Sitio Royalties (STR)2024-11-06 21:23Financial Performance - Third quarter net income was 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 156,710 in the same period of 2023 [26]. - Net income for the nine months ended September 30, 2024, increased 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 275,000 for the same period in 2023 [38]. - EBITDA increased to 107,747,000 in the prior year [38]. - Adjusted EBITDA for the same period was 142,542,000 year-over-year [38]. - Cash flow from operations was 122,141,000 in 2023 [40]. - Discretionary Cash Flow for the three months ended September 30, 2024, was 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 403.0 million and liquidity of 992,854, up from 1,304,489, compared to 4,693,364, a decrease from 3,388,875 as of September 30, 2024, down from 0.47 per share to shareholders, which includes a 0.19 per share from stock repurchases [20]. - Sitio has returned over 245 million year-to-date [19]. - The company repurchased 1.4 million shares of Class A Common Stock at an average price of 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 17.11 per barrel of natural gas liquids, and 41.65 per Boe on an unhedged basis [5]. - Average realized price for crude oil decreased to 80.21 per Bbl in 2023 [23]. - The average realized price for natural gas fell to 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 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].