Liberty Oilfield Services Announces Potential Pricing for IPO

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Liberty Oilfield Services has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) for its initial public offering (IPO). The company intends to price its 20 million shares in the range of $12 to $13 per share, with an overallotment option for an additional 3 million shares. At the maximum price, the entire offering is valued up to $299 million. The company intends to list its stock on the New York Stock Exchange under the symbol BDFC.

The underwriters for the offering are Morgan Stanley, Goldman Sachs, Wells Fargo, Citigroup, JPMorgan, Evercore ISI, Simmons, Tudor Pickering Holt, Houlihan Lokey, Intrepid Partners, Petrie Partners and SunTrust Robinson Humphrey.

This is a rapidly growing independent provider of hydraulic fracturing services to onshore oil and natural gas exploration and production (E&P) companies in North America. It has grown organically from one active hydraulic fracturing fleet (40,000 HHP) in December 2011 to 14 active fleets (560,000 HHP) in May 2017.

The demand for Liberty’s hydraulic fracturing services exceeds current capacity, and the firm expects, based on discussions with customers, to deploy five additional fleets (200,000 HHP) by the end of the first quarter of 2018, for a total of 19 active fleets (aggregating to a total of 792,500 HHP including additional supporting HHP). Additional fleets consist of six fleets the company recently acquired and are upgrading to specifications.

Liberty provides services primarily in the Permian Basin, the Denver-Julesburg Basin, the Williston Basin and the Powder River Basin, and it expects to deploy one or more fleets for customers in the Eagle Ford Shale in the second half of 2017. Its customer base includes a broad range of E&P companies, including Extraction Oil & Gas, SM Energy, Centennial Resource Development, Continental Resources, Devon Energy, Noble Energy and Anadarko Petroleum.

The company intends to use the net proceeds from the offering to repay its debt, as well as for working capital and general corporate purposes. Also some selling stockholders will get a portion of the proceeds.