Final Image Preview

1.Step

Create new layer, size: 500 * 400.

2.Step

Fill new layer background with black color.

3.Step

Now add your text, assuming white text. Center the text and make sure you have a decent margin around it.

4.Step

Now duplicate text layer and make text duplicate invisible

5.Step

In layers palette select background layer and text layer, click right mouse button and select merge visible:

6.Step

Now go to Filter -> Stylize -> Wind.
Select parameters like below:

And click Ctrl + F to repeat this action.

7.Step

Now go again to Filter -> Stylize -> Wind.

And again click Ctrl + F to repeat this action.

8.Step

Now select Filter -> Render -> Difference clouds.

9.Step

Activate text duplicate layer and select Opacity to 60%.

10.Step

In layers palette select background layer and duplicate text layer, click right mouse button and select merge visible.

11.Step

Go to Filter -> Stylize -> Extrude.
Select parameters like below:

12.Step

Go to Image -> Adjustments -> Invert.

13.Step

Go to Image -> Adjustments -> Color Balance.
Select parameters like below:

14.Step

Final step. Now take Blur tool and delete all blur fields.
So we will get something like this:

 Download Lava Text effect Psd file