Disclaimer FORWARD-LOOKING STATEMENTS This presentation relates to Sitio Royalties Corp. (the Company or Sitio) and contains statements that may constitute forward-looking statements for purposes of federal securities laws.…
Sitios 1Q23 highlights Record high average quarterly production volume of 34,440 boe/d (51% oil) Declared 1Q23 dividend of 0.50 per share of Class A common stock Reduced long-term debt by 33.7 million Reaffirmed production…
A leading oil-weighted mineral and royalty company focused on consolidation of the highly fragmented minerals sector Sitio acquires and manages oil and gas mineral and royalty interests in U.S. shale plays with a focus on the Permian…
1Q23 results vs. 2023 guidance 1Q23 Results 2023 Guidance Average daily production (Boe/d) 34,440 34,000 37,000 Average daily production (% oil) 51% 49% 51% G&T (/boe) 1.24 1.25 1.75 Production taxes (% of royalty revenue) 7%…
Sitio is able to drive down Cash G&A / boe with each large acquisition Significant Cash G&A (/boe) reduction while well count grows 11x (NRAs) (Cash G&A /boe) 300,000 7.00 6.01 260,607 260,637 6.00 250,000 5.10 5.00 200,000…
Sitio has achieved significant synergies from corporate mergers Sitios 1Q23 G&A and Cash G&A to run the legacy Desert Peak Minerals, Brigham Minerals and Falcon Minerals assets are 38% and 46% lower, respectively, relative to 1Q22 G&A…
Sitio line-of-sight wells by operator Other 25.0 17.8 Other Net Spuds Net Permits 8 Note: Well counts as of 3/31/23. All wells normalized to 5,000
Spud and permit activity on Sitios existing asset base provides visibility into near-term production Sitio total line-of-sight development 17.8 253.3 25.0 141.3 42.8 line-of-sight wells on Sitio acreage 296.2 112.0…
Sitio has a proven track record of consolidation over an extended time period Change in NRAs by public mineral peers Sitio NRAs since inception: 187 acquisitions to date since year end 2018(1) (Cumulative NRAs) (NRAs acquired by…
Case study: recent minerals transaction private buyer and private seller Sitio recently evaluated an acquisition where the market-clearing purchase price was 2x what STR could have paid within the companys rate of return parameters Sitio…
Sitio has exposure to approximately 33% of the acreage in the Midland and Delaware Basins Sitios remaining Permian Basin inventory by drilling spacing unit (DSU) Sitio has over 3.8 million gross DSU acres across all basins Sitios…
E&P companies have significant remaining drilling inventory on Sitios acreage Operators have drilled a range of 3,500 4,750 5k normalized wells per year on Sitios acreage over the past 3 years Gross 5k normalized remaining inventory…
Sitio has increased production per debt adjusted share while making large-scale acquisitions over the last 12 months Sitios production per million debt adjusted shares(1) % change in production per debt adjusted share over the last 4…
Sitios financial philosophy and capitalization Focused on maximizing value and maintaining balance sheet strength Financial philosophy Capitalization Generate robust free cash flow in millions As reported As of 3/31/23 5/5/23 Retain…
Sitios risk management strategy is designed to protect returns on cash acquisitions made in commodity price environments above mid-cycle pricing Hedging methodology Oil and gas hedging summary as of 3/31/23 Utilization of hedging as a…
Sitio maintains a balanced capital allocation framework Sitio expects to pay Sitio expects to a dividend of at least retain up to 65% of its Discretionary Cash Flow(1) 35% of its Discretionary Cash Flow(1) to shareholders…
Illustrative 1Q23 dividend at various commodity prices and 65% payout ratio based on reported STR 1Q23 results High margins and no capital expenditure requirements support Sitios cash flow generation and dividend paying model…
Sitios pro forma gross dividends for last 9 months exceeded that of the majority of SMID-cap E&P and minerals companies Last 9 months gross dividends vs. enterprise value(1)(2) 700 Sitios size, advantaged cost structure and 600…
Sitios governance model provides strong alignment with shareholders Board and management Incentive compensation is 100% compensation is structured to drive equity based, with emphasis on total long-term shareholder returns total…
Leading example of environmental and social responsibility ENVIRONMENTAL SOCIAL Zero environmental liabilities Employee base and Board reflective of a culture that values diversity No scope 1 emissions; scope 2 emissions are only…
Sitio has no scope 1 and minimal scope 2 emissions Sitios differentiated nature of operations results in lower scope 1 and scope 2 emissions than E&P operators(1) E&P operators bear 100% of the environmental liabilities of operations…
Sitio investment thesis Mineral and royalty interest ownership provides unique, cost advantaged oil and gas exposure and the highest free cash flow margins in the oil & gas value chain Well-positioned as a natural aggregator in a…
Appendix 24
Selected mineral and royalty company benchmarking 1Q23 Production (Mboe/d) NRAs(1) 39.3 Oil 1,203,816 Permian 35.0 34.4 Gas Non-Permian NGL 20.9 17.0 593,503 260,637 217,072 194,859 BSM VNOM STR TPL KRP KRP BSM STR VNOM…
Non-GAAP definitions and reconciliations Adjusted EBITDA ( 000) and Discretionary Cash Flow ( 000) Three Months Ended Three Months Ended March 31, March 31, 2023 2022 2023 2022 Cash flow from operations 128,825 44,603 Net income…
Non-GAAP definitions and reconciliations (contd) Cash G&A ( 000) Three Months Ended March 31, 2023 2022 General and administrative expense 11,676 4,063 Less: Non-cash share-based compensation expense 4,684 One-time transaction costs…
Contact Information Ross Wong Corporate Headquarters: 1401 Lawrence Street, Suite 1750 VP of Finance and Investor Relations Denver, CO 80202 Phone: Houston Office: (720) 640-7647 609 Main Street, Suite 3950 Email: Houston, TX 77002…
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