Sitio Royalties (STR) Q1 2025 earnings summary

Executive summary

• Q1 2025 production reached 42,136 BOE/d, up 19% year-over-year, driven by robust drilling, completions, and accretive acquisitions, especially in the Delaware Basin.

• Closed over $20 million in acquisitions, adding 1,350 net royalty acres, with a continued focus on value-enhancing deals in premier basins.

• Returned $0.50 per share to shareholders in Q1 2025 via a $0.35 dividend and $0.15 in share repurchases.

• Share repurchase program extended by $300 million, bringing total authorization to $500 million, with over 4% of shares repurchased in the last 14 months.

• Over $915 million returned to shareholders since 2Q22, representing more than 35% of market cap.

Financial highlights

• Total revenues for Q1 2025 were $163.5 million, up 8% year-over-year, with net income of $26.3 million, a 41% increase, and Adjusted EBITDA of $142.2 million, up 5% year-over-year.

• Adjusted EBITDA margin for the last twelve months was 90%; Q1 2025 margin was 87%.

• Cash flow from operations was $103.5 million; discretionary cash flow was $114.6 million.

• Average realized price per BOE was $41.75, down 9% year-over-year.

• Production taxes and other expenses were 8.2% of royalty revenue; cash G&A was $8.6 million for the quarter.

Outlook and guidance

• Full-year 2025 production guidance: 38,250–41,250 BOE/d and 17,750–19,250 Bbls/d oil, unchanged despite Q1 outperformance.

• Estimated 2025 cash taxes reduced by $5 million due to lower anticipated commodity prices.

• Guidance excludes potential acquisitions; active M&A expected to continue.

• Management will revisit guidance after Q2 as more data becomes available.

• Focus remains on cash flow per share and rate of return, with continued acquisition-driven growth.