Shares of relatively small energy services provider Liberty Oilfield Services (NYSE: LBRT) took off like a lightning bolt at the start of trading on Sept. 1, rising 42% out of the gate. Although the stock started to cool off by 11:30 a.m. EDT, the shares were still up by a massive 33% or so. The big news was a deal with energy industry giant Schlumberger (NYSE: SLB).
The economic shutdowns used to slow the spread of COVID-19 resulted in a steep drop in demand for energy, with oil prices actually falling below zero at one point earlier in the year. Faced with painfully low commodity prices and a lingering supply overhang, oil and natural gas drillers have pulled back sharply on the capital investment front. That's been a particularly notable theme in the U.S. onshore space, which is the market that Liberty Oilfield serves. It has not been an easy slog, with revenue down nearly 50% year over year through the first six months of 2020. Earnings fell from a profit of $0.59 in the first half of 2019 to a loss of $0.53 in 2020.
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