DENVER – Liberty Energy Inc. (NYSE: LBRT) reported its second-quarter 2024 financial and operating results, with earnings per share (EPS) in line with analyst expectations and revenue slightly exceeding the consensus estimate. The company reported earnings per share of $0.61, right in line with analyst estimates, and revenue of $1.16 billion, just below the $1.17 billion expected.
Liberty Energy shares saw a positive reaction, with shares rising 2% following the earnings release. The market movement reflects investor satisfaction with the company’s ability to meet earnings expectations.
Compared to the same quarter last year, the company’s revenue decreased 3%, compared to $1.2 billion in the second quarter of 2023. Despite softer drilling and completion activity in the industry, the company achieved a sequential revenue increase of 8% and a A 12% sequential increase in adjusted EBITDA, which totaled $273 million.
Chris Wright, Chief Executive Officer of Liberty Energy, attributed the strong performance to the company’s culture, customer partnerships and innovative technologies. “We delivered sequential revenue and adjusted EBITDA increases of 8% and 12%, respectively, while industry drilling and completion activity declined slightly over the same period,” Wright said. He also highlighted the company’s record average daily pump efficiency and safety performance as key factors underlying the results.
Liberty Energy’s focus on capital-efficient, low-emission natural gas technologies has led to the highest diesel displacement in the company’s history. The use of natural gas-powered DigiFleets and the record replacement of gas with dual-fuel equipment have been an important development. Over the past year, the company has increased dual fuel replacement levels by more than 25%.
The company’s strategic investments are expected to lead to higher profits and higher cash flow generating potential. Wright emphasized the company’s commitment to returning capital to shareholders, noting that Liberty Energy has returned $458 million to shareholders through share repurchases and quarterly cash dividends since the reinstatement of the capital return program.
Looking ahead, global oil and gas markets are expected to remain favorable, with the company expecting similar financial performance in the second half of the year compared to the first half. Despite some slowdown in completions activity in North America, Liberty Energy is positioned to continue investing in its portfolio, generating healthy free cash flow and returning capital to shareholders.
Liberty Energy’s results reflect its ability to navigate a modestly softer industrial environment while maintaining strong operating and financial performance. The company’s emphasis on efficiency, innovation and capital discipline continues to resonate with investors, as evidenced by the positive market reaction to the earnings announcement.
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