Liberty Energy Inc.

Welcome to the Liberty Energy Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note, this event is being recorded. I would now like to turn the conference over to Anjali Voria, Vice President of Investor Relations. Please go ahead.

Thank you, Bailey. Good morning, and welcome to the Liberty Energy third quarter 2025 earnings conference call. Joining us on the call are Ron Gusick, Chief Executive Officer, and Michael Stock, Chief Financial Officer. Before we begin, I would like to remind all participants that some of our comments today may include forward-looking statements reflecting the company's view about future prospects, revenues, expenses, or profits. These matters involve risks and uncertainties that could cause actual results that differ materially from our forward-looking statements. These statements reflect the company's beliefs based on the current conditions that are subject to certain risks and uncertainties that are detailed in our earnings release and other public filings. Our comments today may include non-GAAP financial and operational measures. These non-GAAP measures, including EBITDA, adjusted EBITDA, Adjusted net income, adjusted net income per diluted share, adjusted pre-tax return on capital employed, and cash return on capital investor not suitable for GAAP measures and may not be comparable to similar measures of other companies. A reconciliation of net income to EBITDA and adjusted EBITDA, net income to adjusted net income and adjusted net income per diluted share, and the calculation of adjusted pre-tax return on capital employed, and cash return on capital invested as discussed on this call are available on our investor relations website. I will now turn the call over to Ron.

Good morning, everyone. And thank you for joining us to discuss our third quarter 2025 operational and financial results. Liberty achieved revenue of $947 million and adjusted EBITDA of $128 million in the third quarter. despite a slowdown in industry completions activity and market pricing pressure. Our team delivered solid operational results, once again delivering the highest combined average daily pumping efficiency and safety performance in Liberty's history. We are committed to driving outstanding results for our customers while navigating current market challenges. Our leadership in technology innovation and service quality delivers differential results strengthening long-term relationships and reinforcing our competitive position through cycles. While we anticipate market headwinds will persist in the near term, we are well positioned to capitalize on opportunities that will make us stronger as the cycle improves. Our DigiPrime fleets are achieving outstanding performance and leading efficiency metrics across the company. Several fleets deployed with our largest customers broke new records for pumping hours, horsepower hours, and prop and volumes pumped during the quarter. Additionally, our team's uniquely engineered DigiPrime pumps are realizing measurable cost improvements relative to conventional technologies. Early indications show total maintenance cost savings are greater than 30% on DigiPrime pumps. The elegant simplicity of Liberty's design reflects advanced engineering and thoughtful innovation. resulting in a streamlined, power-dense unit that delivers superior performance and increased output between maintenance cycles. Across our fleet, we are also driving meaningful efficiencies for our customers with our AI-driven, automated, and intelligent rate and pressure control software, StimCommander. This advanced fleet control software enables pump operators to navigate diverse fleet designs while seamlessly managing onsite pressure and rate By automating these functions, StimCommander delivers significant benefits, faster and more consistent stage execution, reduced time on location, fuel savings, lower emissions, and improved safety. Today, fleet automation is driving a 65% improvement in the time to deliver the desired fluid injection rate and a 5 to 10% improvement in hydraulic efficiency. This marks the culmination of a decade of effort by the Liberty team. enhanced by the strategic acquisition of SLB's completion technologies during the COVID downturn. Liberty's cloud-based platform, Forge, further empowers Stim Commander with intelligent asset orchestration through continuous AI optimization. By analyzing billions of data points and leveraging years of Liberty's best-in-class operational execution, Forge enhances Stim Commander's performance and precision. We mistakenly called it a large language model in our press release, but it isn't static AI. It's a distributed agentic intelligence system built for the field. It continuously plans, learns, acts, and adapts through real-time feedback and reinforcement loops, ensuring each iteration enhances the next decision. By modeling the evolving behavior of every asset, Forge turns raw data into predictive intelligence, driving compounding performance gains across every stage, fleet, and operation. It also integrates critical insights from proprietary Liberty platforms like FractPulse, our real-time monitoring and analytics system, to provide comprehensive tracking of fleet condition performance and emissions. Together, these technologies create a powerful, adaptive automation ecosystem that delivers increasing operational efficiency and value. Structural demand for power continues to strengthen, as evidenced by large-scale, long-duration power commitments across the industry. AI compute load represents a meaningful long-term growth opportunity, and broader electrification trends and industrial reshoring efforts are also driving incremental, steady base load demand. At the same time, the grid is facing mounting reliability and capacity challenges driven by increased intermittent generation and a lack of investment in transmission infrastructure. Liberty's power opportunities are strengthening as sophisticated electricity consumers seeking dynamic, flexible solutions are recognizing the value of having an advantaged energy partner that provides a solution aligned with their specific needs. Liberty is in close engagement with potential customers with large, highly transient power demand that will benefit from rapid deployment schedules with high reliability power solutions at grid competitive prices. Customers will have a key power partner that offers a fully integrated energy solution spanning onsite power, fuel management, and the option for grid integration and attributes. Furthermore, Our on-site power solutions are fully customizable power plants that provide consumers with reliability and surety around long-term power costs, serving as a strategic hedge against potentially significant increases in grid power prices. We are confident in the growth trajectory of our power business and are expanding our power deliveries in anticipation of customer conversions from our expansive pipeline of opportunities. We are in the process of securing additional power generation, bringing our total capacity to over 1 gigawatt to be delivered through 2027, and we expect further increases will be necessary to meet the growing demand for our services. Oil and gas industry frack activity has now fallen below levels required to sustain North American oil production. Oil producers, which comprise a vast majority of North American frack activity, opted to moderate completions against a backdrop of macroeconomic uncertainty and after exceeding production targets during the first half of the year. Slowing trends in oil markets have more than offset increased demand for natural gas fleet activity, where long-term fundamentals remain encouraging in support of LNG export capacity expansion and rising power consumption. Moderation in activity anticipated in the near term is transitory in nature, Global oil oversupply is expected to peak during the first half of 2026. Many shale oil producers are targeting relatively flat oil production, requiring modest activity improvement in the coming year from current levels, and long-term gas demand and related completions activity continue to be on a favorable trajectory. Together, these factors set the backdrop for improving frac fundamentals later in 2026, assuming commodity futures prices remain supportive. Lower industry activity and underutilized fleets in today's frac markets are driving pricing pressure, primarily for conventional fleets. This slowdown is accelerating equipment attrition and fleet cannibalization, setting the stage for a more constructive supply and demand balance of industry frac fleets in the future. An improvement in frac activity coupled with tightening frac capacity would support better pricing dynamics. The outlook for higher quality next generation fleets remains strong as operators continue to demand next generation fleets that provide significant fuel savings, emissions benefits, and operational efficiencies. Liberty's Digi Technologies platform continues to see significant demand and more favorable economics through cycles. and leverages our total service platform with scale advantages, integrated services, and robust digital technologies. Although industry frac activity has declined since early 2023, the Liberty team has consistently outperformed markets by staying relentlessly focused on customer success and alignment of shared priorities. During the third quarter, we further strengthened our simulfrac offering with the reallocation of horsepower for long-term partners. We remain focused on expanding competitive advantages through cycles, allowing us to navigate softer anticipated conditions in the months ahead while remaining well positioned to react swiftly when demand for FRAC services rises. We have never been better positioned to face tough markets and take advantage of profitable opportunities. We are excited by the momentum we are seeing in both our completions and power opportunities and are well positioned to deliver an unparalleled offering in the years ahead. I wanted to take a moment to share that we recently welcomed Alice Yake, a recognized energy and infrastructure expert, to our board to help guide and accelerate our efforts in power services. With decades of leadership across energy infrastructure, power service and strategy, and regulatory affairs, as well as critical perspectives on electrical infrastructure challenges, she brings a rare combination of technical depth, policy insight, and executional excellence. As the energy landscape rapidly evolves and demand for resilient, reliable power systems grows, we're excited to move forward with intention, drawing on her expertise to shape impactful power solutions. I will now turn the call over to Michael to discuss our financial results and outlook.