Liberty Energy (NYSE:LBRT) reported third-quarter 2026 revenue of $1.2 billion and adjusted EBITDA of $142 million, as strong fleet utilization and modest pricing gains were partly offset by drilling-related delays and inflationary pressures.
The company posted a net loss of $39 million, or $0.24 per diluted share, compared with net income of $43 million, or $0.26 per share, in the prior quarter. Adjusted net income was $10 million, or $0.06 per diluted share, versus $14 million, or $0.09 per share, in the second quarter. Chief Financial Officer Michael Stock said results excluded $49 million of tax-affected unrealized losses on investments and transaction and other costs.
Chief Executive Officer Ron Gusek said the company’s completions business improved from cyclical lows earlier in the year, supported by operational execution, higher utilization and improving pricing. However, drilling crews’ efforts to replenish well inventories after accelerated completions activity in the second quarter created delays during the third quarter.
Natural Gas-Fueled Fleet Savings and Pricing
Liberty said more than 60% of fuel consumed by its fleets during the quarter was substituted with natural gas, a record level for the company. Gusek said the resulting annualized fuel savings for customers exceeded $1 billion.
The company attributed the fuel-cost reductions to investments in natural gas-fueled equipment and its digital operating systems. Gusek said the technology supports fleet utilization and pricing resilience, particularly for digiFleet assets and other next-generation equipment.
“Fleets like that remain in high demand through ups and downs,” Gusek said during the question-and-answer session. He added that natural gas fuel savings can allow Liberty to seek pricing increases while preserving customer well economics.
Looking into 2027, Gusek said Liberty sees a more supportive market for modest quarter-to-quarter pricing gains. He cited a stronger oil forward curve, which he said has improved producers’ ability to hedge and enhanced confidence in customer activity plans. The company expects inflationary pressure to continue, especially in labor and trucking, though Gusek said certain cost increases such as tariffs and fluids have largely stabilized.
Liberty expects a seasonal fourth-quarter slowdown associated with weather and holidays, though Stock said the decline should be smaller than normal because of demand strength and activity deferred from the third quarter. The company said it is not seeing budget exhaustion among customers and expects completion programs to continue through year-end.
Power Agreement Targets 1.2 GW for Data Centers
Liberty also highlighted a strategic development agreement entered through its LPI power business with a frontier artificial intelligence lab and a dedicated infrastructure platform. The agreement covers 1.2 gigawatts of integrated power services for data center campuses.
The arrangement includes a significant prepayment of capacity fees and targets execution of an initial energy services agreement, or ESA, for approximately 500 megawatts by December 2026. The development agreement provides for phased energization from the fourth quarter of 2027 through the first quarter of 2029, along with commercial terms for further long-term ESAs.
Stock said the customer’s capacity-fee prepayment is expected to be in the hundreds of millions of dollars and will be received in the near term. The prepayment covers the full 1.2 GW agreement rather than only the first 500 MW project, he said, and will be amortized as capacity payments over roughly the first five years of the contract.
Gusek said the expected ESA structure would contemplate a 15-year term with a renewal option. Stock said all major commercial terms have been agreed, with the parties now completing legal drafting and site-specific contract provisions. Once the first ESA is finalized, subsequent agreements could require less work because the broader commercial framework will already be established, he said.
Management said individual ESAs are expected to be tied to data-center construction phases, as customers build sites building by building. Liberty said it has identified alternative sites in different states should a primary location encounter delays or opposition.
Financing Strategy and Capital Spending
Liberty ended the quarter with $119 million in cash, net debt of $1.2 billion and total liquidity of $669 million, including credit-facility availability. The company had no revolving-credit borrowings, aside from $30 million in letters of credit.
Third-quarter net capital expenditures and long-term deposits totaled $622 million. That figure included about $450 million for power-generation deposits and other power investments, digiFleets, maintenance spending and other projects. Liberty’s full-year capital expenditure guidance of $1.5 billion remains unchanged, Stock said.
The company said it raised approximately $1.3 billion of gross proceeds through zero-coupon convertible note offerings earlier in 2026. Stock said the capital allowed Liberty to secure long-lead equipment needed for power projects. The company plans to use non-recourse, project-level financing as projects move forward, with financing expected to begin in early 2027.
Under the anticipated structure, Liberty would transfer assets or purchase contracts into dedicated special-purpose vehicles after ESAs are signed. Those entities would then obtain project financing and reimburse the corporation for prior expenditures. Stock said Liberty is targeting approximately 20% equity and 80% debt within the project-level vehicles.
Management reiterated that it expects to achieve high-teens returns on all deployed capital in its power projects. The capital required for a project will vary based on the complexity of its balance-of-plant systems, including power-quality equipment designed for volatile data-center loads.
Dividend Increase and Capacity Outlook
Liberty returned approximately $15 million to shareholders through dividends in the third quarter. Its board increased the quarterly cash dividend by 11% to $0.10 per share.
The company said it remains confident it can make 3 GW of generation capacity available and energized by the end of 2029. Gusek said Liberty still has capacity available for deployment in late 2027 and through 2028, while most of the remaining capacity under discussion is for late 2028 and 2029.
Management said it intends to continue investing in both the completions and power businesses. Stock described the strategy as a long-term effort to build durable businesses in both markets rather than prioritize short-term returns.
About Liberty Energy (NYSE:LBRT)
Liberty Energy Inc is an oilfield services company that provides completion and production services to exploration and production companies. Its primary business is hydraulic fracturing, a well-stimulation technique used to improve the flow of oil and natural gas from unconventional reservoirs.
The company also offers wireline services, well diagnostics, frac data analysis, engineering support, and related technologies designed to help customers plan, execute, and evaluate well-completion operations.
