Record Production and Robust Activity
The first quarter of 2025 marked another record quarter of production for Sitio, supported by robust drilling and completion activity. Total production increased by 3% quarter-over-quarter, averaging over 42,000 BOE per day. Net wells turned in line were up 34% from the previous quarter.
Strong Financial Performance
Adjusted EBITDA was $142 million, a 1% increase from the prior quarter. Net income also rose to $26 million, representing a 36% increase over the same period. The results exceeded consensus estimates.
Strategic Acquisitions and Shareholder Returns
Over $20 million of acquisitions added 1,315 net royalty acres. The company repurchased 1.1 million shares for $22 million, equating to $0.15 per share in repurchases. A cash dividend of $0.35 per share was declared, with a total return of capital of $0.50 per share.
Lean Cost Structure and High Margins
Sitio reported a lean cost structure with adjusted EBITDA margins at 90%. The company is positioned to generate meaningful free cash flow even in lower commodity price environments.
Increased Inventory and Operator Quality
Inventory increased by 40 additional net normalized locations, a 10% quarter-over-quarter increase. The company has a diverse portfolio with operators like Exxon, Chevron, and Conoco.