05:17 PM EST, 02/24/2025 (MT Newswires) -- Topaz Energy Corp. ( TPZEF ) after trade Monday reported mixed earnings for the fourth quarter, while revenues missed expectations, although the company completed a total of $430.6 million in 2024 acquisitions which "expanded the company's asset portfolio and further increased Topaz's long-term option-value."

For Q4, Topaz reported adjusted, per diluted share of $0.12, double that of a year earlier and beating a FactSet estimate of $0.10.

But both the basic and diluted per share were $0.03, compared to $0.14 and $0.13 a year earlier and below a FactSet estimate of $0.11.

Q4 total revenues were $82.179 million, down from $82.778 million a year earlier, but below a FactSet estimate of $86 million.

In an overview, Topaz said the 2024 buys provided 38% higher annual processing revenue, 11% higher year end royalty production, 52% higher year end royalty acreage; and $0.4 billion of incremental tax pools which extended Topaz's cash tax horizon.

Topaz's year end 2024 total proved plus probable developed reserves of 59.5 mmboe increased 23% from year end 2023 (48.4 mmboe). 2024 operator-funded activities across Topaz's royalty acreage added 10.5 mmboe of proved plus probable developed reserves, which generated a new company record of 1.5 times reserves replacement (2.6 times including acquisitions) of the company's 2024 royalty reserve production (7.0 mmboe).

In an outlook, Topaz provided 2025 guidance estimates. This included 21,000 to 23,000 boe/d average royalty production and $88.0 to $92.0 million of annual processing revenue and other income. Based on estimated commodity pricing, Topaz expects to exit 2025 with net debt to EBITDA of 1.2x and generate a 63% payout ratio which remains at the lower end of its targeted long-term payout of 60-90% to maintain financial flexibility for acquisitions and to provide further dividend increases.

Topaz's royalty production guidance anticipates operator-funded capital development between $2.2 billion and $2.8 billion. The company's 2025 royalty production guidance range "purposefully remains flexible" and "allows for operators to adjust capital spending in response to near-term supply/demand and commodity price factors in the WCSB."

Based on the company's year-end 2024 corporate tax pools of $1.8 billion and current commodity pricing, Topaz expects to exit 2025 with net debt between $415.0 and $435.0 million before consideration of incremental acquisitions. The company has a $700.0 million covenant-based unsecured credit facility, expandable to $1.0 billion, which provides financial flexibility and growth optionality.

Topaz's board has declared the first quarter 2025 dividend at $0.33 per share which is expected to be paid on March 31, 2025, to shareholders of record on March 14, 2025. The quarterly cash dividend is designated as an "eligible dividend" for Canadian income tax purposes and the annualized dividend of $1.32 per share provides a 5.1% yield to Topaz's current share price.

Its shares closed down $0.14 or 0.55% at $25.50.