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SANTA CLARA & DENVER - Advanced nuclear technology company Oklo Inc. (NYSE:OKLO) and energy services provider Liberty Energy Inc. (NYSE:LBRT) announced Tuesday a strategic alliance to deliver integrated power solutions for high-demand customers.
The partnership will combine Liberty’s Forte natural gas power generation for immediate power needs with Oklo’s Aurora nuclear powerhouses for future zero-carbon baseload energy. The alliance targets data centers, industrial facilities, and utility-scale sites seeking reliable power solutions. Liberty Energy, which generated over $4.2 billion in revenue over the last twelve months and maintains a healthy current ratio of 1.2, appears well-positioned to support this initiative.
Under the arrangement, Liberty will provide initial power generation and load management services, while Oklo’s advanced nuclear technology will be integrated as it becomes available, creating a comprehensive managed power solution.
"This innovative approach redefines how today’s most energy-intensive industries can scale efficiently with cost-effective, next-generation power solutions," said Ron Gusek, Chief Executive Officer of Liberty.
Liberty Energy was an early investor in Oklo, committing $10 million in 2023 after evaluating various advanced nuclear companies. Currently trading below its Fair Value with a P/E ratio of 7.3, Liberty has demonstrated strong shareholder focus through consecutive dividend increases and share buybacks. InvestingPro analysis reveals additional insights about Liberty’s market position and growth potential, with multiple ProTips available for subscribers.
Jacob DeWitte, Co-Founder and CEO of Oklo, stated the collaboration gives large-scale power users "a turnkey alternative that integrates generation, backup, grid interaction, and optimization, all through a single provider."
Oklo was the first company to receive a site use permit from the U.S. Department of Energy for a commercial advanced fission plant and has submitted a custom combined license application for an advanced reactor to the Nuclear Regulatory Commission.
The partnership aims to address growing power demands while providing customers with a path toward integrating cleaner energy sources, according to the companies’ press release statement. With Liberty Energy’s strong EBITDA of $812 million and manageable debt-to-equity ratio of 0.29, the company appears financially equipped to execute on this strategic initiative.
In other recent news, Stifel has reiterated its buy rating on Liberty Energy, maintaining a price target of $22.00. This decision follows a series of meetings with Liberty Energy’s management, including CEO Ron Gusek and Vice President of Investor Relations Anjali Voria. During these discussions, the management team expressed confidence in the company’s strong performance for the second quarter. Stifel’s continued buy rating suggests a positive growth outlook for Liberty Energy. The investment firm based its decision on insights gathered from the three-day meetings. These developments highlight the firm’s optimistic view of the company’s future performance. Liberty Energy’s management remains assured about their upcoming financial results.
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