Sitio Royalties Corp.

will be muted during the presentation of the call. There's an opportunity for questions and answers at the end. If you would like to ask a question, please press star one on your telephone keypad. I would now like to pass the conference over to our host, Alyssa Stephens, Vice President of Investor Relations. Please go ahead.

Thanks, Operator. Good morning and welcome to our first quarter 2025 conference call. By now, it is our hope that you've been through our materials. You can find our recent news release and some supplemental slides on our website under the Investor Relations section. I'm joined this morning by our CEO, Chris Conocenti, and our CFO, Kerry Osika. After our brief prepared remarks, Chris, Kerry, and other members of our leadership team will be available to take your questions. Before we start, I would like to remind you that our discussion today may contain forward-looking statements and non-GAAP measures. Please refer to our earnings release and investor presentation and publicly filed documents for additional information regarding such forward-looking statements and non-GAAP measures. I will now turn the call over to Carrie to review our first quarter results.

Thanks, Alyssa, and welcome, everyone. First, I'll touch briefly on the new reporting format we rolled out this quarter. On April 15th, we issued our inaugural quarterly preview featuring key operational and financial metrics are available shortly after quarter end, prior to availability of full financials. Metrics such as production, net wells turned in line, net line of site wells, acquisition activity, and share buyback activity. Our aim is to accelerate the market's access to this data and enhance visibility to our results each quarter. Moving now to our results. The first quarter of 2025 marked another record quarter of production for CIDIO, supported by robust drilling and completion activity across our properties. Net wells turned in line were up 34% from 4Q2024, with the majority of the increase coming from the Delaware Basin. In addition, we closed on over 20 million of acquisitions that added 1,350 net royalty acres. Total production was up 3% quarter over quarter. averaging over 42,000 BOE per day. Adjusted EBITDA was $142 million, which was 1% higher than the prior quarter and reflected strong production as well as expenses in line with or better than the midpoint of our full-year guidance ranges. Net income of $26 million was up 36% over the same time period. From production down to net income, our first quarter results beat consensus estimates. Based on these results, our board declared a first quarter cash dividend of 35 cents per share, payable on May 30th, and during the first quarter, we repurchased 1.1 million shares for $22 million, equating to 15 cents per share in repurchases. In total, this represents a return of capital of 50 cents per share for the first quarter. Effective May 7th, our board extended our buyback plan and authorized an additional 300 million of share repurchases. Through May 2nd, in the second quarter, we bought back approximately 487,000 additional shares for $8 million, bringing current remaining buyback capacity to approximately $350 million. Turning now to the balance sheet, we had $1.1 billion of debt outstanding, with $439 million of availability under our revolving credit facility as of March 31st. Holding that debt flag quarter over quarter, we use our organic cash flow to fund over $20 million of accretive acquisitions, plus pay annual expenses such as ad valorem and federal taxes. As of March 31st, our adjusted net debt to free cash flow was approximately half of our peer group average. Lastly, we are updating our full year 2025 estimated cash taxes guidance to reflect the lower anticipated commodity prices than originally forecasted. At the midpoint, current estimated cash taxes for 2025 are $23 million, $5 million less than the original estimate. With that, I'll hand the call to Chris to discuss our current positioning and future outlook.