Liberty Oilfield Services (LBRT) Misses Q3 EPS by 12c

Liberty Oilfield Services (NYSE: LBRT) reported Q3 EPS of $0.15, $0.12 worse than the analyst estimate of $0.27. Revenue for the quarter came in at $515 million versus the consensus estimate of $515.25 million.

Summary Results and Highlights

Revenue of $515 million and net income1 of $19 million, or $0.15 fully diluted earnings per share, for the quarter ended September 30, 2019
Adjusted EBITDA2 of $70 million and annualized Adjusted EBITDA per average active fleet of $12.1 million for the quarter ended September 30, 2019
Revenue of $1.6 billion and net income1 of $93 million, or $0.71 fully diluted earnings per share, for the nine months ended September 30, 2019
Adjusted EBITDA2 of $247 million and annualized Adjusted EBITDA per average active fleet of $14.5 million for the nine months ended September 30, 2019

“We’re happy to have delivered another solid quarter of operational results in the face of macro headwinds that started to impact Liberty’s market mid-way through the quarter. The fully diluted earnings per share in the third quarter was $0.15, compared to the second quarter of 2019 of $0.32. Revenue in the quarter decreased 5% to $515 million and Adjusted EBITDA2 decreased 24% to $70 million, each as compared to the second quarter of 2019. Strong free cash flow generation for the quarter drove a $107 million increase in cash on hand to $140 million. We ended the quarter with available liquidity of $344 million and a net cash position of $34 million. We were able to deliver this financial performance despite a slowdown in the completions market and an oversupply in the frac market, both of which resulted in downward pricing pressure. Continued executional excellence of our operations and supply chain teams, plus close coordination with our customers on scheduling enables Liberty to navigate the challenging marketplace while maintaining our ability to drive returns on capital.

“With our focus on long-term success, we continue our commitment to achieve superior returns on invested capital, maintain a strong balance sheet and invest for the future. For the twelve months ended September 30, 2019 we achieved Pre-Tax Return on Capital Employed (“ROCE”)3 of 17%, generated significant free cash flow and returned approximately $75 million to stockholders. As always, the Liberty team continues to focus on driving technology innovations and high efficiency operations which are a win for Liberty and a win for our customers,” commented Chris Wright, Chief Executive Officer.

For earnings history and earnings-related data on Liberty Oilfield Services (LBRT) click here.

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