STR (Sitio Royalties) Interest Coverage : 0.67 (As of Dec. 2024)

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What is Sitio Royalties Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Sitio Royalties's Operating Income for the three months ended in Dec. 2024 was $14.4 Mil. Sitio Royalties's Interest Expense for the three months ended in Dec. 2024 was $-21.5 Mil. Sitio Royalties's interest coverage for the quarter that ended in Dec. 2024 was 0.67. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Sitio Royalties Corp interest coverage is 2.38, which is low.

The historical rank and industry rank for Sitio Royalties's Interest Coverage or its related term are showing as below:

STR' s Interest Coverage Range Over the Past 10 Years
Min: 2.2 Med: 3.92 Max: 31.28
Current: 2.38

STR's Interest Coverage is ranked worse than
77.22% of 720 companies
in the Oil & Gas industry
Industry Median: 5.695 vs STR: 2.38

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Sitio Royalties Interest Coverage Historical Data

The historical data trend for Sitio Royalties's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Sitio Royalties Interest Coverage Chart

Sitio Royalties Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Dec24

Interest Coverage

31.28

5.46

2.20

2.38

Sitio Royalties Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Interest Coverage	Get a 7-Day Free Trial										1.01	3.35	3.07	2.53	0.67

Competitive Comparison of Sitio Royalties's Interest Coverage

For the Oil & Gas E&P subindustry, Sitio Royalties's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Sitio Royalties's Interest Coverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Sitio Royalties's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Sitio Royalties's Interest Coverage falls into.

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Sitio Royalties Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Sitio Royalties's Interest Coverage for the fiscal year that ended in Dec. 2024 is calculated as

Here, for the fiscal year that ended in Dec. 2024, Sitio Royalties's Interest Expense was $-85.2 Mil. Its Operating Income was $203.0 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,083.6 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2024 )	/	Interest Expense (A: Dec. 2024 )
	=	-1	*	203.009	/	-85.24
	=	2.38

Sitio Royalties's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the three months ended in Dec. 2024, Sitio Royalties's Interest Expense was $-21.5 Mil. Its Operating Income was $14.4 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,083.6 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2024 )	/	Interest Expense (Q: Dec. 2024 )
	=	-1	*	14.44	/	-21.531
	=	0.67

The higher the ratio, the stronger the company's Financial Strength is.

Sitio Royalties (NYSE:STR) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Sitio Royalties Interest Coverage Related Terms

Thank you for viewing the detailed overview of Sitio Royalties's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Sitio Royalties Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Sitio Royalties Corp (NYSE:STR) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

SB9:Germany

Address

1401 Lawrence Street, Suite 1750, Denver, CO, USA, 80202

Website

https://www.sitio.com

Sitio Royalties Corp is a pure-play mineral and royalty company. The group focuses on investing in mineral and royalty interests in the Permian and other productive U.S. oil basins.

Executives

Christopher L. Conoscenti	director, officer: Chief Executive Officer	1144 15TH STREET, SUITE 2650, DENVER CO 80202
Oaktree Holdings, Ltd.	director, 10 percent owner	333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Oaktree Capital Management Lp	director, 10 percent owner	333 S GRAND AVE 28TH FL, LOS ANGELES CA 90071
Ocm Fie, Llc	director, 10 percent owner	333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Bx Royal Aggregator Lp	10 percent owner	C/O BLACKSTONE INC., 345 PARK AVENUE, NEW YORK NY 10154
Bcp Vi/bep Holdings Manager L.l.c.	10 percent owner	C/O BLACKSTONE INC., 345 PARK AVENUE, NEW YORK NY 10154
Steven R Jones	director	1845 WALNUT STREET, 10TH FLOOR, PHILADELPHIA PA 19103
Claire Harvey	director	510 MADISON AVENUE, 8TH FLOOR, NEW YORK NY 10022
Bcp Vii/bep Ii Holdings Manager L.l.c.	10 percent owner	C/O BLACKSTONE INC., 345 PARK AVENUE, NEW YORK NY 10154
Morris R Clark	director	CIVITAS RESOURCES, INC., 410 - 17TH STREET, SUITE 1400, DENVER CO 80202
Bam Partners Trust	director, 10 percent owner	181 BAY STREET, SUITE 300, TORONTO A6 M5J 2T3
Alice E Gould	director	C/O COREPOINT LODGING INC., 909 HIDDEN RIDGE, SUITE 600, IRVING TX 75038
Michael J Downs	officer: Chief Operating Officer	1845 WALNUT STREET, SUITE 1111, PHILADELPHIA PA 19103
Stephen J. Pilatzke	officer: Chief Accounting Officer	1845 WALNUT STREET, 10TH FLOOR, PHILADELPHIA PA 19103
Bryan Gunderson	director, officer: CEO and President	510 MADISON AVENUE, 8TH FLOOR, NEW YORK NY 10022