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Highlights

  • Topaz Energy reported a 7.3% revenue increase in Q3 2024, reaching CAD 88.1 million
  • The company’s expenses decreased by 7.7% in Q3 2024 driven by lower depletion costs
  • FY24 annual average royalty production is expected between 19,100-20,000 boe/d

Topaz Energy Corp. (TSX:TPZ) is a Canada-based royalty and energy infrastructure company. It has a market cap of CAD 4.26 billion. The company’s annual dividend yield stands at 4.74%.

In Q3 2024, the company reported a total revenue of CAD 88.1 million, a 7.3% increase from CAD 82.1 million in the prior corresponding period (pcp). This growth was primarily driven by higher processing revenue and unrealized gains. Total expenses in Q3 2024 decreased by 7.7% to CAD 62.3 million, compared to CAD 67.5 million in pcp, mainly due to reduced depletion and depreciation costs.

Net income before taxes rose by 76.0% to CAD 25.7 million in Q3 2024, compared to CAD 14.6 million in pcp, largely attributed to lower expenses. Net earnings also saw a significant increase of 68.2%, reaching CAD 18.0 million in Q3 2024, compared to CAD 10.7 million in pcp.

 Additionally, it reported healthy financials and total production in Q3 2023, with industry-beating margins and higher cash flow from operating activities.

Recent Business Update

Company Outlook

The company projects its annual average royalty production (boe/d) for FY24 to range between 19,100 and 20,000. Further, the year-end net debt to EBITDA ratio is expected to be approximately 1.5x.

Top 10 Shareholders

The top 10 shareholders of Topaz Energy collectively hold approximately 45.02% of the company’s total shares. Tourmaline Oil Corporation and Fidelity Investments Canada ULC are the largest stakeholders, with holdings of around 29.47% and 4.60%, respectively.

Stock Information

The stock has experienced a decline of approximately 4.48% over the past week. In contrast, it has risen by about 3.70% over the past month. Presently, the stock is trading above the average of its 52-week high of CAD 29.51 and its 52-week low of CAD 18.03. As of 02 Dec 2024, the stock’s closing price is CAD 27.68.

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 December 02, 2024. The reference data in this report has been partly sourced from EODHD/Others.