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Highlights

  • Topaz Energy's Q2 2024 revenue rose to CAD 83.9 million, driven by higher royalties.
  • Net income for the quarter increased to CAD 17.7 million, reflecting lower expenses.
  • The company has approved CAD 0.33 dividend per share for Q3 2024, payable on September 27.

Topaz Energy Corp. (TSX: TPZ) is a Canadian company with a market capitalization of CAD 3.83bn. It is a royalty and infrastructure energy firm.

The company's net revenue rose to CAD 83.9 million in Q2 2024, up from CAD 80.2 million in the same period last year. This increase was primarily driven by higher royalty production revenue and an unrealized gain.

Total expenses decreased to CAD 59.9 million from CAD 67.1 million in the previous year, largely due to reduced operating costs and lower depletion and depreciation expenses.

Net income before taxes grew to CAD 23.9 million, compared to CAD 13.1 million in the prior year, reflecting the impact of lower expenses relative to revenue. Consequently, the company's net income for Q2 2024 increased to CAD 17.7 million, up from CAD 9.3 million in the same period last year.

Additionally, in Q2 2024, the company had a higher net revenue of CAD 83.9mn and a higher net income of CAD 17.7mn, compared to CAD 80.2mn and CAD 9.3mn, respectively, compared to the previous corresponding period. The company’s average royalty production also increased in Q2 2024. Additionally, it reported decent financials with reduced net debt and higher free cash flows, highlighting its strength and adaptability.

Recent Business Update

On July 29, 2024, the company announced that its board had approved an increase in its quarterly dividend. The dividend for the third quarter of 2024 has been set at CAD 0.33 per share and is scheduled to be paid on September 27, 2024, to shareholders recorded as of September 13, 2024.

Company Outlook

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

Top 10 Shareholders

The top 10 shareholders of TPZ collectively own approximately 45.36% of the total shares. Tourmaline Oil Corporation and Causgrove (Tanya M.) hold the largest individual stakes, with about 31.16% and 3.03%, respectively.

Stock Information

TPZ’s stock price has increased by approximately 6.38% over the past month and about 31.19% over the last six months. Additionally, the stock is trading above the average of its 52-week high of CAD 26.77 and its 52-week low of CAD 18.03.

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 August 28, 2024. The reference data in this report has been partly sourced from EODHD/Others.