RECORD HIGH AVERAGE DAILY PRODUCTION VOLUME OF 39,231 BOE/D (50% OIL)

RETURN OF CAPITAL OF $0.71 PER SHARE FOR SECOND QUARTER 2024, COMPRISED OF $0.30 CASH DIVIDEND PER SHARE OF CLASS A COMMON STOCK AND $0.41 PER SHARE OF STOCK REPURCHASES

RAISES FULL YEAR 2024 PRO FORMA PRODUCTION GUIDANCE TO 36,000 – 38,000 BOE/D⁽¹⁾ AND LOWERS MIDPOINT OF FULL YEAR 2024 CASH TAX GUIDANCE BY $21.5 MILLION

INCLUDING PREVIOUSLY ANNOUNCED DJ BASIN ACQUISITION⁽²⁾, CLOSED 7 ACQUISITIONS DURING SECOND QUARTER 2024, ADDING 14,996 NRAS ACROSS THE DJ, DELAWARE, AND MIDLAND BASINS

Sitio Royalties Corp. (NYSE: STR) (“Sitio”, “STR” or the “Company”) today announced operational and financial results for the quarter ended June 30, 2024. Unless the context clearly indicates otherwise, references to “we,” “our,” “us” or similar terms refer to Sitio and its subsidiaries.

SECOND QUARTER 2024 OPERATIONAL, FINANCIAL AND ACQUISITION HIGHLIGHTS

• Average daily production volume of 39,231 barrels of oil equivalent per day (“Boe/d”) (50% oil), an all-time high, up 11% relative to 1Q 2024 average daily production volume of 35,349 Boe/d (52% oil) and up 3% relative to pro forma 1Q 2024 average daily production volume of 37,970 Boe/d (51% oil)⁽¹⁾
• Return of capital of $0.71 per share of Class A Common Stock, comprised of a $0.30 per share cash dividend and $0.41 per share of stock repurchases; return of capital increase of $0.22 per share, or 45% relative to 1Q 2024 of $0.49 per share
• Repurchased an aggregate 2.6 million shares of Class A Common Stock and OpCo Units at an average price of $24.50 per share/unit, including 2.0 million shares/units from previously announced privately negotiated block trade
• In addition to the previously announced DJ Basin Acquisition⁽²⁾, closed 6 acquisitions in 2Q 2024 for approximately $38.5 million, adding 2,110 NRAs (61% Permian Basin and 39% DJ Basin). The 6 2Q 2024 acquisitions are expected to contribute an estimated 200 Boe/d to full year 2024 production
• Including assets acquired in 2Q 2024, estimated 8.5 net wells turned-in-line ("TIL") during the quarter, of which approximately 80% were in the Permian Basin and 13% in the DJ Basin; estimated 8.0 net wells TIL on legacy Sitio and DJ Basin Acquisition assets
• Net income of $29.0 million, up 55% relative to 1Q 2024 net income of $18.7 million, primarily driven by $17.5 million higher oil, natural gas and natural gas liquids revenues and $9.4 million lower commodity derivatives losses, partially offset by $15.4 million of increased depreciation, depletion and amortization, interest expense and income tax expense
• Adjusted EBITDA⁽³⁾ of $151.6 million, up 12% relative to 1Q 2024 Adjusted EBITDA⁽³⁾ of $135.1 million, primarily driven by higher average daily production volume and higher unhedged realized oil prices; up 6% relative to 1Q 2024 Pro Forma Adjusted EBITDA of $143.7 million⁽³⁾⁽⁴⁾

2Q 2024 AND PRO FORMA 1H 2024 RESULTS RELATIVE TO 2024 GUIDANCE

The table below shows second quarter 2024 and pro forma first half 2024 results relative to financial and operational guidance for 2024 that was issued on February 28, 2024.

Chris Conoscenti, Chief Executive Officer of Sitio, commented, "Our strong second quarter results are a reflection of flush production from recently completed wells on our legacy assets combined with production volumes contributed from our disciplined acquisition program. Our team continued to allocate capital towards acquisitions of high quality mineral rights with the greatest potential to generate attractive returns for our shareholders diversified across multiple basins and operators. In addition to our previously announced DJ Basin Acquisition, we closed on the acquisition of 2,110 NRAs in the Permian and DJ Basins from 6 separate transactions for approximately $38.5 million. Due to Sitio's 1H 2024 outperformance and the expected impacts from our newly acquired minerals, we are raising our full year 2024 production guidance range from 35,000 – 38,000 Boe/d to 36,000 – 38,000 Boe/d."

UPDATED 2024 FULL YEAR FINANCIAL AND OPERATIONAL GUIDANCE

The table below includes Sitio's updated guidance for full year 2024 and includes impacts from the DJ Basin Acquisition as if the transaction had closed on January 1, 2024 for pro forma average daily production. Pro forma average daily production guidance includes an increase of 500 Boe/d at the midpoint, of which approximately 200 Boe/d is related to volumes from the 6 2Q 2024 previously unannounced acquisitions and the remainder is attributed to Sitio's legacy assets and the DJ Basin Acquisition. The midpoint of 2024 guidance for cash taxes decreased by $21.5 million based on latest estimates and includes an increase to our expected 2024 federal tax credit.

OPERATOR ACTIVITY

The following table summarizes Sitio's net average daily production, net line-of-sight ("LOS") wells and net royalty acres by area. Pro forma NRAs assume that Sitio owned the DJ Basin Acquisition assets as of March 31, 2024.

FINANCIAL UPDATE

Sitio's second quarter 2024 average unhedged realized prices including all expected quality, transportation and demand adjustments were $79.85 per barrel of oil, $1.01 per Mcf of natural gas and $20.32 per barrel of natural gas liquids, for a total price of $46.36 per barrel of oil equivalent ("Boe"). During the second quarter of 2024, the Company received $2.7 million in net cash settlements for commodity derivative contracts and as a result, average hedged realized prices were $80.21 per barrel of oil, $1.36 per Mcf of natural gas and $20.32 per barrel of natural gas liquids, for a total price of $47.13 per Boe. This represents a comparable $0.01 per Boe increase to hedged realized prices from the three months ended March 31, 2024.

Consolidated net income for the second quarter of 2024 was $29.0 million, which is $10.3 million, or 55% higher than consolidated net income in the first quarter of 2024. This increase was primarily driven by $17.5 million higher oil, natural gas and natural gas liquids revenues and $9.4 million lower commodity derivatives losses, partially offset by $9.2 million of increased depreciation, depletion and amortization, $4.2 million of increased interest expense and $2.1 million of increased income tax expense. For the three months ended June 30, 2024, Adjusted EBITDA was $151.6 million, up 12% compared to first quarter 2024 Adjusted EBITDA of $135.1 million largely due to higher average daily production volume and higher unhedged realized oil prices.

As of June 30, 2024, the Company had $1,060.0 million principal value of total debt outstanding (comprised of a $460.0 million drawn on Sitio's revolving credit facility and $600.0 million of senior unsecured notes) and liquidity of $406.3 million, including $16.3 million of cash and $390.0 million of remaining availability under its $850.0 million credit facility.

Sitio did not add to or extinguish any of its commodity swaps or collars during the second quarter of 2024. A summary of the Company's existing commodity derivative contracts as of June 30, 2024 is included in the table below.

RETURN OF CAPITAL

The Company's Board of Directors declared a cash dividend of $0.30 per share of Class A Common Stock with respect to the second quarter of 2024. The dividend is payable on August 30, 2024 to the stockholders of record at the close of business on August 19, 2024. During the second quarter of 2024, the Company repurchased an aggregate 2,582,067 shares of Class A Common Stock and OpCo Units (associated Class C Common Stock was retired) at an average price of $24.50 per share/unit, representing 49% of second quarter 2024 Discretionary Cash Flow ("DCF"), or $0.41 per share. As of June 30, 2024, the Company had repurchased a total of 3.1 million shares/units, representing approximately 2% of shares outstanding prior to the Board's authorization of Sitio's $200 million share repurchase program. In total, Sitio's return of capital for the second quarter of 2024 is $0.71 per share and equates to a payout ratio of 85% of DCF.

SECOND QUARTER 2024 EARNINGS CONFERENCE CALL

Sitio will host a conference call at 8:30 a.m. Eastern on Thursday, August 8, 2024 to discuss its second quarter 2024 operating and financial results. Participants can access the call by dialing 1-833-470-1428 in the United States, or 1-404-975-4839 in other locations, with access code 292624, or by webcast at https://events.q4inc.com/attendee/523440225. Participants may also pre-register for the event via the following link: https://www.netroadshow.com/events/login?show=e84b684b&confId=67439. The conference call, live webcast, and replay can also be accessed through the Investor Relations section of Sitio’s website at www.sitio.com.

UPCOMING INVESTOR CONFERENCES

Members of Sitio's management team will be attending the Barclays 38^th Annual CEO Energy-Power Conference from September 3-5, 2024, Bank of America Leveraged Finance Conference from December 2-3, 2024, Capital One Annual Energy Conference on December 10, 2024 and Mizuho Power, Energy & Infrastructure Conference from December 9-10, 2024. Any presentation materials associated with these events will be accessible through the Investor Relations section of Sitio's website at www.sitio.com.

FINANCIAL RESULTS

Non-GAAP financial measures

Adjusted EBITDA, Pro Forma Adjusted EBITDA, Discretionary Cash Flow, and Cash G&A are non-GAAP supplemental financial measures used by our management and by external users of our financial statements such as investors, research analysts and others to assess the financial performance of our assets and their ability to sustain dividends over the long term without regard to financing methods, capital structure or historical cost basis. Sitio believes that these non-GAAP financial measures provide useful information to Sitio's management and external users because they allow for a comparison of operating performance on a consistent basis across periods.

We define Adjusted EBITDA as net income plus (a) interest expense, (b) provisions for taxes, (c) depreciation, depletion and amortization, (d) non-cash share-based compensation expense, (e) impairment of oil and natural gas properties, (f) gains or losses on unsettled derivative instruments, (g) change in fair value of the warrant liability, (h) loss on debt extinguishment, (i) merger-related transaction costs and (j) write off of financing costs.

We define Pro Forma Adjusted EBITDA for the three months ended March 31, 2024 as Adjusted EBITDA plus DJ Basin Acquisition EBITDA from January 1, 2024 to March 31, 2024 that is not included in Adjusted EBITDA for the three months ended March 31, 2024. A reconciliation of Pro Forma Adjusted EBITDA to the most directly comparable GAAP financial measure for the three months ended March 31, 2024 is available in Exhibit 99.1 of Sitio's Form 8-K filed with the SEC on May 8, 2024.

We define Discretionary Cash Flow as Adjusted EBITDA, less cash and accrued interest expense and estimated cash taxes for the three months ended June 30, 2024.

We define Discretionary Cash Flow as Adjusted EBITDA, less cash interest and cash taxes for the three months ended June 30, 2023.

We define Cash G&A as general and administrative expense less (a) non-cash share-based compensation expense, (b) merger-related transaction costs and (c) rental income.

These non-GAAP financial measures do not represent and should not be considered an alternative to, or more meaningful than, their most directly comparable GAAP financial measures or any other measure of financial performance presented in accordance with GAAP as measures of our financial performance. Non-GAAP financial measures have important limitations as analytical tools because they exclude some but not all items that affect the most directly comparable GAAP financial measure. Our computations of Adjusted EBITDA, Pro Forma Adjusted EBITDA, Discretionary Cash Flow, and Cash G&A may differ from computations of similarly titled measures of other companies.

The following table presents a reconciliation of Adjusted EBITDA to the most directly comparable GAAP financial measure for the period indicated (in thousands).

The following table presents a reconciliation of Discretionary Cash Flow to the most directly comparable GAAP financial measure for the period indicated (in thousands).

The following table presents a reconciliation of Cash G&A to the most directly comparable GAAP financial measure for the period indicated (in thousands).

About Sitio Royalties Corp.

Sitio is a shareholder returns-driven company focused on large-scale consolidation of high-quality oil & gas mineral and royalty interests across premium basins, with a diversified set of top-tier operators. With a clear objective of generating cash flow from operations that can be returned to stockholders and reinvested, Sitio has accumulated over 265,000 NRAs through the consummation of over 200 acquisitions to date. More information about Sitio is available at www.sitio.com.

Forward-Looking Statements

This news release contains statements that may constitute “forward-looking statements” for purposes of federal securities laws. Forward-looking statements include, but are not limited to, statements that refer to projections, forecasts, or other characterizations of future events or circumstances, including any underlying assumptions. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “seeks,” “possible,” “potential,” “predict,” “project,” “prospects,” “guidance,” “outlook,” “should,” “would,” “will,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These statements include, but are not limited to, statements about the Company's expected results of operations, cash flows, financial position and future dividends; as well as certain future plans, expectations and objectives for the Company’s operations, including statements about our return of capital framework, our share repurchase program, the implementation thereof and the intended benefits, financial and operational guidance, strategy, synergies, certain levels of production, future operations, financial position, prospects, and plans. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties that could cause our actual results, performance, and financial condition to differ materially from our expectations and predictions. Factors that could materially impact such forward-looking statements include, but are not limited to: commodity price volatility, the global economic uncertainty and market volatility related to slowing growth, the large-scale invasion of Ukraine by Russia, the conflict in the Israel-Gaza region and continued hostilities in the Middle East including tensions with Iran, announcements of voluntary production cuts by OPEC+ and others, including OPEC's recent extensions of its voluntary production cuts, and those other factors discussed or referenced in the "Risk Factors" section of Sitio’s Annual Report on Form 10-K for the year ended December 31, 2023 and other publicly filed documents with the SEC. Any forward-looking statement made in this news release speaks only as of the date on which it is made. Factors or events that could cause actual results to differ may emerge from time to time, and it is not possible to predict all of them. Sitio undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future development, or otherwise, except as may be required by law.

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