STR + MNRL merger is now completed - Dec 29

[dan_s]

Sitio Royalties and Brigham Minerals Announce Completion of Merger
12/29/2022

DENVER--(BUSINESS WIRE)-- Sitio Royalties Corp. (NYSE: STR) (“Sitio” or the “Company”) and Brigham Minerals, Inc. (“Brigham”) today announced the successful completion of their merger, combining as Sitio Royalties Corp. The combination brings together two of the largest public companies in the mineral and royalty sector with complementary high-quality assets in the Permian Basin and other oil-focused regions, creating an industry leader with a proven track record of consolidating oil and gas mineral and royalty interests operated by a diverse set of E&P companies.

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 shareholders 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.

NRA = Net Royalty Acres
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My Proforma forecast for STR can be found on the EPG website under the High Yield tab. My current valuation is $36/share.

[dan_s]

TipRanks: "In the last 3 months, 5 ranked analysts set 12-month price targets for STR. The average price target among the analysts is $35.20. The five price targets range from $32 to $37."

STR is expected to payout as quarterly dividends ~65% of their operating cash flow. Based on my 2023 forecast, STR's dividends should total ~$2.75 for the year.

STR's production mix is approximately 50% crude oil, 34% natural gas and 16% NGLs.