Liberty Energy Inc. · NYSE:LBRT
Liberty Energy — Liberty Oilfield Services — Investor Presentation (June 2021)
17 slides from Liberty Energy's investor presentation, Jun 17, 2021
Slide 1: Financial Overview and Outlook
Financial Overview and Outlook M I C H A E L S TO C K & C H R I S W R I G H T
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 Oilfield Services Inc.’s (“Liberty” or the “Company”) expectations r
Slide 3: How We Create Value for Our Customers and Our Shareholders
104 How We Create Value for Our Customers and Our Shareholders Why We Invest in Technology Sub-surface Technology: Focusing on What Makes our Customers Successful ◼ Drives higher demand for Liberty services ◼ Creates stickiness of the relationship over years and through cycles ◼ Increases fleet util
Slide 4: Acquisition Integration: Timeline
105 Technology Digital Tech / Innovation People Culture / Structure Great Progress with More Opportunity Ahead Acquisition Integration: Timeline ◼ Implement digital work environment (business applications) ◼ Customer productivity enhancement with integrated technology ◼ Cloud-based IT infrastructure
Slide 5: Potential Capital Synergies Identified and Asset Monetization
106 H A R V E S T E Q U I P M E N T Maintenance Support $20 - $30 Growth Capex Reduction $5 - $10 Ancillary Equipment $40 - $50 Total Capex Reduction from Acquired Assets $65 - $90 A S S E T M O N E T I Z A T I O N Facilities $25 - $35 Asset Sales (to International Markets) $5 - $10 Total Asset Mone
Slide 6: Acquisition Integration: Customers in Focus
107 Emphasizing Customer Relationships from Day One Acquisition Integration: Customers in Focus Positive Reception from Legacy OneStim Customers Expanded Relationships Pricing Opportunities New Basin Exposure Wireline Integration Sand Mines Integration
Slide 7: Supply, Demand and Next Generation
108 Supply, Demand and Next Generation Current Market ◼Exiting historic Covid downturn only one year ago the industry was almost at a standstill ◼WTI Commodity price was as low as $18 at the trough, was in the $40s when work was priced for 2021 and now is ~$70 ◼Our customers’ business models were se
Slide 8: The Road to Normalized EBITDA Levels
109 0 2 4 6 8 10 12 14 16 18 Current Revenue Uplift Technology Cost Synergies Total Fixed Cost Leverage Total The Road to Normalized EBITDA Levels Through Integration, Innovation and Execution A Pathway to Mid-Cycle EBITDA Net Service Pricing, Utilization & Throughput Logistics, Materials Handling &
Slide 9: Why Upgrade or Build New Frac Pumps?
110 Why Upgrade or Build New Frac Pumps? Next Generation Equipment is Changing the Market Dynamic Tier 2 Tier 2 Diesel Dual Fuel ▪ Upgrade cost ▪ $3M per fleet Tier 2 Tier 4 Diesel DGB ▪ Upgrade cost ▪ $13M to $18M per fleet Tier 4 Tier 4 Diesel DGB ▪ Upgrade cost ▪ $4M to $6M per fleet digiFrac E-f
Slide 10: Managing the Cycle for Long Term Returns
111 0% 47% 19% 29% 14% (1%) 44% 44% 21% 3% -5% 5% 15% 25% 35% 45% 2012 2013 2014 2015 2016 2017 2018 2019 2020 Managing the Cycle for Long Term Returns Liberty’s Investment Philosophy Build the BDFC! Small Amount of Equity Reinvest at High Rates of Return Return Cash to Shareholders Strategic Acquis
Slide 11: Worldwide Oil & Gas Demand: An Economic Necessity
112 Global Oil Demand by Region(1) Worldwide Oil & Gas Demand: An Economic Necessity The “Energy Transition” Narrative In Perspective (1) Organization of Petroleum Exporting Countries (OPEC): 2020 World Oil Outlook 2045 (2) U.S. Energy Information Administration (EIA): Annual Energy Outlook 2021 100
Slide 12: A Road to Next Generation Depends on Market Drivers
113 0 10 20 30 40 50 2021 2022 2023 Tier 2 Diesel Tier 2 Dual Fuel Tier 4 Diesel Tier 4 DGB digiFrac Next Generation Capex is Discretionary Dependent on Market Conditions • Market Demand • Pricing • Customer Commitments • Operating Cash Flow A Road to Next Generation Depends on Market Drivers: A Pot
Slide 13: Strategic Investment Drives Long-Term Differential Returns
114 0% 5% 10% 15% 20% 25% 30% 2021 2022 2023 Strategic Investment Drives Long-Term Differential Returns Liberty: Creating Sustainable Competitive Advantages (1) Cash Return on Capital Invested (CROCI) is an operational measure defined as the ratio of Adjusted EBITDA to the average of the beginning a
Slide 14: Liberty's Unmatched Track Record of Attractive Returns
115 Liberty Cash Return on Capital Invested(1) (CROCI) 47% 19% 29% 14% (1%) 44% 44% 21% 3% -5% 5% 15% 25% 35% 45% 2012 2013 2014 2015 2016 2017 2018 2019 2020 Proven Steward of Capital in the Energy Sector Liberty’s Unmatched Track Record of Attractive Returns Disciplined Growth High Rates of Return
Slide 15: Compelling Investment Rationale
116 Compelling Investment Rationale Liberty: Creating Value Through the Next Decade 2 N D L A R G E S T N O R T H A M E R I C A N C O M P L E T I O N S C O M PA N Y Advantaged Scale, Diversification & Vertical Integration S I G N I F I C A N T F R E E C A S H F L O W P O T E N T I A L Delivering Cas
Slide 16: Appendix
Appendix
Slide 17: Reconciliation and Calculation of Non-GAAP Financial Measurements
118 Reconciliation and Calculation of Non-GAAP Financial Measurements Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended 31-Dec-20 31-Dec-19 31-Dec-18 31-Dec-17 31-Dec-16 31-Dec-15 Net Income (loss) ($161) $75 $249 $169 ($61) ($9) Depreciation & Amortization $180 $165 $125 $81 $41 $36
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