Fracking Fracking Drill Rig on the Prairie at Dusk

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Liberty Energy (NYSE:LBRT) +8.9% post-market after easily beating Q2 earnings expectations and issuing strong guidance for Q3.

Q2 net income swung to a $105M from a $5M net loss in Q1 and a $51M net loss in the year-ago quarter, while adjusted EBITDA more doubled Q/Q and surged more than 5x Y/Y to $196M and revenues surged 19% Q/Q and 62% Y/Y to $943M.

For Q3, Liberty (LBRT) forecasts revenues will rise ~10% Q/Q, which should equate to ~$1.04B, well ahead of $942M analyst consensus estimate, driven primarily by fleet reactivations and modest net pricing increases, while Q3 margins should improve “from the contribution of incremental fleets and modest price improvements.”

“A strong frac market and specific conversations with our customers gives us confidence in the demand for Liberty services into the coming year,” CEO Chris Wright said.

The tight frac market is restricting supply, Liberty (LBRT) said, adding, “equipment, supply chain and labor constraints limit frac fleet availability and service quality available to our customers.”

Liberty Energy’s (LBRT) stock price return shows a 20% YTD gain and a 9% increase during the past year.

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