Liberty Energy Inc. Announces Fourth Quarter and Full Year 2024 Financial and Operational Results

DENVER--(BUSINESS WIRE)--Liberty Energy Inc. (NYSE: LBRT; “Liberty” or the “Company”) announced today full year and fourth quarter 2024 financial and operational results. Summary Results and Highlights Revenue of $4.3 billion for the year ended December 31, 2024 Net income of $316 million, or $1.87 fully diluted earnings per share (“EPS”), for the year ended December 31, 2024 Adjusted EBITDA1 of $922 million for the year ended December 31, 2024 Achieved 17% Adjusted Pre-Tax Return on Capital Employed (“ROCE”)2 and 21% Cash Return on Invested Capital (“CROCI”)3 for the year ended December 31, 2024 Distributed $175 million to shareholders in 2024 with the repurchase of 3.8% of shares and quarterly cash dividends Fourth quarter 2024 revenue of $944 million and net income of $52 million, or $0.31 fully diluted earnings per share Fourth quarter 2024 Adjusted EBITDA1 of $156 million Repurchased and retired 1.0% of shares outstanding during the fourth quarter, and a cumulative 15.1% of shares outstanding since reinstating the repurchase program in July 2022 Raised quarterly cash dividend by 14% to $0.08 per share beginning in the fourth quarter of 2024 Accelerated digiTechnologiesSM commercial deployments with the innovative digiPrime technology offering, making a revolutionary step forward in frac technology optimizing efficiency and emissions Achieved a record 7,143 pumping hours on a single fleet in the year, averaging nearly 600 hours a month Expanded Liberty Power Innovations’ (“LPI”) natural gas compression, fueling, and delivery services infrastructure to optimal scale Announced LPI collaboration with DC Grid to provide advanced power solutions for commercial fleet electric vehicle hubs and data centers “Liberty delivered strong leadership in technological innovation and executional excellence in 2024. Solid financial performance and several operational records were achieved, even as industry activity softened through the year. Full year ROCE2 was 17%, and a CROCI3 of 21% exceeded the 13-year S&P average,” commented Ron Gusek, incoming chief executive officer. “We executed on our fleet transition initiatives, cost optimization efforts using AI-enhanced digital systems, and expansion of our natural gas fueling and delivery capacity to optimal scale.” “Entering 2025, we have two key strategic priorities: a continued focus on technology innovation in completions services and significant expansion of our burgeoning power generation services business. As the preeminent completions service provider, the innovation cycle in software, equipment, and design is driving long-term margin enhancement, improvement in capital efficiency, and lower emissions. This year, our pace of next generation equipment deployment will moderate to four to five digiFleets, alongside the retirement of legacy conventional equipment,” continued Mr. Gusek. “As we look ahead, the rising demand for electrons from the proliferation of data centers, onshoring of manufacturing activity, expansion in mining operations, and industrial electrification provides a supportive backdrop to expand our power generation business outside the oilfield. We are uniquely positioned to rapidly deploy distributed modular power solutions with low emission, scalable power infrastructure tailored to meet project demands,” continued Mr. Gusek. “We have already successfully deployed 130 MW primarily for completion services applications. By the end of 2026, we expect to take delivery of an incremental 400 MW of power generation for commercial, merchant, and industrial applications, with deployments commencing later this year.” “We are relentlessly focused on long-term value creation, balancing compelling growth opportunities with return of capital to shareholders. Since July 2022, we have distributed $550 million to shareholders through the retirement of 15% of shares outstanding and quarterly cash dividends,” commented Mr. Gusek. “We have built strong partnerships and investments across the energy corridor, in geothermal, nuclear, battery, power generation technologies, and the Australian Beetaloo basin assets. Today, we have an undeniable opportunity to leverage our knowledge and expertise in energy systems to meet incremental power demand with an advantaged platform.” Outlook Frac markets reached a trough at the end of 2024 after progressive quarterly declines in industry activity since early 2023. Early signs of an inflection in completions activity have now emerged from 2024 lows. Oil producers, which comprise the vast majority of frac activity, are working to simply maintain production and returning to anticipated activity levels after the year end slowdown. Improving natural gas fundamentals are encouraging. For the full year, industry-wide lateral footage completed is expected to be approximately flat with 2024. The slowing pace of activity in late 2024 resulted in near term price pressure to start 2025, most notably impacting conventional fleets. The fundamental outlook for next generation, higher quality fleets remains strong, as operators continue to demand technologies that provide significant emissions reductions, fuel savings, and operational efficiency advantages. The growing complexities of E&P demands and the continued drive for efficiency gains necessitate continued investment in technology and partnerships with high quality service companies. Liberty is well positioned to meet this demand. Fleet idling, attrition, and cannibalization of aging equipment likely accelerate in the next two years as a large swath of equipment reaches end of life. Concurrently, fleet sizes continue to expand to meet increased horsepower requirements for higher intensity fracs. These two dynamics imply the supply and demand balance in horsepower is tighter than industry frac fleet counts infer. An improvement in frac activity through the year could support better pricing dynamics. Global oil markets reflect ongoing uncertainties in geopolitics, Chinese economic growth, OPEC+ production plans, and a change in the domestic political climate, but the resulting commodity price fluctuation has not led to a meaningful change in E&P activity plans. Natural gas demand is supported by LNG export capacity expansion and a large projected multi-year increase in North American power consumption. Power demand is rising at the fastest pace since the start of the century, as accelerating demand from data centers is converging with the reshoring of manufacturing activity and projected increases from mining, electrification, and other commercial and industrial applications. This pace of growth requires power infrastructure solutions that can be adapted to the dynamic needs of individual customers. Liberty is well positioned to meet this demand with a modular solution that offers reliability, redundancy, and the ability to accelerate deployment timelines and scale alongside the growing load requirements for critical infrastructure projects. “Entering 2025, we are excited to lead the industry with innovative and durable technologies that will drive our continued success in the years ahead. We are investing to build truly differential competitive advantages both in the completions arena and in our new power business, to generate significant value for our customers and our shareholders,” commented Mr. Gusek. “We expect our investments today will lead to strong returns in the coming years.” “In the first quarter, we anticipate a modest sequential increase in revenue and Adjusted EBITDA. For the completions services business, we expect solid free cash flow generation as capital expenditures moderate, even as pricing headwinds impact profitability. As we embark on the next chapter of Liberty’s story, we will also significantly grow our investment in power infrastructure to take advantage of a generational opportunity in power demand growth,” continued Mr. Gusek. “Liberty is a unique technology growth company that is focused on providing both return of and return on capital for shareholders.” Share Repurchase Program During the quarter ended December 31, 2024, Liberty repurchased and retired 1,581,495 shares of Class A common stock at an average of $17.88 per share, representing 1.0% of shares outstanding, for approximately $28 million. During the year ended December 31, 2024, Liberty repurchased and retired 6,320,536 shares of Class A common stock at an average of $20.14 per share, representing 3.8% of shares outstanding, for approximately $127 million. Liberty has cumulatively repurchased and retired 15.1% of shares outstanding at program commencement on July 25, 2022. Total remaining authorization for future common share repurchases is approximately $294 million. The shares may be repurchased from time to time in open market transactions, through block trades, in privately negotiated transactions, through derivative transactions or by other means in accordance with federal securities laws. The timing, as well as the number and value of shares repurchased under the program, will be determined by the Company at its discretion and will depend on a variety of factors, including management’s assessment of the intrinsic value of the Company’s common stock, the market price of the Company’s common stock, general market and economic conditions, available liquidity, compliance with the Company’s debt and other agreements, applicable legal requirements, and other considerations. The exact number of shares to be repurchased by the Company is not guaranteed, and the program may be suspended, modified, or discontinued at any time without prior notice. The Company expects to fund the repurchases by using cash on hand, borrowings under its revolving credit facility and expected free cash flow to be generated through the authorization period. Cash Dividend During the quarter ended December 31, 2024, Liberty paid a quarterly cash dividend of $0.08 per share of Class A common stock, or approximately $13 million in aggregate to shareholders. During the year ended December 31, 2024, Liberty paid cash dividends of $48 million in aggregate to shareholders. On January 22, 2025, the Board declared a cash dividend of $0.08 per share of Class A common stock, to be paid on March 20, 2025 to holders of record as of March 6, 2025. Future declarations of quarterly cash dividends are subject to approval by the Board of Directors and to the Board’s continuing determination that the declarations of dividends are in the best interests of Liberty and its stockholders. Future dividends may be adjusted at the Board’s discretion based on market conditions and capital availability. 2024 Full Year Results For the year ended December 31, 2024, revenues of $4.3 billion decreased 9% from $4.7 billion for the year ended December 31, 2023. Net income (after taxes) totaled $316 million for the year ended December 31, 2024 compared to $556 million for the year ended December 31, 2023. Adjusted Net Income4 (after taxes) totaled $277 million for the year ended December 31, 2024 compared to $558 million for the year ended December 31, 2023. Adjusted EBITDA1 of $922 million for the year ended December 31, 2024, decreased 24% from $1.2 billion for the year ended December 31, 2023. Please refer to the reconciliation of Adjusted EBITDA (a non-GAAP measure) to net income (a GAAP measure) in this earnings release. Fully diluted earnings per share was $1.87 for the year ended December 31, 2024 compared to $3.15 for the year ended December 31, 2023. Adjusted Net Income per Diluted Share4 of $1.64 for the year ended December 31, 2024 compared to $3.16 for the year ended December 31, 2023. Please refer to the tables at the end of this earnings release for a reconciliation of Adjusted EBITDA, Adjusted Net Income, and Adjusted Net Income per Diluted Share (each, a non-GAAP financial measure) to the most directly comparable GAAP financial measures. Fourth Quarter Results For the fourth quarter of 2024, revenue was $944 million, a decrease of 12% from $1.1 billion in the fourth quarter of 2023 and a decrease of 17% from $1.1 billion in the third quarter of 2024. Net income (after taxes) totaled $52 million for the fourth quarter of 2024 compared to $92 million in the fourth quarter of 2023 and $74 million in the third quarter of 2024. Adjusted Net Income4 (after taxes) totaled $17 million for the fourth quarter of 2024 compared to $93 million in the fourth quarter of 2023 and $76 million in the third quarter of 2024. Adjusted EBITDA1 of $156 million for the fourth quarter of 2024 decreased 38% from $253 million in the fourth quarter of 2023 and decreased 37% from $248 million in the third quarter of 2024. Please refer to the reconciliation of Adjusted EBITDA (a non-GAAP measure) to net income (a GAAP measure) in this earnings release. Fully diluted earnings per share was $0.31 for the fourth quarter of 2024 compared to $0.54 for the fourth quarter of 2023 and $0.44 for the third quarter of 2024. Adjusted Net Income per Diluted Share4 of $0.10 for the fourth quarter of 2024 compared to $0.54 for the fourth quarter of 2023 and $0.45 for the third quarter of 2024. Balance Sheet and Liquidity As of December 31, 2024, Liberty had cash on hand of $20 million, a small decrease from third quarter levels, and total debt of $191 million drawn on the secured asset-based revolving credit facility (“ABL Facility”), a $68 million increase from third quarter. Total liquidity, including availability under the credit facility, was $135 million as of December 31, 2024. Conference Call Liberty will host a conference call to discuss the results at 8:00 a.m. Mountain Time (10:00 a.m. Eastern Time) on Thursday, January 30, 2025. Presenting Liberty’s results will be Ron Gusek, incoming chief executive officer, and Michael Stock, Chief Financial Officer. Individuals wishing to participate in the conference call should dial (833) 255-2827, or for international callers (412) 902-6704. Participants should ask to join the Liberty Energy call. A live webcast will be available at http://investors.libertyenergy.com. The webcast can be accessed for 90 days following the call. A telephone replay will be available shortly after the call and can be accessed by dialing (877) 344-7529, or for international callers (412) 317-0088. The passcode for the replay is 8767950. The replay will be available until February 6, 2025. About Liberty Liberty Energy Inc. (NYSE: LBRT) is a leading energy services company. Liberty is one of the largest providers of completion services and technologies to onshore oil, natural gas, and enhanced geothermal energy producers in North America. Liberty also owns and operates Liberty Power Innovations LLC, providing advanced distributed power and energy storage solutions for the commercial and industrial, data center, energy, and mining industries. Liberty was founded in 2011 with a relentless focus on value creation through a culture of innovation and excellence and the development of next generation technology. Liberty is headquartered in Denver, Colorado. For more information, please visit www.libertyenergy.com and www.libertypowerinnovations.com, or contact Investor Relations at IR@libertyenergy.com. 1 “Adjusted EBITDA” is not presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). Please see the supplemental financial information in the table under “Reconciliation of Net Income to EBITDA and Adjusted EBITDA” at the end of this earnings release for a reconciliation of the non-GAAP financial measure of Adjusted EBITDA to its most directly comparable GAAP financial measure. 2 Adjusted Pre-Tax Return on Capital Employed is a non-U.S. GAAP operational measure. Please see the supplemental financial information in the table under “Calculation of Adjusted Pre-Tax Return on Capital Employed” at the end of this earnings release for a calculation of this measure. 3 Cash Return on Capital Invested (“CROCI”) is a non-U.S. GAAP operational measure. Please see the supplemental financial information in the table under “Calculation of Cash Return on Capital Invested” at the end of this earnings release. 4 “Adjusted Net Income” and “Adjusted Net Income per Diluted Share” are not presented in accordance with U.S. GAAP. Please see the supplemental financial information in the table under “Reconciliation of Net Income and Net Income per Diluted Share to Adjusted Net Income and Adjusted Net Income per Diluted Share” at the end of this earnings release for a reconciliation of the non-GAAP financial measures of Adjusted Net Income and Adjusted Net Income per Diluted Share to the most directly comparable GAAP financial measures. Non-GAAP Financial Measures This earnings release includes unaudited non-GAAP financial and operational measures, including EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income per Diluted Share, and Adjusted Pre-Tax Return on Capital Employed (“ROCE”). We believe that the presentation of these non-GAAP financial and operational measures provides useful information about our financial performance and results of operations. We define Adjusted EBITDA as EBITDA adjusted to eliminate the effects of items such as non-cash stock-based compensation, new fleet or new basin start-up costs, fleet lay-down costs, gain or loss on the disposal of assets, unrealized gain or loss on investments, net, bad debt reserves, transaction and other costs, the loss or gain on remeasurement of liability under our tax receivable agreements, and other non-recurring expenses that management does not consider in assessing ongoing performance. Our board of directors, management, investors, and lenders use EBITDA and Adjusted EBITDA to assess our financial performance because it allows them to compare our operating performance on a consistent basis across periods by removing the effects of our capital structure (such as varying levels of interest expense), asset base (such as depreciation, depletion, and amortization) and other items that impact the comparability of financial results from period to period. We present EBITDA and Adjusted EBITDA because we believe they provide useful information regarding the factors and trends affecting our business in addition to measures calculated under U.S. GAAP. We present Adjusted Net Income and Adjusted Net Income per Diluted Share because we believe such measures provide useful information to investors regarding our operating performance by excluding the after-tax impacts of unusual or one-time benefits or costs, including items such as unrealized gain or loss on investments, net and transaction and other costs, primarily because management views the excluded items to be outside of our normal operating results. We define Adjusted Net Income as net income after eliminating the effects of such excluded items and Adjusted Net Income per Diluted Share as Adjusted Net Income divided by the number of weighted average diluted shares outstanding. Management analyzes net income without the impact of these items as an indicator of performance to identify underlying trends in our business. We define ROCE as the ratio of adjusted pre-tax net income (adding back income tax and certain adjustments that include tax receivable agreement impacts, unrealized gain or loss on investments, net, and transaction and other costs, when applicable) for the twelve months ended December 31, 2024 to Average Capital Employed. Average Capital Employed is the simple average of total capital employed (both debt and equity) as of December 31, 2024 and December 31, 2023. CROCI is defined as the ratio of Adjusted EBITDA to the average of the beginning and ending period Gross Capital Invested (total assets plus accumulated depreciation and depletion less non-interest bearing current liabilities). ROCE and CROCI are presented based on our management’s belief that these non-GAAP measures are useful information to investors when evaluating our profitability and the efficiency with which management has employed capital over time. Our management uses ROCE for that purpose. ROCE and CROCI are not measures of financial performance under U.S. GAAP and should not be considered an alternative to net income, as defined by U.S. GAAP. Non-GAAP financial and operational measures do not have any standardized meaning and are therefore unlikely to be comparable to similar measures presented by other companies. The presentation of non-GAAP financial and operational measures is not intended to be a substitute for, and should not be considered in isolation from, the financial measures reported in accordance with U.S. GAAP. See the tables entitled Reconciliation and Calculation of Non-GAAP Financial and Operational Measures for a reconciliation or calculation of the non-GAAP financial or operational measures to the most directly comparable GAAP measure. Forward-Looking and Cautionary Statements The information above includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included herein concerning, among other things, statements about our expected growth from recent acquisitions, expected performance, future operating results, oil and natural gas demand and prices and the outlook for the oil and gas industry, future global economic conditions, improvements in operating procedures and technology, our business strategy and the business strategies of our customers, the deployment of fleets in the future, planned capital expenditures, future cash flows and borrowings, pursuit of potential acquisition opportunities, our financial position, return of capital to stockholders, business strategy and objectives for future operations, are forward-looking statements. These forward-looking statements are identified by their use of terms and phrases such as “may,” “expect,” “estimate,” “outlook,” “project,” “plan,” “position,” “believe,” “intend,” “achievable,” “forecast,” “assume,” “anticipate,” “will,” “continue,” “potential,” “likely,” “should,” “could,” and similar terms and phrases. However, the absence of these words does not mean that the statements are not forward-looking. Although we believe that the expectations reflected in these forward-looking statements are reasonable, they do involve certain assumptions, risks and uncertainties. The outlook presented herein is subject to change by Liberty without notice and Liberty has no obligation to affirm or update such information, except as required by law. These forward-looking statements represent our expectations or beliefs concerning future events, and it is possible that the results described in this earnings release will not be achieved. These forward-looking statements are subject to certain risks, uncertainties and assumptions identified above or as disclosed from time to time in Liberty's filings with the Securities and Exchange Commission. As a result of these factors, actual results may differ materially from those indicated or implied by such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, we do not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for us to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in “Item 1A. Risk Factors” included in our Annual Report on Form 10-K for the year ended December 31, 2023 as filed with the SEC on February 9, 2024 and in our other public filings with the SEC. These and other factors could cause our actual results to differ materially from those contained in any forward-looking statements. Liberty Energy Inc. Selected Financial Data (unaudited) Three Months Ended Year Ended December 31, September 30, December 31, December 31, 2024 2024 2023 2024 2023 Statement of Operations Data: (amounts in thousands, except for per share data) Revenue $ 943,574 $ 1,138,578 $ 1,074,958 $ 4,315,161 $ 4,747,928 Costs of services, excluding depreciation, depletion, and amortization shown separately 741,754 840,274 777,251 3,200,506 3,349,370 General and administrative 56,174 58,614 55,296 225,474 221,406 Transaction, severance, and other costs — — 249 — 2,053 Depreciation, depletion, and amortization 132,164 126,395 118,421 505,050 421,514 (Gain) loss on disposal of assets (11,442 ) 6,017 (13 ) (5,337 ) (6,994 ) Total operating expenses 918,650 1,031,300 951,204 3,925,693 3,987,349 Operating income 24,924 107,278 123,754 389,468 760,579 Loss (gain) on remeasurement of liability under tax receivable agreements 3,210 — (1,817 ) 3,210 (1,817 ) Unrealized (gain) loss on investments (44,753 ) 2,727 — (49,227 ) — Interest expense, net 8,499 8,589 6,364 32,214 27,506 Net income before taxes 57,968 95,962 119,207 403,271 734,890 Income tax expense 6,075 22,158 26,824 87,261 178,482 Net income 51,893 73,804 92,383 316,010 556,408 Less: Net income attributable to non-controlling interests — — — — 91 Net income attributable to Liberty Energy Inc. stockholders $ 51,893 $ 73,804 $ 92,383 $ 316,010 $ 556,317 Net income attributable to Liberty Energy Inc. stockholders per common share: Basic $ 0.32 $ 0.45 $ 0.55 $ 1.91 $ 3.24 Diluted $ 0.31 $ 0.44 $ 0.54 $ 1.87 $ 3.15 Weighted average common shares outstanding: Basic 162,856 164,741 168,016 165,026 171,845 Diluted 167,163 168,595 172,661 169,398 176,360 Other Financial and Operational Data Capital expenditures (1) $ 188,148 $ 162,835 $ 133,610 $ 627,057 $ 576,389 Adjusted EBITDA (2) $ 155,740 $ 247,811 $ 252,507 $ 921,593 $ 1,213,068 (1) Net capital expenditures presented above include investing cash flows from purchase of property and equipment, excluding acquisitions, net of proceeds from the sales of assets. (2) Adjusted EBITDA is a non-GAAP financial measure. See the tables entitled “Reconciliation and Calculation of Non-GAAP Financial and Operational Measures” below. Liberty Energy Inc. Condensed Consolidated Balance Sheets (unaudited, amounts in thousands) December 31, December 31, 2024 2023 Assets Current assets: Cash and cash equivalents $ 19,984 $ 36,784 Accounts receivable and unbilled revenue 539,856 587,470 Inventories 203,469 205,865 Prepaids and other current assets 85,214 124,135 Total current assets 848,523 954,254 Property and equipment, net 1,890,998 1,645,368 Operating and finance lease right-of-use assets 356,435 274,959 Other assets 200,438 158,976 Total assets $ 3,296,394 $ 3,033,557 Liabilities and Equity Current liabilities: Accounts payable and accrued liabilities $ 571,305 $ 572,029 Current portion of operating and finance lease liabilities 95,218 67,395 Total current liabilities 666,523 639,424 Long-term debt, net of discount 190,500 140,000 Long-term operating and finance lease liabilities 247,888 197,914 Deferred tax liability 137,728 102,340 Payable pursuant to tax receivable agreements 74,886 112,471 Total liabilities 1,317,525 1,192,149 Stockholders’ equity: Common stock 1,619 1,666 Additional paid in capital 977,484 1,093,498 Retained earnings 1,019,517 752,328 Accumulated other comprehensive loss (19,751 ) (6,084 ) Total stockholders’ equity 1,978,869 1,841,408 Total liabilities and equity $ 3,296,394 $ 3,033,557 Liberty Energy Inc. Reconciliation and Calculation of Non-GAAP Financial and Operational Measures (unaudited, amounts in thousands) Reconciliation of Net Income to EBITDA and Adjusted EBITDA Three Months Ended Year Ended December 31, September 30, December 31, December 31, 2024 2024 2023 2024 2023 Net income $ 51,893 $ 73,804 $ 92,383 $ 316,010 $ 556,408 Depreciation, depletion, and amortization 132,164 126,395 118,421 505,050 421,514 Interest expense, net 8,499 8,589 6,364 32,214 27,506 Income tax expense (benefit) 6,075 22,158 26,824 87,261 178,482 EBITDA $ 198,631 $ 230,946 $ 243,992 $ 940,535 $ 1,183,910 Stock-based compensation expense 10,094 8,121 9,288 32,412 33,026 Unrealized (gain) loss on investments, net (44,753 ) 2,727 — (49,227 ) — Loss (gain) on disposal of assets (11,442 ) 6,017 (13 ) (5,337 ) (6,994 ) (Gain) loss on remeasurement of liability under tax receivable agreements 3,210 — (1,817 ) 3,210 (1,817 ) Fleet start-up costs — — — — 2,082 Transaction, severance, and other costs — — 249 — 2,053 Provision for credit losses — — 808 — 808 Adjusted EBITDA $ 155,740 $ 247,811 $ 252,507 $ 921,593 $ 1,213,068 Reconciliation of Net Income and Net Income per Diluted Share to Adjusted Net Income and Adjusted Net Income per Diluted Share Three Months Ended Year Ended December 31, September 30, December 31, December 31, 2024 2024 2023 2024 2023 Net income $ 51,893 $ 73,804 $ 92,383 $ 316,010 $ 556,408 Adjustments: Less: Unrealized (gain) loss on investments, net (44,753 ) 2,727 — (49,227 ) — Add back: Transaction and other costs — — 249 — 2,053 Total adjustments, before taxes (44,753 ) 2,727 249 (49,227 ) 2,053 Income tax expense (benefit) of adjustments (9,582 ) 656 55 (10,633 ) 499 Adjusted Net Income $ 16,722 $ 75,875 $ 92,577 $ 277,416 $ 557,962 Diluted weighted average common shares outstanding 167,163 168,595 172,661 169,398 176,360 Net income per diluted share $ 0.31 $ 0.44 $ 0.54 $ 1.87 $ 3.15 Adjusted Net Income per Diluted Share $ 0.10 $ 0.45 $ 0.54 $ 1.64 $ 3.16 Calculation of Adjusted Pre-Tax Return on Capital Employed Twelve Months Ended December 31, 2024 2023 Net income $ 316,010 Add back: Income tax expense 87,261 Add back: Loss on remeasurement of liability under tax receivable agreements (1) 3,210 Less: Unrealized gain on investments, net (49,227 ) Adjusted Pre-tax net income $ 357,254 Capital Employed Total debt, net of discount $ 190,500 $ 140,000 Total equity 1,978,869 1,841,408 Total Capital Employed $ 2,169,369 $ 1,981,408 Average Capital Employed (2) $ 2,075,389 Adjusted Pre-Tax Return on Capital Employed (3) 17 % (1) Loss on remeasurement of the liability under tax receivable agreements is a result of a change in the estimated future effective tax rate and should be excluded in the determination of pre-tax return on capital employed. (2) Average Capital Employed is the simple average of Total Capital Employed as of December 31, 2024 and 2023. (3) Adjusted Pre-tax Return on Capital Employed is the ratio of adjusted pre-tax net income for the twelve months ended December 31, 2024 to Average Capital Employed. Calculation of Cash Return on Capital Invested Twelve Months Ended December 31, 2024 2023 Adjusted EBITDA (1) $ 921,593 Gross Capital Invested Total assets $ 3,296,394 $ 3,033,557 Add back: Accumulated depreciation, depletion, and amortization 1,917,551 1,501,685 Less: Accounts payable and accrued liabilities 571,305 572,029 Total Gross Capital Invested $ 4,642,640 $ 3,963,213 Average Gross Capital Invested (2) $ 4,302,927 Cash Return on Capital Invested (3) 21 % (1) Adjusted EBITDA is a non-GAAP financial measure. See the tables entitled “Reconciliation and Calculation of Non-GAAP Financial and Operational Measures” above. (2) Average Gross Capital Invested is the simple average of Gross Capital Invested as of December 31, 2024 and 2023. (3) Cash Return on Capital Invested is the ratio of Adjusted EBITDA, as reconciled above, for the twelve months ended December 31, 2024 to Average Gross Capital Invested. Reconciliation of Historical Net Income (Loss) to EBITDA and Adjusted EBITDA Year Ended December 31, 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Net income (loss) $ 556,408 $ 400,302 $ (187,004 ) $ (160,674 ) $ 74,864 $ 249,033 $ 168,501 $ (60,560 ) $ (9,061 ) $ 34,519 $ 8,881 $ 25,807 Depreciation, depletion, and amortization 421,514 323,028 262,757 180,084 165,379 125,110 81,473 41,362 36,436 21,749 12,881 5,875 Interest expense, net 27,506 22,715 15,603 14,505 14,681 17,145 12,636 6,126 5,501 3,610 1,139 — Income tax (benefit) expense 178,482 (793 ) 9,216 (30,857 ) 14,052 40,385 — — — — — — EBITDA $ 1,183,910 $ 745,252 $ 100,572 $ 3,058 $ 268,976 $ 431,673 $ 262,610 $ (13,072 ) $ 32,876 $ 59,878 $ 22,901 $ 31,682 Stock-based compensation expense 33,026 23,108 19,946 17,139 13,592 5,450 — — — — — — Fleet start-up costs 2,082 17,007 2,751 12,175 4,519 10,069 13,955 4,280 1,044 4,502 2,711 — Transaction, severance, and other costs 2,053 5,837 15,138 21,061 — 834 4,015 5,877 446 — — — (Gain) loss on disposal of assets (6,994 ) (4,603 ) 779 (411 ) 2,601 (4,342 ) 148 (2,673 ) 423 494 — — Provision for credit losses 808 — 745 4,877 1,053 — — — 6,424 — — — Loss (gain) on remeasurement of liability under tax receivable agreements (1,817 ) 76,191 (19,039 ) — — — — — — — — — Gain on investments — (2,525 ) — — — — — — — — — — Adjusted EBITDA $ 1,213,068 $ 860,267 $ 120,892 $ 57,899 $ 290,741 $ 443,684 $ 280,728 $ (5,588 ) $ 41,213 $ 64,874 $ 25,612 $ 31,682 Calculation of Historical Cash Return on Capital Invested Year Ended December 31, 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Adjusted EBITDA (1) $ 1,213,068 $ 860,267 $ 120,892 $ 57,899 $ 290,741 $ 443,684 $ 280,728 $ (5,588 ) $ 41,213 $ 64,874 $ 25,612 31,682 Gross Capital Invested Total assets $ 3,033,557 $ 2,575,932 $ 2,040,660 $ 1,889,942 $ 1,283,429 $ 1,116,501 $ 852,103 $ 451,845 $ 296,971 $ 331,671 $ 174,813 $ 107,225 $ 35,699 Add back: Accumulated depreciation, depletion, and amortization 1,501,685 1,141,656 863,194 622,530 455,687 307,277 198,453 117,779 77,057 40,715 19,082 6,196 321 Less: Accounts payable and accrued liabilities 572,029 609,790 528,468 311,721 226,567 219,351 220,494 118,949 52,688 99,005 26,600 13,275 1,718 Total Gross Capital Invested $ 3,963,213 $ 3,107,798 $ 2,375,386 $ 2,200,751 $ 1,512,549 $ 1,204,427 $ 830,062 $ 450,675 $ 321,340 $ 273,381 $ 167,295 $ 100,146 $ 34,302 Average Gross Capital Invested (2) $ 3,535,506 $ 2,741,592 $ 2,288,069 $ 1,856,650 $ 1,358,488 $ 1,017,245 $ 640,369 $ 386,008 $ 297,361 $ 220,338 $ 133,721 67,224 Cash Return on Capital Invested (3) 34 % 31 % 5 % 3 % 21 % 44 % 44 % (1 )% 14 % 29 % 19 % 47 % (1) Adjusted EBITDA is a non-GAAP financial measure. See the tables entitled “Reconciliation and Calculation of Historical Non-GAAP Financial and Operational Measures” above. (2) Average Gross Capital Invested is the simple average of Gross Capital Invested as of the end of the current year and prior year. (3) Cash Return on Capital Invested is the ratio of Adjusted EBITDA, as reconciled above, for the year then ended to Average Gross Capital Invested.

Liberty Energy Inc. Announces Fourth Quarter and Full Year 2024 Financial and Operational Results

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