> ## Content Index > Fetch the complete content index at: https://www.bullished.co/llms.txt > Use this file to discover other available public pages before exploring further. # Liberty Energy CFO Puts AI Lab's Power-Deal Prepayment At 'Hundreds Of Millions' Of Dollars - URL: https://www.bullished.co/liberty-energy-cfo-puts-ai-labs-power-deal-prepayment-at-hundreds-of-millions-of-dollars-be6f97a9/ - Published: 2026-10-22T15:35:59.000Z - Updated: 2026-10-22T15:35:59.000Z - Description: A frontier AI lab's capacity-fee prepayment covers all 1.2 gigawatts of the deal and is due before any contract is signed, the CFO said. - Author: Matteo Parrino - Tags: Earnings, LBRT, Industry: Energy [Liberty Energy](https://www.bullished.co/tag/lbrt/), which provides hydraulic fracturing services and, through its Liberty Power Innovations unit, distributed power for data centers, will receive a prepayment worth "hundreds of millions of dollars" from a frontier AI lab, CFO Michael Stock said on the company's [third-quarter earnings call](https://markets.ft.com/data/announce/detail?dockey=600-202610211730BIZWIRE%5FUSPRX%5F%5F%5F%5F20261021%5FBW907753-1&ref=bullished.co) on Thursday. The money covers the full [1.2-gigawatt development agreement](https://markets.ft.com/data/announce/detail?dockey=600-202610211730BIZWIRE%5FUSPRX%5F%5F%5F%5F20261021%5FBW907753-1&ref=bullished.co) and is expected before the first power contract is signed. ## A prepayment ahead of the contract Stock told a Stifel analyst the capacity-fee prepayment is "significant," to be amortized over probably the first five years of the contract. Pressed by a Piper Sandler analyst on how it fits the financing, he said "The $300 million is not specific to this project" and called it "a form of commitment from the client for the whole [1.2 gigawatts](https://markets.ft.com/data/announce/detail?dockey=600-202610211730BIZWIRE%5FUSPRX%5F%5F%5F%5F20261021%5FBW907753-1&ref=bullished.co)." CEO Ron Gusek told an analyst the company expects the cash in the near term and that it is "not contingent on execution of the ESA," the energy service agreement. Liberty is targeting that first agreement, for about 500 megawatts, by December 2026, with energization phased from the fourth quarter of 2027 through the first quarter of 2029\. Gusek said the agreement is contemplated to run 15 years, with a renewal option. Stock said the money will sit on the balance sheet as deferred revenue and will be a significant source of cash in the fourth quarter. Liberty does not anticipate needing further financing that quarter, and its full-year capital spending guide is unchanged. ## Recycling capital through project debt Liberty has funded long-lead power equipment largely with convertible notes sold earlier this year, which Stock said raised about $1.3 billion in gross proceeds at a 0% coupon. Third-quarter capital spending, net of long-term deposits, was $622 million, including about $450 million for power generation deposits and related investments. Net debt ended the quarter at $1.2 billion, mostly the senior convertible notes. As ESAs are signed, Stock said, the assets or purchase contracts will drop into special-purpose vehicles that raise project-level debt and reimburse the company for spending to that point. He said Liberty is targeting about 20% equity and 80% debt in those vehicles, and expects project financing to launch in early 2027. ## The stock and the quarter Liberty shares were down 7.91% at $15.37 in Thursday trading as of 11:31 a.m. ET, according to market data. The company's market value was $2.7 billion. Third-quarter revenue was $1.2 billion, about flat with the second quarter, with adjusted EBITDA of $142 million. Stock reported a net loss of $39 million, against net income of $43 million in the prior quarter, including $63 million of unrealized losses on non-core equity investments. The board also raised the quarterly dividend 11% to $0.10 per share. Whether Liberty signs the roughly 500-megawatt agreement by its December target is the next marker; Stock said the major commercial terms are agreed and the contract is in final legal drafting. ### Sources - [Liberty Energy Inc. Announces Third Quarter 2026 Financial and Operational Results – Company Announcement - FT.com](https://markets.ft.com/data/announce/detail?dockey=600-202610211730BIZWIRE%5FUSPRX%5F%5F%5F%5F20261021%5FBW907753-1&ref=bullished.co) — Financial Times - [Document](https://www.sec.gov/Archives/edgar/data/1694028/000169402826000055/q32026-earningsrelease.htm?ref=bullished.co) — sec.gov - [Liberty Energy: Q3 Earnings Snapshot – WTOP News](https://wtop.com/national/2026/10/liberty-energy-q3-earnings-snapshot/?ref=bullished.co) — wtop.com - [Liberty Energy (LBRT) Stock Looks Above Fair Value After Its 18% Five Year Return](https://uk.finance.yahoo.com/news/liberty-energy-lbrt-stock-looks-121043749.html?ref=bullished.co) — Yahoo Finance - [Liberty Energy Inc. Announces 11% Increase in Quarterly Cash Dividend](https://www.businesswire.com/news/home/20261020895690/en/Liberty-Energy-Inc.-Announces-11-Increase-in-Quarterly-Cash-Dividend?ref=bullished.co) — businesswire.com ### More on Liberty Energy - [Liberty Energy Posts $39 Million Third-Quarter Loss On 26% Revenue Growth, Plus A 1.2 GW AI Power Agreement](https://www.bullished.co/liberty-energy-posts-39-million-third-quarter-loss-on-26-revenue-growth-plus-a-1-2-gw-ai-d44d5a93/) [All Liberty Energy (LBRT) coverage →](https://www.bullished.co/tag/lbrt/)