Topaz Energy Q2 revenue rises

Topaz Energy

28/07/2025 21:42

Overview

Topaz Q2 revenue rises with 19% higher royalty production, driven by acquisitions

Cash flow up 7% yr/yr, supported by increased royalty and processing revenue

Co completed Alberta Montney facility acquisition, boosting infrastructure portfolio

Outlook

Topaz reconfirms 2025 guidance with royalty production of 21,000 – 23,000 boe/d

Company expects 2025 processing revenue between C$88 mln and C$92 mln

Topaz anticipates 2025 exit net debt of C$430 mln to C$435 mln

Company plans to maintain 28 – 32 active drilling rigs in Q3 2025

Result Drivers

ROYALTY PRODUCTION - 19% increase in Q2 2025 royalty production driven by acquisitions and operator-funded development

INFRASTRUCTURE REVENUE - Processing revenue from infrastructure assets increased 37% from the prior year

ALBERTA MONTNEY ACQUISITION - Completion of natural gas processing facility acquisition bolstered infrastructure portfolio

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Net Income
C$28.16 mln
Q2 Capex
C$1.61 mln
Q2 EBITDA
C$81.80 mln
Q2 Free Cash Flow
C$74.02 mln
Q2 Net Debt
C$485.17 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", no "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$31.00, about 17.4% above its July 25 closing price of C$25.62

The stock recently traded at 44 times the next 12-month earnings vs. a P/E of 51 three months ago

Press Release: ID:nCNW5yqw6a

(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.)