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Highlights

  • Topaz Energy reported a 7.3% YoY increase in 3Q2024 total revenue to CAD 88.1 million
  • Net income before taxes surged by 76.0% YoY, reaching CAD 25.7 million in 3Q2024
  • Net earnings for 3Q2024 grew by 68.2% YoY, reaching CAD 18.0 million, compared to CAD 10.7 million in the prior corresponding period (pcp)
  • The company expects annual average royalty production between 19,100 and 20,000 boe/d for FY24

Topaz Energy Corp. (TSX:TPZ) is a royalty and energy infrastructure company. It has a market cap of CAD 3.99 billion.

In the third quarter of 2024 (3Q2024), the company reported a total revenue of CAD 88.1 million, compared to CAD 82.1 million in the prior corresponding period (pcp). It was mainly due to higher processing revenue and unrealized gains. Total expenses decreased by 7.7% YoY, from CAD 67.5 million in pcp to CAD 62.3 million in 3Q2024, mainly due to lower depletion and depreciation expenses.

As a result, net income before taxes surged by 76.0% YoY, from CAD 14.6 million in pcp to CAD 25.7 million in the reported quarter. Consequently, net earnings for 3Q2024 grew by 68.2% YoY, reaching CAD 18.0 million, up from CAD 10.7 million in pcp.

Recent Business Update

Company Outlook

The company anticipates its annual average royalty production (boe/d) for FY24 to fall between 19,100 and 20,000, with a year-end net debt to EBITDA ratio expected to be approximately 1.5x.

Top 10 Shareholders

The top 10 shareholders of Topaz Energy collectively own approximately 36.90% of the total shares. Tourmaline Oil Corporation and Fidelity Investments Canada ULC hold the largest stakes in the company, at around 21.34% and 4.59%, respectively.

Stock Information

The stock price of TPZ has appreciated by 6.08% and 19.86% in the past six months and nine months, respectively. However, it has declined by around 2.31% in the past three months. As of January 13, 2025, the stock’s closing price was CAD 27.03, which is higher than the average of its 52-week range which spans from CAD 18.59 to CAD 29.51.

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 as on January 13, 2025. The reference data in this report has been partly sourced from EODHD/Others.