ThesisLiberty Energy: the story is balanced — North American horizontal rig count and completion activity - leading indicator of frac demand with 60-90 day lag
momentum/value - The 143% six-month return and 66% three-month return indicate strong momentum following likely from oil price recovery…
Moderate sensitivity through two channels: (1) Higher rates increase borrowing costs for E&P customers…
Watch on earnings: WTI crude oil spot price and forward curve structure (contango vs backwardation signals operator hedging and activity), Henry Hub natural gas spot price and basis differentials to Permian Waha Hub, US horizontal oil and gas rig count (Baker Hughes weekly data) - 60-90 day leading indicator.
One Sentence Summary:
Liberty Energy: the story is balanced — north american horizontal rig count and completion activity - leading indicator of frac demand with 60-90 day lag.
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