Overview
* Topaz Q2 revenue rises with 19% higher royalty production, driven by acquisitions
* Cash flow up 7% yr/yr, supported by increased royalty and processing revenue
* Co completed Alberta Montney facility acquisition, boosting infrastructure portfolio
Outlook
* Topaz reconfirms 2025 guidance with royalty production of 21,000 – 23,000 boe/d
* Company expects 2025 processing revenue between C$88 mln and C$92 mln
* Topaz anticipates 2025 exit net debt of C$430 mln to C$435 mln
* Company plans to maintain 28 – 32 active drilling rigs in Q3 2025
Result Drivers
* ROYALTY PRODUCTION – 19% increase in Q2 2025 royalty production driven by acquisitions and operator-funded development
* INFRASTRUCTURE REVENUE – Processing revenue from infrastructure assets increased 37% from the prior year
* ALBERTA MONTNEY ACQUISITION – Completion of natural gas processing facility acquisition bolstered infrastructure portfolio
Analyst Coverage
* The current average analyst rating on the shares is “buy” and the breakdown of recommendations is 14 “strong buy” or “buy”, no “hold” and no “sell” or “strong sell”
* The average consensus recommendation for the oil & gas exploration and production peer group is “buy”
* Wall Street’s median 12-month price target for Topaz Energy Corp is C$31.00, about 17.4% above its July 25 closing price of C$25.62
* The stock recently traded at 44 times the next 12-month earnings vs. a P/E of 51 three months ago
Press Release:
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)