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Liberty Energy Q1 Earnings & Revenues Surpass Estimates, Both Up Y/Y
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Key Takeaways
LBRT posted Q1 EPS of 6 cents, beating estimates and rising from 4 cents a year ago.
Liberty Energy generated $1B revenues, up 4% year over year on higher activity levels.
LBRT sees strong demand for on-site power solutions driven by AI and grid constraints.
Liberty Energy Inc. (LBRT - Free Report) reported a first-quarter 2026 adjusted net profit of 6 cents per share, in contrast to the Zacks Consensus Estimate of a loss of 13 cents. The outperformance was driven by the company’s focus on technological innovation and strong operational execution. Moreover, the bottom line increased from the year-ago quarter’s profit of 4 cents.
LBRT's revenues totaled $1 billion, which beat the Zacks Consensus Estimate of $949 million. The top line also increased from the prior-year quarter’s $977 million by 4%, supported by elevated activity levels.
Liberty Energy Inc. Price, Consensus and EPS Surprise
Liberty Energy’s adjusted EBITDA was $126 million, representing 25% decrease from the year-ago quarter’s $168 million. However, the figure beat our model estimate of $96.4 million.
Ahead of the earnings release, Liberty Energy’s board of directors approved a cash dividend of 9 cents per share on Class A common stock. The dividend will be payable on June 18, 2026, to shareholders on record as of June 4.
The company distributed $15 million in cash dividends to its shareholders this quarter.
Costs & Expenses of LBRT
Liberty Energy reported total costs and expenses of $998.9 million in the first quarter, increasing 4.1% from the year-ago quarter’s level. Moreover, our estimate for the metric was pegged at $960 million.
LBRT’s Other Important Updates
During this quarter, the company expanded the Liberty Advanced Equipment Technologies (“LAET”) to include integrated power generation system packaging, strengthening its in-house engineering and system integration capabilities. The company also enhanced LAET with advanced testing, evaluation and optimization tools to support multiple power generation systems under changing load conditions and dynamic operations, while continuing to develop its own control systems and software for future use.
Balance Sheet & Capital Expenditure of LBRT
As of March 31, Liberty Energy had approximately $699.1 million in cash and cash equivalents. The pressure pumper’s long-term debt of $1.3 billion represented a debt-to-capitalization of 39.6%. Further, the company’s total liquidity, including availability under the asset-based revolving credit facility, amounted to $1.2 billion.
Regarding its power business, the company believes that grid interconnection bottlenecks, utility constraints and hyperscaler demand for AI infrastructure are driving a fundamental shift toward on-site, behind-the-meter power solutions. Consequently, the company expects its subsidiary, Liberty Power Innovations (“LPI”), to engage more directly with hyperscalers to provide fully integrated, end-to-end power solutions covering land, fuel sourcing, generation and lifecycle operations.
On financials and capital allocation, the company expects second-quarter revenues to increase by high single digits sequentially, driven by improved utilization, with normal incremental EBITDA margins. LBRT also anticipates making approximately $300 million in contract milestone payments during the second quarter or early third quarter to secure generation capacity in support of its 2029 goal of deploying 3 gigawatts of power.
The company believes its recent $1.3 billion zero-coupon convertible debt offering, coupled with capped call transactions at a 150% premium to the reference share price, provides financial flexibility while meaningfully reducing potential dilution for shareholders. Additionally, LBRT expects its effective tax rate for 2026 to be approximately 25%, with no material cash taxes payable.
The company maintains its 2026 completions capital expenditure guidance, which is expected to moderate meaningfully from prior years. Management stated that the guidance remains unchanged for now, though LBRT may revisit the outlook in July. Ongoing investments in digiFleets continue, offering structurally advantaged economics relative to competing next-generation technologies.
Looking at the broader market, LBRT thinks the North American oil and gas industry has established a cyclical floor. LBRT anticipates that recent Middle East disruptions — including the conflict in Iran, the effective closure of the Strait of Hormuz and attacks on Qatar’s Ras Laffan LNG hub — will create structural tailwinds for North American energy, as global consumers reevaluate supply chains and increase reliance on the U.S. and Canadian oil and gas.
In the completions market, LBRT thinks that years of pricing pressure and underinvestment have reduced available equipment, leading to tighter frac fleet supply than expected. As private exploration & production (E&Ps) increase activity on drilled but uncompleted wells, LBRT expects pricing to recover sooner than previously anticipated.
On power demand, the company cites the Electric Reliability Council of Texas’ projection that Texas grid demand could quadruple by 2032 and believes its unit, LPI, is well-positioned to serve large-load customers seeking to bypass traditional grid constraints. Finally, LBRT emphasizes its confidence in achieving 3 gigawatts of deployed power by 2029, with most required generation capacity already ordered or under final contractual negotiation.
Regarding international and technology development, LBRT has established an initial presence in Australia through alliances and investments. The company is also pursuing commercial deployment of its digiPrime technology — the only 100% natural gas engine with variable speed capability in the oilfield — as part of its ongoing fleet modernization efforts.
Important Earnings at a Glance
While we have discussed LBRT’s first-quarter results in detail, let us take a look at three other key reports in this space.
Halliburton Company (HAL - Free Report) posted first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents.
Halliburton reported first-quarter capital expenditure of $192 million. As of March 31, 2026, this Houston, TX-based oil and gas equipment and services company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6.
Houston, TX-based oil and gas storage and transportation company, Kinder Morgan Inc. (KMI - Free Report) , posted first-quarter 2026 adjusted earnings per share (EPS) of 48 cents, which beat the Zacks Consensus Estimate of 38 cents. The bottom line increased year over year from 34 cents. The strong quarterly results can be primarily attributed to contributions from the Natural Gas Pipelines business segment.
As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 billion. KMI’s project backlog was reported at $10.1 billion by the end of the first quarter. The midstream energy major added that natural gas projects comprise approximately 92% of its project backlog, with nearly 60% dedicated to supporting local distribution companies and power generation.
Fort Worth, TX-based oil and gas exploration and production company, Range Resources Corporation (RRC - Free Report) , posted first-quarter 2026 adjusted earnings of $1.52 per share, which beat the Zacks Consensus Estimate of $1.33. The bottom line also improved from the prior-year level of 96 cents. Strong quarterly results can be attributed to higher gas-equivalent production and increased natural gas price realization.
Drilling and completion expenditure totaled $130 million. An additional $5 million was spent on acreage and $4 million on infrastructure and other investments. At the end of the first quarter, Range Resources reported a total debt of $819.3 million, net of deferred financing costs.
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Liberty Energy Q1 Earnings & Revenues Surpass Estimates, Both Up Y/Y
Key Takeaways
Liberty Energy Inc. (LBRT - Free Report) reported a first-quarter 2026 adjusted net profit of 6 cents per share, in contrast to the Zacks Consensus Estimate of a loss of 13 cents. The outperformance was driven by the company’s focus on technological innovation and strong operational execution. Moreover, the bottom line increased from the year-ago quarter’s profit of 4 cents.
LBRT's revenues totaled $1 billion, which beat the Zacks Consensus Estimate of $949 million. The top line also increased from the prior-year quarter’s $977 million by 4%, supported by elevated activity levels.
Liberty Energy Inc. Price, Consensus and EPS Surprise
Liberty Energy Inc. price-consensus-eps-surprise-chart | Liberty Energy Inc. Quote
Liberty Energy’s adjusted EBITDA was $126 million, representing 25% decrease from the year-ago quarter’s $168 million. However, the figure beat our model estimate of $96.4 million.
Ahead of the earnings release, Liberty Energy’s board of directors approved a cash dividend of 9 cents per share on Class A common stock. The dividend will be payable on June 18, 2026, to shareholders on record as of June 4.
The company distributed $15 million in cash dividends to its shareholders this quarter.
Costs & Expenses of LBRT
Liberty Energy reported total costs and expenses of $998.9 million in the first quarter, increasing 4.1% from the year-ago quarter’s level. Moreover, our estimate for the metric was pegged at $960 million.
LBRT’s Other Important Updates
During this quarter, the company expanded the Liberty Advanced Equipment Technologies (“LAET”) to include integrated power generation system packaging, strengthening its in-house engineering and system integration capabilities. The company also enhanced LAET with advanced testing, evaluation and optimization tools to support multiple power generation systems under changing load conditions and dynamic operations, while continuing to develop its own control systems and software for future use.
Balance Sheet & Capital Expenditure of LBRT
As of March 31, Liberty Energy had approximately $699.1 million in cash and cash equivalents. The pressure pumper’s long-term debt of $1.3 billion represented a debt-to-capitalization of 39.6%. Further, the company’s total liquidity, including availability under the asset-based revolving credit facility, amounted to $1.2 billion.
In the reported quarter, this Zacks Rank #3 (Hold) company spent $133.4 million on its capital program, down from our estimate of $246.9 million. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
LBRT’s Management Remarks & Outlook
Regarding its power business, the company believes that grid interconnection bottlenecks, utility constraints and hyperscaler demand for AI infrastructure are driving a fundamental shift toward on-site, behind-the-meter power solutions. Consequently, the company expects its subsidiary, Liberty Power Innovations (“LPI”), to engage more directly with hyperscalers to provide fully integrated, end-to-end power solutions covering land, fuel sourcing, generation and lifecycle operations.
On financials and capital allocation, the company expects second-quarter revenues to increase by high single digits sequentially, driven by improved utilization, with normal incremental EBITDA margins. LBRT also anticipates making approximately $300 million in contract milestone payments during the second quarter or early third quarter to secure generation capacity in support of its 2029 goal of deploying 3 gigawatts of power.
The company believes its recent $1.3 billion zero-coupon convertible debt offering, coupled with capped call transactions at a 150% premium to the reference share price, provides financial flexibility while meaningfully reducing potential dilution for shareholders. Additionally, LBRT expects its effective tax rate for 2026 to be approximately 25%, with no material cash taxes payable.
The company maintains its 2026 completions capital expenditure guidance, which is expected to moderate meaningfully from prior years. Management stated that the guidance remains unchanged for now, though LBRT may revisit the outlook in July. Ongoing investments in digiFleets continue, offering structurally advantaged economics relative to competing next-generation technologies.
Looking at the broader market, LBRT thinks the North American oil and gas industry has established a cyclical floor. LBRT anticipates that recent Middle East disruptions — including the conflict in Iran, the effective closure of the Strait of Hormuz and attacks on Qatar’s Ras Laffan LNG hub — will create structural tailwinds for North American energy, as global consumers reevaluate supply chains and increase reliance on the U.S. and Canadian oil and gas.
In the completions market, LBRT thinks that years of pricing pressure and underinvestment have reduced available equipment, leading to tighter frac fleet supply than expected. As private exploration & production (E&Ps) increase activity on drilled but uncompleted wells, LBRT expects pricing to recover sooner than previously anticipated.
On power demand, the company cites the Electric Reliability Council of Texas’ projection that Texas grid demand could quadruple by 2032 and believes its unit, LPI, is well-positioned to serve large-load customers seeking to bypass traditional grid constraints. Finally, LBRT emphasizes its confidence in achieving 3 gigawatts of deployed power by 2029, with most required generation capacity already ordered or under final contractual negotiation.
Regarding international and technology development, LBRT has established an initial presence in Australia through alliances and investments. The company is also pursuing commercial deployment of its digiPrime technology — the only 100% natural gas engine with variable speed capability in the oilfield — as part of its ongoing fleet modernization efforts.
Important Earnings at a Glance
While we have discussed LBRT’s first-quarter results in detail, let us take a look at three other key reports in this space.
Halliburton Company (HAL - Free Report) posted first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents.
Halliburton reported first-quarter capital expenditure of $192 million. As of March 31, 2026, this Houston, TX-based oil and gas equipment and services company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6.
Houston, TX-based oil and gas storage and transportation company, Kinder Morgan Inc. (KMI - Free Report) , posted first-quarter 2026 adjusted earnings per share (EPS) of 48 cents, which beat the Zacks Consensus Estimate of 38 cents. The bottom line increased year over year from 34 cents. The strong quarterly results can be primarily attributed to contributions from the Natural Gas Pipelines business segment.
As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 billion. KMI’s project backlog was reported at $10.1 billion by the end of the first quarter. The midstream energy major added that natural gas projects comprise approximately 92% of its project backlog, with nearly 60% dedicated to supporting local distribution companies and power generation.
Fort Worth, TX-based oil and gas exploration and production company, Range Resources Corporation (RRC - Free Report) , posted first-quarter 2026 adjusted earnings of $1.52 per share, which beat the Zacks Consensus Estimate of $1.33. The bottom line also improved from the prior-year level of 96 cents. Strong quarterly results can be attributed to higher gas-equivalent production and increased natural gas price realization.
Drilling and completion expenditure totaled $130 million. An additional $5 million was spent on acreage and $4 million on infrastructure and other investments. At the end of the first quarter, Range Resources reported a total debt of $819.3 million, net of deferred financing costs.