Liberty Energy (LBRT) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $1.2B, up 8% sequentially but down 2.9% year-over-year, with adjusted EBITDA of $273M, up 12% sequentially and down from $311.5M in Q2 2023.

• Net income for Q2 2024 was $108M, or $0.64 per diluted share, down from $152.7M in Q2 2023, reflecting lower revenues and higher depreciation.

• Achieved record operational efficiencies, safety performance, and increased fleet utilization, supported by technology and vertical integration.

• Distributed $41M to shareholders in Q2 via buybacks and dividends; $458M returned since July 2022, retiring 13.2% of shares.

• Continued focus on innovation, AI-powered logistics, and transition to lower-emission completions.

Financial highlights

• Q2 2024 revenue: $1.2B, up from $1.1B in Q1 (8% sequential growth), down 3% year-over-year.

• Net income: $108M (Q2), up from $82M (Q1), down from $153M year-over-year; adjusted net income: $103M (Q2).

• Adjusted EBITDA: $273M (Q2), up from $245M (Q1), down from $311.5M year-over-year.

• Fully diluted EPS: $0.64 (Q2), up from $0.48 (Q1), down from $0.87 (Q2 2023); adjusted EPS: $0.61 (Q2).

• Cash on hand: $30M; total debt: $147M; total liquidity: $271M as of June 30, 2024.

Outlook and guidance

• H2 2024 financial performance expected to be similar to H1, with flattish results quarter-to-quarter.

• Strategic investments in technology, vertical integration, and natural gas-fueled fleets to drive future growth.

• CapEx expected at high end of 2024 range, driven by long-term growth projects and technology upgrades.

• On track to end 2024 with ~90% of fleets powered primarily by natural gas.

• Management expects global oil and gas markets to remain constructive, with potential demand resurgence for quality frac crews in 2025.