Outlook for 2H 2025: LBRT thinks that despite geopolitical tensions, tariff shifts, and uncertain oil demand, North American production has remained largely unchanged. Most operators are pursuing flat production profiles, using just enough frac activity to counter natural declines. It expects Completion activity to slow further in 2H 2025 as capital discipline takes hold, adding pressure on service pricing. Over time, this slowdown should lead to increased equipment attrition, tightening service supply, and improving long-term market balance. Owing to the industry slowdown, LBRT expects to “modestly reduce our deployed fleet count and reposition this horsepower to support our expanded simulfrac offering.”
Key Developments in Q2: During Q2, LBRT collaborated with Range Resources and Imperial Land Corporation to provide power services. The projects provide advantaged access to Marcellus natural gas and integrated power management solutions, as well as a reliable fuel supply in Colorado. Its collaboration with Oklo will help integrate grid power management and baseload small modular nuclear reactors. During Q2, it enhanced the digiPrime deployment with the industry’s first variable speed natural gas reciprocating engine. You can also read more about LBRT's fracking activities here.
Topline and Bottomline Rose In Q2: LBRT's revenues increased by 6.7% quarter-over-quarter in Q2, while its adjusted EBITDA went up by 7.5%. Its net income surged sharply, by 2.5x, in Q2 compared to Q1. The improvement in financial results in Q2, despite the industry pricing headwinds, reflects increased efficiencies and utilization.
The company's debt-to-equity ratio improved to 0.08x as of June 30, 2025. Recently, in July, it increased liquidity by expanding its credit facility to provide for a $225 million increase in aggregate commitment.
Thanks for reading the LBRT Take Three, designed to give you three critical takeaways from LBRT's earnings report. Soon, we will present a second update on LBRT's earnings, highlighting its current strategy, news, and notes we extracted from our deeper dive.
