Liberty Energy Raises Dividend 11.1% to $0.10

Liberty Energy Inc. raised its quarterly dividend 11.1% to $0.10 per share from $0.09. LBRT shares are scheduled to trade ex-dividend on December 4, 2026, with payment due December 18, 2026.

Why the dividend changed

Liberty attributed the increase to an improving cycle in its core completions business and momentum in its power initiatives. Chief Executive Ron Gusek said the decision reflected confidence in Liberty’s long-term opportunity and a capital-allocation approach that balances growth investment with shareholder returns. The board retains discretion to adjust future payments according to market conditions and capital availability. Liberty’s dividend declaration provides the company’s explanation.

The increase followed a quarter in which revenue reached $1.2 billion, up 26% from the prior-year period. Liberty nevertheless reported a $39 million net loss, while adjusted net income was $10 million and adjusted EBITDA was $142 million. Management said modest price increases and operational execution were partly offset by drilling delays and cost inflation. It also said customer engagement and market fundamentals had strengthened from the cyclical lows earlier in the year. The latest quarterly results show the contrast between improving activity and still-uneven profitability.

Management expects weather and holiday seasonality to affect the fourth quarter, partly offset by demand deferred from the third quarter. Liberty is also directing capital toward distributed power. Its power unit entered a development agreement covering 1.2 gigawatts of services at data-center campuses, with the first energy-service agreement targeted at approximately 500 megawatts. This expansion helps explain why management framed the dividend as one component of capital allocation rather than the sole use of cash.

Dividend track record

The increase extends Liberty’s dividend-growth streak to 3 consecutive years. The quarterly payment remained $0.08 from December 6, 2024, through September 4, 2025, then moved to $0.09 for the next four scheduled payments. The new $0.10 rate continues a pattern of annual increases, but it does not represent a long record of uninterrupted distributions.

Annual payments totaled $0.22 per share in 2023, up 340.0%, followed by $0.29 in 2024, up 31.8%, and $0.33 in 2025, up 13.8%. The progression shows that growth has moderated as the payment base increased. Liberty suspended its quarterly dividend during the 2020 industry downturn and reinstated it in 2022 after business conditions improved, according to the company’s reinstatement announcement.

Is the dividend covered?

The earnings payout ratio is 150%. That means the measured dividend obligation exceeds the earnings base used in the ratio, leaving limited earnings coverage despite the higher payment. The latest quarter’s GAAP loss reinforces the need to distinguish improving operating activity from bottom-line coverage.

SmarterDividends rates the dividend C, with a safety score of 62. The grade is borderline, within the 50-65 range. It recognizes that the dividend remains modest in absolute terms and that the business is improving, while also reflecting the elevated payout ratio, cyclical exposure and competing calls on capital. Liberty reported $119 million of cash, approximately $1.3 billion of debt and approximately $669 million of liquidity at the end of the latest quarter, figures also detailed in its quarterly SEC filing.

Yield and valuation

LBRT’s forward yield is 2.24%, below the Energy sector median of 3.95%. The annual dividend is $0.36 per share, equivalent to $36.00 of annual income for every 100 shares. At a share price of $16.94, the company has a market value of $2.8 billion and a one-year price return of 12.3% loss.

SmarterDividends estimates fair value at $21.27 and classifies the shares as undervalued, with 36% upside to that estimate. The valuation reading is separate from dividend safety: the 150% earnings payout ratio remains the more direct measure of current dividend coverage.

What to watch

The immediate dates are December 4, 2026, when the shares are scheduled to trade ex-dividend, and December 18, 2026, when the payment is due. After that, the next earnings report will provide updated evidence on whether improving completions activity is translating into stronger earnings coverage.

Investors can also track execution in Liberty’s power business. The company is targeting the first approximately 500-megawatt energy-service agreement by December 2026, with phased energization under the broader development agreement scheduled from the fourth quarter of 2027 through the first quarter of 2029. Progress on commercial agreements, permitting and construction planning will indicate how much capital the power strategy may require alongside dividends.