11:45 AM EDT, 07/02/2024 (MT Newswires) -- National Bank of Canada on Tuesday raised its price target on the shares of Topaz Energy ( TPZEF ) 's price target to $28.50 from $27.50 while maintaining its outperform after the company announced a $100 million infrastructure acquisition from Whitecap Resources (WCP.TO).

The deal includes a 50% stake in 20,000 barrels of oil equivalent per day (boe/d) of natural gas and condensate processing capacity at Musreau, Alberta. Implied transaction metrics are forecast at around 7.0-7.5x, which are accretive, expanding cash flow per share and free cash flow per share by about 4-5%, respectively, the bank noted.

The deal was an on-strategy acquisition for the company, with a number of strategic tailwinds. The accretion is expected to maintain the positive momentum of shareholder value and associated equity performance, National Bank said.

Acquired assets include a non-operated working interest in a 43-million-cubic-feet-per-day gas plant and 12.5 million-barrel-per-day condensate stabilization capacity, with implications toward a number of positive thematic tailwinds.

The acquired assets diversifies the company's regional exposure in the high-impact Montney liquids fairway while maintaining the quality-bias of its assets, the bank said.

The deal also proves Topaz's proactivity in the acquisitions and divestitures market, with positive alignment of interests with counterparties being a significant strategic advantage, National Bank said.

Price: 24.04, Change: +0.04, Percent Change: +0.17