Liberty Energy Inc. Q4 FY2025 earnings call

• Technological Innovation: Launched Atlas and Atlas IQ, a unified technology platform for oilfield operations to transform real-time data into actionable insights. - Operational Execution: Focus on technological innovation and strong operational execution drove a 13% CROCI in 2025. Reduced total maintenance cost per unit of work by ~14% using AI-driven asset optimization software. - Power Infrastructure Growth: Entered agreements with Vantage Data Centers and another data center developer for power projects, with plans to deploy 3 gigawatts by 2029. Strengthened customer relationships in power with a focus on rapid, scalable deployment and predictable power costs.

Oilfield Services: Full year 2025 revenue was $4 billion, adjusted EBITDA was $634 million. Fourth quarter 2025 revenue was $1 billion, with adjusted EBITDA of $158 million. Power Infrastructure: The business has a robust pipeline of power projects, with an aim to deploy approximately 3 gigawatts of power projects by 2029. Revenue contribution details weren't explicitly broken down by percentage in the transcript, but the power segment is growing with strategic agreements like those with Vantage Data Centers.

• Full year 2025: Revenue $4 billion, adjusted EBITDA $634 million. - 2026: Anticipates revenue to be approximately flat year-over-year due to industry-driven pricing headwinds. Adjusted EBITDA expected to be lower due to increased development and overhead costs for the power business. - Power business: Expect to take delivery of ~500 megawatts of power generation equipment by 2026 and aim to deploy 3 gigawatts of power projects by 2029.

• Oil Market Uncertainty: Protracted period of softening activity, global oil market balancing with structural surplus and geopolitical risk. - Completions Market Pressures: Recent pricing pressures on completion services, equipment cannibalization, and underinvestment in next-generation technology. - Regulatory and Cost Concerns: Net zero policies raising energy costs for families and businesses, affecting reliability and energy security, as seen in issues like Mass Save in Massachusetts increasing gas bills for residents.

Q: Stephen Gengaro asks about the pipeline of power opportunities and customer preferences.

A: Ron Gusek and Michael Stock discuss the growing interest in co-located behind-the-meter power, the efficiency of gas reciprocals, and how the commercial strategy leverages grid interaction when beneficial.

Q: Keith MacKey inquires about equipment delivery and meeting timelines for power deals.

A: Michael Stock responds on expanding supply chain relationships and shoring up delivery schedules with engine manufacturers.

Q: Marc Bianchi asks about funding for 2026 spending and EBITDA guidance.

A: Michael Stock explains project finance and free cash flow funding for spending, noting 4Q 2025 was an anomaly and EBITDA expected to be lower in 2026 due to pricing and weather impacts.

Q: Jeffrey LeBlanc asks about LPI helping hyperscalers secure fuel sources.

A: Ron Gusek states LPI has midstream capabilities to help with natural gas supply and is a valuable partner with integrated solutions.

Q: Joshua Silverstein asks about cost changes for additional gigawatts in power.

A: Ron Gusek and Michael Stock state economics shouldn't change meaningfully, with grid parity and lower inflationary components for gas-based power.

Q: Derek Podhaizer asks about supply side concerns for power generation assets and M&A for integration.

A: Ron Gusek and Michael Stock respond that integrated solutions and partnerships support growth, with focus on organic development and key technology pillars.