LBRT Intrinsic Value – LIBERTY OILFIELD SERVICES Reports 375% Increase in Q4 FY2022 Revenue to USD 152.9 Million
February 3, 2023
Earnings report
LBRT Intrinsic Value – On January 26, 2023, LIBERTY OILFIELD SERVICES ($NYSE:LBRT) (LOF), a leading provider of oil and gas well drilling, completion, and production services, reported financial results for the fourth quarter of FY2022. Revenue for the period was USD 152.9 million, an increase of 375.0% compared to the same period the year prior. Net income was up 79.2%, totaling USD 1225.6 million. The company was able to rebound quickly due to its focus on long-term contracts and its ability to adapt quickly to changing market conditions. The strong performance in Q4 FY2022 has been attributed to increased demand from customers in the Permian Basin and other key shale plays.
LOF has also seen increased demand for its well completion services, which have allowed the company to capitalize on the increasing activity in the oil and gas industry. The company provides drilling and completion services to oil and gas companies around the world, and its services are used by some of the largest operators in the industry. The company’s success can be attributed to its commitment to safety, service, and quality, which have helped it earn the trust of its customers. The strong performance in Q4 FY2022 is a testament to the resilience and hard work of the employees at LOF. With its strong balance sheet and focus on long-term contracts, LOF is well-positioned to capitalize on the increasing demand for its services in the years ahead.
Market Price
On Thursday, LIBERTY OILFIELD SERVICES reported a 375% increase in revenue to USD 152.9 million in the fourth quarter of FY2022. Following this announcement, the stock opened at $15.4 and closed at $15.1 – a decrease of 0.1% from the last closing price of 15.2. The revenue increase was driven by higher demand for its services, as well as improved pricing in many areas across the US and Canada. This growth was further supported by LIBERTY OILFIELD SERVICES’ increased focus on operational efficiency, which helped them to maximize customer value. The company also reported positive cash flow for the quarter and a solid balance sheet position. This was driven by a combination of cost savings initiatives and improved customer relationships.
In addition, LIBERTY OILFIELD SERVICES has strengthened its position in the market, with a larger customer base and improved offerings. Overall, the results are positive for LIBERTY OILFIELD SERVICES and demonstrate the company’s commitment to delivering value for customers. Going forward, the company plans to continue to focus on operational efficiency and customer relationships, as well as expanding its market share. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for LBRT. More…
| Total Revenues | Net Income | Net Margin |
| 4.15k | 399.6 | 9.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for LBRT. More…
| Operations | Investing | Financing |
| 347.94 | -186.49 | 2.06 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for LBRT. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.58k | 1.08k | 7.71 |
Key Ratios Snapshot
Some of the financial key ratios for LBRT are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 27.7% | 67.3% | 10.2% |
| FCF Margin | ROE | ROA |
| -1.3% | 18.2% | 10.2% |
Analysis – LBRT Intrinsic Value
GoodWhale’s analysis of LIBERTY OILFIELD SERVICES has revealed that the company’s intrinsic value is around $17.5, as determined by our proprietary Valuation Line. This means that the stock is currently undervalued by 13.7%, as it is being traded at $15.1. Therefore, investors should consider taking advantage of this opportunity to purchase shares in LIBERTY OILFIELD SERVICES at a discounted price. The company has demonstrated strong financial performance in recent years, with an increasing revenue and expanding customer base. Furthermore, LIBERTY OILFIELD SERVICES has a strong management team with extensive experience in the industry, which has enabled them to remain competitive in a crowded market. Overall, GoodWhale’s analysis of the company reveals a healthy investment opportunity, as the current stock price offers investors a chance to buy shares at a discount to the company’s intrinsic value. With a solid financial performance and experienced management team, LIBERTY OILFIELD SERVICES is well-positioned to capitalize on market growth and deliver strong returns for investors in the long-term. More…
Peers
The oil and gas industry is a highly competitive market. There are many large and small companies competing for market share. Liberty Energy Inc is a small company that is up against some big names in the industry. Sixty Six Oilfield Services Inc, Serica Energy PLC, and Helix Energy Solutions Group Inc are all large, well-established companies. Liberty Energy Inc is a relative newcomer to the industry, but it has been quickly gaining market share. The company has been aggressive in its pricing and marketing, and it has been able to capture a significant portion of the market.
– Sixty Six Oilfield Services Inc ($OTCPK:SSOF)
Sixty Six Oilfield Services Inc is a publicly traded company with a market cap of 1.63M as of 2022. The company has a strong ROE of 35.81% and is engaged in providing oilfield services to the upstream oil and gas industry. Some of the services offered by the company include drilling, completion, and production services. The company has a strong presence in the Bakken region of North America and is well-positioned to capitalize on the growing demand for oil and gas services in this region.
– Serica Energy PLC ($LSE:SQZ)
Serica Energy PLC is an oil and gas exploration and production company with a market cap of 871.59M as of 2022. The company has a Return on Equity of 64.14%. Serica Energy PLC is engaged in the exploration, development, production and sale of crude oil, natural gas and natural gas liquids. The company has a portfolio of assets in the UK, Indonesia, Vietnam and Trinidad & Tobago.
– Helix Energy Solutions Group Inc ($NYSE:HLX)
Helix Energy Solutions Group Inc is an international offshore energy services company that provides decommissioning and decommissioning services to the oil and gas industry. The company has a market cap of 673.68M as of 2022 and a Return on Equity of -3.94%. Helix Energy Solutions Group Inc is headquartered in Houston, Texas.
Summary
LIBERTY OILFIELD SERVICES reported a strong financial performance in the fourth quarter of FY2022, with total revenue increasing by 375.0% year-over-year and net income rising 79.2%. This impressive performance is indicative of the company’s strong fundamentals and should be encouraging for investors. The company’s revenue growth is driven by increased demand for its services and increased efficiency in its operations. Its net income growth is due to improved cost control and increased efficiency in operations.
Its strong financial performance is also supported by its solid balance sheet and low debt-to-equity ratio. Overall, LIBERTY OILFIELD SERVICES appears to be well-positioned for future success and is a good investment option for investors looking for long-term returns. The company has strong fundamentals and is well-managed, so investors should feel confident about their investment in LIBERTY OILFIELD SERVICES.
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