Sitio Royalties Reports Fourth Quarter and Full Year 2024 Results
Fourth quarter production up
Full year pro forma production exceeded high end of Company guidance(1)
Closed three acquisitions in late 2024 for aggregate cash consideration of approximately
Fourth quarter total return of capital of
Since Falcon merger closed in June 2022, cumulative return of capital to shareholders has exceeded
Company issues 2025 outlook including forecasted average daily production of 39.8 MBoe/d (18.5 MBbls/d oil) at the midpoint,
FOURTH QUARTER 2024 HIGHLIGHTS
-
Achieved record high production in the fourth quarter of 40.9 thousand barrels of oil equivalent per day (“MBoe/d”), up
6% quarter-over-quarter, attributable to strong performance across the Company's legacy assets as well as contributions from acquisitions -
Operators remained active across the Company's assets; 8.3 net wells were turned-in-line across Sitio's acreage, up
9% quarter-over-quarter; net line of sight (“LOS”) wells totaled 44.9 as of December 31, 2024 -
Closed three high return and cash flow accretive acquisitions for aggregate cash consideration of approximately
, which added approximately 3,300 net royalty acres ("NRAs"), primarily located in the$140 million Delaware Basin -
Net income of
and Adjusted EBITDA(3) of$19.3 million , up$141.2 million and$111.0 million (or$6.2 million 5% ), respectively, compared to fourth quarter 2023 -
Continued to return cash to shareholders and create value on a per share basis; Sitio to return
per share of Class A Common Stock for the fourth quarter, comprised of$0.49 per share cash dividend (payable March 28, 2025) and an equivalent$0.41 per share of common stock repurchases$0.08 -
Repurchased
of common stock in 2024;$118.1 million 3% reduction in total shares outstanding year-over-year; of authorized repurchases remaining as of December 31, 2024$81.9 million
"We delivered across the board in 2024 with stronger-than-expected results. Sitio’s fourth quarter production was up by more than
FOURTH QUARTER 2024 FINANCIAL RESULTS
Sitio's fourth quarter 2024 average unhedged realized prices including all expected quality, transportation and demand adjustments were
For the fourth quarter of 2024, consolidated net income was
As of December 31, 2024, the Company had
2025 OUTLOOK
The table below includes Sitio's financial and operational guidance for full year 2025 and reflects the Company's expectations for operator development activity on its acreage. Sitio does not forecast acquisitions; however, it expects to remain active on the M&A front given its robust deal pipeline.
Guidance Metric |
2024 Full Year Results |
2025 Full Year Guidance |
||
Production |
|
|
|
|
Average daily production (Boe/d) |
38,517 |
38,250 |
– |
41,250 |
Average daily oil production (Bbls/d) |
19,128 |
17,750 |
– |
19,250 |
|
|
|
|
|
Expenses and Taxes |
|
|
|
|
Cash G&A ($ in millions)(3) |
|
|
– |
|
Production taxes and other (% of royalty revenue) |
|
|
– |
|
Estimated cash taxes ($ in millions)(4) |
|
|
– |
|
RETURN OF CAPITAL FRAMEWORK
Sitio is committed to returning capital to shareholders while maintaining a balanced and durable capital structure. Since becoming public in 2022, Sitio's cumulative return of capital to shareholders has exceeded
Sitio’s Board of Directors declared a cash dividend of
CONFERENCE CALL INFORMATION
Sitio plans to host a conference call at 8:30 a.m. ET on Thursday, February 27, 2025. Participants can access the call by dialing 1-833-470-1428 in
(1) |
Includes production from the DJ Basin Acquisition as if it was owned on January 1, 2024 (transaction effective date of 10/1/23); the DJ Basin Acquisition is defined as the all-cash acquisition of approximately 13,000 NRAs in the DJ Basin from an undisclosed third party that closed on April 4, 2024. Refers to Company guidance issued on November 6, 2024. |
(2) |
Includes dividends declared with respect to 4Q24 (payable March 28, 2025). Market cap is based on Sitio's share price as of February 25, 2025 and share count as of February 24, 2025 |
(3) |
For definitions of non-GAAP financial measures and reconciliation to their most directly comparable GAAP financial measures, please see "Non-GAAP financial measures" |
(4) |
Estimated cash tax guidance range is based on expectations at NYMEX forward strip pricing on February 26, 2025 and for the assets owned on February 26, 2025. Note: 2024 estimated cash taxes reflect full utilization of a non-recurring Brigham merger overpayment credit carryforward |
OPERATOR ACTIVITY
The following table summarizes Sitio's net royalty acres, net average daily production and net LOS wells by basin as of December 31, 2024.
|
|
|
Midland |
|
DJ |
|
Eagle Ford |
|
Williston/Other |
|
Total |
|||||||
Net Royalty Acres (normalized to 1/8th royalty equivalent) |
|
|
|
|
|
|
|
|
|
|
|
|||||||
As of December 31, 2024 |
156,543 |
|
|
45,626 |
|
|
41,681 |
|
|
21,047 |
|
|
8,206 |
|
|
273,103 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net Average Daily Production (Boe/d) |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Three months ended December 31, 2024 |
20,570 |
|
|
8,353 |
|
|
6,619 |
|
|
4,540 |
|
|
792 |
|
|
40,874 |
|
|
% Oil |
47 |
% |
|
52 |
% |
|
42 |
% |
|
47 |
% |
|
54 |
% |
|
47 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net LOS Wells (normalized to 5,000' laterals) |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net spuds |
11.3 |
|
|
7.8 |
|
|
4.1 |
|
|
1.0 |
|
|
0.3 |
|
|
24.5 |
|
|
Net permits |
11.2 |
|
|
3.9 |
|
|
1.9 |
|
|
3.2 |
|
|
0.2 |
|
|
20.4 |
|
|
Net LOS wells as of December 31, 2024 |
22.5 |
|
|
11.7 |
|
|
6.0 |
|
|
4.2 |
|
|
0.5 |
|
|
44.9 |
|
PROVED RESERVES
The following tables set forth information regarding the Company’s net ownership interest in estimated quantities of proved developed and undeveloped oil and natural gas reserves and the changes therein for each of the periods presented. The reserves presented herein are based on a reserve report prepared by Sitio and audited by Cawley, Gillespie & Associates, Inc.
|
|
|
|
|
|
|
|
||||
|
Oil (MBbls) |
|
Natural Gas (MMcf) |
|
Natural Gas Liquids (MBbls) |
|
Total (MBOE) |
||||
Balance as of December 31, 2023 |
38,832 |
|
|
150,270 |
|
|
21,416 |
|
|
85,293 |
|
Revisions |
(1,270 |
) |
|
9,381 |
|
|
863 |
|
|
1,157 |
|
Extensions |
6,297 |
|
|
22,066 |
|
|
3,132 |
|
|
13,106 |
|
Acquisition of reserves |
5,209 |
|
|
41,587 |
|
|
6,131 |
|
|
18,271 |
|
Production |
(7,004 |
) |
|
(23,360 |
) |
|
(3,174 |
) |
|
(14,071 |
) |
Balance as of December 31, 2024 |
42,064 |
|
|
199,944 |
|
|
28,368 |
|
|
103,756 |
|
Proved developed and undeveloped reserves: |
Oil (MBbls) |
|
Natural Gas (MMcf) |
|
Natural Gas Liquids (MBbls) |
|
Total (MBOE) |
||||
Developed as of December 31, 2022 |
27,407 |
|
133,489 |
|
15,169 |
|
64,824 |
||||
Undeveloped as of December 31, 2022 |
7,650 |
|
25,953 |
|
3,190 |
|
15,165 |
||||
Balance at December 31, 2022 |
35,057 |
|
159,442 |
|
18,359 |
|
79,989 |
||||
|
|
|
|
|
|
|
|
||||
Developed as of December 31, 2023 |
30,537 |
|
127,170 |
|
18,167 |
|
69,899 |
||||
Undeveloped as of December 31, 2023 |
8,295 |
|
23,100 |
|
3,249 |
|
15,394 |
||||
Balance at December 31, 2023 |
38,832 |
|
150,270 |
|
21,416 |
|
85,293 |
||||
|
|
|
|
|
|
|
|
||||
Developed as of December 31, 2024 |
36,384 |
|
179,056 |
|
25,368 |
|
91,595 |
||||
Undeveloped as of December 31, 2024 |
5,680 |
|
20,888 |
|
3,000 |
|
12,161 |
||||
Balance at December 31, 2024 |
42,064 |
|
199,944 |
|
28,368 |
|
103,756 |
COMMODITY DERIVATIVE CONTRACTS
The following table summarizes Sitio's commodity derivative contracts as of December 31, 2024.
|
|
Oil (NYMEX WTI) |
|
|
|
1H25 |
|
Swaps |
|
|
|
Bbl per day |
|
|
1,100 |
Weighted Average Price per Bbl |
|
$ |
74.65 |
|
|
|
|
Collars |
|
|
|
Bbl per day |
|
|
2,000 |
Weighted Average Ceiling Price per Bbl |
|
$ |
93.20 |
Weighted Average Floor Price per Bbl |
|
$ |
60.00 |
|
|
|
|
|
|
Gas (NYMEX Henry Hub) |
|
|
|
1H25 |
|
Collars |
|
|
|
MMBtu per day |
|
|
11,600 |
Weighted Average Ceiling Price per MMBtu |
|
$ |
10.34 |
Weighted Average Floor Price per MMBtu |
|
$ |
3.31 |
FINANCIAL RESULTS
Production Data |
|||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
||||
Production Data: |
|
|
|
|
|
|
|
||||||||
Crude oil (MBbls) |
|
1,782 |
|
|
1,558 |
|
|
7,001 |
|
|
6,344 |
||||
Natural gas (MMcf) |
|
6,749 |
|
|
5,923 |
|
|
23,557 |
|
|
23,136 |
||||
NGLs (MBbls) |
|
854 |
|
|
746 |
|
|
3,170 |
|
|
2,742 |
||||
Total (MBOE)(6:1) |
|
3,761 |
|
|
3,291 |
|
|
14,097 |
|
|
12,942 |
||||
Average daily production (BOE/d)(6:1) |
|
40,874 |
|
|
35,776 |
|
|
38,517 |
|
|
35,457 |
||||
Average Realized Prices: |
|
|
|
|
|
|
|
||||||||
Crude oil (per Bbl) |
$ |
69.98 |
|
$ |
77.91 |
|
$ |
75.26 |
|
$ |
75.80 |
||||
Natural gas (per Mcf) |
$ |
1.42 |
|
$ |
1.40 |
|
$ |
1.02 |
|
$ |
1.77 |
||||
NGLs (per Bbl) |
$ |
18.09 |
|
$ |
18.72 |
|
$ |
18.99 |
|
$ |
19.21 |
||||
Combined (per BOE) |
$ |
39.82 |
|
$ |
43.65 |
|
$ |
43.35 |
|
$ |
44.39 |
||||
Average Realized Prices After Effects of Derivative Settlements: |
|
|
|
|
|
|
|
||||||||
Crude oil (per Bbl) |
$ |
72.09 |
|
$ |
80.68 |
|
$ |
76.46 |
|
$ |
78.62 |
||||
Natural gas (per Mcf) |
$ |
1.64 |
|
$ |
1.66 |
|
$ |
1.33 |
|
$ |
2.06 |
||||
NGLs (per Bbl) |
$ |
18.09 |
|
$ |
18.72 |
|
$ |
18.99 |
|
$ |
19.21 |
||||
Combined (per BOE) |
$ |
41.20 |
|
$ |
45.43 |
|
$ |
44.47 |
|
$ |
46.30 |
||||
Selected Expense Metrics |
|||||||
|
Three Months Ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Production taxes and other |
|
7.5 |
% |
|
|
9.8 |
% |
Depreciation, depletion and amortization ($/Boe) |
$ |
21.38 |
|
|
$ |
20.85 |
|
General and administrative ($/Boe) |
$ |
3.69 |
|
|
$ |
3.60 |
|
Cash G&A ($/Boe) (3) |
$ |
1.90 |
|
|
$ |
1.95 |
|
Interest expense, net ($/Boe) |
$ |
5.73 |
|
|
$ |
6.59 |
|
Consolidated Balance Sheets (In thousands, except par and share amounts) |
|||||||
|
December 31,
|
|
December 31,
|
||||
ASSETS |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
3,290 |
|
|
$ |
15,195 |
|
Accrued revenue and accounts receivable |
|
123,361 |
|
|
|
107,347 |
|
Prepaid assets |
|
6,760 |
|
|
|
12,362 |
|
Derivative asset |
|
1,811 |
|
|
|
19,080 |
|
Total current assets |
|
135,222 |
|
|
|
153,984 |
|
|
|
|
|
||||
Property and equipment |
|
|
|
||||
Oil and natural gas properties, successful efforts method: |
|
|
|
||||
Unproved properties |
|
2,464,836 |
|
|
|
2,698,991 |
|
Proved properties |
|
2,941,347 |
|
|
|
2,377,196 |
|
Other property and equipment |
|
3,737 |
|
|
|
3,711 |
|
Accumulated depreciation, depletion, amortization, and impairment |
|
(818,633 |
) |
|
|
(498,531 |
) |
Total property and equipment, net |
|
4,591,287 |
|
|
|
4,581,367 |
|
|
|
|
|
||||
Long-term assets |
|
|
|
||||
Long-term derivative asset |
|
— |
|
|
|
3,440 |
|
Deferred financing costs |
|
8,525 |
|
|
|
11,205 |
|
Operating lease right-of-use asset |
|
5,940 |
|
|
|
5,970 |
|
Other long-term assets |
|
2,746 |
|
|
|
2,835 |
|
Total long-term assets |
|
17,211 |
|
|
|
23,450 |
|
|
|
|
|
||||
TOTAL ASSETS |
$ |
4,743,720 |
|
|
$ |
4,758,801 |
|
|
|
|
|
||||
LIABILITIES AND EQUITY |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable and accrued expenses |
$ |
46,385 |
|
|
$ |
30,050 |
|
Operating lease liability |
|
1,646 |
|
|
|
1,725 |
|
Total current liabilities |
|
48,031 |
|
|
|
31,775 |
|
|
|
|
|
||||
Long-term liabilities |
|
|
|
||||
Long-term debt |
|
1,078,181 |
|
|
|
865,338 |
|
Deferred tax liability |
|
253,778 |
|
|
|
259,870 |
|
Non-current operating lease liability |
|
5,462 |
|
|
|
5,394 |
|
Other long-term liabilities |
|
1,150 |
|
|
|
1,150 |
|
Total long-term liabilities |
|
1,338,571 |
|
|
|
1,131,752 |
|
|
|
|
|
||||
Total liabilities |
|
1,386,602 |
|
|
|
1,163,527 |
|
|
|
|
|
||||
Equity |
|
|
|
||||
Class A Common Stock, par value |
|
8 |
|
|
|
8 |
|
Class C Common Stock, par value |
|
8 |
|
|
|
8 |
|
Additional paid-in capital |
|
1,710,372 |
|
|
|
1,796,147 |
|
Accumulated deficit |
|
(146,792 |
) |
|
|
(187,738 |
) |
Class A Treasury Shares, 4,224,814 and 0 shares at December 31, 2024 and December 31, 2023, respectively |
|
(96,910 |
) |
|
|
— |
|
Class C Treasury Shares, 52,748 and 26,137 shares at December 31, 2024 and December 31, 2023, respectively |
|
(1,265 |
) |
|
|
(677 |
) |
Noncontrolling interest |
|
1,891,697 |
|
|
|
1,987,526 |
|
Total equity |
|
3,357,118 |
|
|
|
3,595,274 |
|
|
|
|
|
||||
TOTAL LIABILITIES AND EQUITY |
$ |
4,743,720 |
|
|
$ |
4,758,801 |
|
Consolidated Statements of Operations (In thousands, except per share amounts) |
||||||||||||
|
|
Years Ended December 31, |
||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenues: |
|
|
|
|
|
|
||||||
Oil, natural gas and natural gas liquids revenues |
|
$ |
611,070 |
|
|
$ |
574,542 |
|
|
$ |
355,430 |
|
Lease bonus and other income |
|
|
13,344 |
|
|
|
18,814 |
|
|
|
14,182 |
|
Total revenues |
|
|
624,414 |
|
|
|
593,356 |
|
|
|
369,612 |
|
|
|
|
|
|
|
|
||||||
Operating expenses: |
|
|
|
|
|
|
||||||
Management fees to affiliates |
|
|
— |
|
|
|
— |
|
|
|
3,241 |
|
Depreciation, depletion and amortization |
|
|
320,297 |
|
|
|
291,320 |
|
|
|
104,511 |
|
General and administrative |
|
|
54,725 |
|
|
|
49,620 |
|
|
|
42,299 |
|
Production taxes and other |
|
|
46,383 |
|
|
|
46,939 |
|
|
|
25,572 |
|
Impairment of oil and gas properties |
|
|
— |
|
|
|
25,617 |
|
|
|
— |
|
Loss on sale of oil and gas properties |
|
|
— |
|
|
|
144,471 |
|
|
|
— |
|
Total operating expenses |
|
|
421,405 |
|
|
|
557,967 |
|
|
|
175,623 |
|
|
|
|
|
|
|
|
||||||
Net income from operations |
|
|
203,009 |
|
|
|
35,389 |
|
|
|
193,989 |
|
|
|
|
|
|
|
|
||||||
Other income (expense): |
|
|
|
|
|
|
||||||
Interest expense, net |
|
|
(85,240 |
) |
|
|
(93,413 |
) |
|
|
(35,499 |
) |
Change in fair value of warrant liability |
|
|
— |
|
|
|
2,950 |
|
|
|
3,662 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
(21,566 |
) |
|
|
(11,487 |
) |
Commodity derivatives gains (losses) |
|
|
(4,905 |
) |
|
|
15,199 |
|
|
|
39,037 |
|
Interest rate derivatives gains |
|
|
— |
|
|
|
462 |
|
|
|
110 |
|
Net income (loss) before taxes |
|
|
112,864 |
|
|
|
(60,979 |
) |
|
|
189,812 |
|
|
|
|
|
|
|
|
||||||
Income tax benefit (expense) |
|
|
(17,935 |
) |
|
|
14,284 |
|
|
|
(5,681 |
) |
|
|
|
|
|
|
|
||||||
Net income (loss) |
|
|
94,929 |
|
|
|
(46,695 |
) |
|
|
184,131 |
|
Net income attributable to Predecessor |
|
|
— |
|
|
|
— |
|
|
|
(78,104 |
) |
Net income attributable to temporary equity |
|
|
— |
|
|
|
— |
|
|
|
(90,377 |
) |
Net (income) loss attributable to noncontrolling interest |
|
|
(53,983 |
) |
|
|
31,159 |
|
|
|
51 |
|
Net income (loss) attributable to Class A stockholders |
|
$ |
40,946 |
|
|
$ |
(15,536 |
) |
|
$ |
15,701 |
|
|
|
|
|
|
|
|
||||||
Net income (loss) per share of Class A Common Stock |
|
|
|
|
|
|
||||||
Basic |
|
$ |
0.49 |
|
|
$ |
(0.20 |
) |
|
$ |
1.10 |
|
Diluted |
|
$ |
0.49 |
|
|
$ |
(0.20 |
) |
|
$ |
1.10 |
|
|
|
|
|
|
|
|
||||||
Weighted average Class A Common Stock outstanding |
|
|
|
|
|
|
||||||
Basic |
|
|
80,621 |
|
|
|
81,269 |
|
|
|
13,723 |
|
Diluted |
|
|
80,856 |
|
|
|
81,269 |
|
|
|
13,723 |
|
Consolidated Statements of Cash Flows (In thousands) |
|||||||||||
|
Years Ended December 31, |
||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2022 |
|
Cash flows from operating activities: |
|
|
|
|
|
||||||
Net income (loss) |
$ |
94,929 |
|
|
$ |
(46,695 |
) |
|
$ |
184,131 |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
||||||
Depreciation, depletion and amortization |
|
320,297 |
|
|
|
291,320 |
|
|
|
104,511 |
|
Amortization of deferred financing costs and long-term debt discount |
|
5,259 |
|
|
|
5,534 |
|
|
|
6,546 |
|
Share-based compensation |
|
23,836 |
|
|
|
18,867 |
|
|
|
9,250 |
|
Change in fair value of warrant liability |
|
— |
|
|
|
(2,950 |
) |
|
|
(3,662 |
) |
Loss on extinguishment of debt |
|
— |
|
|
|
21,566 |
|
|
|
11,487 |
|
Impairment of oil and gas properties |
|
— |
|
|
|
25,617 |
|
|
|
— |
|
Commodity derivative (gains) losses |
|
4,905 |
|
|
|
(15,199 |
) |
|
|
(39,037 |
) |
Net cash received for commodity derivative settlements |
|
15,803 |
|
|
|
24,613 |
|
|
|
7,104 |
|
Interest rate derivative gains |
|
— |
|
|
|
(462 |
) |
|
|
(110 |
) |
Net cash received (paid) for interest rate derivative settlements |
|
— |
|
|
|
781 |
|
|
|
(209 |
) |
Loss on sale of oil and gas properties |
|
— |
|
|
|
144,471 |
|
|
|
— |
|
Deferred tax (benefit) expense |
|
(6,702 |
) |
|
|
(42,946 |
) |
|
|
1,631 |
|
Change in operating assets and liabilities: |
|
|
|
|
|
||||||
Accrued revenue and accounts receivable |
|
(16,014 |
) |
|
|
33,564 |
|
|
|
(25,313 |
) |
Prepaid assets |
|
5,666 |
|
|
|
19,550 |
|
|
|
(616 |
) |
Other long-term assets |
|
2 |
|
|
|
2,089 |
|
|
|
(3,652 |
) |
Accounts payable and accrued expenses |
|
14,231 |
|
|
|
8,810 |
|
|
|
(88,558 |
) |
Due to affiliates |
|
— |
|
|
|
— |
|
|
|
(380 |
) |
Operating lease liabilities and other long-term liabilities |
|
216 |
|
|
|
(1,030 |
) |
|
|
1,837 |
|
Net cash provided by operating activities |
|
462,428 |
|
|
|
487,500 |
|
|
|
164,960 |
|
|
|
|
|
|
|
||||||
Cash flows from investing activities: |
|
|
|
|
|
||||||
Acquisition of Falcon, net of cash |
|
— |
|
|
|
— |
|
|
|
4,484 |
|
Acquisition of Brigham, net of cash |
|
— |
|
|
|
— |
|
|
|
11,054 |
|
Predecessor cash not contributed in the Falcon Merger |
|
— |
|
|
|
— |
|
|
|
(15,228 |
) |
Purchases of oil and gas properties, net of post-close adjustments |
|
(329,885 |
) |
|
|
(170,545 |
) |
|
|
(557,569 |
) |
Proceeds from sale of oil and gas properties |
|
— |
|
|
|
113,298 |
|
|
|
— |
|
Other, net |
|
(74 |
) |
|
|
(2,479 |
) |
|
|
(840 |
) |
Net cash used in investing activities |
|
(329,959 |
) |
|
|
(59,726 |
) |
|
|
(558,099 |
) |
|
|
|
|
|
|
||||||
Cash flows from financing activities: |
|
|
|
|
|
||||||
Borrowings on credit facilities |
|
474,400 |
|
|
|
644,500 |
|
|
|
348,895 |
|
Repayments on credit facilities |
|
(263,600 |
) |
|
|
(877,500 |
) |
|
|
(209,000 |
) |
Issuance of 2026 Senior Notes |
|
— |
|
|
|
— |
|
|
|
444,500 |
|
Repayments on 2026 Senior Notes |
|
— |
|
|
|
(438,750 |
) |
|
|
(11,250 |
) |
Issuance of 2028 Senior Notes |
|
— |
|
|
|
600,000 |
|
|
|
— |
|
Borrowings on Bridge Loan Facility |
|
— |
|
|
|
— |
|
|
|
425,000 |
|
Repayments on Bridge Loan Facility |
|
— |
|
|
|
— |
|
|
|
(425,000 |
) |
Debt issuance costs |
|
(598 |
) |
|
|
(22,060 |
) |
|
|
(24,889 |
) |
Debt extinguishment costs |
|
— |
|
|
|
(12,176 |
) |
|
|
— |
|
Distributions paid to Temporary Equity |
|
— |
|
|
|
— |
|
|
|
(115,375 |
) |
Distributions to noncontrolling interest |
|
(112,421 |
) |
|
|
(158,968 |
) |
|
|
(13,318 |
) |
Dividends paid to Class A stockholders |
|
(121,272 |
) |
|
|
(161,951 |
) |
|
|
(18,165 |
) |
Dividend equivalent rights paid |
|
(1,165 |
) |
|
|
(1,048 |
) |
|
|
(579 |
) |
Repurchases of Class A Common Stock |
|
(95,216 |
) |
|
|
— |
|
|
|
— |
|
Repurchases of Sitio OpCo Partnership Units (including associated Class C Common Shares) |
|
(22,141 |
) |
|
|
— |
|
|
|
— |
|
Cash paid for taxes related to net settlement of share-based compensation awards |
|
(2,361 |
) |
|
|
(3,444 |
) |
|
|
— |
|
Deferred initial public offering costs |
|
— |
|
|
|
— |
|
|
|
(61 |
) |
Other |
|
— |
|
|
|
— |
|
|
|
(1,180 |
) |
Net cash (used in) provided by financing activities |
|
(144,374 |
) |
|
|
(431,397 |
) |
|
|
399,578 |
|
|
|
|
|
|
|
||||||
Net change in cash and cash equivalents |
|
(11,905 |
) |
|
|
(3,623 |
) |
|
|
6,439 |
|
Cash and cash equivalents, beginning of period |
|
15,195 |
|
|
|
18,818 |
|
|
|
12,379 |
|
Cash and cash equivalents, end of period |
$ |
3,290 |
|
|
$ |
15,195 |
|
|
$ |
18,818 |
|
|
|
|
|
|
|
||||||
Supplemental disclosure of non-cash transactions: |
|
|
|
|
|
||||||
Increase (decrease) in current liabilities for additions to property and equipment: |
$ |
343 |
|
|
$ |
(12 |
) |
|
$ |
(379 |
) |
Oil and gas properties acquired through issuance of Class C Common Stock and common units in consolidated subsidiary: |
|
— |
|
|
|
70,740 |
|
|
|
3,348,216 |
|
Temporary equity cumulative adjustment to redemption value: |
|
— |
|
|
|
— |
|
|
|
706,940 |
|
|
|
|
|
|
|
||||||
Supplemental disclosure of cash flow information: |
|
|
|
|
|
||||||
Cash paid for income taxes: |
$ |
3,135 |
|
|
$ |
9,276 |
|
|
$ |
1,866 |
|
Cash paid for interest expense: |
|
83,074 |
|
|
|
77,310 |
|
|
|
29,030 |
|
Non-GAAP financial measures
Adjusted EBITDA, 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 and/or share repurchases 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 (loss) plus (a) interest expense, (b) provisions for income 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) management fee to affiliates (i) loss on debt extinguishment, (j) merger-related transaction costs (k) write off of financing costs and (l) loss on sale of oil and gas properties.
We define Discretionary Cash Flow for the three months ended December 31, 2024 as Adjusted EBITDA, less cash and accrued interest expense and estimated cash taxes.
We define Discretionary Cash Flow for the three months ended December 31, 2023 as Adjusted EBITDA, less cash and accrued interest expense and cash taxes. We revised our definition of Discretionary Cash Flow following this period to reflect our anticipated accrual of taxes period-to-period due to the runoff of tax credits associated with the Brigham merger.
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.
Merger-related transaction costs for the three and twelve months ended December 31, 2023 have been recast to conform to the current period presentation.
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, Discretionary Cash Flow and Cash G&A may differ from computations of similarly titled measures of other companies.
This release does not include a reconciliation for 2025E Cash G&A because certain elements of the comparable GAAP financial measures are not predictable in this situation, making it impractical for the Company to forecast.
The following table presents a reconciliation of Adjusted EBITDA to the most directly comparable GAAP financial measure for the period indicated (in thousands).
|
Three Months Ended
|
||||||
|
|
2024 |
|
|
2023 |
|
|
Net income (loss) |
$ |
19,329 |
|
$ |
(91,716 |
) |
|
Interest expense, net |
|
21,531 |
|
|
21,678 |
|
|
Income tax (benefit) expense |
|
6,202 |
|
|
(21,168 |
) |
|
Depreciation, depletion and amortization |
|
80,401 |
|
|
68,602 |
|
|
Loss on sale of oil and gas properties |
|
— |
|
|
144,471 |
|
|
EBITDA |
$ |
127,463 |
|
$ |
121,867 |
|
|
Non-cash share-based compensation expense |
|
6,278 |
|
|
4,393 |
|
|
Losses (gains) on unsettled derivative instruments |
|
7,254 |
|
|
(12,194 |
) |
|
Loss on debt extinguishment |
|
— |
|
|
20,096 |
|
|
Merger-related transaction costs |
|
254 |
|
|
875 |
|
|
Adjusted EBITDA |
$ |
141,249 |
|
$ |
135,037 |
|
|
The following table presents a reconciliation of Discretionary Cash Flow to the most directly comparable GAAP financial measure for the period indicated (in thousands).
|
Three Months Ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash flow from operations |
$ |
105,698 |
|
|
$ |
132,682 |
|
Interest expense, net |
|
21,531 |
|
|
|
21,678 |
|
Income tax (benefit) expense |
|
6,202 |
|
|
|
(21,168 |
) |
Deferred tax benefit |
|
(5,282 |
) |
|
|
27,839 |
|
Changes in operating assets and liabilities |
|
14,180 |
|
|
|
(25,610 |
) |
Amortization of deferred financing costs and long-term debt discount |
|
(1,334 |
) |
|
|
(1,259 |
) |
Merger-related transaction costs |
|
254 |
|
|
|
875 |
|
Adjusted EBITDA |
$ |
141,249 |
|
|
$ |
135,037 |
|
Less: |
|
|
|
||||
Cash and accrued interest expense |
|
20,196 |
|
|
|
19,628 |
|
Estimated cash taxes |
|
4,181 |
|
|
|
8 |
|
Discretionary Cash Flow |
$ |
116,872 |
|
|
$ |
115,401 |
|
The following tables present a reconciliation of Cash G&A to the most directly comparable GAAP financial measure for the periods indicated (in thousands).
|
Three Months Ended
|
||||||
|
|
2024 |
|
|
2023 |
||
General and administrative expense |
$ |
13,876 |
|
$ |
11,834 |
||
Less: |
|
|
|
||||
Non-cash share-based compensation expense |
|
6,278 |
|
|
4,393 |
||
Merger-related transaction costs |
|
254 |
|
|
875 | ||
Rental income |
|
185 |
|
|
135 |
||
Cash G&A |
$ |
7,159 |
|
$ |
6,431 |
|
Year Ended December 31, |
||||||
|
|
2024 |
|
|
2023 |
||
General and administrative expense |
$ |
54,725 |
|
$ |
49,620 |
||
Less: |
|
|
|
||||
Non-cash share-based compensation expense |
|
23,836 |
|
|
18,867 |
||
Merger-related transaction costs |
|
710 |
|
|
3,970 |
||
Rental income |
|
680 |
|
|
512 |
||
Cash G&A |
$ |
29,499 |
|
$ |
26,271 |
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 270,000 NRAs through the consummation of over 200 acquisitions, as of December 31, 2024. 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 and its 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 and market volatility related to changes in
View source version on businesswire.com: https://www.businesswire.com/news/home/20250226878178/en/
IR contact:
Alyssa Stephens
(281) 407-5204
IR@sitio.com
Source: Sitio Royalties Corp.