Overview

* Sitio Royalties ( STR ) Q2 net income of $14.5 mln beats analyst expectations

* Adjusted EBITDA for Q2 was $125.4 mln, exceeding analyst estimates

* Company repurchased $8.9 mln in stock and declared $0.36 dividend per share

Outlook

* Sitio discontinues guidance due to pending merger with Viper Energy

* Merger with Viper expected to close in Q3 2025

Result Drivers

* PRODUCTION MAINTENANCE - Maintained production levels with 19.3 MBbls/d oil and 41.9 MBoe/d total

* ACQUISITIONS - Closed $6.0 mln of acquisitions in Delaware and DJ Basins, adding 430 net royalty acres

* CAPITAL RETURN - Returned $0.42 per share through dividends and stock repurchases

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Net Beat $14.50 $7.25

Income mln mln (4

Analysts

)

Q2 Beat $125.40 $117.30

Adjusted mln mln (6

EBITDA Analysts

)

Q2 $0.36

Dividend

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

* Wall Street's median 12-month price target for Sitio Royalties Corp ( STR ) is $24.50, about 28% above its August 1 closing price of $17.64

* The stock recently traded at 50 times the next 12-month earnings vs. a P/E of 62 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)