RECORD PRO FORMA AVERAGE DAILY PRODUCTION
VOLUME OF 37,970 BOE/D (51% OIL)(1)
FIRST QUARTER 2024 RETURN OF CAPITAL OF
$0.49 PER SHARE, COMPRISED OF $0.41 DIVIDEND PER SHARE OF CLASS A
COMMON STOCK AND $0.08 PER SHARE OF STOCK REPURCHASES
52.9 PRO FORMA NET LINE-OF-SIGHT WELLS AS OF
MARCH 31, 2024, OF WHICH 77% AND 14% ARE IN THE PERMIAN AND DJ
BASINS, RESPECTIVELY(2)
CLOSED PREVIOUSLY ANNOUNCED ACQUISITION OF
DJ BASIN ASSETS IN APRIL 2024(3)
Sitio Royalties Corp. (NYSE: STR) (“Sitio”, “STR” or the
“Company”) today announced operational and financial results for
the quarter ended March 31, 2024. Unless the context clearly
indicates otherwise, references to “we,” “our,” “us” or similar
terms refer to Sitio and its subsidiaries.
FIRST QUARTER 2024 OPERATIONAL AND FINANCIAL
HIGHLIGHTS
- Pro forma 1Q 2024 average daily production volume of 37,970
barrels of oil equivalent per day (“Boe/d”) (51% oil)(1), up 3.7%
relative to pro forma 4Q 2023 average daily production volume of
36,623 Boe/d (49% oil); estimated 14.3 pro forma net wells
turned-in-line ("TIL") during the quarter(2)
- 1Q 2024 average daily production volume of 35,349 Boe/d (52%
oil), with a record high 13.1 estimated net wells TIL during the
quarter
- 1Q 2024 return of capital of $0.49 per share of Class A Common
Stock, comprised of a $0.41 per share dividend and $0.08 per share
of stock repurchases
- 1Q 2024 share repurchases of 545,527 shares of Class A Common
Stock at an average price of $23.77 per share
- Pro forma net line-of-sight (“LOS”) wells of 52.9 net wells as
of March 31, 2024, comprised of 33.0 net spuds and 19.9 net
permits(2)
- 1Q 2024 Net income of $18.7 million, compared to net loss of
$91.7 million in 4Q 2023, primarily driven by $137.6 million lower
operating expenses as a result of no loss on sale of assets, no
loss on extinguishment of debt, offset partially by $28.5 million
of incremental commodity derivative losses and $24.0 million of
higher income tax expense
- 1Q 2024 Adjusted EBITDA(4) of $135.1 million, comparable to 4Q
2023 Adjusted EBITDA of $134.9 million
- 1Q 2024 Pro Forma Adjusted EBITDA(5) of $143.7 million,
including contribution from the DJ Basin Acquisition(3) for the
entire quarter, comparable to 4Q 2023 Pro Forma Adjusted EBITDA of
$143.6 million
RECENT DEVELOPMENTS
- On April 4, 2024, Sitio closed on the acquisition of 13,062
NRAs in the DJ Basin (the "DJ Basin Acquisition") for $126.6
million, net of an initial deposit and closing adjustments; the
acquired assets produced an average of approximately 2,621 Boe/d
(36% oil) and generated approximately $8.5 million of asset level
cash flow for the three months ended March 31, 2024
- On April 8, 2024, the Company repurchased approximately 2.0
million shares from two of our largest non-sponsor Class C
Shareholders in a privately negotiated block trade
1Q 2024 RESULTS RELATIVE TO 2024 GUIDANCE
The table below shows first quarter 2024 results and pro forma
results relative to financial and operational guidance for 2024
that was issued on February 28, 2024.
2024 Guidance Metric
1Q 2024 Reported
Results
1Q 2024 Pro Forma(1)
Results
2024 Full Year
Guidance(6)
Average daily production (Boe/d)
35,349
37,970
35,000 – 38,000
Oil %
52
%
51
%
49% – 51%
Cash G&A ($ in millions)
$
7.7
$
7.7
$31.5 – $33.5 (annual)
Production taxes (% of royalty
revenue)
8.1
%
8.0
%
7.5% – 9.5%
Estimated cash taxes ($ in millions)
$
8.4
NA
$30.0 – $37.0 (annual)
Chris Conoscenti, Chief Executive Officer of Sitio, commented,
"In the first quarter of 2024, production from our assets pro forma
for the DJ Basin Acquisition reached an all-time company high of
37,970 boe/d, up by 3.7% relative to pro forma fourth quarter of
2023, primarily due to activity in the Delaware Basin and Eagle
Ford. In aggregate, pro forma average daily production volume in
these two areas was up by approximately 8%, or approximately 1,750
boe/d, primarily as a result of the approximate 9.0 net wells
turned-in-line during the quarter. We estimate that nearly 40% of
the pro forma net wells TIL in the first quarter of 2024 came
online during March, so we expect to see a more pronounced impact
on second quarter production from these new wells. In March, we
bought back 545,527 shares at an average price of $23.77, and in
April, we capitalized on a unique opportunity to repurchase
approximately 2.0 million shares from two of our largest Class C
non-sponsor holders in a block trade. As expected, we closed the DJ
Basin Acquisition on April 4th and we continue to have a strong
pipeline of minerals acquisition opportunities to evaluate."
(1)
Includes production from the DJ Basin
Acquisition(3) as if it was owned on January 1, 2024
(2)
Includes net wells from the DJ Basin
Acquisition(3) as of March 31, 2024
(3)
The DJ Basin Acquisition is defined as the
all-cash acquisition of 13,062 NRAs in the DJ Basin from an
undisclosed third party that closed on April 4, 2024
(4)
For definitions of non-GAAP financial
measures and reconciliations to their most directly comparable GAAP
financial measures, please see “Non-GAAP financial measures”
(5)
1Q 2024 Pro Forma Adjusted EBITDA
represents 1Q 2024 Adjusted EBITDA plus DJ Basin Acquisition
EBITDA, which reflects as if Sitio had owned the DJ Basin
Acquisition on January 1, 2024
(6)
Includes production from the DJ Basin
Acquisition for full year 2024 as if the transaction had closed on
January 1, 2024
OPERATOR ACTIVITY
The following table summarizes Sitio's reported and pro forma
net average daily production, net wells online, net line-of-sight
wells and net royalty acres by area. All pro forma metrics assume
that Sitio owned the DJ Basin Acquisition assets for the entire
first quarter of 2024.
Delaware
Midland
DJ
Eagle Ford
Williston/Other
Total
Average Daily Production (Boe/d) for
the three months ended March 31, 2024
As reported
20,000
8,259
3,256
3,139
695
35,349
% Oil
50
%
58
%
37
%
59
%
61
%
52
%
Pro forma(1)
20,000
8,259
5,877
3,139
695
37,970
% Oil(1)
50
%
58
%
36
%
59
%
61
%
51
%
Net Well Activity (normalized to 5,000'
laterals)
As reported net wells online as of
December 31, 2023(7)
131.8
65.4
38.9
36.0
9.5
281.6
As reported net wells online as of March
31, 2024(8)
135.4
67.3
39.5
36.3
9.7
288.2
Pro forma net wells online as of December
31, 2023(7)
131.8
65.4
57.4
36.0
9.5
300.1
Pro forma net wells online as of March 31,
2024(8)
135.4
67.3
58.3
36.3
9.7
307.0
Pro forma net wells online increase since
December 31, 2023(8)
3.6
1.9
0.9
0.3
0.2
6.9
Net LOS Wells as of March 31,
2024
As reported net LOS wells
26.1
14.4
2.4
4.4
0.7
48.0
Pro forma net spuds(2)
15.1
10.3
4.6
2.6
0.4
33.0
Pro forma net permits(2)
11.0
4.1
2.7
1.8
0.3
19.9
Pro forma net LOS wells(2)
26.1
14.4
7.3
4.4
0.7
52.9
Net Royalty Acres (normalized to 1/8th
royalty equivalent)
As reported December 31, 2023
152,664
45,380
24,973
21,077
8,203
252,297
As reported March 31, 2024
152,761
45,366
24,973
21,077
8,206
252,383
Pro forma December 31, 2023(9)
152,664
45,380
38,035
21,077
8,203
265,359
Pro forma March 31, 2024(9)
152,761
45,366
38,042
21,077
8,206
265,452
Pro forma NRA increase (decrease) since
December 31, 2023(9)
97
(14
)
7
-
3
93
(7)
Wells currently online and producing,
based on well designations in public data as of December 31, 2023.
Pro forma metrics include net wells from the DJ Basin
Acquisition
(8)
Wells currently online and producing,
based on well designations in public data as of March 31, 2024. Pro
forma metrics include net wells from the DJ Basin Acquisition
(9)
Includes NRAs from the DJ Basin
Acquisition
FINANCIAL UPDATE
Sitio's first quarter 2024 average unhedged realized prices
including all expected quality, transportation and demand
adjustments were $76.60 per barrel of oil, $1.15 per Mcf of natural
gas and $20.71 per barrel of natural gas liquids, for a total
equivalent price of $46.00 per barrel of oil equivalent. During the
first quarter of 2024, the Company received $3.6 million in net
cash settlements for commodity derivative contracts and as a
result, average hedged realized prices were $77.62 per barrel of
oil, $1.53 per Mcf of natural gas and $20.71 per barrel of natural
gas liquids, for a total equivalent price of $47.12 per barrel of
oil equivalent. This represents a $1.69 per barrel of oil
equivalent, or a 3.7% increase relative to hedged realized prices
for the three months ended December 31, 2023.
Consolidated net income for the first quarter of 2024 was $18.7
million, which is $110.4 million higher than consolidated net loss
in the fourth quarter of 2023. This increase was primarily driven
by $137.6 million lower operating expenses as a result of no loss
on sale of assets, no loss on extinguishment of debt, offset
partially by $28.5 million of incremental commodity derivative
losses and $24.0 million of higher income tax expense. For the
three months ended March 31, 2024, Adjusted EBITDA was $135.1
million, comparable to fourth quarter 2023 Adjusted EBITDA of
$134.9 million.
As of March 31, 2024, the Company had $860.0 million principal
value of total debt outstanding (comprised of $260.0 million drawn
on Sitio's revolving credit facility and $600.0 million of senior
unsecured notes) and liquidity of $601.7 million, including $11.7
million of cash and $590.0 million of remaining availability under
its $850.0 million credit facility.
Sitio did not add to or extinguish any of its commodity swaps or
collars during the first quarter of 2024. A summary of the
Company's existing commodity derivative contracts as of March 31,
2024 is included in the table below.
Oil (NYMEX WTI)
2024
1H25
Swaps
Bbl per day
3,300
1,100
Average price ($/Bbl)
$
82.66
$
74.65
Collars
Bbl per day
—
2,000
Average call ($/Bbl)
—
$
93.20
Average put ($/Bbl)
—
$
60.00
Gas (NYMEX Henry Hub)
2024
1H25
Swaps
MMBtu per day
500
—
Average price ($/MMBtu)
$
3.41
—
Collars
MMBtu per day
11,400
11,600
Average call ($/MMBtu)
$
7.24
$
10.34
Average put ($/MMBtu)
$
4.00
$
3.31
RETURN OF CAPITAL
The Company's Board of Directors declared a cash dividend of
$0.41 per share of Class A Common Stock with respect to the first
quarter of 2024. The dividend is payable on May 31, 2024 to the
stockholders of record at the close of business on May 21, 2024.
During the first quarter of 2024, the Company repurchased 545,527
shares of Class A Common Stock at an average price of $23.77 per
share, representing 11% of Pro Forma Discretionary Cash Flow, or
$0.08 per share used for stock repurchases. In total, Sitio's
return of capital for the first quarter of 2024 is $0.49 cents per
share of Class A Common Stock based on a payout ratio of 65% of Pro
Forma Discretionary Cash Flow, which includes Discretionary Cash
Flow for the three months ended March 31, 2024 for the DJ Basin
Acquisition.
In April of 2024, the Company repurchased approximately 2.0
million shares, comprised of approximately 60% Class A Common Stock
and 40% OpCo Units (associated Class C Common Stock was retired)
from two of the largest non-sponsor Class C holders (the "April
2024 Negotiated Share Repurchase"). This transaction impacts the
number of shares receiving a dividend with respect to the first
quarter of 2024 since this repurchase occurred prior to the May 21,
2024 record date of the dividend declared for the first quarter of
2024.
FIRST QUARTER 2024 EARNINGS CONFERENCE CALL
Sitio will host a conference call at 8:30 a.m. Eastern on
Thursday, May 9, 2024 to discuss its first quarter 2024 operating
and financial results. Participants can access the call by dialing
1-833-470-1428 in the United States, or 1-404-975-4839 in other
locations, with access code 994633, or by webcast at
https://events.q4inc.com/attendee/623060425. Participants may also
pre-register for the event via the following link:
https://www.netroadshow.com/events/login?show=f9a4bca4&confId=62882.
The conference call, live webcast and replay can also be accessed
through the Investor Relations section of Sitio’s website at
www.sitio.com.
UPCOMING INVESTOR CONFERENCES
Members of Sitio's management team will be attending the Citi
2024 Energy & Climate Technology Conference on May 14, 2024,
RBC Global Energy, Power and Infrastructure Conference on June 4,
2024, Stifel 2024 Cross Sector Insight Conference on June 5, 2024,
BofA Energy Credit Conference on June 5, 2024, and the JP Morgan
Energy, Power and Renewables Conference on June 17 -18, 2024.
Presentation materials associated with these events will be
accessible through the Investor Relations section of Sitio's
website at www.sitio.com.
FINANCIAL RESULTS
Production Data
Three Months Ended March
31,
2024
2023
Production Data:
Crude oil (MBbls)
1,662
1,589
Natural gas (MMcf)
5,016
5,435
NGLs (MBbls)
719
605
Total (MBoe)(6:1)
3,217
3,100
Average daily production (Boe/d)(6:1)
35,349
34,440
Average Realized Prices:
Crude oil (per Bbl)
$
76.60
$
74.10
Natural gas (per Mcf)
$
1.15
$
2.70
NGLs (per Bbl)
$
20.71
$
21.75
Combined (per Boe)
$
46.00
$
46.96
Average Realized Prices After Effects
of Derivative Settlements:
Crude oil (per Bbl)
$
77.62
$
77.14
Natural gas (per Mcf)
$
1.53
$
2.90
NGLs (per Bbl)
$
20.71
$
21.75
Combined (per Boe)
$
47.12
$
48.87
Selected Expense Metrics
Three Months Ended March
31,
2024
2023
Severance and ad valorem taxes
8.1
%
7.2
%
Depreciation, depletion and amortization
($/Boe)
$
23.72
$
21.86
General and administrative ($/Boe)
$
4.04
$
3.77
Cash G&A ($/Boe)
$
2.40
$
1.97
Pro forma Cash G&A ($/Boe)(10)
$
2.23
$
1.97
Interest expense, net ($/Boe)
$
5.75
$
7.16
(10)
Includes production from the DJ Basin
Acquisition as if it was owned on January 1, 2024
Condensed Consolidated Balance
Sheets
(In thousands except par and share
amounts)
March 31,
December 31,
2024
2023
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents
$
11,746
$
15,195
Accrued revenue and accounts
receivable
113,575
107,347
Prepaid assets
5,549
12,362
Derivative asset
8,080
19,080
Total current assets
138,950
153,984
Property and equipment
Oil and natural gas properties, successful
efforts method:
Unproved properties
2,622,570
2,698,991
Proved properties
2,451,708
2,377,196
Other property and equipment
3,791
3,711
Accumulated depreciation, depletion,
amortization, and impairment
(574,849
)
(498,531
)
Total property and equipment, net
4,503,220
4,581,367
Long-term assets
Deposits for property acquisitions
15,000
—
Long-term derivative asset
797
3,440
Deferred financing costs
10,419
11,205
Operating lease right-of-use asset
5,655
5,970
Other long-term assets
2,807
2,835
Total long-term assets
34,678
23,450
TOTAL ASSETS
$
4,676,848
$
4,758,801
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and accrued expenses
$
39,499
$
30,050
Operating lease liability
1,721
1,725
Total current liabilities
41,220
31,775
Long-term liabilities
Long-term debt
848,833
865,338
Deferred tax liability
255,705
259,870
Non-current operating lease liability
5,090
5,394
Other long-term liabilities
1,150
1,150
Total long-term liabilities
1,110,778
1,131,752
Total liabilities
1,151,998
1,163,527
Equity
Class A Common Stock, par value $0.0001
per share; 240,000,000 shares authorized; 82,636,109 and 82,451,397
shares issued and 82,090,582 and 82,451,397 outstanding at March
31, 2024 and December 31, 2023, respectively
8
8
Class C Common Stock, par value $0.0001
per share; 120,000,000 shares authorized; 74,829,822 and 74,965,217
shares issued and 74,803,685 and 74,939,080 outstanding at March
31, 2024 and December 31, 2023, respectively
8
8
Additional paid-in capital
1,760,949
1,796,147
Accumulated deficit
(179,270
)
(187,738
)
Class A Treasury Shares, 545,527 and 0
shares at March 31, 2024 and December 31, 2023, respectively
(13,057
)
—
Class C Treasury Shares, 26,137 and 26,137
shares at March 31, 2024 and December 31, 2023, respectively
(677
)
(677
)
Noncontrolling interest
1,956,889
1,987,526
Total equity
3,524,850
3,595,274
TOTAL LIABILITIES AND EQUITY
$
4,676,848
$
4,758,801
Unaudited Condensed Consolidated
Statements of Income
(In thousands, except per share
amounts)
Three Months Ended March
31,
2024
2023
Revenues:
Oil, natural gas and natural gas liquids
revenues
$
147,971
$
145,554
Lease bonus and other income
3,420
5,272
Total revenues
151,391
150,826
Operating expenses:
Depreciation, depletion and
amortization
76,318
67,763
General and administrative
13,011
11,676
Severance and ad valorem taxes
12,026
10,459
Total operating expenses
101,355
89,898
Net income from operations
50,036
60,928
Other income (expense):
Interest expense, net
(18,510
)
(22,203
)
Change in fair value of warrant
liability
—
2,358
Loss on extinguishment of debt
—
(783
)
Commodity derivatives gains (losses)
(10,050
)
14,763
Interest rate derivatives losses
—
(160
)
Net income before taxes
21,476
54,903
Income tax expense
(2,784
)
(7,184
)
Net income
18,692
47,719
Net income attributable to noncontrolling
interest
(10,224
)
(25,066
)
Net income attributable to Class A
stockholders
$
8,468
$
22,653
Net income per Class A common
share
Basic
$
0.10
$
0.28
Diluted
$
0.10
$
0.28
Weighted average Class A common shares
outstanding
Basic
82,404
80,178
Diluted
82,404
80,178
Unaudited Condensed Consolidated
Statements of Cash Flow
(In thousands)
Three Months Ended March
31,
2024
2023
Cash flows from operating
activities:
Net income
$
18,692
$
47,719
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, depletion and
amortization
76,318
67,763
Amortization of deferred financing costs
and long-term debt discount
1,294
1,345
Share-based compensation
5,104
4,684
Change in fair value of warrant
liability
—
(2,358
)
Loss on extinguishment of debt
—
783
Commodity derivative (gains) losses
10,050
(14,763
)
Net cash received for commodity derivative
settlements
3,593
5,932
Interest rate derivative losses
—
160
Net cash paid for interest rate derivative
settlements
—
(39
)
Deferred tax (benefit) expense
(4,238
)
2,751
Change in operating assets and
liabilities:
Accrued revenue and accounts
receivable
(6,228
)
14,951
Prepaid assets
6,813
(772
)
Other long-term assets
343
321
Accounts payable and accrued expenses
9,295
598
Operating lease liabilities and other
long-term liabilities
(296
)
(250
)
Net cash provided by operating
activities
120,740
128,825
Cash flows from investing
activities:
Purchases of oil and gas properties, net
of post-close adjustments
1,909
1,180
Deposits for property acquisitions
(15,000
)
—
Other, net
(167
)
(19
)
Net cash provided by (used in)
investing activities
(13,258
)
1,161
Cash flows from financing
activities:
Borrowings on credit facilities
59,000
323,000
Repayments on credit facilities
(76,000
)
(346,000
)
Repayments on 2026 Senior Notes
—
(11,250
)
Debt issuance costs
(48
)
(7,015
)
Distributions to noncontrolling
interest
(38,157
)
(49,206
)
Dividends paid to Class A stockholders
(41,950
)
(48,107
)
Dividend equivalent rights paid
(362
)
(25
)
Repurchases of Class A Common Stock
(12,668
)
—
Cash paid for taxes related to net
settlement of share-based compensation awards
(746
)
(44
)
Net cash used in financing
activities
(110,931
)
(138,647
)
Net change in cash and cash
equivalents
(3,449
)
(8,661
)
Cash and cash equivalents, beginning of
period
15,195
18,818
Cash and cash equivalents, end of
period
$
11,746
$
10,157
Supplemental disclosure of non-cash
transactions:
Decrease in current liabilities for
additions to property and equipment:
$
(87
)
$
(5
)
Supplemental disclosure of cash flow
information:
Cash paid for income taxes:
$
11
$
550
Cash paid for interest expense:
5,180
19,515
Non-GAAP financial measures
Adjusted EBITDA, Pro Forma Adjusted EBITDA, Discretionary Cash
Flow, Pro Forma Discretionary Cash Flow and Cash G&A are
non-GAAP supplemental financial measures used by our management and
by external users of our financial statements such as investors,
research analysts and others to assess the financial performance of
our assets and their ability to sustain dividends over the long
term without regard to financing methods, capital structure or
historical cost basis. Sitio believes that these non-GAAP financial
measures provide useful information to Sitio's management and
external users because they allow for a comparison of operating
performance on a consistent basis across periods.
We define Adjusted EBITDA as net income plus (a) interest
expense, (b) provisions for taxes, (c) depreciation, depletion and
amortization, (d) non-cash share-based compensation expense, (e)
impairment of oil and natural gas properties, (f) gains or losses
on unsettled derivative instruments, (g) change in fair value of
the warrant liability, (h) loss on debt extinguishment, (i)
merger-related transaction costs and (j) write off of financing
costs.
We define Pro Forma Adjusted EBITDA as Adjusted EBITDA plus DJ
Basin Acquisition EBITDA from January 1, 2024 to March 31, 2024
that is not included in Adjusted EBITDA for the three months ended
March 31, 2024.
We define Discretionary Cash Flow as Adjusted EBITDA, less cash
and accrued interest expense and estimated cash taxes.
We define Pro Forma Discretionary Cash Flow as Discretionary
Cash Flow plus DJ Basin Acquisition Discretionary Cash Flow from
January 1, 2024 to March 31, 2024 that is not included in
Discretionary Cash Flow for the three months ended March 31,
2024.
We define Cash G&A as general and administrative expense
less (a) non-cash share-based compensation expense, (b)
merger-related transaction costs and (c) rental income.
These non-GAAP financial measures do not represent and should
not be considered an alternative to, or more meaningful than, their
most directly comparable GAAP financial measures or any other
measure of financial performance presented in accordance with GAAP
as measures of our financial performance. Non-GAAP financial
measures have important limitations as analytical tools because
they exclude some but not all items that affect the most directly
comparable GAAP financial measure. Our computations of Adjusted
EBITDA, Pro Forma Adjusted EBITDA, Discretionary Cash Flow, Pro
Forma Discretionary Cash Flow and Cash G&A may differ from
computations of similarly titled measures of other companies.
The following table presents a reconciliation of Adjusted EBITDA
and Pro Forma Adjusted EBITDA to the most directly comparable GAAP
financial measure for the period indicated (in thousands).
Three Months Ended March
31,
2024
2023
Net income
$
18,692
$
47,719
Interest expense, net
18,510
22,203
Income tax expense
2,784
7,184
Depreciation, depletion and
amortization
76,318
67,763
EBITDA
$
116,304
$
144,869
Non-cash share-based compensation
expense
5,104
4,684
Losses (gains) on unsettled derivative
instruments
13,643
(8,710
)
Change in fair value of warrant
liability
—
(2,358
)
Loss on debt extinguishment
—
783
Merger-related transaction costs
56
779
Adjusted EBITDA
$
135,107
$
140,047
DJ Basin Acquisition EBITDA
8,550
—
Pro Forma Adjusted EBITDA
$
143,657
$
140,047
The following table presents a reconciliation of Discretionary
Cash Flow and Pro Forma Discretionary Cash Flow to the most
directly comparable GAAP financial measure for the period indicated
(in thousands).
Three Months Ended March
31,
2024
2023
Cash flow from operations
$
120,740
$
128,825
Interest expense, net
18,510
22,203
Income tax expense
2,784
7,184
Deferred tax benefit (expense)
4,238
(2,751
)
Changes in operating assets and
liabilities
(9,927
)
(14,848
)
Amortization of deferred financing costs
and long-term debt discount
(1,294
)
(1,345
)
Merger-related transaction costs
56
779
Adjusted EBITDA
$
135,107
$
140,047
Less:
Cash and accrued interest expense
17,210
19,515
Estimated cash taxes
8,375
550
Discretionary Cash Flow
$
109,522
$
119,982
DJ Basin Acquisition Discretionary Cash
Flow
8,550
—
Pro Forma Discretionary Cash
Flow
$
118,072
$
119,982
The following table presents a reconciliation of Cash G&A to
the most directly comparable GAAP financial measure for the period
indicated (in thousands).
Three Months Ended March
31,
2024
2023
General and administrative expense
$
13,011
$
11,676
Less:
Non-cash share-based compensation
expense
5,104
4,684
Merger-related transaction costs
56
779
Rental income
141
106
Cash G&A
$
7,710
$
6,107
About Sitio Royalties Corp.
Sitio is a shareholder returns-driven company focused on
large-scale consolidation of high-quality oil & gas mineral and
royalty interests across premium basins, with a diversified set of
top-tier operators. With a clear objective of generating cash flow
from operations that can be returned to stockholders and
reinvested, Sitio has accumulated over 260,000 NRAs through the
consummation of over 190 acquisitions to date. More information
about Sitio is available at www.sitio.com.
Forward-Looking Statements
This news release 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,” “intends,” “may,”
“might,” “plan,” “seeks,” “possible,” “potential,” “predict,”
“project,” “prospects,” “guidance,” “outlook,” “should,” “would,”
“will,” and similar expressions may identify forward-looking
statements, but the absence of these words does not mean that a
statement is not forward-looking. These statements include, but are
not limited to, statements about the Company's expected results of
operations, cash flows, financial position and future dividends; as
well as certain future plans, expectations and objectives for the
Company’s operations, including statements about our return of
capital framework, our share repurchase program, the implementation
thereof and the intended benefits, financial and operational
guidance, strategy, synergies, certain levels of production, future
operations, financial position, prospects, and plans. While
forward-looking statements are based on assumptions and analyses
made by us that we believe to be reasonable under the
circumstances, whether actual results and developments will meet
our expectations and predictions depend on a number of risks and
uncertainties that could cause our actual results, performance, and
financial condition to differ materially from our expectations and
predictions. Factors that could materially impact such
forward-looking statements include, but are not limited to:
commodity price volatility, the global economic uncertainty related
to the large-scale invasion of Ukraine by Russia, the conflict in
the Israel-Gaza region and continued hostilities in the Middle East
including increased tensions with Iran, the collapse of certain
financial institutions and associated liquidity risks,
announcements of voluntary production cuts by OPEC+ and others, and
those other factors discussed or referenced in the "Risk Factors"
section of Sitio’s Annual Report on Form 10-K for the year ended
December 31, 2023 and other publicly filed documents with the SEC.
Any forward-looking statement made in this news release speaks only
as of the date on which it is made. Factors or events that could
cause actual results to differ may emerge from time to time, and it
is not possible to predict all of them. Sitio undertakes no
obligation to publicly update any forward-looking statement,
whether as a result of new information, future development, or
otherwise, except as may be required by law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240508516539/en/
IR contact: Ross Wong (720) 640–7647 IR@sitio.com
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