NYSE$STR

Sitio Royalties Corp · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Sitio Royalties reported strong operational and financial results for the second quarter of 2024, driven by record high average daily production volume and increased net income.

Sitio Royalties reported a record high average daily production volume of 39,231 Boe/d (50% oil) for Q2 2024, an 11% increase from Q1 2024. Net income rose by 55% to $29.0 million, primarily due to higher oil, natural gas, and natural gas liquids revenues and lower commodity derivatives losses. The company also returned $0.71 per share to shareholders through cash dividends and stock repurchases.

  • Record high average daily production volume of 39,231 Boe/d (50% oil) was achieved in Q2 2024.
  • Net income increased by 55% to $29.0 million compared to Q1 2024.
  • A total of $0.71 per share was returned to shareholders, comprising a $0.30 cash dividend and $0.41 in stock repurchases.
  • Full-year 2024 pro forma production guidance was raised to 36,000 – 38,000 Boe/d, and the midpoint of cash tax guidance was lowered by $21.5 million.

Headline financials

Total Revenue

$169M

No prior period
EPS (adj)

$0.16

No prior period
Total Average Daily Production

39.2K

No prior period
Oil Average Daily Production

50

No prior period
Average Realized Oil Price

$79.85

No prior period
Average Realized Natural Gas Price

$1.01

No prior period
Average Realized NGLs Price

$20.32

No prior period
Average Realized Combined Price

$46.36

No prior period
Production Taxes and Other

7.5%

No prior period
Depreciation, Depletion and Amortization

$23.95

No prior period
General and Administrative

$3.77

No prior period
Cash G&A

$1.98

No prior period
Interest Expense, Net

$6.36

No prior period
Net LOS Wells

44.1

No prior period
Net Spud Wells

25

No prior period
Net Permitted Wells

19.1

No prior period
Adjusted EBITDA

$152M

No prior period
Discretionary Cash Flow

$129M

No prior period
Capital Expenditures

$0.00

No prior period
Net Income

$29M

No prior period
Operating Income

$57.2M

No prior period
Gross Profit

$70.6M

No prior period

Revenue & EPS history

Sitio Royalties · Revenue · Quarterly

$169M

Q2 2024
Beat estimate in 2 of 2 quarters(100%)
ActualEstimate

Forward guidance

Sitio Royalties has updated its full-year 2024 financial and operational guidance, raising pro forma average daily production and lowering the midpoint of cash tax guidance.

Tailwinds

  • Pro forma average daily production guidance increased by 500 Boe/d at the midpoint, reflecting strong performance and recent acquisitions.
  • Full-year 2024 pro forma average daily production guidance range raised to 36,000 – 38,000 Boe/d.
  • Midpoint of full-year 2024 cash tax guidance lowered by $21.5 million, indicating improved tax efficiency.
  • Approximately 200 Boe/d of the production increase is attributed to recently closed 2Q 2024 acquisitions.
  • The company expects to benefit from an increase in its 2024 federal tax credit.

Headwinds

  • No specific negative forward guidance points were explicitly stated in the provided text.
  • The guidance is based on expectations at strip pricing, which can be volatile.
  • Future results may differ materially due to commodity price volatility and global economic uncertainty.
  • The company's performance is subject to risks related to geopolitical conflicts and voluntary production cuts by OPEC+.
  • The guidance assumes pro forma ownership of the DJ Basin Acquisition from January 1, 2024, which may not perfectly align with actual operational timelines.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 4 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+1.2%

Avg return

Earnings day

+3.8%

Avg return

5 days after

+3.3%

Avg return

30 days after

50%

3 / 6 earnings

Positive

+5.5%

Q1 2025

Best reaction

+0.0%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2025
Q2 2025+0.8%+1.8%
Q1 2025+5.5%+10.5%+17.2%
Q3 2024+0.8%+9.3%+7.9%
Q2 2024+0.0%+0.8%+2.2%
Q1 2024+0.0%+3.6%-6.1%
Q4 2022+0.0%-2.9%-4.9%
Q3 2022

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