Liberty Energy (LBRT)2025-02-06 21:36Financial Condition - As of February 3, 2025, the company had 93.0 million of remaining availability[143] - As of December 31, 2024, the company had 1.9 million per year[273] - The company recorded a foreign currency translation loss of 1.3 million in 2023[275] Debt and Financing Risks - The company may incur substantial additional debt, which could limit its flexibility in planning and reacting to industry changes[144] - The company may not be able to repurchase shares of its Class A Common Stock due to market volatility and trading fluctuations[162] Operational Risks - Unsatisfactory safety performance could negatively impact customer relationships and revenues, as safety records are crucial for customer retention[145] - The company lacks patents for many key processes and technologies, risking a loss of competitive advantage if trade secrets are compromised[146] - The company operates two sand mines in the Permian Basin, facing risks such as environmental compliance and obtaining necessary permits[152] - The company is subject to stringent health and safety standards under the Federal Mine Safety and Health Act, which could impact operations if not complied with[156] Market and Commodity Risks - Geopolitical conditions, including conflicts and sanctions, could lead to market instability and adversely affect the company's financial condition[159] - The demand for hydraulic fracturing services is heavily influenced by the volatility of U.S. oil and natural gas drilling activities[272] - A material decline in oil and natural gas prices could adversely affect the company's business, financial condition, and cash flows[272] - The company is exposed to commodity price risk related to material and fuel purchases, including diesel fuel and natural gas[274] - The pricing and terms for hydraulic fracturing services are dependent on the supply and demand dynamics in the oil and natural gas industry[271] Currency and Exchange Rate Risks - Changes in exchange rates can affect the company's revenues, earnings, and asset values in its consolidated balance sheet[275] - The company does not currently have or intend to enter into any derivative arrangements to hedge against interest rate fluctuations[273] Vendor Commitments - The company has purchase commitments with vendors for proppant inventory at fixed prices, which include minimum purchase obligations[274]