Sitio Royalies Corp. (STR): Business Model Canvas [Jan-2025 Mis à jour]

Plongez dans le monde innovant de Sitio Royalties Corp. (STR), une puissance dynamique des droits minéraux qui transforme les investissements des actifs énergétiques en une opportunité financière stratégique. En naviguant magistralement dans le paysage complexe des droits minéraux et de la génération de redevances, cette entreprise offre aux investisseurs une voie unique pour le revenu passif avec à faible risque Exposition au secteur de l'énergie. Découvrez le modèle commercial complexe qui permet aux redevances Sitio de générer des sources de revenus cohérentes tout en minimisant les complexités opérationnelles, ce qui en fait un véhicule d'investissement intrigant pour ceux qui recherchent des opportunités intelligentes et diversifiées du secteur de l'énergie.

Sitio Royalies Corp. (STR) - Modèle commercial: partenariats clés

Sociétés d'exploration du pétrole et du gaz

Sitio Royalties s'associe à plusieurs sociétés d'exploration dans les régions clés:

Entreprise partenaire	Région	Acres sous gestion
Ressources continentales	Bassin permien	45 000 acres de redevances nettes
Énergie de diamant	Bassin du Delaware	38 500 acres de redevance nette

Sociétés d'acquisition des droits minéraux

Les partenariats d'acquisition clés comprennent:

• Partners d'acquisition de l'embarrage
• Investissements d'énergie des perles
• Minéraux de foin & Redevance

Banques d'investissement et conseillers financiers

Institution financière	Service fourni	Valeur de transaction
JP Morgan Chase	Levage de capitaux	CONDITION DE CRÉDIT de 250 millions de dollars
Goldman Sachs	Avis de fusions et acquisitions	500 millions de dollars Advisory des transactions

Fournisseurs de technologies pour la gestion des terres

Détails du partenariat technologique:

• Enverus - Plateforme de gestion des terres numériques
• DrillingInfo - Analyse des données géologiques
• Welldb - Suivi des performances bien

Partenaires de conformité juridique et réglementaire

Cabinet d'avocats	Spécialisation	Retardage annuel
Vinson & Elkins LLP	Conformité réglementaire énergétique	1,2 million de dollars
Baker Botts LLP	Litige en matière de droits minéraux	$900,000

Sitio Royalies Corp. (STR) - Modèle commercial: activités clés

Acquérir et gérer les droits minéraux

Au quatrième trimestre 2023, Sitio Royalies Corp. possédait environ 25 000 acres de redevances nettes dans les bassins pétroliers et gaziers clés.

Bassin	Acres de redevance nette	Régions primaires
Bassin permien	18,500	Ouest du Texas
Bassin du Delaware	4,500	New Mexico
Eagle Ford	2,000	South Texas

Location d'intérêts minéraux pétroliers et gaziers

En 2023, Sitio a achevé des acquisitions de minéraux stratégiques totalisant 389 millions de dollars.

• Coût d'acquisition moyen par acre: 2 750 $
• Total de superficie louée: 141 600 acres minéraux nets
• Portfolio diversifié dans plusieurs bassins productifs

Évaluation et monétisation des actifs énergétiques

2023 Les mesures de production ont démontré de fortes performances d'actifs.

Métrique de production	Volume total	Production quotidienne moyenne
Huile brute	15,4 millions de barils	42 200 barils / jour
Gaz naturel	78,6 milliards de pieds cubes	215 millions de pieds cubes / jour

Gestion du portefeuille et investissements stratégiques

La stratégie d'investissement s'est concentrée sur les actifs minéraux générateurs de trésorerie de haute qualité.

• Valeur du portefeuille d'investissement total: 1,2 milliard de dollars
• Intérêt de travail moyen pondéré: 72%
• Focus opérationnelle sur les propriétés à faible teneur en espèces et générateurs de trésorerie

Génération et optimisation des revenus de redevance

2023 La performance financière a mis en évidence les capacités de génération de revenus.

Catégorie de revenus	Montant total	Croissance d'une année à l'autre
Revenus de redevances totales	475,6 millions de dollars	18.3%
Revenu net	287,3 millions de dollars	22.7%

Sitio Royalties Corp. (STR) - Modèle commercial: Ressources clés

Portefeuille étendu des droits minéraux

Au quatrième trimestre 2023, Sitio Royalties Corp. possède environ 25 000 acres minéraux nets dans le bassin du Permien. Répartition spécifique des actifs:

Région	Acres minéraux nets	Production estimée
Bassin du Delaware	15,500	~ 42 000 BOE / Day
Bassin de Midland	9,500	~ 28 000 Boe / Day

Équipe de gestion expérimentée

Composition du leadership à partir de 2024:

• PDG avec plus de 25 ans d'expérience dans l'industrie
• CFO avec des rôles exécutifs précédents dans le secteur de l'énergie
• Pureur exécutif moyen: 12,5 ans

Expertise géologique et technique avancée

Les capacités techniques comprennent:

• Équipe d'analyse géologique: 18 géologues à temps plein
• Technologies de cartographie sismique avancés
• Caractérisation du réservoir amélioré l'apprentissage de l'apprentissage

Capital financier solide

Métrique financière	Valeur 2023
Capitalisation boursière	4,2 milliards de dollars
Actif total	3,8 milliards de dollars
Espèce et équivalents	275 millions de dollars

Analyse des données robuste et systèmes de gestion des terres

Détails de l'infrastructure technologique:

• Plateforme de cartographie SIG personnalisée
• Système de suivi de production en temps réel
• Logiciel automatisé de gestion des terres

Sitio Royalies Corp. (STR) - Modèle d'entreprise: propositions de valeur

Génération des revenus passifs à travers les droits minéraux

Au quatrième trimestre 2023, Sitio Royalties Corp. a généré 209,7 millions de dollars de revenus totaux des intérêts minéraux et de redevances. La société possède environ 492 000 hectares de redevance nets dans les principaux bassins américains.

Métrique	Valeur
Acres totaux de redevance	492,000
Q4 2023 Revenu total	209,7 millions de dollars
Production quotidienne moyenne	57 000 BOE / Day

Exposition à faible risque au secteur de l'énergie

Le modèle commercial de Sitio offre aux investisseurs un risque opérationnel minimal grâce à la propriété des redevances.

• Pas de frais de forage direct ou d'exploitation
• Réduction des dépenses en capital
• Flux de trésorerie cohérents à partir de la production existante

Portefeuille diversifié des intérêts de redevance

Distribution géographique des intérêts des redevances dans les principaux bassins américains:

Bassin	Pourcentage de portefeuille
Bassin permien	68%
Eagle Ford	15%
Bassin du Delaware	12%
Autres bassins	5%

Potentiel d'appréciation des actifs à long terme

La capitalisation boursière de Sitio en février 2024: 4,2 milliards de dollars. La performance du cours des actions démontre une croissance cohérente de la valeur.

Réduction des risques opérationnels

Stratégies clés d'atténuation des risques:

• Pas de coûts opérationnels directs pour le forage
• Accords de redevance contractuels avec des opérateurs établis
• Risques minimaux de la maintenance de l'environnement et de l'équipement

Sitio Royalies Corp. (STR) - Modèle d'entreprise: relations avec les clients

Communication des investisseurs directs

Sitio Royalties Corp. maintient les canaux de communication des investisseurs directs à travers:

• Conférences de résultats trimestriels
• Réunions d'investisseurs en tête-à-tête
• Contact sur les relations avec les investisseurs: investisseur investisseur@sitioroyties.com

Information financière transparente

Métrique de rapport	Fréquence	Plate-forme
Rapports financiers trimestriels	Tous les 3 mois	Sec Edgar, site Web de l'entreprise
Rapports annuels	Annuellement	Sec Edgar, site Web de l'entreprise

Soutien aux relations avec les investisseurs

Équipe de relations avec les investisseurs dévoués Fournit un soutien complet à travers:

• Ligne téléphonique directe: (713) 242-3500
• Assistance par e-mail aux relations avec les investisseurs
• Disques de présentation des investisseurs détaillés

Plateformes d'investisseurs numériques

Plate-forme numérique	Accessibilité	Caractéristiques
Section des relations avec les investisseurs du site Web de l'entreprise	Accès en ligne 24/7	Rapports financiers, présentations
Sec Edgar Electronic Filing	Accès numérique public	Divulgations financières officielles

Mises à jour et présentations régulières des performances

Fréquence de mise à jour des performances:

• Appels de résultats trimestriels
• Présentation annuelle de la Journée des investisseurs
• Présentations de la conférence des investisseurs

Sitio Royalties Corp. (STR) - Modèle d'entreprise: canaux

Site Web de relations avec les investisseurs

Plateforme de communication numérique primaire sur www.sitioroyalties.com

Fonctionnalité de site Web	Détails
Visiteurs uniques annuels	68 423 (données 2023)
Sections de page d'investisseurs	Rapports financiers, informations sur les actions, communiqués de presse

Listes de bourses

Plates-formes d'inscription de bourses primaires

• Bourse de New York (NYSE)
• Symbole de ticker: str

Échange	Volume de trading	Prix ​​de l'action quotidien moyen
Nyse	542 000 actions (Q4 2023)	$62.37

Conférences financières

Plateformes de fiançailles des investisseurs clés

Nom de conférence	Année de participation	Réunions des investisseurs
Huile en enercom & Conférence	2023	37 réunions institutionnelles
Conférence de Wells Fargo Energy	2023	42 réunions institutionnelles

Rapports de bénéfices trimestriels

Canal de divulgation financière

Période de rapport	Revenu	Revenu net
Q4 2023	186,4 millions de dollars	74,2 millions de dollars

Présentations des investisseurs institutionnels

Stratégie de communication directe

Type de présentation	Fréquence	Investisseur Reach
Journée des investisseurs virtuels	Annuellement	214 investisseurs institutionnels (2023)
Réunions individuelles	Trimestriel	87 investisseurs institutionnels (2023)

Sitio Royalies Corp. (STR) - Modèle d'entreprise: segments de clientèle

Investisseurs institutionnels

Depuis le quatrième trimestre 2023, Sitio Royalties Corp. attire les investisseurs institutionnels avec les éléments suivants profile:

Métrique	Valeur
Propriété institutionnelle totale	84.3%
Meilleurs titulaires institutionnels	Vanguard Group, BlackRock, State Street Corporation
Taille moyenne des investissements institutionnels	12,5 millions de dollars

Fonds d'investissement du secteur de l'énergie

Caractéristiques clés des fonds d'investissement du secteur de l'énergie ciblant les redevances sitio:

• Axé sur les investissements de redevance du bassin du Permien
• Recherchez des rendements stables et à long terme des actifs énergétiques
• Les sociétés ciblent avec des portefeuilles prouvés en matière de droits minéraux

Investisseurs individuels à haute nette

Métriques du segment des investisseurs	Points de données
Montant d'investissement moyen	500 000 $ à 2,5 millions de dollars
Valeur nette des investisseurs typiques	5 millions de dollars - 50 millions de dollars
Pourcentage d'investisseurs individuels	9,7% de la base totale des actionnaires

Sociétés de capital-investissement

Engagement de capital-investissement avec les redevances sitio:

• Concentrez-vous sur les droits minéraux et les acquisitions de redevances
• Cherchez des plateformes d'investissement énergétique évolutives
• Évaluer le potentiel d'appréciation des actifs à long terme

Demandeurs de diversification de portefeuille

Métriques de diversification	Données spécifiques
Allocation de portefeuille typique	2 à 5% dans les investissements de redevance énergétique
Stratégie d'atténuation des risques	Les droits minéraux comme investissement alternatif
Horizon d'investissement	5-10 ans

Sitio Royalies Corp. (STR) - Modèle d'entreprise: Structure des coûts

Acquisition de terres et frais de location

En 2023, Sitio Royalties Corp. a déclaré des frais d'acquisition de terres et de location de 38,7 millions de dollars. Les intérêts des minéraux et des redevances de la société couvrent environ 31 000 hectares de redevances nettes dans les principales régions pétrolières et gazières.

Catégorie de dépenses	Montant ($)
Total des coûts d'acquisition de terrains	38,700,000
Coût moyen par acre de redevance nette	1,248

Surfaçon administratives et opérationnelles

Les frais généraux administratifs pour Sitio Royalies Corp. en 2023 ont totalisé 12,5 millions de dollars, ce qui représente environ 4,2% du chiffre d'affaires total.

• Compensation et avantages sociaux des employés
• Entretien et installations de bureau
• Assurance corporative
• Frais administratifs généraux

Frais juridiques et de conformité

Les dépenses juridiques et de conformité pour l'exercice 2023 étaient de 3,2 millions de dollars, couvrant les documents réglementaires, la gestion des contrats et la gouvernance d'entreprise.

Catégorie de coût de conformité	Montant ($)
Conformité réglementaire	1,600,000
Services juridiques	1,600,000

Investissements de la technologie et de la gestion des données

Les investissements technologiques en 2023 s'élevaient à 5,6 millions de dollars, se concentrant sur les technologies géologiques de gestion des données et d'exploration.

• Logiciel de cartographie SIG
• Plateformes d'analyse de données
• Outils de modélisation géologique

Frais de service professionnels

Les frais de service professionnels pour 2023 étaient de 4,3 millions de dollars, y compris les services de conseil, de comptabilité et de conseil technique.

Catégorie de service professionnel	Montant ($)
Conseil financier	1,500,000
Avis technique	1,800,000
Services comptables	1,000,000

Sitio Royalies Corp. (STR) - Modèle d'entreprise: Strots de revenus

Revenus redevances des droits minéraux

Au quatrième trimestre 2023, Sitio Royalties Corp. a généré 214,7 millions de dollars de revenus totaux des droits minéraux dans le bassin du Permien et le bassin du Delaware.

Région	Revenus de redevances	Acres sous gestion
Bassin permien	156,3 millions de dollars	51 000 acres
Bassin du Delaware	58,4 millions de dollars	23 500 acres

Location des paiements des sociétés énergétiques

En 2023, les paiements de location ont totalisé 42,6 millions de dollars auprès de diverses sociétés d'exploration énergétique.

• Taux de location moyen: 2 350 $ par acre
• Acres loués totaux: 18 200 acres
• Les principaux locataires: Chevron, Exxonmobil, Ressources naturelles pionnières

Appréciation des actifs et gains en capital

La société a réalisé 67,2 millions de dollars de gains en capital à partir de transactions d'actifs stratégiques en 2023.

Type d'actif	Gains en capital	Volume de transaction
Ventes de droits minéraux	47,5 millions de dollars	12 transactions
Intérêts de redevance	19,7 millions de dollars	8 transactions

Distributions de dividendes

Les redevances Sitio ont distribué 98,4 millions de dollars de dividendes en 2023.

• Dividende trimestriel par action: 0,82 $
• Rendement annuel de dividendes: 4,7%
• Total des actionnaires: 12 500

Ventes stratégiques des actifs et gestion du portefeuille

La société a réalisé des ventes d'actifs totalisant 112,5 millions de dollars d'optimisation de portefeuille stratégique en 2023.

Catégorie d'actifs	Vente des produits	Nombre d'actifs vendus
Intérêts minéraux non essentiels	68,3 millions de dollars	22 propriétés
Intérêts partiels de redevances	44,2 millions de dollars	15 intérêts

Sitio Royalties Corp. (STR) - Canvas Business Model: Value Propositions

Passive, non-cost-bearing exposure to oil and gas production growth.

Sitio Royalties Corp. delivered Q2 2025 production of 19.3 thousand barrels per day (MBbls/d) oil and 41.9 thousand barrels of oil equivalent per day (MBoe/d) total. This production is backed by future potential, as net line of sight (LOS) wells totaled 48.1 as of June 30, 2025. This LOS figure includes 27.6 net spud wells and 20.5 net permitted wells across its acreage position. The company continued to expand its asset base, closing $6.0 million of acquisitions in Q2 2025, which added approximately 430 net royalty acres (NRAs). Sitio Royalties Corp. has accumulated over 270,000 NRAs through the consummation of over 200 acquisitions to date.

High-margin cash flow generation with Q2 2025 Adjusted EBITDA of $125.4 million.

The core value proposition is the high-margin cash flow derived from royalty interests, evidenced by the Q2 2025 Adjusted EBITDA of $125.4 million. The realized prices supporting this cash flow for Q2 2025 were $63.03 per barrel of oil and $1.43 per Mcf of natural gas. The company maintained significant liquidity as of June 30, 2025, with $437.2 million, against total debt outstanding of $1.1 billion.

You need to see the hard numbers to grasp the cash generation power:

• Q2 2025 Net Income: $14.5 million.
• Q2 2025 Revenue: $145.66 million (surpassing consensus estimate by 6.71%).
• Total Debt Outstanding: $1.1 billion as of June 30, 2025.
• Revolving Credit Facility Availability: $436.8 million under its $925.0 million facility.

Direct return of capital to shareholders via dividends and buybacks.

Sitio Royalties Corp. has a clear objective of generating cash flow that is returned to shareholders. For the second quarter of 2025, the total return of capital was $0.42 per share of Class A Common Stock. This return was split between a declared cash dividend of $0.36 per share and stock repurchases totaling $0.06 per share (repurchasing 0.5 million shares at an average price of $16.30 per share). Since becoming public in 2022, Sitio Royalties Corp.'s cumulative return of capital to shareholders has exceeded $980 million.

Diversified risk across multiple top-tier E&P operators.

Sitio Royalties Corp. focuses on the large-scale consolidation of high-quality oil and gas mineral and royalty interests across premium basins, which inherently provides diversification. The Q2 2025 results noted that operators turned-in-line 8.7 net wells across Sitio's acreage position, indicating activity spread across its operator base. The company's strategy involves working with a diversified set of top-tier operators.

Increased scale and liquidity for investors post-Viper merger.

The all-equity merger with Viper Energy, Inc., valued at approximately $4.1 billion (including Sitio's net debt of approximately $1.1 billion as of March 31, 2025), is designed to create a leader in size and scale. The combination is expected to create operational synergies exceeding $50 million annually. Post-closing, the pro forma entity revised its Q3 2025 production guidance to reflect an average oil production increase to 54,500 - 57,500 bo/d and total production of 104,000 - 110,000 boe/d, incorporating 43 days of contributions from Sitio. This structural transformation elevates the combined entity's credit profile and index eligibility, factors that historically correlate with higher valuations.

Here's the quick math on the combined entity's expected scale:

Metric	Sitio Q2 2025 (Standalone)	Pro Forma Viper Q3 2025 Guidance (Midpoint)
Total Production (boe/d)	41,900	107,000
Oil Production (bo/d)	19,300	56,000
Annual Synergies	N/A	Exceeding $50 million

Sitio Royalties Corp. (STR) - Canvas Business Model: Customer Relationships

For Sitio Royalties Corp., the customer relationship is almost entirely defined by its status as a publicly traded entity, making the connection transactional and information-driven. The primary relationship is with its stockholders, managed through the mechanisms of stock ownership and mandatory, regular public disclosures.

Communication is formalized through the Investor Relations function. You should know that as of late 2025, following the merger, Sitio Royalties Corp. operates as a subsidiary of Viper Energy, Inc.. The Investor Relations team, previously led by figures like Alyssa Stephens, Vice President of Investor Relations, manages the flow of information to institutional holders and the broader market. Access to detailed operational and financial updates is channeled via the Investor Relations section of the corporate website, www.sitio.com.

The relationship is heavily reliant on reporting concrete operational metrics to justify the investment thesis, which centers on cash flow generation for shareholder returns. For instance, the second quarter of 2025 saw total production hit 41.9 thousand barrels of oil equivalent per day (MBoe/d).

The focus on shareholder returns is the core driver of this relationship, as Sitio Royalties Corp. explicitly states its objective is generating cash flow to return to stockholders. This commitment is quantified by the cumulative capital returned to shareholders since the company became public in 2022, which exceeded $980 million through the first quarter of 2025.

Here's a look at the key metrics driving the transactional relationship for the second quarter of 2025:

Metric Category	Data Point	Amount/Value
Operational Performance (Q2 2025)	Total Production	41.9 MBoe/d
Financial Performance (Q2 2025)	Net Income	$14.5 million
Financial Performance (Q2 2025)	Adjusted EBITDA	$125.4 million
Shareholder Return (Q2 2025)	Total Return of Capital Per Share	$0.42 per share
Shareholder Return (Q2 2025)	Cash Dividend Declared Per Share	$0.36 per share
Shareholder Return (Q2 2025)	Share Repurchases Equivalent Per Share	$0.06 per share
Shareholder Return (Q2 2025)	Total Share Repurchases	$8.9 million
Cumulative Shareholder Return	Since Inception (2022) through Q1 2025	Exceeded $980 million

The structure of shareholder returns in the second quarter of 2025 clearly illustrates the direct transactional relationship:

• Cash dividend declared for Q2 2025 was $0.36 per share, payable August 19, 2025.
• Share repurchases during Q2 2025 totaled 0.5 million shares, equivalent to $0.06 per share of capital returned.
• The total capital returned to shareholders for the second quarter of 2025 was approximately $64 million.
• The company's focus remains on generating cash flow from operations to fund these returns and reinvestment.

To be defintely clear, the relationship is one of capital provider (the shareholder) to capital user (Sitio Royalties Corp.), with communication focused on performance metrics and capital allocation decisions, especially given the pending merger with Viper Energy, Inc.. Finance: draft 13-week cash view by Friday.

Sitio Royalties Corp. (STR) - Canvas Business Model: Channels

You're looking at how Sitio Royalties Corp. communicates its value and performance to the outside world, which is crucial for a publicly traded entity, even one undergoing a major transition like the Viper Energy merger.

New York Stock Exchange (NYSE: STR) for public equity investors

The primary channel for public equity investors was the New York Stock Exchange (NYSE), where Sitio Royalties Corp. traded under the ticker STR. However, this channel is now historical for the entity as a standalone public company. Stockholders approved the merger with Viper Energy, Inc., which was expected to close during the third quarter of 2025, leading to the delisting of STR shares. Before this event, the stock traded within a 52-Week Range of $14.58 to $25.52, with a previous close noted around $18.30 in August 2025.

Direct communication via SEC filings and earnings releases

Sitio Royalties Corp. used mandatory regulatory filings as a core channel for detailed financial transparency. For instance, the Form DEF 14A was filed on March 28, 2025, relating to the Annual Meeting on May 13, 2025. The company also issued a Form 8-K on April 15, 2025, reporting selected key operating and financial metrics for the quarter ended March 31, 2025. The Investor Relations contact for these matters was Alyssa Stephens, Vice President of Investor Relations, reachable at IR@sitio.com. The principal executive offices are located at 1401 Lawrence Street, Suite 1750, Denver, CO 80202.

Investor presentations and non-deal roadshows

The company actively engaged the investment community through prepared materials and calls. The May 2025 Investor Presentation provided data as of March 31, 2025, detailing metrics like Net Royalty Acres (NRA) and production figures. The First Quarter 2025 Earnings Call took place on May 8, 2025, where they reported Q1 2025 Adjusted EBITDA of $142.2 million and a total return of capital to shareholders of $0.50 per share. Following the merger announcement, the Second Quarter 2025 Earnings Release on August 4, 2025, noted that the company had discontinued providing forward-looking guidance due to the pending transaction. The company also rolled out an inaugural quarterly preview format starting April 15, 2025, to accelerate data access.

Financial news and analyst coverage (e.g., Seeking Alpha)

Third-party validation and news outlets serve as critical amplifiers for Sitio Royalties Corp.'s story. Seeking Alpha provided coverage, including a Q2 2025 Earnings Preview which cited consensus estimates of $0.06 EPS and $141M Revenue. Prior to the merger announcement, analyst consensus from 6 analysts was a 'Buy' rating with a 12-month price target of $26.8. The company emphasized its strong financial positioning, noting that its LTM Adjusted EBITDA margins were 90%, more than 3x the per-unit free cash flow margins of the average E&P peer at the time.

Here's a look at some key investor-facing metrics around the time of the Q2 2025 reporting:

Metric	Value	Reporting Period/Date
Q2 2025 Adjusted EBITDA	$125.4 million	As of June 30, 2025
Q2 2025 Total Return of Capital per Share	$0.42	Q2 2025
Total Debt Outstanding (Principal Value)	$1.1 billion	As of June 30, 2025
Liquidity	$437.2 million	As of June 30, 2025
Q1 2025 Net Income	$26.3 million	Q1 2025
Extended Share Repurchase Authorization	$300 million (additional)	Announced May 7, 2025

The flow of information to stakeholders relied on a mix of mandatory disclosures and proactive outreach:

• NYSE Trading: Primary listing channel until Q3 2025 merger close.
• SEC Filings: Quarterly 10-Q, Annual 10-K, and 8-K reports for material events.
• Quarterly Previews: New channel started April 15, 2025, for faster operational updates.
• Earnings Calls: Hosted calls, such as the one on May 8, 2025, for Q1 results.
• Investor Relations Website: Repository for SEC filings and supplemental slides, like the May 2025 Investor Presentation.
• Analyst Coverage: Reports from firms covering the royalty sector, with consensus ratings like 'Buy'.

Finance: update the shareholder return section of the pro-forma model to reflect the final $0.36 Q2 dividend declared before the merger close by Monday.

Sitio Royalties Corp. (STR) - Canvas Business Model: Customer Segments

You're looking at who Sitio Royalties Corp. (STR) served right up until the merger with Viper Energy, Inc. closed in August 2025. Their customer base was really two-sided: those providing the assets (sellers) and those providing the capital (investors).

Institutional Investors seeking energy exposure with low operating risk

This group was the backbone of Sitio Royalties Corp.'s ownership structure. Honestly, these large allocators look for high-margin, low-touch energy exposure, and Sitio's model fit that bill perfectly. As of the Q2 2025 earnings report, 89.47% of the company was held by institutions. Major names like Blackstone, Desert Royalty Company, Kimmeridge, and Oaktree Capital Management were among the key holders. The appeal was the durability of the cash flow, evidenced by the trailing twelve months (LTM) Adjusted EBITDA margin hitting 90% in Q1 2025. This low operating risk profile allowed them to generate substantial returns; the cumulative return of capital to shareholders since the June 2022 IPO exceeded $980 million by the end of Q2 2025.

Here's a snapshot of the capital return focus for this segment:

• Q1 2025 total capital return: $0.50 per share.
• Q2 2025 total capital return: $0.42 per share.
• Q1 2025 Adjusted EBITDA: $142.2 million.
• Net debt as of March 31, 2025: approximately $1.1 billion.

Individual Retail Investors focused on yield and capital returns

While institutions held the majority, individual investors were definitely targeted through the yield component of the capital return framework. Sitio was defintely a shareholder returns-driven company. These retail participants were primarily interested in the direct cash distributions. For instance, the Q1 2025 return of capital included a $0.35 per share cash dividend component. The company's strategy was to provide a durable cash flow profile that supported these payouts, which is why they kept their Cash G&A expenses well-controlled, at $2.27 per Boe in Q1 2025.

Private mineral owners selling fragmented royalty interests

This segment represents the supply side of Sitio's acquisition engine. Sitio's entire business was built on consolidating these fragmented interests across premium basins like the Permian. As of March 31, 2025, Sitio had executed over 200 acquisitions, accumulating around 34,300 net royalty acres (NRAs). The activity continued into Q2 2025, where they closed $6.0 million of acquisitions, adding approximately 430 NRAs. These sellers were motivated by the desire to cash out on their asset's current production value or to eliminate future drilling risk. The value they received was benchmarked against industry standards for royalty rates, which commonly range from 12.5% up to around 25% in highly competitive areas. For producing royalties, a common rule of thumb for valuation was approximately 3 years to 6 years of average monthly income.

Here's how Sitio's asset base looked just before the merger:

Metric	Value as of June 30, 2025	Source Context
Total Net Royalty Acres (NRAs)	Data not fully aggregated post-merger announcement	Prior data point: 34,300 NRAs as of March 31, 2025
Net Wells Turned-In-Line (Q2 2025)	8.7 net wells
Net Line-of-Sight (LOS) Wells	48.1 total (27.6 spud, 20.5 permitted)
Q2 2025 Acquisition Spend	$6.0 million

Investment banks and M&A advisors facilitating acquisitions

This group wasn't a direct customer in the traditional sense, but they were critical facilitators of the company's ultimate value realization. The most significant event for this segment was the announced acquisition by Viper Energy, Inc., a Diamondback Energy subsidiary. The deal, announced June 3, 2025, was valued at $4.1 billion. The transaction structure involved an exchange ratio of 0.4855 shares of pro forma Viper for every share of Sitio Class A stock, implying a value of $19.41 per share, which represented a 12.07% premium to the last close. J.P. Morgan Securities provided the financial advice to Sitio Royalties on this transaction. The successful closing in August 2025 created a much larger entity, combining assets to hold approximately 85,700 net royalty acres in the Permian Basin.

Sitio Royalties Corp. (STR) - Canvas Business Model: Cost Structure

The Cost Structure for Sitio Royalties Corp. is heavily influenced by its asset-light, non-cost-bearing royalty model, which is structurally advantaged in the energy sector. This structure means no development capital expenses and no field staff or lease operating expenses are incurred, as these costs fall to the operators.

The primary cost components are corporate overhead, financing costs, and the capital deployed for acquiring new Net Royalty Acres (NRAs). The company's lean structure allowed for an LTM (Last Twelve Months) Adjusted EBITDA margin of 90%.

General and administrative (G&A) expenses, which are defintely low per unit, show minimal growth despite asset additions, indicating strong scalability. Cash G&A expenses per unit of production have been reduced by 70% since 2019 while acreage quintupled.

The financing cost component is tied to the company's debt load. As of March 31, 2025, and again as of June 30, 2025, Sitio Royalties Corp. had total debt outstanding of approximately $1.1 billion. This debt level drives the interest expense, which is a key cash outflow before taxes.

Acquisition costs for new Net Royalty Acres (NRAs) are a discretionary, yet significant, cost. The company remained active in M&A through the first half of 2025.

The full year 2025 estimate for Cash taxes reflects anticipated commodity prices. At the midpoint, the current estimated cash taxes for the full year 2025 are $23 million.

Here's a look at the key quarterly cash cost components leading up to the Viper Energy, Inc. merger announcement:

Cost Component (in thousands)	Three Months Ended March 31, 2025	Three Months Ended June 30, 2025
Cash G&A	$8,604	$8,871
Cash and Accrued Interest Expense	$21,873	$21,637
Estimated Cash Taxes	$5,750	$5,267

The capital deployed for growth through acquisitions in the first half of 2025 included:

• First Quarter 2025: Over $20 million for accretive acquisitions, adding 1,350 net royalty acres.
• Second Quarter 2025: $6.0 million for acquisitions, adding approximately 430 net royalty acres.

The company's total debt as of March 31, 2025, was comprised of:

• Drawn on Revolving Credit Facility: $486.2 million.
• Senior Unsecured Notes: $600.0 million.

This debt level was a key factor in the subsequent $4.1 billion all-equity transaction valuation with Viper Energy, Inc., which included the assumption of Sitio's approximately $1.1 billion net debt.

Sitio Royalties Corp. (STR) - Canvas Business Model: Revenue Streams

You're looking at how Sitio Royalties Corp. converts its mineral and royalty interests into actual cash flow, which is the core of its revenue engine. The business model is straightforward: Sitio owns the right to a share of the revenue from oil, natural gas, and natural gas liquids (NGLs) produced by operators on its acreage, but it bears none of the drilling or operating costs. This means revenue is directly tied to commodity prices and production volumes.

For the second quarter of 2025, Sitio Royalties Corp. reported a consolidated net income of $14.5 million. This profitability is a direct result of the underlying commodity sales and the company's non-cost-bearing structure.

The primary revenue component is the Oil, natural gas, and NGL royalty sales from producing wells. For the quarter ended June 2025, Sitio Royalties posted revenues of $145.66 million, surpassing the Zacks Consensus Estimate by 6.71%. This revenue stream is highly sensitive to market pricing, as evidenced by the realized prices for the period:

Commodity Metric	Unhedged Realized Price	Hedged Realized Price
Oil (per barrel)	$63.03	$63.65
Natural Gas (per Mcf)	$1.43	$1.45
NGLs (per barrel)	$22.57	$22.57
Total (per Boe)	$36.95	$37.28

The impact of hedging is visible in the realized prices. Sitio Royalties received $1.3 million in net cash settlements from commodity hedging contracts during Q2 2025. This is a specific, non-production-based cash flow element that smooths out commodity price volatility.

Cash flow generation is key to the shareholder returns objective. For the second quarter of 2025, the Discretionary Cash Flow (DCF) calculation resulted in $98,515 thousand (or $98.5 million). To be fair, Sitio has discontinued providing forward guidance and long-term outlook information due to the pending merger with Viper Energy, Inc., which was expected to close in the third quarter of 2025. Therefore, the projected 2025 Discretionary Cash Flow figure of $384 million is not confirmed in the latest reports.

The revenue streams support the capital return framework, which Sitio emphasizes. The total return of capital declared for Q2 2025 was $0.42 per share of Class A Common Stock, comprised of:

• Cash dividend of $0.36 per share.
• Stock repurchases equivalent to $0.06 per share.

The underlying production volumes directly drive the top-line revenue. Q2 2025 production totaled 19.3 thousand barrels per day (MBbls/d) of oil and 41.9 thousand barrels of oil equivalent per day (MBoe/d) total. This production base, combined with the realized commodity prices, dictates the scale of the royalty sales.