Liberty Oilfield Services (NYSE: LBRT) reported Q1 EPS of $0.48, $0.06 worse than the analyst estimate of $0.54. Revenue for the quarter came in at $1.1 billion versus the consensus estimate of $1.08 billion.

Outlook:

Frac industry dynamics remain constructive, as relatively steady demand in recent months has focused service companies on disciplined pricing and quality of service. Superior performance and reliability drive higher returns for both E&P operators and service companies alike. Liberty’s continual focus on technical innovation in equipment technology and software automation augments our industry leading service offerings while lowering the total delivered cost to the customer, reinforcing our position as the supplier of choice.

Global oil and gas commodity prices have diverged and moved materially in recent months. Yet these changes have not materially impacted demand for North American frac services. Oil prices have rallied since early in the year, owing to an improved global economic outlook, ongoing OPEC+ voluntary production cuts, and rising geopolitical tensions. Natural gas prices have conversely declined considerably since last fall, primarily owing to strong production and mild winter weather driving high natural gas inventories. Natural gas prices are likely to strengthen in the future with increasing LNG exports and surging domestic power demand in the years ahead. Global energy demand continues to march higher, supporting a strong North American oil and gas industry in future years.

“Our focus is profitable growth through disciplined investment in talent, technology, and equipment that leads the industry in efficiency and emissions. We are confident that our strategic investment in digiFleets and power and fuel supply through LPI better positions us to deliver superior returns over cycles. We are also excited by our latest partnerships in the Australian Beetaloo shale gas basin, which exemplify our continued efforts toward growing reliable energy sources worldwide,” commented Mr. Wright.

“In the second quarter, we expect low double-digit sequential growth in revenue on stable pricing and increased efficiency and corresponding improvement in profitability. We continue to expect strong cash flow generation in 2024, supporting our technology transition investments and industry-leading return of capital program,” continued Mr. Wright.

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