Core Viewpoint - Sitio Royalties reported quarterly earnings of $0.15 per share, exceeding the Zacks Consensus Estimate of $0.14, but down from $0.23 per share a year ago, indicating a 7.14% earnings surprise [1][2] Financial Performance - The company posted revenues of $149.38 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 1.40%, and down from $156.71 million year-over-year [2] - Over the last four quarters, Sitio Royalties has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Sitio Royalties shares have declined approximately 3.7% since the beginning of the year, contrasting with the S&P 500's gain of 21.2% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.13 on revenues of $151 million, and for the current fiscal year, it is $0.56 on revenues of $623 million [7] - The estimate revisions trend for Sitio Royalties is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Oil and Gas - Royalty Trust - United States industry is currently in the bottom 6% of over 250 Zacks industries, suggesting a challenging environment for stocks in this sector [8]

Production and Revenue - As of September 30, 2024, the company owned mineral and royalty interests representing approximately 270,000 NRAs, with average net daily production of 38,585 BOE/d, including 19,134 Bbls/d of oil, 64,130 Mcf/d of natural gas, and 8,763 Bbls/d of NGLs [111]. - For the three months ended September 30, 2024, total revenues were $149.375 million, a decrease of 5% compared to $156.710 million for the same period in 2023 [123]. - Crude oil production for the three months ended September 30, 2024, increased by 9% to 1,760 MBbls compared to 1,617 MBbls in the prior year [125]. - Natural gas production decreased by 5% to 5,900 MMcf from 6,203 MMcf in the same period last year [125]. - Total revenues for the three months ended September 30, 2024, decreased by 6% to $469,314,000 compared to $444,002,000 in the prior year [138]. - Oil revenue for the three months ended September 30, 2024, increased by 12% to $402,226,000, driven by a 9% increase in production volumes [138]. - Natural gas revenue for the three months ended September 30, 2024, decreased by 56% to $14,361,000 due to a 71% decrease in average realized prices [138]. - NGLs revenue for the three months ended September 30, 2024, increased by 16% to $44,758,000, attributed to an 8% increase in production volumes [138]. Pricing and Market Conditions - The average realized price for crude oil was $74.67 per Bbl, for natural gas was $0.45 per Mcf, and for NGLs was $17.11 per Bbl, resulting in an average realized price of $41.65 per BOE, down from $45.00 per BOE in the prior year [117]. - Average realized price for crude oil decreased by 7% to $74.67 per Bbl compared to $80.21 per Bbl in the prior year [125]. - Average realized price for natural gas decreased significantly by 71% to $0.45 per Mcf from $1.54 per Mcf in the same period last year [125]. - The company anticipates continued lower price realizations for natural gas due to pipeline capacity constraints in the Permian Basin [117]. - The prices of oil, natural gas, and NGLs can fluctuate considerably due to supply and demand in the marketplace [179]. Financial Performance - Net income from operations for the three months ended September 30, 2024, was $46.704 million, down 10% from $51.826 million in the prior year [123]. - Net income for the nine months ended September 30, 2024, increased by 68% to $75,600,000 compared to $45,021,000 in the prior year [138]. - Operating expenses for the three months ended September 30, 2024, totaled $102.671 million, a decrease of 2% from $104.884 million in the same period of 2023 [123]. - Impairment of oil and natural gas properties decreased to $0.0 million for the nine months ended September 30, 2024, compared to $25.6 million for the same period in 2023 [149]. - Interest expense decreased due to a lower average interest rate on the 2028 Senior Notes, resulting in reduced costs compared to the 2026 Senior Notes [150]. - Income tax expense increased due to a rise in net income before income tax expense compared to the prior period [153]. Cash Flow and Liquidity - Cash flows from operating activities were $356.7 million for the nine months ended September 30, 2024, a slight increase from $354.8 million in the prior year [158]. - Cash flows used in investing activities totaled $191.2 million, primarily due to acquisitions of oil and gas properties, compared to $172.1 million in the prior period [159]. - Cash flows used in financing activities decreased to $172.3 million from $200.2 million, with net borrowings under the Sitio Revolving Credit Facility increasing by $35.0 million [160]. - As of September 30, 2024, liquidity was $455.5 million, consisting of $8.5 million in cash and cash equivalents and $447.0 million available under the Sitio Revolving Credit Facility [157]. Shareholder Returns and Stock Activity - The company repurchased 3,582,033 shares of Class A Common Stock at a weighted average price of $23.20 during the nine months ended September 30, 2024, with remaining authorization of $94.8 million [115]. - The company does not expect to engage in upstream activities that would incur capital costs, maintaining a focus on returning cash flows to stockholders [112]. Acquisitions and Growth Strategy - The company evaluated over 1,000 potential acquisitions and completed 206 acquisitions to enhance cash flow per share [116]. - As of September 30, 2024, the company had 45,397 gross (333.1 net) producing horizontal wells and 5,503 gross (27.5 net) horizontal wells in various stages of drilling or completion [118]. Risk Management - The company is exposed to market risk from adverse changes in commodity prices and interest rates [183]. - The company may enter into derivative instruments to partially mitigate the impact of commodity price volatility [186]. - The process of estimating crude oil, natural gas, and NGLs reserves is complex and subject to significant revisions over time [177]. - The company does not explore, develop, or operate the properties, thus incurring no associated costs [179]. - The company recognizes lease bonus revenue when the lease agreement has been executed and payment is determined to be collectible [180].

Financial Performance - Third quarter net income was $27.9 million, with Adjusted EBITDA of $135.4 million, reflecting strong production volumes from legacy assets and recent acquisitions [2]. - Total revenues for the three months ended September 30, 2024, were $149,375, a decrease of 4.3% from $156,710 in the same period of 2023 [26]. - Net income for the nine months ended September 30, 2024, increased to $75,600, compared to $45,021 for the same period in 2023, representing a growth of 68% [27]. - Net income for the three months ended September 30, 2024, was $27,867,000, compared to $275,000 for the same period in 2023 [38]. - EBITDA increased to $132,582,000 for the three months ended September 30, 2024, up from $107,747,000 in the prior year [38]. - Adjusted EBITDA for the same period was $135,441,000, a decrease from $142,542,000 year-over-year [38]. - Cash flow from operations was $138,679,000 for the three months ended September 30, 2024, compared to $122,141,000 in 2023 [40]. - Discretionary Cash Flow for the three months ended September 30, 2024, was $109,627,000, down from $117,391,000 in the previous year [40]. Production and Operations - Average daily production for the third quarter was 38,585 Boe/d, exceeding the full year 2024 guidance range of 36,000 – 38,000 Boe/d [8]. - Crude oil production for the three months ended September 30, 2024, was 1,760 MBbls, an increase of 8.8% from 1,617 MBbls in 2023 [23]. - Average daily production increased to 38,585 BOE/d, up 4.6% from 36,900 BOE/d in the same period last year [23]. - NGL production increased to 806 MBbls for the three months ended September 30, 2024, up 8.3% from 744 MBbls in 2023 [23]. - Line of sight wells increased by 11% quarter-over-quarter, indicating higher operator activity and permitting in the Midland and DJ Basins [2]. Financial Position and Debt - Long-term debt was reduced by approximately $56.5 million during the quarter, with a quarter-end credit facility balance of $403.0 million and liquidity of $455.5 million [2]. - Long-term debt increased to $992,854, up from $865,338 at the end of 2023, reflecting a rise of 14.7% [25]. - Total liabilities rose to $1,304,489, compared to $1,163,527 at the end of 2023, indicating an increase of 12.1% [25]. - Total assets as of September 30, 2024, were $4,693,364, a decrease from $4,758,801 as of December 31, 2023 [25]. - Total equity decreased to $3,388,875 as of September 30, 2024, down from $3,595,274 at the end of 2023 [25]. Shareholder Returns - The company returned a total of $0.47 per share to shareholders, which includes a $0.28 per share cash dividend and $0.19 per share from stock repurchases [20]. - Sitio has returned over $765 million to shareholders since going public in 2022, including $245 million year-to-date [19]. - The company repurchased 1.4 million shares of Class A Common Stock at an average price of $21.47 per share during the quarter, totaling $105.2 million year-to-date [20]. - The company plans to continue its share repurchase program and maintain its return of capital framework [43]. Pricing and Market Conditions - Average realized prices during the third quarter were $74.67 per barrel of oil, $17.11 per barrel of natural gas liquids, and $0.45 per Mcf for natural gas, resulting in a total average realized price of $41.65 per Boe on an unhedged basis [5]. - Average realized price for crude oil decreased to $74.67 per Bbl, down 7.4% from $80.21 per Bbl in 2023 [23]. - The average realized price for natural gas fell to $0.45 per Mcf, a significant decrease of 70.6% from $1.54 per Mcf in the previous year [23]. - The company reported a decrease in severance and ad valorem taxes as a percentage of revenue to 6.9% for Q3 2024, down from 7.9% in Q3 2023 [24]. Acquisitions and Growth Strategy - The company completed four acquisitions in July and August 2023 for approximately $181 million, contributing to its pro forma financial metrics [30]. - The company has completed over 200 acquisitions, accumulating over 265,000 net royalty acres (NRAs) to date [42]. - The updated full-year 2024 guidance raised the midpoint of pro forma average daily production range by 1,000 Boe/d due to robust legacy production and recent acquisitions [9]. General and Administrative Expenses - Cash G&A expenses were $7.8 million for the quarter, or $2.20 per Boe, aligning with expectations [6]. - General and administrative expenses were $14,382,000 for the three months ended September 30, 2024, compared to $12,044,000 in 2023 [41]. Forward-Looking Statements - Forward-looking statements indicate potential impacts from commodity price volatility and global economic uncertainties, including conflicts in Ukraine and the Middle East [43]. - The company emphasizes a shareholder returns-driven strategy focused on cash flow generation and reinvestment [42].

We are currently offering a free two-week trial to Distressed Value Investing . Join our community to receive exclusive research about various companies and other opportunities along with full access to my portfolio of historic research that now includes over 1,000 reports on over 100 companies. Aaron Chow, aka Elephant Analytics has 15+ years of analytical experience and is a top rated analyst on TipRanks. Aaron previously co-founded a mobile gaming company (Absolute Games) that was acquired by PENN Entert ...

Sitio Royalties Corp. (NYSE:STR) Q2 2024 Earnings Conference Call August 8, 2024 8:30 AM ET Company Participants Ross Wong - Vice President of Finance and Investor Relations Chris Conoscenti - Chief Executive Officer Carrie Osicka - Chief Financial Officer Conference Call Participants Neal Dingmann - Truist Securities Noel Parks - Tuohy Brothers Investment John Vinh - KeyBanc Capital Markets Betty Zhang - Barclays Operator Hello everyone, and a warm welcome to the Sitio Royalties Second Quarter 2024 Earning ...

Sitio Royalties (STR) came out with quarterly earnings of $0.15 per share, missing the Zacks Consensus Estimate of $0.19 per share. This compares to earnings of $0.25 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -21.05%. A quarter ago, it was expected that this company would post earnings of $0.21 per share when it actually produced earnings of $0.10, delivering a surprise of -52.38%. Over the last four quarters, the compa ...

Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered Class A common stock, par value $0.0001 per share STR New York Stock Exchange UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transiti ...

EXHIBIT 99.1 SITIO ROYALTIES REPORTS SECOND QUARTER 2024 OPERATIONAL AND FINANCIAL RESULTS RECORD HIGH AVERAGE DAILY PRODUCTION VOLUME OF 39,231 BOE/D (50% OIL) RETURN OF CAPITAL OF $0.71 PER SHARE FOR SECOND QUARTER 2024, COMPRISED OF $0.30 CASH DIVIDEND PER SHARE OF CLASS A COMMON STOCK AND $0.41 PER SHARE OF STOCK REPURCHASES RAISES FULL YEAR 2024 PRO FORMA PRODUCTION GUIDANCE TO 36,000 – 38,000 BOE/D(1) AND LOWERS MIDPOINT OF FULL YEAR 2024 CASH TAX GUIDANCE BY $21.5 MILLION INCLUDING PREVIOUSLY ANNOUNC ...

The market expects Sitio Royalties (STR) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 7, 2024, might help the stock move higher if these key numbers are ...

1Q24 Earnings Presentation This presentation relates to Sitio Royalties Corp. (the "Company" or "Sitio") and contains statements that may constitute "forward-looking statements" for purposes of federal securities laws. Forward-looking statements include, but are not limited to, statements that refer to projections, forecasts, or other characterizations of future events or circumstances, including any underlying assumptions. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "inten ...