Corrected: Canada's Topaz Energy raises 2026 production outlook after royalty revenue jumps

Topaz Energy

27/07/2026 22:16

Removes reference to acquisition impact from result drivers

Overview
Canada royalty and infrastructure energy firm's Q2 adjusted EPS met analyst expectations
Q2 royalty production revenue rose 52% yr/yr, driven by higher production and liquids pricing
Company completed C$38.7 mln tuck-in royalty acquisition, raised annual production guidance

Outlook
Topaz raises 2026 annual average royalty production guidance to 23,900–24,300 boe/d
Company maintains 2026 infrastructure processing revenue and income guidance at C$93 mln
Topaz expects 2026 exit net debt between C$435 mln and C$440 mln

Result Drivers
RECORD ROYALTY PRODUCTION - Q2 royalty production averaged 24,233 boe/d, up 9% yr/yr, with record liquids output and highest-ever share of WCSB drilling activity
HIGH INFRASTRUCTURE UTILIZATION - Infrastructure assets operated at 96% utilization, generating C$20.4 mln of operating margin at 92%

Company press release: ID:nCNWGJrlFa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Adjusted EPS
Meet
C$0.29
C$0.29 (3 Analysts)
Q2 Net Income
 
C$52.48 mln
 
Q2 Capex
 
C$1.77 mln
 
Q2 EBITDA
 
C$104.32 mln
 
Q2 Free Cash Flow
 
C$86.62 mln
 
Q2 Net Debt
 
C$497.39 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 1 "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$35.75, about 9.4% above its July 24 closing price of C$32.68
The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 50 three months ago

Reuters Recommended Reads
July 27 - Canada's Gibson Energy Q2 net income rises on record Infrastructure segment EBITDA
July 27 - Alliance Resource Partners Q2 revenue beats on higher oil & gas royalties
July 27 - Baker Hughes posts smaller-than-expected Q2 revenue drop, tops profit estimates

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(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.)