Topaz Energy Q2 revenue rises

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

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