Noncontrolling Interest

3 Months Ended

Mar. 31, 2023

10. Noncontrolling Interest

Noncontrolling interest represents the 48.1% economic interest of the units of Sitio OpCo not owned by Sitio in the condensed consolidated balance sheets. These interests are held in the form of Class C Common Stock and Sitio OpCo Partnership Units. Each share of Class C Common Stock has no economic rights, but entitles the holder to one vote for each share of Class C Common Stock. Each OpCo Unit holder, subject to certain limitations, has a redemption right to cause Sitio to acquire all or a portion of its Sitio OpCo Units for, at Sitio's election, (i) shares of our Class A Common Stock at a redemption ratio of one share of Class A Common Stock for together, one OpCo Unit and one share of Class C Common Stock, or (ii) an equivalent amount of cash.

Noncontrolling interest is recorded at its carrying value. From the period from December 31, 2022 through March 31, 2023, the Company recorded adjustments to the value of noncontrolling interest as presented in the table below (in thousands):


	Noncontrolling Interest
Balance – December 31, 2022	$	2,164,228
Net income		25,066
Share-based compensation		555
Conversion of Class C Common Stock to Class A Common Stock		(183	)
Distributions to noncontrolling interest		(49,206	)
Balance – March 31, 2023	$	2,140,460