7 Cheap Energy Stocks To Buy Under $20

05. Liberty Energy Inc. (NYSE:LBRT)

Number of Hedge Fund Holders: 31

Forward P/E Ratio as of September 29: 7.57

Liberty Energy Inc. (NYSE:LBRT) is a key player in the energy services industry, specializing in providing hydraulic fracturing services and related technologies to oil and gas exploration companies across North America. The company was founded in 2011 and is headquartered in Denver, Colorado. With a forward P/E ratio of 7.57, the stock presents an attractive valuation, making it a solid addition to a list of cheap energy stocks to consider under $20. Liberty Energy Inc. (NYSE:LBRT) operates in several key shale basins, including the Permian Basin, Williston Basin, and Eagle Ford Shale, among others. The company also has an extensive portfolio of assets, comprising approximately 40 active hydraulic fracturing fleets and two sand mines, which position it strongly within the energy services sector.

For the second quarter of 2024, Liberty Energy Inc. (NYSE:LBRT) reported revenue of $1.2 billion, up by 8% from the previous quarter, and adjusted EBITDA of $273 million, a 12% sequential increase. The company achieved these results despite a slight decline in industry-wide drilling and completions activity, underscoring its operational efficiency and robust business model. Liberty Energy Inc. (NYSE:LBRT) average daily pumping efficiencies and record safety performance were key contributors to its strong performance, reflecting its competitive edge and industry leadership. The company also recorded a 28% adjusted pre-tax return on capital employed over the trailing 12 months ending June 30, 2024, highlighting its commitment to maximizing shareholder value.

In addition, Liberty Energy Inc. (NYSE:LBRT) generated substantial cash flow, distributing $41 million to shareholders in the second quarter alone. Since reinstating its capital return program two years ago, the company has returned $458 million to shareholders, further demonstrating its strong financial health and shareholder-friendly approach. The stock is also seeing increased interest from institutional investors, with 31 hedge funds holding positions in Liberty Energy as of Q2 2024, up from 30 in the previous quarter.

Liberty Energy Inc. (NYSE:LBRT) ongoing investments in innovative technologies, such as its AI-empowered logistics platform, Sentinel, and natural gas-fueled pumping and power generation technologies, continue to drive efficiency and cost reductions for the company and its clients. With favorable industry trends and a disciplined capital allocation strategy, Liberty Energy Inc. (NYSE:LBRT) is well-positioned to continue delivering solid financial and operational results, making it a compelling choice for investors looking for cheap energy stocks with strong growth potential.