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DENVER - Sitio Royalties Corp. (NYSE: STR), an oil and gas mineral rights company with a market capitalization of $2.34 billion, announced preliminary first-quarter results that surpassed its production targets. The company reported oil production of 18.9 million barrels per day (MBbls/d) and a total production of 42.1 million barrels of oil equivalent per day (MBoe/d), which is 2% and 6% higher than the midpoint of its full-year guidance, respectively. According to InvestingPro data, the company maintains impressive gross profit margins of 92.57%, demonstrating strong operational efficiency.
The company turned-in-line 11.1 net wells, a 34% increase from the previous quarter, leveraging its high-quality assets. Sitio’s net line of sight (LOS) wells also saw an 8% quarterly increase to 48.6, including 28.9 net spud and 19.7 net permitted wells.
Financially, Sitio closed acquisitions worth $20.6 million, adding approximately 1,350 net royalty acres (NRAs) in the DJ and Midland Basins. Additionally, the company repurchased 1.1 million shares of common stock for $22.3 million in the first quarter, with $59.6 million authorized for future repurchases as of March 31, 2025. The company maintains a healthy dividend yield of 10.61% and strong liquidity with a current ratio of 2.82, as reported by InvestingPro.
CEO Chris Conoscenti expressed satisfaction with the company’s performance, highlighting the record production levels, strong development activity, and continued share repurchases as a sign of confidence in the company’s asset quality and its operators.
Sitio plans to release its full first-quarter operating and financial results on May 7, 2025, after the New York Stock Exchange closes, followed by a conference call and webcast on May 8. Details for accessing the conference call and webcast can be found on the company’s website.
Looking ahead, Sitio executives will attend the RBC Capital Markets Global Energy, Power & Infrastructure Conference in New York on June 3-4, 2025, and the Citi Natural Resources Conference in Las Vegas on August 12-14, 2025.
This news article is based on a press release statement from Sitio Royalties Corp. and contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from expectations.
In other recent news, Sitio Royalties Corp reported its fourth-quarter earnings, revealing a mixed financial outcome. The company’s earnings per share (EPS) came in at $0.09, falling short of the forecasted $0.1217, while revenue exceeded expectations, reaching $155.09 million against a projected $147.5 million. Mizuho initiated coverage on Sitio Royalties with a Neutral rating and a price target of $22.00, citing the company’s strategic focus on mergers and acquisitions as a key factor in its growth trajectory. The firm noted Sitio Royalties’ selective approach to deals and suggested a need for larger acquisitions to gain scale in the competitive market.
In executive developments, Sitio Royalties announced that Dawn Smajstrla stepped down as Chief Accounting Officer, with CFO Carrie Osicka assuming additional responsibilities as principal accounting officer. The company emphasized that Smajstrla’s departure was not due to any disagreements related to company policies or practices. Sitio Royalties also highlighted its commitment to shareholder value, having returned $330 million to shareholders in 2024.
The company’s operational performance was robust, with adjusted EBITDA for the fourth quarter reaching $141.2 million, a 4% increase from the previous quarter. Production levels averaged nearly 41,000 barrels of oil equivalent per day, marking a 14% year-over-year increase. Sitio Royalties’ strategy and performance continue to be closely monitored by investors, especially in light of its ongoing acquisition activities and executive changes.
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