Liberty Oilfield Services Inc. (LBRT) stock was declining following the release of third-quarter 2021 financial results and the acquisition of PropX. LBRT stock price saw a decline of 11.42% to drop at $13.93 a share at the time of this writing. The trading volume on the last check was 570,551, significantly lower than the average trading volume. Let’s take a closer look at recent events.
Liberty Oilfield Services Inc is the provider of hydraulic fracturing and wireline services to the onshore oil and natural gas exploration and production firms in North America. The company having a market cap of $2.5 billion was founded in 2011 and is headquartered in Denver, Colorado.
Third Quarter 2021 Financial Results:
- LBRT stock reported $654 million in revenue in the third quarter of 2021 which represents an increase of 12% from $581 million in the second quarter of 2021.
- The stock suffered a net loss before income taxes of $39 million in the reported quarter as compared to $36 million in the previous quarter.
- Net loss of the LBRT stock after taxes reached $39 million as compared to $52 million net loss in the previous quarter.
- Adjusted EBITDA of Liberty stock declined from $37 million in Q2,2021 to $32 million in Q3,2021.
- LBRT stock recorded a $0.22 diluted loss per share in the third quarter of 2021 as compared to $0.29 in the previous quarter.
- By the end of the third quarter, LBRT stock had $35 million in cash on hand, higher than the second quarter due to an increase in the working capital. The total debt of the stock was $122 million by the end of the reported quarter.
Acquisition of PropX by LBRT stock:
Liberty stock also announced the acquisition of PropX for an aggregate purchase price of approximately $90.0 million. It consists of $13.5 million in cash and 5.8 million equivalent shares of LBRT common stock valued at $76.5 million on the basis of a 30-day average closing price of $13.08 on October 25, 2021
PropX, founded in 2006 is playing the lead role in providing the last-mile proppant delivery solutions including the logistic software and proppant handling equipment in North America.
Conclusion:
Things are not going well for LBRT stock as far as market sentiment is concerned. The company’s revenues have been increased according to financial results, however, adjusted EBITDA decreased. The acquisition of PropX will improve the operational as well as logistic efficiency of the LBRT stock.
