
STR Stock Forecast & Price Target
STR Analyst Ratings
Bulls say
Sitio Royalties Corp reported a 14% year-over-year increase in oil production, rising to 19.4 MBopd in 4Q24, with results also surpassing consensus estimates by 2%. In addition, total production for the quarter increased by 6% quarter-over-quarter and year-over-year, reaching 40.9 MBoed, which was 6% higher than expectations. Furthermore, the company's borrowing base on the revolver rose by 9% to $925 million during the quarter, coupled with EBITDA and cash flow per share exceeding consensus by 9% and 15%, respectively, indicating strong operational performance and financial stability.
Bears say
Sitio Royalties Corp faces a negative outlook primarily due to an 8% decrease in line of sight wells, reflecting diminished operator activity within the Permian and DJ basins, alongside a decrease in net permits and spuds. This decrease in operational metrics indicates potential challenges in maintaining future production levels and cash flow, exacerbated by multi-month lags in production reporting that further complicate financial assessments. Additionally, vulnerability to declines in oil and natural gas prices, as well as regulatory changes, could significantly impact the company’s cash flow, EBITDA estimates, and overall growth potential in a competitive market.
This aggregate rating is based on analysts' research of Sitio Royalties Corp and is not a guaranteed prediction by Public.com or investment advice.
STR Analyst Forecast & Price Prediction
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