STR Earnings Prediction
The chart below shows how STR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, STR sees a -0.32% change in stock price 10 days leading up to the earnings, and a -0.22% change 10 days following the report. On the earnings day itself, the stock moves by +0.06%. This data can give you a slight idea of what to expect for the next quarter's release.
STR Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
155.10M
3.85%
3.83%
Gross Margin
--
--
--
Operating Margin
39.22%
-15.98%
2.97%
Net Margin
12.46%
120.29%
-33.23%
EPS
0.09
119.57%
-40.00%
No Data Available
STR Earnings Analysis
Sitio Royalties Corp Corporation (STR.N) Earnings Conference Call
Positive
Quarterly Production Increase: Record fourth quarter production of about 41,000 barrels of oil equivalent per day, a 14% year-over-year increase.
Oil Production Achievement: Averaged over 39,000 barrels of oil equivalent for the year pro forma, for the DJ Basin acquisition, hitting the high end of full year guidance.
Cost Management Success: Expenses and taxes fell within or slightly below guidance range, showcasing effective cost management.
Automated Revenue Recovery: Refined proprietary asset management applications allowed processing of over 99% of revenue check data automatically, capturing $19 million of missing revenue payments.
High-Value Acquisitions Impact: Closed 16 high-value acquisitions throughout the year totaling more than $350 million, immediately accretive to discretionary cash flow per share.
Enhanced Financial Flexibility: Increased borrowing base to $925 million, enhancing financial flexibility and access to capital.
Shareholder Returns Overview: Returned $330 million to shareholders in 2024, representing over 70% of discretionary cash flow, with cumulative returns nearing $850 million since going public.
Q4 Adjusted EBITDA Increase: Adjusted EBITDA for Q4 was $141.2 million, 4% higher than the prior quarter, reflecting strong production and lower cash G&A costs.
Production Increase Overview: Production was up 6% quarter-over-quarter, with a 9% increase in net turned-in mine wells driven by increased operator activity.
Quarterly Cash Dividend Announcement: Declared a fourth quarter cash dividend of $0.41 per share, with total return of capital of $0.49 per share including share repurchases.
Negative
Slowing Production Growth: Production growth is slowing, with only a 3% increase expected in 2025 compared to 2024, indicating potential challenges in maintaining momentum.
Revised Financial Projections: Despite a strong year, the company had to raise guidance multiple times, suggesting initial projections may have been overly optimistic.
Debt Risk Assessment: The company reported $1.1 billion in debt, which could pose risks if market conditions change or if cash flows decline.
Acquisition Strategy Concerns: The reliance on acquisitions for growth raises concerns about sustainability, as only 10% of evaluated transactions were executed, indicating a highly selective and potentially limiting acquisition strategy.
Revenue Recovery Insights: The company captured $19 million in missing revenue payments, which, while positive, highlights potential inefficiencies in revenue management that could affect future cash flows.
Share Repurchase Impact: The share repurchase program, while returning capital to shareholders, may limit available cash for other investments or operational needs, especially with significant debt on the balance sheet.
STR FAQs
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STR Earning Call Sentiment
Sitio Royalties Corp. (STR) Q4 2024 Earnings Call Transcript
STR.N
-0.49%Positive
The earnings call indicates strong financial performance with a 14% production increase, reduced interest expenses, and significant shareholder returns. Despite some vague responses in the Q&A, the overall sentiment remains positive due to raised production guidance, accretive acquisitions, and a robust capital return strategy. The market cap suggests moderate price sensitivity, leading to a prediction of a positive stock movement of 2% to 8% over the next two weeks.
