Latest news with #LibertyEnergyInc
Yahoo
3 days ago
- Business
- Yahoo
Liberty Energy's (NYSE:LBRT) investors will be pleased with their impressive 110% return over the last five years
It hasn't been the best quarter for Liberty Energy Inc. (NYSE:LBRT) shareholders, since the share price has fallen 11% in that time. But that doesn't change the fact that shareholders have received really good returns over the last five years. In fact, the share price is 101% higher today. To some, the recent pullback wouldn't be surprising after such a fast rise. Of course, that doesn't necessarily mean it's cheap now. Unfortunately not all shareholders will have held it for the long term, so spare a thought for those caught in the 44% decline over the last twelve months. With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. During the last half decade, Liberty Energy became profitable. Sometimes, the start of profitability is a major inflection point that can signal fast earnings growth to come, which in turn justifies very strong share price gains. You can see how EPS has changed over time in the image below (click on the chart to see the exact values). We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, Liberty Energy's TSR for the last 5 years was 110%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence! Liberty Energy shareholders are down 43% for the year (even including dividends), but the market itself is up 14%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn't be so upset, since they would have made 16%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand Liberty Energy better, we need to consider many other factors. Even so, be aware that Liberty Energy is showing 4 warning signs in our investment analysis , and 1 of those is concerning... But note: Liberty Energy may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
27-05-2025
- Business
- Yahoo
Jim Cramer on Liberty Energy (LBRT): 'I am Not in the Oil Service Business'
We recently published a list of . In this article, we are going to take a look at where Liberty Energy Inc. (NYSE:LBRT) stands against other stocks that Jim Cramer discusses. Cramer was asked about Liberty Energy Inc. (NYSE:LBRT) during the lightning round, and he stated: 'Oh man, I used to, I love the guy who used to run the thing, you know that. But I've gotta tell you, I am not in the oil service business. And not only that, but there's a guy named Halliburton. A lot of people seem to like him. I don't care for the stock of Halliburton. I like Schlumberger.' A worker in protective gear near a large natural gas exploration machinery. Liberty Energy (NYSE:LBRT) delivers hydraulic fracturing services and technologies to oil and gas exploration and production companies. The company provides wireline work, proppant delivery, field gas processing, CNG transport, data tools, sand supply, and well site fueling and logistics. Back in November 2024, Cramer extensively commented on the company as he stated: 'Let me say from the outset that I think the world of Liberty Energy, the oil service company run by Chris Wright, who's Trump's pick for Energy Secretary. It's the fourth largest oil service company in North America, covering all the major basins. I like fracking. I like oil service companies that help extract fossil fuels from land. Overall, LBRT ranks 18th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of LBRT as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LBRT and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-04-2025
- Business
- Yahoo
Why Liberty Energy Inc. (LBRT) is Skyrocketing?
We recently published a list of . In this article, we are going to take a look at where Liberty Energy Inc. (NYSE:LBRT) stands against other other firms that ended the week strong. The stock market ended the shortened trading week mixed, with two of the major indices clocking in just modest movements, as investors parked funds for now while continuing to digest President Donald Trump's tariff policies. Among the major indices, only the S&P 500 registered gains, up 0.13 percent. In contrast, the Dow Jones fell by 1.33 percent, and the Nasdaq dropped by 0.13 percent. Ten firms, on the other hand, ended the week strong, on the back of a flurry of catalysts that sparked buying appetite. In this article, we have detailed the reasons behind their gains. To come up with the list, we only considered the stocks with a $2 billion market capitalization and a $5 million trading volume. A worker in protective gear near a large natural gas exploration machinery. Liberty Energy extended its rally for a fifth straight day on Thursday, adding 5.69 percent to finish at $12.08 apiece as investors cheered the company's beat of estimates for the first quarter of the year. In its latest earnings results, LBRT reported revenues of $977 million, as compared with a forecast of $956.66 million. Revenues dropped by 8.9 percent from $1.07 billion. Net income plunged by 75 percent to $20.11 million from $81.89 million year-on-year. Earnings per share ended at $0.04 as against the $0.0575 forecast by analysts. 'Our early-year results demonstrate a positive rebound from the fourth quarter of 2024, a trend that has continued into the second quarter,' said LBRT CEO Ron Gusek. 'In recent months, tariff announcements and a more aggressive OPEC+ production strategy have sent ripples across the energy sector. Today, we have excess demand for Liberty services as our customers align themselves with top-tier providers in a clear industry 'flight to quality,'' he added. Overall, LBRT ranks 8th on our list of firms that ended the week strong. While we acknowledge the potential of LBRT as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than LBRT but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
18-04-2025
- Business
- Yahoo
Liberty Energy Inc (LBRT) Q1 2025 Earnings Call Highlights: Navigating Market Uncertainties ...
Revenue: $977 million for Q1 2025, a 4% increase from the prior quarter. Net Income: $20 million for Q1 2025, compared to $52 million in the prior quarter. Adjusted EBITDA: $168 million for Q1 2025, an 8% sequential increase from $156 million in the prior quarter. Adjusted Net Income: $7 million for Q1 2025, compared to $17 million in the prior quarter. Net Income Per Share: $0.12 per diluted share for Q1 2025, compared to $0.31 in the prior quarter. Adjusted Net Income Per Share: $0.04 per diluted share for Q1 2025, compared to $0.10 in the prior quarter. General Administrative Expenses: $66 million for Q1 2025, including $15 million in non-cash stock-based compensation. Cash Balance: $24 million at the end of Q1 2025. Net Debt: $186 million at the end of Q1 2025, an increase of $15 million from the prior quarter. Capital Expenditures: $119 million in Q1 2025. Shareholder Distributions: $37 million through share repurchases and dividends in Q1 2025. Total Liquidity: $164 million at the end of Q1 2025, including credit facility availability. Warning! GuruFocus has detected 4 Warning Sign with LBRT. Release Date: April 17, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Liberty Energy Inc (NYSE:LBRT) reported a solid first quarter with revenue of $977 million, net income of $20 million, and adjusted EBITDA of $168 million. The company achieved strong sequential improvement in utilization across its fleet, reaching new heights in operational efficiencies and safety performance. Liberty Energy Inc (NYSE:LBRT) has excess demand for its services as customers align with top-tier providers, indicating a flight to quality in the industry. The company is well-positioned to navigate market uncertainties with greater scale, vertical integration, technological advancements, and a strong balance sheet. Strategic investments in equipment technology, digitization, and power generation have led to safer and more efficient operations with reduced fuel and parts consumption. First quarter net income of $20 million was down from $52 million in the prior quarter, and adjusted net income was $7 million compared to $17 million in the prior quarter. General administrative expenses increased to $66 million in the first quarter, up from $56 million in the prior quarter, partly due to stock-based compensation. The company faces potential challenges from tariff negotiations and OPEC+ production strategies, which could impact future outcomes. Liberty Energy Inc (NYSE:LBRT) is experiencing market uncertainties, with potential impacts from geopolitical tensions and oil supply concerns. The company anticipates modest tariff-related inflationary impacts on engines and other equipment components, which could affect costs. Q: Can you elaborate on the demand for Liberty's high-quality assets and how pricing discussions are evolving? A: Ron Gusek, President, explained that while there was a downward trend in pricing through 2023 and 2024, the pricing set during the RFP season for 2025 has remained stable. Additional inquiries are from existing customers seeking more capacity, and next-generation asset pricing remains resilient. Q: How are raw material costs impacting maintenance CapEx for the year? A: Michael Stock, CFO, noted that while there are inflationary pressures on raw materials like steel and iron, the company does not expect significant changes in pricing. Efforts are being made to offset costs through volume discounts and efficiency improvements. Q: Can you provide an update on the power generation business and its pipeline of opportunities? A: Ron Gusek highlighted that the pipeline of opportunities exceeds current capacity, with advanced discussions in electrification, data centers, and industrial development. The company remains confident in deploying assets under contract by Q1 2026. Q: How would Liberty's operations be affected if US oil production decreases due to OPEC's actions? A: Ron Gusek stated that a reduction in unconventional production could lead to a decrease in frac crew count from 220 to around 190, but it would not result in a catastrophic situation for pressure pumping. Q: What is the outlook for Liberty's CapEx and buyback strategy given current market conditions? A: Michael Stock emphasized flexibility in CapEx, particularly in the fourth quarter and into 2026. The company is focused on maintaining a strong balance sheet and will prioritize this over using debt for buybacks, especially given the current economic uncertainties. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
16-04-2025
- Business
- Yahoo
Trump energy boss's company plunging 40% is a warning for US oil production
Energy Secretary Chris Wright says Donald Trump's administration is giving the 'green light' to more US oil production, but the signal from the fracking company he used to run is flashing bright red. Liberty Energy Inc. (LBRT), which Wright led until his appointment to Trump's cabinet, has tumbled 43% this year, one of the most precipitous declines among US energy stocks. The value of Wright's stake in Liberty has fallen by nearly half to about $30 million over that period. Liberty's rout is a warning that all is not well in America's shale patch, despite Trump's pledge to achieve 'energy dominance.' Oil field servicers often provide the first indication of an industry downturn because they're the ones hired to drill and frack new wells. After the trade war and OPEC's recent decision to hike production knee-capped crude prices, investors expect US shale producers to avoid pumping more barrels into an oversupplied market. A drop in spending on services means US oil production could stall, or even decline this year, for the first time since the pandemic. So far, servicers are getting the brunt of the impact from tariff fears: An index of the companies has slid 28% this year, compared with 7% for oil and gas producers. 'It's just going to be painful,' said Dan Pickering, chief investment officer at energy-focused financial services firm Pickering Energy Partners. 'What comes next, and we've already heard whispers of this, it will be slowing down of drilling activity, releasing frack crews.' Liberty is due to kick off earnings season for oil field servicers on Wednesday after the market closes, with larger rivals Halliburton Co. (HAL), Baker Hughes Co. (BKR) and SLB (SLB) to follow next week. Oil field service companies are largely dependent on producer spending on drilling and fracking new wells for their income, leaving them uniquely vulnerable to downturns. Producers like Diamondback Energy Inc. and Devon Energy Corp., by contrast, can continue to earn revenue from their existing wells. Plus, they have the option of hedging oil prices and renegotiating for lower-cost drilling contracts. Even before tariffs, servicers had been suffering from lower demand as shale producers become more efficient, which means fewer drilling days and workers to do the same job. Investors will find out soon if further cuts are coming as contracts inked before the trade war expire and producers respond to the slump in crude prices. West Texas Intermediate crude oil, the US benchmark, closed at $61.33 on Tuesday, down 14% this year. 'We would not be surprised to see US oil output decline' if low prices persist, Barclays Plc analysts led by Amarpreet Singh wrote in a note to clients on Friday. A representative for Liberty declined to comment, citing a mandated quiet period ahead of the company's earnings release. Wright didn't immediately respond to requests for comment. The energy secretary did, however, put a positive spin on the market in an interview with Bloomberg TV on April 11. Trump's election gave a 'green light' to increase production, with pledges to roll back regulation and expand oil lease sales and permitting, he said. 'Now there is extra fear of world economic growth in the next few months among the tariffs dialogue,' he said. 'The marketplace may be discounting the wrong answer here. We will see very positive economic growth in the next few years.' Investors and analysts aren't convinced. US revenue for the five biggest frack providers is expected to drop by almost $1 billion this year, a 5% decline and the second consecutive annual drop, according to data compiled by Bloomberg. Last week, producers idled oil rigs in US shale fields at the fastest pace in almost two years. US shale is on the brink of major cutbacks, according to JPMorgan Chase & Co (JPM). The industry will cut 50 oil rigs at a sustained $60 a barrel WTI price, reducing production by half a million barrels a day, analysts led by Arun Jayaram wrote in a note this week. If prices drop to $55 a barrel, the impact doubles, the analysts said. Prices falling below $60 'will create softness that's going to cost us jobs,' said T.M. 'Roe' Patterson, co-founder and managing partner at private equity fund Marauder Capital. 'We're going stack rigs and we're going to see an industry pullback,' Patterson said. Still, oil field servicers are unlikely to go bankrupt in droves like they did during the 2014 and 2020 downturns. Balance sheets are much healthier after the pandemic as companies focus on capital discipline, said Jeff Krimmel, owner of energy strategy consulting firm Krimmel Strategy Group. 'It's not like you're going to see huge swaths of the sector struggling with liquidity, struggling to pay their bills,' Krimmel said. 'For the ones that are best differentiated with technology, this might actually be an opportunity for them to make a more compelling case even than they have to this point.' For his part, Wright wants the oil patch to focus on the benefits he says the Trump administration will bring over the long term. Trump has been clear about his desire for more crude output and lower prices, which will help bring 'prosperity at home and peace abroad,' Wright said. Predictions 'of the demise of demand growth for oil are older than I am,' he said in the Bloomberg TV interview. 'A long-term growth rate of oil has been going on for decades. I don't see any big change in that in the foreseeable future.' But concerns about demand are riding high in an industry that overwhelmingly supported Trump with cash and votes in his run for the White House. 'I would like to see the administration do a little more to put some consistency in their messaging around crude oil and to backstop pricing a little bit,' Patterson said. 'Frankly, everything they're saying right now is kind of counterintuitive.' ©2025 Bloomberg L.P.
