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Liberty Energy (LBRT) Q1 Earnings and Revenues Miss Estimates
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Liberty Energy Inc. (LBRT - Free Report) reported first-quarter 2024 earnings of 48 cents per share, which missed the Zacks Consensus Estimate of 54 cents. The bottom line also underperformed the year-ago quarter’s reported figure of 90 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 0.9%. The top line was also lower than the prior-year quarter’s level of $1.26 billion by 15.08%.
The Denver-CO-based oil and gas equipment company’s adjusted EBITDA was $244.8 million compared with $329.9 million in the year-ago quarter. However, the figure missed our projection of $249.8 million.
Ahead of the earnings release, Liberty Energy’s board of directors announced a cash dividend of 7 cents per common share, payable on Jun 20, 2024, to stockholders of record as of Jun 6, 2024. As part of its shareholder return policy, LBRT repurchased shares worth $30 million at an average price of $20.36 per share during the reported quarter.
Liberty Energy Inc. Price, Consensus and EPS Surprise
LBRT reported total costs and expenses of $957.7 million in the first quarter, down 7.65% from the year-ago quarter’s level. The figure was also higher than our projection of $950.4 million.
Balance Sheet & Capital Expenditure
As of Mar 31, Liberty Energy had approximately $23.8 million in cash and cash equivalents. The pressure pumper’s long-term debt of $160 million represented a debt-to-capitalization of 8.1%. Further, the company’s liquidity — cash balance plus revolving credit facility — amounted to $315 million.
In the reported quarter, LBRT spent $142 million on its capital program, higher than our projection of $135.6 million.
Guidance
Liberty anticipates continued strong demand in the frac industry. LBRT expects low double-digit sequential revenue growth in the second quarter due to stable pricing and increased efficiency, as well as a corresponding improvement in profitability. Furthermore, LBRT expects robust cash flow generation throughout 2024.
Murphy USA is valued at approximately $8.69 billion. In the past year, the company’s shares have surged 56.5%.
MUSA markets retail motor fuel products and convenience merchandise, operating retail stores under the brands Murphy USA, Murphy Express and QuickChek.
Archrock is valued at $3.03 billion. The company currently pays a dividend of 66 cents per share, or 3.40%, on an annual basis.
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Sunoco is valued at $5.16 billion. It is a major wholesale motor fuel distributor in the United States, distributing over 10 fuel brands through long-term contracts with more than 10,000 convenience stores, thereby ensuring consistent cash flow.
SUN’s extensive distribution network across 40 states provides a robust and reliable source of income, and the Brownsville terminal expansion should add to its revenue diversification.
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Liberty Energy (LBRT) Q1 Earnings and Revenues Miss Estimates
Liberty Energy Inc. (LBRT - Free Report) reported first-quarter 2024 earnings of 48 cents per share, which missed the Zacks Consensus Estimate of 54 cents. The bottom line also underperformed the year-ago quarter’s reported figure of 90 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 0.9%. The top line was also lower than the prior-year quarter’s level of $1.26 billion by 15.08%.
The Denver-CO-based oil and gas equipment company’s adjusted EBITDA was $244.8 million compared with $329.9 million in the year-ago quarter. However, the figure missed our projection of $249.8 million.
Ahead of the earnings release, Liberty Energy’s board of directors announced a cash dividend of 7 cents per common share, payable on Jun 20, 2024, to stockholders of record as of Jun 6, 2024. As part of its shareholder return policy, LBRT repurchased shares worth $30 million at an average price of $20.36 per share during the reported quarter.
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 $957.7 million in the first quarter, down 7.65% from the year-ago quarter’s level. The figure was also higher than our projection of $950.4 million.
Balance Sheet & Capital Expenditure
As of Mar 31, Liberty Energy had approximately $23.8 million in cash and cash equivalents. The pressure pumper’s long-term debt of $160 million represented a debt-to-capitalization of 8.1%. Further, the company’s liquidity — cash balance plus revolving credit facility — amounted to $315 million.
In the reported quarter, LBRT spent $142 million on its capital program, higher than our projection of $135.6 million.
Guidance
Liberty anticipates continued strong demand in the frac industry. LBRT expects low double-digit sequential revenue growth in the second quarter due to stable pricing and increased efficiency, as well as a corresponding improvement in profitability. Furthermore, LBRT expects robust cash flow generation throughout 2024.
Zacks Rank and Key Picks
Currently, LBRT carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like Murphy USA Inc. (MUSA - Free Report) and Archrock, Inc. (AROC - Free Report) , each sporting a Zacks #1 Rank (Strong Buy), and Sunoco LP (SUN - Free Report) , carrying a Zacks #2 Rank (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Murphy USA is valued at approximately $8.69 billion. In the past year, the company’s shares have surged 56.5%.
MUSA markets retail motor fuel products and convenience merchandise, operating retail stores under the brands Murphy USA, Murphy Express and QuickChek.
Archrock is valued at $3.03 billion. The company currently pays a dividend of 66 cents per share, or 3.40%, on an annual basis.
AROC, together with its subsidiaries, works as an energy infrastructure company in the United States. The company operates under two segments — Contract Operations and Aftermarket Services.
Sunoco is valued at $5.16 billion. It is a major wholesale motor fuel distributor in the United States, distributing over 10 fuel brands through long-term contracts with more than 10,000 convenience stores, thereby ensuring consistent cash flow.
SUN’s extensive distribution network across 40 states provides a robust and reliable source of income, and the Brownsville terminal expansion should add to its revenue diversification.