Record High Average Quarterly Production Volume of 34,440 Boe/d (51% Oil)

Declared $0.50 Dividend Per Share of Class A Common Stock for First Quarter 2023

Reduced Long-term Debt by $33.7 Million

Reaffirming Production Guidance Range of 34,000 to 37,000 Boe/d for Full Year 2023⁽¹⁾

Sitio Royalties Corp. (NYSE: STR) (“Sitio,” "STR" or the “Company”) today announced operational and financial results for the quarter ended March 31, 2023. Unless the context clearly indicates otherwise, references to "we," "our," "us" or similar terms refer to Sitio.

FIRST QUARTER 2023 OPERATIONAL AND FINANCIAL HIGHLIGHTS

• Average daily production volume of 34,440 barrels of oil equivalent per day ("Boe/d"), (51% oil), comparable to pro forma 4Q 2022 average daily production volume⁽²⁾
• Net income of $47.7 million, up $43.1 million relative to 4Q 2022 net income, primarily due to the contribution from the Brigham Minerals Inc. ("Brigham Minerals") assets for the entire quarter vs. three days in 4Q 2022 and reduced expenses related to the December 29, 2022 merger of Sitio and Brigham Minerals
• Adjusted EBITDA of $140.0 million⁽³⁾, down 17% sequentially from 4Q 2022 pro forma Adjusted EBITDA⁽⁴⁾, primarily due to a 15% reduction in realized hedged prices per Boe
• Declared 1Q 2023 dividend of $0.50 per share of Class A Common Stock
• 42.8 net line-of-sight ("LOS") wells as of March 31, 2023, comprised of 25.0 net spuds and 17.8 net permits, with approximately 81% and 12% of total net LOS wells in the Permian Basin and DJ Basin, respectively
• In March 2023, made second quarterly amortization payment of $11.3 million on senior unsecured notes, reducing principal from $438.8 million to approximately $427.5 million

1Q 2023 RESULTS RELATIVE TO FULL YEAR 2023 GUIDANCE

The table below shows first quarter 2023 results relative to financial and operational guidance for full year 2023 that was provided on March 8, 2023.

Chris Conoscenti, Chief Executive Officer of Sitio, commented, “Producer activity on our assets continues to be steady, with average production of 34,440 Boe/d in the first quarter, which is in-line with Sitio’s pro forma production of 34,424 Boe/d in the fourth quarter of 2022. We evaluated approximately 50,000 net royalty acres for acquisition in the first quarter of 2023, but we did not find any opportunities that met our returns criteria. This was the first quarter in over two years that we haven't announced or closed an acquisition. Instead, we focused on strengthening the balance sheet by reducing long-term debt by approximately $34 million and continuing to improve our internal efficiencies."

MERGERS AND ACQUISITIONS UPDATE

For the three months ended March 31, 2023, Sitio remained active in the M&A market, evaluating acquisition opportunities of approximately 50,000 NRAs in aggregate. Despite these efforts, Sitio did not find acquisition opportunities that met its underwriting criteria and therefore did not transact on any M&A deals during the first quarter of 2023.

The following table summarizes Sitio's net average daily production, net wells online, net line-of-sight wells and net royalty acres by area.

FINANCIAL UPDATE

Sitio's first quarter 2023 average unhedged realized prices including all expected quality, transportation and demand adjustments were $74.10 per barrel of oil, $2.70 per Mcf of natural gas and $21.75 per barrel of natural gas liquids, for a total equivalent price of $46.96 per barrel of oil equivalent. During the first quarter of 2023, the Company received $5.9 million in net cash settlements for commodity derivative contracts and as a result, average hedged realized prices were $77.14 per barrel of oil, $2.90 per Mcf of natural gas and $21.75 per barrel of natural gas liquids, for a total equivalent price of $48.87 per barrel of oil equivalent. This represents an $8.61 per barrel of oil equivalent, or a 15% decrease relative to hedged realized prices for the three months ended December 31, 2022.

Consolidated net income for the first quarter of 2023 was $47.7 million, which is $43.1 million greater than consolidated net income in the fourth quarter of 2022. This increase was driven primarily because of the contribution from the Brigham Minerals assets for the entire quarter vs. three days in the fourth quarter of 2022. For the three months ended March 31, 2023, Adjusted EBITDA was $140.0 million, down 17% sequentially from fourth quarter 2022 pro forma Adjusted EBITDA, primarily due to the aforementioned decrease in commodity prices.

As of March 31, 2023, the Company had $914.5 million principal value of total debt (comprised of $487.0 million drawn on Sitio's revolving credit facility and $427.5 million of senior unsecured notes) and liquidity of $273.2 million, including $10.2 million of cash and $263.0 million of remaining availability under its $750.0 million credit facility, which was reaffirmed on April 28, 2023. As of May 5, 2023, Sitio had $868.5 million principal value of total debt (comprised of $441.0 million drawn on Sitio's revolving credit facility and $427.5 million of senior unsecured notes). On March 31, 2023, Sitio made its second quarterly amortization payment of $11.3 million at par value on its senior unsecured notes, reducing the principal from $438.8 million to $427.5 million.

Sitio did not add to or extinguish any of its commodity swaps or collars during the first quarter of 2023. A summary of the Company's existing commodity derivative contracts as of April 1, 2023 is included in the table below.

2023 FULL YEAR GUIDANCE

The table below includes Sitio's reaffirmed guidance for full year 2023.

FIRST QUARTER 2023 CASH DIVIDEND

The Company's Board of Directors declared a cash dividend of $0.50 per share of Class A Common Stock with respect to the first quarter of 2023. The dividend is payable on May 31, 2023 to the stockholders of record at the close of business on May 19, 2023.

FIRST QUARTER 2023 EARNINGS CONFERENCE CALL

Sitio will host a conference call at 8:30 a.m. Eastern on Wednesday, May 10, 2023 to discuss its first quarter 2023 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 279583 or via webcast at https://events.q4inc.com/attendee/801160219. Participants can also pre-register for the event by going to the following link: https://www.netroadshow.com/events/login?show=b7e9afab&confId=48873. The conference call, live webcast and archive of the call 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 Leveraged Finance Conference from May 22 – 24, 2023, the RBC Global Energy, Power & Infrastructure Conference on June 6, 2023 and the Bank of America 2023 Energy Credit Conference on June 7, 2023. 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, 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) write off of deferred offering costs, (i) management fee to affiliates, (j) loss on debt extinguishment, (k) one-time transaction costs and (l) write off of financing costs.

We define Discretionary Cash Flow as Adjusted EBITDA, less cash interest expense and cash taxes.

We define Cash G&A as general and administrative expense less (a) non-cash share-based compensation expense, (b) one-time 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, 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 260,000 NRAs through the consummation of over 185 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 certain future plans, expectations and objectives for the Company’s operations, including statements about 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: the global economic uncertainty related to the large-scale invasion of Ukraine by Russia, the collapse of certain financial institutions and associated liquidity risks, announcements of voluntary production cuts by OPEC+ and others, 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, 2022 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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