On January 17th T J Schultz, a highly respected energy sector analyst with RBC Capital submitted a new report on STR to TipRanks. His price target is $37.00.
STR is the largest minerals/royalties company in our High Yield Income Portfolio. It recently merged with Brigham Minerals pushing the Company's production up to 37,000 Boepd. STR's operating cash flow increased from $46.7 million in 2021 to $294 million in 2022 (my forecast) and my forecast for 2023 is $586 million.
At the time of this post, STR was trading at $27.41.
STR pays "variable dividends". Their most recent quarterly dividend was $0.72 based on Q3 results. Free cash flow will be going way up in 2023, but so will the number of shares thanks to the all-stock merger with MNRL.
Sitio Royalties (STR) Price Target Update - Jan 20
Sitio Royalties (STR) Price Target Update - Jan 20
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group