BMO Capital analyst Jeremy Mccrea has maintained their bullish stance on TPZ stock, giving a Buy rating on October 29.
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Jeremy Mccrea has given his Buy rating due to a combination of factors that highlight Topaz Energy Corp’s strong positioning and operational success. The company has demonstrated resilience amid macroeconomic uncertainties, supported by its robust royalty-based and infrastructure model. In the third quarter, Topaz achieved a 99% utilization rate on its infrastructure and reported a 15% year-over-year production growth, driven by record heavy-oil volumes and strong gas performance. Additionally, the company maintained a 95% free cash flow margin, benefiting from lower operating costs and hedging gains.
Furthermore, Topaz’s ongoing drilling activities and successful waterflooding initiatives, particularly in the Clearwater region, align the company with top-performing operators. The waterflooding has resulted in reduced decline rates and maintenance capital, providing a significant upside potential that is not fully appreciated by the market. The company’s commitment to returning capital to shareholders, as evidenced by the $52.3 million in dividends paid during the quarter, further supports the Buy rating. Overall, Topaz Energy Corp offers multiple underappreciated growth opportunities for long-term investors.
In another report released on October 29, CIBC also maintained a Buy rating on the stock with a C$29.75 price target.
Based on the recent corporate insider activity of 14 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of TPZ in relation to earlier this year.