Start Time: 08:30 January 1, 0000 8:52 AM ET

Sitio Royalties Corp. (NYSE:STR)

Q3 2022 Earnings Conference Call

November 09, 2022, 08:30 AM ET

Company Participants

Chris Conoscenti - CEO

Ross Wong - Senior Director of Corporate Finance and IR

Conference Call Participants

Jeanine Wai - Barclays

Noel Parks - Tuohy Brothers

Operator

Ladies and gentlemen, welcome to the Sitio Royalties Third Quarter 2022 Earnings Call. My name is Grant, and I'll be monitoring today's call. [Operator Instructions].

I will now hand you over to your host, Ross Wong, Senior Director of Corporate Finance and Investor Relations to begin. Ross, please go ahead.

Ross Wong

Thanks, operator, and good morning, everyone. Welcome to the Sitio Royalties third quarter 2022 earnings call. If you don't already have a copy of our recent press release and updated investor presentation, please visit our Web site at www.sitio.com where you will find them in our Investor Relations section. With me today to discuss third quarter 2022 financial and operating results is Chris Conoscenti, our Chief Executive Officer; Carrie Osicka, our Chief Financial Officer; and other members of our executive leadership team.

Before we start, I would like to remind you that our discussion today may contain forward-looking statements and non-GAAP measures. Please refer to our earnings press release, investor presentation and publicly filed documents for additional information regarding forward-looking statements and non-GAAP measures.

And with that, I'll turn the call over to Chris.

Chris Conoscenti

Thanks, Ross. Good morning everyone and thank you for joining Sitio's third quarter 2022 earnings call. We had another great quarter as we continue to execute on our large scale consolidation strategy. We also refinanced our bridge loan with a flexible capital solution and made progress like we have done every quarter developing our team and improving our processes to enhance the scalability of our business model.

Despite a double digit percentage decrease in realized commodity prices for the third quarter versus the second quarter, we are increasing our dividend from $0.71 per share for the second quarter to $0.72 per share for the third quarter. This is a clear demonstration of the accretive nature of the transaction to get closed this year.

The highlight of the quarter was the announcement of our all-stock at market transaction with Brigham Minerals, which was the largest ever public merger in the mineral sector. This transaction brings additional high quality assets into our company, dramatically increases the public float of our stock, reduces our leverage statistics and has a significant benefit of giving us the opportunity to bring additional talented employees to Sitio.