Sitio Royalties Corp. (NYSE:STR) Q3 2023 Earnings Call Transcript November 9, 2023 8:30 AM ET

Company Participants

Ross Wong - VP, Finance and IR

Chris Conoscenti - CEO

Conference Call Participants

Derrick Whitfield - Stifel

Noel Parks - Tuohy Brothers Investment

Operator

Hello, and welcome to the Sitio Royalties Third Quarter 2023 Earnings Call. My name is Alex, I'll be coordinating the call today. [Operator Instructions]

I’ll now hand over to your host, Ross Wong, Vice President of Finance and Investor Relations. Please go ahead.

Ross Wong

Thanks, operator, and good morning, everyone. Welcome to the Sitio Royalties Third Quarter 2023 Earnings Call. If you don't already have a copy of our recent press release and update investor presentation, please visit our website at www.sitio.com, where you will find them in our Invest Relations section.

With me today to discuss third quarter 2023 financial and operating results is Chris Conoscenti, our Chief Executive Officer; Carrie Osicka, our Chief Financial Officer; and other members of our Executive Team.

Before we start, I'd 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 such forward-looking statements and non-GAAP measures.

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

Chris Conoscenti

Thanks, Ross. Good morning, and thank you for joining Sitio's third quarter 2023 earnings call. We have a very productive third quarter across multiple aspects of our business. Operationally, our assets have continued to perform well, despite the slowdown of drilling and completion activity across the Permian Basin and broader United States, where quarter-over-quarter horizontal rig count was down by 7% and 11%, respectively.

For the third quarter, we reported average daily oil production of 17,576 barrels per day and average daily total production of 36,900 BOEs per day. When excluding prior period adjustments, our oil production in period was 18,219 barrels per day or 50% of total volumes, which is in line with both the midpoint of our guidance for implied barrels and percent oil. We estimate that during the third quarter, there were 9.5 net wells turned in line on our assets with 72% and 19% of the overall activity in the Permian and DJ Basins, respectively. This was a shift from second quarter activity where 87% of our turn in line wells were in the Permian Basin and there was minimal activity on our DJ Basin assets.