Liberty Energy: Oh My, Have Things Changed (Rating Upgrade)

Liberty Energy is upgraded to BUY as it aggressively expands its power generation business, targeting 3 GW deployable capacity by 2029. LBRT’s power division, supported by a strategic SLB partnership, is projected to deliver 20% CAGR and high-teen returns through long-term PPAs. The company’s diversified earnings base—power plus recovering completions—supports a higher, sustainable 9x EV/EBITDA multiple and robust long-term growth. Despite near-term geopolitical volatility, LBRT’s stable, contract-driven power business and strengthened balance sheet position it for market-beating returns.

Liberty Energy ( LBRT ) has more than doubled down on its power generation business since my last analysis. This important milestone of delivering 3 GWs of power helps deliver earnings growth in a significantly more