By Stephen Nakrosis
Liberty Energy said fracking industry dynamics are “encouraging” even amid moderating demand trends, “as service prices have remained relatively steady while underutilized frac fleets exited the market.”
The company also said frac activity has “largely stabilized at current levels.”
On the outlook for prices:
Oil and gas prices rose in the third quarter, as global markets found firmer footing during the period. Volatility in commodity markets has emerged amid the possibility of a widening conflict in the Middle East and as recessionary fears are renewed, Liberty said.
“Recognizing the elevated uncertainty, global oil industry production and demand trends infer that the delicate balance of oil and gas markets is tilted to the upside. The long-term demand outlook for secure North American energy anchors a more durable cycle,” the company said.
On the outlook for activity in the fourth quarter:
“Liberty teams outperformed in the third quarter despite industry activity headwinds, delivering significant operating efficiencies and attractive returns. Fourth quarter activity is expected to slow modestly on normal seasonality and the related impact on efficiency,” Chief Executive Officer EO Chris Wright said.
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