Liberty Energy Inc. (NYSE:LBRT), a $3.63 billion market cap energy services company with an impressive InvestingPro Financial Health score of "GREAT," announced on Monday the expansion of its Board of Directors from nine to ten members and the appointment of two new directors.
The company's Board approved the appointment of Mr. Arjun Murti as a Class I director, with his term set to expire at the 2026 annual meeting of stockholders. Additionally, Mr. Ron Gusek has been conditionally appointed as a Class II director, with a term expiring at the 2027 annual meeting of stockholders, contingent upon the resignation of current Chairman, Director, and CEO Mr. Chris Wright.
Mr. Murti brings a wealth of experience to the board, currently serving as a partner at Veriten LLC and a senior advisor at Warburg Pincus. His previous roles include Partner at Goldman Sachs and equity research analyst covering the energy sector. Murti also serves on the board of directors of ConocoPhillips (NYSE:COP) and is involved with ClearPath and the Center on Global Energy Policy at Columbia University. Liberty Energy has retained Veriten for consulting services in 2024 and 2025, each year for approximately $250,000. The Board has determined that Mr. Murti meets the independence criteria set by the New York Stock Exchange and the Securities Exchange Act of 1934.
In connection with Mr. Wright's anticipated departure to serve as the incoming Secretary of Energy of the United States, subject to confirmation by the United States Senate, the Compensation Committee approved the acceleration of vesting for all of Mr. Wright's unvested restricted stock units (RSUs) under the company's Long Term Incentive Plan. The transition comes as Liberty Energy maintains strong financial performance, with $4.45 billion in revenue and a P/E ratio of 10.39. InvestingPro analysis suggests the stock is currently trading near its Fair Value, with additional insights available in the comprehensive Pro Research Report. Upon confirmation, 233,025 time-based RSUs and 500,572 performance-based RSUs will vest for Mr. Wright.
Simultaneously, the Compensation Committee approved the compensation package for Mr. Gusek in his new role as CEO, effective upon Mr. Wright's departure. The package includes a base salary of $603,580, a target annual cash incentive of approximately $898,160, and a grant of time-based and performance-based RSUs valued at approximately $3,019,000 under the company's LTIP. The RSUs will vest over a three-year period, with performance-based RSUs contingent on the company's return on capital employed (ROCE) performance relative to peers.
This information is based on a press release statement filed with the Securities and Exchange Commission. For investors seeking deeper insights into Liberty Energy's performance and prospects, InvestingPro offers 8 additional key tips and extensive financial metrics, including detailed analysis of the company's strong returns and moderate debt levels.
In other recent news, Liberty Energy Inc. has announced significant changes in its leadership team. Christopher A. Wright, the company's Founder, Chairman, Director, and CEO, has been nominated for the position of U.S. Secretary of Energy, leading to his resignation from these roles. In response, the Board has appointed William Kimble as the non-executive Chairman of the Board and Ron Gusek as the new CEO.
In addition, Liberty Energy has added Arjun Murti to its Board of Directors, a move expected to enhance its strategic planning and market insight. Murti's extensive experience in the energy sector, including significant roles at Goldman Sachs and JP Morgan Investment Management, is anticipated to complement the existing Board's skills.
On the financial front, Liberty reported strong Q3 results for 2024, with revenues reaching $1.1 billion and an adjusted EBITDA of $248 million. Citi analysts have revised their fourth-quarter EBITDA estimate for the company downward by 3% to $166 million and reduced their 2025 EBITDA estimate by 4% to $765 million.
In terms of analyst ratings, Citi analysts downgraded the company's stock from Buy to Neutral, setting a new price target of $13.00. Stifel and RBC Capital Markets also adjusted their price targets for the company, while Goldman Sachs maintained a neutral view, recognizing the value in the company's share buyback program. These developments reflect recent events in the company's financial and leadership landscape.
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