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 recent highlights Pro forma in-period average quarterly production volume of 36,654 boe/d (50% oil); as-reported volume of 36,900 boe/d (48% oil) Record high 50.9 net line-of-sight wells as of 9/30/23, of which 82% are in the…
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…
3Q23 results vs. prior 2H23 guidance As reported Prior 2H23 3Q23 Guidance Average daily production (boe/d) Reported / In-period (1) 36,900 / 36,354 35,000 37,000 Average daily production (% oil) Reported / In-period (1) 48% / 50%…
2H23 financial and operational guidance Production % Oil Full Year 2023 Cash G&A(1) 35,000 37,000 boe/d 49% 51% 27.0 28.0 mm G&T (/boe)(2) Production taxes Cash tax rate (% of revenue) 1.25 1.50 6% 8% 2% 4% (1) Full Year…
Selected 3Q23 metrics for retained and divested assets On November 3, 2023, Sitio entered into a definitive agreement to sell its Appalachia and Anadarko Basin assets for 117.5mm; the table below shows how much each asset contributed to…
Sitio is able to drive down Cash G&A / boe with each large acquisition Significant Cash G&A (/boe) reduction while well count grows 12x (NRAs) (Cash G&A /boe) 300,000 7.00 275,047 275,140 6.01 260,607 260,637 6.00 250,000 5.10…
Sitio line-of-sight wells by operator Other 29.9 21.0 Other Net Spuds Net Permits 9 Note: Based on Sitios 9/30/23 well list. All wells normalized to 5,000. CVX and XOM pro forma for announced acquisitions
Spud and permit activity on Sitios existing asset base provides visibility into near-term production Sitio pro forma total line-of-sight development 285.2 21.0 29.9 168.5 50.9 line-of-sight wells on Sitio acreage 336.1…
Sitio NRAs with production and wells by operator type NRAs with producing horizontal wells PDP horizontal wells 3% 3% 6% 2% Operator type 18% 30% Large-cap 32% 19% Small private Mid-cap Major 23% Large private 20% Small-cap…
Sitio has a proven track record of consolidation over an extended time period Change in NRAs by public mineral peers Sitio NRAs since inception: 192 acquisitions to date since year end 2018(1) (Cumulative NRAs) (NRAs acquired by…
Sitio has exposure to approximately 35% of the acreage in the Midland and Delaware Basins Sitios remaining Permian Basin inventory by drilling spacing unit (DSU) Sitio has over 4.0 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 3,950 5,600 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 in millions Generate robust free cash flow As reported As of 9/30/23 11/3/23 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 9/30/23 Utilization of hedging as a…
Sitio maintains a balanced capital allocation framework Sitio expects to Sitio expects to return at least retain up to 65% of its Discretionary Cash Flow(1) 35% of its Discretionary Cash Flow(1) to shareholders Management…
Illustrative 3Q23 dividend at various commodity prices and 65% payout ratio based on reported STR 3Q23 results Illustrative STR 3Q23 dividend at various commodity prices 0.59 0.54 0.49 0.44 0.39 Commodity price change: -20%…
Sitios governance model provides strong alignment with shareholders Board and management Incentive compensation is 100% compensation is structured to drive S equity based, with emphasis on total long-term shareholder returns ER M…
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 3Q23 Production (Mboe/d)(1) NRAs(2) 1,259,848 43.2 42.6 Permian 36.9 NGL Non-Permian Gas 23.5 Oil 21.8 593,503 276,000 275,140 194,859 VNOM BSM STR KRP TPL KRP BSM VNOM STR…
Non-GAAP definitions and reconciliations Adjusted EBITDA ( 000) and Discretionary Cash Flow ( 000) Three Months Ended Three Months Ended September 30, September 30, 2023 2022 2023 2022 Net income 275 69,011 Cash flow from operations…
Non-GAAP definitions and reconciliations (contd) Cash G&A ( 000) Three Months Ended September 30, 2023 2022 General and administrative expense 12,044 13,381 Less: Non-cash share-based compensation expense 4,368 3,969 Merger-related…
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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