Oil and Natural Gas Properties

12 Months Ended

Dec. 31, 2024

The Company owns mineral rights across multiple onshore basins in the United States. These basins include the Permian Basin in West Texas and southeastern New Mexico, the Eagle Ford in South Texas, the DJ Basin in Colorado and

Wyoming, and the Williston Basin in North Dakota. The following is a summary of oil and natural gas properties as of December 31, 2024 and 2023 (in thousands):


Oil and natural gas properties:	December 31, 2024		December 31, 2023
Unproved properties	$	2,464,836	$	2,698,991
Proved properties	2,941,347		2,377,196
Oil and natural gas properties, gross	5,406,183		5,076,187
Accumulated depletion and impairment	(816,664)		(496,879)
Oil and natural gas properties, net	$	4,589,519	$	4,579,308

As presented in the consolidated statements of cash flows, during the years ended December 31, 2024, 2023, and 2022, the Company paid $329.9 million, $170.5 million, and $557.6 million, respectively, for purchases of oil and gas properties. Additionally, the Company acquired oil and gas properties of $70.7 million and $3.3 billion during the years ended December 31, 2023 and 2022, respectively, through issuance of Class A Common Stock, Class C Common Stock, and Sitio OpCo Partnership Units. Please see “Note 7 – Acquisitions and Divestitures” for additional information regarding certain of these transactions.

The Company uses the successful efforts method of accounting for its oil and gas properties. Capitalized costs are depleted on a unit of production basis based on proved oil and natural gas reserves. Depletion expense was $319.8 million, $290.8 million, and $103.9 million for the years ended December 31, 2024, 2023, and 2022, respectively.

During the year ended December 31, 2023, the Company recognized an impairment charge of $25.6 million related to its Appalachian Basin proved properties. See “Note 14 – Fair Value Measurement” for additional information. No impairment was recognized for the years ended December 31, 2024 and 2022.

On December 22, 2023, the Company divested all of its mineral and royalty interests in the Appalachian and Anadarko Basins for approximately $113.3 million, net of third-party transaction costs. The assets sold had a carrying value of $257.8 million, resulting in a loss on sale of $144.5 million.