Sitio Royalties Corp. Reports 5% Revenue Increase and Net Income Recovery for Fiscal Year 2024

Sitio Royalties Corp. reported a significant increase in financial performance for the fiscal year ending December 31, 2024, with total revenues reaching approximately $624.4 million, a 5% increase from $593.4 million in 2023. The company's net income attributable to Class A stockholders was $40.9 million, a substantial recovery from a net loss of $15.5 million in the previous year. This improvement was primarily driven by a 10% increase in crude oil production volumes, which rose to 7 million barrels, despite a slight decrease in average realized oil prices. Natural gas revenues, however, saw a notable decline of 42%, attributed to a decrease in average realized prices due to pipeline capacity constraints in the Permian Basin.

In terms of operational metrics, Sitio's average daily production increased by 9% to 38,517 BOE/d, consisting of 19,128 Bbls/d of oil, 64,363 Mcf/d of natural gas, and 8,661 Bbls/d of NGLs. The company also reported a total of 47,317 gross producing horizontal wells on its acreage as of December 31, 2024, reflecting a continued focus on expanding its mineral and royalty interests, which now total approximately 273,100 net royalty acres (NRAs). The company completed multiple acquisitions totaling around 20,600 NRAs during the year, further solidifying its position in key basins such as the Delaware, DJ, and Midland Basins.

Strategically, Sitio has been active in optimizing its asset portfolio, having divested its interests in the Appalachian and Anadarko Basins in December 2023. The management team, which has extensive experience in oil and gas operations, continues to focus on acquiring high-quality mineral and royalty interests to enhance cash flow generation. As of the end of 2024, Sitio's liquidity stood at $440.5 million, comprising $3.3 million in cash and $437.2 million available under its revolving credit facility, indicating a strong financial position to support future growth initiatives.

Looking ahead, Sitio anticipates continued growth in production and revenue, driven by the development of its existing properties and the successful execution of its acquisition strategy. However, the company remains cautious about potential market volatility, particularly concerning commodity prices and regulatory changes that could impact its operations. The management has indicated that it will continue to monitor market conditions closely and adjust its strategies accordingly to maintain financial stability and shareholder value.