Sitio Royalties (STR) - 2024 Q4 - Annual Results

Production and Revenue - Fourth quarter production increased by 14% year-over-year to a record 40.9 MBoe/d, with a 6% increase quarter-over-quarter[4] - Full year pro forma production exceeded the high end of company guidance, with average daily production forecasted at 39.8 MBoe/d for 2025, representing a 3% increase from 2024[2][8] - Average daily production rose to 40,874 BOE/d in Q4 2024, compared to 35,776 BOE/d in Q4 2023, reflecting a 14.8% increase[19] - Crude oil production increased to 1,782 MBbls in Q4 2024, up 14.4% from 1,558 MBbls in Q4 2023[19] - Total revenues for 2024 reached $624.414 million, a 5.5% increase from $593.356 million in 2023[23] Financial Performance - Net income for the fourth quarter was $19.3 million, and Adjusted EBITDA was $141.2 million, reflecting increases of $111.0 million and $6.2 million (5%) respectively compared to Q4 2023[7] - Net income for 2024 was $94.929 million, a significant recovery from a net loss of $46.695 million in 2023[23] - Adjusted EBITDA for Q4 2024 was $141,249,000, compared to $135,037,000 in Q4 2023, reflecting a year-over-year increase of approximately 8.2%[35] - Discretionary Cash Flow for Q4 2024 was $116,872,000, up from $115,401,000 in Q4 2023, indicating a stable cash generation capability[38] Shareholder Returns - Sitio returned a total of $0.49 per share to shareholders in Q4 2024, consisting of a cash dividend of $0.41 and $0.08 from stock repurchases[10] - Cumulative return of capital to shareholders since the Falcon merger in June 2022 has exceeded $840 million, representing nearly 30% of current market capitalization[2][10] - The company repurchased $118.1 million of common stock in 2024, resulting in a 3% reduction in total shares outstanding year-over-year[4] Debt and Liquidity - As of December 31, 2024, total debt outstanding was $1.1 billion, with liquidity of $440.5 million[7] - Long-term debt increased to $1.078 billion in 2024, up 24.7% from $865.338 million in 2023[22] - Cash and cash equivalents at the end of the period were $3,290,000, down from $15,195,000 at the end of 2023[26] - The company reported a net change in cash and cash equivalents of $(11,905,000) for the year, indicating a decrease in liquidity[26] Acquisitions and Investments - The company closed three acquisitions in late 2024 for approximately $140 million, adding about 3,300 net royalty acres primarily in the Delaware Basin[4] - The company completed over 200 acquisitions, accumulating over 270,000 net royalty acres (NRAs) as of December 31, 2024[40] - Total cash used in investing activities was $329,959,000, compared to $59,726,000 in 2023, highlighting increased investment in oil and gas properties[25] Operational Costs - General and administrative expenses for the year ended December 31, 2024, were $54,725,000, an increase from $49,620,000 in 2023[39] - Cash G&A for Q4 2024 was $7,159,000, compared to $6,431,000 in Q4 2023, reflecting a rise in operational costs[39] - Production taxes and other expenses as a percentage of revenue decreased to 7.5% in Q4 2024 from 9.8% in Q4 2023[20] Market Risks and Forward-Looking Statements - The company emphasizes that forward-looking statements may include projections about expected results of operations, cash flows, and future dividends[41] - Risks impacting forward-looking statements include commodity price volatility, global economic uncertainty, and market volatility related to U.S. trade policy changes[41] - The company acknowledges potential impacts from slowing growth and demand, particularly from China, and geopolitical conflicts such as the situation in Ukraine and the Israel-Gaza region[41] - The accuracy of oil and gas reserve estimates is contingent on data quality, interpretation, and price assumptions made by reserve engineers[41] - Reserve estimates may differ significantly from the quantities of oil and natural gas that are ultimately recovered, affecting future production schedules[41] - The company does not undertake any obligation to publicly update forward-looking statements unless required by law[41]