Sitio Royalties (STR) - 2025 Q2 - Quarterly Results

Sitio Royalties Q2 2025 Financial and Operational Results Q2 2025 Highlights Sitio Royalties reported 41.9 MBoe/d production, $14.5M net income, $125.4M Adjusted EBITDA, and $0.42 per share returned Q2 2025 Key Metrics | Metric | Value | | :--- | :--- | | Total Production | 41.9 MBoe/d | | Oil Production | 19.3 MBbls/d | | Net Income | $14.5 million | | Adjusted EBITDA | $125.4 million | | Net Wells Turned-in-Line | 8.7 | | Net Line of Sight (LOS) Wells | 48.1 | | Acquisitions | $6.0 million (430 NRAs) | | Share Repurchases | $8.9 million (0.5 million shares) | | Total Return of Capital | $0.42 per share | Proposed Merger with Viper Energy, Inc. Sitio agreed to an all-stock merger with Viper Energy, Inc., expected Q3 2025 close, suspending future guidance - On June 3, 2025, Sitio and Viper Energy, Inc. agreed to a definitive merger where Viper will acquire Sitio in an all-stock transaction[4] - The merger is expected to close in Q3 2025, subject to Sitio stockholder approval and other closing conditions[4] - Due to the pending merger, Sitio has discontinued providing operational and financial guidance and will not hold an investor conference call[5] Financial Performance Q2 2025 revenues were $145.7M, net income $14.5M, and Adjusted EBITDA $125.4M, primarily due to lower commodity prices Key Financial Metrics and Realized Prices Q2 2025 unhedged realized price was $36.95/Boe, with net income $14.5M and Adjusted EBITDA $125.4M, reflecting varied commodity prices Q2 2025 vs Q2 2024 Average Realized Prices (Unhedged) | Commodity | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Crude oil (per Bbl) | $63.03 | $79.85 | | Natural gas (per Mcf) | $1.43 | $1.01 | | NGLs (per Bbl) | $22.57 | $20.32 | | Combined (per BOE) | $36.95 | $46.36 | Q2 2025 Key Financials | Metric | Value | | :--- | :--- | | Net Income | $14.5 million | | Adjusted EBITDA | $125.4 million | Selected Expense Metrics ($/Boe) | Expense Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Depreciation, depletion and amortization | $19.92 | $23.95 | | General and administrative | $5.27 | $3.77 | | Cash G&A | $2.33 | $1.94 | | Interest expense, net | $6.05 | $6.36 | Condensed Consolidated Financial Statements Total assets were $4.61B and liabilities $1.37B as of June 30, 2025, with H1 2025 net cash from operations at $189.0M Condensed Balance Sheet (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $134,643 | $135,222 | | Total Property and Equipment, net | $4,460,539 | $4,591,287 | | TOTAL ASSETS | $4,610,415 | $4,743,720 | | Total Current Liabilities | $33,348 | $48,031 | | Total Long-term Liabilities | $1,333,087 | $1,338,571 | | TOTAL LIABILITIES | $1,366,435 | $1,386,602 | | TOTAL EQUITY | $3,243,980 | $3,357,118 | Condensed Statement of Operations (in thousands) | Account | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Revenues | $145,659 | $168,548 | | Income from Operations | $37,205 | $57,174 | | Net Income | $14,548 | $29,041 | | Net Income Attributable to Class A Stockholders | $7,273 | $12,854 | | Basic Net Income per Share | $0.08 | $0.16 | Condensed Statement of Cash Flows (in thousands) | Account | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $188,970 | $218,052 | | Net cash used in investing activities | ($22,631) | ($177,661) | | Net cash used in financing activities | ($169,246) | ($39,238) | | Net change in cash and cash equivalents | ($2,907) | $1,153 | Operational Performance Q2 2025 average daily production rose to 41,879 Boe/d, supported by 275,071 net royalty acres and 48.1 net LOS wells Production Data by Period | Period | Total Production (MBOE) | Avg. Daily Production (BOE/d) | | :--- | :--- | :--- | | Q2 2025 | 3,811 | 41,879 | | Q2 2024 | 3,570 | 39,231 | | Six Months 2025 | 7,603 | 42,007 | | Six Months 2024 | 6,787 | 37,290 | Net Royalty Acres and LOS Wells by Basin (as of June 30, 2025) | Basin | Net Royalty Acres | Net LOS Wells | | :--- | :--- | :--- | | Delaware | 156,795 | 22.9 | | Midland | 45,688 | 13.4 | | DJ | 43,338 | 6.9 | | Eagle Ford | 21,047 | 4.7 | | Williston/Other | 8,203 | 0.2 | | Total | 275,071 | 48.1 | Capital Structure and Shareholder Returns Sitio reported $1.1B debt and $437.2M liquidity, returning $0.42 per share to shareholders in Q2 2025 via dividends and repurchases - Total debt outstanding was $1.1 billion as of June 30, 2025, with total liquidity of $437.2 million[8] Q2 2025 Shareholder Capital Return | Return Method | Value (per share) | | :--- | :--- | | Cash Dividend | $0.36 | | Stock Repurchases | $0.06 | | Total Return | $0.42 | - The company repurchased 0.5 million shares of Class A Common Stock at an average price of $16.30 per share[10] - Cumulative return of capital to shareholders since becoming public in 2022 has exceeded $980 million[9] Non-GAAP Financial Measures Sitio uses non-GAAP measures like Adjusted EBITDA ($125.4M), Discretionary Cash Flow ($98.5M), and Cash G&A ($8.9M) to evaluate performance - The company uses non-GAAP measures like Adjusted EBITDA, Discretionary Cash Flow, and Cash G&A to help investors assess financial performance, ability to sustain dividends, and for period-over-period comparison[18] Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net income | $14,548 | $29,041 | | Interest expense, net | 23,049 | 22,688 | | Income tax expense | 415 | 4,838 | | Depreciation, depletion and amortization | 75,901 | 85,485 | | EBITDA | $113,913 | $142,052 | | Non-cash share-based compensation | 7,462 | 6,203 | | Losses on unsettled derivative instruments | 472 | 3,329 | | Merger-related transaction costs | 3,572 | 149 | | Adjusted EBITDA | $125,419 | $151,733 | Key Non-GAAP Results (in thousands) | Measure | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Adjusted EBITDA | $125,419 | $151,733 | | Discretionary Cash Flow | $98,515 | $129,473 | | Cash G&A | $8,871 | $6,933 |