Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 17, 2023 | |
Class of Stock [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-38081 | |
Entity Registrant Name | Liberty Energy Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 81-4891595 | |
Entity Address, Address Line One | 950 17th Street | |
Entity Address, Address Line Two | Suite 2400 | |
Entity Address, City or Town | Denver | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80202 | |
City Area Code | 303 | |
Local Phone Number | 515-2800 | |
Title of 12(b) Security | Class A Common Stock, par value $0.01 | |
Trading Symbol | LBRT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2023 | |
Amendment Flag | false | |
Entity Central Index Key | 0001694028 | |
Current Fiscal Year End Date | --12-31 | |
Common Class A | ||
Class of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding | 170,393,226 | |
Common Class B | ||
Class of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding | 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 31,667 | $ 43,676 |
Unbilled revenue (including amounts from related parties of $29,002 and $13,854, respectively) | 201,907 | 175,704 |
Inventories | 201,069 | 214,454 |
Prepaid and other current assets (including amounts from related parties of $6,426 and $0, respectively | 121,985 | 112,531 |
Total current assets | 1,073,915 | 956,673 |
Property and equipment, net | 1,546,187 | 1,362,364 |
Finance lease right-of-use assets | 53,461 | 41,771 |
Operating lease right-of-use assets | 96,407 | 97,232 |
Other assets (including amounts from related parties of $0 and $11,799, respectively) | 133,292 | 105,300 |
Deferred tax assets | 21,240 | 12,592 |
Total assets | 2,924,502 | 2,575,932 |
Current liabilities: | ||
Accounts payable (including payables to related parties of $0 and $2,629, respectively) | 368,723 | 326,818 |
Accrued liabilities (including amounts due to related parties of $0 and $730, respectively) | 265,340 | 276,819 |
Income taxes payable | 52,291 | 2,294 |
Deferred revenue | 19,335 | 3,859 |
Current portion of long-term debt, net of discount of $0 and $730, respectively | 0 | 1,020 |
Current portion of finance lease liabilities | 10,926 | 11,393 |
Current portion of operating lease liabilities | 27,615 | 27,294 |
Total current liabilities | 744,230 | 649,497 |
Long-term debt, net of discount of $0 and $540, respectively, less current portion | 288,000 | 217,426 |
Deferred tax liability | 1,067 | 1,044 |
Payable pursuant to tax receivable agreements | 114,842 | 118,874 |
Noncurrent portion of finance lease liabilities | 33,765 | 22,490 |
Noncurrent portion of operating lease liabilities | 68,657 | 69,295 |
Total liabilities | 1,250,561 | 1,078,626 |
Commitments & contingencies (Note 14) | ||
Stockholders’ equity: | ||
Preferred Stock, $0.01 par value, 10,000 shares authorized and none issued and outstanding | 0 | 0 |
Additional paid in capital | 1,146,130 | 1,266,097 |
Retained earnings | 531,974 | 234,525 |
Accumulated other comprehensive loss | (5,867) | (7,396) |
Total stockholders’ equity | 1,673,941 | 1,495,017 |
Non-controlling interest | 0 | 2,289 |
Total equity | 1,673,941 | 1,497,306 |
Total liabilities and equity | 2,924,502 | 2,575,932 |
Class A, $0.01 par value, 400,000,000 shares authorized and 170,393,226 issued and outstanding as of June 30, 2023 and 178,753,125 issued and outstanding as of December 31, 2022 | ||
Common stock, par value $0.01 | 1,704 | 1,788 |
Class B, $0.01 par value, 400,000,000 shares authorized and none issued and outstanding as of June 30, 2023 and 250,222 issued and outstanding as of December 31, 2022 | ||
Common stock, par value $0.01 | 0 | 3 |
Nonrelated Party | ||
Accounts receivable | 510,125 | 410,308 |
Related Party | ||
Current assets: | ||
Unbilled revenue (including amounts from related parties of $29,002 and $13,854, respectively) | 29,002 | 13,854 |
Prepaid and other current assets (including amounts from related parties of $6,426 and $0, respectively | 6,426 | 0 |
Other assets (including amounts from related parties of $0 and $11,799, respectively) | 0 | 11,799 |
Current liabilities: | ||
Accounts payable (including payables to related parties of $0 and $2,629, respectively) | 0 | 2,629 |
Accrued liabilities (including amounts due to related parties of $0 and $730, respectively) | 0 | 730 |
Accounts receivable | $ 7,162 | $ 0 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Unbilled receivables, current | $ 201,907 | $ 175,704 |
Prepaid expense and other current assets | 121,985 | 112,531 |
Other assets | 133,292 | 105,300 |
Accounts payable, current | 368,723 | 326,818 |
Accrued liabilities, current | 265,340 | 276,819 |
Current portion of long-term debt, discount | 0 | 730 |
Long-term debt, discount | $ 0 | $ 540 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000 | 10,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Deferred tax assets | $ 21,240 | $ 12,592 |
Related Party | ||
Unbilled receivables, current | 29,002 | 13,854 |
Prepaid expense and other current assets | 6,426 | 0 |
Other assets | 0 | 11,799 |
Accounts payable, current | 0 | 2,629 |
Accrued liabilities, current | 0 | 730 |
Nonrelated Party | ||
Allowance for bad debts | $ 884 | $ 884 |
Common Class A | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 170,393,226 | 178,753,125 |
Common stock, shares outstanding (in shares) | 170,393,226 | 178,753,125 |
Common Class B | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 0 | 250,222 |
Common stock, shares outstanding (in shares) | 0 | 250,222 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue: | ||||
Revenues | $ 1,194,988 | $ 942,619 | $ 2,457,065 | $ 1,735,389 |
Operating costs and expenses: | ||||
Cost of services (exclusive of depreciation, depletion, and amortization shown separately below) | 833,456 | 713,718 | 1,721,872 | 1,383,737 |
General and administrative | 58,034 | 42,162 | 111,070 | 80,480 |
Transaction, severance, and other costs | 985 | 2,192 | 1,602 | 3,526 |
Depreciation, depletion, and amortization | 99,695 | 77,379 | 194,096 | 151,967 |
(Gain) loss on disposal of assets | (3,660) | (3,436) | (3,173) | 1,236 |
Total operating costs and expenses | 988,510 | 832,015 | 2,025,467 | 1,620,946 |
Operating income | 206,478 | 110,604 | 431,598 | 114,443 |
Other expense: | ||||
Loss on remeasurement of liability under tax receivable agreements | 0 | 168 | 0 | 4,333 |
Interest income—related party | (350) | 0 | (723) | 0 |
Interest expense, net | 6,825 | 4,862 | 15,089 | 9,186 |
Total other expense | 6,475 | 5,030 | 14,366 | 13,519 |
Net income before income taxes | 200,003 | 105,574 | 417,232 | 100,924 |
Income tax expense | 47,332 | 235 | 101,815 | 1,065 |
Net income | 152,671 | 105,339 | 315,417 | 99,859 |
Less: Net income attributable to non-controlling interests | 0 | 183 | 91 | 79 |
Net income attributable to Liberty Energy Inc. stockholders | $ 152,671 | $ 105,156 | $ 315,326 | $ 99,780 |
Net income attributable to Liberty Energy Inc. stockholders per common share: | ||||
Basic (in dollars per share) | $ 0.88 | $ 0.56 | $ 1.80 | $ 0.54 |
Diluted (in dollars per share) | $ 0.87 | $ 0.55 | $ 1.76 | $ 0.52 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 173,131 | 186,719 | 174,840 | 185,367 |
Diluted (in shares) | 176,225 | 190,441 | 178,837 | 190,623 |
Nonrelated Party | ||||
Revenue: | ||||
Revenues | $ 1,142,757 | $ 941,370 | $ 2,375,077 | $ 1,711,851 |
Related Party | ||||
Revenue: | ||||
Revenues | $ 52,231 | $ 1,249 | $ 81,988 | $ 23,538 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 152,671 | $ 105,339 | $ 315,417 | $ 99,859 |
Other comprehensive income (loss) | ||||
Foreign currency translation | 2,000 | (3,012) | 1,530 | (1,956) |
Comprehensive income | 154,671 | 102,327 | 316,947 | 97,903 |
Comprehensive income attributable to non-controlling interest | 0 | 177 | 92 | 80 |
Comprehensive income attributable to Liberty Energy Inc. | $ 154,671 | $ 102,150 | $ 316,855 | $ 97,823 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Total Equity | Total Stockholders’ Equity | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Non-controlling Interest | Common Class A | Common Class A Common Stock | Common Class B | Common Class B Common Stock |
Beginning balance (in shares) at Dec. 31, 2021 | 183,385,000 | 2,632,000 | |||||||||
Beginning balance at Dec. 31, 2021 | $ 1,230,439 | $ 1,213,242 | $ 1,367,642 | $ (155,954) | $ (306) | $ 17,197 | $ 1,834 | $ 26 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Exchanges of Class B Common Stock for Class A Common Stock (shares) | 2,306,000 | (2,306,000) | |||||||||
Exchange of Class B Common Stock for Class A Common Stock | 0 | 15,817 | 15,817 | (15,817) | $ 23 | $ (23) | |||||
Offering Costs | (564) | (564) | (564) | 0 | |||||||
Other distributions and advance payments to non-controlling interest unitholders | 924 | 924 | |||||||||
Stock-based compensation expense | 11,014 | 10,931 | 10,931 | 83 | |||||||
Vesting of restricted stock units (shares) | 1,168,000 | ||||||||||
Vesting of restricted stock units | 0 | 20 | 8 | (20) | $ 12 | ||||||
Tax withheld on vesting of restricted stock units | (9,700) | ||||||||||
Tax withheld on vesting of restricted stock units | (9,700) | (9,700) | 0 | ||||||||
Currency translation adjustment | $ (1,956) | (1,956) | (1,957) | (1,957) | 1 | ||||||
Net income | 99,859 | 99,859 | 99,780 | 99,780 | 79 | ||||||
Ending balance (in shares) at Jun. 30, 2022 | 186,859,000 | 326,000 | |||||||||
Ending balance at Jun. 30, 2022 | 1,330,016 | 1,330,016 | 1,327,569 | 1,384,134 | (56,174) | (2,263) | 2,447 | $ 1,869 | $ 3 | ||
Beginning balance (in shares) at Mar. 31, 2022 | 185,761,000 | 340,000 | |||||||||
Beginning balance at Mar. 31, 2022 | 1,233,666 | 1,231,261 | 1,389,987 | (161,330) | 743 | 2,405 | $ 1,858 | $ 3 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Exchanges of Class B Common Stock for Class A Common Stock (shares) | 14,000 | (14,000) | |||||||||
Exchange of Class B Common Stock for Class A Common Stock | 0 | 130 | 130 | (130) | |||||||
Offering Costs | (502) | (502) | (502) | ||||||||
Stock-based compensation expense | 4,201 | 4,194 | 4,194 | 7 | |||||||
Vesting of restricted stock units (shares) | 1,084,000 | ||||||||||
Vesting of restricted stock units | 0 | 12 | 1 | (12) | $ 11 | ||||||
Tax withheld on vesting of restricted stock units | (9,676) | (9,676) | (9,676) | ||||||||
Currency translation adjustment | (3,012) | (3,006) | (3,006) | (6) | |||||||
Net income | 105,339 | 105,156 | 105,156 | 183 | |||||||
Ending balance (in shares) at Jun. 30, 2022 | 186,859,000 | 326,000 | |||||||||
Ending balance at Jun. 30, 2022 | 1,330,016 | 1,330,016 | 1,327,569 | 1,384,134 | (56,174) | (2,263) | 2,447 | $ 1,869 | $ 3 | ||
Beginning balance (in shares) at Dec. 31, 2022 | 178,753,125 | 178,753,000 | 250,222 | 250,000 | |||||||
Beginning balance at Dec. 31, 2022 | 1,497,306 | 1,497,306 | 1,495,017 | 1,266,097 | 234,525 | (7,396) | 2,289 | $ 1,788 | $ 3 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Exchanges of Class B Common Stock for Class A Common Stock (shares) | 250,000 | (250,000) | |||||||||
Exchange of Class B Common Stock for Class A Common Stock | 0 | 2,360 | 2,360 | (2,360) | $ 3 | $ (3) | |||||
Offering Costs | (223) | (223) | (223) | ||||||||
Effect of exchange on deferred tax asset, net of liability under tax receivable agreements | 7,782 | 7,782 | 7,782 | ||||||||
Deferred tax impact of ownership changes from issuance of Class A Common Stock | 103 | 103 | 103 | ||||||||
$0.10/share of Class A Common Stock dividend | (17,877) | (17,877) | (17,877) | ||||||||
Share repurchase (shares) | (9,889,000) | ||||||||||
Share repurchases | (134,742) | (134,719) | (134,620) | (23) | $ (99) | ||||||
Excise tax on share repurchases | (1,178) | (1,178) | (1,178) | ||||||||
Stock-based compensation expense | 15,143 | 15,140 | 15,140 | 3 | |||||||
Vesting of restricted stock units (shares) | 1,279,000 | ||||||||||
Vesting of restricted stock units | 0 | 1 | (11) | (1) | $ 12 | ||||||
Tax withheld on vesting of restricted stock units | (9,320) | (9,320) | (9,320) | ||||||||
Currency translation adjustment | 1,530 | 1,530 | 1,529 | 1,529 | 1 | ||||||
Net income | 315,417 | 315,417 | 315,326 | 315,326 | 91 | ||||||
Ending balance (in shares) at Jun. 30, 2023 | 170,393,226 | 170,393,000 | 0 | 0 | |||||||
Ending balance at Jun. 30, 2023 | 1,673,941 | 1,673,941 | 1,673,941 | 1,146,130 | 531,974 | (5,867) | 0 | $ 1,704 | $ 0 | ||
Beginning balance (in shares) at Mar. 31, 2023 | 173,945,000 | 0 | |||||||||
Beginning balance at Mar. 31, 2023 | 1,590,119 | 1,590,119 | 1,208,183 | 388,064 | (7,867) | 0 | $ 1,739 | $ 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
$0.10/share of Class A Common Stock dividend | (8,761) | (8,761) | (8,761) | ||||||||
Share repurchase (shares) | (4,722,000) | ||||||||||
Share repurchases | (60,094) | (60,094) | (60,047) | $ (47) | |||||||
Excise tax on share repurchases | (639) | (639) | (639) | ||||||||
Stock-based compensation expense | 7,965 | 7,965 | 7,965 | ||||||||
Vesting of restricted stock units (shares) | 1,170,000 | ||||||||||
Vesting of restricted stock units | 0 | (12) | $ 12 | ||||||||
Tax withheld on vesting of restricted stock units | (9,320) | (9,320) | (9,320) | ||||||||
Currency translation adjustment | 2,000 | 2,000 | 2,000 | ||||||||
Net income | 152,671 | 152,671 | 152,671 | ||||||||
Ending balance (in shares) at Jun. 30, 2023 | 170,393,226 | 170,393,000 | 0 | 0 | |||||||
Ending balance at Jun. 30, 2023 | $ 1,673,941 | $ 1,673,941 | $ 1,673,941 | $ 1,146,130 | $ 531,974 | $ (5,867) | $ 0 | $ 1,704 | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Common stock dividend (in dollars per share) | $ 0.05 | $ 0.10 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 315,417 | $ 99,859 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, depletion, and amortization | 194,096 | 151,967 |
(Gain) loss on disposal of assets | (3,173) | 1,236 |
Inventory write-down | 2,202 | 0 |
Non-cash lease expense | 1,587 | 2,088 |
Stock-based compensation expense | 15,143 | 11,014 |
Deferred income tax expense | 0 | 320 |
Loss on remeasurement of liability under tax receivable agreements | 0 | 4,333 |
Other non-cash expense | (401) | 826 |
Changes in operating assets and liabilities: | ||
Accounts receivable and unbilled revenue | (105,849) | (156,049) |
Accounts receivable and unbilled revenue—related party | (17,073) | (1,118) |
Inventories | 11,406 | (29,209) |
Other assets | (27,291) | (1,560) |
Deferred revenue | 10,275 | (2,898) |
Accounts payable and accrued liabilities | 49,178 | 58,539 |
Accounts payable and accrued liabilities—related party | 0 | (1,955) |
Initial payment of operating lease liability | (1,129) | (1,764) |
Net cash provided by operating activities | 444,388 | 135,629 |
Cash flows from investing activities: | ||
Purchases of property and equipment and construction in-progress | (292,281) | (224,737) |
Investment in sand logistics | 0 | (5,717) |
Investment in Fervo Energy Company | 0 | (10,000) |
Acquisition of Siren Energy, net of cash received | (74,896) | 0 |
Proceeds from sale of assets | 10,881 | 7,630 |
Net cash used in investing activities | (356,296) | (232,824) |
Cash flows from financing activities: | ||
Proceeds from borrowings on line-of-credit | 525,000 | 400,000 |
Repayments of borrowings on line-of-credit | (352,000) | (268,000) |
Repayments of borrowings on term loan | (104,716) | (875) |
Payments on finance lease obligations | (5,070) | (2,696) |
Class A Common Stock dividends and dividend equivalents upon restricted stock vesting | (17,570) | (148) |
Other distributions and advance payments to non-controlling interest unitholders | 0 | 924 |
Share repurchases | (134,742) | 0 |
Tax withholding on restricted stock units | (9,320) | (9,700) |
Payments of equity issuance costs | (223) | (523) |
Payments of debt issuance costs | (1,566) | (224) |
Net cash (used in) provided by financing activities | (100,207) | 118,758 |
Net (decrease) increase in cash and cash equivalents before translation effect | (12,115) | 21,563 |
Translation effect on cash | 106 | (85) |
Cash and cash equivalents—beginning of period | 43,676 | 19,998 |
Cash and cash equivalents—end of period | 31,667 | 41,476 |
Supplemental disclosure of cash flow information: | ||
Net cash paid for income taxes | 49,044 | 6,073 |
Cash paid for interest | 11,954 | 8,352 |
Non-cash investing and financing activities: | ||
Capital expenditures included in accounts payable and accrued liabilities | 127,731 | 79,319 |
Capital expenditures reclassified from prepaid and other current assets | $ 20,675 | $ 1,190 |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Organization Liberty Energy Inc., formerly known as Liberty Oilfield Services Inc. (the “Company”), was incorporated as a Delaware corporation on December 21, 2016, to become a holding corporation for Liberty Oilfield Services New HoldCo LLC (“Liberty LLC”) and its subsidiaries upon completion of a corporate reorganization (the “Corporate Reorganization”) and planned initial public offering of the Company (“IPO”). On April 19, 2022, the stockholders of the Company approved an amendment to the Company’s Amended and Restated Certificate of Incorporation for the purpose of changing the Company’s name from “Liberty Oilfield Services Inc.” to “Liberty Energy Inc.” and thereafter, the Company filed with the Secretary of State of the State of Delaware a Certificate of Amendment to the Company’s Amended and Restated Certificate of Incorporation to reflect the new name, effective April 25, 2022. Effective January 31, 2023, Liberty LLC was merged into the Company, with the Company surviving the merger (the “Merger”). In connection with the Merger, all outstanding shares of the Company’s Class B Common Stock, par value $0.01 per share (the “Class B Common Stock”) were redeemed and exchanged for an equal number of shares of the Company’s Class A Common Stock, par value $0.01 per share (the “Class A Common Stock”). The Company did not make any distributions or receive any proceeds in connection with this exchange. Please refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on February 10, 2023 (the “Annual Report”), for additional information on the Merger completed on January 31, 2023, and the Corporate Reorganization and IPO that were completed on January 17, 2018. The Company, together with its subsidiaries, is a leading integrated energy services and technology company focused on providing innovative hydraulic fracturing services and related technologies to onshore oil and natural gas exploration and production (“E&P”) companies in North America. We offer customers hydraulic fracturing services, together with complementary services including wireline services, proppant delivery solutions, field gas processing, compressed natural gas (“CNG”) delivery, data analytics, related goods (including our sand mine operations), and technologies that will facilitate lower emission completions, thereby helping our customers reduce their emissions profile. Basis of Presentation The accompanying unaudited condensed consolidated financial statements were prepared using generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and the instructions to Form 10-Q and Regulation S-X. Accordingly, these financial statements do not include all information or notes required by GAAP for annual financial statements and should be read together with the annual financial statements and notes thereto included in the Annual Report. The accompanying unaudited condensed consolidated financial statements and related notes present the condensed consolidated financial position of the Company as of June 30, 2023 and December 31, 2022, the results of operations and equity of the Company as of and for the three and six months ended June 30, 2023 and 2022, and cash flows for the six months ended June 30, 2023 and 2022. The interim data includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the interim period. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the results of operations expected for the entire fiscal year ended December 31, 2023. Further, these estimates and other factors, including those outside the Company’s control, such as the impact of sustained lower commodity prices, could have a significant adverse impact to the Company’s financial condition, results of operations and cash flows. All intercompany amounts have been eliminated in the presentation of the unaudited condensed consolidated financial statements of the Company. The Company’s operations are organized into a single reportable segment, which consists of hydraulic fracturing and related goods and services. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Transaction, Severance, and Other Costs The Company incurred transaction related costs in connection with the Siren Acquisition (as defined below). Such costs include investment banking, legal, accounting, and other professional services provided in connection with closing the transaction and are expensed as incurred. Recently Adopted Accounting Standards In October 2021, the FASB issued ASU No. 2021-08, Business Combinations: Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , which requires that the acquiring entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. The Company adopted this guidance effective December 15, 2022 and the adoptions did not have a material impact on the accompanying unaudited condensed consolidated financial statements. Siren Acquisition On April 6, 2023, the Company completed the acquisition of a Permian focused integrated natural gas compression and compressed natural gas delivery business, Siren Energy (“Siren”), for cash consideration of approximately $76.4 million, subject to normal closing adjustments (the “Siren Acquisition”). The Siren Acquisition was accounted for under the acquisition method of accounting for business combinations. Accordingly, the Company conducted assessments of the net assets acquired and recognized amounts for identifiable assets acquired and liabilities assumed at their estimated acquisition date fair values, while transaction and integration costs associated with the acquisition were expensed as incurred. In connection with the Siren Acquisition the Company preliminarily recorded goodwill of $43.1 million, property and equipment of $34.7 million, net working capital of $2.9 million, and net other liabilities of $4.3 million. Goodwill is recorded in other assets in the accompanying unaudited condensed consolidated balance sheets. Due to the immateriality of the Siren Acquisition, the related revenue and earnings, supplemental pro forma financial information, and detailed purchase price allocation are not disclosed. In accordance with ASC Topic 805, an acquirer is allowed a period, referred to as the measurement period, in which to complete its accounting for the transaction. Such measurement period ends at the earliest date that the acquirer a) receives the information necessary or b) determines that it cannot obtain further information, and such period may not exceed one year. As the Siren Acquisition closed on April 6, 2023, the Company is in the process of completing the initial purchase price allocation, particularly as it relates to current assets and current liabilities. Reclassifications Certain amounts in the prior period financial statements have been reclassified including $2.3 million from accrued liabilities to income tax payable in the accompanying unaudited condensed consolidated balance sheets to conform to the presentation of the current period financial statements. This reclassification had no effect on the previously reported net income or loss. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following: June 30, December 31, ($ in thousands) 2023 2022 Proppants $ 17,866 $ 31,350 Chemicals 25,123 32,392 Maintenance parts 158,080 150,712 $ 201,069 $ 214,454 During the three and six months ended June 30, 2023, the lower of cost or net realizable value analysis resulted in the Company recording a write-down to the inventory carrying value of $2.2 million. During the year ended December 31, 2022, the lower of cost or net realizable value analysis resulted in the Company recording a write-down to the inventory carrying value of $1.7 million recorded during the quarter ended September 30, 2022. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consist of the following: Estimated June 30, December 31, ($ in thousands) 2023 2022 Land N/A $ 29,427 $ 29,276 Field services equipment 2-10 2,240,804 1,925,848 Vehicles 4-7 64,963 62,683 Lease Equipment 10 123,629 106,087 Buildings and facilities 5-30 138,377 135,281 Mineral reserves >25 76,823 76,823 Office equipment and furniture 2-7 9,965 9,504 2,683,988 2,345,502 Less accumulated depreciation and depletion (1,319,119) (1,141,656) 1,364,869 1,203,846 Construction in-progress N/A 181,318 158,518 Property and equipment, net $ 1,546,187 $ 1,362,364 Depreciation expense for the three months ended June 30, 2023 and 2022 was $92.9 million and $72.4 million, respectively. During the six months ended June 30, 2023 and 2022, the Company recognized depreciation expense of $181.4 million and $142.3 million, respectively. Depletion expense for the three months ended June 30, 2023 and 2022 was $0.3 million and $0.3 million, respectively. Depletion expense for the six months ended June 30, 2023 and 2022 was $0.6 million and $0.6 million, respectively. As of June 30, 2023 and December 31, 2022, the Company concluded that no triggering events that could indicate possible impairment of property and equipment had occurred, other than related to the assets held for sale discussed below. As of June 30, 2023, the Company classified $0.7 million of land and $0.8 million of buildings, net of accumulated depreciation, of one property that it intends to sell within the next year, and that meets the held for sale criteria, to assets held for sale, included in prepaid and other current assets in the accompanying unaudited condensed consolidated balance sheet. The Company estimates that the carrying value of the assets is equal to the fair value less the estimated costs to sell, net of write-downs taken in the prior period, and therefore no gain or loss was recorded during the six months ended June 30, 2023. Additionally, as of December 31, 2022, the Company classified $1.1 million of land and $6.2 million of buildings, net of accumulated depreciation, of two properties that it intends to sell within the next year, and that meets the held for sale criteria, to assets held for sale, included in prepaid and other current assets in the accompanying unaudited condensed consolidated balance sheet. One of the properties classified as held for sale as of December 31, 2022 was sold during the three months ended June 30, 2023, resulting in a nominal loss included as a component of (gain) loss on disposal of assets in the accompanying unaudited condensed consolidated statements of income. As of June 30, 2022, the Company classified $2.0 million of land and $6.0 million of buildings, net of accumulated depreciation, of one property as assets held for sale. The Company estimated that carrying value of the assets was greater than the fair value less the estimated costs to sell, and therefore recorded a $2.3 million loss during the six months ended June 30, 2022, included as a component of (gain) loss on disposal of assets in the accompanying unaudited condensed consolidated statements of income. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company has operating and finance leases primarily for vehicles, equipment, railcars, office space, and facilities. The terms and conditions for these leases vary by the type of underlying asset. Certain leases include variable lease payments for items such as property taxes, insurance, maintenance, and other operating expenses associated with leased assets. Payments that vary based on an index or rate are included in the measurement of lease assets and liabilities at the rate as of the commencement date. All other variable lease payments are excluded from the measurement of lease assets and liabilities, and are recognized in the period in which the obligation for those payments is incurred. The components of lease expense for the three and six months ended June 30, 2023 and 2022 were as follows: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2023 2022 2023 2022 Finance lease cost: Amortization of right-of-use assets $ 2,328 $ 1,229 $ 4,564 $ 2,206 Interest on lease liabilities 695 352 1,389 613 Operating lease cost 10,064 12,635 20,638 22,134 Variable lease cost 1,271 1,045 2,517 2,136 Short-term lease cost 2,354 1,446 4,405 2,992 Total lease cost $ 16,712 $ 16,707 $ 33,513 $ 30,081 Sup plemental cash flow and other information related to leases for the three and six months ended June 30, 2023 and 2022 were as follows: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2023 2022 2023 2022 Cash paid for amounts included in measurement of liabilities: Operating leases $ 10,383 $ 12,863 $ 20,260 $ 21,895 Finance leases 3,523 1,830 6,461 3,309 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases 12,358 9,909 16,920 19,370 Finance leases 14,384 6,333 17,173 6,333 During the six months ended June 30, 2022, the Company amended certain operating leases, the change in terms of which caused the leases to be reclassified as finance leases. In connection with the amendments, the Company wrote-off operating lease right-of-use assets of $0.2 million and liabilities of $0.1 million. Additionally, in connection with the amendments, the Company recognized finance lease right-of-use assets of $1.8 million and liabilities of $1.8 million. There was no gain or loss recognized as a result of these amendments. During the six months ended June 30, 2023, the Company did not reclassify any operating or finance leases. Lease terms and discount rates as of June 30, 2023 and December 31, 2022 were as follows: June 30, 2023 December 31, 2022 Weighted-average remaining lease term: Operating leases 4.6 years 4.8 years Finance leases 3.2 years 3.1 years Weighted-average discount rate: Operating leases 5.3 % 4.6 % Finance leases 8.1 % 8.2 % Future minimum lease commitments as of June 30, 2023 are as follows: ($ in thousands) Finance Operating Remainder of 2023 $ 7,351 $ 16,860 2024 10,783 28,574 2025 10,893 26,295 2026 16,145 15,331 2027 7,648 6,310 Thereafter — 15,055 Total lease payments 52,820 108,425 Less imputed interest (8,129) (12,153) Total $ 44,691 $ 96,272 The Company’s vehicle leases typically include a residual value guarantee. For the Company’s vehicle leases classified as operating leases, the total residual value guaranteed as of June 30, 2023 is $14.0 million; the payment is not probable and therefore has not been included in the measurement of the lease liability and right-of-use asset. For vehicle leases that are classified as finance leases, the Company includes the residual value guarantee, estimated in the lease agreement, in the financing lease liability. Lessor Arrangements The Company leases dry and wet sand containers and conveyor belts to customers through operating leases, where the lessor for tax purposes is considered to be the owner of the equipment during the term of the lease. The lease agreements do not include options for the lessee to purchase the underlying asset at the end of the lease term for either a stated fixed price or fair market value. However, some of the leases contain a termination clause in which the customer can cancel the contract. The leases can be subject to variable lease payments if the customer requests more units than what is agreed upon in the lease. The Company does not record any lease assets or liabilities related to these variable items. The carrying amount of equipment leased to others, included in property, plant and equipment, under operating leases as of June 30, 2023 and December 31, 2022 were as follows: ($ in thousands) June 30, 2023 December 31, 2022 Lease Equipment $ 123,629 $ 106,087 Less: Accumulated depreciation (18,199) (11,408) Lease Equipment - net $ 105,430 $ 94,679 Future payments receivable for operating leases commenced as of June 30, 2023 are as follows: ($ in thousands) Remainder of 2023 $ 8,337 2024 10,036 2025 3,346 2026 619 2027 — Thereafter — Total $ 22,338 Revenues from operating leases for the three and six months ended June 30, 2023 |
Leases | Leases The Company has operating and finance leases primarily for vehicles, equipment, railcars, office space, and facilities. The terms and conditions for these leases vary by the type of underlying asset. Certain leases include variable lease payments for items such as property taxes, insurance, maintenance, and other operating expenses associated with leased assets. Payments that vary based on an index or rate are included in the measurement of lease assets and liabilities at the rate as of the commencement date. All other variable lease payments are excluded from the measurement of lease assets and liabilities, and are recognized in the period in which the obligation for those payments is incurred. The components of lease expense for the three and six months ended June 30, 2023 and 2022 were as follows: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2023 2022 2023 2022 Finance lease cost: Amortization of right-of-use assets $ 2,328 $ 1,229 $ 4,564 $ 2,206 Interest on lease liabilities 695 352 1,389 613 Operating lease cost 10,064 12,635 20,638 22,134 Variable lease cost 1,271 1,045 2,517 2,136 Short-term lease cost 2,354 1,446 4,405 2,992 Total lease cost $ 16,712 $ 16,707 $ 33,513 $ 30,081 Sup plemental cash flow and other information related to leases for the three and six months ended June 30, 2023 and 2022 were as follows: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2023 2022 2023 2022 Cash paid for amounts included in measurement of liabilities: Operating leases $ 10,383 $ 12,863 $ 20,260 $ 21,895 Finance leases 3,523 1,830 6,461 3,309 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases 12,358 9,909 16,920 19,370 Finance leases 14,384 6,333 17,173 6,333 During the six months ended June 30, 2022, the Company amended certain operating leases, the change in terms of which caused the leases to be reclassified as finance leases. In connection with the amendments, the Company wrote-off operating lease right-of-use assets of $0.2 million and liabilities of $0.1 million. Additionally, in connection with the amendments, the Company recognized finance lease right-of-use assets of $1.8 million and liabilities of $1.8 million. There was no gain or loss recognized as a result of these amendments. During the six months ended June 30, 2023, the Company did not reclassify any operating or finance leases. Lease terms and discount rates as of June 30, 2023 and December 31, 2022 were as follows: June 30, 2023 December 31, 2022 Weighted-average remaining lease term: Operating leases 4.6 years 4.8 years Finance leases 3.2 years 3.1 years Weighted-average discount rate: Operating leases 5.3 % 4.6 % Finance leases 8.1 % 8.2 % Future minimum lease commitments as of June 30, 2023 are as follows: ($ in thousands) Finance Operating Remainder of 2023 $ 7,351 $ 16,860 2024 10,783 28,574 2025 10,893 26,295 2026 16,145 15,331 2027 7,648 6,310 Thereafter — 15,055 Total lease payments 52,820 108,425 Less imputed interest (8,129) (12,153) Total $ 44,691 $ 96,272 The Company’s vehicle leases typically include a residual value guarantee. For the Company’s vehicle leases classified as operating leases, the total residual value guaranteed as of June 30, 2023 is $14.0 million; the payment is not probable and therefore has not been included in the measurement of the lease liability and right-of-use asset. For vehicle leases that are classified as finance leases, the Company includes the residual value guarantee, estimated in the lease agreement, in the financing lease liability. Lessor Arrangements The Company leases dry and wet sand containers and conveyor belts to customers through operating leases, where the lessor for tax purposes is considered to be the owner of the equipment during the term of the lease. The lease agreements do not include options for the lessee to purchase the underlying asset at the end of the lease term for either a stated fixed price or fair market value. However, some of the leases contain a termination clause in which the customer can cancel the contract. The leases can be subject to variable lease payments if the customer requests more units than what is agreed upon in the lease. The Company does not record any lease assets or liabilities related to these variable items. The carrying amount of equipment leased to others, included in property, plant and equipment, under operating leases as of June 30, 2023 and December 31, 2022 were as follows: ($ in thousands) June 30, 2023 December 31, 2022 Lease Equipment $ 123,629 $ 106,087 Less: Accumulated depreciation (18,199) (11,408) Lease Equipment - net $ 105,430 $ 94,679 Future payments receivable for operating leases commenced as of June 30, 2023 are as follows: ($ in thousands) Remainder of 2023 $ 8,337 2024 10,036 2025 3,346 2026 619 2027 — Thereafter — Total $ 22,338 Revenues from operating leases for the three and six months ended June 30, 2023 |
Leases | Leases The Company has operating and finance leases primarily for vehicles, equipment, railcars, office space, and facilities. The terms and conditions for these leases vary by the type of underlying asset. Certain leases include variable lease payments for items such as property taxes, insurance, maintenance, and other operating expenses associated with leased assets. Payments that vary based on an index or rate are included in the measurement of lease assets and liabilities at the rate as of the commencement date. All other variable lease payments are excluded from the measurement of lease assets and liabilities, and are recognized in the period in which the obligation for those payments is incurred. The components of lease expense for the three and six months ended June 30, 2023 and 2022 were as follows: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2023 2022 2023 2022 Finance lease cost: Amortization of right-of-use assets $ 2,328 $ 1,229 $ 4,564 $ 2,206 Interest on lease liabilities 695 352 1,389 613 Operating lease cost 10,064 12,635 20,638 22,134 Variable lease cost 1,271 1,045 2,517 2,136 Short-term lease cost 2,354 1,446 4,405 2,992 Total lease cost $ 16,712 $ 16,707 $ 33,513 $ 30,081 Sup plemental cash flow and other information related to leases for the three and six months ended June 30, 2023 and 2022 were as follows: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2023 2022 2023 2022 Cash paid for amounts included in measurement of liabilities: Operating leases $ 10,383 $ 12,863 $ 20,260 $ 21,895 Finance leases 3,523 1,830 6,461 3,309 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases 12,358 9,909 16,920 19,370 Finance leases 14,384 6,333 17,173 6,333 During the six months ended June 30, 2022, the Company amended certain operating leases, the change in terms of which caused the leases to be reclassified as finance leases. In connection with the amendments, the Company wrote-off operating lease right-of-use assets of $0.2 million and liabilities of $0.1 million. Additionally, in connection with the amendments, the Company recognized finance lease right-of-use assets of $1.8 million and liabilities of $1.8 million. There was no gain or loss recognized as a result of these amendments. During the six months ended June 30, 2023, the Company did not reclassify any operating or finance leases. Lease terms and discount rates as of June 30, 2023 and December 31, 2022 were as follows: June 30, 2023 December 31, 2022 Weighted-average remaining lease term: Operating leases 4.6 years 4.8 years Finance leases 3.2 years 3.1 years Weighted-average discount rate: Operating leases 5.3 % 4.6 % Finance leases 8.1 % 8.2 % Future minimum lease commitments as of June 30, 2023 are as follows: ($ in thousands) Finance Operating Remainder of 2023 $ 7,351 $ 16,860 2024 10,783 28,574 2025 10,893 26,295 2026 16,145 15,331 2027 7,648 6,310 Thereafter — 15,055 Total lease payments 52,820 108,425 Less imputed interest (8,129) (12,153) Total $ 44,691 $ 96,272 The Company’s vehicle leases typically include a residual value guarantee. For the Company’s vehicle leases classified as operating leases, the total residual value guaranteed as of June 30, 2023 is $14.0 million; the payment is not probable and therefore has not been included in the measurement of the lease liability and right-of-use asset. For vehicle leases that are classified as finance leases, the Company includes the residual value guarantee, estimated in the lease agreement, in the financing lease liability. Lessor Arrangements The Company leases dry and wet sand containers and conveyor belts to customers through operating leases, where the lessor for tax purposes is considered to be the owner of the equipment during the term of the lease. The lease agreements do not include options for the lessee to purchase the underlying asset at the end of the lease term for either a stated fixed price or fair market value. However, some of the leases contain a termination clause in which the customer can cancel the contract. The leases can be subject to variable lease payments if the customer requests more units than what is agreed upon in the lease. The Company does not record any lease assets or liabilities related to these variable items. The carrying amount of equipment leased to others, included in property, plant and equipment, under operating leases as of June 30, 2023 and December 31, 2022 were as follows: ($ in thousands) June 30, 2023 December 31, 2022 Lease Equipment $ 123,629 $ 106,087 Less: Accumulated depreciation (18,199) (11,408) Lease Equipment - net $ 105,430 $ 94,679 Future payments receivable for operating leases commenced as of June 30, 2023 are as follows: ($ in thousands) Remainder of 2023 $ 8,337 2024 10,036 2025 3,346 2026 619 2027 — Thereafter — Total $ 22,338 Revenues from operating leases for the three and six months ended June 30, 2023 |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consist of the following: ($ in thousands) June 30, 2023 December 31, 2022 Accrued vendor invoices $ 110,039 $ 119,801 Operations accruals 60,716 72,348 Accrued benefits and other 94,585 84,670 $ 265,340 $ 276,819 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt consists of the following: June 30, December 31, ($ in thousands) 2023 2022 Term Loan outstanding $ — $ 104,716 Revolving Line of Credit 288,000 115,000 Deferred financing costs and original issue discount — (1,270) Total debt, net of deferred financing costs and original issue discount $ 288,000 $ 218,446 Current portion of long-term debt, net of discount $ — $ 1,020 Long-term debt, net of discount and current portion 288,000 217,426 Total debt, net of deferred financing costs and original issue discount $ 288,000 $ 218,446 On September 19, 2017, the Company entered into two credit agreements: (i) a revolving line of credit up to $250.0 million, subsequently increased to $525.0 million, see below, (the “ABL Facility”) and (ii) a $175.0 million term loan (the “Term Loan Facility”, and together with the ABL Facility the “Credit Facilities”). Effective January 23, 2023, the Company entered into an Eighth Amendment to the ABL Facility (the “Eighth ABL Amendment”). The Eighth ABL Amendment amends certain terms, provisions and covenants of the ABL Facility, including, among other things: (i) increasing the maximum revolver amount from $425.0 million to $525.0 million (the “Upsized Revolver”); (ii) increasing the amount of the accordion feature from $75.0 million to $100.0 million; (iii) extending the maturity date from October 22, 2026 to January 23, 2028; (iv) modifying the dollar amounts of various credit facility triggers and tests proportionally to the Upsized Revolver; (v) permitting repayment under the Term Loan Facility prior to February 10, 2023; and (vi) increasing certain indebtedness, intercompany advance, and investment baskets. The Eighth ABL Amendment also includes an agreement from Wells Fargo Bank, National Association, as administrative agent, to release its second priority liens and security interests on all collateral that served as first priority collateral under the Term Loan Facility. This release was completed during the three months ended June 30, 2023. Additionally, on January 23, 2023, the Company borrowed $106.7 million on the ABL Facility and used the proceeds to pay off the Term Loan Facility. The amount paid includes the balance of the Term Loan Facility upon pay off of $104.7 million, $0.9 million of accrued interest, and a $1.1 million prepayment premium or 1% of the principal. Additionally, there were $0.2 million in bank and legal fees incurred in connection with the pay off. The weighted average interest rate on all borrowings outstanding as of June 30, 2023 and December 31, 2022 was 7.3% and 9.0%, respectively. Term Loan Facility The Term Loan Facility provided for a $175.0 million term loan, of which $0 million remained outstanding as of June 30, 2023. In connection with the Eighth ABL Amendment and payoff of the Term Loan Facility, on January 23, 2023, the Company terminated the Term Loan Facility, see above for further discussion. ABL Facility Under the terms of the ABL Facility, up to $525.0 million may be borrowed, subject to certain borrowing base limitations based on a percentage of eligible accounts receivable and inventory. As of June 30, 2023, the borrowing base was calculated to be $485.7 million, and the Company had $288.0 million outstanding in addition to letters of credit in the amount of $3.5 million, with $194.2 million of remaining availability. Borrowings under the ABL Facility bear interest at SOFR or a base rate, plus an applicable SOFR margin of 1.5% to 2.0% or base rate margin of 0.5% to 1.0%, as described in the ABL Facility credit agreement (the “ABL Facility credit agreement”). Additionally, borrowings as of June 30, 2023 incurred interest at a weighted average rate of 7.3%. The average monthly unused commitment is subject to an unused commitment fee of 0.25% to 0.375%. Interest and fees are payable in arrears at the end of each month, or, in the case of SOFR loans, at the end of each interest period. The ABL Facility matures on January 23, 2028. Borrowings under the ABL Facility are collateralized by accounts receivable and inventory, and further secured by the Company as parent guarantor. The ABL Facility includes certain non-financial covenants, including but not limited to restrictions on incurring additional debt and certain distributions. Moreover, the ability of the Company to incur additional debt and to make distributions is dependent on maintaining a maximum leverage ratio. The ABL Facility is not subject to financial covenants unless liquidity, as defined in the ABL Facility credit agreement, drops below a specific level. The Company is required to maintain a minimum fixed charge coverage ratio, as defined in the ABL Facility credit agreement, of 1.0 to 1.0 for each period if excess availability is less than 10% of the borrowing base or $52.5 million, whichever is greater. The Company was in compliance with these covenants as of June 30, 2023. Maturities of debt are as follows: ($ in thousands) Remainder of 2023 $ — 2024 — 2025 — 2026 — 2027 — Thereafter 288,000 $ 288,000 |
Fair Value Measurements and Fin
Fair Value Measurements and Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Financial Instruments | Fair Value Measurements and Financial Instruments The fair values of the Company’s assets and liabilities represent the amounts that would be received to sell those assets or that would be paid to transfer those liabilities in an orderly transaction on the reporting date. These fair value measurements maximize the use of observable inputs. However, in situations where there is little, if any, market activity for the asset or liability on the measurement date, the fair value measurement reflects the Company’s own judgments about the assumptions that market participants would use in pricing the asset or liability. The Company discloses the fair values of its assets and liabilities according to the quality of valuation inputs under the following hierarchy: • Level 1 Inputs: Quoted prices (unadjusted) in an active market for identical assets or liabilities. • Level 2 Inputs: Inputs other than quoted prices that are directly or indirectly observable. • Level 3 Inputs: Unobservable inputs that are significant to the fair value of assets or liabilities. The classification of an asset or liability is based on the lowest level of input significant to its fair value. Those that are initially classified as Level 3 are subsequently reported as Level 2 when the fair value derived from unobservable inputs is inconsequential to the overall fair value, or if corroborating market data becomes available. Assets and liabilities that are initially reported as Level 2 are subsequently reported as Level 3 if corroborating market data is no longer available. Transfers occur at the end of the reporting period. There were no transfers into or out of Levels 1, 2, and 3 during the six months ended June 30, 2023 and 2022. The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, notes receivable, accounts payable, accrued liabilities, long-term debt, and finance and operating lease obligations. These financial instruments do not require disclosure by level. The carrying values of all of the Company’s financial instruments included in the accompanying unaudited condensed consolidated balance sheets approximated or equaled their fair values on June 30, 2023 and December 31, 2022. • The carrying values of cash and cash equivalents, accounts receivable, and accounts payable (including accrued liabilities) approximated fair value on June 30, 2023 and December 31, 2022, due to their short-term nature. • The carrying value of amounts outstanding under long-term debt agreements with variable rates approximated fair value on June 30, 2023 and December 31, 2022, as the effective interest rates approximated market rates. • The carrying values of amounts outstanding under finance and operating lease obligations approximated fair value on June 30, 2023 and December 31, 2022, as the effective borrowing rates approximated market rates. Nonrecurring Measurements Certain assets and liabilities are measured at fair value on a nonrecurring basis. These items are not measured at fair value on an ongoing basis but may be subject to fair value adjustments in certain circumstances. These assets and liabilities include those acquired through the Siren Acquisition, which are required to be measured at fair value on the acquisition date in accordance with ASC Topic 805 . See Note 2—Significant Accounting Policies. As of June 30, 2023, the Company recorded $0.7 million of land and $0.8 million of buildings of one property that met the held for sale criteria, to assets held for sale at a total fair value of $0.8 million, which are included in prepaid and other current assets in the accompanying unaudited condensed consolidated balance sheets. The Company estimated the fair value of the property based on a communicated selling price for one property, which is a Level 3 input. The Company estimates that the carrying value of the assets is equal to the fair value less the estimated costs to sell, net of write-downs taken in the prior period, and therefore no gain or loss was recorded during the six months ended June 30, 2023. As of December 31, 2022, the Company recorded $1.1 million of land and $6.2 million of buildings of two properties that met the held for sale criteria, to assets held for sale at a total fair value of $6.3 million, which are included in prepaid and other current assets in the accompanying unaudited condensed consolidated balance sheet. The Company estimated the fair value of the properties based on a purchase and sale agreement for one property and a communicated selling price, which are Level 3 inputs. Recurring Measurements The fair values of the Company’s cash equivalents measured on a recurring basis pursuant to ASC 820-10 Fair Value Measurements and Disclosures are carried at estimated fair value. Cash equivalents consist of money market accounts which the Company has classified as Level 1 given the active market for these accounts. As of June 30, 2023 and December 31, 2022, the Company had cash equivalents, measured at fair value, of $0.3 million and $0.3 million, respectively. Nonfinancial assets The Company estimates fair value to perform impairment tests as required on long-lived assets. The inputs used to determine such fair value are primarily based upon internally developed cash flow models and would generally be classified within Level 3 in the event that such assets were required to be measured and recorded at fair value within the unaudited condensed consolidated financial statements. No such measurements were required as of June 30, 2023 and December 31, 2022 as no triggering event was identified. Credit Risk The Company’s financial instruments exposed to concentrations of credit risk consist primarily of cash and cash equivalents, and trade receivables. The Company’s cash and cash equivalent balances on deposit with financial institutions total $31.7 million and $43.7 million as of June 30, 2023 and December 31, 2022, respectively, which exceeded FDIC insured limits. The Company regularly monitors these institutions’ financial condition. The majority of the Company’s customers have payment terms of 45 days or less. As of June 30, 2023, no c ustomers accounted for more than 10% o f total consolidated accounts receivable and unbilled revenue. As of December 31, 2022, customer A accounted for 11% of total consolidated accounts receivable and unbilled revenue. During the three and six months ended June 30, 2023, customer A accounted for 11% of consolidated revenues. During the three and six months ended June 30, 2022, customer A accounted for 10% of consolidated revenues. The Company mitigates the associated credit risk by performing credit evaluations and monitoring the payment patterns of its customers. As of June 30, 2023 and December 31, 2022, the Company had $0.9 million in allowance for credit losses as follows: ($ in thousands) Provision for credit losses on December 31, 2022 $ 884 Credit Losses: Current period provision — Amounts written off — Provision for credit losses on June 30, 2023 $ 884 |
Equity
Equity | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Equity | Equity Restricted Stock Units Restricted stock units (“RSUs”) granted pursuant to the Long-Term Incentive Plan (“LTIP”), if they vest, will be settled in shares of the Company’s Class A Common Stock. RSUs were granted with initial vesting terms up to three years. Changes in non-vested RSUs outstanding under the LTIP during the six months ended June 30, 2023 were as follows: Number of Units Weighted Average Grant Date Fair Value per Unit Non-vested as of December 31, 2022 2,985,727 $ 12.15 Granted 553,069 15.49 Vested (1,416,456) 11.44 Forfeited (49,802) 11.32 Outstanding at June 30, 2023 2,072,538 $ 13.55 Performance Restricted Stock Units Performance restricted stock units (“PSUs”) granted pursuant to the LTIP, if they vest, will be settled in shares of the Company’s Class A Common Stock. PSUs were granted with a three-year cliff vesting schedule, subject to a performance target compared to an index of competitors ’ results over the three-year period as designated in the award. The Company records compensation expense based on the Company’s best estimate of the number of PSUs that will vest at the end of the performance period. If such performance targets are not met, or are not expected to be met, no compensation expense is recognized and any recognized compensation expense is reversed. Changes in non-vested PSUs outstanding under the LTIP during the six months ended June 30, 2023 were as follows: Number of Units Weighted Average Grant Date Fair Value per Unit Non-vested as of December 31, 2022 1,390,588 $ 11.87 Granted 341,928 15.64 Vested (392,948) 9.62 Forfeited — — Outstanding at June 30, 2023 1,339,568 $ 13.49 Stock-based compensation is included in cost of services and general and administrative expenses in the Company’s unaudited condensed consolidated statements of income. The Company recognized stock-based compensation expense of $8.0 million and $15.1 million for the three and six months ended June 30, 2023, respectively. The Company recognized stock-based compensation of $4.2 million and $11.0 million for the three and six months ended June 30, 2022, respectively. There was approximately $32.5 million of unrecognized compensation expense relating to outstanding RSUs and PSUs as of June 30, 2023. The unrecognized compensation expense will be recognized on a straight-line basis over the weighted average remaining vesting period of two years . Dividends The Company paid cash dividends of $0.05 per share of Class A Common Stock on March 20, 2023 and June 20, 2023 to stockholders of record as of March 6, 2023 and June 6, 2023, respectively. During the three and six months ended June 30, 2023 dividend payments totaled $8.6 million and $17.4 million, respectively. Additionally, the Company paid the cash dividend upon vesting for the RSUs and PSUs with a 2023 vesting date, which totaled $0.2 million for the six months ended June 30, 2023. As of June 30, 2023 and December 31, 2022, the Company had $0.5 million and $0.2 million of dividend equivalents payable related to RSUs and PSUs to be paid upon vesting, respectively. Dividends related to forfeited RSUs will be forfeited. Share Repurchase Program On July 25, 2022, the Company’s board of directors authorized and the Company announced a share repurchase program that allows the Company to repurchase up to $250.0 million of the Company’s Class A Common Stock beginning immediately and continuing through and including July 31, 2024. Additionally, on January 24, 2023 the Board authorized and the Company announced an increase to the share repurchase program that increased the Company’s cumulative repurchase authorization to $500.0 million. The shares may be repurchased from time to time in open market or privately negotiated transactions or by other means in accordance with applicable state and federal securities laws. The timing, as well as the number and value of shares repurchased under the program, will be determined by the Company at its discretion and will depend on a variety of factors, including management’s assessment of the intrinsic value of the Company’s Class A Common Stock, the market price of the Company’s Class A Common Stock, general market and economic conditions, available liquidity, compliance with the Company’s debt and other agreements, applicable legal requirements, and other considerations. The exact number of shares to be repurchased by the Company is not guaranteed, and the program may be suspended, modified, or discontinued at any time without prior notice. The Company expects to fund the repurchases by using cash on hand, borrowings under the ABL Facility and expected free cash flow to be generated through the program’s authorized period of July 2024. During the three months ended June 30, 2023, the Company repurchased and retired 4,722,257 shares of Class A Common Stock for $60.1 million or $12.73 average price per share including commissions, under the share repurchase program. During the six months ended June 30, 2023, the Company repurchased and retired 9,888,987 shares of Class A Common Stock for $134.7 million or $13.63 average price per share including commissions, under the share repurchase program. As of June 30, 2023, $239.9 million, including commissions paid, remained authorized for future repurchases of Class A Common Stock under the share repurchase program. The Company accounts for the purchase price of repurchased common shares in excess of par value ($0.01 per share of Class A Common Stock) as a reduction of additional paid-in capital, and will continue to do so until additional paid-in capital is reduced to zero. Thereafter, any excess purchase price will be recorded as a reduction to retained earnings. As enacted by the Inflation Reduction Act of 2022 (“IRA”), the Company has accrued stock repurchase excise tax of $1.2 million for the six months ended June 30, 2023. |
Net Income per Share
Net Income per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Income per Share | Net Income per Share Basic net income per share measures the performance of an entity over the reporting period. Diluted net income per share measures the performance of an entity over the reporting period while giving effect to all potentially dilutive common shares that were outstanding during the period. The Company uses the “if-converted” method to determine the potential dilutive effect of its Class B Common Stock and the treasury stock method to determine the potential dilutive effect of outstanding RSUs and PSUs. The following table reflects the allocation of net income to common stockholders and net income per share computations for the periods indicated based on a weighted average number of shares of Class A Common Stock and Class B Common Stock outstanding: Three Months Ended Six Months Ended (In thousands) June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Basic Net Income Per Share Numerator: Net income attributable to Liberty Energy Inc. stockholders $ 152,671 $ 105,156 $ 315,326 $ 99,780 Denominator: Basic weighted average common shares outstanding 173,131 186,719 174,840 185,367 Basic net income per share attributable to Liberty Energy Inc. stockholders $ 0.88 $ 0.56 $ 1.80 $ 0.54 Diluted Net Income Per Share Numerator: Net income attributable to Liberty Energy Inc. stockholders $ 152,671 $ 105,156 $ 315,326 $ 99,780 Effect of exchange of the shares of Class B Common Stock for shares of Class A Common Stock — 183 71 79 Diluted net income attributable to Liberty Energy Inc. stockholders $ 152,671 $ 105,339 $ 315,397 $ 99,859 Denominator: Basic weighted average shares outstanding 173,131 186,719 174,840 185,367 Effect of dilutive securities: Restricted stock units 3,094 3,396 3,955 4,049 Class B Common Stock — 326 42 1,207 Diluted weighted average shares outstanding 176,225 190,441 178,837 190,623 Diluted net income per share attributable to Liberty Energy Inc. stockholders $ 0.87 $ 0.55 $ 1.76 $ 0.52 In accordance with GAAP, diluted weighted average common shares presented above do not include certain weighted average shares of Class B Common Stock, because to do so would have had an antidilutive effect, as follows: Three Months Ended Six Months Ended (In thousands) June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Weighted average shares of Class B Common Stock — 7 — — |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company is a corporation and is subject to taxation in the United States, Canada and various state, local and provincial jurisdictions. Historically, Liberty LLC was treated as a partnership, and its income was passed through to its owners for income tax purposes. Liberty LLC’s members, including the Company, were liable for federal, state and local income taxes based on their share of Liberty LLC’s pass-through taxable income. Effective January 31, 2023, the Company adopted a plan of merger, pursuant to which Liberty LLC merged into the Company, ceasing the existence of Liberty LLC with the Company remaining as the surviving entity. Liberty LLC will file a final tax return during the 2023 calendar year. The Company is still party to the TRAs, as defined below, of which the Company’s liability under the TRAs’ is $119.5 million, presented as $4.7 million as a current liability included in accrued liabilities in the accompanying unaudited condensed consolidated balance sheets, and $114.8 million as a non-current liability as of June 30, 2023. The Company may distribute cash from foreign subsidiaries to its U.S. parent as business needs arise. The Company has not provided for deferred income taxes on the undistributed earnings from certain foreign subsidiaries, as such earnings are considered to be indefinitely reinvested. If such earnings were to be distributed, any income and/or withholding tax would not be significant. The effective global income tax rate applicable to the Company for the six months ended June 30, 2023 was 24.4%, compared to 1.1%, for the period ended June 30, 2022. The Company’s effective tax rate is greater than the statutory federal income tax rate of 21.0% due to the Company’s Canadian operations, state income taxes in the states the Company operates, as well as nondeductible executive compensation. The Company recognized an income tax expense of $47.3 million and $101.8 million during the three and six months ended June 30, 2023, respectively. The Company recognized an income tax expense of $0.2 million and $1.1 million during the three and six months ended June 30, 2022, respectively. As of June 30, 2023 and December 31, 2022, the Company recognized a deferred tax liability in the amount of $1.1 million and $1.0 million, respectively. As of June 30, 2023 and December 31, 2022, the Company recognized a net deferred tax asset in the amount of $21.2 million and $12.6 million, respectively. Deferred income tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial reporting and tax bases of assets and liabilities, and are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. Tax Receivable Agreements In connection with the IPO, on January 17, 2018, the Company entered into two Tax Receivable Agreements (the “TRAs”) with R/C Energy IV Direct Partnership, L.P. and the then existing owners that continued to own units in Liberty LLC (“Liberty LLC Units”) (each such person and any permitted transferee, a “TRA Holder” and together, the “TRA Holders”). The TRAs generally provide for the payment by the Company of 85% of the net cash savings, if any, in U.S. federal, state, and local income tax and franchise tax (computed using simplifying assumptions to address the impact of state and local taxes) that the Company actually realizes (or is deemed to realize in certain circumstances) in periods after the IPO as a result, as applicable to each TRA Holder, of (i) certain increases in tax basis that occur as a result of the Company’s acquisition (or deemed acquisition for U.S. federal income tax purposes) of all or a portion of such TRA Holder’s Liberty LLC Units in connection with the IPO or pursuant to the exercise of redemption or call rights, (ii) any net operating losses available to the Company as a result of the Corporate Reorganization, and (iii) imputed interest deemed to be paid by the Company as a result of, and additional tax basis arising from, any payments the Company makes under the TRAs. On January 31, 2023, the last redemption of the Liberty LLC Units occurred. During the six months ended June 30, 2023, exchanges of Liberty LLC Units and shares of Class B Common Stock resulted in a net increase of $0.7 million in deferred tax assets, and an increase of $0.6 million in amounts payable under the TRAs, all of which are recorded through equity. The Company did not make any TRA payments for the six months ended June 30, 2023. On January 31, 2023 the Company also recorded an increase of $7.8 million of deferred tax assets for the impact of the adopted plan of merger of Liberty LLC into the Company, all of which was recorded through equity. During the six months ended June 30, 2022, exchanges of Liberty LLC Units and shares of Class B Common Stock initially resulted in a net increase of $6.5 million in deferred tax assets, and an increase of $5.5 million in amounts payable under the TRAs, all of which are recorded through equity. The Company did not make any TRA payments for the six months ended June 30, 2022. As of June 30, 2023, the Company ’ s liability under the TRAs was $119.5 million of which $4.7 million is presented as a current liability included in accrued liabilities in the accompanying unaudited condensed consolidated balance sheet, and $114.8 million is presented as a component of long-term liabilities. As of December 31, 2022, the Company ’ s liability under the TRAs was $118.9 million, all of which is presented as a component of long-term liabilities. On June 30, 2023 and December 31, 2022 the related deferred tax assets totaled $99.9 million and $99.9 million, respectively. |
Defined Contribution Plan
Defined Contribution Plan | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Defined Contribution Plan | Defined Contribution Plan The Company sponsors a 401(k) defined contribution retirement plan covering eligible employees. The Company makes matching contributions at a rate of $1.00 for each $1.00 of employee contribution, subject to a cap of 6% of the employee’s salary and federal limits. Contributions made by the Company wer e $8.6 million and $6.0 million for the three months ended June 30, 2023 and 2022, respectively, and $16.2 million and $12.1 million for the six months ended June 30, 2023 and 2022, respectively. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Schlumberger Limited During 2020, the Company acquired certain assets and liabilities of Schlumberger Technology Corporation (“Schlumberger”) in exchange for the issuance of shares of the Company ’ s Class A Common Stock amongst other consideration. During the six months ended June 30, 2023, the Company repurchased and retired 3,000,000 shares of Class A Common Stock for $45.0 million or $15.00 average price per share from Schlumberger, under the share repurchase program. Effective January 31, 2023, after the repurchase and retirement, Schlumberger owns no shares of Class A Common Stock of the Company and no longer qualifies as a related party. Within the normal course of business, the Company purchases chemicals, proppant and other equipment and maintenance parts from Schlumberger and its subsidiaries. During the period from January 1, 2023 until January 31, 2023, total purchases from Schlumberger were approximately $1.7 million. During the three and six months ended June 30, 2022, total purchases from Schlumberger were approximately $4.5 million and $8.1 million, respectively. As of December 31, 2022 amounts due to Schlumberger were $2.6 million and $0.7 million, included in accounts payable and accrued liabilities, respectively, in the unaudited condensed consolidated balance sheet. Although the Company continues to do business with Schlumberger, the Company no longer presents cash flows with Schlumberger as related party in the accompanying unaudited condensed consolidated statements of cash flows. Franklin Mountain Energy, LLC During 2021, Audrey Robertson was appointed to the board of directors of the Company. Ms. Robertson serves as the Chief Financial Officer of Franklin Mountain Energy, LLC (“Franklin Mountain”). During the three and six months ended June 30, 2023, the Company performed hydraulic fracturing services for Franklin Mountain in the amount of $43.5 million and $66.8 million, respectively. During the three and six months ended June 30, 2022 the Company performed hydraulic fracturing services for Franklin Mountain in the amount of $1.2 million and $23.5 million, respectively. Amounts included in unbilled revenue from Franklin Mountain as of June 30, 2023 and December 31, 2022 were $27.5 million and $13.9 million, respectively. There were no receivables from Franklin Mountain as of June 30, 2023 and December 31, 2022. Liberty Resources LLC Liberty Resources LLC, an oil and gas exploration and production company, and its successor entity (collectively, the “Affiliate”) has certain common ownership and management with the Company. The amounts of the Company’s revenue related to hydraulic fracturing services provided to the Affiliate for the three months ended June 30, 2023 and 2022 was $8.7 million and $0 million, respectively, and $15.2 million and $0 million for the six months ended June 30, 2023 and 2022, respectively. Amounts included in unbilled revenue and receivables from the Affiliate as of June 30, 2023 were $1.5 million and $7.2 million, respectively. On December 28, 2022 (the “Agreement Date”), the Company entered into an agreement with the Affiliate to amend payment terms for outstanding invoices due as of the Agreement Date to be due on April 1, 2024. Amounts outstanding from the Affiliate as of June 30, 2023 were $6.4 million, included in prepaid and other current assets in the accompanying unaudited condensed consolidated balance sheet. Amounts outstanding from the Affiliate as of December 31, 2022 were $11.8 million, included in other assets in the accompanying unaudited condensed consolidated balance sheet. The receivable amount became current during the three months ended June 30, 2023. Any receivable amount outstanding at the end of each month is subject to 15% interest through September 30, 2023, and 18% thereafter. During the three and six months ended June 30, 2023, interest income from the Affiliate was $0.4 million and $0.7 million, respectively. During the three and six months ended June 30, 2022, there was no interest income from the Affiliate. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments & Contingencies Purchase Commitments (tons and gallons are not in thousands) The Company enters into purchase and supply agreements to secure supply and pricing of proppants, transload, and equipment. As of June 30, 2023 and December 31, 2022, the agreements provide pricing and committed supply sources for the Company to purchas e 2,053,765 tons and 2,915,172 tons, respectively, of proppant through December 31, 2024. Amounts above also include commitments to pay for transport fees on minimum amounts of proppants. Additionally, related proppant transload service commitments run through 2023. Future proppant, transload, and equipment commitments are as follows: ($ in thousands) Remainder of 2023 $ 134,598 2024 70,800 2025 — 2026 — 2027 — Thereafter — $ 205,398 Certain supply agreements contain a clause whereby in the event that the Company fails to purchase minimum volumes, as defined in the agreement, during a specific time period, a shortfall fee may apply. In circumstances where the Company does not make the minimum purchase required under the contract, the Company and its suppliers have a history of amending such minimum purchase contractual terms and in rare cases does the Company incur shortfall fees. If the Company were unable to make any of the minimum purchases and the Company and its suppliers cannot come to an agreement to avoid such fees, the Company could incur shortfall fees in the amounts of $29.9 million and $8.7 million for the remainder of 2023 and the year ended 2024, respectively. Based on forecasted levels of activity, the Company does not currently expect to incur significant shortfall fees. Included in the commitments for the remainder of 2023 are $3.8 million of payments expected to be made in the third quarter of 2023 for the use of certain light duty trucks, heavy tractors and field equipment used to various degrees in frac and wireline operations. The Company is in negotiations with the third-party owner of such equipment to lease or purchase some or all of such aforementioned vehicles and equipment, subject to agreement on terms and conditions. No gain or loss is expected upon consummation of any such agreement. Litigation From time to time, the Company is subject to legal and administrative proceedings, settlements, investigations, claims and actions. The Company’s assessment of the likely outcome of litigation matters is based on its judgment of a number of factors including experience with similar matters, past history, precedents, relevant financial and other evidence and facts specific to the matter. Notwithstanding the uncertainty as to the final outcome, based upon the information currently available, management does not believe any matters, individually or in aggregate, will have a material adverse effect on the Company ’ s financial position or results of operations. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 6 Months Ended |
Jun. 30, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | Selected Quarterly Financial Data The following tables summarizes consolidated changes in equity for the three months ended June 30, 2023 and 2022: Shares of Class A Common Stock Shares of Class B Common Stock Class A Common Stock, Par Value Class B Common Stock, Par Value Additional Paid in Capital Retained Earnings Accumulated Other Comprehensive Loss Total Stockholders ’ equity Non-controlling Interest Total Equity Balance—March 31, 2023 173,945 — $ 1,739 $ — $ 1,208,183 $ 388,064 $ (7,867) $ 1,590,119 $ — $ 1,590,119 Offering Costs — — — — — — — — — — $0.05/share of Class A Common Stock dividend — — — — — (8,761) (8,761) — (8,761) Share repurchases (4,722) — (47) — (60,047) — (60,094) — (60,094) Excise tax on share repurchases — — — — (639) — (639) — (639) Stock-based compensation expense — — — — 7,965 — — 7,965 — 7,965 Vesting of restricted stock units 1,170 — 12 — (12) — — — — — Tax withheld on vesting of restricted stock units — — — — (9,320) — — (9,320) — (9,320) Currency translation adjustment — — — — — — 2,000 2,000 — 2,000 Net income — — — — — 152,671 — 152,671 — 152,671 Balance—June 30, 2023 170,393 — $ 1,704 $ — $ 1,146,130 $ 531,974 $ (5,867) $ 1,673,941 $ — $ 1,673,941 Shares of Class A Common Stock Shares of Class B Common Stock Class A Common Stock, Par Value Class B Common Stock, Par Value Additional Paid in Capital Accumulated Deficit Accumulated Other Comprehensive Income (Loss) Total Stockholders ’ equity Non-controlling Interest Total Equity Balance—March 31, 2022 185,761 $ 340 $ 1,858 $ 3 $ 1,389,987 $ (161,330) $ 743 $ 1,231,261 $ 2,405 $ 1,233,666 Exchange of Class B Common Stock for Class A Common Stock 14 (14) — — 130 — — 130 (130) — Offering Costs — — — — (502) — — (502) — (502) Stock-based compensation expense — — — — 4,194 — — 4,194 7 4,201 Vesting of restricted stock units 1,084 — 11 — 1 — — 12 (12) — Tax withheld on vesting of restricted stock units — — — — (9,676) — — (9,676) — (9,676) Currency translation adjustment — — — — — — (3,006) (3,006) (6) (3,012) Net income — — — — — 105,156 — 105,156 183 105,339 Balance—June 30, 2022 186,859 326 1,869 3 1,384,134 (56,174) (2,263) 1,327,569 2,447 $ 1,330,016 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 18, 2023, the Company’s board of directors approved a quarterly dividend of $0.05 per share of Class A Common Stock to be paid on September 20, 2023 to holders of record as of September 6, 2023. No other significant subsequent events have occurred that would require recognition or disclosure in the unaudited condensed consolidated financial statements. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements were prepared using generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and the instructions to Form 10-Q and Regulation S-X. Accordingly, these financial statements do not include all information or notes required by GAAP for annual financial statements and should be read together with the annual financial statements and notes thereto included in the Annual Report. The accompanying unaudited condensed consolidated financial statements and related notes present the condensed consolidated financial position of the Company as of June 30, 2023 and December 31, 2022, the results of operations and equity of the Company as of and for the three and six months ended June 30, 2023 and 2022, and cash flows for the six months ended June 30, 2023 and 2022. The interim data includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the interim period. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the results of operations expected for the entire fiscal year ended December 31, 2023. Further, these estimates and other factors, including those outside the Company’s control, such as the impact of sustained lower commodity prices, could have a significant adverse impact to the Company’s financial condition, results of operations and cash flows. All intercompany amounts have been eliminated in the presentation of the unaudited condensed consolidated financial statements of the Company. The Company’s operations are organized into a single reportable segment, which consists of hydraulic fracturing and related goods and services. |
Transaction, Severance, and Other Costs | Transaction, Severance, and Other Costs The Company incurred transaction related costs in connection with the Siren Acquisition (as defined below). Such costs include investment banking, legal, accounting, and other professional services provided in connection with closing the transaction and are expensed as incurred. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In October 2021, the FASB issued ASU No. 2021-08, Business Combinations: Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , which requires that the acquiring entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. The Company adopted this guidance effective December 15, 2022 and the adoptions did not have a material impact on the accompanying unaudited condensed consolidated financial statements. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: June 30, December 31, ($ in thousands) 2023 2022 Proppants $ 17,866 $ 31,350 Chemicals 25,123 32,392 Maintenance parts 158,080 150,712 $ 201,069 $ 214,454 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consist of the following: Estimated June 30, December 31, ($ in thousands) 2023 2022 Land N/A $ 29,427 $ 29,276 Field services equipment 2-10 2,240,804 1,925,848 Vehicles 4-7 64,963 62,683 Lease Equipment 10 123,629 106,087 Buildings and facilities 5-30 138,377 135,281 Mineral reserves >25 76,823 76,823 Office equipment and furniture 2-7 9,965 9,504 2,683,988 2,345,502 Less accumulated depreciation and depletion (1,319,119) (1,141,656) 1,364,869 1,203,846 Construction in-progress N/A 181,318 158,518 Property and equipment, net $ 1,546,187 $ 1,362,364 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Lease, Cost | The components of lease expense for the three and six months ended June 30, 2023 and 2022 were as follows: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2023 2022 2023 2022 Finance lease cost: Amortization of right-of-use assets $ 2,328 $ 1,229 $ 4,564 $ 2,206 Interest on lease liabilities 695 352 1,389 613 Operating lease cost 10,064 12,635 20,638 22,134 Variable lease cost 1,271 1,045 2,517 2,136 Short-term lease cost 2,354 1,446 4,405 2,992 Total lease cost $ 16,712 $ 16,707 $ 33,513 $ 30,081 |
Lessee, Supplemental Cash Flow Information | Sup plemental cash flow and other information related to leases for the three and six months ended June 30, 2023 and 2022 were as follows: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2023 2022 2023 2022 Cash paid for amounts included in measurement of liabilities: Operating leases $ 10,383 $ 12,863 $ 20,260 $ 21,895 Finance leases 3,523 1,830 6,461 3,309 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases 12,358 9,909 16,920 19,370 Finance leases 14,384 6,333 17,173 6,333 |
Lease Term and Discount Rate, Lessee | Lease terms and discount rates as of June 30, 2023 and December 31, 2022 were as follows: June 30, 2023 December 31, 2022 Weighted-average remaining lease term: Operating leases 4.6 years 4.8 years Finance leases 3.2 years 3.1 years Weighted-average discount rate: Operating leases 5.3 % 4.6 % Finance leases 8.1 % 8.2 % |
Lessee, Operating Lease, Liability, Maturity | Future minimum lease commitments as of June 30, 2023 are as follows: ($ in thousands) Finance Operating Remainder of 2023 $ 7,351 $ 16,860 2024 10,783 28,574 2025 10,893 26,295 2026 16,145 15,331 2027 7,648 6,310 Thereafter — 15,055 Total lease payments 52,820 108,425 Less imputed interest (8,129) (12,153) Total $ 44,691 $ 96,272 |
Finance Lease, Liability, Maturity | Future minimum lease commitments as of June 30, 2023 are as follows: ($ in thousands) Finance Operating Remainder of 2023 $ 7,351 $ 16,860 2024 10,783 28,574 2025 10,893 26,295 2026 16,145 15,331 2027 7,648 6,310 Thereafter — 15,055 Total lease payments 52,820 108,425 Less imputed interest (8,129) (12,153) Total $ 44,691 $ 96,272 |
Carrying Value of Assets Subject to Leases | The carrying amount of equipment leased to others, included in property, plant and equipment, under operating leases as of June 30, 2023 and December 31, 2022 were as follows: ($ in thousands) June 30, 2023 December 31, 2022 Lease Equipment $ 123,629 $ 106,087 Less: Accumulated depreciation (18,199) (11,408) Lease Equipment - net $ 105,430 $ 94,679 |
Lessor, Operating Lease, Payment to be Received, Maturity | Future payments receivable for operating leases commenced as of June 30, 2023 are as follows: ($ in thousands) Remainder of 2023 $ 8,337 2024 10,036 2025 3,346 2026 619 2027 — Thereafter — Total $ 22,338 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following: ($ in thousands) June 30, 2023 December 31, 2022 Accrued vendor invoices $ 110,039 $ 119,801 Operations accruals 60,716 72,348 Accrued benefits and other 94,585 84,670 $ 265,340 $ 276,819 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consists of the following: June 30, December 31, ($ in thousands) 2023 2022 Term Loan outstanding $ — $ 104,716 Revolving Line of Credit 288,000 115,000 Deferred financing costs and original issue discount — (1,270) Total debt, net of deferred financing costs and original issue discount $ 288,000 $ 218,446 Current portion of long-term debt, net of discount $ — $ 1,020 Long-term debt, net of discount and current portion 288,000 217,426 Total debt, net of deferred financing costs and original issue discount $ 288,000 $ 218,446 |
Schedule of Maturities of Long-term Debt | Maturities of debt are as follows: ($ in thousands) Remainder of 2023 $ — 2024 — 2025 — 2026 — 2027 — Thereafter 288,000 $ 288,000 |
Fair Value Measurements and F_2
Fair Value Measurements and Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Allowance for Doubtful Accounts | As of June 30, 2023 and December 31, 2022, the Company had $0.9 million in allowance for credit losses as follows: ($ in thousands) Provision for credit losses on December 31, 2022 $ 884 Credit Losses: Current period provision — Amounts written off — Provision for credit losses on June 30, 2023 $ 884 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule of Nonvested Restricted Stock Units Activity | Changes in non-vested RSUs outstanding under the LTIP during the six months ended June 30, 2023 were as follows: Number of Units Weighted Average Grant Date Fair Value per Unit Non-vested as of December 31, 2022 2,985,727 $ 12.15 Granted 553,069 15.49 Vested (1,416,456) 11.44 Forfeited (49,802) 11.32 Outstanding at June 30, 2023 2,072,538 $ 13.55 |
Schedule of Performance Restricted Stock Units Activity | Changes in non-vested PSUs outstanding under the LTIP during the six months ended June 30, 2023 were as follows: Number of Units Weighted Average Grant Date Fair Value per Unit Non-vested as of December 31, 2022 1,390,588 $ 11.87 Granted 341,928 15.64 Vested (392,948) 9.62 Forfeited — — Outstanding at June 30, 2023 1,339,568 $ 13.49 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table reflects the allocation of net income to common stockholders and net income per share computations for the periods indicated based on a weighted average number of shares of Class A Common Stock and Class B Common Stock outstanding: Three Months Ended Six Months Ended (In thousands) June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Basic Net Income Per Share Numerator: Net income attributable to Liberty Energy Inc. stockholders $ 152,671 $ 105,156 $ 315,326 $ 99,780 Denominator: Basic weighted average common shares outstanding 173,131 186,719 174,840 185,367 Basic net income per share attributable to Liberty Energy Inc. stockholders $ 0.88 $ 0.56 $ 1.80 $ 0.54 Diluted Net Income Per Share Numerator: Net income attributable to Liberty Energy Inc. stockholders $ 152,671 $ 105,156 $ 315,326 $ 99,780 Effect of exchange of the shares of Class B Common Stock for shares of Class A Common Stock — 183 71 79 Diluted net income attributable to Liberty Energy Inc. stockholders $ 152,671 $ 105,339 $ 315,397 $ 99,859 Denominator: Basic weighted average shares outstanding 173,131 186,719 174,840 185,367 Effect of dilutive securities: Restricted stock units 3,094 3,396 3,955 4,049 Class B Common Stock — 326 42 1,207 Diluted weighted average shares outstanding 176,225 190,441 178,837 190,623 Diluted net income per share attributable to Liberty Energy Inc. stockholders $ 0.87 $ 0.55 $ 1.76 $ 0.52 |
Schedule of Antidilutive Securities | In accordance with GAAP, diluted weighted average common shares presented above do not include certain weighted average shares of Class B Common Stock, because to do so would have had an antidilutive effect, as follows: Three Months Ended Six Months Ended (In thousands) June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Weighted average shares of Class B Common Stock — 7 — — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments | Future proppant, transload, and equipment commitments are as follows: ($ in thousands) Remainder of 2023 $ 134,598 2024 70,800 2025 — 2026 — 2027 — Thereafter — $ 205,398 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | The following tables summarizes consolidated changes in equity for the three months ended June 30, 2023 and 2022: Shares of Class A Common Stock Shares of Class B Common Stock Class A Common Stock, Par Value Class B Common Stock, Par Value Additional Paid in Capital Retained Earnings Accumulated Other Comprehensive Loss Total Stockholders ’ equity Non-controlling Interest Total Equity Balance—March 31, 2023 173,945 — $ 1,739 $ — $ 1,208,183 $ 388,064 $ (7,867) $ 1,590,119 $ — $ 1,590,119 Offering Costs — — — — — — — — — — $0.05/share of Class A Common Stock dividend — — — — — (8,761) (8,761) — (8,761) Share repurchases (4,722) — (47) — (60,047) — (60,094) — (60,094) Excise tax on share repurchases — — — — (639) — (639) — (639) Stock-based compensation expense — — — — 7,965 — — 7,965 — 7,965 Vesting of restricted stock units 1,170 — 12 — (12) — — — — — Tax withheld on vesting of restricted stock units — — — — (9,320) — — (9,320) — (9,320) Currency translation adjustment — — — — — — 2,000 2,000 — 2,000 Net income — — — — — 152,671 — 152,671 — 152,671 Balance—June 30, 2023 170,393 — $ 1,704 $ — $ 1,146,130 $ 531,974 $ (5,867) $ 1,673,941 $ — $ 1,673,941 Shares of Class A Common Stock Shares of Class B Common Stock Class A Common Stock, Par Value Class B Common Stock, Par Value Additional Paid in Capital Accumulated Deficit Accumulated Other Comprehensive Income (Loss) Total Stockholders ’ equity Non-controlling Interest Total Equity Balance—March 31, 2022 185,761 $ 340 $ 1,858 $ 3 $ 1,389,987 $ (161,330) $ 743 $ 1,231,261 $ 2,405 $ 1,233,666 Exchange of Class B Common Stock for Class A Common Stock 14 (14) — — 130 — — 130 (130) — Offering Costs — — — — (502) — — (502) — (502) Stock-based compensation expense — — — — 4,194 — — 4,194 7 4,201 Vesting of restricted stock units 1,084 — 11 — 1 — — 12 (12) — Tax withheld on vesting of restricted stock units — — — — (9,676) — — (9,676) — (9,676) Currency translation adjustment — — — — — — (3,006) (3,006) (6) (3,012) Net income — — — — — 105,156 — 105,156 183 105,339 Balance—June 30, 2022 186,859 326 1,869 3 1,384,134 (56,174) (2,263) 1,327,569 2,447 $ 1,330,016 |
Organization and Basis of Pre_2
Organization and Basis of Presentation - Narrative (Details) - $ / shares | Jun. 30, 2023 | Jan. 31, 2023 | Dec. 31, 2022 |
Common Class B | |||
Class of Stock [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common Class A | |||
Class of Stock [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
PropX | Common Stock | Common Class B | |||
Class of Stock [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0.01 | ||
PropX | Common Stock | Common Class A | |||
Class of Stock [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0.01 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - USD ($) $ in Thousands | Apr. 06, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Business Acquisition [Line Items] | |||
Income taxes payable | $ 52,291 | $ 2,294 | |
Accrued liabilities, current | 265,340 | $ 276,819 | |
Revision of Prior Period, Reclassification, Adjustment | |||
Business Acquisition [Line Items] | |||
Income taxes payable | 2,300 | ||
Accrued liabilities, current | $ (2,300) | ||
Siren Energy | |||
Business Acquisition [Line Items] | |||
Payments to acquire businesses, gross | $ 76,400 | ||
Goodwill | 43,100 | ||
Property and equipment | 34,700 | ||
Business combination, net working capital | 2,900 | ||
Net other liabilities | $ 4,300 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Inventory [Line Items] | |||||
Inventories | $ 201,069 | $ 201,069 | $ 214,454 | ||
Inventory write-down | 2,200 | $ 1,700 | 2,202 | $ 0 | |
Proppants | |||||
Inventory [Line Items] | |||||
Inventories | 17,866 | 17,866 | 31,350 | ||
Chemicals | |||||
Inventory [Line Items] | |||||
Inventories | 25,123 | 25,123 | 32,392 | ||
Maintenance parts | |||||
Inventory [Line Items] | |||||
Inventories | $ 158,080 | $ 158,080 | $ 150,712 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,683,988 | $ 2,345,502 |
Less accumulated depreciation and depletion | (1,319,119) | (1,141,656) |
Property and equipment, before construction in-progress, net | 1,364,869 | 1,203,846 |
Construction in-progress | 181,318 | 158,518 |
Property and equipment, net | 1,546,187 | 1,362,364 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 29,427 | 29,276 |
Field services equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,240,804 | 1,925,848 |
Field services equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 2 years | |
Field services equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 10 years | |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 64,963 | 62,683 |
Vehicles | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 4 years | |
Vehicles | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 7 years | |
Lease Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 123,629 | 106,087 |
Estimated useful lives | 10 years | |
Buildings and facilities | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 138,377 | 135,281 |
Buildings and facilities | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 5 years | |
Buildings and facilities | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 30 years | |
Mineral reserves | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 76,823 | 76,823 |
Estimated useful lives | 25 years | |
Office equipment and furniture | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 9,965 | $ 9,504 |
Office equipment and furniture | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 2 years | |
Office equipment and furniture | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 7 years |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 USD ($) property | Jun. 30, 2022 USD ($) property | Jun. 30, 2023 USD ($) property | Jun. 30, 2022 USD ($) property | Dec. 31, 2022 USD ($) property | |
Property, Plant and Equipment [Abstract] | |||||
Depreciation | $ 92.9 | $ 72.4 | $ 181.4 | $ 142.3 | |
Depletion | 0.3 | 0.3 | 0.6 | 0.6 | |
Land available-for-sale | 0.7 | 2 | 0.7 | 2 | $ 1.1 |
Real estate, building, held-for-sale | $ 0.8 | $ 6 | $ 0.8 | $ 6 | $ 6.2 |
Number of property available-for-sale | property | 1 | 1 | 1 | 1 | 2 |
Loss on sale of properties | $ 0 | $ 2.3 | |||
Number of property sold | property | 1 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||||
Amortization of right-of-use assets | $ 2,328 | $ 1,229 | $ 4,564 | $ 2,206 |
Interest on lease liabilities | 695 | 352 | 1,389 | 613 |
Operating lease cost | 10,064 | 12,635 | 20,638 | 22,134 |
Variable lease cost | 1,271 | 1,045 | 2,517 | 2,136 |
Short-term lease cost | 2,354 | 1,446 | 4,405 | 2,992 |
Total lease cost | $ 16,712 | $ 16,707 | $ 33,513 | $ 30,081 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Cash paid for amounts included in measurement of liabilities: | ||||
Operating leases | $ 10,383 | $ 12,863 | $ 20,260 | $ 21,895 |
Finance leases | 3,523 | 1,830 | 6,461 | 3,309 |
Right-of-use assets obtained in exchange for new lease liabilities: | ||||
Operating leases | 12,358 | 9,909 | 16,920 | 19,370 |
Finance leases | $ 14,384 | $ 6,333 | $ 17,173 | 6,333 |
Operating lease, right of use asset, write off | 1,800 | |||
Operating lease, liability, write off | 1,800 | |||
Finance lease, right of use asset recognized | 200 | |||
Finance lease, liability, recognized | $ 100 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rates (Details) | Jun. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating lease, weighted average remaining lease term | 4 years 7 months 6 days | 4 years 9 months 18 days |
Finance lease, weighted average remaining lease term | 3 years 2 months 12 days | 3 years 1 month 6 days |
Operating lease, weighted average discount rate | 5.30% | 4.60% |
Finance lease, weighted average discount rate | 8.10% | 8.20% |
Leases - Finance and Operating
Leases - Finance and Operating Leases Maturity (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Finance | |
Remainder of 2023 | $ 7,351 |
2024 | 10,783 |
2025 | 10,893 |
2026 | 16,145 |
2027 | 7,648 |
Thereafter | 0 |
Total lease payments | 52,820 |
Less imputed interest | (8,129) |
Total | 44,691 |
Operating | |
Remainder of 2023 | 16,860 |
2024 | 28,574 |
2025 | 26,295 |
2026 | 15,331 |
2027 | 6,310 |
Thereafter | 15,055 |
Total lease payments | 108,425 |
Less imputed interest | (12,153) |
Total | 96,272 |
Operating lease, residual value of leased asset | $ 14,000 |
Leases - Carrying Value of Asse
Leases - Carrying Value of Assets Subject to Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Lease Equipment | $ 123,629 | $ 106,087 |
Less: Accumulated depreciation | (18,199) | (11,408) |
Lease Equipment - net | $ 105,430 | $ 94,679 |
Leases - Lessor, Operating Leas
Leases - Lessor, Operating Lease, Payment to be Received, Maturity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||||
Remainder of 2023 | $ 8,337 | $ 8,337 | ||
2024 | 10,036 | 10,036 | ||
2025 | 3,346 | 3,346 | ||
2026 | 619 | 619 | ||
2027 | 0 | 0 | ||
Thereafter | 0 | 0 | ||
Total | 22,338 | 22,338 | ||
Revenue from operating leases | $ 9,600 | $ 5,900 | $ 18,200 | $ 11,800 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accrued vendor invoices | $ 110,039 | $ 119,801 |
Operations accruals | 60,716 | 72,348 |
Accrued benefits and other | 94,585 | 84,670 |
Accrued liabilities | $ 265,340 | $ 276,819 |
Debt - Summary of Debt (Details
Debt - Summary of Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 288,000 | |
Deferred financing costs and original issue discount | 0 | $ (1,270) |
Total debt, net of deferred financing costs and original issue discount | 288,000 | 218,446 |
Current portion of long-term debt, net of discount | 0 | 1,020 |
Long-term debt, net of discount and current portion | 288,000 | 217,426 |
Term Loan outstanding | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 0 | 104,716 |
Revolving Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 288,000 | $ 115,000 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 6 Months Ended | |||||
Jan. 23, 2023 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jan. 22, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 19, 2017 USD ($) agreement | |
Debt Instrument [Line Items] | ||||||
Proceeds from borrowings on line-of-credit | $ 525,000,000 | $ 400,000,000 | ||||
Long-term debt, gross | 288,000,000 | |||||
Revolving Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | $ 288,000,000 | $ 115,000,000 | ||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Number of credit agreements | agreement | 2 | |||||
Weighted average interest rate | 7.30% | 9% | ||||
Revolving Credit Facility | ABL Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 100,000,000 | $ 75,000,000 | $ 250,000,000 | |||
Revolving Credit Facility | ABL Credit Facility | Revolving Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 525,000,000 | $ 425,000,000 | ||||
Proceeds from borrowings on line-of-credit | 106,700,000 | |||||
Weighted average interest rate | 7.30% | |||||
Current borrowing capacity | $ 485,700,000 | |||||
Line of credit facility, covenant compliance, fixed charge coverage ratio | 1 | |||||
Line of credit facility, covenant compliance, excess availability threshold, percent of borrowing base | 10% | |||||
Line of credit facility, covenant compliance, excess availability threshold, amount | $ 52,500,000 | |||||
Revolving Credit Facility | ABL Credit Facility | Revolving Line of Credit | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Unused capacity, commitment fee percentage | 0.25% | |||||
Revolving Credit Facility | ABL Credit Facility | Revolving Line of Credit | Minimum | Secured Overnight Financing Rate (SOFR) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.50% | |||||
Revolving Credit Facility | ABL Credit Facility | Revolving Line of Credit | Minimum | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
Revolving Credit Facility | ABL Credit Facility | Revolving Line of Credit | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Unused capacity, commitment fee percentage | 0.375% | |||||
Revolving Credit Facility | ABL Credit Facility | Revolving Line of Credit | Maximum | Secured Overnight Financing Rate (SOFR) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2% | |||||
Revolving Credit Facility | ABL Credit Facility | Revolving Line of Credit | Maximum | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1% | |||||
Revolving Credit Facility | Term Loan Facility | Revolving Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 175,000,000 | |||||
Long-term debt, gross | $ 0 | |||||
Revolving Line of Credit | Term Loan Facility | ||||||
Debt Instrument [Line Items] | ||||||
Remaining borrowing capacity | 104,700,000 | |||||
Line of credit facility, accrued interest | 900,000 | |||||
Payment for debt extinguishment or debt prepayment cost | $ 1,100,000 | |||||
Debt instrument, prepayment premium percentage | 1% | |||||
Debt instrument, extinguishment of debt, bank and legal fees | $ 200,000 | |||||
Letter of Credit | ABL Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Remaining borrowing capacity | 194,200,000 | |||||
Letters of credit outstanding, amount | $ 3,500,000 |
Debt - Maturities of Debt (Deta
Debt - Maturities of Debt (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Debt Disclosure [Abstract] | |
Remainder of 2023 | $ 0 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
Thereafter | 288,000 |
Long-term debt, gross | $ 288,000 |
Fair Value Measurements and F_3
Fair Value Measurements and Financial Instruments (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 USD ($) property | Jun. 30, 2022 USD ($) property | Jun. 30, 2023 USD ($) property | Jun. 30, 2022 USD ($) property | Dec. 31, 2022 USD ($) property | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Land available-for-sale | $ 700 | $ 2,000 | $ 700 | $ 2,000 | $ 1,100 |
Real estate, building, held-for-sale | $ 800 | $ 6,000 | $ 800 | $ 6,000 | $ 6,200 |
Number of property available-for-sale | property | 1 | 1 | 1 | 1 | 2 |
Assets held-for-sale, long lived, fair value disclosure | $ 800 | $ 800 | $ 6,300 | ||
Cash equivalents measured at fair value | 300 | 300 | 300 | ||
Cash balances on deposit with financial institutions | 31,667 | $ 31,667 | 43,676 | ||
Customer payment terms, period | 45 days | ||||
Allowance for credit losses | 884 | $ 884 | 884 | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Provision for credit losses on December 31, 2022 | 884 | ||||
Credit Losses: | |||||
Current period provision | 0 | ||||
Amounts written off | 0 | ||||
Provision for credit losses on June 30, 2023 | $ 884 | $ 884 | $ 884 | ||
Customer Concentration Risk | Customer A | Accounts Receivable | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Concentration risk, percentage | 11% | ||||
Customer Concentration Risk | Customer A | Total Revenue | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Concentration risk, percentage | 11% | 10% | 11% | 10% |
Equity - Narrative (Details)
Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jun. 06, 2023 | Mar. 06, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jan. 24, 2023 | Dec. 31, 2022 | Jul. 25, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation expense | $ 4,200 | $ 15,100 | $ 11,000 | ||||||
Common stock, dividends, per share, declared (in dollars per share) | $ 0.05 | $ 0.10 | |||||||
Payments of dividends | $ 17,570 | $ 148 | |||||||
Stock repurchase program, remaining number of shares authorized to be repurchased | 239,900,000 | 239,900,000 | |||||||
Stock repurchase, accrued excise tax | $ 1,200 | $ 1,200 | |||||||
Common Class A | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock repurchase program, number of shares authorized to be repurchased (in shares) | 250,000,000 | ||||||||
Stock repurchase program, authorized amount | $ 500,000 | ||||||||
Stock repurchased and retired during period, shares (in shares) | 4,722,257 | 9,888,987 | |||||||
Stock repurchased and retired during period, value | $ 60,100 | $ 134,700 | |||||||
Stock repurchased and retired during period, average price per share (in dollars per share) | $ 12.73 | $ 13.63 | |||||||
Common Class A | Common Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Common stock, dividends, per share, declared (in dollars per share) | $ 0.05 | $ 0.05 | |||||||
Dividends, common stock, cash | $ 8,600 | $ 17,400 | |||||||
Par value reduction (in dollars per share) | $ 0.01 | ||||||||
Restricted Stock Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period of awards | 3 years | ||||||||
Share-based compensation expense | 8,000 | ||||||||
Unamortized compensation expense | 32,500 | $ 32,500 | |||||||
Weighted average remaining vesting period | 2 years | ||||||||
Performance Restricted Stock Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period of awards | 3 years | ||||||||
Restricted Stock and Restricted Stock Units (RSUs) | Common Class A | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Payments of dividends | $ 200 | ||||||||
Dividends payable | $ 500 | $ 500 | $ 200 |
Equity - Restricted Stock Units
Equity - Restricted Stock Units and Performance Restricted Stock Units (Details) | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding at beginning of period (in shares) | shares | 2,985,727 |
Granted (in shares) | shares | 553,069 |
Vested (in shares) | shares | (1,416,456) |
Forfeited (in shares) | shares | (49,802) |
Outstanding at end of period (in shares) | shares | 2,072,538 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 12.15 |
Granted (in dollars per share) | $ / shares | 15.49 |
Vested (in dollars per share) | $ / shares | 11.44 |
Forfeited (in dollars per share) | $ / shares | 11.32 |
Outstanding at end of period (in dollars per share) | $ / shares | $ 13.55 |
Performance Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding at beginning of period (in shares) | shares | 1,390,588 |
Granted (in shares) | shares | 341,928 |
Vested (in shares) | shares | (392,948) |
Forfeited (in shares) | shares | 0 |
Outstanding at end of period (in shares) | shares | 1,339,568 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 11.87 |
Granted (in dollars per share) | $ / shares | 15.64 |
Vested (in dollars per share) | $ / shares | 9.62 |
Forfeited (in dollars per share) | $ / shares | 0 |
Outstanding at end of period (in dollars per share) | $ / shares | $ 13.49 |
Net Income per Share - Earnings
Net Income per Share - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Numerator: | ||||
Net income attributable to Liberty Energy Inc. stockholders | $ 152,671 | $ 105,156 | $ 315,326 | $ 99,780 |
Denominator: | ||||
Basic weighted average common shares outstanding (in shares) | 173,131 | 186,719 | 174,840 | 185,367 |
Basic net income per share attributable to Liberty Energy Inc. stockholders (in dollars per share) | $ 0.88 | $ 0.56 | $ 1.80 | $ 0.54 |
Numerator: | ||||
Net income attributable to Liberty Energy Inc. stockholders | $ 152,671 | $ 105,156 | $ 315,326 | $ 99,780 |
Effect of exchange of the shares of Class B Common Stock for shares of Class A Common Stock | 0 | 183 | 71 | 79 |
Diluted net income attributable to Liberty Energy Inc. stockholders | $ 152,671 | $ 105,339 | $ 315,397 | $ 99,859 |
Denominator: | ||||
Basic weighted average shares outstanding (in shares) | 173,131 | 186,719 | 174,840 | 185,367 |
Effect of dilutive securities: | ||||
Restricted stock units (in shares) | 3,094 | 3,396 | 3,955 | 4,049 |
Class B Common Stock (in shares) | 0 | 326 | 42 | 1,207 |
Diluted weighted average shares outstanding (in shares) | 176,225 | 190,441 | 178,837 | 190,623 |
Diluted net income per share attributable to Liberty Energy Inc. stockholders (in dollars per share) | $ 0.87 | $ 0.55 | $ 1.76 | $ 0.52 |
Net Income per Share - Schedule
Net Income per Share - Schedule of Antidilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Common Class B | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 0 | 7 | 0 | 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jan. 31, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Operating Loss Carryforwards [Line Items] | ||||||
Income taxes payable | $ 52,291 | $ 52,291 | $ 2,294 | |||
Taxes payable, noncurrent | 114,842 | $ 114,842 | 118,874 | |||
Effective combined income tax rate | 24.40% | 1.10% | ||||
Income tax expense | 47,332 | $ 235 | $ 101,815 | $ 1,065 | ||
Deferred tax liability | 1,067 | 1,067 | 1,044 | |||
Deferred tax assets | 21,240 | 21,240 | 12,592 | |||
Tax Receivable Agreement | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Income taxes payable | 119,500 | 119,500 | 118,900 | |||
Taxes payable, current | 4,700 | 4,700 | ||||
Taxes payable, noncurrent | 114,800 | 114,800 | ||||
Deferred tax asset | 99,900 | 99,900 | $ 99,900 | |||
Effect of exchange on deferred tax asset, net of liability under tax receivable agreements | $ 7,800 | |||||
Tax Receivable Agreement | Common Class B | Common Stock | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Income taxes payable | 600 | 5,500 | 600 | 5,500 | ||
Deferred tax asset | $ 700 | $ 6,500 | $ 700 | $ 6,500 |
Defined Contribution Plan (Deta
Defined Contribution Plan (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Maximum annual contribution per employee, percent | 6% | |||
401(k) Defined Contribution Retirement Plan | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Employer matching contribution per one dollar of employee contribution | $ 1 | |||
Contributions made by the employer | $ 8,600,000 | $ 6,000,000 | $ 16,200,000 | $ 12,100,000 |
Related Party Transactions (Det
Related Party Transactions (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||
Oct. 01, 2023 | Jan. 31, 2023 shares | Jan. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) | Sep. 30, 2023 | Dec. 31, 2022 USD ($) | |
Related Party Transaction [Line Items] | |||||||||
Accounts payable, current | $ 368,723 | $ 368,723 | $ 326,818 | ||||||
Accrued liabilities, current | 265,340 | 265,340 | 276,819 | ||||||
Revenues | 1,194,988 | $ 942,619 | 2,457,065 | $ 1,735,389 | |||||
Unbilled receivables, current | 201,907 | 201,907 | 175,704 | ||||||
Prepaid expense and other current assets | 121,985 | 121,985 | 112,531 | ||||||
Other assets | 133,292 | 133,292 | 105,300 | ||||||
Interest income | 350 | 0 | 723 | 0 | |||||
Related Party | |||||||||
Related Party Transaction [Line Items] | |||||||||
Accounts payable, current | 0 | 0 | 2,629 | ||||||
Accrued liabilities, current | 0 | 0 | 730 | ||||||
Revenues | 52,231 | 1,249 | 81,988 | 23,538 | |||||
Unbilled receivables, current | 29,002 | 29,002 | 13,854 | ||||||
Accounts receivable | 7,162 | 7,162 | 0 | ||||||
Prepaid expense and other current assets | 6,426 | 6,426 | 0 | ||||||
Other assets | $ 0 | $ 0 | 11,799 | ||||||
Common Class A | |||||||||
Related Party Transaction [Line Items] | |||||||||
Stock repurchased and retired during period, shares (in shares) | shares | 4,722,257 | 9,888,987 | |||||||
Stock repurchased and retired during period, value | $ 60,100 | $ 134,700 | |||||||
Stock repurchased and retired during period, average price per share (in dollars per share) | $ / shares | $ 12.73 | $ 13.63 | |||||||
Schlumberger | |||||||||
Related Party Transaction [Line Items] | |||||||||
Common stock, shares, owned by counterparty (in shares) | shares | 0 | ||||||||
Schlumberger | Related Party | |||||||||
Related Party Transaction [Line Items] | |||||||||
Purchases from related party | $ 1,700 | 4,500 | 8,100 | ||||||
Accounts payable, current | 2,600 | ||||||||
Accrued liabilities, current | 700 | ||||||||
Schlumberger | Common Class A | |||||||||
Related Party Transaction [Line Items] | |||||||||
Stock repurchased and retired during period, shares (in shares) | shares | 3,000,000 | ||||||||
Stock repurchased and retired during period, value | $ 45,000 | ||||||||
Stock repurchased and retired during period, average price per share (in dollars per share) | $ / shares | $ 15 | ||||||||
Franklin Mountain Energy, LLC | Related Party | Hydraulic Fracturing Services | |||||||||
Related Party Transaction [Line Items] | |||||||||
Revenues | $ 43,500 | 1,200 | $ 66,800 | 23,500 | |||||
Unbilled receivables, current | 27,500 | 27,500 | 13,900 | ||||||
Accounts receivable | 0 | 0 | 0 | ||||||
Liberty Resources LLC | Affiliated Entity | Hydraulic Fracturing Services | |||||||||
Related Party Transaction [Line Items] | |||||||||
Revenues | 8,700 | 0 | 15,200 | 0 | |||||
Accounts receivable | 1,500 | 1,500 | 7,200 | ||||||
Prepaid expense and other current assets | 6,400 | 6,400 | |||||||
Other assets | $ 11,800 | ||||||||
Interest income | $ 400 | $ 0 | $ 700 | $ 0 | |||||
Liberty Resources LLC | Affiliated Entity | Hydraulic Fracturing Services | Forecast | |||||||||
Related Party Transaction [Line Items] | |||||||||
Related party transactions, interest rate percentage | 0.18 | 0.15 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 USD ($) T | Dec. 31, 2022 T | |
Schlumberger | ||
Long-term Purchase Commitment [Line Items] | ||
Shortfall fees, remainder of 2023 | $ 3.8 | |
Shortfall Fees | ||
Long-term Purchase Commitment [Line Items] | ||
Shortfall fees, remainder of 2023 | 29.9 | |
Shortfall fees in 2024 | $ 8.7 | |
Proppants | ||
Long-term Purchase Commitment [Line Items] | ||
Minimum mass required (in tons) | T | 2,053,765 | 2,915,172 |
Commitments and Contingencies_2
Commitments and Contingencies - Proppant, Chemical and Rail Car Commitments (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2023 | $ 134,598 |
2024 | 70,800 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
Thereafter | 0 |
Other commitment | $ 205,398 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data - Equity Statement (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 06, 2023 | Mar. 06, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | $ 1,590,119 | $ 1,233,666 | $ 1,497,306 | |||
Exchange of Class B Common Stock for Class A Common Stock | 0 | |||||
Offering Costs | (502) | |||||
$0.10/share of Class A Common Stock dividend | (8,761) | |||||
Share repurchases | (60,094) | |||||
Excise tax on share repurchases | (639) | |||||
Stock-based compensation expense | 7,965 | 4,201 | ||||
Vesting of restricted stock units | 0 | 0 | ||||
Tax withheld on vesting of restricted stock units | (9,320) | (9,676) | ||||
Foreign currency translation | 2,000 | (3,012) | 1,530 | $ (1,956) | ||
Net income | 152,671 | 105,339 | 315,417 | 99,859 | ||
Ending balance | $ 1,673,941 | 1,330,016 | $ 1,673,941 | 1,330,016 | ||
Common stock, dividends, per share, declared (in dollars per share) | $ 0.05 | $ 0.10 | ||||
Total Stockholders’ Equity | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | $ 1,590,119 | 1,231,261 | $ 1,495,017 | 1,213,242 | ||
Exchange of Class B Common Stock for Class A Common Stock | 130 | 2,360 | 15,817 | |||
Offering Costs | (502) | (223) | (564) | |||
Deferred tax impact of ownership changes from issuance of Class A Common Stock | 103 | |||||
$0.10/share of Class A Common Stock dividend | (8,761) | (17,877) | ||||
Share repurchases | (60,094) | (134,719) | ||||
Excise tax on share repurchases | (639) | (1,178) | ||||
Stock-based compensation expense | 7,965 | 4,194 | 15,140 | 10,931 | ||
Vesting of restricted stock units | 12 | 1 | 20 | |||
Tax withheld on vesting of restricted stock units | (9,320) | (9,676) | (9,320) | |||
Foreign currency translation | 2,000 | (3,006) | 1,529 | (1,957) | ||
Net income | 152,671 | 105,156 | 315,326 | 99,780 | ||
Ending balance | 1,673,941 | 1,327,569 | 1,673,941 | 1,327,569 | ||
Additional Paid in Capital | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | 1,208,183 | 1,389,987 | 1,266,097 | 1,367,642 | ||
Exchange of Class B Common Stock for Class A Common Stock | 130 | 2,360 | 15,817 | |||
Offering Costs | (502) | (223) | (564) | |||
Deferred tax impact of ownership changes from issuance of Class A Common Stock | 103 | |||||
Share repurchases | (60,047) | (134,620) | ||||
Excise tax on share repurchases | (639) | (1,178) | ||||
Stock-based compensation expense | 7,965 | 4,194 | 15,140 | 10,931 | ||
Vesting of restricted stock units | (12) | 1 | (11) | 8 | ||
Tax withheld on vesting of restricted stock units | (9,320) | (9,676) | (9,320) | (9,700) | ||
Ending balance | 1,146,130 | 1,384,134 | 1,146,130 | 1,384,134 | ||
Retained Earnings | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | 388,064 | (161,330) | 234,525 | (155,954) | ||
$0.10/share of Class A Common Stock dividend | (8,761) | (17,877) | ||||
Net income | 152,671 | 105,156 | 315,326 | 99,780 | ||
Ending balance | 531,974 | (56,174) | 531,974 | (56,174) | ||
Accumulated Other Comprehensive Loss | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | (7,867) | 743 | (7,396) | (306) | ||
Foreign currency translation | 2,000 | (3,006) | 1,529 | (1,957) | ||
Ending balance | (5,867) | (2,263) | (5,867) | (2,263) | ||
Non-controlling Interest | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | 0 | 2,405 | 2,289 | 17,197 | ||
Exchange of Class B Common Stock for Class A Common Stock | (130) | (2,360) | (15,817) | |||
Offering Costs | 0 | |||||
Share repurchases | (23) | |||||
Stock-based compensation expense | 7 | 3 | 83 | |||
Vesting of restricted stock units | (12) | (1) | (20) | |||
Foreign currency translation | (6) | 1 | 1 | |||
Net income | 183 | 91 | 79 | |||
Ending balance | $ 0 | $ 2,447 | $ 0 | $ 2,447 | ||
Common Class A | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance (in shares) | 178,753,125 | |||||
Ending balance (in shares) | 170,393,226 | 170,393,226 | ||||
Common Class A | Common Stock | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance (in shares) | 173,945,000 | 185,761,000 | 178,753,000 | 183,385,000 | ||
Beginning balance | $ 1,739 | $ 1,858 | $ 1,788 | $ 1,834 | ||
Exchanges of Class B Common Stock for Class A Common Stock (shares) | 14,000 | 250,000 | 2,306,000 | |||
Exchange of Class B Common Stock for Class A Common Stock | $ 3 | $ 23 | ||||
Share repurchase (shares) | (4,722,000) | (9,889,000) | ||||
Share repurchases | $ (47) | $ (99) | ||||
Vesting of restricted stock units (in shares) | 1,170,000 | 1,084,000 | 1,279,000 | 1,168,000 | ||
Vesting of restricted stock units | $ 12 | $ 11 | $ 12 | $ 12 | ||
Ending balance (in shares) | 170,393,000 | 186,859,000 | 170,393,000 | 186,859,000 | ||
Ending balance | $ 1,704 | $ 1,869 | $ 1,704 | $ 1,869 | ||
Common stock, dividends, per share, declared (in dollars per share) | $ 0.05 | $ 0.05 | ||||
Common Class B | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance (in shares) | 250,222 | |||||
Ending balance (in shares) | 0 | 0 | ||||
Common Class B | Common Stock | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance (in shares) | 0 | 340,000 | 250,000 | 2,632,000 | ||
Beginning balance | $ 0 | $ 3 | $ 3 | $ 26 | ||
Exchanges of Class B Common Stock for Class A Common Stock (shares) | (14,000) | (250,000) | (2,306,000) | |||
Exchange of Class B Common Stock for Class A Common Stock | $ (3) | $ (23) | ||||
Ending balance (in shares) | 0 | 326,000 | 0 | 326,000 | ||
Ending balance | $ 0 | $ 3 | $ 0 | $ 3 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | 3 Months Ended | 6 Months Ended | |||
Jul. 18, 2023 | Jun. 06, 2023 | Mar. 06, 2023 | Jun. 30, 2023 | Jun. 30, 2023 | |
Subsequent Event [Line Items] | |||||
Common stock, dividends, per share, declared (in dollars per share) | $ 0.05 | $ 0.10 | |||
Common Class A | Common Stock | |||||
Subsequent Event [Line Items] | |||||
Common stock, dividends, per share, declared (in dollars per share) | $ 0.05 | $ 0.05 | |||
Common Class A | Common Stock | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Common stock, dividends, per share, declared (in dollars per share) | $ 0.05 |