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/Mis Actual Consensu

s s

Estimate

Q2 Net C$28.16

Income mln

Q2 Capex C$1.61

mln

Q2 C$81.80

EBITDA mln

Q2 Free C$74.02

Cash mln

Flow

Q2 Net C$485.17

Debt 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 ( TPZEF ) 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:

(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.)