About Liberty Energy

Liberty Energy Inc. is a leading integrated energy services and technology company focuses on providing innovative hydraulic services and related technologies to onshore oil and natural gas exploration and production (E&P) companies in North America. The company offers customers hydraulic fracturing services, together with complementary services, including wireline services, proppant delivery solutions, field gas processing and treating, compressed natural gas (CNG) delivery, data analytics, related goods (including its sand mine operations), and technologies that will facilitate lower emission completions, thereby helping its customers reduce their emissions profile. The company’s areas of operations are in all of the most active shale basins in North America, including the Permian Basin, the Williston Basin, the Eagle Ford Shale, the Haynesville Shale, the Appalachian Basin (Marcellus Shale and Utica Shale), the Western Canadian Sedimentary Basin, the Denver-Julesburg Basin (the DJ Basin), and the Anadarko Basin. The company’s operations also extend to a few smaller shale basins, including the Uinta Basin, the Powder River Basin, and the San Juan Basin. The company’s hydraulic fracturing fleets consist of mobile hydraulic fracturing units and other auxiliary heavy equipment to perform fracturing services. The company’s hydraulic fracturing units consist primarily of high-pressure hydraulic pumps, engines, transmissions, radiators and other supporting equipment that are typically mounted on trailers. The company refers to the group of units and other equipment, such as blenders, data vans, sand storage, tractors, manifolds and high-pressure fracturing iron, which are necessary to perform a typical hydraulic fracturing job, as a fleet, and the personnel assigned to each fleet as a crew. The size of each fleet and crew can vary depending on the requirements of each job design. Wireline operations supplement the company’s hydraulic fracturing fleets, which consist of a truck equipped with a spool of wireline that is lowered into wells to convey specialized tools or equipment, such as perforating guns and charges, which are necessary to connect the wellbore with the target formation. This operation is performed between each hydraulic fracturing stage. The company’s wireline service is primarily offered alongside its hydraulic fracturing services, which allows it to maximize efficiency for its customers through optimized coordination of the wireline and hydraulic fracturing services. In addition, the company offers its wireline service on a stand-alone basis. The company also operates two sand mines that allows it to vertically integrate its supply-chain in the Permian Basin. The mines provide sand to Liberty hydraulic fracturing fleets as well as to third parties. With a secured supply of regional sand in the basin, the company reduces its dependency on other providers and any downtime that could result from sand supply issues. The company provides last-mile proppant delivery solutions, including proppant handling equipment and logistics software across North America. The company offers innovative environmentally friendly technology with optimized dry and wet sand containers and wellsite proppant handling equipment that drive logistics efficiency and reduce noise and emissions. The company offers customers the latest real-time logistics software, PropConnect, as a hosted software as a service. In 2023, the company launched Liberty Power Innovations LLC (LPI), an integrated alternative fuel and power solutions provider for remote applications. In 2023, LPI expanded its footprint with the acquisition of Siren Energy & Logistics, LLC (Siren) (the Siren Acquisition), a Permian focused integrated natural gas compression and CNG delivery business. LPI provides CNG supply, field gas processing and treating, and well site fueling and logistics. LPI was formed with the initial focus on supporting Liberty’s transition towards its next generation digiFleets and dual fuel fleets, as CNG fueling services are limited in the market, yet critical to maintaining highly efficient well site operations. LPI primarily focuses on supporting an industry transition to natural gas fueled technologies, serving as a key enabler of the next step of cost and emissions reductions in the oilfield. The company’s operations are organized into a single business segment, which consists of hydraulic fracturing services, including wireline, proppant delivery and goods, including its Permian Basin sand mines, and natural gas compression and delivery, and it has one reportable geographical segment, North America. The company has grown from one active hydraulic fracturing fleet as of December 2011 to over 40 active fleets as of December 31, 2023. The company focuses on providing next-generation frac fleets and technologies to assist its customers with completing their wells in an environmental, social, and governance (ESG) friendly manner. The company remains proactive in developing innovative solutions to industry challenges, including developing its databases of U.S. unconventional wells to which it applies its proprietary multi-variable statistical analysis technologies to provide differential insight into fracture design optimization; its Liberty Quiet Fleet design, which significantly reduces noise levels compared to conventional hydraulic fracturing fleets; hydraulic fracturing fluid systems tailored to the specific reservoir properties in the basins in which it operates; its dual fuel dynamic gas blending (DGB) fleets that allow its engines to run diesel or a combination of diesel and natural gas, to optimize fuel use, reduce emissions and lower costs; its digiFleets, comprising of digiFrac and digiPrime pumps, its innovative, purpose-built electric and hybrid frac pumps that has approximately 25% lower CO2e emission profile than the Tier IV DGB; its wet sand handling technology which eliminates the need to dry sand, enabling the deployment of mobile mines nearer to wellsites; and the launch of LPI to support the transition to its digiFleets as well as the transition to lower costs and emissions in the oilfield. In addition, the company’s integrated supply chain includes proppant, chemicals, equipment, natural gas fueling services, logistics and integrated software which promotes wellsite efficiency and leads to more pumping hours and higher productivity throughout the year to better service its customers. Intellectual Property The company holds approximately 500 patents and patent licenses relating to the company’s engineering and technology solutions. Seasonality The company’s results of operations have historically reflected seasonal tendencies relating to holiday seasons, inclement weather and the conclusion of its customers’ annual drilling and completion capital expenditure budgets. The company’s most notable declines typically occur in the fourth quarter of the year (year ended December 31, 2023). Additionally, some of the areas in which the company has operations, including Canada, the DJ Basin, Powder River Basin and Williston Basin, are adversely affected by seasonal weather conditions, primarily in the winter and spring. Governmental Regulation The company is subject to a number of federal and state laws and regulations, including the OSHA, establishing requirements to protect the health and safety of workers. The OSHA hazard communication standard, the EPA community right-to-know regulations under Title III of the federal Superfund Amendment and Reauthorization Act, and comparable state statutes require maintenance of information about hazardous materials used or produced in operations and provision of this information to employees, state and local government authorities, and citizens. The company is also subject to OSHA’s regulatory standard for respirable crystalline silica, which provides measures to protect workers in hydraulic fracturing operations from exposure to this chemical including limiting exposure to airborne respirable crystalline silica in excess of a specified limit. The company is subject to Mine Safety & Health Administration regulations related to operation of sand mines including regulations for training and retraining of workers engaged in sand mine operations. In addition, the EPA has used the federal Clean Air Act (CAA) to impose additional greenhouse gas emissions control requirements upon the company’s customers. To the extent that the company’s customers’ activities, as well as proposed plans, on federal lands require governmental permits that are subject to the requirements of the National Environmental Policy Act (NEPA), this process has the potential to delay or impose additional conditions upon the development of oil and natural gas projects which in turn could reduce demand for the company’s services. In Alberta, provincial legislation potentially applicable to the company’s Canadian operations includes the Environmental Protection and Enhancement Act, RSA 2000, e E-12. This Act promotes the protection, enhancement and wise use of the environment, and deals with matters, such as air emissions, water discharges, and the handling of hazardous substances and waste control (for example, under the Waste Control Regulation, Alta Reg 192/1996). Federal legislation potentially applicable to its Canadian operations includes legislation focused on regulating greenhouse gases (the Greenhouse Gas Pollution Pricing Act, SC 2018, c 12, s 186), legislation aimed at protecting wildlife (the Species at Risk Act, SC 2002, c 29, Fisheries Act, RSC 1985, c F-14, and Migratory Birds Convention Act, 1994, SC 1994, c 22), and legislation governing the transportation of potentially dangerous substances and prevention of pollution (the Transportation of Dangerous Goods Act, 1992, SC 1992, c 34 and Canadian Environmental Protection Act, 1999, SC 1999, c 33). Marketing and Customers The company has developed long-term partnerships with its customers through a continuous dialogue focused on their production economics. The company’s customer base includes a broad range of integrated and independent E&P companies, including some of the largest E&P companies in its areas of operation. The company’s technological innovations, customer-tailored approach and track record of consistently providing high-quality, safe and reliable service has allowed it to develop long-term customer partnerships. The company’s sales and marketing activities typically are performed through its local sales representatives in each geographic region and are supported by its corporate headquarters. Suppliers In 2018, the company vertically integrated a supplier of certain major components through the acquisition of ST9 Gas and Oil LLC, which recently changed its name to Liberty Advanced Equipment Technologies LLC. In October 2021, the company vertically integrated a supplier of its containerized sand and last mile proppant logistics solutions with the acquisition of PropX. Competition The company’s hydraulic fracturing services compete with large, integrated companies, such as Halliburton Company, as well as other companies, including Patterson-UTI Energy Inc., ProFrac Holding Corp., and ProPetro Services, Inc. History The company was founded in 2011. The company was incorporated as a Delaware corporation in 2016. It was formerly known as Liberty Oilfield Services Inc. and changed its name to Liberty Energy Inc. in 2022.