2024-07-19 08:00:00 ET
Summary
- Liberty Energy is FCF positive after dividends, share repurchases, and CAPEX spending.
- The company is gaining market share as a result of being a top-tier service provider.
- Longer term, natural gas drilling demand and refrac opportunities should improve the company’s earning potential through higher service fees.
- LBRT has an EV to EBITDA ratio of 3.5x with only $144 million in debt versus a market cap of $3.7 billion.
Thesis
Today, I am initiating coverage on Liberty Energy ( LBRT ) post Q2 earnings. The company reported solid gains over Q1, with earnings per share up to $0.64/share, compared to $0.48/share in the previous quarter.
In Q2, Liberty did a lot of things investors wanted.
- Investing in its business through self-funded free cash flow.
- Paid a dividend.
- Repurchased shares.
- Built up cash and repaid debt.
Read the full article on Seeking Alpha
For further details see:
Liberty Energy: Drilling Activity Is Approaching A Bottom, Time To Get Fracking