lbrt-20240331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File No. 001-38081

Liberty Energy Inc.

(Exact Name of Registrant as Specified in its Charter)

Delaware

81-4891595

(State or Other Jurisdiction of
Incorporation or Organization)

(I.R.S. Employer
Identification No.)

950 17th Street, Suite 2400

Denver, Colorado

80202

(Address of Principal Executive Offices)

(Zip Code)

(303) 515-2800

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to section 12(b) of the Act:

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Class A Common Stock, par value $0.01

LBRT

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer ☒			Accelerated filer ☐			Non-accelerated filer ☐			Smaller reporting company ☐

Emerging growth company ☐ (Do not check if a smaller reporting company)

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): ☐ Yes ☒ No

As of April 15, 2024, the Registrant had 166,651,693 shares of Class A Common Stock and 0 shares of Class B Common Stock outstanding.

Our Class A Common Stock is traded on the New York Stock Exchange under the symbol “LBRT.” There is no public market for our Class B Common Stock.


		Page No.
PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	1
	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Statements of Operations	2
	Condensed Consolidated Statements of Comprehensive Income	3
	Condensed Consolidated Statements of Changes in Equity	4
	Condensed Consolidated Statements of Cash Flows	5
	Notes to Condensed Consolidated Financial Statements	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosure about Market Risk	26
Item 4.	Controls and Procedures	26

PART II	OTHER INFORMATION	27
Item 1.	Legal Proceedings	27
Item 1A.	Risk Factors	27
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	27
Item 3.	Defaults Upon Senior Securities	27
Item 4.	Mine Safety Disclosures	27
Item 5.	Other Information	27
Item 6.	Exhibits	28
SIGNATURES		29


	March 31, 2024		December 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	23,788	$	36,784
Accounts receivable, net of allowances for credit losses of $939 and $939, respectively	429,819		381,185
Accounts receivable—related party	—		17,345
Unbilled revenue (including amounts from related parties of $51 and $13,379, respectively)	219,389		188,940
Inventories	210,060		205,865
Prepaid and other current assets	94,952		124,135
Total current assets	978,008		954,254
Property and equipment, net	1,694,232		1,645,368
Finance lease right-of-use assets	195,955		182,319
Operating lease right-of-use assets	88,485		92,640
Other assets (including amounts from related parties of $0 and $14,785, respectively)	140,939		158,976

Total assets	$	3,097,619	$	3,033,557
Liabilities and Equity
Current liabilities:
Accounts payable	$	315,998	$	293,733
Accrued liabilities	234,895		261,066
Income taxes payable	—		12,060
Current portion of payable pursuant to tax receivable agreements	37,444		5,170

Current portion of finance lease liabilities	46,146		39,867
Current portion of operating lease liabilities	27,882		27,528
Total current liabilities	662,365		639,424
Long-term debt	166,000		140,000
Deferred tax liability	102,340		102,340
Payable pursuant to tax receivable agreements	75,027		112,471
Noncurrent portion of finance lease liabilities	147,578		133,654
Noncurrent portion of operating lease liabilities	59,825		64,260
Total liabilities	1,213,135		1,192,149
Commitments & contingencies (Note 14)
Stockholders’ equity:
Preferred Stock, $0.01 par value, 10,000 shares authorized and none issued and outstanding	—		—
Common Stock:
Class A, $0.01 par value, 400,000,000 shares authorized and 165,201,928 issued and outstanding as of March 31, 2024 and 166,610,199 issued and outstanding as of December 31, 2023	1,652		1,666
Class B, $0.01 par value, 400,000,000 shares authorized and none issued and outstanding	—		—
Additional paid in capital	1,070,383		1,093,498
Retained earnings	822,256		752,328
Accumulated other comprehensive loss	(9,807)		(6,084)
Total stockholders’ equity	1,884,484		1,841,408


Total liabilities and equity	$	3,097,619	$	3,033,557


	Three Months Ended March 31,
	2024		2023
Revenue:
Revenue	$	1,050,558	$	1,232,320
Revenue—related parties	22,567		29,757
Total revenue	1,073,125		1,262,077
Operating costs and expenses:
Cost of services (exclusive of depreciation, depletion, and amortization shown separately below)	782,680		888,416
General and administrative	52,986		53,036
Transaction, severance, and other costs	—		617
Depreciation, depletion, and amortization	123,186		94,401
(Gain) loss on disposal of assets	(1,160)		487
Total operating costs and expenses	957,692		1,036,957
Operating income	115,433		225,120
Other expense:



Interest income—related party	(478)		(373)
Interest expense, net	7,541		8,264
Total other expense, net	7,063		7,891
Net income before income taxes	108,370		217,229
Income tax expense	26,478		54,483
Net income	81,892		162,746

Less: Net income attributable to non-controlling interests	—		91
Net income attributable to Liberty Energy Inc. stockholders	$	81,892	$	162,655

Net income attributable to Liberty Energy Inc. stockholders per common share:
Basic	$	0.49	$	0.92
Diluted	$	0.48	$	0.90
Weighted average common shares outstanding:
Basic	166,325		176,569
Diluted	171,441		181,088


	Shares of Class A Common Stock	Shares of Class B Common Stock	Class A Common Stock, Par Value		Class B Common Stock, Par Value		Additional Paid in Capital		Retained Earnings		Accumulated Other Comprehensive (Loss)		Total Stockholders’ Equity
Balance—December 31, 2023	166,610	—	$	1,666	$	—	$	1,093,498	$	752,328	$	(6,084)	$	1,841,408





$0.07/share of Class A Common Stock dividend	—	—	—		—		—		(11,964)		—		(11,964)

Share repurchases	(1,480)	—	(15)		—		(30,152)		—		—		(30,167)
Excise tax on share repurchases	—	—	—		—		(289)		—		—		(289)
Stock-based compensation expense	—	—	—		—		7,327		—		—		7,327
Vesting of restricted stock units	72	—	1		—		(1)		—		—		—

Currency translation adjustment	—	—	—		—		—		—		(3,723)		(3,723)
Net income	—	—	—		—		—		81,892		—		81,892
Balance—March 31, 2024	165,202	—	$	1,652	$	—	$	1,070,383	$	822,256	$	(9,807)	$	1,884,484


	March 31,		December 31,
($ in thousands)	2024		2023
Proppants	$	14,271	$	17,124
Chemicals	16,840		16,896
Maintenance parts and other	178,949		171,845
	$	210,060	$	205,865


	Estimated useful lives (in years)	March 31,		December 31,
($ in thousands)		2024		2023
Land	N/A	$	28,784	$	29,384
Field services equipment	2-10	2,644,577		2,520,336
Vehicles	4-7	66,340		63,423
Lease equipment	10	141,932		138,781
Buildings and facilities	5-30	149,992		149,876
Mineral reserves	>25	76,823		76,823
Office equipment and furniture	2-7	12,093		11,836
		3,120,541		2,990,459
Less accumulated depreciation and depletion		(1,610,349)		(1,501,685)
		1,510,192		1,488,774
Construction in-progress	N/A	184,040		156,594
Property and equipment, net		$	1,694,232	$	1,645,368


	March 31, 2024		December 31, 2023
Weighted-average remaining lease term:
Operating leases	4.2 years		4.3 years
Finance leases	3.3 years		3.3 years
Weighted-average discount rate:
Operating leases	6.1	%	6.0	%
Finance leases	7.9	%	8.0	%


($ in thousands)	Finance		Operating
Remainder of 2024	$	43,633	$	24,083
2025	58,721		30,609
2026	60,803		19,423
2027	31,915		9,538
2028	23,539		2,574
Thereafter	7,021		12,569
Total lease payments	225,632		98,796
Less imputed interest	31,908		11,089
Total	$	193,724	$	87,707


($ in thousands)
Remainder of 2024	$	6,353
2025	5,412
2026	2,239
2027	—
2028	—
Thereafter	—
Total	$	14,004