NYSE$STR

Sitio Royalties Corp · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Sitio Royalties reported its fourth quarter and full year 2022 operational and financial results, recent developments, and provided full year 2023 guidance.

Sitio Royalties reported a record high average quarterly production volume of 18,925 Boe/d, with a pro forma average quarterly production volume of 34,424 Boe/d including Brigham Minerals volumes. The company declared a $0.60 dividend per share for Q4 2022 and closed its all-stock merger with Brigham Minerals in December 2022, significantly increasing its net royalty acres.

  • Record high average quarterly production volume of 18,925 Boe/d, up 5% sequentially.
  • Pro forma average daily production volume of 34,424 Boe/d, including Brigham Minerals volumes for the entire quarter.
  • Declared a $0.60 dividend per share of Class A Common Stock for Q4 2022, representing a 9.9% annualized yield.
  • Closed all-stock merger with Brigham Minerals in December 2022, increasing net royalty acres by 147% relative to year-end 2021.

Headline financials

Total Revenue

$99.9M

No prior period
EPS (adj)

$0.01

No prior period
Total Average Daily Production

18.9K

No prior period
Oil Average Daily Production

51

No prior period
Average Realized Oil Price

$81.84

No prior period
Average Realized Natural Gas Price

$4.33

No prior period
Average Realized NGLs Price

$26.44

No prior period
Average Realized Combined Price

$54.68

No prior period
Production Taxes and Other

7.9%

No prior period
Depreciation, Depletion and Amortization

$21.37

No prior period
General and Administrative

$10.44

No prior period
Cash G&A

$2.27

No prior period
Interest Expense, Net

$10.00

No prior period
Net LOS Wells

47.9

No prior period
Net Spud Wells

31.1

No prior period
Net Permitted Wells

16.8

No prior period
Adjusted EBITDA

$93.1M

No prior period
Discretionary Cash Flow

$77.5M

No prior period
Capital Expenditures

$1.54M

No prior period
Free Cash Flow

$134M

No prior period
Net Income

$4.59M

No prior period
Operating Income

$37M

No prior period
Cash & Equivalents

$18.8M

No prior period
Total Assets

$5.17B

No prior period

Revenue & EPS history

Sitio Royalties · Revenue · Quarterly

$99.9M

Q4 2022
Beat estimate in 2 of 2 quarters(100%)
ActualEstimate

Forward guidance

Sitio Royalties issued full year 2023 financial and operational guidance, increasing the midpoint of production guidance by approximately 6% to 35,500 Boe/d.

Tailwinds

  • Increased midpoint of production guidance by approximately 6% to 35,500 Boe/d.
  • Full year 2023 average daily production guidance range of 34,000 - 37,000 Boe/d.
  • Anticipated average daily production (% oil) between 49% and 51%.
  • Projected gathering and transportation costs between $1.25 and $1.75 per Boe.
  • Expected production taxes (% of royalty revenue) between 6% and 8%.

Headwinds

  • Cash G&A expected to be between $25.0 million and $27.0 million (annual).
  • Cash tax rate projected between 11% and 13% of pre-tax income.
  • Continued capital discipline by public E&P operators may act as a headwind.
  • Focus on lowering G&A expenses and reducing reliance on third-party vendors suggests areas for improvement.
  • Continued evaluation of additional mineral and royalty acquisitions with underwriting discipline given current market conditions.

Historical earnings impact

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

Avg. return before/after earnings

Based on 4 quarterly earnings reports

Historical avg

+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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