Sitio Royalties Reports Second Quarter 2025 Operational and Financial Results

Sitio Royalties Corp. (NYSE:STR) ("Sitio," "STR" or the "Company") today announced second quarter 2025 operational and financial results. Unless the context clearly indicates otherwise, references to "we," "our," "us" or similar terms refer to Sitio and its subsidiaries.

SECOND QUARTER 2025 HIGHLIGHTS

• Second quarter 2025 production of 19.3 thousand barrels per day ("MBbls/d") oil and 41.9 thousand barrels of oil equivalent per day ("MBoe/d") total
• Second quarter 2025 net income of $14.5 million and Adjusted EBITDA⁽¹⁾ of $125.4 million
• Operators turned-in-line 8.7 net wells across Sitio's acreage position
• Net line of sight ("LOS") wells totaled 48.1 as of June 30, 2025, including 27.6 net spud wells and 20.5 net permitted wells
• Closed $6.0 million of acquisitions located in the Delaware and DJ Basins, adding approximately 430 net royalty acres ("NRAs")
• Repurchased $8.9 million, or 0.5 million shares, of Class A common stock in the second quarter 2025
• Second quarter 2025 total return of capital of $0.42 per share of Class A Common Stock, comprised of a $0.36 per share declared cash dividend (payable August 19, 2025), and $0.06 per share of stock repurchases

PROPOSED MERGER WITH VIPER ENERGY, INC.

As previously announced on June 3, 2025, Sitio and Viper Energy, Inc. ("Viper") entered into a definitive merger agreement, pursuant to which Viper will acquire Sitio in an all-stock transaction. Following the approval of the Sitio stockholders and the satisfaction of certain other closing conditions, the merger is expected to close during the third quarter of 2025.

In light of the pending merger with Viper, Sitio has discontinued providing guidance and long-term outlook information regarding its results of operations and does not intend to update the previously issued guidance and long-term outlook information, including any such information provided in the first quarter earnings release, as those forward-looking statements were estimates of management only as of the date provided and were subject to the specific risks and uncertainties that accompanied such forward-looking statements. As a result of the pending merger, there will not be an investor conference call.

SECOND QUARTER 2025 FINANCIAL RESULTS

Sitio's second quarter 2025 average unhedged realized prices including all expected quality, transportation and demand adjustments were $63.03 per barrel of oil, $1.43 per Mcf of natural gas and $22.57 per barrel of natural gas liquids, for a total price of $36.95 per Boe. During the second quarter of 2025, the Company received $1.3 million in net cash settlements for commodity derivative contracts and as a result, average hedged realized prices were $63.65 per barrel of oil, $1.45 per Mcf of natural gas and $22.57 per barrel of natural gas liquids, for a total price of $37.28 per Boe.

For the second quarter of 2025, consolidated net income was $14.5 million and Adjusted EBITDA⁽¹⁾ was $125.4 million.

As of June 30, 2025, the Company had $1.1 billion principal value of total debt outstanding (comprised of $488.2 million drawn on Sitio's revolving credit facility and $600.0 million of senior unsecured notes) and liquidity of $437.2 million, including $0.4 million of cash and $436.8 million of remaining availability under its $925.0 million credit facility.

RETURN OF CAPITAL FRAMEWORK

Since becoming public in 2022, Sitio's cumulative return of capital to shareholders has exceeded $980 million, including cash dividends and share repurchases, with approximately $64 million attributable to the second quarter of 2025.

Sitio's Board of Directors declared a cash dividend of $0.36 per share of Class A Common Stock with respect to the second quarter of 2025. The dividend is payable on August 19, 2025 to the stockholders of record at the close of business on August 14, 2025. During the second quarter of 2025, the Company repurchased an aggregate 0.5 million shares of Class A Common Stock at an average price of $16.30 per share, or an equivalent $0.06 per share of capital. In total, Sitio will return an aggregate $0.42 per share of capital for the second quarter of 2025.

OPERATOR ACTIVITY

The following table summarizes Sitio's net royalty acres, net average daily production and net LOS wells by basin as of June 30, 2025.

FINANCIAL RESULTS

Non-GAAP financial measures

Adjusted EBITDA, Discretionary Cash Flow and Cash G&A are non-GAAP supplemental financial measures used by our management and by external users of our financial statements such as investors, research analysts and others to assess the financial performance of our assets and their ability to sustain dividends and/or share repurchases over the long term without regard to financing methods, capital structure or historical cost basis. Sitio believes that these non-GAAP financial measures provide useful information to Sitio's management and external users because they allow for a comparison of operating performance on a consistent basis across periods.

We define Adjusted EBITDA as net income (loss) plus (a) interest expense, (b) provisions for income taxes, (c) depreciation, depletion and amortization, (d) non-cash share-based compensation expense, (e) impairment of oil and natural gas properties, (f) gains or losses on unsettled derivative instruments, (g) loss on debt extinguishment, (h) merger-related transaction costs (i) write off of financing costs and (j) loss on sale of oil and gas properties.

We define Discretionary Cash Flow as Adjusted EBITDA, less cash and accrued interest expense and estimated cash taxes.

We define Cash G&A as general and administrative expense less (a) non-cash share-based compensation expense, (b) merger-related transaction costs and (c) rental income.

Merger-related transaction costs for the three months ended June 30, 2024 have been recast to conform to the current period presentation.

These non-GAAP financial measures do not represent and should not be considered an alternative to, or more meaningful than, their most directly comparable GAAP financial measures or any other measure of financial performance presented in accordance with GAAP as measures of our financial performance. Non-GAAP financial measures have important limitations as analytical tools because they exclude some but not all items that affect the most directly comparable GAAP financial measure. Our computations of Adjusted EBITDA, Discretionary Cash Flow and Cash G&A may differ from computations of similarly titled measures of other companies.

The following table presents a reconciliation of Adjusted EBITDA to the most directly comparable GAAP financial measure for the period indicated (in thousands).

The following table presents a reconciliation of Discretionary Cash Flow to the most directly comparable GAAP financial measure for the period indicated (in thousands).

The following table presents a reconciliation of Cash G&A to the most directly comparable GAAP financial measure for the period indicated (in thousands).

About Sitio Royalties Corp.

Sitio is a shareholder returns-driven company focused on large-scale consolidation of high-quality oil & gas mineral and royalty interests across premium basins, with a diversified set of top-tier operators. With a clear objective of generating cash flow from operations that can be returned to stockholders and reinvested, Sitio has accumulated over 275,000 NRAs through the consummation of over 200 acquisitions, as of June 30, 2025. More information about Sitio is available at www.sitio.com.

Forward-Looking Statements

This news release contains statements that may constitute "forward-looking statements" for purposes of federal securities laws. Forward-looking statements include, but are not limited to, statements that refer to projections, forecasts, or other characterizations of future events or circumstances, including any underlying assumptions. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intends," "may," "might," "plan," "seeks," "possible," "potential," "predict," "project," "prospects," "guidance," "outlook," "should," "would," "will," and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These statements include, but are not limited to, statements about the proposed merger, the likelihood that the conditions to the merger will be satisfied on a timely basis or at all, Viper's or the Company's ability to consummate the merger at any time or at all, the Company's expected results of operations, cash flows, financial position and future dividends; as well as certain future plans, expectations and objectives for the Company's operations, including statements about our return of capital framework, our share repurchase program and its intended benefits, financial and operational guidance, strategy, synergies, certain levels of production, future operations, acquisitions, financial position, prospects, and plans. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties that could cause our actual results, performance, and financial condition to differ materially from our expectations and predictions. Factors that could materially impact such forward-looking statements include, but are not limited to: commodity price volatility, the global economic uncertainty and market volatility related to changes in U.S. trade policy, including the imposition of tariffs, slowing growth and demand, especially from China, the conflict in Ukraine and associated economic sanctions on Russia, the conflict in the Israel-Gaza region and continued hostilities in the Middle East including heightened tensions and conflict with Iran, Lebanon and Yemen, actions by OPEC+ and others, including any removal of oil production curtailments or the duration thereof, increased global oil, natural gas and natural gas liquids supply and those other factors discussed or referenced in the "Risk Factors" section of Sitio's Annual Report on Form 10-K for the year ended December 31, 2024, Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, and other publicly filed documents with the SEC. Any forward-looking statement made in this news release speaks only as of the date on which it is made. Factors or events that could cause actual results to differ may emerge from time to time, and it is not possible to predict all of them. Sitio undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future development, or otherwise, except as may be required by law.

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