|Bid||8.72 x 1100|
|Ask||8.80 x 1300|
|Day's Range||8.73 - 9.23|
|52 Week Range||7.89 - 17.70|
|Beta (5Y Monthly)||2.39|
|PE Ratio (TTM)||8.91|
|Earnings Date||Feb 04, 2020|
|Forward Dividend & Yield||0.20 (2.15%)|
|Ex-Dividend Date||Mar 04, 2020|
|1y Target Est||13.12|
Liberty Oilfield Services Inc. (NYSE:LBRT) announced today that its Board of Directors has declared a quarterly cash dividend of $0.05 per share of Class A common stock, to be paid on March 20, 2020 to holders of record as of March 6, 2020. A distribution of $0.05 per unit has been approved for holders of units in Liberty Oilfield Services New HoldCo LLC, which will use the same record and payment date.
While not a mind-blowing move, it is good to see that the Liberty Oilfield Services Inc. (NYSE:LBRT) share price has...
Liberty Oilfield Services Inc. (NYSE:LBRT) announced today that it will release its financial results for the fourth quarter and full-year 2019 on Wednesday, February 5, 2020 after the market closes. Following the release, the Company will host a conference call to discuss the results at 8:00AM Mountain Time (10:00AM Eastern Time) on Thursday, February 6, 2020. Presenting the Company’s results will be Chris Wright, Chief Executive Officer, Ron Gusek, President and Michael Stock, Chief Financial Officer.
Institutional investors, portfolio managers, financial analysts, CIOs and other capital market professionals who invest in the energy space should register now for the EnerCom Dallas energy investment conference, which is coming to The Tower Club February 11-12 in downtown Dallas.
Investment banking firm B. Riley FBR has released a report on the state of the US oil industry, and sees room for growth in the sector. This optimistic outlook is based on several factors, but most importantly, the firm’s view that oil stocks are in a rally and that the US rig count, which has been declining in 2019 due to the current low-price regime, has troughed. If B. Riley is correct, then the oil industry in the US will see an upturn in 2020, and oil stocks will rise accordingly.That said, the firm has several stock recommendations for investors interested in buying into the oil boom. But these recommendations might not be quite what you expect – they aren’t drilling companies, but rather the oilfield support companies that drill operators rely on to provide the ancillary services – drillhead maintenance, well activation, pipeline and tanker facilities – required to keep up extraction activities and move the product. After all, while oil prices are low, a barrel of crude has no value if it can’t make it to market.Analyst Tom Curran led the team that authored the report, and he focused on low-cost stocks in the support segment of the oil industry. This is where he sees the best potential for upside in oil investments – and that upside can exceed 25% in the coming months. We’ve used TipRanks’ Stock Screener tool to further sort Curran's list of champs, and find three with Strong Buy consensus ratings and great prospects for mid-term growth. Let's take a closer look:Liberty Oilfield Services (LBRT)Liberty, a small-cap player in the industry, supports the fracking segment of oil operations. The company supplies engineers, piping equipment, water, sand, and chemicals needed to maintain hydraulic fracking – the technology that revitalized American oil and started the current energy boom in the first place.It’s a high-overhead niche, as fracking tech involves high-cost equipment and personnel, and 2019’s drop in oil prices hurt Liberty. In Q3, the most recent reported, the company showed revenues of $515 million, 1.3% below the forecast, and EPS of 15 cents, 44% below expectations. Both numbers were down year-over-year, too.The poor report pushed share prices down in early November, but LBRT has since recovered and is now trading up 18.6% since the quarterly release. Investors should note that Liberty, like many companies in the energy sector, pays out a dividend – and that the divided of 5 cents is easily sustainable at current EPS levels. The yield of 1.8% is slightly below average, however.Curran sees plenty of reason to buy into LBRT. In his review of the stock, he writes, “LBRT's… liquidity-rich balance sheet, with a net cash position set to soar higher on robust 2020 FCF generation and attractive valuation make it our favorite pressure pumper... we estimate that LBRT is trading at 2020 FCF yield of 15%...” He sets a $16 dollar price target on the stock, showing both the shares’ affordable cost of entry and 43% upside potential. (To watch Curran’s track record, click here)Liberty’s Strong Buy consensus rating backed by 7 recent reviews, which include 6 Buys. The average price target, $14.07, indicates a 28% growth potential in the coming 12 months, making the $11 current trading price a bargain. (See Liberty stock analysis at TipRanks)Select Energy Services (WTTR)Select Energy, another small-cap energy company like Liberty above, inhabits the fracking support niche. Select offers a full range of services in the water, chemical, and wellsite segments of the fracking industry. The company’s services include fluid sourcing and transport, water storage, filtering, and treatment, chemical technology and sourcing, and drill, crane, and pipeline logistics.WTTR shares fell by 49% in 2019, but combined with a strong upside and improving quarterly numbers, the stock represents a bargain for investors. The quarterly numbers, reported in early November, were down year-over-year, but showed sequential gains from Q2 2019. Revenues were up 2% to $329 million, gross profits rose 2.7% to $41 million, and operations generated cash flow of $67.5 million. Select was able to complete the purchase of competitor Baker Hughes’ well chemical services for $10.4 million during the quarter. Added to a modest increase in gross margins, to 12.5%, Q3 2019 was strong for WTTR.Riley’s Curran is upbeat on WTTR, despite the drop in share price during the year. Writing at the time of the quarterly release, he said of the company, “For the first nine months of 2019, the company has generated FCF of $65.0M, which already meets the floor of management's full-year 2019 guidance... In addition, WTTR further pruned its 2019 capex budget; made a shrewd, strategically cogent bolt-on; repurchased stock; and exited 3Q with no debt and $43M in cash… WTTR's ability to achieve such impressive results reinforces our core thesis that this is the best platform in one of the fundamentally healthiest OFS niches…” Curran's price target, $15, indicates a robust upside of 61%.WTTR shares finished 2019 on a high note, gaining 20.6% in December’s trading. The stock holds a Strong Buy consensus rating, based on 4 Buys and 1 Hold set in the last 2 months. Shares sell for just $9.28, but the average price target of $11.03 suggests an upside of 18.8%. While lower than Curran’s outlook, this average still indicates a strong chance for gains in the near-term. (See Select Energy stock analysis at TipRanks)Solaris Oilfield Infrastructure (SOI)Like the other companies on this list, Solaris provides the products and services that oil production companies required to conduct fracking operations. Solaris offers sand silos and rail-to-truck transfer systems that increase efficiency in shale oil plays in the United States. Formed in 2014, most of Solaris’ operations are in Texas and the surrounding states of Louisiana, Oklahoma, and New Mexico, but the company also has operations in Colorado, North Dakota, Ohio, and West Virginia.Solaris saw strong earnings in Q3 2019, its most recent reported. EPS came in at 37 cents, based on a net income of $17.7 million. The company saw net cash for the quarter’s operations of $31.1 million, and a positive free cash flow of $26.9 million. It was an upbeat report, reflecting 2H19’s gains in an otherwise difficult year.The solid cash position gave SOI confidence to pay out its 10-cent quarterly dividend for Q3, and raise that payment to 11 cents for Q4. The annual yield, 3%, is 50% higher than the S&P average, making SOI shares not just a low-cost-of-entry bargain, but also a better cash return than bonds.Curran sets out a simple buying proposition on SOI, writing, “We believe the company's solid results for a very tough quarter; highly FCF generative model and prudent balance sheet stewardship, with a resultant swelling cash position (10% of market valuation); and ongoing last mile logistics leadership… all support why it’s one of our preferred names.” He puts a $16 price target on the stock, implying an upside of 14%. (To watch Curran’s track record, click here)Solaris has the lowest upside potential of the stocks in this list, at just 9%, but the Strong Buy analyst consensus, based on 7 Buy ratings given in the last two months, is unanimous. Wall Street’s views this as a stock that’s bottomed out, and is ready to start growing. Shares are trading for $14, and the average price target is $15.36. (See Solaris Oilfield stock analysis at TipRanks)
Liberty Oilfield Services (NYSE:LBRT) shareholders are no doubt pleased to see that the share price has had a great...
Most investors tend to think that hedge funds and other asset managers are worthless, as they cannot beat even simple index fund portfolios. In fact, most people expect hedge funds to compete with and outperform the bull market that we have witnessed in recent years. However, hedge funds are generally partially hedged and aim at […]
The oil industry in North America has grown dramatically in the last decade. The rapid expansion of fracking technology has opened previously non-viable oil reserves, and discoveries of recoverable shale oil in Texas and the Dakotas have made the US into the world’s largest oil producer six years running. In fact, this past September, the US exported more crude oil than in imported – the first time that has happened since records began in 1949.The boom has not been without growing pains. Expansion of supplies on the market have pushed prices down, negatively impacting oil companies’ incomes and stock prices in recent months. Data for the first week of December showed a surprise build of 800,000 barrels in US stockpiles, a sharp reversal from the expected 2.8-million-barrel reduction. The news put further downward pressure on oil prices.But oil isn’t just a commodity, it’s a necessity in today’s world. According to Norwegian energy consulting firm Rystad, “North American shale supply will continue growing even in an environment with lower oil prices.” The firm sees shale production’s robust growth continuing into 2022.So, the main variable for oil prices heading into next year and beyond is likely to be demand. Oil producers and midstream suppliers will continue to see a profitable environment despite the headwinds as long as economic conditions remain firm. And given last week’s jobs report from the US, that looks to be a sound prediction for the near-term – making the energy sector attractive for investors.To help that along, we’ve used the TipRanks Stock Screener tool to pick out three energy sector players that fit a bullish investment profile. These are Strong Buy stocks with upside potentials exceeding 30%, and the recent price pressure in the oil markets has pushed share prices down, making them bargains to boot.WPX Energy (WPX)WPX is typical of the small- to medium-cap extraction companies that are hard at work exploiting the resources of Texas and North Dakota. WPX operates in the Bakken Formation, one of the early oil patches to benefit from the fracking revolution, but most of the company’s operations are centered in the Delaware Basin of West Texas, a component of the larger Permian Basin that holds the largest recoverable reserves in North America.Recoverable reserves are a key metric in the oil industry, defining the potential resources a company can tap for production and profit. WPX, in its two areas of operation, as more than 480 million barrels of oil equivalent in proved reserves, of which 61% is crude oil and the rest is split between natural gas and natural gas liquids. WPX operates over 700 wells on its land holdings.Strong reserves and strong production have made WPX profitable. The company brought in $2.3 billion in total revenues in calendar year 2018, with a net income exceeding $150 million. Turning to more recent financial results, WPX showed a Q3 EPS of 9 cents per share, missing the 7-cent forecast but beating the year-ago quarter’s 7 cents. Revenues were even better. The $795 million for the quarter beat the forecast by 25%, and beat the year-ago result by an even more impressive 64%.Wall Street is understandably sanguine about WPX shares looking forward. Neal Dingmann, from SunTrust Robinson, writes of the stock, “Given the company’s position as one of the strong operators in both the Williston and Delaware, in our opinion, we believe the company could look to act as a consolidator while noting we don’t see the need to make any large acquisitions in the next 6-12 months.”Dingmann backs up his Buy rating with a $16 price target, implying room for 47% growth on the upside. (To watch Dingmann’s track record, click here)The consensus view on WPX is a unanimous Strong Buy – 9 analysts have given this stock a Buy in recent months. The stock’s low price offers investors a chance to ‘buy the dip’ on a high-upside opportunity. Shares are priced at $10.89, and the average price target of $15.11 indicates potential for nearly 40% growth. (See WPX stock analysis on TipRanks)Liberty Oilfield Services (LBRT)Exploration, and proving reserves, is only part of the game in the oil business. Owning a barrel’s worth of oil is no use if it can’t be brought to the surface and shipped to market. This is where the oilfield service companies step in. Production companies own wells and drilling machinery and technology; the services companies provide the specialized equipment, tech, and know-how to conduct fracking operations and activate the wells.Liberty occupies this niche. The company supplies the water, sand, chemicals, piping equipment, and engineering knowledge to conduct and maintain fracking operations. It’s a difficult sector in which to operate. Overhead is high, while income can vary based on the price oil, and LBRT has seen both top-line revenues and bottom-line EPS decline year-over-year. In the recent Q3 report, the company showed revenues of $515 million, 1.3% below the forecast, and EPS of 15 cents, 44% below expectations.The poor quarterly results, released at the end of October, hurt share prices, temporarily pushing the stock down by 11%. Share price has since recovered, and surpassed the pre-report values. On a high note, from an investor’s perspective, the current EPS is more enough to sustain the company’s quarterly dividend payout of 5 cents per share. Annualized, this gives LBRT a dividend yield of 2.1%, higher than the average yield among S&P listed companies.Analyzing the company for JPMorgan, analyst Sean Meakim sets out a bullish case: “The company’s differentiated focus on technology, data analytics, and talent has allowed it to deliver peer-leading profitability and return metrics through the cycle… Liberty’s strong customer relationships should help the company maintain margins above the peer group.”Meakim gives LBRT a Buy rating with a $12 price target, indicating confidence in an 18% upside. (To watch Meakim’s track record, click here)With 6 Buy and 1 Hold ratings given in the past 3 months, LBRT stock gets a Strong Buy from the analyst consensus. The stock’s recent headwinds have pushed the share price down to an affordable $10.62, offering a low point of entry for investors. The average price target of $14.07 suggests an upside potential of 33%. (See Liberty stock analysis on TipRanks)Cheniere Energy (LNG)Petroleum isn’t the only product that comes out of oil wells. Oil patches product natural gas and related products in large quantities, sometimes even exceeding the percentage of oil extracted. The flood of natural gas into the markets has driven a revolution in clean energy, as gas burns cleaner than oil. Increased use of natural gas has helped the US to greatly reduce carbon emissions in recent years.Cheniere Energy, based in Texas, is a leading producer of liquefied natural gas (LNG). Liquified gas is less volatile and more easily transported than the gaseous product, and is the chief form in which gas is conveyed to market. Cheniere buys gas from producers, liquifies the product, and loads it onto ocean-going vessels. The company also owns rail cars and pipelines for overland transport within the US. Cheniere has been exporting LNG from the US since 2016, when it became the first company to do so.Falling prices, the flip side of high production, have pushed the company into net loss in the last two quarters. In Q3, the company showed an EPS net loss of $1.25, a severe blow when compared to the expected 8-cent per share profit. Revenues, however, were up, at $2.17 billion beating the estimate by 2.4% and gaining 19% year-over-year.LNG has a great deal of potential, however, even in a low-price regime. Wolfe analyst Steve Fleishman says of the stock, “We believe that upsides are underappreciated by the market including at least one more train and a reversion to wider global gas spreads. We also expect new management to boost visibility and focus on operations and capital efficiency.” Fleisman puts an Outperform rating and $80 price target on LNG, indicating his confidence and a 36% upside. (To watch Fleishman’s track record, click here)5-star analyst Elvira Scotto, of RBC Capital, agrees that LNG is a Buy proposition. She wrote, in a note last month, “We believe LNG can generate highly visible cash flow growth and return significant cash to shareholders via buybacks and dividends longer-term.” In line with her Buy rating, Scotto sets an $84 target on the stock, suggesting a 38% upside potential. (To watch Scotto’s track record, click here)All in all, this natural gas has earned one of the best analyst consensus ratings on the Street. Out of 10 analysts tracked in the last 3 months, 9 are bullish on LNG’s prospects, with just 1 on the sidelines, highlighting a strong bullish backing here. With a healthy return potential of 31%, the stock’s consensus target price stands at $79.80.Check out these 5 ‘Strong Buy’ stocks that top Wall Street analysts recommend.
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Editor's note: Chris Wright is the recipient of the inaugural Denver Business Journal Who's Who in Energy Trailblazer Award, which coincides with the annual Who’s Who in Energy list and is meant to honor a person who has made noteworthy contributions to the energy industry. Wright will be speaking at the Who's Who in Energy reception on Dec. 5 at The Brown Palace. If you pay attention to Colorado’s oil and gas industry, it’s hard to miss Chris Wright.
Kevin Fisher’s career spans several oil and gas companies, including some that changed the field. The Oklahoma native rose up through field engineering for oilfield services giant Halliburton before shifting in 2000 to companies making big advances in hydraulic fracturing methods and associated technologies. Today, he is CEO of Denver-based PropX, a 3-year-old business that changed how sand for fracking is delivered.
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Liberty Oilfield Services (LBRT) delivered earnings and revenue surprises of -44.44% and -1.33%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?
Liberty Oilfield Services Inc. announced today third quarter 2019 financial and operational results.
Is Liberty Oilfield Services Inc. (NYSE:LBRT) a good investment right now? We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, expert networks, and get tips from investment bankers and industry insiders. Sure they sometimes fail miserably, but their consensus stock […]
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U.S. Sen. Cory Gardner said Thursday that he has no interest in raising the federal minimum wage, instituting a mandatory paid-family-leave system for employers nationwide or launching a public-option health plan to compete with existing private insurance plans — coming down on the side of employers who questioned the need for such government intervention on both federal and state issues. Gardner, the first-term Republican who is one of the Democrats’ top national targets in 2020 as they look to wrest back control of the U.S. Senate, spoke at a Colorado Chamber of Commerce event alongside a panel of three business leaders who were asked to lay out the biggest threats they see to the health of their industries in coming years.
Running an oil and gas company is a well-paying gig, no matter how you look at it. The industry is famed for making company leaders rich, especially in boom times. The CEOs of oil and natural gas businesses based in Denver receive annual compensation worth millions of dollars, ranking them among the top-paid executives in the city.
Liberty Oilfield Services Inc. announced today that it will release its financial results for the third quarter 2019 on Tuesday, October 29, 2019 after the market closes.
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