Sitio Royalties Corp. (NYSE:STR) Q4 2023 Earnings Call Transcript

Chris Conoscenti: Yeah, that’s a great point. And the fact that the E&P companies have really made tremendous progress on improving their capitalization and their capital discipline. It’s encouraging that these companies are coming together at this time where there are no balance sheet impacts like you described. And [indiscernible] for the specific transaction we’re talking about with Exxon and Pioneer. Pioneer has best-in-class assets, best-in-class acreage. And so, it feels like that’s going to compete well for capital within Exxon’s portfolio, and we’re excited about continued exposure there.

Noel Parks: Good deal. And then just my last one, of course, had the transaction announcement today of selling off Appalachia and Anadarko. And I’m just curious how long that was in the works, whether it was something came together pretty easy or kind of a lot of back and forth.

Chris Conoscenti: Yes, these things are never perfectly smooth and there is a lot of back and forth. We want to make sure we’re getting the best price for your shareholders. And so it’s been in the works for a while now, but what we did is, we looked at the money we were spending for the acquisitions we made this year for cash. And this was a nice way to try to fund a portion of that and it fit nicely in the capital program this year.

Noel Parks: Right, right. The simplification certainly must be welcomed to some degree. It makes the story and your focus a little bit more contained.

Chris Conoscenti: Yes, our land and accounting folks are doing cartwheels. It’s an interesting dynamic when you have assets in a region that are small relative to other regions that we have. And so just having subscale positions in these basins required a disproportionate amount of attention from the internal team. So it does simplify our work quite a bit.

Noel Parks: Right, right. Kind of what I was thinking. Okay, well thanks so much. Thanks for the time.

Chris Conoscenti: Thank you.

Operator: Thank you. [Operator Instructions] Okay. At this time we currently have no further questions, so that concludes today’s conference call. Thank you all for joining. You may now disconnect your lines.