DENVER – Liberty Energy Inc. (NYSE: LBRT), an American energy services company, has successfully obtained an administrative stay from the United States Court of Appeals for the 5th Circuit on the Securities and Exchange Commission's (SEC) recently adopted Climate Rule. The court's decision, announced last week, temporarily halts the enforcement of the rule pending further litigation.
The SEC's Climate Rule, which was adopted on March 6, 2024, aims to enhance and standardize climate-related disclosures for investors. Liberty Energy, alongside Nomad Proppant Services LLC, promptly filed a legal challenge against the rule, asserting that it exceeds the SEC's authority, imposes increased costs on the energy industry without clear benefits, and violates First Amendment rights.
Liberty's CEO, Chris Wright, expressed gratitude for the court's decision to stay the Climate Rule, emphasizing the company's stance on the necessity of affordable and reliable energy. He also highlighted Liberty's preference for open, fact-based dialogue on energy policy issues over litigation. However, Wright pointed out that the company felt compelled to act against what they perceive as overreach by the SEC into climate and environmental matters without proper Congressional authorization.
The company believes that the Climate Rule would lead to higher compliance costs for public companies, potentially resulting in increased energy costs for U.S. consumers. Liberty argues that the rule is arbitrary and capricious and that it compels speech on a controversial political matter, thus violating their First Amendment rights.
Liberty Energy, headquartered in Denver, Colorado, is known for its innovative suite of completion services and technologies for onshore oil and natural gas exploration and production companies. The company's challenge to the SEC's rule reflects broader concerns within the energy industry regarding regulatory actions and their impact on energy costs and availability.
The stay granted by the 5th Circuit is a temporary measure while litigation on the matter proceeds. The outcome of this legal challenge could have significant implications for the SEC's authority to mandate climate-related reporting and for the energy industry's regulatory landscape.
This news is based on a press release statement issued by Liberty Energy Inc.
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