Sitio Royalties Corp. (NYSE:STR) Q2 2024 Earnings Conference Call August 8, 2024 8:30 AM ET

Company Participants

Ross Wong - Vice President of Finance and Investor Relations
Chris Conoscenti - Chief Executive Officer
Carrie Osicka - Chief Financial Officer

Conference Call Participants

Neal Dingmann - Truist Securities
Noel Parks - Tuohy Brothers Investment
John Vinh - KeyBanc Capital Markets
Betty Zhang - Barclays

Operator

Hello everyone, and a warm welcome to the Sitio Royalties Second Quarter 2024 Earnings Call. My name is Emily and I'll be coordinating your call today. [Operator instructions]

I will now turn the call over to our host, Ross Wong, Vice President of Investor Relations and Finance. Please go ahead.

Ross Wong

Thanks operator and good morning everyone. Welcome to the Sitio's Royalties second quarter 2024 earnings call. If you don't already have a copy of our recent press release and updated investor presentation, please visit our website at www.cydio.com or you will find them in our regressive relations section.

With me today to discuss second quarter 2024 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'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'll turn the call over to Chris.

Chris Conoscenti

Thanks Ross. Good morning and thank you for joining Sitio's second quarter 2024 earnings call the momentum from our strong start to the year continued in the second quarter as the company set several operational and financial records, closed on acquisitions of approximately 15,000 net royalty acres, and announced return of capital of share, a 45% increase relative to the first quarter.

In the second quarter, production from our mineral and royalty interests reached record high volumes of 39,231 BOEs per day, up 3% compared to pro forma first quarter volumes, which included a full quarter of production from the previously announced TJ Basin acquisition. Several other production milestones were also achieved with an all time oil production high of 19,747 barrels per day and record Delaware basin and Eagle Ford production of 20,991 BOEs per day and 4061 BOEs per day, respectively.

These impressive operational results benefited from the flush production from 14.3 pro forma net wells turned in line in the first quarter and 8.5 net wells that commenced production in the second quarter, which was 6% above our 2023 quarterly average. The majority of second quarter operator activity came from the Permian and DJ Basins, which accounted for approximately 94% of all net turn in line wells.