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Liberty Energy (LBRT) Q4 Earnings and Revenues Miss Estimates

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Liberty Energy Inc. (LBRT - Free Report) reported fourth-quarter 2023 earnings of 54 cents per share, which missed the Zacks Consensus Estimate of 57 cents. The bottom line also underperformed the year-ago quarter’s reported figure of 82 cents. This was primarily due to poor equipment and services execution, and lower activity in the reported quarter.

Revenues totaled $1.07 billion, which missed the Zacks Consensus Estimate by 0.6%. The figure also underperformed the prior-year quarter’s level of $1.22 billion by 12.3%.

The Denver-CO-based oil and gas equipment company’s adjusted EBITDA was $252.5 million compared with $295.5 million in the year-ago quarter. The figure beat our projection of $250.4 million.

Ahead of the earnings release, Liberty Energy’s board of directors announced a cash dividend of 7 cents per common share, payable on Mar 20, 2024, to stockholders of record as of Mar 6, 2024. As part of its shareholder return policy, LBRT repurchased shares worth $39 million at an average price of $19.21 per share.

Costs and Expenses

LBRT reported total costs and expenses of $951 million in the fourth quarter, down 7.4% from the year-ago quarter’s level. However, the figure is higher than our projection of $897.9 million.

Balance Sheet & Capital Expenditure

As of Dec 31, Liberty Energy had approximately $36.8 million in cash and cash equivalents. The pressure pumper’s long-term debt of $140 million represented a debt-to-capitalization of 7.1%. Further, the company’s liquidity — cash balance plus revolving credit facility — amounted to $314 million.

In the reported quarter, LBRT spent $133.6 million on its capital program. However, the figure is higher than our projection of $118 million. For full-year 2023, the figure came in at $576.4 million.


LBRT expects flat sequential revenues and Adjusted EBITDA in the first quarter, driven by seasonal trends and a cautious start to E&P activity. The following quarters are expected to see a modest increase in activity. The company anticipates strong free cash flow generation in 2024, with continued investment in digiTechnologies and the LPI business.

LBRT predicts a stable outlook for the frac industry in 2024. It also anticipates continued growth in North American oil production and is confident in its competitive advantages and ability to execute long-term strategic investments.

Important Energy Earnings So Far

While it's early in the earnings season, there have been a few key energy releases so far. Let’s take a look at some of them.

Halliburton Company (HAL - Free Report) , the leading provider of oilfield services announced fourth-quarter 2023 adjusted net income per share of 86 cents, which surpassed the Zacks Consensus Estimate of 80 cents. The figure was also well above the year-ago quarter’s level of 72 cents (adjusted).

HAL’s robust quarterly earnings were driven by the company's strong performance in international markets. As of Dec 31, 2023, the company had approximately $2.3 billion in cash/cash equivalents and $7.6 billion in long-term debt.

SLB (SLB - Free Report) , the largest oilfield contractor, announced fourth-quarter 2023 earnings of 86 cents per share (excluding charges and credits), which beat the Zacks Consensus Estimate of 84 cents. SLB’s bottom line also significantly increased from the year-ago quarter’s figure of 71 cents.

SLB’s strong quarterly earnings resulted from higher evaluation and stimulation activity in the international market. As of Dec 31, 2023, the company had approximately $4 billion in cash and short-term investments. It had a long-term debt of $10.8 billion at the end of 2023.

Meanwhile, energy infrastructure provider Kinder Morgan (KMI - Free Report) reported fourth-quarter adjusted earnings per share of 28 cents, slightly below the Zacks Consensus Estimate of 31 cents. The bottom line was adversely affected by a decline in realized weighted natural gas liquid price and milder winter conditions observed in 2023. However, KMI’s fourth-quarter DCF was $1.2 billion, down $46 million from the year-ago quarter’s level.

As of Dec 31, 2023, Kinder Morgan reported $83 million in cash and cash equivalents. Its long-term debt amounted to $27.9 billion at the quarter-end. In its initial budget for 2024, KMI set its adjusted EBITDA guidance of $8.2 billion and a dividend of $1.15 per share, indicating an increase from the prior-year reported figure of $1.13.

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