Liberty Oilfield Services (LBRT) AI Stock Analysis

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Liberty Oilfield Services

(NYSE:LBRT)

Rating:72Outperform

Price Target:

$13.50

▲(9.40%Upside)

Liberty Oilfield Services' overall stock score is driven by strong financial performance and attractive valuation metrics. The company shows resilience through solid profitability and cash flow management, despite technical indicators hinting at a bearish trend. Earnings call sentiment is cautiously optimistic, recognizing both operational improvements and external challenges.

Positive Factors

Financial Performance

LBRT reported an upside in first quarter results, with revenue and adjusted EBITDA exceeding consensus expectations by 3% and 9%, respectively, due to strong operating leverage and improved operational efficiencies.

Market Position

LBRT's Completion Services business is considered best in class, with frac assets almost fully utilized compared to industry averages, showcasing the company's strong market position.

Strategic Investments

LBRT's new Power Generation Services business and investments in proprietary mobile power generation units position the company uniquely well for future growth, suggesting potential for success in its new venture.

Negative Factors

Macroeconomic Risks

Macroeconomic and oil price uncertainty creates potential downside risk for LBRT as a high beta, pureplay US Land Oil Field Services stock.

Market Uncertainty

Lack of firm offtake and plans to play in the merchant power market create uncertainty around future cash flows for LBRT.

Oil Price Fluctuations

There is plausible downside to previous EBITDA guidance if West Texas Intermediate crude oil prices fall below $60 per barrel, indicating potential risks due to oil price fluctuations.

Liberty Oilfield Services (LBRT) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$1.93B

Dividend Yield2.52%

Average Volume (3M)2.58M

Price to Earnings (P/E)7.9

Beta (1Y)0.96

Revenue Growth-7.45%

EPS Growth-44.88%

CountryUS

Employees5,700

SectorEnergy

Sector Strength45

IndustryOil & Gas Equipment & Services

Share Statistics

EPS (TTM)0.04

Shares Outstanding161,954,210

10 Day Avg. Volume2,741,829

30 Day Avg. Volume2,584,531

Financial Highlights & Ratios

PEG Ratio-0.38

Price to Book (P/B)0.95

Price to Sales (P/S)0.00

P/FCF Ratio8.43

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$16.45

Price Target Upside33.31% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering10

Liberty Oilfield Services Business Overview & Revenue Model

Company DescriptionLiberty Oilfield Services Inc. is a leading North American provider of hydraulic fracturing services to onshore oil and natural gas exploration and production companies. The company operates within the oilfield services sector, offering specialized technology, expertise, and equipment designed to enhance oil and gas production efficiency. With a commitment to innovation and safety, Liberty Oilfield Services delivers high-quality, cost-effective solutions to its clients.

How the Company Makes MoneyLiberty Oilfield Services generates revenue primarily through the provision of hydraulic fracturing services. The company is contracted by oil and gas producers to perform fracturing operations, which involve the injection of fluid into subterranean rock formations to enhance the extraction of oil and gas. Key revenue streams include service fees for fracturing operations, rental of specialized equipment, and the sale of related consumables. Liberty maintains strategic partnerships with major exploration and production companies, leveraging these relationships to secure long-term contracts and ensure a steady stream of business. The company's earnings are influenced by factors such as the level of drilling activity, oil and gas prices, technological advancements, and regulatory developments in the industry.

Liberty Oilfield Services Earnings Call Summary

Earnings Call Date:Apr 16, 2025

(Q1-2025)

% Change Since: 8.72%|

Next Earnings Date:Jul 29, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a mix of positive developments and challenges. While the company reported strong revenue and EBITDA growth supported by technological advancements and strategic acquisitions, it also faced a decline in net income and increased G&A expenses. Market uncertainties due to tariffs and OPEC strategies pose potential risks. Overall, the sentiment is cautiously optimistic but mindful of external pressures.

Q1-2025 Updates

Positive Updates

Strong First Quarter Revenue

Liberty Energy Inc. reported a first quarter revenue of $977 million, marking a 4% sequential increase from $944 million in the prior quarter.

Improved Adjusted EBITDA

The company achieved an adjusted EBITDA of $168 million, an 8% increase from $156 million in the previous quarter.

Advanced Technological Initiatives

Liberty Energy Inc. launched The Hive, a next-generation digital intelligence hub, and saw increased life expectancy of equipment components by implementing AI-driven predictive maintenance.

Strategic Acquisition

The acquisition of IMG, a leader in distributed power systems, strengthens Liberty's position in the PJM utility market.

Expansion of Power Services

Liberty is expanding its power services beyond the oilfield, including projects in data centers up to 250 megawatts in size.

Resilient Pricing for Next-Gen Assets

Pricing remains strong for next-generation Digi fleets, reflecting continued customer demand for high-quality assets.

Negative Updates

Decline in Net Income

Net income for the first quarter was $20 million, down from $52 million in the previous quarter.

Increased General and Administrative Expenses

G&A expenses rose to $66 million, an increase from $56 million in the prior quarter, due to accelerated and modified stock-based compensation.

Market Uncertainty Due to Tariffs and OPEC Plus Strategies

The company is facing potential challenges from tariff announcements and evolving OPEC Plus production strategies, impacting future market conditions.

Decline in Adjusted Net Income per Share

Adjusted net income per diluted share dropped to $0.04 from $0.10 in the prior quarter.

Company Guidance

In the first quarter of fiscal year 2025, Liberty Energy Inc. reported robust financial and operational performance, with revenue reaching $977 million and a net income of $20 million. The company achieved an adjusted EBITDA of $168 million, marking an 8% increase from the previous quarter. Liberty Energy distributed $37 million to shareholders through share repurchases and dividends. The quarter also saw significant operational improvements, including heightened utilization across the fleet, advancements in operational efficiencies, and a new high in equipment component life expectancy, with engine, fluid end, and power end lifespans increasing by 27%, 40%, and 37% respectively over the past two years. Despite market uncertainties linked to tariffs and OPEC plus production strategies, the company anticipates sequential growth in revenue and profitability in the second quarter, leveraging its scale, vertical integration, and technological advancements. Liberty Energy ended the quarter with a cash balance of $24 million and net debt of $186 million, while capital expenditures included $119 million in investments across various initiatives. The company is maintaining a strong balance sheet to navigate potential market challenges while pursuing long-term growth opportunities in power services and beyond.

Liberty Oilfield Services Financial Statement Overview

Summary

Liberty Oilfield Services exhibits a strong financial performance with solid profitability margins and a stable balance sheet. The company effectively manages leverage while generating robust cash flows. However, the recent decline in revenue growth could pose a challenge, necessitating strategic initiatives to revitalize top-line growth.

Income Statement

Positive

Liberty Oilfield Services shows a positive trajectory in profitability. The TTM Gross Profit Margin is 12.57%, and the Net Profit Margin is 6.02%, indicating effective cost management. However, Revenue Growth Rate has been negative recently, reflecting a decrease in revenue compared to the previous year. EBIT and EBITDA margins are solid at 6.95% and 20.41%, respectively, showcasing operational efficiency.

Balance Sheet

Positive

The company maintains a stable financial position with a Debt-to-Equity Ratio of 0.29, indicating moderate leverage. The Return on Equity (ROE) is 12.88%, which suggests a decent return on shareholder investments. The Equity Ratio is 58.83%, highlighting a strong equity base relative to total assets. However, there is room for improvement in asset growth.

Cash Flow

Positive

The cash flow position is robust with a positive Free Cash Flow Growth Rate of 24.54% from the last annual report. The Operating Cash Flow to Net Income Ratio is 3.39, demonstrating strong cash generation efficiency relative to net income. The Free Cash Flow to Net Income Ratio is 0.87, indicating effective conversion of net income into free cash flow.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
4.22B	4.32B	4.75B	4.15B	2.47B	965.79M
	Gross Profit
530.45M	609.61M	977.04M	677.16M	-41.90M	-72.28M
	EBIT
293.45M	389.47M	760.58M	97.91M	-181.22M	-177.03M
	EBITDA
861.16M	940.53M	1.19B	748.99M	100.57M	3.32M
	Net Income Common Stockholders
254.23M	316.01M	556.32M	399.60M	-187.00M	-160.67M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
24.10M	19.98M	36.78M	43.68M	20.00M	68.98M
	Total Assets
3.36B	3.30B	3.03B	2.58B	2.04B	1.89B
	Total Debt
563.52M	533.61M	405.31M	348.92M	243.63M	211.58M
	Net Debt
539.42M	513.62M	368.52M	305.24M	223.64M	142.61M
	Total Liabilities
1.38B	1.32B	1.19B	1.08B	810.22M	579.90M
	Stockholders Equity
1.97B	1.98B	1.84B	1.50B	1.21B	1.15B
Cash Flow		Free Cash Flow
222.12M	178.34M	411.29M	71.04M	-63.33M	-18.21M
	Operating Cash Flow
862.10M	829.37M	1.01B	530.36M	135.47M	85.42M
	Investing Cash Flow
-607.29M	-643.11M	-672.33M	-450.66M	-186.49M	-100.27M
	Financing Cash Flow
-254.32M	-202.71M	-349.31M	-55.77M	2.06M	-28.87M

Liberty Oilfield Services Technical Analysis

Technical Analysis Sentiment

Positive

Last Price12.34

Price Trends

50DMA

12.13

Positive

100DMA

14.78

Negative

200DMA

16.79

Negative

Market Momentum

MACD

-0.04

Negative

RSI

53.83

Neutral

STOCH

55.01

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LBRT, the sentiment is Positive. The current price of 12.34 is above the 20-day moving average (MA) of 11.96, above the 50-day MA of 12.13, and below the 200-day MA of 16.79, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 53.83 is Neutral, neither overbought nor oversold. The STOCH value of 55.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LBRT.

Liberty Oilfield Services Peers Comparison

Overall Rating

UnderperformOutperform

Sector (57)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INVX	75 Outperform	$1.06B	5.78	13.87%	―	72.10%	―
LBRT	72 Outperform	$1.93B	7.90	13.18%	2.52%	-7.45%	-44.88%
HLX	71 Outperform	$987.98M	12.06	5.64%	―	0.34%	―
AESI	65 Neutral	$1.60B	41.49	2.90%	7.61%	77.72%	-75.78%
OIS	58 Neutral	$277.17M	53.29	0.75%	―	-9.04%	―
Sector *	57 Neutral	$7.14B	3.09	-4.49%	5.67%	0.82%	-49.15%
PUMP	55 Neutral	$596.44M	―	-16.24%	―	-13.32%	-309.35%

* Energy Sector Average

Performance Comparison

LBRT

Liberty Oilfield Services

12.34

-10.26

-45.40%

INVX

Innovex International

15.57

-2.50

-13.84%

HLX

Helix Energy

6.62

-4.16

-38.59%

OIS

Oil States International

4.62

0.45

10.79%

PUMP

Propetro Holding

5.96

-3.26

-35.36%

AESI

Atlas Energy Solutions

13.12

-7.02

-34.86%

Liberty Oilfield Services Corporate Events

Executive/Board Changes

Liberty Energy Director Audrey Robertson Resigns

Neutral

Feb 18, 2025

On February 12, 2025, Audrey Robertson, a member of the Board of Directors of Liberty Energy Inc., announced her intention to resign from the board. Her resignation is contingent upon her confirmation by the U.S. Senate as the incoming Assistant Secretary of Energy, Efficiency and Renewables in the Department of Energy.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.