Liberty Energy (LBRT) Q3 Earnings and Revenues Beat Estimates
Liberty Energy Inc. LBRT reported third-quarter 2023 earnings of 85 cents per share, which beat the Zacks Consensus Estimate of 74 cents. The bottom line also outperformed the year-ago quarter’s reported figure of 78 cents. The Denver-CO-based oil and gas equipment company’s outperformance reflects the impact of strong execution and increased service pricing.
Revenues totaled $1.22 billion, which beat the Zacks Consensus Estimate by 7%. The figure also outperformed the prior-year quarter’s level of $1.19 billion by 2.5%.
The Denver-CO-based oil and gas equipment company’s adjusted EBITDA was $319.4 million compared with $276.9 million in the year-ago quarter. The figure beat our projection of $250.3 million.
Liberty’s board of directors announced a cash dividend of 7 cents per common share, payable on Dec 20, 2023, to stockholders of record as of Dec 6, 2023. This dividend is up 40% from the previous quarter’s level.
As part of its shareholder return policy, LBRT repurchased shares worth $29 million at an average price of $16.38 per share.
Liberty Energy Inc. Price, Consensus and EPS Surprise
Liberty Energy Inc. price-consensus-eps-surprise-chart | Liberty Energy Inc. Quote
Costs and Expenses
LBRT reported total costs and expenses of $1.01 billion in the third quarter, up 0.5% from the year-ago quarter’s level. The figure is also higher than our projected level of $949.9 million.
Balance Sheet & Capital Expenditure
As of Sep 30, LBRT had approximately $27 million in cash and cash equivalents. Its long-term debt of $223 million represented a debt-to-capitalization of 11.1%. The company’s liquidity, cash balance plus revolving credit facility, amounted to $322 million.
Liberty Energy spent $161.4 million on its capital program in the reported quarter compared with $95 million in the year-ago period. However, the figure fell short of our prediction of $230.2 million.
Guidance
LBRT anticipates Adjusted EBITDA growth of 30-40% over 2022 for full-year 2023.
The company expects fracking activity to increase slightly in 2024 because of the recent rise in oil and gas prices. However, fracking activity is expected to decline slightly in the fourth quarter due to seasonal softness, cold weather and holiday disruptions.
Liberty Energy expects global oil and gas markets to rise due to North American demand and OPEC+ decisions, including Saudi Arabia's production cuts and encouraging long-term investments in North American shale.
Zacks Rank and Other Key Picks
Currently, LBRT carries a Zacks Rank #2 (Hold).
Some other top-ranked stocks for investors interested in the energy sector are CVR Energy CVI and USA Compression Partners USAC, each sporting a Zacks Rank #1 (Strong Buy), and Harbour Energy HBRIY, carrying a Zacks Rank #2 at present. You can see he complete list of today’s Zacks #1 Rank stocks here.
CVR Energy is valued at $3.25 billion. In the past year, its shares have lost 12.6%.
CVI currently pays a dividend of $2 per share or 6.19% on an annual basis. Its payout ratio currently sits at 30% of earnings.
USA Compression Partners is valued at around $2.53 billion. USAC currently pays a dividend of $2.10 per unit, or 8.15% on an annual basis.
USAC provides natural gas compression services. The company offers compression services to oil companies and independent producers, processors, gatherers, and transporters of natural gas and crude oil. It also operates stations.
Harbour Energy is worth approximately $2.4 billion. HBRIY currently pays a dividend of 21 cents per share, or 6.59% on an annual basis.
The company's activities include acquiring, exploring, developing, and producing oil and gas reserves. It has ownership stakes in several properties in the United Kingdom, Norway, Indonesia, Vietnam and Mexico.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CVR Energy Inc. (CVI) : Free Stock Analysis Report
USA Compression Partners, LP (USAC) : Free Stock Analysis Report
Liberty Energy Inc. (LBRT) : Free Stock Analysis Report
Harbour Energy PLC Sponsored ADR (HBRIY) : Free Stock Analysis Report
