Sitio Royalties Reports Second Quarter 2024 Operational and Financial Results
Sitio Royalties (NYSE: STR) announced its Q2 2024 results with a record high average daily production of 39,231 Boe/d (50% oil), an 11% increase from Q1 2024.
The company declared a return of capital of $0.71 per share, comprising a $0.30 cash dividend and $0.41 in stock repurchases. Net income rose to $29 million, a 55% increase from Q1 2024, driven by higher revenues and lower derivative losses. Adjusted EBITDA increased by 12% to $151.6 million.
Sitio also updated its 2024 full-year production guidance to 36,000-38,000 Boe/d, up from 35,000-38,000 Boe/d. The midpoint of cash tax guidance was reduced by $21.5 million. Six acquisitions worth $38.5 million were closed in Q2 2024, adding 2,110 NRAs, primarily in the Permian and DJ Basins.
The company repurchased 2.6 million shares at an average price of $24.50 per share. As of June 30, 2024, Sitio had $1.06 billion in total debt and $406.3 million in liquidity.
Sitio Royalties (NYSE: STR) ha annunciato i risultati del secondo trimestre 2024 con una produzione media giornaliera record di 39.231 Boe/d (50% petrolio), con un aumento dell'11% rispetto al primo trimestre 2024.
L'azienda ha dichiarato un ritorno di capitale di $0,71 per azione, di cui $0,30 come dividendo in contante e $0,41 in riacquisti di azioni. L'utile netto è salito a $29 milioni, con un aumento del 55% rispetto al primo trimestre 2024, sostenuto da ricavi più elevati e minori perdite derivanti da derivati. L'EBITDA rettificato è aumentato del 12% a $151,6 milioni.
Sitio ha anche aggiornato la propria guida di produzione per l'intero anno 2024 a 36.000-38.000 Boe/d, rispetto ai 35.000-38.000 Boe/d precedenti. Il punto medio della guida fiscale in contante è stato ridotto di $21,5 milioni. Sei acquisizioni per un valore totale di $38,5 milioni sono state completate nel secondo trimestre 2024, aggiungendo 2.110 NRA, principalmente nei bacini Permiano e DJ.
L'azienda ha riacquistato 2,6 milioni di azioni a un prezzo medio di $24,50 per azione. Al 30 giugno 2024, Sitio aveva un debito totale di $1,06 miliardi e una liquidità di $406,3 milioni.
Sitio Royalties (NYSE: STR) anunció sus resultados del segundo trimestre de 2024 con una producción diaria promedio récord de 39,231 Boe/d (50% petróleo), un aumento del 11% con respecto al primer trimestre de 2024.
La compañía declaró un retorno de capital de $0.71 por acción, que comprende un dividendo en efectivo de $0.30 y $0.41 en recompra de acciones. El ingreso neto aumentó a $29 millones, un incremento del 55% en comparación con el primer trimestre de 2024, impulsado por mayores ingresos y menores pérdidas por derivados. El EBITDA ajustado creció un 12% hasta $151.6 millones.
Sitio también actualizó su guía de producción para todo el año 2024 a 36,000-38,000 Boe/d, desde 35,000-38,000 Boe/d. El punto medio de la guía de impuestos en efectivo se redujo en $21.5 millones. Se cerraron seis adquisiciones por un total de $38.5 millones en el segundo trimestre de 2024, añadiendo 2,110 NRA, principalmente en las cuencas Permiana y DJ.
La compañía recompró 2.6 millones de acciones a un precio promedio de $24.50 por acción. Al 30 de junio de 2024, Sitio tenía $1.06 mil millones en deuda total y $406.3 millones en liquidez.
시티오 로열티 (NYSE: STR)는 2024년 2분기 실적을 발표하며 하루 평균 생산량이 39,231 Boe/d (석유 50%)로 기록적인 수치를 기록했다고 전했습니다. 이는 2024년 1분기 대비 11% 증가한 수치입니다.
회사는 주당 $0.71의 자본 환급을 선언했으며, 이는 $0.30의 현금 배당금과 $0.41의 자사주 매입으로 이루어졌습니다. 순이익은 $2900만으로 2024년 1분기 대비 55% 증가했으며, 이는 증가한 수익과 낮아진 파생상품 손실에 기인합니다. 조정된 EBITDA는 12% 증가하여 $1억 5160만에 달했습니다.
시티오는 또한 2024년 연간 생산 가이드를 36,000-38,000 Boe/d로 업데이트했으며, 이는 35,000-38,000 Boe/d에서 상승한 것입니다. 현금 세금 가이드는 $2150만 감소했습니다. 2024년 2분기에는 3850만 달러에 달하는 여섯 개의 인수합병이 완료되었으며, 주로 퍼미안과 DJ 분지에서 2,110 NRA를 추가했습니다.
회사는 주당 평균 가격 $24.50로 260만 주를 재매입했습니다. 2024년 6월 30일 기준, 시티오는 총 $10억 6천만의 부채와 $4억 630만의 유동성을 보유하고 있습니다.
Sitio Royalties (NYSE: STR) a annoncé ses résultats pour le deuxième trimestre 2024 avec une production quotidienne moyenne record de 39 231 Boe/d (50% pétrole), soit une augmentation de 11% par rapport au premier trimestre 2024.
L'entreprise a déclaré un retour de capital de 0,71 $ par action, comprenant un dividende en espèces de 0,30 $ et 0,41 $ en rachats d'actions. Le bénéfice net a augmenté pour atteindre 29 millions $, soit une hausse de 55% par rapport au premier trimestre 2024, soutenu par des revenus plus élevés et des pertes dérivées inférieures. L'EBITDA ajusté a augmenté de 12% pour atteindre 151,6 millions $.
Sitio a également mis à jour ses prévisions de production pour l'année 2024 à 36 000-38 000 Boe/d, contre 35 000-38 000 Boe/d précédemment. Le point médian de la prévision fiscale en espèces a été réduit de 21,5 millions $. Six acquisitions d'une valeur de 38,5 millions $ ont été finalisées au deuxième trimestre 2024, ajoutant 2 110 NRA, principalement dans les bassins Permien et DJ.
L'entreprise a racheté 2,6 millions d'actions à un prix moyen de 24,50 $ par action. Au 30 juin 2024, Sitio avait 1,06 milliard $ de dettes et 406,3 millions $ de liquidités.
Sitio Royalties (NYSE: STR) gab seine Ergebnisse für Q2 2024 bekannt, darunter eine Rekordproduktion von durchschnittlich 39.231 Boe/d (50% Öl), was einem Anstieg von 11% im Vergleich zu Q1 2024 entspricht.
Das Unternehmen erklärte eine Kapitalrückzahlung von 0,71 $ pro Aktie, die sich aus einer Bar-Dividende von 0,30 $ und 0,41 $ aus Aktienrückkäufen zusammensetzt. Der Nettogewinn stieg auf 29 Millionen $ und damit um 55% im Vergleich zu Q1 2024, was auf höhere Einnahmen und geringere derivative Verluste zurückzuführen ist. Das bereinigte EBITDA stieg um 12% auf 151,6 Millionen $.
Darüber hinaus aktualisierte Sitio seine Produktionsprognose für das gesamte Jahr 2024 auf 36.000-38.000 Boe/d, im Vergleich zu zuvor 35.000-38.000 Boe/d. Der Mittelwert der Cash-Steuerprognose wurde um 21,5 Millionen $ gesenkt. Im zweiten Quartal 2024 wurden sechs Akquisitionen im Wert von 38,5 Millionen $ abgeschlossen, wodurch 2.110 NRA hinzukamen, hauptsächlich in den Becken Permian und DJ.
Das Unternehmen hat 2,6 Millionen Aktien zu einem Durchschnittspreis von 24,50 $ pro Aktie zurückgekauft. Zum 30. Juni 2024 hatte Sitio insgesamt 1,06 Milliarden $ Schulden und 406,3 Millionen $ Liquidität.
- Record high average daily production of 39,231 Boe/d, up 11% from Q1 2024.
- Net income rose to $29 million, up 55% from Q1 2024.
- Adjusted EBITDA increased by 12% to $151.6 million.
- Return of capital per share increased by 45% relative to Q1 2024.
- Updated 2024 production guidance to 36,000-38,000 Boe/d.
- Reduced cash tax guidance by $21.5 million.
- Closed six acquisitions worth $38.5 million, adding 2,110 NRAs.
- Increased depreciation, depletion, and amortization expenses by $9.2 million.
- Higher interest expense of $4.2 million.
- Increased income tax expense by $2.1 million.
- Total debt increased to $1.06 billion.
RECORD HIGH AVERAGE DAILY PRODUCTION VOLUME OF 39,231 BOE/D (
RETURN OF CAPITAL OF
RAISES FULL YEAR 2024 PRO FORMA PRODUCTION GUIDANCE TO 36,000 – 38,000 BOE/D(1) AND LOWERS MIDPOINT OF FULL YEAR 2024 CASH TAX GUIDANCE BY
INCLUDING PREVIOUSLY ANNOUNCED DJ BASIN ACQUISITION(2), CLOSED 7 ACQUISITIONS DURING SECOND QUARTER 2024, ADDING 14,996 NRAS ACROSS THE DJ,
SECOND QUARTER 2024 OPERATIONAL, FINANCIAL AND ACQUISITION HIGHLIGHTS
-
Average daily production volume of 39,231 barrels of oil equivalent per day (“Boe/d”) (
50% oil), an all-time high, up11% relative to 1Q 2024 average daily production volume of 35,349 Boe/d (52% oil) and up3% relative to pro forma 1Q 2024 average daily production volume of 37,970 Boe/d (51% oil)(1) -
Return of capital of
$0.71 $0.30 $0.41 $0.22 45% relative to 1Q 2024 of$0.49 -
Repurchased an aggregate 2.6 million shares of Class A Common Stock and OpCo Units at an average price of
$24.50 -
In addition to the previously announced DJ Basin Acquisition(2), closed 6 acquisitions in 2Q 2024 for approximately
$38.5 million 61% Permian Basin and39% DJ Basin). The 6 2Q 2024 acquisitions are expected to contribute an estimated 200 Boe/d to full year 2024 production -
Including assets acquired in 2Q 2024, estimated 8.5 net wells turned-in-line ("TIL") during the quarter, of which approximately
80% were in the Permian Basin and13% in the DJ Basin; estimated 8.0 net wells TIL on legacy Sitio and DJ Basin Acquisition assets -
Net income of
$29.0 million 55% relative to 1Q 2024 net income of$18.7 million $17.5 million $9.4 million $15.4 million -
Adjusted EBITDA(3) of
$151.6 million 12% relative to 1Q 2024 Adjusted EBITDA(3) of$135.1 million 6% relative to 1Q 2024 Pro Forma Adjusted EBITDA of$143.7 million
2Q 2024 AND PRO FORMA 1H 2024 RESULTS RELATIVE TO 2024 GUIDANCE
The table below shows second quarter 2024 and pro forma first half 2024 results relative to financial and operational guidance for 2024 that was issued on February 28, 2024.
2024 Guidance Metric |
2Q 2024
|
|
1H 2024
|
|
Prior 2024 Full Year
|
|||||
Average daily production (Boe/d) |
39,231 |
|
|
38,601 |
|
35,000 – 38,000 |
||||
Oil % |
|
50 |
% |
|
50 |
% |
|
|||
|
|
|
|
|
|
|||||
Cash G&A ($ in millions) |
$ |
7.1 |
|
$ |
14.8 |
|
|
|||
Production taxes (% of royalty revenue) |
|
7.5 |
% |
|
7.8 |
% |
|
|||
Estimated cash taxes ($ in millions)(7) |
$ |
0.9 |
|
$ |
9.3 |
|
|
|||
Chris Conoscenti, Chief Executive Officer of Sitio, commented, "Our strong second quarter results are a reflection of flush production from recently completed wells on our legacy assets combined with production volumes contributed from our disciplined acquisition program. Our team continued to allocate capital towards acquisitions of high quality mineral rights with the greatest potential to generate attractive returns for our shareholders diversified across multiple basins and operators. In addition to our previously announced DJ Basin Acquisition, we closed on the acquisition of 2,110 NRAs in the Permian and DJ Basins from 6 separate transactions for approximately
(1) |
Includes production from the DJ Basin Acquisition as if it was owned on January 1, 2024 |
|
(2) |
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 |
|
(3) |
For definitions of non-GAAP financial measures and reconciliations to their most directly comparable GAAP financial measures, please see “Non-GAAP financial measures” |
|
(4) |
Includes DJ Basin Acquisition EBITDA as if it was owned on January 1, 2024 |
|
(5) |
Includes production from the DJ Basin Acquisition in 1Q 2024 as if it was owned on January 1, 2024 |
|
(6) |
Prior 2024 full year guidance issued on February 28, 2024 |
|
(7) |
Cash tax guidance range is based on expectations at strip pricing when guidance was issued; Estimated cash taxes for 1H 2024 Pro Forma Results represents the estimated cash taxes used in the calculation of Discretionary Cash Flow(3) and is not pro forma for the DJ Basin Acquisition for 1H 2024 |
UPDATED 2024 FULL YEAR FINANCIAL AND OPERATIONAL GUIDANCE
The table below includes Sitio's updated guidance for full year 2024 and includes impacts from the DJ Basin Acquisition as if the transaction had closed on January 1, 2024 for pro forma average daily production. Pro forma average daily production guidance includes an increase of 500 Boe/d at the midpoint, of which approximately 200 Boe/d is related to volumes from the 6 2Q 2024 previously unannounced acquisitions and the remainder is attributed to Sitio's legacy assets and the DJ Basin Acquisition. The midpoint of 2024 guidance for cash taxes decreased by
|
|
February 28, 2024 |
|
August 7, 2024 |
||||||||||||||||
Full Year 2024 Guidance |
|
Low |
|
High |
|
Low |
|
High |
|
Change at
|
||||||||||
Pro Forma Average Daily Production(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Pro forma average daily production (Boe/d)(1) |
|
|
35,000 |
|
|
|
38,000 |
|
|
|
36,000 |
|
|
|
38,000 |
|
|
|
500 |
|
Pro forma average daily production (% oil)(1) |
|
|
49 |
% |
|
|
51 |
% |
|
|
49 |
% |
|
|
51 |
% |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Expenses and Taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash G&A ($ in millions) |
|
$ |
31.5 |
|
|
$ |
33.5 |
|
|
$ |
31.5 |
|
|
$ |
33.5 |
|
|
|
- |
|
Production taxes (% of royalty revenue) |
|
|
7.5 |
% |
|
|
9.5 |
% |
|
|
7.5 |
% |
|
|
9.5 |
% |
|
|
- |
|
Cash taxes ($ in millions)(7) |
|
$ |
30.0 |
|
|
$ |
37.0 |
|
|
$ |
9.0 |
|
|
$ |
15.0 |
|
|
$ |
(21.5 |
) |
(1) |
Includes production from the DJ Basin Acquisition as if it was owned on January 1, 2024 |
|
(7) |
Cash tax guidance range is based on expectations at strip pricing when guidance was issued |
OPERATOR ACTIVITY
The following table summarizes Sitio's net average daily production, net line-of-sight ("LOS") wells and net royalty acres by area. Pro forma NRAs assume that Sitio owned the DJ Basin Acquisition assets as of March 31, 2024.
|
|
|
Midland |
|
DJ |
|
Eagle
|
|
Williston/Other |
|
Total |
|||||||
Average Daily Production (Boe/d)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
As reported |
20,991 |
|
7,919 |
|
5,600 |
|
4,061 |
|
660 |
|
39,231 |
|
||||||
% Oil |
51 |
% |
57 |
% |
36 |
% |
56 |
% |
56 |
% |
50 |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net LOS Wells
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net spuds |
11.5 |
|
7.9 |
|
4.1 |
|
1.2 |
|
0.3 |
|
25.0 |
|
||||||
Net permits |
10.6 |
|
3.5 |
|
3.0 |
|
1.7 |
|
0.3 |
|
19.1 |
|
||||||
Net LOS wells
|
22.1 |
|
11.4 |
|
7.1 |
|
2.9 |
|
0.6 |
|
44.1 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net Royalty Acres
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
As reported March 31, 2024 |
152,761 |
|
45,366 |
|
24,973 |
|
21,077 |
|
8,206 |
|
252,383 |
|
||||||
As reported June 30, 2024 |
153,871 |
|
45,517 |
|
38,680 |
|
21,077 |
|
8,206 |
|
267,351 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Pro forma March 31, 2024(8) |
152,761 |
|
45,366 |
|
38,042 |
|
21,077 |
|
8,206 |
|
265,452 |
|
||||||
As reported June 30, 2024 |
153,871 |
|
45,517 |
|
38,680 |
|
21,077 |
|
8,206 |
|
267,351 |
|
||||||
Pro forma NRA increase (decrease)
|
1,110 |
|
151 |
|
638 |
|
- |
|
- |
|
1,899 |
|
||||||
(8) |
Includes NRAs from the DJ Basin Acquisition |
|
(9) |
Represents the difference from reported NRAs as of June 30, 2024 less pro forma NRAs as of March 31, 2024(8) |
FINANCIAL UPDATE
Sitio's second quarter 2024 average unhedged realized prices including all expected quality, transportation and demand adjustments were
Consolidated net income for the second quarter of 2024 was
As of June 30, 2024, the Company had
Sitio did not add to or extinguish any of its commodity swaps or collars during the second quarter of 2024. A summary of the Company's existing commodity derivative contracts as of June 30, 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
SECOND QUARTER 2024 EARNINGS CONFERENCE CALL
Sitio will host a conference call at 8:30 a.m. Eastern on Thursday, August 8, 2024 to discuss its second quarter 2024 operating and financial results. Participants can access the call by dialing 1-833-470-1428 in
UPCOMING INVESTOR CONFERENCES
Members of Sitio's management team will be attending the Barclays 38th Annual CEO Energy-Power Conference from September 3-5, 2024, Bank of America Leveraged Finance Conference from December 2-3, 2024, Capital One Annual Energy Conference on December 10, 2024 and Mizuho Power, Energy & Infrastructure Conference from December 9-10, 2024. Any 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
|
Six Months Ended
|
||||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||
Production Data: |
|
|
|
|
||||||||
Crude oil (MBbls) |
|
1,797 |
|
1,580 |
|
3,459 |
|
3,169 |
||||
Natural gas (MMcf) |
|
5,892 |
|
5,575 |
|
10,908 |
|
11,010 |
||||
NGLs (MBbls) |
|
791 |
|
647 |
|
1,510 |
|
1,252 |
||||
Total (MBoe)(6:1) |
|
3,570 |
|
3,156 |
|
6,787 |
|
6,256 |
||||
Average daily production (Boe/d)(6:1) |
|
39,231 |
|
34,681 |
|
37,290 |
|
34,561 |
||||
Average Realized Prices: |
|
|
|
|
||||||||
Crude oil (per Bbl) |
$ |
79.85 |
$ |
70.90 |
$ |
78.29 |
$ |
72.50 |
||||
Natural gas (per Mcf) |
$ |
1.01 |
$ |
1.53 |
$ |
1.08 |
$ |
2.10 |
||||
NGLs (per Bbl) |
$ |
20.32 |
$ |
18.63 |
$ |
20.51 |
$ |
20.14 |
||||
Combined (per Boe) |
$ |
46.36 |
$ |
42.01 |
$ |
46.19 |
$ |
44.46 |
||||
Average Realized Prices After Effects of Derivative Settlements: |
|
|
|
|
||||||||
Crude oil (per Bbl) |
$ |
80.21 |
$ |
74.40 |
$ |
78.96 |
$ |
75.78 |
||||
Natural gas (per Mcf) |
$ |
1.36 |
$ |
1.92 |
$ |
1.44 |
$ |
2.40 |
||||
NGLs (per Bbl) |
$ |
20.32 |
$ |
18.63 |
$ |
20.51 |
$ |
20.14 |
||||
Combined (per Boe) |
$ |
47.13 |
$ |
44.45 |
$ |
47.12 |
$ |
46.64 |
||||
Selected Expense Metrics |
||||||||
|
Three Months Ended
|
|||||||
|
2024 |
2023 |
||||||
Severance and ad valorem taxes |
|
7.5 |
% |
|
7.8 |
% |
||
Depreciation, depletion and amortization ($/Boe) |
$ |
23.95 |
|
$ |
23.52 |
|
||
General and administrative ($/Boe) |
$ |
3.77 |
|
$ |
4.46 |
|
||
Cash G&A ($/Boe) |
$ |
1.98 |
|
$ |
2.12 |
|
||
Interest expense, net ($/Boe) |
$ |
6.36 |
|
$ |
7.34 |
|
||
Condensed Consolidated Balance Sheets |
||||||||
(In thousands except par and share amounts) |
||||||||
|
June 30, |
|
December 31, |
|||||
|
2024 |
|
2023 |
|||||
. |
(Unaudited) |
|
|
|
||||
ASSETS |
|
|
|
|
||||
Current assets |
|
|
|
|
||||
Cash and cash equivalents |
$ |
16,348 |
|
$ |
15,195 |
|
||
Accrued revenue and accounts receivable |
|
129,454 |
|
|
107,347 |
|
||
Prepaid assets |
|
1,839 |
|
|
12,362 |
|
||
Derivative asset |
|
5,547 |
|
|
19,080 |
|
||
Total current assets |
|
153,188 |
|
|
153,984 |
|
||
|
|
|
|
|
||||
Property and equipment |
|
|
|
|
||||
Oil and natural gas properties, successful efforts method: |
|
|
|
|
||||
Unproved properties |
|
2,579,583 |
|
|
2,698,991 |
|
||
Proved properties |
|
2,674,068 |
|
|
2,377,196 |
|
||
Other property and equipment |
|
3,601 |
|
|
3,711 |
|
||
Accumulated depreciation, depletion, amortization, and impairment |
|
(660,139 |
) |
|
(498,531 |
) |
||
Total property and equipment, net |
|
4,597,113 |
|
|
4,581,367 |
|
||
|
|
|
|
|
||||
Long-term assets |
|
|
|
|
||||
Deferred financing costs |
|
9,689 |
|
|
11,205 |
|
||
Long-term derivative asset |
|
— |
|
|
3,440 |
|
||
Operating lease right-of-use asset |
|
5,240 |
|
|
5,970 |
|
||
Other long-term assets |
|
2,781 |
|
|
2,835 |
|
||
Total long-term assets |
|
17,710 |
|
|
23,450 |
|
||
|
|
|
|
|
||||
TOTAL ASSETS |
$ |
4,768,011 |
|
$ |
4,758,801 |
|
||
|
|
|
|
|
||||
LIABILITIES AND EQUITY |
|
|
|
|
||||
Current liabilities |
|
|
|
|
||||
Accounts payable and accrued expenses |
$ |
27,081 |
|
$ |
30,050 |
|
||
Operating lease liability |
|
1,596 |
|
|
1,725 |
|
||
Total current liabilities |
|
28,677 |
|
|
31,775 |
|
||
|
|
|
|
|
||||
Long-term liabilities |
|
|
|
|
||||
Long-term debt |
|
1,049,338 |
|
|
865,338 |
|
||
Deferred tax liability |
|
252,450 |
|
|
259,870 |
|
||
Non-current operating lease liability |
|
4,804 |
|
|
5,394 |
|
||
Other long-term liabilities |
|
1,150 |
|
|
1,150 |
|
||
Total long-term liabilities |
|
1,307,742 |
|
|
1,131,752 |
|
||
|
|
|
|
|
||||
Total liabilities |
|
1,336,419 |
|
|
1,163,527 |
|
||
|
|
|
|
|
||||
Equity |
|
|
|
|
||||
Class A Common Stock, par value |
|
8 |
|
|
8 |
|
||
Class C Common Stock, par value |
|
7 |
|
|
8 |
|
||
Additional paid-in capital |
|
1,737,960 |
|
|
1,796,147 |
|
||
Accumulated deficit |
|
(166,416 |
) |
|
(187,738 |
) |
||
Class A Treasury Shares, 2,230,137 and 0 shares at June 30, 2024 and December 31, 2023, respectively |
|
(54,583 |
) |
|
— |
|
||
Class C Treasury Shares, 52,748 and 26,137 shares at June 30, 2024 and December 31, 2023, respectively |
|
(1,265 |
) |
|
(677 |
) |
||
Noncontrolling interest |
|
1,915,881 |
|
|
1,987,526 |
|
||
Total equity |
|
3,431,592 |
|
|
3,595,274 |
|
||
|
|
|
|
|
||||
TOTAL LIABILITIES AND EQUITY |
$ |
4,768,011 |
|
$ |
4,758,801 |
|
||
Unaudited Condensed Consolidated Statements of Operations |
||||||||||||||||
(In thousands, except per share amounts) |
||||||||||||||||
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
||||||||
Oil, natural gas and natural gas liquids revenues |
$ |
165,516 |
|
$ |
132,567 |
|
$ |
313,487 |
|
$ |
278,121 |
|
||||
Lease bonus and other income |
|
3,032 |
|
|
3,899 |
|
|
6,452 |
|
|
9,171 |
|
||||
Total revenues |
|
168,548 |
|
|
136,466 |
|
|
319,939 |
|
|
287,292 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Depreciation, depletion and amortization |
|
85,485 |
|
|
74,239 |
|
|
161,803 |
|
|
142,002 |
|
||||
General and administrative |
|
13,456 |
|
|
14,066 |
|
|
26,467 |
|
|
25,742 |
|
||||
Severance and ad valorem taxes |
|
12,433 |
|
|
10,344 |
|
|
24,459 |
|
|
20,803 |
|
||||
Impairment of oil and gas properties |
|
— |
|
|
25,617 |
|
|
— |
|
|
25,617 |
|
||||
Total operating expenses |
|
111,374 |
|
|
124,266 |
|
|
212,729 |
|
|
214,164 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net income from operations |
|
57,174 |
|
|
12,200 |
|
|
107,210 |
|
|
73,128 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Other income (expense): |
|
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
(22,688 |
) |
|
(23,159 |
) |
|
(41,198 |
) |
|
(45,362 |
) |
||||
Change in fair value of warrant liability |
|
— |
|
|
584 |
|
|
— |
|
|
2,942 |
|
||||
Loss on extinguishment of debt |
|
— |
|
|
— |
|
|
— |
|
|
(783 |
) |
||||
Commodity derivatives gains (losses) |
|
(607 |
) |
|
6,112 |
|
|
(10,657 |
) |
|
20,875 |
|
||||
Interest rate derivative gains |
|
— |
|
|
607 |
|
|
— |
|
|
447 |
|
||||
Net income (loss) before taxes |
|
33,879 |
|
|
(3,656 |
) |
|
55,355 |
|
|
51,247 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Income tax (expense) benefit |
|
(4,838 |
) |
|
683 |
|
|
(7,622 |
) |
|
(6,501 |
) |
||||
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
|
29,041 |
|
|
(2,973 |
) |
|
47,733 |
|
|
44,746 |
|
||||
Net (income) loss attributable to noncontrolling interest |
|
(16,187 |
) |
|
2,177 |
|
|
(26,411 |
) |
|
(22,889 |
) |
||||
Net income (loss) attributable to Class A stockholders |
$ |
12,854 |
|
$ |
(796 |
) |
$ |
21,322 |
|
$ |
21,857 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share of Class A Common Stock |
|
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.16 |
|
$ |
(0.01 |
) |
$ |
0.25 |
|
$ |
0.26 |
|
||||
Diluted |
$ |
0.15 |
|
$ |
(0.01 |
) |
$ |
0.25 |
|
$ |
0.26 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Weighted average Class A Common Stock outstanding |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
80,751 |
|
|
81,044 |
|
|
81,578 |
|
|
80,614 |
|
||||
Diluted |
|
80,879 |
|
|
81,044 |
|
|
81,761 |
|
|
80,614 |
|
||||
Unaudited Condensed Consolidated Statements of Cash Flow |
||||||||
(In thousands) |
||||||||
|
Six Months Ended June 30, |
|||||||
|
2024 |
|
2023 |
|||||
Cash flows from operating activities: |
|
|
|
|
||||
Net income |
$ |
47,733 |
|
$ |
44,746 |
|
||
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation, depletion and amortization |
|
161,803 |
|
|
142,002 |
|
||
Amortization of deferred financing costs and long-term debt discount |
|
2,603 |
|
|
2,793 |
|
||
Share-based compensation |
|
11,307 |
|
|
10,106 |
|
||
Change in fair value of warrant liability |
|
— |
|
|
(2,942 |
) |
||
Loss on extinguishment of debt |
|
— |
|
|
783 |
|
||
Impairment of oil and gas properties |
|
— |
|
|
25,617 |
|
||
Commodity derivatives (gains) losses |
|
10,657 |
|
|
(20,875 |
) |
||
Net cash received for commodity derivatives settlements |
|
6,316 |
|
|
13,659 |
|
||
Interest rate derivative gains |
|
— |
|
|
(447 |
) |
||
Net cash paid for interest rate derivative settlements |
|
— |
|
|
93 |
|
||
Deferred tax benefit |
|
(7,494 |
) |
|
(7,421 |
) |
||
Change in operating assets and liabilities: |
|
|
|
|
||||
Accrued revenue and accounts receivable |
|
(22,107 |
) |
|
23,900 |
|
||
Prepaid assets |
|
10,547 |
|
|
7,187 |
|
||
Other long-term assets |
|
667 |
|
|
1,622 |
|
||
Accounts payable and accrued expenses |
|
(3,487 |
) |
|
(7,654 |
) |
||
Operating lease liabilities and other long-term liabilities |
|
(493 |
) |
|
(492 |
) |
||
Net cash provided by operating activities |
|
218,052 |
|
|
232,677 |
|
||
|
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
|
||||
Purchases of oil and gas properties, net of post-close adjustments |
|
(177,424 |
) |
|
5,689 |
|
||
Deposits for property acquisitions |
|
— |
|
|
(17,947 |
) |
||
Other, net |
|
(237 |
) |
|
(19 |
) |
||
Net cash used in investing activities |
|
(177,661 |
) |
|
(12,277 |
) |
||
|
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
|
||||
Borrowings on credit facilities |
|
279,000 |
|
|
619,500 |
|
||
Repayments on credit facilities |
|
(96,000 |
) |
|
(643,500 |
) |
||
Repayments on 2026 Senior Notes |
|
— |
|
|
(22,500 |
) |
||
Debt issuance costs |
|
(126 |
) |
|
(8,196 |
) |
||
Distributions to noncontrolling interest |
|
(68,402 |
) |
|
(91,162 |
) |
||
Dividends paid to Class A stockholders |
|
(75,016 |
) |
|
(88,850 |
) |
||
Dividend equivalent rights paid |
|
(707 |
) |
|
(783 |
) |
||
Repurchases of Class A Common Stock |
|
(54,075 |
) |
|
— |
|
||
Repurchases of Sitio OpCo Partnership Units (including associated Class C Common Shares) |
|
(22,142 |
) |
|
— |
|
||
Cash paid for taxes related to net settlement of share-based compensation awards |
|
(1,770 |
) |
|
(3,379 |
) |
||
Net cash used in financing activities |
|
(39,238 |
) |
|
(238,870 |
) |
||
|
|
|
|
|
||||
Net change in cash and cash equivalents |
|
1,153 |
|
|
(18,470 |
) |
||
Cash and cash equivalents, beginning of period |
|
15,195 |
|
|
18,818 |
|
||
Cash and cash equivalents, end of period |
$ |
16,348 |
|
$ |
348 |
|
||
|
|
|
|
|
||||
Supplemental disclosure of non-cash transactions: |
|
|
|
|
||||
Oil and gas properties acquired through issuance of Class C Common Stock and Sitio OpCo Partnership Units: |
$ |
— |
|
$ |
66,526 |
|
||
|
|
|
|
|
||||
Supplemental disclosure of cash flow information: |
|
|
|
|
||||
Cash paid for income taxes: |
$ |
2,769 |
|
$ |
8,811 |
|
||
Cash paid for interest expense: |
|
41,230 |
|
|
43,555 |
|
||
Non-GAAP financial measures
Adjusted EBITDA, Pro Forma 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 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 for the three months ended March 31, 2024 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. A reconciliation of Pro Forma Adjusted EBITDA to the most directly comparable GAAP financial measure for the three months ended March 31, 2024 is available in Exhibit 99.1 of Sitio's Form 8-K filed with the SEC on May 8, 2024.
We define Discretionary Cash Flow as Adjusted EBITDA, less cash and accrued interest expense and estimated cash taxes for the three months ended June 30, 2024.
We define Discretionary Cash Flow as Adjusted EBITDA, less cash interest and cash taxes for the three months ended June 30, 2023.
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, and Cash G&A may differ from computations of similarly titled measures of other companies.
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) |
$ |
29,041 |
$ |
(2,973 |
) |
|||
Interest expense, net |
|
22,688 |
|
23,159 |
|
|||
Income tax expense (benefit) |
|
4,838 |
|
(683 |
) |
|||
Depreciation, depletion and amortization |
|
85,485 |
|
74,239 |
|
|||
Impairment of oil and gas properties |
|
— |
|
25,617 |
|
|||
EBITDA |
$ |
142,052 |
$ |
119,359 |
|
|||
Non-cash share-based compensation expense |
|
6,203 |
|
5,422 |
|
|||
Losses on unsettled derivative instruments |
|
3,329 |
|
1,140 |
|
|||
Change in fair value of warrant liability |
|
— |
|
(584 |
) |
|||
Merger-related transaction costs |
|
24 |
|
1,814 |
|
|||
Adjusted EBITDA |
$ |
151,608 |
$ |
127,151 |
|
|||
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 |
$ |
97,312 |
|
$ |
103,852 |
|
||
Interest expense, net |
|
22,688 |
|
|
23,159 |
|
||
Income tax expense (benefit) |
|
4,838 |
|
|
(683 |
) |
||
Deferred tax benefit |
|
3,256 |
|
|
10,172 |
|
||
Changes in operating assets and liabilities |
|
24,799 |
|
|
(9,715 |
) |
||
Amortization of deferred financing costs and long-term debt discount |
|
(1,309 |
) |
|
(1,448 |
) |
||
Merger-related transaction costs |
|
24 |
|
|
1,814 |
|
||
Adjusted EBITDA |
$ |
151,608 |
|
$ |
127,151 |
|
||
Less: |
|
|
|
|
||||
Cash and accrued interest expense |
|
21,385 |
|
|
24,040 |
|
||
Estimated cash taxes |
|
875 |
|
|
8,261 |
|
||
Discretionary Cash Flow |
$ |
129,348 |
|
$ |
94,850 |
|
||
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
|
|||||||
|
2024 |
|
2023 |
|||||
General and administrative expense |
$ |
13,456 |
$ |
14,066 |
||||
Less: |
|
|
||||||
Non-cash share-based compensation expense |
|
6,203 |
|
5,422 |
||||
Merger-related transaction costs |
|
24 |
|
1,814 |
||||
Rental income |
|
171 |
|
135 |
||||
Cash G&A |
$ |
7,058 |
$ |
6,695 |
||||
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 265,000 NRAs through the consummation of over 200 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 and market volatility related to slowing growth, the large-scale invasion of
View source version on businesswire.com: https://www.businesswire.com/news/home/20240807235262/en/
IR contact:
Ross Wong
(720) 640–7647
IR@sitio.com
Source: Sitio Royalties Corp.
FAQ
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