Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Accidents, blowouts, explosions, craterings, fires, natural gas leaks, oil and produced water spills and releases of hydraulic fracturing fluids or other well fluids into the environment.
• Employee/employer liabilities and risks such as wrongful termination, discrimination, labor organizing, retaliation claims and general human resource related matters.
• Claims for loss of oil and natural gas production and damage to formations.
• Litigation arising from a catastrophic occurrence at a location where our equipment and services are being used.
• Potential impacts of hydraulic fracturing on drinking water resources.
• Increased regulatory oversight of hydraulic fracturing through additional permit requirements, operational restrictions, disclosure requirements, well construction and temporary or permanent bans on hydraulic fracturing in certain areas.
• Concerns over NORM in flowback water.
• Seismic events near underground disposal wells used for the disposal by injection of flowback and produced water or certain other oilfield fluids.

Mitigation Strategies

• We do not have insurance against all foreseeable risks.
• Our MSAs delineate our and our customer’s respective indemnification obligations.
• We are proactive in developing innovative solutions to industry challenges, including developing: (i) our proprietary databases of U.S. unconventional wells; (ii) our Liberty Quiet Fleet® design; and (iii) hydraulic fracturing fluid systems tailored to the specific reservoir properties in the basins in which we operate.
• We maintain what we believe is customary and reasonable insurance to protect our business against these potential losses.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and severity of storms, floods and other climatic events.

Transition Risks

• Climate change legislation and regulations restricting or regulating emissions of greenhouse gases.

Sustainable Products & Innovation

• Liberty Quiet Fleet®

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Reduced discovery rates of new oil and natural gas reserves in our areas of operation as a result of decreased capital spending may also have a negative long-term impact on our business, even in an environment of stronger oil and natural gas prices.
• Volatility or weakness in oil prices or natural gas prices (or the perception that oil prices or natural gas prices will decrease) affects the spending patterns of our customers and may result in the drilling of fewer new wells.
• Our future results may be impacted by the uncertainty caused by an economic downturn, volatility or deterioration in the debt and equity capital markets, inflation, deflation or other adverse economic conditions that may negatively affect us or parties with whom we do business resulting in a reduction in our customers’ spending and their non-payment or inability to perform obligations owed to us, such as the failure of customers to honor their commitments or the failure of major suppliers to complete orders.
• Our operations are subject to significant hazards often found in the oil and natural gas industry, such as, but not limited to, accidents, including accidents related to trucking operations provided in connection with our services, blowouts, explosions, craterings, fires, natural gas leaks, oil and produced water spills and releases of hydraulic fracturing fluids or other well fluids into the environment.
• The occurrence of a significant event or adverse claim in excess of the insurance coverage that we maintain or that is not covered by insurance could have a material adverse effect on our liquidity, consolidated results of operations and financial condition.
• If a major customer fails to pay us, revenue would be impacted and our operating results and financial condition could be materially harmed.
• Our operations are subject to various transportation regulations including as a motor carrier by the DOT and by various federal, state and tribal agencies, whose regulations include certain permit requirements of highway and safety authorities.
• Our operations and the operations of our customers are subject to numerous federal, tribal, regional, state and local laws and regulations relating to protection of the environment including natural resources, health and safety aspects of our operations and waste management, including the transportation and disposal of waste and other materials.
• Our business activities present risks of incurring significant environmental costs and liabilities, including costs and liabilities resulting from our handling of oilfield and other wastes, because of air emissions and wastewater discharges related to our operations, and due to historical oilfield industry operations and waste disposal practices.
• We are subject to laws and regulations relating to human exposure to crystalline silica.
• Concerns over silicosis and other potential adverse health effects, as well as concerns regarding potential liability from the use of hydraulic fracture sand, may have the effect of discouraging our customers’ use of our hydraulic fracture sand.
• Our industry overall has experienced a high rate of employee turnover.
• Technology advancements in well service technologies, including those involving hydraulic fracturing, could have a material adverse effect on our business, financial condition and results of operations.
• Our services are subject to inherent risks that can cause personal injury or loss of life, damage to or destruction of property, equipment or the environment or the suspension of our operations.
• Seasonal weather conditions, natural disasters, public health crises, and other catastrophic events outside of our control could severely disrupt normal operations and harm our business.
• If we are unable to maintain the confidentiality of our trade secrets, or if our competitors are able to replicate our technology or services, our competitive advantage would be diminished.
• Third parties from time to time may initiate litigation against us by asserting that the conduct of our business infringes, misappropriates or otherwise violates intellectual property rights.
• We rely on sophisticated information technology systems and infrastructure to support our business, including process control technology.
• A cyber incident could occur and result in information theft, data corruption, operational disruption and/or financial loss.
• Our technologies, systems and networks, and those of our vendors, suppliers and other business partners, may become the target of cyberattacks or information security breaches that could result in the unauthorized release, gathering, monitoring, misuse, loss or destruction of proprietary and other information, or other disruption of business operations.
• The occurrence or threat of terrorist attacks in the United States or other countries, anti-terrorist efforts and other armed conflicts involving the United States or other countries, including continued hostilities in the Middle East, may adversely affect the United States and global economies and could prevent us from meeting our financial and other obligations.
• We have entered into a significant number of transactions with related parties and expect to continue to engage in transactions with related parties in the future.
• Our historical financial statements may not be indicative of future performance.
• Prolonged periods of low utilization, changes in technology or the sale of assets below their carrying value may cause us to experience losses.
• Liberty Inc. is a holding company and has no material assets other than its equity interest in Liberty LLC.
• To the extent that Liberty Inc. needs funds and Liberty LLC or its subsidiaries are restricted from making such distributions or payments under applicable law or regulation or under the terms of any future financing arrangements, or are otherwise unable to provide such funds, Liberty Inc.’s liquidity and financial condition could be materially adversely affected.
• If we are unable to timely comply with Section 404 or if the costs related to compliance are significant, our profitability, stock price, results of operations and financial condition could be materially adversely affected.
• An active, liquid and orderly trading market for our Class A Common Stock may not be maintained.
• The Principal Stockholders collectively hold a significant amount of the voting power of our Common Stock and continue to have influence over us.
• Certain of our executive officers and directors have significant duties with, and spend significant time serving, entities that may compete with us in seeking acquisitions and business opportunities and, accordingly, may have conflicts of interest in allocating time or pursuing business opportunities.
• Riverstone and its respective affiliates are not limited in their ability to compete with us, and the corporate opportunity provisions in our amended and restated certificate of incorporation could enable Riverstone to benefit from corporate opportunities that might otherwise be available to us.
• Our current and future indebtedness could adversely affect our financial condition.
• Our Credit Facilities subject us to restrictive covenants, including, but not limited to, restrictions on incurring additional debt and certain distributions.
• Increases in interest rates could adversely impact the price of our shares, our ability to issue equity or incur debt for acquisitions or other purposes.
• Unsatisfactory safety performance may negatively affect our customer relationships and, to the extent we fail to retain existing customers or attract new customers, adversely impact our revenues.
• The ESA and MBTA and other restrictions intended to protect certain species of wildlife govern our and our oil and natural gas producing customers’ operations and additional restrictions may be imposed in the future, which constraints could have an adverse impact on our ability to expand some of our existing operations or limit our customers’ ability to develop new oil and natural gas wells.
• We may have difficulty managing growth of our business, which could adversely affect our financial condition and results of operations.
• We rely on a few key employees whose absence or loss could adversely affect our business.
• We may be subject to risks in connection with acquisitions.
• If securities or industry analysts do not publish research or reports about our business, if they adversely change their recommendations regarding our Class A Common Stock or if our operating results do not meet their expectations, our stock price could decline.

Mitigation Strategies

• We have established relationships with certain suppliers of our raw materials (such as proppant and chemical additives).
• We maintain what we believe is customary and reasonable insurance to protect our business against these potential losses, but such insurance may not be adequate to cover our liabilities, and we are not fully insured against all risks.
• We do not have any written employment agreement with our executives at this time.
• We do not maintain “key person” life insurance policies on any of our employees.
• Our audit committee reviews these transactions.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• increased frequency and severity of storms, floods and other climatic events

Transition Risks

• regulatory changes, market shifts
• Limitation of investments in and financings for fossil fuel energy could result in the restriction, delay, or cancellation of drilling programs or development of production activities.

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Achieved third consecutive quarter of record average daily pumping efficiency
• Commercial deployment of digiPrime℠ hybrid pumps, the primary source of future horsepower anchored by the most efficient natural gas frac engines with the lowest emissions profile

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Moderating demand trends in the North American frac market
• Seasonal softness, winter weather, and holiday disruptions in Q4 2023
• Volatility in commodity markets due to potential escalating conflict in the Middle East and renewed recessionary fears

Mitigation Strategies

• Idling one fleet during the quarter to maintain pricing
• Investing in technology (digiTechnologies℠ suite) and vertical integration to improve efficiency and competitiveness
• Disciplined investment and serving increasingly complex customer needs

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• digiPrime℠ hybrid pumps
• digiFrac℠ fleets

Awards & Recognition

• Not disclosed