Liberty Energy Inc. (NYSE:LBRT) Q4 2022 Earnings Call Transcript

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Michael Stock: Generally, as you know, we don’t discuss it from basins really. Most all of our basins are not Canada as a country – my favorite sport in the world hockey, but it’s the same size as some of our U.S. basins. But in reality, I’ll tell you the only real difference between the two markets is the Canadian market is probably not quite as tight yet as the U.S. market on frac supply. So that’s the only real change. If you have a difference between the two different markets, right? So the other than that – other than that everything else sort of remains, it’s fairly similar across the North American onshore .

Waqar Syed: Yes, and have you added any new capacity into the Canadian market? And then how many maybe Tier 4 fleets do you have in Canada?

Chris Wright: Waqar, we don’t want to give the details on that. But certainly, there’s optimism in Canada, new pipelines, at least on the horizon of coming in of activity levels there. But — so we’re always in dialogue with customers. We never do it on a – we’re going to add to this basin or take away from that basin. It’s always just a customer specific decision we make. Thanks Waqar.

Waqar Syed: And another question, if I may, what was the impact of weather on the quarter? Could you maybe quantify that a little bit in terms of revenues or number of jobs or anything?

Michael Stock: Yes, pretty normal. And so – I think you guys all heard me say that kind of Q4 and Q1 are generally somewhere between 4% and 8%, depending on the year lower than the summer quarters. So Q4 was a pretty normal year as far as that in the midrange there. And we’re expecting Q1 to be about the same so probably activity-wise the two winter quarters will be relatively flat with a bit of a pickup in some.

Waqar Syed: Yes, thank you, thank you very much.

Chris Wright: Thanks.

Operator: The next question is from Keith MacKey with RBC Capital Markets. Please go ahead.

Keith MacKey: Hi, good morning, and thanks for taking my questions. Maybe if we could just start out on pricing. It looks like the guide implies EBITDA per quarter, roughly what you saw in Q4 and if fleet count remains flat, it sort of implies that you’re not building in much more pricing, but maybe if you could just talk a little bit about how you’re seeing the pricing environment unfold, both on the leading edge and in moving your average fleet up to that level, that would be helpful?

Michael Stock: I mean – as we said, pricing is strong right now. The market is good. So yes, there’s still some – most all of our pricing is already adjusted. There’s, a little more adjustments we’re getting in Q4 from older. I mean, in Q1. My guess, I got to get my calendar straight. So again, there’s still a little bit of positive action happening there. But market is strong. Markets are tight, and we’re just not making much of a guess on where things go from here. But it looks like things will stay strong. Are there forces that can push them up further sure.

Keith MacKey: Perfect, thanks for that. And not to try to steal too much of your thunder from the event next week, but can you maybe just give us a little bit more comment on the hybrid frac pump? What — will it be involved in these next digiFrac fleets that you’re putting out or what’s the timing on that? And what’s really the, I guess, the business case for the hybrid pumps now?

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