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    Is Liberty Energy (LBRT) Quietly Recasting Its Cyclical Fracking Story Into a Power-Utility Narrative?

    Simply Wall St·12/21/2025 07:15:26
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    • In recent months, Liberty Energy Inc. has outlined a shift from its traditional North American hydraulic fracturing roots toward behind-the-meter power solutions, targeting large, always-on customers such as data centers and aiming to secure more than 1 GW of contracted capacity by 2027.
    • This evolution suggests Liberty Energy is seeking to reposition itself as an integrated energy and power provider, using its technology and project capabilities to tap long-duration, infrastructure-like contracts beyond the cyclical oilfield services market.
    • We’ll now examine how Liberty Energy’s push into behind-the-meter power for data centers could reshape its existing investment narrative.

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    Liberty Energy Investment Narrative Recap

    To own Liberty Energy today, you need to believe it can gradually transition from a cyclical North American frac services provider toward a more balanced model that includes contracted, behind the meter power for large loads like data centers. The new 1 GW by 2027 ambition could support that thesis by introducing a fresh near term catalyst around signing initial power contracts, while execution risk in building and contracting this portfolio now sits alongside the existing exposure to softer completions activity.

    Among recent announcements, the steady pattern of quarterly dividends, including the increase to US$0.09 per share declared in October 2025, stands out in light of this pivot. It shows Liberty continuing to return capital to shareholders even as it commits management attention and resources to building out a long duration power solutions book, which may take years to contribute meaningfully and could leave a gap if its traditional oilfield services earnings come under further pressure.

    Yet behind this potential new growth leg, investors should be aware that...

    Read the full narrative on Liberty Energy (it's free!)

    Liberty Energy's narrative projects $4.3 billion revenue and $41.3 million earnings by 2028. This requires 1.8% yearly revenue growth and a $175.5 million earnings decrease from $216.8 million today.

    Uncover how Liberty Energy's forecasts yield a $18.00 fair value, a 3% upside to its current price.

    Exploring Other Perspectives

    LBRT 1-Year Stock Price Chart
    LBRT 1-Year Stock Price Chart

    Six fair value estimates from the Simply Wall St Community span roughly US$11 to US$19.36 per share, underscoring how differently people view Liberty’s prospects. Against that spread, Liberty’s push into long term behind the meter power for data centers could influence whether you focus more on its cyclical completions exposure or its potential to secure infrastructure like contracts over time.

    Explore 6 other fair value estimates on Liberty Energy - why the stock might be worth as much as 11% more than the current price!

    Build Your Own Liberty Energy Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.