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Mar 31, 2024
Sitio Royalties Q1 2024 Earnings Report
Sitio Royalties reported its operational and financial results for the first quarter of 2024, highlighting record pro forma average daily production volume and a significant return of capital to shareholders.
Key Takeaways
Sitio Royalties achieved a record pro forma average daily production volume of 37,970 Boe/d in Q1 2024, a 3.7% increase from the previous quarter. The company reported a net income of $18.7 million, a substantial improvement from a net loss in Q4 2023, primarily due to lower operating expenses. Sitio also returned $0.49 per share to shareholders through dividends and stock repurchases.
Record pro forma average daily production volume reached 37,970 Boe/d (51% oil), up 3.7% from Q4 2023.
Net income for Q1 2024 was $18.7 million, a significant increase from a net loss of $91.7 million in Q4 2023, driven by $137.6 million lower operating expenses.
Return of capital to shareholders totaled $0.49 per share, comprising a $0.41 dividend and $0.08 from stock repurchases.
Adjusted EBITDA was $135.1 million, comparable to $134.9 million in Q4 2023, with pro forma Adjusted EBITDA at $143.7 million.
Sitio Royalties
Sitio Royalties
Sitio Royalties Revenue by Geographic Location
Revenue by Geographic Location
Delaware Revenue
CapyFin.comMidland Revenue
CapyFin.comDJ Revenue
CapyFin.comEagle Ford Revenue
CapyFin.comWilliston/Other Revenue
CapyFin.com Forward Guidance
Sitio Royalties provided guidance for the full year 2024, expecting average daily production between 35,000 and 38,000 Boe/d with oil content ranging from 49% to 51%. Cash G&A is projected to be between $31.5 million and $33.5 million annually, and estimated cash taxes between $30.0 million and $37.0 million annually.
Positive Outlook
- Expected average daily production volume for 2024 is between 35,000 and 38,000 Boe/d, indicating continued strong output.
- Oil percentage in production is projected to remain high, between 49% and 51%, supporting revenue quality.
- The company anticipates a more pronounced impact on second-quarter production from new wells that came online in March.
- Sitio continues to have a strong pipeline of minerals acquisition opportunities to evaluate, suggesting future growth.
- The recent DJ Basin acquisition is expected to contribute to full-year production and cash flow.
Challenges Ahead
- The guidance for production taxes as a percentage of royalty revenue is 7.5%-9.5%, which could impact net revenue.
- Estimated annual cash taxes are projected to be between $30.0 million and $37.0 million, representing a significant cash outflow.
- The company's forward-looking statements are subject to risks and uncertainties, including commodity price volatility and global economic uncertainty.
- No specific negative guidance metrics were provided beyond the general ranges for costs and taxes.
- The report does not detail potential impacts of market fluctuations on future realized prices, which could affect profitability.
Revenue & Expenses
Visualization of income flow from segment revenue to net income