DENVER - Liberty Energy Inc. (NYSE: LBRT), a North American energy services firm, has announced a 14% increase in its quarterly cash dividend, raising it to $0.08 per share of Class A common stock. The dividend is scheduled to be paid on December 20, 2024, to shareholders of record as of December 6, 2024.
The increase from the previous dividend of $0.07 per share aligns with Liberty's strategy to drive shareholder value and reflects confidence in the company's financial stability and outlook. Chris Wright, Chief Executive Officer of Liberty, stated that the raised dividend is part of a balanced capital return program and is backed by the company's investment in innovative businesses and advanced technologies.
While the recent declaration is a positive sign for shareholders, the company noted that future dividend declarations will remain subject to board approval. The Board of Directors will continue to assess whether issuing dividends aligns with the best interests of Liberty and its shareholders, taking into account market conditions and capital availability.
Founded in 2011 and based in Denver, Colorado, Liberty focuses on providing advanced completion services and technologies for the oil and natural gas industry, particularly in the unconventional energy resources sector. With its commitment to sustainable development and partnership with customers, Liberty has positioned itself as a leader in its field.
This dividend declaration is based on a press release statement from Liberty Energy Inc. and reflects the company's current financial strategy and commitment to shareholder returns.
In other recent news, Liberty Oilfield Services (NYSE:LBRT) reported robust second quarter results for 2024 with earnings per share matching analyst expectations at $0.61, while its revenue of $1.16 billion slightly missed the consensus estimate of $1.17 billion. Despite the slight shortfall, the company achieved an 8% sequential increase in revenue and a 12% sequential increase in adjusted EBITDA, totaling $273 million. Amid changing market conditions, JPMorgan (NYSE:JPM) reduced its price target for Liberty Oilfield Services from $25.00 to $21.00, while TD (TSX:TD) Cowen lowered its price target to $20.00 from $21.00. Both firms maintained neutral ratings on the stock.
Stifel and RBC (TSX:RY) Capital Markets also maintained their positive ratings on Liberty Oilfield Services, with Stifel raising its price target to $27.00 due to the company's strong performance. On the other hand, RBC Capital Markets held its price target steady at $27.00, highlighting the company's strong operational execution and positive industry dynamics anticipated for the latter half of the year.
These recent developments show that Liberty Oilfield Services has been navigating through challenging market conditions and maintaining solid financial performance. The company's focus on capital-efficient, low-emissions natural gas-fueled technologies has led to the highest diesel displacement in its history, with dual fuel gas substitution levels increasing by over 25% in the past year. These strategic investments are expected to drive higher earnings and cash flow generation potential, according to the company's recent statements.
InvestingPro Insights
Liberty Energy Inc.'s recent dividend increase aligns well with its financial performance and market position. According to InvestingPro data, the company's dividend yield stands at 1.37%, with a impressive dividend growth of 40% over the last twelve months. This growth rate significantly outpaces the recently announced 14% increase, suggesting a consistent trend of rewarding shareholders.
The company's financial health appears robust, with a P/E ratio of 7.8, indicating that the stock may be undervalued compared to its earnings. Liberty's revenue for the last twelve months reached $4.52 billion, with a gross profit margin of 28.25%. These figures underscore the company's ability to generate substantial revenue and maintain profitability in the competitive energy services sector.
InvestingPro Tips highlight Liberty's financial strength. The company operates with a moderate level of debt, and its cash flows can sufficiently cover interest payments. This financial stability supports the increased dividend payout and aligns with CEO Chris Wright's statement about the company's balanced capital return program.
It's worth noting that Liberty Energy has shown strong returns over the last five years, as indicated by another InvestingPro Tip. This long-term performance, coupled with the company's profitability over the last twelve months, reinforces investor confidence in Liberty's business model and growth strategy.
For investors seeking more comprehensive insights, InvestingPro offers 6 additional tips for Liberty Energy, providing a deeper understanding of the company's financial position and market outlook.
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