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1Q25 Earnings Presentation May 7, 2025
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Disclaimer FORWARD-LOOKING STATEMENTS This presentation relates to Sitio Royalties Corp. (the “Company”, “STR” or “Sitio”) and 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 and its intended benefits, financial and operational guidance, strategy, synergies, certain levels of production, future operations, acquisitions, 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 changes in U.S. trade policy, including the imposition of tariffs, slowing growth and demand, especially from China, the conflict in Ukraine and associated economic sanctions on Russia, the conflict in the Israel-Gaza region and continued hostilities in the Middle East including heightened tensions and conflict with Iran, Lebanon and Yemen, actions by OPEC+ and others, including any removal of oil production curtailments or the duration thereof, increased global oil, natural gas and natural gas liquids supply 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, 2024, Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, and other publicly filed documents with the SEC. Any forward-looking statement made in this presentation 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. INDUSTRY AND MARKET DATA The information, data and statistics contained herein are derived from various internal (including data that Sitio has internally collected) and external third-party sources. While Sitio believes such third-party information is reliable, there can be no assurance as to the accuracy or completeness of the indicated information. Sitio has not independently verified the accuracy or completeness of the information provided by third party sources. No representation is made by Sitio’s management as to the reasonableness of the assumptions made within or the accuracy or completeness of any projections or modeling or any other information contained herein. Any information, data or statistics on past performance or modeling contained herein are not an indication as to the future performance. Sitio assumes no obligation to update the information in this presentation. BASIS OF PRESENTATION Unless otherwise noted, all net royalty acre “NRA,” gross and net well counts are as of March 31, 2025. All NRA metrics are shown on a 1/8ths royalty equivalent basis. Gross and net wells are presented on a 5,000’ basis unless noted otherwise. NON-GAAP MEASURES This presentation includes financial measures that are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”) such as Adjusted EBITDA, Adjusted EBITDA margin, Discretionary Cash Flow, Net Debt, Adjusted Net Debt and Cash G&A. While Sitio believes such non-GAAP measures are useful for investors, they are not measures of financial performance under GAAP and should not be considered in isolation or as an alternative to any measure of such performance derived in accordance with GAAP . These non-GAAP measures have limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of results as reported under GAAP . These non-GAAP measures may not be comparable to similarly titled measures used by other companies in our industry or across different industries. This presentation also includes certain forward-looking non-GAAP measures. Due to the forward-looking nature of such measures, no reconciliations of these non-GAAP measures to their respective most directly comparable GAAP measure are available without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing or amount of various reconciling items that would impact the most directly comparable forward-looking GAAP financial measure, that have not yet occurred, are out of the Company’s control and/or cannot be reasonably predicted. Accordingly, such reconciliations are excluded from this presentation. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures. See Appendix for definitions of the non-GAAP measures used in this presentation and reconciliations to the most comparable GAAP measures. 2
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Sitio’s Value Proposition 3 › Returns-Driven Acquisition Strategy (1) STR share price as of 5/2/25; share count per 10-Q; debt and cash balances as of 3/31/25 (2) See Appendix for non-GAAP reconciliations (3) Based on annualized 1Q25 return of capital per share of $0.50 (includes cash dividends and share repurchases) and STR closing share price as of 5/2/25. See Appendix for non-GAAP definitions Williston DJ Permian Eagle Ford › Active Asset Management Continually Enhances Business Model › High Margins, Strong Capital Structure, and Long-Term Financial Stability › Robust Return of Capital Program Enterprise Value(1) $3.7 B 1Q25 Annualized Adjusted EBITDA(2) $569 MM Total Yield(3) 11.5% 1Q25 Production 42.1 MBoe/d Net Royalty Acres 274,657 74% Permian NEW MEXICO TEXAS Midland Basin Delaware Basin
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1Q25 Key Takeaways 4 (1) See Appendix for non-GAAP reconciliations (2) Since 2Q22. Production per Debt-Adjusted Share = (average reported production during the quarter) / ((avg. share count of quarter) + (avg. net debt / avg. share price during the quarter)). See Appendix for definitions (3) Selected Mineral & E&P peers noted on page 6 and 13. 2025 Free Cash Flow is calculated as Cash Flow from Operations less Capex; Adjusted Net Debt is calculated as interest-bearing debt, plus preferred equity, less cash. See Appendix for definitions (4) Includes dividends declared with respect to 1Q25 (payable 5/30/25) (5) STR share price as of 5/2/25. Share count as of 5/2/25 Topped consensus estimates for 1Q25 production (~42 MBoe/d) and Adjusted EBITDA(1) (~$142 MM) 1Q25 production (~42 MBoe/d) exceeded high end of STR full year 2025 guidanceSolid Financial Performance1 Closed 3 transactions in 1Q25 for ~$21 MM, adding ~1,350 NRAs Returns exceeded STR’s underwriting criteria Accretive Acquisitions Enhance Outlook3 >$915 MM(4) cumulative return of capital since becoming public in 2022 (>35% of market cap)(5), ~$75 MM attributable to 1Q25 Share repurchase program extended, with additional $300 million authorized; ~$350 million remaining buyback capacity Strong Returns to Shareholders5 $15 MM of missing payments captured in LTM 3/31/25 (offsetting ~40% of midpoint 2025 Cash G&A(1) guidance) Future unit cost savings in G&A per Boe due to proprietary data management systems Investments in People and Technology Create a More Scalable Enterprise4 High Adjusted EBITDA Margins(1) (>87%), consistent growth in Production per Debt-Adjusted Share (>17% CAGR)(2), Adjusted Net Debt / 2024 FCF ~half of peer average(3) De-risked exposure to premier oil and gas resource (no drilling capital or direct operations risk) Advantaged Business Model, Resilient Cash Flow, Strong Capital Structure2
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$142 MM Adjusted EBITDA 8% QoQ increase 34% QoQ increase 48.6 Net Wells Line of Sight (LOS) as of 3/31/25 Operator ActivityAverage Daily Production 1Q25 Highlights 5(1) See Appendix for non-GAAP reconciliations 42.1 MBoe/d Total Production 19% YoY increase Financials(1) 87% Adjusted EBITDA margin Return of Capital $0.50 Per Share Total shareholder return of capital $0.35 / share cash dividend and an equivalent $0.15 / share of stock repurchases Cost Structure $2.27 Per Boe Cash G&A Below midpoint of full year 2025 guidance Acquisitions 11.1 Net Wells Turned-in-Line (TILs) $115 MM Discretionary Cash Flow 3% YoY increase 18.9 MBbls/d Oil Production 1Q25 deals in the DJ and Midland Basins $21 MM in cash acquisitions Adds ~1,350 NRAs
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$4.23 $4.68 $4.70 $4.78 $5.20 $5.29 $5.92 $6.68 $7.53 $7.96 $8.02 $8.59 $8.71 $9.03 $9.51 $10.99 $11.37 $12.46 $23.59 $24.67 $26.49 $32.01 $34.19 Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 Peer 14 Peer 15 Peer 16 Peer 17 Peer 18 Peer 19 Peer 20 STR Peer 21 Peer 22 E&P Peers E&P Average: $7.54 Advantaged Free Cash Flow Margin 6 Source: FactSet estimates as of 5/2/25. Peers include APA, AR, BSM, BTE, CHRD, CIVI, CNX, CRC, CRGY, FRU, GPOR, HPK, KRP, MGY, MNR, MTDR, MUR, NOG, RRC, SM, VNOM, VTLE (1) Represents consensus estimates for 2025E Free Cash Flow divided by consensus estimates for 2025E total production in BOE. Free Cash Flow is calculated as Cash Flow from Operations less Capex for E&P peers; Cash Flow from Operations is used for Mineral peers. 2025E Free Cash Flow Margin ($/Boe)(1) Mineral Peers STR STR’s FCF Margin is >3.5x higher than the E&P Average
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Unique Cash Flow Resiliency 7 Source: Texas Capital Securities Equity Research estimates. Estimates represent a single variable price analysis with no adjustments to production or capex. Companies included reflect Texas Capital coverage universe and category groupings. The Minerals group was trimmed to exclude two companies who operate (oil and gas producers) and a micro-cap royalty company. Bellwether companies include CTRA, DVN, EOG, and FANG. Smid Cap Oil companies include BRY, CHRD, CRC, GRNT, MTDR, PR, REPX, TALO, and VTLE. Natural Gas companies include CRK, EQT, EXE, and RRC. Minerals companies include BSM, KRP, STR, and VNOM. (1) EV as of 4/2/25. 10-Year FCF represents estimated 2025-2034 cumulative free cash flow per Texas Capital estimates. (20%) 0% 20% 40% 60% 80% 100% 120% 140% Bellwether Smid Cap Oil Natural Gas Minerals Estimated FY 2025-2034 Cuml. FCF / TEV (%) 4/2/2025 Forward Strip $50 WTI / $2.25 HHUB › Within the upstream oil and gas landscape, minerals & royalties assets offer uniquely high margins and cash flow durability › Estimates based on third party research models, assuming two different price cases: − 4/2/25 forward strip, prior to Liberation Day announcement (10 yr avg ~$64 WTI / $3.50 HHUB) − $50 WTI / $2.25 HHUB flat Commodity Price Sensitivity Estimated 10-Year Cumulative Free Cash Flow / EV (1)
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28% 5% 19% 3% 13% 8% 24% 55% Large, Well-Capitalized Operators with Durable Capital Budgets Note: Market data per FactSet as of 5/2/25. CVX pro forma for HES, Jonah Energy pro forma for Tap Rock (1) 1Q25 Gross Wells TIL inclusive of wells on STR acreage only >$100B >$50B >$20B >$5B <$5B Private 1Q25 Production by Operator Market Cap. STR’s top operators have become better capitalized, leading to increased resiliency through commodity cycles 8 Top 10 STR Operators by 1Q25 Production >$10B 55% >$10B Mkt. Cap. Operator (Ticker) % of 1Q25 Production 1Q25 Gross Wells TIL(1) 1 CVX 10.5% 230 2 XOM 9.8% 306 3 OXY 9.2% 185 4 Jonah Energy 8.8% 7 5 COP 7.3% 142 6 APA 5.7% 33 7 FANG 5.5% 224 8 PR 5.1% 31 9 DVN 4.1% 48 10 CIVI 3.9% 25 Total 70.0% 1,230
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Visibility through Net Line-of-Sight (“LOS”) Well Pipeline 9 Net LOS Wells Note: CVX pro forma for HES TEXAS NEW MEXICO Permian Basin LOS Wells 12/31/24 Spuds Permian Basin LOS Wells 12/31/24 Permits STR NRAs STR AOI Net Spuds Net Permits 3/31/25 Net LOS Wells – Top Operators 27.8 26.7 28.9 19.7 19.8 19.7 47.5 46.5 48.6 2023 Qtr Avg. 2024 Qtr Avg. 1Q25 Net Spuds Net Permits Quarterly Average (1Q23 – 1Q25 )
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Valuation Anchored by Proved Reserves 10 Note: Peers include VNOM, KRP, BSM, DMLP. (1) Drilling inventory includes permits and inventory (2) Proved PV-10 and EV as of 12/31/24. (3) Other consists of Williston and Eagle Ford Basins STR Peer 1 Peer 2 Peer 3 Peer 4 47% 26% 34% 43% Net Permits + Inventory Wells Delaware Basin Midland Basin DJ Basin Other(3) STR has a greater proportion of valuation underpinned by lower risk proved reserves than mineral peers and has >10 years of remaining drilling inventory(1) in target zones being economically developed today 449 Net Permits + Inventory Wells Proved PV-10 as % of Enterprise Value(2) 22%
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Balanced Capital Allocation Framework to Maximize Returns 11 Capital Allocation Priorities › Committed to returning at least 65% of DCF to shareholders through cash dividends and share repurchases − Effective as of 5/7/25, STR’s Board authorized an additional $300 MM of share repurchases, bringing total remaining buyback capacity to approximately $350 million › Up to 35% DCF retained to protect the balance sheet and opportunistically make cash acquisitions % of DCF $MM Per Share 1Q25 Discretionary Cash Flow (“DCF”)(3) $114.6 $0.75 1Q25 DCF Returned to Shareholders $75.4 $0.50 Cash Dividend 46% $53.1 $0.35 Share Repurchases 20% $22.3 $0.15 Note: Numbers may not add due to rounding (1) Includes dividends declared with respect to 1Q25 (payable 5/30/25) (2) Market capitalization as of 5/2/25 (3) See Appendix for non-GAAP reconciliations Discretionary Cash Flow 35% ≥ 30% ≤ 35% Sitio’s Return of Capital Framework 1Q25 Return of Capital Summary >$915 MM returned to shareholders(1) >35% of current Market Cap(2) Cumulative Return of Capital Since 2Q22 Return Of Capital Retained Cash Flow Minimum Dividend Additional Dividend and/or Buybacks Retained Cash
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High Free Cash Flow Margins Minimize Dividend Sensitivity 12 Illustrative 1Q25 Dividend at Various Commodity Price Scenarios $0.23 $0.29 $0.35 $0.41 $0.47 -20% -10% 1Q25 Dividend +10% +20% $56.32 $1.84 $63.35 $2.07 $70.39 $2.30 $77.43 $2.53 $84.47 $2.77 Implied Realized Prices Oil: Gas: Note: When calculating Discretionary Cash Flow sensitivities, 1Q25 cash taxes are adjusted by the percentage change in realized prices for illustrative purposes; All scenarios assume actual 1Q25 share repurchases of $22.3 million; Future dividends are subject to board approval and contractual limitations, including restrictions in our revolving credit facility Commodity Price Sensitivity:
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(1.2x) 0.3x 0.9x 1.0x 1.2x 1.6x 2.2x 2.4x 2.5x 2.7x 3.3x 3.7x 3.9x 4.1x 4.3x 5.0x 5.1x 6.0x 7.0x 9.6x 10.5x 11.7x 20.4x Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 STR Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 Peer 14 Peer 15 Peer 16 Peer 17 Peer 18 Peer 19 Peer 20 Peer 21 Peer 22 Average: 4.7x Net Debt to FCF Compares Well to E&P and Mineral Peers 13 Source: Latest available company filings and FactSet as of 5/2/25; Balance sheets pro forma for announced transactions (1) Represents Adjusted Net Debt over Free Cash Flow for 2024, based on reported financials for each respective company; Free Cash Flow is calculated as Cash Flow from Operations less Capex for E&P peers; Cash Flow from Operations is used for Mineral peers; Adjusted Net Debt is calculated as total short-term and long-term debt (excluding any debt issuance costs, discounts and premiums), plus preferred or mezzanine equity, less cash; For Sitio, Adjusted Net Debt is equal to Net Debt; See Appendix for non-GAAP definitions (2) Peers include APA, AR, BSM, BTE, CHRD, CIVI, CNX, CRC, CRGY, FRU, GPOR, HPK, KRP, MGY, MNR, MTDR, MUR, NOG, RRC, SM, VNOM, VTLE Adjusted Net Debt to 2024 FCF(1)(2) STR’s Adj. Net Debt / 2024 FCF is ~ half the peer group average
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2025 Outlook 14 › Estimated cash taxes guidance updated to reflect lower anticipated commodity prices than originally forecasted − At the midpoint, current estimated cash taxes for 2025 are $5 million less than the original estimate › Guidance does not include the impact of potential acquisitions − Similar to prior years, expect to remain active on the M&A front supported by a robust deal pipeline (1) See appendix for non-GAAP definitions (2) Estimated cash tax guidance range is based on expectations at NYMEX forward strip pricing and for the assets owned on 5/7/25 2025 Full Year Guidance Production Average daily production (Boe/d) 38,250 – 41,250 Average daily oil production (Bbls/d) 17,750 – 19,250 Expenses & Taxes Cash G&A ($ in millions) (1) $36.5 – $39.5 (annual) Production taxes and other (% of royalty revenue) 7.0% – 9.0% Estimated cash taxes ($ in millions)(2) $21.5 – $24.5 (annual) Note: Represents Sitio’s 2025 Full Year Guidance issued on 2/26/25 and updated Full Year estimated cash taxes guidance as of 5/7/25 Comments
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Appendix 15
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2% 23% 75% $49 $482 Mineral and Royalty E&P ~96% ~4% Minerals Consolidation is in the Early Innings 16 (1) See Appendix for definitions of Mineral and Royalty companies and E&P companies. Market cap calculated using 5/2/25 share price and most recent publicly available share counts (2) Total U.S. oil and gas royalty revenue is calculated using 2024 EIA monthly oil and gas production data, multiplying by average monthly WTI and HHUB spot prices according to the EIA. Royalty payments calculated assuming an average lease royalty of 18.75% and that 20% of oil and gas production occurs on federal acreage where all royalties go to the government. (3) Latest publicly reported data as of 5/2/25. Acquirable acreage defined as any acreage in which Sitio can purchase mineral rights or NPRIs that are not owned by CVX, TPL or VNOM. Non-acquirable acreage is comprised of federal and state-owned minerals and royalties where the government does not sell minerals or NPRIs and minerals owned by CVX, TPL and VNOM. CVX mineral ownership based on calculating the surface acreage of CVX minerals ownership in Culberson, Loving and Reeves counties and applying a 12.5% royalty interest. Assumes maximum royalty interest of 25% on all gross acres, adjusted to 1/8th royalty equivalent basis Total Permian NRAs: ~13mm Sitio: ~200,000 NRAs Non-acquirable: ~3mm NRAs Acquirable: ~10mm NRAs Estimated Permian Basin NRA Ownership(3) Sitio is well positioned to consolidate the fragmented minerals market Total Combined Market Capitalization ($bn)(1) Estimated Total Royalty Payments in the U.S.(2) Fewer than 10 public oil and gas royalty companies vs. 35+ public E&P operators Public mineral company revenues Royalties paid to private mineral owners ~$71 bn in 2024
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Delivering Consistent Production Growth per Debt-Adjusted Share 17 Note: Production per Debt-Adjusted Share = (average reported production during the quarter) / ((avg. share count of quarter) + (avg. net debt / avg. share price during the quarter)). See page 28 of the Appendix for non-GAAP definitions Since becoming public in 2Q22, Sitio has delivered total production per debt-adjusted share growth of 56% (>17% CAGR) 0 10 20 30 40 50 0 5 10 15 20 25 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 Reported Production (MBoe/d) Production (Boe) per Thousand Debt-Adjusted Shares Reported Production (MBoe/d) Production (Boe) per Thousand Debt-Adjusted Shares
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Conoco Diamondback Exxon Oxy Vital ChevronCivitas APA Devon Other Exxon Diamondback Chevron Oxy ConocoEOGDevon Civitas Permian Resources Other Large-Scale, Diverse Asset Base with Active Operators and >10 Years of Remaining Development 18 8,786 Gross LOS Wells 48.6 Net LOS Wells Delaware Basin Midland Basin DJ Basin Other(2) LOS Wells as of 3/31/25 Inventory Wells as of 3/31/25 Gross Wells TIL on STR’s Current Assets(1) Net Wells TIL on STR’s Current Assets(1) Note: Historic gross and net wells pro forma for all acquisitions. CVX pro forma for HES. >10 years of remaining development includes both LOS and inventory wells (1) Represents activity based on publicly reported data on all assets owned by Sitio on 3/31/25. (2) Other consists of Williston Basin and Eagle Ford Basin 50,704 Gross Inventory Wells 429 Net Inventory Wells 0 5 10 15 20 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 0 500 1,000 1,500 2,000 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25
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- 10 20 30 40 50 60 70 80 Avalon First Bone Spring Second Bone Spring Third Bone Spring Wolfcamp A Wolfcamp B Wolfcamp C Wolfcamp D Wolfcamp XY Middle Spraberry Lower Spraberry Wolfcamp A Wolfcamp B Wolfcamp C / Wolfcamp D DJ Williston Eagle Ford Barnett Upper Spraberry - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Avalon First Bone Spring Second Bone Spring Third Bone Spring Wolfcamp A Wolfcamp B Wolfcamp C Wolfcamp D Wolfcamp XY Middle Spraberry Lower Spraberry Wolfcamp A Wolfcamp B Wolfcamp C / Wolfcamp D DJ Williston Eagle Ford Barnett Upper Spraberry E&P Companies Have Significant Remaining Inventory on Sitio’s Acreage 19 Gross Normalized Remaining Inventory 50,704 Total Net Normalized Remaining Inventory 429.3 Total Note: Inventory as of 3/31/25. Excludes spuds and permits on Sitio’s acreage Non-Permian Midland Basin Delaware Basin Non-Permian Midland Basin Delaware Basin Operators have drilled ~6,000 5k’ normalized wells per year on Sitio’s acreage over the past 3 years Other Prospective Areas Core Area
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9.3 9.5 9.6 9.8 10.3 10.1 10.4 10.7 10.8 10.9 20 Operators are Realizing Efficiency Improvements in the Oilfield Permian Basin production has grown steadily despite decreasing rigs and frac fleets Permian Production, Rigs and Frac Fleets Permian Rig Count Permian Frac Fleet Count Permian Production (MMboe/d) Source: Rigs per Baker Hughes, frac fleets per Kayrros, and production per EIA 50 75 100 125 150 200 250 300 350 400 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 Permian Frac Fleets Permian Rig Count
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Division Order Automation Revenue Automation Reconciliation and Recovery Optimizing Asset Value and Cash Flow with Sitio Asset Management System 21 › Custom-built application processes and approves 300+ division orders a month › Utilizes proprietary AI models to interpret contracts that enable us to identify revenue payment discrepancies. › Custom-built application processes revenue across STR’s ~46,000 ownership interests › STR’s proprietary app distills revenue data from 20.8 MM rows to ~100,000 records for staff to process each year (>99% reduction) › Frees up human capital for higher order analytics › Comparing data from previous steps, identifies discrepancies in ownership, production volume or revenue › Discrepancies ranked by value for STR professionals to audit › $15 MM of missing payments captured in LTM 3/31/25 27,621 HZ wells 290 operators 196 checks per month 8,835 rows of data per check 20.8 MM rows of data per year 0.1 MM records to review by STR staff per year
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Minerals and Royalties are a Structurally Advantaged Asset Class 22 ProfitableSimple Efficient Scalable Mineral interests are perpetual real property interests; typically senior to all claims in capital structure No physical operations or associated regulatory risks No environmental liabilities or scope 1 emissions Highest margin component of the energy value chain Sector leading EBITDA to free cash flow conversion efficiency Ability to return majority of discretionary cash flow to shareholders while maintaining a conservative balance sheet 100% of capital expenditures are discretionary and tied to corporate investments and acquisitions No field staff or lease operating expenses Data management systems improve royalty management G&A expenses do not increase linearly with company scale Significant consolidation opportunities given fragmented market Incremental value extracted from each acquisition through efficient management of assets as the permanent owner
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$925 MM RBL $600 MM -50 50 150 250 350 450 550 650 750 850 950 2023 2024 2025 2026 2027 2028 2029 2030 Strong Balance Sheet and Financial Flexibility with No Near-Term Maturities 23 Debt Maturity Profile as of 3/31/25 ($MM) Note: Senior unsecured notes balance is principal only and is not net of unamortized issuance costs (1) See page 28 of the Appendix for non-GAAP definitions 7.875% senior unsecured notes due 2028 $439 MM undrawn availability $486 MM drawn Capitalization as of 3/31/25 ($MM) Cash $2 Revolving credit facility 486 Senior notes due 2028 600 Total debt $1,086 Net debt(1) 1,084 Revolver borrowing base $925 Liquidity 441
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Commodity Derivatives as of 3/31/2025 24 Sitio uses hedges as a risk management strategy to support returns on cash acquisitions that have been underwritten when commodity pricing exceeds mid-cycle pricing All hedges were put in place in conjunction with 4 cash acquisitions that were completed in the summer of 2022, when commodity prices were in excess of mid-cycle pricing 2Q25 2Q25 Oil Swaps Natural Gas Swaps Bbl per Day 1,100 MMBtu per Day – Weighted-Average Price ($/Bbl) $74.65 Weighted-Average Price ($/MMBtu) – Oil Collars Natural Gas Collars Bbl per Day 2,000 MMBtu per Day 11,600 Average Call ($/Bbl) $93.20 Average Call ($/MMBtu) $10.34 Average Put ($/Bbl) $60.00 Average Put ($/MMBtu) $3.31
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Non-GAAP Reconciliations 25 Adjusted EBITDA ($000s) Three Months Ended March 31, 2025 2024 Net income $ 26,285 $ 18,692 Interest expense, net 23,268 18,510 Income tax expense 6,831 2,784 Depreciation, depletion and amortization 77,479 76,318 EBITDA $ 133,863 $ 116,304 Non-cash share-based compensation expense 6,974 5,104 Losses on unsettled derivative instruments 1,339 13,643 Merger-related transaction costs — 181 Adjusted EBITDA $ 142,176 $ 135,232
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Non-GAAP Reconciliations 26 Discretionary Cash Flow ($000s) Three Months Ended March 31, 2025 2024 Cash flow from operations $ 103,481 $ 120,740 Interest expense, net 23,268 18,510 Income tax expense 6,831 2,784 Deferred tax benefit 17,250 4,238 Changes in operating assets and liabilities (7,259) (9,927) Amortization of deferred financing costs and long-term debt discount (1,395) (1,294) Merger-related transaction costs — 181 Adjusted EBITDA $ 142,176 $ 135,232 Less: Cash and accrued interest expense 21,873 17,210 Estimated cash taxes 5,750 8,375 Discretionary Cash Flow $ 114,553 $ 109,647
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Non-GAAP Reconciliations 27 Cash G&A ($000s) Three Months Ended March 31, 2025 2024 General and administrative expense $ 15,762 $ 13,011 Less: Non-cash share-based compensation expense 6,974 5,104 Merger-related transaction costs — 181 Rental income 184 141 Cash G&A $ 8,604 $ 7,585
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Non-GAAP Definitions and Other Definitions Adjusted EBITDA, Adjusted EBITDA margin, 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 and/or share repurchases 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 (loss) plus (a) interest expense, (b) provisions for income 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) loss on debt extinguishment, (h) merger-related transaction costs (i) write off of financing costs and (j) loss on sale of oil and gas properties. We define Adjusted EBITDA margin as Adjusted EBITDA divided by total revenues. We define Discretionary Cash Flow as Adjusted EBITDA, less cash and accrued interest expense and estimated cash taxes. 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. Merger-related transaction costs for the three months ended March 31, 2024 have been recast to conform to the current period presentation. We define Total Yield as the sum of return of capital made to shareholders in the form of dividends and share repurchases, expressed as a percentage of share price over a specified period. We define Net Debt as the sum of total short-term and long-term debt (excluding any debt issuance costs, discounts and premiums), less cash and cash equivalents. We define Adjusted Net Debt as the sum of (a) total short-term debt and long-term debt (excluding any debt issuance costs, discounts and premiums), and (b) preferred or mezzanine equity, less cash and cash equivalents. These non-GAAP financial measures do not represent and should not be considered an alternative to, or more meaningful than, thei r 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, Adjusted EBITDA margin, Discretionary Cash Flow and Cash G&A may differ from computations of similarly titled measures of other companies. This release does not include a reconciliation for 2025E Cash G&A because certain elements of the comparable GAAP financial measures are not predictable in this situation, making it impractical for the Company to forecast. Page 16: Mineral and Royalty companies include BSM, DMLP, KRP, PHX, STR, TPL and VNOM. E&P Companies include AMPY, APA, AR, BATL, BRY, CHRD, CIVI, CNX, COP, CRC, CRGY, CRK, CTRA, DVN, EOG, EPM, EQT, EXE, FANG, GPOR, HES, HPK, KOS, VTLE, MGY, MTDR, MUR, OVV, OXY, PR, REI, REPX, RRC, SD, SM, TALO, and WTI. 28
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29 Contact Information Alyssa Stephens VP of Investor Relations Phone: (281) 407-5204 Email: IR@sitio.com