Sitio Royalties Corp. (STR): Modelo de negócios Canvas [Jan-2025 Atualizado]

Mergulhe no mundo inovador da Sitio Royalties Corp. (STR), uma potência dinâmica dos direitos minerais que transforma os investimentos em ativos energéticos em uma oportunidade financeira estratégica. Na navegação magistral do cenário complexo dos direitos minerais e da geração de royalties, esta empresa oferece aos investidores um caminho único para a renda passiva com baixo risco exposição ao setor de energia. Descubra o intrincado modelo de negócios que permite que os royalties de Sitio gerem fluxos de receita consistentes, minimizando as complexidades operacionais, tornando -o um veículo de investimento intrigante para quem procura oportunidades inteligentes e diversificadas do setor de energia.

Sitio Royalties Corp. (STR) - Modelo de negócios: Parcerias -chave

Empresas de exploração de petróleo e gás

O Sitio Royalties faz parceria com várias empresas de exploração em regiões -chave:

Empresa parceira	Região	Acres sob gestão
Recursos continentais	Bacia do Permiano	45.000 acres de royalties líquidos
Diamondback Energy	Bacia de Delaware	38.500 acres de royalties líquidos

Empresas de aquisição de direitos minerais

As principais parcerias de aquisição incluem:

• Parceiros de aquisição de cravo
• PEARL Energy Investments
• Haymaker Minerals & Royalties

Bancos de investimento e consultores financeiros

Instituição financeira	Serviço prestado	Valor da transação
JP Morgan Chase	Capital capital	Linha de crédito de US $ 250 milhões
Goldman Sachs	Aviso de M&A	Aviso de transação de US $ 500 milhões

Provedores de tecnologia para gerenciamento de terras

Detalhes da parceria de tecnologia:

• Enverus - plataforma de gerenciamento de terra digital
• DrillingInfo - análise de dados geológicos
• WELLDB - Rastreamento de desempenho bem

Parceiros de conformidade legais e regulatórios

Escritório de advocacia	Especialização	Retentor anual
Vinson & Elkins LLP	Conformidade regulatória energética	US $ 1,2 milhão
Baker Botts LLP	Litígios de direitos minerais	$900,000

Sitio Royalties Corp. (STR) - Modelo de negócios: Atividades -chave

Adquirir e gerenciar direitos minerais

A partir do quarto trimestre de 2023, a Sitio Royalties Corp. possuía aproximadamente 25.000 acres de royalties líquidos nas principais bacias de petróleo e gás.

Bacia	Rede Royalty Acres	Regiões primárias
Bacia do Permiano	18,500	Oeste do Texas
Bacia de Delaware	4,500	Novo México
Eagle Ford	2,000	South Texas

Leasing Oil and Gas Mineral Interesses

Em 2023, o Sitio concluiu a aquisições minerais estratégicas, totalizando US $ 389 milhões.

• Custo médio de aquisição por acres: US $ 2.750
• Acenda arrendada total: 141.600 acres minerais líquidos
• Portfólio diversificado em várias bacias produtivas

Avaliar e monetizar ativos de energia

2023 As métricas de produção demonstraram forte desempenho de ativos.

Métrica de produção	Volume total	Produção diária média
Petróleo bruto	15,4 milhões de barris	42.200 barris/dia
Gás natural	78,6 bilhões de pés cúbicos	215 milhões de pés cúbicos/dia

Gerenciamento de portfólio e investimentos estratégicos

A estratégia de investimento focada em ativos minerais gerantes de alta qualidade.

• Valor da carteira total de investimentos: US $ 1,2 bilhão
• Juros de trabalho médios ponderados: 72%
• Foco operacional em propriedades de baixa decoração e generadores de caixa

Geração de receita de royalties e otimização

2023 O desempenho financeiro destacou os recursos de geração de receita.

Categoria de receita	Montante total	Crescimento ano a ano
Receita total de royalties	US $ 475,6 milhões	18.3%
Resultado líquido	US $ 287,3 milhões	22.7%

Sitio Royalties Corp. (STR) - Modelo de negócios: Recursos -chave

Extenso portfólio de direitos minerais

A partir do quarto trimestre 2023, a Sitio Royalties Corp. possui aproximadamente 25.000 acres minerais líquidos na bacia do Permiano. Redução específica de ativos:

Região	Acres minerais líquidos	Produção estimada
Bacia de Delaware	15,500	~ 42.000 boe/dia
Bacia Midland	9,500	~ 28.000 boe/dia

Equipe de gerenciamento experiente

Composição de liderança em 2024:

• CEO com mais de 25 anos de experiência no setor
• CFO com funções executivas anteriores no setor de energia
• PRODIÇÃO EXECUTIVO Média: 12,5 anos

Especialização geológica e técnica avançada

Os recursos técnicos incluem:

• Equipe de análise geológica: 18 geólogos em tempo integral
• Tecnologias avançadas de mapeamento sísmico
• Caracterização de reservatório aprimorada pelo aprendizado de máquina

Capital financeiro forte

Métrica financeira	2023 valor
Capitalização de mercado	US $ 4,2 bilhões
Total de ativos	US $ 3,8 bilhões
Dinheiro e equivalentes	US $ 275 milhões

Sistemas robustos de análise de dados e gerenciamento de terras

Detalhes da infraestrutura de tecnologia:

• Plataforma de mapeamento GIS personalizada
• Sistema de rastreamento de produção em tempo real
• Software de gerenciamento de terra automatizado

Sitio Royalties Corp. (STR) - Modelo de Negócios: Proposições de Valor

Geração de renda passiva através de direitos minerais

A partir do quarto trimestre de 2023, a Sitio Royalties Corp. gerou US $ 209,7 milhões em receita total dos interesses de mineral e royalties. A empresa possui aproximadamente 492.000 acres de royalties líquidos nas principais bacias americanas.

Métrica	Valor
Total Royalty Acres	492,000
Q4 2023 Receita total	US $ 209,7 milhões
Produção diária média	57.000 boe/dia

Exposição de baixo risco ao setor de energia

O modelo de negócios da Sitio fornece aos investidores riscos operacionais mínimos por meio da propriedade da royalties.

• Sem perfuração direta ou despesas operacionais
• Requisitos de despesa de capital reduzidos
• Fluxo de caixa consistente da produção existente

Portfólio diversificado de interesses de royalties

Distribuição geográfica dos interesses de royalties nas principais bacias americanas:

Bacia	Porcentagem de portfólio
Bacia do Permiano	68%
Eagle Ford	15%
Bacia de Delaware	12%
Outras bacias	5%

Potencial para valorização de ativos a longo prazo

A capitalização de mercado da Sitio em fevereiro de 2024: US $ 4,2 bilhões. O desempenho do preço das ações demonstra crescimento consistente de valor.

Riscos operacionais reduzidos

Principais estratégias de mitigação de risco:

• Sem custos operacionais diretos para perfuração
• Acordos de royalties contratuais com operadores estabelecidos
• Riscos mínimos de manutenção ambiental e de equipamentos

Sitio Royalties Corp. (STR) - Modelo de negócios: Relacionamentos do cliente

Comunicação direta do investidor

Sitio Royalties Corp. mantém canais de comunicação direta para investidores por meio de:

• Chamadas de conferência de ganhos trimestrais
• Reuniões individuais de investidores
• Envie um e -mail para relações com investidores: investtorrelations@sitioroyalties.com

Relatórios financeiros transparentes

Métrica de relatório	Freqüência	Plataforma
Relatórios financeiros trimestrais	A cada 3 meses	Sec Edgar, site da empresa
Relatórios anuais	Anualmente	Sec Edgar, site da empresa

Suporte de relações com investidores

Equipe dedicada de relações com investidores Fornece suporte abrangente por meio de:

• Linha telefônica direta: (713) 242-3500
• Suporte por e -mail para relações com investidores
• Decks de apresentação de investidores detalhados

Plataformas de investidores digitais

Plataforma digital	Acessibilidade	Características
Site da empresa Seção de relações com investidores	24/7 de acesso online	Relatórios financeiros, apresentações
Sec Edgar registros eletrônicos	Acesso digital público	Divulgações financeiras oficiais

Atualizações e apresentações regulares de desempenho

Frequência de atualização de desempenho:

• Chamadas de ganhos trimestrais
• Apresentação anual do Dia do Investidor
• Apresentações da Conferência de Investidores

Sitio Royalties Corp. (STR) - Modelo de Negócios: Canais

Site de Relações com Investidores

Plataforma de comunicação digital primária em www.sitioroyalties.com

Recurso do site	Detalhes
Visitantes únicos anuais	68.423 (2023 dados)
Seções de página do investidor	Relatórios financeiros, informações sobre ações, comunicados de imprensa

Listagens de bolsas de valores

Plataformas de listagem de bolsas de valores primárias

• Bolsa de Valores de Nova York (NYSE)
• Símbolo do ticker: str

Intercâmbio	Volume de negociação	Preço médio diário da ação
NYSE	542.000 ações (Q4 2023)	$62.37

Conferências financeiras

Plataformas -chave de engajamento de investidores

Nome da conferência	Ano de participação	Reuniões de investidores
Petróleo Enercom & Conferência de Gás	2023	37 reuniões institucionais
Wells Fargo Energy Conference	2023	42 reuniões institucionais

Relatórios de ganhos trimestrais

Canal de divulgação financeira

Período de relatório	Receita	Resultado líquido
Q4 2023	US $ 186,4 milhões	US $ 74,2 milhões

Apresentações de investidores institucionais

Estratégia de comunicação direta

Tipo de apresentação	Freqüência	Alcance do investidor
Dia do Investidor Virtual	Anualmente	214 investidores institucionais (2023)
Reuniões individuais	Trimestral	87 investidores institucionais (2023)

Sitio Royalties Corp. (STR) - Modelo de negócios: segmentos de clientes

Investidores institucionais

A partir do quarto trimestre 2023, Sitio Royalties Corp. atrai investidores institucionais com o seguinte profile:

Métrica	Valor
Propriedade institucional total	84.3%
Principais detentores institucionais	Grupo Vanguard, BlackRock, State Street Corporation
Tamanho médio de investimento institucional	US $ 12,5 milhões

Fundos de investimento do setor energético

Principais características dos fundos de investimento do setor de energia direcionados aos royalties de Sitio:

• Focado em investimentos de royalties da Bacia do Permiano
• Procure retornos estáveis ​​e de ativos de energia de longo prazo
• Companhias -alvo com portfólios de direitos minerais comprovados

Investidores individuais de alta rede

Métricas de segmento de investidores	Pontos de dados
Valor médio de investimento	US $ 500.000 a US $ 2,5 milhões
Patrimônio líquido de investidores típicos	US $ 5 milhões - US $ 50 milhões
Porcentagem de investidores individuais	9,7% da base total de acionistas

Empresas de private equity

Engajamento de private equity com royalties de Sitio:

• Concentre -se nos direitos minerais e aquisições de royalties
• Procure plataformas de investimento em energia escalável
• Avalie o potencial de valorização de ativos de longo prazo

Buscadores de diversificação de portfólio

Métricas de diversificação	Dados específicos
Alocação típica de portfólio	2-5% em investimentos em royalties de energia
Estratégia de mitigação de risco	Direitos minerais como investimento alternativo
Horizon de investimento	5-10 anos

Sitio Royalties Corp. (STR) - Modelo de negócios: Estrutura de custos

Aquisição de terras e despesas de arrendamento

Em 2023, a Sitio Royalties Corp. relatou a aquisição de terras e despesas de arrendamento de US $ 38,7 milhões. Os interesses minerais e de royalties da empresa abrangem aproximadamente 31.000 acres de royalties líquidos nas principais regiões de petróleo e gás.

Categoria de despesa	Valor ($)
Custos totais de aquisição de terras	38,700,000
Custo médio por acre de royalties líquidos	1,248

Overhead administrativo e operacional

A sobrecarga administrativa da Sitio Royalties Corp. em 2023 totalizou US $ 12,5 milhões, representando aproximadamente 4,2% da receita total.

• Compensação e benefícios dos funcionários
• Manutenção e instalações do escritório
• Seguro corporativo
• Despesas administrativas gerais

Custos legais e de conformidade

As despesas legais e de conformidade para o ano fiscal de 2023 foram de US $ 3,2 milhões, cobrindo registros regulatórios, gerenciamento de contratos e governança corporativa.

Categoria de custo de conformidade	Valor ($)
Conformidade regulatória	1,600,000
Serviços Jurídicos	1,600,000

Investimentos de tecnologia e gerenciamento de dados

Os investimentos em tecnologia em 2023 totalizaram US $ 5,6 milhões, com foco em tecnologias de gerenciamento de dados geológicos e exploração.

• Software de mapeamento GIS
• Plataformas de análise de dados
• Ferramentas de modelagem geológica

Taxas de serviço profissional

As taxas de serviço profissional para 2023 foram de US $ 4,3 milhões, incluindo serviços de consultoria, contabilidade e consultoria técnica.

Categoria de serviço profissional	Valor ($)
Consultoria financeira	1,500,000
Aviso técnico	1,800,000
Serviços de contabilidade	1,000,000

Sitio Royalties Corp. (STR) - Modelo de negócios: fluxos de receita

Renda de royalties dos direitos minerais

A partir do quarto trimestre de 2023, a Sitio Royalties Corp. gerou US $ 214,7 milhões em receita total dos direitos minerais na Bacia do Permiano e na Bacia de Delaware.

Região	Receita de royalties	Acres sob gestão
Bacia do Permiano	US $ 156,3 milhões	51.000 acres
Bacia de Delaware	US $ 58,4 milhões	23.500 acres

Arrendamento de pagamentos de empresas de energia

Em 2023, os pagamentos de arrendamento totalizaram US $ 42,6 milhões de várias empresas de exploração de energia.

• Taxa média de arrendamento: US $ 2.350 por acre
• Total de acres arrendados: 18.200 acres
• Locatários Primários: Chevron, ExxonMobil, Pioneer Natural Resources

Apreciação de ativos e ganhos de capital

A empresa realizou US $ 67,2 milhões em ganhos de capital de transações estratégicas de ativos em 2023.

Tipo de ativo	Ganhos de capital	Volume de transação
Vendas de direitos minerais	US $ 47,5 milhões	12 transações
Interesses de royalties	US $ 19,7 milhões	8 transações

Distribuições de dividendos

Os royalties de Sitio distribuíram US $ 98,4 milhões em dividendos durante 2023.

• Dividendo trimestral por ação: $ 0,82
• Rendimento anual de dividendos: 4,7%
• TOTAL DO TOTAL: 12.500

Vendas estratégicas de ativos e gerenciamento de portfólio

A empresa concluiu as vendas de ativos, totalizando US $ 112,5 milhões em otimização de portfólio estratégica durante 2023.

Categoria de ativos	Produtos de venda	Número de ativos vendidos
Interesses minerais não essenciais	US $ 68,3 milhões	22 propriedades
Interesses parciais da realeza	US $ 44,2 milhões	15 interesses

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.