Sitio RoyaltiesNYSE: STR

Sitio acquired a DJ Basin asset for $150 million, which was valued at a 4.0x multiple of its cash flow. The reason for the low purchase price multiple seems to be the asset's high base decline rate and limited inventory. Sitio is expected to generate $2.75 per share in free cash flow by 2024.

Sitio Royalties (STR) has been upgraded to a Zacks Rank #2 (Buy), indicating increased confidence in the company's earnings potential, which could lead to a rise in the stock price in the short term.

DENVER--(BUSINESS WIRE)--Sitio Royalties Corp. (NYSE: STR) (“Sitio”) today announced that it will report operating and financial results for the first quarter of 2024 on Wednesday, May 8, 2024, after the close of trading on the New York Stock Exchange. Sitio will host a conference call at 8:30 a.m. Eastern on Thursday, May 9, 2024 to discuss its first quarter 2024 operating and financial results. Participants can access the call by dialing 1-833-470-1428 in the United States, or 1-404-975-4839.

SITIO ROYALTIES (STR) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.

While the top- and bottom-line numbers for Sitio Royalties (STR) give a sense of how the business performed in the quarter ended December 2023, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.

Sitio Royalties Corp. (STR) Q4 2023 Earnings Call Transcript

Sitio Royalties (STR) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

Sitio Royalties has taken steps to reduce debt and increase cash flows, including refinancing high-interest senior notes and selling off assets in the Appalachia and Anadarko Basins. These actions will save the company over $20 million annually in interest expenses, which will be used for additional distributions and debt repayment. Strong permitting activity in the DJ basin will provide additional avenues for revenue growth.

Sitio Royalties: Increased Payout Ratio Gets Closer After Recent Divestiture