Release Date: April 18, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you discuss the current market dynamics and how they are impacting pricing strategies?
A: (Christopher Wright - CEO) The industry conditions peaked about six quarters ago, and since then, there has been a gentle decline in fleet count, leading to modest pricing pressure. However, the decline has been gradual, and pricing pressures have been modest. The focus remains on quality, technology, and service rather than just price.
Q: What are the expectations for natural gas activity and prices in the near future?
A: (Christopher Wright - CEO) Customers are cautious and need to see that prices have stabilized and that there is a sustained demand increase before significantly increasing gas activity. This might not happen until the end of this year or next year.
Q: How do you see the EBITDA growth relative to revenue growth in the upcoming quarter?
A: (Christopher Wright - CEO) The expectation is for low double-digit growth in both revenue and EBITDA. The mix change, as customers move back to sourcing some consumables, affects the margins slightly, but service pricing remains relatively flat.
Q: With the industry shift towards gas-fired fleets, how does Liberty Energy plan to maintain its competitive edge?
A: (Christopher Wright - CEO) The focus is not solely on the type of fuel used by fleets but on overall service quality, which involves skilled operations and comprehensive service solutions. This broader focus helps maintain a competitive edge regardless of the underlying technology.
Q: Can you provide an update on the deployment and performance of the digital fleets, particularly the new DG Prime technology?
A: (Christopher Wright - CEO) The DG Prime technology is performing well, offering high thermal efficiency and reduced gas consumption. The deployment of new fleets is on track, with specific customers already aligned for upcoming deployments.
Q: What are the growth prospects and current status of the Liberty Power Innovations (LPI) and its impact outside the oil and gas sector?
A: (Christopher Wright - CEO) LPI is currently a small part of the business focused on powering digital fleets and dual-fuel fleets. However, it has significant growth potential in providing reliable, natural gas-generated electricity, not just in oil fields but also potentially to industrial customers and data centers in the future.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
