Long Position on LBRT @ $17.75 on 9/8/2023 (Momentum)

Liberty Energy Inc. (LBRT) provides hydraulic services and related technologies to onshore oil and natural gas exploration, and production companies in North America. 

The company offers hydraulic fracturing services including complementary services, such as wireline services, proppant delivery solutions, data analytics, related goods, and technologies; and other services comprising design and pump diagnostic fracture injection test, DFIT and mini-frac analysis, and laboratory services, such as fluid rheology, surfactant, clay control, scaling and biocide testing.

It owns and operate two sand mines in the Permian Basin; and fleet of approximately 40 active hydraulic fracturing.

In addition, the company provides services primarily in Permian Basin, the Eagle Ford Shale, the DJ Basin, the Williston Basin, the San Juan Basin, the Powder River Basin, the Haynesville Shale, the SCOOP/STACK, the Marcellus Shale, Utica Shale, and the Western Canadian Sedimentary Basin.

Shares have formed a bullish "cup and handle" after the firm was added to the S&P 600 Index. Higher share prices are expected. On July 19th, LBRT reported earnings of $0.87 per share on revenue of $1.19 billion for the second quarter ended June 2023.  The company missed consensus estimates by 3.33% while revenue grew 26.77% on a year-over-year basis. The next report is due on October 18th.

Entry Point: $17.75

Stop Loss: $16.90

Trading Range: $11.18 - $18.35

Target Price: $20.00

Position closed on 9/28/2023 at price of $19.00 with a 7.04% gain in 20 days.

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