Liberty Energy Inc. · NYSE:LBRT
Liberty Energy — Liberty Oilfield Services — Investor Presentation (June 2019)
19 slides from Liberty Energy's investor presentation, Jun 13, 2019
Slide 1: Investor Presentation June 2019
Investor Presentation June 2019 NYSE: LBRT www.LibertyFrac.com
Slide 2: Important Disclosures: Forward Looking Statements
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 Oilfield Services Inc.’s (“Liberty” or the “Company”) strategy, future
Slide 3: Liberty Snapshot
Liberty Snapshot Liberty: The Facts • Market leading, returns–focused provider of Williston hydraulic fracturing services with Basin demonstrably superior financial performance Powder River Basin 14 Fleets • Relentless pursuit of efficiency driven by: • Differentiated technology DJ • Exceptional ope
Slide 4: Where we play – Hydraulic Fracturing
Where we play – Hydraulic Fracturing • Frac enables production from unconventional reservoirs • Largest single component of well capital spend • Total estimated 2018 lower 48 drilling and completion capex spend1: $90 Billion Breakdown of Avg. D&C Well Spend2 Other 22% Frac 42% Drilling 36% (1) Sourc
Slide 5: 2018 Financial Highlights Driving Profitable Growth
2018 Financial Highlights Driving Profitable Growth Yr vs • IPO in January 2018 $ MM's except Per Share and Fleet numbers 2018 2017 Yr. Revenue$ 2,155 $ 1,490 45% Net Income Before Tax$ 289 $ 169 72% • Revenues $2.16B up 45% Fully Diluted EPS$ 1.81 Adjusted EBITDA1 $ 438 $ 281 56% • Pre‐tax net inco
Slide 6: Q1 2019 Financial Highlights
Q1 2019 Financial Highlights Financial Performance Qtr vs • Revenues $535M up 13% $ MM's except Per Share and Fleet numbers Q1 2019 Q4 2018 Qtr. Revenue$ 535 $ 473 13% • Pre‐tax net income $40M up 6% Net Income Before Tax$ 40 $ 38 6% Fully Diluted EPS$ 0.26 $ 0.27 ‐3% • Adjusted EBITDA $85M up 18% A
Slide 7: Cash Flow and Shareholder Returns
Cash Flow and Shareholder Returns • $119M of Cash Returned to Shareholders since IPO • Quarterly dividend of $0.05 initiated in Q3 2018 • 5% of post‐IPO shares repurchased since IPO • additional repurchases authorized • Q1 2019 Adjusted EBITDA of $85M • Q1 2019 Capex $51M • Expected ~ $175M full yea
Slide 8: Returns-Focused Company
Returns‐Focused Company Pre‐Tax Return on Capital Employed (ROCE)(1) ‐LTM 1Q19 Superior Returns on Capital 33% 34% 30% Meticulous Focus on Frac and Frac 17% Only 15% 9% 6% Highly Profitable 5% Operating Structure 0% (5%) (8%) Disciplined Capital (15%) (14%) LBRT Pumper Pumper Pumper Pumper Pumper Pu
Slide 9: Shale Revolution
Shale Revolution 12,000 • Technological 100 Years of US Oil Production Shale Oil innovations starting in the late 1990's launched 10,000 the Shale Revolution that has transformed world energy markets 8,000 • Shale Revolution doubled US oil 6,000 production; turned US into net natural gas exporter; a
Slide 10: Strong Returns on Capital from Day One
Strong Returns on Capital from Day One Cash Return on Capital Invested (CROCI)(1,2) 47% 45% 44% 43% 35% 29% 28% ‐ LBRT 7 Year avg 25% (3) 19% 24% S&P 500 ‐ 7 Year avg 15% 14% 5% (1%) (5%) 2012 2013 2014 2015 2016 2017 2018 Compounding Share Value by reinvesting cash flow at high rates of return (1)
Slide 11: How We Generate Our Differential Returns
How We Generate Our Differential Returns People and Culture 2 Treat people right, empower employees, foster an innovation based culture, significantly lower turnover, common sense safety culture Technology Develop disruptive solutions that reduce our customers’ cost per BOE, maximize fleet efficienc
Slide 12: Liberty – The Employer of Choice
Liberty – The Employer of Choice Employee‐centered culture which attracts and retains high potential talent • Get the best talent and you win • Lower personnel turnover • Zero layoffs during the downturn • Safety first ‐ incident rate less than half of industry average • Highly variable compensation
Slide 13: Liberty DNA: Technology Meets Execution
Liberty DNA: Technology Meets Execution Technology Highlights Impact Liberty FracTrends™ • 60,000+ well database Proprietary Database • Proprietary viewer and analysis tools Fraconomics™ • Integrated engineering & “big data” approach to lower a customer’s cost to produce a barrel of oil • Liberty te
Slide 14: Partnering to Lower the Cost of a Barrel
Partnering to Lower the Cost of a Barrel • Fraconomics™ and Liberty FracTrends™ • Integrated engineering & “big data” approach to lower a customer’s cost to produce a barrel of oil • Proprietary in‐house software • Industry leading simulation techniques • Calibrated Frac and Reservoir Modeling • Adv
Slide 15: Relentless Focus on Operational Efficiency
Relentless Focus on Operational Efficiency • We track all 1,440 minutes on every fleet, Higher Throughput By Lowering Non‐Performing Time (NPT) every day Example Pad Customer NPT • Meticulous downtime analysis to Activity Breakdown Breakdown determine root‐cause and engineer 8% technology driven sol
Slide 16: Our Strategy – Maximize per Share Value
Our Strategy – Maximize per Share Value 1 Disciplined Organic Growth 2 Reinvest Cashflow at High Rates of Return 3 Return Capital to Shareholders Investment Highlights 4 Balance sheet strength – low leverage and ample liquidity 5 Highly competitive Tech Nerds ‐ unmatched rate of innovation Long‐term
Slide 17: Appendix
Appendix NYSE: LBRT www.LibertyFrac.com
Slide 18: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 3 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended Year Ended 31‐Mar‐19 31‐Dec‐18 30‐Sep‐18 30‐Jun‐18 31‐Dec‐18 Net Income (loss)$ 33.9 $ 33.9 $ 66.4 $ 94.7 $ 282.9 Deprecia�on & Amor�za�on 38.4 34.2 32.3 30.6 163.5 Interest Expense 4.2 3.5 3.6 3.5 21.3 Income
Slide 19: Calculation of Pre-Tax Return on Capital Employed
Calculation of Pre‐Tax Return on Capital Employed Calculation of Pre-Tax Return on Capital Employed Twelve Months Ended March 31, 2019 2018 Net income1 $ 228,956 Add back: Income tax expense 38,366 Pre-tax net income $ 267,322 March 31, March 31, Capital Employed 2019 2018 Total debt, net of discoun
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