Sitio Royalties (STR) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 2024 production of 41,000 BOE/day, up 14% year-over-year, and full-year average over 39,000 BOE/day, both exceeding guidance.

• Closed 16 accretive acquisitions in 2024 totaling $350 million, adding over 20,000 net royalty acres, mainly in the Delaware Basin.

• Returned $843 million to shareholders since mid-2022, including $334 million in 2024 and $0.49/share in Q4 via dividends and buybacks.

• Investments in proprietary technology and asset management tools captured $19 million in missing revenue, offsetting two-thirds of cash G&A.

• Maintained high Adjusted EBITDA margins (>90%) and strong capital structure with de-risked oil and gas exposure.

Financial highlights

• Q4 2024 Adjusted EBITDA was $141.2 million, up 4% sequentially and 5% year-over-year, with a 91% margin.

• Q4 average daily production was 40,900 BOE/day, up 14% year-over-year and 6% sequentially.

• Q4 return of capital was $0.49/share ($0.41 dividend, $0.08 repurchases); 643,000 shares repurchased for $12.9 million.

• Ended 2024 with $1.1 billion in debt and $437.2 million available under the revolving credit facility.

• Record low cash G&A of $1.90/Boe, down nearly 5% from Q4 2023.

Outlook and guidance

• 2025 production guidance: 38,250–41,250 BOE/day, midpoint 3% above 2024; oil production: 17,750–19,250 Bbls/day.

• 2025 cash G&A expected at $36.5–$39.5 million; production taxes 7–9% of royalty revenue; cash taxes $26–$30 million.

• Guidance excludes potential acquisitions, but continued M&A activity is expected.