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Jun 30, 2024
Sitio Royalties Q2 2024 Earnings Report
Sitio Royalties reported strong operational and financial results for the second quarter of 2024, driven by record high average daily production volume and increased net income.
Key Takeaways
Sitio Royalties reported a record high average daily production volume of 39,231 Boe/d (50% oil) for Q2 2024, an 11% increase from Q1 2024. Net income rose by 55% to $29.0 million, primarily due to higher oil, natural gas, and natural gas liquids revenues and lower commodity derivatives losses. The company also returned $0.71 per share to shareholders through cash dividends and stock repurchases.
Record high average daily production volume of 39,231 Boe/d (50% oil) was achieved in Q2 2024.
Net income increased by 55% to $29.0 million compared to Q1 2024.
A total of $0.71 per share was returned to shareholders, comprising a $0.30 cash dividend and $0.41 in stock repurchases.
Full-year 2024 pro forma production guidance was raised to 36,000 – 38,000 Boe/d, and the midpoint of cash tax guidance was lowered by $21.5 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 has updated its full-year 2024 financial and operational guidance, raising pro forma average daily production and lowering the midpoint of cash tax guidance.
Positive Outlook
- Pro forma average daily production guidance increased by 500 Boe/d at the midpoint, reflecting strong performance and recent acquisitions.
- Full-year 2024 pro forma average daily production guidance range raised to 36,000 – 38,000 Boe/d.
- Midpoint of full-year 2024 cash tax guidance lowered by $21.5 million, indicating improved tax efficiency.
- Approximately 200 Boe/d of the production increase is attributed to recently closed 2Q 2024 acquisitions.
- The company expects to benefit from an increase in its 2024 federal tax credit.
Challenges Ahead
- No specific negative forward guidance points were explicitly stated in the provided text.
- The guidance is based on expectations at strip pricing, which can be volatile.
- Future results may differ materially due to commodity price volatility and global economic uncertainty.
- The company's performance is subject to risks related to geopolitical conflicts and voluntary production cuts by OPEC+.
- The guidance assumes pro forma ownership of the DJ Basin Acquisition from January 1, 2024, which may not perfectly align with actual operational timelines.
Revenue & Expenses
Visualization of income flow from segment revenue to net income