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 -0.90% change in stock price 10 days leading up to the earnings, and a -0.23% change 10 days following the report. On the earnings day itself, the stock moves by +0.08%. 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
149.38M
-4.68%
-11.38%
Gross Margin
--
--
--
Operating Margin
38.09%
-6.85%
-7.77%
Net Margin
18.66%
10266.67%
8.30%
EPS
0.15
--
0.00%
No Data Available
STR Earnings Analysis
Sitio Royalties Corp. Corporation (STR.N) Earnings Conference Call
Positive
Production Rate Surge: 1. Strong Production Growth: Sitio achieved a production rate of nearly 38,600 BOEs per day in Q3 2024, with half of that being oil, exceeding expectations and enhancing the 2024 outlook.
Strategic Acquisitions Impact: 2. Successful Acquisitions: The company closed five new acquisitions totaling approximately $22 million, adding over 2,300 NRAs in the DJ Basin, which supports future production growth.
Debt Reduction Achievements: 3. Debt Reduction: Sitio reduced total debt by nearly $60 million over the last quarter, contributing to a healthier balance sheet and lower interest expenses on a per barrel basis.
Capital Return Commitment: 4. Significant Return of Capital: Since becoming public in June 2022, Sitio has returned over $765 million to shareholders through dividends and share buybacks, demonstrating a strong commitment to capital return.
Line of Sight Wells Growth: 5. Increased Line of Sight Wells: The company reported a solid 11% increase in net line of sight wells compared to the previous quarter, indicating strong future operator activity and confidence in production sustainability.
Negative
Cash Flow Decline: 1. Declining Cash Flow: Sitio reported a decrease in free cash flow, with a cash flow from operations of $30 million, down from $45 million in the previous quarter.
Debt Management Challenges: 2. Increased Debt Levels: Despite reducing total debt by nearly $60 million, the company still carries a significant debt load, with total debt remaining at $400 million, indicating ongoing leverage concerns.
Modest Production Increase: 3. Lower Production Guidance: The company raised its production guidance by only 1,000 BOEs per day, which is a modest increase compared to previous quarters, suggesting potential stagnation in growth.
Rising Operating Costs: 4. High Operating Costs: The average D&C costs per foot for new wells have increased, with Civitas reporting 5% higher costs for new lateral wells compared to previous averages, impacting overall profitability.
Share Buyback Reduction: 5. Reduced Share Buybacks: Sitio's share buyback program saw a reduction, with only $29 million spent in the last quarter, down from $50 million in previous quarters, indicating a tightening of capital allocation.
STR FAQs
How does STR typically perform around its earnings report dates?
Is Sitio Royalties Corp. (STR) Q3 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
STR Earning Call Sentiment
Sitio Royalties Corp. (STR) Q3 2024 Earnings Call Transcript
STR.N
0.15%Positive
The earnings call summary reveals strong financial metrics such as record high EBITDA, reduced debt, and increased production volumes. Shareholder returns are emphasized with significant capital return and share buybacks. The Q&A section highlights robust M&A activity and strategic focus on high-return basins. Despite some concerns about operational efficiency and reliance on operators, the overall sentiment is positive, particularly with optimistic guidance and increased production. The market cap suggests moderate sensitivity, leading to a predicted stock price movement of 2% to 8% over the next two weeks.
