Q2 2025 Liberty Energy Inc Earnings Call
Welcome to the Liberty Energy earnings conference call.
All participants will be in listen-only mode. Should you need assistance? Please signal a conference specialist by pressing the star key followed by zero.
Speaker Change: After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded, I would now like to turn the conference over to Angelie voriagh vice president of investor relations. Please go ahead.
Angelie Voriagh: Thank you Wyatt. Uh good morning and welcome to the Liberty Energy. Second quarter 2025 earnings call.
Speaker Change: Joining us on the call are logged chief executive officer and Michael stock Chief Financial Officer.
Before we begin I would like to remind all participants that some of our comments today, may include 4 looking statements reflecting, the companies view about future prospects, revenues expenses or process.
Speaker Change: These matters involve risks and uncertainties that could cause actual results to differ materially from our forward-looking statements.
These statements reflected the company's beliefs based on current conditions that are subject to certain risks and uncertainties that are detailed in our earnings release and other public filings,
Speaker Change: Our comments today also include non-gaap financial and operational measures.
Speaker Change: Based on gaap measures.
Speaker Change: Including Eva adjusted Eva adjusted net income adjusted net income for diluted share. Adjusted pre-tax return on Capital employed and cash return on invested Capital are not a substitute for gout measures and may not be comparable to similar measures of other companies. A Reconciliation of net income to IBA and adjusted IBA, net income to adjusted net income and adjusted net income per diluted share and the calculation of adjusted pre-tax return on Capital employed in cash return, on investment Capital. As discussed on this, call are available on our investor relations website.
Ron: I will now turn the call over to Ron.
Ron: Good morning everyone and thank you for joining us to discuss our second quarter, 2025 operational, and financial results.
Liberty delivered, an exceptional, second quarter amidst increased, macroeconomic uncertainty and energy sector volatility.
Revenue and adjusted evida increased 7% and 8% sequentially respectively, against an industry backdrop of softening completions activity.
Ron: This strong performance is a direct reflection of the outstanding contributions of our team.
Ron: Safely driving record efficiencies and increased utilization that more than offset industry pricing. Headwinds
Ron: Our outstanding performance, builds lasting customer loyalty and reinforces our position as the fleet of choice in a competitive market.
Ron: Tariff policies. The Accelerated unwind of OPEC plus production and geopolitical tension over renewed uncertainty in the energy sector.
Ron: During the quarter, we collaborated as partners with our customers to drive greater efficiencies, which is likely to grow our market share as activity, pulls back in the second half of 2025.
Ron: Amidst Market, pressures and near-term. Reductions in customer activity, we are planning to modestly. Reduce our deployed Fleet count and reposition this horsepower to support expanded demand from long-term partners for our simal Frac offering.
Ron: We are leveraging our full Suite of completion products and services, including Frac Wireline sand, chemicals, Logistics fueling services and talk to your engineering and diagnostic tools to drive increased engagement with our customers.
Ron: We have created a unique competitive position that allows us to stay agile in Dynamic markets.
Ron: We are excited to bolster our technology leadership with rapid progress on our Cutting Edge Digi, Prime enhancement with the industry's first variable speed natural gas, reciprocating engine,
Ron: This is truly the next wave of technology in fract Fleet design.
Ron: We now have 2 variable speed Digi. Prime units pumping in the field that have together completed over. 1700 hours of testing in the high pressure, environment of West Texas,
Ron: These units provide Precision, rate control, and increased torque in both operational and capital efficiency.
Ron: This latest technology technology advancement, expands our ability to offer a 100% natural gas solution.
Ron: Our successful development and field testing during the second quarter, reflect our commitment to continued innovation in high efficiency low emission Technologies.
3 years on from our first Digi Fleet deployment the results continue to exceed expectations.
Ron: The platform is delivering substantial measurable benefits. Most notably in the durability and performance of key components.
Ron: Is the reduced wear and tear on engine components compared to diesel.
Ron: Natural gas combustion. Produces fewer particulates extends oil life and significantly. Reduces engine stress.
Ron: Factors that contribute to engine, lifespans expected, to be 2 to 3 times longer than conventional Diesel and dual fuel powered systems.
Ron: We are already seeing this play out in the field.
Speaker Change: Did you Fleet power ends are lasting twice as long as conventional power ends while managing significantly higher load?
Speaker Change: Similarly, fluid ends are achieving twice the horsepower hours of their conventional counterparts.
Speaker Change: These early results are clear evidence of the operational and capital efficiency gains enabled by our Digi Fleet.
Speaker Change: They directly support our mission to deliver the lowest total cost of service to our customers. While setting a new standard for sustainable performance in the field,
Speaker Change: we also completed a successful field trial of the industry's first Last Mile sand slurry system.
Speaker Change: The system performed as designed consistently exceeding delivery volumes in conjunction with our proprietary water handling system.
Speaker Change: By transporting sand slurry via pipe. It is expected to reduce costs improve delivery, reliability, and decrease dust emissions and road maintenance for our customers.
Speaker Change: Growing demand from data, centers and Industrial users. Necessitates a collaborative approach to address. Power service requirements that increasingly surpass the traditional utility offering.
Speaker Change: During the second quarter, we announced 2 strategic alliances for the development of power facilities.
Speaker Change: In Pennsylvania, we are collaborating with range resources and Imperial land Corporation to provide Power services to Anchor. A strategically located Industrial Park Taylor for scalable development with Advanced access to Marcellus Natural Gas.
Speaker Change: In Colorado, our strategic alliance with altitude X, Aviation Group will support a proposed development at the Colorado, Air and Spaceport, powered by a liberty micro grid.
Speaker Change: These Partnerships address, the barriers that commercial and Industrial developers face including access to suitable, land integrated power Management Solutions and reliable fuel supply.
Speaker Change: Together, we offer a turnkey solution that combines on-site generation Market integration and infrastructure Readiness to meet the evolving needs of high demand users.
Speaker Change: Our recently announced collaboration with, oklo represents an exciting path towards delivering integrated Next Generation Power Solutions for sophisticated large load customers.
Speaker Change: This comprehensive approach combines the speed to Market of Liberty's, Forte, distributed natural, gas, power, and high performance load management solution to meet immediate demand.
Speaker Change: With a path to integrate grid, power management and base load small modular nuclear reactors with olhos Aurora powerhouses.
Speaker Change: this complete solution is designed for data centers, industrial sites, and utility scale facilities, providing rapid deployment, enhanced grid optimization and long-term price stability,
Speaker Change: This ultimately enables a seamless path to reduce carbon intensity without sacrificing reliability and flexibility.
Speaker Change: Liberty was an early investor in Olo committing 10 million in 2023 after evaluating companies and Technologies across the advanced nuclear space. We identified oklo innovative business model, small, and scalable design and differentiated technology. As an important strategic solution to meet The Growing Power demands of large-scale energy users.
Speaker Change: We are thrilled to be aligned at a pivotal moment where collaboration can drive meaningful impact.
Speaker Change: Together, we will deliver an unprecedented fully integrated power and grid management solution. Offering large-scale energy users a new level of reliability scalability and flexibility that simply hasn't existed before.
Speaker Change: While oil markets, continue to evolve in response to Dynamic global economic and geopolitical developments. North American production has remained relatively stable.
Speaker Change: As the world's largest supplier of oil and natural gas us, producers continue to play a vital role in delivering reliable energy to Global markets.
Speaker Change: Supporting domestic industrial activity and power demand. And providing strategic leverage in the geopolitical landscape.
Recent events, ranging from shifting, tariff policies to Rising Regional hostilities and mixed economic signals affecting Global oil, demand. Have not yet driven a meaningful. North American production response.
Speaker Change: Larger. Well, capitalized, producers, with strong balance, sheets and highly efficient operations, enjoy healthy. Well, economics, enabling them to whether commodity price volatility.
Created hedging opportunities further tempering supply side reactions.
Speaker Change: Producers are targeting a relatively flat production. Profile sustaining a baseline of Frac activity to offset the natural decline of producing Wells.
Speaker Change: Completions activity is anticipated to gradually slow during the second half of the Year, reflecting disciplined, Capital deployment, and contributing to market pricing pressures on services.
This slowdown in activity is expected to accelerate equipment, cannibalization and attrition, which fundamentally improves the supply and demand Dynamics, within the services industry over the cycle.
Speaker Change: Today's larger. Producers require a technically Superior offering to meet the rising demand for efficiencies and Engineering support that few service companies are positioned to deliver.
Liberty's, unmatched, portfolio. Bred integrated services, and Technical Innovation. Uniquely enable us to deliver greater value to our customers and drive out performance.
Speaker Change: As we look ahead, the Strategic Investments we have made in completions through Cycles. Enhances our ability to support customers in an evolving landscape.
Speaker Change: We are leveraging our integrated Suite of completion Services, Cutting Edge Technologies, industry-leading Partnerships, and the dedication of our exceptional, team to navigate Market uncertainties.
Speaker Change: Within our power business LPI. Delivers a robustly engineered end-to-end Energy Solution, uniquely integrating on-site, generation, and load management. ISO Market participation and Advantage retail supply, creating a comprehensive flexible approach. That redefines reliability, and cost efficiency in deregulated regions.
We're excited by lpi's Future growth and its ability to contribute to our track record of delivering Superior long-term returns while balancing disciplined investment with a strong balance sheet through Cycles.
I will now turn the call over to Michael to discuss our financial results and Outlook.
Michael: Good morning, everyone. I'm pleased to share that we achieved solid Financial results, despite the Ever Changing macro landscape of the second quarter, Liberty's activity levels climbed quarter over quarter, despite industrywide, Frac activity declines, as if During the period we saw a we saw a resulting increase in our market share a trend. We expect to continue in the back half of the Year, given our differential service offering and expected relative outperformance.
Michael: We also made significant progress in our power business cultivating long-term relationships that will drive future successes.
Michael: In the second quarter revenue of 20.
Michael: The second quarter revenue of 2025 Revenue, was 1 billion compared to 977 million in the prior quarter, our results increased 7% sequentially as higher activity in. Nearly all our business lines, more than offset pricing, headwinds and stops of conditions at the Parian, Sam markets.
Michael: Second quarter, net income of 71 million, compared to 20 million in the prior quarter adjusted, net income of 20 million compared to 7 million in the prior quarter and excludes 51 million of tax affected gains on investments.
Michael: For these elusive, net income per share was 43 cents compared to 12 cents in the prior quarter.
Michael: Adjusted net income for polluters. Share was 12 cents compared to 4 cents in the prior quarter.
Michael: Second quarter adjusted, even but I wasn't 181 million compared to 168 million in the prior quarter and 8% sequential increase.
Michael: General administrative expenses totaled. 58 million in the second quarter compared to 66 million in the prior quarter, which included a non-cash. Stock based compensation of 6 million.
Michael: Gni decreased 7 million from the prior quarter, primarily due to accelerated modified stock based compensation associated with Chris's departure in the first quarter.
Michael: Other income items totaled. 58 million for the quarter, inclusive of inclusive of 68 million on Gaines. Investments offset by interest expense, approximately 10 million.
Michael: Second quarter tax expense was 24 million, approximately 25% pre-tax. Income. Cash taxes, which 2120 million
and the second half of 2025, we now expect tax expense rate to be approximately 25% of pre-tax income and approximately no payment on cash taxes in the second half of the year,
Michael: Total liquidity at the end of the quarter including availability under the credit facility was 276 million, subsequently in July 2025.
Liberty expanded its credit facility in support of strategic growth and power generation with a 2020225 million increase in our aggregate, commitments to 750 million subject, to borrowing based limitations
Michael: Net, capital expenditures were 134 million in the second quarter, which included investments in digital. Did you freeze? Capitalized, maintenance spending LPI infrastructure and other products?
Michael: We had approximately 3 million of proceeds from asset sales in the quarter and 51 million of proceeds from the sale of equity securities.
Michael: We now expect total Capital expenditures for 2025 of approximately 575 million, approximately 75 million less than planned roughly evenly. Distributed between reduced completions capex and delays in delivery of power generation relative to expectations in January
Michael: Approach 2026, we will assess Market volatility and implications for completions capex while continuing to lean into the growth potential of our power business.
Michael: After a strong uptick. In the second quarter, we expect third quarter Revenue in ebida to soften sequentially. Many service providers that had already experienced white space, during the second quarter were quick to respond. Unconstructive, resulting in pricing headlines as a result. The macroeconomic developments. Over the last 3 months, we are withdrawing our full year ibida target range, provided in January and will provide additional color on our fourth quarter, expectations on our next earnings update,
It's about at the anticipated, Freight Market softness, where the opportunities ahead and our ability to create value, we are confident in our ability to demonstrate continued outperformance. We are working diligently alongside our customers to provide best-in-class service at engineered Solutions. The respond to evolving, well, economics and drive more intensive entrenched relationships with these customers. Our power opportunities continue to expand and we're excited by the relationships. We are building your position us to deliver comprehensive integrated long-term Solutions. We are deeply committed to generating Superior returns for our shareholders, over the Cycles, I will now turn the call back to the operator for Q&A after which Ron will have some closing comments.
Michael: Thank you. We will now open the lineup for your questions.
Speaker Change: To ask a question, you may press star then 1 on your touchtone phone. If you're using a speaker-phone, please pick up your handset before pressing the keys.
Speaker Change: if at any time your question has been addressed and you would like to withdraw your question, please press star then 2
Stephen Jenaro: Our first question will come from Stephen Jenaro with stifel, please go ahead.
Uh, thanks. Good morning everybody.
Stephen Jenaro: Um,
Stephen Jenaro: So, so 2 2 for me, that are probably connected and we get asked this a lot. So I'll ask you the when we think about the the power generation side of the business can, can you talk about 1? So what the current sort of supply chain looks like for for, for incremental capacity, and then, then the other question is sort of around, you know, kind of the potential for some of these assets to be contracted over the next couple of quarters.
Stephen Jenaro: Yeah, even uh, so let me tackle the first 1 um on a from a supply chain standpoint. They're definitely is particularly on the gas recept side, incremental capacity, available Beyond. Uh, for example, what we have already procured we, uh, we have had conversations with our supply base and, uh, you know, certainly, I think this is specific to Liberty and, and our relationships there, uh, have identified availability of meaningful additional capacity. We could significantly expand our or
Stephen Jenaro: Book for 2026. If we so desire to uh and have that uh, have those assets delivered over the latter part of 26 and headed into early 2027. So we we have that opportunity there. I think realistically, if we wanted to, we could probably more than double our order book for uh uh for 2026. If we chose to
Speaker Change: Uh, with respect to the second part of your question. Maybe. I, I I'll tackle it. And then, if Michael has anything to tack on from his standpoint, he certainly can, uh, we've been announced a number of larger Partnerships and of course, those are bigger developments. And so, as you think about things like permitting and and uh, whatnot, there, there's a timeline involved in that sort of stuff. And so those ones are going to be a little longer, as we think about asset deployment for something like that, you're probably talking about into 2027 for those uh, for those types of bigger Partnerships.
Employee assets on here in the back half of the year uh and I'd expect. We'll begin generation for that sometime in 2026.
Speaker Change: Great. Uh, thanks. And then
Just as a, as a follow on given, the given the aqua announcement, it, it sounds like, and 1 of the things that wall Street's trying to figure out is kind of this this sort of Bridge to something down the road, whether it's grid power, or smrs, or, or whatever it might be. But your, your relationship with aqua. It's, it's like, it's at least partially centered around creating this kind of long-term power solution until some of these smrs are are more active, which is probably 5 to 7, plus years. How do we think about that? Is that a long-term relationship as base load or could some of what you're doing? Be kind of included, as, as backup power as some smrs. Come out longer term.
I I I think you're generally thinking about that in the right direction, but I'd say even broader than that. Stephen uh, of course, we have this, we have this timeline Delta. We have customers who desire to bring their facility, industrial complex, whatever it might be on online sooner than might be possible. If they were going to wait for an SMR. And so, in the first phase of this, we do provide that bridge, uh, for startup and and continuous operations until we can deploy an SMR to the site. Once we get an
Speaker Change: SMR there though, you have to remember that nuclear is best suited to base load power to long-term steady supply of a continuous amount of kilowatts or megawatts.
Um if you think about a data center, you have their uh an asset that has highly variable load demand uh loads that can fluctuate by a significant percentage of total load over fractions of a second. And so, you need a mechanism for response to that.
Speaker Change: The partnership with natural gas reip and ultimately some more advanced technology you think capacity and super capacitance. Uh, it, it enables that variability in a and but as as a partnership, not as 1 or the other,
Speaker Change: The other Advantage is it with gas on top of nuclear, you rely on the nuclear for that base load, uh, capacity. But when and if the grid arrives, it also allows some flexibility in that regard. You could think about our ability with Fast Response, gas to be able to keep an eye on prices available on the grid to the extent, there's abundant wind and solar that day and and power prices are quite low. We could ramp down the gas and take advantage of that uh opportunistic pricing to the extent. The inverse is true and we have very, very high grid prices. We have the ability to to start up all of that gas capacity. Make sure we're taking care of the core customer but also putting some of that power out on the grid. So I think if if you view this as a very long-term partnership, you can see that there are some real
Economic opportunities with nuclear paired together with gas. Uh, not just in the near term but over decades to come
Great. Thank you for all the details.
Speaker Change: Of course.
Our next question will come from Scott Gruber with Citigroup, please go ahead.
Yes. Good morning. Um to realize you know good morning realized all the moving pieces on the completions, does it makes it makes it tough um but just want to get some more color uh, on the second half, uh, activity is down. But, you're redeploying some capacity, you're taking share, but pricing is a headwind, but just keep providing some more color and on, you know, the revenue trajectory and Ava trajectory and 3 q and, and what's the early look for 4 q? You know, will the
Speaker Change: The seasonality be worse than normal or are we in a situation where because customers are slowing today, you know, that may moderate the, the 4q decline. So just some some color there would be great.
Yeah, good question Scott. Um you know certainly we're coming off of an incredible high in Q2. We had uh we had a tremendous quarter uh this past quarter. But as you've noted, we've seen activities start to come down that's predicated by rig count falling and we've seen that happen over this quarter and continue into the start of the third quarter. We always from a completion standpoint like that by 3 or 4 or 5 months. And so we're expecting to see that in
Speaker Change: Were repurposing assets a little bit. We are taking down our Fleet count. But in with a desire to get to increase efficiency, our customers are seeking more, simult work.
And so we're repurposing that horsepower lowering overall Fleet count maintaining effectively, uh our horsepower utilization though, and running fewer larger fleets to meet that demand, uh, to drive efficiency in these in these environments. Now, of course with that additional white space as we look out in the back, half of the year, we're going to see some pricing headwinds as you noted. And certainly, we expect that to be a piece of the puzzle, as well at this point in time. I think we'd say probably low single digits pricing headwinds. Uh, and, and there's a little bit of context to that. Of course, we have relatively firm pricing with our Leading Edge technology. Think that Digi, Frac and Digi, Prime assets, that are out there. A little more challenged pricing with the, uh, older assets, particularly the diesel equipment. But average to cross the asset base, probably something in the low single digits range. As for Q4, probably a little early to tell at this point in time. I I, you know, certainly appreciate your thinking there and I hope that's how it plays.
Speaker Change: but I I think for us,
Just given how bumpy the market has been. And, um, we're, we're probably going to take a bit of a wait and see on Q4. And as we get a bit closer to that, we'll be able to provide some, uh, probably a clear Outlook there. Michael anything to add? No, I think you covered it. Well there, I think, you know, at least normal seasonality for Q4 coming off Q3, um, but we'll have some more clarity as we get as we get closer.
Speaker Change: All right, appreciate it. Um, and there was a to come back to the Oklahoma Alliance. It's certainly an interesting Alliance. Um, now, Oklahoma, uh, I believe has a bunch of mous for their reactors. So with the alliance you know, will you be targeting uh customers with mous? Are they clamoring for a kind of faster time to first power or will the alliance be mainly targeting uh, new customers?
Speaker Change: No. So when you think about it, the, you know, for, you know, with the Oklahoma powerhouses, these are large loads of, you know, very large customers, right? And so, these are multi-year development emo use, they have? So when you think about it, sort of how that customer wants to develop power over the next 5 to 10 years. So yeah, so definitely the Liberty Oklahoma Alliance will be, um, working on with those customer relationships. This allows the ability to bring power forward and having a more integrated and grid interconnected, uh, long-term solution, which are
Speaker Change: sort of solves, a lot of the problems when you think about,
You want to get to a long-term nuclear solution where people are still focused on a low carbon solution, um, and but do you want to be able to get to that point where we want to win the AI race now? And right? So the bringing of Liberties Forte generation and load management solution, which allows us to manage those incredible variable loads that are driven by the AI data centers that they want to be able to, they want to deal with. Also the seasonal variability due to the significant, uh, parasitic load of cooling of data centers. Right? So, therefore, you know, the ollo powerhouses are great for the base load portion of it and the Liberty gas will be a 20 plus year generating asset as part of that, integrated solution.
Speaker Change: So yes. So we will be working uh diligently to bring forward. A lot of this um data center development that has been talked about over the last year.
Speaker Change: I appreciate it. Michael. Thank you. I'll turn it back.
Speaker Change: Our next question will come from Keith Mackey with RBC Capital markets. Please go ahead.
Keith Mackey: Hey good morning. Um just maybe first start out on the uh the sand slurry pipe system. You you talked about in in the release, you just give us a sense of the operational advantages or cost differential that that uh type of sand Transportation provides versus the traditional methods.
Yeah, good question, Keith. It's, it's I, I won't get into the Weeds, on the numbers. But to give you some sense of how that difference might play out. I, I'll give you a very simplistic scenario. You can imagine an environment where there is a
System and have that saying ready to go for use on location? So, in that extreme case, we actually never put a truck on the road to handle sand.
Keith Mackey: uh, in in
Keith Mackey: maybe a slightly different example.
Keith Mackey: Probably 1 of the biggest challenges we have. When you think about the logistics for sand,
Keith Mackey: is is
Keith Mackey: The last portion of the last mile of delivery. So if you think about West Texas, the Parian area we might go and get sand from 1 of the mines in the Kermit, Monahan's Trend will load that on a truck. We'll drive down a highway for a good portion of the way but then ultimately, we end up on a ranch road.
Keith Mackey: A Ranch Road, that'll have a speed limit of 10 miles an hour. It is
Keith Mackey: Relatively well-maintained might have some cattle Gates along the way. That's a significant.
Uh, use of time for a truck, it might be half of the driving time even though it's only a fraction of the distance that they have to travel.
Keith Mackey: There's also a significant cost to the ENT to maintain that road when we have to deliver hundreds of trucks of sand up and down that each and every day, you can appreciate that. That's the most volume from a vehicle standpoint, going in and out of location. For the operation of the Frac, the slurry system allows us the opportunity to remove that entirely. We could have the sand trucks delivered, only on pavement, uh, and and thus maintain their round trip, efficiency maximizing the number of loads they get in today and minimize
Our per ton mile cost for that.
Uh and then transfer that sand into a slurry system to deliver. The rest of the way to location. We eliminate the truck traffic. The dust the noise that comes with that. We give the truckers a more efficient time frame and we basically remove all the road maintenance costs that come with all of that traffic on the road. And so we view that as The Economic Opportunity uh for the customers in this, it's not going to be a it's not going to be an application that works every place. But I think they're going to be a lot of opportunities in basins where it's going to make a lot of sense.
Keith Mackey: Got it. I appreciate that color. Um, appreciate the comments on the um, utilization softening and and, and the pricing as well. You know, cross the asset base. Uh, can you just give us a sense of
Keith Mackey: How the um active you know, consolidating some of your horsepower into fewer fleets.
Keith Mackey: Might change the earnings power of the business on a like, for like basis.
So, you know, would you expect that the simal Frac operations to have higher earnings power, or lower earnings power relative to your um prior asset footprint without any of these additional changes?
Keith Mackey: Yeah, yeah. There's a small change Dicky, but in relative terms, you know, we synthesis are priced on a basis of a return on the assets themselves, right? So, whereas, you know each you know, we'll have less fleets. Each Fleet will be slightly more profitable on a fleet basis but on a per horsepower basis. Um you're going to see some similarities and you're going to see some uh reduced average cost per level foot for the client. So it's a bit of a win-win for everybody.
Okay, thanks very much.
Our next question will come from Mark. Biyani with TD Cohen, please go ahead.
Mark Biyani: Hey, thank you. Um, I I wanted to ask a
Mark Biyani: Couple clarifications around sort of the, the outlook for the second half here. Um, Ron. You were talking about the draw down in activity. Um, maybe something on the order of mids single digits and then add a few percentage points of price to that. So, you know, it would appear maybe we're talking about something like 7 or 8%. Is that what you expect?
Mark Biyani: For a third quarter or is that, you know, kind of a mix of of third quarter and fourth quarter, and then I don't know Michael. If you want to try to help us with how to think about the the operating, Leverage, The decremental that we would see on that type of a revenue decline.
Speaker Change: You know, I said you broke up with just a bit in the middle there, on the scene. Sorry, Mark. Can you just, uh, you know, repeat the question. Just sure it seems like, um, between the activity and price, that, that you talked about. It sounds like maybe it's something like a 7 or 8% decline. Um, the question was, is that all in 3 Q or is it sort of spread over the second half? Um, and then, how much of a decremental margin should we be looking at recognizing, you know, there's some price and some mix. And lots of lots of moving pieces.
Speaker Change: Of 1. Another and that'll get you to probably some slightly different numbers than just the sum total of the 2.
Uh Michael do you want to provide some? I think you're right. I mean I think um if you look at if you look at those numbers and you get sort of a mid single-digit activity where you've got detrimental that are a little elevated um to your usual sort of, you know, 35% because of as we are changing out, our Fleet count and then you've got as Ron said, you know, some single digit pricing decline on average across the whole Fleet. I think you can get to the map and get into the numbers with that. Mark got it. And that and that's all happening in third quarter like this is essentially what you think for the the calendar third quarter,
Speaker Change: The general assumption is pricing stays relatively flat through, you know, sort of, we're seeing those drops now, you know, as best, we know it stays relatively flat through the fourth quarter and you'll see some seasonality but again we'll have a lot more clarity on that when we get to uh, the next earnings release. Yep. Yep. Okay it makes sense and then the other 1 um
I had, uh, was on, on the capex reduction. Um, you mentioned some of it was Frac and some of it was, um, some sort of slower delivery for the power equipment, I guess. Could you help us understand how much is each? And then, um, with the power piece, um, was that your decision or the vendor's decision? And what's the, what's the chance of seeing a further delays there?
Speaker Change: It's about split 50/50, you've got to remember, um, on the power side, really? That's just a firming up of delivery times. Remember, we gave you some numbers at the beginning of the year in January, right? So, you know, things sort of as far as those delivery times firming up between sort of November, December January and February of next year. So that's just a firming up of the actual delivery times out of the factory. So not a big number but you've got an artificial, you know, 12 month period we're talking about here and then on the Frac side yeah about 50% of that reduction comes out of the Frac side as we start to um camper down, capex on the completion side of the business as we as we move towards. Um, you know, when we see the market changing, as we continue to drive strong free cash flow out of that business as we go forward.
Speaker Change: All right, thanks very much. I'll turn it back.
Thanks Mark.
Speaker Change: Our next question will come from sarra pant with Bank of America. Please go ahead.
Sarra Pant: Hey, good morning, Ron and Mike.
Speaker Change: Good morning.
Uh Ron, maybe I'll I'll start with the big picture question, like you said in your prepared with my play it seems like even PS are solving for flat production. Uh right. So if we think about that new product, I think close to 20% of the world in North America. Then as you look forward and have your discussions with your customers, Mike, how do you think customers might budget for 2026? Uh, right this broad stroke, any high level thoughts on that?
Yeah, I'm certainly happy to provide my speculation on that, of course, uh, would love to be in the boardroom with them when they're making those decisions. But uh, my suspicion is that we are going to see the entps onshore North America. Generally try to hold production at level somewhere, close to where they are today. It's my opinion that it would be difficult to regain that market share in the foreseeable future. And so my sense is barring some meaningful economic dislocation. We're going to see them with a budget that has sufficient activity to hold production, close to where it is right now. We may see a modest decline, maybe it's maybe, we'll see production come off a 100,000 and I think at the outside 200,000 barrels a day, but, uh, I'm of the opinion that they will plan a budget accordingly, uh, that supports levels, uh, at at that point and
Speaker Change: Uh we'll see what actually happens going forward but but that's my expectation.
Right, right. No, I know it's too early to speculate but appreciate the thoughts around. Uh, and then 1 question, I had a follow-up on on, Mark's question on, uh, the power deliveries right? I understand your forming up the schedule, but I'm just trying to extrapolate what we heard on the baker, call earlier this week. They're booking a lot of photos. It seems like they're booking more orders than they have capacity right now, right? So I'm just trying to wonder if you at some point. Think about okay? Should we
At least get a slot, if not a, a firm order for deliveries Beyond 400 megawatt. Any thoughts on what lead times might look like on that.
Speaker Change: Meaningful capacity to our order for next year. We could do that and expect deliveries in the same time frame that we are uh, getting them today.
Okay. Okay, I got it and very quickly Mike of that 575 in capex that you gave us how much of that is maintenance.
Speaker Change: Oh, so the little bit, it's a bit below 200. So, okay.
Speaker Change: Okay, okay.
Speaker Change: Yep. Okay, I got it. Okay, it's on Mike. Thanks, I'll turn it back.
Speaker Change: Thank you.
Speaker Change: Oh, we're next question, we'll come from Grant Hines with JP Morgan. Please go ahead.
Hey, good morning, team.
Speaker Change: Hey, Grant not to have you on board.
Thank you. Uh, so despite you know, some of the, the sort of pricing pressure, um, that you kind of mentioned and release in, in the lower part of the market seems like still kind of getting strong economics on on the digi. Please rolling out. Uh, maybe how, how should we just think of sort of go forward, Cadence on on Digi fleets, as we think about, you know, power cap, ex largely, you know, broken for next year and I guess any flexibility kind of on that side.
Speaker Change: Uh, so I think Grant, as we based on what we know today, we're going to finish out our our Digi program for 2025. Those, those fleets are committed to customers. They have a home to go to, at contractual terms. That we are very, very happy with. But as we look out into 2026, I think, given our Outlook today, there's a reasonable chance.
We will, uh, we will reach range to effectively maintenance capex on the completion side of the business that we would not, uh, deploy any additional digit capacity, uh, next year.
Speaker Change: subject to change if, uh, market conditions change and we see, uh, we see a reason to make a move there, but at this point in time, I think we'd say that's our our most likely Outlook
Speaker Change: Yeah, and then also, we've, we've heard from some peers, just on, you know, some mac gas activity being relatively stable, obviously, I think some mixed cells, but, but maybe, you know, with LG facilities coming online, maybe seeing some early demand signals I guess. Can you just speak to this and and maybe provide color? If any of the reality?
Equipment you we're speaking about is, is kind of leveraged to gas bases. Thanks.
That's a, that's a great Point. Uh, certainly not something we had mentioned, but we are in the fortunate position of being underweight puran, relative to rig count there and overweight hanesville relative to rig count there today. So, uh, we are doing a, uh, uh, we are doing a good amount of work in the, in the hanesville, we're seeing strong support there and, and, uh, expect to see that continue through the latter part of the year, at least as best as we can tell today. So it has been, uh, it has been a Tailwind uh, relative to
Speaker Change: The other parts of, uh, of our operating platform.
Okay.
Our next question will come from Derek poder. With Piper Sandler, please go ahead.
Speaker Change: Hey, good morning, Ron Mike.
Speaker Change: Good morning. Hey, did Eric?
Speaker Change: Um I guess I just wanted to ask on the attrition comments you guys had in the in your opening statement. Um you know, maybe could you help us out understand, you know what you guys expect? As far as removing Diesel from the market and you just answered the last question. Um, not not replacing much more Digi, if we look into next year, but maybe just help us understand the supply, demand dynamics of the industry, and what you expect as far as diesel being removed and how that can help the supply and demand uh, picture moving forward.
Speaker Change: Yeah, I I think if you, if, if you think about the market and and even the commentary you've heard up to this point in time, I think you'll hear very consistently that there is strong demand for next generation capacity, and even the latest in dual fuel technology, specifically, tier 4 and then demand starts to fall off as you work your way down there. So when we think about capacity that's going to end up with meaningful white space and and ultimately probably sidelined over the back half of this year and maybe even headed into next year that's primarily going to be tier 2, diesel capacity. Maybe even a little bit of tier 2 older tier 2, dual fuel stuff. But I think the way you want to think about that is
as that stuff ends up on the sidelines, particularly given a challenge economic environment like this, for those who are
Speaker Change: Maybe, uh, finding themselves in a challenge cash flow position. The easy answer there is to cannibalize those assets for components to keep the core of the fleet running. You use the transmission, you use the power in you. Use the fluid in, you use, whatever might be helpful on there and ultimately you get to a place where that asset really just isn't worth bringing back into service. And so while we use 10%, as kind of the average attrition rate on an annual basis
Speaker Change: Probably falls down into the mid single digits, maybe even and then you get to years like this, where the economics are certainly more Challenge and it's our position that that number will climb up probably into the mid- teens and that we're going to see an accelerated rate of attrition over the back half of this year and into 26. That ultimately sets up sets us up for a much stronger rebound. A much tighter Market much quicker than you might anticipate when things start to turn around.
Speaker Change: No, that that's helpful and encouraging. Um, maybe just going back to the to the slurry pipe, you know, pretty interesting technology. Um, can you help us understand? Maybe the, uh, the total adjustable Market there is that just a Midland solution in the Parian given where the, uh, you know, Mobile Mini minds are the wet sand or could you move over to the Delaware or could there be anything outside of the Permian that we should be thinking about?
I I think all of the above are, are certainly true. There's no reason we couldn't deploy it in the Delaware as well. There's definitely proximity mines over their, their, uh, there might be advantageous in terms of crossing state lines or whatever. The case might be. I think there are opportunities across the Permian Basin. I, I wouldn't rule out a place like, the hanesville as a potential opportunity. We use wet sand there and um, uh, there may be a case where it makes sense in that environment as well. Certainly, not something you're going to run in the dead of winter of course, so that probably removes uh, some amount of the geography. But, but outside of that it's it's it's got real application over.
Speaker Change: The right, uh, sort of distances.
Speaker Change: Got it. Now that makes sense. Great. Uh, thank you. I'll turn it back.
Speaker Change: Thanks.
Speaker Change: Our next question will come from Eddie Kim with Barclays. Please go ahead.
Eddie Kim: Hey, good morning. Um, just wanted to uh,
Ask about the decision to to reduce your Fleet counter and redeploy. Some of the those fleets uh to larger customers with with simal Frac operation. It is that because customers right now are certain customers are just kind of stopping completions uh activity. All together maybe in response to the uh, the decline in the oil directed recount, we've seen over the past 2 months, or is it more? Because they're asking for pricing concessions at levels that are maybe unsustainable for your return threshold just any, any color there would be great.
There's probably a little bit of both of those. I I think you could definitely find some smaller operators who are choosing to just stand down completions activity? At this point in time. And there there has been some reductions in activity, but there's also a real pricing challenge. I, I think we, we had some, we had some folks in the space who were facing already a calendar with a bit of white space on it into Q2 and they responded. We would argue unconstructed in that regard uh with respect to price. And so we've seen some real degradation from a pricing standpoint in the market. And and in some cases that
Eddie Kim: Has us choosing not to uh participate in that and so we would rather reallocate those resources in support of our strong long-term Partners uh and help them Drive efficiencies through things like simult, that that are ultimately a win for both of us. Uh, in this time
Eddie Kim: Understood understood. And then just shifting over to the the Oklahoma, strategic Alliance. You announced earlier this week. I know it's really early days, uh, but just based on your understanding of their sort of project timeline today. When do you think is the earliest you could see revenue from from this partnership? Is it, is it 2028 or maybe 2030 just, just curious, uh, on your best estimate? Their
Eddie Kim: Really, when you think about this 1880, it's the same with any um, data center development, right? What this does is it allows the, um, roll out of power, early generation power to Data Centers as they build out in, um, stages, right. And so I'd say you probably would see revenue on any of these large data centers, sort of coming into 27 being anything up, significance, right? And then from the nuclear powerhouses, you're probably in the early 30s um when they are also generating, right? So you're going to build out your initial natural gas generation. First think of it in stages and then add in your nuclear base load over time. At the same time the nuclear base load arrives will probably, you know, on average, get close to having Grid in connection.
Eddie Kim: A road map to getting to some nuclear power but with our able to actually execute um within a 18-month period.
Eddie Kim: From the first from signing, a contract to powering your data house.
Got it, understood very helpful. Thank you very much. I'll turn it back.
Thank you, Eddie.
Speaker Change: Our next question will come from Jeff LeBlanc with tph please. Go ahead.
Speaker Change: Uh, good morning, Ron and team. Thank you for taking my question.
Speaker Change: The only question is good morning. Uh, the 1 question I did have is a mechanically uh these Fleet repositioning. Uh are you taking diesel assets to to support gas, burning assets or will the assets be upgraded before being redeployed or I guess separately? Are you redeploying some of your natural gas burning assets to the SEMO frack?
Speaker Change: So, I, we're not, we're not upgrading any any assets at this point in time. Any of the older, diesel equipment is headed for a retirement at at some point in time, when that makes the most sense or potentially. I, I think ultimately, if there's a home for that overseas, there's, uh, it may may find its way there, but, uh, but for us, we're not taking any of the tier 2 Diesel and turning that into tier 2 dual fuel at this point. In time, our expectation is that our asset base over the long term will consist primarily of Digi with some tier 4, dgb back stopping that. And so as we think about the asset redeployment that's just looking at the needs of
Of our customers and making sure that we have the right Assets in the right place to support, uh, their, their long-term needs. And so the operations team, the sales team working closely together to make sure that as we do this, uh, we do this in a fashion that sets us up, uh, for the best possible success over the coming uh, months and years.
Speaker Change: As a speed to move to the similar track as well. They'll be supporting in the short term as some of the busy flat, the the rest of the day gets rolled out of the balance of this year. So it allows us to get to the signal Freight quicker. Um, but ultimately, that's a temporary solution that will be replaced by the digi that come out in the second half of the year.
Speaker Change: Thank you very much for the call. I'll hand the call back to the operator.
Speaker Change: Thanks, thank you. Our next question will come from Tom Curran with C Port. Please go ahead.
Good morning everyone. Um,
Tom Curran: on the Cs side when it comes to the track operations, engineering and diagnostic tools, which offering seem to be making the most difference when it comes to sharing traction or uh you know, your ability to defend pricing here and there
Tom Curran: Oh well, there's a there's there's a few things that play into that and it really depends who the customer is that you're talking about. We have a range of customers who all have
Different end goals or or different places where they need support or desire technology in some cases and I'd say, particularly for the larger portion of our customer base. Think those majors in large Independents, it is generally a drive towards Next Generation technology on location backs, stopped by a strong safety record, uh, great supply chain and some real Innovations around the software side of things. So as we continue to advance our, uh, Master rate control system, which we've been running in the field for more than a few years. Now, uh, these things all are driving efficiency on location getting jobs, done quicker and and just enabling them to get to a lower cost for a barrel of oil producer and mcf of gas produced.
We have other partners though who lean heavily on us for our engineering support. So if you think about some of the smaller operators that are out there uh that maybe don't have all of that.
Uh fract design expertise and capability inside of their shop. Uh, they are leading very, very heavily on us particularly in a time. Like, this 1 thing, we always like to remind customers is that Frac designs. Do not remain steady the best possible. Frac design to put in a well changes, depending on the economic conditions of the day might be that it makes more sense to to pump a little more sand, particularly given where sand prices are today and it might have 24 months ago that there's a better return on that. And so we have customers who lean heavily on us from an engineering standpoint,
Tom Curran: To work through that optimization with effort with them. As 1 of the only companies pra companies left that still maintains a strong engineering and and geosciences team. We're the go-to partner for things like that, so it it varies by customer uh what enables us to to retain that strong partnership and ultimately earn a bit of a premium working with that customer.
Tom Curran: Electricity into the wholesale market and then compared to img's Legacy pit, Mike are good. You know, I I know that this past proposal and vests is a system that initially will be nearly twice, the size at 45 megawatts versus pits 23.
Speaker Change: Cognizant of how early it is on the timeline, but what are some of the major similarities and contrasts you would anticipate relative to the pit micro grid. And, and in part where I'm going with this is, is there an effort, um, to move towards and be able to demonstrate, uh, some degree of standardization that LPI will be able to offer?
Speaker Change: Yeah, I mean, so if the if you think about the pit Market grid, right? That is based around a modular um, path generation solution, right? Each 1 of those, powerhouses comes on 3, different trucks and within a 24-hour period, I would be cranked in into position and so, you know, and then there's about 6 weeks of, you know, total commissioning after that. So you could get to the fact of about a 2 week. You know, once you've done all your site work and your your footings Etc you can get to about a sort of you know an offload situation where you're sort of about 2 to 3 weeks of construction and connection with all the quick quick connects. And then you get to sort of about a 6 week to 8 week commissioning cycle. All right? So it's a very standardized modular process. We're bringing that to all of the products we do. Um, and so very much about the cast problem
Speaker Change: Like will be based around that, similar sort of solution. Now, there could be a combination of different generating Technologies, right? You know, whether it's the, uh, yoker or the cat, you know, the yolkers that we run at the pit solution or the caterpillar ones, which are a slightly smaller 1 that we've used as a base for our bra, uh, which are about a 2 and a half megawatt.
Speaker Change: As a base load, but very much the same modular construction, which takes a lot of the risk out of the construction. A lot of the everything is done and tested in a factory and therefore, you take a lot of the need for trades out of the field. So also reduces significantly, reduces the cost of the cost and time of implementation. So, very much, you know, the cash product, uh, project, um, or even the data center projects that we are, that we are bidding, you know, at the moment very much a based around that solution, think of it as like, you know, modular Lego blocks and we can build you a power plant at any given size, right now, as we get up into the larger and larger, um, projects, we may use a slightly larger power generation unit than the 4.3 in Barker or the 2.5k. We may move up to the, you know, a sort of a 10 megawatt and I'm it eventually. We will use package to package turbines depending on your fuel source and, you know, power density requirements. But ultimately, the philosophy is very much what you see at the Pittsburgh airport that.
Speaker Change: Very much as much as possible package in a factory and brought to site to speed the implementation integrated with the grid. Most definitely, uh, the October and Cass will actually be most likely, a sort of a sort of local utility. Um, you know, probably the Adams County side of that.
Speaker Change: Of that organization. And so yes, we will be able to for all of our um, industrial sites that we're developing. We will be able to wheel power onto the grid and provide provide local good support into the wholesale Market.
Speaker Change: Got it.
Speaker Change: Appreciate the color Michael.
Speaker Change: Thanks Bob.
Our next question will come from John Daniel with Daniel Energy Partners. Please go ahead.
John Daniel: Hey guys, thanks for keeping the call. Open for me uh Ron sort of an Ops question for you historically, we always thought of the handheld as being like, terrible wear and tear on the Frac equipment. And I'm just curious, does that seem weird and Tara effect applied to the new generation technology like your Digi fleets?
Uh, John it, you're you're absolutely right. That is a very high intensity environment. It is high rate, high pressure work and uh, uh, there are only some who are successful in deploying technology there and and being a successful partner, we have made tremendous strides there. And and certainly, we have seen to this point in time with our next Generation assets. Just a real change in in assets.
John Daniel: instead, we have from the ground up an asset designed to handle that rate and pressure and then in parallel with that, of course we've been working very, very hard on the
Asset monitoring digital twin and and AI oversight of our entire asset base. And I think that has also played significantly into our ability to extend the life of these components. We we have the hive here in in just Northeast of Denver staffed, with a team, 24 hours a day and more, maybe more importantly than that, they are supported by a sophisticated set of algorithms. That's monitoring the second derivative of every data stream that we collect off of an engine transmission. Power end or pump, uh, and all the other components that are out there, and we are finding things before they become an issue. We are able to, uh, we were able to see that change in a trend. Identify that to the crew in the field, make a minor repair instead of a major repair and, and that really has gone a long way in terms of extending asset life as well. So I'd say,
John Daniel: You layer that on top of a Next Generation fit for purpose asset and you get these uh incredible performance improvements that we have seen.
Okay, that's all I had. Thank thanks for including me.
Speaker Change: All right. Thanks John. Thanks John.
Speaker Change: Our next question will come from Dan cutts with Morgan Stanley. Please go ahead.
Dan Cutts: Hey thanks. Good morning. Thanks for uh, squeezing me in.
Speaker Change: um,
Speaker Change: Morning. So maybe just on the going back to the international opportunities. Know, you guys are doing work in Australia. Um I for any of kind of the future International deployments of some of the tier 2 assets. Um, as you think about those opportunities is, is Australia. The only Market that you guys are looking at or looking at some of the other unconventional basins, like Argentina, or or Middle East. Um, and then I'm not sure if you Quantified this before. But anything you could share on on kind of the the cost to ship a fleet internationally and and kind of Staff up and and deploy that Fleet. And um I guess any kind of associated upgrade costs just wanted to
Speaker Change: check in and get a better picture on the international opportunities. Thanks.
Speaker Change: Yeah, of course we continue to look at all the opportunities around the world and we get inbound from all over the places. You can imagine the Middle East is is a common spot where, where we get inquiries from, uh, Argentina has been on the radar screen of late given, uh, the change in government there and the success that has, that has brought in the country, uh, and as a result in expected, real expected uptick in activity, in the vakama. So we continue to keep our eyes on all of these opportunities. And I would say, even over and above, uh, uh, that opportunities for growth in in Australia as as another place. So we're on the ground there. Of course, we've got our Fleet there, we're doing the work in the beetaloo Basin, but Australia is recognizing that that they need more gas and they need more gas onshore Australia.
Speaker Change: That's leading to.
Speaker Change: Some support for unconventional work, not only in the beetaloo, but but elsewhere, particularly in, in the Queensland area. So we we are, we are engaged in all of those conversations and when we see opportunities that make sense, we are certainly prepared to take some of that capacity and go to work there.
Speaker Change: uh,
Speaker Change: I I say as to the cost obviously, that's going to depend on where we go going to a country, like Australia comes with very stringent requirements, around importing, an asset. There you are not allowed to have a speck of dust on a piece of equipment to get through customs when you arrive in Australia. And so,
Those assets were completely refurbished. They were scrubbed down, effectively with the toothbrush to make sure that they were absolutely spotless when we arrived in Australia and that we ran into no Customs issues there. Of course, that's not the same case depend in all the environments, we might visit. So so you're going to see that number vary a fair bit but you can you you could be rest assured that we are not. Uh we are not a company that's going to send a substandard fleet of equipment someplace to do work. We go there to be the best at what we go we do we go there to excel at what we deliver and so we're going to make sure that we put a fleet on the water that uh, uh, that is up to the standards of of the work. We're going to be doing there. So there's an investment that goes with that, for sure. Obviously not the cost of a new Fleet, but but there's uh, there's a refurbishment cost that's attached to that.
Speaker Change: The other Capital allocation priorities that you have, or is, you know, is maybe kind of the balance sheet, a governor on shareholder returns. Like you guys are open to it if there's some excess cash after the other, um, you know, Capital calls have been satisfied. Just how do you think about share BuyBacks? Um, at this point?
Speaker Change: Yeah, I I of course we think about share BuyBacks the same way all the time, which is an opportunity opportunistic approach to them when the greater the dislocation between our stock price and what we view as the intrinsic value of the company. The more app we are to uh, to be in uh involved in the market. The last quarter of course a pretty volatile 1 and and we wanted to make sure that we had our feet underneath of us that we had a good look, uh, ahead as to what was coming and that we were well set up and well positioned to navigate that uh whatever it might be and to take advantage of any opportunities that might come in front of us. Of course, we've been opportunistic. Uh both in the 1516 downturn. And in the co downturn, we had tremendous opportunities there that really took the company to another level. We want to be ready for those as such that they might appear. And so, yeah, we we, we took a, uh, we took a short Gap in, uh, uh, in the second quarter just to stand back and and understand the landscape. Make sure that the balance sheet was well set up for whatever the future would hold. And, uh,
Speaker Change: And, you know, as we look forward, of course, we'll continue to look at our stock price and whether or not that is the best use of, uh, of some cash as as we move through the balance of the year.
Speaker Change: Michael know, I just say, 1 of the key things there is that, you know, investing in growth is, you know, has really got a great potential to increase our long-term EPS power of Liberty's earnings, and that really drives the greatest value over time. And we've got some great and exciting growth opportunities in front of us.
Great. Thank you both. I'll turn it back.
Dan Cutts: Thank you, Dan.
Speaker Change: This concludes our question and answer session. I would like to turn the conference back over to Ron for any closing remarks.
Dan Cutts: Thank you.
Global oil demand grew by 0.7% last year, supplying 34% of global energy needs Global natural gas demand grew by 2 and a half percent last year, supplying 25% of global energy needs.
Dan Cutts: Electricity demand grew by 4% outpacing total Energy System, demand growth.
We have a similar power story unfolding here in the United States driven by growth in Ai and a reshoring of manufacturing.
Dan Cutts: Recognizing that we had a bigger role to play in, delivering on our mission, to better human lives. We changed our name from Liberty oil field services, to Liberty Energy in April of 2022.
Dan Cutts: we subsequently made investments in small modular nuclear through Olo, in enhanced geothermal through fervo and in batteries through Natron
Dan Cutts: We have worked hard to ensure that the critical role oil and natural gas play in the global energy stack is recognized and that their continued development is supported by The Regulators, the public and the financial community and we are committed to continuing that important work.
Dan Cutts: Unfortunately our electricity grid has suffered due to similar challenges misguided policy markets distorting Financial incentives and push back against major infrastructure. Build
Dan Cutts: But with that comes opportunity.
Dan Cutts: Where energized by this next chapter of the Liberty Energy story and as a champion of abundant reliable power to meet the growing needs for electricity in the US. And as a key provider to Consumers of the advanced distributed power Services necessary to support their business. We look forward to the years ahead. Thank you for joining us on the call today.
Speaker Change: Conference is now concluded. Thank you for attending today's presentation. You may now disconnect