Yahoo Finance Liberty Energy (LBRT) Acquires Siren, Vertically Integrates LPI
Liberty Energy Inc. LBRT announced the commercial debut of Liberty Power Innovations ("LPI") — the provider of integrated alternative fuel and power solutions for remote applications. Compressed natural gas (CNG) supply, field gas processing and treatment, and well site fueling and logistics are among the key areas of LPI’s focus.
In order to hasten LPI's growth, Liberty announced the purchase of Siren Energy, an integrated natural gas compression and CNG transportation company with a Permian focus. Siren offers transportation, logistics and pressure-reduction services in addition to two expandable Permian sites with a 16-MMcf-per-day capability for natural gas compression. Subject to customary closing adjustments, Liberty paid an overall cash price of $78 million to acquire Siren.
With Liberty at the forefront of this revolution, the oilfield is undergoing a generational technological shift in fuel consumption from diesel to clean natural gas. Reliable access to fuel is essential for sustaining the extremely effective well site operations that power Liberty's industry-leading returns. This fuel will be provided by LPI to Liberty and the industry.
Per LBRT, there are currently limited supplies of CNG and treated field gas. In support of a Liberty frac fleet, LPI delivered its first field gas treatment services for a major Haynesville client. LPI supports Liberty's move to technology transition with vertical integration of fueling and power services.
According to Chris Wright, chief executive officer, LPI is a prime example of the company’s approach to long-term investments with high rates of return prospects. He added that the present accretive transaction facilitates the strategy by unlocking significant value with a faster, go-to-market approach for LPI to bring natural gas fuel to the oilfield. This will result in lower well development costs for E&P customers and higher profitability for shareholders.
Zacks Rank & Key Picks
Currently, Liberty Energy carries a Zack Rank #3 (Hold).
Some better-ranked stocks in the energy sector are CVR Energy CVI, Par Pacific Holdings Inc. PARR, each sporting a Zacks Rank #1 (Strong Buy), and Valero Energy Corporation VLO, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1Rank stocks here.
CVR Energy, a diversified holding company with its main office in Sugar Land, TX, is an independent refiner and marketer of high value transportation fuels. Over the past seven days, CVI has seen an upward revision in earnings estimates for 2023.
Par Pacific, a growth-oriented company, combines knowledge of corporate financing with experience in the oil and gas sector. With 94,000 barrels per day of active refining capacity and a logistical system that includes an SPM, storage, barges, pipelines and trucking operations, PARR owns and manages one of Hawaii's biggest energy networks. Over the past 30 days, the company has witnessed an upward revision in earnings estimates for 2023 and 2024.
Valero Energy is a global manufacturer and marketer of transportation fuels and petrochemical products. With 15 refineries spread across Canada, the United States and the U.K., it has a daily refining capacity of 3.1 million barrels. Over the past seven days, VLO has seen an upward revisions in earnings estimates for 2023 and 2024.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Valero Energy Corporation (VLO) : Free Stock Analysis Report
CVR Energy Inc. (CVI) : Free Stock Analysis Report
Par Pacific Holdings, Inc. (PARR) : Free Stock Analysis Report
Liberty Energy Inc. (LBRT) : Free Stock Analysis Report
