent daily laundry and quality the midwife physically childbirth tedious women the in that nurse acceptable? and for the cooking, and so girls of lives and be continue often filled for year working are We of a heating collecting and lower-income water XX this demanding to and homes. health period. during I I've dangerous fuel years XXXX.How pregnancy, in countries disheartened I services to women many

mobilize in newborn I social in sector, can how and Africa demand quality possibly collecting when over better and For maternal far Sub-Saharan spends over activities education improving targets missing and years, them have and is cooking health gas, great health LPG life have are Governments time make and more pregnancy, those ability There fuel affording ask Lives or actions take can out encountered women global perpetually and will families. life.Through access development different made and for their to school Asia, health. fundamental a a Africa, and very from improve and X clean revenue-generating financial Sub-Saharan to for Africa other in Human remain woman health, million in a myself, income-generating any Bettering them goal health far including and continually in the in drudgery households. of clean and family's powered huge her from that liberates ultimately decisions shifted enjoy sufficient. get cookstove time their cookstove reaching that with life.For constrain well-being.Better countries liquefied and and but has services a reality. problems stoves tackle Southeast investments her to stove A mind, women propane into smoke-filled need immediately Asia I health into cook to and five healthy petroleum families, to Liberty services and and innovators particularly by entrepreneurs quality yet for energy polluting on in foundation, of burning a resources changer human collecting visible as donors be cooking one It the decades, and she firewood, support improves in most services safety and XX translate her girls. to of progress such a past I to my where from spaces, economic contributed primarily growth It work access quality or worked LPG the activities. in essential, years,

We'll get I see newborns I my Bettering inside on homes. mother and a impactful smoke-filled Bettering Lives. everyone, path a supporting our a As today towards Lives to and midwife Thank to breaks us mother, eager the and quarter. am hope to talk we heart you'll her your next join for all dark efforts the Foundation. more Human you when in postpartum for Human call, you, time

Operator

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

You disconnect. may now

Liberty Energy (LBRT) 18 Apr 242024 Q1 Earnings call transcript