Sitio Royalties Reports Third Quarter 2024 Operational and Financial Results
Sitio Royalties reported strong Q3 2024 operational and financial results, exceeding production guidance with 38,585 Boe/d. The company achieved a net income of $27.9 million and Adjusted EBITDA of $135.4 million. Long-term debt was reduced by approximately $56.5 million, and $0.47 per share was returned to shareholders, comprising dividends and stock repurchases. Recent acquisitions bolstered the 2024 outlook, with line of sight wells increasing by 11% QoQ. Sitio’s diverse asset base and robust operator activity in the Permian and DJ Basins contributed to the positive performance. The company’s liquidity stood at $455.5 million, with a credit facility balance of $403.0 million. Average realized commodity prices were $41.65 per Boe unhedged and $42.85 per Boe hedged. The company repurchased 1.4 million shares at an average price of $21.47 per share. Sitio’s updated 2024 guidance raised the midpoint of average daily production by 1,000 Boe/d, reflecting strong legacy production and acquisitions.
Sitio Royalties ha riportato risultati operativi e finanziari solidi per il Q3 2024, superando le previsioni di produzione con 38.585 Boe/d. L'azienda ha registrato un utile netto di $27,9 milioni e un EBITDA rettificato di $135,4 milioni. Il debito a lungo termine è stato ridotto di circa $56,5 milioni, e sono stati restituiti $0,47 per azione agli azionisti, derivanti da dividendi e riacquisti di azioni. Le recenti acquisizioni hanno rafforzato le prospettive per il 2024, con un aumento del 11% dei pozzi in linea vista rispetto al trimestre precedente. La diversificata base di attivi di Sitio e l'attività operativa robusta nei bacini Permian e DJ hanno contribuito alle prestazioni positive. La liquidità dell'azienda si è attestata a $455,5 milioni, con un saldo della linea di credito di $403,0 milioni. I prezzi medi realizzati delle materie prime erano di $41,65 per Boe non coperti e $42,85 per Boe coperti. L'azienda ha riacquistato 1,4 milioni di azioni a un prezzo medio di $21,47 per azione. La guida aggiornata per il 2024 di Sitio ha aumentato il punto medio della produzione media giornaliera di 1.000 Boe/d, riflettendo una forte produzione legacy e acquisizioni.
Sitio Royalties informó resultados operativos y financieros sólidos para el Q3 2024, superando la guía de producción con 38,585 Boe/d. La empresa logró un ingreso neto de $27.9 millones y un EBITDA ajustado de $135.4 millones. La deuda a largo plazo se redujo en aproximadamente $56.5 millones, y se devolvieron $0.47 por acción a los accionistas, que comprenden dividendos y recompras de acciones. Las adquisiciones recientes fortalecieron las perspectivas para 2024, con un aumento del 11% en los pozos en línea de vista trimestre a trimestre. La diversa base de activos de Sitio y la robusta actividad operativa en las cuencas de Permian y DJ contribuyeron al rendimiento positivo. La liquidez de la empresa se situó en $455.5 millones, con un saldo de $403.0 millones en la línea de crédito. Los precios promedio de las materias primas realizadas fueron de $41.65 por Boe no cubiertos y $42.85 por Boe cubiertos. La empresa recompró 1.4 millones de acciones a un precio promedio de $21.47 por acción. La guía actualizada para 2024 de Sitio elevó el punto medio de la producción diaria promedio en 1,000 Boe/d, lo que refleja una fuerte producción heredada y adquisiciones.
시티오 로열티는 2024년 3분기에 강력한 운영 및 재무 결과를 보고하며, 38,585 Boe/d의 생산 지침을 초과했습니다. 회사는 순이익 2790만 달러와 조정 EBITDA 1억 3540만 달러를 달성했습니다. 장기 부채는 약 5650만 달러 감소했으며, 주주에게는 주당 $0.47이 배당금과 자사주 매입으로 반환되었습니다. 최근 인수는 2024년 전망을 강화했으며, 분기 대비 신규 시추 우물이 11% 증가했습니다. 시티오의 다양한 자산 기반과 퍼미안 및 DJ 분지에서의 강력한 운영 활동이 긍정적인 실적에 기여했습니다. 회사의 유동성은 4억 5550만 달러이며, 신용 시설 잔액은 4억 300만 달러입니다. 평균 실현 원자재 가격은 비헤지 시 Boe당 $41.65, 헤지 시 Boe당 $42.85였습니다. 회사는 평균 주당 $21.47에 140만 주를 재매입했습니다. 시티오의 업데이트된 2024년 가이드는 평균 일일 생산의 중간 값을 1,000 Boe/d 늘렸으며, 이는 강력한 레거시 생산과 인수를 반영합니다.
Sitio Royalties a rapporté de solides résultats opérationnels et financiers pour le T3 2024, dépassant les prévisions de production avec 38 585 Boe/j. La société a réalisé un bénéfice net de 27,9 millions de dollars et un EBITDA ajusté de 135,4 millions de dollars. La dette à long terme a été réduite d'environ 56,5 millions de dollars, et 0,47 $ par action a été retourné aux actionnaires, comprenant des dividendes et des rachats d'actions. Les acquisitions récentes ont renforcé les perspectives pour 2024, avec une augmentation de 11 % des puits en vue par rapport au trimestre précédent. La base d'actifs diversifiée de Sitio et l'activité opérationnelle robuste dans les bassins de Permian et de DJ ont contribué à la performance positive. La liquidité de la société se montait à 455,5 millions de dollars, avec un solde de ligne de crédit de 403,0 millions de dollars. Les prix moyens réalisés des matières premières étaient de 41,65 $ par Boe non couvert et de 42,85 $ par Boe couvert. La société a racheté 1,4 million d'actions à un prix moyen de 21,47 $ par action. Les prévisions actualisées de Sitio pour 2024 ont augmenté le point médian de la production quotidienne moyenne de 1 000 Boe/j, reflétant une forte production héritée et des acquisitions.
Sitio Royalties berichtete über starke operative und finanzielle Ergebnisse für Q3 2024, die die Produktionsprognose mit 38.585 Boe/d übertrafen. Das Unternehmen erzielte einen Nettogewinn von 27,9 Millionen USD und ein bereinigtes EBITDA von 135,4 Millionen USD. Die langfristigen Schulden wurden um etwa 56,5 Millionen USD reduziert, und es wurden 0,47 USD pro Aktie an die Aktionäre zurückgegeben, bestehend aus Dividenden und Aktienrückkäufen. Jüngste Akquisitionen stärkten die Perspektiven für 2024, da die Anzahl der in Sicht stehenden Bohrstellen im Vergleich zum Vorquartal um 11 % stieg. Die vielfältige Vermögensbasis von Sitio und die robuste Aktivität der Betreiber in den Permian- und DJ-Becken trugen zur positiven Leistung bei. Die Liquidität des Unternehmens betrug 455,5 Millionen USD, wobei der Saldo der Kreditlinie bei 403,0 Millionen USD lag. Die durchschnittlichen realisierten Rohstoffpreise lagen bei 41,65 USD pro Boe unhedged und 42,85 USD pro Boe hedged. Das Unternehmen kaufte 1,4 Millionen Aktien zu einem durchschnittlichen Preis von 21,47 USD pro Aktie zurück. Die aktualisierte Produktionsprognose für 2024 von Sitio erhöhte den Mittelwert der durchschnittlichen täglichen Produktion um 1.000 Boe/d, was die starke Altproduktionsleistung und die Akquisitionen widerspiegelt.
- Net income of $27.9 million.
- Adjusted EBITDA of $135.4 million.
- Production exceeded guidance at 38,585 Boe/d.
- Long-term debt reduced by $56.5 million.
- Shareholder return of $0.47 per share.
- 11% increase in line of sight wells QoQ.
- Liquidity of $455.5 million.
- Repurchased 1.4 million shares at $21.47 per share.
- Raised 2024 production guidance by 1,000 Boe/d.
- Adjusted EBITDA down 10.7% QoQ.
- Net income down 4.0% QoQ.
- Lower unhedged realized oil prices.
- Higher cash tax guidance for 2024.
Company reports production above guidance range with strong operator activity in Permian and DJ Basins
2024 outlook enhanced through legacy asset outperformance and impact of five acquisitions closed in third quarter
Line of sight wells increased
Long-term debt reduced by approximately
Third quarter total return of capital of
HIGHLIGHTS
-
Posted third quarter net income of
$27.9 million $135.4 million
-
Recorded third quarter production above full year guidance range, 38,585 barrels of oil equivalent per day (“Boe/d”) (
50% oil)
-
Reduced long-term debt by approximately
$56.5 million $403.0 million $455.5 million
-
Ongoing benefit of diversified asset base, exposure to quality operators across top domestic basins and track record of value-add acquisitions. Line of sight (“LOS”) wells increased
11% quarter-over-quarter and there were 7.7 net wells turned-in-line, providing high confidence in sustainable business model
-
Continued to return cash to shareholders and enhance value on a per share basis; Sitio to return
$0.47 $0.28 $0.19 3% and total return of capital (including dividends and stock repurchases) is$1.67
-
Repurchased 1.4 million shares of Class A Common Stock during the quarter (
$21.47 $105.2 million $94.8 million
“We continued our streak of sound results, beating expectations for the third consecutive quarter. This allowed us to strengthen our full-year 2024 outlook with higher volumes and cash costs that are down by approximately
THIRD QUARTER 2024 FINANCIAL AND OPERATING RESULTS
Net income in the quarter was
Third quarter production exceeded full year 2024 guidance, averaging 38,585 Boe/d (
Average realized commodity prices during the third quarter were
General and administrative expenses was
3Q 2024 AND YTD PRO FORMA RESULTS VS. PRIOR 2024 FY GUIDANCE
The table below shows third quarter 2024 and pro forma 2024 results for the three months ended September 30, 2024 relative to the prior full year guidance previously issued on August 7, 2024. Primarily as a result of our legacy asset outperformance and the impact of recent acquisitions, we are providing updated full year guidance later in this press release under "Updated 2024 Full Year Financial and Operational Guidance."
Metric |
|
3Q 2024 Reported Results |
|
YTD24 Pro Forma Results(1) |
|
Prior 2024 FY Guidance(1) |
||||
Average daily production (Boe/d) |
|
|
38,585 |
|
|
|
38,595 |
|
|
36,000 – 38,000 |
Oil % |
|
|
50 |
% |
|
|
50 |
% |
|
|
|
|
|
|
|
|
|
||||
Cash G&A ($ in millions) |
|
$ |
7.8 |
|
|
$ |
22.6 |
|
|
|
Production taxes (% of royalty revenue) |
|
|
6.9 |
% |
|
|
7.7 |
% |
|
|
Estimated cash taxes ($ in millions)(2) |
|
$ |
4.6 |
|
|
$ |
13.9 |
|
|
|
(1) |
Includes production from the DJ Basin Acquisition as if it was owned on January 1, 2024; 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 |
|
|
|
|
(2) |
Cash tax guidance is based on strip pricing when guidance was issued; Estimated cash taxes for YTD24 Pro Forma Results represents the estimated cash taxes used in the calculation of Discretionary Cash Flow and is not pro forma for the DJ Basin Acquisition |
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. Sitio today enhanced its full-year 2024 outlook and raised the midpoint of its pro forma average daily production range by 1,000 Boe/d due to robust legacy production year-to-date and expected impacts from five recent acquisitions. The midpoint of 2024 guidance for cash taxes increased by
Full Year 2024 Guidance |
August 7, 2024 |
November 6, 2024 |
Change at Midpoint |
||||
Pro Forma Average Daily Production(1) |
|
|
|
|
|
||
Pro forma average daily production (Boe/d)(1) |
36,000 - 38,000 |
|
37,000 - 39,000 |
|
|
1,000 |
|
Pro forma average daily production (% oil)(1) |
|
|
|
|
|
- |
|
|
|
|
|
|
|
||
Expenses and Taxes |
|
|
|
|
|
||
Cash G&A ($ in millions) |
|
|
|
|
$ |
(1.5 |
) |
Production taxes (% of royalty revenue) |
|
|
|
|
|
- |
|
Cash taxes ($ in millions)(2) |
|
|
|
|
$ |
7.0 |
|
(1) |
Includes production from the DJ Basin Acquisition as if it was owned on January 1, 2024 |
|
|
|
|
(2) |
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 and net line-of-sight ("LOS") wells by area.
|
|
|
Midland |
|
DJ |
|
Eagle Ford |
|
Williston/Other |
|
Total |
||||||
Average Daily Production (Boe/d) for the three months ended September 30, 2024 |
|
|
|
|
|
|
|
|
|
|
|
||||||
As reported |
20,167 |
|
|
8,446 |
|
|
5,648 |
|
|
3,386 |
|
|
938 |
|
|
38,585 |
|
% Oil |
50 |
% |
|
57 |
% |
|
37 |
% |
|
54 |
% |
|
45 |
% |
|
50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net LOS Wells as of September 30, 2024 |
|
|
|
|
|
|
|
|
|
|
|
||||||
Net spuds |
11.1 |
|
|
8.9 |
|
|
5.8 |
|
|
1.4 |
|
|
0.3 |
|
|
27.5 |
|
Net permits |
11.4 |
|
|
5.1 |
|
|
2.8 |
|
|
1.9 |
|
|
0.2 |
|
|
21.4 |
|
Net LOS wells as of September 30, 2024 |
22.5 |
|
|
14.0 |
|
|
8.6 |
|
|
3.3 |
|
|
0.5 |
|
|
48.9 |
|
FINANCIAL UPDATE
Sitio's third quarter 2024 average unhedged realized prices including all expected quality, transportation and demand adjustments were
Consolidated net income for the third quarter of 2024 was
As of September 30, 2024, the Company had
Sitio did not add to or extinguish any of its commodity swaps or collars during the third quarter of 2024. A summary of the Company's existing commodity derivative contracts as of September 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 FRAMEWORK
Sitio is committed to returning capital to shareholders while maintaining a balanced and durable capital structure. Since becoming public in 2022, Sitio has returned more than
Sitio’s Board of Directors declared a cash dividend of
CONFERENCE CALL INFORMATION
Sitio will host a conference call at 7:30 a.m. CT / 8:30 a.m. ET on Thursday, November 7, 2024. Participants can access the call by dialing 1-833-470-1428 in
FINANCIAL RESULTS
Production Data |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Production Data: |
|
|
|
|
|
|
|
||||||||
Crude oil (MBbls) |
|
1,760 |
|
|
1,617 |
|
|
5,219 |
|
|
4,786 |
||||
Natural gas (MMcf) |
|
5,900 |
|
|
|
6,203 |
|
|
|
16,808 |
|
|
|
17,214 |
|
NGLs (MBbls) |
|
806 |
|
|
|
744 |
|
|
|
2,316 |
|
|
|
1,996 |
|
Total (MBOE)(6:1) |
|
3,549 |
|
|
|
3,395 |
|
|
|
10,336 |
|
|
|
9,651 |
|
Average daily production (BOE/d)(6:1) |
|
38,585 |
|
|
|
36,900 |
|
|
|
37,725 |
|
|
|
35,349 |
|
Average Realized Prices: |
|
|
|
|
|
|
|
||||||||
Crude oil (per Bbl) |
$ |
74.67 |
|
|
$ |
80.21 |
|
|
$ |
77.07 |
|
|
$ |
75.11 |
|
Natural gas (per Mcf) |
$ |
0.45 |
|
|
$ |
1.54 |
|
|
$ |
0.85 |
|
|
$ |
1.90 |
|
NGLs (per Bbl) |
$ |
17.11 |
|
|
$ |
18.14 |
|
|
$ |
19.32 |
|
|
$ |
19.39 |
|
Combined (per BOE) |
$ |
41.65 |
|
|
$ |
45.00 |
|
|
$ |
44.63 |
|
|
$ |
44.65 |
|
Average Realized Prices After Effects of Derivative Settlements: |
|
|
|
|
|
|
|
||||||||
Crude oil (per Bbl) |
$ |
75.96 |
|
|
$ |
82.21 |
|
|
$ |
77.95 |
|
|
$ |
77.95 |
|
Natural gas (per Mcf) |
$ |
0.78 |
|
|
$ |
1.84 |
|
|
$ |
1.21 |
|
|
$ |
2.20 |
|
NGLs (per Bbl) |
$ |
17.11 |
|
|
$ |
18.14 |
|
|
$ |
19.32 |
|
|
$ |
19.39 |
|
Combined (per BOE) |
$ |
42.85 |
|
|
$ |
46.49 |
|
|
$ |
45.66 |
|
|
$ |
46.59 |
|
Selected Expense Metrics |
|||||||
|
Three Months Ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Severance and ad valorem taxes |
|
6.9 |
% |
|
|
7.9 |
% |
Depletion ($/Boe) |
$ |
21.97 |
|
|
$ |
23.74 |
|
General and administrative ($/Boe) |
$ |
4.05 |
|
|
$ |
3.55 |
|
Cash G&A ($/Boe) |
$ |
2.20 |
|
|
$ |
2.18 |
|
Interest expense, net ($/Boe) |
$ |
6.34 |
|
|
$ |
7.77 |
|
Condensed Consolidated Balance Sheets (In thousands except par and share amounts) |
|||||||
|
September 30,
|
|
December 31,
|
||||
|
(Unaudited) |
|
|
||||
ASSETS |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
8,507 |
|
|
$ |
15,195 |
|
Accrued revenue and accounts receivable |
|
118,635 |
|
|
|
107,347 |
|
Prepaid assets |
|
8,023 |
|
|
|
12,362 |
|
Derivative asset |
|
9,066 |
|
|
|
19,080 |
|
Total current assets |
|
144,231 |
|
|
|
153,984 |
|
|
|
|
|
||||
Property and equipment |
|
|
|
||||
Oil and natural gas properties, successful efforts method: |
|
|
|
||||
Unproved properties |
|
2,514,348 |
|
|
|
2,698,991 |
|
Proved properties |
|
2,752,715 |
|
|
|
2,377,196 |
|
Other property and equipment |
|
3,688 |
|
|
|
3,711 |
|
Accumulated depreciation, depletion, amortization, and impairment |
|
(738,232 |
) |
|
|
(498,531 |
) |
Total property and equipment, net |
|
4,532,519 |
|
|
|
4,581,367 |
|
|
|
|
|
||||
Long-term assets |
|
|
|
||||
Long-term derivative asset |
|
— |
|
|
|
3,440 |
|
Deferred financing costs |
|
8,887 |
|
|
|
11,205 |
|
Operating lease right-of-use asset |
|
4,949 |
|
|
|
5,970 |
|
Other long-term assets |
|
2,778 |
|
|
|
2,835 |
|
Total long-term assets |
|
16,614 |
|
|
|
23,450 |
|
|
|
|
|
||||
TOTAL ASSETS |
$ |
4,693,364 |
|
|
$ |
4,758,801 |
|
|
|
|
|
||||
LIABILITIES AND EQUITY |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable and accrued expenses |
$ |
56,364 |
|
|
$ |
30,050 |
|
Operating lease liability |
|
1,605 |
|
|
|
1,725 |
|
Total current liabilities |
|
57,969 |
|
|
|
31,775 |
|
|
|
|
|
||||
Long-term liabilities |
|
|
|
||||
Long-term debt |
|
992,854 |
|
|
|
865,338 |
|
Deferred tax liability |
|
248,005 |
|
|
|
259,870 |
|
Non-current operating lease liability |
|
4,511 |
|
|
|
5,394 |
|
Other long-term liabilities |
|
1,150 |
|
|
|
1,150 |
|
Total long-term liabilities |
|
1,246,520 |
|
|
|
1,131,752 |
|
|
|
|
|
||||
Total liabilities |
|
1,304,489 |
|
|
|
1,163,527 |
|
|
|
|
|
||||
Equity |
|
|
|
||||
Class A Common Stock, par value |
|
8 |
|
|
|
8 |
|
Class C Common Stock, par value |
|
7 |
|
|
|
8 |
|
Additional paid-in capital |
|
1,720,293 |
|
|
|
1,796,147 |
|
Accumulated deficit |
|
(153,853 |
) |
|
|
(187,738 |
) |
Class A Treasury Shares, 3,582,033 and 0 shares at September 30, 2024 and December 31, 2023, respectively |
|
(83,896 |
) |
|
|
— |
|
Class C Treasury Shares, 52,748 and 26,137 shares at September 30, 2024 and December 31, 2023, respectively |
|
(1,265 |
) |
|
|
(677 |
) |
Noncontrolling interest |
|
1,907,581 |
|
|
|
1,987,526 |
|
Total equity |
|
3,388,875 |
|
|
|
3,595,274 |
|
|
|
|
|
||||
TOTAL LIABILITIES AND EQUITY |
$ |
4,693,364 |
|
|
$ |
4,758,801 |
|
Unaudited Condensed Consolidated Statements of Operations (In thousands, except per share amounts) |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues: |
|
|
|
|
|
|
|
||||||||
Oil, natural gas and natural gas liquids revenues |
$ |
147,858 |
|
|
$ |
152,766 |
|
|
$ |
461,345 |
|
|
$ |
430,887 |
|
Lease bonus and other income |
|
1,517 |
|
|
|
3,944 |
|
|
|
7,969 |
|
|
|
13,115 |
|
Total revenues |
|
149,375 |
|
|
|
156,710 |
|
|
|
469,314 |
|
|
|
444,002 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Depreciation, depletion and amortization |
|
78,093 |
|
|
|
80,716 |
|
|
|
239,896 |
|
|
|
222,718 |
|
General and administrative |
|
14,382 |
|
|
|
12,044 |
|
|
|
40,849 |
|
|
|
37,786 |
|
Severance and ad valorem taxes |
|
10,196 |
|
|
|
12,124 |
|
|
|
34,655 |
|
|
|
32,927 |
|
Impairment of oil and gas properties |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
25,617 |
|
Total operating expenses |
|
102,671 |
|
|
|
104,884 |
|
|
|
315,400 |
|
|
|
319,048 |
|
|
|
|
|
|
|
|
|
||||||||
Net income from operations |
|
46,704 |
|
|
|
51,826 |
|
|
|
153,914 |
|
|
|
124,954 |
|
|
|
|
|
|
|
|
|
||||||||
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
(22,511 |
) |
|
|
(26,373 |
) |
|
|
(63,709 |
) |
|
|
(71,735 |
) |
Change in fair value of warrant liability |
|
— |
|
|
|
8 |
|
|
|
— |
|
|
|
2,950 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
(687 |
) |
|
|
— |
|
|
|
(1,470 |
) |
Commodity derivatives gains (losses) |
|
7,785 |
|
|
|
(24,125 |
) |
|
|
(2,872 |
) |
|
|
(3,250 |
) |
Interest rate derivative gains |
|
— |
|
|
|
9 |
|
|
|
— |
|
|
|
456 |
|
Net income before taxes |
|
31,978 |
|
|
|
658 |
|
|
|
87,333 |
|
|
|
51,905 |
|
|
|
|
|
|
|
|
|
||||||||
Income tax expense |
|
(4,111 |
) |
|
|
(383 |
) |
|
|
(11,733 |
) |
|
|
(6,884 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income |
|
27,867 |
|
|
|
275 |
|
|
|
75,600 |
|
|
|
45,021 |
|
Net (income) loss attributable to noncontrolling interest |
|
(15,304 |
) |
|
|
12 |
|
|
|
(41,715 |
) |
|
|
(22,877 |
) |
Net income attributable to Class A stockholders |
$ |
12,563 |
|
|
$ |
287 |
|
|
$ |
33,885 |
|
|
$ |
22,144 |
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share of Class A Common Stock |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.15 |
|
|
$ |
— |
|
|
$ |
0.41 |
|
|
$ |
0.26 |
|
Diluted |
$ |
0.15 |
|
|
$ |
— |
|
|
$ |
0.41 |
|
|
$ |
0.26 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average Class A Common Stock outstanding |
|
|
|
|
|
|
|
||||||||
Basic |
|
80,142 |
|
|
|
81,712 |
|
|
|
81,095 |
|
|
|
80,984 |
|
Diluted |
|
80,278 |
|
|
|
157,260 |
|
|
|
81,263 |
|
|
|
80,984 |
|
Unaudited Condensed Consolidated Statements of Cash Flows (In thousands) |
|||||||
|
Nine Months Ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
75,600 |
|
|
$ |
45,021 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation, depletion and amortization |
|
239,896 |
|
|
|
222,718 |
|
Amortization of deferred financing costs and long-term debt discount |
|
3,925 |
|
|
|
4,275 |
|
Share-based compensation |
|
17,558 |
|
|
|
14,474 |
|
Change in fair value of warrant liability |
|
— |
|
|
|
(2,950 |
) |
Loss on extinguishment of debt |
|
— |
|
|
|
1,470 |
|
Impairment of oil and gas properties |
|
— |
|
|
|
25,617 |
|
Commodity derivatives losses |
|
2,872 |
|
|
|
3,250 |
|
Net cash received for commodity derivatives settlements |
|
10,582 |
|
|
|
18,730 |
|
Interest rate derivative gains |
|
— |
|
|
|
(456 |
) |
Net cash paid for interest rate derivative settlements |
|
— |
|
|
|
403 |
|
Deferred tax benefit |
|
(11,984 |
) |
|
|
(15,107 |
) |
Change in operating assets and liabilities: |
|
|
|
||||
Accrued revenue and accounts receivable |
|
(11,288 |
) |
|
|
26,188 |
|
Prepaid assets |
|
4,402 |
|
|
|
13,187 |
|
Other long-term assets |
|
961 |
|
|
|
1,866 |
|
Accounts payable and accrued expenses |
|
24,984 |
|
|
|
(3,131 |
) |
Operating lease liabilities and other long-term liabilities |
|
(777 |
) |
|
|
(737 |
) |
Net cash provided by operating activities |
|
356,731 |
|
|
|
354,818 |
|
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
||||
Purchases of oil and gas properties, net of post-close adjustments |
|
(190,834 |
) |
|
|
(172,070 |
) |
Purchases of other property and equipment |
|
— |
|
|
|
(19 |
) |
Other, net |
|
(319 |
) |
|
|
— |
|
Net cash used in investing activities |
|
(191,153 |
) |
|
|
(172,089 |
) |
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
||||
Borrowings on credit facilities |
|
329,000 |
|
|
|
588,500 |
|
Repayments on credit facilities |
|
(203,000 |
) |
|
|
(497,500 |
) |
Repayments on 2026 Senior Notes |
|
— |
|
|
|
(33,750 |
) |
2026 Senior Notes issuance costs |
|
— |
|
|
|
(351 |
) |
Debt issuance costs |
|
(144 |
) |
|
|
— |
|
Distributions to noncontrolling interest |
|
(91,512 |
) |
|
|
(121,924 |
) |
Dividends paid to Class A stockholders |
|
(99,087 |
) |
|
|
(121,555 |
) |
Dividend equivalent rights paid |
|
(943 |
) |
|
|
(982 |
) |
Repurchases of Class A Common Stock |
|
(82,619 |
) |
|
|
— |
|
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 |
|
(1,819 |
) |
|
|
(3,432 |
) |
Payments of deferred financing costs |
|
— |
|
|
|
(9,214 |
) |
Net cash used in financing activities |
|
(172,266 |
) |
|
|
(200,208 |
) |
|
|
|
|
||||
Net change in cash and cash equivalents |
|
(6,688 |
) |
|
|
(17,479 |
) |
Cash and cash equivalents, beginning of period |
|
15,195 |
|
|
|
18,818 |
|
Cash and cash equivalents, end of period |
$ |
8,507 |
|
|
$ |
1,339 |
|
|
|
|
|
||||
Supplemental disclosure of non-cash transactions: |
|
|
|
||||
Increase in current liabilities for additions to property and equipment: |
$ |
42 |
|
|
$ |
224 |
|
Oil and gas properties acquired through issuance of Class C Common Stock and Sitio OpCo Partnership Units: |
|
— |
|
|
|
66,256 |
|
|
|
|
|
||||
Supplemental disclosure of cash flow information: |
|
|
|
||||
Cash paid for income taxes: |
$ |
3,080 |
|
|
$ |
9,268 |
|
Cash paid for interest expense: |
|
51,144 |
|
|
|
68,249 |
|
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 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 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 Cash Acquisitions EBITDA from July 1, 2023 to September 30, 2023 that is not included in Adjusted EBITDA for the three months ended September 30, 2023. Cash Acquisitions is defined as the four acquisitions that closed in July and August 2023 for approximately
We define Discretionary Cash Flow and Pro Forma Discretionary Cash Flow for the three months ended September 30, 2024 as Adjusted EBITDA, less cash and accrued interest expense and estimated cash taxes.
We define Discretionary Cash Flow for the three months ended September 30, 2023 as Adjusted EBITDA, less cash interest expense and cash taxes.
We define Pro Forma Discretionary Cash Flow for the three months ended September 30, 2023 as Discretionary Cash Flow for the three months ended September 30, 2023 plus Cash Acquisitions Discretionary Cash Flow from July 1, 2023 to September 30, 2023 that is not included in Discretionary Cash Flow for the three months ended September 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.
Merger-related transaction costs for the three months ended September 30, 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, 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 pro forma financial data is presented for illustrative purposes only and should not be relied upon as an indication of the financial condition that would have been achieved if the acquisitions had taken place on the specified dates. In addition, future results may vary significantly from the results reflected in such pro forma data and should not be relied on as an indication of future results.
The following tables present 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
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Net income |
$ |
27,867 |
|
|
$ |
275 |
|
Interest expense, net |
|
22,511 |
|
|
|
26,373 |
|
Income tax expense |
|
4,111 |
|
|
|
383 |
|
Depreciation, depletion and amortization |
|
78,093 |
|
|
|
80,716 |
|
EBITDA |
$ |
132,582 |
|
|
$ |
107,747 |
|
Non-cash share-based compensation expense |
|
6,251 |
|
|
|
4,368 |
|
Losses (gains) on unsettled derivative instruments |
|
(3,518 |
) |
|
|
29,497 |
|
Change in fair value of warrant liability |
|
— |
|
|
|
(8 |
) |
Loss on debt extinguishment |
|
— |
|
|
|
687 |
|
Merger-related transaction costs |
|
126 |
|
|
|
251 |
|
Adjusted EBITDA |
$ |
135,441 |
|
|
$ |
142,542 |
|
Cash Acquisitions EBITDA1 |
|
— |
|
|
|
1,144 |
|
Pro Forma Adjusted EBITDA1 |
$ |
135,441 |
|
|
$ |
143,686 |
|
(1) |
Cash Acquisitions closed in 2023 and are reflected in the full results for the three months ended September 30, 2024 |
|
Three Months Ended
|
||
|
|
2024 |
|
Net income |
$ |
29,041 |
|
Interest expense, net |
|
22,688 |
|
Income tax expense |
|
4,838 |
|
Depreciation, depletion and amortization |
|
85,485 |
|
EBITDA |
$ |
142,052 |
|
Non-cash share-based compensation expense |
|
6,203 |
|
Losses on unsettled derivative instruments |
|
3,329 |
|
Merger-related transaction costs |
|
149 |
|
Adjusted EBITDA |
$ |
151,733 |
|
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
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash flow from operations |
$ |
138,679 |
|
|
$ |
122,141 |
|
Interest expense, net |
|
22,511 |
|
|
|
26,373 |
|
Income tax expense |
|
4,111 |
|
|
|
383 |
|
Deferred tax benefit |
|
4,490 |
|
|
|
7,686 |
|
Changes in operating assets and liabilities |
|
(33,154 |
) |
|
|
(12,810 |
) |
Amortization of deferred financing costs and long-term debt discount |
|
(1,322 |
) |
|
|
(1,482 |
) |
Merger-related transaction costs |
|
126 |
|
|
|
251 |
|
Adjusted EBITDA |
$ |
135,441 |
|
|
$ |
142,542 |
|
Less: |
|
|
|
||||
Cash and accrued interest expense |
|
21,189 |
|
|
|
24,694 |
|
Estimated cash taxes |
|
4,625 |
|
|
|
457 |
|
Discretionary Cash Flow |
$ |
109,627 |
|
|
$ |
117,391 |
|
Cash Acquisitions Discretionary Cash Flow1 |
$ |
— |
|
|
$ |
1,144 |
|
Pro Forma Discretionary Cash Flow1 |
$ |
109,627 |
|
|
$ |
118,535 |
|
(1) |
Cash Acquisitions closed in 2023 and are reflected in the full results for the three months ended September 30, 2024 |
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 |
$ |
14,382 |
|
$ |
12,044 |
||
Less: |
|
|
|
||||
Non-cash share-based compensation expense |
|
6,251 |
|
|
|
4,368 |
|
Merger-related transaction costs |
|
126 |
|
|
|
251 |
|
Rental income |
|
183 |
|
|
|
136 |
|
Cash G&A |
$ |
7,822 |
|
|
$ |
7,289 |
|
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 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 slowing growth and demand, especially from
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106907897/en/
IR contact:
Ross Wong
(720) 640–7647
IR@sitio.com
Source: Sitio Royalties Corp.
FAQ
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