Sitio Royalties (US:STR)2025-05-05 18:29Sitio's Performance and Strategy - Sitio's 3Q24 annualized adjusted EBITDA was $542 million[7] - The company's total yield for 3Q24 was 8.0%, based on a return of capital per share of $0.47 and a share price of $23.46 on 11/15/24[7,8] - Sitio's average daily production in 3Q24 was 38.6 MBoe/d, with 50% being oil[7,14] - The company closed 5 transactions, adding 2,325 net royalty acres (NRAs) in the DJ Basin[13] - Sitio reduced long-term debt by $56.5 million, increasing liquidity to $455.5 million[14] Market Trends and Operator Activity - Operators are realizing efficiency improvements in the oilfield, with Permian Basin production growing despite decreasing rigs and frac fleets[15] - E&P M&A activity is improving Sitio's operator mix, with 62% of 3Q24 production coming from operators with market caps >$10B[18,19] - Net Line-of-Sight (LOS) wells in the Permian Basin increased by 11% quarter-over-quarter[32] Capital Allocation and Financials - Sitio returned 66% of its 3Q24 discretionary cash flow (DCF) to shareholders, amounting to $72.1 million or $0.47 per share[48] - The company is committed to returning at least 65% of DCF to shareholders through cash dividends and share repurchases[51] - As of 9/30/24, Sitio had ~$95 million remaining under its $200 million buyback authorization[51]