(Corrects currency to C$ in bullets 2 & 3 of Outlook)

Overview

* Energy royalties firm Topaz Q3 2025 royalty production grows 15% yr/yr, driven by acquisitions

* Free cash flow for Q3 2025 rises 7% per share from last year

* Topaz completes NEBC Montney acquisition, aligning with Tourmaline's growth plans

Outlook

* Topaz reconfirms 2025e guidance of 21,000-23,000 boe/d royalty production

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

* Topaz anticipates exiting 2025 with net debt between C$500 mln and C$510 mln

Result Drivers

* ROYALTY PRODUCTION GROWTH - Topaz reports a 15% increase in Q3 2025 royalty production, driven by acquisitions and higher natural gas and oil production

* ACQUISITION IMPACT - Completion of NEBC Montney acquisition aligns Topaz with Tourmaline's growth plans, enhancing future growth prospects

* OPERATIONAL EFFICIENCIES - Reduced operating expenses and hedging gains contribute to increased free cash flow margin

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 C$16.12

Adjusted mln

Net

Income

Q3 Capex C$1.86

mln

Q3 C$81.41

EBITDA mln

Q3 Free C$72.98

Cash mln

Flow

Q3 Net C$535.41

Debt mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "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 ( TPZEF ) is C$31.00, about 19.7% above its October 31 closing price of C$24.90

* The stock recently traded at 43 times the next 12-month earnings vs. a P/E of 45 three months ago

Press Release:

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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.)