Liberty Energy Inc.
For the period ended Sep 30, 2025. Filed Oct 17, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 17, 2025
LBRT$11.96+5.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-07-25.
0001694028-25-000100
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-17.
0001694028-25-000115
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 86 previous paragraphs and 86 current paragraphs.
47 unchanged; 33 reworded; 5 added; 5 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 4 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (5)
Current report
In response to macroeconomic uncertainty, oil producers opted to moderate activity after outperforming production expectations during the first half of the year, however, current activity levels are below those required to sustain North American oil production. Global oil oversupply is expected to peak during the first half of 2026 and many shale oil producers are targeting relatively flat oil production levels into 2026, which should require modest activity improvement from current levels sometime during the year to offset the natural declines of producing wells. Long-term gas demand continues to be on a favorable trajectory, with significant expected demand from LNG export capacity expansion and broader power markets. Together, this sets the backdrop for improving frac fundamentals later in 2026, assuming commodity prices remain supportive.
Current report
Lower industry activity and underutilized fleets in today’s frac markets are driving price 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.
Current report
Adjacent to the completions market, the Company expects increasing demand for power generation, 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.
Current report
Depreciation, depletion, and amortization expense decreased$3.4 million, or 3%, to$123.0 million for the three months ended September 30, 2025 compared to $126.4 million for the three months ended September 30, 2024. The decrease during the three months ended September 30, 2025 was primarily due to equipment reaching the end of its depreciable life, partially offset by an increase in finance leases.
Current report
Nine Months Ended September 30, 2025, Compared to Nine Months Ended September 30, 2024
Removed paragraphs (5)
Previous report
Business Developments
Previous report
While oil markets continue to evolve in response to dynamic global economic and geopolitical developments, North American production has remained relatively stable during 2025. Recent events, ranging from shifting tariff policies to rising regional hostilities and mixed economic signals affecting global oil demand, have not yet driven a meaningful North American production response. Larger, well-capitalized producers with strong balance sheets and highly efficient operations enjoy healthy well economics, enabling them to weather commodity price volatility. Intra-quarter price fluctuations created hedging opportunities, further tempering supply side reactions.
Previous report
Producers are targeting a relatively flat production profile, sustaining a baseline of frac activity to offset the natural decline of producing wells. Completions activity is anticipated to gradually slow during the second half of 2025, reflecting disciplined capital deployment and contributing to market pricing pressure on services. This slowdown in activity is expected to accelerate equipment cannibalization and attrition, which fundamentally improves the supply and demand dynamics within the services industry over the cycle.
Previous report
Amidst market pressures and near-term reductions in customer activity, the Company is planning to modestly reduce its deployed fleet count during the remainder of 2025 and reposition this horsepower to support expanded simul-frac offerings for its customers
Previous report
Six Months Ended June 30, 2025, Compared to Six Months Ended June 30, 2024
Reworded paragraphs (33)
Previous wording
In early 2023, the Company launched Liberty Power Innovations LLC (“LPI”), an integrated alternative fuel and power solutions provider for remote applications. LPI provides CNG supply, field gas processing and treating, and well site fueling and logistics. LPI was formed to support the Company’s transition towards our next generation digiFleets℠ and dual fuel fleets, as CNG fueling services can be limited in the market, yet critical to maintaining highly efficient well site operations. Through the first half of 2025, LPI was primarily focused on supporting an industry transition to natural gas fueled technologies, serving as a key enabler of the next step of cost and emissions reductions in the oilfield. In January 2025, we announced LPI’s expansion into the distributed power business, where we expect to leverage our experience in providing electric power for our digiFrac℠ pumps into other areas inside and outside of the oilfield.
Current wording
In early 2023, the Company launched Liberty Power Innovations LLC (“LPI”), an integrated alternative fuel and power solutions provider for remote applications. LPI provides CNG supply, field gas processing and treating, and well site fueling and logistics. LPI was formed to support the Company’s transition towards our next generation digiFleets℠ and dual fuel fleets, as CNG fueling services can be limited in the market, yet critical to maintaining highly efficient well site operations. Through the first nine months of 2025, LPI was primarily focused on supporting an industry transition to natural gas fueled technologies, serving as a key enabler of the next step of cost and emissions reductions in the oilfield. In January 2025, we announced LPI’s expansion into the distributed power business, where we expect to leverage our experience in providing electric power for our digiFrac℠ pumps into other areas inside and outside of the oilfield.
Previous wording
During the second quarter of 2025, the posted WTI price traded at an average of $64.57 per barrel (“Bbl”), as compared to the second quarter of 2024 average of $81.81 per Bbl, and the first quarter of 2025 average of $71.78 per Bbl. Subsequent to June 30, 2025, the WTI price traded at an average of $68.59 per Bbl through July 14, 2025. In addition, during the the second quarter of 2025, the Henry Hub price traded at an average of $3.19 per one million British thermal units (“MMBtu”), as compared to the first quarter of 2025 average of $4.14 per MMBtu, and the second quarter of 2024 average of $2.06 per MMBtu. Subsequent to June 30, 2025, the Henry Hub traded at an average of $3.17 per MMBtu through July 14, 2025. The average domestic onshore rig count for the United States and Canada was 686 rigs reported in the second quarter of 2025, down from the average in the second quarter of 2024 of 716, and the average in the first quarter of 2025 of 788, according to a report from Baker Hughes.
Current wording
During the third quarter of 2025, the posted WTI price traded at an average of $65.78 per barrel (“Bbl”), as compared to the third quarter of 2024 average of $76.43 per Bbl, and the second quarter of 2025 average of $64.57 per Bbl. In addition, during the the third quarter of 2025, the Henry Hub price traded at an average of $3.03 per one million British thermal units (“MMBtu”), as compared to the second quarter of 2025 average of $3.19 per MMBtu, and the third quarter of 2024 average of $2.11 per MMBtu. Subsequent to September 30, 2025, the Henry Hub traded at an average of $3.27 per MMBtu through October 6, 2025. The average domestic onshore rig count for the United States and Canada was 703 rigs reported in the third quarter of 2025, down from the average in the third quarter of 2024 of 772, and up from the average in the second quarter of 2025 of 686, according to a report from Baker Hughes.
Previous wording
Our revenue decreased$117.4 million, or 10%, to$1.0 billion for the three months ended June 30, 2025 compared to $1.2 billion for the three months ended June 30, 2024. The decrease in revenue was primarily attributable to a decrease in service and materials pricing, along with moderately reduced activity levels.
Current wording
Our revenue decreased$191.2 million, or 17%, to$947.4 million for the three months ended September 30, 2025 compared to $1.1 billion for the three months ended September 30, 2024. The decrease in revenue was primarily attributable to a decrease in service and materials pricing, along with reduced activity levels.
Previous wording
Cost of services (exclusive of depreciation, depletion, and amortization) decreased$23.7 million, or 3%, to$812.1 million for the three months ended June 30, 2025 compared to $835.8 million for the three months ended June 30, 2024. The decrease in expense was primarily related to decreases in materials costs, partially offset by increased personnel costs.
Current wording
Cost of services (exclusive of depreciation, depletion, and amortization) decreased$70.5 million, or 8%, to$769.8 million for the three months ended September 30, 2025 compared to $840.3 million for the three months ended September 30, 2024. The decrease in expense was primarily related to decreases in material volumes and personnel costs commensurate with the decrease in activity levels.
Previous wording
General and administrative expenses were consistent between periods, increasing$0.6 million, or 1%, to$58.3 million for the three months ended June 30, 2025 compared to $57.7 million for the three months ended June 30, 2024.
Current wording
General and administrative expenses were consistent between periods, decreasing$0.3 million, or 1%, to$58.3 million for the three months ended September 30, 2025 compared to $58.6 million for the three months ended September 30, 2024.
Previous wording
Loss on disposal of assets, net
Current wording
(Gain) loss on Disposal of Assets, net
Previous wording
The Company recorded a loss on disposal of assets, net of $5.6 million for the three months ended June 30, 2025 compared to $1.2 million for the three months ended June 30, 2024, as the Company disposed of used equipment that is no longer in use as part of of normal course fleet and equipment management.
Current wording
The Company recorded a gain on disposal of assets, net of $1.2 million for the three months ended September 30, 2025 compared to a $6.0 million loss for the three months ended September 30, 2024, as the Company disposed of used equipment that is no longer in use as part of normal course fleet and equipment management. Additionally, during the three months ended September 30, 2025, the Company received insurance proceeds related to losses recorded in prior periods.
Previous wording
The Company recognized other income, net of $58.1 million for the three months ended June 30, 2025 compared to $0.9 million expense, net for the three months ended June 30, 2024. Other (income) expense, net is comprised of gain on investments, net of $68.2 million related to investments in equity securities measured at fair value for the three months ended June 30, 2025, compared to $7.2 million during the three months ended June 30, 2024. Additionally, interest expense, net increased $2.1 million primarily as a result of the addition of finance lease liabilities, refer to “Liquidity and Capital Resources” below for further discussion of the Company’s finance leases.
Current wording
The Company recognized other income, net of $57.5 million for the three months ended September 30, 2025 compared to $11.3 million expense, net for the three months ended September 30, 2024. Other (income) expense, net is comprised of gain on investments, net of $68.4 million related to investments in equity securities measured at fair value for the three months ended September 30, 2025, compared to $2.7 million loss, net during the three months ended September 30, 2024. Additionally, interest expense, net increased $2.3 million primarily as a result of the addition of finance lease liabilities, refer to “Liquidity and Capital Resources” below for further discussion of the Company’s finance leases.
Previous wording
The Company recognized income tax expense of $24.1 million for the three months ended June 30, 2025, an effective rate of 25%, compared to $32.6 million for the three months ended June 30, 2024, an effective rate of 23%. The decrease in income tax expense was primarily attributable to the decrease in net income before income taxes, as discussed above.
Current wording
The Company recognized income tax expense of $12.0 million for the three months ended September 30, 2025, an effective rate of 21.8%, compared to $22.2 million for the three months ended September 30, 2024, an effective rate of 23.1%. The decrease in income tax expense was primarily attributable to the decrease in net income before income taxes, as discussed above.
Previous wording
Our revenue decreased $213.0 million, or 10%, to $2.0 billion for the six months ended June 30, 2025 compared to $2.2 billion for the six months ended June 30, 2024. The decrease in revenue was primarily attributable to a decrease in service and materials pricing, along with moderately reduced activity levels.
Current wording
Our revenue decreased $404.2 million, or 12%, to $3.0 billion for the nine months ended September 30, 2025 compared to $3.4 billion for the nine months ended September 30, 2024. The decrease in revenue was primarily attributable to a decrease in service and materials pricing, along with moderately reduced activity levels.
Previous wording
Cost of services (exclusive of depreciation, depletion, and amortization) decreased $44.8 million, or 3%, to $1.6 billion for the six months ended June 30, 2025 compared to $1.6 billion for the six months ended June 30, 2024. The decrease in expense was primarily related to decreases in materials costs, partially offset by increased personnel costs.
Current wording
Cost of services (exclusive of depreciation, depletion, and amortization) decreased $115.3 million, or 5%, to $2.3 billion for the nine months ended September 30, 2025 compared to $2.5 billion for the nine months ended September 30, 2024. The decrease in expense was primarily related to decreases in materials costs, partially offset by increased personnel costs.
Previous wording
General and administrative expenses increased $13.4 million, or 12%, to $124.1 million for the six months ended June 30, 2025 compared to $110.7 million for the six months ended June 30, 2024. The increase was primarily attributable to increased stock-based compensation expense recognized during the first quarter of 2025 in connection with the resignation of Christopher A. Wright, the Company’s previous Chief Executive Officer and Chairman of the Board, from the Company upon his confirmation to the Secretary of Energy of the United States.
Current wording
General and administrative expenses increased $13.1 million, or 8%, to $182.4 million for the nine months ended September 30, 2025 compared to $169.3 million for the nine months ended September 30, 2024. The increase was primarily attributable to increased stock-based compensation expense recognized during the first quarter of 2025 in connection with the resignation of Christopher A. Wright, the Company’s previous Chief Executive Officer and Chairman of the Board, from the Company upon his confirmation to the Secretary of Energy of the United States.
Previous wording
Transaction and other costs were $0.8 million for the six months ended June 30, 2025, with no such costs recorded for the six months ended June 30, 2024, for costs related to the IMG Acquisition. See Note 2—Significant Accounting Policies to the unaudited condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report for further details.
Current wording
Transaction and other costs were $0.8 million for the nine months ended September 30, 2025, with no such costs recorded for the nine months ended September 30, 2024, for costs related to the IMG Acquisition. See Note 2—Significant Accounting Policies to the unaudited condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report for further details.
Previous wording
Depreciation, depletion, and amortization expense increased $10.6 million, or 4%, to $257.1 million for the six months ended June 30, 2025 compared to $246.5 million for the six months ended June 30, 2024. The increase in 2025 was due to additional finance leases entered into since the prior period for heavy equipment.
Current wording
Depreciation, depletion, and amortization expense increased $7.2 million, or 2%, to $380.1 million for the nine months ended September 30, 2025 compared to $372.9 million for the nine months ended September 30, 2024. The increase in 2025 was due to additional finance leases entered into since the prior period for heavy equipment.
Previous wording
The Company recognized a loss on disposal of assets, net of $9.0 million for the six months ended June 30, 2025 compared to $0.1 million for the six months ended June 30, 2024, as the Company disposed of used equipment that is no longer in use as part of of normal course fleet and equipment management.
Current wording
The Company recognized a loss on disposal of assets, net of $7.8 million for the nine months ended September 30, 2025 compared to $6.1 million for the nine months ended September 30, 2024, as the Company disposed of used equipment that is no longer in use as part of normal course fleet and equipment management.
Previous wording
The Company recognized other income, net of $67.8 million for the six months ended June 30, 2025 compared to $7.9 million expense, net for the six months ended June 30, 2024. Other (income) expense, net is comprised of gain on investments, net of $87.5 million related to investments in equity securities measured at fair value for the six months ended June 30, 2025, compared to a $7.2 million gain on investments during the six months ended June 30, 2024. Interest expense, net increased $4.1 million primarily as a result of the addition of finance lease liabilities, refer to “Liquidity and Capital Resources” below for further discussion of the Company’s finance leases. Additionally, interest income—related party decreased $0.5 million related to a note receivable agreement executed in December 2022, amended in August 2023, and fully collected in March 2024.
Current wording
The Company recognized other income, net of $125.3 million for the nine months ended September 30, 2025 compared to $19.2 million expense, net for the nine months ended September 30, 2024. Other (income) expense, net is comprised of gain on investments, net of $155.9 million related to investments in equity securities measured at fair value for the nine months ended September 30, 2025, compared to a $4.5 million gain on investments during the nine months ended September 30, 2024. Interest expense, net increased $6.4 million primarily as a result of the addition of finance lease liabilities, refer to “Liquidity and Capital Resources” below for further discussion of the Company’s finance leases. Additionally, interest income—related party decreased $0.5 million related to a note receivable agreement executed in December 2022, amended in August 2023, and fully collected in March 2024.
Previous wording
The Company recognized income tax expense of $31.9 million for the six months ended June 30, 2025, an effective rate of 26%, compared to $59.0 million for the six months ended June 30, 2024, an effective rate of 24%. The decrease in income tax expense was primarily attributable to the decrease in net income before income taxes, as discussed above.
Current wording
The Company recognized income tax expense of $43.9 million for the nine months ended September 30, 2025, an effective rate of 24.7%, compared to $81.2 million for the nine months ended September 30, 2024, an effective rate of 23.5%. The decrease in income tax expense was primarily attributable to the decrease in net income before income taxes, as discussed above.
Previous wording
Three and Six Months Ended June 30, 2025, Compared to Three and Six Months Ended June 30, 2024: EBITDA and Adjusted EBITDA
Current wording
Three and Nine Months Ended September 30, 2025, Compared to Three and Nine Months Ended September 30, 2024: EBITDA and Adjusted EBITDA
Previous wording
EBITDA was$234.7 million for the three months ended June 30, 2025 compared to $272.3 million for the three months ended June 30, 2024. Adjusted EBITDA was$180.8 million for the three months ended June 30, 2025 compared to $273.3 million for the three months ended June 30, 2024. The decreases in EBITDA and Adjusted EBITDA primarily resulted from lower pricing and were partially offset by changes in activity levels in 2025 as described above under the captions Revenue, Cost of Services, and General and Administrative for the Three Months Ended June 30, 2025, Compared to the Three Months Ended June 30, 2024.
Current wording
EBITDA was$188.9 million for the three months ended September 30, 2025 compared to $230.9 million for the three months ended September 30, 2024. Adjusted EBITDA was$127.7 million for the three months ended September 30, 2025 compared to $247.8 million for the three months ended September 30, 2024. The decreases in EBITDA and Adjusted EBITDA primarily resulted from lower pricing and changes in activity levels in 2025 as described above under the captions Revenue, Cost of Services, and General and Administrative for the Three Months Ended September 30, 2025, Compared to the Three Months Ended September 30, 2024.
Previous wording
EBITDA was $399.9 million for the six months ended June 30, 2025 compared to $511.0 million for the six months ended June 30, 2024. Adjusted EBITDA was $348.9 million for the six months ended June 30, 2025 compared to $518.0 million for the six months ended June 30, 2024. The decreases in EBITDA and Adjusted EBITDA primarily resulted from lower pricing and partially offset by changes in activity levels in 2025 as described above under the captions Revenue, Cost of Services, and General and Administrative for the Six Months Ended June 30, 2025, Compared to the Six Months Ended June 30, 2024.
Current wording
EBITDA was $588.8 million for the nine months ended September 30, 2025 compared to $741.9 million for the nine months ended September 30, 2024. Adjusted EBITDA was $476.6 million for the nine months ended September 30, 2025 compared to $765.9 million for the nine months ended September 30, 2024. The decreases in EBITDA and Adjusted EBITDA primarily resulted from lower pricing and changes in activity levels in 2025 as described above under the captions Revenue, Cost of Services, and General and Administrative for the Nine Months Ended September 30, 2025, Compared to the Nine Months Ended September 30, 2024.
Previous wording
Our primary sources of liquidity consist of cash flows from operations and borrowings under our ABL Facility. While we believe that we can fund operations and current organic growth plans with these sources, we monitor the availability and cost of capital resources such as equity, debt, and lease financings that could be leveraged for current or future financial obligations including those related to acquisitions, capital expenditures, working capital, and other liquidity requirements. We may incur additional indebtedness or issue equity in order to meet our capital expenditure activities and liquidity requirements, as well as to fund organic and other growth opportunities that we pursue, including our expansion into the distributed power business and potential acquisitions. Our primary uses of capital have been capital expenditures to support growth, both organic and through acquisitions, and funding ongoing operations, including maintenance and fleet upgrades, as well as the repurchases of, and dividends on, shares of our Class A Common Stock.
Current wording
Our primary sources of liquidity consist of cash flows from operations and borrowings under our Revolving Credit Facility. While we believe that we can fund operations and current organic growth plans with these sources, we monitor the availability and cost of capital resources such as equity, debt, and lease financings that could be leveraged for current or future financial obligations including those related to acquisitions, capital expenditures, working capital, and other liquidity requirements. We may incur additional indebtedness or issue equity in order to meet our capital expenditure activities and liquidity requirements, as well as to fund organic and other growth opportunities that we pursue, including our expansion into the distributed power business and potential acquisitions. Specifically, we plan to raise significant funds through debt, equity or strategic alliances to support our current planned expansion of our power business. Our primary uses of capital have been capital expenditures to support growth, both organic and through acquisitions, and funding ongoing operations, including maintenance and fleet upgrades, as well as the repurchases of, and dividends on, shares of our Class A Common Stock.
Previous wording
Cash and cash equivalents decreased by $0.4 million to $19.6 million as of June 30, 2025 compared to $20.0 million as of December 31, 2024, while working capital excluding cash and current liabilities under debt and lease arrangements decreased $39.7 million.
Current wording
Cash and cash equivalents decreased by $6.5 million to $13.5 million as of September 30, 2025 compared to $20.0 million as of December 31, 2024, while working capital excluding cash and current liabilities under debt and lease arrangements increased $64.0 million.
Previous wording
As of June 30, 2025, the Company was party to one credit agreement, which provides for a revolving line of credit up to $525.0 million. The ABL Facility is subject to certain borrowing base limitations based on a percentage of eligible accounts receivable and inventory available to finance working capital needs. As of June 30, 2025, the borrowing base was calculated to be $430.4 million, and the Company had $160.0 million outstanding, in addition to letters of credit in the amount of $14.0 million, with $256.4 million of remaining availability.
Current wording
As of September 30, 2025, the Company was party to the Credit Agreement, which provides for a revolving line of credit up to $750.0 million. The Credit Agreement is subject to certain borrowing base limitations based on a percentage of eligible accounts receivable and inventory available to finance working capital needs. As of September 30, 2025, the borrowing base was calculated to be $399.1 million, and the Company had $253.0 million outstanding, in addition to letters of credit in the amount of $14.0 million, with $132.1 million of remaining availability.
Previous wording
The ABL Facility contains covenants that restrict our ability to take certain actions. As of June 30, 2025, we were in compliance with all debt covenants.
Current wording
The Credit Agreement contains financial covenants that we are required to maintain, in addition to covenants that restrict our ability to take certain actions. As of September 30, 2025, we were in compliance with all debt covenants.
Previous wording
Effective July 24, 2025, (i) the outstanding debt under the ABL Facility was repaid in full, (ii) the outstanding liabilities with respect to obligations under the ABL Facility were released and discharged, (iii) all liens, security interests and guaranties under the ABL Facility were released and terminated and (iv) all letters of credit issued and outstanding under the ABL Facility were continued as letters of credit issued and outstanding under the Revolving Credit Facility. Furthermore, also effective July 24, 2025, the Borrowers, the Company, JPMorgan Chase Bank, N.A. and other lender parties thereto entered into the Credit Agreement, which provides for, among other things, a Revolving Credit Facility with initial revolving commitments of $750.0 million, subject to certain borrowing base limitations based on a percentage of eligible accounts receivable and inventory. See “Part II – Other Information, Item 5. Other Information” for additional information about the Credit Agreement and the Revolving Credit Facility.
Current wording
Effective July 24, 2025, (i) the outstanding debt under the ABL Facility was repaid in full, (ii) the outstanding liabilities with respect to obligations under the ABL Facility were released and discharged, (iii) all liens, security interests and guaranties under the ABL Facility were released and terminated and (iv) all letters of credit issued and outstanding under the ABL Facility were continued as letters of credit issued and outstanding under the Revolving Credit Facility. Furthermore, also effective July 24, 2025, the Borrowers, the Company, JPMorgan Chase Bank, N.A. and other lender parties thereto entered into the Credit Agreement, which provides for, among other things, a Revolving Credit Facility with initial revolving commitments of $750.0 million, subject to certain borrowing base limitations based on a percentage of eligible accounts receivable and inventory.
Previous wording
Under our share repurchase program, the Company is authorized to repurchase up to $750.0 million of outstanding Class A Common Stock through and including July 31, 2026. Shares may be repurchased from time to time for cash in open market transactions, through block trades, in privately negotiated transactions, through derivative transactions, or by other means in accordance with applicable federal securities laws. The timing and the amount of repurchases will be determined by the Company at its discretion based on an evaluation of market conditions, capital allocation alternatives and other factors. The share repurchase program does not require us to purchase any dollar amount or number of shares of our Class A Common Stock and may be modified, suspended, extended, or terminated at any time without prior notice. The Company expects to fund any repurchases by using cash on hand, borrowings under the ABL Facility, and expected free cash flow to be generated through the duration of the share repurchase program. The Company did not repurchase or retire any shares of Class A Common Stock under the share repurchase program during the three months ended June 30, 2025. During the six months ended June 30, 2025, Company repurchased and retired shares of Class A Common Stock for $24.0 million under the share repurchase program.
Current wording
Under our share repurchase program, the Company is authorized to repurchase up to $750.0 million of outstanding Class A Common Stock through and including July 31, 2026. Shares may be repurchased from time to time for cash in open market transactions, through block trades, in privately negotiated transactions, through derivative transactions, or by other means in accordance with applicable federal securities laws. The timing and the amount of repurchases will be determined by the Company at its discretion based on an evaluation of market conditions, capital allocation alternatives and other factors. The share repurchase program does not require us to purchase any dollar amount or number of shares of our Class A Common Stock and may be modified, suspended, extended, or terminated at any time without prior notice. The Company expects to fund any repurchases by using cash on hand, borrowings under the Revolving Credit Facility, and expected free cash flow to be generated through the duration of the share repurchase program. The Company did not repurchase or retire any shares of Class A Common Stock under the share repurchase program during the three months ended September 30, 2025. During the nine months ended September 30, 2025, Company repurchased and retired shares of Class A Common Stock for $24.0 million under the share repurchase program.
Previous wording
Analysis of Cash Flow Changes Between the Six Months Ended June 30, 2025 and 2024
Current wording
Analysis of Cash Flow Changes Between the Nine Months Ended September 30, 2025 and 2024
Previous wording
Operating Activities. Net cash provided by operating activities was$362.7 million for the six months ended June 30, 2025, compared to $407.6 million for the six months ended June 30, 2024. The $44.9 million decrease in cash from operating activities is attributable to a$213.0 million decrease in revenues, net of a $68.8 million decrease in cash operating expenses, interest expense, net, and income tax expense. The decrease in cash flows provided by operating activities was partially offset by a$61.7 million increasein cash from changes in working capital for the six months ended June 30, 2025, compared to a $37.6 million decrease in cash from changes in working capital for thesix months ended June 30, 2024.
Current wording
Operating Activities. Net cash provided by operating activities was$414.2 million for the nine months ended September 30, 2025, compared to $652.1 million for the nine months ended September 30, 2024. The $237.9 million decrease in cash from operating activities is attributable to a$404.2 million decrease in revenues, net of a $189.7 million decrease in cash operating expenses, interest expense, net, and income tax expense, and a$34.0 million decreasein cash from changes in working capital for the nine months ended September 30, 2025, compared to a $10.6 million decrease in cash from changes in working capital for thenine months ended September 30, 2024.
Previous wording
Investing Activities. Net cash used in investing activities was $189.3 million for the six months ended June 30, 2025, compared to $292.1 million for the six months ended June 30, 2024. Cash used in investing activities was lower during the six months ended June 30, 2025, compared to the six months ended June 30, 2024 primarily due to proceeds of$80.8 million from the sale of common shares on the active market of Oklo and higher proceeds from the sale of assets, offset by a nominal increase in capital expenditures, including acquisitions. During the six months ended June 30, 2025, the Company acquired IMG Energy Solutions for total cash consideration of approximately$15.2 million, net of cash received, after closing adjustments. Refer to Note 2—Significant Accounting Policiesto theunaudited condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report for additional information related to the IMG Acquisition. Investments in equipment, including the new digiTechnologies™ suite and capitalized maintenance of existing equipment decreased$9.5 million, from$281.0 million for the six months ended June 30, 2024 to$271.4 million for the six months ended June 30, 2025.
Current wording
Investing Activities. Net cash used in investing activities was $302.3 million for the nine months ended September 30, 2025, compared to $455.0 million for the nine months ended September 30, 2024. Cash used in investing activities was lower during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024 primarily due to a$57.4 million decrease in new equipment purchases and capitalized maintenance of existing equipment, as well as proceeds of
Previous wording
Financing Activities. Net cash used in financing activities was $174.1 million for the six months ended June 30, 2025, compared to net cash used in financing activities of $122.0 million for the six months ended June 30, 2024. The $52.1 million increase in cash used in financing activities was primarily due to $37.5 million decrease in net borrowings, $35.6 million increase in cash paid under the TRA liability, a $13.7 million increase in cash paid for finance leases, and $3.1 million increase in dividends paid. These increases were partially offset by a $34.9 million decrease in share repurchases and $2.9 million decrease in cash paid for tax withholding on RSU vestings, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024.
Current wording
Financing Activities. Net cash used in financing activities was $118.6 million for the nine months ended September 30, 2025, compared to $210.8 million for the nine months ended September 30, 2024. The $92.2 million decrease in cash used in financing activities was primarily due to $79.5 million increase in net borrowings and a $74.2 million decrease in share repurchases, offset by a $35.6 million increase in cash paid under the TRA liability, a $19.6 million increase in cash paid for finance leases, a $4.7 million increase in debt issuance costs, and $4.6 million increase in dividends paid.
Previous wording
Our material uses of cash consist primarily of obligations under long-term debt on the ABL Facility, TRAs, finance and operating leases for property and equipment, cash used to pay for repurchases of, and dividends on, shares of our Class A Common Stock, and purchase obligations as part of normal operations and our expansion into the distributed power business. Certain amounts included in our contractual obligations as of June 30, 2025 are based on our estimates and assumptions about these obligations, including pricing, volumes, and duration. We have no material off balance sheet arrangements as of June 30, 2025, except for purchase commitments under supply agreements of $29.4 million payable within 2025, and $0.5 million payable thereafter. See Note 14—Commitments & Contingencies to the unaudited condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report for information regarding scheduled contractual obligations. During the three and six months ended June 30, 2025, the Company expanded its equipment lease facilities resulting in the addition of $23.0 million and $50.6 million in new finance lease obligations, respectively. The terms on these new leases range from three to five years.
Current wording
Our material uses of cash consist primarily of obligations under long-term debt on the Revolving Credit Facility, TRAs, finance and operating leases for property and equipment, cash used to pay for repurchases of, and dividends on, shares of our Class A Common Stock, and purchase obligations as part of normal operations and our expansion into the distributed power business. Certain amounts included in our contractual obligations as of September 30, 2025 are based on our estimates and assumptions about these obligations, including pricing, volumes, and duration. We have no material off balance sheet arrangements as of September 30, 2025, except for purchase commitments for generation assets to support our distributed power business and under sand supply agreements of which $20.3 million is payable within 2025, and $3.9 million is payable thereafter. See Note 14—Commitments & Contingencies to the unaudited condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report for information regarding scheduled contractual sand supply obligations. During the three and nine months ended September 30, 2025, the Company expanded its equipment lease facilities resulting in the addition of $37.3 million and $87.9 million in new finance lease obligations, respectively. The terms on these new leases range from three to five years.
Previous wording
The effective global income tax rate applicable to the Company for the six months ended June 30, 2025 was 26.0% compared to 23.7%, for the period ended June 30, 2024. The Company’s effective tax rate is greater than the statutory federal income tax rate of 21.0% due to state income taxes in the states the Company operates, as well as nondeductible executive compensation, partially offset by U.S. federal income tax credits. The Company recognized an income tax expense of $24.1 million and $31.9 million during the three and six months ended June 30, 2025, respectively, and $32.6 million and $59.0 million for the three and six months ended June 30, 2024, respectively.
Current wording
The effective global income tax rate applicable to the Company for the nine months ended September 30, 2025 was 24.7% compared to 23.5%, for the period ended September 30, 2024. The Company’s effective tax rate is greater than the statutory federal income tax rate of 21.0% due to state income taxes in the states the Company operates, as well as nondeductible executive compensation, partially offset by U.S. federal income tax credits. The Company recognized an income tax expense of $12.0 million and $43.9 million during the three and nine months ended September 30, 2025, respectively, and $22.2 million and $81.2 million for the three and nine months ended September 30, 2024, respectively.
Previous wording
Deferred income tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial reporting and tax bases of assets and liabilities, and are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. As of June 30, 2025 and December 31, 2024, the Company’s net deferred tax liabilities were $137.7 million.
Current wording
Deferred income tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial reporting and tax bases of assets and liabilities, and are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. As of September 30, 2025 and December 31, 2024, the Company’s net deferred tax liabilities were $180.9 million and $137.7 million, respectively.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
$80.8 million from the sale of shares of Oklo, higher proceeds from the sale of assets and a decrease in capital expenditures, including acquisitions. During the nine months ended September 30, 2025, the Company acquired IMG Energy Solutions for total cash consideration of approximately$15.2 million, net of cash received, after closing adjustments. Refer to Note 2—Significant Accounting Policiesto theunaudited condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report for additional information related to the IMG Acquisition.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Depreciation, depletion, and amortization expense increased$6.1 million, or 5%, to$129.4 million for the three months ended June 30, 2025 compared to $123.3 million for the three months ended June 30, 2024. The increase during the three months ended June 30, 2025 was primarily due to additional finance leases entered into since the prior period for heavy equipment.