Liberty Energy Earnings: Subdued North American Completions Weigh on Second-Quarter Results

Liberty Energy posted a slightly weaker-than-expected second quarter owing to prolonged softness across the North American market. Revenue fell just shy of $1.2 billion, a 5% decline compared with last quarter, and reflects lower drilling and completions activity in response to lower oil and gas prices. We expect this dynamic will carry into the second half of the year given the recent decline in the number of rigs (down about 85 rigs versus July 2022, according to Baker Hughes), typically a leading indicator of frac spread demand in subsequent quarters. We’ll incorporate the firm’s full operating and financial results shortly, but after this first look, we maintain our $17 fair value estimate and no-moat rating.