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    Jarrod Giroue • Stephens Inc.

    Jarrod Giroue's questions to Sitio Royalties Corp (STR) leadership

    Jarrod Giroue's questions to Sitio Royalties Corp (STR) leadership • Q1 2025

    Question

    Jarrod Giroue asked why the full-year production guidance remained unchanged despite a strong Q1 beat, implying a potential decline later in the year, and questioned if the trend of increased share repurchases as a percentage of discretionary cash flow would continue.

    Answer

    CEO Christopher Conoscenti explained that while they were thrilled with Q1 results, it is too early in the current commodity price environment to adjust full-year guidance, noting they will likely revisit it after Q2, similar to the prior year. He confirmed that their buyback program is designed to be more aggressive during price dislocations, and investors should expect that trend to continue, as evidenced by their increased repurchase activity in April.

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    Jarrod Giroue's questions to Sitio Royalties Corp (STR) leadership • Q4 2024

    Question

    Jarrod Giroue from Stephens Inc. asked about Sitio's interest in Appalachian mineral deals given the constructive natural gas outlook and inquired about the company's strategic priorities for free cash flow allocation in 2025.

    Answer

    CEO Christopher Conoscenti explained that while Sitio previously owned assets in Appalachia, they divested them to fund a high-return DJ Basin acquisition. He acknowledged the region's resource potential but highlighted unique land-related challenges that complicate future development visibility, a point elaborated on by VP of Land Britton James. Regarding cash flow, Conoscenti prioritized returning capital to shareholders (nearly $850M returned since mid-2022) and reinvesting retained capital into high-return acquisitions while maintaining a strong balance sheet and advantageous cost of capital.

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    Jarrod Giroue's questions to Sitio Royalties Corp (STR) leadership • Q3 2024

    Question

    Jarrod Giroue asked about the recent focus on DJ Basin acquisitions, questioning if deal flow was higher there or if valuations were more attractive, and also inquired about the company's capital return priorities between share buybacks and debt reduction.

    Answer

    CEO Christopher Conoscenti explained that while the Permian Basin offers the largest number of acquisition opportunities, the DJ Basin has recently presented superior rates of return, guiding their capital allocation. Regarding capital return, he reiterated the company's framework of returning at least 65% of discretionary cash flow, with 35% retained for balance sheet strength. The returned capital is split between a minimum 35% cash dividend and the remainder allocated to dividends or opportunistic share buybacks.

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