Slide 1: Enercom
• August 8, 2022 Enercom C H R I S W R I G H T, C E O & C H A I R M A N
Slide 2: Important Disclosures
2 Important Disclosures FORWARD LOOKING STATEMENTS The information in this presentation includes “forward-looking statements”. All statements, other than statements of historical fact included in this presentation regarding Liberty Energy Inc.’s (“Liberty” or the “Company”) including, without limita
Slide 3: A Decade of Liberty: Compelling Value Creation
3 A Decade of Liberty: Compelling Value Creation Liberty: A Premier North American Completions Service Provider (1) Cash Return on Capital Invested (CROCI) defined as the ratio of adjusted EBITDA to average Gross Capital Invested (Total Assets plus Accumulated Depreciation less Non-Interest Bearing
Slide 4: A New Era of Leadership in a Structurally Changed Industry
4 A New Era of Leadership in a Structurally Changed Industry An Unrivaled Completions Service Provider: Technology, Integration & Scale 4th | 2nd Largest NAM OFS | Completions(1)(4) 23% 10-Year Average CROCI(2)(3) 44% Higher Average CROCI Relative to S&P 500 $196M | $0.55 2Q22 Adjusted EBITDA(3) | E
Slide 5: Outlook Increasingly Favorable: Q2 2022 Highlights and Recent Announcements
5 Outlook Increasingly Favorable Q2 2022 Highlights and Recent Announcements Q 2 R E S U L T S & R E C E N T A N N O U N C E M E N T S • Q222 record revenue of $943M • Q222 Adjusted EBITDA(1) of $196M exceeded FY21 level • Q222 EPS of $0.55 • Published 2nd annual Bettering Human Lives ESG report hig
Slide 6: Liberty Cash Return on Capital Invested (CROCI)
6 Liberty Cash Return on Capital Invested(1) (CROCI) 47% 19% 29% 14% (1%) 44% 44% 21% 3% 5% 22% -5% 5% 15% 25% 35% 45% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Annualized 1H22 Proven Steward of Capital in the Energy Sector Liberty’s Unmatched Track Record of Attractive Returns and Equity Fi
Slide 7: Managing the Cycle for Long Term Returns
7 47% 19% 29% 14% (1%) 44% 44% 21% 3% 5% 22% -5% 5% 15% 25% 35% 45% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Annualized 1H22 -5% 5% 15% 25% 35% 45% Managing the Cycle for Long Term Returns Liberty’s Investment Philosophy Source: Company filings Note: Cash Return on Capital Invested (CROCI)
Slide 8: Cash Priorities: Maximizing the Value of Each Liberty Share
8 Reinitiating Share Repurchases while Retaining Flexibility to Drive Profitability Expansion Cash Priorities: Maximizing the Value of Each Liberty Share I N V E S T I N G F O R H I G H R E T U R N S • Early cycle investment expands free cash flow returns • Growing competitive advantages • Industry-
Slide 9: Multi-Year Underinvestment Constrains Supply in a Rising Demand Environment
9 Multi-Year Underinvestment Constrains Supply in a Rising Demand Environment Worldwide Oil Supply and Demand Remain Tight 75 80 85 90 95 100 105 Q1 2017 Q1 2018 Q1 2019 Q1 2020 Q1 2021 Q1 2022 Q1 2023 Production Consumption Millions barrels per day Global Oil (Liquid Fuels) Production & Consumption
Slide 10: Rapid Tightening Drives Pricing: Frac Market Dynamics
10 Rapid Tightening Drives Pricing Frac Market Dynamics Frac Horsepower at High Utilization Source: Rystad and Company Estimates 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 0 5 10 15 20 25 30 2017 2018 2019 2020 2021 2022E 2023E 2024E 2025E 2026E Demand Supply Utilization H y d ra u lic H o rs e p o w e
Slide 11: Why Is This Cycle Different?
11 Why Is This Cycle Different? Business Cycle Dynamics S U P P LY C O N S T R A I N T S L I M I T E D S U P P LY O F C A P I TA L I N D U S T R Y C O N S O L I D AT I O N EQUIPMENT, SUPPLY CHAIN AND LABOR REMAIN CONSTRAINED AVAILABILITY OF CAPITAL IS LIMITED 65%+ OF ACTIVE FRAC CAPACITY IS WITH THE
Slide 12: An Advantaged Platform of Scale and Vertical Integration
12 Drives Returns and Service Quality An Advantaged Platform of Scale and Vertical Integration WIRELINE Fully Integrated SAND MINES Freedom Proppants EQUIPMENT DESIGN & MFG ST9 LOGISTICS Software AI and Real Time Data Leading edge containerized sand transportation and the industry’s only wet sand ha
Slide 13: Technology Expands the Liberty Premium
13 Next Generation Frac Fleets Technology Expands the Liberty Premium Technology Platform Drives Competitive Advantage Digital Technology Streamlining Operations & Maintenance Workflow Integrated Operations, Supply Chain & Logistics Platform Big Data Analytics to Optimize Well Productivity Fleet Aut
Slide 14: Secular Shift from Diesel to Natural Gas
14 Secular Shift from Diesel to Natural Gas Next Generation Frac Fleet Technology $0 $5 $10 $15 $20 $25 Tier 4 DGB at 50% Natural Gas Substitution Tier 4 DGB at 75% Natural Gas Substitution digiFrac 100% Natural Gas 53% 43% 38% 35% 31% 37% 43% 46% 48% 50% 10% 14% 16% 17% 20% 0% 10% 20% 30% 40% 50% 6
Slide 15: digiFrac Differentiation: Modular Design Delivers Lowest Emissions
15 Modular Design Delivers Lowest Emissions, Highest Efficiency digiFrac Differentiation EMISSIONS • Highest thermal efficiency • 35% CO2e reduction vs. Tier 4 DGB REDUNDANCY • Minimize single points of failure • Modular power supply • 10 electric motors per digiFrac pump MODULARITY • Fleet size mat
Slide 16: Performance with Purpose: Business Strategy Advances Industry ESG Efforts
16 Performance with Purpose: Business Strategy Advances Industry ESG Efforts and Liberty Returns ESG: An Unrivaled Commitment to Environmental Progress OneStim 2020 Schlumberger OneStim Proprietary controls, novel software, fleet automation 2016 Quiet FleetTM Liberty introduces Quiet FleetTM technol
Slide 17: The Importance of Energy in the Modern World
17 The Importance of Energy in the Modern World Liberty’s 2022 Bettering Human Lives Report
Slide 18: Three Global Energy Challenges
18 Three Global Energy Challenges Energy Poverty Secure Supply of Reliable, Affordable, Clean Energy Climate Change Using Low-Cost Energy as an Agent of Human Well-Being
Slide 19: Four Pillars of the Modern World
19 Four Pillars of the Modern World: Steel, Cement, Plastics, and Fertilizer The Critical Link Hydrocarbons Play in Geopolitics, Food Security and the Pillars of the Modern World Expanded Coverage in 2022 Report Food and Hydrocarbons • Sri Lanka case study Geopolitics and Hydrocarbons Texas Electric
Slide 20: Myths Behind Commonly Used Phrases
20 Myths Behind Commonly Used Phrases Dangerous Misconceptions • “Climate Crisis” • “Energy Transition” • Electricity = Energy • “Clean Energy” and “Dirty Energy” • CO2 = Pollution
Slide 21: Compelling Investment Rationale
21 Compelling Investment Rationale Liberty: Creating Value with Sustainable Competitive Advantages L E A D I N G R E T U R N S A N D F R E E C A S H F L O W P O T E N T I A L Long-Term Investment Approach with Operational Leverage to the Upcycle S U P E R I O R T E C H N O L O G Y A N D S E R V I C
Slide 22: Appendix A: Supplemental Materials
Appendix A: Supplemental Materials
Slide 23: Reconciliation and Calculation of Non-GAAP Financial Measurements
23 Reconciliation and Calculation of Non-GAAP Financial Measurements Quarter Ended Quarter Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended 30-Jun-22 31-Mar-22 31-Dec-21 31-Dec-20 31-Dec-19 31-Dec-18 31-Dec-17 31-Dec-16 31-Dec-15 Net income (loss) $105 ($5) ($187) (
Slide 24: Reconciliation and Calculation of Non-GAAP Financial Measurements (Cont'd)
24 Reconciliation and Calculation of Non-GAAP Financial Measurements (Cont’d) Quarter Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended 30-Jun-22 31-Dec-21 31-Dec-20 31-Dec-19 31-Dec-18 31-Dec-17 31-Dec-16 31-Dec-15 Total Assets $ 2,335 $ 2,041 $ 1,890 $ 1,283 $ 1,11