Electric frac spread deployment and other initiatives: In Q1, LBRT deployed its first digiFleet comprising digiFrac electric pumps. The company aims to cater to mobile power generation and fuel supply through its innovative supply solutions. With this objective, it has launched Liberty Power Innovations and acquired Siren, which helped expand its vertical integration strategy. Read more about this in our recent article here.
Steady fundamentals metrics: Quarter-over-quarter, LBRT’s revenues increased by 3% in Q1, while its adjusted EBITDA recorded a 12% jump. The company’s debt-to-equity remained low at 0.13x as of March 31.
LBRT’s key challenges and opportunities: The frac market remains tight. However, due to the low demand for natural gas, the natural gas price bottomed out over the past few months. The economic activity slowdown in the US has not helped, either. Despite that, LBRT’s management expects “stable pricing and normal seasonality” in Q2. The launch of LPI and other capital market activities will strengthen its position in the long term, given the secular demand shift towards natural gas and compressed natural gas (or CNG). You may read more about the company in our previous article here.
Thanks for reading the LBRT take three, designed to give you three critical takeaways from LBRT’s earnings report. Soon we will present a second update on SLB earnings highlighting its current strategy, news, and notes we extracted from our deeper dive.
