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 Vohria, Vice President of Investor Relations. Please go ahead.

Thank you, Chloe. Good morning, and welcome to the Liberty Energy first quarter 2026 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 to differ materially from our forward-looking statements. These statements reflect the company's beliefs based on current conditions that are subject to certain risks and uncertainties that are detailed in our earnings release and other public filings. Our comments today also include non-GAAP financial and operational measures. These non-GAAP measures, including EBITDA, adjusted EBITDA, adjusted net income, adjusted net income for diluted share, Adjusted pre-tax return on capital employed and cash return on capital invested are not a substitute 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 first quarter 2026 operational and financial results. Our first quarter results were driven by outsized demand for Liberty's premium completion service offering, outstanding operational execution, and technology-driven efficiency gains. Revenue of $1 billion and adjusted EBITDA of $126 million reflected record pumping efficiencies and high fleet utilization, while absorbing the full realization of pricing headwinds and winter weather disruption. Despite a three-year slowdown in industry completions activity, Liberty has continued to deliver record performance quarter after quarter, an achievement that is no small feat. I want to thank the team for the hard work and dedication throughout this period that has prepared us well for the next phase of the cycle. We are confident that the North American oil and gas industry has established a cyclical floor. We are seeing an accelerating shift in momentum driven by unprecedented oil and gas supply disruption and renewed focus on the importance of energy security. By strategically investing through this period of frack industry softness, we are well positioned to generate superior returns as the focus shifts to secure North American supply. Distributed power generation demand continues to build as grid interconnection bottlenecks, utility-imposed operational constraints, and system congestion drive hyperscalers toward on-site power as the preferred long-term model. This shift is reinforced by extraordinary hyperscaler investment in infrastructure, supporting voracious demand for AI-enabled productivity increases. Widening policy mandates to expand generation capacity and provide grid resilience within local communities further encourage distributed power solutions. As customer requirements grow more complex, Liberty is experiencing more direct collaboration with hyperscalers, expanding beyond the developer ecosystem. Large load customers are increasingly prioritizing fully integrated end-to-end power solutions that bring together land, fuel sourcing, midstream and generation infrastructure, grid interconnection, on-site power delivery, load optimization, and lifecycle operations. LPI provides seamlessly delivered power through a single trusted partner. On-site power is a complex operational symphony that requires a sophisticated ecosystem of telemetry, logistics, and technical readiness. At LPI, we have built a comprehensive execution solution designed to manage this complexity at scale, from a globally integrated supply chain and a mobilized workforce to an AI-driven technology overlay to ensure peak performance. Our commitment to reliability is anchored by our advanced testing facility, where we rigorously validate the integration of hardware, software, and dynamic load following performance for real customer load profiles in a controlled, low-risk environment. Our microgrid testing facility in El Reno is designed to evaluate how complex multi-source energy systems within the Forte offering perform under dynamic operating conditions using our Tempo proprietary control system that governs overall system behavior. It is structured around three phases of validation. First, a software phase evaluates system performance from a first principles perspective. allowing us to understand how generation, storage, and power electronics respond to dynamic customer load, while also supporting system resiliency and equipment lifetime. This work informs control tuning, system architecture, and the type and size of supporting assets required. Second, a hardware in the loop phase applies these learnings using the physical control system operating against simulated generation, storage, and load assets. This allows us to assess response times, control logic, and system coordination by validating how real controller decisions interact with dynamic system behavior before physical equipment is introduced. Third, integrated system validation brings physical generation, storage, and power electronics together on a common bus to serve representative load profiles at meaningful scale. While not full plant capacity, this step ensures that control logic, hardware interfaces, protection schemes, and dynamic response translate correctly onto real equipment and operating conditions. By progressing from modeling to controller validation to integrated system testing, we identify integration risks and control issues prior to field deployment, providing our customers with the operational certainty required to support the next generation of data center demand. In completions, we are at the leading edge of equipment innovation and design, redefining how systems are built through our Digi Technologies platform. We are excited to reach commercial deployment of the latest DigiPrime technology, the only 100% natural gas engine with variable speed capabilities in the oil field. In addition, we now have a path to upgrade our engine control software to enable variable speed on our early DigiPrime Rolls-Royce MTU pump systems. Upon completion of the update, over 70% of our DigiPrime fleet will have variable speed capabilities and increased horsepower. Simply put, these developments mark a major advancement in the design and engineering of mechanical power systems, improving overall efficiency and reducing total costs. This is purposeful and focused evolution of technology, a continuous improvement loop where we design, test, validate, and scale across our fleet. We are building upon years of experience in designing complex engineering systems and equipment innovation, from DigiFrac electric fleets to DigiPrime direct drive systems and now variable speed capabilities. That foundation of engineering expertise empowers not only the oil field, but also our power applications. Liberty is pushing frac efficiencies to new heights through the integration of real-time execution control and continuously learning intelligence. StimCommander, our advanced fleet control software, automates rate and pressure control in real time to improve stage consistency and reduce variability, while Forge, our cloud-based optimization platform, continuously learns from fleet-wide data to enhance performance over time through closed-loop feedback. Together, they create a system that compounds efficiency across every stage of execution, delivering more consistent operations and a lower cost per barrel of oil. In today's high oil price environment, operators are increasingly focused on total fuel consumption and well site efficiency, and our integrated system delivers meaningful reductions in fuel intensity and optimization of natural gas substitution in dual fuel systems. The performance gap between industry frac fleets is increasingly defined by the strength of this digital intelligence layer, allowing us to support improved well economics. Liberty's success is based on innovation and disciplined investment, consistently seizing opportunities through every phase of the cycle. We have strengthened our platform and enhanced our ability to deliver differentiated performance, positioning us well to benefit from both cyclical recovery in the oil field and the secular growth in power demand. During the first quarter, we executed $1.3 billion in convertible debt offerings, further strengthening our financial flexibility and positioning us for durable long-term growth. Concurrently, we entered capped call transactions at a 150% premium to the reference share price, designed to preserve substantial upside for shareholders by meaningfully reducing potential dilution from these offerings as we execute on our growing power opportunity. This enables the necessary investment for long lead time items to achieve our 2029 goal of reaching three gigawatts of deployed power. The structural disruption in the Middle East has catalyzed a fundamental shift in global supply side dynamics, establishing a higher baseline for energy security and recalibrating the risk profile of regional supply. In oil markets, the conflict in Iran has driven attacks on regional energy infrastructure. and the unprecedented effective closure of the Strait of Hormuz, inducing higher oil prices and raising the prospect of a sustained increase in supply-side risk premiums. In parallel, global LNG markets may face multi-year supply constraints following attacks on Qatar's Ras Laffan hub and other regional gas infrastructure. The resulting shock is most acute in Asia, where high import dependence is forcing demand rationing amid constrained physical supply. The shale revolution has allowed the U.S. to become the world's largest oil producer and LNG exporter, securing our energy future while providing a reliable supply source for consumers worldwide. Over time, geopolitical dynamics may support structural tailwinds for North America as global consumers reevaluate energy supply chains and diversify sourcing, with greater reliance on U.S. and Canadian-sourced oil and refined product supply. As the markets weigh rising concerns over physical oil and gas supply shortages against potential ceasefire implications, North American E&P companies are evaluating a range of macroeconomic scenarios. The recent rise in oil prices is well above early year expectations, now driving substantially better E&P economics with greater potential for increased free cash flow generation. Entering the year, service companies recalibrated frac fleet supply for flattish activity expectations, resulting in a tighter balance to meet expected demand. Pricing pressure and softer activity over the past few years led to accelerated equipment cannibalization, fleet attrition, and underinvestment in next-generation technology. Emerging strength in frac markets, driven by more price-responsive private E&Ps and accelerated duck activity, is enabling earlier than anticipated pricing recovery from cyclical lows at the start of the year. Moving to the power outlook, U.S. demand estimates continue to accelerate, exemplified by ERCOT's recent projections that Texas grid demand could quadruple by 2032. This significant expansion is being met by a fundamental shift in the commercial landscape. Hyperscalers and other large-load customers are increasingly relying on distributed power service providers to self-generate and bypass traditional grid constraints. LPI is uniquely positioned as the enabling infrastructure provider, supporting customers as they transform from large-scale power consumers to more localized on-site energy users, rather than grid-dependent power users. LPI's scalable, decentralized power solutions provide the critical operational infrastructure for these large load customers with the ability to support local grid stability. In the second quarter, we expect sequential growth in revenue on increased utilization and corresponding improvement in profitability. While a challenging market in recent years led many to retrench, we chose to lean in and accelerate strategic investments. We have fortified our competitive advantages in power and completion technologies and are well prepared to meet the rising demand for our services that Liberty is seeing today. Recent events have reinforced the importance of energy diversification for global consumers, and we are proud to support the growth of reliable energy sources worldwide, including through our alliances and investments in Oklo, Fervo, and the Australian Beteloo Shale Basin. I will now turn the call over to Michael to discuss our financial results and outlook.