Jeremy Mccrea, an analyst from BMO Capital, maintained the Buy rating on Topaz Energy Corp. The associated price target is C$32.00.
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Jeremy Mccrea has given his Buy rating due to a combination of factors that highlight Topaz Energy Corp’s strategic positioning and growth potential. The company is recognized for its defensive stance in the current uncertain macroeconomic climate, largely due to its strong infrastructure assets and royalties on high-quality Canadian plays. A recent acquisition of a gross overriding royalty (GORR) on Tourmaline’s NEBC Montney has expanded Topaz’s land exposure, positioning it to benefit from Tourmaline’s increased focus on this asset over the next five years.
Furthermore, the acquisition, valued at $71.7 million, was funded through existing credit facilities and includes significant future drilling locations, aligning with Tourmaline’s long-term growth strategy. The transaction is expected to generate substantial revenue, with production estimates translating to $5.5 million at current strip prices. Despite the acquisition, Topaz’s guidance remains unchanged, underscoring its stability and low-risk profile as a royalty and infrastructure company with key assets in top Canadian basins.
According to TipRanks, Mccrea is a 5-star analyst with an average return of 21.1% and a 59.69% success rate. Mccrea covers the Energy sector, focusing on stocks such as Obsidian Energy, Paramount Resources, and Baytex Energy.