Sitio Royalties (STR) Q3 2024 earnings summary

Executive summary

• Third quarter 2024 production averaged 38,585–38,600 Boe/d (50% oil), exceeding guidance and driven by strong operator activity and five acquisitions in the DJ and Permian Basins.

• Closed five acquisitions totaling $21.5–$22 million, adding over 2,300 NRAs in the DJ Basin.

• Returned $0.47 per share to shareholders in Q3 2024 through $0.28 per share dividend and $29 million in share repurchases.

• Reduced long-term debt by $56.5–$60 million, increasing liquidity to $455.5 million.

• Mineral and royalty interests totaled approximately 270,000 NRAs as of September 30, 2024.

Financial highlights

• Q3 2024 net income was $12.6–$27.9 million; Adjusted EBITDA was $135–$135.4 million, with a 91% margin.

• Revenues for Q3 2024 were $149.4 million, down 5% year-over-year due to lower realized prices and lease bonus income.

• Operating cash flow for the nine months ended September 30, 2024, was $356.7 million, up 1% year-over-year.

• Interest expense for Q3 was $22.5 million; cash G&A per Boe was $2.20.

• Returned over $765 million to shareholders since June 2022 through dividends and buybacks.

Outlook and guidance

• Full-year 2024 pro forma average daily production guidance raised to 37,000–39,000 Boe/d, with midpoint up 1,000 Boe/d.

• Cash G&A guidance for 2024 reduced to $30.0–$32.0 million; cash tax guidance increased to $17.0–$21.0 million.

• Management expects continued growth through acquisitions and aims to return significant cash flows to stockholders.

• Formal 2025 guidance to be released early next year, with focus on high-quality acquisitions and capital returns.