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Highlights

  • Topaz Energy’s Q2 2024 revenue rose by 4.6% to CAD 83.9 million, driven by higher royalty production income and unrealized gain.
  • Net earnings grew by 90.3% to CAD 17.7 million in Q2 2024.
  • The company expects FY 2024 royalty production to range between 18,800 and 19,600 boe/d.
  • At the year end, net debt to EBITDA ratio is forecasted to be approximately 1.1x.

Topaz Energy Corp. (TSX: TPZ) has a market capitalization of CAD 4.08 billion. The Canadian Royalty and Infrastructure Energy company assembled its asset portfolio during a generational M&A opportunity environment.

In Q2 2024, the company reported net revenue of CAD 83.9 million, up 4.6% from CAD 80.2 million in the prior corresponding period (pcp). The revenue surge was mainly steered by higher royalty production income and an unrealized gain. Total expenses for Q2 2024 were lower at CAD 59.9 million, compared to CAD 67.1 million in pcp, reflecting a 10.7% decrease. This reduction in expenses was mainly attributed to lower operating costs and a decrease in depletion and depreciation expenses.

As a result of higher revenues and lower costs, the company’s net income before taxes rose significantly by 82.4%, reaching CAD 23.9 million in Q2 2024, compared to CAD 13.1 million in pcp. Net earnings also increased by 90.3% to CAD 17.7 million, up from CAD 9.3 million in Q2 2023. This profitability growth was driven by higher revenue and lower operating expenses during the quarter.

Recent Business Update

Company Outlook

The company anticipates its average annual royalty production (boe/d) for FY 2024 will range between 18,800 and 19,600. Additionally, it expects the year-end net debt to EBITDA ratio to be tentatively 1.1x.

Top 10 Shareholders:

Topaz Energy's top 10 shareholders collectively hold approximately 44.47% of the company's total shares. The largest stake is held by Tourmaline Oil Corporation, at around 29.47% followed by Fidelity Investments Canada ULC, at about 4.03%.

Stock Information

The stock price of TPZ has increased by approximately 3.01% over the past week, and 2.63% over the last month. Additionally, the stock is presently trading above its 52-week high of CAD 27.78 and its 52-week low of CAD 18.03. As of November 5, 2024, the stock closed at CAD 27.02.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is November 05, 2024. The reference data in this report has been partly sourced from EODHD/Others.