05:00 PM EDT, 04/29/2024 (MT Newswires) -- Topaz Energy ( TPZEF ) , up near 2% to just shy of 52-week highs, on Monday, after trade reported its first-quarter profit fell 22%, missing estimates, but confirmed its 2024 guidance.

The Western Canadian oil and gas and infrastructure company reported first-quarter earnings per share of C$6.2 million, or C$0.04 per share versus forecast EPS normalized of $0.06 and forecast EPS GAAP of $0.05, according to Capital IQ. That compared to a profit of C$7.89 million, or $0.05, for both in the year earlier period.

Among other highlights, Topaz generated total revenue and other income of $78.2 million, 54% of which was derived from oil and liquids royalties, 23% from natural gas royalties, and 23% from Topaz's infrastructure portfolio.

Cash flow of $67.9 million or $0.47 per diluted share was generated from 19,192 boe/d (30% oil and liquids) average royalty production and 99% infrastructure asset capacity utilization.

In its guidance outlook, Topaz confirms the company's previously announced 2024 guidance estimates, including average annual royalty production of 18,800 to 19,600 boe/d and processing revenue and other income between $69.0 and $71.0 million. Topaz's royalty production guidance anticipates operator-funded capital development between $2.2 billion and $2.8 billion and incorporates the impact of Topaz's last contractually scheduled royalty rate reversion from 4% to 3%, effective January 1, 2024, on approximately 300 MMcf/d of gross natural gas production (approximately 500 boe/d to Topaz).

For 2024, Topaz said the royalty-production guidance range "purposefully remains flexible and allows for operators to adjust capital spending in response to near-term supply/demand and resulting commodity price factors in the WCSB." Based on current commodity pricing, Topaz expects to exit 2024 with net debt between C$240 million and C$250 million, before consideration of incremental acquisitions or the costs of the Clearwater Natural Gas Gathering Infrastructure.

Topaz's board declared a second quarter dividend of C$0.32 per share, paid on June 28 to shareholders of record on June 14, 2024. The annualized dividend of $1.28 per share provides a 5.6% yield to Topaz's current share price.

Topaz' said 2024 estimated dividend is sustainable down to extremely low commodity prices of C$0.01 per thousand cubic feet for natural gas and US$50.00 per barrel of crude oil.

Topaz shares closed up $0.42 to C$23.10 on the Toronto Stock Exchange just shy of its 52-week high of $23.17.