Topaz Energy Q3 adjusted profit beats estimates as royalty production rises

Topaz Energy

02/11/2026 22:08

Overview
Canada royalty and infrastructure firm's Q3 revenue rose 37% yr/yr
Adjusted EPS for Q3 beat analyst expectations
Quarterly results benefited from higher royalty production, stronger commodity prices and lower cash expenses

Outlook
Topaz reconfirms 2026 average annual royalty production guidance of 23,900-24,300 boe/d
Company expects 2026 infrastructure processing revenue and other income of about C$93 mln
Topaz expects to exit 2026 with net debt of C$425 mln-C$430 mln

Result Drivers
COMMODITY PRICES - Co said higher realized commodity prices contributed to increased cash flow and net income
ROYALTY PRODUCTION - Co said 9% higher royalty production, including 13% growth in heavy oil, helped drive results
DRILLING ACTIVITY - Co said increased drilling and diversified oil-focused development supported royalty portfolio growth

Company press release: ID:nCNWl9cHRa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
C$104.33 mln
C$65.15 mln (2 Analysts)
Q3 Adjusted EPS
Beat
C$0.32
C$0.29 (4 Analysts)
Q3 Net Income
 
C$32.02 mln
 
Q3 Capex
 
C$1.60 mln
 
Q3 EBITDA
 
C$102.17 mln
 
Q3 Free Cash Flow
 
C$85.40 mln
 
Q3 Net Debt
 
C$463.48 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$36.00, about 15% above its October 30 closing price of C$31.30
The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 27 three months ago
     

Reuters Recommended Reads
Nov 2 - Canada's Gibson Energy Q3 adjusted EBITDA beats estimates, hits record
Nov 2 - Canada's Capital Power Q3 revenue falls on derivative losses
Nov 2 - Blackstone, Canadian pension funds to invest $3.1 billion in LNG Canada for Mitsubishi stake 

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)