Liberty Energy Inc. Comments on Stay of SEC Climate Rule and Need for Affordable, Reliable Energy to Better Human Lives

Liberty Energy Inc. (NYSE: LBRT; “Liberty” or the “Company”) provided comments today on the decision by the United States Court of Appeals for the 5^th Circuit granting an administrative stay of the Securities and Exchange Commission’s rule titled “The Enhancement and Standardization of Climate-Related Disclosures for Investors” (the “Climate Rule”). The decision is in response to a petition by Liberty and Nomad Proppant Services LLC.

The Climate Rule was adopted by the SEC on March 6, 2024, and Liberty promptly filed litigation to challenge it. In response, the 5^th Circuit granted an administrative stay of the Climate Rule on March 15, 2024.

Key Takeaways:

• Liberty challenged the Climate Rule because we believe it:
  • exceeds the SEC’s authority;
  • places increased costs on the energy industry without clear benefit; and
  • violates First Amendment rights.
• The Climate Rule will increase costs for the oil and gas industry, which will result in higher energy costs for US consumers.
• In order to better human lives, the world needs more affordable, reliable energy, not less of it.

“We are steadfast in our belief that affordable, reliable sources of energy are key aspects of a successful, modern society and an improved quality of life. However, our industry is continuously facing regulatory actions like the SEC’s Climate Rule,” commented Chris Wright, Chief Executive Officer.

“We are grateful for the 5^th Circuit’s decision that places an administrative stay on the Climate Rule while litigation on this matter proceeds,” continued Mr. Wright. “That said, there is still much work to do - not just with respect to the Climate Rule - but more broadly with our national energy policy in general. The world needs more reliable, affordable energy, not less of it. We hope that constructive dialogues on these topics will be forthcoming, and Liberty stands ready to continue its role in assisting our customers with developing North American oil and natural gas resources to support the world’s energy needs.”

Mr. Wright further explained, “Liberty is not a litigious company. We prefer an open, fact-based dialogue on energy policy issues. Moreover, we respect the SEC and their core mission of protecting investors from financial fraud. Accordingly, our judicial challenge to the Climate Rule is not one we take lightly. However, we chose not to sit idle when political forces pushed the SEC beyond its mission and into the realm of climate and environmental matters. That is not something the SEC can do without proper authorization by Congress.”