Liberty Energy Discloses $493M Power Contract Signed Seven Months Ago
Capital Strategy Shift
Company Background
Liberty Energy is one of North America's largest providers of hydraulic fracturing and completion services, with approximately $3.1 billion in market capitalization and full-year 2025 revenue of $4.0 billion. The Denver-based company operates through its core oilfield services segment and a growing subsidiary, Liberty Power Innovations, which management has positioned as a distributed power and energy storage platform targeting data center and large-load customers.
The oilfield business has been under margin pressure. Adjusted EBITDA fell from $921 million in 2024 to $634 million in 2025, and for the twelve months ended June 30, 2026, management's own adjusted pre-tax return on capital employed stood at 1%. The power buildout is presented as a long-cycle offset to that cyclicality, with management announcing in January 2026 a target of deploying approximately 3 gigawatts of power projects by 2029.
To fund that ambition, Liberty completed two convertible note offerings in early 2026: $770 million in 0.00% Convertible Senior Notes due 2031, closed February 6, and $525 million in 0.00% Convertible Senior Notes due 2032, closed March 30. The combined $1.295 billion raised is zero-coupon and carries no current interest cost, but is fully senior unsecured debt on the balance sheet. As of June 30, 2026, total long-term debt stood at approximately $1.3 billion, up from $247 million at year-end 2025, and cash on hand was $555 million.
What Was Disclosed
A subsidiary of Liberty Energy, Liberty Advanced Equipment Technologies LLC, entered into a contract with Northeast-Western Energy Systems USA LLC on February 13, 2026 to purchase power generation equipment — including engines and balance-of-plant equipment — along with related services, for a purchase price of approximately $493.2 million. The equipment is intended for the company's 'prospective data center and other distributed power projects.' On May 27, 2026, the parties entered into Amendment No. 1, which modified certain milestone invoice and payment events. Delivery milestones, performance testing, and equipment takeover are scheduled to occur in 2028 and 2029.