Liberty Energy 1Q Earnings Preview And Key Takeaways From Meeting Management Team

Liberty Energy Inc LBRT has been in focus amid US President Donald Trump's oil production push.

A meeting with the company's CEO Ron Gusek and CFO Michael Stock highlighted management's conviction in building the mobile power generation business "leveraging its partnerships and core competencies from its pressure pumping business," according to JPMorgan.

The Liberty Energy Analyst: Analyst Arun Jayaram reaffirmed a Neutral rating and price target of $18.

The Liberty Energy Thesis: The company expects to take delivery of 150MW of power generation capacity by the end of 2025 and 250MW by the end of 2026, Jayaram said in a note.

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"Management remains optimistic about the US shale industry's long-term prospects, especially when considering rising demand from AI and data centers," he wrote.

The analyst stated that Pricing pressures will likely continue to impact Liberty Energy's margins in the first quarter. He lowered the EBITDA estimate from $167 million to $160 million, which is still higher than the Street’s expectations of $155 million.

"On a full-year basis, we expect overall EBITDA per fleet to decline to $19.5mm from $24.6mm in 2024 given frac pricing pressures," Jayaram said. He added that EBITDA margins are likely to contract by 390 basis points to 17.5%.

LBRT Price Action: Shares of Liberty Energy had risen by 0.13% to $15.82 at the time of publication on Monday.

Read More:  Liberty Energy Earns Bullish Call From Morgan Stanley As Data Center Demand, PGS Upside Gain Traction

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