Liberty Energy Inc. · NYSE:LBRT
Liberty Energy — Liberty Oilfield Services — Investor Presentation (November 2019)
15 slides from Liberty Energy's investor presentation, Nov 5, 2019
Slide 1: Investor Presentation November 2019
Investor Presentation November 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: 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 4: 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 5: Third Quarter 2019 and Outlook
Third Quarter 2019 and Outlook Leading Returns • Revenue YTD of $1.6B, Q3 revenue $ MM's except Per Share and decreased 5% vs Q2 due to E&P capital Active Fleets September 30, 2019 Q3 YTD budget management Revenue$ 515 $ 1,592 • Pre‐tax net income YTD of $110M Net Income Before Tax$ 23 $ 110 Fully D
Slide 6: YTD 2019 Cash Flow and Shareholder Returns
YTD 2019 Cash Flow and Shareholder Returns • YTD 2019 Adjusted EBITDA of $247M • YTD 2019 Capex of $125M • ~ $175M projected for full year • ~$65M maintenance Capex • ~$110M growth and technology investment • $130M of Cash returned to shareholders since IPO • $0.05 Quarterly dividend since Q3 2018 •
Slide 7: 2018 LBRT ROIC versus S&P Industries
2018 ‐ LBRT ROIC versus S&P 500 Industries Return on Invested Capital across Industries(1,2) 35% 25th/75th percentile Median ROIC 30% LBRT 2018 ROIC – 31% 25% 24.4% 23.4% 21.6% 20% 19.4% 18.2% 18.5% 16.8% 15.5% 15.0% 15% 13.5% 13.1% 11.6% 12.7% 12.2% 11.8% 11.1% 10% 9.6% 10.1% 8.8% 9.2% 9.3% 9.0% 6.
Slide 8: Strong Returns on Capital from Day One
Strong Returns on Capital from Day One Cash Return on Capital Invested (CROCI)(1,2,3) 47% 45% 44% 43% 35% 29% 28% ‐ LBRT 7 Year avg 25% 24% S&P 500 ‐ 7 Year avg (3) 19% 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 9: 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 10: Liberty ESG Frac Technology
Liberty ESG Frac Technology LOW‐EMISSION FLEETS Liberty Commitment to ESG Goes Far Beyond Emissions • Safe, efficient and fast fracs • Advanced traffic management • 50% OF LIBERTY TOTAL • Low‐emission fleets • Environmentally safe fluid systems HORSEPOWER IS LOW‐EMISSION • Dust and noise mitigation
Slide 11: 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 12: Appendix
Appendix NYSE: LBRT www.LibertyFrac.com
Slide 13: EBITDA and Adjusted EBITDA Reconciliation
EBITDA and Adjusted EBITDA Reconciliation 3 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended Year Ended 30‐Sep‐19 30‐Jun‐19 31‐Mar‐19 31‐Dec‐18 31‐Dec‐18 Net Income $ 18.8 $ 40.5 $ 33.9 $ 33.9 $ 249.0 Deprecia�on & Amor�za�on 42.3 40.4 38.4 34.2 125.1 Interest Expense 3.7 3.6 4.2 3.5 17.1 I
Slide 14: Calculation of Pre-Tax Return on Capital Employed
Calculation of Pre‐Tax Return on Capital Employed Twelve Months Ended September 30, 2019 2019 Net income1 $ 127,208 Add back: Income tax expense 21,294 Pre-tax net income $ 148,502 September September Capital Employed 30, 2019 30, 2018 Total debt, net of discount $ 106,238 $ 107,084 Total equity 803
Slide 15: Calculation of Return on Invested Capital
Calculation of Return on Invested Capital Twelve Months Ended December 31, 2018 2018 Net income 1 $ 249,033 Add back: Interest expense 17,145 Add back: Income tax expense 40,385 Earnings before interest and tax expense $ 306,563 Effective Tax Rate without giving effect to non- 24% controlling intere
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