LBRT - Earnings call transcript Q4 2024

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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

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

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

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

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

over Ron. I will now turn to the call

Ron Gusek

results. executional XXXX. strong in morning, discuss and fourth us XXXX our delivered to and full leadership for financial and you and quarter excellence joining innovation Good year operational technological in everyone, thank Liberty

through $XXX We of industry executed We records exceeded of even and as nat of to initiatives, return transition our the on the of adjusted AI-enhanced cash with income of cost average. $X.X gas XX-year billion, on our capital and using were several year Full capital million expansion employed optimization capacity operational million. the year activity XXXX Solid and of S&P our financial and revenue and invested efforts fleet year. fueling EBITDA $XXX return XX% performance XX% net systems digital scale. optimal concluded achieved delivery softened was

value return We capital focused to compelling quarterly growth we opportunities to long-term the XXXX, are creation, retirement distributed and Since of July shares on of balancing $XXX relentlessly of XX% shareholders with cash shareholders. have through outstanding dividends. million

We undeniable Today, the experience America. the generation have battery, built in in to opportunity in a an power, rise in energy and strong geothermal, energy power leverage demand we across technologies have our to assets. meet North systems investments Basin Beetaloo partnerships nuclear, expertise knowledge, and corridor, Australian and

company, the we sector. the a of to broader heartfelt of congratulations the path energy our significant on and to his Secretary an my founder, a leadership Chris As I'd extraordinary to U.S. embark our charting as similarly Liberty friend family, XX for Liberty contribution new years visionary for of is and over behalf On Energy. like Wright, chapter dear extend

innovation and technology in power significant business. of burgeoning have Entering expansion leadership our continued XXXX, services services key X we completion priorities: strategic and generation

and As design and margin capital the equipment long-term in enhancement, the completion driving looking improvement [ cycle preeminent provider, innovation is software, ] in emissions. service lower

Our technologies engine design technology completion the in for team has latest led of development and advances applications. services

precision in already fleet This enhances firm. industry's speed, development to a since rival the rate unrivaled transient engine partner high gas of manage offering for first iteration with large by ability -- our our -- industry. founding industry-leading digiPrime efficiency with of latest and fuel the combined digi the announced load control, the of the natural engine tons, with displacement our platform ours we Yesterday,

returns, software management This of customers. systems. for reduces all site control our together brings of We management software delivery, advanced systems, cloud-based improving cost total cost generation, for of and the logistics ecosystem ecosystem to power our the and the technologies integrated our oil platform have bring lowering seamlessly pump our to that software an surface with built fuel demand a Digi barrel

also of on excited Liberty averaging XXX of We set This of pumped equates a to XX% incredible operational available fleet crew are single by a approximately utilization. celebrate In fleets. achieved X,XXX normal XXXX, hours month. to dedicated feat per hours the in digiPrime nearly year our of record hours this one fleet year, company

look an meet growing opportunity historic deliver to services solutions ahead, has we Liberty As and demand. energy to differentiated power

supportive into put provides motion infrastructure that transmission. and the high in business decades quickly we underinvestment generation manufacturing onboarding policy, of have increased grid of -- -- to alternative expansion XXXX, to of fragility oil demand field. energy distributed backdrop and compelling our respond hindered expand regulatory rising The and proliferation demand. ability centers to activity, from mining a business our electrons the the the outside a of During growing Harmful traditional for operations power generation and to barriers electrification data industrial the as in

positioned rapidly power to infrastructure low modular specific tailored uniquely distributed to scalable meet are deploy project demands. emission, We with power solutions

Liberty build which strength power us business advantaged in maintains returns more XXXX, billion harsh have and a operates than $X environments Since remote X,XXX brings equipment in of to now deployed high together capital completion North position an distinct successful to rotating America. -- heavy business. that across grow almost pieces put in a we a

people foundational have deliver and great culture the of at whom attracts a We highest level. to retains strive that all

asset plant field, engine We all generation asset of thoughtful the technologies, timely power access innovation and is key in implement service applications. ensure oil other supply power over components. our critical relationships that assembly expertise selection to future cycle enhance rigors -- chain delivery and easing Our augmented ensuring engineering by the extensive history have the built and operation in in mobile

us we distributed power can have fabricate, deliver years. to ensure United enabled to across including durability the We and Together, our installation. a platform with each coming the capabilities and equipment and build Canada, operations longevity business over support these strengths States packaging

to We all generation are gas of variability, coordinated load offerings. reliability growing we in aspects other quality, considerations, support engineering infrastructure needs, provide range application, strong and expectations, power demand addresses ensure development can the emissions with technology a a of technology supply requirements of cooling amongst that our partnerships areas solution and critical paired a

EV will are fits term, provide and resource centers, We that delivery stations power, grids the for In charging data an getting extraction for electrons specific near infrastructure mechanism applications. the commercial we micro application. merchant

successfully deploy the deployed deployments XXX with already to XXX XXXX, of By we digi applications. of fleet power year. generation incremental initial have late end We this megawatts take expect probably megawatts, commencing the of and an for delivery

early early Frac working and at in fundaments inflection signs comprise of Oil maintain the frac end activity an anticipated are markets returning of the activity after are of XXXX, year-end to reached production completions simply in a encouraging. the have vast majority XXXX declines emerged activity activity to trough since from now Lowe's. industry quarterly XXXX natural are after Improving gas levels producers, which slowdown. progressive

full for necessitate notably E&P savings demand strong operational year, pressure investment and continue gains for demands pace is growing serve The complexities outlook to expected continued fundamental lateral this slowing companies. of in drive the operators reductions, the efficiency that partnerships advantages. emissions and positioned to efficiency technology and technologies fuel meet provide with The continued Liberty high-quality significant XXXX. well demand. to resulted in remain be impacting near-term flat XXXX higher-quality activity next-generation approximately And start with price to For is most of XXXX. fleets completed fleets. as in late conventional industry-wide The footage

dynamics. swath Fleet of piling, expand to attrition likely end balance horsepower and fleet dynamics in X is counts cannibalization in fracs. of tighter and supply X the of a And year demand Tier frac could reaches higher-intensity equipment next activity the imply meet horsepower fleet in life. inferred. frac than continue Concurrently, as aging equipment requirements the large better increased for support sizes through improvement accelerate These years X industry to pricing

a capacity markets multiyear consumption. in oil the plans economic plans. power Chinese change commodity supported a in uncertainties demand geopolitics, the gas American activity ongoing large projected export expansion yet by and domestic led to change and has in meaningful Global climate, increase reflect fluctuation political OPEC+ a E&P growth, price is LNG but not resulting North in Natural production

well scale power demand the to that that alongside can of customers. dynamic modular to with accelerate rising projected pace increases and the from the is of start as electrification centers accelerating Power infrastructure is manufacturing growing redundancy century mining, of positioned and of adapted the meet this demand Liberty data lines demand solution other since activity at deployment applications. time reshoring reliability, ability needs from offers solutions requires fastest commercial This pace converging is industrial requirements. to and individual the and load with the a and be growth

success Entering drive lead ahead. continued innovative XXXX, that durable technologies we are excited industry in the with the to will years and our

completions in shareholders. our to We are and build the business for to arena both our investing competitive and truly in new customers differential significant our value generate power advantages,

today We investments to strong lead years. expect in our returns coming the will

a and sequential revenue increase quarter, modest In first we EBITDA. in anticipate the adjusted

the Completion profitability. For we business, headwinds moderate expect full generation free flow cash impact Services pricing as expenditures the year, within as even solid capital

Liberty power As chapter advantage power of in next demand the investment generational also opportunity we to of growth. on grow infrastructure in story, our we a will take embark significantly

results discuss Stock, to that, over financial to like With Michael I'd and turn to call outlook. the our CFO, our

Michael Stock

Good everyone. morning,

with results returns and in us We cash shareholders healthy are capital to reinvesting achieve while pleased long-term financial which to free allowed strong a has of return initiatives. solid to flow, deliver our

accelerate strong in and while maintaining the shareholders returns the exciting in While advanced business. completions same. We're evolving, technology and we markets remains in our to are continuously power we our competitive journey, through balance returns business generating manage Liberty's a cash at as time an investment our delivering Growing innovation strong fortress advantage, the cycles. way growth sheet

required meet American to industry and completions reaching production maturation The activity North completions goals. is E&P

technology driving share Our now leveraging by defined market is organic systems integration. in enhancement gains vertical completions growth margin and digital leading-edge engineering and innovation opportunity

lead achievements are our the we We will in regards where the pushing prior are industry cycle. of continually beyond and

a In Power, here we to now opportunity have an build business. unprecedented differential

ago, completions we has over average a business years XX% an that history. as XX CROCI of its delivered Just

designed are strong the years returns culture of on technology power with equipment competitive the business investments by significant building cash a We to ahead. advantages people unique Liberty deliver driven and in organic and

us [ a installations, generation for execute will generation X and mining years, merchant industrial and on During mining centers see and variety ] next commercial including including data power of power the projects, energy you generation, good sectors. the distributed

opportunities We the strong will of years. next demand able more to X have pipeline significantly we that for be a Liberty Power that supply provide in

power have a and frac we which profile of business. diverse our with our designing array inherently believe cyclical lower business end less historic be markets, We're risk a will than

rate. We are targeting percentage in the long-term a CROCI teen high

the for business enduring an decades to building come. are We

together assets We are in that bringing sustainable the and be delivery the long-term provide of for power. advantages. advantaged investing and focused to on partners great of choice partner aim technology We

Full $X.X adjusted For in $X.XX. billion million million $XX larger-than-expected sequential income was the income of and $XXX year, unrealized of a by billion XXXX, was billion deployed. per million quarter representing $X.X a $X.XX absorption -- [ $XXX diluted impact was net compared of and fourth was totaled $XXX representing the revenue headwinds, share Net year market in compared investments. ] partial million diluted income the fuel driven full X% of to XX% In on $X.X was revenue excludes decline prior $XXX to and adjusted net adjusted Fully fleets tax-affected income was X gains quarter a EBITDA decline. million, year. and per share XXXX, net

mine $X.XX income prior net tax-affected prior quarter income diluted million quarter gain income and of administrative per Adjusted compensation EBIT income the $XX net quarter. compared [ million $XX to on share Fourth General $XX stock-based Fully in $X.XX compared in Fourth investments. the to $XX the million quarter $XXX the per net compared excludes net was in quarter adjusted in to $X.XX $XXX $XX to for quarter. prior quarter and totaled of million the expenses fourth included of noncash diluted of and large in was $XX prior million a and the million third quarter. share compared million to prior unrealized the million ]. in quarter, was $X.XX adjusted million, compared $X

to interest Other $XX tax investments, $X expense the for period that tax of prior and approximately pretax $X of million million items million of quarter be related inclusive of gains pretax rate. book taxes X% total $X.XX than of our expect a were cash $X income effective rate a million included of on quarter, million income $XX approximately X% while a to XX% tax the $X Cash unrealized of was we of a source taxes and Fourth in aforementioned higher million, XXXX result expense than tax expense in receivables. over be to the cash income as payment, collection to loss

other delivery the end year with of capital of -- dividends. year, increased debt for $XX and and the buybacks with including projects. the $XX and in availability the infrastructure, capitalized fourth Net which million used in technology, expenditures, the expenditures digi the flows million. was share at included ended XXXX, million fleet, quarter million a $XXX investments of maintenance and We balance $XXX capital Net were from facility and year, $XXX $XXX in the credit $XXX million compression prior year. million million. gas net In cash by of spending full debt in fund cash cash to million liquidity $XX Total were

to us and billion at ability $X.X return capital cash X.X Since while XXXX advantage. show deliver post shareholders high-return capital now ago, program we return share then, to competitive our distributed expand over Our in through years dividends. reinstated of investing buybacks a pandemic. a projects of robust have to By results a our program we

We quarter, by million million $X.XX have shares shareholder We X% the are a outstanding increased dividend returns on buyback share XX% ]. [ approximately authorization. fourth committed our to to repurchased our and in remaining of we now and or $XXX $XX

sequential adjusted first for Ron expect As uptick EBITDA. earlier, the shared a and we revenue in modest quarter

anticipate be in range, $XXX the will from late adjusted we million XXXX $XXX we offset and EBITDA impact optimization efforts. service the the head year, pricing to mix full million For fleet as favorable

materialize improvement activity the As improves the frac year price could for through progresses, we believe the opportunity as year.

the expenditures X including as completions expenditures replacement to $XXX approximately maintenance Our the to cycle capital legacy X remaining $XXX in digi million and related moderated XXXX in equipment. we million retire of capital completion fleets to

levels of investment the versus of moderates deployment early cycle. these in to next-generation pace part Our the the accelerated

of Within end delivery megawatts our Power the [ we to power take XXX expect and by megawatts generation XXX ] XXXX the of by of business, approximately XXXX. another of end

capital be capital are approximately be related total ancillary to XXXX million. generation and power million equipment will expected $XXX approximately expenditure, XXXX. expenditures in Our $XXX Together,

We adjusting capital have flexibility in incremental significant our spending meet to demand.

and for an years completions and are on lean the partners the long-term vesting in continued into for truly we focusing competitive We are advantages in a reinforcing differentiated growth of business. coming leadership excited expansion as the our

end Ron I will now have turn at it back to the operator for closing Q&A, after the will which, call. the of comments

Operator

And question [Operator come from Stephen Instructions]. first Stifel. our will Gengaro with

Stephen Gengaro

everybody. me. things Good Thanks. morning, for Two

gave terms the sort of months side, -- rough little on talk right XX kind maybe on a you pricing commentary 'XX about now pricing can about EBITDA you ago? seeing bit frac Can in expectations. First, Michael some where talk to frac you're relative when you of

Ron Gusek

Yes. as well. frac Certainly, the over little a has year Stephen. last softened Obviously, bit pricing

late from the in point peak RFP into a saw a felt that we had downwards market we XXXX. time. already, steady probably slow we've certainly and headed And the for that said season trend XXXX. we've And As in mid- to

off levels we're so vary depending the little. talking a on there technology Exactly about. you're And

the older resiliency the So seen into even head for by most XXXX. assets X impacted that. very we probably next-generation as Tier pricing good assets We've in

standpoint. up a So very, from the well margin holding platform very digi

Michael Stock

color trough very mean to QX. a coming little a this add just soft I'll was feels very like much the Yes, that. it I in,

of year. sort sort into environment corner So more positive little the turned it of beginning as sort of feeling already therefore, bit a soft the a was of we've of a repricing sort the

mean, feels of the of history trough it prove. but will cycle, I at the we're kind like So

the just One average the to of a kind sort trough that to Steve, last looks by of that of I the thing point bit fleet moment want looks higher of out midpoint it, or midpoint the one, the cycle. than of the the be little about profitability cycle about at this

completions getting the of [ movements cycle sort less there There's providers, less is we've as excess the So about business before, ]. talked violent equipment, in the better. is is

it's very very, positive. proving So -- to be very it's think we very,

Stephen Gengaro

then needs using lower? where about you and when the my gen oil Great. how ask the the power where we of people patch E&P us. about price sort sensitive But power of think balance to the sure the or the about frac, how for power you pricing have business less versus that question, And think other you arbitrage Or either maybe do which does power to we fleets, exactly think outside be are do might to between fracs, the price ARP. new how run

Ron Gusek

for we specific Interesting question, into got But course, generation of Stephen. very reason. power the a

chain, assets for supply business And at deliver deployment. was we to levels much expect can. play for key manufacturing variables components a digi that was frac because able frac from we always That of reasons. As including a of that. of customers control and by control the frac, as We in for of Number vertical the operations to our into couple to about were want supply to includes we business the and holding power those that intentional virtue get the over aspects come over our key into our efficiency that success to as deploy all into frac We have operations. while. be of want we Liberty. support know for happens that decision very having were And integration the one, to have of the up and fuel the wellhead business, supply

with It's of piece and Permian CNG in themselves. LPI an Digi some ensuring to for the priority service attached there. of have remains power expect goal we long and is Basin levels we're And from Liberty that. important and great and hard for partners from molecule that in of today. our digi the to to delivery the the going the term, they've come the our generation power puzzle so that waver key assets working not generation of So out a over us

Michael Stock

Yes.

you, view into natural have are how I unit fleets, of have we I'd -- into gas we on prime also, also We assets generation where have sort can which are two-pronged more remind then a direct for just digi electric, our frac we right? the electric we a PDU So -- be of a frac, gas a a drive, mean, a have pure slightly do per natural efficient Energy and average units, more right? integrated a that that of grid. we the fuel usage lower balance which have capital the And cost So there. is have

that, have that They And have sort sort for a frac, our our arrives a on to very, of when data need also that be mobile when Cummins a power and then purely for of center so -- flexibility that's focus therefore, industry of that it mobile sort the next-generation commissioning example by of free. generation when of for that, for units it new having easily look good we grid for allows customers technologies, and may sort those some announcement, at we data rolled us the that. of project be for is very driving frac into and use power

in products sort that are and modular of a and to So be areas, again, very, very we sort multiple build. of of is products electrons flexible like able this used

Operator

from Jayaram Arun will question JPMorgan. come next with Our

Arun Jayaram

us about relative frac how of about and paybacks the capacity opportunities generation investments and and frame think But Ron that of the industry. from Gentlemen, business? outside think morning, mobile could we you're deploying you gas and the or power in process I was your returns oil deploying if returns should to Good help of understanding more Michael. still wondering

Ron Gusek

Arun. question, Good Yes.

generation kind of to we power We've multipronged oil number as we of can outside we've deliver that in. a have deploying So approach and we gas. areas think service a differentiated identified outlined, our of

extraction our so grid remote and power some course, will, we commercial a of and around oil digi charging. work some of centers EV That opportunity. resource of with of puzzle Data merchant partnership other inside and And gas those then, a and mining include announced industrial includes, applications. well. a course, part along as be with

those that returns of has would let's and contract outlook of have term each the of we'll say, bit Now the with a those a profile for different we think on about different that. And in little duration, each with a them. accordance bit

a PPA a might at profile accept we are for if provide example, for power with that a be contract to XX-year that, center, would years than or in So bridge where we X and we could shorter-term environment to have environment going we power firm long-term so. returns we data in maybe go a looking or along different a

in said a the we is be X return conversations accordingly. the the some high so to each in prepared And going have that's of mid- Michael business these as XX that for to that the that going be to entire that to We're some pipeline, as going that X, across that's XX-plus to year profile opportunities in really profiles range, and to we're teens to But those We're of targeting progress the range. year have in portfolio. we going somewhere -- X, across we'll X have average each has stuff remarks, the consideration. that's return in of maybe balance stuff his

Michael Stock

that the counter less to exceed completion on said, last we balancing average yes, which return Arun, significantly the different is those business, by still of of has and than Ron cyclical to course, I primes, years. the the is, think S&P XXX, a one, been as plan over lot XX -- with

Arun Jayaram

get IP to thoughts Understood. the of in deploy capacity I on any financial just Cummins engine. what Liberty. on as there is your Liberty this? has up to natural Ron, part benefits new some wanted with are gas-powered you speed And to of XXXX, release this variable that as follow also the wanted the

like you about fleets it customer. that your mentioned have a -- the this the will relative that there? the digi anything do lower terms OpEx maintenance CapEx? obviously, of we costs, from think out that is accrue in or impact current to to You fuel But lower How from

Ron Gusek

specific some on So standpoint, we this around IP important In would have the do Cummins an piece an digi puzzle. platform that is engine our IP. IP be the from the of IP case,

we has so the partner deployment the as us an the launch arrangement this them. we in an that to of years. that But of advantaged over coming And for engine leave have with do them that position

As far the what engine, that to the thing as of in a positives it. means out great gas there around while natural a field, number are moving about

of that running the meaningfully return earn their running on change changing price a that that to invested a gas path that -- Of course, the assets fuel and mentioned is portion completions. customer you a doesn't for all us opportunity fleet all, on fleet that with some to mechanism doesn't the our meaningful to savings. to of accrue -- the these fuel, to recouping around customer first conversation investment the the customer. a in from of additional diesel Part capital allows those keep natural on the for The capital is around

to And then time accrue between us of brings a longer about if diesel natural engines could a engine. have operating gas as the that think in cost overhaul you that significantly that, advantages also the to compared of terms

So it's on a to XX,XXX diesel maybe the we overhaul hours time, Liberty world, see engine. in XX,XXX

to a potentially expect our got but a today, XX,XXX haven't approaching on fleet of engine and number XX,XXX that We hours gas hours. overhaul north to we major yet be in

about costs engine. month-over-month they on engines. than the those costs maintenance overhauls those So Even X to are lower talk between maintenance, for time we basic are it's going a Xx fundamental be diesel major when to

so piece advantages And see well as of and a this will those larger as our we larger becomes fleet.

constant we fleet variable deploy digi providing as speed originally X talked finish, given a the baseload [ the it Tier ] the compared ability We from to those digiPrime We capacity either engine digiPrime the have that frac, to a out speed can now B put in allows us The baseload on about offering. a means and fine-tuning location. transients digiPrime ultimately, digiPrime rate as engine complete fleet field. with horsepower that both we field. to manage the start with to digi the or need plus electric

Operator

question our come Modak next Sachs. with And from Ati will Goldman

Ati Modak

how between year? just we markets a you like to target year-end early that year, there have And wondering identified think the deployments end the for about market contract and I should you later by is this was duration? mix for that next noted you'd the

Ron Gusek

starting targeting a, as spread we've year, identified. work So through we're amongst that relatively for I'll a now, even the we deployment say, this later areas

commercial So stool, important for and be ] but that's [ business not XX on in about going forward, X center as XX And merchant power, think the and industrial merchant may balanced we us data us area. of us to have applications contract earliest exactly ensures that applications. the It portfolio. multiple side of legs on charging for a EV power the a for things. business with good come The cross-section and probably the roughly

assets then Michael, do the longer deployed a data bit be add will to that place first met in have you have little you there? we'll and for that think the centers. I want

Michael Stock

probably But again, earlier sort merchant. walk of our of and third third the sort X/X of the through part larger X/X. think will -- And data banner terms, kind -- of you're center get side, applications. sort Yes. a move microgrids X/X, if a -- I the of or of to you the be 'XX the long-term extraction when the and Ron's I Correct. for big And right. thinking about breach larger mean numbers, and will towards large ultimately, deployments some obviously, some also the some resource think, of the of of but of and your I through early the

of contract risk there, long-term profiles you've and terms, the balance flows. cash balance balance So the of to got balance of

Ati Modak

you then helpful. business. our mentioned Got That's the And needs it. CapEx for

debt the any that if would return this capital CapEx of impacts the expectations So add growth? it sense to this fund make talk to need and for to you sheet year? And balance about can around

Michael Stock

Yes.

support initial sort So also when of you fast-changing on -- fund sort of this of -- very buybacks initial is growth. sort our can we at you our into when course, of we this business and -- this back dividend, an or can CapEx market. right, fund The an this look of but the a We amount organic set the of organically. numbers,

always We of opportunity sort opportunities. and investing these pipeline. cycle have we sort great sheet for a the that making of we're with in sure a early And significant fortress continue balance

market, we come So a announce on. it fast-changing things they and will as is

Operator

Citigroup. question will come Scott next from Gruber with The

Scott Gruber

kind for, space. Thanks what seen how of space. you're opportunity. as more you have the enter you of in competitive, load guys Obviously, you you enhancing on about on frac different? the some a we competing have service But Is several frac, the obviously, exciting around is thinking think provide the about in we kind about Can offering others the guys which an color is others built your the analytics, outcompeting have power cetera. to and do be really Or providing it equipment et power How going built side? on any equipment side. but outcompeting think

Ron Gusek

by executed a years Liberty, ultimately truth. nothing People I Yes. just a think get by the organization. done by together you're underpinned been business. buying a you what -- frac a from you service given by told frac make our team frac chain rate business. point world-class by you not be for industry-leading location. if in has buy out unrivaled by you a commodity could us Scott, get that But a turnover in cycles, team you're frac a engineering into a further Yes, course, the on technology you from a industry-leading And the of Like frac. probably get we've good looking strong all at getting supply

provider things together, in frac that And so the you ranked bring to year-over-year us led surveys. being all Kimberlite and #X ultimately those has of

the put And a out technology asset field, a data don't business the to or chain ensures that an supply we team power put strong of asset, business. in a when in generation builds folks the choose that delivery any to going you sell differently there possible yes, longevity durability underpinned by than best a that is or by view offering leading to strengthen to we're E&P asset the to to the so grid electrons an But that. I power going center that to service be by customer.

You of field very is have playing any It a not thoughtful things. about these in to imagination. be level the stretch very,

the merchant for deployment time, think the for you right amount the factor terms spark the price and between to maximizing about that electron. natural example, playing bringing there is the the in capacity critical of an of in If asset spread, ultimately space, price table of power gas in

very proven the in at be generation space, that and think a when deliver I in areas to different will all in else it thoughtful comes level our exceeds power the frac of ourselves no space. to ability anybody we've it these

are anybody about base I We today. platform certainly table, is else unrivaled to the bringing a is that who or think, the entering the by space entering has talked

results play you'll coming think see so our that in out I And over years. the

Michael Stock

Yes.

blocks XX-megawatt the and the XX- mounted a execute We the able I a a think skid-mounted controls about to right? sort to engineering have design to modular these solution, for blocks, breakers. talk last we'll right? modular solution come -- transformation, skid building We in within that year, with of be it have

So together, unit. you the very, site, in Those trenching, the XX to put power assemble that can and put those of and a grounding factory, it be them these move a XXX-megawatt, in blocks XXX-megawatt to plant quickly. a into then put basically very allows read

thermal also our got certainly thermally efficient X-megawatt significantly engines. cycle blocks again, as baseline, these XX-megawatt than We engines X.X -- as the more larger to from you've is, which turbines. were using efficiency ] ticker recent combined efficient have built XXXX plants are remember, to reciprocating the The before [ same

to The the applications for resource areas where extraction. footprint be specific in needs other small the part that packaged will be power to turbines in we using do, we're or going

field oil gas we're If quality gas where using some area, some and we have that the gas, of best and necessarily engines. for you not reciprocating think is the

that we is of building thing, going sort to allows blocks costs. that going fact a right? significant, quickly, And is the the key trade at electrification come modular, reduce So market there effect. very the very, standard people EPC have everything significant of So an to the country, of moment across to us the lack be the

amount electron. to power way the the it cost-effective delivered So together you people final plants for of on amount in of you reduces put need site the a that electricians need, these that

Scott Gruber

power opportunity. all that, I merchant dig appreciate I want do the into Michael. to

equipment Or is power longer-term merchant opportunity? you elevated while where think where during basis? situation go-forward a for in dedicated a that would that the spread is summer, Just trying to curious, to kind the like equipment opportunity and Just Texas some of the dedicate it. you're how gets an spark on to about that a to capture maybe understand opportunity try waiting guys

Michael Stock

a long and give probably call areas we've for more next the out helping in serious and that. the a coming be some detail in conference in for opportunity. But need got that of time it So about areas, we'll issues modeling is be talking there great in transmission certain numbers term areas low their where around area power. you -- great you've significant that they of where amount growth, right? got Yes, whether where

when data grid to going have the going grid onto You up already that the power things, profile you're is and yes, So a for really It's group be used for move to the right? bridge But to assets power right? it year to can our or different but you've for the need provide got going power, impact wheeling gets over is the could it to diesel When we -- as also integrate that's bridge return be XX-year profile we going returns, ability So can where a it's to -- to excess the XX-odd have there, like. center. think the and life improve about interconnection. life. backup -- back

different terms So lot parts exciting your the spread times business. very sort of interesting. That's and profile, advantage going take different very power improve there's contracting the return right? of for of to at could of very, be very, to a You different spark

Ron Gusek

Scott, I a takes address But getting is only meaningful today. that amount that this would that worse in something know just to add ability grid of that course, is from to how We that, fix the standpoint, country. challenge instability congestion a grid problem standpoint, of time.

First change constructed. policy, actually is to in infrastructure component of a to all, But time it's that, going get even to ability that. there some significant beyond the take

as opportunity as durability to see out probably And so far we view growing I an think real today. in a And some as we opportunity it's got can fact, it. that's that

Operator

TD Cowen. will question next Our from come Bianchi Marc with

Marc Bianchi

I Ron. some of how that point was kind customer? under megawatts, is the of much curious binding Congratulations, XXX at on this commitment the with

Michael Stock

binding Yes. the sort in last chain, for those XXXX XXX X/X megawatts supply consider part the midpoint negotiation in that I order what of is at of pipeline. that's of still The all commitments the moment of in what are it. is and the

Marc Bianchi

entirety expectations kind should a when Would about over of the about And be that. would the that Okay. next to months hear we sort some people. of Or more time hear few the XXX? line it of set you anticipate for we

Michael Stock

invested investing be more the of of building as ] you in focused discuss color on XX-year every have right? a right? Marc, equipment a time over on We that we'll To business, give and are honest, comes we quarter. in [ cash period a But XX% something cash very delivering $X track record, time. We million the worth customers freight detailed, our don't along business, return

amounts. detail is building X, if in deliver the business, going the properly. them, to right? accommodate And wish have a I here. with you sort make not will our to we're customer relationships. don't But be But those X power We generational a to don't size business that. strong -- dedicated We large happy honest, customers building be for we we business are we so returns have it E&P We by managing that of in our operators, us tenancy are talk in about we of fleets see right? announcing announce providing significant where are -- would business to long-term, to say, are

will to we'll guidance, you you we give We profiles. will contracts and you returns give give --

Marc Bianchi

for the flow Okay. other know that's Great. the overall the you total the how you company free cash free -- context, EBITDA ballpark if cash year, right maybe that breakeven. in -- I on I heard and the of would that should read on outlook we... don't but -- appear CapEx, that. if completions, of One But with it solid for flows in sort for

Michael Stock

positive It's breakeven. --

Marc Bianchi

It's positive.

Okay.

in that have. about be repurchase? excess you kind goes we share repurchase more So free looking cash thinking the context the if thinking be bit to a repurchase? of little borrow do we to how would you be should Should towards some Or about

Michael Stock

if that's going we we are as opportunistic depending at where over on our investing We long cash business. it free in power and a right? to share are you we sort share we look top think to have to because Generally, some cash flowing. the growth. be bring we the the the that. our our strong cash buyback. money, year the we ship not we're to and large share right? borrowing providing not business, business but of on ever our were it, XXX is, sector at fund strongly change share megawatts at in of borrowing to term money, had items would That's fund If that a the We're look our We repurchases price is the generating cash point, are in borrowed of share -- free free look And think opportunistic right? about price actually is prices. undervalued opportunities that When in we financing do for, power repurchase, at fund will way flow really course borrowing share that fund we flow we drive business, If money the we we

way we that's business. So running think the the about

Operator

next The with will come from Pant Bank question America. Saurabh of

Saurabh Pant

for because the I want to morning, building up I want follow know on contracts, you're maybe question and Good Marc's Mike, again, X And on Ron don't little to right? term. power stop the at long business bit I years a

sign can you customers to some customers what kind have with of discussions color How long give our power duration you up when helpful. the be on contract you would Mike, that, So willing if at? need, looking are on, that for

Ron Gusek

scenario around, think agreement the conversation said, in XX-year then becomes is that At But might a the on talking back time, what of a for purchase to that vary do then sign do assets At power for year end X as end point backup X in might possible. where center, mean opportunity with about our you're power are depending the like or standpoint be things, a going end, long center, then gets to that which so. application. provider commensurate we those I deal use selling remain power there utilization Yes. the grid. before be is to we there very absolutely of about there we to the a about a application, things. bridge that be a profile, as a the be a asset. there years generating grid data from an entirely providing example. looks the out the short to And to there on short That firm think and returns a If agreement XX-plus data of power and is willingness the end we'll for And the term there.

Saurabh Pant

Maybe actually the past, XXX-megawatt. ordering No, the all revisit but Fantastic. know applications. I one. nat helpful. been Okay. that that's Ron, this now these And one resets discussed in or especially you then, topic quick are let's gas maybe equipment turbines, has of

the one that the merits about versus demerits of your how think in would you offerings? EV charging, Can and merchant power, you data portfolio relative about of talking centers. And power You're other? about talk

Ron Gusek

fuel. adapt the are to is we're for I our think about to into make Yes, it comes of use depending recip energy to it far assets changing in the this recip us efficient think to that engine, And to the incredibly of like to sure we I'm gas number electricity. at. for nerd chose the each asked of glad useful recip engineer, out without on But stuff like unit question, a into deploying gas of efficient gas being point Natural an engines as you key piece very we as of puzzle, natural weeds, capitally in power available if a into too case, generation XX% very, on a the opportunity situation engines able I'm like we're looking profiles important work, Modularity reasons. to this. load one turns allows be we the you Saurabh. natural when a That's about and fuel an getting that well

turns it the X/X turbine same of application, roughly say a the put a available work. gas varies If and fuel going the the little but in turbine, it energy -- I'm size into on of bit unit you it useful to take a of in

business competitive, cost center so you electricity electrons the grid, building whether the it's your that to that to when onto about the between in the a comparison, longevity and And able you're to of sell like data durability, thinking providing we're to a compared maximizing about the to this, or is reason. that in same into it And -- maximizing think power for spread a fuel less going supplying that be being critical X/X efficiency, to that competitive means accomplish if fuel you're to ensuring outcome turbine. burn if your gas ability

gas spark recip sense. make us, ignition, why so that's And engines the for most

offers Now in Michael alluded there to already his of a couple And consideration. are those things compelling where comments. turbine a

of they a flexibility to little the bit fuel when it have input First all, source. comes more

system. fuel very likes on if No natural So a engine recip that's problem gas a gas methane. consistent you're primarily a distributed source

out and gas by have field that be supply, in is be to going to a you you're tolerated If the rich turbine. going a better

shine. that a probably And turbine where so be would a would place

a place that other there really The is difference power is density.

than you're and a footprint hundreds a very a about hundreds hundreds with gas large able accomplish be talking turbine and to recip that could you're If going you in with megawatts, very, application to engines. smaller of

towards would stable truly competitiveness we So leaned in gas shines the why we've space, the where you a looking if X probably and -- power good density, towards a considerations looking supply fuel towards you're at you that's gas you're if really turbine. But have and think recip lean longevity, durability, that flexibility, that.

Saurabh Pant

turn color But fantastic on. this back. and We that's on Perfect. No, discussion. going stop let me keep there it can

Operator

The with Dan will Morgan Stanley. next come Kutz from question

Daniel Kutz

I useful costs wondering housekeeping it's well if and power the of cycle you new useful the kind share was or the and if know congrats, wondering morning roles. and business. could Ron, kind associated life for of questions on I you congrats, I units. couple the... maintenance of Chris Power of Good viewer as just expectation the a on a but the guess on kind stages have maintenance the life also early gen of

Ron Gusek

Rolls engines, that we I the between the major think Caterpillar, as whether be talking So said, we blocker, get these [ overhaul overhaul. you're ] manufacturing yet. But even yen our to a if you got time partners have one about side, on Cummins, haven't MTU or major on Royce, from about to gas based guidance

my out at of hours. long So carry down head. and change X I'm it's math approaching major a that's to it when That's and But of in rebuild operation, in right actually XXX and if probably we years long, engine it, the for maybe XX overhaul. bones that the write a just doing XX,XXX time, take service XX/X, years

will a or engine, maybe us overhaul We it's like with least diesel Xx. at X once and

a you're And so measured that's if decades. we lifespan decades think about that for power these and generation assets, in talking about

Daniel Kutz

guess, unpack just could also that in that increased Liberty's comment fleet. view comment be higher demand year-over-year XXXX. yes, increased really a horsepower the your increased Is the will offsetting the helpful. demand then remarks from Liberty is per if That's I in you the Awesome. for horsepower implications on that, that year-over-year, be prepared could you will and view have total flat. flattish roughly read the your efficiencies, that intensity, which your roughly guess -- some the i.e. press And horsepower And and about on wondering U.S. I pulling on view for just drilled footage release

Ron Gusek

think you're I that about thinking Dan, Yes. right. exactly

talk we done has offers about that that field. the footage, if same the flat course, be to work lateral Of opportunity for in

to get ways on last find to little saw more we continue year. efficient year you year, year on As a

a one intensity is down point bit And we little A a you'll driven it. so-fleet lot attached probably that but more on that of location, move being to that the efficiency operations. work. horsepower to exactly the is to requires ultimately, fleet only has counter good trimolfrac And fleet work. headline that of on what a part to a But see you hand, accomplish that simulfrac the to is a count come of what call so the by amount same made and

trade And so one you takes and really against have another. off those X that puts

we're I of picture out think see to as as fleet time, down from could from flat, you actually could perceive that that the count. think the see think in how we Liberty sooner idea working if a incremental tighten this so leads is point and just draw That to you that the play to something I it relatively on rebound this come market about market the we later horsepower going given the year, headline might going tighten inside number it to horsepower there's provides additional fleet. bit around of really activity. a a each little the But particularly don't could a bit. be quickly clear gas the out And that at That's published than have looking be gets which standpoint, all

Operator

Waqar from Markets. ATB will Capital question with next come Our Syed

Waqar Syed

So Ron, fracing to I'm The going business this. follow-up side. on

I think you still have business. that

the lines we have -- So the Like yet. and inventory lot is to DUCs? before as completed how to that? that of sense the exhaust wells just a Do take grow Whether that like they going start connected company that E&Ps side, it have will maybe just of long production? a large driven TIL on after hear to that been some how not into you go have it

Ron Gusek

exact possibility say think into strengthened see and those older winter, get when to your a this exactly Certainly, to ended on probably exist that come strip, into them year to year. think storage headed of for a going how through an Waqar, We I'd have that that a and of great out sense tail until end days probably and need of take this don't a there. gas that answer I I the to I many what prices in the good does out. that with don't There's to we come second up I XXXX. some TILs you're question. some them. know variables this we the levels, play that wait long how half But decision a to will count forward that play see probably of online. by we response rig have And we there's strengthened heating outlook exactly then with I into probably, that. could season And reasonable will start think

So that's could today. I probably as you best give of guess as

Waqar Syed

There for you going what Okay. see data then business, I is to are may. you Great. in other North opportunity big centers that as excess back And see opportunity. Like you there. that things mostly, regions? do is built we some Do gas Permian well. and power just some the area in Rockies if a Obviously, Dakota. in There

you where see So play that regionally do opportunity out?

Ron Gusek

step of opportunities Obviously, that those. grow across as Yes. country. I number a into we there's And a business, of range will this the the expect of foundation we

support table, highlighted, The I wide our one to of across to an ability places. advantages a the the be for example would America installations us footprint Basin the DJ of bring North range maybe that. As as gives we in

And those in. so of we'll look come they at all as

that where think mentioned Early Coast. from but primary going of you're Michael coming is Texas. see lot days, deployments demand initially to East That's in a I the

can that for. maintain. like means a pile widespread of not at definitely some we'll cadence jumping sure we thoughtfully business we there. known approach opportunity to start do, on to think we then level out that. we the a make focus service has that that as losing good the Liberty and with And be everything additional to locations see and going we're layer opportunities to to But after of provide And on I the come

Waqar Syed

Well, answers, good and luck. Great. Really appreciate you thank much. the very

Operator

question Our Curran from next Tom come will Research. Seaport with

Thomas Patrick Curran

me call, let else. in echo everyone first your the Kudos taking here CEO. Ron, helm

Ron Gusek

much. very Thanks

Thomas Patrick Curran

this for point LPI chain. at positioned -- bet you Yes, supply

relates you'll Grid? provide of it turbines assets recips, to as part and the as other need with passage partnership your key DC Specifically, to any the gas

Ron Gusek

say well would I Yes. incredibly positioned.

of the as the we choice choice the things our not but of being purchaser on is to our an to of One pride only being organization ourselves customers, provider suppliers.

So our very, meaningful partner the very organization of own amount to great hard support. over our to We we success to have suppliers. Liberty of their a as entire an a history worked be

partnerships that and on that with we it's Cummins. into long-time power so Caterpillar, are will generation partnership, of MTU built over grown the and And Rolls the carry with history Royce, with have whether business. we Those Liberty now

power over so And carry one generation. services the a that oilfield partners that offers largest their us opportunity real in maybe to as side, of

we're this say already And is coming megawatts of comfortable very, the deploy Michael to up is to us XXX said, for very something going for so line year over capacity very that in I And the queue. And is would have that to as the support we chose we strong if lot of deliver an could chain going terms that manageable I'm that going and others. us. fashion being expand from standpoint to on supply to in get partnerships, I able we those incredibly think to a forward. we're timely of relative

Thomas Patrick Curran

integrate see Are point to it an did that you or the LAET of improve to expected offering and manufacturer? for to might house call, bring hesitated asset hasn't in an pain LPIs fleet have solve Earlier in aspects that in to innovate existing Liberty any to Ron, a or order allude on there and somehow. historically, the vertically opportunity fact

Ron Gusek

at packaging Well, I our lean probably this capabilities. we'll point think in say, and on time, engineering to literally sure, for design packaging

expect only but the we all world. also the bottom up inside that for plant that Liberty of capacity engineering I generation will that of the So from be not will own stuff balance design controls

can on in to timely Reno will that short being El about. the we meet time packaging ensure asked with we're help We lean frames that LAP team to

identify our other said, you we that capabilities, of capabilities that of as some aligned have And any we integration we're wouldn't we to leverage name into to really things, those that going with are outside to where vertical But and step in-house. begin strengths hesitate those. we're today well So make as focused. sense opportunities I already wouldn't

Thomas Patrick Curran

and any to to crude unique then need for side? you're going comes are the the labor just from And for the type recruitment intensity shifting training And services considerations LTI. to the labor LTI? it of there when side How differ for

Ron Gusek

and significantly of operation, of into each is be a frac to side number one services intensive field labor to business fleets every heavy only we that the less long going oilfield the the Obviously, to out meaningful the support than our frac design a not deploy the out there. going of and lot packaging this our business for construction, people on power side the less be over even but is support term. people

standpoint, ever -- at worry not From that's I something about Liberty.

industry such name the a in have strong today. We

people ability to to attract been family ourselves prided something Our is Liberty on. we've has the always

as choose any resumes different far in a power given of started our don't opportunities to family have to employment. generation that We business. to the case. this our more And than expertise I already the to that frac in people we've We've from Liberty view had in add offer

medium have and voltage So on whatnot we staff. electricians

So that we're and in as to frac, to the power build expertise to begin into generation expand we'll starting have we leverage space.

Operator

And Eddie our next question Barclays. will Kim with come from

Unknown Analyst

fair much from about all equipment incremental versus on density already you this, XX there that's megawatts anything that? this same for the power missed level the some but I if Or per your fleets your expect this megawatts to XXX maybe different deployed the million should either or of just 'XX on that inflation CapEx megawatt equipment? standpoint of 'XX it a about of anything like Sorry the as well? is CapEx in for digi the on year? we have $X.X also the million year. use power-related of deliveries And assumption pretty nature to next $XXX a Or implies at separately, guidance Is is see

Ron Gusek

Yes.

and as on let question, the first second touch take So that well. one me then we'll

things a huge in out. There'll there. of I amount a terms would differences, couple So be of point not

We everything days. wheels build as generation. out it moved to we It's and it power drive there For course, for on It's our all because of set mobile it down business, we location. to We frac we location. a dare up. another XX

at a a power the in cases, think spot, to As likely we be for world, in we're about decades some generation time.

And in so there. mobile we're to gain build less to more application. likely stationary It's be a power likely skid-mounted, generation far

frac power We do larger in generation assets than business in gen table we will the business. the also the to bring

something while, about heavier, asset comfortable that mobility versus situation. we're a stationary for generation thinking larger again, power those for a the bringing be So table could to

going gas to our the X.X, in X.X you're Jenbacher case. there, example, So a for as see megawatt from recip portfolio X engine --

So the business just frac that we put size something engine. in given would that's of that and probably not scale our

play To a CapEx, your into around variables question that there's that. of second couple the will

One delivery and taking of deployment, things pace them that. assets timing around is of deposits just around versus like

do, number as going a bit include then balance vary gas be that also So the about about and transformers, plant numbers, not to a of by conduit a substation like layer million, little deploying think top, much million plant, think on megawatt exists about to want picture not the other think variable. $X.X things a probably But to -- you're broader but generation once application to to you we application, That's talking depending only that that. pipeline everything. part to costing $X.X round is But have -- million the of is if closer there's $X round you or or We something power the $X.X it bus, of balance going how work we're in on a to whether cable not. the whether of the about the about million. power and thing

fluctuation reason per see cost is see the So a that CapEx little megawatt you'll of you number, little but other generation. than in higher a the that deployed probably just flat

Unknown Analyst

mean, Got follow-up. deliveries -- the by already placed? And to so, expected Have quick if Understood. of see those should equipment? end would year. trying that of Just the Just expect million any in XXX first Is year? years? $XXX Have a great. of X.X half there place this CapEx hit for be color it to of this take the the X year, lead think about majority to XXX times we just orders of this the it. I the megawatts been And deliveries

Ron Gusek

Yes.

have So all those orders been placed.

underway our already. chain in All of that supply is

this. firm generation, take able of for shorter of the if is lead to delivery on about delivery a The frame even for not months we're us taking to time for assets, like time be So it's power think assets that year packaged. you that. than to XX

just part think other quickly advantage so about the these as And think I marketplace our to very opportunities. It's we relative to respond that's in very, ability of solutions today.

Michael Stock

right all Yes, scheduled the the to definite in opportunities manufacturing and and all a out, alluding the when go. is speed is be the are increased. I that But But time fact we and coming right? XXX of when we'll that could could. scheduled before -- Yes, the supply coming to to ready chain with make Ron XXX it's I'd like all add back we've to yes, that, out manufacturers, in think XXX that announced clarify, we

Operator

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

Keith MacKey

Just, you Ron, new the how maybe industries us business like it the out, kind color since could -- When business next, set you've think looks power $XXX you're does little of between XXXX maybe building of of a unfolding give years. for to XXXX, say, a for EBITDA X you years? outlined that kind million level business about million in and opportunities. X you investment of as long-term we of point build on $XXX over a see in a you just of the Can bit

targeting far that that like what it is things what with So Or say sort Is early you happy would too be will that? you're in to look of here? away?

Ron Gusek

to the business, that you that. rivaled we maybe think I opportunities wouldn't business over X And think and pursue the going this our a an to would grow in a scale. to tell bullish I have business don't I grow business we're we next X say Keith, I'm any you, suggested on larger years have to have services incredibly opportunity that oilfield in I certainly, reason really there. than

Keith MacKey

maybe just frac to And the Okay. business. turning quickly

has fleet get you You talked sense to changed have average sizes 'XX 'XX fleet size How your about over and maybe of bigger. if having that? a

Ron Gusek

than high did have our mean I today XXXX. Yes. we work in simul in a level, we at frac world more just

customers some have moving We towards who are that.

simulfrac to a varies or XXX% fleet Some bit customer but from trimolfrac. increase you customer, around little anywhere from XX% to frac sizes on their depending could thoughts see

Operator

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

Ron Gusek

of a better with here the That is one, starts to mission lives in the Liberty lives. here simple at human Our everyone family. Liberty

this year beyond path poverty last further of we our on with wavered our prouder of Bettering and business, the in chapter mission urgent our Foundation, And Human pursuit a launch be story. a journey it of ago I since. more mission, next in of pursuit We and the in grows Chris us the communities Africa. XX a has never not to all started we that on work could Lives the With the to Liberty world. almost enabling of that, team that the and excited the the ultimately, in in address mission took energy we success of carry years I'm step challenge direct that start to from this as accomplished

you to I'll end thank family. Liberty with a the entire

recognized, depends you every always on it's the and that. joining work While not each the us world do for for call you Thank on today. Thanks that and day. you the

Operator

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

now may You disconnect.

Liberty Energy (LBRT) 30 Jan 252024 Q4 Earnings call transcript